SUMMER TRAINING PROJECT REPORT

ON
A STUDY ON CUSTOMER STATISFACTION HYUNDAI FOUR
WHEELER IN AGRA CITY
Submitted for the partial fulfillment towards the awards of the degree in Master of
Business Administration of Dr. A.P.J Abdul Kalam Technical University, LUCKNOW.
Submitted by:
ABHISHEK CHAUHAN
1513370002
(Batch: 2015-17)
Under the supervision of
DR. DILEEP SINGH

DEPARTMENT OF MBA
Noida Institute of Engineering and
Technology (NIET), 19 Knowledge Park II
Greater Noida, G.B.NAGAR (UP), India-201306

DECLARATION

I hereby declare that the Research

titled

A STUDY ON CUSTOMER

STATISFACTIONHYUNDAI FOUR WHEELER IN AGRA CITY is the result of

individual efforts and has been completed under the guidance of DR. DILEEP SINGH
(Faculty), Noida Institute of Engineering And Technology, Greater Noida.

The finding and interpretation in the report are based on the data collected by me and the
report is not a reproduction of any other project submitted for similar purposes.

ABHISEKH CHAUHAN

1513370002

ACKNOWLEDGEMENT
I take this opportunity to express my deep sense of gratitude to all our
friends and seniors who helped and guide me to complete this project
successfully. I am highly grateful and indebted to my project guide Mr.
SANJAY MINHAS (GENERAL MANAGER) and for their excellent and expert
guidance in helping us in completion of project report.
I would also thank the whole
sales team of joshi Hyundai who has continually helped me in
completing the project report. And I am also thankful to my parents and
my friends who have continually
completing the report.

ABHISHEK CHAUHAN
1513370002

upport and encouraged me in

PREFACE
The successful completion of this project was a unique experience for me
because by visiting many place and interacting various person, I achieved
a better knowledge about this project. The experience which I gained by
doing this project was essential at this turning point of my carrier this
project is being submitted which content detailed analyst of the research
under taken by me.
The research provides an opportunity to the student to devote his skills
knowledge and competencies required during the technical session.
The research is on the topic The study of customers expectation and
satisfaction toward Hyundai cars in Mohali city

TABLE OF CONTENT
Sl.No
1.

CHAPTERS
1.1.

TOPIC
INTRODCUTION OF TOPIC

CHAPTER-1.

1.2.

OBJECTIVE OF STUDY

INTRODUCTION

1.3.

NEED AND SCOPE OF THE STUDY

1.4.
LIMITATION OF STUDY
2.1. HISTORY

2.
CHAPTER-2

2.2. SALES AND SERVICE NETWORK

COMPANY PROFILE

2.3. CUSTOMER EXPECTATIONAND

STATISFACTION
2.4. IMPORTANCES OF CUSTOMER
SATISFACTION FOR BUSINESS
PERFORMANCES
2.5. THE THORY OF CUSTOMER
STATISFACTION
2.6. EXPECTATION AND STATISFACTION
3.1. RESEARCH DESIGN

3.
CHAPTER-3

3.2. SAMPLE TECHNIQUES

RESEARCH

3.3. DATA COLLECTION

METHODOLOGY

3.4. TOOLS OF DATA ANLAYSIS

CHAPTER-4

4.1 ANALYSIS AND INTERPERTATION

4.
ANALYSIS AND
INTERPERTATION
5.

5.1. CONCLUSION
CHAPTER-5

5.2. FINDINGS

CONCLUSION

5.3 SUGGESTIONS

CHAPTER-6

BIBLOGRAPHY

6.

Page No

7.
CHAPTER-7

ANEXXURE

Chapter 1
INTRODUCTION

1.1.

INTODUCTION

Hyundai Motor India Limited is a wholly owned subsidiary of the Hyundai

Motor Company in India. It is the 2nd largest automobile manufacturer in
India. It was formed in 6 May 1996 by the Hyundai Motor Company of
South

Korea.

When

Hyundai

Motor

Company

entered

the

Indian

Automobile Market in 1996 the Hyundai brand was almost unknown

throughout India. During the entry of Hyundai in 1996, there were only
five major automobile manufacturers in India, i.e. Maruti, Hindustan,
Premier, Tata and Mahindra. Daewoo had entered the Indian automobile
market with Cielo just three years back while Ford, Opel and Honda had
entered less than a year back. Hyundai motor company is one of the
worlds fastest growing automobile companies, with a global presence.
Hyundai has a diverse product portfolio that is sold to customers in
approximately 200 countries through more than 6000 dealers and more
than

32

overseas

sales

and

production

subsidiaries.

Hyundais

commitment to stay at the industry is demonstrated by its 5 technical

research centers, 3 design centers and 3 testing centers around the world.
9 state of the art factories around the world manufacture world class
products for our customers.
For more than a decade till Hyundai arrived, Maruti Suzuki had a near
monopoly over the passenger cars segment because TELCO and M&M
were solely utility and commercial vehicle manufacturers, while Hindustan
and Premier both built outdated and uncompetitive products

1.2. OBJECTIVE OF THE STUDY

Every study has some objectives behind it. Present study seeks to achieve
the following research objectives:

To evaluate customers expectations and behavior pertaining to the

purchase and use of Hyundai cars by the existing customers.

To study the customer satisfaction level of Hyundai cars buyers in

Mohali.

Which car of Hyundai brand is perfectly matched with the

customers expectation in the Mohali?

What type of feature does a customer expects more while

purchasing a Hyundai car?

: To evaluate the customers satisfaction from, getting information

about the new changes in services by the Hyundai car dealers in
mohali?

To study the overall satisfaction of Hyundais existing customer from

the companys services?

1.3. NEED OF THE STUDY

The purpose of this thesis is study the customers expectation and

satisfaction toward Hyundai cars in Mohali. We describe the objectives of
customers relationship management in sales process which is very
important for the survival of companies in today competitive environment.
Today, customers are very important factors in companies management
with the power to change their short term and long term policies and
strategies. Therefore enough knowledge of environment, expectations of
customers and their desires are very important to find the best solution
for facing un-expected behaviors of customers and then behave in such a
way to change the mind of customers in the direction of companys profit.
It is an art to absorb customers by using different techniques such as
customers meet in order to manipulate companys policies a head of
them.

1.4. LIMITATIONS
During collecting information regarding customers expectation and
satisfaction toward Hyundai cars in Mohali, from the Mohali people, I
noticed some point which were creating problems during the survey are as
follows:

1. The respondents taken in this survey were not the good representative
of whole population of Mohali city.
2. Internal support for this survey from the company was not as good as I
expected from them.
3. The people in high income band are not easily approachable under this
method and to that extent the data may prove inadequate.
4. This method is relatively more time consuming. Especially when the
data is large and recalls upon the respondents is necessary.
5. The survey is totally depending on the response given by the
respondents, which may sometimes lead to wrong conclusions due to
negligence of the people who are surveyed.
6. There is a limited length of questionnaires depth as in personal
interviews.

CHAPTER 2
COMPANY PROFILE

2.1 History of the company

HMIL's first car, the Hyundai santro was launched in 23 September 1998
and was a runaway success. Within a few months of its inception HMIL
became the second largest automobile manufacturer and the largest
automobile exporter in India. Hyundai Motor India Limited (HMIL) is a

wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea

and is the largest passenger car exporter and the second largest car
manufacturer in India. HMIL presently markets 6 models of passenger cars
across segments. The A2 segment includes the Santro, i10,eon and the
i20, the A3 segment includes the Accent and the fluidic Verna and the
fluidic elantra, the A5 segment includes the Sonata Transform and the SUV
segment includes the Santa Fe.
HMILs manufacturing plant near Chennai claims to have the most
advanced production, quality and testing capabilities in the country. To
cater to rising demand, HMIL commissioned its second plant in February
2008, which produces an additional 300,000 units per annum, raising
HMILs total production capacity to 600,000 units per annum.
HMC has set up a research and development facility (Hyundai Motor India
Engineering - HMIE) in the cyber city of Hyderabad.
As HMCs global export hub for compact cars, HMIL is the first automotive
company in India to achieve the export of 10 lakh cars in just over a
decade. HMIL currently exports cars to more than 120 countries across EU,
Africa, Middle East, Latin America, Asia and Australia. It has been the
number one exporter of passenger cars of the country for the sixth year in
a row.
To support its growth and expansion plans, HMIL currently has a 307
strong dealer network and 627 strong service points across India, which
will see further expansion in 2010. In July 2012, Arvind Saxena, the
Director of Marketing and Sales stepped down from the position after
serving the company for 7 long years.
Manufactured locally
1. Hyundai Accent Executive (Launched 2011)
2. Hyundai Santro Xing (Launched 2003)

3. Hyundai Uber Cool i20 (Launched 2008)

4. Hyundai Next Gen i10 (Launched 2010)
5. Hyundai Grand i10 (Launched 2013)
6. Hyundai Fluidic Verna (Launched 2011)
7. Hyundai EON (Launched 2011)
8. Hyundai Neo Fluidic Elantra (Launched 2012)
9. Hyundai Xcent (Launched 2014)
Imported
1. Hyundai Terracan (20032007)
2. Hyundai Elantra (20042010)
3. Hyundai Tucson (20052010)
4. Hyundai Sonata Transform (20102011)
5. Hyundai Santa Fe (Launched 2010)
6. Hyundai Sonata (Launched 2010)
Discontinued
1. Hyundai Santro (19982001)
2. Hyundai Accent GTX (19992002)
3. Hyundai New Look Santro (20012003)
4. Hyundai Sonata Gold (20012005)
5. Hyundai Accent Viva (20022004)

6. Hyundai Accent CRDi (20022004)

7. Hyundai Terracan (2003-2007)
8. Hyundai Atos Prime (20032008)
9. Hyundai Getz (20042007)
10.

Hyundai Accent GLS (20042005)

11.

Hyundai Amica (20052008)

12.

Hyundai Sonata Embera (20052009)

13.

Hyundai Accent GLE (20062011)

14.

Hyundai Verna (20062010)

15.

Hyundai Getz Prime (20072010)

16.

Hyundai i10 (2007-2010)

17.

Hyundai Verna Transform (2010-2011)

2.2 Sales and service network

As of March 2011, HMIL has 451 dealerships and more than 647 Hyundai
Authorised Service Centers in 340 cities across India. HMIL also operates
its own dealerships known as Hyundai Motor Plazas in large metros across
India. HMIL has the second largest sales and service network in India after
Maruti Suzuki.
Hyundai Motor India Limited Annual
Sales
Year
1998
1999
2000

Domesti
c Sales
8,447
17,627
82,896

Exports Total
0
20
3,823

8,447
17,647
86,719

Hyundai Motor India Limited Annual

Sales
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

Domesti
c Sales
87,175
102,806
120,325
139,759
156,291
186,174
200,411
245,397
289,863
356,717
373,709
391,276

Exports Total
6,092
8,245
30,416
75,871
96,560
113,339
126,749
243,919
270,017
247,102
242,330
250,005

93,267
111,051
150,741
215,630
252,851
299,513
327,160
489,316
559,880
603,819
616,039
641,281

Exports
HMIL currently exports vehicles to more than 110 countries across Europe,
Africa, Middle East, Latin America and Asia. It has been the number one
exporter of passenger cars for the sixth year in a row in India.
Sales Performance
Hyundai Motor India Ltd (HMIL), the countrys second largest car
manufacturer and the largest passenger car exporter, registered 4.6%
growth in Exports for the month of May 2013. The domestic sales
accounted for 32,102 units and exports stood at 24,754 unit

2.3. Customers expectation and satisfaction

INTRODUCTION
Satisfaction is crucial concern for both customers and organisations.
Satisfaction is a subjective concept and therefore difficult to determine. It
depends on many factors and varies from person to person and product to
product. The importance of customer satisfaction in strategy development
for customers and market oriented cannot be underdetermined. Now a
day it has become very important factor for each and every organization
to enhance the level of customer satisfaction. Customer satisfaction, a
term is used in marketing, its a measure how product and service
supplied by the company meet or surpass customer expectation.
Customer satisfaction according to ISO 9000, users opinion about the
degree to which its meets its requirements. Customer satisfaction is a
highly personal assessment. Customer satisfaction is a measure of post
purchase behaviour of the customers. If customer expectations meet with
the perceived value of goods and service then customer is satisfied but if
the perceived value of goods and service is less than the customer
expectations than customer is dissatisfied and if the perceived value
exceeded the expected value of the goods and service than the customer
is delighted. In addition, customers generally want the best possible
product or service for a low cost. The perception of the best product or
service at lowest price with safety effect the industry and customer
segment significantly. Thus customer satisfaction is defined as The
number of the customers or percentage of the total customers, whose
reported an experience with a firm, it product or its service exceeds
specified satisfaction goods. Customer satisfaction is very important for
any business whether it sale the product or services because if the
customer is satisfied then they make the repeat purchases and tell other
persons like their friends, neighbourhoods, family members etc. about
their good experience and satisfied customers tell five other people about
their good experience.
Customer

A person of a specified kind with whom one has to deal. A customer is

the recipient of a good, service, product, or idea obtained from a seller,
vendor, or supplier for a monetary or other valuable consideration.
EXPECTATION: Meaning
Customer expectation is a critical word in business although many
companies pay little attention to it, perhaps focusing more on,
Expectation is the result of forecasting, where a person predicts what will
happen in the future and consequently expects this prediction to come
true. Customer expectation refers to the value which is demanded by the
customer. It may be tangible or intangible. Customer expectations are
directly linked with customer perceived quality, and such expectations are
indirectly linked with customer satisfaction. In the supply chain, there are
series of customers and it is difficult to meet the expectation of the
customers. Customer expectation is something which the firm must know
in advance much before starting the activities. Customer satisfaction is
crucial for firms relying on customer relationships, where revenue streams
are based on Recurring sales.
2.4 CUSTOMERS EXPECTATIONS
1. Understand needs: customers at the showroom always expect from
salesperson that they understand the actual need of the customers. All
customers do not belong from the same background, some of them have
rural background and some of them have urban background, so the need
and expectations are not same of that customers. So each customer
wants from sales consultants that they understand the need of them and
suggest to buy the same car.
2. Educate about the product in a transparent and consultative
manner: At cars dealers, there are varieties of cars available there, each
have different features, colour, varients, and customers are not clear
about that, so customers expect that the consultant educate him about
the new product in a clear way and in consultative manner.
3. Give attention and care as a friend: whenever a customer decided
to buy a car, and for this purpose, he/she visits the showroom, they

expects that someone give attention for him/her and treated as a friend at
the showroom, so that the customer tell his all need about the cars, and
about the finance. Most of the customers are not aware about the recent
price changes and not aware about changes in features of the cars.
4. Be fair on deal, documentation and give a hassle free purchase
experience: The most important thing which a customer expects is fair
deal. The customer expects from the dealers that there should be a fair
deal, so that in the future he does not face any difficulties. Documentation
process should be clear while dealing, if there is any fraudulent then the
customer get harassed/hassle. So he always expects for a hassle free
purchase experience.
5. Explain all useful things about car: customers expects from the
dealers that they explain the whole features which are available in the car.
All newly launched vehicles have new technology and change in the
features, also available additional features, so the customers expect that
these features should be clear to them so that they can use it effectively.
6. Make a timely delivery: delivery process is the very important
process in sales of vehicles, it should be done within the given time, and
otherwise it creates the wrong image of the company in the mind of
customers. Every customer expects to get his purchased car delivered to
him within the promised time.
7. Be in touch even after delivery to take care of the customers:
when a sales person sold the car to his customer, then he should be in
touched with the customers so that the problems related to the vehicle
solved very soon, and the image of the company remain same in the
customers mind. Every customer expects that there should be one who
take care of his vehicle.
2.5 THE IMPORTANCE OF CUSTOMER EXPECTATIONS
Customer expectations are a key ingredient to the success or failure of a
business or organization. To begin it is important to identify who is a
customer. A customer is an individual or organization who buys a product
or service in the typical sense from a company or organization. In the nontraditional sense a customer in an organization or business is one

department supplying a product or service to another which eventually

becomes a final product for sale.
Customers expectations in the true sense may be difficult to determine in
some respects while in others it is not so difficult. Market trends can play a
role in determining customers expectations by the type of product or
services individuals buy. Those businesses or organizations who can
supply that need or desire accurately will be successful if they have a
quality product and provide a quality service.
Customer expectations can also be determined somewhat by the reaction
individuals have if they cannot find a product with their specifications and
or/price located either online or a physical business location. The
interaction between a customer service department and their analysis of
what a customer wants or needs can also have an impact. If they either do
not understand or do not pay attention to statements made by customers,
the opportunity to fill that need may or will be lost by the organization for
which they work.
Within a business or organizational environment the aspect of customer
expectations can be more easily identified. An example which best suits
this aspect is a manufacturing environment. There are various functions
and processes involved in creating a finished product for sale. Each has
their own function and responsibilities. The expectation from one
department to another is that they expect the material they are receiving
from another department to meet the specific requirements as defined by
the product specifications for their function or process.
In a business environment we all have responsibilities in terms of our job
duties. We typically interact with other workers and functions even in our
own departments. When we interact with others our customers and their
expectations are the individuals are the ones who expect certain
responses in relation to our responsibilities. Another aspect of our
customer expectations though it is not widely recognized is the fact that
our

supervisors

expectations.

are

our

customers

who

have

certain

customer

In the beginning I mentioned that it is important to know what your

customer expectations are so your business or you as an individual can be
successful. Having the right process in place to determine how to obtain
the customer expectations for your product or service can be critical for
your success or failure. As an individual in a work environment it is easy to
know what the expectations are

for your specific job function as it is

typically identified in your job description. Knowing what is expected of

you as an individual is a plus in meeting the expectations of those who are
your customers. Success in any respect or environment will be determined
by the successful identification of customer expectations and the ability to
supply them.
CUSTOMER SATISFACTIONS
MEANING AND INTRODUCTION
Customer satisfaction refers to the internal positive feeling of a customer
towards a brand which meets his expectations. Customer satisfaction
represents the influence of the long relationship between the firm and its
customer. The overall perception of the customer toward the firm can be
measured by measuring his consumption. The prior research has made it
obvious that the customers satisfaction is the basic reason for customer
loyalty. If the customers are satisfied with the products of the firm, they
are influenced positively towards buying. Brand loyalty is affected
positively by the customer satisfaction.
Customer satisfaction is the overall analysis of the product.
There have been a number of studies which discussed brand loyalty.
Satisfaction refers to the attitude of buyer to continue the relationship.
Brand image, service quality and price are correlated to customer
satisfaction. Increase in price has shown to have a negative impact on
customer satisfaction. During the business expansions and recessions, the
customer satisfaction becomes a topic of primary importance for the firm.
The management of a firm is required to be more involved in the key
decision and events if they want the results of their choice. Brand takes
the top importance because the customers, when feel satisfied, repurchase the brand. On the other hand, if they are not satisfied with

brand, their intentions get changed and they feel dissatisfied to purchase
the brand. Customer satisfaction is accessible because it is based on the
past experiences.
Customer satisfaction can be experienced in a variety of definitions and
connected to both goods and services. Mathe and Shapiro (1990) define
customer satisfaction as a short-term emotional reaction to a specific
service performance. Customers may be satisfied with a product or
service, an experience, a purchase decision, a salesperson, store, service
provider, or an attribute or any of these. Kotler (2002) defined satisfaction
as: a persons feeling of pleasure or disappointment resulting from
comparing a products perceived performance (or outcome) in relation to
his or her expectations. Neal (1998 cited in center for the study of social
science (Anon., 2007) defines customer satisfaction as the attitude
resulting from what customers think should happen (expectations)
interacting

with

what

customers

think

did

happen

(performance

perceptions). According to Rigopoulos, et al. (2008) customer satisfaction

is the state of mind that customers have about a company when their
expectations have been met or exceeded over the lifetime of the product
or service.
Customer satisfaction gets updated automatically with every new
experience. Loyal customers are more productive than disloyal. The
amount of money spent by the customers depends on the level of their
loyalty. Greater the level of loyalty, the more will be their spending.
Overall satisfaction of customer is positively influenced by the perceived
quality of the product. The relationship between perceived quality and
customers satisfaction after considering two different models i.e.
encounter model and global model. Customer satisfaction is affected
positively by perceived quality.
Customer satisfaction
Customer satisfaction is a term frequently used in marketing. It is a
measure how products and services supplied by a company meet or
surpass customer expectation. Customer satisfaction is defined as the

number of customers, or percentage of total customers, whose reported

experience with a firm, its products, or its services exceeds specified
satisfaction goals.
It is seen as a key performance indicator within business and is often part
of a balanced scorecard. In a competitive marketplace where businesses
compete

for

customers,

customer

satisfaction

is

seen

as

key

differentiator and increasingly has become a key element of business

strategies.
Within organizations, customer satisfaction ratings can have powerful
effects. They focus employees on the importance of fulfilling customers
expectations. Furthermore, when these ratings dip, they warn of problems
that can affect sales and profitability. These metrics quantify an important
dynamic. When a brand has loyal customers, it gains positive word of
mouth marketing, which is both free and highly effective.
Therefore, it is essential for businesses to effectively manage customer
satisfaction. To be able to this, firms need reliable and representative
measures of satisfaction.
in researching satisfaction, firms generally ask customers whether their
product or service has met or exceeded expectations. Thus, expectations
are a key factor behind satisfaction. When customers have high
expectations and reality falls short, they will be disappointed and will
likely rate their experience as less than satisfying.
The importance of customers satisfaction diminishes when a firm has
increased bargaining power.
3.2 IMPORTANCE OF CUSTOMER SATISFACTION
Customer satisfaction is an important because a higher level of
satisfaction can deliver many satisfactions. Those satisfactions are as
follows:
Loyalty: A highly satisfied customer is a loyal customer.
Repeat purchases: A highly satisfied customers buy more products.
Referral: A highly satisfied customer tells their friends and family about
the product or service. Retention: A highly satisfied customer is less
likely to switch brands.

Reduced cost: A highly satisfied customer costs less to serve than a new
customer.
Premium safety: A highly satisfied customer is willing to pay more for
the products or service.
Why customer satisfaction is important
Customer satisfaction is a marketing term that measures how products or
services supplied by a company meet surpass a customers expectation.
Customer satisfaction is important because it provides marketers and
business owners with a metric that they can use to manage and improve
their businesses.
Here are the top six reasons why customer satisfaction is so important:
1. its a leading indicator of consumer repurchase intentions and loyalty:
customer satisfaction is the best indicator of how likely a customer will
make a purchase in the future. Asking customers to rate their satisfaction
on a scale of 1-10 is a good way to see if they will become repeat
customers or even advocates.
Any customers that give you a rating of 7 and above, can be considered
satisfied, and you can safely expect them to come back and make repeat
purchases. Customers who give you a rating of 9 or 10 are your potential
customer advocates who you can leverage to become evangelists for your
company. Scores of 6 and below are warning signs that a customer is
unhappy and at risk of leaving. These customers need to be put on a
customer watch list and followed up so you can determine why their
satisfaction is low.
2. its a point of differentiation: in a competitive marketplace where
businesses compete for customers; customer satisfaction is seen as a key
differentiator. Businesses who succeed in these cut-throat environments
are the ones that make customer satisfaction a key element of their
business strategies.
3. It reduces customer churn: an Accenture global customer satisfaction
report (2008) found that price is not the main reason for customer churn;
it is actually due to the overall poor quality of customer service. Customer
satisfaction is the metric you can use to reduce customer churn. By

measuring and tracking customer satisfaction you can put new processes
in place to increase the overall quality of your customer service. I
recommend you put an emphasis on exceeding customer expectations
and wowing customers at every opportunity. Do that for six months, than
measure customer satisfaction again. See whether your new initiatives
have had a positive or negative impact on satisfaction.
4. It increases customer lifetime value: by this study I found that a totally
satisfied customer contributes 2.6 times more revenue than a somewhat
satisfied customer. Furthermore, a totally satisfied customer contributes
14 times more revenue than a somewhat dissatisfied customer.
Satisfaction plays a significant role in how much revenue a customer
generates for your business. Successful businesses understand the
importance of customer lifetime value (CLV). If you increase CLV, you
increase the returns on your marketing investments. Customer lifetime
value is a beneficiary of high customer satisfaction and good customer
retention.
5. It reduces negative word of mouth: I found that an unhappy customer
tells between 9-15 people about their experience. In fact, 13% of unhappy
customers tell over 20 people about their experience. That is a lot of
negative word of mouth. How much will that affect your business and its
reputation in your industry?
Customer satisfaction is tightly linked to revenue and repeat purchases.
What often gets forgotten is how customer satisfaction negatively impacts
your business. It is one thing to lose a customer because they were
unhappy. It is another thing completely to lose 20 customers because of
some bad word of mouth. To eliminate bad word of mouth you need to
measure customer satisfaction on an ongoing basis. Tracking changes in
satisfaction will help you identify if customers are actually happy with your
product or service.
6. its cheaper to retain customers than acquire new ones: This is probably
the most publicized customer satisfaction statistic out there. It costs six to
seven times more to acquire new customers than it does to retain existing
customers. If that stat does not strike accord with you then there is not

much else I can do to demonstrate why customer satisfaction is

important. Customer costs a lot of money to acquire. You and your
marketing team spend thousands of dollars getting the attention of
prospects, nurturing them into leads and closing them into sales.
STRATEGIES TO INCREASE CUSTOMER SATISFACTION
1. TREAT YOUR CUSTOMERS LIKE THEY ARE YOUR BOSS: Jeffery gitomer
speaks about how your customer is your payback. With no customers,
there is nobody to pay you! By taking this approach to every customer
interaction you can naturally flip the angle on customer service.
Picture yourself as the boss.. if your employee treated every customer
the way they treated you, how would the service be!
2. FOCUS ON MEASURING CUSTOMER SATISFACTION: did you know that
91% of your unhappy customers will never purchase services from you
again? Measuring customer satisfaction can help you reduce the number
of unhappy customers.
3. BUILD CUSTOMER LOYALTY TO INCREASE CUSTOMER SATISFACTION:
Jeffery talks strongly about customer loyalty and its relationship with
customer satisfaction in his book, customer satisfaction is worthless,
customer loyalty is priceless. He believes that businesses should be
focuses their efforts on creating loyal customers, that sticky and not easily
influenced by competitors. I agree with Jeffery and have included my five
favorite ways to build customer loyalty to increase customer satisfaction.
Remember special occasions like birthdays, talk to your customers, tap
into what they want and deliver.
4. AVOID MAKING THESE CUSTOMER RETENTION MISTAKES: no business is
immune to unhappy customers. In fact, even companies with the best
customer service in the world will still lose up to 9% of their customers to
competitors. The good news is you can do something to stop customers
defecting. Here are three common customer retention mistakes that are
killing your customer satisfaction, 1. You are ignoring customer feedback
2. You are taking customer feedback to personally 3. You are using long,
boring customer feedback surveys.

5. SET CUSTOMERS EXPECTATIONS EARLY: setting expectations too high is

a common mistake a lot of businesses make when bringing on new
business. How many times has your sales guy made ridiculous promises to
push a deal over a line? There is no better feeling than as a customer to
have your expectations exceeded.
6. LEARN HOW TO SURVEY YOUR CUSTOMERS THE RIGHT WAY: a customer
feedback survey is the best way to find out how satisfied your customers
are, find ways to improve your product or service, and identify customer
advocates who really love your product.
7. STATS DONT LIE, UNDERSTAND THE IMPORTANCE OF CUSTOMER
SATISFACTION: here are three facts that should motivate you to start
focusing on increasing customer satisfaction.
(a) A 5% increase in customer retention can increase a companys
profitability by 75%.
(b) It assumes that 80% of your companys future revenue will come from
just 20% of your existing customers.
(c) Attracting new customers will cost your company five times more than
keeping an existing customer.
2.4.

THE

IMPORTANCE

OF

CUSTOMER

SATISFACTION

FOR

BUSINESS
PERFORMANCE
Satisfaction understood as emotional state shall be held by people, who
are willing to develop successfully personal relations, but has also been of
utmost importance in business and professional situations. The latter will
be of our interest in the further course of this work.
In

general,

satisfied

customers,

satisfied

employees

and

satisfied

shareholders all have one common characteristic they are positive and
enthusiastic about the company they are dealing with. Talking in more
detail, they shall behave in a way desired and understood by a firm, when
it comes to making decision about further cooperation with the company.

Specifically, they will be making repeat purchases, delivering best quality

of work and investing additional funds in the company stocks. Such
behavior

of

satisfied

customers,

employees

and

shareholders

will

contribute to business growth. Therefore satisfaction, understood in such

a wide context, shall definitely be on the top of board of directors list as it
has strong positive impact on business results.
Although satisfaction is applicable to organizations customers, employees
and shareholders, within the course of this work customer satisfaction will
be discussed. Specifically, customer as the ultimate judge of products or
service quality and his or her satisfaction with the delivered products or
services will be taken into account.
Customer satisfaction is crucial for business performance, as it is the
driver of customer loyalty and consecutive retention. This statement,
although intuitively true, could be argued with.
On one side, it could be said, that there is no need to dedicate time and
funds to make the customers satisfied, but it is less expensive and
sufficient to deliver high quality offerings, which will certainly be
purchased by some clients. Furthermore, one could argue that even
though customers are not loyal and will not stay with the company, new
clients can be easily found.
On the other side it can be argued, that even though customers will buy
the product, they will not repurchase unless the offering meets customers
needs. Moreover, it may turn out, that despite products quality is high it
does not fill clients expectations, as it misses some of required benefits.
Finally, one could say that it is much more expensive to acquire new
customers than retain current ones, as the costs associated with the
customer recruitment are higher than those connected with customer
retention.
The above arguments connected with customer satisfaction concept have
been widely measured and discussed in the literature. As a result there is
lots of evidence supporting the initial statement: customer satisfaction is

crucial for business performance, as it is the driver of customer loyalty

and consecutive retention the importance of customer satisfaction for
business results.
Within the course of this chapter, we will focus on only few supportive
theories.
First of all, the importance of customer satisfaction for business
performance has been justified within the customer orientation concept.
Secondly, the actual importance of customer satisfaction for business
performance versus importance of other factors has been quantified
within the EFQM Excellence Model. Finally, also the impact of increased
satisfaction on business results was researched and quantified within the
literature.
Customer retention impact on business results
Satisfaction is a prerequisite for customer loyalty and retention. In other
words, if customers are satisfied with the product, it is probable, that they
will be loyal to the company and that the loyalty will be translated into
repeated purchases. Repeated purchases are in turn prerequisite to
increasing financial results for the company, what implies that customer
retention is profitable to the organization. Going further, the benefits from
retaining the customers are larger than from acquiring new one and the
costs associated with current customer are lower and declining as
compared to new customer.
1. Acquisition costs; all costs related with attracting customer to the
company, such as incentive program, creation of customer accounts,
customer training. As these costs appear in the early stage of relationship
with the customer, customer retention allows for avoiding them.
2. Start-up costs; costs, they are related to the beginning of cooperation
with the customer, egg. Set up of customer bank account. With time, the
account is maintained and some costs are associated with that, but one
time set up costs does not happen again.

3. Base revenues; the revenue, which a company accounts for regularly

during each following period, e.g. base revenue from monthly payment for
mobile phones. When customer is retained, the base revenue is
guaranteed cash flow for a firm.
4. Volume effects; the surplus revenue, which company earns as the
relation with a customer is developing. Customers, if satisfied, tend to
increase their spending with a company by either buying larger quantities
of a product.
5. Spin-off effects; with time, customers have a tendency to purchase
complementary products or services, e.g. satisfied car owner shall buy
second car for his family members or will acquire a car gadgets from the
company, e.g. watch from Company X collection
6. General efficiency effects; operation costs are expected to decrease
with time, as the company gets to know its customers better and
therefore is capable of delivering the products or services in the required
manner. On the other hand, customers get to know the structure of the
company and the requirements from the company side, which enable for
delivery of higher quality offerings. In other words, cooperation between
both sides becomes smoother.
7. Referral effects; satisfied customer shall talk to two persons about his
or her positive purchase experience, however dissatisfied customer will
talk to and discourage ten persons from potential cooperation with the
organization. Nowadays, this factor is becoming of extreme importance
as the traditional marketing tools have become well known and
understood by customers, customer referrals and so called word of mouth
has a great power.
8. Price- sensitivity effects; loyal customers are less price sensitive
than new customers.
If the relationship with the company is satisfactory for the customer, he is
willing to pay more for the same products. Moreover, if the customer is
acquired in his early stage of life, as he grows older and becomes more
affluent, he is also willing to trade for premium products within the same
supplier.

If customer is satisfied, he is probable to continue the relationship with the

company. If that is the case, the above described effects shall happen
they will either lead to lower costs or higher returns. In the end, as the
relationship with customer is continued, profit per customer shall grow
over time.
Dissatisfaction influence on business performance
We have already explained the importance of customer satisfaction for
business performance and proved that there is measurable, positive
impact of increased customer satisfaction on business results. This implies
that companies, which enjoy increasing satisfaction of its customers, at
the same time note increasing business results. However, there are those
companies, who observe declining satisfaction. The question is therefore
what are the results of customer satisfaction decline?
Based on Hirschmans theory (Johnson, 1996), dissatisfied customers may
react in two ways
They may either voice or exit.
Customer exit is the worse consequence of customer evaluation of
product offering. In such situation, the organization looses customers,
what results in declining sales and revenues for the company. Moreover,
such customer, called dissatisfied switcher, will most probably express
his or her dissatisfaction through word of mouth to other potential
customers. In other words, dissatisfaction has not only direct effect on
organization business measured as lost potential sales, but may also have
indirect effect on the business in the form of negative word of mouth.
Therefore it is of extreme importance for the company to handle in the
right manner second possible reaction of dissatisfied customer customer
voice.
If a customer is dissatisfied, before he or she exits, he or she may also
complain to the company. Depending on how his or her complaint is
handled whether in satisfactory or no satisfactory manner, he or she will
either exit or retain with a company. Therefore it is extremely crucial for
the company to establish effective complaint management system which

will ensure, that two actions happen: a) listening to complaints and b)

reaction to the complaints.
The establishment of complaint system is important due to three reasons:
1. Effective complaint handling system may prevent from customer exit
and therefore business loss.
2. It may prevent from negative word of mouth from dissatisfied switchers.
3. Dissatisfied customers, who are potential dissatisfied switchers and
whose complaints are handled in satisfactory manner, may become even
more satisfied and loyal clients so called satisfied repeaters. As a
result, they shall not only repurchase from the company, but shall also
convert the negative word of mouth into the positive one.
Apart from dissatisfaction consequences described by Hirschman exit or
voice, it may also happen that a dissatisfied customer will not voice and
will not exit. In such case the dissatisfied customer will not voice a
complaint, as he or she believes that there will be no benefit from such
action no positive response from the company. At the same time, he or
she will retain with the company, as there is no other available or no
better product or service provider. Such consumers are called dissatisfied
repeaters. They are most often acting in the low competition or even
monopoly markets e.g. state-owned services, where a choice is limited
or none, therefore despite dissatisfaction, consumers need to repeat the
purchase.
However, if the economic environment changes, competition increases
and more interesting offerings appear, dissatisfied repeaters are likely to
switch to those new options. Therefore those customers shall also be in
the loop and actions shall be taken to increase their satisfaction levels so
as to prevent them from switching to other companies.
The below table presents four types of customers, out of which two were
described above dissatisfied switchers and dissatisfied repeaters.
Figure 1. Four customer types

Repurchase behavior
Repeat

Switch

Satisfied

Satisfies

High

repeaters
dissatisfie

switchers
Dissatisfied

Customer satisfaction

switchers

Low

repeaters

The empirical studies on satisfaction and dissatisfaction influence on

business performance in general confirm and support the conclusions,
that;
1) Satisfaction is of crucial importance for business performance
2) Satisfaction has positive impact on business results
3) Retention, as a result of satisfaction, has positive influence on lower
costs and higher returns
4) Dissatisfaction may lead to customer base decline and therefore
generate lower return
In more detail, the discussed studies justify organizations choice of
customer orientation strategy. Starting from positive influence of customer
retention on lower costs and higher, increasing profits and ending with
higher return on investment for companies, who are able to raise
customer satisfaction levels these are all undeniable evidences, that
investment in customer satisfaction and retention shall be the key area of
focus for managers. In particular in maturing economies, where market
dynamics presents a one-digit quote or even zero number, where markets
are saturated with competing, comparable products or services, it is
important to adopt defensive strategy. Defensive marketing concentrates
on customer retention by either increasing customer satisfaction or
building switching barriers and is opposite to offensive marketing, which
focuses on increasing market size and building market share. Majority of
companies adopt balanced mix of both strategies - acquiring new
customers and retaining the current ones. However, in maturing

economies, the skewness is towards defensive strategies, as it becomes

more and more difficult and costly to acquire new clients.
Therefore, increasing customer satisfaction has become a key focus area
for managers in todays organizations.
In the course of this chapter we have proven the undeniable importance
of customer satisfaction for increasing business excellence and described
the studies, which measure the impact of customer satisfaction on ROI
and on stock prices. We came to the conclusion that as increasing
customer satisfaction has positive effects on business growth, it shall be
the top priority for the management. However, we have also discussed
that in order to satisfy the customers better, it is necessary to diagnose
current level of satisfaction by establishment and implementation of
customer satisfaction measurement model. Thank to such model, the
weaknesses of current offerings can be spotted and eliminated to deliver
products capable of satisfying the customer to larger extent. However, to
build the satisfaction measurement system, it is necessary to understand
the concept of satisfaction, its drivers and consequences.
Therefore next chapter will focus on theoretical framework of satisfaction,
its antecedents and consequences.
2.5. THE THEORY OF CUSTOMER SATISFACTION
The definition of customer satisfaction
In the literature, there has been discussion about two major concepts of
satisfaction; transaction-specific satisfaction and cumulative satisfaction.
The first one is described as customer evaluation of single experience with
a product or service therefore how happy the customer is with the
offering at given point of time, during concrete transaction. Transactionspecific concept refers to satisfaction as the evaluation of single
experience.
Opposite to transaction specific satisfaction is the concept of cumulative
satisfaction, which understands satisfaction as customers up to date

experience with a product or service. In such comprehension, satisfaction

is the sum of evaluations of all purchase and consumption experiences
with a product during whole relationship.
During the course of this paper, cumulative satisfaction concept will be
used, as it is more appropriate for automotive industry. In this durables
business, purchases are infrequent and satisfaction is understood as a
long term experience. The owners of the cars, if asked about satisfaction
with the particular brand, refer to cumulative satisfaction they talk about
purchase experience, vehicle use experience, ending with after-sales
service experience.
Antecedents of customer satisfaction
Satisfaction has its antecedents or drivers factors, which influence the
satisfaction levels.
In general, there are two major drivers of customer satisfaction products
performance, which includes both products quality and products value
(relation of price and quality). In more detail, satisfaction drivers were
initially defined in two models in the literature disconfirmation model,
which is often associated with transaction-specific satisfaction and
performance model used in studies of cumulative satisfaction.
Specifically, the theory of the models and the differences between them
are described below:
a) Disconfirmation model
Referring to disconfirmation model, the difference between perceived
products

performance

and

expected

performance

is

driver

of

satisfaction.
Disconfirmation model assumes that satisfaction increases if performance
exceeds

expectations

in

such

case

we

talk

about

positive

disconfirmation. In the opposite case, when product or service performs

below expectations, there is negative disconfirmation effect, which leads
to decline in satisfaction.

The figure below graphically presents the reasoning of disconfirmation

model. It assumes that expectations may have both positive and negative
influence

on

satisfaction.

If

performance

increases

over

constant

expectations, there is positive disconfirmation, which positively influences

satisfaction. However, if expectations grow above constant performance,
there

is

negative disconfirmation

of

expectations

and satisfaction

decreases.
Such transaction specific gaps are than aggregated into an overall
customer satisfaction.
Figure The Disconfirmation Model

Performance expectations

customer satisfaction

b) Performance model
Within the performance model, expectations of product or service
performance are similar to products image, which is based on either
personal experiences with the product or information and opinions heard
and learned from other users. As opposite to disconfirmation model,
expectations have only positive influence on satisfaction.
Moreover,

expectations

shall

have

positive

impact

on

perceived

performance, what means that expectations are able to predict current

level of performance. In addition, if expectations are strong, than they
shall positively influence the perceived performance
Therefore in such case the evaluation of performance may be far from
real performance level.

Figure 2.4 The performance model

Expectations

+
+

Performance

Customer

satisfaction
Despite the expectations importance in the performance model, it is the
performance, which is main driver of customer satisfaction. Based on the
model, performance has positive effect on satisfaction level. The graph
below represents the performance model.
Comparing disconfirmation and performance models, it is necessary to
say, that the second one has been evaluated as more appropriate model
for predicting customer satisfaction. In general, empirical studies of
satisfaction confirm that expectations have rather positive than negative
influence on satisfaction. Moreover, disconfirmation model is adjusted to
studies of transaction specific satisfaction, while majority of empirical
studies understand satisfaction as cumulative, not transaction specific. As
an effect of the above arguments, performance model is evaluated as
superior to disconfirmation model in the studies of customer satisfaction.
Such conclusion will be also valid in the practical part of this work, as the
satisfaction measurement model will be assessing up to date experience
and therefore satisfaction with the automobiles, rather than single
transaction satisfaction.
Consequences of customer satisfaction.

Satisfaction has not only its drivers performance and expectations, but
also its results loyalty and retention. Those two consequences are
correlated with each other, but are at the same time distinct results of
customer satisfaction.
Loyalty is only expressed psychological predisposition toward purchasing
and/or using a particular product/service once again, however it does not
guarantee a success to an organization measured as customer retention.
In other words, loyalty is a high perceived or expressed likelihood of
repurchase or willingness to pay a higher price, but does not mean, that
customer will repurchase from an organization (Johnson, M.D., 1996). It is
the retention, which is ultimate consequence of satisfaction and which is
the actual act of repurchase.
There are various reasons, due to which loyal customer or the one, who
expresses the loyalty attitude, in the end switches to competition. The
Customer Experience Model (presented in the figure below) explains why
loyalty does not necessarily end up with retention.

Figure 4. The Customer Experience Model

Customers internal
Knowledge database

Customer perceptions,

consumption,

customer
Judgments and choice
and loyalty

Satisfaction

External market
Information

The

model

separates

the

consumption

experience

and

resulting

satisfaction and loyalty from the repurchase decisions and explains, what
happens, when potentially satisfied consumer does not repeat the
purchase with the same company. Based on the model, there are three
aspects

of

product

or

service

consumption

and

the

consecutive

satisfaction and loyalty.

First of all, customer relation with the company starts with the decision
about the product or service purchase and the consumption. As a result of
consumption experience, customer forms the evaluation, perception and
expectation towards the product and at the same time, he or she becomes
more or less satisfied with the product.
Secondly, during the consumption process, consumer stores in mind all
the information learned regarding experience with the product. He or she
uses those experiences and information when making decision about the
future repurchase. Supposing that he or she is satisfied with the product,
this makes him or her more predisposed towards repeated purchase.
Finally, the consumer comes to the decision about repurchase of the
product. He or she will most probably make the decision based on the
knowledge and experience gained so far.
However, as the world is changing, customer is exposed to new
information during the consumption repurchase process. He or she
receives information about new offerings, is exposed to word-of-mouth
information. As a result, even though customer is satisfied with the
current product and expresses to be loyal, external markets conditions
may influence his decisions and he or she may switch. Such customers are
called satisfied switchers they may switch e.g. from Audi to BMW,

because BMW will offer better priced offer therefore customer will
perceive BMW as higher value car, or BMW will offer technological
advancements, that Audi is not able to deliver. On the other side, the
above described scenario may not happen. Even though a customer is
exposed to external information and knows other options, he may stick
with the current brand and repurchase. But such case will most often
happen by habitual, daily purchases. In case of durables and such is the
automotive industry, companies need to make sure, that they have the
absolute competitive advantage and that no other brand is capable of
attracting current customers.
Both satisfaction drivers and results are linked in a theoretical framework,
which helps to understand the relations between drivers and effects of
satisfaction. The framework is presented in the below figure.

Figure 5. A framework for linking quality, satisfaction and retention

Internal product and

service production
and maintenance
process

Customer
retention

Perceived
value, quality,
and
expectations

Context

Customer
satisfactio
n

Customer loyalty
and complaint
behavior

At the beginning of the whole process is the actual production of product

or service and placing an offer to the consumer. Providing that the product
matches consumers needs, the consumption process starts. During that
process, consumers evaluate the product with regard to its performance

understood as evaluation of quality, value (equal to quality versus price

paid and price paid versus quality) and confront the performance versus
expectations. Such evaluation lays ground for perception of satisfaction
the extent to which product or service met customers needs. The level of
satisfaction or dissatisfaction strongly affects and predicts customer
loyalty and as a result customer retention, however it guarantees nothing,
as even satisfied customers may switch to competition. Therefore in order
to retain customers, companies need to continuously improve current
offering, present revolutionary and innovative products and constantly
deliver higher customer value. In other words, satisfying a customer is a
constant process, which means that new and better ways need to be
found to customer needs.
To summarize, customer satisfaction is important concept for business
performance and has measurable impact on business results. It is due to
the fact that satisfaction influences loyalty and consecutive retention. In
other words, dissatisfied consumers may substantially negatively impact
business results. Therefore, it is of extreme importance to measure the
current satisfaction levels to be able to spot problems, eliminate them and
deliver improved products and services to customers in order to lift
current satisfaction levels.
Customer Satisfaction Measures
Customer satisfaction measurement involves the collection of data that
provides information about how satisfied or dissatisfied customers are
with a service. This information can be collected and analyzed in many
different ways. Many organizations regularly check the levels of customer
satisfaction to monitor performance over time and measure the impact of
service improvement.
Henley center headlight vision (Anon., 2007) states the research carried
out in the UK with public sector organizations suggests that there are five
themes that are likely to be relevant to all organizations in measuring
customer satisfaction.

Delivery of the service (how problems were handled, reliability,

outcome etc)
Timeliness (waiting times, number of times contacted)
Information (accuracy, enough information, kept informed)
Professionalism (competent staff, fair treatment)
Staff attitude (friendly, polite, sympathetic)
According to Rizaimy et al. (2009), customer satisfaction measures should
depend on the five following parameters.

1. Quality: - If defects are detected during the warranty period, the

customer is happy. However, what is important is whether the defects fall
into an acceptable range. Sometimes, customers specify what an
acceptable defect is.
2. On-time delivery: - Nothing is more frustrating than not receiving a
delivery on an agreed-upon day. This frustration may be eased if
somebody calls to tell you that the delivery is going to be delayed, but the
frustration is there just the same.
3. Money: - Obviously, no vendor can bill the customer for an amount
that was not agreed to by the customer that is if the vendor expects his
invoice to be respected in full and without issue. Whenever the customer
has to pay more than the purchase order value, the customer is
dissatisfied.
4. Issue factor: - Issues crop up during project execution mainly because
of unclear specifications or a lack of understanding the specs. Issues may
also occur because of a conflict or an error in the requirements. When the
vendor raises an issue whose origin is attributable to the customer, the
customers satisfaction is not usually affected. However, the customers

satisfaction does become affected if the issues raised are due to the
vendors improper understanding of the requirements.
5. Accommodation and cooperation: - Most projects would not be
complete without a few change requests from the customer software
maintenance projects run on these. But since change requests are
commonly implemented before delivery and it cause additional work for
the vendor. Customer will be happy when change requests are accepted
without impacting the price or the delivery schedule, but it is rare to
happen.
As shown above, Henley center headlight vision the staff attitude,
professionalism, information, timeliness and delivery of service can be
used to measure customer satisfaction for each service. While according
to Rizaimy, et al. (2009), stated customer satisfaction measures should
depend on parameters like quality, time of delivery, money customers
pay, issue factor and accommodation and corporation. Depending on
those customer satisfaction measurement parameters the researcher
measured the satisfaction level of after sale service customers of Holland
Car PLC and MOENCO using quality, time of delivery and money the
customers pay for specific and overall satisfaction of customers on the
after sale services.

Customer Behavior and Customer Satisfaction

Customer satisfaction does have a positive effect on an organizations
profitability. The consequences of not satisfying customers can be severe.
Dissatisfied consumers can decide to discontinue purchasing the good or
service and complain to the company or to a third party and perhaps
return the item, or engage in negative word-of-mouth communication. On
the other hand, Potluri and Hawariat (2010) stated as customer

satisfaction is a direct determining factor in customer loyalty, which, in

turn results; -

(a) Increased purchases of the existing product

(b) Cross-purchase of your other products
(c) Price premium due to appreciation of your added-value services
(d) Reduced operating cost because of familiarity with your service
system.
(e) Positive word-of-mouth in terms of referring other customers to your
company.

2.6. Expectation and satisfaction

Customers have the expectation of the products and services they buy.
There are three level of satisfaction based on how well expectations are
met:,
MEETING: when expectations are met, they are satisfied.
EXCEEDING: when expectations are exceeded, they delighted.
NOT MEETING: when expectations are not met, they dissatisfied.

CHAPTER 3

RESEARCH METHODOLOGY

3.1. RESEARCH DESIGN

Research design of the present study is exploratory cum descriptive and
partially causal in nature, as the study aims at achieving insights into a
relatively new phenomenon of a study of customers expectation and
satisfaction toward Hyundai cars in Mohali. As the research is aimed at to
find out the consumers expectations and satisfaction level toward Hyundai
motors, so only those were selected who were having selected Hyundai
cars and using them.

SAMPLE
In this study, sample size of 80 respondents is chosen from Mohali who
are using the Hyundai cars.

3.2. SAMPLING TECHNIQUE

Non-probability sampling was the only sampling technique available for
the present study. Which produce an objective measure of the reliability of
sample estimate? Here simplest non-probability sampling technique
convenience sampling was applied. Respondents were approached must
all the places e.g. on the car display events, markets, showroom visitors,
etc by the way of questionnaires.
3.3. DATA COLLECTION
Data can be defined as factor information obtained through scientific
observation or experiments, through which conclusions or inferences can
be draw.
THE DATA FOR THIS STUDY WAS OBTAINED FROM TWO SOURCES:
1. Primary source of data
2. Secondary source of data
PRIMARY SOURCE OF DATA
Survey the more importance has given to primary data than secondary
data because it is more reliable.
SECONDARY SOURCE OF DATA
There are the various sources for secondary data like books, and small
notes sheet, sales records, written material available in the company. The
secondary data was collected after choosing the topic, which is very
practical and theoretical to the research. It was collected from the
company brochure and documents. This has been used in the profile of
the organization, used in the analysis of behavior of customers and their
expectation for the vehicle.

3.4.TOOLS OF DATA ANALYSIS

In the Present study, the data collected were edited, coded and tabulated
to make study meaningful. Then data were interpreted and analyzed to
get the results for conclusions and recommendations. The data so
collected has been analyzed with help of various tools and techniques to
fulfill the research objectives. These include percentage table, frequency
table, and mean keeping in context with the objective of the study. It was
further suitably analyzed by the graphical method.

3.5. Research methodology adopted

Research design

exploratory cum descriptive

Research instrument

questionnaire

Sampling plan:_
-sample method

car in Mohali

convenience method

-sample size

80

-sample unit

existing customers of Hyundai

CHAPTER 4
DATA INTERPRETATION
AND
ANALYSIS

DATA INTERPRETATION AND ANALYSIS

The analysis and interpretation of data according to research objectives is
as follows:
Q1. Gender of the respondents?
Partic
ular

Fre
quency

Male

cent
5

65.
0

Femal
e

Per

2
8

35.
0

Total

8
0

10
0.0

INTERPRETATION
Graph: 1
65%

70%
60%
50%
40%

35%

30%
20%
10%
0%
Male
Female

Source: based on primary data

ANALYSIS:

From the data collected regarding the gender of the respondents, it is

clearly understand by the data collected are that 65% of respodents were
male and 35% of the respondents were female.

Q2. Age of the respondents?

particulars
18-28 yrs
29-39 yrs
40-50 yrs
Above 50
Total
INTERPRETATION
Graph: 2

Frequency
16
24
28
12
80

Percentage
20.0
30.0
35.0
15.0
100.0

18%

20%

18-28 years
29-39 years
40-50 years
above 50

27%
35%

Source: based on primary data

ANALYSIS
From the data of sample collected regarding the age of the respondents, it
is clearly understandable by the data collected that 20% of the Hyundai
car users lie in the age between 18 to 28 yrs, 30% lies in the 29 to 39 yrs,
35% lies in the 40 to 50 yrs and only 15% customers lies in the age above
to 50. So it is clear very clear that maximum user are lie in the age
between 40 to 50.

Q3. Occupation of the respondents?

Particulars
Student
Business man
Service man
Others
Total

frequency
8
28
20
24
80

percentage
10.0
35.0
25.0
30.0
100.0

INTERPRETATION
Graph: 3

Column1
student

10%

Business man

30%

service man
35%

others

25%

Source: based on primary data

ANALYSIS
From the data collected from the respondents regarding the occupation of
the customers, it is clearly understandable that the student doing the part
time job can also buy the Hyundai car, and the percentage of Hyundai
customers in the Mohali zone as a student is 10%, The maximum
customers of the Hyundai cars are business man by profession. It has
covered 35% of the total customers. 25% of customers are servicemen
and 30% of the total customers are doing other work/job.

Q4. Monthly income?

Particulars
Up to 10000
10001-20000
20001-30000
30001-40000
Above 40000
None
INTERPRETATION
Graph: 4

frequency
4
16
28
24
8
0

Percentage
5.0
20.0
35.0
30.0
10.0
0%

40%
35%

35%

30%

30%
25%
20%

20%
15%

10%

10%
5%

5%
0%

up to 10000 10001-2000020001-3000030001-40000 above 40000

0%
none

Source: based on primary data

ANALYSIS
From the data collected by this survey regarding the income profile of the
existing customers of the Hyundai cars, it is clear that the maximum
number of Hyundai customers earnings lies in 20k to 30k and minimum
number of Hyundai customers earns up to 10k per month. The customer
who earns between 10k to 20k is 20%. And the customer who earns
between 30k to 40 is 30%. Only 10% of the Hyundai customers earn more
than 40k.

Q5. Highest level of education of the respondents?

Particulars
High school
Graduation
Masters degree
Others
Total

Frequency
13
35
18
14
80

percentage
16.25
43.75
22.5
17.5
100.0

INTERPRETATION
GRAPH: 5
50%
45%

44%

40%
35%
30%
25%

23%

20%

18%

15% 16%
10%
5%
0%
High school

Graduation

Master's degree

Others

Source: based on primary data

ANALYSIS
From the data collected from the respondents regarding their education
level. It is clear that the 44% of the Hyundai customers are graduate and
23% of the Hyundai customers have completed master degree. 34% of
the Hyundai customers have done diploma level course or high school
level study and others study.

Q6. Marital status of the respondents?

Particulars
Married
Unmarried
Separated
Total

frequency
48
28
4
80

INTERPRETATION
GRAPH: 6

Percentage
60.0
35.0
5.0
100.0

9
820%
8
7
6
5
4
3
2
1
0
Married

35%
Unmarried

5%
Separated

Source: based on primary data

ANALYSIS
From the data collected by the primary source regarding respondents
marital status, it is clear that 60% of the total customers were married
and the 35% of the customers were unmarried, 5% of the respondents
were married but separated. So it is clear that most of the customer buy
the Hyundai cars for the his/her family.

Q7. Family size of the respondents?

Particulars
1-3
4-5
More than 5
Total

Frequency
16
28
36
80

Percentage
20.0
35.0
45.0
100.0

INTERPRETATION
GRAPH: 7

20%
45%
1 to 3
35%

4 to 5
More than 5

Source: based on primary data

ANALYSIS
Data collected related to the family size of the customer , it is clear that
45% of the customers have more than 5 member in his/her family, 35% of
the customers have 4 to 5 members in his/her family, and only 20%
customers have 1 to 3 members in his /her family. Maximum number of
total Hyundai customers has more than 5 members; it means people buy
Hyundai cars with the objective of his/her family convenience.

Q8. Which car of Hyundai brand you recently have?

Model

Eon

Santr I10

I20

Vern

Elant

Sona

Sant

Othe

respons

15

o
3

13

15

a
15

ra
5

ta
2

a fe
3

rs
9

e
percent

12%

2.4%

10.4

12%

12%

4%

1.6%

2.4%

7.2%

age
INTERPRETATION
Graph: 8

14%
12%

12.00%

12.00% 12.00%
10.40%

10%
8%

7.20%

6%
4.00%

4%

2.40%

1.60%

2%

2.40%

0%
eon

santro

i10

i20

verna

elantra sonata santa fe others

Source: based on primary data and secondary data

ANALYSIS
All the data related to the, which Hyundai brand car is owned by more
customers in the Mohali, collected from the respondents and collected
from the internal sales records at company, stated that most of the
customers buy eon,i20,and verna, their percentage of users in the Mohali
is 12% each. After these cars, the most selling car is i10, and its users are
10.40%. elantra, santa fe, sonata are the expensive cars so users of this
cars very rare and the percentage of them in the Mohali is 8%. 7.20 % of
customers purchase others cars og Hyundai brands.

Q9. Rank the features what you more expect to have in your car?
Spaciou

Size

technolo

Brand

and

gy

image

efficienc

15%
12

shape
10%
8

12.5%
10

y
20%
16

INTERPRETATION
GRAPH: 9

12.5%
10

interior

7.5%
6

power

13.75%
11

comfort

8.75%
7

Fuel

25%
20%
15%
10%

20%
15%

5%

10%

13%

14%

13%
8%

9%

0%

Source: based on primary data

ANALYSIS
From the data collected from the respondents regarding to the customers
expectation related to the features for which they go first, it is very clear
that 20% of total customers expects good fuel efficiency which
expectation is higher than other expectations. 10% of the customers
expect that their car should be more spacious. 14% customers look
forward for engine power. 17% of the customers expect to have a good
interior and comfort from inside the car.12% of the customers only goes
for the brand name whereas 10% of the customers expect a good sized
and shaped car to have.

Q10. What attracts you more to buy a car?

Particulars
Features
Safety
Price
After
sale

Frequency
20
24
12
24

percentage
25.0
30.0
15.0
30.0

services
total

80

100.0

INTERPRETATION
GRAPH: 10
30%

30%

30%
25%
25%
20%
15%
15%
10%
5%
0%
Features

Safety

Price

After sale services

Source: based on primary data as well as secondary data

ANALYSIS
The data collected from the respondents and from the company regarding
the factor which attracts more customer to buy Hyundai cars is simply
stated that after sale services provided by the company and safety
available in the car attracts more customers. 60% customers buy Hyundai
cars only because of its after sale services and safety availability in the
car. 25% of the customers are attracted by features available in the
Hyundai car. Only 15% of customers buy the Hyundai car because of low
price, or thinks of price of the car.

Q11. Do the dealers inform you about the new changes in the services?

Particulars
Yes
No
Total

Frequency
76
4
80

Percentage
95.0
5.0
100.0

INTERPRETATION
GRAPH: 11

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

95%

5%
Yes
No

Source: based on primary data and secondary data

ANALYSIS
The data collected from the respondents and from the complaint directory
available in the company regarding, Does Hyundai dealers inform them or
not about the new changes in the service or scheme represents that, 95%
of customers given their feedback as yes whereas 5% of customers says
no.

Q12. Your experience with the Hyundai brand?

Particular

frequencies

percentage

s
Less than 5 20

25.0

yrs
6 to 10 yrs 24
11 to 15 22

30.0
27.5

yrs
More

17.5

than 14

15 yrs
Total

80

100.0

INTREPRETATION
GRAPH: 12

18%

25%

less than 5 yrs

6 to 10 yrs
11 to 15 yrs

28%

more than 15 yrs

30%

Source: based on primary data

ANALYSIS
All information collected from the respondents regarding their experience
with Hyundai brand, is can be easily understand that 25% of Hyundai
existing customers in Mohali zone have less than 5 years experience, 30%
of customers have experience with Hyundai between 6 to 10 years, 28%
customers have 11 to 15 years experience with the Hyundai customers.
Only 18% customers have 15 years of experience with the Hyundai cars in
the Mohali zone

Q13. On the scale of 1-5 where 1 represents extremely satisfied and 5

represents extremely dissatisfied how would you rate your level of overall
satisfaction with the Hyundai company?
particulars
Extremely

frequency
16

percentage
20.0

satisfied
Satisfied
Neutral
Dissatisfied
Extremely

40
16
6
2

50.0
20.0
7.5
2.5

dissatisfied
Total

80

100.0

INTERPRETATION
GRAPH: 13
60%
50%

50%

40%
30%
20% 20%

20%

10%
0%
Extremely satisfied

8%
Satisfied

Neutral

3%

DissatisfiedExtremely dissatisfied

Source: based on primary and secondary data

ANALYSIS
All the data from primary source and secondary source regarding the
customers satisfaction level tells that, 50% of the Hyundai existing
customers are satisfied by the services provided by the company whereas
20% of the customers are extremely satisfied and said they are giving
10/10 for the Hyundai service. 20% of customers were neutral neither
satisfied nor dissatisfied whereas 10% of the customers are dissatisfied in
which 3% are extremely dissatisfied. But the ratio of satisfied customer is
more.

CHAPTER 5

FINDING & CONCLUSION

5.1. FINDINGS OF THE RESEARCH

During the study the findings were as follows:
1. Customers always expects for a better quality of service from the
automobile dealers, so that they will not suffer any loss because of them.
While surveying, I find that all customers have not the same expectations,
and they are not same by economically or geographically. So the behavior
pertaining while dealing a car, all customers do not behave in the same
way. Some of them want more discount, some of them want a better
service after sale.
2 All automobile dealers in Mohali only aim at satisfying the customers by
maximum effort, and they treat a customer as God. Some of the existing
customers

have complaint

about

minor faults

but

the maximum

customers have said that they are very satisfied with the service.
3. According to the survey, only four cars of Hyundai brand matched with
the expectations of the Mohali people that cars are verna, i20, i10, and
eon. Other cars have attracted very less customers in the city. These four
cars have different variant and each variant has attracted more
customers.

4. Most of the respondents says maximum fuel efficiency attracts them

more to buy a car. And they also look for a good interior, good engine
power, comfortability and good visibility. Maximum Hyundai customers
earn average income, so they expect to have a spacious and good fuel
efficiency car.

5.2. CONCLUSION

In this chapter we present the conclusion of our research. The goal of this
research was to study the customers expectation and satisfaction toward
Hyundai

cars

in

Mohali. Customer

satisfaction according to

their

expectations has been a key element of the modern marketing in recent

years. All around the world companies in different sizes have been trying
to satisfy their customers to help them with their competitive businesses.
On the other hand because of vigorous competition, not only acquiring
new customer is becoming difficult but also holding existing customer is a
quite challenging task.
During the research we learned that it is a lot cheaper to keep existing
customers happy than to attracts new ones. But maintaining relation with
existing customers in that level constantly encourages them to stay with a
company is a dynamic and meticulous job. That is why customer
satisfaction according to their expectation can play a critical role in
success of a company. Along with sales and marketing, all the other
departments of a business should be involved with customer satisfaction
process.
For a successful business it is up to the company to perform customers
profitability analysis. As a result of this analysis, if a customer is not doing
well with presented products and services, there is an opportunity for us

to find a better solution for that customer before losing it to competitors.

And they should be treated as they are boss.
One of the other important facts we learned in this research was; it is not
possible to attract and retain all customers with the same policy and
treatment, so company should adopt the idea of treating different
customers
customers

differently. Companies have to find the differences of

expectations

and

adjust

their

policies

and

schemes

accordingly.
Another important highlight of our research was getting to realize that
customers

satisfaction

according

to

their

expectations

requires

strategies and various schemes and it should be considered by sales and

marketing team. And it requires more attention

5.2. SUGGESTIONS
After collecting all internal data and external data and analyzing the facts,
I found the answer of my all questions; on that basis I will suggest the
company to bring some changing in their strategies and implemented
activities.
1. Company should try to know the exact expectations of the customers
so that they can achieve the organizational goal by providing them a
better service which matched with the customers expectations.
2. They should implement all the promotional and customer attracting
strategies to attract more and more customers.

3. Automobile dealers should provide the sales training to all their sales
consultants twice/thrice times in a year to maximize their sales skills. So
that they can complete their target very effectively.
4. Customer relationship play a vital role in achieving the organization
goal. So they should make a good relationship with the customers and
provide them all latest information about the vehicle.
5. All customers have not the same expectations, because of their life
style, economic condition, geographical area, and religions etc. so
company should try to know the all expectations and welcome them in
different way.
6. Go through the customers expectations.
7. Try to maximize the loyalty of existing customers toward the company
by providing them a better service and better satisfaction. Company
should focus more on establishing good relation with existing customers,
because this is less expensive than to creating new ones. And company
should provide all the latest changing in services and schemes to existing
customers.
8. Each employee must be well trained in his/her task, so that there will be
no complaint from customers. If any complaint has appeared from a
customer they it should be solved as soon as possible, and say sorry for
inconvenience.
9. The training to employee for customer satisfaction should be provided
periodically. Customer can be satisfied only when his/her expectations
meet with the companys effort and services. So they should try to know,
what the customer expectation is,
10. Sales consultants must have command on at least 2 or 3 language, so
that they can welcome and handle all type of customers who visit the
showrooms.
11. Company should enquire that, their customers are satisfied or not
satisfied with the efforts, and go through the customers feedback. And
the most important thing that I will suggest to company, that they should
also enquires about the employees satisfaction with his/her job, because a

satisfied employee can give 100% of his/her potentiality to achieve the

organizational goal.
12. Company should conduct events such as get together, customer meet
etc, to make a healthy relationship with the customers.

CHAPTER 6

BIBLOGRAPHY

BIBLOGRAPHY

Internet references
http://www.google.co.in/search/customers/expectations
http://www.chillibreeze.com/articles/customers-expectations
http://www.rediff.com/expctations/automobile/dealers
http://indianmba.com/faculty_column
http://managementparadise.com/forums/marketing-management

Book references
Marketing management (k. jain)
Consumer behavior (schiffman & knuak)

CHAPTER7
ANNEXURE

QUESTIONNAIRE
For existing(Hyundai) customers only
Dear respondents,

I would be grateful if you could spare some of your time to respond to the
followings questions. Your response will be treated as confidential and
would only be used for the purpose of study.
A WORD ABOUT YOURSELF
NAME .
Q1. Gender of the respondents?
a) male

b)
female

Q2. Age of the respondents?

18-28
years
29-39
years
40-50
years
Above 50
Q3. Occupation of the respondents?
Particula

Stude

Business

service

r
respons

nt

man

man

Others

e
Q4. Monthly income?
Particular

Up

to 10001-

10000

20000

20001-

30001-

Above

30000

40000

40000

response
Q5. Highest level of education you have completed?
Particular

High

Graduati

Masters

school

on

degree

response
Q6. Marital status?

Others

None

a) married
b)
unmarried
c)
separated
Q7. Family size?
a) 1-3
b) 4-5
c)
more
than 5
Q8. Which car of Hyundai brand you recently have?
Model

Eon

Santr

I10

I20

Verna

Elantr

Sonat

Santa

Other

fe

respon
se
Q9. Rank the features what you more expect to have in your car?
Spacio

Size

us

shape

and Technol
ogy

Brand

Interio Power

Comfo Fuel

image

rt

1
2
3
4
5
6
7
8
Q10. What attracts you more to buy a car? Give grades to each factor.
A

Features
Safety
Price
After
sale
services

Q11. Do the dealers inform you about the new changes in the services?

efficiency

a. Yes
b. No
Q12. Your experience with the Hyundai brand?
Particulars

Respons
es

Less than 5 years

6 to 10 years
11 to 15 years
More than 15 years
Q13. On the scale of 1-5 where 1 represents extremely satisfied and 5
represents extremely dissatisfied how would you rate your level of overall
satisfaction with the Hyundai company?
Extreme

satisfie neutral

dissatisfi

Extremel

ly

ed

satisfied
1

dissatisfi
2

ed
5