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1.1 CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management (CRM) is an approach of managing company’s
interaction with current and future customers. It often involves using technology to organize,
automate, and synchronize sales, marketing, customer service, and technical support.
“CRM is concerned with the creation, development and enhancement of individualised
customer relationships with carefully targeted customers and customer groups resulting in
maximizing their total customer life-time value”.
CRM is “the development and maintenance of mutually beneficial long-term relationships
with strategically significant customers”.
CHARACTERISTICS:
CRM is a customer-oriented feature with service response based on customer input, one-to-
one solutions to customers' requirements, direct online communications with customer and
customer service centres that are intended to help customers solve their issues. It includes the
following functions:
 Sales force automation, which implements sales promotion analysis, automates the tracking
of a client's account history for repeated sales or future sales, and coordinates sales,
marketing, call centres, and retail outlets.
 Data warehouse technology, used to aggregate transaction information, to merge the
information with CRM products, and to provide key performance indicators.
 CRM systems that track and measure marketing campaigns over multiple networks,
tracking customer analysis by customer clicks and sales
ORIGIN OF CRM
Customer relationship management was originated in early 1970s. CRM came as a process
that dealt with relationships with customers surpassing the whole business.
As said by Father of management “The true business of every company is to make and keep
customers”
The changing business environment is characterized by economic liberalization, increasing
competition, high consumer choice, demanding customer, more emphasis on quality and
value of purchase etc. All these changes have made today’s producer shift from traditional
marketing to modern marketing. Modern marketing calls for more than developing a product,
pricing it, promoting it and making it accessible to target customer. It demands building trust,
a binding force and value added relationship with the customers. The process of developing a
cooperative and collaborative relationship between the buyer and seller is called customer
relationship management shortly called CRM.
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1.2 INTRODUCTION TO AUTOMOBILE INDUSTRY
Automobile, self-propelled vehicle used primarily on public roads but adaptable to other
surfaces. Automobiles changed the world during the 20th century, particularly in the United
States and other industrialized nations. From the growth of suburbs to the development of
elaborate road and highway systems, the so-called horseless carriage has forever altered the
modern landscape. The manufacture, sale, and servicing of automobiles have become key
elements of industrial economies. But along with greater mobility and job creation, the
automobile has brought noise and air pollution and automobile accidents rank among the
leading causes of death and injury throughout the world. But for better or worse, the 1900s
can be called the Age of the Automobile and cars will no doubt continue to shape our culture
and economy well into the 21st century. Automobiles are classified by size, style, number of
doors, and intended use. The typical automobile, also called a car, auto, motorcar, and
passenger car, has four wheels and can carry up to six people, including a driver. Larger
vehicles designed to carry more passengers are called vans, minivans, omnibuses, or buses.
Those used to carry cargo are called pickups or trucks, depending on their size and design.
Minivans are van-style vehicles built on a passenger car frame that can usually carry up to
eight passengers. Sport-utility vehicles, also known as SUVs, are more rugged than passenger
cars and are designed for driving in mud or snow.
In 2012 manufacturing plant in more than 25 countries produced 73.2 million passenger cars
.The automobile is built around an origin various systems supply the origin with fuel, cool it
daring operation, lubricate its moving parts and remove exhaust gases it creates. The origin
produces mechanical power that is transmitted to the automobile’s wheels through adverting
which includes a transmission. One or more dive shafts, a differential gear and axles.
Suspension system which includes sparing and shock absorbers, customs the ride and help
protect the vehicle from being damaged by bumps heavy loads and other series. Wheel and
tares support vehicles on the road way and when rotated by powered axles; propel the vehicle
forward or backward Steering speed. An electrical system starts and operates the engine
monitor and control many aspects of the vehicle operation and powers such components as
head light and radios. Safety features such as bumpers air bugs and seat bells help protect
occupants in an accident
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1.3 HISTORY OF AUTOMOBILE INDUSTRY
The history of the automobile actually began about 4100 years ago when the first wheel was
used to transportation in India. In the early 15th century Portuguese arrived in china and the
interaction of the two cultures leaded to variety of new technologies including the creation of
a wheel. By the 1600’s small steam powered engine models had been developed but it was
another century before a full sized engine powered vehicle was created. IN 1769 French
Army Officer Captain Nicolas joseph Cugsnot built what has been called the first automobile
cugnotsparel wheeler steam powered vehicle carried four people. Designed to move artillery
pieces. It has a top speed of a title more than 3.2km/h and had a stop every 20 minutes to
build up a fresh head of steam. As easily in 1801 successful but very heavy steam automobile
type introduced in England laws barred them from public road and forced their owners to run
them like train or private tracks their owners to run them like train or private tracks in 1802 a
steam powered coach designed by British Engineer. Richard Trethvick journed more than
160km from corn wall to London. Steam powered caught the attention of other vehicle
builders. In 1804, American inventor Oliver Evans built a steam powered car in 1828. British
inventor a valterHandcock build a series of steam carriages in the mid 1830’s thus were used
for the first omnibus service in London. By the mid 1800’s England had an extensive network
of coach line. Horse-drawn stagecoach companies and the new rail road companies pressured
the British parliament to approve heavy it’s on steam-powered road vehicles. The tolls
quickly drove a steam quickly drove a steam coach operators out of business.During the early
20th century steam cars were popular in the United states. Most famous was the Stanley
steamer, built by American Twin brothers Freelan and Francis Stanley.
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1.4 HYUNDAI MOTOR COMPANY
The Hyundai Motor Company is a South Korean multinational automaker headquartered
in Seoul, South Korea. The company was founded in 1967 and along with its 32.8% owned
subsidiary, Kia Motors, together comprise the Hyundai Motor Group, which is the world's
fifth largest automaker based on annual vehicle sales in 2012. In 2008, Hyundai Motor
(without Kia) was ranked as the eighth largest automaker. As of 2010, the Company sold
over 3.6 million vehicles worldwide. Hyundai operates the world's largest integrated
automobile manufacturing facility in Ulsan, South Korea, which has an annual production
capacity of 1.6 million units. The company employs about 75,000 people worldwide.
Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms.
1.5 VISION:
“Our Team provides value for your future”
1.6 MISSION:
To create exceptional automotive value for our customers by harmoniously blending safety,
quality and efficiency. With our diverse team, we will provide responsible stewardship to our
community and environment while achieving stability and security now and for future
generations.
1.7 HYUNDAI’S BRAND SLOGAN:
“NEW THINKING - NEW POSSIBILITIES”
A brand slogan embodies the essence of a brand, from its philosophy to its vision and
identity. Hyundai’s brand slogan -- “NEW THINKING. NEW POSSIBILITIES.” reflects
the will of Hyundai Motor Company to create new possibilities to benefit the world and its
people by encouraging and developing new thinking. All members of Hyundai have the brand
slogan deeply engraved in their hearts as they move forward in their effort to provide new
values and experiences desired by today’s customers through innovative ways that are unique
to the brand, driven by new thinking about customers and cars.
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1.8 QUALITY POLICY
 Top priority to customer satisfaction
The Company will provide only those products meeting relevant customer
requirements & international standards and accordingly satisfy every customer.
 Continuous improvement
The Company will make continuous quality improvements through unceasing R&D
efforts & new technologies and accordingly minimize the quality cost.
 Quality mind
The company will encourage each employee’s quality and accordingly accomplish the
error-free quality.
 Quality mind creation
The company will create such premium quality value that can lead the global
automatic transmission market.
1.9 NEED FOR THE STUDY
The biggest management challenge in the new millennium of liberalization and globalization
for a business is to serve and maintain good relationship with the king – the customer. In the
past producers took their customers for granted, because at that time the customers were not
demanding nor had alternative source of supply or suppliers. But today there is a radical
transformation.
The purpose of customer relation is not only for retaining the customers but also attracting
new customers and increasing the sales and also creating and maintenance of brand
awareness. It is a system for managing a company’s interactions with current and
future customers using technology to organize, automate and
synchronize sales, marketing, customer service, and technical support. Customer perceptions
attitudes and views regarding the products and services, along with suggestions assume
greater importance in the light of new entries and potential competitors, this study is an
attempt that directs to facilitate the management in marketing their future decisions in
promoting and creating a good image in the society.
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• reduced costs, because the right things are being done (i.e., effective and efficient
operation)
• increased customer satisfaction, because they are getting exactly what they want (ie.
meeting and exceeding expectations)
• growth in numbers of customers
• highlighting poor operational processes
• long term profitability and sustainability
• A satisfied customer in 10 years will bring 100 more customers to the company.
• It costs 7 time more to attract a new customer than to serve an old one.
• 20% of the company’s loyal customers account for 80% of its revenues. (Pareto’s
principle).
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1. ArvindSaxena (2010) Director and Board member (marketing and sales), Hyundai Motor
India (HMIL) “No company in automobile sector can fight competition on price. Companies
need to have the right product, distribution, CRM and after sales service network to grow.
2. Peter C. Verhoef (2003) Scholars have questioned the “effectiveness of several customer
relationship management strategies”. The author investigates the differential effects of
customer relationship perceptions and relationship marketing instruments on customer
retention and customer share development over time. Customer relationship perceptions are
considered evaluations of relationship strength and a supplier’s offerings, and customer share
development is the change in customer share between two periods. The results show that
affective commitment and loyalty programs that provide economic incentives positively
affect both customer retention and customer share development, whereas direct mailings
influence customer share development.
3. Kumar, V. (2010), “Customer relationship management (CRM)” refers to building one-
to-one relationships with customers that can drive value for the firm. This manuscript
discusses proven CRM strategies that companies can use as means of effective customer
management (CM). The continuing evolution of CM is made possible by understanding the
interactive relationships that develop between firms and customers and among customers
themselves. Firms will increasingly be able to customize marketing messages to larger target
audiences on the basis of the customer's expected response and the customer's value to the
firm.
4. Michael Cusumano, Steve Kahl and Fernaando Suarez (2008) in their research paper
“A theory of services in product industries”, has concluded that in many product oriented
industries, services have become increasingly important. In case of automobiles, many
automakers generate the vast majority of their profits from a service activity closely tied to
their product activity. The automobile industry overall generates a large portion of its profits
from other product-related service activities such as insurance and repairs. The authors
argued that despite the seeming importance of services, there is not much theory to help
researchers or practitioners explain the 3 conditions under which services matter in product
industries.
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5.Steve Kahl and Fernaando Suarez (2008) in their research paper “Product, Process,
and Service: A New Industry Lifecycle Model”, has concluded that Existing models of
industry lifecycle evolution tend to focus on changes in the products and processes and
largely overlook the dynamics of services, but increasingly, the revenues of many firms are
becoming dominated by sales of services rather than products, or products sold with services
to gain competitive differentiation in markets marked by increasing product commoditization.
6.Abhijeet Singh (2011) Tata Motors uses a customer relationship management and dealer
management system (CRM-DMS) which integrates one of the largest applications in the
automobile industry, linking more than 1200 dealers across India.CRM DOS has helped Tata
Motors to improve its inventory management, tax calculation and pricing. This system has
also proved to be beneficial to dealers because it has reduced their working capital cost
7.E.W.T. Ngai, (2005) To review the “academic literature on customer relationship
management (CRM)”, provide a comprehensive bibliography and propose a method of
classifying that literature A range of online databases were searched to provide a
comprehensive listing of journal articles on CRM. Six hundred articles were identified and
reviewed for their direct relevance to CRM. Two hundred and five articles were subsequently
selected. Each of these articles was further reviewed and classified. The review and
classification process was independently verified. All papers were allocated to the main and
sub‐categories based on the major focus of each paper.
8.Gordon Fullerton (2006), “Putting relationship in CRM”, that JEEP, a division of Daimler
Chrysler Automobile Company, has served a classic example of CRM program that provides
a considerable value to both the customers and the firm by developing a program exclusively
for jeep owners and fostered a community that is highly effectively committed to the product,
the brand and the customers.
9.Kevin Keller (2012) Caterpillar has become a leading firm by maximizing the total
customer value with the help of effective CRM, best after sales service in the industry and
better trained dealer. This allows the firm to command a premium price of 10% to 20%
higher than competitors such as Volvo, Komatsu etc.
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10.Cabãu Liviu-Gabriel (2012) this article is considered to be a “landmark in both
academic and business area, regarding the Customer Relationship Management (CRM)”.
Based on previous research found in the literature, the paper aims to clarify the concept of
CRM. Critical research results are reflected in the formulated responses on the following
aspects of CRM: CRM context, CRM definition, CRM importance and objectives, CRM
failure and CRM research. Finally, the article presents the main findings and some
conclusions related to the current research.
11.Thomas Dotzel, Venkatesh Shankar and Leonard L Berry. (2013) this research
“evaluates the effect of customer relationship management (CRM)” on customer
knowledge and customer satisfaction. An analysis of archival data for a cross-section of U.S.
firms shows that the use of CRM applications is positively associated with improved
customer knowledge and improved customer satisfaction. This article also shows that gains in
customer knowledge are enhanced when firms share their customer-related information with
their supply chain partners.
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OBJECTIVES OF THE STUDY
The main objectives are to determine the current relationship management level of the
customers with all aspects in regard to “HYUNDAI Ltd.”.
Objectives in Detail:
1. To know the grievances among the customers about products &services, if any.
2. To identify different customers’ needs in regard to a Hyundai motor car’s services.
3. To identify what type of promotional strategy is suitable for the company to reach the
targeted customers.
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SCOPE OF THE STUDY
The scope of the study is to identify the customer relationship management levels towards
"Hyundai Limited". The study was conducted for a period of 8 weeks covering various
places in Jalandhar. Primary data was collected from customers. Secondary data was
collected from company manuals, magazines and websites and so on. The study gathers
information about the customer's relation maintaining in various full range of Hyundai
vehicles from EON (passenger car) to Santa Fe (SUV) level in regard to Quality of service,
safety Tips, fuel saving tips, driving tips etc. Customer care service and other values added
services provided by the company. It is aimed at enlightening the company about different
steps to be taken up to increase the share of Hyundai motor company limited with regard
other competitors and also to make the company to provide better customer services.
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RESEARCH METHODOLOGY
Project methodology is a way to systematically solve the research problem. It deals with the
objective of a research study, the method of defining the research problem, the type of data
collected, method used for data collecting and analyzing the data etc. The methodology
includes collection of primary and secondary data.
DATA COLLECTION:
1) Primary data: The primary data will be collection through structured questions and
also by directly interacting with the respondents. The questionnaire will be circulated
to the customer personally.
2) Secondary data: The source of secondary data includes:
 Books
 Magazine
 Company’s report and website.
 Internet
So, to give a proper and formal approach to our research study I used the sampling technique.
SAMPLING TECHNIQUE
The sampling technique that adapted to conduct the survey was ‘Random Sampling’ and the
area of the research was concentrated in the city of Jalandhar. The survey was conducted by
interacting with Hyundai owners at Hyundai service center.
Sample units:
The sampling units for the study include the owner of the Hyundai cars.
Sample size:
The sample or the size included for conducting the study is50 customers of Hyundai.
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Table 1: Table showing the number of people who possessed a car.
Possessing a car In numbers In percentage
Yes 50 77
No 15 23
Total 65 100
Analysis: Out of the 65 respondents 50 of them possessed a car and the rest of 15 didn’t
possess a car.
Chart 1:Table showing the number of people who possessed a car.
Interpretation: Majority of the respondent i.e. 77% of them were the owner of the car.
77%
23%
People Having Car
yes
no
14
60%
8%
18%
10% 4%
Source Of Awareness
Newspaper /Magazines
Social Media
Friends
Websites
Other
Table 2: Table showing the Source of Awareness.
Awareness In numbers In percentage
Newspaper/magazines 32 60
Social Media 03 8
Friends 11 18
Websites 02 10
Other 01 4
Total 50 100
Analysis: From the above table, 60% said that they became awareness through the
‘Newspaper/magazine’ advertisement , 18% said that they came to know about the Laxmi
Hyundai through friends and relatives ,8% said through ‘social media’ , 10% said it is
‘website’ and only ‘4%’ specified as others.
Chart 2: Chart showing the Source of Awareness
Interpretation: Majority of the respondent i.e. 60% found that the newspaper and magazine
advertisement has played a major role in creating awareness among the people.
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Table 3:Table showing how respondent find the Ambience of the showroom.
Ambience In numbers In percentage
Excellent 25 50
Good 15 30
Satisfactory 08 16
Poor 02 04
Very poor 0 0
Total 50 100
Analysis:50 % of respondent opting that the ambience of the showroom is “excellent”, 30%
of them found it “good”.16 % of them stated it to be “satisfactory” and very less 4% stated it
is “verypoor”.
Chart 3: Chart showing how respondent find the Ambience of this showroom.
Interpretation: Majority of the respondents stated that the ambience of the showroom is
"excellent" as stated by 50% of the customers which is a good indicator for the showroom.
50%
30%
16%
4% 0%
Ambience Of The Showroom
Excellent
Good
Satifactory
Poor
Very poor
16
18%
22%
56%
4% 0%
Staff Response
Very co-operative
Co-operative
Responsive
Non-Cooperative
Highly non-Cooperative
Table 4: Table showing the staff responsiveness towards the customer at showroom.
Staff response In numbers In percentage
Very Cooperative 09 18
Cooperative 11 22
Responsive 28 56
Non-cooperative 02 4
Highly non-Cooperative 00 00
Total 50 100
Analysis: The above table shows that, most of the customer i.e.18 % of them found the show
room staff to be “very cooperative” ,22% stated as“co-operative”, a major percentage i.e.
56% of them felt the staff is ‘responsive’ than cooperative (respond only when asked, without
having any personal initiation),4% of them rated the staff to be “non-cooperative” and none
of them rated as “highly non-cooperative”.
Chart 4: Chart showing the staff responsiveness towards the customer at showroom.
Interpretation: Majority of staff response is found to be "Responsive" rather than co-
operative. It seems Staff doesn't respond until asked for which may lead to negative impact
on the perception of the customers about this showroom.
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8%
17%
63%
8% 4%
Time Taken In Attending a Call
Very Quick
Quick
Resonable
Delayed
Very much Delayed
Table 5: Table showing the Time taken by receptionist in attending a customer call.
Time Taken In numbers In percentage
Very quick 4 8
Quick 08 17
Reasonable 31 63
Delayed 04 08
Very much Delayed 02 04
Total 50 100
Analysis: According to above table it shows that the 8% of the respondent stated it as “ very
quick”,17% of respondent stated it as “quick”, time taken is “reasonable” as stated by 63%
of the respondent 8% of them found it to be “delayed”, 4% said it is “ very much delayed “.
Chart 5: Table showing the Time taken by receptionist in attending a customer call
Interpretation: Time taken to provide the services required by the customers is considered
as "reasonable" by the most of the respondent (i.e. 63%).
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Table 6: Table showing the Sales executive role in explanation the features of car to
customer.
Explanation IN NUMBERS IN PERCENTAGE
Convincing 12 24
Satisfactory 18 36
Unless asked 20 40
Total 50 100
Analysis: Out of the 50 respondent , 24% of them felt the explanation to be
“convincing”,36% felt it as “ satisfactory “ and major percentage 40% felt it to be “ non-
convincing” .
Chart 6: Chart showing the Sales executive role in explaining the features of car to customer
Interpretation: Majority of the respondent i.e. 40% found the sales executive don’t explain
the entire feature unless asked by the customer.
24%
36%
40%
Sales Executive Performance
Convincing
Satisfactory
Unless asked
19
0% 2%
12%
18%
68%
Process Involved in Providing Financial
Facilities
very simple
Simple
Moderate
Complex
Very Complex
Table 7: Table showing the respondent opinion about the process involved in providing
financial facilities.
Processing procedure IN NUMBERS IN PERCENTAGE
Very simple 00 00
Simple 01 2
Moderate 6 12
Complex 9 18
Very Complex 34 68
Total 50 100
Analysis: According to the above table 68% of the respondent stated that “ process “
involved for financial facilities are “ very complex”,18% stated it to be “complex “,12% to be
“moderate” and Only 2% of them stated it to be “simple”.
Chart 7: Chart showing the respondent opinion about the process involved in providing
financial facilities.
Interpretation: Majority of the respondent i.e. 68% considered the process to be very
complex. . They didn’t find it to be very convenient and simple.
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12%
66%
22%
Availability Of Colors
Wide
Limited
Very few
Table 8: Table showing availability of Color variants for customer in the showroom.
Availability of colors In numbers In percentage
Wide 06 12
Limited 33 66
Very few 11 22
Total 50 100
Analysis: From the above table it can be understood that ‘limited range’ of colors is available
in this showroom as stated by 66% of the respondent, 12% stated that this showroom contains
‘wide colors” and 22% stated “very few range of color”.
Chart 8: Chart showing availability of Color variants for customer in the showroom.
Interpretation: Majority of the respondent i.e.66% stated that the availability of varied
colors in this showroom seems to be limited .It shows that customer is given a limited choice
in matter of color of the car.
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Table 9: Table showing respondent likelinessin suggesting to other friends & relatives.
Suggesting to friends In numbers In percentage
Yes 38 76
No 12 24
Total 50 100
Analysis: According to above table it shows that, 76% of the customers are very likely to
suggest this showroom to their friends / relatives. The 24% of the customers are reluctant to
suggest these showrooms to friends/relatives.
Chart 9: Chartshowing respondent likeliness in suggesting to other friends & relatives.
Interpretation: Majority of the respondents i.e. 76% are ready to suggest the car to other. It
is an indication of high satisfaction level andcustomers are happy with the service provided
by the showroom.
76%
24%
CustomerSuggesting To Other
yes
No
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Table 10: Table showing the reason for suggesting the showroom to others.
Reasons In numbers In percentage
Quick Service 12 24
Timely Response 9 18
Friendly Atmosphere 7 14
Trust Worthiness 19 38
Infrastructure 03 6
Total 50 100
Analysis: 38% of the respondents stated the reasons of “trust worthiness”,24% of the
respondents stated “ quick service” , 18% respondent stated “Timely response”, 14% state
friendly atmosphere and only 6% for infrastructure,
Chart 10: Chart showing the reason for suggesting the showroom to others.
Interpretation: Majority of the respondent i.e. 38% considered the trust worthiness to be the
reason for suggesting the showroom to other.
24%
18%
14%
38%
6%
Reason to Suggest Other
quick service
timely response
friendly atmosphere
trust wortiness
infrastructure
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Table 11: Table showing the customer opinion about the equipment’s efficiency in the
showroom for the purpose of maintenance of the cars.
Ability of showroom In numbers In percentage
Excellent 19 38
Good 06 12
Satisfactory 14 28
Poor 07 14
Very poor 04 8
Total 50 100
Analysis: 38% of the respondent rated it as excellent as compared to other showroom another
majority of respondents i.e. 28% of them stated it as “satisfactory”. 14% of the respondent
said it is “poor”. 12 % stated as “good” and only 8% stated “very poor”.
Chart 11: Chart showing the customer opinion about the equipment presence in the
showroom for the purpose of maintenance of the cars.
Interpretation: Out of 50 customers, Majority of customer stated thatthe showroom has
excellent equipment in maintaining the cars.
38%
12%
28%
14%
8%
Equipments efficiency
Excellent
Good
Satisfatory
Poor
Very Poor
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Table 12: Table showing any inconvenience felt by customer after leaving their car for
service.
Inconvenience felt In numbers In percentage
Never 33 66
Sometimes 18 34
Always 0 0
Total 50 100
Analysis: 66% of the respondent have “never” felt any inconvenience, whereas 34% have felt
“sometime” and none of them have felt “always”.
Chart 12: Chart showing any inconvenience felt by customer after leaving their car for
service.
.
Interpretation: As majority of 66% of respondent had positive attitude towards the customer
service of Laxmi Hyundai.
66%
34%
0%
Inconvenience Felt by Customer
Never
Sometimes
Always
25
Table 13: Table showing whether the customer had raised any complaints against the
problem faced by him/her to the management.
Complaint Raised In numbers In percentage
Yes 16 30
No 34 70
Total 50 100
Analysis: As 30% respondent say that they have raised some issue where as 70% of the
respondent says that they haven’t raised any issue till date.
Chart 13: Chart showing whether the customer had raised any complaint against the problem
faced by him/her to the management.
Interpretation: As majority of respondent i.e. 70% had replied that they never had to
approach the management for any problems.
30%
70%
Complaint Raised
Yes
No
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Table 14: Table showing reasons for complaining.
Issue Raised In numbers In percentage
Wrong communication by salesman 6 37
Actual bill exceeding the estimated bill 4 25
Fall in performance of the car after service 2 13
Delay in handling over the vehicles 3 19
Infrastructure 1 6
Total 16 100
Analysis : As 37% respondent replied that the issue/problem faced by them was the wrong
communication by the salesman, whereas 25% of respondent replied that their actual bill
exceeded the estimated bill,13% replied fall in performance of the car after service,19%
stated delay in handling over the vehicles and 6% had issue on infrastructure.
Chart 14: Chart showing reasons for complaining.
Interpretation: As majority 37% respondent had problem on wrong communication by sales
man.
37%
25%
13%
19%
6%
Issue of Complaint Raised By Respondent
Wrong communication by
salesman
Actual bill exceeding the
estimated bill
Fall in performance of the car
after service
Delay in handling over the
vehicles
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Table 15: Table showing whether the problem was cleared by the management or not.
Complaint solved In numbers In percentage
Yes 13 81
No 3 19
Total 16 100
Analysis:Maximum percentage of respondent i.e. 81% replied that there problem were
solved by the management ,whereasthe rest 19% stated that their problem were not taken
care by the management.
Chart 15: Chart showing whether the problem was cleared by the management or not.
Interpretation: As majority of respondent (81%) were satisfied with the management, as
their problem were taken good care by the Laxmi Hyundai management.
81%
19%
Problem Solved by Management
yes
NA
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Table 16: Table showing duration to solve the issue by the management.
Duration to solve the issue In numbers In percentage
Within few hours 6 46
Within 1 day 3 23
With 1 week 2 15
More than 1 week 1 8
More than 2 week 1 8
Total 13 100
Analysis :As 46% respondent replied that their issue were solved with in few hours by the
management but rest 23% replied within 1 day,15% replied with in 1 week,8% replied more
than 1 week and 8 % more than 2 week for their problem to be solved by the management.
Charts 16: : Table showing duration to solve the issue by the management.
Interpretation: As majority 46% respondent had positive response for their issue which was
send to the management. As their complaints where replied with in 1 hour after their
complaint being registered. This was due to good CRM techniques used by Laxmi Hyundai
to face and handle complaints.
46%
23%
15%
8%
8%
Timetaken to Solve the Issue
within 1 hour
within 1 day
within 1 week
more than 1 week
more than 2 week
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6%
20%
58%
10% 6%
After Sales Service
Excellent
Good
Satisfactory
poor
very poor
Table 17: Table showing how the customers rate the service after sale.
After sales service In numbers In percentage
Excellent 3 6
Good 10 20
Satisfactory 29 58
Poor 05 10
Very Poor 03 6
Total 100 100
Analysis: 58% of the respondents stated the “after sales service” to be satisfactory. This
shows that the after sales service in not such effective as stated by the respondents, 20% of
the respondents said that was “good”, only 6% as excellent and almost 6% found it to be
“poor” and “very poor”.
Chart 17: Chart showing how the customer rates the service after sale.
Interpretation :The "after sales service" is stated by most i.e. 58% as "satisfactory" and a
very few stated it as "excellent" and "good".
30
Table 18: Table showing regarding overall all experience of the customer with this
showroom.
Overall experience In numbers In percentage
Excellent 17 34
Good 10 20
Satisfactory 13 26
poor 7 14
Very poor 3 6
Total 50 100
Analysis: Out of the respondents, 34% have stated their experience as “excellent”, 20% as
“good”, 26% as “satisfactory”. 14% have stated it as “poor” and only 6% stated it as”very
poor”. This shows that on the whole customers are just “satisfied” with the services offered
at this showroom.
Chart 18: Chart showing regarding overall all experience of the customer with this
showroom.
Interpretation: The overall experience of the customer is found to be "excellent" as state by
34% of the respondents.
34%
20%
26%
14%
6%
Overall Experience
Excellent
Good
Satisfactory
poor
Very poor
31
FINDINGS
From the responses of 50 customers the findings can be listed as:
1. It has been found that the newspaper and magazine are the major source of awareness
about the dealer.
2. The ambience of the showroomis "excellent" as stated by most of the customers. This is
a good indicator for the showroom.
3. The staff response is found to be "Responsive" rather than co-operative. It seems "Staff"
doesn't respond until asked for. This may lead negative impact on the perception of the
customers about this showroom.
4. Time taken to attend the customercall is considered as "reasonable" by the most of the
respondent.
5. It seems most of the customers found the "sales executive explanation" just
"Satisfactory" than "Convincing". Few (20 out of 50) even stated that sales executives
don't explain all the features unless asked.
6. The process involved in providing financial facilities is considered as (68% of
respondents) as very complex & time consuming. They don't find it very convenient.
7. As most of the customer states that the “after sales service" provided by the showroom
is just “satisfactory" therefore the company needs to be consider this issue seriously in
order to satisfy more customer in near future.
8. The availability of varied colors in this showroom seems to be very limited as stated by
most of respondents. It shows that customer is given a limited choice in matter of color
of the car.
9. As much as 76% of respondent have stated that they are very likely to suggest this
showroom to their friendsrelatives. . It is an indication of high satisfaction level and
customers are happy with the service provided by the showroom.
10. As most of the respondent i.e. 38% considered the trust worthiness to be the reason for
suggesting the showroom to other.
11. Most of respondent stated that the equipment used for the maintaining the vehicles was
excellent.
12. As most of the respondent had replied that they had never felt any inconvenience after
leaving their car for service. It shows that Hyundai has built the trust in the mind of the
customer.
32
13. The number of respondent responded that they had never come across any complaints
or issued to be raised against the Hyundai. This shows that Hyundai was providing
better CRM.
14. Out of 16 respondent only 6 had an issue of complaint regarding the wrong
communication by sales man so Hyundai should provide proper training to the sales
person.
15. Most of the respondents were satisfied with the management, as their problem was
taken good care by the Hyundai management.
16. Majority of the respondent had positive response for their issue which was send to the
management. As their complaints were resolvedwithin 1 hour after their complaint
being registered. This was due to good CRM techniques used by Hyundai to face and
handle complaints.
17. Majority of the customer stated that their overall experience towards the showroom was
found to be "excellent”.
33
RECOMMENDATIONS
An attempt has been made to suggest to the CRM department of the
showroom a few measures. These recommendations have been made within the preview of
the data available.
1. The staff should be trained on regular basis, such that customers find them very co-
operative.
2. The time taken in attending the customer call needs to be minimum.Effective and less
time consumptions are the important factors, which determine customer relationship
management.
3. The sales executive should be trained adequately so as to "Convince" the potential
buyers, because his performance on job has great impact on CRM.
4. The process involved in providing financial facilities needs to be made simple as much
of the respondents stated it to be complex and time consuming.
5. After sales service should be more customized. A toll free facility should be introduced
which help the customer to define their problem. If possible a mobile unit can be
maintained so that customer need not have to bring car to the showroom in case of any
problems.
6. These days most of the people wish to have some graphics over their cars. This may be
a mix of color shades, some additional components etc. Showrooms may try to provide
these kinds of customized solutions not requiring the customer to go at some other
place.
7. Most people who buy cars wish to have fancy numbers. They spend considerable
amounts to get these fancy numbers. Showrooms may work in this aspect and get into
agreement with the registration office to provide these fancy numbers without taking
exorbitant charge.
8. More EMI schemes can be introduced as customers find it more convenient in paying a
EMI.
9. A call to the customers as per the schedule of service to know the working of car so that
prompt service can be provided in case of need.
10. Extra offer to customer on referring to his friends/relatives.
11. Maintaining the high level of customer convincing.
12. Introduce the online booking facilities for customer to service their cars.
34
CONCLUSION
On the basis of simple random sampling the total sample size attended was 65 customers in
which 50 respondent were who owned the Hyundai vehicles. The data analysis was done with
help of techniques such as questioner and different survey method. The proceeding of this
study was done by a survey, which is an appropriate tool to maintain the level of customer
Relationship. A structured questionnaire was developed in the process. These tools helped in
analyzing the obtained information or results which projected certain findings and
recommendations. From the research, several issues are found which needs to be emphasized
for Hyundai was greater success. Marketing strategy adopted by the organization is attracting
huge customers. What have been noticed after interviewing around 50 customers that almost
75% of customers were happy and satisfied by the work of Hyundai. This shows that the
showroom and all the service departments are most popular among the customers and they
are doing the great job. Based on the findings of the study it is suggested that Hyundai should
do frequent market research on the basis of structured questionnaire to understand the
existing market situation and carry out the corrective measures or improvements as needed
for sales promotion. Hyundai Company should frequently improve in its complaints handling
system of customers to effectively manage such complaints of various customers and
encourage customers to give more positive feedback about the product and services. The
management must be able to collect and documents complaint and use that information to
identify dissatisfied customers. Finally, lack of stable government, no clear government rules
and regulations, heavy custom duties and taxes imposed on vehicles import, acute/heightened
competition in the sector are some of the areas where the government should focus to
improve and make the business more lucrative.
35
BIBILIOGRAPHY
1. Indian management
2. Principles of marketing
3. Marketing management
 Philip Kotler
4. Marketing research
 G.C. Beri
5. Customer Relationship Management
- William G.zikmund
-Raymond mc. leod, JR
-Faye W. Gilbert
6. TATA Mc. Graw Hill, Marketing Management
-RajanSaxena
7. Customer relationship management
Jagdishsheth
Atulparvatiyar
G Shaniesh
Web sites-
www.Hyndai.com
www.sciencedirect.com
www.worldwide.hyundai.com
Journal :
 njazz J. Chen, Karen Popovich, (2003) "Understanding customer relationship
management (CRM): People, process and technology", Business Process
Management Journal, Vol. 9 Iss: 5, pp.672 - 688
 Jagdishsheth thought leader
 Adrian Payne, PennieFrow (2005) A Strategic Framework for Customer
Relationship Management. Journal of Marketing: October 2005, Vol. 69, No. 4, pp.
167-176.
36
QUESTIONNAIRES
Dear customer,
I am MBA student of, CT INSTITIUTE OF MANGEMENT AND
TECHNOLOGY doing a survey on customer relationship management with regard to this
showroom. I would be grateful to you if you could spare a few minutes to this questionnaire.
1. Do you own a car? YesNo.
i. If yes, please specify....................................................
2. How did you come to know about Hyundai Company?
i. Newspaper
Advertisement
ii. Social media
iii. Others, specify…………
iv. Websites
v. Friends
3. How do you find the ambience of this showroom?
i. Excellent
ii. Very good
iii. Good
iv. Satisfactory
v. Needs to be improved
4. How do you feel the staff responsiveness when you enter the showroom?
i. very Co-operative
ii. Co-operative
iii. Responsive
iv. Non-Co-operative
v. Highlynon-co-operative
5. What do you feel about the time taken by the receptionist of this service center
inattending your call?
i. Very quick
ii. Quick
iii. Reasonable
iv. Delay
v. Very much delay
37
6. How do you find the sales executives explanation about the car features?
i. Convincing
ii. Satisfactory
iii. Non convincing
iv. Non satisfied
v. Unless asked
7. How do you find the process involved in providing the financial facilities by
showroom?
i. Very Simple
ii. Simple
iii. Moderate
iv. Complex
v. very complex
8. How do you find the availability of choice of car colors in this showroom?
i. Wide range
ii. Limited
iii. Very few
9. Will you suggest this showroom to your friend'srelatives?
i. Yes ii. No
A. If yes, because of
i. quick service
ii. Timely response
iii. Friendly atmosphere
iv. Trust worthiness
v. infrastructure
B. If No, please specify …………………………………………………….
10. How do you feel about the equipment’s used here to deal with carscompared to
others?
i. Excellent
ii. Good
iii. Satisfactory
iv. poor
v. very poor
38
11. Have you felt inconvenience after leaving yours car for service with the dealer?
i. Always
ii. Sometimes
iii. Never
12. Have you raised any complaint against the problem/inconvenience faced by you to the
management?
i. Yes ii. No
a) The issue raised by you was related to
i. Wrong communication
ii. Actual bill exceeding the estimated bill
iii. Performance of car after service
iv. Delay in delivering the vehicles after service
b) If yes, was the problem/issue attended and solved by the management?
i. Yes
ii. No
c) How long did the management take to solve your issue?
i. Within few hrs.
ii. 1 day
iii. Within 1 week
iv. More than 1 week.
v. None
13. How do you rate after sales service of this showroom?
i. Excellent
ii. Good
iii. Satisfactory
iv. Poor
v. Very poor
39
14. How is yours overall experience with this showroom?
i. Excellent
ii. Good
iii. Satisfactory
Personal profile
Name:-
Occupation:-
Address:-
Contact No.
Thank you for valuable time.

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Customer relationship management practices in Hyundai Ltd.

  • 1. 1 1.1 CUSTOMER RELATIONSHIP MANAGEMENT Customer relationship management (CRM) is an approach of managing company’s interaction with current and future customers. It often involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support. “CRM is concerned with the creation, development and enhancement of individualised customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life-time value”. CRM is “the development and maintenance of mutually beneficial long-term relationships with strategically significant customers”. CHARACTERISTICS: CRM is a customer-oriented feature with service response based on customer input, one-to- one solutions to customers' requirements, direct online communications with customer and customer service centres that are intended to help customers solve their issues. It includes the following functions:  Sales force automation, which implements sales promotion analysis, automates the tracking of a client's account history for repeated sales or future sales, and coordinates sales, marketing, call centres, and retail outlets.  Data warehouse technology, used to aggregate transaction information, to merge the information with CRM products, and to provide key performance indicators.  CRM systems that track and measure marketing campaigns over multiple networks, tracking customer analysis by customer clicks and sales ORIGIN OF CRM Customer relationship management was originated in early 1970s. CRM came as a process that dealt with relationships with customers surpassing the whole business. As said by Father of management “The true business of every company is to make and keep customers” The changing business environment is characterized by economic liberalization, increasing competition, high consumer choice, demanding customer, more emphasis on quality and value of purchase etc. All these changes have made today’s producer shift from traditional marketing to modern marketing. Modern marketing calls for more than developing a product, pricing it, promoting it and making it accessible to target customer. It demands building trust, a binding force and value added relationship with the customers. The process of developing a cooperative and collaborative relationship between the buyer and seller is called customer relationship management shortly called CRM.
  • 2. 2 1.2 INTRODUCTION TO AUTOMOBILE INDUSTRY Automobile, self-propelled vehicle used primarily on public roads but adaptable to other surfaces. Automobiles changed the world during the 20th century, particularly in the United States and other industrialized nations. From the growth of suburbs to the development of elaborate road and highway systems, the so-called horseless carriage has forever altered the modern landscape. The manufacture, sale, and servicing of automobiles have become key elements of industrial economies. But along with greater mobility and job creation, the automobile has brought noise and air pollution and automobile accidents rank among the leading causes of death and injury throughout the world. But for better or worse, the 1900s can be called the Age of the Automobile and cars will no doubt continue to shape our culture and economy well into the 21st century. Automobiles are classified by size, style, number of doors, and intended use. The typical automobile, also called a car, auto, motorcar, and passenger car, has four wheels and can carry up to six people, including a driver. Larger vehicles designed to carry more passengers are called vans, minivans, omnibuses, or buses. Those used to carry cargo are called pickups or trucks, depending on their size and design. Minivans are van-style vehicles built on a passenger car frame that can usually carry up to eight passengers. Sport-utility vehicles, also known as SUVs, are more rugged than passenger cars and are designed for driving in mud or snow. In 2012 manufacturing plant in more than 25 countries produced 73.2 million passenger cars .The automobile is built around an origin various systems supply the origin with fuel, cool it daring operation, lubricate its moving parts and remove exhaust gases it creates. The origin produces mechanical power that is transmitted to the automobile’s wheels through adverting which includes a transmission. One or more dive shafts, a differential gear and axles. Suspension system which includes sparing and shock absorbers, customs the ride and help protect the vehicle from being damaged by bumps heavy loads and other series. Wheel and tares support vehicles on the road way and when rotated by powered axles; propel the vehicle forward or backward Steering speed. An electrical system starts and operates the engine monitor and control many aspects of the vehicle operation and powers such components as head light and radios. Safety features such as bumpers air bugs and seat bells help protect occupants in an accident
  • 3. 3 1.3 HISTORY OF AUTOMOBILE INDUSTRY The history of the automobile actually began about 4100 years ago when the first wheel was used to transportation in India. In the early 15th century Portuguese arrived in china and the interaction of the two cultures leaded to variety of new technologies including the creation of a wheel. By the 1600’s small steam powered engine models had been developed but it was another century before a full sized engine powered vehicle was created. IN 1769 French Army Officer Captain Nicolas joseph Cugsnot built what has been called the first automobile cugnotsparel wheeler steam powered vehicle carried four people. Designed to move artillery pieces. It has a top speed of a title more than 3.2km/h and had a stop every 20 minutes to build up a fresh head of steam. As easily in 1801 successful but very heavy steam automobile type introduced in England laws barred them from public road and forced their owners to run them like train or private tracks their owners to run them like train or private tracks in 1802 a steam powered coach designed by British Engineer. Richard Trethvick journed more than 160km from corn wall to London. Steam powered caught the attention of other vehicle builders. In 1804, American inventor Oliver Evans built a steam powered car in 1828. British inventor a valterHandcock build a series of steam carriages in the mid 1830’s thus were used for the first omnibus service in London. By the mid 1800’s England had an extensive network of coach line. Horse-drawn stagecoach companies and the new rail road companies pressured the British parliament to approve heavy it’s on steam-powered road vehicles. The tolls quickly drove a steam quickly drove a steam coach operators out of business.During the early 20th century steam cars were popular in the United states. Most famous was the Stanley steamer, built by American Twin brothers Freelan and Francis Stanley.
  • 4. 4 1.4 HYUNDAI MOTOR COMPANY The Hyundai Motor Company is a South Korean multinational automaker headquartered in Seoul, South Korea. The company was founded in 1967 and along with its 32.8% owned subsidiary, Kia Motors, together comprise the Hyundai Motor Group, which is the world's fifth largest automaker based on annual vehicle sales in 2012. In 2008, Hyundai Motor (without Kia) was ranked as the eighth largest automaker. As of 2010, the Company sold over 3.6 million vehicles worldwide. Hyundai operates the world's largest integrated automobile manufacturing facility in Ulsan, South Korea, which has an annual production capacity of 1.6 million units. The company employs about 75,000 people worldwide. Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms. 1.5 VISION: “Our Team provides value for your future” 1.6 MISSION: To create exceptional automotive value for our customers by harmoniously blending safety, quality and efficiency. With our diverse team, we will provide responsible stewardship to our community and environment while achieving stability and security now and for future generations. 1.7 HYUNDAI’S BRAND SLOGAN: “NEW THINKING - NEW POSSIBILITIES” A brand slogan embodies the essence of a brand, from its philosophy to its vision and identity. Hyundai’s brand slogan -- “NEW THINKING. NEW POSSIBILITIES.” reflects the will of Hyundai Motor Company to create new possibilities to benefit the world and its people by encouraging and developing new thinking. All members of Hyundai have the brand slogan deeply engraved in their hearts as they move forward in their effort to provide new values and experiences desired by today’s customers through innovative ways that are unique to the brand, driven by new thinking about customers and cars.
  • 5. 5 1.8 QUALITY POLICY  Top priority to customer satisfaction The Company will provide only those products meeting relevant customer requirements & international standards and accordingly satisfy every customer.  Continuous improvement The Company will make continuous quality improvements through unceasing R&D efforts & new technologies and accordingly minimize the quality cost.  Quality mind The company will encourage each employee’s quality and accordingly accomplish the error-free quality.  Quality mind creation The company will create such premium quality value that can lead the global automatic transmission market. 1.9 NEED FOR THE STUDY The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relationship with the king – the customer. In the past producers took their customers for granted, because at that time the customers were not demanding nor had alternative source of supply or suppliers. But today there is a radical transformation. The purpose of customer relation is not only for retaining the customers but also attracting new customers and increasing the sales and also creating and maintenance of brand awareness. It is a system for managing a company’s interactions with current and future customers using technology to organize, automate and synchronize sales, marketing, customer service, and technical support. Customer perceptions attitudes and views regarding the products and services, along with suggestions assume greater importance in the light of new entries and potential competitors, this study is an attempt that directs to facilitate the management in marketing their future decisions in promoting and creating a good image in the society.
  • 6. 6 • reduced costs, because the right things are being done (i.e., effective and efficient operation) • increased customer satisfaction, because they are getting exactly what they want (ie. meeting and exceeding expectations) • growth in numbers of customers • highlighting poor operational processes • long term profitability and sustainability • A satisfied customer in 10 years will bring 100 more customers to the company. • It costs 7 time more to attract a new customer than to serve an old one. • 20% of the company’s loyal customers account for 80% of its revenues. (Pareto’s principle).
  • 7. 7 1. ArvindSaxena (2010) Director and Board member (marketing and sales), Hyundai Motor India (HMIL) “No company in automobile sector can fight competition on price. Companies need to have the right product, distribution, CRM and after sales service network to grow. 2. Peter C. Verhoef (2003) Scholars have questioned the “effectiveness of several customer relationship management strategies”. The author investigates the differential effects of customer relationship perceptions and relationship marketing instruments on customer retention and customer share development over time. Customer relationship perceptions are considered evaluations of relationship strength and a supplier’s offerings, and customer share development is the change in customer share between two periods. The results show that affective commitment and loyalty programs that provide economic incentives positively affect both customer retention and customer share development, whereas direct mailings influence customer share development. 3. Kumar, V. (2010), “Customer relationship management (CRM)” refers to building one- to-one relationships with customers that can drive value for the firm. This manuscript discusses proven CRM strategies that companies can use as means of effective customer management (CM). The continuing evolution of CM is made possible by understanding the interactive relationships that develop between firms and customers and among customers themselves. Firms will increasingly be able to customize marketing messages to larger target audiences on the basis of the customer's expected response and the customer's value to the firm. 4. Michael Cusumano, Steve Kahl and Fernaando Suarez (2008) in their research paper “A theory of services in product industries”, has concluded that in many product oriented industries, services have become increasingly important. In case of automobiles, many automakers generate the vast majority of their profits from a service activity closely tied to their product activity. The automobile industry overall generates a large portion of its profits from other product-related service activities such as insurance and repairs. The authors argued that despite the seeming importance of services, there is not much theory to help researchers or practitioners explain the 3 conditions under which services matter in product industries.
  • 8. 8 5.Steve Kahl and Fernaando Suarez (2008) in their research paper “Product, Process, and Service: A New Industry Lifecycle Model”, has concluded that Existing models of industry lifecycle evolution tend to focus on changes in the products and processes and largely overlook the dynamics of services, but increasingly, the revenues of many firms are becoming dominated by sales of services rather than products, or products sold with services to gain competitive differentiation in markets marked by increasing product commoditization. 6.Abhijeet Singh (2011) Tata Motors uses a customer relationship management and dealer management system (CRM-DMS) which integrates one of the largest applications in the automobile industry, linking more than 1200 dealers across India.CRM DOS has helped Tata Motors to improve its inventory management, tax calculation and pricing. This system has also proved to be beneficial to dealers because it has reduced their working capital cost 7.E.W.T. Ngai, (2005) To review the “academic literature on customer relationship management (CRM)”, provide a comprehensive bibliography and propose a method of classifying that literature A range of online databases were searched to provide a comprehensive listing of journal articles on CRM. Six hundred articles were identified and reviewed for their direct relevance to CRM. Two hundred and five articles were subsequently selected. Each of these articles was further reviewed and classified. The review and classification process was independently verified. All papers were allocated to the main and sub‐categories based on the major focus of each paper. 8.Gordon Fullerton (2006), “Putting relationship in CRM”, that JEEP, a division of Daimler Chrysler Automobile Company, has served a classic example of CRM program that provides a considerable value to both the customers and the firm by developing a program exclusively for jeep owners and fostered a community that is highly effectively committed to the product, the brand and the customers. 9.Kevin Keller (2012) Caterpillar has become a leading firm by maximizing the total customer value with the help of effective CRM, best after sales service in the industry and better trained dealer. This allows the firm to command a premium price of 10% to 20% higher than competitors such as Volvo, Komatsu etc.
  • 9. 9 10.CabĂŁu Liviu-Gabriel (2012) this article is considered to be a “landmark in both academic and business area, regarding the Customer Relationship Management (CRM)”. Based on previous research found in the literature, the paper aims to clarify the concept of CRM. Critical research results are reflected in the formulated responses on the following aspects of CRM: CRM context, CRM definition, CRM importance and objectives, CRM failure and CRM research. Finally, the article presents the main findings and some conclusions related to the current research. 11.Thomas Dotzel, Venkatesh Shankar and Leonard L Berry. (2013) this research “evaluates the effect of customer relationship management (CRM)” on customer knowledge and customer satisfaction. An analysis of archival data for a cross-section of U.S. firms shows that the use of CRM applications is positively associated with improved customer knowledge and improved customer satisfaction. This article also shows that gains in customer knowledge are enhanced when firms share their customer-related information with their supply chain partners.
  • 10. 10 OBJECTIVES OF THE STUDY The main objectives are to determine the current relationship management level of the customers with all aspects in regard to “HYUNDAI Ltd.”. Objectives in Detail: 1. To know the grievances among the customers about products &services, if any. 2. To identify different customers’ needs in regard to a Hyundai motor car’s services. 3. To identify what type of promotional strategy is suitable for the company to reach the targeted customers.
  • 11. 11 SCOPE OF THE STUDY The scope of the study is to identify the customer relationship management levels towards "Hyundai Limited". The study was conducted for a period of 8 weeks covering various places in Jalandhar. Primary data was collected from customers. Secondary data was collected from company manuals, magazines and websites and so on. The study gathers information about the customer's relation maintaining in various full range of Hyundai vehicles from EON (passenger car) to Santa Fe (SUV) level in regard to Quality of service, safety Tips, fuel saving tips, driving tips etc. Customer care service and other values added services provided by the company. It is aimed at enlightening the company about different steps to be taken up to increase the share of Hyundai motor company limited with regard other competitors and also to make the company to provide better customer services.
  • 12. 12 RESEARCH METHODOLOGY Project methodology is a way to systematically solve the research problem. It deals with the objective of a research study, the method of defining the research problem, the type of data collected, method used for data collecting and analyzing the data etc. The methodology includes collection of primary and secondary data. DATA COLLECTION: 1) Primary data: The primary data will be collection through structured questions and also by directly interacting with the respondents. The questionnaire will be circulated to the customer personally. 2) Secondary data: The source of secondary data includes:  Books  Magazine  Company’s report and website.  Internet So, to give a proper and formal approach to our research study I used the sampling technique. SAMPLING TECHNIQUE The sampling technique that adapted to conduct the survey was ‘Random Sampling’ and the area of the research was concentrated in the city of Jalandhar. The survey was conducted by interacting with Hyundai owners at Hyundai service center. Sample units: The sampling units for the study include the owner of the Hyundai cars. Sample size: The sample or the size included for conducting the study is50 customers of Hyundai.
  • 13. 13 Table 1: Table showing the number of people who possessed a car. Possessing a car In numbers In percentage Yes 50 77 No 15 23 Total 65 100 Analysis: Out of the 65 respondents 50 of them possessed a car and the rest of 15 didn’t possess a car. Chart 1:Table showing the number of people who possessed a car. Interpretation: Majority of the respondent i.e. 77% of them were the owner of the car. 77% 23% People Having Car yes no
  • 14. 14 60% 8% 18% 10% 4% Source Of Awareness Newspaper /Magazines Social Media Friends Websites Other Table 2: Table showing the Source of Awareness. Awareness In numbers In percentage Newspaper/magazines 32 60 Social Media 03 8 Friends 11 18 Websites 02 10 Other 01 4 Total 50 100 Analysis: From the above table, 60% said that they became awareness through the ‘Newspaper/magazine’ advertisement , 18% said that they came to know about the Laxmi Hyundai through friends and relatives ,8% said through ‘social media’ , 10% said it is ‘website’ and only ‘4%’ specified as others. Chart 2: Chart showing the Source of Awareness Interpretation: Majority of the respondent i.e. 60% found that the newspaper and magazine advertisement has played a major role in creating awareness among the people.
  • 15. 15 Table 3:Table showing how respondent find the Ambience of the showroom. Ambience In numbers In percentage Excellent 25 50 Good 15 30 Satisfactory 08 16 Poor 02 04 Very poor 0 0 Total 50 100 Analysis:50 % of respondent opting that the ambience of the showroom is “excellent”, 30% of them found it “good”.16 % of them stated it to be “satisfactory” and very less 4% stated it is “verypoor”. Chart 3: Chart showing how respondent find the Ambience of this showroom. Interpretation: Majority of the respondents stated that the ambience of the showroom is "excellent" as stated by 50% of the customers which is a good indicator for the showroom. 50% 30% 16% 4% 0% Ambience Of The Showroom Excellent Good Satifactory Poor Very poor
  • 16. 16 18% 22% 56% 4% 0% Staff Response Very co-operative Co-operative Responsive Non-Cooperative Highly non-Cooperative Table 4: Table showing the staff responsiveness towards the customer at showroom. Staff response In numbers In percentage Very Cooperative 09 18 Cooperative 11 22 Responsive 28 56 Non-cooperative 02 4 Highly non-Cooperative 00 00 Total 50 100 Analysis: The above table shows that, most of the customer i.e.18 % of them found the show room staff to be “very cooperative” ,22% stated as“co-operative”, a major percentage i.e. 56% of them felt the staff is ‘responsive’ than cooperative (respond only when asked, without having any personal initiation),4% of them rated the staff to be “non-cooperative” and none of them rated as “highly non-cooperative”. Chart 4: Chart showing the staff responsiveness towards the customer at showroom. Interpretation: Majority of staff response is found to be "Responsive" rather than co- operative. It seems Staff doesn't respond until asked for which may lead to negative impact on the perception of the customers about this showroom.
  • 17. 17 8% 17% 63% 8% 4% Time Taken In Attending a Call Very Quick Quick Resonable Delayed Very much Delayed Table 5: Table showing the Time taken by receptionist in attending a customer call. Time Taken In numbers In percentage Very quick 4 8 Quick 08 17 Reasonable 31 63 Delayed 04 08 Very much Delayed 02 04 Total 50 100 Analysis: According to above table it shows that the 8% of the respondent stated it as “ very quick”,17% of respondent stated it as “quick”, time taken is “reasonable” as stated by 63% of the respondent 8% of them found it to be “delayed”, 4% said it is “ very much delayed “. Chart 5: Table showing the Time taken by receptionist in attending a customer call Interpretation: Time taken to provide the services required by the customers is considered as "reasonable" by the most of the respondent (i.e. 63%).
  • 18. 18 Table 6: Table showing the Sales executive role in explanation the features of car to customer. Explanation IN NUMBERS IN PERCENTAGE Convincing 12 24 Satisfactory 18 36 Unless asked 20 40 Total 50 100 Analysis: Out of the 50 respondent , 24% of them felt the explanation to be “convincing”,36% felt it as “ satisfactory “ and major percentage 40% felt it to be “ non- convincing” . Chart 6: Chart showing the Sales executive role in explaining the features of car to customer Interpretation: Majority of the respondent i.e. 40% found the sales executive don’t explain the entire feature unless asked by the customer. 24% 36% 40% Sales Executive Performance Convincing Satisfactory Unless asked
  • 19. 19 0% 2% 12% 18% 68% Process Involved in Providing Financial Facilities very simple Simple Moderate Complex Very Complex Table 7: Table showing the respondent opinion about the process involved in providing financial facilities. Processing procedure IN NUMBERS IN PERCENTAGE Very simple 00 00 Simple 01 2 Moderate 6 12 Complex 9 18 Very Complex 34 68 Total 50 100 Analysis: According to the above table 68% of the respondent stated that “ process “ involved for financial facilities are “ very complex”,18% stated it to be “complex “,12% to be “moderate” and Only 2% of them stated it to be “simple”. Chart 7: Chart showing the respondent opinion about the process involved in providing financial facilities. Interpretation: Majority of the respondent i.e. 68% considered the process to be very complex. . They didn’t find it to be very convenient and simple.
  • 20. 20 12% 66% 22% Availability Of Colors Wide Limited Very few Table 8: Table showing availability of Color variants for customer in the showroom. Availability of colors In numbers In percentage Wide 06 12 Limited 33 66 Very few 11 22 Total 50 100 Analysis: From the above table it can be understood that ‘limited range’ of colors is available in this showroom as stated by 66% of the respondent, 12% stated that this showroom contains ‘wide colors” and 22% stated “very few range of color”. Chart 8: Chart showing availability of Color variants for customer in the showroom. Interpretation: Majority of the respondent i.e.66% stated that the availability of varied colors in this showroom seems to be limited .It shows that customer is given a limited choice in matter of color of the car.
  • 21. 21 Table 9: Table showing respondent likelinessin suggesting to other friends & relatives. Suggesting to friends In numbers In percentage Yes 38 76 No 12 24 Total 50 100 Analysis: According to above table it shows that, 76% of the customers are very likely to suggest this showroom to their friends / relatives. The 24% of the customers are reluctant to suggest these showrooms to friends/relatives. Chart 9: Chartshowing respondent likeliness in suggesting to other friends & relatives. Interpretation: Majority of the respondents i.e. 76% are ready to suggest the car to other. It is an indication of high satisfaction level andcustomers are happy with the service provided by the showroom. 76% 24% CustomerSuggesting To Other yes No
  • 22. 22 Table 10: Table showing the reason for suggesting the showroom to others. Reasons In numbers In percentage Quick Service 12 24 Timely Response 9 18 Friendly Atmosphere 7 14 Trust Worthiness 19 38 Infrastructure 03 6 Total 50 100 Analysis: 38% of the respondents stated the reasons of “trust worthiness”,24% of the respondents stated “ quick service” , 18% respondent stated “Timely response”, 14% state friendly atmosphere and only 6% for infrastructure, Chart 10: Chart showing the reason for suggesting the showroom to others. Interpretation: Majority of the respondent i.e. 38% considered the trust worthiness to be the reason for suggesting the showroom to other. 24% 18% 14% 38% 6% Reason to Suggest Other quick service timely response friendly atmosphere trust wortiness infrastructure
  • 23. 23 Table 11: Table showing the customer opinion about the equipment’s efficiency in the showroom for the purpose of maintenance of the cars. Ability of showroom In numbers In percentage Excellent 19 38 Good 06 12 Satisfactory 14 28 Poor 07 14 Very poor 04 8 Total 50 100 Analysis: 38% of the respondent rated it as excellent as compared to other showroom another majority of respondents i.e. 28% of them stated it as “satisfactory”. 14% of the respondent said it is “poor”. 12 % stated as “good” and only 8% stated “very poor”. Chart 11: Chart showing the customer opinion about the equipment presence in the showroom for the purpose of maintenance of the cars. Interpretation: Out of 50 customers, Majority of customer stated thatthe showroom has excellent equipment in maintaining the cars. 38% 12% 28% 14% 8% Equipments efficiency Excellent Good Satisfatory Poor Very Poor
  • 24. 24 Table 12: Table showing any inconvenience felt by customer after leaving their car for service. Inconvenience felt In numbers In percentage Never 33 66 Sometimes 18 34 Always 0 0 Total 50 100 Analysis: 66% of the respondent have “never” felt any inconvenience, whereas 34% have felt “sometime” and none of them have felt “always”. Chart 12: Chart showing any inconvenience felt by customer after leaving their car for service. . Interpretation: As majority of 66% of respondent had positive attitude towards the customer service of Laxmi Hyundai. 66% 34% 0% Inconvenience Felt by Customer Never Sometimes Always
  • 25. 25 Table 13: Table showing whether the customer had raised any complaints against the problem faced by him/her to the management. Complaint Raised In numbers In percentage Yes 16 30 No 34 70 Total 50 100 Analysis: As 30% respondent say that they have raised some issue where as 70% of the respondent says that they haven’t raised any issue till date. Chart 13: Chart showing whether the customer had raised any complaint against the problem faced by him/her to the management. Interpretation: As majority of respondent i.e. 70% had replied that they never had to approach the management for any problems. 30% 70% Complaint Raised Yes No
  • 26. 26 Table 14: Table showing reasons for complaining. Issue Raised In numbers In percentage Wrong communication by salesman 6 37 Actual bill exceeding the estimated bill 4 25 Fall in performance of the car after service 2 13 Delay in handling over the vehicles 3 19 Infrastructure 1 6 Total 16 100 Analysis : As 37% respondent replied that the issue/problem faced by them was the wrong communication by the salesman, whereas 25% of respondent replied that their actual bill exceeded the estimated bill,13% replied fall in performance of the car after service,19% stated delay in handling over the vehicles and 6% had issue on infrastructure. Chart 14: Chart showing reasons for complaining. Interpretation: As majority 37% respondent had problem on wrong communication by sales man. 37% 25% 13% 19% 6% Issue of Complaint Raised By Respondent Wrong communication by salesman Actual bill exceeding the estimated bill Fall in performance of the car after service Delay in handling over the vehicles
  • 27. 27 Table 15: Table showing whether the problem was cleared by the management or not. Complaint solved In numbers In percentage Yes 13 81 No 3 19 Total 16 100 Analysis:Maximum percentage of respondent i.e. 81% replied that there problem were solved by the management ,whereasthe rest 19% stated that their problem were not taken care by the management. Chart 15: Chart showing whether the problem was cleared by the management or not. Interpretation: As majority of respondent (81%) were satisfied with the management, as their problem were taken good care by the Laxmi Hyundai management. 81% 19% Problem Solved by Management yes NA
  • 28. 28 Table 16: Table showing duration to solve the issue by the management. Duration to solve the issue In numbers In percentage Within few hours 6 46 Within 1 day 3 23 With 1 week 2 15 More than 1 week 1 8 More than 2 week 1 8 Total 13 100 Analysis :As 46% respondent replied that their issue were solved with in few hours by the management but rest 23% replied within 1 day,15% replied with in 1 week,8% replied more than 1 week and 8 % more than 2 week for their problem to be solved by the management. Charts 16: : Table showing duration to solve the issue by the management. Interpretation: As majority 46% respondent had positive response for their issue which was send to the management. As their complaints where replied with in 1 hour after their complaint being registered. This was due to good CRM techniques used by Laxmi Hyundai to face and handle complaints. 46% 23% 15% 8% 8% Timetaken to Solve the Issue within 1 hour within 1 day within 1 week more than 1 week more than 2 week
  • 29. 29 6% 20% 58% 10% 6% After Sales Service Excellent Good Satisfactory poor very poor Table 17: Table showing how the customers rate the service after sale. After sales service In numbers In percentage Excellent 3 6 Good 10 20 Satisfactory 29 58 Poor 05 10 Very Poor 03 6 Total 100 100 Analysis: 58% of the respondents stated the “after sales service” to be satisfactory. This shows that the after sales service in not such effective as stated by the respondents, 20% of the respondents said that was “good”, only 6% as excellent and almost 6% found it to be “poor” and “very poor”. Chart 17: Chart showing how the customer rates the service after sale. Interpretation :The "after sales service" is stated by most i.e. 58% as "satisfactory" and a very few stated it as "excellent" and "good".
  • 30. 30 Table 18: Table showing regarding overall all experience of the customer with this showroom. Overall experience In numbers In percentage Excellent 17 34 Good 10 20 Satisfactory 13 26 poor 7 14 Very poor 3 6 Total 50 100 Analysis: Out of the respondents, 34% have stated their experience as “excellent”, 20% as “good”, 26% as “satisfactory”. 14% have stated it as “poor” and only 6% stated it as”very poor”. This shows that on the whole customers are just “satisfied” with the services offered at this showroom. Chart 18: Chart showing regarding overall all experience of the customer with this showroom. Interpretation: The overall experience of the customer is found to be "excellent" as state by 34% of the respondents. 34% 20% 26% 14% 6% Overall Experience Excellent Good Satisfactory poor Very poor
  • 31. 31 FINDINGS From the responses of 50 customers the findings can be listed as: 1. It has been found that the newspaper and magazine are the major source of awareness about the dealer. 2. The ambience of the showroomis "excellent" as stated by most of the customers. This is a good indicator for the showroom. 3. The staff response is found to be "Responsive" rather than co-operative. It seems "Staff" doesn't respond until asked for. This may lead negative impact on the perception of the customers about this showroom. 4. Time taken to attend the customercall is considered as "reasonable" by the most of the respondent. 5. It seems most of the customers found the "sales executive explanation" just "Satisfactory" than "Convincing". Few (20 out of 50) even stated that sales executives don't explain all the features unless asked. 6. The process involved in providing financial facilities is considered as (68% of respondents) as very complex & time consuming. They don't find it very convenient. 7. As most of the customer states that the “after sales service" provided by the showroom is just “satisfactory" therefore the company needs to be consider this issue seriously in order to satisfy more customer in near future. 8. The availability of varied colors in this showroom seems to be very limited as stated by most of respondents. It shows that customer is given a limited choice in matter of color of the car. 9. As much as 76% of respondent have stated that they are very likely to suggest this showroom to their friendsrelatives. . It is an indication of high satisfaction level and customers are happy with the service provided by the showroom. 10. As most of the respondent i.e. 38% considered the trust worthiness to be the reason for suggesting the showroom to other. 11. Most of respondent stated that the equipment used for the maintaining the vehicles was excellent. 12. As most of the respondent had replied that they had never felt any inconvenience after leaving their car for service. It shows that Hyundai has built the trust in the mind of the customer.
  • 32. 32 13. The number of respondent responded that they had never come across any complaints or issued to be raised against the Hyundai. This shows that Hyundai was providing better CRM. 14. Out of 16 respondent only 6 had an issue of complaint regarding the wrong communication by sales man so Hyundai should provide proper training to the sales person. 15. Most of the respondents were satisfied with the management, as their problem was taken good care by the Hyundai management. 16. Majority of the respondent had positive response for their issue which was send to the management. As their complaints were resolvedwithin 1 hour after their complaint being registered. This was due to good CRM techniques used by Hyundai to face and handle complaints. 17. Majority of the customer stated that their overall experience towards the showroom was found to be "excellent”.
  • 33. 33 RECOMMENDATIONS An attempt has been made to suggest to the CRM department of the showroom a few measures. These recommendations have been made within the preview of the data available. 1. The staff should be trained on regular basis, such that customers find them very co- operative. 2. The time taken in attending the customer call needs to be minimum.Effective and less time consumptions are the important factors, which determine customer relationship management. 3. The sales executive should be trained adequately so as to "Convince" the potential buyers, because his performance on job has great impact on CRM. 4. The process involved in providing financial facilities needs to be made simple as much of the respondents stated it to be complex and time consuming. 5. After sales service should be more customized. A toll free facility should be introduced which help the customer to define their problem. If possible a mobile unit can be maintained so that customer need not have to bring car to the showroom in case of any problems. 6. These days most of the people wish to have some graphics over their cars. This may be a mix of color shades, some additional components etc. Showrooms may try to provide these kinds of customized solutions not requiring the customer to go at some other place. 7. Most people who buy cars wish to have fancy numbers. They spend considerable amounts to get these fancy numbers. Showrooms may work in this aspect and get into agreement with the registration office to provide these fancy numbers without taking exorbitant charge. 8. More EMI schemes can be introduced as customers find it more convenient in paying a EMI. 9. A call to the customers as per the schedule of service to know the working of car so that prompt service can be provided in case of need. 10. Extra offer to customer on referring to his friends/relatives. 11. Maintaining the high level of customer convincing. 12. Introduce the online booking facilities for customer to service their cars.
  • 34. 34 CONCLUSION On the basis of simple random sampling the total sample size attended was 65 customers in which 50 respondent were who owned the Hyundai vehicles. The data analysis was done with help of techniques such as questioner and different survey method. The proceeding of this study was done by a survey, which is an appropriate tool to maintain the level of customer Relationship. A structured questionnaire was developed in the process. These tools helped in analyzing the obtained information or results which projected certain findings and recommendations. From the research, several issues are found which needs to be emphasized for Hyundai was greater success. Marketing strategy adopted by the organization is attracting huge customers. What have been noticed after interviewing around 50 customers that almost 75% of customers were happy and satisfied by the work of Hyundai. This shows that the showroom and all the service departments are most popular among the customers and they are doing the great job. Based on the findings of the study it is suggested that Hyundai should do frequent market research on the basis of structured questionnaire to understand the existing market situation and carry out the corrective measures or improvements as needed for sales promotion. Hyundai Company should frequently improve in its complaints handling system of customers to effectively manage such complaints of various customers and encourage customers to give more positive feedback about the product and services. The management must be able to collect and documents complaint and use that information to identify dissatisfied customers. Finally, lack of stable government, no clear government rules and regulations, heavy custom duties and taxes imposed on vehicles import, acute/heightened competition in the sector are some of the areas where the government should focus to improve and make the business more lucrative.
  • 35. 35 BIBILIOGRAPHY 1. Indian management 2. Principles of marketing 3. Marketing management  Philip Kotler 4. Marketing research  G.C. Beri 5. Customer Relationship Management - William G.zikmund -Raymond mc. leod, JR -Faye W. Gilbert 6. TATA Mc. Graw Hill, Marketing Management -RajanSaxena 7. Customer relationship management Jagdishsheth Atulparvatiyar G Shaniesh Web sites- www.Hyndai.com www.sciencedirect.com www.worldwide.hyundai.com Journal :  njazz J. Chen, Karen Popovich, (2003) "Understanding customer relationship management (CRM): People, process and technology", Business Process Management Journal, Vol. 9 Iss: 5, pp.672 - 688  Jagdishsheth thought leader  Adrian Payne, PennieFrow (2005) A Strategic Framework for Customer Relationship Management. Journal of Marketing: October 2005, Vol. 69, No. 4, pp. 167-176.
  • 36. 36 QUESTIONNAIRES Dear customer, I am MBA student of, CT INSTITIUTE OF MANGEMENT AND TECHNOLOGY doing a survey on customer relationship management with regard to this showroom. I would be grateful to you if you could spare a few minutes to this questionnaire. 1. Do you own a car? YesNo. i. If yes, please specify.................................................... 2. How did you come to know about Hyundai Company? i. Newspaper Advertisement ii. Social media iii. Others, specify………… iv. Websites v. Friends 3. How do you find the ambience of this showroom? i. Excellent ii. Very good iii. Good iv. Satisfactory v. Needs to be improved 4. How do you feel the staff responsiveness when you enter the showroom? i. very Co-operative ii. Co-operative iii. Responsive iv. Non-Co-operative v. Highlynon-co-operative 5. What do you feel about the time taken by the receptionist of this service center inattending your call? i. Very quick ii. Quick iii. Reasonable iv. Delay v. Very much delay
  • 37. 37 6. How do you find the sales executives explanation about the car features? i. Convincing ii. Satisfactory iii. Non convincing iv. Non satisfied v. Unless asked 7. How do you find the process involved in providing the financial facilities by showroom? i. Very Simple ii. Simple iii. Moderate iv. Complex v. very complex 8. How do you find the availability of choice of car colors in this showroom? i. Wide range ii. Limited iii. Very few 9. Will you suggest this showroom to your friend'srelatives? i. Yes ii. No A. If yes, because of i. quick service ii. Timely response iii. Friendly atmosphere iv. Trust worthiness v. infrastructure B. If No, please specify ……………………………………………………. 10. How do you feel about the equipment’s used here to deal with carscompared to others? i. Excellent ii. Good iii. Satisfactory iv. poor v. very poor
  • 38. 38 11. Have you felt inconvenience after leaving yours car for service with the dealer? i. Always ii. Sometimes iii. Never 12. Have you raised any complaint against the problem/inconvenience faced by you to the management? i. Yes ii. No a) The issue raised by you was related to i. Wrong communication ii. Actual bill exceeding the estimated bill iii. Performance of car after service iv. Delay in delivering the vehicles after service b) If yes, was the problem/issue attended and solved by the management? i. Yes ii. No c) How long did the management take to solve your issue? i. Within few hrs. ii. 1 day iii. Within 1 week iv. More than 1 week. v. None 13. How do you rate after sales service of this showroom? i. Excellent ii. Good iii. Satisfactory iv. Poor v. Very poor
  • 39. 39 14. How is yours overall experience with this showroom? i. Excellent ii. Good iii. Satisfactory Personal profile Name:- Occupation:- Address:- Contact No. Thank you for valuable time.