CUSTOMER SATISFACTION TOWARDS HONDA TWO WHEELER

A ProjectOn
A Study On Consumers Perception Toward Honda Two Wheeler
AProjectSubmittedTo
University OfMumbai ForPartCompletionOfThe Degree Of
BachelorOfManagementStudies
Under The FacultyOfCommerce
By
Guna Esakkiappan
Under The Guidance Of
ProfessorGauri mone
Vpm's Rz ShahCollege OfArts Science AndCommerec
Mithagha Road, JaihindColony, Mulund(East), Mumbai-400081
March2019

DECLARATION BYSTUDENT
I, the undersigned mr. Guna esakkiappan hereby declare that the work embodid in this projecr work titled " a
study on consumers perception toward honda two wheeler" carried out under the guidance of
prof gauri mam is a result of my reseach work and has not been previously submitted to anty
other university for any other degree / diploma to this or any oter university
Whenevr refernec has been made to previous works of others , it has bee clerly indicated as
such and included in the bibiliography
I, hereby futher declare that all information of this document has been optained and presented
in accordanc ewith academic rules and ethuical conduct .
Name And Signature Of The Learner
Cerfited By
Name And Signature To The Guiding Teacher

ACKNOWLEDGEMENT
To list who have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channel and fresh dimensions in
the competition of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal, DR. M.S. MADHUSUDHAN RAJE for providing the
necessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator MS.SHRUTI SHOUCHE, for her moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide
PROFESSOR GAURI APTE whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents & Peers who supported me throughout my
project.

INDEX
Chapter
No
Contents Page No.
1 Introduction
2 Objectives
3 Reseach methodology
4 Data analysis interpretation
5 Literature review
6 Conclusion and suggestion
7 Annexures and questionnaire
8 Bibliography

CHAPTER-I
INTRODUCTION:
The two wheeler industry has been expanding rapidly. Gone are the days when
processing a twowheeler was seen as a luxury. Now a day it is viewed as a
mere necessity. Prior, sale of twowheelers was mainly confined to urban
areas but lately in rural areas the bicycles are beingreplaced by power
driven two wheelers such as scooters and motorcycles. Not only this,
theindustry has also customers ranging from all demographic segments.
It has been common thateven schoolgoing children are driving two wheelers.
The women customers are also increasingdue to increase in women literacy and
employment.If getting a new customer is difficult, then retaining a current
customer is more difficult one andnot only that it is estimated that the costof
attracting a new customer is five times retaining thecurrent customer. It
requires a great deal of effort to induce satisfied customer to switch
awayfrom their current preference. Thus customer attitude is been
given top priority in today’s competitive world.
Honda Motor Company, Ltd.
Japanese public multinational conglomerate corporation primarily known as a
manufacturer of automobiles, aircraft, motorcycles, and power equipment.
Honda has been the world's largest motorcycle manufacturer since 1959, as well
as the world's largest manufacturer of internal combustion engines measured by
volume, producing more than 14 million internal combustion engines each year.
Honda became the second-largest Japanese automobile manufacturer in
2001. Honda was the eighth largest automobile manufacturer in the world in
2015.
Honda was the first Japanese automobile manufacturer to release a dedicated
luxury brand, Acura, in 1986. Aside from their core automobile and motorcycle
businesses, Honda also manufactures garden equipment, marine engines,
personal watercraft and power generators, and other products. Since 1986,

Honda has been involved with artificial intelligence/robotics research and
released their ASIMO robot in 2000. They have also ventured into aerospace with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420
HondaJet, which began production in 2012. Honda has three joint-ventures in
China (Honda China, Dongfeng Honda, and Guangqi Honda).
In 2013, Honda invested about 5.7% (US$6.8 billion) of its revenues in research
and development. Also in 2013, Honda became the first Japanese automaker to
be a net exporter from the United States, exporting 108,705 Honda and Acura
models, while importing only 88,357
Throughout his life, Honda's founder, Soichiro Honda, had an interest in
automobiles. He worked as a mechanic at the Art Shokai garage, where he tuned
cars and entered them in races. In 1937, with financing from his acquaintance
Kato Shichirō, Honda founded Tōkai Seiki (Eastern Sea Precision Machine
Company) to make piston rings working out of the Art Shokai garage. After initial
failures, Tōkai Seiki won a contract to supply piston rings to Toyota, but lost the
contract due to the poor quality of their products.]After attending engineering
school without graduating, and visiting factories around Japan to better
understand Toyota's quality control processes, by 1941 Honda was able to
mass-produce piston rings acceptable to Toyota, using an automated process
that could employ even unskilled wartime laborers.
Tōkai Seiki was placed under control of the Ministry of Commerce and
Industry (called the Ministry of Munitions after 1943) at the start of World War II,
and Soichiro Honda was demoted from president to senior managing director
after Toyota took a 40% stake in the company. Honda also aided the war effort by
assisting other companies in automating the production of military aircraft
propellers. The relationships Honda cultivated with personnel at
Toyota, Nakajima Aircraft Company and the Imperial Japanese Navy would be
instrumental in the postwar period.] A US B-29 bomber attack destroyed Tōkai
Seiki's Yamashita plant in 1944, and the Itawa plant collapsed in 13 January 1945
Mikawa earthquake. Soichiro Honda sold the salvageable remains of the
company to Toyota after the war for ¥450,000, and used the proceeds to found
the Honda Technical Research Institute in October 1946.
With a staff of 12 men working in a 16 m2 (170 sq ft) shack, they built and sold
improvised motorized bicycles, using a supply of 500 two-

stroke 50 cc Tohatsu war surplus radio generator engines. When the engines ran
out, Honda began building their own copy of the Tohatsu engine, and supplying
these to customers to attach to their bicycles. This was the Honda A-Type,
nicknamed the Bata Bata for the sound the engine made. In 1949, the Honda
Technical Research Institute was liquidated for ¥1,000,000, or about US$5,000
today; these funds were used to incorporate Honda Motor Co., Ltd. At about the
same time Honda hired engineer Kihachiro Kawashima, and Takeo Fujisawa who
provided indispensable business and marketing expertise to complement
Soichiro Honda's technical bent. The close partnership between Soichiro Honda
and Fujisawa lasted until they stepped down together in October 1973.
The first complete motorcycle, with both the frame and engine made by Honda,
was the 1949 D-Type, the first Honda to go by the name Dream. Honda Motor
Company grew in a short time to become the world's largest manufacturer of
motorcycles by 1964.
The first production automobile from Honda was the T360 mini pick-up truck,
which went on sale in August 1963. Powered by a small 356-cc straight-4
gasoline engine, it was classified under the cheaper Kei car tax bracket. The first
production car from Honda was the S500 sports car, which followed the T360
into production in October 1963. Its chain-driven rear wheels pointed to Honda's
motorcycle origins.
Over the next few decades, Honda worked to expand its product line and
expanded operations and exports to numerous countries around the world. In
1986, Honda introduced the successful Acura brand to the American market in
an attempt to gain ground in the luxury vehicle market. The year 1991 saw the
introduction of the Honda NSX supercar, the first all-aluminum monocoque
vehicle that incorporated a mid-engine V6 with variable-valve timing.
CEO Tadashi Kume was succeeded by Nobuhiko Kawamoto in 1990. Kawamoto
was selected over Shoichiro Irimajiri, who oversaw the successful establishment
of Honda of America Manufacturing, Inc. in Marysville, Ohio. Irimajiri and
Kawamoto shared a friendly rivalry within Honda; owing to health issues,
Irimajiri would resign in 1992.
Following the death of Soichiro Honda and the departure of Irimajiri, Honda
found itself quickly being outpaced in product development by other Japanese
automakers and was caught off-guard by the truck and sport utility vehicle boom

of the 1990s, all which took a toll on the profitability of the company. Japanese
media reported in 1992 and 1993 that Honda was at serious risk of an unwanted
and hostile takeover by Mitsubishi Motors, which at the time was a larger
automaker by volume and was flush with profits from its
successful Pajero and Diamante models.
Kawamoto acted quickly to change Honda's corporate culture, rushing through
market-driven product development that resulted in recreational vehicles such
as the first-generation Odyssey and the CR-V, and a refocusing away from some
of the numerous sedans and coupes that were popular with the company's
engineers but not with the buying public. The most shocking change to Honda
came when Kawamoto ended the company's successful participation in Formula
One after the 1992 season, citing costs in light of the takeover threat from
Mitsubishi as well as the desire to create a more environmentally friendly
company image.
The Honda Aircraft Company was established in 1995, as a wholly owned
subsidiary; its goal was to produce jet aircraft under Honda's name.
On 23 February 2015, Honda announced that CEO and President Takanobu
Ito would step down and be replaced by Takahiro Hachigo by June; additional
retirements by senior managers and directors were expected.
Corporate profile and divisions
Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on
the Tokyo Stock Exchange and the New York Stock Exchange, as well as
exchanges in Osaka, Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and
Switzerland.
The company has assembly plants around the globe. These plants are located in
China, the United States, Pakistan, Canada, England, Japan, Belgium, Brazil,
México, New Zealand, Malaysia, Indonesia, India, Philippines, Thailand, Vietnam,
Turkey, Taiwan, Perú and Argentina. As of July 2010, 89 percent of Honda and
Acura vehicles sold in the United States were built in North American plants, up
from 82.2 percent a year earlier. This shields profits from the yen's advance to a
15-year high against the dollar
Honda's Net Sales and Other Operating Revenue by Geographical Regions in
2007

Geographic Region Total revenue (in millions of ¥)
Japan 1,681,190
North America 5,980,876
Europe 1,236,757
Asia 1,283,154
Others 905,163
American Honda Motor Company is based in Torrance, California. Honda Racing
Corporation (HRC) is Honda's motorcycle racing division. Honda Canada Inc. is
headquartered in Markham, Ontario, it was originally planned to be located
in Richmond Hill, Ontario, but delays led them to look elsewhere. Their
manufacturing division, Honda of Canada Manufacturing, is based in Alliston,
Ontario. Honda has also created joint ventures around the world, such as Honda
Siel Cars and Hero Honda Motorcycles in India, Guangzhou
Honda and Dongfeng Honda in China, Boon Siew Honda in Malaysia and Honda
Atlas in Pakistan.
Following the Japanese earthquake and tsunami in March 2011 Honda
announced plans to halve production at its UK plants. The decision was made to
put staff at the Swindon plant on a 2-day week until the end of May as the
manufacturer struggled to source supplies from Japan. It's thought around
22,500 cars were produced during this period.
For the fiscal year 2018, Honda reported earnings of US$9.534 billion, with an
annual revenue of US$138.250 billion, an increase of 6.2% over the previous
fiscal cycle. Honda's shares traded at over $32 per share, and its market
capitalization was valued at US$50.4 billion in October 2018.
Products Of Honda

Honda is the largest motorcycle manufacturer in Japan and has been since it
started production in 1955. At its peak in 1982, Honda manufactured almost three
million motorcycles annually. By 2006 this figure had reduced to around 550,000
but was still higher than its three domestic competitors.
In 2017, India became the largest motorcycle market of Honda. In India, Honda is
leading in the scooters segment, with 59 percent market share.
During the 1960s, when it was a small manufacturer, Honda broke out of the
Japanese motorcycle market and began exporting to the U.S. Working with the
advertising agency Grey Advertising, Honda created an innovative marketing
campaign, using the slogan "You meet the nicest people on a Honda." In
contrast to the prevailing negative stereotypes of motorcyclists in America as
tough, antisocial rebels, this campaign suggested that Honda motorcycles were
made for the everyman. The campaign was hugely successful; the ads ran for
three years, and by the end of 1963 alone, Honda had sold 90,000 motorcycles.
Taking Honda's story as an archetype of the smaller manufacturer entering a
new market already occupied by highly dominant competitors, the story of their
market entry, and their subsequent huge success in the U.S. and around the
world, has been the subject of some academic controversy. Competing
explanations have been advanced to explain Honda's strategy and the reasons
for their success.
The first of these explanations was put forward when, in 1975, Boston
Consulting Group (BCG) was commissioned by the UK government to write a
report explaining why and how the British motorcycle industry had been out-
competed by its Japanese competitors. The report concluded that the Japanese
firms, including Honda, had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of
scale and learning curve effects. It blamed the decline of the British motorcycle
industry on the failure of British managers to invest enough in their businesses
to profit from economies of scale and scope.
The second explanation was offered in 1984 by Richard Pascale, who had
interviewed the Honda executives responsible for the firm's entry into the U.S.
market. As opposed to the tightly focused strategy of low cost and high scale
that BCG accredited to Honda, Pascale found that their entry into the U.S. market
was a story of "miscalculation, serendipity, and organizational learning" – in

other words, Honda's success was due to the adaptability and hard work of its
staff, rather than any long term strategy. For example, Honda's initial plan on
entering the US was to compete in large motorcycles, around 300 cc. Honda's
motorcycles in this class suffered performance and reliability problems when
ridden the relatively long distances of the US highways. When the team found
that the scooters they were using to get themselves around their U.S. base
of San Francisco attracted positive interest from consumers that they fell back
on selling the Super Cubinstead.
The most recent school of thought on Honda's strategy was put forward by Gary
Hamel and C. K. Prahalad in 1989. Creating the concept of core
competencies with Honda as an example, they argued that Honda's success was
due to its focus on leadership in the technology of internal combustion engines.
For example, the high power-to-weight ratio engines Honda produced for its
racing bikes provided technology and expertise which was transferable into
mopeds. Honda's entry into the U.S. motorcycle market during the 1960s is used
as a case study for teaching introductory strategy at business
schools worldwide.
Power equipment
Production started in 1953 with H-type engine (prior to motorcycle).
Honda power equipment reached record sales in 2007 with 6.4 million units. By
2010 (Fiscal year ended 31 March) this figure had decreased to 4,7 million
units. Cumulative production of power products has exceeded 85 million units
(as of September 2008).
Honda power equipment includes:
 Engine
 Tiller
 Lawn mower
 Robotic lawn mower
 Riding mower
 Trimmer
 Mower
 Blower
 Sprayer
 Hedge trimmer

 Snowthrower
 Generator, welding power supply
 Pumps
 Outboard engine
 Inflatable boat
 Electric 4-wheel Scooter
 Compact Household Cogeneration Unit
Engines
Honda Outboard motor on a pontoon boat
Honda engines powered the entire 33-car starting field of the 2010 Indianapolis
500] and for the fifth consecutive race, there were no engine-related retirements
during the running of the Memorial Day Classic.
In the 1980s Honda developed the GY6 engine for use in motor scooters.
Although no longer manufactured by Honda it is still commonly used in many
Chinese, Korean and Taiwanese light vehicles.
Honda, despite being known as an engine company, has never built a V8 for
passenger vehicles. In the late 1990s, the company resisted considerable
pressure from its American dealers for a V8 engine (which would have seen use
in top-of-the-line Honda SUVs and Acuras), with American Honda reportedly
sending one dealer a shipment of V8 beverages to silence them. Honda
considered starting V8 production in the mid-2000s for larger Acura sedans, a
new version of the high end NSX sports car (which previously used DOHC V6
engines with VTEC to achieve its high power output) and possible future
ventures into the American full-size truck and SUV segment for both the Acura
and Honda brands, but this was cancelled in late 2008, with Honda citing
environmental and worldwide economic conditions as reasons for the
termination of this project.
Honda is the world’s largest manufacturer of two wheelers, Recognized over the world as
the symbol of Honda Two Wheelers, the ‘Wings’ arrived in India as Honda Motorcycle and
Scooter India Pvt. Ltd. (HMSI), a 100% subsidiary of Honda Motor Company Ltd., Japan, in
1999. Since its establishment in 1999 at Manesar, District Gurgaon, Haryana, Honda has
lived up to its reputation of offering the highest quality products at the most reasonable
price. Despite being one of the youngest players in the Indian two-wheelers market, Honda

has become the largest two wheeler manufacturer as well as the second largest two-
wheelers company in India.
Honda is also the fastest growing company in country today. With a host of facilities under
its wings, the first factory of HMSI is spread over 52 acres including a covered area of about
100,000 sq. meters in Manesar, District Gurgaon, Haryana with an annual capacity of 1.65
million units. To meet the ever increasing demands of the products, Honda has started
operations of its second plant in Tapukara, District Alwar, Rajasthan. Expanding to full
operations, Honda production capacity has jumped 30% year on year to 2.8 million per
annum in FY 12- 13.
Honda’s third plant at Narsapura Industrial Area near Bengaluru, Karnataka is equipped to
manufacture 1.2 million units. Utilizing production technologies refined at Manesar &
Tapukara plants as starting point, the 3rd plant is employed with state-of-the-art
manufacturing, automation and environment friendly technologies to deliver quality
products.
On February 17 2016, Honda inaugurated the “World’s largest only scooter plant" at
Vithalapur Gujarat with annual capacity of 1.2 million units. The new plant will employ
approximately 3000 people within first 2 years of commercial production.
factory of honda

annum in FY 12- 13.
products.
Headquartered in Japan, Honda Motor Company is one of the major producers of
quality motor vehicles around the world. Honda's quality, innovation and
reliability has made it one of the most sought after car brands in the world. It's
major car models such as Accord have occupied the leadership position in
global sales for years now. Honda cars are also renowned for their fuel efficiency
and have a loyal customer following all around the world.
Honda's leadership position is sustained due to its enormous focus on R&D,
quality and innovation. Along with Toyota, its major competitor, Honda has ruled
the US markets with its successful models and captured market share of
American manufacturers such as GM and Ford.
Company Overview
Honda has grown to become the world's largest motorcycle manufacturer and
one of the leading automakers. Honda develops, manufactures and markets a
wide variety of products ranging from small general-purpose engines and
scooters to specialty sports cars, to earn the Honda Motor Company an
outstanding reputation from customers worldwide. ( Honda Company Overview,
2007 )
The Company's business is carried out through four segments. The Two-Wheel
segment manufactures two-wheel vehicles, all-terrain vehicles (ATVs), personal
watercrafts and other related products. The Four-Wheel segment offers four-
wheel vehicles and other related products. Honda's major car models include its
best selling Accord, Civic, CRV, Hybrid car Insight and its luxury range of cars
under the "Acura" brand. The ...

Company Overview
2007 )
under the "Acura" brand.
International marketing
A Honda dealership in Ontario, Canada
A Honda Dealership in Dreghorn, Scotland
In 2003, Honda released its Cog advertisement in the UK and on the Internet. To
make the ad, the engineers at Honda constructed a Rube Goldberg
Machine made entirely out of car parts from a Honda Accord Touring. To the
chagrin of the engineers at Honda, all the parts were taken from two of only six

hand-assembled pre-production models of the Accord. The advertisement
depicted a single cog which sets off a chain of events that ends with the Honda
Accord moving and Garrison Keillor speaking the tagline, "Isn't it nice when
things just... work?" It took 606 takes to get it perfect.
In 2004, they produced the Grrr advert, usually immediately followed by a
shortened version of the 2005 Impossible Dream advert. In December 2005,
Honda released The Impossible Dream a two-minute panoramic advertisement
filmed in New Zealand, Japan and Argentina which illustrates the founder's
dream to build performance vehicles. While singing the song "Impossible
Dream", a man reaches for his racing helmet, leaves his trailer on a minibike,
then rides a succession of vintage Honda vehicles: a motorcycle, then a car,
then a powerboat, then goes over a waterfall only to reappear piloting a hot air
balloon, with Garrison Keillor saying "I couldn't have put it better myself" as the
song ends. The song is from the 1960s musical Man Of La Mancha, sung
by Andy Williams.
In 2006, Honda released its Choir advertisement, for the UK and the internet. This
had a 60-person choir who sang the car noises as film of the Honda Civic are
shown.
In the mid to late 2000s in the United States, during model close-out sales for the
current year before the start of the new model year, Honda's advertising has had
an animated character known simply as Mr. Opportunity, voiced by Rob Paulsen.
The casual looking man talked about various deals offered by Honda and ended
with the phrase "I'm Mr. Opportunity, and I'm knockin'", followed by him
"knocking" on the television screen or "thumping" the speaker at the end of
radio ads. In addition, commercials for Honda's international hatchback, the
Jazz, are parodies of well-known pop culture images such as Tetris and Thomas
The Tank Engine.
In late 2006, Honda released an ad with ASIMO exploring a museum, looking at
the exhibits with almost childlike wonderment (spreading out its arms in the
aerospace exhibit, waving hello to an astronaut suit that resembles him, etc.),
while Garrison Keillor ruminates on progress. It concludes with the tagline:
"More forwards please". Honda also sponsored ITV's coverage of Formula
One in the UK for 2007. However they had announced that they would not
continue in 2008 due to the sponsorship price requested by ITV being too high.
In May 2007, focuses on their strengths in racing and the use of the Red H badge
– a symbol of what is termed as "Hondamentalism". The campaign highlights the
lengths that Honda engineers go to in order to get the most out of an engine,
whether it is for bikes, cars, powerboats – even lawnmowers. Honda released
its Hondamentalism campaign. In the TV spot, Garrison Keillor says, "An
engineer once said to build something great is like swimming in honey", while
Honda engineers in white suits walk and run towards a great light, battling
strong winds and flying debris, holding on to anything that will keep them from
being blown away. Finally one of the engineers walks towards a red light, his
hand outstretched. A web address is shown for the Hondamentalism website.
The digital campaign aims to show how visitors to the site share many of the
Hondamentalist characteristics.
At the beginning of 2008, Honda released – the Problem Playground. The advert
outlines Honda's environmental responsibility, demonstrating a hybrid engine,
more efficient solar panels and the FCX Clarity, a hydrogen-powered car. The 90-
second advert has large-scale puzzles, involving Rubik's Cubes, large shapes
and a 3-dimensional puzzle. On 29 May 2008, Honda, in partnership with Channel

4, broadcast a live advertisement. It showed skydivers jumping from an
aeroplane over Spain and forming the letters H, O, N, D and A in mid-air. This live
advertisement is generally agreed to be the first of its kind on British television.
The advert lasted three minutes.
In 2009, American Honda released the Dream the Impossible documentary
series, a collection of 5- to 8-minute web vignettes that focus on the core
philosophies of Honda. Current short films include Failure: The Secret to
Success, Kick Out the Ladder and Mobility 2088. They have Honda employees as
well as Danica Patrick, Christopher Guest, Ben Bova, Chee Pearlman, Joe
Johnston and Orson Scott Card. The film series plays at dreams.honda.com. In
the UK, national television ads feature voice-overs from American radio
host Garrison Keillor, while in the US the voice of Honda commercials is actor
and director Fred Savage.
Sports
The late F1 driver Ayrton Senna stated that Honda probably played the most
significant role in his three world championships. He had immense respect for
founder, Soichiro Honda, and had a good relationship with Nobuhiko Kawamoto,
the chairman of Honda at that time. Senna once called Honda "the greatest
company in the world".
As part of its marketing campaign, Honda is an official partner and sponsor of
the National Hockey League, the Anaheim Ducks of the NHL, and the arena
named after it: Honda Center. Honda also sponsors The Honda Classic golf
tournament and is a sponsor of Major League Soccer. The "Honda Player of the
Year" award is presented in United States soccer. The "Honda Sports Award" is
given to the best female athlete in each of twelve college sports in the United
States. One of the twelve Honda Sports Award winners is chosen to receive
the Honda-Broderick Cup, as "Collegiate Woman Athlete of the Year."
Honda sponsored La Liga club Valencia CF starting from 2014–15 season
Honda has been a presenting sponsor of the Los Angeles Marathon since 2010
in a three-year sponsorship deal, with winners of the LA Marathon receiving a
free Honda Accord. Since 1989, the Honda Campus All-Star Challenge has been
a quizbowl tournament for Historically black colleges and universities.

2.OBJECTIVESOF THE STUDY
• To study the profile of Two wheeler Industry in India.
• To study the marketing activities of Honda Motors.
• To study the Dealership profile of Vishnu Honda.
• To study the customer handling practices prior to sale, during sale
and after sale and assesses the satisfaction levels of customers.
• To offer suggestion for improving the customer satisfaction
To know the present level of corporate and brand image.
1 To know the consumer opinion towards the quality, price and durability of the
products.
2 To know the level of loyalty of the consumer.
3 To understand the customer does the company provides level of satisfaction towards
the quality of service.
4 To study about the factors that influences the purchased decision of the customer.
5 To study about the problems faced by consumers and their suggestion to improve the
performance of the company.
6 To know the motivational factors affected to purchase the Honda.
7 To find out product differentiation with other motor vehicles

3. RESEARCH METHODOLOGY
LIMITATIONS OF THE STUDY:
- The study is limited to Honda Motors Customers who have purchased or come
for serviceto M/s Sri Vishnu Honda at Visakhapatnam.- Since a convenient
sampling method is adopted, the sample may not be representing alltypes
of customers.- As the study is conducted for a limited period and hence it may not
be exhaustive.3
METHODOLOGY:
The study is conducted basing on Primary and Secondary DataPrimary data is
collected by administering a structured questionnaire to customers who visit
thedealer for purchase and service. Data is also collected through
personal discussions with thedealer, sales and service staff and
personal observation made during sale and service.Secondary data is
obtained from company records, web site, published articles etc.
After globaliz ations, number of tw o w heeler markets have ente
red Indian Market. N ew c o m p a n i e s h a v e b e e n s e t u p w i t h f o
r e i g n , s p e c i a l l y J a p a n e s e C o l l a b o r a t i o n b y a l r e a d y establis
hed companies. Honda motors Japan has set up subsidiary company at
Gurgaon , India tooffer state of the art Honda two wheelers to Indian
makes Honda motors with its wide productrange has achieved a
respectful market shone with strong dealer network and excellent
after sales services.Even though there is w aiting period for some
products, some are available across the shelf dealerships are
upon not only at metros, but also at urban and semi urban
areas. This is to 2
provide prompt after sales services .it has opened class of art show rooms
and work shops at allthe places.There is a need to study to efforts put in by
the Company, Dealers and Service network to studythe extent to which
customers are satisfied with the product, service and allied services
etc.Hence it is proposed to study the Customer Satisfaction levels of Honda
Customers with respectto the product performance, after sales service

and other allied services like finance facility,availability of spares and
accessories etc.
TABLE: 1.1
Age-wise Distribution of the Respondents
Age No. of Respondents Percentage (% )
18-20 years 45 18
21-30 years 91 36.4
31- 40 years 61 24.4
41-50 years 38 15.2
Above 50 years 15 6
TOTAL 250 100
Source: Primary Data
The table shows that 18% of the respondents are 18- 20 age group,36.4% of the respondents
belong to 21- 30 age group,24.4% of the respondents are 31 - 40 age group, 15.2% of the respondents are
41- 50 year group and 6% of the respondents are more than 50 years.
TABLE: 1.2
Occupational Status of the Respondents
Occupational Status No. of Respondents Percentage (% )
Self employed 20 8
Private sector 30 12
Government sector 50 20
Professional 70 28
Student 70 28
Agriculture 10 4
Total 250 100
The above table depicts that out of 250 respondents, 28% of the respondents are students and
professional, 20% belong to government sector, 12% comes under the category of private sector, 8%
respondents are self employed persons, and 4% respondents are agriculture.
TABLE: 1.3
Monthly Income of Respondents

Monthly Income
(in Rs.)
No. of Respondents Percentage (% )
Upto Rs 5000 60 24
5001-10000 70 28
10001-15000 50 20
15001- 20000 40 16
Above 20001 30 12
Total 250 100
The above table shows that, out of 250 respondents 28% of the respondents come under the
monthly income of Rs 5001 – 10,000, 24% belongs to the monthly income group of Rs up to 5000, 20%
have the income of Rs 10,001 – 15,000, 16% belong Rs 15001 – 20,000 and 12% are having more than Rs
20,001 as monthly income.
Table: 1.4
Model of the Honda Two wheeler Possessed by the Respondents
Particulars No. of Respondents Percentage (% )
Activa 57 22.8
Dio 45 18
Shine 20 8
CBR 150 15 6
CBR 250 8 3.2
Unicorn 70 28
Dream Yuga 31 12.4
Others 4 1.6
Total 250 100
The table shows that 22.8% of the respondents use the model of Activa, 18% have Dio , 8%

of the respondents possess Shine, 6% use CBR 150, 3.2% have CBR 250, 28% possess the Unicorn,
12.4 have Dream yuga and 1.6% of the respondents have some other models.

TABLE: 1.5
Source of Awareness About the Honda Two Wheeler Among Sample Respondents
Sources No. of Respondents Percentage (% )
News Paper 65 26
Magazines 45 18
Friend & Relative 50 20
Television 40 16
Internet 25 10
Poster 15 6
Other 10 4
Total 250 100
The above table clearly shows that among the 250 respondents, 26% is stimulated by new
paper, 20% of them are influenced by friend & relative, 18% is stimulated by magazines, 16% through
television, 10% is influenced by internet and 6% are influenced by poster.
TABLE: 1.6
Reasons to Buy the Honda Two Wheeler Among the Respondents
Sources No. of Respondents Percentage (% )
Needful 45 18
Convenience 50 20
Brand image 70 28
Acceptable cost 40 16
Durable 30 12
Good service 15 6
Total 250 100
The table shows that the out of 250 respondents, 28% buy the Honda Two Wheeler due to brand
image, 20% respondents for convenience, 18% respondents acquire to the reason of need ful, 16%
respondents on account of acceptable cost, 12% respondents for durable and remaining 6%
respondents for good service.

TABLE: 1.7
Features Influenced to Buy Honda Two Wheeler Among the Respondents
Features No. of Respondents Percentage (% )
Quality 40 16
Price 55 22
Style 49 19.6
Performance 45 18
Mileage 61 24.4
Colour 30 12
Appearance 25 10
Total 250 100
The table shows the reasons of the purchasing decision. 16% of the respondents look for quality,
22% of the respondents are influenced by price, 19.6% of the respondents induce by style, 18% of the
respondents are looking for performance and 24.4% of the respondents prefer due to mileage, 12%
respondents buy due to colour and 10% of the respondents influence by appearance.
TABLE: 1.8
Type of Problems Faced by the Respondents
Type of Problems No of Respondents Percentage (%)
Mileage 50 20
Brake 45 18
Tyre 55 22
Electrical Problems 60 24
Post Sales Service 20 8
Resale Value 10 4
Total 250 100
Source:Primary Data
The table shows that out of 250 respondents, 24%face the electrical problems, 22% have the
problem of tyre, 20% of the respondents face the problem of mileage, 18% have the problemof brake

, 8% face the problem of post sales service, and 4% have the problemof resale value.
TABLE: 1.9
Satisfaction Level on Mileage of Honda Two Wheeler Possessed by the Respondents
Particulars Weight
Respondents
Court
Total
Highly satisfied 4 75 292
satisfied 3 117 345
Dissatisfied 2 41 86
Highly Dissatisfied 1 17 17
TOTAL 250 750
The mean value is 3 this shows that the respondents are satisfied with respect to the mileage of Honda
two wheeler.
Weighted Average
No. of Respondents * weight/ total respondents Weighted average
750 / 250 3
TABLE: 1.10
Factors Responsible for Satisfaction Among the Respondents
Factors No. of Respondents Percentage (% )
Price factor 50 20
Maintenance cost 90 36
Spare parts 70 28
Service factor 40 16
Total 250 100
From the above table one can find that out 250 respondents, a maximumof 36% are satisfied with

respect to the maintenance cost of the Honda Two Wheeler followed by spare parts at 28%, 20% of
them are satisfied relating to price factor and 16% of the respondents are satisfied regarding service
factors.
Table: 1.11
Level of Satisfaction Attained by the Respondents
Level of Satisfaction No. of Respondents Percentage (% )
Highly satisfied 50 20
Satisfied 150 60
Not satisfied 30 12
Dissatisfied 20 8
Total 250 100
Source:Primary Data
From the above table one can onclude that out of total respondents 60% of them are satisfied ,
20% of the respondents are highly satisfied and 12% them does not have any satisfaction and the
remaining 8% are dissatisfied.
ATTITUDE OF CONSUMERS
In the study,the respondent has taken six statements to measure the attitude. As there is no readymade
scale to measure the attitude level, a scale namely “Attitude Scale” has been developed by awarding
scores to the six
statements.With the help of this scale,the extend of attitude has been measured. Various factors and their
score indicate the level of satisfaction as shown in Table 4.26.
Details of Likerts Scale
TABLE: 1.12
Particulars
Highly
Satisfied
Satisfied Neutral Dissatisfied
Highly
Dissatisfied
Total
Score
Mean Rank
Patience of
Sales 280 232 225 70 26 833 3.33 VI

Executives
Clarity 335 296 174 78 12 895 3.58 IV
Sales
Executive
Behaviour
315 232 225 70 19 861 3.44 V
Ambience of
Showroom 520 304 120 38 11 993 3.97 II
5.1 Consumer decision making process
 Problem Identification
 Search for Information
 Evaluation of alternatives
 Product Choice
5.2 The Individuals Determinates that effect Consumer Behaviour:
 Motivation and involvement:
 Attitudes:
 Personality and self concept:
 Learning and memory:
 Information Processing:
5.3 External Environmental Factors Affecting consumer Behaviour:
 Cultural Influences
 Sub-Cultural Influences
 Social Class
 Social Group Influences
 Family Influences
 Personal Influences
 Other Influences
5.4 Methods of studying consumer Behaviour
 Observational Approach
 Shadowing Approach
 Interview Method
Survey Method

4. 3. DATA ANALYSIS AND INTERPRETATION
1. Which model do you own in Honda motor bikes?
Model No. of Responds % of Responds
Stunner 7 7%
Shine 53 53%
Unicorn 27 27%
Twister 13 13%
Total 100 100%
2. How do you know about Honda Bikes?
Awareness No. of Responds % of Responds
Advertisement in TV 35 35%
Advertisement in newspapers 15 15%
Through Dealer 20 20%
Through Friends 30 30%
Total 100 100%
3. Who influenced you to buy the Honda Bikes?
Opinion No. of Responds % of Responds
Family 40 25%
Friends 30 35%
Advertisement 20 30%
Dealers 10 10%
TOTAL 100 100%
4. How do you compare price of the Honda bikes compare to other brands?
Low 20 15%
Moderate 40 25%
High 40 60%
Total 100 100%

5. How do you feel about the price of the spare ports?
Low 15 15%
Reasonable 70 70%
High 10 10%
Very High 5 5%
Total 100 100%
6. How the bikes design?
Very nice 55 55%
Good 30 30%
Average 15 15%
Total 100 100%
7. Are you satisfied with the performance of Honda?
Yes 85 85%
No 15 15%
Total 100 100%
8. Which sales promotion tool do you think would work best in the market?
Price off 30 30%
Product warranty 35 35%
Lucky draws 25 25%
Exchange offers 10 10%
TOTAL 100 100%
9. Do you think brand ambassador will effect on sales promotions? Yes/ No, if yes,
according to you an ambassador should be.
Film star 45 45%
Sports person 40 40%
Politician 10 10%
Other 5 5%
TOTAL 100 100%
10. Which features do you think need improvement?
Price 0 0%
Mileage 30 30%
Comfort 40 40%
Design 15 15%
Safety 15 15%
Total 100 100%

11. Which mode of payment would you prepare?
Cash down 65 65%
Finance 35 35%
TOTAL 100 100%
12. It is Honda giving after sales services?
Very good 35 50%
good 50 25%
Average 10 15%
poor 5 10%
Total 100 100%
13. Are you satisfied with Honda Services?
Yes 85 85%
No 15 15%
Total 100 100%
14. How many services giving for your bike?
3 services 80 80%
5 services 20 20%
Total 100 100%
15. Please rank the mileage of the bike compared to the other segment of bikes?
Options No of respondents Percentage
Excellent 69 69%
Good 21 21%
Average 6 6%
Fair 3 3%
Poor 1 1%
Total 100 100%
16. Do you get information about the free service offered by the company from time
to time?
Options No of respondents percentage
Yes 95 95%
No 5 5%
Total 100 100%
17. Do you think the company should increase any other service?
Yes 80 80%
No 15 15%
Can‘t Say 5 5%
Total 100 100%

18. You own Honda bike for
Long Drives 15 15%
Business Purpose 50 50%
Picnic 10 10%
Any others 25 25%
Total 100 100%
19. How do you rate the attitude of the sale person at the showroom?
Polite 54 54%
Kind & Soft 23 23%
Informative 12 12%
Excellent 8 8%
Rude 3 3%
Total 100 100%
20. How do you rate the price of the bike when compared to other bikes of the same
segment?
Expensive 55 55%
Moderate 25 25%
Economic 20 20%
Total 100 100%
7. FINDINGS
1) The TV Advertisement plays a vital role in the market compare to other Medias.
2) The main motivating factor of customer to buy the Honda Bikes is friends and
advertisement.
3) It was found that most of the respondents have not purchase the Honda Bikes because
of its high price.
4) Maximum no. of people felt that price of the spare parts are reasonable.
5) The consumer felt that Honda Bikes are good in quality, performance and design
when compare with other brands.
6) Most of the respondents said that to be providing exchange offers and other offers.
7) Maximum no. of people felt that brand ambassadors will effect at the time of
purchasing the product.
8) Most of the respondents said that to be improving the comfort and mileage.
9) Maximum no. of people said that to be providing financial facility.
The consumers want that more services.

CUSTOMERS SATISFACTIONS
CHAPTER IICUSTOMERSATISFACTION
INTRODUCTION
Satisfaction is a person’s feelings of pleasure (or) is appointment
resulting from comparing a products, perceived performance in relation to his
(or) her expectation.Satisfaction is a function of perceived performance and
expectations. If the performance fallsshort of expectation, the customer is
dissatisfied. If the performance matches the expectations,the customer
is satisfied. If the performance exceeds expectations,
the customer is highlysatisfied (or) delighted.Customer satisfaction is
both a goal and a marketing tool. Companies that achieve
highcustomer satisfaction ratings make sure that their target market knows
it.Actual performance by the firmCustomer Satisfaction Customer Expectations5

1 . C U S T O M E R & H I S I M P O R T A N C E : -
The essenceof the marketing conceptis that organizations must adoptcustomer
oriented featuresand focus their attention of building programs, offering and
strategies that satisfy customer needsand wants. Many organizations maintain
their focus on operations or product or sales efforts and thereby ;
get dislocated by mistaking the means for the end. Successful
marketing involvescompanywide transformations in attitude beliefs and
perceptions of the people in how theyview the
customer. Deep commitment to the customer
is what distinguishes successfulmarketers from Laggards.The excellent
companies really close to their customers, other companies top about it,
excellentcompanies really close to their customers, other companies to about it,
excellent companies doit’. The companies, which show extra ordinary
concern for the customer, include. Americanexpress, Mc donalds,
Citibank, IBM who go to the smallest dealers also “Never forget
thecustomer’s attitude is the hull mark of their service strategy.Hence Customers
are :-1.The most important people in any business. 2.They are not
dependent of a business, But business is dependent on them.3.They
are not an interruption to own work, they are the purpose of it. 4. T hey
are d o ing us favo r when they c o me in, we are no t
d o ing them favo r b y s ervingthem.5.They are part of our
business, they are not outsiders.6. They are not just statistic. The
customers are human beings with flesh and blood havingfeelings and
emotions.7.People come to us with their needs and wants. It is our job to
fulfill them.8.They are the lifeblood of every business without
whom the door of the business would have been closed.9.Non customer
functions in particular must be made customer oriented. Customer
needsand requirements should be tracked on regular basis.6

I I . C U S T O M E R S A T I S F A C T I O N
Whether the buyer is satisfied after purchase depends uponthe offer
performance in relation tothe buyer’s expectations. Customer satisfaction can be
defined as :-Satisfaction is the level of a person’s felt state resulting from
comparing a product’s
perceived performance in relation to the person’s expectation’s satisfaction level
is a function of thedifferent between perceived performance and expectations
some of the successfulbusiness firmsare aiming for total Customer Satisfaction
which increase customer loyalty towards the productorservice offered by the
firm.
III. IM P O R TAN CE O F C US T O M ER S AT IS F ACT IONMISSIO
NAND PURPOSEOFBUSINESS:
The need to satisfy customer for achieving success in any commercial
enterprise is so obvious,one wonder if there is any need to establish the
importance of customer satisfaction. However one often finds that what
should be obvious everyone also needs to be explained and establish.The income
of commercial enterprise is derived from the payment received for the products
andservices supplied to its external customers. If there are no customers, there
is no income, thereis no business. In other words, customers are the sole
reason for the existence of commercialestablishments, as the function is
extremely important for the success of the organization, thesenior
management as well as the leaders of other departments or Divisions should also
realizethe importance of customers to the organization and for its
growth. It is therefore no surprisethat Peter Drucket, the renowned
management guru said “ to satisfy the customer is the missionand purposeof
every business :.
I V . C U S T O M E R S A T I S F A C T I O N P R O C E S S

Companies seeking to win in today’s market must track their customer’s expectations
perceivedcompany performance and customer satisfaction not only for them but for their
competitions aswell.Brand loyalty and Customers satisfaction on the other hand are
almost synonymous and their impact on market share is statistically varifiable. The
relationship between market
share profitability as well as profitability and share holder value creation have been the subject
of considerable research over the years and the linkages have been proven many times.
Customer satisfaction and Business Results
Licensing to BrandsVoice of the customer Service
annum in FY 12- 13.
products.

factory of honda
annum in FY 12- 13.
products.

Company Overview
2007 )
Company Overview
2007 )

CHAPTER-VSUMMARY AND SUGGESTIONS
SUMMARY
39
Honda is a major player in Two wheeler market. In India almost every second motor cycle
soldis from Honda. It is has many award to its creditHow strong the brand may be, every

organization has to strive to improve customer satisfaction.With increasing competition
and customer expectations, Customer Satisfaction is the key tosuccess of any
organization.Dealers play a very important role in the marketing of any product. Their role is
vital mainly inthe case of consumer durables in general and automobiles in
particular. Unlike majority of consumer durables, automobiles need periodic
maintenance. Two wheelers have a peculiar feature as they are used by common man
who hardly has anyknowledge of the functioning or repairing of the vehicle, dealers’ role
is very important. Dealerscan enhance or tarnish the image of the company and the product how
ever good it may be.The strength of Honda motors is its channel partners, and service
availability every where.The findings of the study are summarized below:
•
Majority of the Honda customers are in the age group of 18 to 25 years.
•
Majority of them are under graduates.
•
Honda two wheeler customers are middle class and upper middle class.
•
Normally a customer uses a Honda vehicle to a maximum period of 10 years
•
Activa, Unicorn and Shine brands are bread winners to Honda.
•
Customers buy Honda for its technical features like mileage, easy maintenance,superior
technology etc.,
•
Customers buy Honda influenced by their friends.
•
Customers normally prefer local dealers and service dealers for buying a vehicle.
•
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the40
customers for service and are not loyal to them for after free services are over
•
Cost of spares and service is slightly high.
SUGGESTIONS

Regular availability of all models should be ensured. Efforts have to be taken toensure no stock
outs for Activa, Unicorn and Shine. Dealer has to put efforts to improve qualityof after sales
service as majority opined that they would not prefer the dealer after free services.Dealer and
Company should ensure availability of flagship brand Activa. Due to non availability,majority
of the prospective customers are shifting to other company brands.Customers are suspecting the
dealers role in sticking to booking schedule. Efforts to be taken toensure transparency in
booking. Customer feedback system after sale and service would improvethe image of the
dealer. Dealer has to tie up with banks to provide finance at competitive interestrates. Dealer
has to be aggressive in marketing the vehicles as they face a very toughcompetition from local
Honda Dealer i.e., Jupiter HondaDealer as well as the company has to put all efforts to
enhance the image of the brand as well as the dealership
SUMMARY OF FINDINGS OF STUDY
1.The study shows that out of 250 sample respondents, 36.4% are in the age of 21-30
years.
2.It is found that 28% of the respondents are student and
professionals. It shows that Honda Two Wheeler is highly used by
them as compare with other.
3.The study shows that out of sample respondents, 28% have the monthly
income level of Rs 5001 to 10,000. 4.It is found that majority of the
respondents (28%) use Unicorn Two Wheelers in their home/offices.
5. Out of 250 respondents majority of them (26%) are aware of Honda Two Wheelers
through News Paper
6.The study clearly shows that out of 250 respondents most of them (28%)
acquire Honda Two Wheeler by giving preference to brand image than the
other reasons of good service and durable
7.It is clear that majority of the respondents (24.4%) given the preference to mileage.
8.It is found that majority of the respondents (24%) face the
electrical problems while using their Honda Two Wheeler.
9.The study reveals that out of total respondents, majority of the
respondents are satisfied about the mileage of Honda Two Wheeler.
10.It is found that out of sample respondents, majority of them

(36%) are satisfied regarding the maintenance cost of their Honda
Two Wheelers.
11.The study reveals that out of total respondents, majority of the respondents
(60%) are satisfied with
their Honda Two Wheeler.
Out of 250 sample respondents, the maximum numbers of the customers give the first
rank for the Honda two wheelers
Different factors which are
important in the purchasedecision
of two wheelerbuyers do notdiffer
significantly.
important in the purchasedecision
of two wheelerbuyers do notdiffer
significantly.
To test this hypothesis,ANOVA was usedwith following re
http://world.honda.com/
https://curlie.org/
Recreation/Autos/Makes_and_Models/Honda/

CUSTOMER SATISFACTION TOWARDS HONDA TWO WHEELER

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