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customer satisfaction for canon printers

  1. 1. Chapter no. 1 IntroduCtIon 1
  2. 2. 1.1 What is Customer Satisfaction? Customer Satisfaction is a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. 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. 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. Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement. There are ten 'Quality Values' which influence satisfaction behavior, known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service. 2
  3. 3. 1.2 Need for the study: For the success of every business customers are at the core center. Customers are the one who consume and use the product. So they decide what to buy and what not to buy. Products or services which meets the requirement or the needs are preferred. But in any business or industry there is no monopoly of one company, there are always competitors. These competitors never let you standby. External environmental factors, internal factors, influence the scope of the business. So in such a competitive environment customer satisfaction becomes of prime importance. If customers are satisfied they will become an asset for the company on whom it can rely. But if the customers are dissatisfied they will switch over to competitors brand and will be a loss for the company. Effective marketing focuses on two activities: retaining existing customers and adding new customers. Customer satisfaction measures are critical to any product or service company because customer satisfaction is a strong predictor of customer retention, customer loyalty and product repurchase. Customer who are satisfied are also loyal. So there is less possibility that they will revoke to the company. So in such scenario customer satisfaction needs to be analyzed. It will give an insight into where the company is falling short of the expectations of the customers. So that it can improve upon it and gain customer satisfaction. In the printer industry HP, Samsung, Epson are some of the competitors of Canon. In such a competitive market Canon cannot afford to miss on the customers. So it becomes necessary to know the customer satisfaction. In printer industry market share wise HP are the leaders. To take over the top position Canon needs to be the best company and for it ,it should satisfy its customers. So this research project becomes critical and important from Canons perspective. 3
  4. 4. Objective of the Research Defining the objective is the crucial part of any research. If the objective are not clear the research cannot identify the problem and thus cannot find a solution to the problem. Primary Objective: To study customer satisfaction of Canon printers users in Pune region. Secondary Objective: 1) To identify the areas of dissatisfaction related to Canon printers. 2) To identify the areas on which company should focus to improve the product. 3) To tap the Latent market for the Inkjet and Laser printers. 4) Promotion of different inkjet, lasers and all in one printers. Scope of the study • Product Scope :- This study is only restricted to the printer section i.e. inkjet, lasers and all in one. • Geographic Scope :- The project was conducted for the Pune region only. • Also this project is limited to 250 samples only . 4
  5. 5. Chapter no.2 Company profIle 5
  6. 6. 2.1 Company Name and History: Name of the Company: Canon Inc. Founded : August 10, 1937 Headquarters: 30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo 146-8501, Japan. Canon started out as a company with a handful of employees and a burning passion. That company soon became a world-renowned camera maker and is now a global multimedia corporation. However, the origins of our success remain unchanged: the passion of our early years and technological expertise amassed over more than 60 years. Canon Inc. is a global leader with total revenue of about US$ 45 billion in 2008, in photographic and digital imaging solutions. Its global network now includes 239 companies, employing some more than 131,352 people. Five Technology ‘imaging' engines of Optical, Electro photography, Canon is the world leader in office automation and digital imaging technologies. Since 1990, Canon has used numerous types of recycled plastic in exterior housings and other product parts in cooperation with resin manufacturers in Japan and abroad. “Sandwich molding,” in which recycled plastic is sandwiched between layers of virgin plastic, enables usage rates for recycled plastic of up to 30% in final products. So Canon has been making eco friendly products from a period of time."Canon Group Environmental Charter" has been introduced, global environmental promotion organization are also described. Here the product is viewed in terms of its three stages-produce, use and recycle - Canon contributes to minimizing environmental burden through the effective application of environmental technologies. 6
  7. 7. 2.2 Organizational Chart Of the Company: Figure no. 2.2.1 7
  8. 8. 2.3 Growth: Canon India Private Limited, India 's No.1 Complete Digital Imaging Company, has registered the highest growth in Eastern market in most of the product categories in the first 5 months of 2009 over the same period last year. Canon is also a leading player in East in the digital camera and digital copier multifunctional categories with 30% market share in both. And Canon achieved 30% market share for laser printer nationally during April 2009. Canon India closed 2008 with revenues of Rs. 665 crores, which 2008* rank marked 31% growth over 2007. Overall, Canon expects to touch revenue Company No. of 840 crores in 2009 and 1000 crores in 2010. Canon will invest 100 1 IBM 4,164 crores in India this year. 2 Samsung Electronics 3,518 Canon is said to be a Technology Innovators, With over 1100 3 Canon 2,114 registered patented technologies in Digital Cameras, 2300 in inkjet 4 Microsoft 2,027 printers, 5600 in multifunctional printers and more than 200 in scanners, Canon has emerged as one of the leading technology innovators in the 5 Intel 1,777 digital imaging space worldwide. 6 Panasonic 1,737 7 Toshiba 1,614 8 Sony 1,499 Canon is said to be a Technology Innovators, With over 1100 9 Fujitsu 1,493 registered patented technologies in Digital Cameras, 2300 in inkjet printers, 5600 in multifunctional printers and more than 200 in scanners, 10 Hewlett-Packard 1,420 Canon has emerged as one of the leading technology innovators in the digital imaging space worldwide. Canon has gained the ‘Second‘ rank in the year 2002, 2003, 2005. And in rest of the years from 1999-2008 they were ranked ‘Third’. 8
  9. 9. TOP 10 CORPORATIONS RECEIVING U.S. PATENTS 2008 (Source: United States Patent and Trademark Office) 2.4 Different Products: Office Imaging Products:- Products Network Multifunction Devices 9
  10. 10. Copying Machines 10
  11. 11. Computer Peripherals :- Laser Beam Printers Inkjet Printers Inkjet Multifunction Printers, Image Scanners Business Information Products:- Computers, Document Scanners, Handy Terminals, Calculators, Electronic Dictionaries 11
  12. 12. Cameras:- Digital Cameras digital camcorder Digital Video Camera , LCD Projectors 12
  13. 13. Optical and Other Products:- Semiconductor Production Equipment, Mirror Projection Mask Aligners for LCDs, Broadcast-use Television Lenses, Medical Image Recording Equipment, Large-Format Inkjet Printers, Vacuum Equipment for Electronic Components 13
  14. 14. 2.5 Technology Used in Printers: Figure No 2.5.1 For Superior Image Quality Canon has superior technology includes Microfine Droplet Technology :- We redesign the ink nozzles and print head for the precise ink ejection and perfect photo r reproduction. 14
  15. 15. ChromaPlus Technology :- The new ChromaPlus technology has an additional red added to the original 6-colour ink. Colour Precision Distribution :- Canon re-arranges print head for uniform colours rendition. Photo Realism :- How we make printouts look like silver-halide photographs. FINE:- Canon PIXMA printers incorporate the Full-photolithography Inkjet Nozzle Engineering (FINE) technology print head, which has more nozzles than competitors' equivalent models. On Demand Toner Fixing Technology:- In copying machines and laser beam printers, toner is fixed to the paper by heat and pressure via the fixing roller. With conventional fixing-roller systems, the roller must be kept hot at all times by a heater located in the center of the roller, even when in standby mode. Canon’s on-demand SURF (Surface Rapid Fixing) technology employs a linear ceramic heater and fixing-film sleeve with high thermal conductivity and low thermal capacity. 15
  16. 16. Canon has also developed on-demand fixing technology for its color printers and copying machines. One system utilizes a double-layer fixing-film sleeve, such as those used in monochrome machines, which includes an intermediate rubber layer. In another, the base layer of the fixing-film sleeve is made from thin metallic film instead of heat-resistant resin and employs a three-layer structure which includes a rubber layer and release layer. The inclusion of the soft rubber layer contributes to improved toner-fixing performance and ensures the uniform application of heat to the toner to produce consistently high-quality color images. 16
  17. 17. 2.5 Awards and Recognitions in 2008 :- • Canon has notched up a total of 80 prestigious awards in 2008 in recognition of the superior technology and quality of its products across different segments. Canon was named as the Best Service Backup Company of the Year by Better Photography magazine. • Canon India is certified for ISO 9001, ISO 14001 and OHSAS 18001. In 2006, the company was certified for its "Strong commitment to excel" at the CII-EXIM Business Excellence Award. • In 2008 Canon has been ranked amongst top 10 employers in India in the Business Today 'Best Companies To Work For In India' survey. The list of product awards received in 2008 are as follows: • Digital Camera – 28 • Digital Camcorders – 4 • Digital SLR – 12 • Canon Lenses – 10 • All-in-one printers – 6 • Best Retail IT company • Best Imaging Solution Company • Best Office Equipment • Best Service Backup Company 2007 17
  18. 18. 2.6 Current Status of Organization :- • Canon launched its regional outreach programmes across the country – Amchi Mumbai, Humari Delhi, Namma Bengaluru and Namma Chennai. The projects were launched to create better connect with customers in these regions. • Canon launched 108 new products in 2008, the largest ever product launch in India. • Canon launched 'Image Fest' which showcases all Canon cameras and photo printing products by creating an exclusive edifice – a traveling exhibition. • Canon took up sponsorship in the IPL Cricket tournament for the PowerShot range of cameras, where every 4 and 6 hit was called a PowerShot. • To reinforce its focus on regional markets, Canon launched the Print City project across 6 cities. • Canon introduced its major thrust in 3 new areas of production and graphic arts, government business and system integration space. • Canon initiated green procurement and digitization to reduce paper wastes etc. • Toner Cartridge Recycling Activities : In keeping with its corporate responsibility, Canon pioneered the collection of used toner cartridges in 1990 as a voluntary measure, even before regulations were established. It has been 17 years since we started the program and now our initiatives go so far as to include stipulations on green purchasing in Japan. To date, we have collected a total of 190,000 tons globally. 18
  19. 19. Chapter no. 3 reSearCh deSIGn and methodoloGy 19
  20. 20. What is a research? A careful investigation or inquiry especially through search for a new facts in any branch of knowledge. It is a systemized efforts to gain new knowledge. Types of research: 1) Descriptive 2) Analytical 3) Applied 4) Fundamental 5) Quantitative 6) Qualitative 7) Conceptual 8) Empirical Data Sources: There may be different types of data, some of the information may be published, while some is unpublished, some is complete and some information as available without any charge and some may acquire nominal expenditure. Its necessary for the research work and the type of sources from which it is generally collected. The research problem decides the nature of the sources of data they may be secondary data and primary data. Data Collection: The method to collect data was primary. Primary data is obtained through respondents, whether through questionnaire or through personal interview. Collection of primary data is done during 20
  21. 21. the course of doing experiments in experimental research, but in case of descriptive type and when survey performed, whether sample survey or census surveys, then we can obtain primary data either through observations of through direct communication with there are several methods of collecting primary data, particularly in survey is descriptive research. 3.1 Sampling Design: The population is the set of all respondents about which a researcher wishes to draw a conclusion. In this project the respondents to be surveyed are the users of printers and other printing equipments. Population will comprise of all those who can be our respondents to meet our survey objectives. So the population comprises of the Xerox centers, cyber cafes, small home offices, retail outlets, corporate offices, educational institutes, schools, colleges. So this is our population. A sampling unit is that element or set of elements considered for selection in some stage of sampling. The one who will be the respondent and the concerned for the survey is sampling unit. In our case sampling unit is the end user of the printer, one who is actually using the printer. So the Xerox center, cyber cafes, small offices and the retail outlets are our sampling units. Sampling frame was all the Xerox centers, cyber café, retail outlets, small home offices. Sample size: The sample size is 250 and it includes Xerox center, Cyber cafes, Retail shops, Small home offices in Pune city. 21
  22. 22. 3.2 Sources and methods Data collection: Primary Data:- Primary data are those data which are collected for the first time, taking a sample, representing a population. It is not a published data, it is problem specific data collected by the researcher, first time. When primary data is published by researcher, it becomes the secondary data for everybody, other than the researcher. There are many methods of collecting primary data and the main methods include: • Questionnaires • Interviews • Focus group interviews • Observation • Case-studies Secondary Data: • Quantitative: Census, housing, social security as well as electoral statistics and other related databases. • Qualitative: Semi-structured and structured interviews, focus groups transcripts, field notes, observation records and other personal, research-related documents. 22
  23. 23. A clear benefit of using secondary data is that much of the background work needed has been already been carried out, for example: literature reviews, case studies might have been carried out, published texts and statistic could have been already used elsewhere, media promotion and personal contacts have also been utilized. 3.3 Sampling Techniques: A probability sample is one that gives every member of the population a known chance of being selected. So in this project the simple random sampling from the population was used as a sampling technique. All are selected randomly. 23
  24. 24. Chapter no. 4 data preSentatIon, analySIS and InterpretatIon 24
  25. 25. 1. Canon printer users Yes 178 No 72 Total 250 Table no.4.1 Graph no.4.1 25
  26. 26. Interpretation: Majority of the respondents visited were using Canon printers. The sample respondents were the customers of past 2 year of United Peripheral, Canon’s product distributor 0-6months 30 in pune. This shows that the majority of the respondents 6-12 months 56 use Canon printers. 1-2 year 60 More than 2 32 years 2. Duration of use of the printer Table No 4.2 Graph No. 4.2 26
  27. 27. Interpretation: 52% of the respondents were using the printer for more than a year. And 48% were newly added in last 1 year. So the respondents had a good experience with the printer and can give their feedback about their satisfaction. 3.Multiple Printers users Yes 133 No 45 Total 178 Table No. 4.3 Graph No. 4.3 Interpretation: Most of the cyber cafes and Xerox centers have more than 1 printer. Because they have more printing load , so there is a need for multiple printers .This saves customers time 27
  28. 28. and long waiting ques. To meet the demand they use multiple printers, it may be of Canon or any other company. 4. Other printer used Canon 18 HP 53 Samsung 22 Brother 5 Epson 30 Xerox 5 TOTAL 133 Table No.4.4 28
  29. 29. Graph No.4.4 Interpretation: From the graph we can see that the other printer used by respondent was HP printer. HP is the most challenging competitor followed by Epson and Samsung. These other printers includes All in one as well as inkjet and laser printers. 5. Comparison with other printer used Better 35 Good 64 Equivalent 56 Inferior 23 TOTAL 178 Table No.4.5 29
  30. 30. Graph No. 4.5 Interpretation: 56% of the respondents rated Canon printer good in comparison with the other printers which they were using. This shows that Canon printers have edge over other printers which the respondent is using 13% found it to be inferior to their other printer. 6. Number of Prints Less than 10 18 10% 10-20 27 15% 20-50 43 24% 50-100 75 42% More than 100 15 9% TOTAL 178 100% Table No. 4.6 30
  31. 31. Graph No. 4.5 Interpretation: The graph shows that 51% of the respondents have printing load more than 50 pages per day. This is a sizable amount of print load, so they have to use more than one printer. 7.Rated Importance OR priority of respondents 31
  32. 32. Graph No.4.7 Interpretation: The most important aspect while buying a printer is its price and quality. So mostly all the respondents have given most importance to price, quality and maintenance cost. Technology and availability of the printers had a mixed response but majority were neutral to the importance of it. But after sales services accounted for important attribute to look for while buying a printer. Company name also had an influence in decision of the respondents. While the printing speed of the printer did not had much of importance given to by the respondents. 8. Features preferred while buying Canon printer Quality 152 85% 32
  33. 33. price 132 74% Usage 56 31% Maintenance cost 84 47% Availiability 67 38% Technological Excellence 118 66% After Sales services 139 78% Easy to use 90 51% Printing speed 89 50% Anti Jam 63 35% s Interpretation: Above graph shows that the nearly all the respondents have given importance to quality aspect of Canon printer while buying. Also Canon is known for its onsite service so respondents have rated after sales service as second most important aspect. Technological excellence of Canon printers have given them the share of priority among the respondents. Price of the printer and the maintenance cost are also the other aspects which have importance than other aspects. 9. Satisfaction level of Customers 33
  34. 34. Interpretation: Customer are Satisfied with the price of the printer, but also many respondents are neutral as well as dissatisfied, this is because of the low prices of Samsung and Epson printers. Most of the respondents were satisfied and highly satisfied with the quality of printer. This again authenticates that the quality of Canon printers is best. The dissatisfying aspect was the Maintenance cost, respondents were highly dissatisfied and dissatisfied with the consumable cost of Canon printers. 34
  35. 35. Regarding the availability and ease of using the printer respondents gave a mixed response and were satisfied with it. Yes 49 10. Respondents who had a problem with the No 129 printer. Interpretation: Among all the respondents 28% of them had some functional problem with their printer. Most of the respondents were using a printer more than 6 months. So this shows that the problems do occur with the printer after using it for a period of time. 35
  36. 36. 11. Respondents who informed to the service center about it. Yes 36 No 13 Interpretation: 69% of the respondents have informed to the service center about their problem. Still this figure is small because respondents have tried to sort out their problem through other sources available in the market. 36
  37. 37. 12. Respondents who got Onsite warranty. Yes 26 No 10 TOTAL 36 Interpretation: 28% of the respondents did not get the onsite service. This is a sizable portion of the respondents. This is one of the major issues which needs to be worked out and improved upon. And is also one of the major region of dissatisfaction. 37
  38. 38. 13. Respondents who got a solution to their problem. Yes 41 No 8 TOTAL 49 Interpretation: Above graph shows that customers got a solution to their problem irrespective of their source of repairing. 38
  39. 39. 14. Respondents who said problem was repeated. Yes 3 No 46 TOTAL 49 Interpretation: 3 respondents reported that the problem resurfaced after some time. So we can say that the break down period is less. 39
  40. 40. 15. Respondents who said other problem occurred after the service. Yes 3 No 46 TOTAL 49 Interpretation: The response given indicate that still after the service problems occur. Either the same problem occurs or the new problem takes place. These problems should not occur. This shows that After sales service is not up to the mark. 40
  41. 41. 16. Satisfaction level of After sales services. Highly 2 dissatisfied dissatisfied 10 Neutral 9 Satisfied 14 Delighted 1 TOTAL 36 41
  42. 42. Interpretation: Graph clearly shows that the respondents who had a problem and approached service center for it, are dissatisfied with the service received. 14 were satisfied and one was delighted. But the neutral, dissatisfied and highly dissatisfied part is a major one, so it is a area of concern for Canon. And needs to be worked on. 17. Repeat Purchase of Canon printers. Yes 102 No 76 TOTAL 178 42
  43. 43. Interpretation: 57% Respondents said they will buy the printer again ,but remaining were not willing to buy the same. It may be because of after sales received were not upto their expectation, and the high consumable costs. 18. Respondents who will tell others to buy. Yes 105 No 73 TOTAL 178 43
  44. 44. Interpretation: 41% have responded that they will not tell others to buy the same printer. This shows that those who are using the Canon printers are not confident enough to tell others to buy. This is because of the high cost of consumables. Maintenance cost tends to go a higher scale for Canon printers. 44
  45. 45. Chapter no. 5 fIndInGS and SuGGeStIonS 5.1 Main findings:- • Customer who are using Canon printers are totally satisfied with the ‘Quality’ of the product. On product front Canon printers are excellent, and many respondents have rated it better than other competitors. 45
  46. 46. • While buying a printer customers prefer price as well as quality. Maintenance cost is also having importance, because it includes the consumables like toner, cartridge which are consumed more and needs to be purchased more often. Printer is a one time investment and the consumables are used more often so customer do give importance to it. • Customers buy Canon printers because of its quality, after sales services, technology so the customers have preferred the same aspects where Canon have its strength. • Considering the Technological aspect, Canon printers have Tier-I technology, they have the edge of technology over other competitors. They are the technology innovators. But this fact of superior technology is not communicated to the customer who are using the printer. • Respondents have a good image of the company, as company is well known and have their dominance in the Xerox industry. They are the market leaders and technology innovators. So Canon have a good image in the market. • Customers were not satisfied with the running cost or the consumable cost of the product. They had to spend more on the cartridge and the toners. This was because the prices of Epson and HP Consumables are less as compared to the Canon consumables. But the Ink contents of all the cartridge is different. Canon have more ml capacity per cartridge, than the other cartridges in the market. So the initial cost goes around three times the other cartridges. • The dissatisfaction is with the after sales services of the company. 1-2 years onsite warranty is the USP of Canon printers. But customers have to call more often to get it done. So many a times customers themselves have to take the printers to the service center rendering the onsite warranty futile. 46
  47. 47. 5.2 Suggestions: • Problem: Lack of customer awareness Customers should be made aware about the technological aspects of Canon printers. For that purpose the sales person, distributor, dealers needs to be educated on the product front and should be made aware of each and aspects which needs to be communicated to the customers. There is a need to arrange more campaigns like “Print City” to educate the dealers about the technicality and make them thorough with the product. • Problem: High running cost. Consumables have more running cost. Consumables includes ink cartridges, toner, their repurchase cost. There is a need to make customer aware and convince them to buy original ink cartridges and toners. They should be made aware about the advantages of using original ink. But at the same time Canon should focus on making the consumables available at an affordable price lower than the existing one. • Problem: After sale services The services provided by the service center does not meet the expectations of the customers. So to improve it company should make their product partners “United Peripherals” and consumable partners “Lynxsis computers” to supervise the working of service center. Company should give the ownership of service center to some sources and supervise the proceedings. 47
  48. 48. Chapter no. 6 ConCluSIon 48
  49. 49. Conclusion: • The study of customer satisfaction gave areas where the company lacked and was not to the expectations of the customers. This surely would help the company to identify the pitfalls and to improve in the future. • The purpose of conducting the survey was to self identify the loopholes. This purpose was served with the study. The findings were satisfactory and helped o conclude the problem. • After sales service of the company was found to be feeble. This was a reason for the dissatisfaction of the customers. 49
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  51. 51. Chapter no. 7 BIBlIoGraphy 51
  52. 52. BIBLIOGRAPHY: Books and Journals referred: 1 . Marketing Management by Philip Kotler. 2. Research Methodology by R.M Kothari Websites referred: 1. 2. 3. 52