A STUDY ON CUSTOMER SATISFACTION TOWARDS

MARUTI SUZUKI CARS WITH SPECIAL REFERENCE

TO AVG MOTORS THIRUVALLA
PROJECT REPORT
Submitted to Mahatma Gandhi University in partial fulfillment
of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

PRANAV M NAIR
Reg. No: 190031000680

Under the guidance of

DR.AJAI KRISHNAN G
Faculty Guide

Accredited by NAAC with ‘A’ Grade

DEPARTMENT OF MANAGEMENT STUDIES

MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES

TIRUVALLA
2021

i
 MAR ATHANASIOS COLLEGE
FOR ADVANCED STUDIES
TIRUVALLA
Ph: 0469 2730323 Fax: 0469 2730317
macfast@macfast.org
www.macfast.org

CERTIFICATE
This is to certify that the project report entitled
“A STUDY ON CUSTOMER
SATISFACTION TOWARDS MARUTI SUZUKI CARS WITH SPECIAL
REFERENCE TO AVG MOTORS THIRUVALLA
“is a bonafide report of the
project work undertakenPRANAV
by M NAIR
, fourthsemester MBA student of
our college during a period of 8 weeks commencing from 1st April to 30th May,
2021.

Dr. Ajai Krishnan G Dr Sudeep B Chandramana

Faculty Guide Head, Dept. of
anagement
M Studies

Rev. Dr.Cherian
J Kottayil University Examiner
Principal, MACFAST
 DECLARATION

I hereby declare that this project report entitled “A STUDY ON CUSTOMER

SATISFACTION TOWARDS MARUTI SUZUKI CARS WITH SPECIAL
REFERENCE TO AVG MOTORS THIRUVALLA” is a bonafide report of the
study undertaken by me, under the guidance of DR.AJAI KRISHNAN G,
Department of Management Studies, MACFAST, Tiruvalla.

I also declare that this project report has not been submitted to any other University
or Institute for the award of any degree or diploma.

TIRUVALLA PRANAV M NAIR

31/05/2021

ACKNOWLEDGEMENT

The study will not be complete without acknowledging my sincere gratitude to all
persons who have helped me in the preparation of this report.

I express my sincere thanks to God almighty for giving the strength and presence
of mind to complete the work successfully.

i
 Let me express my gratitude to the principal Rev. Dr. Cherian J Kottayil and I
express my sincere thanks to the Dr. Sudeep B Chandramana (HOD,
Department of Management Studies) and also I express my sincere thanks to the
faculty guide DR.AJAI KRISHNAN G for his valuable guidance, unfailing
support, good suggestions and timely encouragement for the preparation. Let me
also thank all the faculty members of the department for their help in the successful
completion of the project.

I would like to thank all those who have directly or indirectly contributed to the
success of the project. I also take this opportunity to express profound gratitude to
my parents, family members and several people who have contributed for the
successful completion of the project.

LIST OF TABLES

Table No. TITLE Page

No.
5.1 GENDER OF RESPONDENTS 45
5.2 AGE OF RESPONDENTS 46
5.3 MARITAL STATUS OF RESPONDENTS 47
5.4 EDUCATIONAL QUALIFICATION OF RESPONDENTS 48
5.5 OCCUPATION OF RESPONDENTS 49
5.6 ANNUAL INCOME OF RESPONDENTS 50
5.7 CAR MODELS OF RESPONDENTS 51

ii
 5.8 CAR SATISFACTION OF RESPONDENTS 52
5.9 SHOWROOM EXPERIENCE OF RESPONDENTS 53
5.10 AFTER SALES SERVICE SATISFACTION 54
5.11 SERVICE QUALITY SATISFACTION 55
5.12 EMPLOYEE BEHAVIOR 56
5.13 FACTORS INFLUENCING CAR PURCHASE 57

5.14.1 PRICE SATISFACTION 58

5.14.2 COMFORT SATISFACTION 59
5.14.3 ENGINE PERFORMANCE SATISFACTION 60
5.14.4 FUEL EFFICIENCY SATISFACTION 61
5.14.5 MAINTAINENCE COST SATISFACTION 62
5.14.6 DRIVING EASE SATISFACTION 63
5.14.7 ACCESSORIES AVAILABILITY 64
5.15 SOURCE OF FINANCE 65
5.16 RECOMMENDATION OF AVG MOTORS 66

LIST OF FIGURES

Figure No. TITLE Page

No.
1 LEVELS OF DRIVING AUTOMATION 11
2 ACSI MODEL OF CUSTOMER SATISFACTION 20
3 FACTORS OF CUSTOMER SATISFACTION 21
4 PROCESS OF CUSTOMER SATISFACTION 22
5 GENDER OF RESPONDENTS 45
6 AGE OF RESPONDENTS 46
7 MARITAL STATUS OF RESPONDENTS 47
8 EDUCATIONAL QUALIFICATION OF RESPONDENTS 48
9 OCCUPATION OF RESPONDENTS 49

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10 ANNUAL INCOME OF RESPONDENTS 50
11 CAR MODELS OF RESPONDENTS 51
12 CAR SATISFACTION OF RESPONDENTS 52
13 SHOWROOM EXPERIENCE OF RESPONDENTS 53
14 AFTER SALES SERVICE SATISFACTION 54
15 SERVICE QUALITY SATISFACTION 55
16 EMPLOYEE BEHAVIOR 56
17 FACTORS INFLUENCING CAR PURCHASE 57
18 PRICE SATISFACTION 58
19 COMFORT SATISFACTION 59
20 ENGINE PERFORMANCE SATISFACTION 60
21 FUEL EFFICIENCY SATISFACTION 61
22 MAINTAINENCE COST SATISFACTION 62
23 DRIVING EASE SATISFACTION 63
24 ACCESSORIES AVAILABILITY 64
25 SOURCE OF FINANCE 65
26 RECOMMENDATION OF AVG MOTORS 66

ABBREVIATIONS

ABS :ANTI-LOCK BRAKING SYSTEM

A C S I : AMERICAN CUSTOMER SATISFACTION MODEL

A C M A : AUTOMOTIVE COMPONENTS MANUFACTURERS

ASSOCIATION

ACG :AUTOBEI CONSULTING GROUP

AI :ARTIFICIAL INTELLIGENCE

C A G R :COMPOUND ANNUAL GROWTH RATE

iv
CSB : CUSTOMER SATISFACTION BAROMETER

DIPP :DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION

F DI :FOREIGN DIRECT INVESTMENT

GDP :GROSS DOMESTIC PRODUCT

IOT :INTERNET OF THINGSS

O I CA :ORGANISATION INTERNATINALE DES CONSTRUCTORS

d’AUTOMOBILES

CONTENTS
Page No.

ACKNOWLEDGEMENT (i-ii)

LIST OF TABLES (iii- iv)

LIST OF FIGURES (v)

ABBREVIATIONS (vi)

Sl No. Title Page No.

1 INTRODUCTION-STATEMENT OF THE PROBLEM

v
1.1 Background of the Study 01
1.2 Statement of the Problem 02
1.3 Relevance & Scope of the Study 02
1.4 Objectives of the Study 02

2 PROFILE OF AUTOMOBILE INDUSTRY

2.1 Business Process of the Automobile Industry 03

2.2 Market Demand & Supply – Contribution to GDP – Revenue
Generation 04
2.3 Level and Type of Competition – Firms Operating in the
Automobile Industry 07
2.4 Pricing Strategies in the Automobile Industry 08
2.5 Prospects and Challenges of the Automobile Industry 10
2.6 Key Drivers of the Automobile Industry 16

vi
3 REVIEW OF LITERATURE

3.1 Brief Theoretical Construct related to the Problem 20

3.2 An Overview of Earlier Studies 30
3.3 Uniqueness of Research Study 36

4 METHODOLOGY OF THE STUDY

4.1 Research Approach and design 39
4.2 Sources of Data 39
4.3 Sampling Design 40
4.4 Data Analysis Tools 40
4.5 Report Structure 41
4.6 Limitations of the Study 42
5 DATA ANALYSIS, INTERPRETATION AND
INFERENCE 45
6 FINDINGS OF THE STUDY 68
7 CONCLUSION 70
BIBLIOGRAPHY 71
ANNEXURES 72

vii
 CHAPTER 1

INTRODUCTION–STATEMENT OF THE PROBLEM

1.1 BACKGROUND OF THE STUDY

Customer satisfaction, a business term, is a measure of how products and services supplied
by a company meet or surpass customer expectation. It is seen as a key performance
indicator within business and is part of the four of a Scorecard. In a competitive
marketplace where businesses compete for customers, customer satisfaction is seen as a
key differentiator and increasingly has become a key element of business strategy.
However, the importance of customer satisfaction diminishes when a firm has increased
bargaining power. For example, cell phone plan providers, such as AT&T and Verizon,
participate in an industry that is an oligopoly, where only a few suppliers of a certain
product or service exist. As such, many cell phone plan contracts have a lot of fine print
with provisions that they would never get away if there were, say, a hundred cell phone
plan providers, because customer satisfaction would be way too low, and customers would
easily have the option of leaving for a better contract offer. There is a substantial body of
empirical literature that establishes the benefits of customer satisfaction for firms.

Although companies conduct customer satisfaction research for various reasons, the overall
goal is to help them “stay as close to their customers as humanly possible. Many leading
edge companies and research firms focus on obtaining useful feedback from customers and
clients and converting it into “actionable” steps to improve their performance. Some want
feedback from customers about existing or new products and services. Others want to know
how to target their resources on issues of concern to customers. Still others want to
demonstrate a commitment to listening to their customers. As a by-product, customer
feedback can provide actual examples of good and bad practices for employee training and
continuous improvement efforts. The organization‟s objectives define what it wants to
learn from customers and guides how the information is collected. Experts advise that first
defining measurable objectives will allow organizations to “learn the effectiveness of your
survey, and it will help you in reinvesting the information you learned. In general, the
research focus is how reliably the organization fulfills customer satisfaction and what can
be done to improve.
 1

1.2 STATEMENT OF THE PROBLEM

The objective of the study is to find out the satisfaction of customers of AVG MOTORS
THIRUVALLA.It helps in analyzing the satisfaction of customers in their products. This
study is mainly concerned with the marketing department of the company.

Understanding and meeting customer‟s expectations and subsequently being different from
competitors are important in order to survive in the today world of globalization. Due to
dynamic environment and increasing services from competitors, it is must for automobile
industry to provide excellent service and focus on continuing improvement.

1.3 RELEVANCE & SCOPE OF THE STUDY

The main purpose of the study is to understand the customer satisfaction and to know the
customers behavior towards MARUTI SUZUKI Motors. This study is needed to find out
the customer satisfaction towards the products and services of MARUTI SUZUKI and its
importance to customer as well as to company.

The main reasons why customer satisfaction is important are:

1. It is a leading indicator of consumer repurchases intentions and loyalty.

2. It reduces customer churn.
3. It reduces negative word of mouth.
4. It helps to retain customers and acquire new ones.

1.4 OBJECTIVES OF THE STUDY

1. To study the demographic profile of customers of Maruti Suzuki cars at AVG Motors
Thiruvalla
2. To know the customer satisfaction towards the after sales service offers by AVG
MOTORS.
3. To study the customer satisfaction towards Maruti Suzuki cars at AVG Motors
Thiruvalla.

CHAPTER 2

PROFILE OF AUTOMOBILE INDUSTRY

2.1 BUSINESS PROCESS OF AUTOMOBILE INDUSTRY
The term automotive was created from Greek autos (self), and Latin motivus (of motion) to
represent any form of self-powered vehicle. This term was proposed by Elmer Sperry.
Automotive industry is a wide range of companies involved in the design, development,
manufacturing, marketing and selling of motor vehicles, some of them are called
automakers.
It is the one of the world‟s most important economic sector by revenue. The automotive
industry does not include industries dedicated to the maintenance of automobiles following
delivery to the end-user, such as automobile repair shop and motor fuel filling stations. The
automotive industry began in the 1890s with hundreds of manufacturers that pioneered the
horseless carriage. For many decades, the United States led the world in total automobile
production. In 1929, before the Great Depression, the world had 32,028,500 automobiles in
use, and the U.S. automobile industry produced over 90% of them. At that time the U.S.
had one car per 4.87 persons. After World War II, the U.S. produced about 75 percent of
world's auto production. In 1980, the U.S. was overtaken by Japan and became world's
leader again in 1994. In 2006, Japan narrowly passed the U.S. in production and held this
rank until 2009, when China took the top spot with 13.8 million units. With 19.3 million
units manufactured in 2012, China almost doubled the U.S. production, with 10.3 million
units, while Japan was in third place with 9.9 million units. From 1970 (140 models) over
1998 (260 models) to 2012 (684 models), the number of automobile models in the U.S. has
grown exponentially.

The history of the automobile industry, through brief compared with that of many other
industries has exceptional interest because of its effects on 20th century history. Although
the automobile originated in Europe in the late 19th century, the United States completely
dominated the world industry for the first half of the 20th century through invention of
mass production technique. The automobile is a primary mode of transportation for many
developed economies. Automobiles and other motor vehicles have to comply with a certain
number of norms and regulations whether local or international, in order to be in the
market. Around the world, there were about 806 million cars and light trucks on the road in
2007, consuming over 980 billion liters of gasoline and diesel fuel yearly. The automobile
is a primary mode of transportation for many developed economies. In the developed

3
countries, the automotive industry has slowed down. it is also expected that this trend will
continue., especially as the younger generation of people no longer want to own a car
anymore and prefer other modes of transport.

The United States has one of the largest automotive in the world and is home to many
global vehicles and auto parts manufacturers. US is the world‟s second largest market for
vehicle sales. There is also an extensive network of auto parts suppliers serving the
industry. Motor vehicles parts manufacturing employed on average, just over 56000 people
in 2015. It is common for automobile manufacturers to hold stakes in other automobiles
manufacturers.
These ownership can be explored under the detail for the individual companies.

2.2 MARKET DEMAND & SUPPLY – CONTRIBUTION TO GDP –

REVENUE GENERATION

2.2.1 MARKET DEMAND & SUPPLY

Demand factors for automobile industry

• Higher the price of automobiles, lower the demand would be.

• Availability of finance option makes it affordable for consumers who don‟t have
enough money in hand and hence increases demand.
• As income of people increases, their demand for automobiles also increases.
• Better the presence and quality of public transport, lower will be the demand for
private vehicles.
• Demand for petrol and automobiles move together. Hence higher the price of petrol,
lower will be the demand for automobiles.
• If income distribution among the population favours the rich class, automobiles will
be more in demand.
• Economic growth and development. As the economy grows, per capita income,
education, urbanisation, lifestyle of people also improves and this has a positive
impact on automobiles demand too.

4
Supply factors for automobile industry

• Higher the price of automobiles, higher will be the supply.

• Higher cost of inputs (rubber, steel, labour, machinery etc) would lead to decline in
production of automobiles.
• Technological advancement would make production more profitable and hence
would favour production.
• Taxes. Change in government policies which are pro automobile industry like
reduction in road tax, reduction in custom duty over import of raw materials needed
for manufacturing cars etc. would increase supply of automobiles in the market.

2.2.2 CONTRIBUTION TO GDP

The automobile sector of India is one of the largest in the world and accounts for over 7.1%
of India‟s gross domestic product (GDP). It also contributes to nearly 22% of the country‟s
manufacturing GDP. The sector was first opened to foreign direct investment (FDI) in the
year 1991 during the liberalisation of the Indian economy and has come a long way since.
The industry produced a total of 23,960,940 vehicles in April-March 2015 as against
23,358,047 in April-March 2014, registering a growth of 2.58% over the same period last
year. The country is also currently the 6th largest market in the world for automobiles and
is expected to become the world's third-biggest car market by the year 2020. As per the
Automotive Components Manufacturers Association of India (ACMA), the world standings
for the Indian automobile sector are as follows:

• Largest tractor manufacturer

• 2nd largest two wheeler manufacturer
• 2nd largest bus manufacturer
• 5th largest heavy truck manufacturer
• 6th largest car manufacturer
• 8th largest commercial vehicle manufacturer

Today, 100% FDI is allowed in the sector through the automatic approval route which
means that foreign investors do not require the prior authorization of the Government of

5
India. The impact of this decision can be seen in the data released by Department of
Industrial Policy and Promotion (DIPP) which states that the industry has attracted FDI
worth USD 15.065 billion during the period April 2000 to March 2016.

Thus, it can be reasonably concluded that India has emerged as one of the key global
players (both as a consumer and a producer) in the automobile industry. It has witnessed
tremendous growth, especially in the last few years and has become a base for global
manufacturers. Volkswagen, Nissan, Renault, General Motors, Ford, Honda, Suzuki,
Hyundai, Daimler, BMW, Skoda, Audi are all present in India and are manufacturing and
assembling locally. Mercedes-Benz recently decided to make the entry level GLA-class
Sport Utility Vehicle (SUV) in India. Japanese two-wheeler manufacturer Honda
Motorcycle and Scooter India (HMSI) opened its 4th and world‟s largest scooter plant in
Gujarat while Chrysler has planned to invest USD 513.5 million in Maharashtra, to
manufacture Jeep Grand Cherokee model.

2.2.3 REVENUE GENERATION

Around the world, there were about 806 million cars and light trucks on the road in 2007,
consuming over 980 billion litres (980,000,000 m3) of gasoline and diesel fuel yearly. The
automobile is a primary mode of transportation for many developed economies. The
Detroit branch of Boston Consulting Group predicted that, by 2014, one-third of world
demand would be in the four BRIC markets (Brazil, Russia, India and China). Meanwhile,
in the developed countries, the automotive industry has slowed down. It is also expected
that this trend will continue, especially as the younger generations of people (in highly
urbanized countries) no longer want to own a car anymore, and prefer other modes of
transport. Other potentially powerful automotive markets are Iran and Indonesia. Emerging
auto markets already buy more cars than established markets. According to a J.D. Power
study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010.
The study, performed in 2010 expected this trend to accelerate. However, more recent
reports (2012) confirmed the opposite; namely that the automotive industry was slowing
down even in BRIC countries. In the United States, vehicle sales peaked in 2000, at 17.8
million units.

In the modern age-the development of the economy of any country cannot be imagined
without the development of the automobile industry. In recent years, the global share of the

6
automotive industry in the GDP structure is increasing, and the growth dynamics will
create new jobs and increase the average wage. The automotive industry contributes to the
expansion of the taxable base and revenues of the state budget, develops auxiliary
branches, influences scientific and technical progress, testifies to the level of solvent
demand and the standard of living of the population of the country and much more. Thus,
the effective functioning and development of the automotive industry is important not only
economic, but also social significance for any country.

2.3 LEVEL AND TYPE OF COMPETITION – FIRMS OPERATING IN

AUTOMOBILE INDUSTRY

European, Asian, and American carmakers dominate the worldwide car-manufacturing

market. The “big five” carmakers in the global industry are Toyota, Ford, General Motors,
Hyundai and Volkswagen. The automobile market is oligopolistic. An oligopolistic market
implies that the industry is dominated by a small number of carmakers. Such a market is
unique because the business action of one car manufacturer significantly influences the
operations of the other players. Statistics published in 2013 by the OICA, a carmakers‟
association, in 2013 show that the top 10 global carmakers controlled more than 70 percent
of the world‟s automobile market. The financial operations of the players in this industry
are mutually inter-reliant. The interdependence of players in the industry was evident
during the 2009 economic downturn where the top carmakers in the United States market
experienced similar challenges. Despite the fact that major carmakers in the industry
manufacture automobiles used for transport purposes, their prices and product features
vary. Because of this variation, all the manufacturers use marketing and advertising as
crucial tools for competition. Car manufacturers subdivide their markets and charge their
consumers different prices depending on their demand elasticity.

The competitive realm of the auto industry is dynamic, and has been throughout the past
century.. Over the last century we have witnessed the evolution from craft production to
mass production under Henry Ford, to Sloan‟s policy of brand and product variety, to lean
production, and more recently, to build-to-order initiatives at both volume and luxury
vehicle manufacturers.. In the process, the competitive realm has shifted considerably, and
the main basis on which companies are competing has changed. In this chapter, the
dynamics of the competitive realm in the motor industry have been laid out over time, and
four generic phases could be identified: cost leadership, variety and choice, diversification,

7
and customization. At present, most companies are at the diversification and customization
stages of this model, although it could be argued that Ford and GM in North America have
remained at the

―variety and choice stage, competing on both cost and model variety, whereas others, such
as BMW, Volkswagen, Toyota, Audi, and Renault, have found their diversifying feature:
brand image, innovative design, leading product technology or manufacturing excellence
provide the basis on which these companies have established individual competitive
profiles.
Truly sustainable competitiveness in tomorrow‟s automobile industry can only be found in
developing customer-responsive supply systems that respond to both demanding customer
needs, as well an increasing product and model variety that has invoked considerable
changes in the economic foundations of the global automotive industry. Today the mood is
cautious, and industry growth has moderated. But nonetheless the long term prospects are
strong, as India is poised to be one of the fastest growing automotive markets worldwide
over the next decade and is slated to move from number 8 positions to number 3 positions
in the passenger vehicle market. And to harness this opportunity, effective management of
the short term challenges and implementation of sustainable strategies is the key to robust
industry growth.

2.4 PRICING STRATEGIES IN AUTOMOBILE INDUSTRY

Effective pricing strategies shall help a company sell its products in a competitive market to
witness a profit. So, what are price strategies? Well, it is a way or literally an approach to
find the competitive price of service or a product in that particular market. This strategy is
one of the other marketing strategies followed in the system of every management. It is
indeed a known fact that a company's ultimate goal is to maximize their turnover. In order
to maximize the profit, one has to choose the right strategy for price setting.

Business magnate might use different combinations of price strategies to increase sales, but
finding the right strategy is a crucial step in the journey towards success. Often, the
misconceived thought on price setting is, sales volume is directly proportional to profit. An
increase in sales volume is expected to increase a company's profit. There are different
strategies one can depend on in the process of price setting. A few significant factors are
given below.

8
2.4.1 PENETRATION & PSYCHOLOGICAL PRICING STRATEGIES

In order to gain a great market share, many companies embrace the penetration pricing
strategy. The company aims to set up a customer-based price in the market. This is
primarily achieved by providing a free to low price for their products or services to a
limited period of time. This later on, with a revised version comes into the market as a
premium product with a little raise in the price. This strategy is implied to meet the
expectation that consumers will hop on to new brands when they're priced low. On the
other hand, a psychological pricing strategy is a method that embraces a consumer's
emotional response rather than considering their rational one. Here consumer ignores the
quality of a service/ product but sticks on to the costing price.

2.4.2 PRODUCT LINE & ECONOMY PRICING STRATEGIES

The product line pricing strategy is nothing but, providing service with an option to
upgrade upon choosing higher value packs. Consumers are pushed to compare the
packages and choose a wise plus cost-effective product or service. The other purpose of the
product line strategy is to bring a product or service to the spotlight which had low
visibility or recognition earlier. Whereas, economy pricing strategy embraces no to the low
marketing cost in product or service promotion. It's more like the budget pricing of a
product or service. A great example would be promoting only a certain range of products or
services that shall gain specific and quick attention among people.

2.4.3 CUSTOMER VALUE - BASED PRICING STRATEGY

This is the most effective method that is followed by many successful companies.
Valuebased pricing is a nothing but, price setting strategy that exclusively focuses on
consumer perceived value of a service or product. This is entirely based on how consumers
value the product or service and how they find it worth buying. Many companies that offer
unique and high-value products choose this strategy in setting the price. The value-based
pricing embraces customer's abilities to buy a product by considering the unparalleled
experience upon buying a particular service or a product. Many luxury automakers find
customer-value based pricing strategy an effective method of approach. A value-based
strategy will enable manufacturing companies to extend the life-cycle of existing products
and will help to establish a great bond with value-added suppliers.

9
2.4.4 PRICING ANALYTICS

Manufacturers and service providers predict the future well enough to carry out a price
optimization system. They approach the Autobei Consulting Group for a detailed analysis
of pricing strategies for automobiles. We evaluate the past performance with a specific set
of market conditions and suggest the state of conditions for the probability of profit for
your product or service in the market. This will help the automotive industry to gain an
insight into pricing strategy. Pricing analytics include the process of finding the
underperformers of a particular industry. It's highly crucial to analyze why certain product
lines become your cause of down economy. We develop reports exclusively after
researching the probabilities and will let you understand the customer value definition with
facts and figures.

2.4.5 CUSTOMER SATISFACTION

When a pricing system includes detailed pricing analytics, it will definitely boost the
customers' satisfaction. The system of achieving maximum profit with minimum wasted
effort shall only be obtained upon consulting the business consultants. ACG shall help you
find not only the best pricing strategy for your company but also identify the substitute
product or service that might better fit in a customers' budget. This will help your sales
team create a budget based service or product that shall come with a package deal to the
customers which in turn allows you to enhance customer's ability to purchase.

Almost everything in business aims for justification for the value of a specific price.
Customers do not buy a product or service by just seeing the price tag, they meticulously
research before buying it. With much of comparisons, they find the right choice that will fit
in their budget and lifestyle. Our business consulting services shall help you understand
how customers understand the value of a service or product. We consider a lot of factors,
impacts on buying decisions with that of other parameters before drawing the conclusion.

2.5 PROSPECTS AND CHALLENGES OF AUTOMOBILE INDUSTRY

2.5.1 PROSPECTS OF AUTOMOBILE INDUSTRY

Key long-term trends are underway in the automotive industry. There will be a major
transformation over the next decade. Technology is significantly advancing for vehicles.

10
Through the year 2030, we are likely to see an increasing amount of electric vehicles on
the road. There is also likely to be more autonomous vehicles and ride-sharing.

 One primary trend is that vehicles will increasingly become electric. Concerns about
climate change, especially with younger generations creates the need and desire for
cleaner vehicles. As technology advances and electric vehicles are able to increase
their mileage between charges, they are likely to see increased sales.

 Vehicles are expected to increasingly move toward autonomous capabilities. This

will occur in stages.

Levels of driving Automation

Fig 1

Level 4 and 5 vehicles are likely to become available in the 2020s. (Level 5 is fully
autonomous with vehicles that can operate on any road under any condition that a
human could). However, they will probably be limited among the high-end expensive
vehicles initially. Another likely scenario is for trucks and buses to also become
autonomous in the early stages. Older qualified truck drivers are retiring and it may be
difficult for them to be replaced. The trucking industry is expected to need 900,000 new
drivers over the next decade. The industry is having a tough time filling the 100,000 job
opening in the current market. Therefore, autonomous trucks will be a viable way for
the trucking industry to keep up with demand. Consumers may not have a strong need
for autonomous vehicles right away. The need for businesses to run efficiently is

11
 another story. This need will drive the use of autonomous vehicles in the trucking
industry earlier than wide adoption among consumers.

 Vehicles are expected to be increasingly shared through 2030. This is likely to occur
in urban areas and in Europe. Fleets of vehicles could take commonly traveled routes
back and forth for commuters to get to and from work, sports events, concerts, etc.
Car-sharing would allow users to pay per minute or mile without worrying about
ownership. Some vehicle owners could make their vehicles available for sharing for
extra money. Sixty percent of Europeans stated they would be prepared to share their
car for money.

 Vehicles are expected to be increasingly „connected‟ via internet and cloud. Vehicles
will be connected to traffic management infrastructure and with other cars. Vehicles
will also be connected to passengers and pedestrians. Perhaps vehicles will send
warnings to pedestrians‟ phones when they are too close.

 Vehicles are likely to be „yearly‟ updated. Annual updates will replace the current 5
to 8-year cycle for major updates. Trucks and cars are likely to run more frequently
as a result of being used differently. Autonomous trucks won‟t need to take sleeping
breaks. They may need some charging time, but that could take less than a full
night‟s sleep for a driver. Vehicle-sharing is likely to have cars on the road more
often. The increased frequency of usage creates the need for short replacement
cycles. Vehicles are expected to travel for more miles and they are used more
intensively. The short update cycles will also be for the latest hardware/software
developments.

2.5.1.1 OTHER EXPECTED AUTOMOTIVE TRENDS

Vehicle inventory on the roads is expected to decrease significantly according to PwC.

This could be because of the expected increase of shared vehicles on the road lessening
the total amount owned by consumers. However, vehicle sales are expected to rise
because the vehicles will need to be replaced more often as a result of more frequent
useage.

 Expected inventory decrease by country by 2030: Europe 25% decrease, United States
22% decrease, and China 50% decrease.

12
 There will be rapid R&D investments by auto manufacturers and related businesses.

 Total mileage is expected to increase as the amount of shared vehicles increases.

Instead of cars sitting around in parking lots while people are at work, shared vehicles
will be in use wherever driving needs arise. This will increase total mileage.

 Decisions regarding long-term structure and regulations for autonomous vehicles are
expected to occur between 2020 and 2025.

 Auto manufacturers and suppliers will have shrinking margins, but will have to invest
in innovations to keep pace with the new demand. The lower manufacturing margins
could lead to automakers providing mobility services (running a fleet of shared
vehicles) to boost margins. So, the future business model for automakers may include:
manufacturing, sales and the operation of shared vehicles.

 About 50% of mileage driven in China, 40% of mileage driven in Europe and 36% of
mileage driven in the U.S. could be covered by autonomous vehicles by 2030.

 By 2030, total mileage driven may increase by 24 in the United States, 28% in Europe,
and 183% in China.

 55% of all new car sales could be fully electric by 2030.

 95% of new car sales are expected to be partially electric by 2030.

 During the transition period to autonomous, annual vehicle sales are expected to
increase by 40% to 24 million units in Europe, up 30% in China to 35 million units,
and up 20% in the United States to 22 million units.

 Ride-sharing in Europe is expected to grow at a CAGR of 20% by 2030. This will take
ride-sharing from 1% currently to 10% by the mid 2020s and 25% by 2030.

 Ride-sharing in the United States is expected to increase from 1% to 33.5% in 2030.

 The fastest growth for ride-sharing is expected to be in China. By 2030, 45% of

personal mileage in China is expected to be from shared vehicles.

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2.5.1.2 POTENTIAL NEW VEHICLE BATTERY TECHNOLOGY

There is new promising battery technology that may allow electric vehicle owners to
recharge their batteries in a similar way that we do now - with a liquid. This technology is
known as flow batteries. Flow batteries can be charged in minutes with a liquid containing
electrolytes. This looks like a practical solution to consumers‟ concerns of being limited
by a range of miles or long charging times for electric vehicles.

Flow battery technology has been around since the 1980s. However, the old flow batteries
were too heavy for vehicles. The new flow batteries are light enough for vehicles. They can
be filled as quickly as we fill cars with gasoline.

Flow battery technology has the potential to be added quickly to existing infrastructure
because a liquid-moving and storage system is already in place for gasoline. However, the
concerns about cost, safety and reliability for flow batteries still need to be resolved
before this could be put into widespread use.

Zinc-air batteries are another possibility for electric vehicles. They have the advantage of
being lighter and less costly (don't use cobalt) as compared to lithium-ion batteries. Zinc-
air batteries are also not flammable, giving them another key advantage over lithium-ion.
Zinc-air batteries are already used in hearing aids, watches, and in cell phone towers.

The challenge for zinc-air batteries is that when you try to recharge them, dendrite crystals
grow, which can short-out the battery when they get large enough. However, technology is
being developed to reduce dendrite growth to prevent shorting. So, zinc-air batteries will
be an important development to watch for electric vehicles as well as for grid storage in
the future.

Currently, a private company, NantEnergy, has been successfully developing zinc-air

battery technology. There are also other small players in the industry, but nothing that I
would declare as investment worthy at the moment. We'll keep an eye on this as
developments are achieved.

2.5.2 CHALLENGES OF AUTOMOBILE INDUSTRY

At a glance, it may seem that the automotive industry is going strong and has nothing to
worry about. In the United States, it serves as the most significant component of retail

14
sales (about 20% of the total). It contributes almost 3% to the gross domestic product and
employs nearly 18 million people.

However, under the surface, things are not as optimistic: The entire industry already faces
some very serious challenges, which will play an even more significant role over the next
decade. The very fact that the industry is such a big contributor to the economy means that
anything that happens to it will have a major impact on the world as a whole.

So what are these challenges? Let us take a closer look.

2.5.2.1 ENVIRONMENTALIST PRESSURE AND FUEL DEPENDENCE

For a long time, the automotive industry has been caught between a rock and a hard place;
or, more specifically, between customers‟ demands and the pressure from
environmentalists and governmental regulations. As transportation is responsible for about
30% of CO<sub<2 emissions in the European Union, car manufacturers are forced to
continuously work to decrease CO2 emissions from their new models, which in turn
increases their price and decreases their performance and safety (because the most
common approach to meeting new requirements is lowering the car‟s weight, which
means using lighter and flimsier materials). This makes production of vehicles using fossil
fuels an increasingly expensive and unpromising venue, especially when combined with
the general instability of the oil market (a recent attack on a Saudi oil plant shows how a
single event can disrupt it for months).

2.5.2.2 RISE OF CAR SHARING

The automotive industry has to take into account the general trend against individual car
ownership. This no longer concerns just the people who travel by air and hire a car to
move around in a new city at their leisure. New rental services are different because they
are primarily used by locals – people only who rent cars for short periods of time when
they need them. This means that people are buying fewer cars, and the total number of
cars will still be less than if every individual owns a vehicle. This trend is likely to grow
more important in the coming years, and the automotive industry has to find ways of
staying profitable in spite of it.

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2.5.2.3 ELECTRIC VEHICLES

As electric vehicles produce over 50% less CO2 emissions than average gas-powered
vehicles, governments and environmentalists strongly promote them. This means that car
manufacturers need to invest in developing this technology if they want to stay in business
once the stranglehold of CO2 regulations tightens around their necks. The companies that
can‟t produce solutions that are cheap and efficient enough are likely to go out of
business.

2.5.2.4 CHINESE MARKET

For a long time, the Chinese automotive market has been the most profitable in the world.
Dealing with it was risky, but staying away was riskier still – any car manufacturer that
ignores China loses share in a rapidly growing and extremely promising market. The
situation remains more or less the same now, with allowance for the changing economic
situation. The rapid growth that often disrupted any initial plans was replaced by slower
growth, an extremely fragmented market, savage competition, more restrictions related to
air pollution and traffic congestion, and the emergence of the used car market.

2.5.2.5 SMART, CONNECTED, AND SELF-DRIVING VEHICLES

The emergence of the Internet of Things and AI in vehicles may change the car industry
forever. Cars that drive and interact with each other without human participation will
completely change the way people travel, It won‟t happen overnight but, once it starts, it
will not stop until this model completely replaces the old paradigm. So far, multiple car
manufacturers are making inroads into this realm but progress is relatively slow, and none
of them have advanced far enough to completely ensure the safety of everyone on the
road. The company that first achieves this will have the chance to become the dominant
force in the car market for decades to come – which means that all leading manufacturers
have to invest huge amounts of resources into this project if they want to remain relevant
in the future.

The automotive industry‟s challenges lie in both the technological and economic spheres,
and there are no clear-cut ways of overcoming them. It remains to be seen how
manufacturers will deal with them, and if these changes will lead to a radical restructuring
of the market.

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2.6 KEY DRIVERS OF AUTOMOBILE INDUSTRY

2.6.1 ECONOMIC CONDITIONS

The first key driver is economic conditions. When economic conditions are favorable,
people are more likely to purchase new vehicles giving momentum to the industry.
Slowdown in economic output leads to reduced consumer and business confidence and
levels of vehicle consumption goes down.

Automotive manufacturers need to plan capacity to achieve economies of scale. Companies

plan their capacities based on their sales predictions which are totally dependent on
economic cycles. The capacity issue has a strong influence on industry economics as
vehicle prices are calculated on forecast capacities and reduced capacity means higher unit
costs. Vehicle makers, therefore, get heavily impacted due to economic conditions.

2.6.2 CONSUMER DEMAND AND INTERESTS

The second key driver is consumer interest, their preferences and demand. There is a
growing demand for more choice. Volume production may become similar to that for
premium cars, with a greater number of vehicles being made to order on the basis of a
multi-option choice. The market for niche vehicles is growing, as consumers demand
more variation of body shape and styling. This has led to a variety of body shapes being
constructed on standard platforms.

There is an increased awareness of occupant and pedestrian safety, and consumers also
look for greater fuel economy, exemplified by the growing rise of fossil fuel prices.
Consumer are becoming more aware of specifications and looking for inclusion of more
on-board electronics and telecommunications systems. Automobile safety is tremendously
important to consumers in all markets and consumers are willing to pay more for vehicles
with safety features.

2.6.3 GLOBALIZATION

The third key driver is globalization and global industry influences. Today, the modern
global automotive industry operates in a global competitive marketplace. Globalization of
the automotive industry has been greatly accelerated during the last half of the 1990's due
to the construction of important overseas facilities and establishment of mergers between

17
giant multinational automakers. The world's largest automobile manufacturers invest into
production facilities in emerging markets in order to reduce production costs. Automakers,
have merged with, and in some cases established commercial strategic partnerships with
other automobile manufacturers, enabling them to expand in overseas markets.

Increasing global competition amongst the global manufacturers and positioning within
foreign markets has divided the world's automakers into three tiers, the first tier being
GM, Ford, Toyota, Honda and Volkswagen, and the two remaining tier manufacturers
attempting to consolidate or merge with other lower tier automakers to compete with the
first tier companies.
2.6.4 TECHNOLOGICAL INNOVATIONS

The fourth key driver influencing automotive industry significantly is Technology.

Automotive companies seek to take advantage of sophisticated technology to address the
competitive pressure and to meet increased customer expectations on quality and cost.
Technological advances help them add value to their vehicles and offset the squeeze on
costs and profit margins. Technology also helps them meeting the demands of
environmental legislation. It is through technology that manufacturers are able to address
consumer demands for increased safety and sophistication.

Other innovations that consumers are interested in include features that improve
navigation, like GPS, and features that enhance entertainment, including satellite radio
and in-car access to digital music.

In terms of the vehicle, the innovations that are likely to be in demand are more
electronics and telematics, move to a 42-volt electrical system, safety improvements,
electrically controlled steering, braking, ABS and suspension. There might be continued
development of electric, hybrid and fuel cell drives, especially for city cars and fleet
vehicles.

Features likely to be introduced could be sophisticated route guidance, inter-model route

planning, lane guidance and proximity radars for speed control and warning systems. The
consumer in this sector always demands innovation and technology-driven innovations
such as fuel-efficient, safer, more comfortable low-emission vehicles will shape the future
of the industry.

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2.6.5 GOVERNMENT & REGULATIONS

The fifth key driver of the automotive industry is government. Legislation is a major driver
of the industry; emissions and recycling legislation have a strong impact both on vehicle
technologies and construction. In many countries, governments have imposed strict
environmental regulations dealing with fuel economy and emissions control on auto
manufacturers. These environmental legislations vary in different countries and define
standards that are compulsory for all vehicles sold in those countries

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 CHAPTER 3
REVIEW OF LITERATURE

3.1BRIEF THEORETICAL CONSTRUCT RELATED TO THE

PROBLEM

3.1.1 WHAT IS CUSTOMER SATISFACTION

Customer satisfaction is a team making. It is a measure of how to products and service
supplied by company meet or surpass customer expansion. Customer satisfaction is defined
as the number of customers, or percentage of total customers, whose reported experience
with a farm, its products, or its service (ratings) exceeds satisfied satisfaction goals in a
survey of nearly 200 senior making managers,71% responded that they found a customer
satisfaction metric very useful in managing and monitoring their business.

ACSI Model of Customer Satisfaction

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 Fig 2.
It is seen as a key performance indicator within business and is often part of a balanced
score card. In a competitive market where businesses compact for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy. Within organization customer satisfaction ratings can have powerful
effects. They focus employers on the importance of fulfilling customer‟s expectations.
Furthermore when these ratings dip, they warn of problems that can affect sale and
profitability.These matrixes quantify an important dynamics. When a brand has loyal
customers, it gains positive word of-mouth marketing, which is both free and highly
effective.
Therefore it is essential for business to effectively manage customer satisfaction. To be able
do this farms need reliable and representative measure of satisfaction.

“In researching satisfaction, farms generally ask customers whether their product or
service has met or exceeded expansion. Thus, expansion is a key factor behind
satisfaction. When customer have a high expectation and the reality falls short, they will
be disappointed and will likely rate their experience less than satisfying. For this reason, a
luxury resort, for example, might receive a lower Satisfaction rating than a budget
hoteleven through these facilities and services would be deemed superior in absolute
teams” The important of customer satisfaction diminishes when a farm has increased
bargaining Dower. For example, cell phone plan providers, such as AT & T Verizon,
participate in an industry that is an oligopoly, where only a few suppliers of a certain
product or service exist. As such, many cell Phone plan contracts have a lot of tine print
with provisions that they would never get away if there Were, say, 100 cell phone plan

28
providers, because customer satisfaction would be far to low. and customers would easily
have the options of leaving for a better contract offer.

Factors of Customer Satisfaction

Fig 3.
Customer satisfaction is a term frequently used in marketing. While it's often abbreviated
as CSAT, it is more correct to abbreviate it as CS at. It is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer
satisfaction is defined as "the number of customers, or percentage of total customers,
whose reported experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals. In a survey of nearly 200 senior marketing managers, 71
percent responded that they found a customer satisfaction metric very useful in managing
and monitoring their businesses.
The existence of many companies on the market is conditioned with a number of satisfied
customers. Customers are the key factor of the existence and company development on
the market. It is obvious then, that firms, which want to face the competition, need to
provide valuable and unique terms to their customers that will satisfy their needs. This
satisfaction includes not only the feelings associated with the purchasing process, but also
the atmosphere before and after the execution of purchases.

Process of Customer Satisfaction

29
 Fig 4.
If the company brings itself closer for clients, it easier fulfills their needs and desires for in
a long period of time. Therefore, a crucial factor of building a long-term success of the
company is ongoing satisfying client‟s needs. Customer satisfaction is often associated
with the customer gratification. Products or services, that are a source of satisfaction,
provide the desirable value to their customers, at least in an sufficient degree. Standard ISO
10004 specifies, that: “Satisfaction is a judgments, an opini

on expressed by the customer. The degree of satisfaction reflects the gap between the
customer‟s vision of the expected product, and the customer‟s perception of the delivered
product”. All decisions, made by the consumer, are affected by many factors, including
economic ones, such as: incomes, price, savings, loans, the impact of marketing
instruments, and noneconomic factors, such as: demographic, social or psychological ones.
Recognizing and satisfying customer‟s needs, expectations, preferences and behaviour is
not easy and what is more knowing it does not guarantee success on the market. The
reason of this is the fact, that consumer behaviour is not rational. Consumers, who make a
purchase of a certain good, usually have already clarified requirements referring to its
quality, purpose or use. They do not pay for the product in a physical sense, but they pay
for value or what they expect from the product. Expectation has a different scope and
sometimes they could be very overstated or quite modest. That‟s why taking a decision by
the consumer is preceded by initiating and defining the customer‟s specific needs.

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A state of satisfaction or dissatisfaction is a subjective feeling and is a results of specific
experiences of individual perceptions and emotions. This satisfaction or dissatisfaction
reflects a feeling connected with the completed or unfulfilled expectations in relation to a
particular product or service . The satisfaction felt by the client, is associated with the
experience of his positive impressions, and conversely will be linked to dissatisfaction
with the lack of positive incentives.

3.1.2 ADVANTAGES OF CUSTOMER SATISFACTION SURVEYS

• Up-to-Date Feedback: Gather current customer feedback on various aspects of

your company. You can stay on top of customer trends through regularly scheduled
online surveys or email surveys, and receive instant customer feedback. It is always
useful to acquire insight into how your customers are currently reacting to all
aspects of your business.
• Benchmark Results: You can administer the same survey every so often to
customers to gain continued insight into your customers. Surveys can have the
same questions, which will allow you to compare data over time and benchmark
survey data across previous years to determine if any changes need to be made.
• Show that You Care: Customers like to be asked for their feedback. It gives the
customer the perception that your company values them; is committed to keeping
them as a long term customer; and bases business decisions on their feedback.

3.1.3 IMPORTANCE OF MEASURING CUSTOMER SATISFACTION

While good research can be used for performance management and/or to meet statutory
requirements the most successful customer measurement programs are motivated by the
desire to put customer focus at the heart of an organization. Customer-focused
organizations view customer satisfaction measurement as a means rather than an end as
part of a cycle of continuous improvement in service delivery, and as part of the wider
toolkit of customer insight techniques to monitor performance over time and measure the
impact of service improvement activity.

Customer satisfaction measurement allows an organization to understand the issues, or

key drivers that causes satisfaction or dissatisfaction with a service experience. When an
organization is able to understand how satisfied its customers are, and why, it can focus its

31
time and resources more effectively. Customer satisfaction measurement may also enable
an organization to understand the extent to which satisfaction with a service is influenced
by factors outside of its control (such as the media) and to differentiate between what
people say influences, how satisfied they are and what is rally driving their satisfaction
during a service experience. Customer satisfaction measurement can help an organization
understand what it can and cannot control. Most importantly, customer satisfaction
measurement helps an organization focus on its customers, and should galvanize service
owners, customer-facing staff, policy, strategy and research staff, as well as senior
management, around the aim of improving the customer experience .In the conditions of
marketing orientation in the company‟s work where the customer is in the focus of its
activity knowing the customers‟ needs is a must for an optimal combination and factors for
production and the strategy of marketing .Accomplishment of the economic aims in the
process of reproduction, represent high - grade satisfaction of particular customers‟ needs.

Consumers are subjects that purchase goods and services to satisfy their needs. The
consumer behavior derives from the decision whether, what, when, where and how to
purchase goods and services. Therefore, marketing is primarily interested in the behavior of
the subject as a consumer. Nowadays, it is normal to assume that marketing constantly
follows the consumer‟s needs as a basic assumption in the development of a suitable
strategy leading to the consumer‟s satisfaction. It should be taken into consideration that
needs are a social category changing all the time and are never satisfied. By setting a
suitable strategy based on qualitative information the marketers contribute to the
development of a loyal consumer‟s category that will lead to a realization of a general
strategy, survival and development of the company. Being familiar with the consumers‟
needs is of great importance to the company. Economic subjects accomplish their tasks in
the process of reproduction and thus satisfy certain needs. The consumers are the focus
activity of the company‟s marketing orientation, it is crucial to know the consumers‟ needs
in order to achieve an optimal combination of both: the production factors and the disposal
of products. Therefore the research of the of the consumers‟ needs and measure his
satisfaction is of a great significance. During the process of research, it is important for the
company to take into consideration these following components: A variety of needs occur
under the influence of certain factor combination. The company must consider these factors
when it establishes the extent of the consumer‟s needs, which is essential for its activities
on the market; needs are dynamic and they change due to the factors that influence them. It

32
means that the businesspersons have to adjust their activities on the market by constant
exploration of the factors together with its complexity and direction; and the market
division into segments, will be accurate only if the needs are identified; especially their
intensity, quality, duration, etc. The factors form the segments and they condition the
needs and the consumption. This approach should allow the company‟s marketing
program to adapt to the dynamics of the needs, which means a greater flexibility of
certain instruments depending directly on the factors that condition the needs.

Management and marketing theorists underscore the importance of customer satisfaction

for a business‟s success .some recent statistics demonstrate the benefits of good customer
satisfaction and the costs of poor customer satisfaction on businesses. Good customer
satisfaction has an effect on the profitability of nearly every business.

Customer satisfaction results can help to present the current standing of customer
satisfaction. This utilization often goes beyond reporting statistical data such as mean,
range, and standard deviation. These descriptive data can assist in identifying specific
strengths and weaknesses in satisfaction dimensions, the specific items under each, as well
as information about overall scores. However, different types of data analysis can be used
to identify not only aggregate but also individual information. From here emerges the
distinct patterns or gaps between different individuals, groups, or among particular items.
3.1.4 BENEFITS OF CUSTOMER SATISFACTION

 Increased Customer Loyalty

Satisfied customers are more likely to stay with the firm for a longer period, which
can significantly increase sales revenue and profitability over time
 A Strong Competitive Switching Barrier
Existing customers will be less interested in competitive offers
 Higher Amount of Average Purchases
The firms will generally gain greater share of customers‟ purchases in that product
category. Typically satisfied customers will increase their purchase quantity over time
 Increased Word-of-Mouth (WOM)
Satisfied customers are more likely to recommend the brand, product or firm to their
family, friends and social media connections

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 Lower Promotional Expenditure is Required
As a steady flow of new customers should be generated from word-of-mouth
referrals, reducing the need to generate new customers from various promotional
activities
 More Stable Sales Revenues (Cash Flows)
This occurs from the combination increased customer loyalty, the competitive
switching barrier and enhanced new product successes.
 Greater Success of New Products and Line Extensions
The firm will achieve greater success with new product launches, as generally they
can target existing satisfied customers with a significant degree of success. In fact,
many satisfied customers look forward to new products from the companies that
they like to deal with.
 Increased Opportunity for Product/Service Recovery
Service recovery refers to a firm (usually a service firm) being able to fix a
problem/complaint for a customer in order to keep the customer satisfied. This is
more likely to happen as satisfied customers are more likely to approach the firm
for a solution.
 Stronger Staff-Customer Relationships
Many service firms pursue strong customer relationships as a key part of their
marketing strategy. Clearly relationships are stronger and more productive when
working with satisfied customers.
 Reduced Price Sensitivity
Satisfied customers value the overall experience and product of the firm and are less
concerned with price in their overall assessment.

3.1.5 METHODS TO MEASURE CUSTOMER SATISFACTION

There are the following methods to measure customer satisfaction:
1. Direct Methods: Directly contacting customers and getting their valuable feedback
is very important. Following are some of the ways by which customers could be
directly tabbed:
I. Getting customer feedback through third party agencies. Direct marketing, in-house
call centers, complaint handling department could be treated as first point of contact
for getting customer feedback.
II. Getting customer feedback through face to face conversation or meeting.
III. Feedback through complaint or appreciation letter.

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IV. Direct customer feedback through surveys and questionnaire.

Organizations mostly employ external agencies to listen to their customers and provide
dedicated feedback to them. These factors needs to be sophisticated and in structured
format so that conclusive results could be fetched out. Face to face meetings and
complaint or appreciation letter engages immediate issues. The feedback received in this
is not uniformed as different types of customers are addressed with different domains of
questions. This hinders the analysis process to be performed accurately and consistently.
Hence the best way is to implement a proper survey which consists of uniformed
questionnaire to get customer feedback from well segmented customers. These feedback
received by the organization can be treated as one of the best way to measure customer
satisfaction.
2. Indirect Method: The major drawback of direct methods is that it turns out to be very
costly and requires a lot of pre-compiled preparations to implement. For getting the
valuable feedbacks the supplier totally depends on the customer due to which they
loses options and chances to take corrective measures at correct time. Hence there are
other following indirect methods of getting feedback regarding customer satisfaction.
 Customer Complaints: Customer‟s complaints are the issues and problems reported by
the customer to supplier with regards to any specific product or related service. These
complaints can be classified under different segments according to the severity and
department. If the complaints under a particular segment go high in a specific period
of time then the performance of the organization is degrading in that specific area or
segment. But if the complaints diminish in a specific period of time then that means
the organization is performing well and customer satisfaction level is also higher.
 Customer Loyalty: It is necessarily required for an organization to interact and
communicate with customer on regular basis to increase customer loyalty. In these
interactions and communication it is required to learn and determine all individual
customer needs and respond accordingly. A customer is said to be loyal if he revisits
supplier on regular basis for purchases. These loyal customers are the satisfied ones
and hence they are bounded with a relationship with the supplier. Hence by obtaining
the customer loyalty index, suppliers can indirectly measure customer satisfaction.

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3.1.6 FACTORS AFFECTING CUSTOMER SATISFACTION

Customer satisfaction is the overall impression of customer about the supplier and the
products and services delivered by the supplier. Following are the important factors that
could affect customer satisfaction:
• Department wise capability of the supplier.
• Technological and engineering or re-engineering aspects of products and services.
• Type and quality of response provided by the supplier.
• Supplier‟s capability to commit on deadliness and how efficiently they are met. 
Customer service provided by the supplier.
• Complaint management.
• Cost, quality, performance and efficiency of the product.
• Supplier‟s ability to manage whole customer life cycle.
• Compatible and hassle free functions and operations.
In a study done by Berry (Bart Allen) and Broader between 1990 defined ten "Quality
Values” which influences satisfaction behavior, further expanded by Berry in 2002 and
known as the ten domains of satisfaction. These ten domains of satisfaction include:

 Quality
 Value
 Timeliness
 Efficiency
 Ease of Access
 Environment
 Inter- departmental Teamwork
 Front line Service Behaviors
 Commitment to the Customer
 Innovation
These factors are emphasized for continuous improvement and organizational change
measurement and are most often utilized to develop the architecture measurement as on
integrated model. Work done by Parasuraman, Zerithal and Bery (Leonard) between 1985
to 1988 provided the basis for the measurement of customer‟s satisfaction with a service
by using the gap between the customer‟s expectation of performance and their perceived

36
experience of performance. This provides the measure with a satisfaction ”Gap” which is
objective and qualitative in nature. Work done by Eronin and Taylor propose the
”confirmation/disconfirmation” theory of combining the”Gap” described by Parasuraman,
Zenithal and Berry as two different measures(perception and expectation of performance)
into a single measurement of performance according to expectation.
American customer satisfaction Index (ACSI) is a scientific slandered of customer
satisfaction. Academic research has shown that the National ACSI score is a prediction of
Gross Domestic Product (GDP) Growth, and even predictor of consumption expenditure
(PCE) Growth. On the micro economical level, research have shown that ACSI data
predict stock market performance, both for market ideas and for individually traded
companies. Increasing ACSI scores has been shown to predict loyalty word of mouth
recommendation and purchase behavior. The ACSI measures customer satisfaction
annually for more than 200 companies in 43 countries and 10 economic sectors. In
addition to quarterly reports, the ACSI methodology can be applied to private and public
sectors CFI group, Inc. applies the methodology of ACSI off live, and foresee results
applies the ACSI to website and other online initiatives.
In spring 2004, Quad Stone commissioned a study of the large consumer enterprises are
taking to improve customer service experiences. The research mainly consisted of in depth
interview with executives in the financial services and telecommunications sectors, but it
also includes an email questionnaire with consumer and a ”mystery shopping”
investigation in to consumer sectors. The study finds that improving customer satisfaction
with services is a rapidly sizing corporate priority and companies are increasing
investment in tracking customer satisfaction and what drives it. While the majority of
companies are beginning to understand aggregate level trends in customer satisfaction,
only a few companies are able to systematically identify how to change service delivery
processes for the better yet this is what all of the interviewed companies most want to do.
3.1.7 WAYS TO MAXIMISE CUSTOMER SATISFACTION

Promotion or maximisation of customer satisfaction is possible and profitable by engaging

in certain activities namely, listening to the customer, giving attention and weight-age to
those factors in developing action plan, making organisation trust-worthy of a customer
and developing customer satisfaction corporate culture.
1. Listening to the Customer:

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Customer centric company is one whose base is the customer to whom there company is
to lend its ears whether the customer is complaining or compliment the performance of a
company. Complaints are rich source of information feedback which can be corrected.
The compliments help in further improving the performance. Hence, each company
should be a keen observer, using its eyes, ears and brain to gain than losing. A customer
complaint is a million dollar blessing in disguise.

2. Identify the Factors that are to be given Weightage in Formulating Action Plan:
A good marketing company identifies critical success factors which become the major
plants of marketing action plan. It may be innovation, quality improvement, pricing,
service and what not that count in making the action plan to yield rich dividends to the
users.
3. Making the Company Invest-Worthy:
The customer is the greatest asset who is kept at the top of the pyramid of the organisation
and other layers of efforts, talents, treasure and time one upon another. To make the
company trust worthy, it has to develop image in the heart of a customer. One satisfied
customer creates a class of satisfied customers. He has the trust because his expectations
and aspirations are not only met but excelled as compared to competitors. It is a matter of
building competitive advantage.
4. Developing a Customer Satisfaction as a Corporate Culture:
Each organisation is to strive hard to make customer satisfaction its work-culture. To
develop this corporate culture, there is need for whole hearted support from the top
management.

3.2 AN OVERVIEW OF EARLIER STUDIES

1. 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

38
 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 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.

2. 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.

39
3. 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 sharingsimilar 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.

4. Dorsch et a1, (2000) studied Consumer choice behaviour using the five-step process
(need-information search- evaluation of alternatives- purchase-post-purchase
evaluation) problem solving paradigm or through the progression of consumer choice
from a product class to brand choice.

5. Satisfaction is an outcome of purchase in which consumer compare cost and rewards

with the anticipated consequences (Maxham, 2001).

6. There is always a positive relationship between customer satisfaction and profit

maximization of an organization (Bowen & Chen, 2001).

7. 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
lowinvolvement 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.

40
8. Customer satisfaction is the perceived feeling of a customer for which he or she has set
standards if his expectations match with the standard he is satisfied (Eggert & Ulaga,
2002).
9. Marsha Peter (2002) 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.
10. Kotler, (2003) in his study stated that consumer surveys often reveal that quality is
one of the important, if not the most important decision factors for consumers and
product quality stands for the ability of a product to perform its functions.
11. Customer satisfaction with offices is resolved by specialized execution, as well as by
a many-sided set of trade procedures, for example, compelling correspondence and
administration of desires (Campbell & Finch, 2004).
12. Yooshik Yoon (2004) studied the effects of motivation and satisfaction on destination
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.
13. Dr. V.K.K Kaushik and Neeraj Kaushik (2005) in their study on Brand Preference
and Recommendations on Various Cars. The result of the study Hyundai and Maruti
dominates market of the region. Purchasing of car influenced by friends, family and
relatives rather than by dealer and sales persons. Most of the consumers are happy
with its performance, quality, sales service, dealer network and they are
recommending to others also. The primary determinant for buying cars in this region
based on brand name, fuel efficiency and price.
14. Karjaluoto et al. (2005) investigated the consumer choice in the context of the
mobile phone industry in Finland and the study was conducted to assess consumer
41
 motivations in mobile phone choice. Seven estimated factors influencing mobile phone
choice were: Innovative services, multimedia, design, brand and basic properties,
outside influence, price.
15. Sharma (2006) in her study pointed out the importance of celebrity endorsement in
advertisement and concluded that advertisers use endorsers to add excitement and
glamour to their brands. Basically, celebrity endorsements give a brand a touch of
glamour in the minds of people, and the hope that a famous face will provide added
appeal and name recognition in a crowded market.
16. From the point of view of Ching (et al 2008), the relationships between brand equity,
brand preference, and purchase intentions on international air passengers decisions in
Taiwan. The findings indicate positive relationships between brand equity, brand
preference, and purchase intentions with a moderation effect of switching cost

42
 affecting the relationship between brand equity and purchase intentions. More
specifically, the effect of brand equity on purchase intentions is not significant for
passengers with low switching costs.
17. Kyung Hoon (et al 2008), suggests his studies relating to Health care marketers face
unique challenges around the world, the role of the health care field plays in
contributing to public welfare. Hospital marketing in Korea is particularly challenging
since Korean law prohibits hospitals from running any advertising. As a result,
Korean hospitals depend heavily on customer relationship management (CRM). This
study identifies five factors that influence the creation of brand equity through
successful customer‟s relationships, trust, customer satisfaction, relationship
commitment, brand loyalty and brand awareness. An empirical test of the
relationships among these factors suggests that hospitals can be successful in creating
image and positive brand equity if they can manage their customer relationships well.
18. Dr V.K.Kaushik (2008) this study is conducted in South West Haryana which
consists of Bhiwani and Mahendragarh districts. The study endeavour is to investigate
empirically customer‟s preference towards a passenger car brand. Pre-purchase and
post-purchase behaviour of the customers were evaluated and factors influencing the
customers were determined by Perceptual mapping obtained from Multi-dimensional
scaling. Overall results indicate that in South West Haryana region customers are
more influenced by friends and relatives than dealers and salespersons. Maruti
dominates the market with three of its brands namely Maruti 800, Alto and Wagon-R.
Brand name, fuel efficiency and price were found to be primary determinants for
buying car in this region.
19. Chang et al (2009), the antecedents of brand equity are considered to be brand
attitude and brand image, and the consequences of brand equity are considered to be
brand preference and purchase intentions. This study concentrates on service brands,
selecting 18 from 3 service categories. A structural equation model is presented. Not
only does it show a good fit with the research constructs but also the relationships
between brand image and brand equity, and brand attitude and brand equity. The
impact of brand equity on customer preference and purchase intentions is confirmed
as well, which tends to validate the proposed research framework.
20. Kumar Gambhiraopet, Prashant Vidya Sagar Talluri (2010) this case study
focuses on the post-purchase behaviour of Tata Nano buyers. The post-purchase
perceptions, dissonance levels and moments of pride have been analysed with the help

43
 of primary data collected through video interviews conducted among 8 customers of
Tata Nano in Hyderabad, India, in mid January 2010. The case study runs in the
backdrop of the conceptualisation of the Tata Nano car and the roadblocks that cropped
up during its production. This case study primarily positioned to discuss the
dissonance levels in new products, offers valuable insights.
21. Dr. P. Natarajan & Thiripurasundari U. (2010), in their paper Brand Preference on
B Segment Maruti Cars, emphasized that strong brands quality increase trust in
intangible products enabling customers to better visualize and understand them. The
Brand Preference towards Maruti B Segment cars is studied by administering
structured interview schedule to150 customers in Puducherry city. Maruti should take
the initiative to introduce new models according to the choice of the customers at
regular intervals which will pave the way to be No.1 Company in India in the near
future. While the customer gets satisfaction and is able to improve his/her standard of
living and quality of life, the marketer profits from the brand experience that the
customer gets and is able to generate a surplus after ensuring satisfaction to the
consumer.
22. Customer satisfaction is an evaluation of difference between prior expectations about
product and its actual performance. Customer satisfaction is how customers react
towards the state of satisfaction, and how customers judge the satisfaction level
(Anderson, Nicholas & Hengbert, 2010).
23. No one is important than customers and their satisfaction is the ultimate objective
through improvement in services in terms of competitiveness and it saves future
revenue plus it becomes the cause of cost reduction in future (Yuan Hu,
ChingChan& Cheng, Hong, 2010).
24. There is a significant effect of customer satisfaction on the performance of business
and through customer satisfaction returns of shareholders can be increased and value
of any business can be maximized (O’sullivan, Mccalling, 2010).
25. Customer satisfaction is the reaction of customer toward state of the fulfillment and
judgment of customer about that fulfilled state (Khayyat & Heshmati, 2012).
26. Customer satisfaction is the expectation before consuming a product regarding quality
or it is a pre-consumption judgment or expectation (Bae, 2012).
27. Customer satisfaction have antecedent, mediated and moderated effect on personal
connections and enjoyable interactions (Robertson & Razzaque, 2013).

44
28. Prasanna Mohan Raj (2013) studied the factors influencing customers brand
preference of the economy segment SUV‟s and MUV‟s. Data collection was made
through direct interaction and customer intercept survey using questionnaire.
Descriptive analysis was used to transform data into understand format and factor
analysis was used for identification of factors influencing customer preference. In
light of study findings, the preference of a given brand can be explained in terms of
six factors namely Product reliability, monetary factor, trendy appeal, frequency of
nonprice promotions offered, trustworthiness and customer feeling or association
towards brand. There is need for marketers to take these factors into consideration
when crafting product innovations in the SUV segment of Automobile market.
29. Dr. A.T. Jaganathan, Mr. M. Mohanraj (2015) in their present to study the brand
preference of customers with regard to Hyundai. The result of this study reveals that
level of satisfaction and the overall performance of the Hyundai cars are good. The
study has suggested that the advertisers need to focus on their market assuming the
influence of the television advertisement in the Hyundai purchase behavior.
30. Dr. V. Suganthi (2016) study made an attempt to understand the factors influencing
buying decision of the customer. Most of the customers are satisfied with the Mileage
and fuel efficiency of the car and they preferred Maruti Suzuki Swift.
31. According to the American Customer Satisfaction Index (ACSI) there is a new
type of market based performance measure for firms, industries, economic sectors,
and national economies. The authors find customer satisfaction to be greater for goods
than for services and, in turn, greater for services than for government agencies, as
well as find cause for concern in the observation that customer satisfaction in the
United States is declining, primarily because of decreasing satisfaction with services.
The authors estimate the model for the seven major economic sectors for which data
are collected. Highlights of the findings include that (1)customization is more
important than reliability in determining customer satisfaction, (2) customer
expectations play a greater role in sectors in which variance in production and
consumption is relatively low, and (3) customer satisfaction is more quality-driven
than value- or price-driven. The authors conclude with a discussion of the
implications of ACSI for public policymakers, managers, consumers, and marketing
in general.

45
 3.3 UNIQUENESS OF RESEARCH STUDY

The objective of the study is to find out the satisfaction level of customers of Maruti
Suzuki,AVG MOTORS,Thiruvalla with an aim of gathering current customer feedback or
customer trends. Acquire insight into how customers are currently reacting. It helps in
analyzing the satisfaction of customers in their products. This study is mainly concerned
with the Marketing department of the Company.
Understanding and meeting customer‟s expectations and subsequently being different
from competitors are important in order to survive in the today world of globalization.
Due to dynamic environment and increasing services from competitors, it is must for
automobile industry to provide excellent service and focus on continuing improvement.

3.3.1 SIGNIFICANCE

The main purpose of the study is to understand the customer satisfaction and to know

the customers behaviour towards Maruti Suzuki ,AVG Motors. This study is needed to
find out the customer satisfaction towards the products and services of MARUTI SUZUKI
and its importance to customer as well as to company.
The main reasons why customer satisfaction is important are:
• It is a leading indicator of consumer repurchase intentions and loyalty.
• It reduces customer churn.
• It reduces negative word of mouth.
• It helps to retain customers and acquire new ones. Moreover, the study helps:
• To identify whether the customers are satisfied with the MARUTI SUZUKI cars.
• To know whether there is any difference in satisfaction based on the age of the
respondents.
• To know the customer satisfaction towards the after sales service offers by AVG
MOTORS.

3.3.2 RELEVANCE

• Up-to-date feedback.
• Self-learning.
• Deeper understanding of the subject.

46
• Finding out more important things connected to the topic of research.
• Understanding the media biases surrounding the subject (;if any).
• False claims around the subject (;if any).

47
 To form a stance on the subject and take sides.

48
 To find flaws in secondary sources.
 CHAPTER 4
METHODOLOGY OF THE STUDY

50
4.1 RESEARCH APPROACH AND DESIGN
The study is mainly based on exploratory research. Exploratory research is defined as a
research used to investigate a problem which is not clearly defined. It is conducted to
have a better understanding of the existing problem, but will not provide conclusive
results. For such a research, a researcher starts with a general idea and uses this research
as a medium to identify issues that can be the focus for future research. An important
aspect here is that the researcher should be willing to change his/her direction subject to
the revelation of new data or insight. Such a research is usually carried out when the
problem is at a preliminary stage. It is often referred to as grounded theory approach or
interpretive research as it used to answer questions like what, why and how.

4.2 SOURCES OF ONLINE DATA

PRIMARY DATA
Primary data are those data that are directly collected or which are first hand
data. Primary data are accurate and reliable and it was collected by online survey
from the
Customer‟s through questionnaire and also used structured questionnaire, this facilitated to
respondents to fill up with questionnaire in an easy and fast manner.
 Questionnaire
A set of printed or written questions with a choice of answers, devised for the purpose
of a survey or statistical study
 Google form
A web based application used to create forms for data collection purposes and it is used to
make surveys, quizzes, questionnaires or even registration sheets.

SECONDARY DATA
Secondary data is the information which is already available in published or unpublished
form. When the needed information is collected from the census of population available in
a library means then it is a secondary data. It is also used for collecting historical data. The
various sources of secondary data are such as:
 Company Profile.
 Company Websites.
 Journal Articles.

52
4.3 SAMPLING DESIGN
Sampling is a data gathering technique that is used as a survey methodology. Data is
collected from a subset of individuals from the entire statistical population, so as to
estimate the characteristics of the population based on the representation of the sample

4.3.1 POPUPLATION

The study population is the customers of MARUTI SUZUKI (AVG Motors Thiruvalla) .

4.3.2 SAMPLE SIZE

Sample size refers to the number of items to be selected from the universe to constitute a
sample. The Google forms are provided to 110 respondents and some of them have partly
filled while some of them haven‟t responded. So the sample size has been fixed as 100.

4.3.3 NON PROBABILITY SAMPLING

The sampling procedure is used in this study is Non-probability sampling, it is a sampling

technique where the odds of any member being selected for a sample cannot be
calculated.
It‟s the opposite of probability sampling, where you can calculate the odds. In addition,
probability sampling involves random selection, while non-probability sampling does
not– it relies on the subjective judgment of the researcher.

Judgment sampling also referred to as judgmental sampling or authoritative sampling is a

non-probability sampling technique where the researcher selects units to be sampled
based on his own existing knowledge, or his professional judgment. Non-probability
sampling is where the samples for a study are gathered in a process that does not give all
of the individuals in the population equal chances of being selected. Judgment sampling
can also be referred to as purposive sampling. This is because judgment sampling is used
in cases where the knowledge of an authority can select a more representative sample,
which can in turn yield more accurate results than if other non-probability sampling
techniques were used.

40
4.4 DATA ANALYSIS TOOLS

4.4.1 PERCENTAGE ANALYSIS

Percentage Analysis is applied to create a contingency table from the frequency

distribution and represent the collected data for better understanding.
After the data is collected, it is tabulated and edited accurately. Here percentage analysis
is applied for analyzing and interpreting the data

Percentage Analysis is used for the analysis of primary data . Percentage analysis refers to
a special kind of ratio. It is used in making comparison between two or more series of
data. In this research various percentage are identified in the analysis and they are
presented pictorially by way of bar or other diagrams in order to have a better quality.

Percentage of the respondents = No. of respondents/Total respondents x100

PRESENTATION TOOLS USED FOR DATA PRESENTATION TABLES TABLES

A table is a systematic and orderly arrangement of statistical data in rows and columns.

Rows are horizontal arrangement, whereas columns are the vertical arrangement

GRAPHS AND DIAGRAMS

One of the most convincing and applying way in which the data can be presented is
through charts. A chart can be in the shape of either diagram or a graph.

4.5 REPORT STRUCTURE

CHAPTER 1.INTRODUCTION – STATEMENT OF THE PROBLEM

Chapter 1 covers topics such as Background of the study, Statement of the problem,
relevance & Scope of the study and Objectives of the study.

CHAPTER 2.PROFILE OF AUTOMOBILE INDUSTRY

Chapter 2 covers topics such as Business Process of the industry, Market Demand &
Supply, contribution to GDP, Revenue generation, Level and types of competition, firms
operating in the industry, pricing strategies in the industry, prospects and challenges of the
industry and Key drivers of the industry.

CHAPTER 3.REVIEW OF LITERATURE

41
Chapter 3 covers topics such as Brief theoretical construct related to the problem, An
overview of earlier studies and Uniqueness of research study.

CHAPTER 4.METHODOLOGY OF THE STUDY

Chapter 4 covers topics such as Research approach and designs, Sources of online data,
Sampling design, Data analysis tools, Report structure and Limitations of the study.

CHAPTER 5.DATA ANALYSIS, INTERPRETATION & INFERENCE

Chapter 5 covers the Analysis, Interpretation and Inference of the data collected.

CHAPTER 6.FINDINGS OF THE STUDY

Chapter 6 includes the Findings of the study.

CHAPTER 7.CONCLUSIONS

Chapter 7 includes the Conclusion of the study.

4.6 LIMITATIONS OF THE STUDY

For anything there should be some limitations like that the present project also have
certain limitations. The following are some limitations what the researcher faced:
1. As a result of the COVID-19 pandemic, nor the primary data collection neither the
secondary data accessibility were not smooth enough.
2. The information provided by majority of the respondents could also be biased or
inaccurate. No independent verification of the data was possible.
3. Time is one major constraint, which limits the effective data collection.

4. Non-availability of data collection from all customers of AVG MOTORS.

5. The sample size is only 100 customers of AVG MOTORS so the sample may not be
truly representative of the total population.
6. Reliability and accuracy of the analysis depends on the respondents openness and
faithfulness towards each question in the questionnaire.

42
 CHAPTER 5
DATA ANALYSIS, INTERPRETATION & INFERENCE
5.1 GROUPS BASED ON GENDER
Table 1. Gender of Respondents

PARTICULARS NUMBER OF
RESPONDENTS PERCENTAGE

Male 78 78

Female 22 22

Transgender 0 0

TOTAL 100 100

45
Source: Survey Data Showing Gender of Respondents

0%

22%

Male
Female
Transgender

78%

Fig 5
INTERPRETATION
The above table and figure shows that out of 100 respondents from whom responses were
obtained, 78% are male , 22% are female and 0 trans genders. The percentage of male

respondents is much higher than that of female respondents.

5.2 GROUPS BASED ON AGE

Table 2.Age of Respondents

PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS

Less than or equal to 3 3%

20
21-30 44 44%
31-40 28 28%
41-50 13 13%

46
 51-60 8 8%
Above 60 4 4%

TOTAL 100 100%

Source: Survey Data Showing Age of

Respondents

4% 3%
8%
less than or equal to 20
13% 21-30
31-40
44%
41-50
51-60
above 60
28%

Fig
6
INTERPRETATION

From the above table and figure it is found that 3% of the respondents belong to the age
group of less than or equal to 20 years, 44% of respondents belong to the age group between
21-30 years, 28% of respondents belong to the age group between 31-40 years, 13% of
respondents belong to the age group 41-50 years,8% respondents belongs to 51-60 and the
rest of 4% belongs to the category above 60 years. Majority of the respondents belongs to the
age group between 21-30 years.

5.3 GROUPS BASED ON MARITAL STATUS

Table 3. Marital Status of Respondents

PARTICULARS PERCENTAGE
NUMBER OF
RESPONDENTS
Single 62 62%
Married 32 32%

47
 TOTAL 100 100%

Source: Survey Data

Marital Status of Respondents

38%

Single
Married

62%

Fig 7

INTERPRETATION

The above table and figure shows that out of 100 respondents, 62% of respondents are
unmarried and 32% of are married. Majority of the respondents are single.

5.4 GROUPS BASED ON QUALIFICATION

Table 4 Qualification of Respondents

PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS

48
 School Level 14 14%
UG 21 21%
PG 22 22%
Other 43 43%
TOTAL 100 100%
Source: Survey Data

Showing Qualification of Respondents

14%

School Level
43%
UG
21%
PG
Others

22%

Fig 8

INTERPRETATION

The above table and figure shows that out of 100 respondents,14% of the respondents are
schoo level, 21% of respondents are UG graduates, 22% of respondents are PG graduates and
43% of respondents are other graduates.

5..5 GROUPS BASED ON OCCUPATION

Table 5.Occupation of Respondents

PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS

49
 Private Sector 42 42%
Government Sector 15 15%
Business 8 8%
Self Employed 35 35%
TOTAL 100 100%
Source: Survey Data

Showing Occupation of Respondents

35%
Private
42%
Government
Business
Self employed

8%
15%

Fig 9

INTERPRETATION
The above table and figure shows that out of 100 respondents, 42% are private sector
employees, 15% of respondents works in government service, 8% of respondents have
business and 35% of respondents are self-employed.

5.6 GROUPS BASED ON ANUAL INCOME

Table 6.Annual income of Respondents

50
 PARTICULARS NUMBER OF
PERCENTAGE
RESPONDENTS
Less than or equal to 12 12%
100000
100001-200000 24 24%
200001-300000 31 31%
300001-400000 15 15%
400001-500000 10 10%
Above 500000 8 8%
TOTAL 100 100%
Source: Survey Data

Showing Annual income of Respondents

8% 12%
10%
Less than or equal to
100000
100001-
200000
200001-
24%
15% 300000
300001-
400000
400001-
500000
Above 500000

31%

Fig 10.

INTERPRETATION
The above table and figure shows that out of 100 respondents, annual income of 12% are up
to 100000, annual income of 24% of respondents lies between 100001-200000,annual
income of 31% of respondents lies between 200001-300000, , annual income of 15% of
respondents lies between 300001-400000,annual income of 10% of respondents lies
between 400001-500000 and 8% of the respondents have an annual income above 500000.

51
 5.7 GROUPS BASED ON OWNERS OF CAR MODELS

Table 7. Car Models of Respondents

NUMBER OF PERCENTAGE
PARTICULARS RESPONDENTS
Alto 30 30%
Swift 28 28%
WagonR 7 7%
Dzire 25 25%
Baleno 10 10%
TOTAL 100 100

Source: Survey Data

Showing Car Models of Respondents

10%

30% Alto
Swift
25%
WagonR
Dzire
Baleno
7%
28%

Fig 11

INTERPRETATION
The above table and figure shows that out of 100 respondents, 30% of respondents are Alto
owners, 28% of respondents are Swift owners, 7% of respondents are WagonR owners, 25%
of respondents are Dzire owners and 10% of respondents are Baleno owners.

52
5.8 GROUPS BASED ON CAR SATISFACTION

Table 8. Car Satisfaction of Respondents

PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS

Extremely Satisfied 30 30
Satisfied 39 39
Neutral 19 19
Not Satisfied 7 7
Not at all Satisfied 5 5
TOTAL 100 100

53
Source: Survey Data

Showing Car Satisfaction of Respondents

5%
7%

30%
Extremely Satisfied

19% Satisfied
Neutral
Not Satisfied
Not at all Satisfied

39%

Figure 12
INTERPRETATION
The above table and figure shows that out of 100 respondents, 30% of respondents are
extremely satisfied, 39% of respondents are satisfied, 19% of respondents are of neutral
opinion, 7% of respondents are not satisfied and 5% are not at all satisfied.

5.9 GROUPS BASED ON SHOWROOM EXPERIENCE

Table 9. Showroom Experience of Respondents
PARTICULARS NUMBER OF PERCENTAGE
RESPONDENTS
Extremely Satisfied 41 41
Satisfied 35 35
Neutral 20 20
Not Satisfied 3 3
Not at all Satisfied 1 1

54
 TOTAL 100 100
Source: Survey Data

Showing Showroom Experience of Respondents

1%

3%

20%
Extremely Satisfied
41% Slightly Satisfied
Neutral
Slightly Dissatisfied
Extremely Dissatisfied

35%

Fig 13

INTERPRETATION

The above table and figure shows that out of 100 respondents, 41% of respondents are
extremely satisfied, 35% of respondents are slightly satisfied, 20% of respondents are neutral
opinion, 3% of respondents are slightly dissatisfied and 1% are extremely dissatisfied.

5.10 GROUPS BASED ON AFTER-SALES SERVICE SATISFACTION

Table 10. After-Sales Service Satisfaction of Respondents

NUMBER OF PERCENTAGE
PARTICULARS RESPONDENTS

Extremely Satisfied 37 37%

Satisfied 29 29%

55
 Neutral 20 20%
Not Satisfied 11 11%
Not at all Satisfied 3 3%
TOTAL 100 100%
Source: Survey Data

Showing After-Sales Service Satisfaction of Respondents

3%
11%

37% Extremely Satisfied

Satisfied
20% Neutral
Not Satisfied
Not at all Satisfied

29%

Fig 14

INTERPRETATION

From above out of 100 respondents, 37% are extremely satisfied, 29% are satisfied, 20% are
of neutral opinion, 11% are not satisfied and 3% are not at all satisfied

5.11 GROUPS BASED ON SERVICE QUALITY SATISFACTION

Table 11. Service Quality Satisfaction of Respondents

PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS

Extremely Satisfied 35 35

56
 Satisfied 40 40
Neutral 15 15
Not Satisfied 8 8
Not at all Satisfied 2 2
TOTAL 100 100
Source: Survey Data

Showing Service Quality Satisfaction of

Respondents

2%

8%

15% 35% Extremely Satisfied

Satisfied
Neutral
Not Satisfied
Not at all Satisfied

40%

Fig 15

INTERPRETATION

From above out of 100 respondents, 35% are extremely satisfied, 40% are satisfied,
15% are of neutral opinion, 8% are not satisfied and 2% are not at all satisfied.

57
58
5.13 GROUPS BASED ON FACTORS INLUENCING CAR PURCHASE
Table 13. Factors Influencing Car Purchase of Respondents
PARTICULARS NUMBER OF
PERCENTAGE
RESPONDENTS
Price 34 34%
Comfort 6 6%
Engine 8 8%
performance
Brand Name 5 5%
Resale Value 8 8%
Advertisement 2 2%
Fuel Efficiency 17 17%
Maintenance 12 12%
Availability of 8 8%
Accessories
TOTAL 100 100%

59
Source: Survey Data

Showing Factors Influencing Car Purchase of Respondents

Price
8% Comfort
12% Engine performance
34% Brand Name
Resale Value
17% Advertisement
Fuel Efficiency
6% Maintenance
8% Availability of Accessories
2% 5% 8%

Fig 17

INTERPRETATION

From the above table and figure it is found that majority of the respondents choose price as
their most influencing factor 34%,6% of respondents choose comfort as a factor,8% of
respondents choose engine performance,5% choose brand name,8% choose resale value,2%
choose advertisement,17% choose fuel efficiency,12% choose maintenance cost as a factor
and the rest 8% of respondents choose availability of accessories as an influencing factor in
purchase of a car.

5.14.1 GROUPS BASED ON PRICE SATISFACTION

Table 14.Price Satisfaction of Respondents

PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS

Extremely Satisfied 35 35%

Satisfied 25 25%
Neutral 10 10%
Not Satisfied 23 23%
Not at all Satisfied 7 7%
TOTAL 100 100%

60
Source: Survey Data

Showing Price Satisfaction of Respondents

7%

35% Extremely Satisfied

23%
Satisfied
Neutral
Not Satisfied
Not at all Satisfied
10%

25%

Fig 18

INTERPRETATION

From above out of 100 respondents, 35% are extremely satisfied, 25% are Satisfied, 10% are
of neutral opinion, 23% are Not Satisfied and 7% are Not at all Satisfied.

5.14.2 GROUPS BASED ON COMFORT

Table 15. Comfort of Respondents

PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS

Extremely Satisfied 39 39%

Satisfied 21 21%
Neutral 20 20%
Not Satisfied 14 14%
Not at all Satisfied 6 6%

61
 TOTAL 100 100%
Source: Survey Data

Showing Comfort of Respondents

6%

14%
Extremely Satisfied
39%
Satisfied
Neutral
Not Satisfied
20%
Not at all Satisfied

21%

Fig.19

INTERPRETATION

From above out of 100 respondents, 39% are extremely satisfied, 21% are Satisfied, 20% are
of neutral opinion, 14% are Not Satisfied and 6% are Not at all Satisfied.

5.14.3 GROUPS BASED ON ENGINE PERFORMANCE SATISFACTION

Table 16. Engine Performance Satisfaction of Respondents

PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS

Extremely Satisfied 30 30%

Satisfied 26 26%
Neutral 14 14%
Not Satisfied 17 17%

62
 Not at all Satisfied 13 13%
TOTAL 100 100%
Source: Survey Data

Showing Power Satisfaction of Respondents

13%

30%
Extremely Satisfied
17% Satisfied
Neutral
Not Satisfied
Not at all Satisfied

14%
26%

Fig.20

INTERPRETATION

From above out of 100 respondents, 30% are extremely satisfied, 26% are Satisfied, 14% are
of neutral opinion, 17% are Not Satisfied and 13% are Not at all Satisfied.

5.14.4 GROUPS BASED ON FUEL EFFICIENCY SATISFACTION

Table 17. Fuel Efficiency Satisfaction of Respondents

NUMBER OF
PARTICULARS PERCENTAGE
RESPONDENTS
Extremely Satisfied 25 25%
Satisfied 20 20%

63
 Neutral 15 15%
Not Satisfied 21 21%
Not at all Satisfied 19 19%
TOTAL 100 100%
Source: Survey Data

Showing Fuel Efficiency Satisfaction of Respondents

30

25
25
21
20
20 19

15
15
Fuel Efficiency

10

0
Extremely Satisfied Neutral Not Satisfied Not at all
Satisfied Satisfied

Fig 21

INTERPRETATION

From above out of 100 respondents, 25% are extremely satisfied, 20% are satisfied, 15% are
of neutral opinion, 21% are not satisfied and 19% are not at all satisfied.

5.14.5 GROUPS BASED ON MAINTENANCE COST SATISFACTION

Table 18. Maintenance Cost Satisfaction of Respondents

PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS

Extremely Satisfied 30 30%

64
 Satisfied 29 29%
Neutral 11 11%
Not Satisfied 17 17%
Not at all Satisfied 13 13%
TOTAL 100 100%
Source: Survey Data

Showing Maintenance Cost Satisfaction of Respondents

13%

30%
Extremely Satisfied

17% Satisfied
Neutral
Not Satisfied
Not at all Satisfied
11%

29%

Fig 22

INTERPRETATION

From above out of 100 respondents, 30% are extremely satisfied, 29% are satisfied, 11% are
of neutral opinion, 17% are not satisfied and 13% are not at all satisfied.

5.14.6 GROUPS BASED ON DRIVING EASE

Table 19.Driving Ease Satisfaction of Respondents

65
 PARTICULARS
NUMBER OF PERCENTAGE
RESPONDENTS

Extremely Satisfied 25 25%

Satisfied 20 20%
Neutral 15 15%
Not Satisfied 21 21%
Not at all Satisfied 19 19%
TOTAL 100 100%
Source: Survey Data

Showing Driving Ease Satisfaction of Respondents

Not at all Satisfied

Not Satisfied

Neutral
Driving Ease

Satisfied

Extremely Satisfied

0 5 10 15 20 25 30

Fig 23

INTERPRETATION

From above out of 100 respondents, 45% are extremely satisfied, 40% are satisfied,
3% are of neutral opinion, 7% are not satisfied and 5% are not at all satisfied.

66
5.14.7 GROUPS BASED ON AVAILABILITY OF ACCECORIES.

Table 20. Accessory Availability Satisfaction of Respondents

NUMBER OF PERCENTAGE
PARTICULARS RESPONDENTS

Extremely Satisfied 36 36%

Satisfied 28 28%
Neutral 15 15%
Not Satisfied 12 12%
Not at all Satisfied 9 9%
TOTAL 100 100
Source: Survey Data

Showing Accessory Availability Satisfaction of Respondents

Not at all Satisfied

Not Satisfied

Neutral
Accessory Availability

Satisfied

Extremely Satisfied

0 10 20 30 40

Fig 24

INTERPRETATION

From above out of 100 respondents, 36% are extremely satisfied, 28% are satisfied, 15% are
of neutral opinion, 12% are not satisfied and 9% are not at all satisfied.

67
5.15 GROUPS BASED ON SOURCE OF FINANCE OF CAR

Table 21. Source of Finance of Car of Respondents

SL.NO. NUMBER OF PERCENTAGE

PARTICULARS RESPONDENTS

1 Own Resource 31 31%

2 Bank Loan 43 43%
3 Company Loan 24 24%
4 Any Other 2 2%
TOTAL 100 100%

68
Source: Survey Data

Showing Source of Finance of Car of Respondents

2%

24%
31%
Own Resource
Bank Loan
Company Loan
Any Other

43%

Fig 25.

INTERPRETATION
The above table and figure shows that out of 100 respondents, 31% of respondents are of
Own Resource, 43% of respondents are Bank Loan, 24% of respondents are Company Loan
and 2% of respondents is any others.

5.16 GROUPS BASED ON RECOMMENDTION OF AVG MOTORS

Table 22. Recommendation of AVG Motors by Respondents

SL.NO PARTICULARS NUMBER OF PERCENTAGE

RESPONDENTS
1 Highly recommend 32 32%
2 Recommend 41 41%
3 Neutral 17 17%
4 Not recommend 8 8%
5 Not at all recommend 2 2%
TOTAL 100 100%
69
Source: Survey Data

Showing Recommendation of AVG Motors by Respondents

2%

8%

32% Highly recommend

17%
Recommend
Neutral
Not recommend
Not at all recommend

41%

Fig 26

INTERPRETATION

From above out of 100 respondents, 32% highly recommend AVG Motors, 41% recommend,
17% are of neutral opinion, 8% are not recommend and 2% are Not at all recommend AVG
Motors.

70
 CHAPTER 6
FINDINGS OF THE STUDY
6.1 FINDINGS OF THE STUDY

 Majority of the respondents are male.

 Majority of the respondents are belonging to the age group of 21-30 years of age.
 Majority of the respondents are single.
 Majority of the respondents are neither UG or PG graduates and most of the
respondents are UG or PG graduates
 Majority of the respondents are working in private sector.
 Majority of the respondents have an annual income in between 200001-300000  The

most owned car model is Alto, closely followed by Swift at second place.
 This study reveals that most of the customers are satisfied with Maruti Suzuki cars.

 Customers are satisfied with showroom experience and after-sales service that are
provided by the company.

 Majority of the employees are satisfied with employees behavior of the company.

 The study reveals that price is one of the most important factor considered when
buying a car and the second most factor is fuel efficiency.

 Majority of the respondents are satisfied with price of the car.

 Most of the respondents are satisfied with the comfort of the car.

 Most of the respondents are satisfied with the engine performance of the car.

 Majority of the customers are satisfied with the fuel efficiency of the car.

 Most of the respondents are satisfied with the maintenance cost of the car.

 From the study it shows that most of the respondents are satisfied with driving
easiness of the car.

 Study releaves that majority of the customers are satisfied with the accessory
availability of the car.
 Most of the customers are preferring Maruti Suzuki car because of it‟s price, comfort
and maintenance cost features.
 From the study, we can understand most of the customers are using cars by availing
bank loans.
 Most of the customers are recommending AVG Motors
to others.

72
 CHAPTER 7

CONCLUSIONS

CONCLUSIONS
From the findings and analysis it is clear that Maruti Susuki Car is highly preferred
when compared to the other brands of car in the same segment. With the analysis
through the survey conducted using Google form on the consumer satisfaction of
Maruti Suzuki Cars at AVG MOTORS Thiruvalla, the findings and analysis shows that
majority of the consumer is happy with the product performance and also after sale
service and rest of them says that they are dissatisfied. Most of the customers are
preferring Maruti Suzuki car because of it‟s price, comfort and maintenance cost
features.

Quality of the service plays a very important role in making the company a market
leader.Since each customer is like an asset for an organization the company should try
to improve in the area of dissatisfaction.
We know that getting new customer is double the cost of retaining the old customer so
the company should focus on retaining the old customers whom a in the future
purchase the product or recommend others to purchase the product. Thus they help

directly or indirectly for the product sale.

74
 BIBLIOGRAPHY

BOOKS

• Anderson et. Al. (1997) Customer Satisfaction, Productivity and Profitability:

Difference between goods and services. Marketing sciences. (pp. 129-145).
• Kothari, C.R Research Methodology, 3rd edition, 1997, Vikas Publishing House Pvt.
Ltd., New Delhi.
• Kotler, Philip Marketing Management, 15th edition, 2017, Pearson Education.

WEBSITES

• www.marutisuzuki.com
• www.avgmotors.com
• www.wikipedia.edu.in

75
 ANNEXURES

QUESTIONNAIRE USED IN GOOGLE FORM

Sir/Madam

Thank you for participating in the survey project titled “Customer Satisfaction
towards Maruti Suzuki cars special reference to AVG Motors ” as part of my MBA
course. I kindly request you to fill the questionnaire, which forms a part of my
comprehensive project report. The information provided by you will be used only for
the purpose of this project.

For the Following Statements, Please Tick an Appropriate Choice.

1. Gender

a) Male b) Female c) Transgender

2. Age

a) Less than or equal to 20

b) 21-30
c) 31-40
d) 41-50
e) 51-60
f) Above 60

3. Marital Status

a) Married b) Single
4. Qualification

a) School level b) UG c) PG

d) Others

76
5. Occupation

a) Private Sector b) Government sector c) Business

d) Self Employed

6. Annual Income

a) Less than or equal to 100000

b) 100001-200000
c) 200001-300000
d) 300001-400000
e) 400001-500000
f) Above 500000

7. Which model of Maruti Suzuki car do you own?

a) Alto b) Swift c) WagonR

d) Dzire e) Baleno
8. Are you satisfied with your car?

a) Extremely Satisfied b) Satisfied c) Neutral

d) Not Satisfied e) Not at all Satisfied

9. How do you feel the experience at the showroom?

a) Extremely Satisfied b) Satisfied c) Neutral

d) Not Satisfied e) Not at all Satisfied

10. Are you satisfied company‟s after sales service?

a) Extremely Satisfied b) Satisfied c) Neutral

77
 d) Not Satisfied e) Not at all Satisfied Neutral
11. How satisfied are you with the quality of the service?

a) Extremely Satisfied b) Satisfied c)

d) Not Satisfied e) Not at all Satisfied

78
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