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A comparative study on customer satisfaction

A comparative study on customer satisfaction

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A comparative study on customer satisfaction Document Transcript

  • 1. MANAGEMENT THESIS FINAL REPORT “A comparative study on customer satisfaction with respect to services provided by Maruthi Suzuki India Ltd. and Tata Motors in Hassan City” Submitted to: Mrs Bhavani BS Faculty In-charge, INC Hassan. Submitted by: Jaya Prakash DC 7NBHS013 INC Hassan 1
  • 2. 2
  • 3. CERTIFICATE This is to certify that the thesis entitled “A comparative study on customer satisfaction with respect to services provided by Maruthi Suzuki India Ltd.and Tata motors in Hassan city” submitted by Jaya Prakash DC in partial fulfillment of the requirements for the award of degree of Master of Business Administration is a record of bonafide research work carried out by him during the period of his study in this college, under my guidance and supervision and the thesis has not previously formed the basis for the award of any degree, diploma, associateship, fellowship or other similar titles. Hassan 17th oct, 2008 3
  • 4. Acknowledgement I avail this opportunity to express my deep sense of gratitude and warm regards to head of Maruthi Suzuki India Ltd Mr Ashokan for his constant support and advice.. Without his support my work could not have been realized. I feel honored to express my deep sense of gratitude to Mr.Raghunandan,Head of Tata motors showroom in Hassan city for his constant support and advice It is my pleasure to acknowledge for the critical suggestions and information given by users of maruthi and Tata vehicle that fuelled me energy in each and every step of my journey. I will be erring in great if I do not acknowledge sincere thanks to our beloved center head Maj (Rtd)CU Monnappa for the valuable help, suggestions and inspiring guidance. Ever cherishing, never bothering and his very basic attitude served as a drive, which forced me to foresee things beyond my limit. I feel honored to express my deep sense of gratitude to my faculty supervisor Mrs Bhavani BS for the constructive criticism, suggestions and expert advice during the period of research. I take pleasure in expressing gratitude to my parents and affectionate brother for their needful help, love and affection I owe special thanks to my friends for the invaluable timely help Hassan 14th Oct 2008 Jaya Prakash DC 4
  • 5. Declaration I Jaya Prakash DC, hereby declare that this Management thesis- I work entitled “A comparative study on customer satisfaction with respect to services provided by Maruthi Suzuki India Ltd.and Tata motors in Hassan city”” is my work, carried out under the guidance of my faculty Supervisor Mrs Bhavani BS. Date: October 17, 2008. Name: Jaya Prakash DC 5
  • 6. Table of Contents Chapter 1 : Introduction: Overview of the topic Need for research Objectives Limitations Methodology Chapter 2 : Sector profile Introduction Investment in auto sector Chapter 3 : Company profile Tata motors Maruthi Suzuki Chapter 4 : Data analysis and interpretation Chapter 5 : Findings and suggestions Chapter 6 : Conclusion Chapter 7 : Annexure 6
  • 7. INTRODUCTION  OVERVIEW OF THE TOPIC  NEED FOR RESEARCH  OBJECTIVES  METHODOLOGY  LIMITATIONS 7
  • 8. Overview of the topic and its importance: In my Management Thesis, I analyse the services provided by Maruthi Suzuki india Ltd. in comparison with Tata motors in Hassan City based on customer perception Both outlets have got their own brand image and customers. Through the service which they are providing to their customers we can know how both are competing. Need for Research: As we all know automotive sector is challenging industry, by providing the different services to their regular customers they can build the customer relationship and increase their business. Also need to study the period from when they are using their products in Hassan city and features offered by them like comfort, safety, space, maintainence, offers and discounts and brand loyalty. I want to know what the current services are provided by Maruthi Suzuki india Ltd. and Tata motors in Hassan City OBJECTIVES • To know what are the different services provided to the customers of Hassan. • To know the perception of customers towards Maruthi and Tata motors in Hassan • To know whether the customer is satisfied with the services provided. • To know whether people preference varies with the services provided. • To know about the marketing strategies adopted by them. • To know whether they are successful in attracting the customers by marketing services adopted by them. 8
  • 9. • To study the infrastructure of both the outlets. • To study the financial assistance of Maruthi and Tata motors to its customers. • To study the brand loyalty of customers towards both outlets. • To study whether automotive sector is having more scope in Hassan. LIMITATIONS: • The response from the customer may be biased. • Since the sample size is limited, it may lead to the partial true factor about the research. • Time constraint • Area limitation • Sampling error while collecting, coding and decoding. METHODOLOGY 9
  • 10. The objective of the present study can be accomplished by conducting a systematic market research. As marketing research is a systematic and formalized process, it follows a certain sequence of research actions. • Formulating the problem and developing objectives of research Problem formulation based on hypothesis.The objective of research is to collect relevant information from the targeted sample and use that for further study. Hypothesis Null Hypothesis: Hassan customers are not satisfied with the services provided by maruthi rather than tata motors Alternate Hypothesis: Hassan customers are more satisfied with the services provided by maruthi rather than tata motors • Designing the research plan The design of the research plan determines the tools and techniques that are employed for conducting marketing research. The present study involves descriptive research as the problem is clearly defined • Sources of data Data for a research can be collected from two sources • Primary data • Secondary data Primary data is first hand data collected from respondents. collect information regarding different services provided by outlet from individual customer using questionnaire.Secondary data is collected from already available sources like published papers, journals, magazines etc... Collect secondary data regarding what are the other services they can provide to customers. • Data collection techniques Primary data is collected by surveying the sampling units or the elements of the sampling units. Survey will be conducted with the use of structured questionnaire. The questionnaires will contain both open-ended and close-ended questions. 10
  • 11. • Sampling plan Interview 120 customers (60 of each outlet) through the questionnaire to Know what kinds of services outlets currently providing. Sample will be selected from the population of Hassan using the Simple Random Method Questionnaire will be prepared and used, which meets the requirements of project title for conducting survey .Survey will be conducted through Personal Interview. • Analyze the collected information This involves converting raw data into useful information. It involves tabulation of data and using statistical measures on them for developing frequency distributions and calculating the averages and dispersions • Report research findings This phase will mark the culmination of the marketing research effort. The report with the research findings is a formal written document. The research findings and personal experience will be used to propose recommendations 11
  • 12. SECTOR PROFILE  INTRODUCTION  INVESTMENT IN AUTO SECTOR Automotive sector India is emerging as one of the most attractive automotive markets in the world, and is poised to become a key sourcing base for auto components. The automotive sector offers significant employment opportunities. It employs 0.45 million people directly and around 10 million people indirectly. The automobile industry had a growth of 15.4 % during April-January 2007, with the average annual growth of 10-15% over the last decade or so. 12
  • 13. The Indian automobile industry is going through a technological change where each firm is engaged in changing its processes and technologies to sustain the competitive advantage and provide customers with the optimized products and services. Starting from the two wheelers, trucks, and tractors to the multi utility vehicles, commercial vehicles and the luxury vehicles, the Indian automobile industry has achieved tremendous amount of success in the recent years.The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj Motors, Ashok Leyland, Hero motors Mahindra & Mahindra have been dominating the vehicle industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda India Private Ltd., Honda Siel Cars India Ltd. have also entered the market and have catered to the customers’ needs to a large extent Investment in auto sector 13
  • 14. Nearly every automobile company is investing at a higher rate than ever before to achieve a high growth trajectory. The overall investment in the sector has been increasing quite rapidly. It is expected that by the end of 2010 Indian automobile sector will be investing a huge amount as Rs. 30,000 crores. For example, tvs motors have plans of investing Rs. 250crores; the Tata Motors is coming up with more investmen t of Rs. 2,000 crores in its compact car project. Not only the Indian companies but also foreign players like Hyundai are coming up with the investment of more than Rs. 3,800 crores in India. According to the Society of Indian Automobile Manufactures (SIAM) automobile exports in the last five years are as follows: The market shares of the segments of the automobile industry 14
  • 15. COMPANY PROFILE  INTRODUCTION TO TATA MOTORS  INTRODUTION TO MARUTHI SUZUKI 15
  • 16. COMPANY PROFILE(TATA MOTORS) Founded : 1945 Founder : JRD Tata Head quarters : Mumbai,India Key people : Ratan Tata,Chairman Products : Automobile and engines Parent : Tata group Subsidiaries : Jaguar cars,Land Rover,Tata Daewoo Tata motors Ltd. formerly known as TELCO(Tata Engineering and Locomotive Company) is India’s largest passenger automobile and commercial vehicle manufacturing company.The company manufactured its first commercial vehicle in 1954 in collaborationwith Daimler Benz AG,which ended in 1969. Tata motors has its manufacturing base in Jamshedpur,Pantnagar,Lucknow,Pune and Singur. Tata motors ( Hassan) Show room : Auto matrix 16
  • 17. Location : Thaneer Halla Head : Raghunandan No. of employees : 40 Delivery time : 4 weeks after booking Service station : one COMPANY PROFILE(MARUTHI SUZUKI INDIA Ltd.) Founded : 1981 Head quarters : Haryana,India Key people : Shinzo Nakanishi,CEO Jagadish Khattar,MD Products : Automobile and engines Parent : Suzuki Maruthi Suzuki India Ltd. is a leading four wheeler automobile manufacturer in South Asia. Suzuki motor corporation of Japan holds a majority stake in the company.It was the first company in India to mass produce and sell more than a million cars.It is largely credited for having brought in an automobile revolution to India.On September 2007,Maruthi udyog was renamed to maruthi Suzuki India ltd. 17
  • 18. MISSION To develop life time relationship with our customers by ensuring outstanding purchase experience and to provide safe, reliable and responsive after sales services. VISION To achieve market leadership, to provide security to the company and its employees while maximizing return on investments of our shareholders. Maruthi Suzuki (Hassan) Show room : Venkat motors Location : Thaneer Halla Head : Ashokan No. of employees : 45 Delivery time : Depend on model Service station : one 18
  • 19. 19
  • 20. Income per Number of % month Respondents (100) 5,000 – 10,000 5 5% 10,000-15,000 25 25% 15,000-20,000 34 34% 20,000 & above 36 36% ANALYSIS AND INTERPRETATIONS Table 1: Respondents with different income group 20
  • 21. Interpretation 1 Interpretation: Table 1 is a tabulation of the respondents with different income group.Of 100 respondents, 5% are in income category(5,000-10,000),25% are in income category(10,000-15,000),34% are in income category(15,000-20,000)36% are In income category(20,000 & above) (2)Which company vehicle do you have? (a) Tata motors (b) Maruthi (c) others Preference Maruthi Tata 60% 40% 21
  • 22. Interpretation 2 Interpretation: Table 2 is a tabulation of the respondents with preference towards maruthi and tata.60% of respondents prefer maruthi and 40% of surveyed respondents prefer tata. (3) From how many years do have this vehicle? (a) 2 to 5 yrs (b) 5 to 10 yrs (c) 10 to 15 yrs 22
  • 23. Usage Maruthi Tata 2 to 5 yrs 52% 39% 5 to 10 yrs 38% 61% 10 to 15 yrs 10% 0% c Interpretation 3 Interpretation: Table 3 shows that 52% of the surveyed respondents using maruthi from 2 to 5 years ,38% from 5 to 10 years ,10% from 10 to 15 years Table 3 shows that 39% of the surveyed respondents using maruthi from 2 to 5 years ,61%% from 5 to 10 years and no one from 10 to 15 years (4)What version of vehicle do you have? (a) Petrol version (b) Diesel version (c) Petrol with LPG kit Version Maruthi Tata 23
  • 24. Petrol version 54% 19% Diesel Version 26% 69% Petrol with LPG kit 20% 12% Interpretation 4 Maruthi :Out of 100 respondants surveyed ,54% are having petrol version,26% using diesel version and 20% using petrol with LPG kit Tata:Out of 100 respondants surveyed ,19% are having petrol version,69% using diesel version and 12% using petrol with LPG kit (5) For what do you make use of this vehicle? (a) Commercial purpose (b) Personal purpose (c) Both Purpose Maruthi Tata Personal purpose 82% 22% Commercial purpose 12% 67% Both 6% 11% 24
  • 25. Interpretation 5 Maruthi :Out of 100 respondants surveyed ,82% are using maruthi for personal purpose, 12% using for commercial purpose and 6% using for both.version, Tata: Out of 100 respondants surveyed ,22% are using Tata for personal purpose, 67% using for commercial purpose and 11% using for both.version, (6) How often you get your vehicle serviced? (a) 3 months (b) 6 months (c) 1 year Service Maruthi Tata 25
  • 26. 3 months 57% 36% 6 months 33% 52% 1 year 10% 12% Interpretation 6 Maruthi :Out of 100 respondants surveyed ,57% are using maruthi from 3 months, 33% using from 6 months and 10% using from 1 year, Tata: Out of 100 respondants surveyed ,36% are using Tata from 3 months, 52% using from 6 months and 12% using from 1 year, (7) How about interaction of sales person with you? (a)Excellent (b) Good (c) Fair (d) Poor Sales person interaction Maruthi Tata Excellent 39% 31% 26
  • 27. Good 49% 53% Fair 12% 16% Poor 0% 0% Interpretation 7 Maruthi :Out of 100 respondants surveyed ,39% of respondents are highly satisfied with the interaction of sales person,49% are moderately satisfied ,12% are satisfied and no one with dissatisfied with the sales person interaction. Tata: Out of 100 respondants surveyed ,31% of respondents are highly satisfied with the interaction of sales person,53% are moderately satisfied ,16% are satisfied and no one with dissatisfied with the sales person interaction. (8) Are you satisfied with your vehicle? (a) Yes (b) No Satisfaction level Maruthi Tata 27
  • 28. Yes 89% 67% No 11% 33% Interpretation 8 Maruthi :Out of 100 respondants surveyed ,89% of respondents are highly satisfied with the vehicle and 11% seems to be dissatisfied. Tata: Out of 100 respondants surveyed ,67% of respondents are highly satisfied with the vehicle and 33% seems to be dissatisfied. (9) Can you rate the satisfaction level with respect to features? Features Excellent Good Fair Fuel efficiency Durability Style 28
  • 29. Others Fuel efficiency Maruthi Tata Excellent 53% 41% Good 37% 33% Fair 10% 26% Interpretation 9 Maruthi :Out of 100 respondants surveyed ,53% of respondents are of the opinion that fuel efficiency of maruthi vehicle is excellent,37% as good and only about 10% showing it as fair. Tata: Out of 100 respondants surveyed ,41% of respondents are of the opinion that fuel efficiency of maruthi vehicle is excellent,33% as good and only about 26% showing it as fair. Durability Maruthi Tata Excellent 51% 41% Good 48% 39% Fair 11% 20% 29
  • 30. Interpretation 10 Maruthi :Out of 100 respondants surveyed ,51% of respondents are of the opinion that durability of maruthi vehicle is excellent,48% as good and only about 11% showing it as fair. Tata: Out of 100 respondants surveyed ,41% of respondents are of the opinion that durability of tata vehicle is excellent,39% as good and only about 20% showing it as fair. Style Maruthi Tata Excellent 44% 32% Good 53% 44% Fair 3% 24% 30
  • 31. Interpretation 11 Maruthi :Out of 100 respondants surveyed ,44% of respondents are of the opinion that style of maruthi vehicle is excellent,53% as good and only about 3% showing it as fair. Tata: Out of 100 respondants surveyed ,32% of respondents are of the opinion that style of tata vehicle is excellent,44% as good and only about 24% showing it as fair. (12) Given the option to purchase a new vehicle, which company you opt? (a) Tata (b) Maruthi (c) others 31
  • 32. Preference Respondents Maruhi 58% Tata 23% Others 19% Interpretation 12 Out of 100 respondants surveyed ,58% of respondents prefer maruthi given the option,24% will go for tata and rest 19% for other vehicles.. (13) How much time it took for you to get your vehicle after booking? (a)1 month (b)3 months (c)6 months 32
  • 33. Vehicle after booking Maruthi Tata 1 month 12% 53% 3 month 57% 37% 6 month 31% 10% Interpretation 13 Maruthi :Out of 100 respondants surveyed ,12% of respondents using maruthi from 1 month,57% from 3 months and 31% from 6 months. Tata:Out of 100 respondants surveyed ,53% of respondents using maruthi from 1 month7% from 3 months and 10% from 6 months. (14) Are you satisfied with the offers provided to purchase the vehicles? (a) yes (b) No 33
  • 34. Offers Maruthi Tata Yes 63% 41% No 37% 59% Interpretation 14 Maruthi :Out of 100 respondants surveyed ,63% of respondents are satisfied with the offers provided by maruthi Tata: Out of 100 respondants surveyed ,41% of respondents are satisfied with the offers provided by Tata (13) Are you satisfied with the number of service stations in Hassan city? (a) Yes (b) No 34
  • 35. Service stations Maruthi Tata Yes 61% 30% No 39% 70% Interpretation 15 Maruthi :Out of 100 respondants surveyed ,61% of respondents are satisfied with the service stations of maruthi Tata: Out of 100 respondants surveyed ,30% of respondents are satisfied with the service stations 0f Tata (16) How you got to know about this showroom? (a) Television (b) News paper (c) word of mouth 35
  • 36. Information Maruthi Tata Television 52% 49% News paper 32% 38% Word of mouth 16% 13% Interpretation 16 Maruthi :Out of 100 respondants surveyed ,52% of respondents got to know about maruthi by television,32% by means of newspaper and remaining 16% by means of word of mouth. Tata: Out of 100 respondants surveyed ,49% of respondents got to know about maruthi by television,38% by means of newspaper and remaining 13% by means of word of mouth. (17) Have you ever felt that the services assured to your vehicle during purchase time are not fulfilled after you bought? (a) Yes (b) No Service fulfillment Maruthi Tata Yes 11% 13% 36
  • 37. No 89% 87% Interpretation 17 Maruthi :Out of 100 respondants surveyed ,89% of respondents are of the opinion that services assured to the vehicle during purchase time are fulfilled after purchase. Tata: Out of 100 respondants surveyed , 87% of respondents are of the opinion that services assured to the vehicle during purchase time are fulfilled after purchase (18) Are you satisfied with the EMI provided to your vehicle? (a) Yes (b) No EMI Maruthi Tata 37
  • 38. Yes 77% 83% No 33% 17% Interpretation 18 Maruthi :Out of 100 respondants surveyed ,77% of respondents are satisfied with the EMI options of maruthi Tata: Out of 100 respondants surveyed , 83% of respondents are satisfied with the EMI options of Tatasince most of the customers of tata use vehicle for commercial purpose. (19)Are you comfortable with the interest percentage for loan Option? (a)Yes (B) No 38
  • 39. Interest percentage Maruthi Tata Yes 36% 66% No 64% 44% Interpretation 19 Maruthi :Out of 100 respondants surveyed ,36% are comfortable with the interest percentage for loan Option . Tata: Out of 100 respondants surveyed , 66% of respondents are comfortable with the interest percentage for loan Option of Tata since most of the customers of tata use vehicle for commercial purpose (20)Who influenced you to buy this vehicle? (a )Motive 39
  • 40. (b) Friends (c) Advertisements (d)The person who is already using this vehicle Influence Respondents Motive 13% Friends 44% Advertisements 33% The person already using the 10% vehicle Interpretation 20 Out of 100 respondants surveyed ,13% of respondents purchase the vehicle because of personal motive and 44% by friends 33% by advertisements and 10% by the influence of the person who is already using the. (21)How you feel about the after sales services offered? (a) Highly satisfied (b) satisfied (c) Not satisfied 40
  • 41. After sales services Maruthi Tata Highly satisfied 44% 39% Satisfied 33% 40% Not satisfied 23% 21% Interpretation 21 Maruthi :Out of 100 respondants surveyed ,44% are highly satisfied with the after sales services offered by maruthi,33% seems to be satisfied and only 23% are not satisfied with the after sales services of maruthi. . Tata: Out of 100 respondants surveyed ,39% are highly satisfied with the after sales services offered by tatai,40% seems to be satisfied and only 21% are not satisfied with the after sales services of Tata. . FINDINGS: 41
  • 42. • Respondents in the income group of Rs 15,000 to Rs 20,000 and Rs 20,000 and above are using cars • Among the 100 respondents surveyed , 60% of them are owning maruthi when compared to tata motors. • 58% of the respondents prefer maruthi to tata due to following benefits as founded by the research • Better mileage • Novel style • Interiors and comfort • Long lasting durability • Efficient sales person interaction • Presence of well equipped service stations • Offers provided • Fulfillment of services assured during purchase Respondents preference to tata motors over maruthi because of following reasons • Tata vehicles are most suited for commercial purposes • Efficient EMI option • Faster delivery service 42
  • 43. In case of both the outlets,television acts as a effective promotion tool and next comes the motive of the customers. SUGGESTIONS: Maruthi • To come out with vehicles which can be used for commercial purpose • To come out with diesel version of vehicle in small car segment • To come out new and efficient EMI options • To fasten the process of delivery service • To come out with cars of LPG kit • To tie up with banks for efficient financial schemes • Support sales activities by understanding customers’ businesses • More emphasis should be given to government employees since they will receive fixed salary on monthly basis. CONCLUSION: According to the research it can be concluded that maruthi showroom has gained positive opinion of majority of the customers in comparison to Tata motors. It is mainly because of convenient options extended by the dealer of maruthi showroom and efficient models offered by the company apart from efficient sales personnel interaction. Maruthi has been in the first position in automotive sector since its inception and if it includes minor improvements, it will sustain its upper hand in forthcoming future. 43
  • 44. ANNEXURE  QUESTIONAIRE  REFERENCES 44
  • 45. QUESTIONAIRE Dear Sir/Madam I am conducting a survey on customer satisfaction towards Maruthi and Tata motors in Hassan city. I would be grateful to you if you could spare a few minutes of your valuable time to answer the following questions (1) Name (2) Age (3) Gender (4) Address (5) Phone No: (6) Salary (a) Rs 5,000/- to Rs 10,000/- (b) Rs 10,000/- to Rs 15,000/- (c) Rs 15,000/- to Rs 20,000/- 45
  • 46. (d)Rs 20,000/- and above (7)Which company vehicle do you have? (a) Tata motors (b) Maruthi (c) others (8)From how many years do have this vehicle? (a) 2 to 5 yrs (b) 5 to 10 yrs (c) 10 to 15 yrs (9)What version of vehicle do you have? (a) Petrol version (b) Diesel version (c) Petrol with LPG kit (10)For what do you make use of this vehicle? (a) Commercial purpose (b) Personal purpose (c) Both (11) How you purchased the vehicle? (a) cash (b) loan (12 ) How often you get your vehicle serviced? (a) 3 months (b) 6 months (c) 1 year (13) How about interaction of sales person with you? (a)Excellent (b) Good (c) Fair (d) Poor (14)Are you satisfied with your vehicle? (a) Yes (b) No (15)Can you rate the satisfaction level with respect to features? Features Excellent Good Fair Fuel efficiency Durability Style Others (16)Given the option to purchase a new vehicle, which company you opt? (a) Tata (b) Maruthi (c) others (17)How much time it took for you to get your vehicle after booking? (a)1 month (b)3 months (c)6 months (18)Are you satisfied with the offers provided to purchase the vehicles? 46
  • 47. (a) yes (b) No (19)Are you satisfied with the number of service stations in Hassan city? (a) Yes (b) No (20)How you got to know about this showroom? (a) Television (b) News paper (c) word of mouth (21)Have you ever felt that the services assured to your vehicle during purchase time are not fulfilled after you bought? (a) Yes (b) No (22)Are you satisfied with the EMI provided to your vehicle? (a) Yes (b) No (23)Are you comfortable with the interest percentage for loan Option? (a)Yes (B) No (24)Who influenced you to buy this vehicle? (a )Motive (b) Friends (c) Advertisements (d)The person who is already using this vehicle (24)How you feel about the after sales services offered? (a) Highly satisfied (b) satisfied (c) Not satisfied Thanks for your time. Cooperation and contribution towards the project Thank you 47
  • 48. REFERENCES WEBSITES www.google.com www.maruthi.com www.tata.com BOOKS Business Research Methods Quantitative aptitude Marketing management 48