A study of customer satisfaction on after sales and service conducted at arpita bajaj hassan

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A study of customer satisfaction on after sales and service conducted at arpita bajaj hassan

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A study of customer satisfaction on after sales and service conducted at arpita bajaj hassan

  1. 1. Customer Satisfaction After Sales & Service. INTRODUCTION TO PROJECT REPORT Customer satisfaction is related to the human activity directed at satisfying human wants through the exchange of goods and service. Satisfying the customers occupies a most important position in business management. Customer satisfaction plays a crucial and critical role as it deals with customers and their needs. The major task of organization is to satisfy customers by meeting their needs and wants. The essence of organization is the customer and not the product shall be the heart of the entire business system. It emphasizes on customer oriented business. Policies and programs, which are formulated to serve efficiently the customer demand. “Satisfaction of a customer is so basic that it cannot be considered as a separate function. It is the way whole business seen from the point of view of its final results i.e., from the customer’s point of view”. A consumer is the king and has the right to choose from a large variety of offering. He is the main person around which all business evolves. Today market is a more customer oriented in the sense all the business operations revolve around satisfying the customer by meeting their needs through effective service. Thus, business is often dynamic, challenging and rewarding. It can also be frustrating and even disappointing but never dull. The topic “Customer satisfaction after Sales & Service” is chosen to study the service provided by Arpita Bajaj who are the dealers of Bajaj Motors in the city of Hassan. This project deals with how Arpita Bajaj defines its consumer and uses its resources in the best way to attract and satisfy their needs and wants competitively and profitably. Here satisfying customers limited only till the service is provided after the sales, but they include all functions necessary to satisfy the customer such as financing, after sales services, etc. H.R .Institute of Higher Education, Hassan 1
  2. 2. Customer Satisfaction After Sales & Service. PROBLEM STATEMENT The Arpita Bajaj is one of the leading Bajaj two wheeler outlet in Hassan district. It was established in the year 2000, & its delivering to the customers in and around Hassan & its neighboring districts. For the past 10yrs it’s been into the active in promoting two wheeler products but in the recent past since 2008 the sales of two wheelers was dismal due the dissatisfaction among large group of customers due to deteriorating in the quality of after sales service. Hence the management has felt the need to conduct through analysis about the existing effectiveness of after sales service & its impact on the organization overall sales performance. Hence the management had realized the need to conduct the result oriented analysis through the management trainees. I was glad to accept this assignment from the organization perspective & as a part of MBA curriculum. “Customer satisfaction after sales & service” is the important statement of the problem in this project. OBJECTIVES OF THE STUDY • To know the after sales service perception of customers • To ascertain the satisfaction level & its influencers • To measure the impact of the above analysis on future sales • To study the whether satisfied with their service. H.R .Institute of Higher Education, Hassan 2
  3. 3. Customer Satisfaction After Sales & Service. NEED FOR THE STUDY Customer is one for whom you satisfy a want or need in return for some of payment. The payment may be money, may be time, or may be goodwill but there is some form of payment. Satisfaction is the level of person felt state by comparing products perceived in relation to the person’s expectations. Satisfaction level is function of the difference between perceived performance and expectations. If the performance falls short of expectations, the customer is not satisfied. If the performance matches the expectations the customer’s are highly satisfied. If the performance is beyond his expectations the customer is thrilled. Customer satisfaction is customer’s positive or negative feeling about the value that was perceived as a result of using particular organization’s offering in specific used reaction to a series of use situation experience. According to peter F. Ducker, the purpose of business is to create and then retain a satisfied customer. A society supports business because they serve its member’s by catering to their needs and leave them satisfied. If the business dissatisfied its customer’s and not only these customers stop availing service , but society at large will condemn the firm and may even penalize it to the point of its extinction. SCOPE OF THE STUDY: • The study is limited to the customer of Bajaj vehicle buyers. The customer includes customers who enter the show room. • This study will help us to understand customers, preference and their needs expected from the business owners. This study will not only help me as a student but it also assists Arpita Bajaj to improve their service standard. H.R .Institute of Higher Education, Hassan 3
  4. 4. Customer Satisfaction After Sales & Service. RESEARCH DESIGN 1. Research is an art of scientific investigation. 2. Research is a process of systematic study. 3. Research is a search of knowledge. 4. Research is an area of investigation which includes collection, analysis and Interpretation of data. Research has to proceed systematically in the already planned direction with the help of a number of steps in sequence. To make the research systemized the researcher has to adopt certain methods. The method adopted by the researcher for completing the project is called Research Methodology. A Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. A Research is purely and simply the framework and plan for the study that guides the collection and analysis of data. It is a blue print that is followed in completing a study. Types of Research Design 1. Exploratory research design. 2. Descriptive research design. 3. Experimental research design. H.R .Institute of Higher Education, Hassan 4
  5. 5. Customer Satisfaction After Sales & Service. Data Collection Method Data refers to information or facts. It not only refers to numerical figures but also includes descriptive facts. The method of data collection includes two types of study, such as primary data and secondary data. Primary Data Collection Method It was collected directly from executives and customers. The information collected from executives through personal and direct interview to collect primary data, a detail and structured questionnaire was formed to suit the objectives of the study which contain definite and predetermined questions, containing information relating to sales and service and its products. Primary data is the data that is collected for the first time by the researcher. The Primary data are collected with specific set of objective to assess the current status of any variable studied. Primary data is useful only for particular period. Methods of Primary Data Collection The Main four methods used in primary data collection are: a. Questionnaire b. Schedule c. Interview d. Observation In this study questionnaire method have been used H.R .Institute of Higher Education, Hassan 5
  6. 6. Customer Satisfaction After Sales & Service. QUESTIONNAIRE: In this method, pre printed list of questions arranged in a sequence which is used by the researcher for collecting data. The questionnaire is filled by the respondents. The questionnaire is considered as the heart of the survey. Secondary data:- It was used mainly to support the primary data. Secondary data was collected through books, annual reports, significant, literature from the organization and previous reports, magazines, vouchers etc. Research Design Tool:- To make research various surveys are conducted they are as follows: The various data are collected from primary and secondary source through the questionnaires; books, journals, old reports and annual report were used. Sampling Scheme:- A sample is a portion of the whole on which the study is based. Here a sample size of 100 respondents were chosen from different areas of Hssan, and the questionnaires were duly filled data relating to the objectives of the study is obtained by meeting customers, consumers, in area like Hassan town. Sampling Design A Sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure that the researcher would adopt in selecting items for the sample. Sample design may as well lay down the number of items to be H.R .Institute of Higher Education, Hassan 6
  7. 7. Customer Satisfaction After Sales & Service. including in the sample i.e., the size of the sample. Sample design is determined before data are collected. SAMPLE PROCEDURE Sampling is a procedure by which the respondents are selected. There are basically two types of sampling methods are: 1. Probability sampling methods. 2. Non-Probability sampling methods. In this study area sampling method was adopted (Probability Sampling) the required number of customers were not selected according to area sampling procedure but the required number of sample (sample size) 100 were selected. LIMITATIONS OF THE STUDY:  The responses given by the respondents may not be true.  The respondents may be careless in responding to the questionnaire.  The respondents may be illiterate.  This study limits to the geographical area of Hassan. H.R .Institute of Higher Education, Hassan 7
  8. 8. Customer Satisfaction After Sales & Service. 2.1 INDUSTRY PROFILE 2.1.1 HISTORY OF TWO- WHEELER The Encyclopedia describes a motorcycle as a bicycle propelled by an internal-combustion engine (or, less often, by an electric engine). The motors on minibikes, scooters, and mopeds, are usually air-cooled and range from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement, the multiple- cylinder motorcycles have displacements of more than 1,300 cubic cm. The automobile was the reply to the 19th-century dream of self-propelling the horse-drawn carriage. Similarly, the invention of the motorcycle created the self- propelled bicycle. The first commercial design was a three-wheeler built by Edward Butler in Great Britain in 1884. This employed a horizontal single-cylinder gasoline engine mounted between two steer able front wheels and connected by a drive chain to the rear wheel. The 1900s saw the conversion of many bicycles, or pedal cycles by adding small, centrally mounted spark ignition engines. There was then felt the need for reliable constructions. This led to road trial tests and competition between manufacturers. Tourist Trophy (TT) races were held on the Isle of Man in 1907 as reliability or endurance races. Such were the proving ground for many new ideas from early two-stroke-cycle designs to supercharged, multivalent engines mounted on aerodynamic, carbon fiber reinforced bodywork. The two-wheeler industry today has a significant role in the Indian Economy. With an annual turnover of Rs. 6,200 crores and a compounded average growth of 10 per -cent in the recent years, it is one if the few industrial sectors in the growth phase H.R .Institute of Higher Education, Hassan 8
  9. 9. Customer Satisfaction After Sales & Service. today. The reasons for this are not far to seek. The consumer’s who wants to be mobile today considers personal transportation as one of his basic needs. In India, the two-wheeler is used in variety of purposes, particularly in urban areas communicating to work, visiting people, carrying loads, outdoors jobs like selling and the like. In rural areas, it enables people to travel more frequently to nearby towns for their daily needs. In other words, it has also become a valuable support for increasing productivity and profits, besides helping personal transportation. The year 1997 was a difficult period for the automobile sector with the major sector with major player hit by the recession. However, two- wheelers came through un- scratched with a modest three per cent growth. One of the primary reasons for this has been the robust growth of the rural market. A series of good monsoons and high prices for agricultural commodities have increased the purchasing power of rural customers. Today, the rural market of over six lakhs Indian villages contributes 35 percent to total two wheeler sales. 2.1.2 THE TWO-WHEELER INDUSTRY BASICALLY COMPRISES 2.1.2.1 MOTOR CYCLES The motorcycles segment grew by 28% in terms of sales in 1995, which is remarkable by all standards. In the 1980’s the only available motorcycles in the Indian market were the conventional indigenously build Rajdoot, Bullet and Yezdi. This changed drastically when Japanese introduced their motorcycle in Indian market. The superior styling and better ergonomics led to increase in the market share. 2.1.2.2 SCOOTERS In 94 - 95 the scooter segment accounted for 46 - 80% of two wheeler industries crossed the one million mark. As such the scooters segment has grown by 34% - 37%, which is one of the segment achievements of industry. H.R .Institute of Higher Education, Hassan 9
  10. 10. Customer Satisfaction After Sales & Service. The most important contribution to the segment is Baja Auto with an installed capacity of 12.72-lakh scooters per annum. In act the company is the largest manufacture of two-wheeler in the country and fourth largest in world. Other Companies, which involve in manufacturing scooter are LML with a capacity if 20,000 scooter per annum and Kinetic Honda. In both the companies (LML Limited and Kinetic Honda) foreign partners enjoyed a majority stake. 2.1.2. 3. MOPEDS In 1972 Indian customers was introduced to the models of two-wheeler, which was popularly known as Mopeds. The segment was dominated by Luna, which become virtually to generic name for mopeds and come to be identified with lower middles class people of the country because it was the cheapest available two wheeler with maximum offered mopeds are for this smallest chunk in the Industry. However this segment has failed to grow especially compared to Motorcycles and Scooters. During the 1980,s mopeds are quite popular in first half of the 1980’s, the scooters showed a phenomenal growth of 65% during 1980 – 85. During 1994 mopeds registered a growth of just 13% Kinetic Engineering is one of the leading producers of mopeds in India. A major part of growth on the two wheeler industry has come from Motorcycles especially the Indo – Japanese 100 CC motorcycles which are considered fuel efficient, reliable and suited for rough roads. Scooterettes are also growing at a fast pace and are being increasingly perceived as a better option providing convenience and modern style, by urban customers. In this category, TVS Scooty holds a dominant market share. TVS Scooty, launched in 1994, with its elegant looks has definitely spurred the growth of this segment. The two-wheeler industry has come a long way from a modest production of 150 units in 1950 to three million units per year in 1998. H.R .Institute of Higher Education, Hassan 10
  11. 11. Customer Satisfaction After Sales & Service. 2.1.2.4 PROMISING FUTURE The future out look for the industry looks promising. Rising income levels in both urban and rural markets will ensure a rising market for the two-wheeler, considered a basic need. Most of the leading players such as TVS, Hero Honda and Bajaj Auto gearing up to strengthen their presence in this segment with a range of new products that will address the needs of specific consumer demand. Today customer preferences are driving the industry. Reliability, modern styling and economy are demanded by the mass segment while convenience the important features for the emerging segment the power and pleasure of riding a two wheeler as well. The manufacturers are responding to these customers needs with the introduction of new models and modifying existing models. The next few years will see a flood of new vehicles from various manufactures. These vehicles will only have not only have to improved aesthetics and comfort but also be environmental friendly. The motorcycle segment will also see many new models introductions from TVS, Hero Honda, and Bajaj. The market will see higher capacity vehicles in the 125 CC to 175 cc range compared to the predominantly 100 CC motorcycles sold now. The two-wheeler industry is geared up and going full steam ahead into the next century. H.R .Institute of Higher Education, Hassan 11
  12. 12. Customer Satisfaction After Sales & Service. 1990 – 91 CHANGING PROFILE OF TWO WHEELRS INDUSRTY 26% 50% Scooters Mopeds Motorcycles 24% 1997 – 98 H.R .Institute of Higher Education, Hassan 12
  13. 13. Customer Satisfaction After Sales & Service. 37% Scooters 39% Mopeds Motorcycles 20% 2.2 COMPANY PROFILE AN EYE SIGHT ON BAJAJ AUTO LIMITED 2.2.1 INTRODUCTION H.R .Institute of Higher Education, Hassan 13
  14. 14. Customer Satisfaction After Sales & Service. The Bajaj group came into existence during the turmoil and the heady exploria of Indian’s freedoms struggle. Jamanlal Bajaj, founder of the Bajaj group, was a confident and disciple of Mahatma Gandhiji and was deeply involved in the effort for freedom. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the company today, are often traced back to its birth during those long days of relentless devotion to a common cause. Kamalnayan, the eldest son of Jamanlal Bajaj, succeeded his father in 1942, at the age of twenty seven. Putting the nation before business, be devoted himself to the latter only after India achieved independence in 1947. But when be did so, he put his heart and soil into it. Within a short while, he not only consolidated the group, but also diversified into various manufacturing activities, elevating the group to the status it enjoys till this day. Rahul Bajaj heads the group. He has been the chairman of Bajaj since 1968is recognized as one of the most out standing business leaders in India. As dynamic and ambitions as his illustrious predecessors, he has been recognized for his achievements at various national and international forums. Bajaj is currently India’s largest two and three wheeler manufacturer and one of the biggest in the world. Bajaj has the long left behind its annual turnover of Rs. 72 million (1968), to currently register an impressive figure of Rs 42.16 billion (US$ 936 million). 2.2.1.2 CONSUMER AWARENESS ENRICHMENT TIPS To keep your vehicle up to date, few maintenance tips are as follows,  Pre delivery checks.  Tips on using a new vehicle.  Washing tips.  Ideal maintenance schedule. H.R .Institute of Higher Education, Hassan 14
  15. 15. Customer Satisfaction After Sales & Service.  Daily checks.  Free service checks.  Regular service checks.  Pollution control. 2.2.1.3 PRE DELIVERY CHECKS Following are the general guidelines you should follow While selecting a vehicle.  Check for smooth operation of fuel coak lever and accelerator.  Check engine idling and get it adjusted.  Check gear shifting and clutch lever for proper.  Adjustment and Working.  Check whether switches, speedometer and fuel meter  Operations for satisfactory working. H.R .Institute of Higher Education, Hassan 15
  16. 16. Customer Satisfaction After Sales & Service.  Check steering cum ignition lock and other locks e.g.  Luggage box, toolbox etc for proper working.  Check front and rear brakes for effective working.  Test drives the vehicle; see if any past is making an unwanted noise. 2.2.1.4 TIPS ON USING A NEW VEHICLE  Do not cross the 40 Kmph limit (up to 500Km) to Kmph (up to 200 Km)  Do not race the engine too much.  Do not start moving or racing the engine immediately after starting. Keep the engine during a few minutes to let the flow to all the engine parts.  Do not run the engine at constant speed for along time. Vary the speed from time to time.  Follow the specific instructions given in owner’s manual it dry with a Clean cloth.  Dry the vehicle and oil it. H.R .Institute of Higher Education, Hassan 16
  17. 17. Customer Satisfaction After Sales & Service. 2.2.1.5 FREE SERVICE CHECKS  Ensure that you get the following checks done in your free service.  Oil change – The oil level should be between the maximum and Minimum level  Air filters cleaning.  Spark plug cleaning and setting.  Fuel filters cleaning.  Engine, silencer decarburization H.R .Institute of Higher Education, Hassan 17
  18. 18. Customer Satisfaction After Sales & Service.  Tightening and adjustments of all major bolts / nuts, Control cables. 2.2.1.6 POLLUTION CONTROL Important tips to keep the emission low.  Keep the sparkplug clean and maintain specified gap Between electrodes.  Keep the air filter clean.  Get the carburetor tuned at an authorized service centre.  Avoid use of excess oil in fuel. H.R .Institute of Higher Education, Hassan 18
  19. 19. Customer Satisfaction After Sales & Service.  Avoid use of adulterated fuel.  Check the emission level once in 3 months and get the Engine tuned if it is above the prescribed limit.  Use the correct percentage of 2T oil. 2.2.1.7 NON USE MAINTENANCE  Keep the vehicle thoroughly.  Empty the fuel tank.  Start the Engine, consume the fuel inside the carburetor.  Inflate tyre to specified pressure, support the vehicle Such that both the tyres are not loaded.  Grease all unpainted parts.  Cover the vehicle properly.  If the vehicle is fitted with battery, remove it from Vehicle and subject it to bench charging, every fortnight. 2.2.1.8 THE CONSOLIDATED FINANCIAL RESULTS INCLUDE THE RESULTS OF THE FOLLOWING COMPANIES H.R .Institute of Higher Education, Hassan 19
  20. 20. Customer Satisfaction After Sales & Service. Name of the % Share holding Segment Consolidated as company and voting power of Bajaj Auto Ltd and subsidiaries A) Bajaj Auto 100 % Investment Subsidiary Holdings Ltd B) Bajaj Allianz 74 % Insurance Life Joint venture General Insurance Company Ltd C) Allianz Bajaj 74 % Insurance Life Joint venture Life Insurance Company Ltd D) Maharashtra 24 % Automotive and Joint venture Scooters Ltd Investments E) Bajaj Auto 46.15 % Hire purchase and Associate Finance Ltd financing 2.2 A REVIEW ON THE ANNUAL SALES OF TWO AND THREE WHEELERS IN 2008-09 H.R .Institute of Higher Education, Hassan 20
  21. 21. Customer Satisfaction After Sales & Service. Bajaj Auto records a sale of 140,117 units of two and three wheelers in March 09. 2.2.2.1 MOTORCYCLES SALES A total of 74,031 motorcycles were sold during March 08, as against a sale of 69,924 units in March 2009 a growth rate of 5.9%. April 1, 2003: This growth has been achieved despite very tough market conditions triggered by war, petrol price bikes, VAT related confusions etc. Such growth was enable by the strong product line up of the company-entry level CT 100 BYK, the new Pulsar 150cc of take of 10,754 units, Initial customer feedback is encouraging and company plans to produce over 30000 units during April 2009. 2.2.2.2 THREE WHEELERS Demand for 3 wheelers, has been strong and over 16000 3 wheelers have been sold in March, 09. Commercial production of GC 1000-new one ton goods carrier powered by high performance Kubota Diesel Engine has commenced a Waluj plant. Company expects to produce over 500 units of this model in April 09. 2.2.2.3 EXPORTS GROWTH H.R .Institute of Higher Education, Hassan 21
  22. 22. Customer Satisfaction After Sales & Service. Exports growth continues in March. Exports performance continues to be strong, with 7,119 two and three wheelers exported during the month, a growth of 53.8% over 4,628 units exported in Mar, 09. Export performance during the month would have comfortably crossed 11000 units, but for the Mumbai customers House Agents strike for a few days which bampered shipping of goods. As of 31st March over 4200 units awaiting shipping in Mumbai port. Fiscal Year 08-09 volumes total sales of 2 and 3 wheelers for 08-09 are 14,42,760 units recording a growth rate of 6.2% over last year. Motorcycles sales are 868,089 units against 656,018 units sold during 08-09 recording a healthy growth rate of 32.3%. Despite intense competition, in this all important segment, for the 3rd consecutive year, company has recorded market share improvement, which for 08-09 stood at 23%. Exports have been another high point of the year 94, 133 units have been exported-highest ever by the company and a whopping 112.4% growth over corresponding numbers of 44,311 units exported during the previous fiscal. Fiscal year 08-09 outlook based on product strength in critical motorcycle segment which is expected to contribute over 80% of 2 wheeler sales, company is bullish for the forth coming year. Discover and CT 100 have redefined be respective sub-segments and Pulsar 180 with its best in class performance and fuel efficiency, is making in roads in the Executive segment. Given the current uncertainties explained earlier, 08-09 is projected to be a difficult year. Despite this general back drop, based on its products, positioning and exports, company expects to sell over 1.6 million units in 08-09, achieving a 10% plus growth rate. H.R .Institute of Higher Education, Hassan 22
  23. 23. Customer Satisfaction After Sales & Service. 2.2.2.4 Following table shows the sales in March 2009 with comparison to previous year march 2008. March 09 March 08 Growth Motorcycles 868.089 656.018 32.3% Total 2 Wheelers 1.24.043 1.197.922 4.3% 3 Wheelers 193.717 160.684 20.6% Total 2 & 3 1.442.760 1.358.606 6.2% Wheelers Exports out of 94.133 44.311 112.4% above total 2 & 3 Wheelers 2.2.2.4 BOOK PROFIT OF THE FIRM Reflective of the growing competitive pressure in the Two wheeler industry. Bajaj Auto reported a marginal increase in turnover and net profit for the year ended Mar 2009. Aided by 6% increase in sales volume, the total income from operations rose 15% to Rs. 4,895.3 crores. For the year ended Mar 09 motorcycle sales rose 32% to 8.68 lakh units while 3 wheeler sales 21% to 1.94 lakh units. However the other two wheeler segment such as scooter and step they saw a net decline in sales volume. As a result, the total two wheeler sales inched up by 4% deposit a robust 21% increase in motorcycle sales. H.R .Institute of Higher Education, Hassan 23
  24. 24. Customer Satisfaction After Sales & Service. 2.2.2.5 FINANCIALS The operating profit margin rose to 18.9% from 17.5%. The cost control measures undertaken by the company along with the increased off take of higher value products such as Pulsar, CT 100 and 3 Wheeler helped the company to achieve a higher OPM. The increase in turnover and profitability helped Bajaj to record a 3.3% increase in post tax earnings to 5,38,42 crores. The company has maintained the dividend at 140% for the year ended Mar, 03. The impact of the competitive forces is evident in the fourth quarter of the previous fiscal. The turnover for this period rose by just 10% while the OPM saw a net decline. Over the past few years Bajaj has been fairly successful in segmenting the motorcycle market. It took the lead be launching CT 100 at the lower price spectrum and, with Avenger and Pulsar, which were positioned in the premium price band. However Hero Honda and TVS Motor have launched a product that competes with Bajaj’s range in almost all price segments. As a result, the company might find its growth rates getting stalled. 2.2.2.6 FORWARD LOOK For the financial year 2008 BAL is targeting two wheeler sales of 1.6 million units, inline with the 12% industry growth rate. But is motorcycle growth rate is 30%, with volumes crossing one million units, including projected Pulsar volume of 240,000 units. H.R .Institute of Higher Education, Hassan 24
  25. 25. Customer Satisfaction After Sales & Service. BOARD OF DIRECTORS • Rahul Bajaj Chairman • Madhur Bajaj Vice Chairman • Rajiv Bajaj Managing Director • Sanjiv Bajaj Executive Director • Rakesh Sharma CEO (International Business) • R C Maheshwari CEO (Commercial Vehicles) • S Sridhar CEO (Two Wheelers) H.R .Institute of Higher Education, Hassan 25
  26. 26. Customer Satisfaction After Sales & Service. 2.2.2.7 ORGANIZATION STRUCTURE Board of directors Managing Director Executive V.P President Purchase Marketing Sa Sales Operations R&D Production Quality HRD& Industrial Business Finance Engineer Assurance TQC Relations Planning Information Industrial Program Program Program Corporate Systems Business Scooty Motorcycle Moped Communication H.R .Institute of Higher Education, Hassan 26
  27. 27. Customer Satisfaction After Sales & Service. 2.2.2.8 Sales & Service Departments Senior Vice President Vice President Sales Head National Mgr National Mgr National Mgr National Mgr Area Mgr Area Mgr Area Mgr Area Mgr Territory Mgr Territory Mgr Territory Mgr Territory Mgr Functions of Sales & Service Departments  Improved customer Satisfaction  Customer relation Management  Build the Auto Bajaj Ltd  Improve channel Management  Expand dealer network H.R .Institute of Higher Education, Hassan 27
  28. 28. Customer Satisfaction After Sales & Service. 2.2.2.9 Finance Department Senior Vice President Vice President General Mgr General Mgr Asst General Asst General Asst General Asst General Mgr Mgr Mgr Mgr Manager 1 Manager 2 Other Staff Other Staff H.R .Institute of Higher Education, Hassan 28
  29. 29. Customer Satisfaction After Sales & Service. 2.2.2.10 Human Resources Development (HRD) Head of BAL DGM HRD Senior Manager (HRD) 3 Senior Administrative Assistants H.R .Institute of Higher Education, Hassan 29
  30. 30. Customer Satisfaction After Sales & Service. 2.2.3 FIRMS’S PROFILE H.R .Institute of Higher Education, Hassan 30
  31. 31. Customer Satisfaction After Sales & Service. 2.2.3.1 A BIRD VIEW OF ARPITA BAJAJ Arpita Auto Dealer’s has taken its birth in the year may 1, 2000 by appointing as a authorized dealer of Bajaj Auto Ltd. For the sales, service spares of two wheelers. A new showroom was started in Hassan in the heart of the city of the BM Road. In the early stages of the firm there were only 20 workers who were working. Due to the increase of sales and profit of the firm, they wanted to increase the scale of the business. So the purchased asset (site) in 1983, Hassan at BM Road. In that place, they constructed an exciting showroom for the purpose of business. It consists of 3 divisions. They are:- a. A department for sales. b. A department for service. c. A department for spares. • The sales department contains a head count of 13 members. • The service department contains a head count of 25 members. • The spare part department also contains a head count of 04 members to work. It is having computer facility for billing and charging the amount. 2.2.3.2 NATURE OF THE FIRM: Arpita Bajaj( is a sole trading firm. The founder of Arpita Bajajwas Vishwanath Patil who developed the firm into a greater extent. H.R .Institute of Higher Education, Hassan 31
  32. 32. Customer Satisfaction After Sales & Service. 2.2.3.4 INFRASTRUCTUAL FACILITIES:- The firm is having a total area of 2000 sq.ft. It is having a fabulous and an attractive showroom of 950 sq.ft. The spare part section is having on area of 1000 sq.ft. It is having a well equipped workshop with an area of 1800 sq.ft. The remaining area is using for parking and test riding of vehicles. The firm is having a separate counter for sales and for Bajaj Auto Finance. Bajaj Auto Finance is providing a good facility for customer like loans, free service etc. The customers will have the facility of loan by Bajaj Auto Finance Ltd., in Pune at an attractive rate of interest. The customer has to clear the installment within 12, 18, 24 & 36 months. 2.2.3.5 Table showing the total sales of Two Wheelers achieved by Arpita Auto Dealer in the last 2 years. YEAR TOTAL SALES OF 2 WHEELERS 2008-09 79 2009-10 120 The above table clearly shows that the sales of two wheelers are in cumulative increase except in the year 1995-96. So that Hassan Auto Dealer’s performing its function in a competitive way. 2.2.3.6 PROMOTIONAL STRATEGY OF THE FIRM:- Arpita Bajaj emerged as a fast moving seller of two wheelers of Bajaj Auto Ltd, it has undertaken various promotional tools to retain the existing customers and to forecast the prospective and failure customer. Following are the sales promotional tools adopted by the firm to increase its sales. 2.2.3.7 NEWS PAPER:- The firm has adopted the newspaper as an advertisement media for the promotion of its two wheelers. If give the Add in the all English newspapers like H.R .Institute of Higher Education, Hassan 32
  33. 33. Customer Satisfaction After Sales & Service. Times of India, Vijay Times, Indian Express, Deccan Herald etc. It also gives Add in local newspapers such as Vijaya Karnataka Janatha madhyama etc. 2.2.3.8 TELEVISION:- The firm displays its Add in different channels of television. It is an effective media of advertisement which is adopted by the firm to induce the prospective customers. 2.2.3.9 MAGZINES:- The firm subscribes its Add in various souvenirs and magazines of reputed colleges, educational institutions and in other institutions. 2.2.3.10 WINDOW DISPLAY:- The firm is having an exciting showroom and a large place for the display of vehicles. The vehicles will to display through windows. So it attracts the attention of the customers when they enter into the showroom. 2.2.3.11 OTHERS:- The firm displays its products big banners, posters, boards across the major busy roads and also leaf lets, pomp lets issued to the customers. The posters, banners will be displayed in the sports events, drama festivals, youth festivals, exhibitions, fares, and other famous festivals. 2.2.3.12 PRODUCT PROFILE: Type of Company: Public Foundedin:1945 Headquarters:Pune,India H.R .Institute of Higher Education, Hassan 33
  34. 34. Customer Satisfaction After Sales & Service. Products:Scooters,Motorcycle,andAutorickshaw. Bajaj Auto Ltd. is an important Indian automobile manufacturer. Bajaj Auto is the second largest two-wheeler manufacturer in India and one of the largest in the world. It is also the earliest one in India to venture into automobile manufacturing. The company produces and exports scooters, motorcycles and the auto rickshaw. Bajaj Auto is based in Pune, Maharashtra, with plants in Akurdi and Chakan, Waluj and Pantnagar.Uttarakhand. Bajaj Auto Limited was founded on November 29, 1945. At that time it was known as M/s Bachraj Trading Corporation Private Limited. The company initially sold imported two- and three-wheelers in India. In 1959, Bajaj Auto obtained license from the Government of India to manufacture two- and three-wheelers in the country. In 1960, Bajaj Auto became a public limited company Over the last few years, Bajaj Auto has smartly and successfully transformed its image from a scooter manufacturer to a two wheeler manufacturer. At present, the product range of Bajaj Auto includes Scooters and Motorcycles. The last few years have seen company's real growth in numbers after it successfully introduced a number of new models in various segments of the fast growing bike market in India. In fact, Bajaj Auto smartly introduced new segments in the motorcycle market to take on its arch rival and market leader Hero Honda. 2.2.3.13 Bajaj Avenger Bajaj Avenger is a cruiser bike from the stable of Bajaj Auto. Bajaj Avenger is modeled along the lines of Kawasaki Eliminator as it draws the styling and other design cues from Bajaj Eliminator which had an air-cooled, single cylinder Kawasaki engine. 2.2.3.14 Bajaj CT 100 Bajaj CT 100 is a 100 CC entry-level bike from Bajaj Auto. Bajaj CT 100 clearly targets the value-for-money conscious young bike buyer and offers build quality and trim levels of higher-end bikes at a price closer to that of a traditional metal-bodied H.R .Institute of Higher Education, Hassan 34
  35. 35. Customer Satisfaction After Sales & Service. scooter. 2.2.3.15 Bajaj Platina Baja Platina is a bike built by the Bajaj Auto. Baja Platina borrows extensively from the Bajaj Wind and Bajaj CT 100 models. 2.2.3.16 Bajaj Discover DTSi Bajaj Discover DTSi is a 125 cc bike. The Bajaj Discover has been the highest selling 125 cc bike in India since its inception and far ahead of other bikes in its segment. It is equipped with world’s first 125cc DTSi engine which gives best in class power of 8.47kW 2.2.3.17 Bajaj Pulsar DTSi Bajaj Pulsar has achieved the status of a cult bike in India. The sturdy and macho looking bike has been hugely popular in the Indian motorcycle market and is largely responsible for changing the 'scooter manufacturer' image of Bajaj Auto. 2.2.3.18 Bajaj Wave Bajaj Wave scooter borrows heavily from the old Bajaj Safire in terms of the overall design but it comes with several new refinements. Bajaj has incorporated its patented DTSi (Digital Twin Spark Ignition) technology and Exhaust TEC into Bajaj Wave. 2.2.3.19 Bajaj Wind 125 Bajaj Wind* 125 is an executive segment, upright postured, fuel efficient bike from Bajaj Auto. Though manufactured in India, Bajaj Wind 125 is available only for select international markets. 2.2.3.20 Auto rickshaws •Bajaj Auto rickshaw Rear Engine 2 stroke petrol H.R .Institute of Higher Education, Hassan 35
  36. 36. Customer Satisfaction After Sales & Service. •Auto rickshaw WH175ZK •Auto rickshaw passenger and goods carrier •Star Auto rickshaw 4 stroke petrol 2.2.4 ACHIEVEMENTS: Bajaj Auto Ltd achieve some Awards from some companies, the are 2005 •Bajaj Discover DTS-I was chosen as Bike of the Year and Indigenous Design of the Year by Overdrive Awards. 2004 •Bajaj Auto was chosen as Bike Maker of the Year by ICICI Bank Overdrive Awards. •DTS-I Technology was chosen as Auto Tech of the Year by ICICI Bank Overdrive Awards. •Bajaj Pulsar DTS-I became Bike of the Year by ICICI Bank Overdrive Awards. •Wind 125 chosen as the Two Wheeler of the Year by CNBC AUTOCAR Awards. •Wind 125 chosen as the Bike of the Year by Business Standard Motoring. 2003 •Bajaj Pulsar 180 DTS-I chosen as Wheels Viewers Choice Two Wheeler of the Year and Best Two Wheeler by BBC World Wheels Award. H.R .Institute of Higher Education, Hassan 36
  37. 37. Customer Satisfaction After Sales & Service. •Bajaj Pulsar 150 DTS-I chosen as Best Two Wheeler between Rs. 45,000 to Rs. 55,000 by BBC World Wheels Award. •Bajaj Boxer AT KTEC chosen as Best Two Wheeler under Rs. 30,000 by BBC World Wheels Award. •Bajaj Pulsar chosen as Motorcycle Total Customer Satisfaction Study by NFO Automotive. •Bajaj Pulsar chosen as Bike of the Year by ICICI Bank OVERDRIVE Awards. 2002 •Bajaj Pulsar chosen as Most Exciting Bike of the Year by OVERDRIVE Awards. •Bajaj Eliminator chosen as Bike of the Year by OVERDRIVE Awards. 2001 •Bajaj Eliminator chosen as Most Exciting Bike of the Year by OVERDRIVE Awards. H.R .Institute of Higher Education, Hassan 37
  38. 38. Customer Satisfaction After Sales & Service. 2.2.5 SWOT ANALYSIS STRENGTHS WEAKNESS SWOT ANALYSIS THREATS OPPORTUNITY H.R .Institute of Higher Education, Hassan 38
  39. 39. Customer Satisfaction After Sales & Service. STRENGTHHS:  Government Bank giving more attention to installation loan improvement  Less use of chemicals  Ever time more demand  Minimum Response Time due to good Team Work.  Focus on Customer Delight besides Customer Satisfaction.  Latest Hi-tech Core Concepts of Production & Quality. WEAKNESS:  More than 50% of the targeted customers are youths.  High dependence on the transportation.  Old methods and techniques are in use  Cost for maintaining standard is more. H.R .Institute of Higher Education, Hassan 39
  40. 40. Customer Satisfaction After Sales & Service. OPPORTUNITY:  Bajaj Auto Ltd said it plans to expand its presence in south-east Asia and Africa to tap the growing demand for two-wheelers and motorized rickshaws in these markets.  Bajaj is India's second-largest motorcycle maker, which also makes scooters and dominates the Indian market for three-wheeled motorised rickshaws, has enjoyed a boom in India's $4 billion-a-year market of nearly 5 million bikes, the world's second-largest after China.  Bajaj plans to set up a manufacturing plant in Indonesia in a joint venture with its local distributor, and use that as a hub for expanding exports in the rest of south-east Asia.  Bajaj will hold the majority stake in the joint venture, which will be finalised in the next three months, he said, declining to disclose the value of its investment.  Bajaj will also set up an assembly unit in Nigeria.  Bajaj, overtaken as India's top two-wheeler maker in 2002 by Hero Honda Motors Ltd, has benefited from rising incomes in Asia's third-largest economy, besides cheaper loans and a shift in preference to high-value motorbikes from scooters.  But Bajaj, which uses Kawasaki Heavy Industries Ltd technology for some models, faces growing competition from Honda Motorcycles, Suzuki Motor and Yamaha, besides local players TVS Motor and Kinetic Motors. H.R .Institute of Higher Education, Hassan 40
  41. 41. Customer Satisfaction After Sales & Service.  Bajaj Auto to launch cheap car to tackle Tata’s car. The Proposed cheap car from Bajaj Auto will have a 500 or 600cc engine and diesel, petrol or CNG engine options. THREATS;  Faced with tough competition.  Competitors such as LML, Hero Honda and TVS Motor are also slated to launch models this year.  In the late 1990s, Bajaj Auto, the leading scooter manufacturer, faced a crisis. There was a shift from scooters to motorcycles. Urban youth as well as rural markets were patronizing the motorcycles, effectively ignoring scooters. H.R .Institute of Higher Education, Hassan 41
  42. 42. Customer Satisfaction After Sales & Service. 3. LITRATURE REVIEW Customer Satisfaction: Customer satisfaction is the determination of the degree to which a company’s products or services meet the requirements of the end user. “Customer Satisfaction is the customer’s evaluation of a product or a service in terms of whether that product or service has met their needs and expectations.” Customers’ expectations are continuously increasing. Brand Loyalty is a thing of past. Customers seek out products and producers that are best able to satisfy their requirement. It is not enough if the product meet customer expectations like the behavior or attitude of the person. Customer Satisfaction is the combination of both technical features and human behavioral aspects. Customer Satisfaction can be represented as follow: Performance features address the issues on conformance to the standards and variability. Behavior aspects deal with the following component of services: H.R .Institute of Higher Education, Hassan 42
  43. 43. Customer Satisfaction After Sales & Service. • Responsiveness - Readiness of employee to provide service. • Courtesy - Respect, friendliness of contact personnel. • Complete Resolution - Listening to customers. • Communication - Speaking to the customers in their language. • Credibility – Taking ownership in resolving the complaints. If customer experience matches customer expectation, it leads to customer satisfaction and if customer experience doesn’t match with ‘Customer Expectation’, leads to ‘Customer Dissatisfaction’. On similar lines if it exceeds expectation leads to ‘Customer Delight’. 3.1 PHASES IN CUSTOMER SATISFACTION Customer satisfaction can be divided into three phases: 3.1.1 Pre sales period: During these phase the customer satisfactions are built through the various information on the product, i.e. its quality, core benefits, its price distribution outlet and so on. The customer is in a way attracted to the benefits of the product that he would gain after the purchase of the product. 3.1.2 During sales period: During this phase the customer is experiencing on being converted from a prospect to an actual buyer. Here Customer Satisfaction will be felt if given an opportunity to inspect the product, attentive services ambience etc. 3.1.3 After sales period: H.R .Institute of Higher Education, Hassan 43
  44. 44. Customer Satisfaction After Sales & Service. This phase starts after the customer has brought the product and started using it. Customer satisfaction will be matching customer expectation if the required support or advice is provided by the firm, efficient and effective follow up process, efficient repair and maintenance service and smooth and straight forward complaint follows: 3.1.4 Product and Service Features: Customer satisfaction with a product or service is influenced significantly by the customer evaluation of product and service features. The important features and attributes and perception of those features all determine the overall satisfaction. Consumer emotion can also affect their perceptions of satisfactions with products and services. These emotions can be stable pre- existing emotions like mood state or life satisfaction. These include positive emotions such as happiness, pleasures and negative emotions such as sadness, sorrow, regret, anger and depression. 3.2 Attributions for Service Success or Failure: Attributions- the perceived courses of events, influence, perceptions of satisfaction as well. When the product or service is either much better or much worse than expected, the customers tend to look for the reasons and their assessments of reasons can influence their satisfaction. Customer Satisfaction is also influenced by perceptions of equity and fairness. Customers ask themselves whether they had been treated fairly compared with other customers, whether they got a better treatment, better prices or better quality service. Most of the companies believe in TCS-“Total Customer Satisfaction”. If the exiting customers are satisfied, then they advertise the product and there by it reduces the cost on promotional activities. Their peer groups including friends and relatives will also be influenced toy the product and thereby enabling the company to earn high market share. Satisfaction of the customers is also important tool to the company’s planning for the future. Based on the satisfaction level they can plan out their future marketing H.R .Institute of Higher Education, Hassan 44
  45. 45. Customer Satisfaction After Sales & Service. policies. Any modification required enhancing the level higher and also plan out the promotional policies required in the future. Hence customer satisfaction is very important in marketing action. Action planning organizes activity to improve customer satisfaction by operational defining and functionally deploying customer requirement. The concept of satisfaction is one about which there are presently few agreed upon definition or approaches to measure nevertheless, Hunt has summarized the concept in the following statement. Satisfaction is a kind of stepping away from an experiences and evaluation it, one could have a pleasure experiences that caused dissatisfaction because even thought pleasurable, it was supposed or expected to be. So satisfaction/dissatisfaction is not an emotion, evaluation of an emotion. Even though Bajaj is facing cut throat competition in the market, it is making huge profits. There is a need to understand the customer buying behavior and customer Satisfaction towards the product. Therefore Bajaj India Limited Company chooses what the factors which make the customers satisfy are and what are the changes which are required in the future. The research intends to prove and understand the consumer’s perception and attitude towards Bajaj Motors. Research also studies to find out the level of customer satisfaction towards Bajaj on different parameters. By this the company would like to know their demerits and increase their standard in the industry. 3.3 Definition for After-sales Service Customer support following the purchase of a product or service. In some cases, after- sales service can be almost as important as the initial purchase. The manufacturer, retailer, or service provider determines what is included in any warranty (or guarantee) package. This will include the duration of the warranty" traditionally one year from the date of purchase, but increasingly two or more years “maintenance and/ or replacement policy, items included/excluded, labor costs, and speed of response. In the case of a service provider, after-sales service might include additional training or helpdesk availability. Of equal importance is the customer's perception of the degree H.R .Institute of Higher Education, Hassan 45
  46. 46. Customer Satisfaction After Sales & Service. of willingness with which a supplier deals with a question or complaint, speed of response, and action taken. Quality, price, and service are three factors are critical to the success of any export sales effort. Quality and price are addressed in earlier chapters. Service, which is addressed here, should be an integral part of any company's export strategy from the start. Properly handled, service can be a foundation for growth. Ignored or left to chance, it can cause an export effort to fail. Service is the prompt delivery of the product. It is courteous sales personnel. It is a user or service manual manual modified to meet your customer's needs. It is ready access to a service facility. It is knowledgeable, cost-effective maintenance, repair, or replacement. Service is location. Service is dealer support. Service varies by the product type, the quality of the product, the price of the product, and the distribution channel employed. For export products that require no service - such as food products, some consumer goods, and commercial disposables - the issues On the other hand, the characteristics of consumer durables and some consumables demand that service be available. For such products, service is a feature expected by the Consumer. In fact, foreign buyers of industrial goods typically place service at the forefront of the criteria they evaluate when making a purchase decision. All foreign markets are sophisticated, and each has its own expectations of suppliers and Vendors. U.S. manufacturers or distributors must therefore ensure that their service Performance is comparable to that of the predominant competitors in the market. This level of performance is an important determinant in ensuring a reasonable competitive Position, given the other factors of product quality, price, promotion, and delivery. An exporting firm's strategy and market entry decision may dictate that it does not provide after-sale service. It may determine that its export objective is the single or multiple opportunistic entries into export markets. Although this approach may work in the short term, subsequent product offerings will be less successful as buyers recall H.R .Institute of Higher Education, Hassan 46
  47. 47. Customer Satisfaction After Sales & Service. the failure to provide expected levels of service. As a result, market development and sales expenditures may result in one-time 3.4 Service Delivery Options: Service is an important factor in the initial export sale and ongoing success of products in foreign markets. U.S. firms have many options for the delivery of service to foreign buyers. A high-cost option - and the most inconvenient for the foreign retail, wholesale, commercial, or industrial buyer is for the product to be returned to the manufacturing or distribution facility in the United States for service or repair. The buyer incurs a high cost and loses the use of the product for an extended period, while the seller must incur the export cost of the same product a second time to return it. Fortunately, there are practical, cost-effective alternatives to this approach. If the selected export distribution channel is a joint venture or other partnership arrangement, the overseas partner may have a service or repair capability in the markets to be penetrated. An exporting firm's negotiations and agreements with its partner should include explicit provisions for repairs, maintenance, and warranty service. The cost of providing this service should be negotiated into the agreement. For goods sold at retail outlets, a preferred service option is to identify and use local service facilities. Though this requires up-front expenses to identify and train local service outlets, the costs are more than repaid in the long run. For example, a leading Canadian manufacturer of consumer personal care items uses U.S. distributors and sales representatives to generate purchases by large and small retailers across the United States. The products are purchased at retail by individual consumers. The Canadian firm contracted with local consumer electronic repair facilities in leading U.S. cities to provide service or replacement for its product line. Consequently, the manufacturer can include a certificate with each product listing "authorized" local warranty and service centers. H.R .Institute of Higher Education, Hassan 47
  48. 48. Customer Satisfaction After Sales & Service. There is administrative, training, and supervisory overhead costs associated with such a warranty and service program. The benefit, however, is that the company is now perceived to be a local company that competes on equal footing with domestic U.S. manufacturers. U.S. exporters should keep this example in mind when entering foreign markets. Exporting a product into commercial or industrial markets may dictate a different approach. For the many U.S. companies that sell through distributors, selection of a representative to serve a region, a nation, or a market should be based not only on the distributing company's ability to sell effectively but also on its ability and willingness to service the product. Assessing that ability to service requires that the exporter ask questions about existing service facilities; about the types, models, and age of existing service equipment; about training practices for service personnel; and about the firm's experience in servicing similar products. If the product being exported is to be sold directly to end users, service and timely performance are critical to success. The nature of the product may require delivery of on-site service to the buyer within very specific time parameters. May have to send personnel to the site to provide service. The sales contract should anticipate a reasonable level of on-site service and should include the associated costs. Existing performance and service history can serve as a guide for estimating service and warranty requirements on export sales, and sales can be costed accordingly. This practice is accepted by small and large exporters alike. At some level of export activity, it may become cost-effective for a U.S. company to establish its own branch or subsidiary operation in the foreign market. The branch or subsidiary may be a one-person operation or a more extensive facility staffed with sales, administration, service, and other personnel, most of whom are local nationals in the market. This high-cost option enables the exporter to ensure sales and service quality, provided that personnel are trained in sales, products, and service on an H.R .Institute of Higher Education, Hassan 48
  49. 49. Customer Satisfaction After Sales & Service. ongoing basis. The benefits of this option include the control it gives to the exporter and the ability to serve multiple markets in a single region. Manufacturers of similar or related products may find it cost-effective to consolidate service, training, and support in each export market. Service can be delivered by U.S.- based personnel, a foreign facility under contract, or a jointly owned foreign-based service facility. Despite its cost benefits, this option raises a number of issues. Such joint activity may be interpreted as being in restraint of trade or otherwise market controlling or monopolistic. Exporters that are considering it should therefore obtain competent legal counsel when developing this joint operating arrangement. Exporters may wish to consider obtaining an export trade certificate of review, which provides limited immunity from U.S. antitrust laws. 3.5 Ten Rules for Great Customer Service Think about the last time you had a negative buying experience. Did an e-commerce site fail to respond to your email query? Did a sales associate at your neighborhood computer store fail to know the difference between a floppy drive and a hard drive? Perhaps you were left on hold for an inordinate Efficient and affordable online customer service training. Amount of time when you called a mail-order company's toll-free line Negative buying experiences are almost always linked to shoddy customer service. Even though most businesses claim that they put people first, it's rare to find good customer support. But customer service isn’t extinct. In fact, after consumer groups and the media took potshots last year at e-commerce sites for leaving customers in the lurch, many businesses began to focus more attention on their service. Strong customer service is a business essential. Providing it isn’t as difficult if you and your employees achieve these 10 basic rules: 3.5.1 Commit to quality service. Everyone in the company needs to be devoted to creating a positive experience for the customer. Always try to go above and beyond customer expectations. 3.5.2 Know your products. H.R .Institute of Higher Education, Hassan 49
  50. 50. Customer Satisfaction After Sales & Service. Convey an articulate and in-depth knowledge of products and services to win customer trust and confidence. Know your company’s products, services, and return policies inside and out. Try to anticipate the types of questions that customers will ask. Update and amend your FAQ page frequently. 3.5.3 Know your customers. Try to learn everything you can about your customers in order to tailor your service approach to their needs and buying habits. Talk to customers about their experience with your company, and listen to their complaints. In this way, you can get to the root of customer dissatisfaction. 3.5.4 Treat people with courtesy and respect. Remember that every time that you, your employees, and your colleagues make contact with a customer — whether it’s by email, phone, written correspondence, or a face-to-face meeting — the interaction leaves an impression with that customer. Use conciliatory phrases — "Sorry to keep you waiting," "Thanks for your order," "You’re welcome," and "It’s been a pleasure helping you" — to demonstrate not only your commitment to customer satisfaction but your dedication to courtesy. 3.5.5 Never argue with a customer. You know very well that the customer isn’t always right. However, it is important that you do not focus on the missteps of a particular situation; instead, concentrate on how to fix it. Research shows that 7 out of 10 customers will do business with a company again if that business resolves a complaint in their favor. 3.5.6 Don’t leave customers in limbo. Repairs, callbacks, and emails need to be handled with a sense of urgency. Customers want immediate resolution, and if you can give it to them, you will probably win their repeat business. Research shows that the instance of repeat business goes up to 95 percent when complaints are resolved on the spot. 3.5.7 Always provide what you promise. H.R .Institute of Higher Education, Hassan 50
  51. 51. Customer Satisfaction After Sales & Service. Fail to do this and you’ll lose both credibility and customers. If you guarantee a quote within 24 hours, get the quote out in a day or less. If and when you neglect to make good on your promise, apologize to the customer and offer some type of compensation, such as a discount or free delivery. Overall, only make promises that you are confident that you and your business can keep. 3.5.8 Assume that your customers tell the truth. Even though it may appear that customers lie to manipulate a situation to their advantage, it is to your advantage to give them the benefit of the doubt. The majority of customers don’t like to complain; in fact, they’ll go out of their way — perhaps all the way to a competitor — to avoid it. If you hear unhappy rumblings from your customers, take their complaints to heart and do your best to appease their dissatisfaction. 3.5.9 Focus on making customers — not on sales. Salespeople, especially those who get paid on commission, sometimes focus on the volume instead of on the quality of the sale. Remember that to keep a customer’s business is more important than to close a sale. Research shows that it costs six times more to attract a new customer than it does to keep an existing one. Moreover, happy customers are the best and most effective way to find new customers. 3.5.10 Make it easy to buy. The buying experience in your store, on your Web site, or through your catalog should be as easy as possible. Eliminate unnecessary paperwork and forms, help people to find what they need, explain how products work, and do whatever else you can to facilitate transactions. 3.6 New Sales Opportunities and Improved Customer Relations: Foreign buyers of U.S.-manufactured products typically have limited contact with the manufacturer or its personnel. The Foreign Service facility is, in fact, one of the major contact points between the exporter and the buyer. To a great extent, the U.S. manufacturer's reputation is made by the overseas service facility. H.R .Institute of Higher Education, Hassan 51
  52. 52. Customer Satisfaction After Sales & Service. The service experience can be a positive and reinforcing sales and service encounter. It can also be an excellent sales opportunity if the service personnel are trained to take advantage of the situation. Service personnel can help the customer make life cycle decisions regarding the efficient operation of the product, how to update it for more and longer cost-effective operation, and when to replace it as the task expands or changes. Each service contact is an opportunity to educate the customer and expand the exporter's sales opportunities. Service is also an important aspect of selling solutions and benefits rather than product features. More than one leading U.S. industrial products exporter sells its products as a "tool to do the job" rather than as a "truck" or a "cutting machine" or "software." Service capability enables customers to complete their jobs more efficiently with the exporter's "tool." Training service managers and personnel in this type of thinking vitalizes service facilities and generates new sales opportunities. Each foreign market offers a unique opportunity for the U.S. exporter. Care and attention to the development of in-country sales and distribution capabilities is paramount. Delivery of after-sales service is critical to the near- and long-term success of the U.S. Company’s efforts in any market. Senior personnel should commit to a program of regular travel to each foreign market to meet with the company's representatives, clients, and others who are important to the Success of the firm in that market. Among those persons would be the commercial officer at the Commercial Service's post and representatives of the American Chamber of Commerce and the local chamber of commerce or business association. The benefits of such a program are twofold. First, executive management learns more about the foreign marketplace and the firm's capabilities. Second, the in-country representative appreciates the attention and understands the importance of the foreign market in the exporter's long-term plans. As a result, such visits help build a strong, productive relationship. H.R .Institute of Higher Education, Hassan 52
  53. 53. Customer Satisfaction After Sales & Service. 3.7 Measuring customer satisfaction Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires. Gaining high levels of customer satisfaction is very important to a business because satisfied customers are most likely to be loyal and to make repeat orders and to use a wide range of services offered by a business. Studies carried out by companies like Argos and Cadburys have found very high levels of customer satisfaction. It is not surprising because these companies emphasize market research and marketing as the tools to find out what customers want. Knowing what your customer wants then makes it possible to tailor everything you do to pleasing the customers. There are many factors which lead to high levels of customer satisfaction including: Products and services which are customer focused and then provide high levels of value for money. Customer service giving personal attention to the needs of individual customers. After sales service. Following up the original purchase with after sales support such as maintenance and updating for example in the updating of computer packages. This occurs when they feel that the goods and services that they buy have been specially produced for them or for people like them. This relates to a wide range of products such as razors that are designed for ease of use and good quality finish, petrol products that are environmentally friendly and customized to meet the needs of particular types of engines, etc. 3.4 Service Quality According to Vavra (1995), quality is consistently delivering products and services that fully meet consumer needs and expectations. Quality is defined by Stonebraker and Leong (1994) in the following terms: H.R .Institute of Higher Education, Hassan 53
  54. 54. Customer Satisfaction After Sales & Service. Product or service quality requires a total system, which identifies customer requirements, which designs the product/service to those requirements and which establishes a production or service delivery system to produce in conformance with the specifications. According to Woodruff (1997), customer value is: A customer's perceived preference for and evaluation of those product attributes, attribute Performances, and consequences arising from use that facilitate (or block) achieving the Customer’s goals and purposes in use situations. Vandermerwe (1996) makes three assumptions regarding customer value: 1. Value is not what goes into a product, but what a customer gets out of it 2. A customer gets this value out over a period of time, rather than at a point in time 3. Value happens in the customer's space rather than in supplier’s space, where only costs Accumulate. According to Naumann and Giel , becoming market driven means identifying market growth, market attractiveness, and target markets, while becoming customer driven means using the customer to drive continuous improvement, organizational reinvention, and radical redesign. When a company is customer driven, it means that the customer is the one to decide on the supplier's value added processes. Quality work does not mean quality service (Maister, 1997). According to Brown (1992), customers prefer organizations that deliver quality service, and suppliers can charge premium for quality services. Early research (Grönroos, 1982) suggests that customers assess service quality by comparing what they feel a seller should offer and compare it against the seller's actual service performance. Quality control and marketing must take place during service production and consumption. Grönroos (1988) has identified a list of six criteria of good perceived quality professionalism and skills, attitudes and behaviour, accessibility and flexibility, reliability and trustworthiness, recovery, and reputation and credibility. H.R .Institute of Higher Education, Hassan 54
  55. 55. Customer Satisfaction After Sales & Service. The first is outcome-related, reputation and credibility are image-related, and the rest are process-related. Storbacka and Holmlund note that relationship quality can be seen as an antecedent to many other perception concepts, for example, value, satisfaction, trust, and commitment. The service quality model of Parasuraman (1985) identified five key gaps that can cause problems in service delivery. These gaps are: 1. Research gap – between customer expectations and management's perception of those Expectations. 2. Planning and design gap – between management's perception of what the customer wants and the designed capabilities of the system that management develops to provide the service. 3. Implementation gap – between what the service system is designed to provide and what it actually provides. 4. Communication gap – between what the service system provides and what the customer is told it provides. 5. Reality gap – between customers' service expectations and their perception of that service A company should always pay attention to the customer perceptions and expectations. If there is a difference between customer expectations and perceptions, there is a gap and in practice, it does not matter whether the gap is based on facts or feelings, but how the customer perceives service matters . In studies of customers' expectations of service quality and their actual experiences, the following five elements are seen as the most important to a buyer (Gitomer, 1998, Heskett et al. 1990, Parasuraman and Grewal. • Reliability – ability to provide what was promised • Assurance – knowledge and courtesy of employees and their ability to convey trust and Confidence. • Tangibles – physical facilities, equipment and the appearance of the personnel • Empathy – caring and individual attention H.R .Institute of Higher Education, Hassan 55
  56. 56. Customer Satisfaction After Sales & Service. • Responsiveness – willingness to help and provide prompt service Two critical dimensions are reliability and responsiveness. Generally, reliability is the most important for customer when they assess service. Responsiveness means anticipating problems before they occur, rather than fixing problems quickly. Companies must work at making sure that problems will not occur at all. Once the customer is sure about the quality of the product and responsiveness of the employees, the probability of a customer becoming a loyal customer increases. According to Friday and Cotts (1995), customers evaluate services based on the purpose of the service, necessity, importance, results, cost, and risk. In order to have appropriate expectations, a customer should have a full picture of the purpose of a job. Depending on the customer’s perception, the necessity of a service can vary. If a service is necessary to help customers perform their jobs, they have high expectations for the job. If a customer sees a risk associated with dealing with the company, their perception of the added value can be minimal. According to Naumann (1994), determinants of service quality are: • Reliability – consistency of services • Responsiveness – willingness or readiness of employees to provide service • Competence – possession of required skills • Access – approachability and ease of contact • Courtesy – politeness, respect, consideration, and friendliness • Communication –keeping customers informed and listening • Credibility – honesty, trustworthiness • Security – freedom from danger, risk, or doubt • Tangibles – physical evidence of the service Products are made up of two elements: basic features such as components, ingredients and performance, and such added value components as image, service, styling, and support. Every product additionally entails services. Customers do not always H.R .Institute of Higher Education, Hassan 56
  57. 57. Customer Satisfaction After Sales & Service. differentiate between product and service quality, but regard these elements as a package. Research shows (Naumann, 1994) that improving tangible product quality is easier than improving service quality for most companies. Its implication is that service quality is more difficult to replicate, as service quality derives from corporate culture and therefore it can be a more permanent competitive advantage . In the customer evaluation process it has been reported that customers perceive greater risk when purchasing services than products, rely more on information from personal sources, and use price and physical facilities as the major cues to service quality. Customers can be reluctant to try new services because of the risks involved (Cannie, 1994). For many non-professional services, the customer's set of alternatives includes self-provision of the service. Competing options for services are normally smaller than for products and consumers carry out greater post-purchase evaluation with services than with products. Customers define quality frequently through their subjective and preconceived values. The measures of quality in service organizations are generally more subjective than in the manufacturing environment. Therefore, the manufacturing view of quality does not apply in isolation, but must be seen in the context of the customer service environment in which the product is delivered. Service quality is one element of the service equation. Frequently, the results are more important to the customer than the process quality. In certain cases, price and other acquisition costs can be more important than process quality (see the customer value equation). Value is not equated with low prices; services and goods of high value can be at high or low prices. As customer needs are different, customers are willing to pay very different prices for a given service, depending on its importance. H.R .Institute of Higher Education, Hassan 57
  58. 58. Customer Satisfaction After Sales & Service. The resulting value to the customer over the costs creates potential profit. It has been estimated that a 5 per cent improvement in customer loyalty would result in a 25 to 85 percent improvement in profit in service industries. The customer value concept holds that customers buy what creates the most value for them. It has also been defined as an emotional bond created between a customer and a supplier. A precondition for this bond to be established is that the product be able to meet or exceed customer's expectations. Customers can be delighted if the supplier is able to improve its performance continuously. Service quality is a logical driver of perceived value. Even if the buyer-seller relationship involves a physical product, excellent presale or postsale can add to benefits received and reduce the buyer's non-monetary cost like time, effort, or mental stress. There are differences in customers' abilities to evaluate the quality of tangible goods and services. In general, most goods are easier to evaluate compared to most services and it seems that most complex services are the most difficult to evaluate claim that quality of service equals delivered service quality minus service expected. Quality of service is seen to be similar to customer satisfaction. Realized that the results from a service are frequently difficult to assess, in some cases even after the purchase of service. The service value is a subjective matter and is defined by the customers. Stenberg (1997) calculates total added value for the customer as the difference between the customer's benefits and costs including both quantitative and qualitative aspects. The customer value equation is the customer perspective that influences purchasing decisions. The value and goods delivered to the customers equals the results created for them as well as the quality of the processes used to deliver the results, all in relation to the price of a service to the customer and other costs incurred by the customer in acquiring the service. H.R .Institute of Higher Education, Hassan 58
  59. 59. Customer Satisfaction After Sales & Service. The value of the results varies with the size of the service tasks and their importance for the customer. Frequently, the way a service is provided is as important as the results. For example, in a study of health care, more than half of the claims did not involve patient injury or unpleasant effects. This has the following effects on service providers. • Service quality is relative • Service quality is defined by the customer • Service quality varies from customer to customer • Service quality can be enhanced by meeting customer expectations and controlling those expectations. A company's most significant success factor is the ability to deliver better customer value than the competitors do. By analysing (McDougall et al., 1997) the components of customer value, a company can estimate a customer's true profitability. Customer perception of expected benefits consists of product and service attributes. Fredericks and Salter's "customer value package" additionally includes company image relative to the competition. Good customer value consists of product value, service value, and value-based pricing. Sacrifice consists of transaction cost, life cycle cost, and risk (Naumann, 1994). Many customers measure their costs only in terms of price, but in certain cases, the acquiring costs can be substantial and convenience costs can have a value for a customer. Customers' perceived risks should be reduced in ways that would increase their expectations and create competitive advantage. Service reliability reduces the costs of service delivery and builds value for the customers. For an organization that offers a service whose quality cannot be judged in advance, a service guarantee may represent an important marketing tool, and it can be significant for the potential customer to whom this service may cause a substantial risk. H.R .Institute of Higher Education, Hassan 59
  60. 60. Customer Satisfaction After Sales & Service. Service guarantees may further help the supplier to focus on its customers and can even lead to the re-design of the service process with breakthrough service. 3.6 Five basic customer value lessons are: 1. Customer defines the appropriate product quality, service quality and reasonable price 2. Customer value expectations are formed relative to competitive offerings 3. Customer expectations are dynamic, always demanding 4. Product and service quality must extend throughout the channel 5. Maximizing customer value requires total organizational involvement and commitment. Walker (1998), Naumann (1994), and Bhote (1996) claim that the Japanese quality function deployment (QFD) technique provides statistically valid market research to determine the value customers place on different attributes. Vavra (1995) recognises applications of quality function deployment in marketing context as well. Rust et al. (1995) have described return on quality (ROQ) as a method to justify financially spending on quality initiatives. In return, quality improvement efforts are treated as investments. 3.7 Customer Care and the Service Manager: It was realized after the pre-study that the traditional definition of after sales was too narrow to describe all the tasks of after sales activities. In the literature, maintenance or preventive maintenance activities relate to the delivered equipment . In the case of mobile networks, this definition does not cover the whole scope of the used after sales activities. A new term, "care" is found in the present study, which is synonymous with after sales. The word “care” hints towards the health care industry from where it is likely to have originated, as according to Baird (1999), health care is essentially a highly personal service. During the 1990's, the word "care" was used increasingly frequently H.R .Institute of Higher Education, Hassan 60
  61. 61. Customer Satisfaction After Sales & Service. in a marketing context to underline premier customer handling, as in telemarketing by Ambrose and in the case of Volvo by Anonymous. Customer focused orientation of the marketing and sales (Anonymous, 1995), or high- quality services to assure customer satisfaction . Often, care is tied to services that are delivered to the customer after the final product has been delivered. In the scope of the present study, the services studied under the title care include preventive maintenance and maintenance activities, but are not only limited to that. Care has common characteristics with maintenance activities, as it is delivered to the customer after the final product has already been delivered; in the other words in the care phase. In this sense, care could be thought of as a set of after sales activities. The basic needs related to equipment are performance, reliability, and maintainability, which have to be met in order to provide availability. The objective of maintainability is to maximize the availability of all facilities and equipment. Maintainability consists of design and production of equipment so that it can be maintained. Maintenance means performing duties to restore and to keep equipment in operating condition. Maintainability and maintenance refers to supporting operating capability that satisfies the user over the desired period of time. Care and care management not only includes maintenance, but additionally attempts to improve the performance of the operating capability that will improve the satisfaction of a user. As the nature of the mobile networks is dynamic, i.e., they are constantly changing, finding an optimal solution for the customer appears to be if not impossible, at least a very difficult task. With the care activities, the supplier tries not only to carry out different kind of maintenance activities, but also to enhance the current capabilities of the existing mobile network. In order to include all of these activities under one title, it would be unfair merely to talk conventionally about maintenance, as there are also elements in care that frequently receive less attention in maintenance. H.R .Institute of Higher Education, Hassan 61
  62. 62. Customer Satisfaction After Sales & Service. This could partly be because, in certain industries other than mobile telecommunications, some of these services are not relevant. In their analysis, use the terms "relieving" and "enabling", which have close equivalents in the care process, in the terms “maintaining” and “improving”. According to Normann and Ramirez (1994), companies can relieve customers' workload by tackling certain tasks, but at best, companies can enable a better capability to complete certain tasks Products or services that enable customers to perform their tasks better require a deeper understanding of the customers’ business. The service manager has the business responsibility in the supplier organization to deliver the care services to the customer. The supplier nominates a service manager to be responsible for the management of the care phase in the supplier organization towards a customer. The success of the service manager is indirectly measured by the success of the delivery of the care services. Success is interpreted in terms of the customer’s perception of customer satisfaction and customer loyalty. The service manager concept examined in the present study relates to the particular service manager concept employed in the studied supplier company. Originally, the service manager concept was invented based on the customer feedback. During the present study, the concept of service manager was in its early stages and its role and importance were still not completely clarified. Marketing activities strive to producing customer satisfaction with the "four P's", product, promotion, price, and place (Kotler, 1997). Many companies perform the "place" function of physical distribution separately from marketing. However, it is likely that physical distribution through the provision of customer service contributes to the success of a company and can enhance customer satisfaction 4. TYPE OF RESEARCH: H.R .Institute of Higher Education, Hassan 62
  63. 63. Customer Satisfaction After Sales & Service. Descriptive method has been used in this research for the collection of data .As the research is related to the study of consumer behavior, which can more effectively be studied through direct question, experimental research will not be much effective. Also, considering the constraint, descriptive research is the most suitable design for this research. 4.1 Qualitative research: Qualitative research allows you to explore perceptions, attitudes and motivations and to understand how they are formed. It provides depth of information which can be used in its own right or to determine what attributes will subsequently be measured in quantitative studies. Verbatim quotes are used in reports to illustrate points and this brings the subject to life for the reader. However, it relies heavily on the skills of the moderator, is inevitably subjective and samples are small. Techniques include group discussions/workshop sessions, paired interviews, individual in-depth interviews and mystery shopping (where the researcher plays the role of a potential student, etc in order to replicate the overall experience). 4.1.2 Quantitative research: Quantitative research is descriptive and provides hard data on the numbers of people exhibiting certain behaviors’, attitudes, etc. It provides information in breadth and allows you to sample large numbers of the population. 4.1.3 Descriptive research: Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time. 4.2 SOURCE OF DATA: H.R .Institute of Higher Education, Hassan 63
  64. 64. Customer Satisfaction After Sales & Service. Data which is collected for the first time is called primary data. In the study primary data includes the data which is collected from the customer directly with interaction. The study includes data got with personal interaction. 4.2.1 Primary and secondary data: The appraiser or market analyst must know what they are and what affects them. All data used in appraisals and market studies should be current, relevant, reliable, accurate, and conceptually correct. This article presents a discussion of each of these terms and their significance in the context of the data and in the analysis. The article then discusses the nature of potential errors that can affect primary and secondary data. Several categories of errors can exist. The analyst needs to be able to recognize the error, understand its significance and evaluate the applicability of that data in the analysis. Secondary data--Information from secondary sources, i.e., not directly compiled by the analyst; may include published or unpublished work based on research that relies on primary sources of any material other than primary sources used to prepare a written work. Secondary data has been gathered by others for their own purposes, but the data could be useful in the analysis of a wide range of real property. In general, secondary data exists in published sources. Primary and secondary data are used in appraisals, highest and best use studies, market analysis sections of appraisals, and full-scale market studies. A conceptual link between these two types of data and their use appears in the "Levels of Study" discussion presented in the Appraisal Institute's Course 520, "Highest and Best Use and Market Analysis" and in Chapter 2 of Market Analysis for Valuation Appraisals, which is published by the Appraisal Institute. A detailed discussion of this relationship appears later in this paper. 4.3 Methods for Obtaining Primary Data: H.R .Institute of Higher Education, Hassan 64

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