Académique Documents
Professionnel Documents
Culture Documents
Project
Submitted to
Marketing Management
By
M.S.PAVITHRA DEVI
(Reg no :- BC0150020)
I YEAR, B.Com.L.L.B.,(HONS)
Under the guidance and supervision of
Prof. Mr. P. Kumaresan
DECLARATION
Place: Trichy
M.S.Pavithra Devi
Marketing Management
ACKNOWLEDGEMENT
Place: Trichy
Date: 09.04.2016
(mentor)
CERTIFICATE
Place: Trichy
Date: 09.04.2015
(mentor)
CONTENT
INTRODUCTION
Consumer behavior
Indian Railways
SIGNIFICANCE OF INDIAN RAILWAYS
PROBLEMS OF INDIAN RAILWAYS
SUGGESTIONS FOR INDIAN RAILWAYS
DATA ANALYSIS USING PRIMARY DATA
Questionnaire
Classified form of collected data
CRITICAL ANALYSIS
CALCULATION OF CHI-SQUARE
CONCLUSION
REFERENCES
ABSTRACT:
A short study on consumer behavior and Indian Railways is done in this project work. The
significance and problems of Indian Railways is studied and suggestions are made.
This project work targets on gathering the opinion of passengers by creating questionnaires
which is the source of collecting primary data. This study explores a relation between railway
service quality factors and customer satisfaction based on passenger perception. A model is
developed which describe the relationship between fare and charges and facilities at ticket
counters in different circumstances of passenger perspectives. For the purpose of the study, the
survey was conducted among few random people of Tami naduThe data collected is classified
and interpreted in order to attain the impact of consumer behaviors and opinions on Indian
Railways. This would help the Railway authorities to know the passengers(Consumers) views
and opinion on IRCTC and helps them to understand and enhance their services.
RESEARCH METHODOLOGY:
Primary and secondary data are used in the present study. The required primary data are collected
using pre-tested and well structured questionnaire. The required secondary data are collected
through Annual Reports of Ministry of railways, White paper on Indian railways published by
Railway Ministry, various journals and websites... Data has also been collected from various
books, websites, articles, newsletters , railway passengers . The primary data collected have been
classified and interpreted.
HYPOTHESIS:
In tune with the objective of the study, null hypotheses were formulated that there is no
significant association between the passenger satisfaction on services provided by the rail system
and the various independent variables relating to the sample respondents.
tries to assess influences on the consumer from groups such as family, friends, sports, reference
groups, and society in general.
Customer behavior study is based on consumer buying behavior, with the customer playing the
three distinct roles of user, payer and buyer. Research has shown that consumer behavior is
difficult to predict, even for experts in the field. Relationship marketing is an influential asset for
customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of
marketing through the re-affirmation of the importance of the customer or buyer. A greater
importance is also placed on consumer retention, customer relationship management,
personalisation, customisation and one-to-one marketing. Social functions can be categorized
into social choice and welfare functions.
INDIAN RAILWAYS:
Indian Railways is an Indian state-owned enterprise, owned and operated by the Government of
India through the Ministry of Railways. It is one of the world's largest railway networks.
Railways were first introduced to India in the year 1853 from Mumbai to Thane. In 1951 the
systems were nationalised as one unit, the Indian Railways, becoming one of the largest
networks in the world. IR operates both long distance and suburban rail systems on a multigauge network
It
also
owns locomotive and coach production facilities at several places in India and are assigned codes
identifying their gauge, kind of power and type of operation. Its operations cover twenty nine
states
and
seven
union
territories and
also
provides
limited
international
services
Railways provide the cheapest and most convenient mode of passenger transport both for
remunerative prices.
Railways are also helpful in removing isolation between cities and countryside and have
national integration.
Railways play a vital role in mitigating the sufferings of the people in the event of natural
calamities like droughts, floods, famines, earthquakes, etc. This is done by carrying relief
and rescue teams and essential items to the affected areas and save people from sufferings
and starvation.
Railways also help in facing man-made calamities like social, political, religious
disturbances, insurgency, etc. It facilitates easy movement of police, troops, defence
equipment, etc. The importance of railways to save the countrys freedom and integrity
As is the case with most of the government organisations, Indian Railways face chronic financial
crisis. The annual rate of increase in cost has overtaken that of revenues during the last few
years. A study of Railways finances from 1998 to 2004 reveals that the revenues increased at an
average annual rate of 8.7 per cent against the 9.65 per cent average annual growth in costs.
In certain years in between, the revenue growth rate did exceed that of cost. But this position was
achieved by providing inadequately for replacements and severely controlling the costs. Such a
10
situation has long term implications as it affects the internal generation of resources. Following
are the main causes of costs and revenue problems.
(i) Low level of employee productivity:
Indian Railways face a serious problem of low level of employee productivity. Transport output
in terms of passengers and freight tonne kilometres per employee on Indian Railways is only 400
as compared to 500 for Chinese and 570 for French Railways.
An estimated 30 per cent surplus workforce and operation of a number of lines with low traffic
and assets not essential for the Railways are contributory factors. The organisation has been
reducing its workforce since 1992-93 by a paltry one per cent annually.
(ii) Staff Wages:
With the implementation of the recommendations of the Fifth Pay Commission, staff wages have
increased tremendously and have put heavy strain on the financial resources of the Railways.
Staff wages and allowances which together with pension, accounted for 41.7 per cent of the
Gross Traffic Receipts in 1996-97 rose to 47.8 per cent in 1997-98 and 53.3 per cent in 1998-99.
With life expectancy going up and wage escalations taking place periodically, the position will
only worsen leaving little scope for development plans.
(iii) Increase in lease charges:
Paucity of funds forces the, Indian Railways to resort to market borrowings which results in
increased lease charges. Market borrowings started in 1986 and the trend is increasing. At
present payout of lease charges constitute about 8.5 per cent of the revenue.
3. Slowdown in Revenue Growth:
With saturation of trunk routes and low quality of services and reliability, the revenue growth has
registered a slowdown. The railways are increasingly becoming a transporter of bulk
commodities for public sector (coal, iron ore, food-grains, etc.) and are consistently losing to
11
roadways. Most of the national highways run parallel to railways and are consistently snatching
revenues from the railways
4. Social Burden:
Indian Railways have to play a dual role of revenue earning as well as meeting the social
obligations. The Expert Group, constituted in December 1998 to study the railway sector, termed
it as the split personality. On one hand, the Railways are seen as a commercial organisation and
on the other hand, it is treated as a social organisation which must perform its social obligations.
The two functions are diametrically opposite and difficult to reconcile. There are several social
obligations on the railways which are always running below cost. Suburban passenger services,
concessionary travel to certain section of travellers, concessional freight movement of certain
commodities, particularly to remote and inaccessible areas like the North-east region, providing
rail services to backward regions are some of the outstanding social obligations on the Indian
Railways.
5. Other Problems:
A large number of miscellaneous problems include late running of trains, lack of passenger
facilities including cleanliness at the railway stations, lack of security arrangement on the
railways resulting in theft and dacoities, etc. Political pressure and interference is a very big
problem which the Indian Railways are facing with increasing impact. Several projects which are
not economically viable have been initiated for political considerations.
SUGGESTIONS FOR THE IMPROVEMENT OF INDIAN RAILWAYS:
1. Improvement in system efficiency and productivity of resources.
The Railways has hundreds of acres of unutilized or under-utilized land in vaious cities. For
example, in Bangalore, around the city railway station, there is unutilized land. This piece of land
can be used to build 3-star hotels or people. Apart from that, other passenger facilities can be
12
provided and a portion of the land can be used to build Malls and multiplexes so that it can
generate revenue for the Railways.
Existing railway tracks/ lines within city limits of Bangalore - from Kengeri and Bidadi to K.R.
Puram and Whitefield and from Bellary Road and Yeshwantpur to Bangalore city should be
utilized for local trains as in Mumbai and Chennai. If this is not viable, an elevated railway
system like in Chennai should be built on top of the existing railway network for local
commuting so that no land acquisitions would be needed and hence there wouldn't be any
litigations. This would ensure speedy implementation of the project. Further, existing railway
stations could be utilized [With modifications] for local trains and no new expensive
infrastructure need to be built for the purpose. It also gets fully integrated with inter-city railway
network since it is built right on top of this network. The railways gets additional revenue and the
traffic gets eased out in the city of Bangalore to a great extent. Also, metro railway system as in
Delhi or any other railway system can be considered while building atop the existing railway
network.
2. Introduction of modern systems and technologies
First of all, the trains need to be re-designed. They need to be made aerodynamic so that
minimum energy is needed to pull a train. The engine in particular need to be made so. Bogies
need to be lighter and this should be done after a thorough examination of engineering aspects.
The railways needs to do away with introducing another sleeper on the side in 2nd class
compartments as this would make rail journeys uncomfortable as a result of congestion and
movement of people within a compartment would be difficult. Toilets would not be enough to
cater to these extra passengers. These aspects would put-off a regular passenger who has other
options like buses in a competitive market. Another very important aspect is the fact that the
existing toilet system is outdated and was designed in the British era when land was in plenty,
population was less and human excreta being thrown around along railway tracks was not as
serious a concern as it is today. With growing population, more trains and railway stations, dirty
trains and stations are a serious health hazard and stinking trains are a cause of revenue loss to
the Railways. The railways should immediately replace the existing outdated toilet system with
13
state-of-the-art automatic flush system and most importantly, ensure that nothing falls down to
the ground from these toilets.
signaling system with voice activation and cameras along with remote control. All gates should
be fit tight so that no gaps exist for people to cross over when closed through such gaps. Those
who cross over during red signals at railway crossings should be punished severely with
cognizable cases and non-compoundable cases against them. Owners of animals - dogs, sheep,
cattle etc. who allow them to stray around railway tracks should be penalized and jailed.
All trains need to be installed with GPS and actual tracking of trains should be made possible
even through a mobile phone and a call center.
Maintenance costs can be reduced by re-designing and re-modeling of trains, making them
lighter and aerodynamic [Especially, the Engine].
5. Enhancement of throughput capacity of the existing systems.
As mentioned above, existing railway network needs to be fully utimized in cities for local train
service either on the existing system itself or by building right above the existing railway lines an
elevated railway corridor that takes care of and caters to local commuting. This will need the
least investment since there are no land acquisitions, and no wastage of time since there are no
court cases. Existing infrastructure, after re-designing, can be used for this. No new
infrastructure needs to be created for this.
30-39
40-49
50-59
60 and above
Female
Degree
4.Occupation: Student
Business
5.Marital status:Married
Unmarried
Salaried
Single
15
Professional Courses
Professional
Others
Others
6.No.of.Children: 1
2-3
More than 3
Nil
20,000-40,000
Rural
Employment
Weekly
Second express
Super fast
Sleeper class
Very High
High
Moderate
Very Low
16
Jan
A/C
FEMALE
Below
30
30-39
4049
50-59
60+
TOTAL
EDUCATION
HSC
Degree
Professional
Other
10
5
2
0
0
2
0
0
0
4
0
0
3
0
1
0
0
1
0
0
13
12
3
0
OCCUPATION
Student
Business
Salaried
Professional
Others
15
0
1
0
1
0
0
2
0
0
0
0
0
0
2
0
1
1
0
2
0
0
1
0
0
15
1
5
0
5
MARITAL
STATUS
Married
Unmarried
0
17
1
1
4
0
3
0
1
0
9
18
17
Single
INCOME
<10,000
10,000-20,000
20,000-40,000
>40,000
13
0
1
1
0
0
1
1
0
2
0
2
0
1
1
2
0
1
0
0
13
4
3
6
0
0
3
0
1
1
0
3
0
0
1
0
0
4
15
7
2
10
4
1
1
1
0
0
1
3
0
2
2
0
0
1
0
6
12
2
5
8
1
1
2
0
0
0
FREQUENCY OF
TRAVEL
Daily
Weekly
Occasionally
Rarely
PURPOSE OF
TRAVEL
Study
Employment
House hold
matters
Touring
TYPE OF TRAIN
FREQUENTLU
USED
Passenger
Express
Super fast
Jan Shatabdi
4
6
1
1
1
0
4
2
2
0
0
1
2
0
0
1
0
0
1
9
11
1
TRAVELLING
CLASS
II nd Ordinary
Express
Sleeper
A/C Coach
2
5
5
5
0
1
0
1
0
1
0
3
0
2
1
1
0
0
1
0
2
9
7
10
18
MALE
Below
30
30-39
4049
50-59
60+
EDUCATION
HSC
Degree
Professional
Other
2
6
1
0
0
2
1
0
0
3
1
2
0
3
0
0
0
1
0
0
2
15
3
2
OCCUPATION
Student
Business
Salaried
Professional
Others
6
0
3
0
0
0
0
2
0
1
0
2
2
0
2
0
2
1
0
0
0
0
1
0
0
6
4
9
0
3
MARITAL
STATUS
Married
Unmarried
Single
INCOME
<10,000
10,000-20,000
20,000-40,000
>40,000
FREQUENCY OF
TRAVEL
Daily
Weekly
Occasionally
Rarely
0
0
9
0
6
0
0
3
0
0
1
0
0
10
9
0
7
0
0
2
0
1
0
2
0
0
3
3
0
0
0
3
0
0
1
0
7
1
4
10
2
5
1
1
0
3
0
0
3
3
0
0
0
0
3
0
1
0
0
0
6
11
4
19
PURPOSE OF
TRAVEL
Study
Employment
House hold
matters
Touring
TYPE OF TRAIN
FREQUENTLY
USED
Passenger
Express
Super fast
Jan Shatabdi
TRAVELLING
CLASS
Express
A/C Coach
1
3
3
2
1
0
4
2
0
3
0
0
1
0
0
11
6
0
1
0
0
0
8
9
4
1
0
0
9
6
5
3
3
2
1
2
0
2
2
2
0
1
2
0
4
2
1
0
1
2
4
2
0
0
1
2
PARTICULARS
VERY
HIGH
HIGH
MODERATE
LOW
VERY
LOW
TOTAL
TICKET FARE
Ordinary Ticket fare
Express Ticket fare
A/c class fare
26
2
17
4
27
12
11
18
15
5
3
3
4
0
3
50
50
50
OTHER CHARGES
Sleeper Charges
Super fast charges
Tatkal charges
Cancellation Charges
19
10
11
11
8
15
12
21
16
16
17
11
6
6
6
3
1
3
4
4
50
50
50
50
FACILITIES AT TICKET
COUNTER/RESERVATION
20
Number of Reservation
Counters
Working hours of reservation counters
Advance booking period for reservation
Safety and security at the counter
TOTAL
25
2
2
2
127
8
17
18
11
153
6
27
21
7
165
6
1
8
19
66
5
3
1
11
39
50
50
50
50
550
CRITICAL ANALYSIS:
From the above data it is concluded that majority of the passengers feel that ordinary ticket
charges are very high because of which measures should be taken either to reduce the ticket
charges or to provide worthy customer services at that cost. From the information provided it is
known that majority of the passengers prefers super fast trains especially A/C coaches, which
shows the improvement in the standard of living of the passengers. But the same people had said
that the ticket charges are very high which are contradictory to each other. Therefore it might be
because that passengers would have felt that customer services provided at a certain cost in the
ordinary coaches are not worthy so instead they would have thought that paying little extra and
experiencing a great customer care and safety in the A/C coaches is better. Measures should also
be taken to increase A/C coaches and super fast trains since its demand would increase in future.
The above given data clearly shows that passengers are totally dissatisfied with the safety
measures at the counters and proper steps must be taken to enhance the safety measures at the
counters.passengers are quite satisfied with the number of reservation counters,working hours of
reservation counter and advance booking period for reservations and care should be taken by
IRCTC to maintain the same.
CALCULATION OF CHI-SQUARE:
STEP 1:
Null hypothesis: There is no relationship between the opinion and Indian railways success.
STEP 2:
Alternate hypothesis: There is relationship between the opinion of the customer and Indain
railways success.
21
O
26
2
17
19
10
11
11
25
2
2
2
4
27
12
8
15
12
21
8
17
18
11
11
18
15
16
16
17
11
6
27
21
7
5
3
3
6
6
6
3
6
1
8
19
4
0
3
1
3
4
E
11.5
11.5
11.5
11.5
11.5
11.5
11.5
11.5
11.5
11.5
11.5
13.9
13.9
13.9
13.9
13.9
13.9
13.9
13.9
13.9
13.9
13.9
15
15
15
15
15
15
15
15
15
15
15
6
6
6
6
6
6
6
6
6
6
6
3.5
3.5
3.5
3.5
3.5
3.5
(O-E)^2
210.25
90.25
30.25
56.25
2.25
0.25
0.25
182.25
90.25
90.25
90.25
52.6
98.01
3.6
34.81
1.21
3.6
50.41
9.6
34.8
16.8
8.4
8.4
9
0
1
1
4
16
81
49
36
64
1
9
9
0
0
0
9
0
5
4
169
2.25
12.25
0.25
6.25
2.25
0.25
(O-E)^2/E
18.28
7.85
2.63
4.9
STEP 3:
0.2
0.02
Formulae:
0.02
15.85
X2=(O-E)^2/E
7.85
7.85
STEP 4:
7.85
3.7
v=5.99
7.05
0.26
E=C1*R1/n,C2*R2/n
2.5
0.09
E1=C1*R1/n=127*50/550=11.5
0.26
3.62
E2=C2*R2/n=13.9
0.7
3.8
E3=C3*R3/n=15
1.2
0.6
E4=C4*R4/n=6
0.56
0.6
E5=C5*R5/n=3.5
0
0.7
0.7
0.27
1.07
5.4
3.27
2.4
4.27
0.17
1.5
1.5
1.5
0
CONCLUSION:
0
0
A survey has been conducted among random
1.5
people and the primary data has been
0
collected using questionnaires and the data
0.83
0.67
collected
has
been
classified
and
0.64
3.5
22
0.07
1.74
0.64
0.07
interpreted .The calculated value of chi square(X2) 149.85 is greater than the table value
v=5.99.therefore null hypothesis is rejected and alternative hypothesis is taken into consideration
which implies that there is relationship between the opinion of customers and success of Indian
Railways.
REFERENCES:
https://en.wikipedia.org/wiki/Indian_Railways
https://en.wikipedia.org/wiki/Consumer_behaviour
http://praja.in/hi/~bangalore/discuss/forums/2008/08/indian-railways-invites-suggestions-
from-the-public#comment-7514
http://www.yourarticlelibrary.com/railways/indian-railway-significance-and-problems-of-
indian-railways/14136/
http://www.iracst.org/ijcbm/papers/vol3no22014/1vol3no2.pdf
http://www.academia.edu/5450850/RAILWAY_PASSENGERS_SATISFACTION_A_ST
UDY_IN_SALEM_DIVISION_OF_SOUTHERN_RAILWAY_INTRODUCTION
Class notes
23