A

SYNOPSIS

ON

“A Study of Customer Satisfaction on Maruti Suzuki in Indore city”

Submitted to

DEVI AHILYA VISWAVIDYALAY INDORE M.P

In the partial fulfillment for the degree

Of

Master of Business Administration(Session 2011-2013)

Under the supervision of: Submitted by:

Dr. Indu Bhargva Dhirendra Singh Baghel

HOD OF MBA

DeclarationI hereby declare that the Market Research entitled A Study of Customer Satisfaction on Maruti Suzuki in Indore city “and the information presented in this report has been written by mean the basis of survey of A Study of Customer Satisfaction on Maruti Suzuki in Indore city”‘This is correct to the best of my knowledge and the report presented has not been published anywhere else.

ACKNOWLEDGEMENTThe successful accomplishment of any task is incomplete without acknowledging the contributing personalities who assisted, inspired and lead us to visualize the things that turn them into successful stories for our successors. First, I thank the Almighty God for his grace bestowed on me throughout this project. My special thanks to my respected my respected Guide HOD of MBA Dept. Mrs. Indu Bhargava and guide by Mr. Varun Kumar, who guided me with the timely advice and expertise and helped me complete the project early.

CONTENT

Acknowledgement

Declaration

Chapter-I Introduction

1.1 Introduction

2.2 Conceptual framework

3.3 Introduction to the sector

4.4 Literature review

Chapter- II Research methodology

2.1 Research Design

2.2 Research Objectives

2.3 Sampling design

2.5 Analytical tool used

2.6 Limitation of study

Chapter- III Data Analysis & Interpretation.

3.1 Factor Analysis

Chapter- IV Suggestion & Conclusion

Reference & Bibliography

Appendix

I NTRODUCTION Whether the buyer is satisfied after purchase depends on the offer’s performance in relation to the buyer’s expectations. Satisfaction is a person’s fallings of pleasure or disappointment resulting from comparing a product’s perceived performance 9or outcome) in relation to his or

her expectations. As this definition makes clear, satisfaction is a function of perceived performance and expectation. If the performance falls short of expectations, the customers, the customer is dissatisfied. If the performance matches the expectations, the customers are satisfied. If the performance exceeds expectations, the customers are highly satisfied or delighted.

Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional bond with the brand, not just a rational performance. The result is high customer loyalty. Xerox’s senior management believes that a very satisfied or delighted customer is worth 10 times as much to the company as a satisfied customer. A very customer is likely to stay with Xerox many more years and buy more than a satisfied Satisfaction is the person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived in relation to his or her expectations. In general, if performance of the products matches the expectations, the customer is said to be satisfied. Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectations. In a competitive marketplace where business competes for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. If performance exceeds expectations, the customer is said to be highly satisfied or delighted. If the performance falls short of expectations, the customer is said to be dissatisfied.

KEY INITIATIVES FOR SATISFYING CUSTOMERS

Car pickup & delivery facility for women car owners’ Quote Unquote: "The study finds that vehicle pickup and delivery before and after service has a strong impact on customer satisfaction. In particular, customers who say that their vehicle was picked up from their doorstep before service and delivered to the same point after service are notably more delighted with their after-sales service experience, compared with customers who do not receive this service...." Car Safety device: Immobilizer”

The company used technology to meet customer needs and even delight them. Following feedback that the company's cars were more prone to theft owing to their resale value, the company worked on an anti-theft immobilizer or "I-Cats;" system for all its new cars.

There are five major factors, which affected satisfaction of the car namely: -

Problems Experienced

Contributing to 35% of the CSI score, this factor measures the quality of the car in terms of the number of repair problems that cropped up and how often it was returned for re-service.

Service Advisor

This related to ability of the services advisor to ability of the service advisor to understand the problem and his promptness in attending to the customer, contributing to 28% of the CSI Score.

Service Performance

Measures the quality of the service performed as well as the dealer’s ability to fix a problem on the first visit. It has a weight age of 26% in the CSI score and also considers how easily spare parts are available when required.

Service Timing

Affecting the score by just 6%, this time taken for a service or repair job was responsible and if the vehicle was ready at the time promised.

Facility Appearance

Deals with the appearance of the customer lounge at the dealership and the look and cleanliness of the service area. This factors has the least impact CSI score at Just 5%

When to Conduct a Customer Satisfaction Survey

The best time to conduct a customer satisfaction survey is when the experience is fresh in their minds. If you wait to conduct a survey, the customer's response may be less accurate. He may

have forgotten some of the details. She may answer about a later event. She may color his answers because of confusion with other visits. She may confuse you with some other company.

How You Ask Whether Customers Are Satisfied

There are many ways to ask your customers whether or not they are satisfied with your company, your products, and the service they received. You can ask them: Face-to-faceAs they are about to walk out of your store or office, ask them. Call them on the phoneif you have their phone number, and their permission, you can call them after their visit and ask how satisfied they are. Mail them a questionnaire this technique has been used for a long time. The results are predictable. Email them a customer satisfaction survey be careful to not violate Spam laws

Email them an invitation to take a customer satisfaction survey

What to Ask In A Customer Satisfaction Survey

There is a school of thought that you only need to ask a single question in a customer satisfaction survey. That question is, "will you buy from me again?" While it is tempting to reduce your customer satisfaction survey to this supposed "essence", you miss a lot of valuable information and you can be easily misled. It is too easy for a customer to answer yes to the "will you buy from me again?", whether they mean it or not. You want to ask other questions in a customer satisfaction survey to get closer to the expected behavior and to collect information about what to change and what to keep doing.

By all means ask the basic customer satisfaction questions:

How satisfied are you with the purchase you made (of a product or service)

How satisfied are you with the service you received?

How satisfied are you with our company overall?

And ask the customer loyalty questions"

How likely are you to buy from us again?

How likely are you to recommend our product/service to others

How likely are you to recommend our company to others?

Also ask what the customer liked and didn't like about the product, your service, and your company.

Customer satisfaction, a term frequently used in marketing, is a measure of 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 (ratings) exceeds specified satisfaction goals."In a survey of nearly 200 senior marketing managers, 71 percent responded that they found the "customer satisfaction" metric very useful.

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 a key differentiator and increasingly has become a key element of business strategy.

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 do 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 the reality falls short, they will be

CONCEPTUAL FRAMEWORK

From the singsong rhythm of the bullock cart to the jet-age, India has traveled a long way. An average Indian’s dream car may not be the design- savvy Honda or the stately limousine, but he sure can dream, and afford, the Maruti now. It was in 1898 that the first motorcar rode down India’s roads. From then till the First World War, about 4,000 cars were .directly imported to India from foreign manufacturers. The growing demand for these cars established the inherent requirements of the Indian market that these merchants were quick to pounce upon.

The Hindustan Motors (HM) was set up in 1942 and in 1944; Premier Autobackmobile (PAL) was established to manufacture automobiles in India. However, it was PAL who produced the first car in India in 1946, as HM concentrated on auto components and could produce their first car only in 1949. It was left to another company, Mahindra and Mahindra (M&M) to manufacture sturdier utility vehicles, namely the American Jeep.

In the 50s, the Government of India granted approval to only 7 car dealers to operate in India - HM, API, ALL, SMPIL, PAL, M&M and Telco. His protectionist policies continued to remain in place. The 60s witnessed the establishment of the two-three wheeler industry in India and in the 70s, things remained much the same. Since the 80s, the Indian car Industry has seen a major resurgence with the opening up of Indian shores to foreign manufacturers and collaborators.

The 90s have become the melting point for the car industry in India. The consumer is king. He is being constantly wooed by both the Indian and foreign manufacturers. Though sales had takes in the first few months of 1999, it is back to boom time. New models like Maruti’s Classic, the first few months of 1999, it is back to boom time. New models like Maruti’s Classic, A first few it is back to boom time. New models like Maruti’s Classic, A Station Wagon, Ford’s Icon, the new look Mitsubishi Lancer are all being launched with an eye on the emerging market. In these last years of the millennium, suffice it is to say that Indian cars will only grow from strength to strength.

Society of Indian Automobile Manufacturers (SIAM).The Society of Indian Automobile Manufacturers (SIAM) is the apex national association representing the Auto Industry. The Automotive Component Manufacturers Association of India (ACMA) The Automotive Component Manufacturers Association of India (ACMA), with a membership of over 365 companies, has been the Indian auto component industry's spokesman for the last 38 years.

The Western India Automobile Association (WIAA) was founded on October 15th 1919 and today is the largest and the oldest motoring body with over forty-eight thousand members and a

network of 7 branches in 4 states of Western India. Federation of Automobile Dealers Associations (FADA).

This is the first Indian Association formed by the dealer community in January 1964 and signified the urge of India's automobile dealer community to have their own identity and a national organization of their own.

INTRODUCTION TO THE SECTOR

Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority stake in the company. It was the first company in India to mass- produce and sells more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. The company's headquarters are in Gurgaon, Haryana (near Delhi).

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto key car which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti has produced over 5 Million vehicles. Maruti are sold in India and various several other countries, depending upon export orders. Cars similar to Maruti (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries.

The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki India Limited, a

subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades.

Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara. Swift, Swift dzire, A star and SX4 are manufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit (CBU), remaining all models are manufactured in maruti Suzuki's Gurgaon Plant. More than half the numbers of cars sold in India wear a Maruti Suzuki badge. We are a subsidiary of Suzuki Motor Corporation Japan. Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. Maruti is clearly an “employer of choice” for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti.

• Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system.

• Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world)

A license and a Joint Venture agreement were signed between Govt. of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The objectives of MUL then were:-

• Modernization of the Indian Automobile Industry.

• Production of fuel-efficient vehicles to conserve scarce resources. Production of large number of motor vehicles which was necessary for economic growth

TRANSFER OF TECHNOLOGY OF THE MARUTI SUZUKI COMPANY

Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that the transfer of contemporary technology from our partner Suzuki is a smooth process.

Great stress is laid on training and motivating the people who can maintain the equipment, since the best equipment alone cannot guarantee high quality and productivity.

From the beginning it was a conscious decision to send people to Suzuki Motor Corporation for on-the-job training for line technicians, supervisors and engineers. This helps them to imbibe the culture in a way that merely transferring technology through documents can never replicate. At present 20% of our workforce have been trained under this programmed.

AWARD

Number one in JD Power CSI for the sixth time in a row - the only car to win it so many times M800, WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study.

Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a row, Swift number one in the premium compact segment WagonR and Esteem top their segments in the JD Power APEAL study

TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb05

Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC (2nd time in a row)Feb 05

First Indian car manufacturer to reach 5 million vehicles sales

Business World ranks Maruti among top five most respected companies in India-Oct 04

Maruti ranked among top ten (Rank7) greenest companies in India by

Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R)

No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)

LITERATURE REVIEW

A review of the existing literature indicates a wide variance satisfaction research in the definition of satisfaction the lack of a consensus definition limits the contribution of consumer satisfaction research without a uniform definition of satisfaction researchers are unable to select an appropriate definition for a given context ,develop valid measures of satisfaction and / or compare and interpret empirical results consumer satisfaction researchers have contended that these problems are pervasive and important (Gardial, clemons, woodruff, schumann and bruns 1994 peterson and Wilson 1992 yi 1990)

While the literature contains significant differences in the definition of satisfaction. All the definition share some common elements when examined as a whole , three general components can be identified 1 ) consumer satisfaction is a response ( emotional/cognitive) 2) The response pertains to a particular focus (expectations , product , consumption experience and 3) the response occurs at a particular time (after consumption, after choice, based on accumulated experience , etc) consumer response pertaining to a particular focus determined at a particular time .

There is paucity of research literature in customer satisfaction of maruti Suzuki.

RESEARCH METHODOLOGY

Research methodology is a process to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. Why a research study has

been undertaken, how the research problem has been defined. In what way and why the hypothesis has been formulated, what data have been collected and particular method has been adopted. Why particular technique of analyzing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. A research design serves as a bridge between what has been established (the research objectives) and what is to be done, in the conduct of the study. In this project research done is of conclusive nature. Conclusive research provides information that help in making a rational decision. Descriptive design was choose to measure the satisfaction level of customers on the basis of different parameters such as quality, price, features, technology, after sale services etc. This design ensured complete clarity and accuracy. It also ensured minimum bias in collection of data and reduced the errors in data interpretation. Statistical method was followed in this research because the data was of descriptive nature and it also enabled accurate generalizations.

RESEARCH DESIGNA research design specifies the methods and procedures for conducting a particular study. Broadly speaking, there are 3 categories of research design ± exploratory, descriptive and casual research. An exploratory research focuses on the discovery of ideas and is generally based on secondary data. A descriptive study is undertaken when the researcher wants to know the characteristics of certain groups such as age, educational level, income, occupation, etc. A casual research is undertaken when the researcher is interested in knowing the cause and effect relationship between two or more variables. The type of research used in this study is descriptive research. Following method was adopted during study

Review of literature to understand recent development in the field. Defining objective of the study. Formation of questionnaire to capture primary data. Analysis and interpretation of primary data. Conclusion out of primary and secondary data.

RESEARCH OBJECTIVES

Primary objective

Main objective of this study to identify which enhances customer satisfaction level in maruti Suzuki.

To find out customer expectation from Maruti Suzuki.

To study the factors those satisfy and delight the customer.

Secondary objective

To find out problem faced by customers.

To understand the customers requirement from the Maruti Suzuki.

To know customer opinion about Maruti Suzuki’s vehicles

SAMPLING DESIGN

For face to face survey, sample size is 20 customer of maruti Suzuki.

ANALYTICAL TOOL USEDIn my research I have used questionnaire method. If one wishes to find this has led marketing research to use questionnaire techniques for collecting data more than any other method.

In this method questionnaire were distributed to respondents and they were asked to answer question in the questionnaire. The questionnaire structured questionnaire because the question, which in the questionnaire contained were arranged in a specific order besides every question asked were logical for the study no question can be term as irrelevant.

Sample size: - 20 customer of maruti Suzuki company in Indore city.

Data source: - Primary & Secondary data.

Data analysis: - statistical techniques used and with the help of Pie charts.

Data analysis techniques: - Factor analysis.

Primary Data

The sources of primary data were:-

Questionnaire

Here data related to study was collected from questionnaires & personal interaction

Secondary Data

The sources of secondary data were internet, research papers, books and newspaper articles.

LIMITATIONS OF STUDYThough the research was conducted properly, the probability of errors & biases kept is minimum. Still some errors occurred because of certain limitation.

These are as follows:-

A very short span of time for research.

This is time-consuming research method & the respondents did not have

Sufficient time for giving information for such type of research.

People were reluctant to give responses for such type of research.

People also did not give proper response for Questionnaire & interview, because of short time.

Study is restricted to only Amravati city.

I have honestly and sincerely tried to present the facts and figures but some error still might have cropped up.

INTERPRETATION OF OUTPUTThus on the basis of above factor analysis it can be concluded that the major factors affecting the customer satisfaction is due to the grievances handling procedure at various dealers at Indore , it

is also due to after sales services and the interior of the car. It can be also be said from the analysis that technology adopted by maruti Suzuki’s also a major factor contributing towards customer satisfaction of people purchasing maruti Suzuki.

SuggestionMaximum customer satisfied with fuel efficiency of the maruti car so company should introduced fuel efficiency in Indian market.

It concentrates mainly on providing AFTER SALES SERVICES. But it should also try to other sectors by providing Reduced PURCHSE TIME AFTER BOOKING, EMPLOYYEE’S BEHAVIOR, and LOW PRICE OF THE MARUTI CAR. So that it can promote its own organization at a wider scope.

Conclusion

In case of maruti Suzuki company maintainability the excellent factor, company should attention on interior of the car and some technology of the car. The company should try to reduced the price of the car and create awareness among the employees of the maruti Suzuki company.

After calculating the rotated component matrix table three table are identified

INTERIOR DESIGN, MILEAGE AND FUEL EFFICIENCY are major factor to customer satisfaction of maruti car.

GRIEVANCES HANDLING, MAINTAINS COST AND EMPLOYEE’S BEHAVIOUR are moderate factor of maruti car.

FUEL EFFICIENCY is minor factor of maruti car.

REFERENCES

Gardial Sarah fisher , D. Scott Clemons Robert B. Woodruff , David W. Schumann and Mary Jane Burns 1994 ‘’ comparing consumer’s recall of repurchase and post purchase product evaluation experience ‘’ Journal of consumer research 20 (march) 548-560.

Peterson, Robert A and Wilson R Wilson 1992. ‘’measuring emotions in the consumption experience ‘’ Journal of consumer research 24 (sept.)127-146.

Giene L. Joan and cote A. Joseph 2000 ‘’ Defining consumer satisfaction. Academy of marketing science review vol. no. 1.

Website visited

www.marutisuzuki.com.

www.automotive.com.

www.marutiudyog.com.

APPENDIXDear Sir / Madam,

I am a student of Shushila Devi Bansal Collage technology Indore conducting a research project on "A Study of Customer Satisfaction on Maruti Suzuki in Indore City"

I request you to fill this questionnaire & I assure that this data will be used only for study purpose it will be kept confidential

Section 'A'

Name ----------------------------------------------------------------------------

Address -------------------------------------------------------------------------

Age ---------------------------- (4) Income -----------------------------------

(5) Design & Job ------------------------------------------------------------------

(6) Type of Job

I. State Government  II. Business 

III. Employee  IV. Other 

(7) Name of Maruti Car ---------------------------------------------------------

(8) Model Number -----------------------------------------------------------------

(9) Loan / Cash Purchase ---------------------------------------------------------

` Section ' B'S.No. Factor Agree Strongly

AgreeNeutral Disagree Strongly

Disagree

1. Technology

2. Interior

3. Mileage

4. After Sale Services

5. Maintains Cost

6. Purchase Time (After Booking)

7. Fuel Efficiency

8. Employee's Behavior

9. Grievances