CUSTOMER SATISFACTION MEASUREMENT IN PAINT INDUSTRY: A

CASE STUDY OF ASIAN PAINTS

MS. Parinda V. Doshi1
1
Assistant Professor (CES) Department of Commerce and Business Management Faculty of Commerce M. S.
University of Vadodara, India
Abstract
Increasing completion among the firms has forced them to search for tools providing competitive
advantage in the market. The recognised tools used by the organisation include innovation in
product and processes, employees training and development to sustain the ever changing
environment and satisfying the customer in order to increase the profitability. Satisfaction of
customer is widely known as an important tool for competitive advantage and survival of the
business. Firms constantly through their innovative product or process try to capture the market
by providing and trying to provide maximum satisfaction to their current and potential customer.
The present study examines the level of impact of product features, durability, variety, price and
services offered by employees and distributors of Asian Paints on satisfaction of its customer,
experience of the customers and their intention to repurchase. Perceptions of customers of Asian
Paints in Vadodara city were recorded by means of survey method. Data was analysed using
measures of central tendency mean and mode to assess the level of impact of variables on
customer satisfaction, experience and intention to repurchase. Results of the study supported the
notion of effects of variables on the satisfaction of the customers.
Keywords- Product, Price, Services, Satisfaction, Customer Satisfaction, Paint Industry
I. INTRODUCTION
The world is becoming small with the help of technical development. Any person can assess
anything from any corner of the world, and so it is now becoming tough for the business to sustain in
the market. Each and every organisation has to put efforts to achieve their corporate goal. One of the
important goals of the corporates is to retain and satisfy the current and past customers. In order to
attain the goal, business organisation adopts the practices which help in providing maximum
consumer satisfaction [6, 9 & 21]. The practices adopted by the organisation include developing the
product according to the need of consumer, offering them a wide range of product to satisfy their
specific need, providing services which help in better consumption of product or services and
offering entire things in a price which is affordable to them. Relationship between the firms and its
customer are bilateral. Strong bondage on both the side is required for the long lasting relationship.
Companies should focus on the needs and wants of specific target groups and then work hard to
maximize satisfaction with the product or service being offered [29]. Satisfied customers are the
tools of promotion for the product and services offered by the organisation [4]. Moreover, it is
difficult for the companies to attract the new customer as it costs about five times as much in time,
money and resources than to retain an existing one [19]. Organisations thus try to give maximum
satisfaction to their present customer to maintain their current market share.
Most research on customer satisfaction focuses on satisfaction with consumer goods and
services [22]. They view individual consumer as the unit that can be analysed which the help of
appropriate tool [7, 28 & 25]. The present study examines the role of product feature, product
durability, product variety, price and services offered by the employees and the distributers in

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achieving customer satisfaction and delivering positive experience for the usage of product of the
organisation. A case study of Asian Paints, one of the leading paint supplying company was done in
Vadodara. Responses of the customer were collected and it was found that the variables have a
significant impact on customer satisfaction.
The research study is divided into six sections. First section is the present section of
introduction followed by the second section of literature review and concept development. Third
section states objectives of the study, fourth section explain research methodology. Fifth section
discusses the result and findings of the study and the last sixth section concludes the study.
II. LITERATURE REVIEW AND CONCEPT DEVELOPMENT
There are number of studies on customer satisfaction done by authors at different period of
time. According to Fornell (1992) reason for the growing emphasis on customer satisfaction by the
business organisation is to attend strong competitive position in the market which in turn promises
higher market share and profit for it [10]. Customer satisfaction helps in repeated sales of product,
positive word-of-mouth and customer loyalty, important aspects for development of an organisation
[3, 11]. As each and every organisation target to develop they adopt the practices which lead to
maximum customer satisfaction.
Johnson and Fornell (1991) gave a framework that integrates an economic and psychological
perspective in measuring customer satisfaction. The framework proposed several propositions which
help in across comparison of consumer, firm and industry and was used in framing the national
consumer satisfaction index in Sweden [14].
Pizam and Ellis (1999) developed a tool for measuring customer satisfaction in hospitality
and tourism industry. Paper discusses various dimensions and attributes of satisfaction tools and
provides the lists of important methods of measuring satisfaction in the hospitality and tourism
industry. The study discusses service quality as a tool for measuring customer satisfaction and this
should be emphasised by the service providing industries [23].
Athanassopoulos, Gounaris, and Stathakopoulos (2001) investigate the behavioural
consequences of customer satisfaction. Their study examines the impact of customer satisfaction on
the decisions - to stay with the existing service provider, engagement in word-of-mouth
communications, and intentions to switch service providers. The study concluded showing the
positive impact of customer satisfaction on intention to stay with service provider, engagement in
positive word of mouth and the intention to stay with the organisation [2].
Homburga and Rudolph (2001) study customer satisfaction in industrial market. They
develop a scale which contains seven different dimensions to measure customer experience. The tool
developed was named as “INDSAT” for measuring satisfaction of industrial customer. A study was
carried out in 12 European countries measuring the response of 2500 industrial consumers.
Importance to different dimensions of diverse industries was discussed in the findings. It also
emphasised on different attributes of product and services to gain maximum customer satisfaction in
the same industry [13].
A case study of Sansuan Company was under taken by Sadeghi and Farokhian (2011) to
identify and understand the concept of customer satisfaction through inclusion of customers'
requirements and needs in the design of products manufactured. The study investigates the
relationship of product performance on customer satisfaction and loyalty. Product performance is
measured by satisfaction of basic needs, performance needs and excitement needs of customer and
the value provided whether expected or unexpected. This paper concluded with the finding of
significant and direct relationship between the design of a product and the expected value, the
expected value, unexpected value and customer satisfaction and, the expected value and customer
loyalty [24].
Suchánek, Richter and Králová (2015) research work aims to determine the influence of
quality on customer satisfaction, business performance and competitiveness of the food industry. The
Authors collected data from the sample of food and beverages manufacturing companies and

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customers of these companies. Research concludes with the finding of significance influence of
product quality on customer satisfaction, performance and increase competitiveness of the business
[26].
From the literature, we find customer satisfaction as an important variable for development of
companies as it directly affects the loyalty, repeated sales and positive word of mouth for the firms
manufacturing or suppling product and services. Organisations frame policies at different level to
deliver maximum satisfaction to its customers as large numbers of satisfied customers make the
business successful. An elaborate discussion of the concepts of customer satisfaction, product and
satisfaction; and price and satisfaction follows in the present section.
2.1 Customer Satisfaction
Customer satisfaction is a psychological concept that involves the feeling of well-being and
pleasure that results from obtaining what one hopes for and expects from an appealing product
and/or service [30]. Vavra's (1997) proposed customer satisfaction as an end-state resulting from the
experience of consumption and hence based upon an outcome or a process [29]. Customer
satisfaction is define as ``the customer's subjective evaluation of a consumption experience, based on
some relationship between the customer's perceptions and objective attributes of the product'' by
Klaus (1985) [15]. It is an emotional response towards the product [27], a psychological state
resulting from the disconfirmed expectancy related to initial consumer expectation [20] and a
conceptual response to the purchase and use of a product which comes from the comparison of the
rewards and cost of purchase relative to expectations of consumers [8].
When consumers buy products or services from the market they buy with certain expectation.
With the consumption of product and services, comparison starts between the consumption
experience and perceived expectation. When experience is more than the expectation consumers are
happy with the product and services purchase. This happiness of the consumer is coined as
satisfaction for the product and services. Organisations desire to provide positive consumption
experience and so constantly make efforts in the direction which include: modifying product by
improving quality and durability, offering product variety to satisfy the specific needs, providing the
services which help in improving the consumption experience and lastly keeping price of the product
and services at a reasonable level.
2.2 Product, Price and Satisfaction
The concept of product in the study refers to product feature, durability, variety and price.
Product is coercive source of power for an organisation [1]. Product differentiation by means of
unique product line help in developing competitive advantage and provide barrier for switching [12,
17 & 18]. Product quality, durability, variety and price are the essential component to be considered
in giving and enhancing customer satisfaction. Zamazalová (2008) mentions product, price and
services as key factors affecting and measuring customer satisfaction [31]. Quality of the product
either perceived or technical affects customer satisfaction. Companies compete with one another to
provide maximum customer satisfaction by innovation in terms of quality, durability and variety of
product. In order to increase their market share they try to satisfy maximum need of customer at an
affordable cost.
2.3 Services and Satisfaction
Services provided by the companies‟ plays an important role in satisfying customers.
Organisations have to concentrate on the different type of services provided by the employees and
the distributer. Proper services help in increasing the positive consumption experience. Customers
require guidance, right from the purchase of the product to proper installation and usage. If the
companies fail to provide them proper guidance at any of these stages there are chance of minimising
consumption experience. Minimising consumption experience lower down the satisfaction level and
affects the performance of the organisation. Interpersonal contact between the organisation and the
customer helps in generating the co-operative atmosphere and increases the performance of the firm
[16]. Companies also require support from the distributers in delivery of proper services to the

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customer which helps in effective consumption of product. Thus services provided by the employees
and distributers are essential component for the organisation as it help in increasing customer
satisfaction and there by performance of the Business unit [5].
III. OBJECTIVES OF THE STUDY
The prime objective of the study is to analyse the role of product feature, product durability,
product variety, price and services offered in achieving customer satisfaction in the paint industry in
India. Prime objective is further bifurcated in to the sub-objectives which are:
 To examine the level of impact of product feature on satisfaction of the customers of paints
suppling companies.
 To observe the level of influence of product durability on satisfaction of the customers of
paint suppling companies.
 To determine the level of impact of product variety on satisfaction of the customers of paint
suppling companies.
 To identify the level of impact of price on satisfaction of the customers of paint suppling
companies.
 To study the level of influence of services offered by the company and its distributers on
satisfaction of the customers of paint suppling companies.
 To assess the level of experience the customers have after applying the paint at their home.
 To know their intention for repeated purchase of the product.
IV. METHODOLOGY AND DATA COLLECTION
In order to achieve the objectives of the study, case study of “Asian Paints” one of the leading
paint company of India was undertaken. Data was collected from the customer of the company in
order to understand: the level of impact of product feature, product durability, product variety, price
and services offered on satisfaction of customer; to assess the level of experience after applying paint
and to know the intention of repeated purchase. The present section of the study provide detail, on
the data employed; instrument used for data collection; reference period of the data collected; and
methodology adopted for analysing data.
4.1 Population and Sample:
Population for the study are customers of Asian Paints in Vadodara city, who have purchased
the product from the dealer of Asian Paints in Vadodara. Convenience sampling technique was used
to collected data from 100 customers of the Asian Paints in Vadodara.
4.2 Research Instrument:
The empirical research component of the study consisted of the completion of structured
questionnaires through personal interviews. The questionnaire consisted of a structured format with
closed-ended questions to gather demographic data on the profile of the customer of Asian Paints.
Five- point Likert-type statements ranging from Strongly Disagree (1) to Strongly Agree (5) were
used to test respondent‟s satisfaction pertaining to product quality, product durability, product
variety, product price and services offered by the company and its distributers, know the post
experience of customer and their intention of repeated purchase.
The impact of product feature is measured using 4 items, while that of, product durability,
variety, price and intention to repurchase was assessed on the basis of 1 item each. For the effect of
services offered by the company and its distributers and customer satisfaction 3 questions are framed
for each; and experience is measured with the help of 2 items.
4.3 Data Gathering:
Given the nature of the present study, data was collected from the primary sources. Data was
collected through structured close ended questionnaires by undertaking personal interviews of
customer of Asian Paints in Vadodara. Personal interviews were conducted from January 2015 to
April 2015 for collecting responses of the customer.

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4.4 Method of Processing and Analysing Data

In order to attend the objectives of study, data has been examined and analysed using suitable
statistical tools. Measures of central tendency - mean and mode was used:
 to analyse the level of impact of product feature, product durability, product variety, price
and services offered by the company and its distributers on customer satisfaction,
 to measure the overall satisfaction of customer‟s,
 to examine the experience of customer pertaining to product and services of the company and
 to inspect repurchase intention of customer‟s.
V. EMPIRICAL RESULTS
A total of 100 fully completed questionnaires, were used for interpretation of the responses.
Preliminary analysis was conducted to check the data. Reliability test were conducted to assess the
internal consistency of the data. Cronbach‟s alpha the most widely used method to test the reliability
was used in the study. It is mention that its value of Cronbach alpha varies from 0 to 1 but,
satisfactory value is required to be more than 0.6 for the scale to be reliable. The Cronbach alpha was
found to be 0.834 for the instrument under study, which ensures the reliability of the instrument.
After checking the reliability of the scale, normality of the data was checked using P-P plot which
depicts that the data was normal.
The demographic profile of the respondent consists of gender, age, occupation and Income.
The detail of the profile is mention in Table – 1 given below.
Table 1: Demographic Analysis of Respondents
Description Responses
Male 43
Gender Female 57
Total 100
Less than 25 41
25-30 34
Age
30 and above 25
Total 100
Service 32
Business 21
Occupation Professional 25
Others 22
Total 100
Less than 200000 30
200000 – 400000 34
Annual
400000 – 600000 20
Income
600000 and More 16
Total 100

The respondents were first classified according to their gender. 43 respondents out of 100
were male and remaining 57 were female respondent. When these respondents were further classified
according to their age 41 percent of the respondents were less than 25 years, 34 percent were
between 25 to 30 years and 25 percent were above 30 years. Occupation of the respondent is
classified into four categories: service, business, profession and other. 32 respondents were a salaried
employee, 21 respondents were businessman, 25 were professional and 22 of them come under other
category. When this other category was further investigated it was found that 16 respondents were
female which mean they might be the home maker and the other 6 were male. When the total 100
respondents were further classified according to their annual Income it was found that 30 of them

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have income less than 2,00,000 Rupees, 34 of them earn between 2,00,000 to 4,00,000, 20
respondents were earning between 4,00,000 to 6,00,000 and the 16 respondents were earning more
than 6,00,000 annually.
Responses of scale „1‟ highly disagree and scale „2‟ disagree was clubbed as disagree and of
scale „4‟ agree and sale „5‟ highly agree was clubbed as agree to evaluate the responses on
percentage basis. Table 2 displays the percentage of response on the statements pertaining to product
feature, durability, variety, price, services offered by employees of the company and distributers,
satisfaction, experience about the product and their intention for repeated purchase of the product.

Table 2: Percentage of Responses

Variables Statements Disagree Undecided Agree
I am satisfied by the product in terms of its smell. 16 18 66
I am satisfied by the product in terms of shine. 15 14 71
I am satisfied by the product in terms of texture. 15 20 65
Product
I am satisfied by the product in terms of quality of
colour. 13 19 68
Total 14.75 17.75 67.50
Durability I found product of Asian Paints long lasting 15 16 69
Variety I found colour variety in Asian Paints 19 8 73
Price I found the price of Asian Paints fair enough 27 23 50
Asian paints expert are helpful in giving ideas
about the type of colour and texture to use to
make house look more beautiful 18 26 56
Services of Labours and Service Man provided by
Services dealer satisfies me 30 22 48
I was given individual attention by the people in
the store. 22 9 69
Total 23.33 19.00 57.67
I am satisfied by the products of Asian paints 13 12 75
I am satisfied by the overall services provided by
Satisfaction Asian paints 16 6 78
I am satisfied by colouring my house with Asian
paints 21 4 75
Surface of the walls are smooth after applying
paint 15 7 78
Experience
I had a wonderful experience with companies
product 14 12 74
Repeated I would go for the same company when I colour
Purchase my house again 9 17 74

Responses for product feature include smell, shine, texture and quality of colour. Out of total
100 respondents 66 were satisfied with smell, 71 with shine, 65 with texture and 68 with quality of
colour. Overall satisfaction for product feature was found to be 67.5 percent. The number of
dissatisfied respondents pertaining to smell were 16, shine and texture were 15 each and 13
respondent for the quality of colour. 14.75 percent of the total dissatisfied respondents were found
for the features of the product supplied by Asian Paints.
Durability of the product was favoured by 69 percent while 15 percent of the unfavourable
responses were received in the study. 16 percent of the respondents kept mum on the issue of
durability of the product. Variety of colour provided by the company was favoured by 73 percent of
the respondents while 19 percent disagree to it and desired for more colour variety. 8 percent of the

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respondents did not show their willingness to give their responses on the variety of colour offered by
the company. Study found only 50 percent of the respondents agreeing to the fair price charge by the
company for the product and services offered. 23 percent of the respondents conceal by not giving
responses to the questions while 27 percent of them disagree towards the fairness of price charged by
the company.
Services offered by the company was classified into services offered by the companies expert
for the colour and texture, services offered by the labour and serviceman provided by dealer and the
attention given to the customer by the dealer at the time of purchase of the product. 56 respondents
find the services of the expert helpful, only 48 were satisfied with the services of labour and
serviceman and 69 of them agreed to have personal attention by the distributers. The number of
respondents dissatisfied with the services of expert and labour and serviceman were 18 and 30
respectively, while 22 of them declined to have personal attention from distributors. The customer
who did not say anything for services of expert and labour and serviceman were 26 and 22, while 9
did not respond for personal attention. The overall satisfaction and dissatisfaction relating to the
services was 57.67 and 23.33 percent. There were 19 percent of undecided responses for the services
offered by the company. Lower rate of response for services shows the area to be worked upon, to
increase the customer satisfaction and hence the productivity of the organisation.
Study was carried out to know the satisfaction of customer relating to the product and the
overall service experience of the company, finally the respondents were ask whether they were
satisfied by colouring the house with Asian Paints. 75 percent of the respondents were satisfied by
the product and 78 percent were satisfied by the overall services provided by the company. 75
percent of the respondents were satisfied by colouring the house with Asian Paints while the study
found 13 percent dissatisfied respondents for product, 16 percent for overall services and 21 percent
for colouring the house with Asian Paints. Here also the study found respondents not giving the
responses, which were – 12 percent for product, 6 percent for service and 4 percent for colouring the
house with the company‟s product.
Experience of the people was analysed regarding the smoothness on surface of wall and
usage of companies‟ product. 78 percent of the respondents found the wall smooth after applying the
paint and 74 percent had wonderful experience with the product. 15 percent of the respondents were
found to have a negative experience for the smoothness and 14 percent for usage of companies‟
product.
At the end, the intention for repurchase of the product was examined, 74 respondents agreed
to use the product of the company while painting their house. While 9 respondents intended to
change the company, 17 respondents did not disclose their future intention.
For empirical testing data was analysed using measure of central tendency. The
interpretations of the Likert scale results of the mean scores are: 1 to 2.32 indicates low level of
scores, 2.33 to 3.65 indicate medium level of scores and 3.66 to 5 indicate high level of scores. Table
3 show the detail results of measure of central tendency.

Table 3: Measure of Central Tendency

Variables Statements Mean Mode
I am satisfied by the product in terms of its smell. 3.67 4
I am satisfied by the product in terms of shine. 3.80 4
Product I am satisfied by the product in terms of texture. 3.71 4
I am satisfied by the product in terms of quality of colour. 3.76 4
Total 3.74
Durability I found product of Asian Paints long lasting 3.74 4
Variety I found colour variety in Asian Paints 3.77 4
Price I found the price of Asian Paints fair enough 3.32 4

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Asian paints expert are helpful in giving ideas about the type of
colour and texture to use to make house look more beautiful 3.53 4
I was given individual attention by the people in the store. 3.63 4
Services
Services of Labours and service man provided by dealer
satisfied me 3.21 4
Total 3.46
I am satisfied by the products of Asian Paints 3.84 4
I am satisfied by the overall services provided by Asian Paints 3.76 4
Satisfaction
I am satisfied by colouring my house with Asian Paints 3.63 4
Total 3.74
Surface of the walls are smooth after applying paint 3.82 4
Experience I had a wonderful experience with companies product 3.73 4
Total 3.78
Repeated I would go for the same company when I colour my house
purchase again 3.90 4

The mean score of product feature – smell, shine, texture and quality is 3.67, 3.80, 3.71 and
3.76. The overall mean score for product feature is 3.74; all the mean score are more than 3.66 which
mean that the respondents are highly satisfied with the product feature of the company. Mode „4‟
indicated most number of time repeated frequency, which mean most of the respondents were
satisfied by the product of the company.
Mean score for the durability of the product is 3.74 and the mode is 4 which indicate the high
level of satisfaction for long lasing of the product which was agreed by the majority of the
respondent. 3.77 mean score and 4 mode of colour variety indicate high level of variety by the
respondents and majority of them agreed to the statement. While moderate level of responses 3.32
was received for fairness of price charge by the company. When the mode was calculated for the
responses it came to 4, which again indicate that majority of the respondent agree to the price of
charged by the organisation.
Respondent were moderately satisfied for the services offered by Asian Paints. Overall mean
sore for the services is 3.46. Individual mean score of experts, labours and serviceman, and
individual attention given by the distributers was found at moderate level which is 3.53, 3.21 and
3.63 respectively. Mode value for services is found to be 4 which mean majority of the respondent
agree to be satisfied by the services of the company. But, when overall satisfaction was measured it
was at a high level with the average score of 3.74. Overall satisfaction include: satisfaction for
product with a mean score 3.84, satisfaction for the overall service experience 3.76 and satisfaction
regarding colouring the house with Asian Paints 3.63. All the individual satisfaction relating to
product, services and colouring the house with Asian Paints were also found at the high level. Mode
value for satisfaction is found to be 4 which mean majority of the respondent agree to be satisfied
with product, services and colouring the house with Asian Paints.
Mean score for experience regarding the smoothness on surface of wall and usage of
companies‟ product was found at the high level with the score value of 3.82 and 3.73. The high mean
score of both the types of experiences confirm the overall experience at the high level with the mean
score of 3.78. „4‟ mode value of the experience show majority of the respondent agree to have
smooth surface of wall and had a wonderful experience of usage of companies‟ product. Respondent
also showed the high level of intention for repeated purchase of the company product with the mean
score of 3.90. Mode 4 indicated that majority of the respondent agree for the repeated purchase of the
product.
VI. CONCLUSION
Customer satisfaction plays an important role in success and survival of the business. There
are large numbers of research paper on the understanding of the concept of customer satisfaction.

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Researches are also done for the development of the instrument for measuring the customer
satisfaction in different industries. The paper contributes for the development of the instrument
which will helps in measuring the impact of product feature, durability, variety, price and services on
customer satisfaction. It also helps to measure the consumption experience and give idea about the
intention for the repeated purchase of the product.
The empirical results of the study lead to the following findings:
• Product feature has a high level of significant impact on customer satisfaction of paint selling
companies.
• Product durability and variety considerably influences customer satisfaction of paint selling
companies.
• Product price and services offered by the company and its distributer‟s has a moderate effect
customer satisfaction of paint selling companies.
• Customers have a highly positive post consumption experience about the product of Asian
Paints
• They highly agree for the repeated purchase of the product from the same company.
• Average customer satisfaction was found to be moderate of the Asian Paints Company
mainly because of the moderate satisfaction with the services of Labours and Services Man
provided by the dealer.
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Volume 02, Issue 12, [December- 2016] e-ISSN: 2394-5532, p-ISSN: 2394-823X

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