CHAPTER-1 INTRODUCTION TO AUTOMOBILE INDUSTORY

Automobile Indust ! Histo ! In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first automobile to run on roads. his automobile, in fact, !as a self"#o!ered, three"!heeled, military tractor that made the use of a steam engine. he range of the automobile, ho!ever, !as very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles !ere not fit for the roads as the steam engines made them very heavy and large, and re$uired am#le starting time. %liver &vans !as the first to design a steam engine driven automobileinthe'.(. ) (cotsman, *obert )nderson, !as the first to invent an electric carriage bet!een 1+,and 1+,9. .o!ever, homas /aven#ort of the '.(.). and (cotsman *obert /avidson !ere amongst the first to invent more a##licable automobiles, ma0ing use of non" rechargeable electric batteries in 1+1-. /evelo#ment of roads made travelling comfortable and as a result, the short ranged, electric battery driven automobiles !ere no more the best o#tion for travelling over longer distances. he )utomobile Industry finally came of age !ith .enry Ford in 1911 for the bul0 #roduction of cars. his lead to the develo#ment of the industry and it first begun in the assembly lines of his car factory. he several methods ado#ted by Ford, made the ne! invention 2that is, the car3 #o#ular amongst the rich as !ell as the masses. )ccording the .istory of )utomobile Industry '(, dominated the automobile mar0ets around the globe !ith no notable com#etitors. .o!ever, after the end of the (econd 4orld 4ar in 1915, the )utomobile Industry of other technologically advanced nations such as Ja#an and certain &uro#ean nations gained momentum and !ithin a very short #eriod, beginning in the early 19+6s, the '.( )utomobile Industry !as flooded !ith foreign automobile com#anies, es#ecially those of Ja#an and 7ermany. he current trends of the 7lobal )utomobile Industry reveal that in the develo#ed countries the )utomobile Industries are stagnating as a result of the droo#ing car mar0ets, !hereas the )utomobile Industry in the develo#ing nations, such as, India and 8ra9il, have been consistently registering higher gro!th rates every #assing year for their flourishing domestic automobile mar0ets.
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hose !ho are interested in gathering more information about the )utomobile Industry may bro!se through the follo!ing lin0s

"o ld Automobile Indust ! Automobile Indust ! T ends Indi# Automobile M# $et Indi# Automobile Indust !

T%e "o ld Automobile Indust ! is tu ned to t%e de&elo'in( m# $ets) 4ith the develo#ed mar0ets almost saturated, the 4orld )utomobile Industry is no! focused on the develo#ing mar0ets of (outh )merica and )sia, and &astern &uro#e !ith s#ecial em#hasis on 8*IC 28ra9il, *ussia, India, and China3. )s #er the re#orts of the International %rgani9ation of :otor ;ehicle :anufacturers or %IC)2the association of the com#anies involved in 4orld )utomobile Industry3, for the fiscal end in -666, the automobile manufacturers in the '.(. have been overta0en by those in Ja#an, in terms of the total volume of automobile units manufactured !orld!ide. .o!ever, the struggling 7eneral :otors of the '.(. still remain the !orld!ide leaders of the 4orld )utomobile Industry, ahead of the ra#idly gro!ing oyota :otor Cor#oration of Ja#an, by a substantial margin.

Me#su es to be #do'ted b! (lob#l le#de s o* t%e "o ld Automobile Indust !)

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(everal significant economic measures are being considered by the ma<or #layers of the 4orld )utomobile Industry in order to ma0e a smooth entry into the mar0ets of the develo#ing countries, and to ma0e a name for themselves. include=

he effective measures

*educing the selling #rices of the automobiles manufactured in their factories Im#roving the levels of after"sales services to 0ee# customers satisfied %#ening manufacturing factories in the develo#ing nations, to reduce effective costs of #roduction as !ell as saving shi##ing charges, and enhancing #rom#t delivery of automobile units.

Automobile Indust ! T ends

In 0ee#ing !ith the )utomobile Industry rends, the leading automobile manufacturers are turning to the )sian mar0ets that a##ear set to gro! immensely over the ne>t decade. he automobile mar0ets in the '.(., &uro#e and the Ja#an have almost matured as a result of saturation and a##ear set to decline through the ne>t decade. In contrast, the automobile mar0ets s#read over the entire )sian continent 2!ith the e>ce#tion of Ja#an3, are constantly increasing in si9e and !ill be the destination for most of the globally leading automobile manufacturers. he )utomobile Industry rends reveal that the emerging mar0ets of the develo#ing

nations of )sia es#ecially China, and India are bac0ed by their huge #o#ulation gro!th rate, to add to the gro!ing national economy of these t!o nations. he ra#id gro!th of the national economy of the 8*IC countries 2including 8ra9il, *ussia, India, and China3 has enabled a gro!ing section of the #o#ulation of these countries to #urchase automobiles. 7lobal surveys conducted recently reveal that !ithin the ne>t ten years, these emerging automobile mar0ets !ill account for nearly a !hoo#ing 96 #ercent of the global automobile sales gro!th. )s a result of this, leading )utomobile manufacturers of the !orld are setting u# factories in the emerging mar0ets, in order to serve the #otential consumers better as !ell as reduce manufacturing and shi##ing costs. In addition, these arrangements are enabling the leading global

automobile manufacturers to com#ete !ith the local automobile manufacturers that !ere flourishing in the absence of $uality com#etition. he #ros#erity of the national economy is reflected in the rising #er ca#ita income of the develo#ing nations. herefore, increasing 7ross /omestic ?roduct and #er ca#ita income have raised the #urchasing ability of the #o#ulation that constitutes these emerging mar0ets )s a gro!ing #ercentage of the #o#ulation in the develo#ed nations age ra#idly, in com#arison to the rest of the !orld, these aging numbers necessitate automobiles to fit the #hysiological change of the !orld #o#ulation. T%e Eme (in( Indi# Automobile M# $et) he India )utomobile :ar0et is a #romising industrial sector that is gro!ing immensely every #assing year. he #assenger cars are referred to, through the use of the !ord @automobile.@ he !hoo#ing gro!th e>#erienced by the Indian )utomobile :ar0et in the last financial year itself that is the financial year end in February, -667 !as very close to a 1+ #ercent over the #revious fiscal. his statistical fact is a glittering e>am#le of the #otential of the gro!ing )utomobile Industry in India. )s #er the survey conducted by the (ociety of Indian )utomobile :anufacturers, the total number of automobiles manufactured by the )utomobile Industry in India, throughout the financial year -611"1-, !as very close to the -5.5 la0h 2-.5 million3 margin. he huge of number of automobiles manufactured by the )utomobile Industry in India !as an enormous gro!th u#on the number of automobiles manufactured during the #revious fiscal that ended in -666.

he total number of cars that !ere e>#orted from India !ere very close to the -.6 la0h 2-.6 hundred thousand3 margin, an encouraging sign for the )utomobile Industry in India. he e>#ort of cars manufactured in India com#rised nearly 1, #ercent of the total
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number of cars manufactured domestically by the )utomobile Industry in India. he India )utomobile :ar0et loo0s set to #ros#er, largely due to the gro!ing mar0et for automobiles that is develo#ing in India. In the financial year that ended in February, -661, the Indian automobile mar0ets !ere the fastest gro!ing in the !orld, !ith the registered gro!th rate touching nearly -6 #ercent. he )utomobile Industry in India mainly com#rises of the small car section, !hich en<oys nearly a -A,rd mar0et share of the entire mar0et for automobiles in India. In this res#ect, the Indian mar0ets are the largest in the !orld for small cars, behind Ja#an. he Indian #assenger car mar0et !hich ran0s amongst the largest in the !orld, is #oised to become even more larger and enter the to# five #assenger car mar0ets in the !orld in the ne>t decade. Indi# Automobile Indust ! Follo!ing IndiaBs gro!ing o#enness, the arrival of ne! and e>isting models, easy availability of finance at relatively lo! rate of interest and #rice discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong gro!th of the Indian automobile industry. he data obtained from ministry of commerce and industry, sho!s high gro!th obtained since -661" 6- in automobile #roduction continuing in the first three $uarters of the -661" 65. )nnual gro!th !as 16.6 #er cent in )#ril"/ecember, -661C the gro!th rate in -66," 61 !as 15.1 #er cent the automobile industry gre! at a com#ound annual gro!th rate 2C)7*3 of -- #er cent bet!een 199- and 1997.

4ith investment e>ceeding *s. 56,666 crore, the turnover of the automobile industry e>ceeded *s. 59,51+ crore in -66-"6,. Including turnover of the auto"com#onent sector, the automotive industryBs turnover, !hich !as above *s. +1,666 crore in -66-"6,, is
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estimated to have e>ceeded *s.1,66,666 crore 2 '(/ --. 71 billion3 in -66,"61. Automobile De#le s Net+o $ in Indi# In terms of Car dealer net!or0s and authori9ed service stations, :aruti leads the #ac0 !ith /ealer net!or0s and !or0sho#s across the country. he other leading automobile manufactures are also trying to co#e u# and are o#ening their service stations and dealer !or0sho#s in all the metros and ma<or cities of the country. /ealers offer varying 0ind of discount of finances !ho in tern #ass it on to the customers in the form of reduced interest rates. M#,o M#nu*#-tu e s in Automobile Indust !

:aruti 'dyog Dtd. 7eneral :otors India Ford India Dtd. &icher :otors 8a<a< )uto /ae!oo :otors India .ero :otors .industan :otors .yundai :otor India Dtd. *oyal &nfield :otors elco ;( :otors /C /esigns (!ara< :a9da Dtd

7overnment has liberali9ed the norms for foreign investment and im#ort of technology and that a##ears to have benefited the automobile sector. he #roduction of total vehicles increased from 1.- million in 199+" 99 to 7., million in -66,"61. It is li0ely that the #roduction of such vehicles !ill e>ceed 16 million in the ne>t cou#le of years )
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he industry has ado#ted the global standards and this !as manifested in the increasing e>#orts of the sector. )fter a tem#orary slum# during 199+" 99 and 1999"66, such e>#orts registered robust gro!th rates of !ell over 56 #er cent in -66-"6, and -66,"61 each to e>ceed t!o and" a"half times the e>#ort figure for -661"6-. Automobile E.'o t Numbe s

C#te(o ! ?assenger Car :ulti 'tility ;ehicles Commercial ;ehicles !o 4heelers hree 4heelers ?ercentage 7ro!th

1//0-// -516+ -651 1616+ 16666-11,+ "16.6

1223-24 5A' -De-6 1-117+ ,+9199,1 -56765 515,5 ,-.+

THE 7EY 8ACTORS BEHIND THIS UPS"IN9 (ales incentives, introduction of ne! models as !ell as variants cou#led !ith easy availability of lo! cost finance !ith comfortable re#ayment o#tions continued to drive demand and sales of automobiles during the first t!o $uarters of the current year. he ris0 of an increase in the interest rates, the im#act of delayed monsoons on rural demand, and increase in the costs of in#uts such as steel are the 0ey concerns for the #layers in the industry. )s the #layers continue to introduce ne! models and variants, the com#etition may intensify further. he ability of the #layers to contain costs and focus on e>#orts !ill be critical for the #erformance of their res#ective com#anies. he auto com#onent sector has also #osted significant gro!th of -6 #er cent in -66,"61,
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to achieve a sales turnover of *s.,6,616 crore 2'(E 6.7 billion3. Further, there is a #otential for higher gro!th due to outsourcing activities by global automobiles giants. oday, this sector has emerged as another sunrise sector.

E:EN 9RO"TH

%##osing the belief that the gro!th in mobile industry has catered only to the to# income"stratum of society, 7ro!th of e>#orts of ,-.+ F in the first three $uarters of -661"65, the fastest gro!th in volumes has come from commercial vehicles as against #assenger cars. 8et!een 199+"99 and -66,"61, out#ut of commercial vehicles has gro!n -.+ times com#ared to the -.- times increase in #assenger cars. Furthermore, t!o"!heeler out#ut continues to dominate the volume statistics of the sector. In -66,"61, for every #assenger car turned out by the sector, there !ere 7 t!o"!heelers #roduced. In the t!o !heeler segment, there is a greater #reference for motorcycles follo!ed by scooters, !ith both #roduction and domestic sales of motorcycles increasing at faster rates than for scooters in the current and #revious years. .o!ever, mo#eds have registered lo! or negative gro!th. &>#ort gro!th rates have been high both for motorcycles and scooters.

CHAPTER-1 INTRO TO HYUNDAI MOTORS

PRO8ILE O8 HYUNDAI
G.yundaiH a name to be rec0oned in the 4orld )utomobile industry is IoreaJs number one automa0er. .yundai has established an enviable record for gro!th both in $uantitative and $ualitative terms transforming itself from a domestically oriented manufacture into a global #layer and leading contributor to IoreaJs economic and
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industrial develo#ment. .yundai :otor Com#any is steadily accelerating to achieve the status of !orld"class automobile com#any. In /ecember 1967, .yundai :otor Com#any 2.:C3 !as born out of the .yundai 8usiness grou#, the nationJs largest conglomerate !ith the #ur#ose of entering the automobile industry to meet the gro!ing domestic demand for cars. (ince then, .:C has #layed a ma<or role in #roviding trans#ortation to further IoreaJs economics gro!th and #ros#erity. Ent ! o* H!und#i Moto Com'#n! in t%e Indi#n M# $et) .yundai established its #resence in India by o#ening a subsidiary called G.yundai :otor India DimitedH !ith a total investment of '(E 611 :illions. he .yundai #ro<ect is the largest to be made by an :NC in the automobile sector. he #lant near Chennai, in the state of amil Nadu is the largest manufacturing #lant of .yundai motors outside Iorea and contains nearly all facilities necessary for a self sufficient manufacturing and #roduction site for develo#ing cars. his assembly #lant not only boasts it so!n assembly facilities but also a *K/ center, a #erformance e>#erimenting and testing center, and a driving testing ground. )s such, the India #lant re#resents a family"ty#e combined automobile assembly facility, ca#able of all #roduction #rocesses, research and develo#ment, testing of #roducts, mar0eting for sales and #rovision of after sale service in India. In 1997, .yundai :otor India limited launched G(antroH the best small car at its !orld!ide debut in Ne! /elhi. (antro is basically a face lifted version of the G)tosH. (antro !as introduced in three different models having varying features. (antro !as a runa!ay success in the India mar0et and became famous as the all 8oy car. It to##ed the volumes year after year in its segment. P odu-ts ollin( out o* H!und#i Moto Indi# Ltd) he #roducts that come out of the .yundai :otorJs des0 are 1. (antro Ling
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-. )ccent ,. i-6 1. (onata 5. i16 20a##a 1.-3 6. 7et9 (antro Ling is a small segment car, !ith four different versions, and is #riced bet!een ,.,+ Da0hs to 1.,- Da0hs. he four versions are named. 1. (antro Ling M& -. (antro Ling M ,. (antro Ling M7 1. (antro Ling M( )ccent is medium"si9ed car coming in si> different versions, and is #riced bet!een 5.6,Da0hs to 7 Da0hs. he si> versions are named. 1. )ccent C*/I -. )ccent 7;( ,. )ccent 7DM 1. )ccent 7D( 5. )ccent 7?M ornado 6. )ccent ;I;) 5"door #etrol. I-6 is medium si9e car coming in three different versions, and is #riced bet!een 1.79Da0hs to 5.+1Da0hs. he hree versions named 1. :agna -. )sta ,. )sta2%3 (onata is a lu>ury car #riced bet!een 11Da0hs to 1+Da0hs.

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I16 is a small car coming in the nine different versions, and is #riced bet!een ,.-9Da0hs to 5.,6Da0hs. he nine versions named

1. /"Dite 21.13 -. &ra 21.13 ,. :agna 1. :agna ) 5. (#ort9 6. (#ort9 2) 3 7. )sta +. )sta (* 9. )sta (* 2) 3 7et9 is medium car coming in the seven different versions, and is #riced bet!een ,.59Da0hs to 5.1+Da0hs. he (even versions named. 1. 7D& 1.1 -. 7;( 1.1 ,. 7;( 1.1 2175 yre N rear s#oiler3 1. 7;( 1., 5. 7D( 1., 6. 7DM 1., 7. 7;( C*/I 1.5

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Ideolo(! #nd En&i onment #t H!und#i;

) management motto at .yundai is GCustomer first, best in technology, best in $uality and best value for human beingsH. .yundai as a com#any is dedicated to create ne! value for its customers. .yundai :otor Com#anyJs target is to care for the environment and devote attention to the future of our children and their ability to inhabit a clean, #ollution managed !orld. .yundai believes that they have achieved the current status as a !orld"class com#any by faithfully enforcing seven management #rinci#les and creating an atmos#here !here by each and every member of the com#any is able to !or0 for the benefit of common future. )s a result, .yundai motor com#any is committed to its social res#onsibilities as it fulfills its mission !ith dedication and strength of #ur#ose. 9o#l o* H!und#i < =To build t%e +o ld>s best ?u#lit! -# s@

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PRO8ILE O8 9ODA"RI MOTORS

he success story is scri#ted through hard !or0, determination and untiring efforts of the Chairman :r.)sheem (uri. 8eing an engineer !ho !as savvy of automobiles, he started his career !ith ).?. (cooters dealershi# and because of the dedicated #erformance !as allotted !ith .ero .onda dealershi# in 19+7. he success of these dealershi#s led to the entry into the four !heeler segment. In the year 199+ !e !ere a##ointed as the first dealer of .yundai :otors he 7oda!ri :otors sho!room !as inaugurated by the dynamic (ri. ? I (uri) he sho! rooms are situated in #rime locations and are one of a 0ind. he strength of .yundai technology and the dynamism of :r.)sheem ?uri have hel#ed the 7oda!ri :otors scale ne! frontiers and e>ceed limits. T%e *l#(s%i' o* 9od#+ i Moto s 7oda!ri :otors inaugurated in 199+ !ith technologically advanced service centers at Fero9#ur *oad Dudhiana. Mission 4e at 7oda!ri :otors are continuously striving to be in tune !ith technology, #rovide #roducts and services of the highest $uality, meet the #erformance and #rice as#irations of our customers and !hile doing so, maintain the highest standard of ethics and social res#onsibilities. Constantly loo0 to im#rove the $uality of our services and #rocess and loo0 for constant develo#ment !ith a focus to!ards customer delight. o al!ays fulfill the commitment to the #eo#le dealing !ith us !ith a fair mind and conscience)

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Di e-to .ard !or0 heralds success, this is true in every !al0 of life. he success story of the 7oda!ri :otors is also scri#ted through hard !or0 , determination and untiring efforts of %ur director and C&% :r. )sheem (uri , is a :8) from '() and he inculcates not only his dynamism and his entre#reneurshi# but also his family tradition and e>#erience in the )utomobile /ealershi# business. Ins#ire of his busy schedule in the service of his country, he #ersonally oversees the interests of his customers. CustomerJs relationshi# is the mantra he believes and does not com#romise on any issue !ith regard to customer service. :r. )sheem (uri very modestly accords a great deal of credit for his success to his team. :r. )sheem (uri !or0s on some sim#le but effective #rinci#les= ) humane a##roach to business. ) #ractical a##roach of #roblem solving. Concern to!ards otherBs #roblems. .e has inculcated disci#line, service orientation, and above all im#ortance to customer satisfaction to his entire staff and !ith this encouragement and su##ort the staff has been #erforming out of their s0in to see 7oda!ri :otors !here it should be. )t the to#. )bove all, his leadershi# has earned him great res#ect and he has been #ersonally res#onsible for the success story. Milestones (ervice e>cellence a!ard year 1999. %utstanding vehicle sales June -666. Customer (atisfaction a!ard -661. )ll India Ist *an0 in ((I Non J/? :ystery (ho##ing -66+. 8est ?erformance in )ccessory (ale -669"16.

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CHAPTER-A INTRODUCTION TO CUSTUMER SATIS8ACTION

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CUSTOMER SATIS8ACTION Con-e't Identi*i-#tion)s organi9ations become increasingly customer focused and driven by demand, the need to gain customer loyalty and retain their loyalty is critical. Customer satisfaction is the most effective !ay to achieve customer loyalty. Customer satisfaction and customer loyalty share many similar traits. Customer value is the customerJs #erce#tion of the ratio of benefits to !hat he or she gives to obtain those benefits. he customer ;alue riad is a frame!or0 used to understand !hat it is that customers !ant. he frame!or0 consists of three #arts= 213 #erceived #roduct $uality, 2-3 value"based #ricing, and 2,3 #erceived service $uality. Customers are satisfied, !hen value meets or e>ceeds e>#ectations. If their e>#ectations of value are not met, there is no chance of satisfying them. Figuring out !hat the customers !ant, ho!ever, is a difficult and com#le> #rocess. o be able to create and deliver customer value is im#ortant to understand its com#onents. %n the most basic level, value from a customerJs #ers#ective is the ratio of benefits to the ris0s being ta0en !hile buying the #roduct. CUSTOMER SATIS8ACTION AN INSI9HT )ccording to .arold & &dmondson G Customer (atisfactionH seems to a##ear in #rint more fre$uently than any other catch #hrase used to describe a ne! found magic for industrial success. 8efore !e #roceed in to the study of the dynamics of Customer (atisfaction it is im#ortant to 0no! about, !ho a customer is and !hat satisfaction really means.

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"%o e#ll! is # Custome B he $uestion of defining !ho your customers are seems fairly easy #articularly if you have segmented your mar0et #ro#erly and understand !ho you are trying to satisfy. .o!ever subtlety that fre$uently goes undetected by many firms is that is that customer set can be divided into t!o #arts, the a##arent customer and the user. he a##arent customer is the #erson or grou# of #eo#le !ho decide !hat #roduct to buy and basically have control over the #urse strings. he user is a #erson or grou# !ho #hysically uses the #roduct or is the direct reci#ient of a service. 4hat does satisfaction really meanO )s in defining customer above, defining satisfaction also a##ears sim#le. .o!ever as !ith customer there is a subtlety that needs addressing. (atisfaction by most definitions sim#ly means meeting the customerJs re$uirement. Customer satisfaction is a conce#t that more and more com#anies are #utting at the heart of their strategy, but for this to be successful theyJre needs to be clarity about, !hat customer satisfaction means and !hat needs to ha##en to drive im#rovement. 4ithout this, there is a ris0 that customer satisfaction becomes little more than a good intention, !ith confused ob<ectives failing to address the real issues for customers, one hel#ful !ay to loo0 at the #roblem is to re#hrase the ob<ectives= set the sights on hel#ing the customers meet their goals. Customer satisfaction can be defined in many different !ays. Finding the right !ay for a com#any de#ends on understanding your customer and on having a clear vision of the role that customer satisfaction is to #lay in the strategy. For e>am#le, a focus on customer satisfaction can !or0 alongside e>isting segmentations to su##ort revenue generation from high value customers or it can be a com#any"!ide ob<ective rooted in the brand values. For the former, it may be sufficient to focus on im#roving customer service, but for the latter a broader definition of customer satisfaction is necessary, closer a0in to cor#orate re#utation.

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4hatever the strategy for customer satisfaction, it must at least include getting the basics right. Failing to achieve this can destroy the re#utation as !ell as losing valuable customers. &very customer, regardless of their economic !orth to the business, has the #o!er to influence P #ositively or negatively P a com#anyJs re#utation. %nce the ob<ectives for the customer satisfaction strategy are defined there are a number of ste#s !e can ta0e to ma0e sure the focus on customer satisfaction is effective. Buildin( # -om'#n! # ound Custome S#tis*#-tion 4ith the increase in customerJs demands and com#etition it has become a lot more im#ortant to base the entire com#any on customer service. 4hen doing this one must first reali9e that every member of an organi9ation #lays an active role in customer service. his includes both e>ternal customers and internal customers !ithin a com#any. Customer focused organi9ations focus both on customer satisfaction and

#rofit. )chieving customer satisfaction generates the #rofit. In these organi9ations to# management has fre$uent contacts !ith e>ternal customers. he to# management uses consultative, #artici#ative, and su##ortive management styles to get through to the customer. he staff focuses all of its attention on satisfying the customerJs needs. .o!ever, the managementJs <ob is to #rovide the staff !ith su##ort necessary to achieve these goals. he other de#artment and staff in the organi9ation that do not have direct contact !ith the e>ternal customers deal e>clusively !ith internal customer satisfaction. T%e In*luen-e o* t%e s#les'e son in Custome S#tis*#-tionIn an article titled, G he influence of sales#erson selling behavior on customer satisfaction !ith #roducts,H 8rent 7.7off and James (. 8oles e>amine the effects of non" #roduct related construct on customer satisfaction !ith ma<or retail #urchases such as automobiles. he article states that sales#ersonJs selling orientation" customer orientation 2(%C%3 !ill affect not only consumer satisfaction !ith the sales#erson and dealer, but also indirectly, satisfaction !ith the #roduct or manufacturer.

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In the #ers#ectives of both the retailer and the manufacturer, customer satisfaction re#resents an im#ortant issue because it relates to several desirable outcomes. Customer satisfaction leads to future #urchases, and re#eated #urchases of the same #roduct from the same source. In other !ords, it hel#s a firm retain its #resent customers and build loyalty. 8y hel#ing a buyer obtain #roduct information and #roviding guidelines about !hat should be e>#ected during the buying #rocess and use of a #roduct, a sales#erson may influence customer e>#ectations concerning the #roduct. hereby this may reduce the li0elihood of dissatisfaction. ) successful sales#erson tailors to the needs of each individual customer. 8y being customer"oriented, a sales#erson is li0ely to identify !ith needs of the customer, enabling the sales#erson to match his or her #resentation to those re$uirements of the customer. Inte n#l M# $etin( < %o+ it #**e-ts Custome S#tis*#-tion < (uccessful com#anies ma0e every effort to ensure satisfaction to their customer by focusing all organi9ational efforts of the com#any on #roviding su#erior customer service. 8y doing this these com#anies ho#e to retain their e>isting customers and attract ne! ones. %nly angle of customer satisfaction commonly overloo0ed is the internal as#ect. he internal customer or em#loyee #lays a vital role in achieving customer satisfaction and loyalty. (ome firmJs do not understand that the treatment of internal customers becomes the e>ternal customersJ #erce#tion of the com#any. ) firmJs em#loyees or other de#artments !ithin the organi9ation ma0e u# its internal customers. heir <ob #erformance affects the firmJs ability to deliver su#erior #roduct and customer service. 4hen a firmJs em#loyees are ha##y at !or0, their overall attitude and #erformance to!ards the customer enhances tremendously. Internal mar0eting hel#s members or em#loyees of an organi9ation understand and fulfill their roles in im#lementing its mar0eting strategy. Internal mar0eting not only 0ee#s em#loyees ha##y, it also sho!s them ho! their actions affect the firmJs ability to achieve customer satisfaction.

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Custome S#tis*#-tion #s '# t o* Se &i-e P o*it C%#in; ) .arvard 8usiness *evie! article outlines the internal #rocess re$uired to drive gro!th and increase #rofitability. he article describes the !ays in !hich service $uality contributes to success, outlining the ste#s in the G(ervice"#rofit chainH=

P o*it#bilit! C 9 o+t% Customer Doyalty Customer (atisfaction ;alue &m#loyee ?roductivity &m#loyee Doyalty Internal Quality Deadershi#

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CHAPTER-3 CUSTOMER SATIS8ACTION RE9ARDIN9 HYUNDAI MOTORS

-,

Hum#n inte #-tion Customer service is a tas0, other than #roactive selling, that involves interactions !ith customers in #erson, by telecommunications, or by mails. It is designed, #rogrammed and communicated !ith t!o goals in mind= o#erational efficiency and customer satisfaction. ) ty#ical categori9ation of the services based on !ho #erforms the action !ithin the services ca#e can be 1. (elf"service 2customer only3" ) :, :ovie heater -. Inter#ersonal services"ban0s, restaurants ,. *emote services 2em#loyee only3 P tele#hone mail order des0. he su#eriority of the #roduct has to be com#lemented !ith a high $uality of services, !hich gives a com#etitive edge to the organi9ation. ) high standard of service is !hat sets a#art one organi9ation from another, and ultimately attracts the customer to the doorste#s. (ervices at the sho!room fall in the second category !here there is a high com#le>ity of interaction and hence it becomes necessary for the #ersonnel to be ade#t in res#onding to the customer cognitively, emotionally and #sychologically. he various as#ects and characteristics of service #rovision, !hich have been ta0en into consideration of a customer care teamA sales consultant are 1. ?oliteness -. Courteousness ,. ?roduct 0no!ledge 1. ?rocess 0no!ledge 5. Communication s0ills 6. *es#onsiveness and su##ortiveness.

-1

P odu-t in*o m#tion Consumers obtain information about #roducts and services from #ersonal sources 2friends and e>#erts3 and from the non"#ersonal sources 2mass and selective media3. 4hen #urchasing goods, consumers em#loy both #ersonal and non"#ersonal sources since both effectively convey information about search $ualities. his is es#ecially true for high involvement #roducts such as cars, t!o"!heelers, durables etc. :ass media can convey information about search $ualities but can convey a little about e>#erience $ualities. )lso, mass media cannot elaborate on the finer as#ects and hence it becomes im#erative for a sho!room to #rovide the com#lete information about the #roduct, #ricing and the offers. he sho!room can #rovide information by ado#ting the belo! mentioned list 1. 8roachers, leaflets and #ricelists P easy reference and handy. -. (ales consultant ,. est drive P hands"on e>#erience.

8roachers, leaflets and #ricelist are the basic sales tools, !hich elaborately give the #roduct s#ecifications, #romotional offers and schemes at hand and the #ricing of various models at dis#lay. (ales consultant has to be 0no!ledgeable to understand the nuances of the s#ecification and should be able to convey the same to the #ros#ective customers. he sales consultants handle the various $ueries 2technical and commercial3 and clear the im#ending doubts of the in$uisitive customer. est drive P the last #art in #roviding information to the customer and gives the customer a hands P on e>#erience of the #roduct #erformance

-5

Time #nd P om'tness) %ne of the factors, !hich has to match the eagerness and the enthusiasm of the customer is $uic0 and #rom#t delivery of the service. )fter the customer has made a decision to go ahead !ith the #urchase the ne>t logical se$uence of ste#s !ould be a #rocess the re$uired documents, boo0 the order, confirm the order, inform the customer about the date of delivery and #re#are the re$uired documents for the delivery of the vehicle. %rder boo0ing" his is the #rocess !here the onus lies com#letely on the #ersonnel dealing !ith the customer. he customer has to be given the right information regarding the documents, time ta0en to #rocess the documents and close the deal. It is also the res#onsibility of the various de#artments involved to #rovide a $uic0 service to ensure that the customer has a good and satisfying e>#erience. /elivery on date and time" once the #roduct is delivered it can be assumed that a sale has been done. he #a#er !or0 to be carried out has to be done at a $uic0 #ace. his can be observed in the res#onses of those -5F of customers !ho re#orted a slac0 in the delivery #rocess. /eviation from #romised date and time can lead to a lot of inconvenience to the customers, thereby leading to a bad e>#erience. Consisten-! GNothing is consistent by change.H Consistency is a matter of e>#erience. he e>#ectation of service gro!s from every e>#erience the customer has during the sales #rocess. For eg., the customer !ould e>#ect the same res#onsiveness from the sales #erson during the order #rocessing as it !as during the #re"sales, any aberration !ould create a sense of insecurity and !ould thereby breach the bond of trust established bet!een them.

-6

Inconsistency in service is caused by ever changing e>#ectations of the customer. his #oses a challenge of maintaining the $uality of service in every GencounterH. he e>#ectations are not <ust related to the #rofile of the customer but also to the occasion and moods, service firms find it difficult to meet the e>#ectations of the customers all the time !ithout affecting the $uality of service. Furthermore, the characteristic of #erish ability ma0es the service non"storable. hey e>ist !hile they are being delivered A consumed. his #oses the management, #roblem of managing the match and ca#acity #lanning. In the analysis !e have chosen to analy9e the consistency maintained in offering services relating to the human interaction as !ell as the #rocessing of the documents. his becomes im#ortant in the light of these services being offered in #re"sales and #ost sales scenario, and gauging the consistency levels at these t!o stages gives a fair idea of the consistency maintained in the services offered. Consistency in human interaction is observed in the #re"sales, order #rocessing and #ost sale stages. Con&enien-e he ob<ective of the customer care #ersonnel is to #rovide convenient and comfortable service and not to #ush the customer to ma0e the #urchase. 4hile basic facilities are made available, the customer care #ersonnel have to ma0e sure that customer doesnJt feel any inconvenience !hile the sales #rocess is on. Convenience does not only refer to the #hysical comforts such as seating, availability of rest rooms etc. but also to mental convenience a in hel#ing out the customer to reach a decision, #roviding relevant information to the customer for evaluating the various o#tions, ma0ing sure that it is one"sto# sho# 2additional accessories being made available li0e stereo systems, reverse gear bu99ers etc.3 e>#lain the basic functionally of the #roduct etc.

-7

It is hel#ful to offer customers information in #rinted formC good signing is very im#ortant at service delivery #oints and on self"service e$ui#ment. he customer care #ersonnel have to ma0e the first move and a##roach the visitors instead of ma0ing the visitors as0 for some guidance. he visitors have to be communicated ho! to use and ho! not to use the facilities at offer. he concentration has been focused on chec0ing the convenience of the customers on as#ects such as 1. -. imings est drive

,. )vailability of accessories 1. (ufficient fuel to reach the nearest #etrol station 5. 4ide range of finance o#tions made available at the sho!room 6. Im#arting the basic mechanical functionalities of the car.

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CHAPTER-4 OBDECTI:ES O8 THE STUDY

-9

OBDECTI:E O8 THE STUDY

o study and understand the 0ey service #arameters using Customer (atisfaction and reflect u#on the lo! #erforming areas= o study about the customer satisfaction on the services #rovided by the dealers. o study the o#inion of the customers regarding the availability and cost of s#are #arts. o study the o#inion of the o!ners of cars regarding its features li0e mileage, #rice etc. o study the effect of advertisement on the customers to #romote the #roduct. o study the customer satisfaction !ith usage of their cars. o study the information resources that the customer using before #urchasing the car.

,6

CHAPTER-E RESEARCH METHODOLO9Y

,1

RESEARCH METHODOLO9Y
?reliminary stage of study" a #ilot survey, #ersonal intervie! of sales consultants, #otential customers and e>isting customer numbering -6 !as conducted to arrive at 0ey deliverables !hich !ould ensure customer satisfaction. he research tool 2$uestionnaire3 !as designed by inducing the various $ueries, based on the 0ey deliverables, !hich !ould reflect the customer satisfaction. he research !as based on a study of a sam#le, si9ed 166, using sim#le random sam#le selected from the e>isting database of 7oda!ri :otors. he research included collection of data from the #rimary sources using the research tool 2$uestionnaire3. Final stage !as to analy9e, inter#ret and dra! conclusions from the data collected D#te Sou -es; P im# ! D#t#; he data !as collected directly from each and every customer. Pilot Su &e! ) #ilot survey !as conducted to understand the factors, !hich !ould #ositively influence the customer. ?ersonal Intervie!s totaling -6 !ere conducted for the sales team, #otential customers and the e>isting customers of 7oda!ri :otors. he factors scoring high in the intervie!s !ere considered to be the 0ey deliverables. Su &e! Rese# -%; he research !as done to learn about #eo#leJs #references and satisfaction of the 7oda!ri :otors customer.

,-

Rese# -% Tool; Fuestionn#i e 5' im# ! tool- #tt#-%ment 16 Intervie! through $uestionnaire method !as em#loyed for the research #ur#ose. he $uestionnaires !ere individually administered to each customer to ensure minimum sco#e for faulty data entry and error of understanding. his method also gave the intervie!er the sco#e of entering into a dialogue and understanding the customerJs #erce#tion better. he $uestionnaire tried to ca#ture the res#onses of the customers mainly on the 0ey deliverables, derived from the #ilot survey conducted, and a fe! $uestions have been included to gauge the level of satisfaction and to gain insight into customer e>#ectations.

Unst u-tu ed inte &ie+ he intervie! com#lemented the #rimary research tool and hel#ed delver into details of res#onses #rovided by the customers. his not only validated the res#onses of the customers but also hel#ed the intervie!er understand the e>#ectations of the customers. S#m'lin( Unit; In this study the sam#ling unit used is the e>isting customer base of 7oda!ri :otors. (election is made from the list of Customers during the last one year. S#m'lin( SiGe; (am#le si9e !as chosen to be 166. S#m'lin( P o-edu e; (im#le *andom (am#ling. In sim#le random sam#ling, each member of the target #o#ulation has the same chance of being selected for #artici#ation in the study. For a sam#le to truly be a sim#le random sam#le !e need to develo# a list or sam#ling frame that includes almost all of the #o#ulation, then from this !e randomly #ull names from the sam#ling frame using some 0ind of random method such as a random number table or a random number

,,

generator. Finally, numbers are assigned to all members of the #o#ulation and #ull the names of those members !hose numbers are #ulled from the table or generator. he biggest advantage to a sim#le random sam#le is that !e get a #retty good unbiased sam#le fairly easily. he biggest do!nside is that !e may not get all elements of the #o#ulation that are of interest.

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CHAPTER-H DATA ANALYSIS I INTERPRETATION

,5

16 )ge grou#=

(l.No ) 8 C /

)ge 7rou# -6 to ,6 ,6 to 16 16 to 56 )bove 56

No of #eo#le -+ -5 -5 --

IN &*?*& )I%N= From the above table sho!s that the res#ondents of the age grou# of years above 56 i.e. --, the ne>t grou# is 16"56 years i.e.-5, the remaining age grou#s are ,6"16 and -6",6 years having -5 and -+ res#ectively.

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-3 %ccu#ation

(l.No ) 8 C /

occu#ation &m#loyee 8usiness N*I %thers

No of #eo#le ,5 ,6 -6 15

IN &*?*& )I%N;From the above table sho!s that the res#ondents of the occu#ation are mostly em#loyees numbered ,5, business #eo#le numbering ,6, N*IJs -6 and others 15 #eo#le.

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,3 4hich model of hyundai car do you o!nO

(l.No ) 8 C / 8rand I16 ;erna )ccent (antro No of #eo#le ,5 -+ -6 17

Inter#retation;he follo!ing gra#h sho!s the number of cars in the total of 166 #ersons i16 is o!ned by ,5 #eo#le, and ;erna o!ned by -+ and )ccent o!ned by -6 #eo#le and (antro by 17 #eo#le.

,+

13 4hich feature is the best one in .yundai carO

(l.No ) 8 C / & F feature :ileage ?rice 8rand (tyle :ileage K brand :ileage K style N% of #eo#le -1 + 1+ --6 +

Inter#retation;he follo!ing gra#h sho!s the number of !hat features you consider !hile you #urchase in the total #ersons :ileage by -1, and ?rice by + and 8rand by 1+, (tyle by --, :ileage and 8rand by -6. )nd :ileage and (tyle by +.

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53 .o! do you feel !hen you drive .yundai carO

(l.No ) 8 C /

*)NI 7ood 8etter 8est ?oor

No of #eo#le ,6 -6 16 16

IN &*?*& )I%N= From the above table sho!s that the res#ondents of the e>#erience of #eo#le !hile driving .yundai cars is good i.e. ,6, the ne>t grou# is better i.e.-6, the remaining #eo#le !ho feel best is 16 and others !ho feel #oor e>#erience are 16 res#ectively.

16

63 )re you satisfied !ith your vehicleJs mileageO (l.No ) 8 ;ehicleJs mileage Res No No of #ercentage 75 -5

Inter#retation;he follo!ing gra#h sho!s the number of #eo#le !ho satisfied !ith mileage of the vehicle in the total res#ondentJs res#onse given by #ersons Res by 75 and No by -5.

11

73
(l.No ) 8

4ill you recommend .yundai #roduct to anybodyO

*ecommendation Res No No of #ercentage 66 16

Inter#retation;he follo!ing gra#h sho!s the number of #eo#le !ho recommend .yundai cars in the total #ersons yes by 66 and No by 16.

1-

+3 4hat do you thin0 about hyundaiJs customer serviceO

(l.No ) 8 C /

*)NI &>cellent 7ood 8etter ?oor

No of #eo#le 16 -6 ,6 16

Inter#retation=
From the above table sho!s that the res#ondents of the #eo#le about .yundaiJs customer service is e>cellent i.e. 16, the ne>t grou# is good i.e.-6, the remaining #eo#le !ho feel better is ,6 and others !ho feel #oor e>#erience are 16 res#ectively.

1,

93 .o! do you feel about com#anyJs res#onse to!ards customersO

(l.No ) 8 C / (ource &>cellent 7ood 8etter ?oor No of #ercentage 15 -5 15 15

Inter#retation;he follo!ing gra#h sho!s the number of res#onse of customers to!ards the #roducts from the total number of 166 #eo#le good are -5, &>cellent 15, better 15 and #oor are 15.

11

16. /id you receive the #roduct on delivery timeO

(l.No ) 8 /elivery time Res No No of #ercentage 76 ,6

Inter#retation;he follo!ing gra#h sho!s the number of customers !ho receive the #roduct on delivery time is yes by 76 customers and no by ,6 customers.

15

113 )re you satisfied !ith com#anyJs after sales serviceO

(l.No ) 8 )fter sales service (atisfied Not satisfied No of #ercentage +6 -6

Inter#retation=
he number of customers !ho satisfyAnot satisfied !ith the after sales service of the com#any from a number of 166 customers is satisfied +6 and not satisfied -6.

16

1-. .o! do you feel the e>#erience at sho! roomO (l.No ) 8 8est 8rand )mbassadors (atisfied Not satisfied No of #ercentage 71 -9

Inter#retation;he follo!ing gra#h sho!s the consumerJs e>#erience at sho! room the number of customers !ho satisfy is 71 and !ho does not satisfy is -9

17

1,3 4ere you offered test driveO (l.No ) 8 est drive Res No No of #eo#le +, 17

Inter#retation;he follo!ing gra#h sho!s the number of customers !ho !ere offered test drive for the #roduct is yes by +, customers and no by 17 customers.

1+

113 .ave you satisfied !ith the usage of .yundai carsO

Sl)no ) 8 C

Custome es'onse Fully satisfied Just satisfied Not satisfied

'e -ent#(e 71 -6 9

IN &*?*& )I%N=
he follo!ing table sho!s that the res#ondents !ho satisfied !ith dealerJs #erformance is better 71, good -6 and ?oor is 9.

19

CHAPTER-0 8INDIN9SJ SU99ESTIONS I CONCLUSIONS

56

CONCLUSIONS AND 8INDIN9S

7oda!ri :otors en<oys a high #atronage from its customers. :ost of the customers had a good e>#erience of sho##ing at 7oda!ri :otors. he satisfaction levels can also measured !ith the level of recommendations to friends and associatesC it is evident that more than +6F customers are satisfied !ith the service offered at 7oda!ri :otors. he #robability that the customers !ould re#eat that #urchase at the same sho!room is high, !hich is a good sign. he sale satisfaction inde> of 7oda!ri :otors sho!room is +.1 on scale of ten 2refer #age ,-3, !hich is e>ce#tionally good, the sho!room should #ersist on high levels of commitment to maintain the good image it has created. he industry ((I 2-66,3 is 161 out of 1-6 according to J / ?o!er )sia #acific. )nd .yundai scores 165 out of 1-5. In the intervie! it !as found that the customers are ha##y about the training #rograms under ta0en by the sho!room, !hich train the customers to negotiate minor brea0do!ns comfortably. It has been observed that -5F of customers have re#orted a slac0 in the delivery #rocess.
51

his is the only area of concern that has emerged form the city.

SU99ESTIONS
he overall sales satisfaction inde> from the study reveals that the com#any is #erforming very !ell and customers buying are much satisfied !ith the service given to them. he only cou#le #roblem noticed are= (ome of the customers have com#lained about the slac0 in the delivery #rocess and timings. herefore, this is the area !hich I recommend to the sho!room to focus a little bit more. It needs to im#rove its delivery #rocess and time. Need to become little $uic0 and fast. (ome of the customers have also com#lained about the after #urchase services #rovided by the sho!room. &ven though the com#laints are minor, the sho!room needs to resolve the customer after #urchase service issues in order to achieve customer satisfaction.

5-

Experience at Showroom
EXECELLE NT 20% POOR 5%

SATISFACT ORY 15%

GOOD 60%

GOOD SATISFACTORY EXECELLENT POOR

5,

Recommendation to Friends
DEFINITEL MAY NOT Y NOT 8% 7%

DEFINITEL Y 25%

MAY 60%

MAY DEFINITELY DEFINITELY NOT MAY NOT

51

REPEAT PURCHASE
DEFINITEL Y DEFINITEL 16% Y NOT 5% MIGHT 14%

PROBABL Y 65%

PROBABLY MIGHT DEFINITELY NOT DEFINITELY

55

CHAPTER-/ LIMITATIONS O8 THE STUDY

56

Limit#tions;
he study is restricted in sco#e of o!ing to the follo!ing limitations= /ue to constraint of time only city of Dudhiana is selected and so it cannot claim to be a com#rehensive study of the #o#ulation. he sam#le si9e is restricted to 166 res#ondents.

57

ANNEKURE

5+

CUSTOMER SATIS8ACTION INDEK

Det#ils; ;ehicle No= SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS :odel= SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS Customer Name= SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS ele#hone No= SSSSSSSSSSSSSSSSSSSSSS:obile=SSSSSSSSSSSSSSSSSSSSSSSS /ate= SSSSSSSSSSSSSSSSSSCustomer signature= SSSSSSSSSSSSSSSSSSSSSSSS

1. )ge grou# a3 -6",6 -. %ccu#ationO a3 &m#loyee b3 business c3 N*I d3 others b3 ,6"16 c3 16"56 d3 )bove 56

,. 4hich model of .yundai car do you o!nO a3 (antro b3 ;erna c3 )ccent d3 i16 e3 i-6

1. 4hich feature is the best one in .yundai carO a3 ?rice b3 style c3 mileage d3 $uality e3 mileage $uality e3 :ileage K style 5. .o! do you feel !hen you drive .yundai carO a3 7ood a3 Res 83 better c3 best b3 No d3 ?oor 6. )re you satisfied !ith your vehicle mileageO

7. 4ill you recommend .yundai #roduct to anybodyO

59

a3 Res

b3 No

+. 4hat do you thin0 about .yundaiJs customer serviceO a3 &>cellent b3 7ood c3 8etter d3 ?oor

9. .o! do you feel about com#anyJs res#onse to!ards customersO a3 &>cellent b3 7ood c3 8etter d3 ?oor

16. /id you receive the #roduct on delivery timeO a3 Res b3 No

11. are you satisfied com#anyJs after sales serviceO a3 (atisfied b3 not satisfied

1-. .o! do you feel the e>#erience at the sho!roomO a3 (atisfied b3 not satisfied

1,. 4ere you offered test driveO a3 Res b3 No

11. )re you satisfy !ith their usage of the carO a3 Fully satisfied b3 <ust satisfied c3 not satisfied

15. ?lease give your commentsAsuggestions to enable us to im#rove satisfaction of customers at this .yundai authori9ed sho!room. SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS

66

BIBLIO9RAPHY

61

BIBLIO9RAPHY

Boo$s; ?rinci#les of mar0eting= I% D&* )*:( *%N7. :ar0eting :anagement= ?.IDI? I% D&*. 2)nalysis, ?lanning Im#lementation and Control3 (ervices :ar0eting = ) ) :c 7*)4 .IDD. :ar0eting *esearch = 7.C.8&*I. *esearch :ethodology= I% .)*I. C.*. "ebsites;
htt#=AA!!!.<d#o!er.co.<# !!!.bus.umich.edu htt#=AA!!!.as$.org

6-

H!und#i C# models

S#nt o

A--ent

6,

I12

9ETL

:ERNA

SONATA

61

TUCSON

i12

ELANTRA

65

66