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

Customer Satisfaction After Sales &
Service.

INTRODUCTION TO PROJECT REPORT

Customer satisfaction is related to the human activity directed at satisfying human
wants through the exchange of goods and service.

Satisfying the customers occupies a most important position in business management.
Customer satisfaction plays a crucial and critical role as it deals with customers and
their needs. The major task of organization is to satisfy customers by meeting their
needs and wants.
The essence of organization is the customer and not the product shall be the heart of
the entire business system. It emphasizes on customer oriented business. Policies and
programs, which are formulated to serve efficiently the customer demand.
“Satisfaction of a customer is so basic that it cannot be considered as a separate
function. It is the way whole business seen from the point of view of its final results
i.e., from the customer’s point of view”.
A consumer is the king and has the right to choose from a large variety of offering.
He is the main person around which all business evolves. Today market is a more
customer oriented in the sense all the business operations revolve around satisfying
the customer by meeting their needs through effective service.

Thus, business is often dynamic, challenging and rewarding. It can also be frustrating
and even disappointing but never dull. The topic “Customer satisfaction after Sales &
Service” is chosen to study the service provided by Arpita Bajaj who are the dealers
of Bajaj Motors in the city of Hassan. This project deals with how Arpita Bajaj
defines its consumer and uses its resources in the best way to attract and satisfy their
needs and wants competitively and profitably. Here satisfying customers limited only
till the service is provided after the sales, but they include all functions necessary to
satisfy the customer such as financing, after sales services, etc.

H.R .Institute of Higher Education, Hassan 1

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PROBLEM STATEMENT

The Arpita Bajaj is one of the leading Bajaj two wheeler outlet in Hassan district. It
was established in the year 2000, & its delivering to the customers in and around
Hassan & its neighboring districts. For the past 10yrs it’s been into the active in
promoting two wheeler products but in the recent past since 2008 the sales of two
wheelers was dismal due the dissatisfaction among large group of customers due to
deteriorating in the quality of after sales service.

Hence the management has felt the need to conduct through analysis about the
existing effectiveness of after sales service & its impact on the organization overall
sales performance. Hence the management had realized the need to conduct the result
oriented analysis through the management trainees. I was glad to accept this
assignment from the organization perspective & as a part of MBA curriculum.

“Customer satisfaction after sales & service” is the important statement of the
problem in this project.

OBJECTIVES OF THE STUDY

• To know the after sales service perception of customers

• To ascertain the satisfaction level & its influencers

• To measure the impact of the above analysis on future sales

• To study the whether satisfied with their service.


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NEED FOR THE STUDY

Customer is one for whom you satisfy a want or need in return for some of payment.
The payment may be money, may be time, or may be goodwill but there is some form
of payment. Satisfaction is the level of person felt state by comparing products
perceived in relation to the person’s expectations.

Satisfaction level is function of the difference between perceived performance and
expectations. If the performance falls short of expectations, the customer is not
satisfied. If the performance matches the expectations the customer’s are highly
satisfied. If the performance is beyond his expectations the customer is thrilled.

Customer satisfaction is customer’s positive or negative feeling about the value that
was perceived as a result of using particular organization’s offering in specific used
reaction to a series of use situation experience. According to peter F. Ducker, the
purpose of business is to create and then retain a satisfied customer. A society
supports business because they serve its member’s by catering to their needs and
leave them satisfied. If the business dissatisfied its customer’s and not only these
customers stop availing service , but society at large will condemn the firm and may
even penalize it to the point of its extinction.

SCOPE OF THE STUDY:

• The study is limited to the customer of Bajaj vehicle buyers. The customer
includes customers who enter the show room.
• This study will help us to understand customers, preference and their needs
expected from the business owners. This study will not only help me as a
student but it also assists Arpita Bajaj to improve their service standard.


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RESEARCH DESIGN
1. Research is an art of scientific investigation.

2. Research is a process of systematic study.

3. Research is a search of knowledge.

4. Research is an area of investigation which includes collection, analysis and
Interpretation of data.

Research has to proceed systematically in the already planned direction with the help
of a number of steps in sequence. To make the research systemized the researcher has
to adopt certain methods. The method adopted by the researcher for completing the
project is called Research Methodology.

A Research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure.

A Research is purely and simply the framework and plan for the study that guides the
collection and analysis of data. It is a blue print that is followed in completing a study.

Types of Research Design

1. Exploratory research design.

2. Descriptive research design.

3. Experimental research design.


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Data Collection Method

Data refers to information or facts. It not only refers to numerical figures but also
includes descriptive facts. The method of data collection includes two types of study,
such as primary data and secondary data.

Primary Data Collection Method

It was collected directly from executives and customers. The information collected
from executives through personal and direct interview to collect primary data, a detail
and structured questionnaire was formed to suit the objectives of the study which
contain definite and predetermined questions, containing information relating to sales
and service and its products.
Primary data is the data that is collected for the first time by the researcher. The
Primary data are collected with specific set of objective to assess the current status of
any variable studied. Primary data is useful only for particular period.

Methods of Primary Data Collection

The Main four methods used in primary data collection are:

a. Questionnaire

b. Schedule

c. Interview

d. Observation

In this study questionnaire method have been used


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QUESTIONNAIRE:

In this method, pre printed list of questions arranged in a sequence which is used by
the researcher for collecting data.
The questionnaire is filled by the respondents. The questionnaire is considered as the
heart of the survey.

Secondary data:-

It was used mainly to support the primary data. Secondary data was collected through
books, annual reports, significant, literature from the organization and previous
reports, magazines, vouchers etc.

Research Design Tool:-

To make research various surveys are conducted they are as follows:

The various data are collected from primary and secondary source through the
questionnaires; books, journals, old reports and annual report were used.

Sampling Scheme:-

A sample is a portion of the whole on which the study is based. Here a sample size of
100 respondents were chosen from different areas of Hssan, and the questionnaires
were duly filled data relating to the objectives of the study is obtained by meeting
customers, consumers, in area like Hassan town.

Sampling Design
A Sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure that the researcher would adopt in selecting
items for the sample. Sample design may as well lay down the number of items to be


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including in the sample i.e., the size of the sample. Sample design is determined
before data are collected.

SAMPLE PROCEDURE

Sampling is a procedure by which the respondents are selected. There are basically
two types of sampling methods are:

1. Probability sampling methods.

2. Non-Probability sampling methods.

In this study area sampling method was adopted (Probability Sampling) the required
number of customers were not selected according to area sampling procedure but the
required number of sample (sample size) 100 were selected.

LIMITATIONS OF THE STUDY:

 The responses given by the respondents may not be true.

 The respondents may be careless in responding to the questionnaire.

 The respondents may be illiterate.

 This study limits to the geographical area of Hassan.


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2.1 INDUSTRY PROFILE

2.1.1 HISTORY OF TWO- WHEELER

The Encyclopedia describes a motorcycle as a bicycle propelled by an
internal-combustion engine (or, less often, by an electric engine).
The motors on minibikes, scooters, and mopeds, are usually air-cooled and
range from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement, the multiple-
cylinder motorcycles have displacements of more than 1,300 cubic cm.

The automobile was the reply to the 19th-century dream of self-propelling the
horse-drawn carriage. Similarly, the invention of the motorcycle created the self-
propelled bicycle. The first commercial design was a three-wheeler built by Edward
Butler in Great Britain in 1884. This employed a horizontal single-cylinder gasoline
engine mounted between two steer able front wheels and connected by a drive chain
to the rear wheel.

The 1900s saw the conversion of many bicycles, or pedal cycles by adding
small, centrally mounted spark ignition engines. There was then felt the need for
reliable constructions. This led to road trial tests and competition between
manufacturers. Tourist Trophy (TT) races were held on the Isle of Man in 1907 as
reliability or endurance races. Such were the proving ground for many new ideas from
early two-stroke-cycle designs to supercharged, multivalent engines mounted on
aerodynamic, carbon fiber reinforced bodywork.

The two-wheeler industry today has a significant role in the Indian Economy.
With an annual turnover of Rs. 6,200 crores and a compounded average growth of 10
per -cent in the recent years, it is one if the few industrial sectors in the growth phase

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today. The reasons for this are not far to seek. The consumer’s who wants to be
mobile today considers personal transportation as one of his basic needs.

In India, the two-wheeler is used in variety of purposes, particularly in urban areas
communicating to work, visiting people, carrying loads, outdoors jobs like selling and

the like. In rural areas, it enables people to travel more frequently to nearby towns for
their daily needs. In other words, it has also become a valuable support for increasing
productivity and profits, besides helping personal transportation.

The year 1997 was a difficult period for the automobile sector with the major
sector with major player hit by the recession. However, two- wheelers came through
un- scratched with a modest three per cent growth. One of the primary reasons for this
has been the robust growth of the rural market. A series of good monsoons and high
prices for agricultural commodities have increased the purchasing power of rural
customers. Today, the rural market of over six lakhs Indian villages contributes 35
percent to total two wheeler sales.

2.1.2 THE TWO-WHEELER INDUSTRY BASICALLY
COMPRISES

2.1.2.1 MOTOR CYCLES
The motorcycles segment grew by 28% in terms of sales in 1995, which is
remarkable by all standards.
In the 1980’s the only available motorcycles in the Indian market were the
conventional indigenously build Rajdoot, Bullet and Yezdi. This changed drastically
when Japanese introduced their motorcycle in Indian market. The superior styling and
better ergonomics led to increase in the market share.

2.1.2.2 SCOOTERS
In 94 - 95 the scooter segment accounted for 46 - 80% of two wheeler
industries crossed the one million mark. As such the scooters segment has grown by
34% - 37%, which is one of the segment achievements of industry.

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The most important contribution to the segment is Baja Auto with an installed
capacity of 12.72-lakh scooters per annum. In act the company is the largest
manufacture of two-wheeler in the country and fourth largest in world. Other

Companies, which involve in manufacturing scooter are LML with a capacity if
20,000 scooter per annum and Kinetic Honda.
In both the companies (LML Limited and Kinetic Honda) foreign partners enjoyed a
majority stake.

2.1.2. 3. MOPEDS

In 1972 Indian customers was introduced to the models of two-wheeler, which
was popularly known as Mopeds. The segment was dominated by Luna, which
become virtually to generic name for mopeds and come to be identified with lower
middles class people of the country because it was the cheapest available two wheeler
with maximum offered mopeds are for this smallest chunk in the Industry.

However this segment has failed to grow especially compared to Motorcycles and
Scooters. During the 1980,s mopeds are quite popular in first half of the 1980’s, the
scooters showed a phenomenal growth of 65% during 1980 – 85. During 1994
mopeds registered a growth of just 13% Kinetic Engineering is one of the leading
producers of mopeds in India.

A major part of growth on the two wheeler industry has come from Motorcycles
especially the Indo – Japanese 100 CC motorcycles which are considered fuel
efficient, reliable and suited for rough roads. Scooterettes are also growing at a fast
pace and are being increasingly perceived as a better option providing convenience
and modern style, by urban customers. In this category, TVS Scooty holds a dominant
market share. TVS Scooty, launched in 1994, with its elegant looks has definitely
spurred the growth of this segment. The two-wheeler industry has come a long way
from a modest production of 150 units in 1950 to three million units per year in 1998.

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2.1.2.4 PROMISING FUTURE

The future out look for the industry looks promising. Rising income levels in both
urban and rural markets will ensure a rising market for the two-wheeler,
considered a basic need.

Most of the leading players such as TVS, Hero Honda and Bajaj Auto gearing up
to strengthen their presence in this segment with a range of new products that will
address the needs of specific consumer demand. Today customer preferences are
driving the industry. Reliability, modern styling and economy are demanded by
the mass segment while convenience the important features for the emerging
segment the power and pleasure of riding a two wheeler as well. The
manufacturers are responding to these customers needs with the introduction of
new models and modifying existing models.

The next few years will see a flood of new vehicles from various manufactures.
These vehicles will only have not only have to improved aesthetics and comfort
but also be environmental friendly.

The motorcycle segment will also see many new models introductions from
TVS, Hero Honda, and Bajaj. The market will see higher capacity vehicles in the
125 CC to 175 cc range compared to the predominantly 100 CC motorcycles sold
now. The two-wheeler industry is geared up and going full steam ahead into the
next century.


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1990 – 91

CHANGING PROFILE OF TWO
WHEELRS INDUSRTY

26%

50% Scooters
Mopeds
Motorcycles
24%

1997 – 98


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37% Scooters
39%
Mopeds

Motorcycles

20%

2.2 COMPANY PROFILE

AN EYE SIGHT ON BAJAJ AUTO LIMITED

2.2.1 INTRODUCTION

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The Bajaj group came into existence during the turmoil and the heady
exploria of Indian’s freedoms struggle. Jamanlal Bajaj, founder of the Bajaj group,
was a confident and disciple of Mahatma Gandhiji and was deeply involved in the
effort for freedom. The integrity, dedication, resourcefulness and determination to
succeed which are characteristic of the company today, are often traced back to its
birth during those long days of relentless devotion to a common cause.

Kamalnayan, the eldest son of Jamanlal Bajaj, succeeded his father in 1942, at the
age of twenty seven. Putting the nation before business, be devoted himself to the
latter only after India achieved independence in 1947. But when be did so, he put his
heart and soil into it. Within a short while, he not only consolidated the group, but
also diversified into various manufacturing activities, elevating the group to the status
it enjoys till this day.

Rahul Bajaj heads the group. He has been the chairman of Bajaj since 1968is
recognized as one of the most out standing business leaders in India. As dynamic and
ambitions as his illustrious predecessors, he has been recognized for his achievements
at various national and international forums.

Bajaj is currently India’s largest two and three wheeler manufacturer and one of the
biggest in the world. Bajaj has the long left behind its annual turnover of Rs. 72
million (1968), to currently register an impressive figure of Rs 42.16 billion (US$ 936
million).

2.2.1.2 CONSUMER AWARENESS ENRICHMENT TIPS

To keep your vehicle up to date, few maintenance tips are as follows,

 Pre delivery checks.

 Tips on using a new vehicle.

 Washing tips.

 Ideal maintenance schedule.


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 Daily checks.

 Free service checks.

 Regular service checks.

 Pollution control.

2.2.1.3 PRE DELIVERY CHECKS
Following are the general guidelines you should follow

While selecting a vehicle.

 Check for smooth operation of fuel coak lever and accelerator.

 Check engine idling and get it adjusted.

 Check gear shifting and clutch lever for proper.

 Adjustment and Working.

 Check whether switches, speedometer and fuel meter

 Operations for satisfactory working.


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 Check steering cum ignition lock and other locks e.g.

 Luggage box, toolbox etc for proper working.

 Check front and rear brakes for effective working.

 Test drives the vehicle; see if any past is making an unwanted noise.

2.2.1.4 TIPS ON USING A NEW VEHICLE

 Do not cross the 40 Kmph limit (up to 500Km) to Kmph (up to 200 Km)
 Do not race the engine too much.
 Do not start moving or racing the engine immediately after starting.

Keep the engine during a few minutes to let the flow to all the engine parts.

 Do not run the engine at constant speed for along time.
Vary the speed from time to time.
 Follow the specific instructions given in owner’s manual it dry with a
Clean cloth.
 Dry the vehicle and oil it.


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2.2.1.5 FREE SERVICE CHECKS

 Ensure that you get the following checks done in your free service.

 Oil change – The oil level should be between the maximum and

Minimum level

 Air filters cleaning.

 Spark plug cleaning and setting.

 Fuel filters cleaning.

 Engine, silencer decarburization

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 Tightening and adjustments of all major bolts / nuts,

Control cables.

2.2.1.6 POLLUTION CONTROL

Important tips to keep the emission low.

 Keep the sparkplug clean and maintain specified gap

Between electrodes.

 Keep the air filter clean.

 Get the carburetor tuned at an authorized service centre.

 Avoid use of excess oil in fuel.


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 Avoid use of adulterated fuel.

 Check the emission level once in 3 months and get the

Engine tuned if it is above the prescribed limit.

 Use the correct percentage of 2T oil.

2.2.1.7 NON USE MAINTENANCE

 Keep the vehicle thoroughly.

 Empty the fuel tank.

 Start the Engine, consume the fuel inside the carburetor.

 Inflate tyre to specified pressure, support the vehicle

Such that both the tyres are not loaded.

 Grease all unpainted parts.

 Cover the vehicle properly.

 If the vehicle is fitted with battery, remove it from

Vehicle and subject it to bench charging, every fortnight.

2.2.1.8 THE CONSOLIDATED FINANCIAL RESULTS INCLUDE
THE RESULTS OF THE FOLLOWING COMPANIES


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Name of the % Share holding Segment Consolidated as
company and voting power
of Bajaj Auto Ltd
and subsidiaries

A) Bajaj Auto 100 % Investment Subsidiary
Holdings Ltd

B) Bajaj Allianz 74 % Insurance Life Joint venture
General Insurance
Company Ltd

C) Allianz Bajaj 74 % Insurance Life Joint venture
Life Insurance
Company Ltd

D) Maharashtra 24 % Automotive and Joint venture
Scooters Ltd Investments

E) Bajaj Auto 46.15 % Hire purchase and Associate
Finance Ltd financing

2.2 A REVIEW ON THE ANNUAL SALES OF TWO AND THREE
WHEELERS IN 2008-09


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Bajaj Auto records a sale of 140,117 units of two and three wheelers in March 09.

2.2.2.1 MOTORCYCLES SALES

A total of 74,031 motorcycles were sold during March 08, as against a sale of
69,924 units in March 2009 a growth rate of 5.9%.
April 1, 2003: This growth has been achieved despite very tough market
conditions triggered by war, petrol price bikes, VAT related confusions etc.
Such growth was enable by the strong product line up of the company-entry
level CT 100 BYK, the new Pulsar 150cc of take of 10,754 units, Initial customer
feedback is encouraging and company plans to produce over 30000 units during April
2009.

2.2.2.2 THREE WHEELERS

Demand for 3 wheelers, has been strong and over 16000 3 wheelers have been
sold in March, 09.

Commercial production of GC 1000-new one ton goods carrier powered by
high performance Kubota Diesel Engine has commenced a Waluj plant. Company
expects to produce over 500 units of this model in April 09.

2.2.2.3 EXPORTS GROWTH


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Exports growth continues in March. Exports performance continues to be
strong, with 7,119 two and three wheelers exported during the month, a growth of
53.8% over 4,628 units exported in Mar, 09.

Export performance during the month would have comfortably crossed
11000 units, but for the Mumbai customers House Agents strike for a few days which
bampered shipping of goods. As of 31st March over 4200 units awaiting shipping in
Mumbai port.

Fiscal Year 08-09 volumes total sales of 2 and 3 wheelers for 08-09 are
14,42,760 units recording a growth rate of 6.2% over last year.
Motorcycles sales are 868,089 units against 656,018 units sold during 08-09
recording a healthy growth rate of 32.3%. Despite intense competition, in this all
important segment, for the 3rd consecutive year, company has recorded market share
improvement, which for 08-09 stood at 23%.

Exports have been another high point of the year 94, 133 units have been
exported-highest ever by the company and a whopping 112.4% growth over
corresponding numbers of 44,311 units exported during the previous fiscal.
Fiscal year 08-09 outlook based on product strength in critical motorcycle
segment which is expected to contribute over 80% of 2 wheeler sales, company is
bullish for the forth coming year. Discover and CT 100 have redefined be respective
sub-segments and Pulsar 180 with its best in class performance and fuel efficiency, is
making in roads in the Executive segment.

Given the current uncertainties explained earlier, 08-09 is projected to be a
difficult year. Despite this general back drop, based on its products, positioning and
exports, company expects to sell over 1.6 million units in 08-09, achieving a 10% plus
growth rate.


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2.2.2.4 Following table shows the sales in March 2009 with
comparison to previous year march 2008.

March 09 March 08 Growth

Motorcycles 868.089 656.018 32.3%

Total 2 Wheelers 1.24.043 1.197.922 4.3%

3 Wheelers 193.717 160.684 20.6%

Total 2 & 3 1.442.760 1.358.606 6.2%
Wheelers

Exports out of 94.133 44.311 112.4%
above total 2 & 3
Wheelers

2.2.2.4 BOOK PROFIT OF THE FIRM
Reflective of the growing competitive pressure in the Two wheeler industry.
Bajaj Auto reported a marginal increase in turnover and net profit for the year ended
Mar 2009. Aided by 6% increase in sales volume, the total income from operations
rose 15% to Rs. 4,895.3 crores.
For the year ended Mar 09 motorcycle sales rose 32% to 8.68 lakh units while 3
wheeler sales 21% to 1.94 lakh units.
However the other two wheeler segment such as scooter and step they saw a net
decline in sales volume. As a result, the total two wheeler sales inched up by 4%
deposit a robust 21% increase in motorcycle sales.


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2.2.2.5 FINANCIALS
The operating profit margin rose to 18.9% from 17.5%. The cost control
measures undertaken by the company along with the increased off take of higher
value products such as Pulsar, CT 100 and 3 Wheeler helped the company to achieve
a higher OPM.

The increase in turnover and profitability helped Bajaj to record a 3.3%
increase in post tax earnings to 5,38,42 crores. The company has maintained the
dividend at 140% for the year ended Mar, 03.

The impact of the competitive forces is evident in the fourth quarter of the previous
fiscal. The turnover for this period rose by just 10% while the OPM saw a net decline.
Over the past few years Bajaj has been fairly successful in segmenting the motorcycle
market.

It took the lead be launching CT 100 at the lower price spectrum and, with
Avenger and Pulsar, which were positioned in the premium price band.

However Hero Honda and TVS Motor have launched a product that competes
with Bajaj’s range in almost all price segments. As a result, the company might find
its growth rates getting stalled.

2.2.2.6 FORWARD LOOK

For the financial year 2008 BAL is targeting two wheeler sales of 1.6
million units, inline with the 12% industry growth rate. But is motorcycle growth rate
is 30%, with volumes crossing one million units, including projected Pulsar volume
of 240,000 units.


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BOARD OF DIRECTORS

• Rahul Bajaj
Chairman

• Madhur Bajaj
Vice Chairman

• Rajiv Bajaj
Managing Director

• Sanjiv Bajaj
Executive Director

• Rakesh Sharma
CEO (International Business)

• R C Maheshwari
CEO (Commercial Vehicles)

• S Sridhar
CEO (Two Wheelers)


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2.2.2.7 ORGANIZATION STRUCTURE

Board of directors

Managing Director

Executive V.P President

Purchase Marketing
Sa Sales

Operations R&D Production Quality HRD& Industrial Business Finance
Engineer Assurance TQC Relations Planning

Information Industrial Program Program Program Corporate
Systems Business Scooty Motorcycle Moped Communication


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2.2.2.8 Sales & Service Departments

Senior Vice President

Vice President

Sales Head

National Mgr National Mgr National Mgr National Mgr

Area Mgr Area Mgr Area Mgr Area Mgr

Territory Mgr Territory Mgr Territory Mgr Territory Mgr

Functions of Sales & Service Departments
 Improved customer Satisfaction

 Customer relation Management

 Build the Auto Bajaj Ltd

 Improve channel Management

 Expand dealer network


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2.2.2.9 Finance Department

Senior Vice President

Vice President

General Mgr General Mgr

Asst General Asst General Asst General Asst General
Mgr Mgr Mgr Mgr

Manager 1 Manager 2

Other Staff Other Staff


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2.2.2.10 Human Resources Development (HRD)

Head of BAL

DGM HRD

Senior Manager (HRD)

3 Senior Administrative Assistants


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2.2.3 FIRMS’S PROFILE


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2.2.3.1 A BIRD VIEW OF ARPITA BAJAJ

Arpita Auto Dealer’s has taken its birth in the year may 1, 2000 by
appointing as a authorized dealer of Bajaj Auto Ltd. For the sales, service spares of
two wheelers. A new showroom was started in Hassan in the heart of the city of the
BM Road. In the early stages of the firm there were only 20 workers who were
working. Due to the increase of sales and profit of the firm, they wanted to increase
the scale of the business. So the purchased asset (site) in 1983, Hassan at BM Road.
In that place, they constructed an exciting showroom for the purpose of business. It
consists of 3 divisions.

They are:-
a. A department for sales.
b. A department for service.
c. A department for spares.

• The sales department contains a head count of 13 members.
• The service department contains a head count of 25 members.
• The spare part department also contains a head count of 04 members to
work. It is having computer facility for billing and charging the
amount.

2.2.3.2 NATURE OF THE FIRM:

Arpita Bajaj( is a sole trading firm. The founder of Arpita Bajajwas Vishwanath Patil
who developed the firm into a greater extent.


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2.2.3.4 INFRASTRUCTUAL FACILITIES:-
The firm is having a total area of 2000 sq.ft. It is having a fabulous and an attractive
showroom of 950 sq.ft. The spare part section is having on area of 1000 sq.ft. It is
having a well equipped workshop with an area of 1800 sq.ft. The remaining area is
using for parking and test riding of vehicles.

The firm is having a separate counter for sales and for Bajaj Auto Finance. Bajaj
Auto Finance is providing a good facility for customer like loans, free service etc.
The customers will have the facility of loan by Bajaj Auto Finance Ltd., in Pune at an
attractive rate of interest. The customer has to clear the installment within 12, 18, 24
& 36 months.

2.2.3.5 Table showing the total sales of Two Wheelers achieved by Arpita Auto
Dealer in the last 2 years.
YEAR TOTAL SALES OF 2 WHEELERS
2008-09 79
2009-10 120

The above table clearly shows that the sales of two wheelers are in cumulative
increase except in the year 1995-96. So that Hassan Auto Dealer’s performing its
function in a competitive way.

2.2.3.6 PROMOTIONAL STRATEGY OF THE FIRM:-
Arpita Bajaj emerged as a fast moving seller of two wheelers of Bajaj Auto Ltd, it has
undertaken various promotional tools to retain the existing customers and to forecast
the prospective and failure customer. Following are the sales promotional tools
adopted by the firm to increase its sales.

2.2.3.7 NEWS PAPER:-
The firm has adopted the newspaper as an advertisement media for the
promotion of its two wheelers. If give the Add in the all English newspapers like


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Times of India, Vijay Times, Indian Express, Deccan Herald etc. It also gives Add in
local newspapers such as Vijaya Karnataka Janatha madhyama etc.

2.2.3.8 TELEVISION:-
The firm displays its Add in different channels of television. It is an effective
media of advertisement which is adopted by the firm to induce the prospective
customers.

2.2.3.9 MAGZINES:-
The firm subscribes its Add in various souvenirs and magazines of reputed
colleges, educational institutions and in other institutions.

2.2.3.10 WINDOW DISPLAY:-
The firm is having an exciting showroom and a large place for the display of
vehicles. The vehicles will to display through windows. So it attracts the attention of
the customers when they enter into the showroom.

2.2.3.11 OTHERS:-
The firm displays its products big banners, posters, boards across the major
busy roads and also leaf lets, pomp lets issued to the customers.

The posters, banners will be displayed in the sports events, drama festivals,
youth festivals, exhibitions, fares, and other famous festivals.

2.2.3.12 PRODUCT PROFILE:

Type of Company: Public

Foundedin:1945

Headquarters:Pune,India


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Products:Scooters,Motorcycle,andAutorickshaw.

Bajaj Auto Ltd. is an important Indian automobile manufacturer. Bajaj Auto is the
second largest two-wheeler manufacturer in India and one of the largest in the world.
It is also the earliest one in India to venture into automobile manufacturing. The
company produces and exports scooters, motorcycles and the auto rickshaw. Bajaj
Auto is based in Pune, Maharashtra, with plants in Akurdi and Chakan, Waluj and
Pantnagar.Uttarakhand.

Bajaj Auto Limited was founded on November 29, 1945. At that time it was known
as M/s Bachraj Trading Corporation Private Limited. The company initially sold
imported two- and three-wheelers in India. In 1959, Bajaj Auto obtained license from
the Government of India to manufacture two- and three-wheelers in the country. In
1960, Bajaj Auto became a public limited company

Over the last few years, Bajaj Auto has smartly and successfully transformed its
image from a scooter manufacturer to a two wheeler manufacturer. At present, the
product range of Bajaj Auto includes Scooters and Motorcycles. The last few years
have seen company's real growth in numbers after it successfully introduced a number
of new models in various segments of the fast growing bike market in India. In fact,
Bajaj Auto smartly introduced new segments in the motorcycle market to take on its
arch rival and market leader Hero Honda.

2.2.3.13 Bajaj Avenger
Bajaj Avenger is a cruiser bike from the stable of Bajaj Auto. Bajaj Avenger is
modeled along the lines of Kawasaki Eliminator as it draws the styling and other
design cues from Bajaj Eliminator which had an air-cooled, single cylinder Kawasaki
engine.

2.2.3.14 Bajaj CT 100
Bajaj CT 100 is a 100 CC entry-level bike from Bajaj Auto. Bajaj CT 100 clearly
targets the value-for-money conscious young bike buyer and offers build quality and
trim levels of higher-end bikes at a price closer to that of a traditional metal-bodied

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scooter.

2.2.3.15 Bajaj Platina
Baja Platina is a bike built by the Bajaj Auto. Baja Platina borrows extensively from
the Bajaj Wind and Bajaj CT 100 models.

2.2.3.16 Bajaj Discover DTSi
Bajaj Discover DTSi is a 125 cc bike. The Bajaj Discover has been the highest selling
125 cc bike in India since its inception and far ahead of other bikes in its segment. It
is equipped with world’s first 125cc DTSi engine which gives best in class power of
8.47kW

2.2.3.17 Bajaj Pulsar DTSi
Bajaj Pulsar has achieved the status of a cult bike in India. The sturdy and macho
looking bike has been hugely popular in the Indian motorcycle market and is largely
responsible for changing the 'scooter manufacturer' image of Bajaj Auto.

2.2.3.18 Bajaj Wave
Bajaj Wave scooter borrows heavily from the old Bajaj Safire in terms of the overall
design but it comes with several new refinements. Bajaj has incorporated its patented
DTSi (Digital Twin Spark Ignition) technology and Exhaust TEC into Bajaj Wave.

2.2.3.19 Bajaj Wind 125
Bajaj Wind* 125 is an executive segment, upright postured, fuel efficient bike from
Bajaj Auto. Though manufactured in India, Bajaj Wind 125 is available only for
select international markets.

2.2.3.20 Auto rickshaws

•Bajaj Auto rickshaw Rear Engine 2 stroke petrol


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•Auto rickshaw WH175ZK

•Auto rickshaw passenger and goods carrier

•Star Auto rickshaw 4 stroke petrol

2.2.4 ACHIEVEMENTS:

Bajaj Auto Ltd achieve some Awards from some companies, the are

2005 •Bajaj Discover DTS-I was chosen as Bike of the Year and Indigenous
Design of the Year by Overdrive Awards.
2004 •Bajaj Auto was chosen as Bike Maker of the Year by ICICI Bank
Overdrive Awards.

•DTS-I Technology was chosen as Auto Tech of the Year by ICICI
Bank Overdrive Awards.

•Bajaj Pulsar DTS-I became Bike of the Year by ICICI Bank Overdrive
Awards.

•Wind 125 chosen as the Two Wheeler of the Year by CNBC
AUTOCAR Awards.

•Wind 125 chosen as the Bike of the Year by Business Standard
Motoring.
2003 •Bajaj Pulsar 180 DTS-I chosen as Wheels Viewers Choice Two
Wheeler of the Year and Best Two Wheeler by BBC World Wheels
Award.


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•Bajaj Pulsar 150 DTS-I chosen as Best Two Wheeler between Rs.
45,000 to Rs. 55,000 by BBC World Wheels Award.

•Bajaj Boxer AT KTEC chosen as Best Two Wheeler under Rs. 30,000
by BBC World Wheels Award.

•Bajaj Pulsar chosen as Motorcycle Total Customer Satisfaction Study
by NFO Automotive.

•Bajaj Pulsar chosen as Bike of the Year by ICICI Bank OVERDRIVE
Awards.
2002 •Bajaj Pulsar chosen as Most Exciting Bike of the Year by
OVERDRIVE Awards.

•Bajaj Eliminator chosen as Bike of the Year by OVERDRIVE Awards.
2001 •Bajaj Eliminator chosen as Most Exciting Bike of the Year by
OVERDRIVE Awards.


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2.2.5 SWOT ANALYSIS

STRENGTHS WEAKNESS

SWOT
ANALYSIS

THREATS
OPPORTUNITY


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STRENGTHHS:

 Government Bank giving more attention to installation loan improvement

 Less use of chemicals

 Ever time more demand

 Minimum Response Time due to good Team Work.

 Focus on Customer Delight besides Customer Satisfaction.

 Latest Hi-tech Core Concepts of Production & Quality.

WEAKNESS:

 More than 50% of the targeted customers are youths.

 High dependence on the transportation.

 Old methods and techniques are in use

 Cost for maintaining standard is more.


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OPPORTUNITY:
 Bajaj Auto Ltd said it plans to expand its presence in south-east Asia and
Africa to tap the growing demand for two-wheelers and motorized rickshaws
in these markets.

 Bajaj is India's second-largest motorcycle maker, which also makes scooters
and dominates the Indian market for three-wheeled motorised rickshaws, has
enjoyed a boom in India's $4 billion-a-year market of nearly 5 million bikes,
the world's second-largest after China.

 Bajaj plans to set up a manufacturing plant in Indonesia in a joint venture with
its local distributor, and use that as a hub for expanding exports in the rest of
south-east Asia.

 Bajaj will hold the majority stake in the joint venture, which will be finalised
in the next three months, he said, declining to disclose the value of its
investment.

 Bajaj will also set up an assembly unit in Nigeria.

 Bajaj, overtaken as India's top two-wheeler maker in 2002 by Hero Honda
Motors Ltd, has benefited from rising incomes in Asia's third-largest
economy, besides cheaper loans and a shift in preference to high-value
motorbikes from scooters.

 But Bajaj, which uses Kawasaki Heavy Industries Ltd technology for some
models, faces growing competition from Honda Motorcycles, Suzuki Motor
and Yamaha, besides local players TVS Motor and Kinetic Motors.


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 Bajaj Auto to launch cheap car to tackle Tata’s car. The Proposed cheap car
from Bajaj Auto will have a 500 or 600cc engine and diesel, petrol or CNG
engine options.

THREATS;

 Faced with tough competition.

 Competitors such as LML, Hero Honda and TVS Motor are also slated to
launch models this year.

 In the late 1990s, Bajaj Auto, the leading scooter manufacturer, faced a crisis.
There was a shift from scooters to motorcycles. Urban youth as well as rural
markets were patronizing the motorcycles, effectively ignoring scooters.


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3. LITRATURE REVIEW

Customer Satisfaction:
Customer satisfaction is the determination of the degree to which a company’s
products or services meet the requirements of the end user.

“Customer Satisfaction is the customer’s evaluation of a product or a
service in terms of whether that product or service has met their needs and
expectations.”

Customers’ expectations are continuously increasing. Brand Loyalty is a thing of past.
Customers seek out products and producers that are best able to satisfy their
requirement.
It is not enough if the product meet customer expectations like the behavior or attitude
of the person. Customer Satisfaction is the combination of both technical features and
human behavioral aspects.

Customer Satisfaction can be represented as follow:
Performance features address the issues on conformance to the standards and
variability.
Behavior aspects deal with the following component of services:


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• Responsiveness - Readiness of employee to provide service.

• Courtesy - Respect, friendliness of contact personnel.

• Complete Resolution - Listening to customers.

• Communication - Speaking to the customers in their language.

• Credibility – Taking ownership in resolving the complaints.

If customer experience matches customer expectation, it leads to customer satisfaction
and if customer experience doesn’t match with ‘Customer Expectation’, leads to
‘Customer Dissatisfaction’. On similar lines if it exceeds expectation leads to
‘Customer Delight’.

3.1 PHASES IN CUSTOMER SATISFACTION
Customer satisfaction can be divided into three phases:

3.1.1 Pre sales period:
During these phase the customer satisfactions are built through the various
information on the product, i.e. its quality, core benefits, its price distribution outlet
and so on. The customer is in a way attracted to the benefits of the product that he
would gain after the purchase of the product.

3.1.2 During sales period:

During this phase the customer is experiencing on being converted from a prospect to
an actual buyer. Here Customer Satisfaction will be felt if given an opportunity to
inspect the product, attentive services ambience etc.

3.1.3 After sales period:


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This phase starts after the customer has brought the product and started using it.
Customer satisfaction will be matching customer expectation if the required support
or advice is provided by the firm, efficient and effective follow up process, efficient
repair and maintenance service and smooth and straight forward complaint follows:
3.1.4 Product and Service Features:

Customer satisfaction with a product or service is influenced significantly by the
customer evaluation of product and service features. The important features and
attributes and perception of those features all determine the overall satisfaction.
Consumer emotion can also affect their perceptions of satisfactions with products and
services. These emotions can be stable pre- existing emotions like mood state or life
satisfaction. These include positive emotions such as happiness, pleasures and
negative emotions such as sadness, sorrow, regret, anger and depression.

3.2 Attributions for Service Success or Failure:

Attributions- the perceived courses of events, influence, perceptions of satisfaction as
well. When the product or service is either much better or much worse than expected,
the customers tend to look for the reasons and their assessments of reasons can
influence their satisfaction.

Customer Satisfaction is also influenced by perceptions of equity and fairness.
Customers ask themselves whether they had been treated fairly compared with other
customers, whether they got a better treatment, better prices or better quality service.

Most of the companies believe in TCS-“Total Customer Satisfaction”. If the exiting
customers are satisfied, then they advertise the product and there by it reduces the cost
on promotional activities. Their peer groups including friends and relatives will also
be influenced toy the product and thereby enabling the company to earn high market
share.

Satisfaction of the customers is also important tool to the company’s planning for the
future. Based on the satisfaction level they can plan out their future marketing


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policies. Any modification required enhancing the level higher and also plan out the
promotional policies required in the future.
Hence customer satisfaction is very important in marketing action. Action planning
organizes activity to improve customer satisfaction by operational defining and
functionally deploying customer requirement.

The concept of satisfaction is one about which there are presently few agreed upon
definition or approaches to measure nevertheless, Hunt has summarized the concept in
the following statement.
Satisfaction is a kind of stepping away from an experiences and evaluation it, one
could have a pleasure experiences that caused dissatisfaction because even thought
pleasurable, it was supposed or expected to be. So satisfaction/dissatisfaction is not an
emotion, evaluation of an emotion.
Even though Bajaj is facing cut throat competition in the market, it is making huge
profits. There is a need to understand the customer buying behavior and customer

Satisfaction towards the product. Therefore Bajaj India Limited Company chooses
what the factors which make the customers satisfy are and what are the changes which
are required in the future.
The research intends to prove and understand the consumer’s perception and attitude
towards Bajaj Motors. Research also studies to find out the level of customer
satisfaction towards Bajaj on different parameters. By this the company would like to
know their demerits and increase their standard in the industry.

3.3 Definition for After-sales Service

Customer support following the purchase of a product or service. In some cases, after-
sales service can be almost as important as the initial purchase. The manufacturer,
retailer, or service provider determines what is included in any warranty (or
guarantee) package. This will include the duration of the warranty" traditionally one
year from the date of purchase, but increasingly two or more years “maintenance and/
or replacement policy, items included/excluded, labor costs, and speed of response. In
the case of a service provider, after-sales service might include additional training or
helpdesk availability. Of equal importance is the customer's perception of the degree


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of willingness with which a supplier deals with a question or complaint, speed of
response, and action taken.

Quality, price, and service are three factors are critical to the success of any export
sales effort. Quality and price are addressed in earlier chapters. Service, which is
addressed here, should be an integral part of any company's export strategy from the
start. Properly handled, service can be a foundation for growth. Ignored or left to
chance, it can cause an export effort to fail.
Service is the prompt delivery of the product. It is courteous sales personnel. It is a
user or service manual manual modified to meet your customer's needs. It is ready
access to a service facility. It is knowledgeable, cost-effective maintenance, repair, or
replacement. Service is location. Service is dealer support.

Service varies by the product type, the quality of the product, the price of the product,
and the distribution channel employed. For export products that require no service -
such as food products, some consumer goods, and commercial disposables - the issues

On the other hand, the characteristics of consumer durables and some consumables
demand that service be available. For such products, service is a feature expected by
the Consumer. In fact, foreign buyers of industrial goods typically place service at the
forefront of the criteria they evaluate when making a purchase decision.

All foreign markets are sophisticated, and each has its own expectations of suppliers
and Vendors. U.S. manufacturers or distributors must therefore ensure that their
service Performance is comparable to that of the predominant competitors in the
market. This level of performance is an important determinant in ensuring a
reasonable competitive Position, given the other factors of product quality, price,
promotion, and delivery.

An exporting firm's strategy and market entry decision may dictate that it does not
provide after-sale service. It may determine that its export objective is the single or
multiple opportunistic entries into export markets. Although this approach may work
in the short term, subsequent product offerings will be less successful as buyers recall


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the failure to provide expected levels of service. As a result, market development and
sales expenditures may result in one-time

3.4 Service Delivery Options:

Service is an important factor in the initial export sale and ongoing success of
products in foreign markets. U.S. firms have many options for the delivery of service
to foreign buyers.
A high-cost option - and the most inconvenient for the foreign retail, wholesale,
commercial, or industrial buyer is for the product to be returned to the manufacturing
or distribution facility in the United States for service or repair. The buyer incurs a
high cost and loses the use of the product for an extended period, while the seller must
incur the export cost of the same product a second time to return it. Fortunately, there
are practical, cost-effective alternatives to this approach.

If the selected export distribution channel is a joint venture or other partnership
arrangement, the overseas partner may have a service or repair capability in the
markets to be penetrated. An exporting firm's negotiations and agreements with its
partner should include explicit provisions for repairs, maintenance, and warranty
service. The cost of providing this service should be negotiated into the agreement.

For goods sold at retail outlets, a preferred service option is to identify and use local
service facilities. Though this requires up-front expenses to identify and train local
service outlets, the costs are more than repaid in the long run.

For example, a leading Canadian manufacturer of consumer personal care items uses
U.S. distributors and sales representatives to generate purchases by large and small
retailers across the United States. The products are purchased at retail by individual
consumers. The Canadian firm contracted with local consumer electronic repair
facilities in leading U.S. cities to provide service or replacement for its product line.
Consequently, the manufacturer can include a certificate with each product listing
"authorized" local warranty and service centers.


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There is administrative, training, and supervisory overhead costs associated with such
a warranty and service program. The benefit, however, is that the company is now
perceived to be a local company that competes on equal footing with domestic U.S.
manufacturers. U.S. exporters should keep this example in mind when entering
foreign markets.

Exporting a product into commercial or industrial markets may dictate a different
approach. For the many U.S. companies that sell through distributors, selection of a
representative to serve a region, a nation, or a market should be based not only on the
distributing company's ability to sell effectively but also on its ability and willingness
to service the product.

Assessing that ability to service requires that the exporter ask questions about existing
service facilities; about the types, models, and age of existing service equipment;
about training practices for service personnel; and about the firm's experience in
servicing similar products.

If the product being exported is to be sold directly to end users, service and timely
performance are critical to success. The nature of the product may require delivery of
on-site service to the buyer within very specific time parameters.

May have to send personnel to the site to provide service. The sales contract should
anticipate a reasonable level of on-site service and should include the associated costs.
Existing performance and service history can serve as a guide for estimating service
and warranty requirements on export sales, and sales can be costed accordingly. This
practice is accepted by small and large exporters alike.

At some level of export activity, it may become cost-effective for a U.S. company to
establish its own branch or subsidiary operation in the foreign market. The branch or
subsidiary may be a one-person operation or a more extensive facility staffed with
sales, administration, service, and other personnel, most of whom are local nationals
in the market. This high-cost option enables the exporter to ensure sales and service
quality, provided that personnel are trained in sales, products, and service on an


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ongoing basis. The benefits of this option include the control it gives to the exporter
and the ability to serve multiple markets in a single region.

Manufacturers of similar or related products may find it cost-effective to consolidate
service, training, and support in each export market. Service can be delivered by U.S.-
based personnel, a foreign facility under contract, or a jointly owned foreign-based
service facility. Despite its cost benefits, this option raises a number of issues. Such
joint activity may be interpreted as being in restraint of trade or otherwise market
controlling or monopolistic. Exporters that are considering it should therefore obtain
competent legal counsel when developing this joint operating arrangement. Exporters
may wish to consider obtaining an export trade certificate of review, which provides
limited immunity from U.S. antitrust laws.

3.5 Ten Rules for Great Customer Service

Think about the last time you had a negative buying experience. Did an e-commerce
site fail to respond to your email query? Did a sales associate at your neighborhood
computer store fail to know the difference between a floppy drive and a hard drive?
Perhaps you were left on hold for an inordinate
Efficient and affordable online customer service training.
Amount of time when you called a mail-order company's toll-free line
Negative buying experiences are almost always linked to shoddy customer service.
Even though most businesses claim that they put people first, it's rare to find good
customer support. But customer service isn’t extinct. In fact, after consumer groups
and the media took potshots last year at e-commerce sites for leaving customers in the
lurch, many businesses began to focus more attention on their service.
Strong customer service is a business essential. Providing it isn’t as difficult if you
and your employees achieve these 10 basic rules:

3.5.1 Commit to quality service.
Everyone in the company needs to be devoted to creating a positive experience for
the customer. Always try to go above and beyond customer expectations.

3.5.2 Know your products.


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Convey an articulate and in-depth knowledge of products and services to win
customer trust and confidence. Know your company’s products, services, and return
policies inside and out. Try to anticipate the types of questions that customers will
ask. Update and amend your FAQ page frequently.

3.5.3 Know your customers.
Try to learn everything you can about your customers in order to tailor your service
approach to their needs and buying habits. Talk to customers about their experience
with your company, and listen to their complaints. In this way, you can get to the root
of customer dissatisfaction.

3.5.4 Treat people with courtesy and respect.
Remember that every time that you, your employees, and your colleagues make
contact with a customer — whether it’s by email, phone, written correspondence, or a
face-to-face meeting — the interaction leaves an impression with that customer. Use
conciliatory phrases — "Sorry to keep you waiting," "Thanks for your order," "You’re
welcome," and "It’s been a pleasure helping you" — to demonstrate not only your
commitment to customer satisfaction but your dedication to courtesy.

3.5.5 Never argue with a customer.
You know very well that the customer isn’t always right. However, it is important that
you do not focus on the missteps of a particular situation; instead, concentrate on how
to fix it. Research shows that 7 out of 10 customers will do business with a company
again if that business resolves a complaint in their favor.

3.5.6 Don’t leave customers in limbo.
Repairs, callbacks, and emails need to be handled with a sense of urgency. Customers
want immediate resolution, and if you can give it to them, you will probably win their
repeat business. Research shows that the instance of repeat business goes up to 95
percent when complaints are resolved on the spot.

3.5.7 Always provide what you promise.


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Fail to do this and you’ll lose both credibility and customers. If you guarantee a quote
within 24 hours, get the quote out in a day or less. If and when you neglect to make
good on your promise, apologize to the customer and offer some type of
compensation, such as a discount or free delivery. Overall, only make promises that
you are confident that you and your business can keep.

3.5.8 Assume that your customers tell the truth.
Even though it may appear that customers lie to manipulate a situation to their
advantage, it is to your advantage to give them the benefit of the doubt. The majority
of customers don’t like to complain; in fact, they’ll go out of their way — perhaps all
the way to a competitor — to avoid it. If you hear unhappy rumblings from your
customers, take their complaints to heart and do your best to appease their
dissatisfaction.

3.5.9 Focus on making customers — not on sales.
Salespeople, especially those who get paid on commission, sometimes focus on the
volume instead of on the quality of the sale. Remember that to keep a customer’s
business is more important than to close a sale. Research shows that it costs six times
more to attract a new customer than it does to keep an existing one. Moreover, happy
customers are the best and most effective way to find new customers.

3.5.10 Make it easy to buy.
The buying experience in your store, on your Web site, or through your catalog
should be as easy as possible. Eliminate unnecessary paperwork and forms, help
people to find what they need, explain how products work, and do whatever else you
can to facilitate transactions.

3.6 New Sales Opportunities and Improved Customer Relations:

Foreign buyers of U.S.-manufactured products typically have limited contact with the
manufacturer or its personnel. The Foreign Service facility is, in fact, one of the major
contact points between the exporter and the buyer. To a great extent, the U.S.
manufacturer's reputation is made by the overseas service facility.


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The service experience can be a positive and reinforcing sales and service encounter.
It can also be an excellent sales opportunity if the service personnel are trained to take
advantage of the situation. Service personnel can help the customer make life cycle
decisions regarding the efficient operation of the product, how to update it for more
and longer cost-effective operation, and when to replace it as the task expands or
changes. Each service contact is an opportunity to educate the customer and expand
the exporter's sales opportunities.

Service is also an important aspect of selling solutions and benefits rather than
product features. More than one leading U.S. industrial products exporter sells its
products as a "tool to do the job" rather than as a "truck" or a "cutting machine" or
"software." Service capability enables customers to complete their jobs more
efficiently with the exporter's "tool." Training service managers and personnel in this
type of thinking vitalizes service facilities and generates new sales opportunities.

Each foreign market offers a unique opportunity for the U.S. exporter. Care and
attention to the development of in-country sales and distribution capabilities is
paramount. Delivery of after-sales service is critical to the near- and long-term
success of the U.S. Company’s efforts in any market.

Senior personnel should commit to a program of regular travel to each foreign market
to meet with the company's representatives, clients, and others who are important to
the Success of the firm in that market. Among those persons would be the commercial
officer at the Commercial Service's post and representatives of the American
Chamber of Commerce and the local chamber of commerce or business association.

The benefits of such a program are twofold. First, executive management learns more
about the foreign marketplace and the firm's capabilities. Second, the in-country
representative appreciates the attention and understands the importance of the foreign
market in the exporter's long-term plans. As a result, such visits help build a strong,
productive relationship.


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3.7 Measuring customer satisfaction

Customer satisfaction refers to the extent to which customers are happy with the
products and services provided by a business. Customer satisfaction levels can be
measured using survey techniques and questionnaires. Gaining high levels of
customer satisfaction is very important to a business because satisfied customers are
most likely to be loyal and to make repeat orders and to use a wide range of services
offered by a business.

Studies carried out by companies like Argos and Cadburys have found very high
levels of customer satisfaction. It is not surprising because these companies
emphasize market research and marketing as the tools to find out what customers
want. Knowing what your customer wants then makes it possible to tailor everything
you do to pleasing the customers.

There are many factors which lead to high levels of customer satisfaction including:
Products and services which are customer focused and then provide high levels of
value for money. Customer service giving personal attention to the needs of
individual customers. After sales service. Following up the original purchase with
after sales support such as maintenance and updating for example in the updating of
computer packages.

This occurs when they feel that the goods and services that they buy have been
specially produced for them or for people like them. This relates to a wide range of
products such as razors that are designed for ease of use and good quality finish,
petrol products that are environmentally friendly and customized to meet the needs of
particular types of engines, etc.

3.4 Service Quality
According to Vavra (1995), quality is consistently delivering products and services
that fully meet consumer needs and expectations.
Quality is defined by Stonebraker and Leong (1994) in the following terms:

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Product or service quality requires a total system, which identifies customer
requirements, which designs the product/service to those requirements and which
establishes a production or service delivery system to produce in conformance with
the specifications.

According to Woodruff (1997), customer value is:
A customer's perceived preference for and evaluation of those product attributes,
attribute Performances, and consequences arising from use that facilitate (or block)
achieving the Customer’s goals and purposes in use situations.

Vandermerwe (1996) makes three assumptions regarding customer value:
1. Value is not what goes into a product, but what a customer gets out of it
2. A customer gets this value out over a period of time, rather than at a point in time
3. Value happens in the customer's space rather than in supplier’s space, where only
costs Accumulate.

According to Naumann and Giel , becoming market driven means identifying market
growth, market attractiveness, and target markets, while becoming customer driven
means using the customer to drive continuous improvement, organizational
reinvention, and radical redesign.
When a company is customer driven, it means that the customer is the one to decide
on the supplier's value added processes.

Quality work does not mean quality service (Maister, 1997). According to Brown
(1992), customers prefer organizations that deliver quality service, and suppliers can
charge premium for quality services. Early research (Grönroos, 1982) suggests that
customers assess service quality by comparing what they feel a seller should offer and
compare it against the seller's actual service performance.

Quality control and marketing must take place during service production and
consumption. Grönroos (1988) has identified a list of six criteria of good perceived
quality professionalism and skills, attitudes and behaviour, accessibility and
flexibility, reliability and trustworthiness, recovery, and reputation and credibility.


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The first is outcome-related, reputation and credibility are image-related, and the rest
are process-related. Storbacka and Holmlund note that relationship quality can be seen
as an antecedent to many other perception concepts, for example, value, satisfaction,
trust, and commitment.

The service quality model of Parasuraman (1985) identified five key gaps that can
cause problems in service delivery. These gaps are:
1. Research gap – between customer expectations and management's perception of
those Expectations.
2. Planning and design gap – between management's perception of what the customer
wants and the designed capabilities of the system that management develops to
provide the service.
3. Implementation gap – between what the service system is designed to provide and
what it actually provides.
4. Communication gap – between what the service system provides and what the
customer is told it provides.
5. Reality gap – between customers' service expectations and their perception of that
service A company should always pay attention to the customer perceptions and
expectations. If there is a difference between customer expectations and perceptions,
there is a gap and in practice, it does not matter whether the gap is based on facts or
feelings, but how the customer perceives service matters .

In studies of customers' expectations of service quality and their actual experiences,
the following five elements are seen as the most important to a buyer (Gitomer, 1998,
Heskett et al. 1990, Parasuraman and Grewal.

• Reliability – ability to provide what was promised
• Assurance – knowledge and courtesy of employees and their ability to convey trust
and Confidence.
• Tangibles – physical facilities, equipment and the appearance of the personnel
• Empathy – caring and individual attention


Service.
• Responsiveness – willingness to help and provide prompt service

Two critical dimensions are reliability and responsiveness. Generally, reliability is the
most important for customer when they assess service. Responsiveness means
anticipating problems before they occur, rather than fixing problems quickly.
Companies must work at making sure that problems will not occur at all. Once the
customer is sure about the quality of the product and responsiveness of the employees,
the probability of a customer becoming a loyal customer increases.

According to Friday and Cotts (1995), customers evaluate services based on the
purpose of the service, necessity, importance, results, cost, and risk. In order to have
appropriate expectations, a customer should have a full picture of the purpose of a job.
Depending on the customer’s perception, the necessity of a service can vary. If a
service is necessary to help customers perform their jobs, they have high expectations
for the job. If a customer sees a risk associated with dealing with the company, their
perception of the added value can be minimal.

According to Naumann (1994), determinants of service quality are:

• Reliability – consistency of services
• Responsiveness – willingness or readiness of employees to provide service
• Competence – possession of required skills
• Access – approachability and ease of contact
• Courtesy – politeness, respect, consideration, and friendliness

• Communication –keeping customers informed and listening
• Credibility – honesty, trustworthiness
• Security – freedom from danger, risk, or doubt
• Tangibles – physical evidence of the service

Products are made up of two elements: basic features such as components, ingredients
and performance, and such added value components as image, service, styling, and
support. Every product additionally entails services. Customers do not always


Service.
differentiate between product and service quality, but regard these elements as a
package. Research shows (Naumann, 1994) that improving tangible product quality is
easier than improving service quality for most companies.

Its implication is that service quality is more difficult to replicate, as service quality
derives from corporate culture and therefore it can be a more permanent competitive
advantage .

In the customer evaluation process it has been reported that customers perceive
greater risk when purchasing services than products, rely more on information from
personal sources, and use price and physical facilities as the major cues to service
quality.

Customers can be reluctant to try new services because of the risks involved (Cannie,
1994). For many non-professional services, the customer's set of alternatives includes
self-provision of the service. Competing options for services are normally smaller
than for products and consumers carry out greater post-purchase evaluation with
services than with products.

Customers define quality frequently through their subjective and preconceived values.
The measures of quality in service organizations are generally more subjective than in
the manufacturing environment. Therefore, the manufacturing view of quality does
not apply in isolation, but must be seen in the context of the customer service
environment in which the product is delivered.

Service quality is one element of the service equation. Frequently, the results are more
important to the customer than the process quality. In certain cases, price and other
acquisition costs can be more important than process quality (see the customer value
equation). Value is not equated with low prices; services and goods of high value can
be at high or low prices. As customer needs are different, customers are willing to pay
very different prices for a given service, depending on its importance.


Service.
The resulting value to the customer over the costs creates potential profit. It has been
estimated that a 5 per cent improvement in customer loyalty would result in a 25 to 85
percent improvement in profit in service industries.

The customer value concept holds that customers buy what creates the most value for
them. It has also been defined as an emotional bond created between a customer and a
supplier. A precondition for this bond to be established is that the product be able to
meet or exceed customer's expectations. Customers can be delighted if the supplier is
able to improve its performance continuously.

Service quality is a logical driver of perceived value. Even if the buyer-seller
relationship involves a physical product, excellent presale or postsale can add to
benefits received and reduce the buyer's non-monetary cost like time, effort, or mental
stress.

There are differences in customers' abilities to evaluate the quality of tangible goods
and services. In general, most goods are easier to evaluate compared to most services
and it seems that most complex services are the most difficult to evaluate claim that
quality of service equals delivered service quality minus service expected. Quality of
service is seen to be similar to customer satisfaction. Realized that the results from a
service are frequently difficult to assess, in some cases even after the purchase of
service. The service value is a subjective matter and is defined by the customers.

Stenberg (1997) calculates total added value for the customer as the difference
between the customer's benefits and costs including both quantitative and qualitative
aspects.

The customer value equation is the customer perspective that influences purchasing
decisions. The value and goods delivered to the customers equals the results created
for them as well as the quality of the processes used to deliver the results, all in
relation to the price of a service to the customer and other costs incurred by the
customer in acquiring the service.


Service.

The value of the results varies with the size of the service tasks and their importance
for the customer. Frequently, the way a service is provided is as important as the
results. For example, in a study of health care, more than half of the claims did not
involve patient injury or unpleasant effects.

This has the following effects on service providers.
• Service quality is relative
• Service quality is defined by the customer
• Service quality varies from customer to customer
• Service quality can be enhanced by meeting customer expectations and controlling
those expectations.

A company's most significant success factor is the ability to deliver better customer
value than the competitors do. By analysing (McDougall et al., 1997) the components
of customer value, a company can estimate a customer's true profitability. Customer
perception of expected benefits consists of product and service attributes. Fredericks
and Salter's "customer value package" additionally includes company image relative
to the competition. Good customer value consists of product value, service value, and
value-based pricing.

Sacrifice consists of transaction cost, life cycle cost, and risk (Naumann, 1994). Many
customers measure their costs only in terms of price, but in certain cases, the
acquiring costs can be substantial and convenience costs can have a value for a
customer.

Customers' perceived risks should be reduced in ways that would increase their
expectations and create competitive advantage. Service reliability reduces the costs of
service delivery and builds value for the customers.

For an organization that offers a service whose quality cannot be judged in advance, a
service guarantee may represent an important marketing tool, and it can be significant
for the potential customer to whom this service may cause a substantial risk.


Service.
Service guarantees may further help the supplier to focus on its customers and can
even lead to the re-design of the service process with breakthrough service.

3.6 Five basic customer value lessons are:
1. Customer defines the appropriate product quality, service quality and reasonable
price
2. Customer value expectations are formed relative to competitive offerings
3. Customer expectations are dynamic, always demanding
4. Product and service quality must extend throughout the channel
5. Maximizing customer value requires total organizational involvement and
commitment.

Walker (1998), Naumann (1994), and Bhote (1996) claim that the Japanese quality
function deployment (QFD) technique provides statistically valid market research to
determine the value customers place on different attributes. Vavra (1995) recognises
applications of quality function deployment in marketing context as well. Rust et al.
(1995) have described return on quality (ROQ) as a method to justify financially
spending on quality initiatives. In return, quality improvement efforts are treated as
investments.

3.7 Customer Care and the Service Manager:

It was realized after the pre-study that the traditional definition of after sales was too
narrow to describe all the tasks of after sales activities. In the literature, maintenance
or preventive maintenance activities relate to the delivered equipment . In the case of
mobile networks, this definition does not cover the whole scope of the used after sales
activities.

A new term, "care" is found in the present study, which is synonymous with after
sales. The word “care” hints towards the health care industry from where it is likely to
have originated, as according to Baird (1999), health care is essentially a highly
personal service. During the 1990's, the word "care" was used increasingly frequently


Service.
in a marketing context to underline premier customer handling, as in telemarketing by
Ambrose and in the case of Volvo by Anonymous.

Customer focused orientation of the marketing and sales (Anonymous, 1995), or high-
quality services to assure customer satisfaction . Often, care is tied to services that are
delivered to the customer after the final product has been delivered. In the scope of
the present study, the services studied under the title care include preventive
maintenance and maintenance activities, but are not only limited to that. Care has
common characteristics with maintenance activities, as it is delivered to the customer
after the final product has already been delivered; in the other words in the care phase.
In this sense, care could be thought of as a set of after sales activities.

The basic needs related to equipment are performance, reliability, and maintainability,
which have to be met in order to provide availability. The objective of maintainability
is to maximize the availability of all facilities and equipment. Maintainability consists
of design and production of equipment so that it can be maintained. Maintenance
means performing duties to restore and to keep equipment in operating condition.

Maintainability and maintenance refers to supporting operating capability that
satisfies the user over the desired period of time.

Care and care management not only includes maintenance, but additionally attempts
to improve the performance of the operating capability that will improve the
satisfaction of a user.

As the nature of the mobile networks is dynamic, i.e., they are constantly changing,
finding an optimal solution for the customer appears to be if not impossible, at least a
very difficult task. With the care activities, the supplier tries not only to carry out
different kind of maintenance activities, but also to enhance the current capabilities of
the existing mobile network.

In order to include all of these activities under one title, it would be unfair merely to
talk conventionally about maintenance, as there are also elements in care that
frequently receive less attention in maintenance.


Service.

This could partly be because, in certain industries other than mobile
telecommunications, some of these services are not relevant.
In their analysis, use the terms "relieving" and "enabling", which have close
equivalents in the care process, in the terms “maintaining” and “improving”.
According to Normann and Ramirez (1994), companies can relieve customers'
workload by tackling certain tasks, but at best, companies can enable a better
capability to complete certain tasks Products or services that enable customers to
perform their tasks better require a deeper understanding of the customers’ business.

The service manager has the business responsibility in the supplier organization to
deliver the care services to the customer. The supplier nominates a service manager to
be responsible for the management of the care phase in the supplier organization
towards a customer. The success of the service manager is indirectly measured by the
success of the delivery of the care services. Success is interpreted in terms of the
customer’s perception of customer satisfaction and customer loyalty.

The service manager concept examined in the present study relates to the particular
service manager concept employed in the studied supplier company. Originally, the
service manager concept was invented based on the customer feedback. During the
present study, the concept of service manager was in its early stages and its role and
importance were still not completely clarified.

Marketing activities strive to producing customer satisfaction with the "four P's",
product, promotion, price, and place (Kotler, 1997). Many companies perform the
"place" function of physical distribution separately from marketing. However, it is
likely that physical distribution through the provision of customer service contributes
to the success of a company and can enhance customer satisfaction

4. TYPE OF RESEARCH:


Service.
Descriptive method has been used in this research for the collection of data .As the
research is related to the study of consumer behavior, which can more effectively be
studied through direct question, experimental research will not be much effective.
Also, considering the constraint, descriptive research is the most suitable design for
this research.

4.1 Qualitative research:
Qualitative research allows you to explore perceptions, attitudes and motivations and
to understand how they are formed. It provides depth of information which can be
used in its own right or to determine what attributes will subsequently be measured in
quantitative studies. Verbatim quotes are used in reports to illustrate points and this
brings the subject to life for the reader. However, it relies heavily on the skills of the
moderator, is inevitably subjective and samples are small. Techniques include group
discussions/workshop sessions, paired interviews, individual in-depth interviews and
mystery shopping (where the researcher plays the role of a potential student, etc in
order to replicate the overall experience).

4.1.2 Quantitative research:
Quantitative research is descriptive and provides hard data on the numbers of people
exhibiting certain behaviors’, attitudes, etc. It provides information in breadth and
allows you to sample large numbers of the population.

4.1.3 Descriptive research:

Descriptive research is used to obtain information concerning the current status of the
phenomena to describe "what exists" with respect to variables or conditions in a
situation. The methods involved range from the survey which describes the status quo,
the correlation study which investigates the relationship between variables, to
developmental studies which seek to determine changes over time.

4.2 SOURCE OF DATA:

Service.

Data which is collected for the first time is called primary data. In the study primary
data includes the data which is collected from the customer directly with interaction.
The study includes data got with personal interaction.

4.2.1 Primary and secondary data:

The appraiser or market analyst must know what they are and what affects them. All
data used in appraisals and market studies should be current, relevant, reliable,
accurate, and conceptually correct. This article presents a discussion of each of these
terms and their significance in the context of the data and in the analysis. The article
then discusses the nature of potential errors that can affect primary and secondary
data. Several categories of errors can exist. The analyst needs to be able to recognize
the error, understand its significance and evaluate the applicability of that data in the
analysis.
Secondary data--Information from secondary sources, i.e., not directly compiled by
the analyst; may include published or unpublished work based on research that relies
on primary sources of any material other than primary sources used to prepare a
written work.

Secondary data has been gathered by others for their own purposes, but the data could
be useful in the analysis of a wide range of real property. In general, secondary data
exists in published sources.

Primary and secondary data are used in appraisals, highest and best use studies,
market analysis sections of appraisals, and full-scale market studies. A conceptual
link between these two types of data and their use appears in the "Levels of Study"
discussion presented in the Appraisal Institute's Course 520, "Highest and Best Use
and Market Analysis" and in Chapter 2 of Market Analysis for Valuation Appraisals,
which is published by the Appraisal Institute. A detailed discussion of this
relationship appears later in this paper.

4.3 Methods for Obtaining Primary Data:


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

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

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