mt final report - 97

A THESIS ON

“A STUDY ON CUSTOMER SATISFACTION TOWARDS THE SERVICES OF TWO WHEELER VEHICLES OF

HERO HONDA AND BAJAJ BIKES,PANAJI- GOA”

SUBMITTED BY:

HRUSHIKESH KONDUSKAR8NBGP005

A Report Submitted in partial fulfillment of the requirements of

THE MBA PROGRAM

(The Class of 2008-10)

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INDEX

SR. NO.

PARTICULARS PAGE. NO.

ACKNOWLEDGEMENT 3

ABSTRACT 5

1. INTRODUCTION 6 [1.1]Automobile Industry Background 7 [1.2]Growth of the Industry 7 [1.3] Indian Automobile Market 7 [1.4] Industry Profile 8 [1.5]Current status of Automotive Industry 8 [1.6]Company Profile’s 10

2. NEED FOR THE STUDY 21

3. LITERATURE REVIEW 22

4. OBJECTIVES 28

5. HYPOTHESIS 28

6. RESEARCH METHODOLOGY 29 (i) Source OF Data 29(ii) Sampling procedure 30

(iii) Research Instrument 30(iv) Data Completion and Analysis 31

7. DISCUSSION OF IMPLICATION 38

8. CONCLUSION AND RECOMMENDATIONS: 40

9. REFERENCES42

10. ANNEXURE44

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ACKNOWLEDGEMENT

Survey is an excellent tool for learning and exploration. No classroom routine can substitute

which is possible while working in real situations. Application of theoretical knowledge to

practical situations is the bonanzas of this survey.

Without a proper combination of inspection and perspiration, it’s not easy to achieve anything.

There is always a sense of gratitude, which we express to others for the help and the needy

services they render during the different phases of our lives. I too would like to do it as I really

wish to express my gratitude toward all those who have been helpful to me directly or indirectly

during the development of this project.

I would like to thank my Faculty Guide Mr. Chetan Hiremath for leading me in the right

direction, motivating me at each and every step and giving me valuable advice and guidance

throughout the duration of the Thesis and also Mr. Imran Ahmad who was always there to help

and guide me when I needed help. His perceptive criticism kept me working to make this project

more full proof. I am thankful to him for his encouraging and valuable support.

I am also thankful to the General Manager of service centers of Hero Honda Motors and Bajaj

Motors for all the help and support provided to me.

Thanking everyone in anticipation.

HRUSHIKESH KONDUSKAR 8NBGP005

MBA 2008-2010

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DECLARATION

I hereby declare that this project work entitled “A STUDY ON CUSTOMER

SATISFACTION TOWARDS THE SERVICES OF TWO WHEELER VEHICLES OF

HERO HONDA AND BAJAJ BIKES, PANAJI- GOA” is my work, carried out under the

guidance of my faculty guide Mr. Chetan Hiremath and this report neither full nor in part has

ever been submitted for award of any other degree of either this university or any other

university.

HRUSHIKESH KONDUSKAR 8NBGP005 MBA 2008-10

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ABSTRACT

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.

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

satisfaction for firms.

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.

Since automotive sector is getting very competitive by the day each manufacturer has to try

something new and innovative to lure new customers and retain the old ones. The study was

conducted to know whether the Quality of service, Honesty and Integrity of Service Personnel,

Delivery Time taken, Availability of Spare parts, Service Charges influence customer

satisfaction level. The study was conducted on the two wheeler owners of Hero Honda and Bajaj

motors at Panaji-Goa. Over 190 customers were interviewed with structured questionnaire.

Further the data was tabulated and analyzed using chi-square test. The study concluded that all

the above factors were responsible for to the customers satisfaction level with their respective

service providers.

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1. INTRODUCTION:

The two wheeler segment in the automobile industry plays a vital role in India. The

present day market is such that a two wheeler is affordable by middle class people in urban areas.

It is also more convenient for traveling short distance within the city and for individual, over, the

years the sales figure of the two wheelers has increased to a very large extent. The sales of the

two wheelers in 1950 were merely 900 units, where now the sales have gone up to millions.

The two wheeler market mainly consists of scooterette and motor cycle. The motor

cycle’s segment forms 65% of whole of two wheeler segment. Whereas earlier the motorcycles

had a very small share in the two wheeler segment but with the collaboration of Indian and

Japanese companies (Honda, Suzuki, and of Kawasaki) the share has increased tremendously

with reason being that two wheelers had a superior engine , better pickup, good

mileage ,improved designs and large option to choose.

The two wheeler segment is divided into two stroke and four stroke categories. The two

strokes consists of Kinetic Honda Nova Yamaha etc, the four strokes category consists of Honda

active, TVS scooty etc.

Most of the officials or some persons generally prefer these two wheelers, Such as Honda

active, Dio, Bajaj wave etc. as they are more concerned with mileage. They are also concerned

with these two wheelers, as they are prefer ungeared vehicles, so that it would be easy to ride the

two wheelers in the cities where there is much traffic. The scooterette segment will continue to

lead the demand for two wheeler in the coming years.

The Indian two wheeler industries produced and sold about 6.4 million units in the year

2007-08 like any other Indian industry, the environment policy guided and controlled this

segment of the industry as well. Licensing norms ruled day till the mid 80’s access to foreign

technology inputs and foreign investment were strictly government controlled.

Since mid 80’s the Indian automobile industry was administered select doses of

liberalization, foreign collaboration coupled with Indian market potential attracted world major

companies like Bajaj, Honda, TVS etc.

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[1.1] INDUSTRIAL BACKGROUND OF THE STUDY

Since time immemorial man has been trying to make things which would make life

easier. Among this is the transportation for himself and the goods. The invention of wheel

revolutionized concept of transportation. Initially human beings and animals were used drawings

carts but the zest to faster and deliver large quantities in faster period resulted in constant

improvement of wheel driven carts.

In 1985 Gattlib palmer and Kalt benz invented the first petrol driven two wheeler .This

was the beginning of the trend, which revolutionized the concept of personal transport. But with

the passage of time the need for a fuel efficient light weight vehicle was felt.

[1.2] GROWTH OF THE INDUSTRY

In India two wheelers have demonstrated the ever since they come to know been used in

the country. So the manufacturers are all set to woo the customers with the styles that surprised.

Efficiency above expectations durability and services more reliable and pricing.

Since the 1980’s the market for personalized transport experienced strident growth in the

country.

From January 1994 the market especially for two wheelers has so grown to meet the

demand of the customers of India. The production capacity has been consistently increased.

Largely speaking three major categories of two wheeler started coming, the scooters the

motor cycles and mopeds. The recent trend is for the scooterette.

[1.3] INDIAN AUTOMOBILE MARKET

In India basically the people are composed of middle and lower income people. For the

economical and reasonable comfortable bike or scooter with less maintenance was the priority.

Honda noticed this and their efforts paid dividends when active and dio were lunched. The

customer’s attitude too changed with preference for looks. Low cost, maintenance, fuel

efficiency, and power engine, availability of spares parts, comfortable riding and good after sale

service.

Consumer long list of preference was carefully kept in mind and a new era market

segmentation began. The market now segregates high income and middle income from rich class

of customers. Bikes and scooters for everyone has become a motto for automobile industry.

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Rich and high income group of customers usually goes for

Looks Maintenance Power

The middle and low income people goes for Fuel efficiency Power Economical cost

[1.4] INDUSTRIAL PROFILE

The Indian two wheeler industries can be broadly classified as motor cycles, scooters

and mopeds.

In the last 6 years, the domestic two wheeler industries have seen structural changes.

This can be seen from the change in composition of two wheeler sales. Where the motor cycles

have consistently gained market share from scooter and moped segment to corner a share of 41%

of total two wheeler sales. This trend is expected to continue in the next two years till the four

stroke scooters make their presence felt in this segment. The table below gives an idea about the

strides made by motor cycle’s segment in the last six years.

Moped sales in southern region lead in three wheeler with a contribution of 42% and

35% of total three wheelers sales respectively.

[1.5] CURRENT STATUS OF INDIAN AUTOMOTIVE INDUSTRY:

The industry encompasses commercial vehicles, multi-utility vehicles, passenger cars,

two wheelers, three wheelers, tractors and auto components. There are in place 15 manufacturers

of cars and multi utility vehicles, 9 of commercial vehicles, 14 of Two/Three Wheelers and 10 of

Tractors besides 5 of engines. With an investment of Rs.50, 000 crores, the turnover was Rs.

59,500 crores in Automotive Sector during 1999-2000. It employs 4, 50,000 people directly and

100, 00,000 people indirectly and is now inhabited by global majors in keen contention.

India manufactures about 38,00,000 2-wheelers, 5,70,000 passenger cars, 1,25,000 Multi

Utility Vehicles, 1,70,000 Commercial Vehicles and 2,60,000 tractors annually.

India ranks second in the production of two wheelers and fifth in commercial vehicles.

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India’s automotive component industry manufactures the entire range of parts required by

the domestic automobile industry and currently employs about 250,000 persons. Auto

component manufacturers supply to two kinds of buyers – original equipment manufacturers

(OEM) and the replacement market. The replacement market is characterized by the presence of

several small-scale suppliers who score over the organized players in terms of excise duty

exemptions and lower overheads. The demand from the OEM market, on the other hand, is

dependent on the demand for new vehicles.

The auto sector (excluding Tractors) attained a steep cumulative annual growth of 22%

between 1992 and 1997. The Tractors achieved a cumulative annual growth of 16%. Component

production grew by 28%. There has been a slowdown in the automobile sector in the past two

years. However, the component industry maintained a low but positive growth rate mainly due to

its export performance. Over the years, the component industry has maintained a 10% - 12%

share of exports in the total production.

Roads occupy an eminent position in transportation as they, as per the present estimate,

carry nearly 65% of freight and 87% of passenger traffic. Although, India has 3.3 million

kilometers of road network, which is the second largest in the world, the Indian highways are

getting overpopulated. Traffic management and road sense also need attention.

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[1.6] COMPANY PROFILE’S:

[I] HERO HONDA MOTORS LTD.

Hero Honda Motors Limited was established in 1984, as a joint venture between India's

Hero Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company. In 1985

production began with the launch of its first motorcycle, the CD100, which gave 80 km to the

liter. In 1987 the engine plant was started and in 1989 the Company produced its 3,00,000th

motorcycle. In 2001 Hero Honda manufactured its 50,00,000th motorbike. Hero Honda has a

reputation of being the most fuel-efficient and the world's single largest two wheeler Company.

Shri Brijmohan Lall Munjal is the chairman and managing director of this Company.

As early as in 1960’s very few Indian bicycle manufacturers were interested in exports.

However, the hero groups foray into the overseas markets in 1963 pioneered Indian exports in

the bicycle segment. It was more prompted essentially by the need to remain attuned to the

global marketplace. While initial exports were restricted to Africa and the middle east, today

more than 50% of the exports from Hero Cycles Ltd. Meet the demands of sophisticated markets

in Europe and America. This is primarily because of appropriate product development and

excellent quality that hero offers..

Hero Honda has grown like no other company in the auto business. Several times in the

path, savvy observers have insisted that it has grown just too big and that no company its size

can continue to show growth rates. But Hero Honda has ignored that opinion and continued

growing at the place it has set many years ago.

Hero Honda today faces more competitor than it has ever in the history. Now that is the

undisputed two wheeler Numerous Uno in the country. Every single two wheeler manufacturer

in India if looking market share away from it. More over for the first time there are so many

four- stroke challengers in the market. And Hero Hondas best selling products are ageing.

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CORPORATE PROFILE:

The joint venture between India's Hero Group and Honda Motor Company, Japan has not

only created the world's single largest two wheeler company but also one of the most successful

joint ventures worldwide.

During the 80s, Hero Honda became the first company in India to prove that it was

possible to drive a vehicle without polluting the roads. The company introduced new generation

motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it -

Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero

Honda sold millions of bikes purely on the commitment of increased mileage

Over 19 million Hero Honda two wheelers tread Indian roads today. These are almost as

many as the number of people in Finland, Ireland and Sweden put together!

Hero Honda has consistently grown at double digits since inception; and today, every second

motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero

Honda's top -selling motorcycle – Splendor. This festive season, the company sold half a million

two wheelers in a single month—a feat unparalleled in global automotive history.

Hero Honda bikes currently roll out from two globally benchmarked manufacturing

facilities based at Dharuhera and Gurgaon in Haryana. These plants together are capable of

churning out 3.9 million bikes per year. A third state of the art manufacturing facility at Hardwar

in Uttaranchal will soon be commissioned to cope with sustained customer demand.

Hero Honda's extensive sales and service network now spans over 3000 customer touch

points. These comprise a mix of dealerships, service and spare points, spare parts stockiest and

authorized representatives of dealers located across different geographies.

Hero Honda values its relationship with customers. Its unique CRM initiative - Hero Honda

Passport Program, one of the largest programs of this kind in the world, has over 3 million

members on its roster. The program has not only helped Hero Honda understand its customers

and deliver value at different price points, but has also created a loyal community of brand

ambassadors.

Having reached an unassailable pole position in the Indian two wheeler market, Hero

Honda is constantly working towards consolidating its position in the market place. The

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company believes that changing demographic profile of India, increasing urbanization and the

empowerment of rural India will add millions of new families to the economic mainstream. This

would provide the growth ballast that would sustain Hero Honda in the years to come. As

Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, "We pioneered

India’s motorcycle industry, and it's our responsibility now to take the industry to the next level.

We'll do all it takes to reach there.''

MISSION STATEMENT:

Hero Honda’s mission is to strive for synergy between technology, systems and human

resources, to produce products and services that meet the quality, performance and price

aspirations of its customers. At the same time maintain the highest standards of ethics and social

responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the

organization forge a unique and mutually beneficial relationship with all its stake holders.

HERO HONDA'S MANDATE:

Hero Honda is a world leader because of its excellent manpower, proven management,

extensive dealer network, efficient supply chain and world-class products with cutting edge

technology from Honda Motor Company, Japan. The teamwork and commitment are manifested

in the highest level of customer satisfaction, and this goes a long way towards reinforcing its

leadership status

S.W.O.T. ANALAYSIS:

Strengths:

Hero Honda introduced First stroke bike in the Indian market.

Hero Honda gives 80 Km/Liter Avg.

Huge sale network (3500 Dealers).

Better sale service.

It has the highest share in automobile sector.

It has a good brand image.

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It gives better service for customers.

Best customer preference.

Debt equity ratio is only 0.1.

The company has clarified about its intention of setting a third plant in addition to its existing

two plants. The company has embarked upon a green field expansion plan and has earmarked Rs

2 billion for the same. It should be noted that the company has a strong cash flow position; it

generated Rs 9 billion from operation in FY04 and is virtually a debt free company.

Weaknesses:

Suppose to be very sophisticated.

Not fit for ruler India.

They have big gap between cubic capacities of its products.

Its market share is reducing from last few years.

Spare parts are too costly.

Opportunities:

Hero Hondas the first manufacture to launch eco friendly bikes with 4-stroke engines.

They have attained a stronger good will and popularity in the industry and the consumers.

They should go in new segments of bikes.

There is large no. of young consumers in the market. Company has to focus on them.

They have big opportunities in heavy bike segments.

As government polices are amended against pollution in metro cities, Hero Honda being

4 stroke bike manufacture have great opportunities to explore its new innovations and

technologies.

Threats:

Main threats to Hero Honda are their competitors like:-

Bajaj Auto Ltd.

TVS motors Ltd.

Yamaha Motors India.

Honda motorcycle and scooter India.

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The cost of the product is very high in comparison to other companies.

Decreasing market share.

HERO HONDA’S CORE VALUES:

Respect for Human Beings.

Is a responsive organization?

Is a boundary less organization?

Is striving for excellence.

Provide fearless, enjoyable working environment.

Is self-reliant.

Providing learning environment.

Is a caring organization?

Enables relationship buildings.

Prompts transparency & trust.

Is creativity promoting.

Is performance oriented?

BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director

3 Mr. Toshiaki Nakagawa Jt. Managing Director

4 Mr. Takao Eguchi Whole-time Director

5 Mr. Sunil Kant Munjal Non-executive Director

6 Mr. Om Prakash Munjal Non-executive Director

7 Mr. Tatsuhiro Oyama Non-executive Director

8 Mr.Masahiro Takedagawa Non-executive Director

9 Mr. Narinder Nath Vohra Non-executive & Independent Director

10 Mr. Pradeep Dinodia Non-executive & Independent Director

11 Gen.(Retd.) Ved Prakash Malik Non-executive & Independent Director

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12 Mr. Analjit Singh Non-executive & Independent Director

13 Dr. Pritam Singh Non-executive & Independent Director

14 Ms. Shobhana Bhartia Non-executive & Independent Director

15 Dr. Vijay Laxman Kelkar Non-executive & Independent Director

16 Mr. Sunil Bharti Mittal Non-executive & Independent Director

[II] BAJAJ AUTO LTD.

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Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki Heavy Industries

of Japan to manufacture state-of-art range of latest two-wheelers in India. The JV has already

given the Indian market the KB series, 4S and 4S Champion, Boxer, the Caliber series, and

Wind125.

Kawasaki Heavy Industries is a Fortune 500 company with a turnover of USD 10 billion

(Rs. 45,840 crores). It has crafted new technologies for more than hundred years. The

technologies of KHI have redefined space systems, aircrafts, jet engines, ships, locomotive,

energy plants, automation system, construction machinery, and of course high reliability two-

wheelers.

KHI has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcan

bikes. Straight from its design boards, the Kawasaki Bajaj Eliminator, India's first real cruiser

bike, redefines the pleasure of "biking" in looks as well as performance measurement.

CORPORATE PROFILE:

'Inspiring Confidence,' the tagline, has build up confidence, through excitement

engineering, not only to domestic consumers but also internationally. Established just eight

decades back in 1926 by Jamnalal Bajaj, the company has been vested with India's largest

exporter of two and three wheelers, 196,710 units in 2004-05, a great 26 per cent jump over the

previous year.

Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the year 2004-05,

which exceeds Rs 65.4 billion, a record in the history of the company. The gross operating profit

stands at Rs. 9.3 billion, again a record. The profits after tax of the BAL are close to Rs. 7.7

billion, and the pre-tax return on operating capital is at an impressive 80 per cent.

The strength of the company is its quality products, excellence in engineering and design,

and its ability to delight the customers. The Pulsar, introduced in November 2004, is continually

dominating the premium segment of the motorcycle market, helping to maintain the market

superiority. Discover DTSi, one more successful bike on Indian roads, is in the 'value' segment

of the motorcycle market. It incorporates a high degree of power with fuel efficiency of a 100 cc

motorcycle.

BAL is committed to prevention of pollution, continual improvement of environment

performance and compliance with all environmental legislation and regulations. They always

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believe in providing the customer 'value for money' and keep an special eye upon quality, safety,

productivity, cost and delivery.

BAJAJ AUTO’S MISSION:

We at Bajaj Auto continue to firmly believe in providing the customer Value for money,

for years through our products and services. This we shall maintain and improve,

In our decision making, quality, safety and service will be given as much consideration as

productivity, cost and delivery.

Quality shall be built into every aspect of our work life and business operations. Quality

improvements and customer satisfaction shall be the responsibility of every employee.

S.W.O.T. Analysis

Let's analyze the position of Bajaj in the current market set-up, evaluating its strengths,

weaknesses, threats and opportunities available.

Strengths

Highly experienced management.

Product design and development capabilities.

Extensive R & D focus.

Widespread distribution network.

High performance products across all categories.

High export to domestic sales ratio.

Great financial support network (For financing the automobile)

High economies of scale.

High economies of scope.

Weaknesses

Hasn't employed the excess cash for long.

Still has no established brand to match Hero Honda's Splendor in commuter segment.

Not a global player in spite of huge volumes.

Not a globally recognizable brand (unlike the JV partner Kawasaki)

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Opportunities

Double-digit growth in two-wheeler market.

Untapped market above 180 cc in motorcycles.

More maturity and movement towards higher-end motorcycles.

The growing gearless trendy scooters and scooterette market.

Growing world demand for entry-level motorcycles especially in emerging markets

Threats

The competition catches-up any new innovation in no time.

Threat of cheap imported motorcycles from China.

Margins getting squeezed from both the directions (Price as well as Cost)

The Inevitable Change

Bajaj on internal analysis found that it lacked –

1. The technical expertise to deliver competitive goods.

2. The design know-how.

3. And the immediate inability to support the onslaught of competitors.

All these forced Bajaj to look for an international partner who could bring in technology

and also offer some basic platforms to be manufactured and marketed in India. Kawasaki of

Japan is a world-renowned manufacturer of high performance bikes. Bajaj entered into a

strategic tie-up with Kawasaki in late 1990s to enhance its product line and knowledge up-

gradation to support long-term strategies.

This served the purpose of sustaining the market competition for a while. From 1996 to

2000, Bajaj invested hugely in infrastructure while simultaneously developing product design

and innovation capabilities, which is the prime reason behind the energetic Bajaj of 21st century.

Bajaj introduced a slew of products right from entry-level motorcycle to the high premium

segment right from 2001 onwards, and since then its raining success all the way for Bajaj.

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Last quarter, Bajaj had impressive performance growing at a rate of 20%+ when the

largest manufacturer grew at just 6%. This stands a testimony to the various important strategic

decisions over the past decade.

BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Rahul Bajaj Chairman

2 Madhur Bajaj Vice Chairman & Whole-Time Director

3 Rajiv Bajaj Managing Director

4 Sanjiv Bajaj Executive Director

5 D.S. Mehta Whole-Time Director

6 Kantikumar R. Podar Director

7 Shekhar Bajaj Director

8 D.J. Balaji Rao Director

9 J.N. Godrej Director

10 S.H. Khan Director

11 Mrs. Suman Kirloskar Director

12 Naresh Chandra Director

13 Nanoo Pamnani Director

14 Manish Kejriwal Director

15 P Murari Director

16 Niraj Bajaj Director

ABOUT THE SUBJECT

MARKETING

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http://www.bajajauto.com/1024/aboutbajaj/niraj.asp

http://www.bajajauto.com/1024/aboutbajaj/pmurari.asp

http://www.bajajauto.com/1024/aboutbajaj/manish.asp

http://www.bajajauto.com/1024/aboutbajaj/nanoo.asp

http://www.bajajauto.com/1024/aboutbajaj/naresh.asp

http://www.bajajauto.com/1024/aboutbajaj/suman.asp

http://www.bajajauto.com/1024/aboutbajaj/shkhan.asp

http://www.bajajauto.com/1024/aboutbajaj/jngodrej.asp

http://www.bajajauto.com/1024/aboutbajaj/balajirao.asp

http://www.bajajauto.com/1024/aboutbajaj/shekhar.asp

http://www.bajajauto.com/1024/aboutbajaj/kantikumar.asp

http://www.bajajauto.com/1024/aboutbajaj/dsmehta.asp

http://www.bajajauto.com/1024/aboutbajaj/sanjiv.asp

http://www.bajajauto.com/1024/aboutbajaj/rajiv.asp

http://www.bajajauto.com/1024/aboutbajaj/madhur.asp

http://www.bajajauto.com/1024/aboutbajaj/rahul.asp

“Marketing is so basic that it can be considered as a separate function it is the whole

business seen from points. The point of view of its final results, that is from customer point of

view business success is not determined by the producer but by the customer”.

Peter.F.Drucker

“Marketing consists of all activities by which a company adapts itself to its environment”

WHAT IS MARKETING?

Marketing is a social and managerial process by which individuals and groups obtain

what they need and want through creating, offering and exchanging products of value with

others.

WHAT IS MARKET?

Market consists of all the potential customers sharing a particular need or wants who

might be willing and able to engage in exchange to satisfy that need or wants.

MARKET SEGMENTATION:

The task of breaking the total market into segments that share. Properties is market

segmentation. It is the process of identifying a group of consumers with similar needs and

producing a product that will meet needs at a profit.

Market segmentation will facilitate the firm to identify and find out the additional benefit desired

by the people to pay benefits and source where they would like to buy it.

WHO IS CUSTOMER?

“A customer is one who purchase products or service for satisfying his wants and needs

which is dedicated by his/her mental forces like desire, perception, attitude etc. and economics

forces like budget, savings, income etc”

Customer is value maximizes within the bounce of such costs and limited knowledge,

mobility and income. They form an expectation of value and act on it, whether or not the offer

lives up to value expectation of its both satisfaction and repurchases probability.

WHAT IS SATISFACTION?

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Satisfaction is a person feeling of pleasure or disappointment resulting from comparing a

product or services perceived performance or outcome in relation his/her expectation.

As this definition makes clear satisfaction is a function of perceived Performance and

expectations, if the performance falls short of expectations, the customer is dissatisfied if the

performance matches the expectations the customer is satisfied and if the performance exceeds

expectation the customer is highly satisfied.

2. NEED FOR THE STUDY:

The need for the study arises in order to create awareness amongst the customer and to determine

the customer satisfaction.

The need for the study arises due to the following reasons:

1. To measure the level of customer satisfaction towards the services provided by Hero Honda

and Bajaj.

2. To know the customer preference towards the services of Hero Honda and Bajaj of two

wheeler.

3. To determine the factors influencing the customers satisfaction regarding bikes.

4. To know which manufacturer is providing better services.

5. To analyze the different services offered and initiatives adapted for two wheeler automobile

sector their products.

6. To know the customer opinion towards existing after sales service provided by the company.

3. LITERATURE REVIEW:

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Review of Literature

1. Customer Service:

Customer service is the provision of service to customers before, during and after a purchase.

According to Jamier L. Scott. (2002)[1], “Customer service is a series of activities designed to

enhance the level of customer satisfaction – that is, the feeling that a product or service has met

the customer expectation."Its importance varies by product, industry and customer; defective or

broken merchandise can be exchanged, often only with a receipt and within a specified time

frame. Retail stores will often have a desk or counter devoted to dealing with returns, exchanges

and complaints, or will perform related functions at the point of sale.

Customer service may be provided by a person (e.g., sales and service representative), or by

automated means called self-service. Examples of self service are Internet sites. The experience a

customer has of a product also affect the total service experience, but this is more of a product

direct feature than what is included in the definition of customer service.

Customer service is normally an integral part of a company’s customer value proposition. From

the point of view of an overall sales process engineering effort, customer service plays an

important role in an organization's ability to generate income and revenue[2]. From that

perspective, customer service should be included as part of an overall approach to systematic

improvement.

2. Customer Loyalty:

Rick (2008) This study finds that companies with sound customer strategies can use that ultimate

loyalty program as a differentiator in an increasingly muddled market. In an increasingly

competitive market, customer loyalty efforts can play a major part in the attraction of new

customers and the retention of current ones. Marketers dealing in the telecommunications arena

are established in an exciting era of industry growth. As consumers' choices expand, the

importance of a sound customer relationship strategy becomes more and more important for the

success of the company.

3. Customer Switching:

22

http://en.wikipedia.org/wiki/Customer_Service#cite_note-Selden1998-1

http://en.wikipedia.org/wiki/Sales_process_engineering

http://en.wikipedia.org/wiki/Customer_value_proposition

http://en.wikipedia.org/w/index.php?title=Sales_and_service_representative&action=edit&redlink=1

http://en.wikipedia.org/wiki/Customer_Service#cite_note-0

http://en.wikipedia.org/wiki/Service_(economics)

Inger (2008), This study aims at deepening understanding of the role of emotion in customer

switching processes and identifying the relative frequency of negative discrete emotions in terms

of different triggers. The main finding was that the identified emotions were located in the

trigger part of the relationship, and was expressed by the respondents during the switching

process in form of annoyance, anxiety, disappointment, dissatisfaction, distress, depression, rage,

stress and tension. Mainly study is trying to find one answer that do customers return rather

quickly to the switched-from operator when the trigger was influential/stress-related, or do they

become stable at the switched-to-operator.

4. Markets Development :

Gamie (2008), undertook a research to explore the challenges of reaching low-income customers

in developing markets. The whole study is just one interview based in which Anderson is asking

question from Gurdeep Singh Operations Director with Hutchison Essar India. Now that

discussion concludes that managers need to go beyond traditional approaches to serving the poor,

and innovate by taking into account the unique institutional context of developing markets. In

most cases, MNOs have served the poorest consumers through shared-use models such as

GrameenPhone's Village phone concept in Bangladesh, due to the commonly held belief that

reaching these consumers is difficult due to two key challenges – affordability and availability.

This paper demonstrates that MNOs can deliver availability and affordability to achieve

increased individual or household penetration through business model innovation.

5. Customer Relationship:

Gustafsson (2005) The purpose of this study is to enhance understanding of the club's role in the

customer relationships of a telecommunications company by re-considering the concepts of

frequency and commitment in a telecom-customer club. Study found an umbrella concept for the

club regarding loyalty: A keeping function, which divided the customer club in two ways,: the

affective role makes the customer stay with the company and the calculative role with a more

inferred loyalty function. The expressions that were not connected to loyalty are the attracting

function. So it seems obvious that customers do not merely look at certain parts of the club

offering where loyalty is concerned: they evaluate the club and their relationship with the service

provider according to different criteria.

6. Customer Loyalty:

23

Debnath (2008) This study explain that the prime focus of the service providers is to create a

loyal customer base by benchmarking their performances and retaining existing customers in

order to benefit from their loyalty. With the commencement of the economic liberalization in

1991, and with a view to expand and improve telecom infrastructure through the participation of

the private sector, the Government of India permitted foreign companies holding 51 percent

equity stake in joint ventures to manufacture telecom equipment in India. The Indian

Government has announced a new policy, which allows private firms to provide basic telephone

services. There had been a monopoly of the state-owned department of telecommunications.

However, several companies are expected to benefit from the policy change.

7. Service Development:

Kalavani (2006) in their study analyzed that majority of the respondents have given favorable

opinion towards the services but some problems exist that deserve the attention of the service

providers. They need to bridge the gap between the services promised and services offered. The

overall customers’ attitude towards services is that they are satisfied with the existing services

but still they want more services to be provided.

8. Services Marketing:

Kumar (2008), in their study titled “Customer Satisfaction and Discontentment vis-a-vis BSNL

Landline Service: A Study” analyzed that at present, services marketing plays a major role in the

national economy. In the service sector, telecom industry is the most active and attractive.

Though the telecom industry is growing rapidly, India's telecom density is less than the world's

average telecom density as most of India's market is yet to be covered. This attracts private

operators to enter into the Indian telecom industry, which makes the Bharat Sanchar Nigam

Limited (BSNL) more alert to run its business and survive in the market.

9. Managing the Customer Perceived Service Quality:

Seth et al (2008), in their study titled “Managing the Customer Perceived Service Quality for

Automobile Service stations: an Empirical Investigation” analyzed that there is relative

importance of service quality attributes and showed that responsiveness is the most importance

dimension followed by reliability, customer perceived network quality, assurance, convenience,

24

empathy and tangibles. This would enable the service providers to focus their resources in the

areas of importance. The research resulted in the development of a reliable and valid instrument

for assessing customer perceived service quality for cellular mobile services.

10. Marketing Mix Strategies Adopted By Selected Indian Business Outsourcers:

Sundaram (2008) in their study titled “Marketing Mix Strategies Adopted By Selected Indian

Business Outsourcers” analyzed that Indian business process outsourcers are mostly marketing

through the web advertisement as a promotional strategy to provide accounting and form

processing service to Asian and North American customers and price them on the basis of slab

rate. Smart sourcing can be best explained as the tactical use of specialized external resources to

perform core and non core activities, which were originally carried out by internal staff and

resources. Business process outsourcers in India are marching towards knowledge process and

value added outsourcing.

11.Influence of Demographic Variables on Marketing Strategies in the Competitive

Scenario:

Kaliyamoorthy and Kumar (2007) in their study titled “Influence of Demographic Variables on

Marketing Strategies in the Competitive Scenario” analyzed that Demographic variables have

much significance in marketing. They are used as bases for segmenting the market, and their role

in consumer's buying decision is notable and vital. Even when the target market is described in

non-demographic terms (say, a personality type), the link back to demographic characteristics is

needed in order to estimate the size of the target market and the media that should be used to

reach it efficiently. So, identifying the demographic profile of the target consumers is very

important for the marketers. The paper, with a strong backing of literature, explains why the

marketers must give much importance to the changing demographic trends while evolving

marketing strategies in the prevailing competitive business environment.

12. Customer loyalty in the services context:

Bitner (1990) linked customer perceptions of service quality with stated intent to remain with the

organization, willingness to recommend, likelihood to purchase, the likelihood of switching, and

the likelihood of complaining. She found a strong relationship between perceptions of service

25

quality and these stated intentions, which she terms expressions of loyalty. In other study

examining perceived service quality and measures of behavioral intent and other actions towards

an organizations, Boulding et al (1993) found a positive correlation between service quality and

repurchase intentions, willingness to recommend for long term involvement, paying a price

premium, and remaining loyal to the company.

Examining the behavioral anf financial consequence of service quality, Zeithaml, Berry,

and Parasuraman (1996) found that the behavioral consequences of service quality are either

retention or rejection by the customer, leading to financial gains or loses by the service provider.

Behavioral intentions were operationalised as indications of whether customers would remain

with, or defect from the company. Zeithaml, Berry, and Parasuraman (1996) view loyalty in

terms of consumer bonding with organizations. Behaviors that indicate that customers were

forging bonds with a company included praising the firm, expressing preference for the company

over others, continuing to purchase, increasing the volume of purchase, and agreeing to pay a

price premium.

13.Trust:

Moorman et al (1992) define trust as “the willingness to rely on an exchange partner in whom

one has confidence”. The nature of service offerings means that service consumers typically pay

in advance to buy a firm’s promise and, therefore, must be willing to rely on the firm to delivery

its promise (Berry, 1996). Trust is considered to be a pre-requisite for loyalty, especially in the

risk-dominated cyberspace where transactions are conducted at a distance (Reichheld & Shefter,

2000). The maintenance of consumer trust in the retail banking industry is of considerable

importance as it can impact on the likelihood of retaining existing customers (Morgan and Hunt,

1994) and attaining new ones. Furthermore, trust in a bank can also be more important to a bank

customer than price.

Customer perception of a firm’s trustworthiness is valuable not only in terms of

satisfying and retaining existing customers but also in attracting new customers through word-of-

mouth marketing. According to Jones & Sasser (1995), word-of-mouth marketing plays a major

role in acquiring new customers. Because of the high level risk perception inherent in service

offerings, potential customers are more likely to seek personal recommendations when choosing

service providers than relying on information provided by the firms. In many cases,

26

recommendations given by a colleague can significantly reduce a person’s perceived risk in

selecting an unfamiliar service organization (Bowen & Shoemaker, 1998). A customer, when

recommending a service provider to a third party, undertakes a certain level of risk on his or her

credibility toward the third party that is likely to erode if the fails to back up the recommendation

(Foster & Cadogan, 2000). Therefore, customer perception of the firm’s trustworthiness, which

usually reduces the perceived risk of recommendation giving, will increase the likelihood of

customers suggesting the firm to others (Foster & Cadogan, 2000).

14. Conflict Handling:

In interpersonal communication, conflict occurs when an individual perceives incompatibility

between his or her own personal goals, needs, or desires and those of the other party (Pruitt &

Rubin, 1987). In dealing with conflict, people use different strategies to accomplish their goals.

Conflict handling requires cooperative behavior from exchange partners. According to Evans &

Beltramini (1987), in a negotiation setting, cooperative versus competitive intentions have been

found to be linked to satisfactory problem solution. In short, good conflict resolution will result

relationship quality positively. Conflict handling is an important relationship builder. Even

though it is difficult to service industries especially in banking sector to achieve zero service

failure all a time, but it is so important that the particular banks put in place effective conflict

resolution or problem solving machinery.

A major problem which had been resolved satisfactorily may leave in its wake a happy

and loyal customer, but maybe minor issues if not handled carefully will result in defection. A

more excellent approach, for example proactive in planning and implementations includes,

identifying potential conflict, solving conflict before they manifest, avoiding potential conflict

and blocking them. Those efforts could bring the better relationship and loyalty to the particular

bank or service firm (Ndubisi, 2007). Ndubisi & Wah (2005) found a significant relationship

between conflict handling and customer loyalty, indirectly through trust and perceived

relationship quality. As mentioned earlier, the ability of the product or service provider to handle

conflict well will also directly influence customer loyalty.

4. OBJECTIVES

27

The main objectives of the study are:

1. To find out the customer satisfaction level of customer of hero Honda & Bajaj two wheelers

of all the respondents.

2. To find the various services provided by the Hero Honda and Bajaj Motors.

3. To find out various attributes which are considered for Customer Satisfaction.

4. To analyze the after sales service.

5. To study the behavioral factors of customer satisfaction.

6. To compare which manufacturer provides better services and to provide suggestions, in

improving the customer satisfaction and the company sales and profitability

SCOPE OF THE STUDY:

1. It helps to know that which publicity media gives maximum retention to the Customers.

2. The study also helps the company to improve their standard of service and handle.

3. It also helps in putting in possible improvements, additions, and new strategies and offers

the customers.

4. It also puts a detailed insight into the different aspects of the company, such as

manufacturing, marketing sales, production and services etc.

5. HYPOTHESIS:

1] Quality of service: H0 : PA =PB

H1 : PA ≠PB

H0 : Quality of service has no significance impact on the customer satisfaction. H1 : Quality of service has significance impact on the customer satisfaction.

2] Honesty and Integrity of Service Personnel: H0 : PA =PB

H1 : PA ≠PB

H0 : Honesty and Integrity of Service Personnel has no significance impact on the customer satisfaction.

H1 : Honesty and Integrity of Service Personnel has significance impact on the customer satisfaction.

28

3] Delivery Time: H0 : PA =PB

H1 : PA ≠PB

H0 : Delivery Time taken has no significance impact on the customer satisfaction. H1 : Delivery Time taken has significance impact on the customer satisfaction.

4] Availability of Spare parts: H0 : PA =PB

H1 : PA ≠PB

H0 : Availability of Spare parts for the customer has no significance impact on the customer satisfaction.

H1 : Availability of Spare parts for the customer has significance impact on the customer satisfaction.

5] Service Charges: H0 : PA =PB

H1 : PA ≠PB

H0 : Service Charges executed has no significance impact on the customer satisfaction. H1 Service Charges executed has significance impact on the customer satisfaction.

6. RESEARCH METHODOLOGY :

The project is done by survey method. A suitable structured questionnaire was prepared to

collect the information of respondent’s satisfaction and attitude towards the services offered by

Hero Honda and Bajaj two wheeler vehicles. Data received through the questionnaire customer

satisfaction of servicing at Hero Honda and Bajaj vehicles, Panaji-Goa. The study is to find out

the customer satisfaction of Hero Honda and Bajaj two wheeler vehicles on the basis of variables

and attributes like Quality of service, Honesty and Integrity of Service Personnel, Delivery Time

taken, Availability of Spare parts, Service Charges. It is a primary-descriptive research .

[i] SOURCE OF DATA

The data is a collection of primary and secondary data.

PRIMARY DATA

The data is mainly collected through primary source. The method adopted here is

the combination of direct personnel interviews with the help of questionnaire method.

That is a drafted questionnaire has been given directly to the consumer for the collection

of the data. A sample size of 190 customers was taken. The data will be collected using a

29

questionnaire from the related customers; convenience sampling will be used since I will

be interviewing customers. The target population will be the customers of Hero Honda

and Bajaj two wheeler. The data collected will be put on a master-sheet and also fed in to

excel sheet, using the statistical tools the data will be tabulated and analyzed.

SECONDARY DATA

The secondary data is extracted regarding the information related to the Companies

profile, News papers, Business Magazines, library books etc. secondary data from

previous researches will be used for the study. Measurement tools like likert, itemized

and comparative scales will be used in the questionnaire in order to measure the collected

data. The data was tabulated using pie-charts, graphs and tabular columns and the master-

sheet was prepared. Based on the findings the hypotheses were tested using chi-square.

[ii] SAMPLING PROCEDURE:

Panaji city is the major centre chosen for survey and information is collected from

sampling technique. The sample size of collections of data is 190 respondents. Sampling is

basically targeted to the consumers who are chosen by simple random technique. Though the

size of sample is small it has highly reliable finding as it is targeted to right owners.

[iii] RESEARCH INSTRUMENTS:

The different instrument are used to analyze the data, they are:

QUESTIONNAIRE

The questionnaire includes multi choice answers to be chosen by the respondents. The

customer of Hero Honda and Bajaj vehicles has filled the questionnaire, giving their opinion

any promoting on my part.

TABLES

This study uses tables represents the data from the various customers they are

represent both number of samples and percentage. Tables used will be one way

tables.

GRAPHS

30

The study also employs graphs to represent the data in the table to give better

impression and interpretation of percentage in the table. The graphs Bar graph will be

used.

PLAN ANALYSIS

Since a structured questionnaire was used, data classification was done easily .The

data was grouped easily under various heading. This readily revealed the buying

behavior towards Hero Honda and Bajaj vehicles. Tables will be used for tabulating.

Analysis was drawn from the table and inferences were drawn from graph and analysis

leading conclusion and recommendation.

[iv] DATA COMPLETION AND ANALYSIS:

After the data is collected, it is tabulated and findings of the project were presented followed by

analysis and interpretation to reach certain conclusions.

Respondents No.

Hero Honda 95

Bajaj 95

Total 190

Note: Respondents having Average & Reasonable preference towards services for contemplated

satisfaction are not have been taken into consideration.

Table 1] Distribution of respondents for Quality of service : Satisfied Not Satisfied Total

Hero Honda 51 5 56Bajaj 25 32 57

Total 76 37 113

Table.1.1: Chi-Square Distribution

1.1] Calculations with regard to Quality of service :

31

fo fe fo-fe (fo-fe)2 (fo-fe)2/fe

51 37.66372 13.336283 177.856449 4.722222453

5 18.33628 -13.33628 177.856449 9.699700174

32 18.66372 13.336283 177.856449 9.529529996

25 38.33628 -13.33628 177.856449 4.639376445

Total 28.59082907

From the above tables we see that the calculated chi-square value is 28.59 and the table

value is found to be 3.841 for 1 degree of freedom. If we compare it with table 1.1 we can

observe that the calculated and the table value falls outside the accepted region that is the

shaded region, we can conclude that the null hypothesis is rejected and alternate is

accepted hence we can say that Quality of service has significance impact on the

customer satisfaction.

Graph 1: Percentage of respondents Satisfied and Not-Satisfied with the Quality of service

It can be observed from graph 1, that percentage of customers satisfied with regards to Quality of

service of Hero Honda two wheeler are more (51%) than that of Bajaj two wheeler owners

(25%).

Table 2] Distribution of respondents for Honesty and Integrity of Service Personnel:

Satisfied Not Satisfied Total

32

Hero Honda 58 9 67

Bajaj 24 31 55

Total 82 40 122

Table 2.1: Chi-Square Distribution

2.1] Calculations with regard to Honesty and Integrity of Service Personnel:

fo fe fo-fe (fo-fe)2 (fo-fe)2/fe

58 45.03279 12.967213 168.148616 3.733915389

9 21.96721 -12.96721 168.148616 7.654526548

31 18.03279 12.967213 168.148616 9.324605067

24 36.96721 -12.96721 168.148616 4.548587838

Total 25.26163484

From the above tables we see that the calculated chi-square value is 25.26 and the table value is

found to be 3.841 for 1 degree of freedom. If we compare it with table 2.1 we can observe that

the calculated and the table value falls outside the accepted region that is the shaded region, we

can conclude that the null hypothesis is rejected and alternate is accepted hence we can say that

Honesty and Integrity of Service Personnel has significance impact on the customer satisfaction.

Graph 2: Percentage of respondents Satisfied and Not-Satisfied with the Honesty and Integrity of Service Personnel :

33

It can be observed from graph 2, that percentage of customers satisfied with regards to Honesty

and Integrity of Service Personnel of Hero Honda two wheeler are more (58%) than that of

Bajaj two wheeler owners (24%).

Table 3] Distribution of respondents for Delivery Time:


Hero Honda 77 17 94

Bajaj 39 56 95

Total 116 73 189

Table 3.1: Chi-Square Distribution 3.1] Calculations with regard to Delivery Time:

fo fe fo-fe (fo-fe)2 (fo-fe)2/fe77 57.69312 19.306878 372.75555 6.46100503917 36.30688 -19.30688 372.75555 10.2668025356 36.69312 19.306878 372.75555 10.1587309239 58.30688 -19.30688 372.75555 6.392994459 Total 33.27953295





Delivery Time Taken for servicing the vehicles has significance impact on the customer

satisfaction.

Graph 3: Percentage of respondents Satisfied and Not-Satisfied with the Delivery Time

34

Taken :

It can be observed from graph 3, that percentage of customers satisfied with regards to Delivery

Time Taken for servicing the vehicles of Hero Honda two wheeler are more (77%) than that of


Table 4] Distribution of respondents for Availability of Spare parts:


Hero Honda 75 19 94

Bajaj 34 61 95

Total 109 80 189

Table 4.1: Chi-Square Distribution4.1] Calculations with regard to Availability of Spare parts:

fo fe fo-fe (fo-fe)2 (fo-fe)2/fe75 54.21164 20.78836 432.155903 7.97164411619 39.78836 -20.78836 432.155903 10.8613651161 40.21164 20.78836 432.155903 10.7470349534 54.78836 -20.78836 432.155903 7.887732072

Total 37.46777624



35



Availability of Spare parts of the vehicles has significance impact on the customer satisfaction.

Graph 4: Percentage of respondents Satisfied and Not-Satisfied with the Availability of Spare parts :

It can be observed from graph 4, that percentage of customers satisfied with regards to

Availability of Spare parts of the vehicles of Hero Honda two wheeler are more (75%) than that

of Bajaj two wheeler owners (34%).

Table 5] Distribution of respondents in respect of Service Charges:


Hero Honda 10 26 36

Bajaj 6 55 61

Total 16 81 97

36

Table 5.1: Chi-Square Distribution

5.1] Calculations with regard to Service Charges:

fo Fe fo-fe (fo-fe)2 (fo-fe)2/fe

10 5.938144 4.0618557 16.4986715 2.778422108

26 30.06186 -4.061856 16.4986715 0.54882412

55 50.93814 4.0618557 16.4986715 0.323896202

6 10.06186 -4.061856 16.4986715 1.639724523

Total 5.290866952





Service charges incriminated for servicing the vehicle has significance impact on the customer

satisfaction.

Graph 5: Percentage of respondents Satisfied and Not-Satisfied with the Service Charges:

It can be observed from graph 5, that percentage of customers satisfied with regards to Service

charges incriminated for servicing of the vehicle of Hero Honda two wheeler are more (10%)

than that of Bajaj two wheeler owners (6%).

37

7. DISCUSSION OF IMPLICATION:

From the above tables 1 & 1.1 we see that the calculated chi-square value is 28.59 and the table


observe that the calculated and the table value falls outside the accepted region that is the shaded

region, we can conclude that the null hypothesis is rejected and alternate is accepted hence we

can say that Quality of service has significance impact on the customer satisfaction.

It can be observed from graph 1, that percentage of customers satisfied with regards to Quality of

service of Hero Honda two wheeler are more (51%) than that of Bajaj two wheeler owners

(25%).





can say that Honesty and Integrity of Service Personnel has significance impact on the customer

satisfaction.

It can be observed from graph 2, that percentage of customers satisfied with regards to Honesty

and Integrity of Service Personnel of Hero Honda two wheeler are more (58%) than that of






can say that Delivery Time Taken for servicing the vehicles has significance impact on the

customer satisfaction.

It can be observed from graph 3, that percentage of customers satisfied with regards to Delivery

Time Taken for servicing the vehicles of Hero Honda two wheeler are more (77%) than that of


38





can say that

Availability of Spare parts of the vehicles has significance impact on the customer satisfaction.

It can be observed from graph 4, that percentage of customers satisfied with regards to

Availability of Spare parts of the vehicles of Hero Honda two wheeler are more (75%) than that

of Bajaj two wheeler owners (34%).





can say that Service charges incriminated for servicing the vehicle has significance impact on

the customer satisfaction.

It can be observed from graph 5, that percentage of customers satisfied with regards to Service

charges incriminated for servicing of the vehicle of Hero Honda two wheeler are more (10%)

than that of Bajaj two wheeler owners (6%).

39

8. CONCLUSION AND RECOMMENDATIONS :

The study which we conducted on the two wheeler automobile sector is a very important topic of automobile sector.

Two wheeler automobile sector is the backbone of the automobile sector in India. After deep research, analysis and getting information about companies as formulated that the two wheeler automobile companies achieved success in the market.

Throughout the study we found the Two wheeler manufacturer having very new and modern technology in their bikes, they have a good market share in India, many of MNC's like Honda, Yamaha ,Suzuki are also giving large competition.

Concluding the performance of the company related to two wheeler sector in India, getting their market share and growth and what are services they are providing after sales.

Hero Honda has managed to put in spectacular performance going from strength despite increase in competition; the company's sales have witnessed an uptrend, registering an average growth of 42% in the three years under review.

Hero Honda has managed to achieve this because its strong brand image and proven product quality underpinned the performance growth in recent years. Apart from the strong after sales service of the company across the spectrum of the motorcycle market helped it exploit the growing demand for 4-stroke motorcycle.

It is the competition on various aspects such as price, design technology, after sales services and even purchases offers, which provides to both buyer and seller.

.

Right now it seems that the real war is between Hero Honda and Bajaj auto. But one cannot discount the fact that there are other players, who are gaining strength day by day.

The study proposes that the attributes Quality of service, Honesty and Integrity of Service Personnel, Delivery Time, Availability of Spare parts, Service Charges incriminated for the servicing the vehicle has are significant impact on the customer satisfaction.

But customers both satisfied and not-satisfied gave highest preference to Delivery time taken for the servicing of the vehicle followed by Availability of Spare parts, Honesty and Integrity of Service Personnel, Quality of service, Service Charges. The study also suggested that both the users of two wheelers has equal preference towards the satisfaction.

40

RECOMMENDATIONS

No matter how much on organization progresses it always lack something. These are shortcoming of every company. After completing my report on customer satisfaction towards the services of tow wheeler vehicles of hero Honda and Bajaj bikes. I have some suggestions to offer. The suggestions can be proved useful for the company as they have feasibility and viability.

The recommendations are:- Force on Quality – Hero Honda does not sell the cheapest bikes in the Indian market;

instead, the company’s products command a premium as the consumers believe that they offer better value for their hard-earned money. This has been possible by the managements relentless thrust on quality. In a country where focus on quality is perceived to be less important than achieving cost leadership and volume sales, the company has been exemplary in its efforts towards maintaining the highest quality standards. Make retention a built-in part of your marketing plan. Go the extra mile, and figure out ways to utilize this list

For Bajaj motors, training all employees on how to identify, meet, and communicate regarding customer needs is essential. If you don't have a program to do this, I can help you develop one rather inexpensively. Developing programs to increase customer loyalty and decrease turnover ought to be crucial to your long-term customer retention plan. Customer service is such an important and misunderstood part of customer retention that I tend to go looking for examples of both excellent and reprehensible service.

41

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Mason, Ohio: South-Western. ISBN 0324320280.5. John, Joby (2003). Fundamentals of Customer-Focused Management: Competing

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18. Robins, Fread, “The marketing of 3G” ,vol21,no2008 (http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=236E2B6B45CF101465D540FD4401AEB9?contentType=Article&hdAction=lnkhtml&contentId=854647&history=true>) [Viewed 2/4/09]

19. Ramman, S.Raghu, “People Management issues in Indian KPOs”, 2007(http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=236E2B6B45CF101465D540FD4401AEB9?contentType=Article&hdAction=lnkhtml&contentId=1634390&history=true>) [Viewed 5/4/09]

20. Sundram, Geetha, “Marketing Mix Strategies Adopted By Selected Indian Business Outsourcers”, 2008

21. Fernandez, Fronnie, “Understanding Dynamics in an Evolving Industry: Case of Mobile VAS in India”, 2007 (http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=2086527F0757A565F9A6CBAC8800F658?contentType=Article&hdAction=lnkhtml&contentId=881588&history=true>) [Viewed 4/4/09]

22. Kumar, Kaliyamoorthy, “Influence of Demographic Variables on Marketing Strategies in the Competitive Scenario”, 2007(http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=2086527F0757A565F9A6CBAC8800F658?contentType=Article&hdAction=lnkhtml&contentId=881588&history=true>) [Viewed 4/4/09]

Journal:

The Indian Telecom Industry, IIM Calcutta, Vatsal Goyal, 2007

Investment Surge in the Indian Telecom Space, Times Global, Issue 2, 2008

A multiple-perspective model for technology assessment, vol 3, 2008

The marketing of 3G, Vol 21, no. 6, 2003

“ELECTRIC DREAMS” Business world, 11 Aug 2008 PP 78-10

Books:

Zeithaml, Valarie (2008), Service Marketing, 4th Ed. New Delhi: Tata McGraw

Hill Publishing Company Ltd.

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Internet Sites:www.bajajmotors.com www.herohondamotors.com

www.indiabike.net.com www.google.com www.indiaserf.com www.honda2wheeler.com

10. ANNEXURE:

QUESTIONNAIRE

Respected sir/madam,

I am Hrushikesh Konduskar a management student undertaking a study on the

“Customer satisfaction towards the services of the vehicles of Hero Honda and Bajaj vehicles,

Panaji-Goa”. This project is a part of my management studies. I would be thankful if you could

provide me with some of your valuable time to answer few questions.

Name: ______________________________________________________

Age: __________ Contact No: ___________________________

Gender: Male Female

Occupation: - Employed Service Professional Student Other

Monthly Income: None 10000-15000 15000-20000 Above 20000

Educational qualification: Post graduates Graduate Others

1. Which company’s two wheeler you are using?Hero Honda Bajaj

2. Were you satisfied with the way of welcoming a customer at the service centre?

Highly Dissatisfied [ ]

Dissatisfied [ ]

Average [ ]

Satisfied [ ]

Highly Satisfied [ ]

3. Were you satisfied with the honesty and integrity of service personnel?


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http://www.honda2wheeler.com/

http://www.indiaserf.com/

http://www.google.com/

http://www.indiabike.net.com/

http://www.herohondamotors.com/

http://www.bajajmotors.com/

Dissatisfied [ ]

Average [ ]

Satisfied [ ]


4. Do the spare parts of the vehicles are available regularly?

Yes No

5. Were you satisfied with the overall performance of the service personnel?


Dissatisfied [ ]

Average [ ]

Satisfied [ ]


6. Was the service done in the specified time?

Yes [ ]

No [ ]

7. Rate the satisfaction level for overall service provided?


Dissatisfied [ ]

Average [ ]

Satisfied [ ]


8. How were the service charges charged for the service of your vehicle?

Very High [ ]

High [ ]

Reasonable [ ]

Low [ ]

Very Low [ ]

9. Were you satisfied with the overall performance quality of the service personnel?


Dissatisfied [ ]

Average [ ]

45

Satisfied [ ]


Suggestions if any:

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________.

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