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Market study of KRS Customer Satisfaction

1.1GENARAL INTORDUCTION

Transportation has assumed much significance in the present world. Transportation plays

an important role in the Indian economy. The economic life of the people depends upon

transportation service. Transportation is the lifeline of all economic and development

activities. the transport industries which undertake nothing more then the more

movement of person and things from one place to another has constituted one of the most

important activities of humankind. The road transportation is highly significant far the

defense of the country.

As a result of industrial revolution many industries come to existence and production was

carried out on a large scale. Then manufacturers faced the problem of transportation theirproducts to their ultimate consumers. So they began to depend on transport agencies or

parcel services to transport their goods. The Transportation is the key factor for industrial

development. The duty of transportation agencies will be liable far all losses or damages

in transit if it is out of their negligence

Customer satisfaction begins with a difficult face it starts with a commitment to deliver

the result to each customer which is also a concern of the retailers. Hence for a service, in

order to satisfy its customers, it is highly important to satisfy its retailers, as they are the

direct customers of them. Establishing satisfaction as the ultimate goal is like the other

ultimate goal of business pursuit of higher profit or shareholders wealth. Perfect

customer service or satisfaction is one that meets the combined need satisfaction is a

systemized service that involves the entire organization. But many organizations have yet

to develop this kind of awareness of customer satisfaction strategy.

Higher customer satisfaction comes from providing effective services. But, the service

we offer them is an ongoing practice which does not ends anywhere. It means being

efficient, reliable, curing and professional on every occasions.

Master of Business Administration Kmct School of Business1


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1.2 SCOPE OF THE STUDY

The project entitled to CUSTOMER SATISFACTION WITH REFERENCE TO

SERVICE MARKETING was conducted to find out the customer satisfaction and also

to make suggestions for improving service. Field survey was conducted to collect

primary data from the respondents by means of personnel interview through structured

questionnaire.

Systematic random sampling technique was

Used by researcher to collect the data from the customers.

Out of 400 populations 62 samples are taken by using systematic random sapling. Datacollected were edited. Classified, and inference were drown.

From the observation and findings and recommendations have been submitted to the

management and it is hope that management will took in to these recommendations and

try to implement them

The study analyses the various problems associated with the parcel services and making

a detailed market study using systematic questionnaire and schedules which are to be

easily understandable to the respondents and also among judgment to these variables. On

the basis of these findings necessary suggestions are submitted to the company



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1.3 OBJECTIVES OF THE STUDY

1. To find out the customer satisfaction of the following aspects.

(a) Freight rate

(b) Speed

(c) Timeliness

(d) Credit facility

(e) Storage facility

(f) Area network

(g) Accuracy of Delivery system

(h) Reliability

(i) Quality of service

(j) Transportation

2. To find out what are the factors influencing selection of parcel

3. To find out the effectiveness of advertisement

4. Find out the customer problem about damages

5. To find out the duration of settlement of claim

6. To find out the reason for use of other than KRS

7. To offer suggestion for improvement of KRS service



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1.4 REASEARCH METHODOLOGY

Research in an investigation is to discover new facts. Woody defines research as a

comprising to redefining problems formulating hypothesis (or) suggested solution,

collecting, organizing, and researching conclusion

The American marketing association defines marketing as systematic gathering,

recording, and analysis of data about problem relating to the marketing of goods and

services

1.4.1 STATEMENT OF THE PROBLEM:

The study analyses customer satisfaction with reference to service marketing of the

company. A customer should be satisfied in all aspects to the service moving up, thereby

increasing the profitability of the company. So the study of customer satisfaction is

important.

1.4.2 Research design

A research design is the arrangement of conditions for collection and analysis of data in

a manner that aims to combine relevance to the research purpose with economy in

procedure

Research design is purely and simply the framework (or) plans for a study that guide the

collection and analysis of data. The function of a research design is to ensure that the

required data are accurately and economically.

1.4.3 Sources and collection of data

There are two major data are extremely valuable for research, they are

1. Primary data

2. Secondary data



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PRIMARY DATA

The primary data was collected by survey conducted using a structured questionnaire in

Calicut district of Kerala.

SECONDARY DATA

The secondary data is collected from

1. The company manuals

2. Web site

3. Magazines

1.4.4 QUESTIONNAIRE

The term questionnaire refers to a self-administered process where by the respondent

himself reads the question and records the answer without the assistance of an

interviewer. The questionnaire are presented exactly the same wording and in the same

order to the entire respondent

1.4.5 SAMPLING

Sampling defined as the selection to some past an aggregate or totalize on the basis of

which a judgment or inference about the aggregate or totally is made.

a) SAMPLING UNITS

For survey, one district was chosen

b) SAPLING SIZE

The target size greatly depends upon the type of the study under taken and size of the

population



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(1.96).95.05400

(.05)(399) + (1.96) .95 .05

3.8416.95.05400

.9975+182476

72.99041.779976

61.85 (62)

Where,

n = sample size required

P% = it is the proportions of respondents, who answered in a way as to make the research

successful in the pilot survey.

q% = 100 p%

z = the value corresponding to the level of confidence

e = error value.

The sample frame for my study is 400. For conducting a pilot study I have taken a

size of 20, out of which I got the response of 95% belonging to specific category and rest

into a non specific category. So I have taken p as 95% and q as 5%. The level of

confidence taken is 95%, so the Z value is 1.96 and e value should be 5%, i.e., 0.05.

By applying the value in equation we get, the sample size as 62

So the sample size taken is 62.



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1.4.6 PILOT STUDY AND PRE TESTING:

Before conducting the final survey sample questions are issued to 20

customers/respondents in order to correct the discrepancies.

1.4.7 TOOLS USED FOR ANALYSIS OF DATA:

Percentage analysis methods are used of the analysis of data. Suitable tables and charts

are used for easy interpretation.

1.4.8 STATISTICAL TEST USED:

Chi square test is used for this study. It is one of the important tests used to test the

hypothesis. It is non parametric test. It is frequently used for testing hypothesis

concerning the difference between a set of observed frequencies of a sample and

corresponding set of expected or theoretical frequencies

Formula for computing the chi square,

Where,

O = observed frequency

E = expected frequency.

The difference of expected frequency from the observed frequency is calculated initially.

Then square value of each of the difference is calculated. From this calculated square

value corresponding expected value is divided. Finally the sum of these values is

calculated and is compared with the table value of chi-square.



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The calculated value of the chi square is compared with the table value of the chi square

for given degrees of freedom at specified level of significance. If calculated value of chi

square is grater than the table value, the null hypothesis is rejected, in other words, the

difference between theory and observation is considered to be significant. On the other

hand the calculated value of the chi square is less then the table value, the difference

between theory and observation is not considered as significant.

1.4.9 HYPOTHESIS:

Hypothesis is considered as the most important instrument in research. A hypothesis is an

assumption or some assumption to be proved or disproved. Hypothesis can also divided

as

I) Null Hypothesis (H0)

ii) Alternative Hypothesis (H1)

I) Null Hypothesis (H0):

Null hypothesis is state that no difference between a population parameter and sample

statistic.

ii) Alternative Hypothesis (H1):

When the null hypothesis is rejected then we are accepting the alternative hypothesis.

The alternative hypothesis is the logical opposite of the null hypothesis.

In this study,

Null Hypothesis (H0): customer satisfaction is highly independent on service marketing

Alternative Hypothesis (H1): customer satisfaction is dependent on service marketing



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1.5 LIMITATION OF THE STUDY

1. The study was confined only Calicut district

2. Some of the respondents interviewed either were reluctant or negative in their

approach, most of them were busy

3. In some shops, the owner were not presents at the time of survey

4. Consumer response may be biased.



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INDUSTRY PROFILE



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2.1 INDUSTRY PROFILE

Road transport is comfortable to the arterial system of the human body. Just as

the arteries allow pure blood to be pumped to every part of the body enabling to be alive,the

Road transportation facility of country enables vital good to be carried to every nook and

corner of phonation economy enabling it to the function economically.

Freight transportation in India, the main artery of Indias trade and commerce,

has been mainly dependent on railways and roadways , who carry almost the entire

fright cargo on account of the large continental distances spanned by them. There has

been heavy investment in the transport sector since independence and the progress has

been significant. But the task is so gigantic that would be requiring many years and large

doses of investment to bring about the desired improvement in the countrys transport

system.

The bottleneck, especially in railways, road and ports pose a threat to economic growth.

In the road segment, Highway network needs expansion to ensure smooth movement of

the goods and people. The pollution caused by the vehicle, especially in the large cities,

is another problem that needs to be addressed. The entire private groups in to transport

sector is expected to improve things. But the role of government will remain paramount.

Although India has a well-developed rail network and reasonable good water

transport network. Road transport still accounts far a major share in the over all

movement of goods. The road transport has improved its share in the overall movement

of goods\ traffic expressed in total ton kilometer from just 12% in five year 1951 to 62%

in five year 1998. Since five year 1990 the proportion has increased from 53% to the

present approximate 65%.with the changing economic scenario, the factor such as

globalization of markets. International economic integration, removal of barriers to thebusiness and trade and increased competition has enhanced the need for transportation

today it is one of the most important infrastructure requirement, which is essential for the

expansion of opportunities and plays an important role in making or breaking the

competitive positioning.



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SIGINIFICANCE OF TRANSPOTATION

Effective transportation is indispensable to economic progress is Mining, manufacturing,trade banking and agricultural are also necessary. But these activities like many other

depend upon transportation. Without adequate facilities for moving goods and people

economic and social activities can be carried on in a limited way only.

Using a mobility index that combines available data on transport facilities and movement

of passengers and freight, The countries with low per capita had a mobility index and

passenger transport in single digit , where as index was significantly high in countries

with high per capita income.

2.3 ECONOIMIC FUCTION OF TRANSPOTATION:

Transportation is an economic function that is to say. It serves along with other

productive function in the production of goods and services in the economy.

1. Creation utility: production has been defined as the creation of utility that is

quality of usefulness .transportation creates the utility of place, and to also degree, that of

time.

2. as a cost of production: since is part of production, an increase in its efficiency

helps in reducing the cost of procuring goods n and thus reduces theirs prices. Cheaper

transportation has both direct and indirect effect on cost of production. directly,

reduction in transport rates laid to overall lower production costs by lessening the outlays

for assemblies raw materials and shipping finished products by reducing the expense

of travel indirectly ,cheaper transportation tend towards lower cost of production by

making possible more efficient extraction and manufacturing through the division of

labor and large scale production

3.Specialization and division of labor: Transportation enables society to enjoy

advantages of specialization of resources. Add the benefits of labor by making it possible

for products to be brought great distance, thus avoiding the necessary for local

production for all conceivable commodities of need. Each economic region can thus

concentrate upon the goods and services for which it is best adapted either through



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natural resources endowment or through historical development. It thus leads to a better

economic use of available resources.

4. Large scale marketing: closing associated with the foregoing is the fact that

transportation helps to expand the size of market .no moderns large scale producer could

operate if will not to serve only local market. Obliviously large scale production is

possible when the market extends to the whole nation and in a few to the whole world.

5. Consumption of wealth: transportation is also related to consumption of wealth. It

increases the quality and variety of consumable goods. There by stimulating wants. There

is more production because of the cost of production brought about by transportations

greater variety decreases in the cost of production brought about by transportation. A

greater variety occurs because transportation enables a community to enjoy even goods

that could not be produced in the immediately vicinity

2.4 MAIN PLAYERS AND ASSOCIATED VALUES

The above table helps identify the main players in the market and values of each pf them

to maximize

Achieve while making transport decision

PLAYERS ASSOCIAED VALUES

1. CONSIGNOR a) minimum transit cost (Inclusive insurance)

b) Minimum packaging cost

c) Secure and safety delivery of cargo

d) Shorter delivery time

e) No unnecessary documentation

f) Single agency one window service

h) Fast realization of dues



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2. CONSIGNEE a) minimum transit costs

b) No damages to goods

c) Timely deliveryd) Lower inventory

e) No allowance

f) No collection problems

h) All documentation complete

3. CARRIERS a) maximum traffic/

b) Seedy turn around of vehicle

c) Maximum productivity

d) Minimum operational expenses

e) Minimum claim damages

4 TERMINALS a) less congestion

b) Maximum out put & productivity

c) Smooth operation

d) Lowest cost of operation

e) Minimum detentions to cargo

f) Low liabilities of claim

5. CARGO MANEGEMENT a) provide one window integrated service

b) Direct door to door consist

c) Minimum costs

d) Minimum loss

e) Best co-ordination of activities

6. FINANCIAL INSTISTUTION a) minimum risk

b) Better revenue

c) Increased traffic



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7. INSURENCE COMPANIES a) lower claim

b) Lower revenue

c) Ease in operation

2.5 Present scenario

Todays business big or small, domestic or global the value of time is clearly

immense. Business today is focusing on how it can deliver goods and pick up, timely

delivery, timely information and availability of their infrastructural facilities for

efficient handling of cargo transportation industry in todays rapidly changing

environment. Hence transportation like any other industry is also largely influenced by

information and communication technologies with the focus being on knowledge of

customer and value added services. It was this need, which stimulated the growth of the

express cargo industry worldwide and making it e-enabled



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COMPANY PROFILE



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2.2 COMPANY PROFILE

2.2.1 ABOUT THE COMPANY

The KERALA ROAD WAYS LIMITED known as KRS is a multi crore companies

based in Calicut with over 450 branches. They have a tong work force of over 2500

people across the nation engaged primarily in the transportation industry. They have

good relation, ranging from small store keepers to corporate giants like TELCO, TISCO,

BIRLA, BAJAJ, INDUSTHA LIVER LIMTED, LAKME LIVER, AMUL, WIPRO,

BERGER PAINTS, JOHNSON&JOHNSON, BOMBAY DYNING & MFD LTD,

PERFETIA LTD, and TATA CHEMICALSLTD ASIAN PAINTS. ETC.

Today they handle over 4500 tones cargo every day, in almost 500 own and

attached trucks, which operate in corner o0f the country,. An efficient computerized

freight management system monitors the entire operations. They have one of the most

efficient computerized systems in the country

2.2.2PROFILE

Kerala road ways limited is engaged in the transportation if goods and parcel. The origin

of KRS can be traced back to 1962, started with three branches as a proprietary concern

by Mr. V.K Moidu Hajee. The initial branches were at madras, Calicut & Ernakulum the

beginning stage.

The major clients where retail traders of Calicut and Ernakulum

The prevailing practice was transshipments of goods Coimbatore enroots to respective

destinations.

The main policy decisions are taken by board of director comprising of Mr.Moidu Hajee,

Director C.P.Kunhi Muhammad.

2.2.3 Service profile

Kerala road ways limited is is service business enterprise. It engaged in goods

transportation industry, it is the number one logistics service. it deals with several other

kind of transportation facilities.



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However, the following are the main services where KRS deals with

1. Parcel service: The main service of KRS limited is parcel. Parcel from one

place to another is transported by KRS at a reasonable tare. The company uses own

and hired trucks for this purpose. The parcels are delivered for both retail and

wholesale customers.

2. Freight movement: It is another significant service of KRS ltd. Freight is

transported from any place to any part of India. This service is heavy duty payable

when comparing with other. At most care taken by the company for the movement of

freight, mainly cement, food grains, electronic items, consumer etc. are including in

this section

3. Warehouse: The most important feature of Kerala road ways limited iswarehousing. Every branch of the company is providing warehousing facility. It

gives full security to the goods. No additional charges levied by the company for

ware housing.

4. Supply chain management: It is the integration of key business process from

end through original suppliers that provides product. Service and information that add

value for customer stake holders. There is a deal of confusion regarding exactly what

SCM involves. In fact, most people using the name SCM as a synonym for logistics

that includes customer and suppliers. Others view SCM as the name for purchasing

chains. Valuable recourses are when supply chains are not integrated, appropriated

streamlined, and managed. KRS provides supply chain management facility also or

operation and logistics. However successful SCM cross functional integration of key

business process within the firm and across the net work of firms that comprise the

supply chain.

5. Jit supply chain: It refers in time supply planning. Just in time is a structuralapproach in a manufacturing organization focused on improving timeliness, quality,

productivity and flexibility utilizing various methods of work simplification. KRS

limited provides fast services then any other companies.



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6. Client management: In case service sector industries, client management is ofpivotal importance. Hence in this regard, KRS has taken the following measures for

maintain a good customer base.

For regular customer these are of the service available:

KRS has extended a facility to settle their freight bills on monthly basis

Regular customer are billed at discount rates

Door to door delivery of goods

No additional freight for transfer goods from delivery point to specific

sites

No demurrage charged

Demurrage n is normally charged for delay in removing the goods from

the god down. Up to 15 days no additional cargoes is levied but in case

of regular clients extra payments is not to be made even if there is delay

in taking possession of goods

7. C&F OPERATION

Clearing and is done by KRS ltd for the following clients

1. Gujarth Co-operative limited

2. Hindutan lever limited

3. Godrej appliances limited

4. Wipro limited

5. Hawkins cookers limited

6. ici paints(i) limited

7. Aavian milk products

8. Havells limited

9. Crabtree limited



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2.2.4 Mission

An effective mission is a fundamental element of a service firms marketing

strategy. Following are the company effective service mission statement

We believe in providing safe and safety transportation of precious consignment of

our valid customers through committed hardworking and loyal workforce in our

continuous Endeavour to achieve total satisfaction our value customers

Vision

By the year 2001, Kerala road ways ltd visualize to cover the entire nation with a

spread over 500 branches duly computerizing 250 branches as a whole, the company will

be completing 80% of the goods movement fully monitored by computers. By virtue of

increasing the movement of the trucks the limiting the transshipment yards the company

could move goods from point too point safety and swiftly

2.2.4 Present scenario of KRS

KRS has registered phenomenal growth in the past two decades. The company has

transshipment offices situated in different places to cater to the branches spread all over t

India the major outlets are in Kerala. Kerala being a consumer market, Consumer and

consumer durable goods have to come from Ahmadabad, Mumbai, Calcutta, Delhi, and

Madras. The firm own nearly 200 trucks and 800 trucks are taken on contrast basis. The

company is utilizing its own trucks for the distribution of parcel from the transshipment

center to nearly station, while trucks on hire are engaged in the transportation of goods

between transshipment major transshipment centers and metropolitan cities.



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2.2.5 HIGHLIGHTS:

1.500 branches in India of which 203 are Kerala

2. Every 15 KMs stretch in Kerala (NH), has KRS branch (average)

3. Workforce of over 6000 people

4. Handles over 3700 tones of cargo every day

5. Fleet of above 800 trucks (own & attached)

6. Computerized freight management system to monitor operation

7. First computerized private sector transport company in India approved by the Indian

bank association Operation are carried out in the organized transport sector while 52%

market share enjoyed in the organized transport industry in Kerala

2.2.6 MANEGIRIAL ACTIVITIES IN KRS

(1) FRIEGHT MANAGEMENT SYSTEM

The concern has brought booking and transshipment activities under freight

management system.

BOOKING. Booking is the first stage in the transportation of goods. It is t

done through a separate computerized customer. The staff at the counter does the data

entry operation. There is a specific format of the designed bill/receipt, when the clerk

selecting the item, a blank format of the goods consignment (GC) note displayed on the

monitor. Data of the booking and destination has to be filled supplementing the

necessary data.

The booking clerk prepares the goods consignment note in triplicate.

Consigner copy (Black): give to the customer.

Consignee copy (red): also given the customer, later he sends it to the consignee.

He has to produce this copy while taking delivery of the goods at delivery point.

Lorry copy (blue): this retained at the branch. This is handed over to the vehicle

driver while dispatching the goods to the respective destination.



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TRANSIPPMENT OF GOODS: Parcels are temporarily kept at a

transshipment centre. Parcel in transit to various places are brought to transshipment

centre. Parcel are then grouped according to the destination

Transshipment entitles a stipulated procedure Goods consignment notes are sent along with individual parcel.

A separate VA sheet is prepared for all parcel sent by a particular

carrier.

vehicle management (VA)

when the appropriate item is selected VA is displayed

When we type the goods consignment number in the VA sheet all other

particulars connected there to t will be automatically displayed.

Thus all consignment sends together will have a separate VA sheet. This

will show the details such as parcel description, freight charge etc.

For the purpose of inspection this will be much help. Dispatch clerk can

verify whether all the consignments as stated in the VA sheets are brought

to the station

Claim for loss & damages can be verified with VA., if some goods are

damaged we can cross check with the details such as how many cartons

were sent, its description etc.

2. DELIVERY MANAGEMENT SYSTOM:

DMS forms part of the database management system, which covers all activities

connected with delivery of goods. Various statements can be generated through the

system; which is placed under the control of separate personnel. An in- depth analysis

reveals the following characteristics.

Issue of cash receipts: In case of receipts to pay booking the cost

transportation is meant by the consignee at the point of delivery.

Cash receipts are generated in duplicated the original copy is given to the party

while t returning the copy at the delivery Centre, a summery sheet regarding the daily

cash receipts can be prepared on a daily basis with the aid of DMF



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Daily unloading report: This report is generated on the a daily basis, which

shows details regarding number of consignment arrived at the station

Godown stock: Goods transferred from one location are temporarily kept in a

particular center before being sent to the original destination, so that different

consignment to a specific centre can be transferred in bulk.

3. ANCILLARY OPERATIONGodown facilities are imperative for efficient discharge all function. In case of parcel

industry, it is even more important; Goods entering the godown can be:

Goods for transshipment

Goods to be delivered to the consignees.

.goods sends to t other branches.

Loading sheet is prepared at the time of loading parcel in to carriers. Unloading sheet is

prepared at the time unloading the consignment.

4. CLIENT MANAGEMENT

In case of industries in the service sector, client management is most important. KRS also

has an effective mechanism for the client management. It has taken the following

measures for maintaining a good customer base, for on a regular customer

It has extended a facility to settle their freight bills on a monthly basis

. Regular customer are billed at discount rates

Door delivery of good. Transportation of goods from delivery point to specific

sites is done without levying additional

No demurrage charged, demurrage is normally charged for delay in removing

the good/ consignment from godowns.

Enquiries regarding movement; receipt of consignment is given specific

information with regard to date & time of arrival/ expected arrival. Enquiries are

online reply.



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5. CLAIM HANDING IN KRS

Sometimes there may be shortage or damage of goods during the transportation .thetransport wilted. So it will be helpful to the parties to trace out their valuable misplaced

consignment within a short period.

A certificate is issued at the time of delivery for a managed or shortage good. This will

produce by the prices to obtain related claims

In case of miscarriage, inspectors, in sectors are checking al, their racketed branches

throughout and tracing out the excess and shortage consignment and settle those as per

the claim related. So it will be helpful to the parties to the trace out their valuable

misplaced consignment within a short period.

6. PROBLEM FACED BY KRS.

Every business faces many problems. Problem cause much difficulty in the attainment of

organizational objectives. So to reach their goals, every organization needs to identify the

problem and do the correct action to solve those problems.

2.2.7 SWOT ANALYSIS

A SWOT analysis looks at future possibilities for the institution through a systematic

approach of introspection into both and negative concerns. It is relatively a simple way of

communicating ideas. Policies corners to other. It helps administered to quickly expand

their vision. Probably the strongest decision making should b contain each of the

elements.A swot analysis can be done if internal and external environment is an

important part of the strategic process. Environment factors internal to the firm can be

classified as strength (s) weakness (w) and factors to the firm can be classified as

opportunities (0) and threats (t) such an analysis of internal factors is referred to as swot

analysis. The SWOT has been a useful tool for the industry. The process of utilizing the

SWOT requires an internals survey of opportunities and threats.



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STREGTHS

What company exceptionally well?

What advantages company has?

What valuable assets and Resources Company?

What do members identify as companys strength?

Every organization has some strength; in some cases this is obvious, for example,

dominant market share in other cases it is a matter of perspective. For in stance, company

is very small and has the ability to move fast, it is whether these strengths are adequate is

in issue for analysis

STREGTH OF THE KRS

1) Goods infrastructure

2) quality and times service

3) brad image

4) the company got many certification and an ISO 9OO1-2OOO standard

5) extensive operational network

WEAKNESS

What could the company do better?

Where in the company vulnerable?

Every organization has also some weakness. In some cases this is obvious. Say for

instance, a stricter regularly environment; in other cases it is matter of perception. For

example a company has 90% market share and is open to attack from every new players;

it is important to note that companies that are extremely component in that they do, also

have weakness. How badly these weakness will affect the company is matter of analysis

WEAKNESS OF KRS

1. Marketing activity weak



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2 lack of promotional activities under taken by the firm, to promote staff.

3) Goodwill not projected

4) Lack of shared vision

5) Contemporary HR practices absent

OPPERTUNITIES

What opportunities does the company have, But not able to address?

Are there any emerging trends on which company can capitalize?

All the organization has so some opportunities that can gain from. These could be from

diversification, Sales operation, identify hidden opportunities is the matter of analysis.

OPPERTUNITIES OF KRS1) increased demand for reliable a and effective mass transport

2) KRS is no: 1 Kerala

3) Daman for integrated multi model transport

4) Tries to maximize the role in industry

5) Potential leverage crore competencies in freight and refrigerated Transport

THREATS Are any of company weaknesses likely to make it critically vulnerable?

What external barriers exist barriers exist and how they hinder the companys

progress

Are the competitors doing anything different?

Is technology dramatically changing the sector service to it? Or is the

company matching the changes in technology

Are economic conditions affecting companys financial stability?

THREATS

1) Growth in competition

2) Tax burden: Lenient attitude of government attitude towards clandestine operation

change which took place in logistics industry. No organization is immune to threats.



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These could be internal, such as falling productive or could external such as lower

priced international competition

ORAGNISATIONAL STRUCTURE



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2.2.8 ORGANISATION STRUCTURE

The hierarchical organization structure of KRS is depictedbelow:


BOARD OF DIRECTORS

General Manager(Accounts)

General Manager(Administration)

Regional Manager EDP Manager

Area Manager Asst. Manager (EDP)

Branch Manager

Clerks


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THERIACAL REVIEW



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3.1 THEARTICAL REVIEW

Introduction

A literature review discusses published information in a particular subject area, and

sometimes information in a particular subject area within a certain time period.

A literature review can be just a simple summary of the sources, but it usually has an

organizational pattern and combines both summary and synthesis. A summary is a recap

of the important information of the source, but a synthesis is a re-organization, or a

reshuffling, of that information. It might give a new interpretation of old material or

combine new with old interpretations. Or it might trace the intellectual progression of the

field, including major debates. And depending on the situation, the literature review may

evaluate the sources and advise the reader on the most pertinent or relevant.

This chapter began with concept of marketing, meaning of logistics, Importance of

customer satisfaction, essentials of logistics:

3.1.1 CONCEPT OF MARKETING: Marketing is the process by which

companies create customer interest in goods or services. It generates the strategy that

underlies sales techniques, business communication, and business developments. It is an

integrated process through which companies build strong customer relationship and

create questionable value for their customers and for themselves. Marketing is used to

identify the customer, to satisfy the customer, and to keep the customer. With the

customer as the focus of its activities, it can be concluded that marketing management is

one of the major components of business management. Marketing evolved to meet the

stasis in developing new markets caused by mature markets and overcapacities in the last

2-3 centuries. The adoption of marketing strategies requires businesses to shift their



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focus from production to the perceived needs and want of their customers as the means

of staying profitable

The term marketing conceptholds that achieving organizational goals depends on

knowing the needs and wants of target market and delivering the desired satisfactions it

proposes that in order to satisfy its organizational objectives, an organization should

anticipate the needs and wants of consumers and satisfy these more effectively than

competitors. Marketing is defined by the American Marketing Association (AMA) as

"the activity, set of institutions, and processes for creating, communicating, delivering,

and exchangingOfferings that have value for customers, clients, partners, and society atlarge. The term developed from the original meaning which referred literally to going to

a market to buy or sell goods or services.

The Chartered Institute of Marketing defines marketing as "the management process

responsible for identifying, anticipating and satisfying customer requirements profitably.

A different concept is the value-based marketing which states the role of marketing to

contribute to increasing shareholder value In this context, marketing is defined as "the

management process that seeks to maximize returns to shareholders by developing

relationships with valued customers and creating a competitive advantage."

Marketing practice tended to be seen as a creative industry in the past, which included

advertising, distribution and selling. However, because the academic study of marketing

makes extensive use of social sciences, psychology, sociology, mathematics, economics,

anthropology and neuroscience, the profession is now widely recognized as a science,

allowing numerous universities to offer Master-of-Science (MSc) programmers. The

overall process starts with marketing research and goes through market segmentation,

business planning and execution, ending with pre and post-sales promotional activities. It



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is also related to many of the creative arts. The marketing literature is also adept at re-

inventing itself and its vocabulary according to the times and the culture.

Customer orientation: A firm in the market economy survives by producing goods

that persons are willing and able to buy. Consequently, ascertaining consumer demand isvital for a firms future viability and even existence as a going concern. Many companies

today have a customer focus (or market orientation). This implies that the company

focuses its activities and products on consumer demands. Generally there are three ways

of doing this: the customer-driven approach, the sense of identifying market changes and

the product innovation approach. In the consumer-driven approach, consumer wants are

the drivers of all strategic marketing decisions. No strategy is pursued until it passes the

test of consumer research. Every aspect of a market offering, including the nature of the

product itself, is driven by the needs of potential consumers. The starting point is always

the consumer. The rationale for this approach is that there is no point spending R&D

funds developing products that people will not buy. History attests to many products that

were commercial failures in spite of being technological breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA (Solution,

Information, Value, and Access). This system is basically the four Ps renamed and

reworded to provide a customer focus. The SIVA Model provides a demand/customercentric version alternative to the well-known 4Ps supply side model (product, price,

placement, promotion) of marketing management.

Product Solution

Price Value

Place Access

Promotion Information



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If any of the 4Ps had a problem or were not there in the marketing factor of the business,

the business could be in trouble and so other companies may appear in the surroundings

of the company, so the consumer demand on its products will become less

Services marketingServices marketing relates to the marketing of services, as opposed to tangible products.

A typical definition of a service (as opposed to a good) is thus:

The use of it is inseparable from its purchase (i.e. a service is used and consumed

simultaneously)

It does not possess material form, and thus cannot be smelt, heard, tasted, or felt.

The use of a service is inherently subjective, in that due to the human condition,

all persons experiencing a service would experience it uniquely.

As examples of the above points, a train ride can be deemed as a service. If one buys a

train ticket, the use of the train is typically experienced concurrently with the purchase of

the ticket. Although the train is a physical object, one is not paying for the permanent

ownership of the tangible components of the train

Services (by comparison with goods) can also be viewed as a spectrum. Not all products

are pure goods, nor are all pure services. An intermediary example may be a restaurant,

where the waiter service is intangible, but the food is tangible.

In marketing, the term marketrefers to the group of consumers or organizations that is

interested in the product, has the resources to purchase the product, and is permitted by

law and other regulations to acquire the product. The market definition begins with the

total population and progressively narrows as shown in the following diagram.



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3.2.1.1

Market DefinitionConceptual Diagram

Beginning with the total population, various terms are used to describe the market based

on the level of narrowing:

Total population

Potential market - those in the total population who have interest in acquiring

the product.

Available market - those in the potential market who have enough money to

buy the product.

Qualified available market - those in the available market who legally are

permitted to buy the product.



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Target market - the segment of the qualified available market that the firm has

decided to serve (theserved market).

Penetrated market - those in the target market who have purchased the

product.

In the above listing, "product" refers to both physical products and services.

The size of the market is not necessarily fixed. For example, the size of the available

market for a product can be increased by decreasing the product's price, and the size of

the qualified available market can be increased through changes in legislation that result

in fewer restrictions on who can buy the product.

Defining the market is the first step in analyzing it. Since the market is likely to be

composed of consumers whose needs differ, market segmentation is useful in order to

better understand those needs and to select the groups within the market that the firm will

serve.

3.1.2 Logistics

Logistics is the management of the flow of goods, information and other resources in a

repair cycle between the point of origin and the point of consumption in order to meet the

requirements of customers. Logistics involves the integration of information,

transportation, inventory, warehousing, material handling, and packaging, and

occasionally security. Logistics is a channel of the supply chain which adds the value of

time and place utility. Today the complexity of production logistics can be modeled,

analyzed, visualized and optimized by plant simulation software.

Origins and definition

The term logistics comes from the Greeklogos (), meaning "speech, reason, ratio,

rationality, language, phrase", and more specifically from the Greek word logistiki

(), meaning accounting and financial organization.



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Logistics is considered to have originated in the military's need to supply themselves

with arms, ammunition and rations as they moved from their base to a forward position.

In ancient Greek, Roman and Byzantine empires, military officers with the titleLogistikas were responsible for financial and supply distribution matters.

The Oxford English Dictionary defines logistics as "the branch of military science having

to do with procuring, maintaining and transporting materiel, personnel and facilities."

Another dictionary definition is "the time-related positioning of resources." As such,

logistics is commonly seen as a branch of engineering that creates "people systems"

rather than "machine systems". When we talk in terms of HRM logistics means giving

inputs i.e. recruiting manpowers which ultimately works for the final consumer or to

deliver services.

3.12 Military logistics

Militaries have a significant need for logistics solutions, and so have developed advanced

implementations. Integrated Logistics Support (ILS) is a discipline used in military

industries to ensure an easily supportable system with a robust customer service (logistic)

concept at the lowest cost and in line with (often high) reliability, availability,maintainability and other requirements as defined for the project.

In military logistics, logistics officers manage how and when to move resources to the

places they are needed. In military science, maintaining one's supply lines while

disrupting those of the enemy is a crucial some would say the most crucial element of

Military strategy, since an armed force without resources and transportation is

defenseless.

The United States Military logistics support is grouped into 10 classes of supply:

Supply chain management in military logistics often deals with a number of variables in

predicting cost, deterioration, consumption, and future demand. The US Military's

categorical supply classification was developed in such a way that categories of supply

with similar consumption variables are grouped together for planning purposes.



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For instance peacetime consumption of ammunition and fuel will be considerably less

than wartime consumption of these items, whereas other classes of supply such as

subsistence and clothing have a relatively consistent consumption rate regardless of waror peace. Troops will always require uniform and food. More troops will require equally

more uniforms and food.

In the table above, each class of supply has a consumer. Some classes of supply have a

linear demand relationship -- as more troops are added more supply items are needed --

as more equipment is used more fuel and ammo is consumed. Other classes of supply

must consider a third variable besides usage and quantity: time. As equipment ages more

and more repair parts are needed over time, even when usage and quantity stays

consistent. By recording and analyzing these trends over time and applying to future

scenarios, the US Military can accurately supply troops with the items necessary at the

precise moment they are needed (Source - Joint Logistics Analysis Tool). History has

shown that good logistical planning creates a lean and efficient fighting force. Lack

thereof can lead to a clunky, slow, and ill-equipped force with too much or too little

supply.

In history, some have attributed the defeat of the British in the American War of

Independence and the defeat of the Axis in the African theatre of World War II to

logistical failure. The historical leaders Hannibal Barca,Alexander the Great, and the

Duke of Wellington are considered to have been logistical geniuses.

Logistics management

Logistics management is that part of the supply chain which plans, implements and

controls the efficient, effective forward and reverse flow and storage of goods, services

and related information between the point of origin and the point of consumption in order

to meet customer and legal requirements. A professional working in the field of logistics

management is called a logistician.

The Chartered Institute of Logistics & Transport (CILT) was established in the United

Kingdom in 1919 and was granted a Royal Charter in 1926.



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The Chartered Institute is one of the professional bodies or institutions, for the logistics

and transport sectors, that offers professional qualifications or degrees in logistics

management.

3.1.3 Warehouse management systems and warehouse control systems

Although there is some functionality overlap, the differences between warehouse

management systems (WMS) and warehouse control systems (WCS) can be significant.

Simply put, a WMS plans a weekly activity forecast based on such factors as statistics

and trends, whereas a WCS acts like a floor supervisor, working in real time to get the

job done by the most effective means. For instance, a WMS can tell the system it is going

to need five of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by

the time it acts, other considerations may have come into play or there could be a logjam

on a conveyor. A WCS can prevent that problem by working in real time and adapting to

the situation by making a last-minute decision based on current activity and operational

status. Working synergistically, WMS and WCS can resolve these issues and maximize

efficiency for companies that rely on the effective operation of their warehouse or

distribution center

3.1.4 Logistics outsourcing

Third-party logistics: Third-party logistics (3PL) involves using externalorganizations to execute logistics activities that have traditionally been performed

within an organization itself. According to this definition, third-party logistics

includes any form of outsourcing of logistics activities previously performed in-

house. If, for example, a company with its own warehousing facilities decides to

employ external transportation, this would be an example of third-party logistics.

Logistics is an emerging business area in many countries.

Fourth-party logistics

The concept of Fourth-Party Logistics (4PL) provider was first defined by Andersen

Consulting (Now Accenture) as an integrator that assembles the resources, capabilities



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and technology of its own organization and other organizations to design, build,and run

comprehensive supply chain solutions. Whereas a third party logistics (3PL) service

provider targets a function, a 4PL targets management of the entire process. Some have

described a 4PL as a general contractor who manages other 3PLs, truckers, forwarders,

custom house agents, and others, essentially taking responsibility of a complete process

for the customer.

3.1.5 Business logistics

logistics as a business concept evolved in the 1950s due to the increasing complexity of

supplying businesses with materials and shipping out products in an increasingly

globalize supply chain, leading to a call for experts called supply chain logisticians.

Business logistics can be defined as "having the right item in the right quantity at the

right time at the right place for the right price in the right condition to the right

customer", and is the science of process and incorporates all industry sectors. The goal of

logistics work is to manage the fruition of project life cycles, supply chains and resultant

efficiencies.

In business, logistics may have either internal focus (inbound logistics), or external focus

(outbound logistics) covering the flow and storage of materials from point of origin to

point of consumption (see supply chain management). The main functions of a qualified

logistician include inventory management, purchasing, transportation, warehousing,

consultation and the organizing and planning of these activities. Logisticians combine a

professional knowledge of each of these functions to coordinate resources in an

organization. There are two fundamentally different forms of logistics: one optimizes a

steady flow of material through a network of transport links and storage nodes; the other

coordinates a sequence of resources to carry out some projects.

3.1.6 Production logistics

The term production logistics is used to describe logistic processes within an industry.

The purpose of production logistics is to ensure that each machine and workstation is

being fed with the right product in the right quantity and quality at the right time.



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The concern is not the transportation itself, but to streamline and control the flow

through value-adding processes and eliminate nonvalue-adding ones. Production

logistics can be applied to existing as well as new plants. Manufacturing in an existingplant is a constantly changing process. Machines are exchanged and new ones added,

which gives the opportunity to improve the production logistics system accordingly.

Production logistics provides the means to achieve customer response and capital

efficiency.

Production logistics is becoming more important with decreasing batch sizes. In many

industries (e.g. mobile phones), a batch size of one is the short-term aim, allowing even a

single customer's demand to be fulfilled efficiently. Track and tracing, which is an

essential part of production logistics due to product safety and product reliability issues is

also gaining importance, especially in the automotive and medical industries

The Essentials of Logistics and Management: Itprovides a broad expertlyguided investigation into the knowledge required to maximize the practice of logistics in

a way that contributes to a company's growth. The text elaborates upon a conceptual

framework in which the role of all stakeholders and possible logistics are analyzed in a

systematic approach that explores customer relations management, interactive

information support, production optimization, and operations management, as well as

human resources and resource allocation. The purpose of this book is help managers

employ vision and strategy in developing a methodology that identifies, evaluates, and

utilizes all critical fact

CUSTOMER SATISFACTION

Customer satisfaction is the feeling derived by the consumer when

he compares the products actual performance with the performance

that he expects of it. Whether the buyer is satisfied after purchase

depends on the offers performance in relation to the buyers

expectation. In general, satisfaction is a persons feelings of

pleasure or disappointment resulting from comparing products



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perceived performance (outcome) in relation to his or her

expectations.

If the performance falls short of expectation, the customer is

dissatisfied. If the performance matches the expectations, the

customer is satisfied. If the performance exceeds expectations, the

customer is highly satisfied or delighted.

Complete customer satisfaction is achieved by understanding

customer requirements and delivering superior quality goods and

services. Companies must provide the customers with a continuous

flow of new ideas/offers and constantly enhance their service levels

to build up satisfaction among customers. Understanding thecustomers and providing satisfaction is not the prerogative of the

marketing department alone. Every function or employee needs to

contribute to understanding the consumer needs and then fulfilling

them.

Organizations need to map customer needs and wants with their

products. If the product do not fulfill customer needs and wants,

organizations needs to take the initiative to improve their products.

Customers should be an integral part of product development and

improvement process. As customer needs and wants do not remain

constant, organizations also need to monitor the trends in the

changes in customer needs and wants continuously so that they can

modify their products and services continuously to satisfy their

customers in the long run.

Customer satisfaction, a business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation. It is seen as a key

performance indicator within business and is part of the four perspectives 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.



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There is a substantial body of empirical literature that establishes the benefits of

customer satisfaction for firms. Measuring customer satisfaction

MEASURING CUSTOMER SATISFACTION

Organizations are increasingly interested in retaining existing customers while targeting

non-customers; measuring customer satisfaction provides an indication of how successful

the organization is at providing products and/or services to the marketplace.

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation

of the state of satisfaction will vary from person to person and product/service to

product/service. The state of satisfaction depends on a number of both psychological and

physical variables which correlate with satisfaction behaviors such as return and

recommend rate. The level of satisfaction can also vary depending on other options the

customer may have and other products against which the customer can compare the

organization's products.

CUSTOMERS EXPECTATION:

How do the buyers form their expectation?, From past buying experiences, friends,

associates advice, marketers, competitors information and promises. If the marketers

raise the expectations too high, the buyer is likely to be disappointed. However, if the

company sets expectations too low, it wont attract enough buyers. Some of todays

most successful companies are raising performance and delivering performance to

match.

SERVICE QUALITY

One effective strategy used in differentiating an offer from that of the competitors is to

delivering quality service to the customers. Customer service is the key to market

penetration and growth.



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Product and service quality, customer satisfaction, and company profitability are

intimately connected. Higher level of quality results in higher level of customer

satisfaction, which support higher prices and (often) lowers cost.

The service quality can be measured on the following five dimensions.

Reliability: The ability to perform the promised service dependably and

accurately.

Tangibles: The appearance of physical facilities, equipment, personal and

communication materials. Responsiveness: The willingness to help customers and provide prompt

service.

Assurance: The knowledge and courtesy of employees and their ability to

convey trust and confidence.

Empathy: The caring, individualized attention provided to the consumer.

In order to measure service quality, one has to assess customer

expectation and his or her actual experience with the service

provided by the firm, based on the five dimensions of the service

quality. The gap between the two will indicate whether the service

quality is high or low on each of these variables. Often one may find

the gap between the customers expected level of service and

service providers perception of it, it is these gaps that need to be

closed through appropriate organizational interventions in

technology, systems, policies, human resource development, and

marketing.

In measuring the customers perception, one may ask the customer

to first rank the five dimensions of service quality in their order of

importance to him or her. Subsequently, he or she may be asked the

attributes that he or she expects in an ideal or excellent similar



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DATA ANALYSIS AND INTERPRETATION

4.1 DATA ANALYSIS AND INTERPRETATION

This chapter includes the analysis and interpretation of the collected data. Statistical tools

or techniques like percentages were used for expressing the results Interpretations are

made on the basis of the results of the analysis.

The questionnaire was a five point Likert scale. The analysis is made by giving tabulated

information on each factor about the expected and observed factors.

Need for Interpretation

Interpretation is essential for the simple reason that the usefulness and vitality of the

research finding lies in proper interpretation. It si being considered as a basic component

of research process because researcher gets the findings from the interpretation.

Suggestions to the company are made by analyzing the findings. Through the

interpretation only the researcher can understand the abstract principle that works

beneath his findings.

The factors analyzed are:

a) Fright rate



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b) Credit facility

c) Service quality

d) Storage facility

e) Speed

f) insurance

g) timeliness

h) delivery system

i) reliability

4.1.1.Response showing satisfaction with KRS fright rate(Tab 4.1.1)

OPTIONS NUMBER OFRESPONDENTS

PERCENTAGE

Highly satisfaction 16 25.8High 17 27.4Cant say 15 24.1Low 7 11.2Very low 7 11.2

TOTAL 62 100

(Chart 4.1.1)



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INTERPRETATION:Out of the 62 respondents 28% are rated as high that means they have a very good

opinion about the freight rate in KRS and 26% give remark as very low. Only 26%

among 62 respondents are cant say with the statement. That means almost the entire

customer is more or less dissatisfied with the freight rate of KRS

4.1.2 Response showing the importance of fright rate (Tab 4.1.2)

(Chart 4.1.2)

Master of Business Administration Kmct School of Business


PERCENTAGE

Highly satisfied 17 27.4Satisfied 20 32.2Moderate 9 14.5

Dissatisfied11

17.7Highly dissatisfied 5 8TOTAL 62 100

47


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INTERPRETATION:

Out of the 62 respondents 32% are rated as satisfied that means they are agreed with the

statement in logistics and 27% give remark as highly satisfied. 8% among 62 respondents

are highly dissatisfied with the statement. That means almost the entire customers are

giving high importance to the credit facility in logistics.

4.1.3 Response showing the rating of credit facility given by the company(Tab 4.1.3)

NOPTIONS NUMBER OF

RESPONDENTS

PERCENTAGE

Very good 13 20.96Good 30 48.38Average 12 19.35Poor 1 1.6Very poor 6 9.67

TOTAL 62 100



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(Chart 4.1.3)

INTERPRETATION:

Out of the 62 respondents 48% are rated as good that means they have a very good

opinion about the credit facility in KRS and 21% give remark as vary good. Only 2%

among 62 respondents are poor with the statement. That means almost the entire

customer is very satisfied with the credit facility of KRS

4.1.4 Response showing the importance of credit facility (Tab 4.1.4)

OPTIONS NUMBER OF

RESPONDENTS

PERCENTAGE


TOTAL 62 100

(Chart 4.1.4)



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INTERPRETATION:

Out of the 62 respondents 31% are rated as moderate that means they are average with

the statement in logistics and 21% give remark as poor. 11% among 62 respondents are

very poor for the statement. That means almost the entire customers are not giving

importance to the credit facility in logistics

4.1.5 Response showing the satisfaction level of service quality of KRS

(Tab 4.1.5)


PERCENTAGE

Highly satisfied 24 38.7Satisfied 8 12.9Moderate 16 25.8Dissatisfied 7 11.29Highly dissatisfied 7 11.29

TOTAL 62 100



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(Chart 4.1.5)

INTERPRETATION:

Out of the 62 respondents 39% are rated as highly satisfied that means they have a very

good opinion about the service quality in KRS and 26% give remark as moderate. Only

11% among 62 respondents are highly dissatisfied with the statement. That means almost

the entire customer is satisfied with the service quality of KRS

4.1.6. Response showing the importance of service quality (Tab 4.1.6)

OPTIONS NUMBER OF

RESPONDENTS

PERCENTAGE


TOTAL 62 100



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(Chart 4.1.6)

INTERPRETATION:


the statement in logistics and 24% give remark as dissatisfied. 11% among 62

respondents are in highly dissatisfied for the statement. That means almost the entire

customers are not giving importance to the service quality in logistics

4.1.7 Response showing the satisfaction level storage facility (Tab 4.1.7)


PERCENTAGE

Highly satisfied 12 19.35Satisfied 16 25Moderate 19 30.6Dissatisfied 12 19.3Highly dissatisfied 3 4.8

TOTAL 62 100



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(Chart 4.1.7)

INTERPRETATION:


the storage facility in KRS and 26% give remark as satisfied. Only 5% among 62

respondents are highly dissatisfied with the statement. That means almost the entire

customer is satisfied with the speed of KRS

4.1.8 Response showing the importance of storage facility (Tab 4.1.8)


PERCENTAGE

Highly satisfied 13 20.9Satisfied 9 14.5Moderate 19 30Dissatisfied 12 19.3Highly dissatisfied 9 14.5

TOTAL 62 100



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(Chart 4.1.8)

INTERPRETATION:


the statement in logistics and 21% give remark as dissatisfied. 5% among 62 respondents

are in highly dissatisfied for the statement. That means almost the entire customers are

not giving importance to the storage facility in logistics

4.1.9 Response showing the opinion about the speed (Tab 4.1.9)


PERCENTAGE

Very good 27 43Good 16 25.8Average 10 16.1Poor 4 6.4Very poor 5 8

TOTAL 62 100



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INTERPRETATION:

Out of the 62 respondents 44% are rated as very good that means they are satisfied with

the speed facility in KRS and 26% give remark as good. Only 6% among 62 respondents

are poor in the statement. That means almost the entire customer is satisfied with the

speed at KRS

4.1.10Response showing the importance of speed (Tab 4.1.10)


PERCENTAGE

Very high 24 38.7High 15 24Cant say 10 16.1Low 10 16.1Very low 3 4.8

TOTAL 62 100



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(Chart 4.1.10)

INTERPRETATION:

Out of the 62 respondents 39% are rated as need for very high speed that means they are

satisfied with the speed in logistics and 24% give remark as high speed. 5% among 62

respondents are in very low for the statement. That means almost the entire customers

are need for the speed in logistics

4.1.11 response showing satisfaction level of the area of network of service

(Tab 4.1.11)


PERCENTAGE

Very good 20 32Good 21 33Average 14 22.5Poor 2 3.2Very poor 5 8



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TOTAL 62 100

(Chart 4.1.11)

INTERPRETATION:

Out of the 62 respondents 34% are rated as average that means they are no need for the

insurance facility in logistics and 32% give remark as very good. Only 3% among 62

respondents are in not need for the statement. That means almost the entire customer is

satisfied with the insurance at KRS

4.1.12 Response showing the importance of area of network of services (Tab

4.1.12)


PERCENTAGE




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TOTAL 62 100

(Chart 4.1.12)

INTERPRETATION:

Out of the 62 respondents 34% are rated as average that means they are no need for the

insurance facility in logistics and 23% give remark as good. 19% among 62 respondents

are in not need for the statement. That means almost the entire customer is not need forthe insurance in logistics

4.1.13 Response showing the rating of timeliness in KRS (Tab 4.1.13)


PERCENTAGE


TOTAL 62 100



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(Chart 4.1.13)

INTERPRETATION:

Out of the 62 respondents 29% customers are satisfied that they are satisfied with the

timeliness and 27% give remark are very good. Only 3% among 62 respondents is poor

with the statement. That means almost all the customers are satisfied with the timeliness

provided by the company.

4.1.14 Response showing the importance of timeliness (Tab 4.1.14)

OPTIONS NUMBER OFRESPONDENTS PERCENTAGE

Very good 20 32.2Good 19 30.6Average 15 24.1Poor 8 12.9Very poor 0 O

TOTAL 62 100



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(Chart 4.1.14)

INTERPRETATION:

Out of the 62 respondents 32% are rated as very good that means they know need for the

delivery system in logistics and 30% give remark as good. 32% among 62 respondents

are in average with the statement. That means almost the some of customer is highly

aware of the timeliness in logistics

4.1.15 Response showing the rating of accuracy delivery system in KRS

(Tab 4.1.15)


PERCENTAGE

Very good 15 24,4Good 8 12.9Average 19 30.6Poor 16 25.8Very poor 4 6.45

TOTAL 62 100



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(Chart 4.1.15)

INTERPRETATION:

Out of the 62 respondents 31% customers are average that satisfied with the delivery

system and 26% give remark as satisfied. Only 6% among 62 respondents is very good

with the statement. That means almost all the customers are dissatisfied satisfied with the

delivery system provided by the company.

4.1.16 Response showing the importance of delivery system (Tab 4.1.16)


PERCENTAGE

Very good 36 58Good 13 20.9Average 6 9.6Poor 5 8Very poor 2 3.2

TOTAL 62 100

(Chart 4.1.16)



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INTERPRETATION:

Out of the 62 respondents 58% retailers are rated as very good that means they know

need for the delivery system in logistics and 20% give remark as good. 9 % among 62

respondents are in average with the statement. That means almost the entire customer is

highly aware of the delivery system in logistics

4.1.17 Response showing the satisfaction level of the modes of

transportation (Tab 4.1.17)


PERCENTAGE

Highly satisfied 14 22.5Satisfied 13 20.9Moderate 6 9.6Dissatisfied 13 20.9Highly dissatisfied 16 25

TOTAL 62 100



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INTERPRETATION:

Out of the 62 respondents 26% customers are highly satisfied that satisfied with modes of

transportation and 21% give remark as satisfied. 10% among 55 respondents is neutral

with the statement. That means almost all the customers are satisfied with the

transportation facility provided by the company.

4.1.18 Response showing the importance of modes of transportation (Tab

4.1.18)


PERCENTAGE


TOTAL 62 100



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(Chart 4.1.18)

INTERPRETATION:

Out of the 62 respondents 39% customers are highly satisfied that satisfied with need for

modes of transportation and 22% give remark as satisfied. 13% among 62 respondents is

neutral with the statement. That means almost all the customers are need for the

transportation facility provided in a logistics.

4.1.19 Response showing the satisfaction level reliability of service at KRS

(Tab 4.1.19)


PERCENTAGE


TOTAL 62 100



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(CHART 4.1.19)

INTERPRETATION:

Out of the 62 respondents 45% customers are highly satisfied that satisfied with need for

modes of transportation and 20% give remark as satisfied. 19% among 62 respondents

are dissatisfied with the statement. That means almost all the customers are almost

satisfied with the transportation facility in a logistics industry

4.1.20 Response showing the importance of reliability (Tab 4.1.20)


PERCENTAGE

Highly satisfied 16 25..8Satisfied 14 22.5Moderate 13 20.9.Dissatisfied 15 24.1Highly dissatisfied 4 6.4.

TOTAL 62 100

(CAHRT 4.1.20)



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INTERPRETATION:

Out of the 62 respondents 26% customers are rated that need for the reliability in

logistics and 23% give remark as satisfied. 21% among 62 respondents are moderate with

the statement. That means almost all the customer is aware of the reliability provided in

logistics



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TESTING OF HYPOTHYSIS

4.2 TESTING OF HYPOTHESIS:

4.2.1 Chi- Square test:

Chi-square test is one of the important tests developed to test hypothesis. It is a non

parametric test. This test is first used by Karl Pearson in the year 1900. We want to

ascertain the frequency of events falling in specified categories in a number of business

problems. Chi-square test is a test statistic which measures the discrepancy between

observed or actual frequencies and their corresponding expected frequencies is called the

chi-square test (2). Here the test is used to test whether there is any significant



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relationship between customer satisfaction and service marketing provided by the

company.

Null Hypothesis (Ho): The customers satisfaction is independent of service marketing.

Alternative Hypothesis (H1): The customers satisfaction is dependent of servicemarketing.

Where

O = Observed frequency,

E = Expected frequency,

Where

TABLE 4.2.1 OBSERVED FREQUENCY TABLE:

HIGH MODERATE LOW TOTAL

HIGH 33 7 0 40

MODERATE 7 15 0 22

LOW 0 0 0 0



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TOTAL 40 22 0 62

Expected frequency is calculated by using the formula;

TABLE 4.2.2 EXPECTED FREQUENCY TABLE:

HIGH MODERATE LOW

HIGH 25.81 14.19 0

MODERATE 14.19 7.81 0

LOW 0 0 0

Since some of the cell frequencies are less than five, Yates correction needs to be done.

This correction is done to avoid incorrect inference from Chi-square hypothesis tests.

Here regrouping is done combining the frequencies of adjoining groups so that the new

cell frequencies become grater than five.

Formula for Yates correction,

TABLE 4.2.3 CHI-SQUARE TABLE:

OBSERVED

FREQUENCY

(O)

EXPECTED

FREQUENCY

(E)

(O-E) O-E- 0.5 [O-E- 0.5]2 [O-E- 0.5]2/E



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33 25.81 -7.19 6.69 44.76 1.73

7 14.19 7.19 6.69 44.76 3.15

7 14.19 7.19 6.69 44.76 3.15

15 7.81 -7.19 6.69 44.76 5.73

[(O-E) 2/ E] = 13.76

Degree of freedom = (r-1) (c-1)

I.e., = (3-1) (3-1)

= 4

Level of significance = 5%

The table value of chi-squire for 4 degrees of freedom at 5% level of significance is

9.488

Calculated value = 13.76

INTERPRETATION:

Comparing calculated value with the table value with degrees of freedom as 4 at 5%

level of significance, it is found that the calculated value is higher than the table va

in tor duct ion

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