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A PROJECT REPORT ON
CUSTOMER SATISFACTION ATEVM HONDA
Dissertation Submitted To MAHATMA GANDHI UNIVERSITY
In partial fulfillment of requirement for Bachelor of Business Management
2006-2009 By
ROSHAN SORLY Reg. No.4086
Under the guidance of
Vilasini Sethumadhavan
Faculty Guide
Chinmaya Vidyapeet
Affiliated to
Mahatma Gandhi University Kottayam, Kerala
CERTIFICATE
The project titled a study on “Customer Satisfaction at EVM Honda” is a
bonafide work done by Mr. Roshan Sorly in partial fulfillment for the
award of the degree of Bachelor of Business Management offered by
Mahatma Gandhi University.
Prof: B C Menon Mrs. Vilasini Sethumadhavan
Principal Faculty Guide
Kochi
30-03-2009
DECLARATION
I hereby declare that this project titled “Customer Satisfaction at EVM
Honda, Vytilla” is an organization work done by me towards partial
fulfillment for the degree of Bachelor of Business Management under
Mahatma Gandhi University, Kottayam.
I further declare that this work is not partly or wholly submitted for any
other purpose and that the data included in the project collected from
various sources, are true to the best of my knowledge.
PLACE: ERNAKULAM ROSHAN SORLY
DATE: 23-03-09
ACKNOWLEDGEMENT
First of all let me express my sincere thanks to Mrs. Kamakshi
Balakrishna, our Directress, Chinmaya Vidyapeet, for her support and
providing me the facilities without which I would not have been able to
complete the project.
I express my sincere thanks to our Principal Mr.BC Menon for his
support and guidance for the completion of this work.
I express my sincere thanks to my guide Mrs.Vilasini Sethumadhavan for
her kind and valuable encouragement for the completion of this work.
I wish to record my profound gratitude to the management of EVM
Honda, Vytilla for providing me an opportunity to carryout my project.
I owe my gratitude to Mr. Sutheesh Mohan Service Developments
Manager of EVM Honda, Vytilla and all the staffs who took all the pain
and risk in providing the relevant information.
My heartfelt thanks to all my friends and well wishers for their valuable
suggestions and help rendered.
Last but not the least, I would like to express my whole hearted thanks to
the invisible, the indomitable God for His blessings to complete the
project on time.
Roshan
CONTENTS
CHAPTER TITLE PAGE NO.
1 Introduction 1
2 Theoretical Framework 6
3 Industrial and Company profile 13
4 Analysis and Interpretation 31
5 Findings, suggestions and conclusion 50
Bibliography
Annexure
LIST OF TABLES
SL NO.
TITLE OF THE TABLEPAGE
NO.
4.1 No of problems experienced in your vehicle 31
4.2 No of times you have returned for the same problem 32
4.3 Ease of obtaining appointment for service 33
4.4 Promptness of front man in opening of job card 34
4.5 Helpfulness in listening servicing needs 35
4.6 Undertaking of specific problems of your vehicle 36
4.7 Courtesy in servicing you 37
4.8 Prior explanation of job to be carried out and cost estimate 38
4.9 Availability of parts to serve your vehicle 39
4.10 Appearance of service area 40
4.11 Appearance of customer lounge 41
4.12 Reasonable time taken for service 42
4.13 Quality of repairs carried out 43
4.14 Job satisfactorily completed at first time 44
4.15 Timely delivery of vehicle 45
4.16 Appearance of vehicle at the time of delivery 46
4.17Explanation of work done and charges at the time of delivery
47
4.18 Explanation of maintenance tips at the time of delivery 48
4.19Based on your overall experience would you recommend EVM Honda workshop to friend or relative
49
LIST OF DIAGRAMS
DIAGRAM NO.
DIAGRAMPAGE
NO.
4.1 No of problems experienced in your vehicle 31
4.2 No of times you have returned for the same problem 32
4.3 Ease of obtaining appointment for service 33
4.4 Promptness of front man in opening of job card 34
4.5 Helpfulness in listening servicing needs 35
4.6 Undertaking of specific problems of your vehicle 36
4.7 Courtesy in servicing you 37
4.8Prior explanation of job to be carried out and cost estimate
38
4.9 Availability of parts to serve your vehicle 39
4.10 Appearance of service area 40
4.11 Appearance of customer lounge 41
4.12 Reasonable time taken for service 42
4.13 Quality of repairs carried out 43
4.14 Job satisfactorily completed at first time 44
4.15 Timely delivery of vehicle 45
4.16 Appearance of vehicle at the time of delivery 46
4.17Explanation of work done and charges at the time of delivery
47
4.18 Explanation of maintenance tips at the time of delivery 48
4.19Based on your overall experience would you recommend EVM Honda workshop to friend or relative
49
CHAPTER ONEINTRODUCTION
INTRODUCTION
Marketing research has more significance in the present scenario.
Marketing research interrelated research and management.
Marketing research is the function which links the consumer,
customer and public to the marketer through information.
Information used to identify and define marketing opportunities and
problems. Generate, refine and evaluate marketing action, monitor
marketing performance and improve understanding marketing as a
process.
Concept of Service Marketing
Service is defined as an action of organizations that maintains and
improves the well being and functions of people.
Features of Marketing Services
Intangibility : Services are intangible in nature and as such
complicate the decision makers while performing and displaying.
While selling or promoting services we need to concentrate on
benefits and satisfaction which a buyer can derive after buying.
Perish Ability : The services can’t be stored or ownership is not
affected in the process of selling the services.
Simultaneity : Services can’t be delivered to customers or users.
It doesn’t move through channels of distribution. For availing
services it is essential that the users are brought to providers or the
providers go to the users.
In this globalized world, service plays a major role to attract
customers. The above features shows that it is quite difficult to
measure the satisfaction derived from the services provided. But it is
very important to measure these satisfaction levels.
Statement of the problem
Nowadays focus is on customers. Objectives like revenue, profit and
market shares are important but they will follow only by acquiring
customer competence. In India even as late as in 1980, the customers
were benefit with alternatives; he would uncomplainingly buy
whatever was dished out by the seller. Not any more. Today’s choice
empowered customer, supported by competitive environment, global
quality and new economic realities, decides the fate of the marketer.
Producers have become price takers rather than price setters. It is
worthwhile to asses what these changes have brought and the
customers attitude and satisfaction towards the automobile industry.
Customer satisfaction is a business term which is used to capture the
idea of measuring how satisfied an enterprise’s customers are with
the organization’s efforts in the market place. It is seen as a key
business performance indicator and is part of the four perspectives of
the balanced scorecard. It is an ambiguous and abstract concept and
the actual manifestation of the state of satisfaction 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 recommended rate. The ten domains of satisfaction are:
Quality, Value, Efficiency, Timeliness, Ease of access, Environment,
Interdepartmental team work, Frontline service behaviors,
Commitment to the customer and Innovation.
Objectives of the Study
To know the level of overall customer satisfaction at EVM
Honda, Vytilla
To analyze the major factors influencing customer satisfaction
To identify and define the problems faced by the customers
To know the importance of service in the present scenario with
refers to the customers at EVM Honda
To suggest measure for improvement
Scope of the Study
In this project work an attempt is made to study the level of customer
satisfaction at EVM Honda. The study aims at finding the
satisfaction experienced by the customers and suggest steps for
improving the loyalty of customers towards the EVM Honda.
Research Methodology
Method of data collection
The data collected constitutes both primary and secondary.
Primary Data
Primary data are collected by making direct interview with the
authorities, officials & observation and also by distributing
questionnaires to the population.
Secondary Data
Secondary data are collected from various records kept in
departments, company manuals, magazines & websites.
Survey method was adopted to get the primary data and the
questionnaire was designed as an instrument of survey method. The
total sample size is 60 which were collected from the EVM Honda
workshop in vytilla.
SOURCES OF SECONDARY DATA
Websites of company and other search engines.
Various books on research, marketing and retail management.
Various magazines, articles and reports on automobile industry.
SAMPLE DESIGN
The total sample size is 60 customers, which was collected from
EVM Honda workshop at Vytilla.
TOOLS AND TECHNIQUES OF DATA COLLECTION
Questionnaire was designed as a main instrument to conduct survey.
A questionnaire consists of a set of questions presented to
respondents for their answers. The questions in this survey
questionnaire involve the both open end and close ended questions,
which are sufficient enough to analyze the customer satisfaction
level.
Limitations
The findings and observations are based on the answers given by
the respondents and thus it is subject to personal bias
The company details are collected from the manuals and
broachers provided. Thus there were many hindrances in the
availability of data.
Change in trends and attitudes can influence customer’s
preferences.
Due to time and money constraints the study was limited to small
sample size.
CHAPTER TWO
THEORETICAL FRAMEWORK
THEORITICAL FRAMEWORK ON CUSTOMER
SATISFACTION
Marketing is a societal process by which individual and groups
obtain what they need and want through creating, offering and freely
exchanging products services of value with others. Needs describe
basic human requirements. These needs become wants when they are
directed to specific objectives that might satisfy the needs.
Understanding customer needs and wants is not always simple. Some
customers have needs of which they are not fully conscious or they
cannot articulate these needs. Thus these needs can be classified as
Needs
People satisfy their needs and wants with products. The product or
offering will be successful if it delivers value and satisfaction to the
target buyer and the buyer chooses between different offerings on the
basis on which is perceived to deliver the most value. Value can be
defined as the ratio between what the customer gets and what he
gives. The customer gets benefits and assumes costs. The benefits
include functional benefits and emotional benefits the costs include
monitory costs, time costs, energy costs and psychic costs.
Thus today’s customers face a vast array of product and brand
choices, prices and suppliers.
Stated needs
Unsatisfied needs
Real needs Secret needs
Delight needs
They are value-maxi misers, within the bounds of search cost and
limited knowledge, mobility and act on it. Whether or not the offer
lines up to the value expectation affects both satisfaction and
repurchase profitability.
Satisfaction is a function of perceived performance and expectations.
It is a person’s feelings of pleasure and disappointment resulting
from comparing a product’s perceived performance in relation to
his/her expectations. Thus three basic levels of satisfaction and
categories of customers are:
Satisfied customers occur when you provide them with what you
promised or they expected. That is if the performance matches the
expectations, the customer is satisfied.
Satisfied customers:
Stays loyal longer
Is equal
to
Delighted Customers
What you provide
What you promised or what
they expected
Satisfied Customers
Dissatisfied Customers
Buys more as the company introduces new products and upgrade
existing products.
Talks favorably about the company and its products and
advertising and is less sensitive to price.
Cost less to serve than new customers because transactions are
routinised.
Dissatisfied customers occurs when
If performance falls short of expectations the customer is
dissatisfied.
Dissatisfied customers:
Stop purchasing or start looking for an alternative supplier.
Talk’s unfavorably about the company.
Pays more attention or go in search of competing brands.
Generally don’t come back.
Delighted customers occur when what is provided is more than what
is promised or expected
What you provide
What you promised or what
they expected
What you provide
What you promised or what
they expectedIs more than
Is less than
Delighted customers:
Stay loyal to business for life.
Talks more favorably about their delightful experience.
Doesn’t go in search for new alternatives.
Their transactions are more routinized and always upgrade the
knowledge about the company and its products.
Improving Customer Satisfaction – Once a Customer
Satisfaction Measurement Program is in Place
Customer satisfaction research is not an end unto itself. The purpose,
of course, in measuring customer satisfaction is to see where a
company stands in this regard in the eyes of its customers, thereby
enabling service and product improvements which will lead to higher
satisfaction levels. The research is just one component in the quest to
improve customer satisfaction. There are many others including:
Top management commitment,
Linking of customer satisfaction scores with employee and
management monetary incentives,
Recognition of employees who contribute to customer’s
satisfaction,
Identification, measurement and tracking of operational variables
which drive satisfaction scores,
Customer-based improvement goals,
Plans for improving operational variables,
Incorporation of customer satisfaction skills into employee
training programs ,
Measurement of and plans for improvement of employee
satisfaction,
Changes in corporate hiring practices
Top Management Commitments
Top management through its actions, must show that customer
satisfaction is important to it. This can be done in several ways.
Front-line employees and suppliers. Incentive programs can be
structured so that all employees in an organizational unit receive
compensation if the unit’s customer satisfaction goals are met.
Additionally, exemplary service on the part of individual employees
can be rewarded on an ad hoc basis. Management incentives do not
have to result in incremental expenditures; a relocation of current
incentives will suffice. For example, if 100% of a manager’s bonus
is dependent upon meeting operational and sales goals, the mix could
be changed to include customer satisfaction goals.
Recognition of Employees who contribute to Customer’s
Satisfaction
This is an inexpensive way to foster customer satisfaction. The key
to success are:
Making sure that all employees are aware of why a particular
employee is being recognized
Making sure that each employee being recognized is worthy of
recognition
Identification, Measurement and Tracking of Operational
Variables when Drive Satisfaction Scores
The results of a customer satisfaction survey need to be evaluated to
determine what needs to be improved. For example, a survey may
find that customer waiting times need to be reduced. The next step
should be to quantify actual customer waiting times, and to set goals
and strategies for reducing them. Goals should be as specific as
possible. It is better to say “we want to reduce wait times during
peak periods from an average of twenty minutes to fifteen minutes
by the end of June,” than to say “we need to reduce customer waiting
times.”
Customer-Based Improvement Goals
This ties directly to the previous point. Once you have identified
what needs to be improved, you need to develop a plan for
improving each identified area. Such plans need to be based on what
customers really need, rather than what management believes to be a
good goal. Using the previous example, if customers really desire
wait times of ten minutes or less, having management dictate that
wait times must be reduced to fifteen minutes will have limited
appeal with customers. You may need to do a separate survey with
customers to actually set appropriate goals. If this is not
economically feasible, atleast talk to a number of customers and gain
their input before setting a goal.
Plans for Improving Operational Variables
Once you have established what needs to be improved, and how
much it needs to be improved, plans need to be developed to make
improvement happen. The keys to successful planning are to:
Involve front-line employees and management in the planning
process,
Evaluate the success of plans once they have been put into place.
This is done by measuring actual improvement in operations and
customer satisfaction.
Incorporation of Customer Satisfaction Skills into Employee
Training Programs
Employee training programs should be modified to include:
A description of the importance of customer satisfaction to the
company,
Descriptions of what keeps customers satisfied,
A description of customer satisfaction measurement programs,
description programs, and incentive programs,
Specific employee programs expectations with regard to keeping
customers satisfied.
Measurement of and Plans for Improvement of Employee
Satisfaction
Unhappy employees will have difficulty in keeping customers
happy. You should consider measuring the satisfaction levels of
employees, and then developing action plans to improve employee
satisfaction.
Changes in Corporate Hiring Practices
Certain type of people will do a better job of satisfying customers
than will other types of people, regardless of the quality of training,
reward and recognition programs. Once you have determined the
types of employee behaviors are important to customers, you should
incorporate this knowledge into your hiring practices.
CHAPTER THREE
INDUSTRIAL
AND
COMPANY PROFILE
INDUSTRY PROFILE
TWO-WHEELER INDUSTRY
The two-wheeler industry in India has grown rapidly in the country
since the announcement of the process of liberalization in 1991 by
the then finance minister Dr. Manmohan Singh, now Prime Minister
of India.
In the period 2006 - 07 the total number of the two wheelers and
three wheelers produced in India, were around 9 million. The sales
pertaining to two wheelers in the period 2006 - 07 was 7,857,548,
which was a growth of 11.41 %. In the same period the motorcycle
exports from India was 321,321 units.
Previously, there were only a handful of two-wheeler models
available in the country. Currently, India is the second largest
producer of two-wheelers in the world. It stands next only to China
and Japan in terms of the number of two-wheelers produced and the
sales of two-wheelers respectively. In the year 2005-2006, the annual
production of two-wheelers in India stood at around 7600801 units.
The trend of owning two-wheelers is due to a variety of facts
peculiar to India. One of the chief factors is poor public transport in
many parts of India. Additionally, two-wheelers offer a great deal of
convenience and mobility for the Indian family.
Bajaj auto began trading in imported Vespa Scooters in 1948.
Meanwhile Automobile Products of India (API) commenced
production of scooters in the country in the early 50's. Until 1958,
API and Enfield were the only producers of two-wheelers in India.
However, Bajaj signed a technical collaboration in 1960 with
Piaggio of Italy to produce Bajaj Scooters. This deal expired in 1971.
The condition of motorcycle manufacturers was no different. Until
the mid 80's, there were only three major motorcycle manufacturers
in India namely Rajdoot, Escorts, and Enfield. The two-wheeler
market was opened to foreign manufacturers in the mid 80's. The
industry, which had seen a smooth ride before, faced fierce foreign
competition.
Motorcycle companies like the Yamaha, Honda, and Kawasaki, set
up shop in India in collaboration with various Indian two-wheeler
companies. Companies like Escorts, Rajdoot and faced immense
competition from smaller 100 cc Japanese technology motorbikes.
Bikes manufactured by Hero Honda, the only company
manufacturing four-stroke bikes at that time, gained massive
popularity.
In the mid 80's, Kinetic introduced a variomatic gearless scooter in
collaboration with Honda. This scooter became instantly popular
with the younger generation, especially people who found it difficult
to use geared scooters. The introduction of scooterettes created
another segment for people such as women and teenagers who could
not get used to driving either motorcycles or gearless scooters. Many
companies such as Kinetc, TVS, and Hero also started
manufacturing mopeds that proved immensely popular with people
who wanted a simple riding machine.
The change in the government's policy owning to pollution control
norms and the Kyoto agreement saw the phasing out of two stroke
two-wheelers from production. Currently there are around 10 two-
wheeler manufacturers in the country, they being Bajaj, Hero, Hero
Honda, Honda, Indus, Kinetic, Royal Enfield, Suzuki, TVS, and
Yamaha.
The latest trend in the two-wheeler market is the introduction of
electrically operated vehicles from a range of manufacturers such as
Indus and Hero. These can be recharged from convenient household
electrical points. The only disadvantage is speed, which is restricted
to around 25 miles per hour.
Currently, the motorcycle market is witnessing a demand for higher
volume engines. Previously, the 100 c bikes were very popular
owning to the high fuel efficiency offered. However, the market is
maturing fast. Sensing this movement, Bajaj has introduced the Bajaj
Pulsar, with 150, 180 and 200cc engines with Dual Twin Spark
Ignition (DTSi) technology.
Demand Drivers
The demand for two-wheelers has been influenced by a number of
factors over the past five years. The key demand drivers for the
growth of the two-wheeler industry are as follows:
Inadequate public transportation system, especially in the semi-
urban and rural areas
Increased availability of cheap consumer financing in the past 3-
4 years
Increasing availability of fuel-efficient and low-maintenance
models
Increasing urbanization, which creates a need for personal
transportation
Changes in the demographic profile
Difference between two-wheeler and passenger car prices, which
makes two-wheelers the entry level vehicle
Steady increase in per capita income over the past five years
Steady increase in per capita income over the past five years
The present generation is using more two wheelers
MAJOR PLAYERS IN THE TWO WHEELER SECTOR
Honda
Hero Honda
Bajaj Auto
TVS Motors
Yamaha
Suzuki
Kinetic
Royal Enfield
Honda set to zoom past industry in two-wheelers
Despite a slowdown in the two-wheeler industry, which registered a
mere 1.27% growth between April-December at 61,52,804 units,
Honda Motorcycle and Scooter India (HMSI) is targeting around
15% growth in 2009-2010 at 12 lakh units as compared to 10.5 lakh
units that it expects to sell by the end of the current financial year.
At a time when retail finance is taking its toll on the overall demand,
the company is betting big on the Indian market and has outlined an
investment of Rs 300 crore in the country.
“Though retail financing continues to be a problem but the
fundamental demand for two-wheelers is still very high and we
expect to sell over 12 lakh units in the coming financial year with
new models and few variants lined up during this period,” says
Shinji Aoyama, president and CEO, HMSI.
According to Aoyama, the company will invest Rs 300 crore in the
Indian market over the next three years to increase capacity and
enhance its product portfolio. This will include the introduction of a
100cc bike from HMSI in 2010.
"We will certainly come up with an entry-level 100cc bike in India
next year and the company plans to sell around 2,00,000 bikes in the
first year of launch," he says, adding that though its 100cc bike will
be sporty but there could be some cannibalisation of the 100cc bikes
currently being produced by Hero Honda Motor India, a joint venture
partner of Honda Motor Company of Japan.
The company, on Friday, launched two super bikes that will compete
with the high-end bikes from the stable of Yamaha, Ducati and
Suzuki Motorcycle. The CBR 1000RR Fireblade and the CB1000R
are priced at Rs 12.5 lakh and Rs 9.5 lakh respectively and will be
sold in the country as completely build units, imported from Japan
and Europe. Honda Motorcycle and Scooter India have set up two
company owned showrooms, the Honda Wing World, in Delhi and
Mumbai to retail these bikes in the domestic market. "There is an
estimated demand of 400 units of high-end bikes in the country and
we expect to sell less than 100 units of these in a year," says NK
Rattan, vice president (sales and marketing), HMSI.
HMSI registered a growth of 21.94% in January at 90,796 units as
against a dip of 3.95% in the two-wheeler industry at 5, 81,742 units.
COMPANY PROFILE
Honda Motor Co., Ltd. operates under the basic principles of
"Respect for the Individual" and "The Three Joys" — commonly
expressed as The Joy of Buying, The Joy of Selling and The Joy of
Creating. "Respect for the Individual" reflects their desire to respect
the unique character and ability of each individual person, trusting
each other as equal partners in order to do our best in every situation.
Based on this, "The Three Joys" expresses their belief and desire that
each person working in, or coming into contact with their company,
directly or through or products, should share a sense of joy through
that experience.
In line with these basic principles, since its establishment in 1948,
Honda has remained on the leading edge by creating new value and
providing products of the highest quality at a reasonable price, for
worldwide customer satisfaction. In addition, the Company has
conducted its activities with a commitment to protecting the
environment and enhancing safety in a mobile society.
The Company has grown to become the world's largest motorcycle
manufacturer and one of the leading automakers. With a global
network of 501* subsidiaries and affiliates accounted for under the
equity method, Honda develops, manufactures and markets a wide
variety of products, ranging from small general-purpose engines and
scooters to specialty sports cars, to earn the Company an outstanding
reputation from customers worldwide.
Honda Philosophy
Basic Principles:
Respect for the individual. The Three Joys (buying, selling and
creating)
Company Principle:
Maintaining a global viewpoint, we are dedicated to supplying
products of the highest quality, yet at a reasonable price for
worldwide customer satisfaction.
Management Policies:
Proceed always with ambition and youthfulness.
Respect sound theory, develop fresh ideas, and make the most
effective use of time.
Enjoy work and encourage open communication.
Strive constantly for a harmonious flow of work.
Be ever mindful of the value of research and endeavor.
Dreams inspire them to create innovative products that enhance
mobility and benefit society. To meet the particular needs of
customers in different regions around the world, they base their sales
networks, research and development centers and manufacturing
facilities in each region. Furthermore, as a socially responsible
corporate citizen, they strive to address important environmental and
safety issues.
Research and Development
Each and every Honda associate takes the customer’s point of view
as they strive to help everyone everywhere share the joy of mobility.
That’s why Honda always welcomes new challenges as they work to
benefit society and the environment, today and tomorrow. New
challenges for the future.
Honda is constantly involved in technological research and
development to help people now and in the future. These
technologies range from new materials and new sources of energy, to
new power trains for maximum performance and minimum eco-
impact, to new work in decoding the rice genome for various
applications. Currently, Honda is engaged in a project to develop a
next-generation clean diesel engine. Another project, in cooperation
with the Research Institute for Innovative Technology for the Earth
(RITE), aims to produce ethanol from cellulosic biomass, a
promising, secure supply of environmentally responsible alternative
fuel.
Honda also studies human anatomy and physiology so that they can
make innovative products that enhance safety. The company
conducts original research into new forms of mobility that coexist in
harmony with people and serve society. The latest, most advanced
version of ASIMO, Honda’s bipedal humanoid robot, now moves
freely, shares tasks with humans, and even recharges itself -- a
significant achievement in independent action.
Since its establishment, Honda has always “dreamed skyward.” This
perspective recently led to development of the advanced light jet
HondaJet. With delivery scheduled to start in 2010, Honda has begun
construction of its production facility in the U.S. Thus, Honda
always aims higher -- creating value that meets each country’s needs,
bringing products speedily to market, and constantly enhancing their
safety and environmental performance.
Manufacturing and Distribution
Quality, and nothing but quality, is essential to winning and
enhancing customer trust. What supports Honda quality? They
depend on the passionate dedication of Honda associates to serve
customers with Honda quality. They speak the universal language of
quality to earn the trust of customers in every country, and challenge
themselves to always make products that surpass their great
expectations. Strengthening craftsmanship globally
Honda began manufacturing motorcycles in Belgium in 1963. In
1982, Honda became the first Japanese automaker to produce
passenger cars (the Accord) in the U.S. Since then, Honda has
established independent local operations around the world for
research, development, marketing, and production.
Through the introduction of Honda’s flexible manufacturing system,
Honda continues reducing the time and resources necessary to launch
new models into production and improving the efficiency of
manufacturing operations that meet regional needs. Moreover, the
grouping of production processes into cohesive units has improved
the working environment, raised product quality, and further
accelerated production.
By 2010, new Japanese and international auto production facilities
will begin operation, and they will concentrate motorcycle
production in Japan as a worldwide source of innovation.
Construction of a new engine factory and automobile plant in Japan
is progressing steadily, together with improved production capability
for building automatic trans-missions (AT). These developments
reflect the strength of far-reaching production advancements.
Sales and ServiceBy creating products and services that highlight
the core values that make Honda unique, they would like to provide
their customers with joy and excitement beyond their expectations.
Accordingly, the Honda brand stays a step ahead of the diverse needs
of their customers, always offering new possibilities for richer, more
rewarding lifestyles. In this way, Honda products enhance customers'
enjoyment of life. Expanding customer satisfaction activities “Next
time, too… a Honda.” The ultimate goal of their sales activities
worldwide is to satisfy our customers so that they will continue to
come back for more Honda quality products. To ensure this, they
have implemented a vigorous Customer Satisfaction (CS) program
covering all of their sales companies. This program aims to enhance
customer satisfaction by strengthening their attention to detail in
product and service activities through all stages of sales, delivery,
and after-sales service.In March 2006, all sales channels in Japan
were merged under the name of Honda Cars, providing all Honda
automotive brands through a single sales network that is easier for
customers to understand. They will continue to strengthen sales and
services targeted to regional needs and tailored to customers in each
region, with an extensive product lineup backed by IT support. Thus,
they can continue to enrich their customers’ lifestyles as only Honda
can.DEALER PROFILEEVM Group of Companies entered in the
Business of Automobile Sector in June 2001 by opening the
exclusive dealership of Honda Motor Cycle and Scooter India Pvt
Ltd. (HMSI) for the District of Cochin and at present for Trivandrum
also. They could gather about 11000 happy customers during the last
3½ years in Cochin alone and more than 4500 in Trivandrum, where
Sales, Spares and Service work is carried out under the same roof.
Both the Honda Dealerships are functioning in their own land and
buildings.In Cochin they have at present two authorized service
centers and one is shortly to be open in the hill areas of this district.
EVM Honda is the first Dealer to roll out a Mobile Service Van with
the motto “Reach Customer”. They stood first in India to get ISO
Certification among all Honda Dealers. In Cochin adjacent to the
main dealership, work of a Hi-Tech Service Center with all amenities
is in progress and is expected to open very shortly. Adding to their
achievement they got another Dealership of Honda Two Wheelers in
the Capital town of Kerala-Trivandrum in 2003. This Dealership
captured good market share. They are closely associated with M/s
Deedi Automobiles Trivandrum, Exclusive Dealers for Bajaj Two
Wheelers & Three Wheelers of this District.Started in 1935 as a
small entrepreneur EVM Group could spread the wings in many
business sectors:-Cultivation and Selling of Hill produce like
Cardamom, Cashew and Lemon grass oil including its exports.
1) Supply of Natural Rubber and Rubber products to popular tyre
manufacturing Companies of India including Rubber crumbing
factories.
2) Entertainment Industry - More than 20 Movie houses spared in
Kerala among which “Kavitha” at M.G. Road Ernakulam is
undoubtly best in Kerala.
3) C&F Agent for TATA Tea & Coffee and Distribution of
Reliance Petro Chemicals etc and Fleet owners of Trucks in the
State.
4) Tourism Development through Three Star Hotels and Resorts
like Hill view in Munnar, Mountain Club Resorts at
Chinnakanal, Isola-Di-Cocco Beach resort at Puvar (TVM),
which is tourist’s favourites, and Hotels at Adimali and
Kothamangalam.
The founder of our Group Mr. EV Mathai passed away on October
1999 but his dreams are now carried on by his six sons who are
united to conquer anything that come their way
FACILITIES OFFERED BY EVM HONDA
1. All service facilities of a dealer workshop such as:
a) Free service and warranty jobs even for vehicles sold by other
dealers and other states.
b) Periodic service and running repairs for any nature of jobs.
c) Quick services – waits and take for minor repairs.
d) Water service
e) Body polishing.
2. Body repair and full painting with dust free paint booth. In case of
accident, just inform them and they will undertake the whole repair
process including Insurance and Police formalities without any
additional financial burden to customers. If needed they will arrange
on spot survey.
3. 24 hours break down attending.
4. Renewal of insurance.
5. Genuine Honda spare parts.
6. Exchange of your vehicle.
7. Provision for special EVM Annual Maintenance Contract
package.
Workshops
Kothamangalam, Muvattupuzha, Piravom, Koothattukulam,
Mulanthuruthy, Vytilla
Topics handled at EVM Honda
1. Vehicle delivery at promised delivery time.
2. Reasonable time for servicing.
3. Washing quality of vehicles.
4. Dealer workshop vales business with customers.
5. Reasonable charges for servicing.
6. Quality of repairs carried out.
7. Courtesy in serving the customers
8. Job satisfactorily completed the first time.
9. Final inspection
10.Road test
11.Dealing with customer satisfaction index cards.
12.Dealing with initial quality study and owners manual feedback
cards.
13.Repeat job handling
Customer Satisfaction at EVM Honda
1. Special customer vehicles to be assigned to be assigned to a
separate group in the workshop. This will enhance customer
relationship building.
2. Service advisors, supervisors and technical advisors mapping and
training.
3. Linkage of service advisor with the customers – each customer
shall have specific advisor for better understanding of customer
needs.
4. Retention of quality manpower through motivation, adequate
salary package and good working conditions.
5. Service advisor meet once in a month, in each city.
6. Formation of quality circle.
7. Repeat job in an area of concern. Computer software for
capturing repeat job based on demanded repairs by the customers
implemented at dealer workshop.
8. Fairness of fees in an area of concern. Service advisors shall
explain to the customers the charges for the job.
9. Follow up to be done by workshop staff with special customers.
10.During post service follow up customer shall be asked to rate
over all satisfaction with the workshop on Excellent, Very good,
Good, Fair, Poor scale.
11.Based on customer feedback cards, parameter wise analysis to be
done at workshop counter measures.
12.Closure of all negative feedback cards within 48 hours.
13.Free check up camps for customer vehicles to be organized on
monthly basis by dealer workshops.
Survey covers performance of the workshop on following factors:
1. Service Initiation
2. Service advisor
3. In Service Experience
4. Service delivery
5. Service quality
6. Vehicle Performance
The six factors along with the attributes is under
Service Initiation
Ease of obtaining appointment for service
Promptness of front man in opening of job card
Service Advisor
Explanation of service to be performed
Treated with courtesy & respect
Honesty
Knowledge / expertise
Fulfillment of commitments’
Listening to request
Asking questions to clarify needs
Understanding the problem with vehicle
Prior explanation of job to be carried out and cost estimate
Vehicle Performance
No of problems experienced in your vehicle
No of times the customer have returned for the same problem
In service experience
Customer lounge cleanliness
Customer lounge comfort
Service delivery
Explanation of work performed
Explanation of charges
Cleanliness & appearance of vehicle
Reasonable time taken for service
Explanation of maintenance tips at the time of delivery
Service Quality
Ability to fix problem right first time
Ability to diagnose problems
Quality of work performed
Thoroughness in fulfilling requests
Availability of parts for service
The satisfaction is also measured in terms of the following statement
of the customers
Likelihood of recommending EVM Honda workshop to friends or
relatives
CHAPTER FOUR
ANALYSIS
AND
INTERPRETATION
ANALYSIS AND INTERPRETATION
Table 4.1: No of problems experienced in vehicle
Attributes No: of respondents Percentage
None 8 13
One 22 37
Two 12 20
Three 11 18
Four 7 12
Total 60 100
Diagram 4.1:
The above diagram shows the no of problems experienced in vehicle
by the customer once was rated 37%, twice by 20%, thrice by 18%,
four by 12% and none by 13%.
Table 4.2: No of times customer has returned for the same problem
Attributes No: of respondents Percentage
None 17 28
One 20 33
Two 18 30
Three 2 3
Four 3 5
Total 60 100
Diagram 4.2:
The above diagram shows that the no of times customer has returned
for the same problem to the workshop once was rated 33%, twice by
30% and 28% are completely satisfied with the service and they had
not returned to the workshop with the same problem.
Table 4.3:
Ease of obtaining appointment for service
Attributes No: of respondents Percentage
Excellent 5 8
Very Good 10 17
Good 29 48
Fair 14 23
Poor 2 3
Total 60 100
Diagram 4.3:
48% of respondents feel that ease of obtaining appointment for
service at the workshop was good, fair by 23%, very good by 17%,
excellent by 8% and 3% rated poor.
Table 4.4:
Promptness of front man in opening of job card
Attributes No: of respondents Percentage
Excellent 3 5
Very Good 13 22
Good 27 45
Fair 15 25
Poor 2 3
Total 60 100
Diagram 4.4:
Promptness of front man in opening of job card is good in view of
45% of respondents, fair by 25%, very good by 22%, excellent by
5% and poor by 3%.
Table 4.5:
Helpfulness in listening to servicing needs
Attributes No: of respondents Percentage
Excellent 1 2
Very Good 17 28
Good 30 50
Fair 9 15
Poor 3 5
Total 60 100
Diagram 4.5:
Out of 60 respondents 50% feel that helpfulness in listening to
servicing needs by the employees are good, 28% rated very good,
5% poor, 15% fair and 2% excellent.
Table 4.6:
Undertaking of specific problems of your vehicle
Attributes No: of respondents Percentage
Excellent 1 2
Very Good 12 20
Good 23 38
Fair 21 35
Poor 3 5
Total 60 100
Diagram 4.6:
38% of the respondents feel that the service advisor was able to
detect the problem with the vehicle and rated good, 35% fair, 20%
very good, 2% excellent and 5% poor.
Table 4.7:
Courtesy in servicing youAttributes No: of respondents Percentage
Excellent 3 5
Very Good 7 12
Good 35 58
Fair 11 18
Poor 4 7
Total 60 100
Diagram 4.7:
Courtesy in servicing is good in view of 58% of respondents, fair by
18%, very good by 12%, excellent by 5% and 7% rated poor.
Table 4.8:
Prior explanation of job to be carried out and cost estimate
Attributes No: of respondents Percentage
Excellent 1 2
Very Good 13 22
Good 27 45
Fair 17 28
Poor 2 3
Total 60 100
Diagram 4.8:
45% of the respondents rated well for the prior explanation given by
the service advisor at the time of receipt of vehicle were good, fair
by 28% and very good by 22% while 3% rated poor.
Table 4.9:
Availability of parts to serve your vehicle
Attributes No: of respondents Percentage
Excellent 5 8
Very Good 26 43
Good 19 32
Fair 6 10
Poor 4 7
Total 60 100
Diagram 4.9:
Out of 60 respondents 43% of them rated very good at the availabity
of parts, 32% good, 8% excellent and 10% fair while 7% rated poor.
Table 4.10:
Appearance of service area
Attributes No: of respondents Percentage
Excellent 10 17
Very Good 15 25
Good 28 47
Fair 7 12
Poor 0 0
Total 60 100
Diagram 4.10:
Appearance of the service area was rated well by 47% of the
respondents, 25% very good, 17% excellent and 12% fair and none
of them rated poor.
Table 4.11:
Appearance of customer loungeAttributes No: of respondents Percentage
Excellent 9 15
Very Good 15 25
Good 25 42
Fair 11 18
Poor 0 0
Total 60 100
Diagram 4.11:
Appearance of the customer lounge was rated good by 42% of the
respondents, 25% very good, 15% excellent and 18% fair.
Table 4.12:
Reasonable time taken for service
Attributes No: of respondents Percentage
Excellent 5 8
Very Good 11 18
Good 32 53
Fair 9 15
Poor 3 5
Total 60 100
Diagram 4.12:
Out of 60 respondents 53% rated good for reasonable time taken for
service, 18% very good, 8% excellent, 15% fair and 5% rated poor.
Table 4.13:
Quality of repairs carried out
Attributes No: of respondents Percentage
Excellent 4 7
Very Good 9 15
Good 27 45
Fair 15 25
Poor 5 8
Total 60 100
Diagram 4.13:
Out of the 60 respondents 45% feel that the quality of the repairs
carried at the workshop is good, 15% rated very good, 25% fair, 7%
excellent and 8% rated poor.
Table 4.14:
Job satisfactorily completed at first time
Attributes No: of respondents Percentage
Excellent 4 7
Very Good 10 17
Good 23 38
Fair 19 32
Poor 4 7
Total 60 100
Diagram 4.14:
From above it can be intercepted that on the first visit 38%
respondents feel that the workshop was able to fix the problem. Out
of 60 respondents overall rating is 17% very good, 7% excellent,
32% fair and 7% rated poor.
Table 4.15:
Timely delivery of vehicle
Attributes No: of respondents Percentage
Excellent 4 7
Very Good 13 22
Good 28 47
Fair 14 23
Poor 1 2
Total 60 100
Diagram 4.15:
Out of 60 respondents 47% rated that they received the vehicle on
time, 22% very good, 7% excellent, 23% fair and 2% rated poor.
Table 4.16:
Appearance of vehicle at the time of delivery
Attributes No: of respondents Percentage
Excellent 8 13
Very Good 19 32
Good 21 35
Fair 10 17
Poor 2 3
Total 60 100
Diagram 4.16:
For overall rating for the appearance of vehicle at the time of
delivery 35 % respondents rated good, 32% very good, 13%
excellent, 17% fair and 3% rated poor.
Table 4.17:
Explanation of work done and charges at the time of delivery
Attributes No: of respondents Percentage
Excellent 1 2
Very Good 12 20
Good 27 45
Fair 17 28
Poor 3 5
Total 60 100
Diagram 4.17:
45% rated well for the explanation given by the service advisor at the
time of receipt of the vehicle and for the attributes very good 20%,
fair 28%, excellent 2% and for poor 5%.
Table 4.18:
Explanation of maintenance tips at the time of delivery
Attributes No: of respondents Percentage
Excellent 5 8
Very Good 4 7
Good 16 27
Fair 25 42
Poor 10 17
Total 60 100
Diagram 4.18:
Out of 60 respondents 42% rated fair for the explanation of
maintenance tips given by the service advisor at the time of delivery,
8% excellent, 7% very good, 27% good and 17% rated poor.
Table 4.19:
Based on your overall experience would you recommend EVM Honda
workshop to friend or relative?
Attributes No: of respondents Percentage
Definitely Yes 19 32
Probably Yes 36 60
Definitely No 2 3
Probably No 3 5
Total 60 100
Diagram 4.19:
Based on overall experience 60% of the respondents will probably
recommend the workshop to friends or relatives, 32 % definitely yes
while 5% marked probably no and 3% definitely no.
CHAPTER FIVE
FINDINGS,
SUGGESTIONS
AND
CONCLUSION
FINDINGS
The study made on EVM Honda proved that the workshop does have
a very efficient and effective management system for customer
relationship building. The study was done on
1. Service Initiation
48% of the respondents feel that it was easy in obtaining
appointment for service and rated good. This shows that the
company pays a great attention for their servicing sector.
45% of the respondents feel that the promptness of frontman in
opening of jobcard was good. This shows that the servicing sector
gives importance to the customer’s complaints about the vehicle and
pays a great attention to customer satisfaction.
2. Service Advisor
Courtesy in servicing is good in view of 58% of respondents. This
shows that the employees treat the customers with care.
50% of the respondents feel that the helpfulness in listening to
service needs by the service advisor was good and 35 % rated fair.
This shows that the service advisor pays more attention to customer
satisfaction.
38% of the respondents feel that the service advisor was able to
detect the problem with the vehicle and rated good, 35% fair, 20%
rated very good. This shows that the service advisor has work
knowledge.
45% of the respondents rated well for the prior explanation given by
the service advisor at the time of receipt of vehicle were good. This
shows that the service advisor takes great care in letting the
customers know the troubles in their vehicle.
3. Service Quality
Out of 60 respondents 43% of them rated very well at the availability
of parts and 32% good. This shows that the workshop is fully
flourished with the vehicle accessories.
Out of the 60 respondents, 45% feel that the quality of the repairs
carried at the workshop is good and 15% rated very good. This
shows that the repairs carried out by the workshop is satisfactory.
38% respondent’s feel that the workshop was able to fix the problem
on their first visit itself and gave good, 32% rated fair. This shows
that workers have knowledge on almost alls sorts of troubles that can
occur to the vehicle and therefore, they are able to fix the problem in
the first visit itself.
4. Service Delivery
53% of the respondents feel that the work was completed in a
reasonable period of time and rated good. This shows that the
employees pay more attention in their efficiency and fixes the
problem in the first visit itself.
47% of the respondents said that they received the vehicle on time
and rated good. This shows that the workshop is able to deliver the
vehicle on time to customers.
35 % respondents rated good for appearance of vehicle at the time of
delivery, 32% very good and 13% excellent. This shows that the
vehicle is properly washed and cleaned by the workshop before
delivery.
45% rated well for the explanation given by the service advisor at the
time of receipt of the vehicle and for the attributes. This shows that
service advisor gives customer satisfaction as his first priority.
Based on overall experience 60% of the respondents will probably
recommend the workshop to friends or relatives, 32 % definitely yes
while 5% marked probable no and 3% definitely no.
Thus it can be intercepted from the above findings that customers at
EVM Honda are satisfied with the services provided although some
areas need improvement.
SUGGESTIONS
When viewed in totality, the customers are overall satisfied with the
services provided at EVM Honda. But to make it more effective and
attractive, the following recommendations are to be made:
Service Initiation: The process of interaction of workshop staff with
the customers needs to be improved. The customer should be
attended to within the least possible time.
Service Advisor: Service advisor plays a very important role in
customer satisfaction. The process of direct interaction with the
customers ensures that any dissatisfaction that the customer has can
be immediately resolved. Also each customer should be linked to a
service advisor to improve long term relationship with the customers.
Delayed Deliveries: This is the single largest parameter influencing
customer satisfaction & they must ensure that vehicle is delivered at
the promised time.
Problem Experienced: This relates to trouble free operation of the
vehicle by customer. To ensure this a Road test by Technical advisor
must be done for proper diagnosis of the problems reported by the
customer while opening job card and also fix the problems right in
first time. Also
Technical advisor must road test all the customer vehicles to ensure
that the vehicle is free from squeaks & rattles.
Service Quality: This relates to quality of work performed. To
ensure these vehicles should be checked by final inspector during
final inspection for thoroughness for in fulfilling all the demanded
repairs by the customer. Proper explanation of the jobs done and
charges shall be done for all the customers. One Master Mechanic
should be available in each group.
User friendly Service: This includes the parameters of fairness of
fees convenience of days of operation, location timings etc. Fairness
of fees is a major area of concern across the service network & we
must ensure that the charges for service are kept at with the
competition.
It is imperative that focus upon the following key areas of workshop
performance on a daily monitoring basis.
1. Timely delivery of vehicle
2. Washing quality
3. Explanation of jobs done and charges while delivering the vehicle
4. No repeat jobs
5. Revisits and repeat job trends to be analyzed and effective
counter measures to be taken.
6. Recognition \ application for best mechanic of the month, based
on Zero repeat job.
7. Top 3 reasons for Revisits to be monitored on monthly basis.
8. Case history of all repeat jobs analysis to be complied and
communicated to all.
9. All demanded repairs must be completed.
CONCLUSION
In this globalised world, service plays a major role to attract
customers. But it is quite difficult to measure the satisfaction derived
from the services provided and very important to measure these
satisfaction levels. EVM Honda’s overall strength lies in building an
organization that is sharply focused on the voice of the customer.
EVM Honda’s consistent performance in the study over the past
several years has resulted in a steady increase in the percentage of its
customers who say they intend to remain loyal to the brand.
Annexure
Questionnaire
Name:
Model:
Phone No:
Please rate Honda Dealer Workshop based on the following
Vehicle Performance
1. No of problems experienced in your vehicle
None
One
Two
Three
Four
2. No of times you have returned for the same problem
None
One
Two
Three
Four
Service Initiation
3. Ease of obtaining appointment for service
Excellent
Very Good
Good
Fair
Poor
4. Promptness of front man in opening of job card
Excellent
Very Good
Good
Fair
Poor
Service Advisor
5. Helpfulness in listening servicing needs
Excellent
Very Good
Good
Fair
Poor
6. Undertaking of specific problems of your vehicle
Excellent
Very Good
Good
Fair
Poor
7. Courtesy in servicing you
Excellent
Very Good
Good
Fair
Poor
8. Prior explanation of job to be carried out and cost estimate
Excellent
Very Good
Good
Fair
Poor
Service Quality
9. Availability of parts to serve your vehicle
Excellent
Very Good
Good
Fair
Poor
10. Job satisfactorily completed at first time
Excellent
Very Good
Good
Fair
Poor
11. Quality of repairs carried out
Excellent
Very Good
Good
Fair
Poor
In-service Experience
12. Appearance of service area
Excellent
Very Good
Good
Fair
Poor
13. Appearance of customer lounge
Excellent
Very Good
Good
Fair
Poor
Service Delivery
14. Reasonable time taken for service
Excellent
Very Good
Good
Fair
Poor
15. Timely delivery of vehicle
Excellent
Very Good
Good
Fair
Poor
16. Appearance of vehicle at the time of delivery
Excellent
Very Good
Good
Fair
Poor
17. Explanation of work done and charges at the time of delivery
Excellent
Very Good
Good
Fair
Poor
18. Explanation of maintenance tips at the time of delivery
Excellent
Very Good
Good
Fair
Poor
19.Based on your overall experience would you recommend EVM
Honda workshop to friend or relative
Excellent
Very Good
Good
Fair
Poor
BIBILOGRAPHY
REFERENCES
Kothari C.R., Research Methodology, Second Edition, New
Delhi, Wishwa Prakashan.
Philip Kotler, Marketing Management, Millennium 10th edition,
Prentice Hall India.
Dr: Radha Oommen Nair, Marketing Management, Prasanna &
Co.
Company manuals and magazines
WEBSITES
www.evmhonda.com
www.customersatisfaction.com
www.wikipidea.com