LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

A STUDY ON CUSTOMER SATISFACTION TOWARDS TWO WHEELER HERO-

HONDA WITH REFERENCE TO CBZ-XTREAM

JALANDHAR

Submitted to Lovely Professional University

In partial fulfillment of the requirements for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by: Supervisor:

Shatender Verma Miss Yogita Shani

R1707A09 Lecturer

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA

1
 (2009)

LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

The Faculty Advisor

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project report titled “A STUDY ON CUSTOMER SATISFACTION
TOWARDS TWO WHEELER HERO-HONDA WITH REFERENCE TO CBZ-XTREAM
JALANDHAR” carried out by Mr. Shatender Verma S/o Sh. Suresh Kumar has been
accomplished under my guidance & supervision as a duly registered MBA student of the Lovely
Professional University, Phagwara. This project is being submitted by him in the partial
fulfillment of the requirements for the award of the Master of Business Administration from
Lovely Professional University.

His dissertation represents his original work and is worthy of consideration for the award of the
degree of Master of Business Administration.

___________________________________

(Name & Signature of the Faculty Advisor)

Title: ______________________________

Date: ______________________________

2
Date:

LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

DECLARATION

I, "Shatender Verma”, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere for the requirement of a
degree programme. Any literature, data or works done by others and cited within this dissertation
has been given due acknowledgement and listed in the reference section.

_______________________

(Student's name & Signature)

2020070024

(Registration No.)

Date:__________________

3
 Acknowledgement
A teacher and a guide has a great role to play in any field of research and discovery. No research
work can be done without the motivation, inspiration and guidance. At this juncture when my
project is accomplished, I feel deep sense of gratitude to all those who were instrumental in its
successful completion. I take the opportunity to put my earnest thanks to Miss Yogita Shani (the
project guide) who inspired and guided me a lot while making this projection “A STUDY ON
CUSTOMER SATISFACTION TOWARDS TWO WHEELER HERO-HONDA WITH
REFERENCE TO CBZ-XTREAM JALANDHAR.”

I am thankful to all the respondents who in spite of their busy schedule extended me their full
cooperation and support in filling up the questionnaire, thus helping me analyze my topic.

Last but not the least I thank all my friends and family members for their constant
encouragement, inspiration and guidance.

Above all, thanks to almighty God for showing his blessings for the accomplishment of this
project.

Shatender Verma

4
CHAPTE TITLE PAGE NO
R

EXECTIVE SUMMARY 1-2

3-4
1 INTRODUCTION

2 REVIEW OF LITERATURE 5-11

3 RESEARCH DESIGN
12-13
• Statement of problem

• Objectives of study

• Scope of the study

• Research methodology

14-36
4 STATISTICAL ANALYSIS
AND INTERPRETATION
37-38
5 SUMMARY OF FINDINGS &
CONCLUSIONS
39
6 SUGGESTIONS
BIBLIOGRAPHY 40-42
7

8 ANNEXURE 43-44

Questionnaire
CONTENTS

5
 EXECUTIVE SUMMARY

The concept of market is very important in marketing; a market is a group of buyers and sellers
interested in negotiating the terms of purchase /sale of goods/services. The negotiation work may
be conducted face to face at certain place. Exchange is the art of commerce of marketing.
Exchange is possible when there are two or more parties who have thus desire to exchange for
something else.
The customer is the king of the market, finally seven years after the liberalization of India’s
economy began and the market place has suddenly become frighteningly competitive. Not only
have new players including a host of powerful transactional, stormed into the country, there are
more brands available then ever before in every segments of ever market.
Customer’s satisfaction in an important element in the evaluation stage. Satisfaction refers to the
buyer’s state of being adequately rewarded in a buying situation for the sacrifice he has made.
Adequacy of satisfaction is a result of matching actual post purchase and consumption
experience with the expected rewarded from the brand in terms of its anticipated potential
Satisfy the customer’s motives. Satisfaction is a kind of stepping away from an experience and
evaluation it. One could have a pleasurable experience that caused dissatisfaction because even
through pleasurable it wasn’t as pleasurable as it was supposed as it was supposed or expected to
be. So satisfaction/dissatisfaction isn’t an emotion, it’sthe evaluation of an emotion. Customers
from certain expectations prior to the purchase.
a. The nature and performance of the product or service.

b. The costs and efforts to be expended before obtaining the direct product or service
benefits.

c. The social benefits or costs accruing it the customer as a result of the purchase.

In the objectives I have chosen only three objectives-:

6
 To determine the level of consumer satisfaction with respect to Hero Honda CBZ X-
Treme
To understand the expectation of the customer with respect to servicing at Hero Honda
CBZ X-Treme.
To determine that the service men are helpful in listening to the service needs.
To fulfil these objectives I have conduct a survey in Jalandhar (PB). I have collected 60
questionnaire.

7
 Chapter-1
Introduction :

Market:

It is an area for potential exchange. It is a place where goods are bought and sold. It is an area
where the sources supply (seller) and sources of demand (consumer) operate. It consists of all
potential customers sharing a particular need or market. Who might be willing/able to satisfy this
need or want?

Marketing Strategies:

A strategy is a plan of action, which could help in achieving objectives or goals; it could also be
defined, as the mechanism that adjusts the 4P’s is namely Product, Price, Place and Promotion
according to the changing time.

COMPANY PROFILE

About Hero Honda:

The Honda group came into existence during the termoil and the heady euphoria of
India’s freedom struggle. Munjal Brothers, founder of the Hero Honda group, was a confident
disciple deeply involved in the effort for freedom. The integrity, dedication, resourcefulness and
determination to succeed which are characteristic of the company today, are often traced back to
its birth during those long days of relentless devotion to a common cause. Brijmohan Lall, the
eldest son of Hero Honda, succeeded his father in 1984, at the age of twenty-seven, putting the
Nation before business; he devoted himself to the latter only after India achieved independence.
But when he did so, he put his heart and soul into it. Within a short while, he not only
consolidated the group but also diversified into various manufacturing activities, elevating the
Group to the status i e., enjoys till this day.

Objectives of the study:-

8
 • To determine the level of consumer satisfaction with respect to Hero Honda CBZ X-
Treme
• To understand the expectation of the customer with respect to servicing at Hero Honda
CBZ X-Treme.
• To determine that the service men are helpful in listening to the service needs.

Hero Honda CBZ X- Treme

CBZ X-Treme the great Hero Honda has the reliable technology and superior parts, it keeps
going on and on, in the harshest road of all life. CBZ X-Treme is the is a bike manufactured by
Hero Honda which gives the good mileage and it is stylish bike. It is all set to redefine existing
standards with its looks and new riding experience. And to top it all, an unbelievable mileage and
performances standards that you can only expect from Hero Honda.
The CBZ X-Treme is a tough and sleek 4-stroke machine. Crafted with the best of Hero
Honda companies worldwide technology. Each part, right from the engine to the body frame is
designed to withstand the rough and tough conditions. Be it in the streets or on the highway.
CBZ X-Treme is not the ordinary bike; it comes as a big surprise. To those who name resigned
to the fact that present full size bike do not satisfy their basic needs of riding comfort, loading
capacity and better fuel efficiency, CBZ X-Treme is a big surprise as it has got;
Reliable , newly designed 4-stroke engine.
Best fuel efficiency in its class.
Ample. Practical loading capacity.
Riding comfort even during multiple ride.
Masculine, though and sleek styling.

9
 Chapter-2

REVIEW OF LITERATURE
Archie Lockamy III, Wilbur I. Smith(2000) CBZ X-Treme ranks highest in customer
satisfaction with original Bike in India, according to the Auto car 2008 India original Bike
Customer Satisfaction Index (BCSI) study. The study analysis new –vehicle buyer’s
perceptions of five critica l factors regarding their original Bikes. In order of importance, they
are: appearance of Bikes, capacity of engine, durability of Bikes, ride quality, traction and
handling. For a time of 2007 -2008 CBZ X-Treme ranks highest in the study, improving its
overall performance to 840 points on a 1000-point scale -up 18 points from the 2008 study.
Hero Honda (CBZ) follows CBZ X-Treme in the rankings with 822 index points, while TVS
(Apache) (812) improves by 34 points to rank third. In particular, TVS (Apache) improves in the
durability and traction factors. The study finds that overall customer satisfaction has increased 12
index points from 2008 to average 801 points. Improvements throughout the industry can
primarily be attributed to increased customer satisfaction with the overall products. In particular,
John Groth Journal:Management Decision Year: 1995 CBZ X-Treme has increased
customer satisfaction through Bike improvements and new product introductions. Among
vehicle segments, small-car owners have greater satisfaction with their original Bike compared
to those in other vehicle segments. However, the average kilometers driven on a small vehicle
are nearly 10 per cent less than the industry average. Many individual companies and some
industries monitor customer satisfaction on a continual basis, but Sweden is the first country to
do so on a national level.
The annual Customer Satisfaction Barometer (CSB) measures customer satisfaction in more than
30 industries and for more than 100 corporations. The new index is intended to productivity
measures. Whereas productivity basically reflects quantity of output, CSB measures quality of
output (as experienced by the buyer). The author reports the results of a large-scale Swedish
effort to measure quality of the total consumption process as customer satisfaction. The
significance of customer satisfaction and its place within the overall strategy of the firm are
discussed. An implication from examining the relationship between market share and customer

10
satisfaction by a location model is that satisfaction should be lower in industry where supply is
homogeneous and demand heterogeneous.

Identification and analysis of moderator variables: Investigating the customer satisfaction-loyalty

link Research on the relationship between customer satisfaction and customer loyalty has
advanced to a stage that requires a more thorough examination of moderator variables. Limited
research shows how moderators influence the relationship between customer satisfaction and
customer loyalty in a service context; this article aims to present empirical evidence of the
conditions in which the satisfaction-loyalty relationship becomes stronger or weaker.
The empirical results suggest that not all of the moderators considered influence the satisfaction-
loyalty link. Specifically, critical incidents and income are important moderators of the
relationship between customer satisfaction and customer loyalty.

Gianfranco Walsh, Heiner Evanschitzky, Maren Wunderlich Year: 2008 Satisfying

different customer groups for IS outsourcing: a Korean IS company’s experience-:It is important
for an service company to fully take into account the differences in customer satisfaction across
different customer groups. In this article, we consider three layers of customers in the client
company. There are project directors who interface with and accept the final product (i.e. IT
system) from the IS company, users who actually use the IT system for their daily operations,
and finally operators who do maintenance works for the IT system. We propose that each
customer group (i.e. project director, user, or operator) evaluates the IT systems success with a
different set of criteria. Transaction relationship and partnership turn out to be important
determinants for the project directors: task-related and IS-related output performances seem to be
less influential. The reverse conclusion can be made for users and operators. One additional
insight is that IS company’s efforts to understand its customer’s tasks and share risks with the
customer company might have unexpected effects. Although the project directors seem to like
such close involvement, it can be detrimental to the users’ satisfaction with the IS outsourcing
projects.

Bowon Kim, Kyungbae Park, Jinyong Kim Year: 2003 , Social marketing: strengthening
company-customer bonds -: This article discusses optimizing customer retention using customer
relationship management (CRM) linked with social cause-related marketing. Establishing a

11
socially responsible synergy between company and customer is targeted to managers seeking
creative and innovative approaches that strengthen the value equation. The discussion focuses on
the progression of CRM from early links to basic database information to its current complex
form whereby customers may be outsourced if they do not meet loyalty and mutual value
parameters. A ten-question test for testing CRM strategy is included, along with the steps
required for adding SCRM to the company-customer relationship.
CRM maximizes customer satisfaction while SCRM maximizes customer loyalty. Together,
CRM and SCRM can optimize customer retention by sharing socially responsible activities.
Tremendous goodwill with customers and in the marketplace can be generated from the synergy
of CRM .

12
Marios Katsioloudes, Jim Grant, Donelda S. McKechnie Year: 2007 -:Customer relational
benefits have been identified as a driving motivation for consumers to engage in long term
relationships with service providers. Such benefits can be expected to play a crucial role in
the success of service firms when extending their business into other countries and
cultures. Most of the previous discussion of relational benefits has been conducted almost
exclusively in North-American contexts and has not addressed the impact a nation’s
culture may have on the relevance of relational benefits for gaining relationship outcomes
such as customer loyalty. The aim of this article is to deepen our understanding of the role
of relational benefits in developing long-term relationships with consumers in a cross-
cultural context. Specifically, propositions focusing on the moderating role of power
distance, individualism/collectivism, masculinity/femininity, and uncertainty avoidance
for the benefits-outcomes relationship are developed. The article concludes with a
discussion of potential implications for service firms and researchers.

Thorsten Hennig-Thurau, Kevin P. Gwinner, Year: 2004 Creating a customer-focused

culture: some practical frameworks and tools-: Many companies have customer
service departments which act as a barrier between the company and the customer. Is
customer service represented at the top? How credible is a customer satisfaction index?
What effect does this have on customer service? This article discusses a tool for assessing
the degree of customer focus within an organization’s culture.

Steve Macaulay, Graham Clark Year: 1998 Culture in defining consumer satisfaction in
marketing-:The objectives of this article are to explain the importance of company culture and to
point to the appropriateness of customer orientation as a method of expressing culture. The
article further determines the connection between customer satisfaction and employee
satisfaction and points to possible resistance when creating company culture through customer
orientation. It further defines the relation between company mission and culture and explains the
significance of researching value and researching customer satisfaction as basic preconditions of
customer orientation in culture.

13
Tihomir Vranesevic, Claudio Vignali, Daniella Vignali Year: 2002Customer satisfaction
and the marketing-quality interface-:Despite long-standing interest in the quality movement
by marketing scholars, marketing managers have not seized opportunities to provide leadership
as the quality movement has centered attention on customer satisfaction. Significant corporate
investments in quality programs suggest that the recent revision of the ISO 9000 standards to
focus on collection and use of customer satisfaction data may provide marketing managers an
invitation to meaningfully enter the quality dialogue. Collaboration between marketing and
quality management is problematic because the two functions are highly differentiated. This
article draws on work in organizational learning and organizational behavior to identify criteria
for successful collaboration between marketing and quality management and to propose a
process for meeting the new ISO 9000 requirements.

Edward U. Bond III, Ross L. Fink Year: 2003 Developing and managing effective consumer
relationships-:Research in the area of interpersonal relationships can be employed to assist
marketers in developing strong customer relationships to gain competitive advantages or to
position themselves in the marketplace. The process of relationship formation, maintenance and
dissolution is used as a framework for examining key elements of successful relationships. Three
important elements of relationships are discussed and recommendations are made to marketers in
handling these aspects of a relationship. Additionally, scales to measure consumer trust and
commitment are provided.

Randi Priluck Grossman Journal: Journal of Product & Brand Management

Year: 1998, Developing and managing effective consumer relationships

Research in the area of interpersonal relationships can be employed to assist marketers in

developing strong customer relationships to gain competitive advantages or to position
themselves in the marketplace. The process of relationship formation, maintenance and
dissolution is used as a framework for examining key elements of successful relationships.
Three important elements of relationships are discussed and recommendations are made to
marketers in handling these aspects of a relationship. Additionally, scales to measure
consumer trust and commitment are provided. Satisfaction, quality and value and effects on
repurchase and positive word-of-mouth behavioral intentions in a B2B services context

14
 Lori K. Molinari, Russell Abratt, Paul Dion ,Year: 2008 , The aim of this article is to
provide an understanding of how satisfaction, quality, and value affect repurchase and
positive word-of-mouth in a business-to-business (B2B) setting. Most previous studies in
this area apply to business-to-consumer (B2C) situations. An exploratory pilot study was
undertaken to gain a better understanding of these users and to test the research instrument.
Structural equation modeling was used to test the constructs. The results showing the best-fit
model identified a number of relationships that were unexpected.

Russell Abratt, Paul Dion Journal: Journal of Services Marketing ,Year: 2005 Critical
success factors in the personal selling process: This article identifies the selling techniques
that are critical success factors for salespeople who sell banking products and services in
Ecuador. The study examines the selling techniques that differentiate top and bottom sales
performers in the Ecuadorian banking industry. Both self-reported and supervisor ratings are
used to measure salesperson performance. The results suggest that differences in
performance between top and bottom performing salespeople relate to the use of five selling
techniques: examining records at the prospecting stage of the selling process; approaching
prospects using statements about the salesperson, the bank, or the names of persons who
referred the prospect; using customer friendly language during the sales presentation; being
knowledgeable of the benefits of the banks’ products and being able to clarify the products’
benefits; and ensuring post-purchase satisfaction of existing customers

15
Fernando Jaramillo, Greg W. Year: 2004 Understanding customer level profitability
implications of satisfaction programs (2008) Achieving high level of customer satisfaction
(CS) involves spending marketing resources in terms of money, managerial time, and focus.
Consistent with the return on quality framework this paper aims to look at both the costs and
benefits of a satisfaction program. This paper reports the results of a longitudinal study of a
beverage distributor. Two satisfaction surveys were conducted before and after the launch of
the program. Profitability was calculated using activity based costing principle. It was found
that as a result of the launch of satisfaction program CS increased significantly, but the
weighted least square analysis of the relationship between CS and customer profitability
(CP) shows that it does not necessarily result in higher customer profits. CS is found to be
positively related to sales volume and gross profits at the customer level.

Goutam Chakraborty, Prashant Srivastava, Fred Marshall (2007) The aim of this study is
to identify the drivers that influence customer satisfaction in a business-to-business context. A
survey-based field study was conducted in which 1,068 business customers of a manufacturer of
hydraulic and pneumatic equipment participated. Buyers/users reported their perceptions about
and satisfaction with a supplier's product-related services. Three drivers of customer satisfaction,
reliability, product-related information, and commercial aspects, were identified. The importance
of the last two drivers differed depending on the buyer's/user's primary functional area. For
respondents from purchasing and management, commercial aspects were found to be more
important than product-related information. For participants from engineering, maintenance, and
production, productrelated information was found to be more important than commercial aspects.
Mark S. Johnson, Eugene Sivadas, Ellen Garbarino (2008) Customer satisfaction, perceived
risk and affective commitment: an investigation of directions of influence. This paper aims to
examine competing models of the directionality of influences between customer satisfaction,
affective commitment, and the customer's perceptions of risk associated with a service
organization. It also aims to include the effects of a customer's prior experience with the
organization and experience with other organizations in the service category in the models.
Structural equation models of data from a survey to customers of a performing arts organization
are used to test the hypotheses. The study suggests that commitment has a positive influence on
customer satisfaction and diminishes risk perceptions. There is less support for a model in which
satisfaction increases commitment and reduces perceived risk

16
Mohammed Saad, Bhaskar Patel (2006) An investigation of supply chain performance
measurement in the Indian automotive sector . The purpose of this paper is to investigate the
relevance of the concept of supply chain performance in developing countries. The research also
attempts to identify performance measure sets for supply chain performance in the context of a
developing nation.The research focuses on supply chain practices in the Indian automobile
sector. It identifies and discusses the main motives and determinants for the adoption and
implementation of supply chain management concepts. It reviews the relevance of the main
models to measure the performance of supply chain in developing countries. The research is
based on a combination of qualitative and quantitative methods. Primary data were collected
through semi-structured interviews and an exploratory survey.

J.A.F. Nicholls, Sydney Roslow (1996) Relationship between situational variables and
purchasing in India and the USA. Explores the universality of Belk’s concept of situational
variables in their relationship with consumer purchase within two different cultures. Considers
the relationship of five empirical dimensions with two measures of consumer purchase
behaviour. The five empirical manifestations of the situational variables were included in
surveys conducted in India. The empirical dimensions of the situational variables (frequency of
shopping visit; the usual time of day for shopping; travel time; time spent; and number of
companions) were all statistically significant when comparing India and the USA with respect to
shopping behaviour. Includes examples of how marketers might influence consumer situations
within the Belkian framework in order to modify purchase behaviour.

17
 Chapter-3
RESEARCH DESIGN
Scope of the study:-

The scope of the study for a particular product is very important. So this study would
help Hero Honda to recognize the factors influencing consumer behavior towards Hero Honda
CBZ X-Treme and also to identify various features influencing in the buying process. In short,
the study covers the area consumer behaviors their and perception of two wheelers owners.

The customer satisfaction, brand equity, customers study are some of the important data which
are covered in the project report and therefore it is wide customer survey for improving
marketing. The integral part of this study is to help Hero Honda CBZ X-Treme in positioning
and targeting by providing them with the market information with reference to Hero Honda
market in

RESEARCH METHODOLOGY
Research design adopted for the study:

Exploratory research design is adopted under which case method is felt to be more
formalized so that the point to be investigated is known correctly. The interview is targeted to a
small group of selected individuals form the chosen areas of the city.

Research instrument:-

A structured questionnaire of both open and closed end is felt necessary for the research
problem.

18
Data collection or sources of data:-

When once a research design is planned and finalized then task of collecting both primary
and secondary data has to proceed keeping in view the research problem.

Primary data can be collected through number of method such as survey and observation
method. The primary data is collected through structured questionnaire from the customers.

The secondary data is gathered through external sources.

External sources:-

Survey Reports

Business magazines

Trade Journals

Report of some specific projects ,Internet

Sampling Design:-

Sample design is the basic unit containing the elements of population to be sampled.

Jalandhar City is our target area for study.

Sample size:-

A sample size of 60 respondents will be chosen .

Test Application-: Chi-Square test

Chi-square test" is often shorthand for Pearson's chi-square test.
A chi-square test (also chi-squared or χ2 test) is any statistical hypothesis test in which the
test statistic has a chi-square distribution when the null hypothesis is true, or any in which the
probability distribution of the test statistic (assuming the null hypothesis is true) can be made to
approximate a chi-square distribution as closely as desired by making the sample size large
enough.

19
 Chapter-4
STATISTICAL ANALYSIS
Table –1:

Table showing the age of respondents.

Age No., of Purchaser Percentage

18-21 14 23%

22-35 25 41%

36-45 12 20%

45 yrs above 9 16%

Total 60 100%

Source: primary data

Concept: -

An attempt has been made in order to no the different age group of purchasers.

Analysis: -

23% of purchases are in the age group between 22.35years.

41% of purchasers are in the age group between 36 – 45 years.

20% of purchasers are in the age group between 18 – 21 years. 16 % of purchasers are in the
age group between 45 years.

Interpretation:

From the above analysis it can be inferred that majority of purchaser are in the age group of
22-35 Year.

Graph 1.

Graph showing the age of respondents.

20
Table 2:

Table showing the sources, which have created awareness and influenced them to
purchase CBZ X-Treme.

Sources No. Of respondents Percentage

Magazines 16 26%

Friends/ Business circle 15 25%

Road presence 25 42%

Other media Television 04 7%

Total 60 100%

Source: primary data

Concept: -

showing the various sources which created awareness & influence then to purchase CBZ X –
Treme

Analysis:

42% of respondents are get awareness from road presence

21
 26% of respondents are get awareness from Magazines 25% of respondents are get awareness
from Friends 7% of respondents are get awareness from others Media Television

Interpretation:

From the above analysis it can be inferred that majority of respondents get awareness of the
product from road presence.

Graph-2:

Graph showing the sources, which have created awareness and influenced them to
purchase Hero Honda CBZ X-Treme.

22
 Table No-3

Table showing respondents opinion about the cost of Hero Honda CBZ X-Treme

Cost No., of respondents Percentage

Very cheap 08 13%

Cheap 24 40%

Expensive 16 27%

Highly expensive 12 20%

Total 60 100%

Source: primary data

Chi-Square Test
Test Statistics
Cost of bike
Chi-Square 9.333a
Df 3
Asymp. Sig. .025
a. 0 cells (.0%) have expected
frequencies less than 5. The
minimum expected cell frequency
is 15.0.
Frequencies

Cost of bike
Observed N Expected N Residual
Very cheap 8 15.0 -7.0
Cheap 24 15.0 9.0
Expensive 16 15.0 1.0
Highly Expensive 12 15.0 -3.0
Total 60

Hypothesis-: H0: Customers do not think that it is costly bike.

H1: Customers think that it is costly bike.

After applying Chi-Square test I came to know that our calculated value is more than the table
value so H1 is accepted.

23
Concept:

An attempt has been made to know the opinion of the respondent about cost of Hero Honda
CBZ X-Treme.

Analysis:

27% of respondent viewed that it is expensive

40%of respondent viewed that it is cheap

20% of respondents viewed that it is highly expensive

13% of respondent viewed that it is very cheap.

Interpretation:

Majority of respondent viewed that cost of Hero Honda is cheap.

Graph No-3

Graph showing respondents’ opinion about the cost of Hero Honda CBZ X-Treme

24
 Table No-4

Table showing the factors, which influenced the respondents to purchase Hero Honda
CBZ X-Treme

Influencing factors No., of respondents Percentage

Style 08 13%
After sale service 08 13%
Milage 20 33%
Quality 10 17%
Smooth grip 14 24%
Others 0 0%
Total 60 100%

Source: primary data

Concept:
An attempt has been made to the influenced factor to parches Hero Honda CBZ X- Treme

25
Analysis: -
33% of Respondents viewed that mileage is influenced them to purchase
17% of Respondents viewed that quality is influenced them to purchase
24% of Respondents viewed that Smooth grip is influenced them to purchase
13% of Respondents viewed that style is influenced them to purchase
13% of Respondents viewed that Services is influenced them to purchase

Interpretation: From the above table it is clear that mileage plays a very important role in the
decision making process which constituted33% followed by the quality of the product 17% and
24% influenced smooth grip and 13% by style and after sales service.

26
Graph No-4

Graph showing the factors, which influenced the respondents to purchase Hero Honda
CBZ X-Treme.

Table No.5
Table showing the service point where the respondents get their bike serviced.

Service point Number of respondents Percentage

Show room 48 80%

Authorized service 12 20%

center
Total 60 100%

Source: primary data

Concept: An attempt has been made to find out the point where the respondents get there bike
serviced.
27
Analysis: From the above table it is clear that almost almost all the respondents get there
vehicles serviced at Hero Honda showroom it accounts for 80%of total respondent and only
20% set there vehicle service.

Interpretation:
From the above table it is clear that majority of the respondent get there vehicles serviced at
Hero Honda showroom.
Graph No.5

Graph showing the service point where the respondents get their bike serviced.

Table No-6
Table showing Respondents opinion about the behaviour (i.e., Customers) of service men in
Hero Honda show room

28
 Opinion Respondents Percentage
Good 40 67%
Poor 20 33%
60 100%
Total
Source: primary data

Concept: An attempt has been made to know the behavior of service man in Hero Honda
showroom.

Analysis:
67%of respondents said it is good.
33% of respondent said it is poor.

Interpretation:
Honda showroom From the above analysis it is clear that majority of the respondent feel that
behavior of the service men at Hero is good.

Graph No-6
Graph showing Respondents opinion about the behaviour (i.e., Customers) of service men
in Hero Honda show room

29
Table No-7
Table showing respondents’ opinion about availability of spare parts.

Respondents Percentage
Opinion
Always available 20 33%
Generally available 40 67%
Total 60 100%
Source: primary data

Concept:
An attempt has been made to know the respondents opinion about the service offered by the
customer service cell.

Analysis:
67% of the respondents viewed it is generally available
33% of the respondents viewed it is always available

Interpretation:

30
From the above analysis it is clear that majority of the respondents are viewed that spare parts
are generally available

Graph No-7

Graph showing respondents’ opinion about availability of spare parts.

Table No-8
Table showing satisfaction level of respondents about the cost of service and cost of spare
parts.

31
 Respondents Percentage
Opinion

Completely satisfied 20 33%

Satisfied 30 50%
Some what satisfied 10 17%
Total 60 100%
Source: primary data

Chi-Square Test
Test Statistics
Cost of service
Chi-Square 10.000a
Df 2
Asymp. Sig. .007
a. 0 cells (.0%) have expected
frequencies less than 5. The
minimum expected cell frequency is
20.0.

Frequencies

Cost of service
Observed N Expected N Residual
Some what satisfied 10 20.0 -10.0
Satisfied 30 20.0 10.0
Completly satisfied 20 20.0 .0
Total 60

Hypothesis-: H0: Customers do not satisfied with the cost of service offered.

H1: Customers satisfied with the cost of service offered.

After applying Chi-Square test I came to know that our calculated value is more than the table
value so H1 is accepted.

Concept:

32
An attempt has been made to find out the satisfaction level of the respondents about the cost of
service and cost of spare parts.
Analysis:
50% of the respondents are satisfied
33% of the respondents are completely satisfied
17%of the respondents are some what satisfied
Interpretation:
From the above analysis it is clear that majority of the respondents are satisfied with the cost of
service and cost of spare parts.

Graph No-8 Graph showing satisfaction level of respondents about the cost of service and
cost of spare parts.

Table No-9
Table showing respondents’ satisfaction about the condition of the vehicles delivered after
service.

Satisfied Respondents Percentage

Yes 53 88%
No 07 12%

33
 60 100%
Total
Source: primary data

Concept:
An attempt has been made to know the respondents satisfaction about the condition of the
vehicles delivered after service
Analysis:
88% of the respondents are satisfied
12% of the respondents are not satisfied
Interpretation:
From the above analysis it is clear that majority of the respondents are satisfied with the
condition of the vehicles delivered after service.

Graph No-9

Graph showing respondents satisfaction about the condition of the vehicles delivered after
service.

Table No-10
Table showing suggestions to gain more sales

34
 Respondents Percentage
Opinion
Improvement in advertising 10 17%
Cost reduction 15 25%
Gift schemes 10 17%
Exchange scheme 07 12%
Improvements after sales service 08 12%
Any other method 10 17%
60 100%
Total
Source: primary data

Concept:
An attempt has been made to find out the respondents suggestions to gain more sales.
Analysis:
17% of the respondents suggested that improvements in advertisement.
12% of the respondents suggested that improvement in exchange scheme.
17% of the respondents suggested that improvement in gift schemes.
25%of the respondents suggested that improvement in cost reduction.
12%of the respondents suggested that improvement in after sales service
17%of the respondents suggested that improvement in any other method.

Interpretation:
From the above analysis it is clear that majority of the respondents are suggested that
improvement in advertisement and in exchange scheme.

35
Graph 10

Graph showing suggestions to gain more sales

36
Table No-11
Table showing the performance of your CBZ X-Treme bike.

Respondents Percentage
Opinion
Better than expected 32 53%
As expected 28 47%
Total 60 100%
Source: primary data

Chi-Square Test

Test Statistics
pERFORMANCE
OF BIKE
Chi-Square .267a
Df 1
Asymp. Sig. .606
a. 0 cells (.0%) have expected
frequencies less than 5. The
minimum expected cell frequency is
30.0.

Frequencies

PERFORMANCE OF BIKE
Observed N Expected N Residual
As Expected 28 30.0 -2.0
Better than Expected 32 30.0 2.0
Total 60

Hypothesis-: H0: Customers are not satisfied by the performance of bike.

H1: Customers are not satisfied by the performance of bike.
After applying Chi-Square test I came to know that our calculated value is more than the table
value so, H1 is accepted.

37
Concept:
An attempt has been made to know the respondents opinion about performance of the CBZ X-
Treme bike..
Analysis:
53% of the respondents viewed that they are get what the they expect.
47% of the respondents viewed that better then expected
Interpretation:
From the above analysis it is clear that majority of the respondents are viewed that performance
of CBZ bike is as for their expectation.

Graph No-11
Graph showing the performance of your CBZ X-Treme bike.

38
 Table No-12
Table showing the respondents opinion about the seating position of the CBZ X-Treme
bike.

Opinion Respondents Percentage

Comfortable and safe 20 33%
Comfortable 18 30%
Comfortable but dangerous 12 20%
Not comfortable but dangerous 10 17%
Total 60 100%
Source: primary data

Concept:
An attempt has been made to know the respondents opinion about seating position of the CBZ X-
Treme bike.
Analysis:
33% of the respondents viewed that comfortable and safe.
30% of the respondents viewed that comfortable.
20%of the respondents viewed that comfortable but dangerous.
17%of the respondents viewed that not comfortable but dangerous.
Interpretation:
From the above analysis it is clear that majority of the respondents are viewed that seatinfg
position of the CBZ X-Treme bike is comfortable and safe.

39
Graph No-12
Graph showing the respondents opinion about the seating position of the CBZ X-Treme
bike.

40
VISION:
To be amongst most trusted power utility company of the counter by providing environment
friendly power on most cost effective basis ensuring prosperity for its stakeholders and growth
with human face

MISSION:
Hero Honda’s mission is to strive for synergy between technology, systems and human
resources, to produce products and services that meet the quality, performance and price
aspirations of its customers. At the same time maintain the highest standard of ethics and social
responsibilities

The mission is what drives Hero Honda to new heights in excellent and helps the organisation
forge unique and mutually beneficial relationships with all its stakeholders.

OBJECTIVES AND GOALS OF HERO HONDA COMPANIES:

The objective of Hero Honda Auto is a sharp increase in output and also greater variety in the
companies product mix.

Transparency  A commitment that the business is managed along

transparent lines.

Fairness  To all shareholders in the company, but especially

to minority shareholders.

Disclosure  Of all relevant financial and non-financial information in an easily

understood manner.

Supervision  Of the company’s activities by professionally

competent and Independent board of directors.

41
SWOT ANALYSIS

STRENGTH:

Technical expertise in collaboration with Hero Honda Heavy Industries, Japan.

World lowest cost Manufactures in the market Extensive service and dealer Networks.

WEAKNESS:

In the late 70s there was skid in production due to intermittent labour problem Underutilization
of the Not considered living with times

OPPORTUNITIES:

Virtual zero maintenance among the products

Honda plans to offer CNG models With Euro II Complaint

Focusing more on motorcycles to capture the urban market

THREATS:

Competition from MNC’s

Govt. Regulations Dealers not adjusted realities
Increase of secondary or resale market For 2 wheeler

42
 Chapter-5
SUMMARY OF FINDINGS & CONCLUSIONS

FINDINGS OF STUDY

• Majority of the respondents who prefer the ride the Hero Honda CBZ X-Treme are in the
age group of 25-35 years. So, we can say that more than 80% customers are satisfied
from bike.
• Majority of the respondents are influenced by the presence of Hero Honda CBZ X-Treme
on the road and another 26% are influenced by Magazine.
• More than 40% of the respondents feel that the cost of the Hero Honda CBZ X-Treme is
cheap and they also feel that the cost of the spare parts of the vehicle are also cheap.
• More than 33% of the respondents are influence by mileage and quality of Hero Honda
CBZ X-Treme.
• Most of the respondents (ie.80%) were prefer to go to show rooms for servicing their
vehicles.
• 67% of the respondents are not satisfied with the behaviour and response of servicemen
at Hero Honda show Room.
• All most all the respondents satisfied with the availability of spare parts in the show room
all the times.
• 50% of the respondents satisfied with the cost of services and cost of spare parts.
• All most all the respondents satisfied with the condition of the vehicle that is delivered
after service by the show rooms.
• 53% of the respondents fell that the overall performance Hero Honda CBZ X-Treme is
better than what they have expected and another 47% feel that it is upto their expectation
level.
• 33% of the respondents feels that the seating position of CBZ X-Treme is comfortable
and also safe while driving.

43
 CONCLUSION

From the study it is concluded that majority of the customer are satisfied by CBZ X-Treme
rendered by the Hero Honda.

While doing this project I came to know how challenging it is to satisfy the present day
customers I also realize various types of customers. Right from those who have genuine
problems to those ego problems, but how important it is to satisfy all of them.

During the course of project, I also understood that all customers cannot be satisfied at all times.
It is only how closer can we come to the complete satisfaction level, which actually matters.

44
 Chapter-6
SUGGESTIONS

Based on the findings of the study, stating some of the important suggestions that the company can
really go for to extend its operation Market share, profits and so on.

Concentrate on effective and informative Advertisement strategies:

We are living in the information era. Some are the days when company used to develop something
and continue it for a long time. The PLC has shortened. Hence, company should be first in
providing information to customers.

In order to attract and retain the customers the company should:

Develop both the informative and attractive advertisement strategies.

Company should go for advertising about the product in almost all the medias.

Regular modification should be the content of the advertisement.

The presentation of the advertisement should be appealing to the customer.

2) Rewards for Best Dealers:

In the present competitive markets, a company cannot develop on its own efforts. It has to
depend on others, i.e., it has to take effective support from its dealers. To get effective supports.
It has to study and motivate them like:

The company has to provide rewards, awards, offers, discount, to its dealers to promote this
product very effectively in their domestic market. If implemented, definitely they may lend to
tremendous increase in the turnover of the company.

45
 Chapter-7
Bibliography-:
Books-: Marketing Management by Kotler
Websites-:

http://www.thehindubusinessline.com/2006/05/15/stories/2006051503170100.htm

http://www.fadaweb.com/tns_2005.htm

http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Customer_satisfaction_of_
scooters_drops_TNS_study/articleshow/2634012.cms

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 Archie Lockamy III, Wilbur I. Smith Journal: Industrial Management & Data Systems
Year:2000, Volume: 100 , Issue: 5 Page: 210 – 218 Publisher: MCB UP Ltd

 John Groth Journal:Management Decision Year: 1995 , Volume: 33 , Issue: 7 Page: 29 –

34 Publisher: MCB UP Ltd

 Agarwal, R. (2006), “Managing outsourcing: IT or business”, paper presented at

International Conference on Recent Trends in Information Systems, Kavilpatti, pp. 662-6.
 Cosgrove Ware, L. (2006), “Upward and onward with outsourcing”, CIO Magazine,
August 1.
 Jaksa Kivela, Robert Inbakaran, John Reece Journal: Industrial Management & Data
SystemsYear: 1999 Volume:11 ,Issue: 5, Page:205 – 222 Publisher: MCB UP Ltd

 Gianfranco Walsh, Heiner Evanschitzky, Maren Wunderlich Journal: European Journal

of Marketing Year: 2008 Volume: 42 Issue:9/10 Page: 977 – 1004 Publisher:Emerald
Group Publishing Limited

 Bowon Kim, Kyungbae Park, Jinyong Kim ,Journal: Asia Pacific Journal of Marketing
and Logistics ,Year: 2003 ,Volume: 15 ,Issue: 3 Page: 48 – 69 Publisher: Barmarick
Publications

46
 Marios Katsioloudes, Jim Grant, Donelda S. McKechnie Journal:Journal of Business
Strategy,Year: 2007,Volume: 28 Issue: ,Page: 56 – 64 Publisher: Emerald Group
Publishing Limited

47
 Thorsten Hennig-Thurau, Kevin P. Gwinner, Dwayne D. Gremler, Michael Paul Book
Series: Advances in International Marketing Year: 2004 ,Volume: 15 Page: 11 – 31
Publisher: Emerald Group Publishing Limited

 Steve Macaulay, Graham Clark Journal: Managing Service Quality Year: 1998 , Volume:
8,Issue: 3 , Page: 183 – 188 Publisher: MCB UP Ltd

 Tihomir Vranesevic, Claudio Vignali, Daniella Vignali Journal: European Business

Review, Year: 2002, Volume: 14, Issue: 5 Page: 364 – 374 Publisher: MCB UP Ltd

 Edward U. Bond III, Ross L. Fink Journal: Journal of Business & Industrial Marketing
Year: 2003,Volume: 18, Issue: 3 Page:204 – 218 Publisher: MCB UP Ltd Randi Priluck
Grossman Journal: Journal of Product & Brand Management Year: 1998, Volume: 7 ,
Issue: 1 Page: 27 – 40 Publisher: MCB UP Ltd

 Lori K. Molinari, Russell Abratt, Paul Dion Journal: Journal of Services Marketing ,Year:
2008 , Volume: 22, Issue: 5 Page: 363 – 373 Publisher: Emerald Group Publishing
Limited

 Fernando Jaramillo, Greg W. Marshall Journal: International Journal of Bank Marketing,

Year: 2004 ,Volume: 22 , Issue: 1 Page: 9 – 25 Publisher: Emerald Group Publishing
Limited

 J.A.F. Nicholls, Sydney Roslow, Sandipa Dublish, Lucette B. Comer Journal:

International Marketing Review Year: 1996 Volume: 13 Issue: 6 Page: 6 - 21 Publisher:
MCB UP Ltd

 Mohammed Saad, Bhaskar Patel Journal: Benchmarking: An International Journal Year:

2006 Volume: 13 Issue: 1/2 Page: 36 - 53

 Mark S. Johnson, Eugene Sivadas, Ellen Garbarino Journal: Journal of Services

Marketing Year:2008 Volume:22 Issue:5 Page:353 – 362

 Goutam Chakraborty, Prashant Srivastava, Fred Marshall Journal: Journal of Business &
Industrial Marketing Year: 2007 Volume:22 Issue:1 Page:20 – 28 Publisher: Emerald
Group Publishing Limited.

48
 Rakesh Niraj, George Foster, Mahendra R. Gupta, Chakravarthi Narasimhan Journal:
Journal of Business & Industrial Marketing Year:2008 Volume:23 Issue: 7 Page 454 -

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Review, Year: 2002, Volume: 14, Issue: 5 Page: 364 – 374 Publisher: MCB UP Ltd.

Chapter-8
QUESTIONNAIRE

49
Dear Sir,
I am a 2nd year student of MBA, Lovely Professional University, I am undertaking a project title
“A STUDY ON CUSTOMER SATISFACTION TOWARDS TWO WHEELER HERO-HONDA WITH
REFERENCE TO CBZ-XTREAM IN JALANDHAR.”

I request you kindly to furnish the following particulars to complete my project, for which I will remain
grateful to you.
Thanking you,
SHATENDER VERMA.
Name and address :
Age:
18 to 21 years ¨ 22 to 35 years ¨
36 to 45 years ¨ 45 years and above ¨
Occupation:
Student ¨ Self employed ¨
Salaried ¨ Others (specify) ¨

1. What is the engine cubic capacity of your bike?

150 CC ¨ 180 CC ¨

2. Usage of the bike for

To work place ¨ To college ¨
For house, ¨ work and family use ¨

3. Are you aware of CBZ X-treme ,if yes how you come to know
Magazine ¨ Friends and business circle ¨
Road presence ¨ Other media (specific) ¨

4.What is colour of your bike:

Silver ¨ Blue ¨ Black ¨ Red ¨

5. What do you feel about the cost of your bike ?

50
Very cheap ¨ Cheap ¨
Expensive ¨ Highly expensive ¨
6. What factors attract you to buy “CBZ X-Treme”:
Style ¨ After sale support ¨ Mileage ¨ Quality of the product ¨
Smooth grip ¨ Others (specify) ¨
7. Where do you get your vehicle serviced?
Hero Honda showroom ¨ Other road side mechanics ¨
8.Are the service men courteous at Hero Honda Showroom ?
Yes ¨ No ¨
9. How is the availability of spares?
Always available ¨ scarcely available ¨ Not available ¨
10. Are you satisfied with the bills charged ?
Completely satisfied ¨ Satisfied ¨
Somewhat satisfied ¨ Not at all satisfied ¨
11. Are you happy about the condition of the bike delivered after service
Yes ¨ No ¨
12. What improvements and promotions you suggest to gain more sales volume
As market share
Improvement in advertising ¨ Cost reduction ¨
Gifts schemes ¨ Exchange schemes ¨
Improvement in after sales service ¨ Any other methods (specify) ¨
13. What do you feel about the performance of your “CBZ X -Treme “ bike
Better than expected ¨ As expected ¨ Worst performance ¨
14. What is your opinion about the seating position of the bike
Comfortable and safes ¨ Comfortable ¨ Comfortable but dangerous ¨
Not comfortable and dangerous ¨
15. Are you happy with the high speed handling of the bike
Yes ¨ No ¨
If no,
What problems did you experienced……………
Your special comments, if any

51
THANK YOU

52