Coca Cola Report

CUSTOMER SATISFACTION
Chapter-1
INTRODUCTION
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INTRODUCTION
CUSTOMER SATISFACTON
Meaning:
Customer satisfaction, a term frequently used in marketing, is a measure of how
product and services supplied by a company meet or surpass customer expectation.
Definition:
1.“Customer satisfaction is defined as the degree of satisfaction provided by
the goods and services of a company. This is usually gauged by the number of
customers making repeat purchases. Customer satisfaction is critical if a company
register high sales and profits”.
2.The degree to which there is match between the customer's expectations of
the product and the actual performance of the product.
The broad definition of services implies that intangibility is a key determinant
of whether an offering is a service. While this is true, it is also true that very few
products are purely intangible or totally tangible. Instead, services tend to be more
intangible than manufactured products, and manufactured products tend to be more
tangible than services. For example, the fast-food industry while classified as a service,
also has many tangible components such as the food" the packaging, and so on.
Automobiles, while classified within the manufacturing sector, also supply
many intangibles, such as transportation. Throughout this text, when we refer to
services we will be assuming the broad definition of services and acknowledging that
there are very few “pure Services, or "pure goods." The issues and approaches we
discuss are directed toward those offerings that lie on the right side, the intangible side,
of the spectrum.
As suggested earlier, intangibles arc not produced only in the service sector of
the economy. Manufacturers such as Boeing Airplane Company and Ford Motor
Company also produce products on the right end of the spectrum, both for sale to
external consumers and to support internal production processes.
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For example, Boeing has provided consulting services and demand forecasting
services for its airline customers. And within Boeing large departments (such as data
processing and legal services) provide Internal services to the organization.
About the customer satisfaction
Customer satisfaction is a term frequently used in marketing. It is a measure of

how products and services supplied by a company meet or surpass customer
expectation. Customer satisfaction is defined as "the number of customers, or
percentage of total customers, whose reported experience with a firm, its products, or
its services (ratings) exceeds specified satisfaction goals." In a survey of nearly 200
senior marketing managers, 71 percent responded that they found a customer
satisfaction metric very useful in managing and monitoring their businesses.
It is seen as a key performance indicator within business and is often part of a

Balanced Scorecard. In a competitive marketplace where businesses compete for
customers, customer satisfaction is seen as a key differentiator and increasingly has
become a key element of business strategy.
"Within organizations, customer satisfaction ratings can have powerful effects.

They focus employees on the importance of fulfilling customers’ expectations.
Furthermore, when these ratings dip, they warn of problems that can affect sales and
profitability. . .. These metrics quantify an important dynamic. When a brand has loyal
customers, it gains positive word-of-mouth marketing, which is both free and highly
effective."
Therefore, it is essential for businesses to effectively manage customer

satisfaction. To be able do this, firms need reliable and representative measures of
satisfaction.
"In researching satisfaction, firms generally ask customers whether their

product or service has met or exceeded expectations. Thus, expectations are a key factor
behind satisfaction. When customers have high expectations and the reality falls short,
they will be disappointed and will likely rate their experience as less than satisfying.
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For this reason, a luxury resort, for example, might receive a lower satisfaction
rating than a budget motel even though its facilities and service would be deemed
superior in 'absolute' terms."
The importance of customer satisfaction diminishes when a firm has increased

bargaining power. For example, cell phone plan providers, such as AT&T and Verizon,
participate in an industry that is an oligopoly, where only a few suppliers of a certain
product or service exist. As such, many cell phone plan contracts have a lot of fine print
with provisions that they would never get away if there were, say, a hundred cell phone
plan providers, because customer satisfaction would be far too low, and customers
would easily have the option of leaving for a better contract offer.
There is a substantial body of empirical literature that establishes the benefits of

customer satisfaction for firms.
Measuring customer satisfaction
Organizations are increasingly interested in retaining existing customers while

targeting non-customers, measuring customer satisfaction provides an indication of
how successful the organization is at providing products and/or services to the
marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction will vary from person to person and
product/service to product/service. The state of satisfaction depends on a number of
both psychological and physical variables which correlate with satisfaction behaviors
such as return and recommend rate. The level of satisfaction can also vary depending
on other options the customer may have and other products against which the customer
can compare the organization's products.
Because satisfaction is basically a psychological state, care should be taken in

the effort of quantitative measurement, although a large quantity of research in this area
has recently been developed. Work done by Berry, Brodeur between 1990 and 1998
defined ten 'Quality Values' which influence satisfaction behavior, further expanded by
Berry in 2002 and known as the ten domains of satisfaction. These ten domains of
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satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access,

Environment, Inter-departmental Teamwork, Front line Service Behaviors,
Commitment to the Customer and Innovation. These factors are emphasized for
continuous improvement and organizational change measurement and are most often
utilized to develop the architecture for satisfaction measurement as an integrated
model. Work done by Parasuraman, Zenithal and Berry between 1985 and 1988
provides the basis for the measurement of customer satisfaction with a service by using
the gap between the customer's expectation of performance and their perceived
experience of performance. This provides the measurer with a satisfaction "gap" which
is objective and quantitative in nature. Work done by Cronin and Taylor propose the
"confirmation/disconfirmation" theory of combining the "gap" described by
Parasuraman, Zenithal and Berry as two different measures (perception and expectation
of performance) into a single measurement of performance according to expectation.
According to Garbrand, customer satisfaction equals perception of performance divided
by expectation of performance.
The usual measures of customer satisfaction involve a survey with a set of

statements using a Likert Technique or scale. The customer is asked to evaluate each
statement and in term of their perception and expectation of the performance of the
organization being measured.
Trends in the service sector

Although we often hear and read that many modern economies are dominated
by services, the United States and other countries did not become service economies
overnight. As early as 1929,55 percent of the working population was employed in the
service sector in the United States, and approximately 54 percent of the gross national
product was generated by services in 1948. That the trend toward services has
continued, until in 1999 services represented 78 percent of the gross domestic product
(GDP) and 80 percent of employment. Note also that these data do not include internal
services provided within a manufacturing company (such as IBM or Boeing) or services
that these manufacturers sell externally.
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Customer expectations of service

Customer expectations are beliefs about service delivery that function as
standards of reference points against which performance is judged. Because customers
compare their perceptions of performance with these reference points when evaluating
service quality, thorough knowledge about customer expectations is critical to services
marketers. Knowing what the customer expects is the first and possibly most critical
step in delivering quality service. Being wrong about what customers want can mean
losing a customer's business when another company hits the target exactly. Being
wrong can also mean expending money,
Time, and other resources on things that don't count to the customer. Being
wrong can even mean not surviving in a fiercely competitive market.
Among the aspects of expectations that need to be explored and understood for
successful services marketing are the following: What types of expectation standards
do customers hold about services? What factors most influence the formation of these
expectations? What role do these factors play in changing expectations? How can a
service company meet or exceed customer expectations?
Factors that influence customer expectations of service

Because expectations play such a critical role in customer evaluation of
services, marketers need and want to understand the factors that shape them. Marketers
would also like to have control over these factors as well. But many of the forces that
influence customer expectations are uncontrollable. In this section of the chapter we try
to separate the many influences on customer expectations.
Sources of desired service expectations

The two largest influences on desired service level are personal needs and
philosophies about service. Personal needs those states or conditions essential to the
physical or psychological well-being of the customer, are pivotal factors that shape
what we desire in service. Personal needs can fall into many categories, including
physical, social, psychological, and functional. A fan who regularly goes to baseball
games right from work, and is therefore thirsty and hungry hopes and desires that the
food and drink vendors will pass by his section frequently, where as a fan who regularly
has dinner elsewhere has a low or zero level of desired service from the vendors. A
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customer with high social and dependency needs may have relatively high expectations
for a hotel's ancillary services, hoping, for example, that the hotel has a bar with
resulting in substantial unnecessary charges to customers. The $27-million Sears paid
settling complaints and the additional loss of business all resulted from extreme
dissatisfaction of its customers over the unfair treatment.
Other consumers, family members, and co-workers

In addition to product and service features and one's own individual feelings
and beliefs, consumer satisfaction is often influenced by other people.22 For example,
satisfaction with a family vacation trip is a dynamic phenomenon, influenced by the
reactions and expressions of individual family members over the duration of the
vacation. Later, what family members express in terms of satisfaction or dissatisfaction
with the trip will be influenced by stories that are retold among the family and selective
memories of the events. Similarly, the satisfaction of the rafters in Figure 4.2 is certainly
influenced by individual perceptions, but it is also influenced greatly by the
experiences, behavior, and views of the other rafters. In a business setting, satisfaction
with a new service or technology-for example, a new customer relationship
management software service-will be influenced by individuals' personal experiences
with the software itself, but also by what others say about it in the company, how others
use it and feel about it, and how widely it is adopted in the organization. In Chapter 12
we will come back to this topic as we look at strategies for involving and managing
other consumers to maximize satisfaction in the service experience.
Customer Satisfaction Indexes

Because of the importance of customer satisfaction to firms and overall quality
of life, many countries how have a national index that measures and tracks customer
satisfaction at a macro level.23 Many public policymakers believe that these measures
could and should be used as tools for evaluating the health of the nation's economy,
along with traditional measures of productivity and price. Customer satisfaction
indexes begin to get at the quality of economic output, whereas more traditional
economic indicators tend to focus only on quantity. The first such measure was the
Swedish Customer Satisfaction Barometer introduced in 1989. Throughout the 1990s
similar indexes were introduced in Germany (Deutsche Kundenbarometer, or DK, in
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1992), the United States (American Customer Satisfaction Index, ACSI, in 1994), and
Switzerland (Swiss Index of Customer Satisfaction, SWICS, in 1998).
The American Customer Satisfaction index (ACS...)

The ACSI, developed by researchers at the National Quality Research Canter
at the University of Michigan, is a measure of quality of goods and services as
experienced by consumers. The measure tracks customer perceptions across 200 firms
representing all major
Economic sectors, including government agencies. Within each industry group,
major industry segments are included" and within each industry the largest companies
in that industry are selected to participate. For each company approximately 250
interviews are conducted with current customers. Each company receives an ACSI
score computed from its customers' perceptions of quality, value, satisfaction,
expectations, complaints, and future loyalty.
Importance
Customer satisfaction is important because it provides marketers and business

owners with metric that they can use to manage and improve their businesses.
Here are the top six reasons why customer satisfaction is so important:
 It’s a leading indicator of consumer repurchase intentions and loyalty .

 It’s a point of differentiation.
 It reduces customer churn.
 It increases customer lifetime value.
 It reduces negative word of mouth
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INDUSTRY PROFILE
A soft drink (also called soda, pop, coke, soda pop, fizzy drink, tonic, seltzer,
mineral, sparkling water, lolly water or carbonated beverage) is a beverage that
typically contains water (often, but not always, carbonated water), usually a sweetener
and usually a flavoring agent. The sweetener may be sugar, high-fructose corn syrup,
fruit juice, sugar substitutes (in the case of diet drinks) or some combination of these.
Soft drinks may also contain caffeine, coloring preservatives and other ingredients
Soft drinks are called "soft" in contrast to "hard drinks" (alcoholic beverages).
Small amounts of alcohol may be present in a soft drink, but the alcohol content must
be less than 0.5% of the total volume if the drink is to be considered non-alcoholic.
Fruit juice, tea and other such non-alcoholic beverages are technically soft drinks by
this definition but are not generally referred to as such.
Soft drinks may be served chilled or at room temperature, and some, such as Dr.
Pepper, can be served warm.
The first marketed soft drinks in the Western world appeared in the 17th
century. They were made of water and lemon juice sweetened with honey. In 1676, the
Compagnie des Limon rates of Paris was granted a monopoly for the sale of lemonade
soft drinks. Vendors carried tanks of lemonade on their backs and dispensed cups of
the soft drink to thirsty Parisians
The entry of carbonated soil drink into the Indian soil is relatively new. The
credit for introducing branded soil drink goes to pure drinks private Ltd, Delhi. Later
this company became the franchised bottler of Coca-Cola Export Corporation.
Accordingly, in 1950 Coca - Cola made its first debut in the Indian market. This is the
story about the origin of soft drinks in India.
After Coca-Cola, Pepsi entered into the market. The exit of Pepsi made coke the
undisputed leader in the soft drinks market. This company too was forced to leave India
due to its non-compliance with the rules and regulations of the Government in 1977.
The exit of coke becomes a boom to national manufactures and all the players started
increasing their business. Among the many national players like pure drinks Me
Dowels, Modem foods, Spencer's and parley, Parle emerged as the leader in the Indian
soft drink market. It is believed that by the end of 1989. Parle captured more than 75%
of the national soft drink market.
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In 1990, Pepsi reentered India and started making more noise in the market. All
the same, it grabbed considerable market share from parley. Besides this, Coke also
reentered India after 16 years of exile, fearing that, it cannot cling to its market
leadership. Parle sold itself to Coca-Cola for $40 Million November, 1993.
By buying over local competition the two American Cola giant share cleared up
the arena and are packing all their power behind building the Indian franchise of their
global girdling brands. If Pepsi invests Rs. 300 core, Coke will be investing more than
that and vice versa. The total investment is of a size and scale that the Rs. 3048 cork
soft drink businesses have never seen before.
Both players see enormous potential in this country. Where swigging a
carbonated beverage is still considered as treat virtually a luxury. Consequently, by
world standards India's per capita consumption of three servings is rock bottom less
even than over neighbors Pakistan and Bangladesh. Where is four times as much so,
the cola giants feel that per caps can only go up and up. As incomes improve so do life
styles a pattern they have seen in many of the 195 countries they sell their universal
products.
This report is highly focused on providing insights about the Carbonated Soft
Drinks in India where the market consists of cola products and non-cola products of
which the cola segment constitutes 62%, non-cola segment is bagged with 30% and
Energy Drinks Segment is 8% which has been growing at a CAGR of 29% from 2009.
Furthermore, the urban areas report a dramatically high consumption of aerated drinks
as compared to rural areas, where Delhi is on the top of the list for Carbonated Soft
Drink consumption. The report reveals the market share and size of the top players in
the Industry being Coke and Pepsi with a combined Market share of 95%.
The research further reveals that the Western region accounts for 32% of the
Carbonated Soft drink Industry in India, in spite of a never ending rivalry, between the
major players. Porter’s five force model has been effectively used to understand the
competition situation prevailing in the Industry coupled with PEST analysis to
understand the macro economic conditions of the Industry
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Market Segment of Food Industries

Food Industries Shares
Fruits, Vegetables, Meat, Fish, 40%
Oil
Dairy Products 5%
Grain Mill Products 10%
Soft drinks 12%
Fruit 5%
Beverages 20% beverages
Others 3%
Others 25%
TOTAL 100%
Market Share of Various Food Processing Industries
Market Segment
Fruits, Vegetables,
Meat, Fish, Oil
Dairy Products
25%
40%
Grain Mill Products
20% Beverages
10% Others
5%
Market Share of Different Beverages
Share
others
15%
fruit Soft
beverages drinks
25% 60%
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COMPANY PROFILE
COCA – COLA Pvt. Ltd

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system developed
that Coca-Cola became the world-famous brand it is today
1894 … A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage
called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling
Coca-Cola.
Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler
thanked him but took no action. One of his nephews already had urged that Coca-Cola
be bottled, but Candler focused on fountain sales.
1899 … The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a
business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas
and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of
the United States -- for the sum of one dollar. A third Chattanooga lawyer, John T.
Lupton, soon joined their venture.
1916 … Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with
imitators. A group representing the Company and bottlers asked glass manufacturers to
offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre
Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few
packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the
most recognized icons in the world - even in the dark!
1920s … Bottling overtakes fountain sales
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S.
Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in
1923. A few years later, open-top metal coolers became the forerunners of automated
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vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain
sales.
1920s and '30s … International
expansion
Led by Robert W. Woodruff, chief
executive officer and chairman of the
Board, the Company began a major
push to establish bottling operations
outside the U.S. Plants were opened in
France, Guatemala, Honduras, Mexico,
Belgium, Italy and South Africa. By the
time World War II began, Coca-Cola
was being bottled in 44 countries.
1950s … Packaging innovations

For the first time, consumers had
choices of Coca-Cola package size and
type-the traditional 6.5-ounce Contour
Bottle, or larger servings including 10-,
12- and 26-ounce versions. Cans were
also introduced, becoming generally
available in 1960.
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1960s … New brands introduced

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and
Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke,
followed by POWERADE and Fruitopia in the 1990s. Today scores of other brands are
offered to meet consumer preferences in local markets around the world.
1990s … New and growing markets

Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the Company invested
heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion
was committed to new bottling facilities in Africa.
21st Century …
The Coca-Cola bottling system grew up with roots deeply planted in local communities.
This heritage serves the Company well today as consumers seek brands that honor local
identity and the distinctiveness of local markets. As was true a century ago, strong
locally based relationships between Coca-Cola bottlers, customers and communities are
the foundation on which the entire business grows.
At the core of our business in India, as in the rest of the world is our production and
distribution network, which we call the “Coca-Cola system”. Globally, the Coca-Cola
system includes our Company and more than 300 bottling partners. The Coca-Cola
Company manufactures and sells concentrate and beverage bases. Our authorized
bottlers combine our concentrate or beverage bases as the case may be with sweetener
(depending on the product), water or carbonated water to produce finished beverages.
These finished beverages are packaged in authorized containers bearing our trademarks
-- such as cans, refillable glass bottles, non-refillable PET bottles and tetra packs -- and
are then sold to wholesalers or retailers. In India, additionally, the Company also sells
certain powdered beverage mixes such as Vitingo.
Our beverages reach our ultimate consumers through our customers: the grocers,
small retailers, hypermarkets, restaurants, convenience stores and millions of other
businesses that are the final points of distribution in the Coca-Cola system. What truly
defines the Coca-Cola system, and indeed what makes it unique among businesses, is
our ability to create value for our customers and consumers.
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In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-
Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells
concentrate and beverage bases and powdered beverage mixes, a Company-owned
bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen licensed
bottling partners of The Coca-Cola Company, who are authorized to prepare, package,
sell and distribute beverages under certain specified trademarks of The Coca-Cola
Company; and an extensive distribution system comprising of our customers,
distributors and retailers. Coca-Cola India Private Limited sells concentrate and
beverage bases to authorized bottlers who use these to produce our portfolio of
beverages. These authorized bottlers independently develop local markets and
distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous
other businesses. In turn, these customers make our beverages available to consumers
across India.
Key People:
Founder: Asa Griggs Candler
President and CEO: James Quincey
Headquarters: Midtown Atlanta, Georgia
Key People INDIA

CEO: Christina Ruggiero
Headquarters: Gurgaon, Haryana
COKE PRODUCTS IN INDIA:
 Coca-Cola
 Diet Coke
 Thums Up
 Sprite
 Fanta
 Limca
 Maaza
 Burn
 Kinley Water
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 Kinley Soda
 Schweppes
 GEORGIA Gold
 Minute Maid
 Pulpy Orange
 Nimbu Fresh
 Guava
 Apple
 Mango
 Mixed Fruit
 100% Grape Juice
 100% Apple Juice
 100% Orange Juice
Out of which
 Coca-Cola, Maaza, Kinley water, Sprite, Minute Maid, GEORGIA Gold and
Kinley soda are Coca-Cola products
 Thumbs up, Limca, Fanta are the products of Parle which are purchased by the
Coca-Cola Co.
 Schweppes was launched in India in 1999 after the international takeover of
the brand from Cadbury Schweppes.
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Chapter-2
REVIEW OF LITERATURE
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REVIEW OF LITERATURE
This chapter attempts to review different literatures on customer satisfaction

with reference to hotel industry and presents various studies made regarding the issues
related with hotel industry and customer satisfaction.
Customer satisfaction – reviews
Paul S. Goldner (2006)

a customer is any organization or individual with which you have done business over
the past twelve months”.
Grigoroudis, E and Siskos, Y (2009)

provide definition for ‘customer’ upon two approaches: With reference to loyalty, “A
customer is the person that assesses the quality of the offered products and services”
and on process oriented approach, “the customer is the person or group that receives
the work output”
“Customer means the party to which the goods are to be supplied or service
rendered by the supplier”.
Customer Satisfaction – Definitions
Vavra, T.G. (1997)

Satisfaction has been broadly defined as a satisfactory post-purchase
experience with a product or service given an existing purchase expectation.
Howard and Sheth (1969)

satisfaction as, “The buyer’s cognitive state of being adequately or inadequately
rewarded for the sacrifices he has undergone”
Westbrook and Reilly (1983),

customer satisfaction is “an emotional response to the experiences provided by,
associated with particular 32 products or services purchased, retail outlets, or even
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molar patterns of behaviour such as shopping and buyer behaviour, as well as the
overall market place”.
Oliver (1981)
Put forward a definition as, “the summary psychological state resulting when the
emotion surrounding disconfirmed expectations is coupled with the consumers’ prior
feelings about the consumption experience”
Hunt (1977)
An evaluation rendered that the (consumption) experience was at least as good as it
was supposed to be”. products or services purchased, retail outlets, or even molar
patterns of behaviour such as shopping and buyer behaviour, as well as the overall
market place”
Engel and Blackwell (1982)

Customer/consumer satisfaction is “an evaluation that the chosen alternative is
consistent with prior beliefs with respect to that alternative”.
Wilton (1988)
The consumer’s response to the evaluation of the perceived discrepancy
between prior expectations (or some other norm of performance) and the actual
performance of the product/service as perceived after its consumption”.
Berry and Parasuraman (1991)

Argue that since customers’ satisfaction is influenced by the availability of
customer services, the provision of quality customer service has become a major
concern of all businesses. Customer satisfaction is typically defined as a post
consumption evaluative judgement concerning a specific product or service.12 it is the
result of an evaluative process that contrasts pre-purchase expectations with perceptions
of performance during and after the consumption experience.
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Oliver (1981)
Customer satisfaction as a customer’s emotional response to the use of a product
or service.
Anton (1996)
“Customer satisfaction as a state of mind in which the customer’s needs, wants
and expectations throughout the product or service life have been met or exceeded,
resulting in subsequent repurchase and loyalty”. Merchant Account Glossary points out
that, “Customer satisfaction is an ambiguous and abstract concept and the actual
manifestation of the state of satisfaction will very from person to person and
produce/service to produce/service.....”
Schiffman and Kanuk (2004)

customer satisfaction as “The individual’s perception of the performance of the
product or service in relation to his or her expectations”.
Woodruff and Gardian (1996)

“Satisfaction, then, is the evaluation or feeling that results from the
disconfirmation process. It is not the comparison itself (i.e., the disconfirmation
process), but it is the customer’s response to the comparison. Satisfaction has an
emotional component.”
Hung (1977)
Satisfaction is a kind of stepping away from an experience and evaluating it …
One could have a pleasurable experience that caused dissatisfaction because even
though it was pleasurable, it wasn’t as pleasurable as it was supposed to be. So
satisfaction / dissatisfaction isn’t an emotion, it’s the evaluation of the emotion”.
Oliver (1977)
“Satisfaction is the consumer’s fulfillment response. It is a judgment that a
product or service feature, or the product of service itself, provided (or is providing) a
pleasurable level of consumption- related fulfillment, including levels of under- or
over-fulfilment”.
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Some of the definitions available from web are compiled below:

 Customer satisfaction, a business term, is a measure of how products and
services supplied by a company meet or surpass customer expectation”.
 Customer satisfaction is an ambiguous and abstract concept and the actual
manifestation of the state of satisfaction will vary from person to person and
product/service to product/service”.
 Comparison of expectations versus perception of experience”
 A customer’s perception of the degree to which their requirements have been
fulfilled.”
 These definitions suggest that an evaluative process is an important element
underlying customer satisfaction.
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Chapter-3
RESEARCH METHODOLOGY &

OBJECTIVES
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RESEARCH METHODOLOGY
Research Methodology is a way to find out the result of a given problem on a
specific matter or problem that is also referred as research problem. In Methodology,
researcher uses different criteria for solving/ searching the given Research problem.
Different sources use different type of methods for solving the problem. If we think
about the word “Methodology”, it is the way of searching or solving the research
problem. In Research Methodology, researcher always tries to search the given question
does not work systematically on problem, there would be less possibility to find out the
final result. For finding or exploring research question a researcher faces a lot of
problems that can be effectively resolved with using correct research methodology.
Definition:
The process used to collect data and analyze it for the purpose of making business
decision. The methodology may include surveys, interviews and other research
techniques.
 Research Design : Descriptive Research Design

 Data Sources
Secondary Data : www.coca-cola.com ; www.forbes.com
Primary Data : Customers of Coca-Cola beverages Pvt. Ltd.
 Research Approach : Survey
 Research Instrument : Questionnaire
Sample Plan
Sample Frame : Tirupati
Sample Size : 138
Sample Unit : Customers of Coca-Cola beverages Pvt. Ltd.
Sample Method : Convenience sampling
 Contact Method : Personal Interview
 statistical tool : chi square
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DATA COLLECTION
Data refers to information or facts researchers understand by data as only
numerical figure. It also includes descriptive facts, on numerical information,
qualitative and quantitative information.
Collection of data is an important stage in research. In fact the quality of the

data collected determines the quantity of the research.
Collection of data is done by two methods.
1. Primary data collection

2. Secondary data collection
Primary data collection:
Primary data is also known as the data collected for the first time through the
field survey. Such data are collected with specific set of objectives to assess the current
of any variable studied.
Interviews
Questionnaires
Secondary data collection:
Secondary data refers to the information or facts already collected by someone

else and passed through the statistical tools
Source for secondary data:

The secondary data, which is needed for my study was collected from the
company's database.
Sampling procedure
Based on the study convenience sampling has been used.
Convenience sampling
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The sampling method involves purposive or convenience selection of

particulars units of the universe for constituting a sample, which represents the
universe.
At times such a procedure may give very biased results particularly when the
population is not homogeneous.
Sample size:
Pertaining to the limitations of the study, and in consultation with the Customers
of Coca-Cola beverages Pvt. Ltd, the sample size is taken as 150 customers out of which
138 were found legit.
Questionnaire Design:
The questionnaire was framed by me with careful and frequent consultation with
both the internal as well as company guide.
25
OBJECTIVES OF THE STUDY
 To know the level of satisfaction towards Coca-Cola products.

 To identify the factors affecting the customer satisfaction towards Coca-Cola
products.
 To measure the degree of consumer awareness towards coca cola products .
NEED OF THE STUDY
Marketing is a kingpin of all activities to the business. Due to the changes in

Political, Social, Legal, International environment there is a change in marketing.
Added to the above factors there is an increase in number of sellers in almost every
market leading to competition on planks like price, product, place, and promotion etc.,
Further the consumers became more alert and are not willing to take anything granted.
Marketing research has come in hardly in almost every industry and it connect possibly
be far behind in the beverages industry products.
Coca cola beverages pvt. Ltd. believes in satisfactory delivery of service quality
to the customer, but due to unknown reasons that the customer satisfaction
analyzed by the company is not up to the mark. The company intends to find out the
causes and remedies for the low customer satisfaction.
26
SCOPE OF THE STUDY
The study can help the company to study the following:
The study can give cheer information about consumer preferences on different
brands of coca cola products. The study gives information about consumer awareness
on coca cola cool drinks. The study is useful to know the consumer preference and their
reasons to prefer and not to prefer coca cola products. The study is useful to analyze
the price position of their choice. This is useful to know the impact of brand
advertisement on consumers. The study covers the different aspects of customer
satisfaction
LIMITATION OF THE STUDY
 The sample size of 150 were taken in this project, which indicates low sample
size.
 It has time bounded of five weeks’ study, so it is a major constraint for deep
study of the system.
 The study was restricted to part of Tirupati only.
27
Chapter-4
DATA ANALYSIS AND

INTERPRETATION
28
GENDER DISTRIBUTION
Gender Frequency Percentage
Male 97 70.28%
Female 41 29.72%
41
97
Male Female
Interpretation: Male are majority respondents in the survey but we cannot draw to
conclusion that there are more male Consumers than female. Male customers have
more impact on this report than female which is a limit of study.
29
AGE DISTRIBUTION
AGE Frequency Percentage
Less then 20 years 42 30.22%
20 - 40 years 74 53.95%
40 – 60 years 18 12.95%
More then 60 years 4 2.88%
Total 138 100%
40 – 60 More then Less then

years , 18 60 year , 4 20 years ,
42
20 - 40
years, 74
Interpretation: Majority respondents in the survey are below 40 years who have major
impact on that study.
30
AWARENESS OF COCA-COLA PRODUCTS
Product Consumption Brand awareness
Coca-cola 129 138
Thums Up 138 86
Sprite 138 116
Maaza 138 89
Fanta 106 49
Limca 84 32
Kinley 130 36
Minute Maid 67 16
Zico 2 1
Fuze Tea 1 1
Aquarius 28 9
Schweppes 0 2
Smartwater 12 1
RimZim 0 0
Georgia 0 1
Vitingo 4 0
Vio 8 2
Rani Float 7 3
Interpretation: Some products are very popular while others are quite opposite.
Many consumers of certain product don’t even know that it’s a coca cola product.
31
PRODUCT AVAILIABILITY
Particulars Frequency Percentage
Easily available 132 95.65%
Difficult to get 6 4.35%
Total 138 100%
Difficult to get
4%
Easily
available
96%
Interpretation: Coca-Cola products are easily available in the market.
32
FACTORS INFLUENCING THE PURCHASE
Particulars Frequency percentage
Taste & flavour 57 41.30%
Gas content 40 28.98%
Quenching thirst 32 23.18%
Others 9 6.54%
Total 138 100%
Quenchin Others
g thirst 7%
23% Taste &
flavours
41%
Gas
content
29%
Interpretation: Taste and flavour is the major factor influencing the purchase of
product.
33
PRICE REACTION
Cheap 24 17.39
Value for money 73 52.89
expensive 41 29.72
Total 138 100%
expensive Cheap
30% 17%
Value for
money
53%
Interpretation: The current price of Coca-Cola products is effective.
34
FREQUENCY OF PURCHASE
Daily 19 13.76%
weekly 86 62.32%
Monthly 18 13.04%
Occasionally 15 10.86%
Total 138 100%
Occasionally
11%
Monthly Daily
13% 14%
weekly
62%
Interpretation: 76.08 % of the respondents are frequent buyers.
35
PACKING QUALITY
Highly satisfied 59 42.75%
Satisfied 63 45.65%
Dissatisfied 11 7.97%
Highly dissatisfied 5 3.63%
Total 138 100%
Dissatisfied Highly
8% dissatisfied
Highly 3%
satisfied
43%
Satisfied
46%
Interpretation:88.40% of respondents are satisfied with the packing quality which

means packing quality is good.
36
WILLINGNESS TO BUY COCA-COLA PRODUCT IN NEAR FEATURE
Willingness Frequency Percentage
Yes 89 64.49%
No 49 35.51%
No, 49
Yes, 89
Interpretation: 64.49% are willing to buy Coca-Cola product in near feature
37
ENCOUNTERTED COCA-COLA ADVERTISEMENTS IN RECENT

MONTHS
Frequency Percentage
Yes 68 49.27%
No 70 50.73%
NO, 70 Yes, 68
Interpretation: Only 49.27% have come across advertisements in recent months
38
EFFECTIVENESS OF ADVERTISEMENTS
Likely to buy Unlikely to buy Total
Watched 51 17 68
Advertisement
Didn’t watch 38 32 70
Advertisement
Total 89 49 138
Here we use chi square test to determine effectiveness of advertisements.
CHI-SQUARE ANALYSIS
H0: Advertisements are ineffective
Observed value Expected value
51 43.855
17 45.145
38 24.145
32 24.855
χ2=6.942
Degrees of freedom = 1
INFERANCE
Since the calculated value of χ2 =6.942 is higher than the table value χ2=3.841 at 5%
level of significance and 1 degree of freedom we reject the hypothesis.
Thus, we conclude that ADVERTISEMENTS ARE EFFICTIVE.
39
Overall satisfaction

Highly satisfied 36 26.08
Satisfied 65 47.11
Dissatisfied 29 21.01
Highly dissatisfied 8 5.79
Total 138 100%
Highly
dissatisfied
6% Highly
Dissatisfied satisfied
21% 26%
Satisfied
47%
Interpretation: 73.19% of respondents are satisfied with the product.
40
Chapter-5
SUMMARY OF FINDINGS &

SUGGESTION
41
FINDINGS
 The important factors that influence the purchase decisions of Coca-Cola

products are taste and flavor.
 Coca cola products are valued for money.
 Advertisements are effective.
 Even consumers of certain products are not aware that it’s a Coca-Cola product.
 Most of the respondents are satisfied with packaging of the product.
 Products are readily available in the market.
42
SUGGESTIONS
 As taste and flavor are the major factors influencing the purchase,
introduction of new flavor is suggested to make product promotion more
efficient.
 Many unpopular products of Coca-Cola need proper advertisement.
 Efficient promotional activities pertaining to consumer are to be taken up.
 Coca-Cola should also focus on brand promotion along with product
promotion.
Suggestions have been made based on certain factors as highlighted by the
study.
43
CONCLUSION
Coca Cola is well known for its high performance for decades. It’s position in
the market is strong. Customer are delighted with quality, durability and performance
of Coca Cola. This study revealed the same thing again. From the surveyed results we
can conclude that most of the customers using the coca cola products. Coca cola
company provides good services and improve the better services.
The study shows a good customer satisfaction towards the different soft drinks
of the company is best in price level, taste, packaging and so on.
44
ANNEXURE
45
QUESTIONNAIRE
Name
Gender
Female
Male
Age
Which of the following soft drinks have u consumed before?

Coca-cola
Thums Up
Sprite
Maaza
Fanta
Limca
Kinley
Minute Maid
Zico
Fuze Tea
Aquarius
Schweppes
Smart water
Rim Zim
Georgia
Vitingo
Vio
Rani Float
Are Coca cola products readily available in the market?

Yes
No
46
Which of the following are Coca cola products?

Coca-cola
Thums Up
Sprite
Maaza
Fanta
Limca
Kinley
Minute Maid
Zico
Fuze Tea
Aquarius
Schweppes
Smart water
Rim Zim
Georgia
Vitingo
Vio
Rani Float
Which of the following you consider most when purchasing a soft

drink?
Taste & flavor
Gas content
Quenching thirst
Others
How do you feel about the price of Coca-cola products?

Cheap
Value for money
Expensive
47
How Often do you purchase Coca-Cola products?

Daily
Weekly
Monthly
Occasionally
How do you feel about the Quality of packing of Coca-cola products?

Highly Satisfied
Satisfied
Dissatisfied
Highly Dissatisfied
Are you Willing to buy Coca-cola products in near feature?

Yes
No
Have you encountered any Coca-Cola Advertisements in the recent

months?
Yes
No
What is your overall satisfaction towards Coca-cola products?

Highly Satisfied
Satisfied
Dissatisfied
Highly Dissatisfied
Do you have any other comments?
48
BIBLIOGRAPHY
Books:
 Philip Kotler, “MARKETING MANAGEMENT ”, ,11th edition, Prentice
hall of India private limited, 2006.
 G.C.Berri, “MARKETING RESEARCH” , 3rd edition, TATA McGraw Hill
publishing company limited , New Delhi, ISBN 10:0070620229/ISBN
13:97800706620223,2007.
 C.R.Kothari, “RESEARCH METHODOLOGY” , 2nd edition, New Age
International private limited , ISBN:978-81-224-2488-1,2004.
Articles and Journals:

1. Definitions of customer. Retrieved from
www.en.wiktionary.org/wiki/customer, Last accessed on 13.05.2010 at 10:30
hrs.
2. Engel James, F. & Blackwell, R.D. (1982). Consumer Behavior. New York:
Holt, Rinehart.
3. Grigoroudis, E &Siskos, Y (2009). Customer Satisfaction Evaluation: Methods
for Measuring and Implementing Service Quality. Springer.
4. Howard John, A., &Sheth, J.N. (1969), The Theory of Buyer Behavior, New
York: John Wiley.
5. Hunt, H. Keith (1977), “CS/D – Overview and Future Research Direction” in
Conceptualization and Measurement of Consumer Satisfaction and
Dissatisfaction, H. Keith Hunt, ed. Cambridge, MA: Marketing Science
Institute.
6. Oliver Richard, L. (1981), “Developing Better Measures of Consumer
Satisfaction: Some Preliminary Results,” in Advances in Consumer Research,
Kent B.
Websites:
www.google.com.
www.coca cola.com.
49

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CUSTOMER SATISFACTION

About the customer satisfaction

Customer satisfaction is a term frequently used in marketing. It is a measure of

It is seen as a key performance indicator within business and is often part of a

"Within organizations, customer satisfaction ratings can have powerful effects.

Therefore, it is essential for businesses to effectively manage customer

"In researching satisfaction, firms generally ask customers whether their

The importance of customer satisfaction diminishes when a firm has increased

There is a substantial body of empirical literature that establishes the benefits of

Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers while

Customer satisfaction is an ambiguous and abstract concept and the actual

Because satisfaction is basically a psychological state, care should be taken in

satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access,

The usual measures of customer satisfaction involve a survey with a set of

Trends in the service sector

Customer expectations of service

Factors that influence customer expectations of service

Sources of desired service expectations

Other consumers, family members, and co-workers

Customer Satisfaction Indexes

The American Customer Satisfaction index (ACS...)

Customer satisfaction is important because it provides marketers and business

 It’s a leading indicator of consumer repurchase intentions and loyalty .

Market Segment of Food Industries

Market Share of Various Food Processing Industries

Market Share of Different Beverages

COCA – COLA Pvt. Ltd

1894 … A modest start for a bold idea

1899 … The first bottling agreement

1916 … Birth of the Contour Bottle

1950s … Packaging innovations

1960s … New brands introduced

1990s … New and growing markets

Key People INDIA

COKE PRODUCTS IN INDIA:

This chapter attempts to review different literatures on customer satisfaction

Customer satisfaction – reviews

Paul S. Goldner (2006)

Grigoroudis, E and Siskos, Y (2009)

Customer Satisfaction – Definitions

Vavra, T.G. (1997)

Howard and Sheth (1969)

Westbrook and Reilly (1983),

Engel and Blackwell (1982)

Berry and Parasuraman (1991)

Schiffman and Kanuk (2004)

Woodruff and Gardian (1996)

Some of the definitions available from web are compiled below:

RESEARCH METHODOLOGY &

 Research Design : Descriptive Research Design

Collection of data is an important stage in research. In fact the quality of the

Collection of data is done by two methods.

1. Primary data collection

Primary data collection:

Secondary data collection:

Secondary data refers to the information or facts already collected by someone

Source for secondary data:

The sampling method involves purposive or convenience selection of

OBJECTIVES OF THE STUDY

 To know the level of satisfaction towards Coca-Cola products.

NEED OF THE STUDY

Marketing is a kingpin of all activities to the business. Due to the changes in