CHAPTER I

1.1 INTRODUCTION OF CUSTOMER SATISFACTION

Satisfaction is a persons feeling of pleasure or disappointment resulting from comparing a
products perceived performance in relation to his or her expectations. Whether the buyer is
satisfied after purchase depends on the offers performance in relation to the buyers expectations.
As the definition clear, satisfaction is a function of received performance and expectations. If the
performances fall short of expectations, the consumer is satisfied. I the performance exceed
expectations the consumer is highly satisfied or delighted.
Customer satisfaction, a term frequently used in marketing, is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals
In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a
customer satisfaction metric very useful in managing and monitoring their businesses.
It is seen as a key performance indicator within business and is often part of a Balanced
Scorecard. In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of business
strategy.
"Within organizations, customer satisfaction ratings can have powerful effects. They focus
employees on the importance of fulfilling customers expectations. Furthermore, when these
ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify
an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth
marketing, which is both free and highly effective."
Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able
do this, firms need reliable and representative measures of satisfaction.
"In researching satisfaction, firms generally ask customers whether their product or service has
met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When
customers have high expectations and the reality falls short, they will be disappointed and will
likely rate their experience as less than satisfying. For this reason, a luxury resort, for example,
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might receive a lower satisfaction rating than a budget moteleven though its facilities and
service would be deemed superior in 'absolute' terms."
The importance of customer satisfaction diminishes when a firm has increased bargaining power.
For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry
that is an oligopoly, where only a few suppliers of a certain product or service exist. As such,
many cell phone plan contracts have a lot of fine print with provisions that they would never get
away if there were, say, a hundred cell phone plan providers, because customer satisfaction
would be way too low, and customers would easily have the option of leaving for a better
contract offer.
There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms.
Organizations need to retain 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 measured at the individual level, but it is almost always reported at an
aggregate level. It can be, and often is, measured along various dimensions. A hotel, for
example, might ask customers to rate their experience with its front desk and check-in service,
with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in a
holistic sense, the hotel might ask about overall satisfaction 'with your stay.'
As research on consumption experiences grows, evidence suggests that consumers purchase
goods and services for a combination of two types of benefits: hedonic and utilitarian. Hedonic
benefits are associated with the sensory and experiential attributes of the product. Utilitarian
benefits of a product are associated with the more instrumental and functional attributes of the
product (Batra and Athola 1990).
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.
Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides
the basis for the measurement of customer satisfaction with a service by using the gap between
the customer's expectation of performance and their perceived experience of performance. This
provides the measurer with a satisfaction "gap" which is objective and quantitative in nature.
Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of
combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures
(perception and expectation of performance) into a single measurement of performance
according to expectation.
The usual measures of customer satisfaction involve a survey with a set of statements using
a Likert Technique or scale. The customer is asked to evaluate each statement and in term of
their perception and expectation of performance of the organization being measured. Their
satisfaction is generally measured on a five-point scale.

"Customer satisfaction data can also be collected on a 10-point scale."

"Regardless of the scale used, the objective is to measure customers perceived satisfaction with
their experience of a firms offerings." It is essential for firms to effectively manage customer
satisfaction. To be able do this, we need accurate measurement of satisfaction.
Good quality measures need to have high satisfaction loadings, good reliability, and low error
variances. In an empirical study comparing commonly used satisfaction measures it was found
that two multi-item semantic differential scales performed best across both hedonic and
utilitarian service consumption contexts. According to studies by Wirtz & Lee (2003), they
identified a six-item 7-point semantic differential scale (e.g., Oliver and Swan 1983), which is a
six-item 7-point bipolar scale, that consistently performed best across both hedonic and
utilitarian services. It loaded most highly on satisfaction, had the highest item reliability, and had
by far the lowest error variance across both studies. In the study, the six items asked respondents
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evaluation of their most recent experience with ATM services and ice cream restaurant, along
seven points within these six items: pleased me to displeased me, contented with to disgusted
with, very satisfied with to very dissatisfied with, did a good job for me to did a poor job for
me, wise choice to poor choice and happy with to unhappy with.
A semantic differential (4 items) scale (e.g., Eroglu and Machleit 1990), which is a four-item 7point bipolar scale, was the second best performing measure, which was again consistent across
both contexts. In the study, respondents were asked to evaluate their experience with both
products,

along

seven

points

within

these

four

items:

satisfied to dissatisfied,

favorable to unfavorable, pleasant to unpleasant and I like it very much to I didnt like it at
all.
The third best scale was single-item percentage measure, a one-item 7-point bipolar scale (e.g.,
Westbrook 1980). Again, the respondents were asked to evaluate their experience on both ATM
services and ice cream restaurants, along seven points within delighted to terrible.
It seems that dependent on a trade-off between length of the questionnaire and quality of
satisfaction measure, these scales seem to be good options for measuring customer satisfaction in
academic and applied studies research alike. All other measures tested consistently performed
worse than the top three measures, and/or their performance varied significantly across the two
service contexts in their study. These results suggest that more careful pretesting would be
prudent should these measures be used.
Quality
Quality assumes that if we determine and adopt a set of standards or measurements for our
product or service, and if we meet these standards, our customers should be satisfied. However,
meeting our "quality standards does not necessarily insure that our customer will declare they
are satisfied or even agree that we produce a "quality" product, or deliver a quality service.
Service
Good service is often viewed as being nice to the customer. This takes the form of being
accommodating, never saying no, promising anything they ask for and always being courteous.
Our attempts to please often create customer expectations that exceed our competency or
capacity to deliver. When customers have different expectations than what we deliver (or can
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deliver), we are not providing good service, we are, in fact, setting the stage for dissatisfaction.
In a similar manner, when we provide a product or service at a loss, we produce dissatisfaction
for our stakeholders and ultimately cannot sustain our viability.
Our conventional understanding assumes that if we provide enough quality and enough service,
satisfaction will result. Its not true.
Satisfaction
Satisfaction is a distinct and separate issue. It is the customer's entire experience with us that
determines his or her declaration of satisfaction.
A customer is satisfied only if and when they say they are satisfied. Satisfaction is based upon
the customer's perception of the experience. This perception is his/her interpretation of the value
received played back against expectations. This declaration does not require any objective
evidence. It can be a declaration made with no reason. Our interactions with the customer, the
promises made to the customer in these conversations, and the customer's expectations generated
in these conversations, and the actions we take that are consistent with those expectations
combine to produce a declaration of satisfaction.
Therefore it is essential we manage these aspects of our business in a proactive manner to excel
at Customer Satisfaction.

FEATURES OF CUSTOMER SATISFACTION

The Performance of Features (Attributes)
In an all-too-familiar research scenario, much of satisfaction research is conducted according to
the following format: A list of key product or service features is generated which, hopefully,
contains an exhaustive set of factors thought to cause satisfaction and dissatisfaction.
In a fairly direct manner, consumers are asked to retrospectively rate the product or service on
the degree to which each of the features was delivered. At the same time, the consumer may be
asked to rate the product on an overall basis or on satisfaction. An assumption of this technique
is that those features which are more aligned with the overall score across consumers (high
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feature scores corresponding to satisfaction; low feature scores to dissatisfaction) are those which
have the greatest impact.
Despite the ubiquity of this method, problems are inherent in its implementation. One problem is
that the list of features cannot be exhaustive for all consumers. A second problem arises from the
disparate goals of consumers (need fulfilment) versus those of designers, engineers, and
manufacturing personnel. In part, this problem can be addressed by using the proper level of
feature abstraction when preparing the attribute list (to be discussed). Another 10 problem,
discussed next, is that of the relevance of features at different stages of decision making.
Satisfaction Drivers vs. Choice Criteria
In pursuing the reasons behind the consumer's satisfaction response, it should be borne in mind
that the researcher's goal is to determine the correct feature list of satisfaction drivers, as opposed
to product or service choice criteria. A common mistake is that of assuming the features
consumers use in selecting a product from a list of alternatives are identical to the set of features
that play into satisfaction and dissatisfaction judgments. Although many of the choice
features will also be those used in forming satisfaction judgments, the assumption that the choice
feature set and the satisfaction set are identical or even similar has been shown to be incorrect.
Consider summer vacation travel. Some features, such as the availability of travel and lodging,
are used by the consumer only in the choice phase of decision-making. The combined cost of the
travel package could be an example. A consumer may shop for the lowest total monetary outlay.
Once found, this cost ceases to be a factor in satisfaction with the trip, which may be months
away.
As an example of a "pure" satisfaction driver, certain destination amenities such as air
conditioning would provide an example of this situation. Brownouts and equipment failures
could not have been predicted previously and any hotel stay in the destination locale is randomly
subject to this effect.
Other features are examples of mixed or dual influence, affecting both choice and satisfaction to
the same degree. Prevailing weather patterns in the chosen destination 11 would be an example
of this phenomenon. Although the vacation planner has no control over the actual weather
6

encountered, destinations are chosen for their expected weather; Mother Nature is fickle in this
regard.
Thus, for all these reasons, researchers are advised to determine satisfiers and dissatisfies
independently of choice determinants. Additionally, the prior discussion illustrates why a
satisfaction measure is preferred to one of attitude or quality if consumer satisfaction is, in fact,
the goal of the firm. This is so because both attitude and quality judgments are used in choice
and thus may give a distorted picture of the features most strongly related to satisfaction.
Levels of Feature Abstraction
An additional concern early in the satisfaction measurement process is determination of how
specific the feature list should be. This issue addresses whether the list is to contain detailed
"micro" dimensions of a product or micro - behaviors of a service provider, or if it is to contain
more general dimensions of higher abstraction. As noted, consumers may think at higher levels
of consumption goals whereas management must think in terms of the details of product or
service design. It is also the case that many intricacies of product engineering are not understood
by the lay consumer.
An obvious drawback to the micro-dimension approach is that the list of feature
experiences presented to consumers becomes overly long despite the fact that it can contain
maximum diagnostic value value deriving from the fact that specific details of a (dis)satisfying
situation will be singled out for study. In an alternative approach operating at a higher level of
abstraction, the researcher can simply have consumers rate the consumable on, for example,
quality, value and need satisfaction (met my needs). Note, however, that this simple list of three
12 overarching criteria of the consumption experience does not provide design details required
by management. This leaves management with a bare minimum of real actionable conclusions.
The answer to the level of abstraction problem can be found in two areas. The first relates to
progress made in determining key features; that is, whether management is in the early
exploratory phases of discovery or whether analysis is closer to identifying critical problem
dimensions. Greater specificity should be more appropriate at the exploratory study phases. The
second area reflects the nature of data collection. Greater specificity requires longer lists of
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features. If issues of questionnaire length, respondent apathy or fatigue, and inadequate

incentives are in play, then shorter, more abstract feature lists are required. The lack of
diagnosticity will have to be compensated for in other ways, such as the inclusion of open-ended
sections of the survey.
Scaling Feature Performance
In this section, it is assumed that an optimal for the purpose list of critical features has been
generated. This list can be constructed in many ways including intuition (not recommended)
and from inputs provided internally within the firm, from channel middlemen, and from
consumers. The latter source can be tapped in many ways including focus groups,
correspondence with the firm including complaining data, and from various forms of survey
research. Readers are directed to other works within this volume of readings.
PROCESS OF CUSTOMER SATISFACTION
Customer satisfaction, a term frequently used in marketing, is a measure of how products and
services supplied by a company to the customer expectation. There are Five Steps of customer
satisfaction, are as follows.
Five Steps
Step 1 -

Understanding Customer Expectations

Step 2 -

Promises to Customers

Step 3 -

Execution

Step 4 -

Ongoing Dialog with a Customer

Step 5 -

Customer Satisfaction Surveys

Step 1 Understanding Customer Expectations

How customers wants and needs, customers standards and expectations, are incorporated
into our promises to customers to not only make a sale, but achieve high Customer Satisfaction
(repetitive business)?
We must know what our customers expect from us. We must work with our customers to
precisely learn their expectations
Customer Expectations differ by region by country
Step 2- Promises to Customers
Set promises that can be kept
Aim to exceed expectations rather than to meet them
Delight customers by surprising them (Surprise is something not promised, yet delivered)
Step 3 Execution
Products and Services are provided to customers
Customers had certain expectations before products/services were delivered
Depending if these expectations were met, not met, or exceeded customer experiences certain
level of Customer Satisfaction
Occasionally there are problems with products/services provided
A problem can be fixed during the initial call or a visit (first contact resolution)
Tickets are worked on. Customer problems are eventually solved
How ongoing work towards better Customer Satisfaction is communicated

Step 4 - Ongoing Dialog with a Customer

Executive meetings
User Group meetings
Other meetings
Step 5 - Customer Satisfaction Surveys
Customer Satisfaction Surveys
Event Driven Surveys
Internal Indicators of Customer Satisfaction
Tickets Resolved Within Objectives
Resolve Time
Response Time
How Survey results are communicated to organization?
Corrective actions?
Pro-active actions?
Advantages of Customer Satisfaction Surveys
Up-to-date feedback: Gather current customer feedback on various aspects of your company.
You can stay on top of customer trends through regularly scheduled online surveys or email
surveys, and receive instant customer feedback. It is always useful to acquire insight into how
your customers are currently reacting to all aspects of your business.
Benchmark results: You can administer the same survey every so often to customers to gain
continued insight into your customers. Surveys can have the same questions, which will allow
you to compare data over time and benchmark survey data across previous years to determine if
any changes need to be made.

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Show that you care: Customers like to be asked for their feedback. It gives the customer the
perception that your company values them; is committed to keeping them as a long-term
customer; and bases business decisions on their feedback.

CONSUMER VALUE
Our premise is that buyers will buy from the firm they perceive to offer the highest
consumer delivered value. Consumer delivered value is the difference between total consumer
value and total consumer cost. Total consumer value is the bundle of benefit customers costs
consumers expect to incur in evaluating obtaining and using the product or service.

IMPORTANCE OF CONSUMER SATISFACTION

The relevance and importance of understanding consumer satisfaction is rotted in the modern
marketing concept in order to operational this concept, management attempts to solve some
consumption problems of consumers However, no business possibly help consumer solve their
consumption problems unless he understand them and unless he make an attempt to comprehend
the buying process and the factors influencing it .Consumer satisfaction is dynamic.

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1.2 OBJECTIVES OF THE STUDY:

Primary objectives:

A study on Customer satisfactions with special reference with Cars India Maruti Suzuki

Secondary objectives:

To know the existing customer preference in buying four wheelers.

To identify the satisfaction level towards the buying experience in Cars India Maruti
Suzuki, Chennai.

To analyse factors influencing in the purchase decision customers for Four Wheelers in
Cars India Maruti Suzuki, Chennai.

To offer suggestions to the organization based on the findings of the study.

To study about various models offered by Cars India Maruti Suzuki.

To find out the relationship between the customer satisfaction level and their
demographics.

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1.3 NEED FOR THE STUDY:

Customers expectations change accordingly with time. Customers expectations should be
studied with great efforts, so that marketers can design the product based on the need of the
customers.
If the customers need were met then the customer may turn as an asset to the company because
they become opinion leader for others. So that the company can increase its market share.
Customer expectation is mainly based on the following attributes
The product or service
The price
The place
Promotion
In this new era of business world, Customers are the real owners. So, each and every
expectations of consumers have to be studied.

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1.4 SCOPE OF THE STUDY:

With the introduction of liberalization polices in India, and with the advent of MNCS which are
getting an entry into the automobile sector, the competition for garnering a greater market share
in the two wheeler industry is getting hotter.
In this scenario, the organizations which are making the consumers feel delighted (rather than
making them feel satisfied) are going to stand apart. Hence, a qualitative study to find out the
consumer preference towards maruti Suzuki Two Wheeler provides on various factors has
assumed great significance.

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1.5 LIMITATIONS OF THE STUDY

This study is confined to the respondents of chennai only. Therefore condition derived
would be fully valid only for this union.

The scope of the study has to be restricted to primary data, which were supplied by the
respondents.

There may be personal bias of the respondent, which affects the result of the study.

The views and the preference of the people changes from time to time, hence the result of
the project may not be applicable in long run.

Sample were selected using convenience sampling method.

Sample size was a drawback.

Financial factor was a drawback.

Some respondent are reluctant to give information.

Due to time constraints, collection of data is limited.

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1.6. INDUSTRY PROFILE

AUTOMOBILE SECTOR IN INDIA
The automotive industry in India is one of the larger markets in the world and had previously
been one of the fastest growing globally, but is now seeing flat or negative growth rates. India's
passenger car and commercial vehicle manufacturing industry is the sixth largest in the world,
with an annual production of more than 3.9 million units in 2013. According to recent reports,
India overtook Brazil and became the sixth largest passenger vehicle producer in the world
(beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico,
Russia, Spain, France, and Brazil), grew 16 to 18 per cent to sell around three million units in the
course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars,
behind Japan, South Korea, and Thailand. In 2012, India beat Thailand to become Asia's third
largest exporter of passenger cars. As of 2012, India is home to 40 million passenger vehicles.
More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of
33.9%), making the country the second fastest growing automobile market in the world in that
year. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are
projected to increase to 4 million by 2015, no longer 5 million as previously projected.
The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is
being deemed as one of the world's fastest growing passenger car markets and second largest two
wheeler manufacturer. It is also home for the largest motor cycle manufacturer and the fifth
largest commercial vehicle manufacturer. India is expected to become the third largest
automobile market in the world. Ford is looking at India as a major export hub, as per Mr.
Joginder Singh, President and Managing Director, Ford India. By 2020, the luxury car segment is
estimated to be around three per cent of the overall passenger car market in India. So, there is
huge opportunity for growth. India is going to be one of the biggest markets for us, worldwide,
according to Tomas Ernberg, Managing Director, and Volvo Auto India. India is the largest base
to export compact cars to Europe. Moreover, hybrid and electronic vehicles are new
developments on the automobile canvas and India is one of the key markets for them. Global and
Indian manufacturers are focusing their efforts to develop innovative products, technologies and
supply chains.
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Key Statistics
The amount of cumulative foreign direct investment (FDI) inflow into the automobile industry
during April 2000 to November 2012 was worth US$ 7,518 million, amounting to 4 per cent of
the total FDI inflows (in terms of US$), as per data published by Department of Industrial Policy
and Promotion (DIPP), Ministry of Commerce.
India's scooter and motorcycle manufacturers have registered 4 per cent growth during AprilNovember 2012, according to the recent data released by the Society of Indian Automobile
Manufacturers (SIAM). Moreover, the passenger vehicles segment grew at 9.71 per cent during
April-June 2012, while overall commercial vehicle segment registered an expansion of 6.06 per
cent year-on-year (y-o-y).
The Indian small and light commercial vehicle segment is expected to more than double by
2015-16 and to grow at 18.5 per cent compound annual growth rate (CAGR) for the next five
years, according to a report titled, 'Strategic Assessment of Small and Light Commercial
Vehicles Market in India' by Frost & Sullivan.

Major Developments & Investments

Volvo Group plans to invest Rs 3,800 crore (US$ 710.28 million) in India over the next few
years. Of this, Rs 1,800 crore (US$ 336.45 million) would be invested in its joint venture (JV)
with Eicher Motors. Volvo also aims to export about 30 per cent of the capacity at its Indian
engine plant it plans to open in Pithampur, Madhya Pradesh in 2013, as it looks to leverage costs
from India operations
Honda Car India, the wholly-owned subsidiary of Honda Motor Co, plans to set up a greenfield
diesel engine factory at its second industrial location in Rajasthan.Jaguar Land Rover (JLR) will
incur capital expenditure worth US$ 3.26 billion per year over the medium term mainly for
product development, according to Crisil. In addition, Tata Motors has started assembling the
Jaguar XF at its new facility in Chakan near Pune, Maharashtra

17

The research and development (R&D) team of Fiat India will assist Chrysler to design and
develop the smallest Jeep, to be launched globally by mid-2014. The Italian company has also
commissioned an R&D set-up, Chrysler India Automotive Pvt Ltd, in CHENNAI
Hero MotoCorp has started construction of its fourth manufacturing plant and a new Global Parts
Centre (GPC) at Neemrana, Rajasthan. The project will attract an investment of Rs 550 crore
(US$ 102.80 million) and both facilities are expected to be operational by FY 2013-14
Mahindra & Mahindra (M&M) plans to invest US$ 900 million over the next four years in
SsangYong Motor for developing three new vehicles and six engines. The investment would be
from internal accruals, fresh equity and debt, as per Mr Pawan Goenka, President (Automotive &
Farm Equipment sectors), M&M. The firm plans to buy Navistar's 49 per cent stake in the truck
and engine making joint ventures (JV) - Mahindra Navistar Automotives Ltd and Mahindra
Navistar Engines Pvt Ltd - for about US$ 31.95 million
Luxury carmakers like BMW, Audi are planning more 'Made in India' products to increase the
number of offerings in the sub Rs 2.5 million (US$ 46,729) category to expand market. The
luxury carmakers are planning to tap the younger customers with lower price points
VE Commercial Vehicles Ltd (VECV), a joint venture between Sweden's Volvo Group and
homegrown Eicher Motors, will invest Rs 1,200 crore (US$ 224.30 million) by 2014 for
expanding production capacity and developing new products.
Luxury car brands in India have registered a growth of 12.5 per cent during January-November
2012 period. The luxury car market in India is expected to reach 150,000 units by 2020, as per
Mr Tomas Ernberg, Managing Director (MD), Volvo Auto India

Government Initiatives
The Government of India (GoI) plans to introduce fuel-efficiency ratings for automobiles to
encourage sale of cars that consume less petrol or diesel, as per Mr. Veerappa Moily, Union
Minister for Petroleum and Natural Gas.
The GoI plans to push the supply of vehicles powered by electricity over the next eight years. It
is expected that there will be a demand of 5-7 million electricity-operated vehicles by 2020.

18

The GoI allows 100 per cent foreign direct investment (FDI) in the automotive industry through
automatic route.
The Automotive Mission Plan (AMP) 2006-2016 aims at doubling the contribution of
automotive sector in gross domestic product (GDP) by taking the turnover to US$ 145 billion in
2016 with special emphasis on export of small cars, multi-utility vehicles (MUVs), two & three
wheelers and auto components.
Road Ahead
The rapid improvement in infrastructure, huge domestic market, increasing purchasing power,
established financial market and stable corporate governance framework have made the country
a favorable destination for investment by global majors in the auto industry, as per Automotive
Mission Plan (AMP) (2006-16).
Additionally, the introduction of alternative fuels like hydrogen and bio fuels needs to be
promoted to ensure sustainability of the industry over the long term.
The vision of AMP 2006-2016 aims India "to emerge as the destination of choice in the world
for design and manufacture of automobiles and auto components with output reaching a level of
US$ 145 billion accounting for more than 10 per cent of the GDP and providing additional
employment to 25 million people by 2016."
In addition, the US-based car major, Ford aims to make India its export hub and plans to sell its
products in more than 50 countries over a period of time. The company has committed a total
investment of US$ 2 billion in India so far (November 2012).
The luxury car market of India is set for growth over the medium and long term, according to Mr
Philipp Von Sahr, President, BMW Group India. The market is about 30,000 cars a year and is
rising steadily, added Mr Sahr.
Exchange Rate Used: INR 1 = US$ 0.01870 as on January 22, 2013

19

HISTORY OF FOUR WHEELERS

Maruti Suzuki India Limited (MSIL), formerly known as Maruti Udyog Limited, a
subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company,
accounting for over 50 per cent of the domestic car market. Maruti Udyog Limited was
incorporated in 1981 under the provisions of Indian Companies Act 1956 and the government of
India selected Suzuki Motor Corporation as the joint venture partner for the company. In 1982 a
JV was signed between Government of India and Suzuki Motor Corporation.It was in 1983 that
the Indias first affordable car, Maruti 800, a 796 cc hatch back was launched as the company
went into production in a record time of 13 month.
More than half the number of cars sold in India wear a Maruti Suzuki badge. They are a
subsidiary of Suzuki Motor Corporation Japan. The company offer full range of cars- from entry
level Maruti 800 & Alto to stylish hatchback Ritz, A star, Swift, Wagon R, Estillo and sedans
DZire, SX4 and Sports Utility vehicle Grand Vitara.Since inception, the company has produced
and sold over 7.5 million vehicles in India and exported over 500,000 units to Europe and other
countries.
They were born as a government company, with Suzuki as a minor partner, to make a people's
car for middle class India. Over the years, its product range has widened, ownership has changed
hands and the customer has evolved. What remains unchanged, then and now, is their mission to
motorise India. MSILs parent company, Suzuki Motor Corporation, has been a global leader in
mini and compact cars for three decades. Suzuki's technical superiority lies in its ability to pack
power and performance into a compact, lightweight engine that is clean and fuel efficient. The
same characteristics make their cars extremely relevant to Indian customers and Indian
conditions. Product quality, safety and cost consciousness are embedded into their manufacturing
process, which they have inherited from their parent company.
Right from inception, Maruti brought to India, a very simple yet powerful Japanese philosophy
'smaller, fewer, lighter, shorter and neater From the Japanese work culture they imbibed simple
practices like an open office, a common uniform and common canteen for everyone from the
Managing Director to the workman, daily morning exercise, and quality circle teams.

20

Maruti Suzuki exports entry-level models across the globe to over 100 countries and the focus
has been to identify new markets. Some important markets include Latin America, Africa and
South East Asia. Interestingly with a brand new offering A-star, Maruti Suzuki is ready to take
on European markets. Maruti Suzuki sold 53,024 units during 2007-08. This is the highest ever
export volume in a year for the company, and marked a growth of 35 per cent over the previous
year.Maruti Suzuki has exported over 552,000 units cumulatively with about 280,000 units to
Europe and Israel.
Maruti Suzuki has two state-of-the-art manufacturing facilities in India. The first facility is at
Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in
North India. The Gurgaon facility - Maruti Suzuki's facility in Gurgaon houses three fully
integrated plants. While the three plants have a total installed capacity of 350,000 cars per year,
several productivity improvements or shop floor Kaizens over the years have enabled the
company to manufacture nearly 700,000 cars/ annum at the Gurgaon facilities.
The Manesar facility - Its Manesar facility has been made to suit Suzuki Motor Corporation
(SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions. The plant was inaugurated
in February 2007. At present the plant rolls out World Strategic Models Swift , A-star & SX4
and DZire. The plant has several in-built systems and mechanisms.
Diesel Engine Plant- Suzuki Powertrain India Limited - Suzuki Powertrain India Limited the
diesel engine plant at Manesar is SMC's & Maruti's first and perhaps the only plant designed to
produce world class diesel engine and transmissions for cars. The plant is under a joint venture
company, called Suzuki Powertrain India Limited (SPIL) in which SMC holds 70 per cent equity
the rest is held by MSIL. This facility has an initial capacity to manufacture 100,000 diesel
engines a year. This will be scaled up to 300,000 engines/annum by 2010. In 2012 Senior
management members were injured as workers resort to violence at Maruti Suzukis Manesar
plant.
Product range of the company includes:
It offer full range of cars- from entry level Maruti 800 & Alto to stylish hatchback Ritz, A star,
Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.
21

Maruti Alto 800

Omni

Gypsy

Zen Estilo

Wagon R

Versa

A- Star

Ritz

SX4

Dzire

Grand Vitara

Ertiga

Celerio

Milestones :

2014: Maruti Suzuki announces global debut of Celerio with revolutionary Auto Gear
Shift

2013: Maruti Suzuki introduces stylish Stingray

2012 :India's favourite car Maruti Suzuki Alto crosses the 20 Lakh sales mark

2011: Maruti Suzuki India unveiled its much awaited sportier and stylish car, the all new
'Swift'.

2010: On March 15, Maruti Suzuki India rolled out its 1 Crore (ten millionth) car. The
historic 1 Crore car, a Metallic Breeze Blue coloured Wagon VXi (Chassis No 243899)
rolled out from the Company's Gurgaon plant.

2010: Maruti Suzuki has been ranked India's most Trusted Brand in Automobile Sector by
India's leading Business newspaper The Economic Times.

22

2009 - MSIL adopts voluntary fuel disclosure. First shipment of A-star leaves Mudra Port-Jan
10.A-star bags, Zig wheels car of the year Award A-star rated best small car of the year-auto
car - UTVi.
2008 - World Premiere of concept A-star at 9th Auto Expo, New Delhi.
2007 - Swift diesel launched. New car plant and the diesel engine facility commences operations
during 2006-07 at Manesar, Haryana. SX4-Luxury Sedan Launched with the tag line Men are
black. Maruti launches Grand Vitara.
2006-J.D.Power Survey award for the sixth year. MSIL has changed its EMS from ISO
14001:1996 version to ISO 14001:2004 version w.e.f.1st July
2005- MSIL was re-certified in 2005 as per ISO 14001:2004 standards.
2004 - A new esteem launched second successful facelift by Maruti engineers.
2003 - Maruti gets listed on BSE and NSE. IPO (issue oversubscribed 11.2 times) New Zen
launched-first facelift by Maruti engineers.
2002 - Divestment Suzuki Motor Corporation (SMC) acquires majority stake in MUL. Maruti
Finance & Insurance launched.
2001 - Turn around with profits Rs104.5 crore. Four new business - True value, Insurance,
Finance. Maruti Versa launched. Maruti True Value launched.
2000 - Maruti alto launched. First Car Company in India to launch call center. IDTR launched
jointly with the Delhi government to promote safe driving habits.

23

During 2009-10, the company, its products and services received reputed awards and accolades
Achievements/ recognition:

The company takes great pride in sharing that customers have rated Maruti Suzuki first
once again in Customer Satisfaction Survey conducted by independent body, J.D.Power
Asia Pacific. It is 9th time in a row.

Maruti Suzuki wins 'Golden Peacock Eco-Innovation Award'

Maruti Suzuki Ranks Highest in Automotive Customer Satisfaction in India for Ninth
Consecutive Year.

Maruti Suzuki becomes the first Indian car company to export half a million cars

Other Accolades
instituted by independent expert groups, media houses and research agencies.
These Include

Rated as No. 1 in J D Power Sales Satisfaction Index

Hatchback of the year - Ritz by Auto car

Car of the year - Ritz by Business Motoring

Manufacturer of the year by CNBC Overdrive

Ranked third amongst global car companies in the World's Most Reputed Company
Survey 2009 National Award for Excellence in Corporate Governance by ICSI

.HISTORY OF MARUTI SUZUKI MOTOR LIMITED

COMPETITORS

1. Mahindra
2. Hindustan motors
24

KEY EXECUTIVES

S.No

Name

Designation

R C Bhargava

Chairman

Kenichi Ayukawa

Managing Director

12

S Ravi Aiyar

Company Secretary

Osamu Suzuki

Non-Executive Director

Toshihiro Suzuki

Non-Executive Director

11

Kinji Saito

Non-Executive Director

Toshiaki Hasuike

Joint Managing Director

Shigetoshi Torii

Executive Director - Production

Pallavi Shroff

Non Executive Independent Director

Davinder Singh Brar

Non Executive Independent Director

Amal Ganguli

Non Executive Independent Director

10

Rajinder Pal Singh

Non Executive Independent Director

25

1.7. COMPANY PROFILE

If you have travelled in India, taken a route to anywhere around this great nation, chances are
youve driven with us. For over three decades now, Maruti Suzuki cars have been going places.
We started out in 1982 in Gurgaon, Haryana. Little did the then quiet suburb of New Delhi
know, that it was going to become the epicentre of the automobile revolution in India. The year
marked the birth of the Maruti Suzuki factory. India turned out 40,000 cars every year. The new
Maruti Suzuki 800 hit the streets to begin a whole new chapter in the Indian automobile industry.

We set out with an obsession for customer delight, one that was unheard in the corridors of
automobile manufacturers then. It was about a commitment to create value through innovation,
quality, creativity, partnerships, openness and learning. It created a road that was going to lead
the world in to a whole new direction, laid out by Maruti Suzuki.
Today, Maruti Suzuki alone makes 1.5 million family cars every year. Thats one car every 12
seconds. We drove up head and shoulders above every major global auto company. Yet, our
story was not just about making a mark. It was about revolutionary cars that delivered great
performance, efficiency and environment friendliness with low cost of ownership. Thats what
we call true value. We built our story with a belief in small cars for a big future.
Our story encouraged millions of Indians to make driving a way of life. India stepped up with
our vision to take on the fast lane. A comradeship had begun. Something incredible had begun.
So, what drives us? Millions of Indians whove put their faith in us. A team of over 12500
dedicated and passionate professionals that turned out 14 cars with over 150 variants. The drive
is backed up by a nationwide service network spanning over 1454 cities and towns and a sales
network that spreads across 1097 cities, 2 state of art factories, a diesel engine plant with a
capacity upped to turn out 7 lakh diesel cars a year and, a commitment to road safety to make
Indian roads safer. Finally, our inspiration comes from one place Indias hopes, dreams and
aspirations. The Maruti Suzuki journey has been nothing less than spectacular. But to be honest,
weve only just begun.

26

2. REVIEW OF LITERATURE
CUSTOMER SATISFACTION:

Custom satisfaction is the determination of the degree to which a companys product or

services meet the requirements of the end user.

Customer satisfaction is the customers evaluation of a product or a service in terms

of whether that product or services has met their needs and expectations.

Customers expectations are continuously increasing. Brand loyalty is a thing of past.

Customers seek out products and producers that are best able to satisfy their requirement.

It is not enough if the product meet customer expectations like the behavior or attitude of
the person. Customer satisfaction is the combination of both technical features and
human behavioral aspects.

Customer satisfaction can be represented as follow;

Performance feature address the issues on conformance to the standards and variability.

Behavior aspects deal with the following components of services;

Responsiveness Readiness of employee to provide service

Courtesy Respect, friendliness of contact personnel.

Complete Resolution Listening to customers.

Credibility Taking ownership in resolving the complaints.

RESEARCH REVIEW:
A review of the existing literature indicates a wide variance in the definitions of satisfaction. The
lack of a consensus definition limits the contribution of consumer satisfaction research. Without
a uniform definition of satisfaction, researchers are unable to select an appropriate definition for
a given context; develop valid measures of satisfaction; and/or compare and interpret empirical
results. Consumer satisfaction researchers have contended that these problems are pervasive and
important (Gardial, Clemons, Woodruff, Schumann, and Burns 1994; Peterson and Wilson 1992;
Yi 1990). This research will:

27

Suggest a definitional framework of consumer satisfaction based on commonalities in the

literature and the views of consumers.
The Literature and Consumer Views of Satisfaction - While the literature contains significant
differences in the definition of satisfaction, all the definitions share some common elements.
When examined as a whole, three general components can be identified: 1) consumer satisfaction
is a response (emotional or cognitive); 2) the response pertains to a particular focus
(expectations, product, consumption experience, etc.); and 3) the response occurs at a particular
time (after consumption, after choice, based on accumulated experience, etc0). Consumer
responses followed a general pattern similar to the literature. Satisfaction was comprised of three
basic components, a response pertaining to a particular focus determined at a particular time.
Response: Type and Intensity - Consumer satisfaction has been typically conceptualized as either
an emotional or cognitive response. More recent satisfaction definitions concede an emotional
response. The emotional basis for satisfaction is confirmed by the consumer responses. 77.3% of
group interview responses specifically used affective responses to describe satisfaction and 64%
of the personal interviewees actually changed the question term "satisfaction" to more affective
terms. Focus of the Response - The focus identifies the object of a consumers satisfaction and
usually entails comparing performance to some standard. This standard can vary from very
specific to more general standards. There are often multiple foci to which these various standards
are directed including the product, consumption, purchase decision, salesperson, or
store/acquisition. The determination of an appropriate focus for satisfaction varies from context
to context. However, without a clear focus, any definition of satisfaction would have little
meaning since interpretation of the construct would vary from person to person (chameleon
effects). Timing of the Response - It is generally accepted that consumer satisfaction is a post
purchase phenomenon, yet a number of subtle differences exist in this perspective. The purchase
decision may be evaluated after choice, but prior to the actual purchase of the product. Consumer
satisfaction may occur prior to choice or even in the absence of purchase or choice (e.g.,
dissatisfied with out-of-town supermarkets, which were never patronized, because they caused a
local store to close). The consumer responses reinforced this varied timing aspect of satisfaction.
In addition, the consumers discussed the duration of satisfaction, which refers to how long a
particular satisfaction response lasts.

28

Dissatisfaction - The literature has taken two approaches to conceptualizing and operationalizing
the dissatisfaction construct. Consumer dissatisfaction is portrayed as the bipolar opposite of
satisfaction; or consumer satisfaction and dissatisfaction are viewed as two different dimensions.
Since the literature does not provide a clear conceptualization of dissatisfaction, we turned to
consumer perceptions. Consumers suggest that dissatisfaction is still comprised of the three
components of the definitional framework: affective response; focus; and timing. However, the
consumer data did not help resolve the dimensionality issue. We speculate that the apparent
dimensionality of satisfaction might be understood by examining the focus of satisfaction and
dissatisfaction. Consumers were sometimes satisfied with one aspect of the choice/consumption
experience, but dissatisfied with another aspect. In this case, satisfaction and dissatisfaction can
be viewed as different dimensions.
Based on the insights provided by the literature review and interviews, we propose a framework
for developing context-specific definitions of consumer satisfaction. This framework is not a
generic definition of satisfaction. As noted above, innumerable contextual variables will affect
how satisfaction is viewed. As such, any generic definition of satisfaction will be subject to
chameleon effects. Rather than presenting a generic definition of satisfaction, we identify the
conceptual domain of satisfaction, delineate specific components necessary for any meaningful
definition of satisfaction, and outline a process for developing context-specific definitions that
can be compared across studies.
Despite extensive research in the years since Cardozos (1965) classic article, researchers have
yet to develop a consensual definition of consumer satisfaction. Oliver (1997) addresses this
definitional issue by paraphrasing the emotion literature, noting that "everyone knows what
[satisfaction] is until asked to give a definition. Then it seems, nobody knows" (p. 13). Based on
the perception that satisfaction has been defined, most research focuses on testing models of
consumer satisfaction (e.g., Mano and Oliver 1993; Oliver 1993; Oliver and DeSarbo 1988;
Spreng, MacKenzie, and Olshavsky 1996; Tse and Wilton 1988) while definitional
considerations have received little attention. As a result, the literature is replete with different
conceptual and operational definitions of consumer satisfaction (see Table 1). As Peterson and
Wilson (1992) suggest, "Studies of customer satisfaction are perhaps best characterized by their
lack of definitional and methodological standardization" (p. 62). A basic definitional
29

inconsistency is evident by the debate of whether satisfaction is a process or an outcome (Yi

1990). More precisely, consumer satisfaction definitions have either emphasized an evaluation
process (e.g., Fornell 1992; Hunt 1977; Oliver 1981) or a response to an evaluation process
(e.g., Halstead, Hartman, and Schmidt 1994; Howard and Sheth 1969; Oliver 1997, 1981;
Tse and Wilton 1988; Westbrook and Reilly 1983). From a general definition perspective,
process definitions are problematic in that there is little consistency in the satisfaction process.
From an operational perspective, process definitions are plagued by antecedent constructs
included in the conceptual definition; thus, there is an overlap between the domains of the
determinative process constructs and the consumer satisfaction construct. Most definitions have
favored the notion of consumer satisfaction as a response to an evaluation process. Specifically,
there is an overriding theme of consumer satisfaction as a summary concept (i.e., a fulfillment
response (Oliver 1997); affective response (Halstead, Hartman, and Schmidt 1994); overall
evaluation (Fornell 1992); psychological state (Howard and Sheth 1969); global evaluative
judgment (Westbrook 1987); summary attribute phenomenon (Oliver 1992); or evaluative
response (Day 1984)). However, there is disagreement concerning the nature of this summary
concept. Researchers portray consumer satisfaction as either a cognitive response (e.g., Bolton
and Drew 1991; Howard and Sheth 1969; Tse and Wilton 1988) or an affective response
(e.g., Cadotte, Woodruff, and Jenkins 1987; Halstead, Hartman, and Schmidt 1994;
Westbrook and Reilly 1983). Furthermore, operational definitions may include a behavioral
dimension of satisfaction (e.g., "I would recommend the school to students interested in a
business career." (Halstead, Hartman, and Schmidt 1994)), although conceptual definitions are
void of a behavioral orientation. A final discrepancy occurs in the terms used as a designation for
this concept. Researchers have used discrepant terms to mean satisfaction as determined by the
final user: consumer satisfaction (e.g., Cronin and Taylor 1992; Oliver 1993; Spreng,
MacKenzie, and Olshavsky 1996; Tse and Wilton 1988; Westbrook 1980), customer
satisfaction (e.g., Churchill and Surprenant 1982; Fornell 1992; Halstead, Hartman, and
Schmidt 1994; Smith, Bolton, and Wagner 1999), or simply, satisfaction (e.g., Kourilsky and
Murray 1981; Mittal, Kumar, and Tsiros 1999; Oliver 1992; Oliver and Swan 1989). These
terms are used somewhat interchangeably, with limited, if any, justification for the use of any
particular term.

30

3. RESEARCH METHODOLOGY
Preliminary stage of study- a pilot survey, personal interview of sales consultants,
potential customers and existing customer numbering 20 was conducted to arrive at key
deliverables which would ensure customer satisfaction. The research tool (questionnaire) was
designed by inducing the various queries, based on the key deliverables, which would reflect the
customer satisfaction.
The research was based on a study of a sample, sized 100, using simple random sample
selected from the existing database of manufacturing. The research included collection of data
from the primary sources using the research tool (questionnaire). Final stage was to analyze,
interpret and draw conclusions from the data collected
Date Sources
Primary Data
The data is collected directly from each and every customer related to CARS INDIA.
Pilot Survey
A pilot survey was conducted to understand the factors, which would positively influence
the customer. Personal Interviews totaling 20 were conducted for the sales team, potential
customers and the existing customers of CARS INDIA. The factors scoring high in the
interviews were considered to be the key deliverables.
Research Design
Research design selected for this project is Descriptive.

31

Data collection Method

a) Primary Data Collection Method:

Survey method was used for primary data collection.

We used questionnaire as an instrument for survey method.

Structured questionnaire.

Type of questionnaire: Open ended and closed ended.

b) Secondary Data Collection method:

Reference books.

Internet.

Sampling Details
1. Target population

: The population for this study consists of the residents of Chennai.

2. Sampling unit

: In this study the sampling unit is individual product.

3. Sample size

: 100

4. Sampling method

: The sample is selected by using convenience - sampling method.

Survey Research
The research was done to learn about peoples preferences and satisfaction of the
Murugappan & Co product.
Research Tool
Questionnaire (primary tool- attachment 1)
Interview through questionnaire method was employed for the research purpose. The
questionnaires were individually administered to each customer to ensure minimum scope for
faulty data entry and error of understanding. This method also gave the interviewer the scope of
entering into a dialogue and understanding the customers perception better.
The questionnaire tried to capture the responses of the customers mainly on the key
deliverables, derived from the pilot survey conducted, and a few questions have been included to
gauge the level of satisfaction and to gain insight into product expectations

32

Unstructured interview
The interview complemented the primary research tool and helped deliver into details of
responses provided by the customers. This not only validated the responses of the customers but
also helped the interviewer understand the expectations of the customers.
Sampling Unit: In this study the sampling unit used is the existing customer base of CARS
INDIA. Selection is made from the list of Customers during the last one year.
Sampling Size: Sample size was chosen to be 100.
Sampling Procedure
Simple Random Sampling
In simple random sampling, each member of the target population has the same chance of
being selected for participation in the study. For a sample to truly be a simple random sample we
need to develop a list or sampling frame that includes almost all of the population, then from this
we randomly pull names from the sampling frame using some kind of random method such as a
random number table or a random number generator. Finally, numbers are assigned to all
members of the population and pull the names of those members whose numbers are pulled from
the table or generator.
The biggest advantage to a simple random sample is that we get a pretty good unbiased sample
fairly easily. The biggest downside is that we may not get all elements of the population that are
of interest.
STATISTICAL TOOLS FOR ANALYSIS
Percentage Analysis
Chi-square Test
Correlation

33

3.1 RESEARCH DESIGN

This research studies are concerned with describing the characteristics of a particular individual
or of a group. This study concerned with specific predictions, with narration of facts and
characteristics concerning individual, group or situation are examples of Descriptive studies.

DESCRIPTIVE RESEARCH DESIGN:

Descriptive research design includes surveys and fact findings enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs, as it exists at present.
In social and business research, we quite often use the term ex post facto research for descriptive
research studies. The main characteristics of this method is that the researcher has no control
over variable, he can only report what is happening or what was happened. Most ex post facto
research projects are used for descriptive studies in which the researcher seeks to measure such
items for example, frequency of shopping, and preference of the people over similar data.
Descriptive research method will be applicable to the existing problem. Here, the study is
conducted for a fact (i\e), to know the customer satisfaction with reference to cars india maruti
suzuki. So the process was conducted through questionnaire.

3.2 DATA COLLECTION METHOD

The researcher used questionnaire for collection of primary data. Secondary data were collected
from different sources.

34

3.3 SOURCES OF DATA

The Primary Data were collected through questionnaire from Consumers of Maruti
Suzuki motorcars.

The Secondary Data were collected from company profile, magazines, market sources
and internet.

3.4 STATISTICAL TOOLS USED FOR ANALYSIS

PERCENTAGE ANALYSIS
Percentage analysis used mostly, since data was much qualitative and too large percentage
reduced to frequency distributions to a common base this making comparison simpler.
CHI SQUARE TEST
It is the mostly used non-parametric test in statistical work. The quality 2
describes the magnitude of discrepancy between theory and observation. The greater value of
Chi square the greater would be the discrepancy between observed and expected frequencies.
The formula for computing Chi square is

The calculated value is compared with the table value for the given degree of freedom at specific
level of significance. It is accepted when the calculated value is lesser than the tabulated value
and is rejected when the calculated value is greater than the tabulated value.
CORRELATION
Correlation is a computed into what is known as the correlation coefficient, which ranges
between -1 and +1.Perfect positive correlation (a correlation coefficient of +1) implies that as
one security moves, either up or down, the other security will move in lockstep, in the same
direction .Alternatively, perfect negative correlation means that if one security moves in either
direction the security that is perfectly negatively correlated will move in the opposite direction. If

35

the correlation is 0, the movements of the securities are said to have no correlation; they are
completely random.

3.5. SAMPLING PLAN

Population:
Population in statistics means the whole of the information which comes under the purview of
statistical investigation. Here the population is Customers of Cars India Maruti Suzuki for the
last three years.
Sampling unit:
Consumers of cars india maruti suzuki in chennai district.
Sample size:
Sample size over all analysis is 120
Sampling procedure:
The researcher has used convenience sampling in non profitability sampling method in this
project. The samples are chosen according to the researcher convenient. I used convenient
sampling method.

3.6 COMPILING OF DATA

The primary and secondary data are collected from different sources are made in tabular form.
They are arranged according to different factors for easy inference and analysis. The simple
percentage method is used for compiling of data and drawing of charts.

36

4. DATA ANALYSIS AND INTERPRETATION

4.1 DESCRIPTIVE ANALYSIS
Table No.4.1.1
GENDER WISE CLASSIFICATION

Gender

No of respondents

% of respondents

Male

82

68

Female

38

32

Total

120

100

Chart No 4.1.1
GENDER WISE CLASSIFICATION

% of respondents
68
70
60
50

32

40
30
20
10
0
Male

Female

INTERPRETATION:
The above table shows that 68% of the respondents are male, 32% of the respondents are female.

37

Table No 4.1.2
AGE OF THE RESPONDENTS

Age

No of respondent

% of respondents

18 30 yrs

26

21.66

31 39 yrs

55

45.83

40 49 yrs

22

18.33

50 and above

17

14.16

Total

120

100.00

Chart No 4.1.2
AGE OF THE RESPONDENTS

% of respondents
45.83

50
40
30

21.66

18.33
14.16

20
10
0
18 30 yrs

31 39 yrs

40 49 yrs

50 and above

INTERPRETATION:
The above table shows that 21.66% of the respondents are 18 30 yrs, 45.83% of the
respondents are between 31-39 yrs, 18.33% of the respondents are between 40 - 49 yrs and
14.16% of the respondents are 50yrs and above.
38

Table No 4.1.3
OCCUPATION OF THE RESPONDENTS
Occupation

No of respondents

% of respondents

Business

44

36.66

Private sector

32

26.66

Student

20

16.66

Service

18

15

Others

Total

120

100

employee

Chart No 4.1.3
OCCUPATION OF THE RESPONDENTS

% of respondents
40

36.66
26.66

30

16.66

20

15
5

10
0
Business Private sector employee

Student

Service

Others

INTERPRETATION:
The above table indicates that 36.66% of the respondents occupation is business, 26.66% of the
respondents occupation is private employee, 16.66% of the respondents are students, 15% of the
respondents are service and 5 of respondents are others.
39

Table No 4.1.4
KNOW ABOUT MARUTI SUZUKI
Came to Know by

No of respondents

% of respondents

Relatives

15

12.5

Friends

42

35

Dealers

22

18.33

Advertisements

23

19.16

Others

18

15

Total

120

100

Chart No. 4.1.4

KNOW ABOUT MARUTI SUZUKI

% of respondents
35

40
30
20

18.33

19.16

Dealers

Advertisements

12.5

15

10
0
Relatives

Friends

Others

% of respondents

INTERPRETATION:
The above table shows that 12.5% of the respondents know about Maruti Suzuki by relatives,
35% of the respondents know about Maruti Suzuki by Friends and 18.33% of the respondents
know about Maruti Suzuki by Dealers, 19.16% of respondents know about Maruti Suzuki by
Advertisements, and 15% of respondents know about Maruti Suzuki by others.

40

Table No 4.1.5
MARUTI SUZUKI BRANDS USING
Brands

No. of respondents

% of respondents

Swift

26

21.66

Alto

23

19.16

Ertiga

28

23.33

Ciaz

28

23.33

Others

15

12.5

Total

120

100

Chart No 4.1.5
MARUTI SUZUKI BRANDS USING

% of respondents
25

23.33

21.66

23.33

19.16

20
12.5

15
10
5
0
Swift

Alto

Ertiga

Ciaz

Others

INTERPRETATION:
The above table shows that 21.66% of the respondents using Maruti Suzuki Swift, 19.16% of the
respondents using Maruti Suzuki Alto, 23.33% of respondents using Maruti Suzuki Ertiga,
23.33 of respondents using Maruti Suzuki Ciaz, 12.5 % of respondents using others,

41

Table No 4.1.6
SOURCE TO BUY A BIKE
SOURCE

No of respondents

% of respondents

Own Money

27

22.5

Finance from Others

42

35

Exchange Mela

31

25.83

Others

20

16.66

Total

120

100

Chart No 4.1.6
SOURCE TO BUY A BIKE

% of respondents
35
35
25.83

30
22.5

25

16.66

20
15
10
5
0
Own Money

Finance from
Others

Exchange Mela

Others

INTERPRETATION:
The above table shows that 22.5% of respondents buy a bike by own money, 35% of respondents
buy a bike by Finance from others, 25.83% of respondents buy a bike by exchange mela, and
16.66% of respondents buy a bike by others.
42

Table No 4.1.7
SATISFACTION LEVEL IN GUARANTEE AND WARANTEE OF MARUTI SUZUKI
Satisfaction Level

No of respondents

% of respondents

Highly Satisfied

30

25

Satisfied

56

46.66

Neutral

34

28.33

Dissatisfied

Highly Dissatisfied

Total

120

100
Chart No 4.1.7

SATISFACTION LEVEL IN GUARANTEE AND WARANTEE OF MARUTI SUZUKI

% of respondents
50
40
30

46.66

20

28.33

25

10

0
Highly
Satisfied

Satisfied

Neutral

Dissatisfied

0
Highly
Dissatisfied

% of respondents

INTERPRETATION:
The above table shows that 25% of respondents highly satisfied in Guarantee and warrantee of
Maruti Suzuki when with compared with others, 46.66% of respondents satisfied in Guarantee
and warrantee of Maruti Suzuki when with compared with others, and 28.33% of respondents
neutral satisfactions in Guarantee and warrantee of Maruti Suzuki when with compared with
others.
43

Table No 4.1.8
SATISFACTION LEVEL IN SPARE PARTS AVAILABILTY OF MARUTI SUZUKI
Satisfaction Level

No of respondents

% of respondents

Highly Satisfied

38

31.66

Satisfied

49

40.83

Neutral

33

27.5

Dissatisfied

Highly Dissatisfied

Total

120

100

Chart No 4.1.8
SATISFACTION LEVEL IN SPARE PARTS AVAILABILTY OF MARUTI SUZUKI

% of respondents
60
40

31.66

40.83
27.5

20

0
Highly
Satisfied

Satisfied

Neutral

Dissatisfied

Highly
Dissatisfied

% of respondents

INTERPRETATION:
The above table shows that 31.66% of respondents highly satisfied in spare parts availability of
Maruti Suzuki when with compared with others, 40.83% of respondents satisfied in spare parts
availability of Maruti Suzuki when with compared with others, and 27.5% of respondents
neutral satisfactions in spare parts availability of Maruti Suzuki when with compared with others.
44

Table No 4.1.9
SATISFCATION LEVEL IN PULLING POWER OF MARUTI SUZUKI
Satisfaction Level

No of respondents

% of respondents

Highly Satisfied

45

37.5

Satisfied

48

40

Neutral

27

22.5

Dissatisfied

Highly Dissatisfied

Total

120

100

Chart No 4.1.9
SATISFCATION LEVEL IN PULLING POWER OF MARUTI SUZUKI

% of respondents
45
40

37.5

40

35
30
22.5

25
20
15
10
5

Dissatisfied

Highly
Dissatisfied

0
Highly Satisfied

Satisfied

Neutral
% of respondents

INTERPRETATION:
The above table shows that 37.5% of respondents highly satisfied in Pulling Power of Maruti
Suzuki when with compared with others, 40% of respondents satisfied in Pulling Power of
Maruti Suzuki when with compared with others, and 22.5% of respondents neutral satisfactions
in Pulling Power of Maruti Suzuki when with compared with others.
45

Table No 4.1.10
SATISFACTION LEVEL IN FUEL CONSUMPTION OF MARUTI SUZUKI
Satisfaction Level

No of respondents

% of respondents

Highly Satisfied

42

35

Satisfied

56

46.66

Neutral

22

18.33

Dissatisfied

Total

120

100

Chart No 4.1.10
SATISFACTION LEVEL IN FUEL CONSUMPTION OF MARUTI SUZUKI

% of respondents
46.66
50
40
30
20
10
0

35
18.33
0
Highly
Satisfied

Satisfied

Neutral

Dissatisfied

% of respondents

INTERPRETATION:
The above table shows that 35% of respondents highly satisfied in Fuel Consumption of Maruti
Suzuki when with compared with others, 46.66% of respondents satisfied in Fuel Consumption
of Maruti Suzuki when with compared with others, and 18.33% of respondents neutral
satisfactions in Fuel Consumption of Maruti Suzuki when with compared with others.

46

Table No 4.1.11
SATISFACTION LEVEL IN DESIGN OF MARUTI SUZUKI
Satisfaction Level

No of respondents

% of respondents

Highly Satisfied

54

45

Satisfied

47

39.16

Neutral

19

15.83

Dissatisfied

Highly Dissatisfied

Total

120

100

Chart No 4.1.11
SATISFACTION LEVEL IN DESIGN OF MARUTI SUZUKI

% of respondents
45
39.16

45
40
35
30
25
20
15
10
5
0

15.83

0
Highly
Satisfied

Satisfied

Neutral

Dissatisfied

0
Highly
Dissatisfied

% of respondents

INTERPRETATION:
The above table shows that 44% of respondents highly satisfied in Design of Maruti Suzuki
when with compared with others, 39.16% of respondents satisfied in Design of Maruti Suzuki
when with compared with others, and 15.83% of respondents neutral satisfactions in Design of
Maruti Suzuki when with compared with others.
47

Table No 4.1.12
SATISFACTION LEVEL IN COLOUR OF MARUTI SUZUKI
Satisfaction Level

No of respondents

% of respondents

Highly Satisfied

56

46.66

Satisfied

45

37.5

Neutral

19

15.83

Dissatisfied

Highly Dissatisfied

Total

120

100
Chart No 4.1.12

SATISFACTION LEVEL IN COLOUR OF MARUTI SUZUKI

% of respondents
46.66

50

37.5
40
30
15.83

20
10

0
Highly
Satisfied

Satisfied

Neutral

Dissatisfied

Highly
Dissatisfied

% of respondents

INTERPRETATION:
The above table shows that 46.66% of respondents highly satisfied in Colour of Maruti Suzuki
when with compared with others, 37.5% of respondents satisfied in Colour of Maruti Suzuki
when with compared with others, and 15.83% of respondents neutral satisfactions in Colour of
Maruti Suzuki when with compared with others.

48

Table No 4.1.13
SATISFACTION LEVEL IN BREAK PERFORMANCE OF MARUTI SUZUKI
Satisfaction Level

No of respondents

% of respondents

Highly Satisfied

52

43.33

Satisfied

53

44.16

Neutral

15

12.5

Dissatisfied

Highly Dissatisfied

Total

120

100
Chart No 4.1.13

SATISFACTION LEVEL IN BREAK PERFORMANCE OF MARUTI SUZUKI

% of respondents
50
45
40
35
30
25
20
15
10
5
0

43.33

44.16

12.5

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly
Dissatisfied

% of respondents

INTERPRETATION:
The above table shows that 43.33% of respondents highly satisfied in Break Performance of
Maruti Suzuki when with compared with others, 44.16% of respondents satisfied in Break
Performance of Maruti Suzuki when with compared with others, and 12.5% of respondents
neutral satisfactions in Break Performance of Maruti Suzuki when with compared with others.
49

Table No 4.1.14
SATISFACTION LEVEL IN RE SALE VALUE OF MARUTI SUZUKI
Satisfaction Level

No of respondents

% of respondents

Highly Satisfied

42

35

Satisfied

48

40

Neutral

30

25

Dissatisfied

Highly Dissatisfied

Total

120

100
Chart No 4.1.14

SATISFACTION LEVEL IN RE SALE VALUE OF MARUTI SUZUKI

% of respondents
40
35

40
35
30
25
20
15
10
5
0

25

0
Highly
Satisfied

Satisfied

Neutral

Dissatisfied

0
Highly
Dissatisfied

% of respondents

INTERPRETATION:
The above table shows that 35% of respondents highly satisfied in Re Sale Value of Maruti
Suzuki when with compared with others, 40% of respondents satisfied in Re Sale Value of
Maruti Suzuki when with compared with others, and 25% of respondents neutral satisfactions in
Re Sale Value of Maruti Suzuki when with compared with others.

50

Table No 4.1.15
SATISFACTION LEVEL IN BRAND NAME OF MARUTI SUZUKI
Satisfaction Level

No of respondents

% of respondents

Highly Satisfied

50

41.66

Satisfied

55

45.83

Neutral

15

12.5

Dissatisfied

Highly Dissatisfied

Total

120

100
Chart No 4.1.15

SATISFACTION LEVEL IN BRAND NAME OF MARUTI SUZUKI

% of respondents
50
45
40
35
30
25
20
15
10
5
0

45.83
41.66

12.5

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly
Dissatisfied

% of respondents

INTERPRETATION
The above table shows that 41.66% of respondents highly satisfied in Brand Name of Maruti
Suzuki when with compared with others, 45.83% of respondents satisfied in Brand Name of
Maruti Suzuki when with compared with others, and 12.5% of respondents neutral satisfactions
in Brand Name of Maruti Suzuki when with compared with others.
51

Table No 4.1.16
FACTOR INFLUENCED TO PURCHASE THE MARUTI SUZUKI
Factors

No of respondents

% of respondents

Brand

27

22.5

Pulling Power

29

24.16

Design

26

21.66

Resale Value

28

23.33

Others

10

8.33

Total

120

100
Chart No 4.1.16

FACTOR INFLUENCED TO PURCHASE THE MARUTI SUZUKI

% of respondents
22.5

25

24.16

23.33

21.66

20
15
8.33

10
5
0
Brand

Pulling Power

Design

Resale Value

Others

% of respondents

INTERPRETATION:
The above table shows that 22.5% of respondents influenced to purchase Maruti Suzuki for
Brand Name, 24.16% of respondents influenced to purchase Maruti Suzuki for Pulling Power,
21.66% of respondents influenced to purchase Maruti Suzuki for resale value and 8.33% of
respondents influenced to purchase Maruti Suzuki for other reasons.

52

4.2 STATISTICAL ANALYSIS

4.2.1 Chi Square Test:
To test the significant difference between age and customer satisfaction towards choosing a
bike model.
Null Hypothesis (Ho):- There is no significant difference between Age and Customer
Satisfaction towards choosing Bike model
Alternate Hypothesis (H1):- There is a significant difference between Age and Customer
Satisfaction towards choosing Bike model
OBSERVED FREQUENCY: Table No. 4.2.1
Content

Swift

Alto

Ertiga

Ciaz

Others

Total

18 30

26

31 39

11

15

15

55

40 & above

10

39

Total

26

23

28

28

15

120/120

Swift

Alto

Ertiga

Ciaz

Others

Total

18 30

5.6

4.9

6.1

6.1

3.25

26

31 39

11.9

10.5

12.8

12.8

6.8

55

40 & above

8.45

7.4

9.1

9.1

4.8

39

Total

26

23

28

28

15

120/120

Age Group

Expected Frequency:
Content
Age Group

53

CHI-SQUARE TABLE
O

(O E)

(O E)

= (O-E)
E

5.6

0.4

0.16

0.02

11

11.9

-0.9

0.81

0.06

8.45

0.55

0.31

0.03

4.9

-0.9

0.81

0.16

10.5

-1.5

2.25

0.21

10

7.4

2.6

6.76

0.91

6.1

-0.1

0.01

0.01

15

12.8

2.2

4.84

0.37

9.1

-2.1

4.41

0.48

6.1

-1.1

1.21

0.19

15

12.8

2.2

4.84

0.37

9.1

-1.1

1.21

0.13

3.25

1.75

3.06

0.94

6.8

1.8

3.24

0.47

4.8

0.2

0.04

0.01

Calculated Value Chi- Square

4.36

54

Tabulated Value = Degree of freedom

= (R - 1) (C 1)
= (3 1) (5 1)
=2x4
= 8 @ 5%
= 3.841
Conclusion
Calculated value is greater than tabulated value.Hence null hypothesis is rejected.
Inference:There is a significant difference between Age and Customer Satisfaction towards choosing
Bike model.

55

4.2.2 CORRELATION

To find correlation between factors influencing to purchase different Maruti Suzuki Bike
Model.

TABLE 4.2.2
x =factors influenced to purchase the Maruti Suzuki;
y = what bike you are using
x=x /N =24; y= y/N=24
X

27

(x-x)

(y-y)

26

(x-x)2

(y-y)2

(x-x).(y-y)

29

23

-1

25

-5

26

28

16

28

28

16

16

16

10

15

-14

-9

196

81

126

250

56

118

151

(x-x) (y-y)

r=

(x-x)2 . (y-y)2

151
250.118

151
29,500

151
171.76

r = 0.88

CONCLUSION:
The Correlation Value r is 0.88.which Implies Positive correlation factors influencing to
purchase different Maruti Suzuki and Bike model.

INFERENCE:
There is Positive correlation between factors influencing to purchase different Maruti Suzuki and
Bike model.

57

5.1. SUMMARY OF FINDINGS

5.1.1. DESCRIPTIVE FINDING:

Most of the customer 68% are belong to male

Many of the customer 45.83% belong to the age group 31 39 years

Majority of the customers 36.66% belongs to the occupation business

Most of the customer 19.16% know Maruti Suzuki through advertisements

Many of the customer 23.33% are using Maruti Suzuki CIAZ

Majority of the customers 35% use finance from others is the source of buying the bike

Most of the customers 46% rates satisfied with regards to warrantee and guarantee
provided by the Maruti Suzuki

Many of the customers 40.83% rates satisfied with regards to level of the spares parts
availability of Maruti Suzuki

Majority of the customers 37.5% rates highly satisfied with regards to the satisfaction
level in pulling power of Maruti Suzuki

Most of the customers 46.66% rates satisfied with regards to the level of the satisfaction
in fuel consumption of Maruti Suzuki

Many of the customer 45% are highly satisfied with regards tyo the satisfaction level in
design of Maruti Suzuki

Majority of the customer 46.66% are highly satisfied with the satisfaction in color of
Maruti Suzuki

Most of the customer 44.16% rate satisfied with regards to the satisfaction in the break
performance of Maruti Suzuki

Many of the customer 40% rates satisfied with regards to satisfaction in re-sale value of
Maruti Suzuki

Majority of the customers 45.83% satisfied with regards to brand name in Maruti Suzuki

Most of the customers23.33% rates re sale value is the factor influenced to purchased
Maruti Suzuki

58

5.1.2 STATISTICAL FINDINGS

1. There is a significance between Age and customer satisfaction toward choosing Bike model.
2. There is positive correlation between factors influencing to purchase the different Maruti
Suzuki bike model.

5.2. SUGGESSTIONS

Discussion held with the respondents, analysis of their opinions led to the following
suggestions.

The awareness of Maruti Suzuki two-wheelers should be created in rural area to improve
the Sales.

Effective steps may take to reduce the price level, because most of the consumer to
express brand name high price.

The price of spare parts may be reduced so that the consumer can maintained their
Vehicle at lower cost.

As for as the driving comfort is concerned the introduction of self-starter system at lower
price particularly for Maruti Suzuki Swift.

The style of two-wheeler should be improved, so that will attract more people.

The introduction of vehicles for female has gained reminders response from them.

The attractive gift and festivals offers given, it will lead to extend the high sales.

The Maruti Suzuki marketers to improve & extended the advertisement of Maruti Suzuki
bike around the world.

The dealers should make financial arrangements to their customers at lower rate of
interest.

59

5.3. CONCLUSION

The Study on customer satisfaction for Maruti Suzuki Two wheeler with reference for
to CARS INDIA MARUTI SUZUKI, CHENNAI has given me valuable information
through my study by

visiting

120 respondents, uses of Maruti Suzuki FOUR

WHEELERS.

This study given me a great experience, practical knowledge and the ideas about the
tractor market that the model of occupies the major share among the other brands of
Maruti Suzuki.

This study built a bridge between the theoretical knowledge and the practical problems in
the market.

The two-wheeler industry is a major employer. It is also provides support to many

Sancillaries and small-scale suppliers. In the Absence of a satisfactory public transport
system, two-wheelers have become the common mans vehicle as the bicycle.
Personalized transportation by two-wheelers is not through to be luxury, but now a days
it is necessity. Hence there is a greater scope for the growth of the two-wheelers industry
in India.

It seems of certain that the marketed expect to see new products with advanced
technology to give them fuel economy, riding comfort and speed of the two-wheelers.
But above all the expect a change in the style and looks of the products.

Maruti Suzuki has been doing commendable marketing activities so as to satisfy the
customer expectation.

Conducting survey is an interesting but a critical one. As it involves some practical

difficulties. I succeeded in this to a great extent.

60

QUESTIONNAIRE
CUSTOMER SATISFACTION
NAME ..
1. Gender

i. Male
ii. Female
2. Marital Status
i. Single
ii. Married
3. Income level
i. 0 to 20000
ii. 20001 to 40000
iii. 40001 to 60000
iv. 60001 and above
4. Educational level
i. SSLC
ii. Graduate
iii. Post graduate
iv. Professional
v. others
5. AGE
i. 18-30
ii. 31-39
iii. 40-49
iv. 50 and above

61

6. OCCUPATION
i. Business
ii. Private sector employee
iii. Student
iv. Service
v. Others
7. HOW YOU KNOW ABOUT CARS INDIA
i. Relatives
ii. Friends
iii. Dealers
iv. Advertise
v. Others
8. WHAT CAR YOU ARE USING
i. Swift
ii. Alto
iii. Ertiga
iv. Ciaz
v. Others
9. HOW YOU BOUGHT A CAR
i. Own money
ii. Finance from others
iii. Exchange mela
iv. Others

10. RATE THE SATISFACTION LEVEL IN GUARANTEE AND WARANTEE

OF MARUTI SUZUKI
Highly
satisfied

Satisfied

Neutral

Dissatisfied

62

Highly
dissatisfied

11. RATE THE SATISFACTION LEVEL IN SPARE PARTS AVAILABILITY

OF MARUTI SUZUKI
Highly
satisfied

Satisfied

Neutral

Dissatisfied

Highly
dissatisfied

12. RATE THE SATISFACTION LEVEL IN PULLING POWER OF MARUTI

SUZUKI
Highly
satisfied

Satisfied

Neutral

Dissatisfied

Highly
dissatisfied

13. RATE THE SATISFACTION LEVEL IN FUEL CONSUMPTION OF

MARUTI SUZUKI
Highly
satisfied

Satisfied

Neutral

Dissatisfied

Highly
dissatisfied

14. RATE THE SATISFACTION LEVEL IN DESIGN OF MARUTI SUZUKI

Highly
satisfied

Satisfied

Neutral

Dissatisfied

Highly
dissatisfied

15. RATE THE SATISFACTION LEVEL IN COLOUR OF MARUTI SUZUKI

Highly
Satisfied
Neutral
Dissatisfied
Highly
satisfied
dissatisfied

63

16. RATE THE SATISFACTION LEVEL IN BREAK PERFORMANCE OF

MARUTI SUZUKI
Highly
satisfied

Satisfied

Neutral

Dissatisfied

Highly
dissatisfied

17. RATE THE SATISFACTION LEVEL RE-SALE VALUE OF MARUTI

SUZUKI
Highly
satisfied

Satisfied

Neutral

Dissatisfied

Highly
dissatisfied

18. RATE THE SATISFACTION LEVEL IN BRAND OF MARUTI SUZUKI

Highly
Satisfied
Neutral
Dissatisfied
Highly
satisfied
dissatisfied

19. FACTOR INFLUENCING TO PURCHASE THE MARUTI SUZUKI

i. Brand
ii. Pulling power
iii. Design
iv. Resale value
v. Others
20. Suggestion about CARS INDIA.

64

BIBLIOGRAPHY
BOOKS:
Philip Kotler, Marketing Management (Millennium Edition), Prentice Hall Of India (P) Ltd.,
New Delhi, 2001.
C.R Kothari, Research Methodology, Wishva Prakashan, New Delhi, 2001.
Uma Sekaran, Research Methods for Business, John Wiley and Sons Inc., New York, 2000.
Amir D.Aczel and Jayavel Sounderpandian, Business Statistics (5th edition), Tata McGraw-Hill
publishing company limited, New Delhi, 2002.
George E.Belch and Michael A. Belch, Advertising and Promotion (5th edition), Tata McGrawHill publishing company limited, New Delhi, 2003.
Dr.S.Shajahan, Research Methods for Management (2nd edition), Jaico publishing House, 2004.

WEBLIOGRAPHY
www.Maruti Suzuki-motor-india.com
www.automartindia.com
www.automobileindustry.in/

65