SUMMER INTERNSHIP PROJECT REPORT

“A STUDY ON CUSTOMER SATISFACTION OF TOYOTA CAR WITH SPECIAL

REFERENCE TO OM TOYOTA KOTA”

Submitted in partial fulfillment of the requirement for the award

Of

“BACHELOR OF BUSINESS ADMINISTRATION”

(Session 2016-2018)

SUBMITTED BY

Nishtha Shaktawat
BBA 5th Semester
UID:-K13566

Under the Guidance Of

Miss Mobina Akhtar
(Assistant Professor)
School of Commerce and Management

Commerce and Management Department

CAREER POINT UNIVERSITY, KOTA

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 DECLARATION

I hereby declare that the present report entitled “A STUDY ON CUSTOMER

SATISFACTION OF TOYOTA CAR WITH SPECIAL REFERENCE TO OM
TOYOTA KOTA” is based on my original work and indebtedness to other work/publication
has been duly acknowledged at relevant place.

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 ACKNOWLEDGEMENT

I would like to express my sincere thanks to Head of the Department (Dr. Upasana Tyagi)
and my project guide (Ms. Mobina Akhtar) for guiding me right from the inception till the
successful completion of the project. I sincerely acknowledge her for extending their valuable
guidance, support for literature, critical reviews of project and this project and this report and
above all for the morale support she provided me at all stages of the project.

I am really thankful to them.

Secondly, I would also like to thank my parents and friends who helped me a lot in finalizing
this project within the limited time frame.

Thank you,

Nishtha Shaktawat

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 EXECUTIVE SUMMARY

This Research Report is based on automobile sector as the automobile sector is growing at a
very good pace. The reason behind selecting Toyota is that Toyota Motor Corporation is one
of the world’s leading automaker, offering a full range of models, from mini vehicles to large
trucks.

The report title is “The study on Customer Satisfaction of Toyota Cars with special
references to Om Toyota”. Due to the limited resources and time constraints, only 100
sample sizes was taken and data is selected from the customers of Kota city only.

The research was conducted through collection of primary and secondary data. Secondary
data was collected through various websites, automobile magazines and other reliable
sources. Primary data was collected through a well framed questionnaire of which later a
detailed analysis was done using various statistical IT tools like MS Word and MS Excel.

Getting a new customer is difficult, and then retaining a current customer is more difficult. It
is estimated that the cost of attracting a new customer is five times the cost of retaining
current customer. It requires a good deal of efforts to induce satisfied customer to switch
away from their current preference.

Toyota has a very good market share in the Kota. The company is offering good services
which are reflected on the satisfaction of the customer. Majority of the customers are satisfied
with the performance and the facilities provided by the Toyota.

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TABLE OF CONTENTS
Training Certificate……………………………………………….…………….

Declaration……………………………………………………………………..

Acknowledgement………………………………………………………….…..

Executive Summary……………………………………………………………

Table of contents………………………………………………………………..

1. Introduction of the Industry

1.1 Indian Automobile History….………………………………………........8

1.2 Snippet………………………………………………………………......10

2. Organization Profile

2.1 Company Vision & Mission………………………………………….......12

2.2 Registered and Corporate Offices…………………………………….….13

2.3 Toyota Motor Introduction……………………………………………....14

2.4 Toyota Motor Corporation………….……………………………………14

2.5 History of Toyota…………………………………………………...........14

2.6 Company Overview…………………………………………....................16

2.7 Toyota Philosophy……………………………………………………......16

2.8 Operations………………………………………………………………..17

2.9 Finance…………………………………………………………………...18

2.10 Financial Information…………………………………………………...18

2.11 Outcomes……………………………………………………………….19

2.12 Products………………………………………………………………...19

3. Conceptual Framework

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 3.1 Customer Satisfaction / Dissatisfaction……………………………………22

3.2 Factors leading to Satisfaction…………………………………………….22

3.3 Response of Dissatisfaction………………………………………….........23

3.4 Concept…………………………………………………………………….24

3.5 Customer Satisfaction in 7 steps………………………………………......24

3.6 Customer Satisfaction Process…………………………………………….24

3.7 Customer Satisfaction Measurement Tools…………………………….….25

3.8 Defining Customer Satisfaction……………………………………...........26

3.9 Importance of Customer Satisfaction………………………………..........26

3.10 Porter’s Five Forces Model………………………………………………27

4. Research Methodology

4.1 Meaning of research…………………………………………………..........29

4.2 Research Methodology…………………………………………….............29

4.3 Objective of Study………………………………………………………....29

4.4 Research Design…………………………………………………………....30

4.5 Limitation of the study…………………………………………………….31

5. Data analysis……………………………………………………………….......33

6. Findings………………………………………………………………………...55

7. Conclusion

7.1Suggestion and Recommendation…………………………………………57

8. Learning………………………………………………………………………59

9. Bibliography…………………………………………………………………...61

10. Appendices……………………………………………………………………..63

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 CHAPTER-1

INTRODUCTION

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1.1 INDIAN AUTOMOBILE HISTORY
During the 1920s, cars exhibited design refinement such as pressed-steel wheels, and four-
wheel brakes.

The origin of automobile is not certain. In this section of automobile history, we will only
discuss about the phases of automobile in the development and modernization process since
the first car was shipped to India. We will start automotive history from the point of time.
The automobile industry has changed the way people live and work. The earliest of modern
cars was manufactured in the year 1895. Shortly the first appearance of the car followed in
India. As the century turned, three cars were imported in Mumbai (India). Within decade
there were total of 1025 cars in the city.

The dawn of automobile actually goes back to 4000 years when the first wheel was used for
transportation in India. In the beginning of 15th century Portuguese arrived in China and the
interaction of the two cultures led to a variety of new technologies, including the creation of a
wheel that turned under its own power. By 1600s small steam-powered engine models was
developed, but it took another century before a full-sized engine-powered vehicle was
created.

The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank
Duryea. It was the first internal-combustion motor car of America, and it was followed by
Henry Ford’s first experimental car that same year.

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One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost
that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an
aluminum body. It was usually driven by chauffeurs and emphasis was on comfort and style
rather than speed.

During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel
wheels, and four-wheel brakes. Graham Paige OC Phaeton of 1929 featured an 8-cylinder
engine and an aluminum body.

The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited
more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than
their predecessors. The 1940s saw features like automatic transmission, sealed-beam
headlights, and tubeless tires.

The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300 SL. It
was built on compact and stylized lines, and was capable of 230kmh (144moh). This was the
Indian automobile history, and today modern cars are generally light, aero-dynamically
shaped, and compact.

In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that
Indian automobile industry will achieve mass motorization status.

The high growth in the Indian economy has resulted in many foreign car manufacturers
entering the Indian market. Rolls Royce, Bentley and Maybach are examples of the few high
end automobile manufacturers to enter India in the recent years. Chennai is the automobile
capital in India. It has a lot of foreign direct investment in automobile industry. Chennai is
often called as the ‘Detroit of Asia’.

The Indian automobile industry has matured over the years and is now highly competitive
with major Japanese, Korean, European and Indian companies all holding significant market
shares. In addition to foreign models like the Hyundai Santro and the Ford Escort various
indigenous cars like the Tata Indica and the Mahindra and Mahindra SUV, the Scorpio are
also popular. These cars exported to the markets worldwide. An electric car is also
manufactured by a local company, REVA. Tata Motors plans to produce the world’s first air
poured in partnership with MDI of France.

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The passenger vehicle sales in Indian crossed the one million mark in 2005. This segment
grows at 10-15% annually. Around 85% of the cars sold in India are financed as against the
global overage of 70%. In neighboring China, only 15-20% vehicles are financed. There are
only three cars in India for 1000 people in the United States. Goldman Sachs has predicted
that India will have the maximum number of cars on the planet by 2050 overtaking the
United States.

A well developed transport network indicates a well developed economy. For rapid
developed a well-developed and well-knit transportation system is essential. As Indian’s
transport network is developing at a fast pace, Automobile Industry is growing too. Also, the
industry has strongly background and forward linkages and hence provides employment to a
large section of the population. Thus the role of Automobile Industry cannot be overlooked in
Indian Economy. All kinds of vehicle are produced by the Automobile Industry. It includes
the manufacture of trucks, buses, passenger, cars, defense vehicles, two wheelers etc. The
industry can be broadly divided into the cars manufacturing, two wheelers manufacturing and
heavy vehicle manufacturing units.

1.2 SNIPPETS

 The first automobile in India rolled in1897 in Bombay.

 India is being recognized as potential emerging auto market.
 Foreign players are adding to their investments in Indian auto industry.
 Within two-wheelers, motorcycles contribute 80% of the segment size.
 Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
 Tata motor dominates over 60% of the Indian commercial vehicle market.
 2/3rd of auto component production is consumed directly by OEMs.
 India has the largest three-wheeler market in the world.
 India has the largest two-wheeler manufacturer in the world.
 India is the second largest tractor manufacturer in the world.
 India is the fifth largest commercial vehicle manufacturer in the world.
 The number one gold motorcycle manufacturer is in India.

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 CHAPTER-2

ORGANISATION PROFILE

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2.1 OM METALS AND INFRAPROJECTS LTD.

VISION and MISSION

“Good People, Good Scope, Great Project”

Late Dr. T. C. Kothari, Founder and Chairman. A renowned industrialist from the industrial
town of Rajasthan and founder of the Om Kothari Group of Companies in 1967. He is
responsible for bringing India’s Industries to the fore front of the world with his technology
of improving the Hydro mechanical system and equipments. Today the company leads the
Hydro Mechanical and power sector especially in the fields of Dooms and irrigation. He
started the company with meager resources, today the company has reached the Rs.5 billion
mark and the level is still rising.

Dr. Kothari has shown that technical process could harness nature’s water power. His total
dedication towards education was achieved when he completed his PhD from Vardhman
Mahaveer Open University, Kota (Rajasthan) at the ripe age of 75 and has now submitted a
rate D. Litt Thesis to Agra University, being a philanthropist he started numerous other
activities under the Segis of the Om Kothari foundation, a Charitable trust. The Om Kothari
group works under his supervision and guidance. He has paved the path for his Sons and his
grandsons to walk in his footsteps.

Mr. C. P. Kothari, has been with the company for over 35 years and has contributed
extensively towards its growth. He has been playing a key role in the overall growth of the
company in various fields that the company has spread. Main amongst them is the SEZ. He
has an important role in the Om Kothari Institute of Research and Management where
students are imparted with education on MBA, BBA, etc. He has also been a Director on the
board of RIICO. He holds a Bachelors degree in Commerce.

He handles all the manufacturing side of the company with coolness, agility, but with steel
strength. He controls all the factories, the site with a charismatic approach. Getting work
done and in schedule in his prowess. Most of the works that have been completed
successfully and in time is only because of D. P. Kothari. He handles each day as importantly
as the next one. His immense experience in executing turnkey projects contributes to the
company’s successful completion of projects. He heads the technical and execution group

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within the company and has been the backbone in all the ventures of the company. He holds a
Bachelors Degree in Mechanical Engineering.

2.2 REGISTERED AND CORPORATE OFFICES

 Om Metals Infra Projects Limited

W-4/D, 204-205, Kothari Bhawan,
New Delhi-110062
Fax : 91-11-29593204
E-Mail : Info@m/ommetals.com/kothari@vsnl.com

 Om Metals Infra Projects Limited

Kothari Bhawan, 30-31 New Grain Mandi
Kota-324007 (Rajasthan)
Telephone : 0744-2364998, 2364101
Fax : 0744-2369407

 Hotels Om Tower
Church Road, M.I. Road,
Jaipur
Telephone : 0141-4049999
E-mail : Info@hotelomtower.com
Website : hotelomtower.com322

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2.3 Toyota Motor Industries

Toyota Motor Corporation is one of the world’s leading automakers, offering a full range of
models, from mini vehicle to large trucks. Global sales of its Toyota and Lexus brands,
combined with those of Daihatsu and Hino, totaled 6.78 million units in CY 2003. Beside its
own 12 plants and 11 manufacturing subsidiaries and affiliates in Japan. Toyota has 45
manufacturing companies in 26 countries/ locations, which produce Lexus- and – brand
vehicles and components. As of March 2003. Toyota employees 264000 people worldwide
(on a consolidated basis) and market vehicles in more than 140 countries. Automotive
business, including sales finance, accounts for more than 90% of the company’s total sales,
which came to a consolidated -16.05 trillion in the fiscal year to march 2003. Diversified
operations include telecommunication, prefabricated housing and leisure boats.

2.4 Toyota Motor Corporation

A multinational corporation headquartered in Japan, and is currently the world’s largest

automaker. Toyota employs approximately 316000 people worldwide.

2.5 History of Toyota

Toyota started in 1933 as a division of Toyota. Automatic loom works devoted to the
production of automobiles under the direction of the founder’s son, Kiichiro Toyota. It’s first
vehicle were the A1 passenger car and the G1 in 1935. Toyota motor company was
established as an independent and separate company in 1937.

In 1934, while still a department of Toyota industries it created its first product type A engine
and in 1936 its first passenger car was the Toyota AA. The company was eventually founded
by Kiichiro Toyota in 1937 as a spinoff from his father’s company Toyota industries to create
automobiles. Toyota also owns and operate Lexus and Scion brands and has a majority
shareholding stake in Daihats and Hino Motors, and minority shareholding in fuji heavy
industries. The company includes 922 subsidiaries.

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2.6 Toyota Motor Corporation

Toyota Jidosha Kabushiki-gaisha

Type Public (TYO: 7203) and (NYSE: TM)

Founded 1937
Founder (s) Kiichiro Toyota
Headquarters Toyota city, Japan :
Tokyo, Japan
Kiichiro Toyota (Founder), Fujio Cho (Chairman and Representative
Director), Katsuhiro Nokagawa (Vice Chairman and Representative
Director)
Key people Katsuaki Watanable (President and Representative Director),
Shoichiro Toyota (Honorary Chairman)
Industry Automotive
Robotics Financial Services
Biotechnology
Products Economy /main stream/luxury vehicles
Revenue USD $264.7 billion (2018)
Operating Income USD $21.53 billion (2018)
Net Income USD $23.20 billion (2018)
Total Equity USD $174.34 billion (2018)
Employees 369124
Subsidiaries 606
Website Toyota Worldwide

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2.6 “Company Overview”

The Toyota Motor Company was awarded its first Japanese quality control award at the start
of the 1980s and began participating in a wide variety of motorsports. Due to the 1973 oil
crisis consumer in the lucrative US market began turning to small cars with better fuel
economy. American car manufacturers had considered small economy cars to be an “entry
level” product, and their small vehicles were made to a low level of quality in order to keep
the price low.

With ever 30 million sold, the corolla is one of the most popular and best selling in the world.

2.7 Toyota Philosophy

Toyota’s management philosophy has evolved from the company’s origin and has been
reflected in the terms “Lean Manufacturing” and just in time production which it was
instrumental in developing. The Toyota way has four components-

 Long-term thinking as a basis for management decisions.

 A process for problem solving.
 Adding value to the organization by developing its people.
 Recognizing that continuously solving root problems drives organizational learning.
 The Toyota way incorporates the Toyota Production System.

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2.8 Operations

Toyota has grown to a large multinational corporation from where it started and expanded to
different worldwide markets and countries. It displaced GM and become the world’s largest
automaker for the year 2008.

Toyota has introduced new technologies including one of the first mass produced hybrid gas
electric vehicle, of which it says it has sold/million globally (2007-06-07), Advanced Parking
Guidance System (automatic parking) a four speed electronically controlled automatic with
buttons for power and economy shifting, and an eight speed automatic transmission. Toyota,
and Toyota produced Lexus and Scion automobiles, consistently rank near the top in certain
quality and reliability surveys, primarily JO Power and consumer reports.

In 2005, Toyota, combined with its half owned subsidiary Daihatsu Motor Company,
produced 8.54 million vehicles about 500000 fewer than the number produced by GM that
year.

In 2008 Fortune global 500. Toyota motor is the fifth largest company in the world. Since,
the recession of 2001, it has gained market share in the United States. Toyota’s market share
struggles in Europe where its Lexus brand has three tenths of one percent market share,
compared to nearly two percent market share as the US luxury segment leader.

Toyota currently maintains over 16% of the US market share and is listed second only to GM
in terms of volume. Toyota century is the official state car of the Japanese imperial family,
namely for the Emperor of Japan Akhito.

Toyota was hit by the global financial crisis of 2008 as it was forced in December 2008 to
forecast its first annual loss in 70 years. In January 2009 it announced the closure of all its
Japanese plants for 11 days to reduce output and stocks of unsold vehicles.

The Camry is assembled in several facilitates around the world including Australia, China,
Taiwan, Japan, Malaysia, Philippines, Russia, Thailand, India and the United States.

Toyota has factories in most of the parts of the world, manufacturing or assembleming
vehicles for local markets, including the Corolla. Toyota has manufacturing or assembly
plants in Japan, Australia, India, Canada, Indonesia, Poland, South Africa, Turkey, Colombia,
the United Kingdom, the United States, France, Brazil, Portugal and more recently India,

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Argentina, Czech Republic, Mexico, Malaysia, Thailand, Egypt, China, Vietnam, Venezuela,
the Philippines and Russia.

In 2002, Toyota initiated the “Innovative International Multi Purpose Vehicle” project (IMV)
to optimize global manufacturing and supply systems for pick up trucks and multipurpose
vehicles, and to satisfy market demand in more than 140 countries worldwide.

2.9 Finance

Toyota Financial Services Corporation provides financing to Toyota customers.

Agricultural biotechnology

Toyota invests in several small startup businesses and partnership in biotechnology

including-

 P.T. Toyota Bio Indonesia in Lampung, Indonesia.

 Australian Afforestation Private Limited in Western Australia and Southern
Australia.
 Toyota floritech Coporation Limited in Rokkasho-Mura, kamikita district, Armori
Prefecture.
 Sichuan Toyota Nitan Development Corporation Limited in Sichuan, China.
 Toyota Roof Garden Corporation in Miyoshi-Cho, Sichi Prefecture.

2.10 Financial Information

Toyota is publically traded on the Tokyo, Osaka, Nogaya, Fukuoda, and Saccoau exchanges
under company code TYO: 7203. In addition, Toyota is foreign listed on the New York Stock
exchange under NYSE: TM and on the London Stock exchange under LSE: TYT. Toyota has
been publically traded in Japan since 1949 and internationally since 1999.

 As reported on its consolidated financial statements. Toyota has 540 consolidated

subsidiaries and 226 affiliaries.
 Toyota Motor North American (100% -2004)
 Toyota Tsusko-Trading company for the Toyota group
 Toyota Canada Incorporation owned via Toyota Motor North America.
 Daihatsu Motor Company (51.2% - March 31, 2006)

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  Lexus 100% (1989)
 Scion 100% (2003)
 DENSO(24.74% - September 30,2006)
 Toyota Industries (23.51% - March 31, 2006)
 Full Heavy Industries (16.66% - June 28,2008)
 PT Toyota Motor Manufacturing Indonesia (95% - 2003)

2.11 Outcomes

Toyota is now the world’s largest automaker in terms of sales, net worth, revenue and profit.
According to Stephen Spier, Toyota has been an industry leader since the 1960s and has
consistently been more productive than its competitors. The company has been widely
recognized for the quality of its product and production systems. Toyota believes the role of
purchasing is through long term and stable production of quality products at the lowest price
in a fast and timely manner. (Toyota company sustainability report 2006).

2.12 Products

Vehicles:

 Avensis
 Corolla verso
 Hi-Ace
 Land Cruiser 200
 Quantum
 RAV 4
 Yaris
 Prius
 Land Cruiser 70 station
 Wagon
 Auris
 Corolla
 Hi-Lux
 Land cruiser 70 pick up
 Prado
 Fortuner
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  Yaris Sedan
 Avanza

Products

3,637 products from 1317 companies.

Toyota Competitors

Toyota competitors are primarily in the Auto manufacturing industry. Toyota also competes
in the lending and material handling equipment manufacturing sectors.

Toyota competitive landscape includes-

 Ford Motor
 General Motor
 Honda

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 CHAPTER-3

CONCEPTUAL FREAMEWORK

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 3.1 “Customer Satisfaction/ Dissatisfaction”

Satisfaction is the expected outcome. It signifies a confirmation that performance of the

chosen alternative is consistent with its prior belief and expectations and dissatisfaction on
the other hard signifies on absence of such conformation. However
satisfaction/dissatisfaction is not an emotion. The evaluation of the emotion is done on the
basis of expectation made by the consumer prior to the purchase. These expectations may be:

 Nature and performance of product or service

 Cost and effort spent before obtaining the product
 Social benefit or costs accrued to the customers.

With these three expectations emotion is evaluated.

3.2 Factors leading to satisfaction/ dissatisfaction:

 Occasional use of brand/ product

 Cost/investment involved in choice making
 Number of outcomes and their desirability
 Prior experiences
 Nice of the product/brand
 Personal expectation and norms

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  Group expectation and norms
 Cultural norms
 Outcomes Endurance- the duration for which the outcome persists
 Time lag between the choice and use of the products.

3.3 Response of Dissatisfied Customer

Dissatisfaction may lead to:

• Discontinuing purchase patronage

• Complaints intervention

• Negative word of mouth

• Seeking redress legal from customers action.

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3.4 Concept

“Customer is the king”, some marketing guru rightly says this proverb. In the present
scenario the customer is the driving force for the all activities going on in the organization. If
an organization wants to grow at a remarkable pace then it has to take a good care of its
customer.

Customer Satisfaction is the individual’s perception of the performance of the products or

services in the relation to his or her expectation.

A customer could experience one of the three brand level of satisfaction. If the performance
falls short of expectations, the customer is dissatisfied, if the performance matches the
expectation the customer is satisfied, and if the performance exceeds expectation, the
customer is highly satisfied, pleased or delighted.

Therefore, customer is delighted or pleased when he is provided goods and services adore his
expectations and then he is highly satisfied or delighted.

3.5 Customer satisfaction in 7 steps:

 Encourage face-to-face dealings

 Respond to messages promptly and keep your client informed
 Be friendly and approachable
 Have a clearly-defined customer service policy
 Attention to detail (also known as “the little Niceties”)
 Anticipate your clients need and go out of your way to help them
 Honor your promises

3.6 Customer Satisfaction Process

The steps customer satisfactions are as follows:

 Determine who your customers are.

 Determine what attributes of your products/ services are most important to your
customer.
 Arrange these attributes in order of importance indicated by your customers.
 Determine your customer’s level of satisfaction with each these attributes.

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  The results of customer’s feedback to your processes.
 Develop a set of metrics (measurement) that tell how you are performing and which
areas within the process are having the greatest impact on performance.
 Implement measurement at the lowest possible level in the organization.
 Work on these areas within the process that offer the greatest opportunity to improve.
 Update customer input and feedback on continual basis.
 Maintain open continual communication with all stakeholders on what is being done
why, what results are expected and when.
 Aggregate metrics organization wide into a format for management review on
continual basis.

3.7 Customer Satisfaction Measurement Tools

In this method a survey is conducted for finding out the attitude of customer and also any
new suggestion is welcomed.

Customer satisfaction measurement includes Quantitative and Qualitative measures, as well

as variety of contact methods with customers.

Qualitative research data collection instruments:

 Depth interview
 Focus interview

Quantitative research data collection instruments:

 Observation method
 Survey method
 Survey by questionnaire
 Telephonic survey
 Personal interview or field survey

There are several levels of customers –

 Dissatisfied customer - looking for someone else to provide product or services.

 Satisfied customer – open to the next better opportunity.
 Loyal customer – return despite offers by the competition.

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In terms of result at an operational level, Total customer satisfaction means:

 Meeting or exceeding customer requirements,

 Backed by extraordinary service and support,
 Exhibiting flawless quality,
 Delivered precisely when needed, and
 Competitively priced.

3.8 Defining customer satisfaction

Because the concept of customer satisfaction is new to many companies, it’s important to be
clear on exactly what’s meant by the term.

Customer satisfaction is the state of mind that customers have about a company when their
expectations have been met or exceeded over the lifetime of the product or service. The
achievement of customer satisfaction leads to company loyalty and product repurchase. There
are some important implications of this definition:

 Because customer satisfaction is a subjective, no quantitative state, measurement

won’t be exact and will require sampling and statistical analysis.
 Customer satisfaction measurement must be undertaken with an understanding of the
gap between customer expectations and attribute performance perceptions.
 There should be some connection between customer satisfaction measurement and
button-line results.

3.9 Importance of customer satisfaction

Satisfying customers is the only way to stay competitive in today marketplace. Customers
have an expectation of service and product performance that must be met. The balancing act
between what customers want and what your company can provide must be optimized in
order to maximize your firm’s long term profits. This occur in two ways –

 With precise information, companies can focus on issues that truly drive customer
satisfaction. A directed focus often leads to cost reduction because companies can
emphasize improvement in areas of customer concern and de-emphasize focus in
other areas.

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  Focusing on motivators of customer satisfaction leads to more loyal customers, who
tend to be the most profitable customers (i.e., repeat business is usually the most
profitable). An inclusive customer satisfaction and loyalty program can, therefore, be
considered a source of future profits.

3.10 Porter’s Five Forces Model

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 CHAPTER-4

RESEARCH METHODOLOGY

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4.1 Research

Researches in common parlance refer to a search for knowledge. Once can also defines
research as a scientific and systematic search for pertinent information on a specific topic. In
fact, research is an art of scientific investigation. Research is an academic activity and as such
the term should be used in a technical sense.

According to Clifford Woody research comprises defining and redefining problems,

formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deduction and reaching conclusions; and at last carefully testing the conclusion to
determine whether they fit the formulating hypothesis.

“Research provides the basis for nearly all government policies in our economic system”

4.2 Research Methodology

The following order concerning various steps provides a useful procedural guidelines
regarding the research methodology –

 Formulating the research problem

 Extensive literature survey
 Developing the hypothesis
 Preparing the research design
 Determining sample design
 Collecting the design
 Execution of the project
 Analysis of data
 Generalizations and interpretation
 Preparation of the report or presentation of the results.

4.3 Objectives of study

Fixing the objective is like indentifying the star. The objective decides where we want to go,
what we want to achieve and what is our goal or destination. The various objectives are as
follows –

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  To study the opinion of the owner of car regarding its usage like performance of the
car, fuel consumption, driving comfort etc.
 To study about the customer satisfaction on the services provided by the sales
executive.
 To know the overall satisfaction level of customers.

4.4 Research Design

Universe Toyota car owner of Kota city

Sample Unit Car owner
Sample Size 100 respondents
Type of Research Exploratory research/ Descriptive Research
Sampling Approach Convenience Sampling
Data Collection Primary data and secondary data
Source of Data Primary data : questionnaire, interview, schedule
Secondary data : books, journals, websites and report
Research Tools This includes-
a) tables
b) charts (pie-chart, bar graph)
c) 5-pointer Likert scale

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4.5 Limitations of the study

 Sample size being smaller i.e. 100, May not lead to the generalized result for a longer
population base.
 The study is limited to Kota city only.
 Because the information collected from the customers by meeting at company service
centers, during the business hours or at the parking lot where they may or will be busy
with some other work, the information extracted would not be sufficient from the
respondents.
 Customers sometimes find it difficult to express their feeling due to various barriers
and thus the result may be far from reality.
 The time and money are also big constraints in the course of the research process.

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 CHAPTER-5

Data Analysis & Interpretation

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TABLE – A

AGE DISTRIBUTION

Age Group Frequency

20-30 29
30-40 40
40-50 22
Above 50 9
Total 100

Age
45
40
35
30
25
20
15
10
5
0
20-30 30-40 40-50 Above 50
Frequency 29 40 22 9

Interpretation:

 29 respondents were in 20-30 age groups.

 40 respondents were in 30-40 age groups.
 22 respondents were in 40-50 age groups.
 9 respondents were in above 50 age group.

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TABLE-B

GENDER

Gender Frequency Percentage

Male 91 91%
Female 9 9%
Total 100

Gender

9%

Male

Female

91%

Interpretation:

 91% respondents were in male category.

 9% respondents were in female category.

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TABLE-C

CURRENT OCCUPATION

OCCUPATION FREQUENCY PERCENTAGE

Business 52 52%
Service 18 18%
Professional 14 14%
Others 16 16%
Total 100

Occupation
Business Service Professional Others Total

16%

14%
52%

18%

Interpretation:

 52% respondents were in business category.

 18% respondents were in service category.
 14% respondents were in professional category.
 16% respondents were in other category.

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TABLE-D

ANNUAL INCOME LEVEL

ANNUAL INCOME FREQUENCY PERCENTAGE

LEVEL
Below 5,00,000 20 20%
500000-1000000 44 44%
1000000-1500000 22 22%
Above 1500000 14 14%
Total 100

Annual Income Level

Below 5 Lacs 5-10 Lacs 10-15 Lacs Above 15 Lacs

14%
20%

22%

44%

Interpretation:

 20% respondents were in below 5 lakh category.

 44% respondents were in 5-10 lakh category.
 22% respondents were in 10-15 lakh category.
 14% respondents were in above 1500000 category.

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TABLE-1

 Toyota cars owned by customers

Brand of Cars FREQUENCY PERCENTAGE

Liva 14 14%
Cross 6 6%
Corolla Altis 10 10%
Innova 50 50%
Fortuner 20 20%
Total 100

Cars
Liva Cross Corolla Altis Innova Fortuner

14%
20%
6%

10%

50%

Interpretation:

 14% respondents own Liva car.

 6% respondents own Cross car.
 10% respondents own Corolla Altis car.
 50% respondents own Innova car.
 20% respondents own Fortuner car.

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TABLE-2

 Type of Transmission

Transmission Frequency
type
Manual 70
Automatic 30
Total 100

Transmission Type
80

70

60

50

40

30

20

10

0
Manual Automatic
Frequency 70 30

Interpretation:

 70% respondents were using manual transmission.

 30% respondents were using automatic transmission.

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TABLE-3

 For how long customers are using these cars?

Using experience of car FREQUENCY PERCENTAGE

0-1 year 32 32%
1-3 years 46 46%
3-5 years 18 18%
More than 5 years 4 4%
Total 100

Using experience of car

50
45
40
35
30
25
20
15
10
5
0
0-1 year 1-3 years 3-5 years More than 5 years
Frequency 32 46 18 4

Interpretation:

 32% respondents were using cars from 0-1 year.

 46% respondents were using cars from 1-3 years.
 18% respondents were using cars from 3-5 years.
 4% respondents were using cars more than 5 years.

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TABLE-4

 Rate satisfaction level after experiencing the car

o Performance of the car

Performance of car Frequency

Highly disagree 0
Disagree 0
Neutral 10
Agree 32
Highly agree 58
Total 100

Performance of car
70

60

50

40

30

20

10

0
Highly Disagree Disagree Neutral Agree Highly Agree
Frequency 0 0 10 32 58

Interpretation:

 0% respondents said highly disagree with the performance of the car.

 0% respondents said disagree.
 10% respondents said neutral.
 32% respondents said agree.
 58% respondents said highly agree.

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 o Maintenance Cost

Maintenance Cost Frequency

Highly disagree 0
Disagree 0
Neutral 28
Agree 50
Highly agree 22
Total 100

Maintenance Cost
60

50

40

30

20

10

0
Highly Disagree Disagree Neutral Agree Highly Disagree
Frequency 0 0 28 50 22

Interpretation:

 0% respondents said highly disagree with the maintenance cost.

 0% respondents said disagree.
 28% respondents said neutral.
 50% respondents said agree.
 22% respondents said highly agree.

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 o Driving Comfort

Driving Comfort Frequency

Highly disagree 0
Disagree 0
Neutral 10
Agree 36
Highly agree 54
Total 100

Driving Comfort
60

50

40

30

20

10

0
Highly Disagree Disagree Neutral Agree Highly Agree
Frequency 0 0 10 36 54

Interpretation:

 0% respondents said highly disagree with the driving comfort.

 0% respondents said disagree.
 10% respondents said neutral.
 36% respondents said agree.
 54% respondents said highly agree.

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 o Fuel Consumption

Driving Comfort Frequency

Highly disagree 0
Disagree 2
Neutral 32
Agree 36
Highly agree 50
Total 100

Fuel Consumption
60

50

40

30

20

10

0
Highly Disagree Disagree Neutral Agree Highly Agree
Frequency 0 2 32 50 16

Interpretation:

 0% respondents said highly disagree with the driving comfort.

 2% respondents said disagree.
 32% respondents said neutral.
 50% respondents said agree.
 16% respondents said highly agree.

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 o After sale service by dealer

After Sale Service Frequency

Highly disagree 0
Disagree 2
Neutral 34
Agree 46
Highly agree 18
Total 100

After Sale Service

50
45
40
35
30
25
20
15
10
5
0
Highly Disagree Disagree Neutral Agree Highly Agree
Frequency 0 2 34 46 18

Interpretation:

 0% respondents said highly disagree with the driving comfort.

 2% respondents said disagree.
 34% respondents said neutral.
 46% respondents said agree.
 18% respondents said highly agree.

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Average Method

Factors Average

Performance of Car 1*0+2*0+3*10+4*32+5*58/100 = 4.48

Maintenance Cost 1*0+2*0+3*28+4*50+5*22/100 = 3.94

Driving Comfort 1*0+2*0+3*10+4*36+5*54/100 =4.44

Fuel Consumption 1*0+2*2+3*32+4*50+5*16/100 = 3.8

After Sale Services by Dealer 1*0+2*2+3*34+4*46+5*18/100 = 3.8

Factors Average Score Rank Satisfaction level

Performance of Car 4.48 1 Agree
Maintenance Cost 3.94 3 Neutral
Driving Comfort 4.44 2 Agree
Fuel Consumption 3.8 4 Neutral
After sale services by 3.8 5 Neutral
dealer

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 Average Score
4.6

4.4

4.2

3.8

3.6

3.4
Performance of Maintenaance Fuel After Sale
Driving Comfort
Car Cost Consumption Service
Frequency 4.48 3.94 4.44 3.8 3.8

Interpretation:

 Based on Satisfaction level

 After analyzing the response of 100 customer, it is observed that
 The factors performance of car and driving comfort are satisfied level of
satisfaction
 The factors maintenance cost, fuel consumption and after sale services by
dealer are neutral level of satisfaction
 Based on Rank
 After analyzing the rank of average score of 100 customers for all factors
under study following interference has been made
 First rank is observed for performance of the car
 Last rank is observed for after sale services by dealer

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TABLE-5

 Sale Executive Attitude (greeting, seating, selling)

SALES EXECUTIVE FREQUENCY PERCENTAGE

ATTITUDE
Very Good 20 20%
Good 52 52%
Average 28 28%
Poor 0 0%
Total 100

Frequency
Very Good Good Average Poor

0%

20%
28%

52%

Interpretation:

 20% respondents found sales executive attitude very good.

 52% respondents found sales executive attitude good.
 28% respondents found sales executive attitude average.
 0% respondents found sales executive attitude poor.

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TABLE-6

 Delivery time offered by Toyota

DELIVERY TIME FREQUENCY PERCENTAGE

2-3 weeks 44 44%
1 month 38 38%
2 months 14 14%
More than 2 months 4 4%
Total 100

Deliver Time Offered

50
45
40
35
30
25
20
15
10
5
0
More than 2
2-3 weeks 1 month 2 months
months
Frequency 44 38 14 4

Interpretation:

 44% respondents were offered 2-3 weeks delivery time.

 38% respondents were offered 1 month delivery time.
 14% respondents were offered 2 months delivery time.
 4% respondents were offered more than 2 months delivery time.

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TABLE-7

 Satisfied by Delivery time

Satisfaction by Frequency Percentage

delivery time
Yes 80 80%
No 20 20%
Total 100

Delivery Time Satisfaction

Yes No

20%

80%

Interpretation:

 80% respondents were satisfied by delivery time.

 20% respondents were not satisfied by delivery time.

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TABLE-8

 Complaints noted and attended by the service in charge

Complaints noted and Frequency Percentage

attended
Yes 74 74%
No 26 26%
Total 100

Complaint noted & attended

80

70

60

50

40

30

20

10

0
yes no
Frequency 74 26

Interpretation:

 74% respondent’s complaints were noted and attended by service in charge.

 26% respondent’s complaints were not noted and attended by service in charge.

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TABLE-9

 Satisfied with the service provided by Toyota

SERVICE FREQUENCY PERCENTAGE

SATISFACTION
Very satisfied 15 15%
Satisfied 60 60%
Varies 19 19%
Dissatisfied 6 6%
Total 100

Service Satisfaction
70

60

50

40

30

20

10

0
Very Satisfied Satisfied Varies Dissatisfied
Frequency 15 60 19 6

Interpretation:

 15% respondents were very satisfied by service provided by the Toyota.

 60% respondents were satisfied.
 19% respondents were varies.
 6% respondents were dissatisfied.

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TABLE-10

 Prefer to buy next car from Toyota

Future buying from Frequency Percentage

Toyota
Yes 72 72%
No 28 28%
Total 100

Future buying from Toyota

80

70

60

50

40

30

20

10

0
Yes No
Frequency 72 28

Interpretation:

 72% respondents would like to purchase another car from Toyota.

 28% respondents would not like to purchase another car from Toyota.

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TABLE-11

 Suggesting Toyota cars to family and friends

Suggesting Toyota Frequency Percentage

cars
Yes 88 88%
No 12 12%
Total 100

Suggesting to other
100
90
80
70
60
50
40
30
20
10
0
Yes No
Frequency 88 12

Interpretation:

 88% respondents would like to suggest their family and friends to buy a car from
Toyota.
 12% respondents would not like to suggest their family and friends to buy a car from
Toyota.

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 6.

FINDINGS

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  Satisfaction level of the owner of car regarding following factors-
 Performance of the car:
Majority of the respondents (90) were satisfied with the performance of the
car.
 Maintenance Cost :
Majority of the respondents (72) were satisfied with the maintenance cost.
 Driving Comfort :
Majority of the respondents (90) were satisfied with the driving comfort.
 Fuel Consumption :
Majority of the respondents (66) were satisfied with the fuel consumption.

 Customer satisfaction regarding service provided by the sales executive

 Perception regarding attitude of the sales executive:
Majority of the respondents (72) found sales executive attitude good.
 Satisfaction level as per delivery time:
Majority of the respondents (80) were satisfied by delivery time.
 Perception regarding complaints noted and attended:
Majority of the respondents (74) found that their complaints is noted and
attended by the service in charge.

 Overall satisfaction level of customers

 Satisfaction level regarding service provided by Toyota:
Majority of the respondents (75) were satisfied with the services provided by
the Toyota.
 Preference for purchase of next car from Toyota:
Majority of the respondents (72) would like to purchase another car from
Toyota.
 Suggesting to friends and family:
Majority of the respondents (88) would like to suggest their family and friends
to buy a car from Toyota.

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 7.

CONCLUSION

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7.1 Suggestion & Recommendation

The overall sales satisfaction index from the study reveals that the company is performing
very well and customers buying are much satisfied with the service given to them.

The only couple of problem noticed are:

 Some of the customers have complaints about the after sales service provided by the
showroom. Even though the complaints are minor, the showroom need to resolve the
customer’s after sales service issues in order to achieve full customer satisfaction.
 Some of the customers have also complained about the slack in the delivery process
and timings. Therefore, this is the area which I recommend to the showroom to focus
a little bit more. It needs to improve its delivery process and time. Need to become
little quick and fast.
 More staff is required as customers had to wait in peak season.

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 LEARNINGS

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  Understood the key service parameters using Customer Satisfaction and reflect upon
the performing areas.
 Got to learn about the customer satisfaction on the services provided by the dealers.
 Got to learn the opinion of the owners of cars regarding its features like performance,
delivery time and price.
 Got to know the effect of advertisement on the customers to promote the product.
 The customer satisfaction with usage of their cars.
 Got to know the information resources that the customer using before purchasing the
car.
 Analyze the research measures of experiences of the customer.
 Got to know about the gains insights into customer expectations.

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 BIBLIOGRAPHY

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Books

 Romaswamy, V.S. and Namakumari, S. (2009).

Marketing Management (4th edition), New Delhi; Macmillan.
 Chhabra, T.N. and Grover, S.K. (2011).
Marketing Management (4th re-edition), New Delhi; Dhanpat Rai and Co.
 Panda, T.K; (2009).
Marketing Management (2nd re-edition), New Delhi; Excel Book.
 Armstrong, G.and Kotler, Philip (2003).
Marketing: An introduction (6th edition), Singapore, Pearson education
hall.
 Kothari,C.R. (2011). Research methodology (2nd re-edition), New Delhi,
New age international (P) limited, Publishers.
 Gupta, S.P. (2005). Statistical methods (34th edition), New Delhi; Sultan
chand and Sons.

Journals

 Mc Douglas, G.H.G and Lévesque (2000), Customer satisfaction with

services; Journal of services
Marketing, volume 14, number 5, pp. 392-410.

Websites

 https://en.wikipedia.org/wiki/toyota
 https://en.wikipedia.org/wiki/toyota_kirloslarmotor
 https://automobiles.mapsofindia.com/cars/motortoyota
 https://www,hubspot.com/customer_satisfaction
 https://www.toyota.com/awards.html
 https://autoeconomictimes.indiatimes.com

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 Appendices

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 “A study on customer satisfaction of Toyota car with special
reference to Om Toyota”

QUESTIONNAIRE

Personal Details:
A. Name:
B. Age
o 20 to 30
o 30 to 40
o 40 to 50
o Above 50
C. Gender
o Male
o Female
D. Occupation
o Business
o Service
o Professional
o Other
E. Annual Income Level
o Below 5 lakh
o 5 lakh to 10 lakh
o 10 lakh to 15 lakh
o Above 15 lakh

1. At present which Toyota car do you own?

o Liva
o Cross
o Corolla Altis
o Innova
o Fortuner
2. Which type of transmission you are currently using?
o Manual
o Automatic
3. For how many years you are using this car?
o 0-1
o 1-3
o 3-5
o Above

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 4. Please rate your satisfaction level after experiencing your car on scale of 1-5
(5-highly agree, 1- highly disagree)
o Performance of the car

1 2 3 4 5

o Maintenance cost

1 2 3 4 5

o Driving comfort

1 2 3 4 5

o Fuel consumption

1 2 3 4 5

o After sale service

1 2 3 4 5

5. How was the sales executive attitude towards you? (Greeting, seating, selling)
o Very good
o Good
o Average
o Poor
6. What was the delivery time offered by Toyota?
o 2-3 weeks
o 1 month
o 2 months

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 o More than 2 months
7. Were you satisfied by deliver time?
o Yes
o No
8. Were all the complaints noted and attended by the service in charge?
o Yes
o No
9. Are you satisfied with the service provided by Toyota?
o Very satisfied
o Satisfied
o Varies
o Dissatisfied
10. Do you prefer to buy next car from Toyota?
o Yes
o No
11. Would you suggest your family and friends to buy a car from Toyota?
o Yes
o No
12. What additional services you require from Toyota to improve the service level?

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