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Deepak synopsis
1. A
SYNOPSIS ON
A STUDY ON CUSTOMER SATISFACTION TOWARDS
HERO MOTO CORP.
WITH SPECIAL REFERENCE
TO ALIGARH REGION
In partial fulfillment for the award of the degree
Of
MASTER IN BUSINESS ADMINISTRATION
In
MARKETING
MANGALAYATAN UNIVERSITY, ALIGARH
MAY 2011
INTERNAL SUERVISOR SUBMITTED BY
Dr. Shailender singh Deepak Pratap Singh
Enrollment no.
2007EIT018
2. INTRODUCTION
“Hero” is the brand name used by the Munjal brothers for their flagship company Hero
Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was
established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal
family and Honda group both own 26% stake in the Company. In 2010, it was reported
that Honda planned to sell its stake in the venture to the Munjal family.
During the 1980s, the company introduced motorcycles that were popular in India for
their fuel economy and low cost. A popular advertising campaign based on the slogan
'Fill it - Shut it - Forget it' that emphasized the motorcycle's fuel efficiency helped the
company grow at a double-digit pace since inception. The technology in the bikes of
Hero Honda for almost 26 years (1984–2010) has come from the Japanese counterpart
Honda
Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in
Haryana and at Haridwar in Uttarakhand. These plants together are capable of
churning out 3 million bikes per year. Hero MotoCorp has a large sales and service
network with over 3,000 dealerships and service points across India. Hero Honda has a
customer loyalty program since 2000, called the Hero Honda Passport Program.
The company has a stated aim of achieving revenues of $10 billion and volumes of 10
million two-wheelers by 2016-17. This in conjunction with new countries where they
can now market their two-wheelers following the disengagement from Honda, Hero
MotoCorp hopes to achieve 10 per cent of their revenues from international markets,
and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to
cope with the new demand over the coming half decade, the company was going to
build their fourth factory in South India and their fifth factory in Western India. There
is no confirmation where the factories would be built.
3. PROBLEM IDENTIFICATION
The most successful new products and services are those that solve a problem for
consumers that no one else in the category has solved. Sounds easy, but how do you
know what problems consumers face, and more important, how do you reliably know
how important each one is?
Customer satisfaction is positively related with product and service quality. The
present study will investigate the relationship among product and service quality,
customer satisfaction in the context of Hero Moto Corp.
4. LITERETURE REVIEW
Marsha Peter (2OO2) examines temporal changes in post-purchase product
satisfaction for a durable goods purchase. Involvement and satisfaction variables were
measured in a cross-sectional and a longitudinal study of car owners. Overall,
consumers with high product involvement showed slightly greater satisfaction with
their cars than low-involvement consumers over the term of ownership. However, in
the 2-month period after purchase, consumers with high product involvement showed
a decline in satisfaction, whereas low-involvement consumers' satisfaction increased.
The role of disconfirmation in these changes was investigated. Benefits and problems
disconfirmation were found to make independent contributions to satisfaction
judgments, and the strength and form of contribution varied with product involvement.
These findings suggest that benefits and problems disconfirmation need to be
measured separately in satisfaction research.
Yooshik Yoon(2004) studied the effects of motivation and satisfaction ondestination
loyalty: a structural model and investigates the relevant relationships among the
constructs by using a structural equation modeling approach. Consequently,
destination managers should establish a higher satisfaction level to create positive
post-purchase behavior, in order to improve and sustain destination competitiveness.
Diane Halstead(1993) studied the Focuses on a group of unsatisfied car owners.
Examines the roles of the car warranty and the post-purchase service received during
the complaint process in terms of their effects on customers' satisfaction with
complaint resolution. Presents some suggestions for customer service policies,
complaint handling procedures, and warranty fulfillment service.
James Y.L. Thong(2006) studied the effects of post-adoption beliefs on the
expectation-confirmation model for information technology continuance .The
expectation-confirmation model (ECM) of IT continuance is a model for investigating
continued information technology (IT) usage behavior. This paper reports on a study
that attempts to expand the set of post-adoption beliefs in the ECM, in order to extend
the application of the ECM beyond an instrumental focus. The expanded ECM,
incorporating the post-adoption beliefs of perceived usefulness, perceived enjoyment
5. and perceived ease of use, was empirically validated with data collected from an on-
line survey of 811 existing users of mobile Internet services. The data analysis showed
that the expanded ECM has good explanatory power (R2=57.6% of continued IT
usage intention and R2=67.8% of satisfaction), with all paths supported. Hence, the
expanded ECM can provide supplementary information that is relevant for
understanding continued IT usage. The significant effects of post-adoption perceived
ease of use and perceived enjoyment signify that the nature of the IT can be an
important boundary condition in understanding the continued IT usage behavior. At a
practical level, the expanded ECM presents IT product/service providers with deeper
insights into how to address IT users’ satisfaction and continued patronage.
Marsha L. Richins(2002) Post-purchase product satisfaction: Incorporating the
effects of involvement and time describes changes in post-purchase product
satisfaction for a durable goods purchase. Involvement and satisfaction variables were
measured in a cross-sectional and a longitudinal study of car owners. Overall,
consumers with high product involvement showed slightly greater satisfaction with
their cars than low-involvement consumers over the term of ownership. However, in
the 2-month period after purchase, consumers with high product involvement showed
a decline in satisfaction, whereas low-involvement consumers' satisfaction increased.
The role of disconfirmation in these changes was investigated. Benefits and problems
disconfirmation were found to make independent contributions to satisfaction
judgments, and the strength and form of contribution varied with product involvement.
These findings suggest that benefits and problems disconfirmation need to be
measured separately in satisfaction research
Claes Fornell(1992) examines that Many individual companies and some industries
monitor customer satisfaction on a continual basis, but Sweden is the first country to
do so on a national level. The annual Customer Satisfaction Barometer (CSB)
measures customer satisfaction in more than 30 industries and for more than 100
corporations. The new index is intended to be complementary to productivity
measures. Whereas productivity basically reflects quantity of output, CSB measures
quality of output (as experienced by the buyer). The author reports the results of a
large-scale Swedish effort to measure quality of the total consumption process as
customer satisfaction. The significance of customer satisfaction and its place within
6. the overall strategy of the firm are discussed. An implication from examining the
relationship between market share and customer satisfaction by a location model is
that satisfaction should be lower in industries where supply is homogeneous and
demand heterogeneous. Satisfaction should be higher when the
heterogeneity/homogeneity of demand is matched by the supply. Empirical support is
found for that proposition in monopolies as well as in competitive market structures.
Likewise, industries in general are found to have a high level of customer satisfaction
if they are highly dependent on satisfaction for repeat business. The opposite is found
for industries in which companies have more captive markets. For Sweden, the 1991
results show a slight increase in CSB, which should have a positive effect on the
general economic climate.
Richard Oliver (2000) Response determinants in satisfaction judgement, examines
that The effects of five determinants of satisfaction are tested as well as individual
differences in satisfaction formation. Manipulations of attribution, expectancy,
performance, disconfirmation, and equity are written into stock market trading
scenarios in a full factorial design. Results show that all main effects and four ordinal
two-way interactions are significant. Then, an individual-level analysis is performed
on the repeated measures data. Three clusters of subjects sharing similar response
tendencies (disconfirmation, performance, and equity) are identified and related to
investment attitudes, outcome attitudes, and demographics. No consistent relationships
are discovered, suggesting that the response differences reflect deeper behavioral
tendencies. Implications of this approach for satisfaction paradigms, satisfaction
theory, and individual satisfaction response orientations are presented.
7. 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 differences between perceived performance and
expectations. If the performance falls short of expectation, the customer is not
satisfied. If the performance matches the expectations the customer’s are highly
satisfied. If the performance is beyond his expectation 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 P.F. Ducker, the purpose
of business is to create and 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 customer stop availing
service, but society at large will condemn the firm and may even penalize it to the
point of its extinction.
8. SCOPE OF THE STUDY
The study is limited to Hero Moto. Corp. vehicle buyers. The customer
includes customers who enter the show room.
This study will help us to understand customers, preferences and their needs
expected from the business owners. This study will not only help me as a
student but is also assist Hero. Moto. Corp. to improve their service standards
9. OBJECTIVES
To identify the factor that influence the customer satisfaction.
To analyze after sales services of bikes.
10. HYPOTHESIS
The study is based on following assumption:
There are a lot of factors that influence customer satisfaction .
After sales services of the bikes of Hero Moto Corp. is good.
11. RESEARCH METHODOLOGY
To achieve the objectives of the study I have decided to use following elements of the
research:-
RESEARCH DESIGN
The study is basically based on both primary and secondary data. The primary data
has been collected through questionnaire and several structured and unstructured
interviews were also conducted to elicit fast hand information with the theme of the
research work. However, secondary data is collected from various sources like
journals, books, manuals, and reports of the state concerned for literature part. Data
collected both from primary and secondary sources have been interpreted with the help
of statistical devices. The study was conducted in 13 priority states during the period
from 2003-2007, actually focusing on growth of linked SHGs through microfinance.
SAMPLING TECHNIQUE
Judgmental sampling technique is used
SAMPLING SIZE
Sample size is estimated to be 50 people.
DATA COLLECTION
PRIMARY DATA:
Primary data can be collected by Questionnaire and Personal interviews with the
customers.
SECONDARY DATA:
Internet and existing literature of different organization can be a source of secondary
data. The surveys previously carried out in this respect can also be a source of
secondary data.
12. ORGANISATION OF STUDY
CHAPTER 1. Introduction and problem identification
1. Need and significance of the work along with managerial
understanding and applicability.
2. Review of Literature
3. Objectives of Study
4. Hypothesis
5. Research methodology
Chapter 2. Conceptual framework of the study
Detailed explanation (theory) about the theme / subject
area of the study will be given.
Chapter 3. Data analysis and interpretation
This will include data analysis and interpretation after
making thorough use and application of appropriate statistical
techniques as mentioned in chapter one.
Chapter. 4. Finding and conclusion
Chapter .5. Suggestion and recommendation along with
future implication of work
Appendices
Bibliography/list of references