Advertising and Sales Promotion - Tvs

IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2, No. 4, August 2012

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EVALUATION OF CUSTOMER LOYALTY IN TVS MOTOR CYCLE DEALERSHIP

Merlin D.Jane PG Scholar, Department of Management Studies,

Maria College of Engineering & Technology, Attoor, Marthandam, India

Milon D.Selvam Assistant Professor, Department of Mechanical

Engineering, Karpagam University, Coimbatore, India

Abstract-This study mainly focuses on the factors like quality, price, service, attitudes which were experienced by customers in TVS motor bike dealership. In this study, primary data are collected from 25 customers through questionnaire, 25 samples are selected using simple random sampling. Those 25 customers were interviewed and their personal opinion was collected. Secondary data was collected from the management. The collected data is analyzed using the analytical tool, simple percentage method. As per the findings and conclusion, suggestions are given to the company to take initiation to fulfill the customer desires and needs.

Keywords: quality, price, service, attitudes, simple random sampling, simple percentage method

I. INTRODUCTION

Customer loyalty is all about attracting the exact customer, getting them to buy, buy often, buy in higher quantities and bring you even more customer. The results from many research’s shows that customer satisfaction is more important which has a positive effect on an organization’s profitability.

II. LITERATURE Many researchers have looked into the importance of customer satisfaction. Kotler (2006) defined satisfaction as: “a person’s feelings of pleasure or disappointment resulting from comparing a product are perceived performance (or outcome) in relation to his or her expectations”. In order to achieve customer satisfaction, organizations must be able to satisfy their customers needs and wants (LaBarbera, Priscilla A. and David. Mazursky, 1983). (Wayne D. Hoyer, Deborah J. MacInnis, 2001) said that satisfaction can be associated with feelings of acceptance, happiness, relief, excitement, and delight. There are many factors that affect customer satisfaction. According to Hokanson (1995), these factors include friendly employees, courteous employees, knowledgeable employees, helpful employees, accuracy of billing, billing timeliness, competitive pricing, service quality, good value, billing clarity and quick service. This is shown in (Figure 1).

Figure 1. Factors that Affect Customer

Satisfaction Companies have to find ways of growing and building advantages rather than eliminating disadvantages (Michael Porter). “Building customer loyalty is not a choice any longer with businesses: it’s the only way of building sustainable competitive advantage. Building loyalty with key customers has become a core marketing objective shared by key players in all industries catering to business customers. The strategic imperatives for building a loyal customer base are as:

o Focus on key customers o Proactively generate high level of customer

satisfaction with every interaction o Anticipate customer needs and respond to

them before the competition does o Build closer ties with customers o Create a value perception”. (Sharat Bansal

and Gagan Gupta,2001) A. Effect of Customer Satisfaction on Profitability

Customer satisfaction does have a positive effect on an organization’s profitability (Jusuf Zekiri, 2011). According to (Wayne D. Hoyer, Deborah J. MacInnis, 2001), satisfied customers form the foundation of any successful business as customer satisfaction leads to repeat purchase, brand loyalty, and positive word of mouth. John Coldwell (2001):


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“Growth Strategies International (GSI) performed a statistical analysis of Customer Satisfaction data encompassing the findings of over 20,000 customer surveys conducted in 40 countries by InfoQuest. The conclusion of the study was:

o A Totally Satisfied Customer contributes 2.6 times as much revenue to a company as a Somewhat Satisfied Customer.

o A Totally Satisfied Customer contributes 17 times as much revenue as a Somewhat Dissatisfied Customer.

o A Totally Dissatisfied Customer decreases revenue at a rate equal to 1.8 times what a Totally Satisfied Customer contributes to a business”.

Aaker (1995) said that the strategic dimension for an organization includes becoming more competitive through customer satisfaction/brand loyalty, product/service quality, brand/firm associations, relative cost, new product activity, and manager/employee capability and performance (Figure 2)

Figure 2. Performance Measures Reflecting Long-

Term Profitability B. Simple Random Sampling In statistics, a simple random sample is a subset of individuals (a sample) chosen from a larger set (a population). Each individual is chosen randomly and entirely by chance, such that each individual has the same probability of being chosen at any stage during the sampling process, and each subset of k individuals has the same probability of being chosen for the sample as any other subset of k individuals. This process and technique is known as simple random sampling. C. Need for the Study

To know the level of loyalty of customers on the products and services provided at St. Antony TVS, Marthandam. The main purpose of the study is to examine the influence of customer loyalty on customer’s purchase behaviors, owing to the

increasing market presence and financial success of retail business. D. Objectives of the Study

The main objectives of the study are; o To analyze the customer loyalty in St.

Antony TVS, a dealer of TVS motors. o To find out the satisfaction of

customers on purchasing the product(s) and service(s) in St. Antony TVS.

o To find out the delivery services of product(s) in St. Antony TVS.

E. Collection of Data a. Primary Data: Data which are collected fresh and for the first time and thus happens to be original in character. Primary data are gathered from customers with the help of a structured questionnaire and personal interviews. b. Secondary Data: Data that collected from primary data i.e., they are already exiting somewhere. Secondary data are collected from magazines, corporate journals and web sites. F. Type of Research

The study is a descriptive one and the researcher has used Simple Category Scale and Multiple Choice, Single Response Scale for collecting the data. G. Sampling Design

A sample design is the defined plan for obtaining a sample from a given population. It refers to the methods and procedures for selecting the samples for the study. The researcher has resort to sampling method of data collection. a. Sampling Technique

In this study simple random sampling is used. b. Sample Size

Sample unit or population is the customers in the automobile dealership. In this study, the Sample size is 25 customers. Tools for analysis

In this method percentage method technique is used to analyze the data. Period of the study

The period of the study was 30 days.

H. Data Analysis and Interpretation

a. Category of Respondents Table No.1 Category of Respondents

S. No. Category No. of respondents Percentage

1 Below 20 - 2 21-30 9 36%


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3 31-40 8 32%

4 41-50 6 24% 5 51 & above 2 8%

Total 25 100%

Figure no 3 Category of Respondents

Table No.1 shows that 36% of respondents

were of 21-30 years of age, 32% of respondents were of 31-40 years of age, 24% of respondents were of 41-50 years of age and 8% of respondents were of 51 years of age and above. This has been plotted in figure no.1.

b. Gender of respondents

Table No.2 Gender of respondents S. No. Sex No. of

respondents Percentage

1 Male 15 60%

2 Female 10 40%

Total 25 100%

Figure No 4 Gender of respondents

Table No.2 shows that 60% of the respondents were males and 40% of the respondents were females. This has been plotted in figure no.4

c. Purpose of the product(s)/service(s) being

bought by the customers

Table No. 3 Purpose of the product(s)/service(s) being bought by the customers

S. No. Opinion No. of respondents Percentage

1 For self 12 48%

2 For a close friend/relative 4 16%

3 For business colleague 2 8%

4 For family member 7 28%

Total 25 100%

Figure No 5 Purpose of the product(s)/service(s)

being bought by the customers Table No.3 shows that 48% of respondents buy the product(s)/service(s) for self, 16% of respondents buys for a close friend/relative, 8% of respondents buys for business colleague and 28% of respondents buys for family member. This has been plotted in figure no.5

d. Occasion for buying the products by the

customers Table No.4 Occasion for buying the products by

the customers S. No. Opinion No. of


1 On Festival offers 6 24%

2 For Thanks giving 3 12%

3 On Wedding anniversary 3 12%

4 On Partner’s birthday 3 12%

5 No particular occasion 10 40%

Total 25 100%

Figure No. 6 Occasion for buying the products by

the customers


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Table No.4 shows that 24% of respondents buy the products on festival offers, 12%of respondents for thanks giving, 12% of respondents on wedding anniversary, 12% of respondents on partner’s birthday, 40% of respondents on no particular occasion. This has been plotted in figure no.6

e. Motivation for buying the products by the

customers from the company

Table No.5 Motivation for buying the products by the customers from the company


1 Need requirement 9 36%

2 A personal deep desire 4 16%

3 Value for money 3 12%

4 Attractiveness of the product 3 12%

5 Peer recommendation 6 24%

Total 25 100%

Figure No 7 Motivation for buying the products

by the customers from the company

Table No.5 shows that 36% of respondents have the opinion of need requirement, 16% of respondents have the opinion of a personal deep desire, 12% of respondents have the opinion of value for money, 12% of respondents have the opinion of attractiveness of the product and 24% of respondents have the opinion of peer recommendation as the motivation for buying the product. This has been plotted in figure no.7

f. Rate of the company in understanding the requirements and providing with compatible solutions

Table No. 6 Rate of the company in understanding the requirements and providing with compatible

solutions S. No. Opinion No. of


1 Excellent 14 56%

2 Good 6 24%

3 Average 4 16%

4 Unsatisfactory 1 4%

5 Poor -

Total 25 100%

Figure No 8 Rate of the company in

understanding the requirements and providing with compatible solutions

Table No.6 shows that 56% of respondent’s

rate as excellent, 24% of respondents rate as good, 16% of respondents rate as average and 4% of respondents rate as unsatisfactory of the company in understanding the requirements and providing with compatible solutions. This has been plotted in figure no.8

g. Rate of quality of the products of the company

Table No.7 Rate of quality of the products of the

company S. No. Opinion No. of


1 Excellent 12 48%

2 Good 10 40%

3 Average 2 8%

4 Unsatisfactory 1 4%


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5 Poor -

Total 25 100%

Figure No 9 Rate of quality of the products of the

company

Table No.7 shows that 48% of respondent’s rate as excellent, 40% of respondent’s rate as good, 8% of respondent’s rate as average and 4% of respondents rate as unsatisfactory of the quality of the products of the company. This has been plotted in figure no.9

h. Rate of quality of the services of the company

Table No. 8 Rate of quality of the services of the

company S. No. Opinion No. of


1 Excellent 12 48%

2 Good 11 44%

3 Average 2 8%

4 Unsatisfactory -

5 Poor -

Total 25 100%

Figure No. 10 Rate of quality of the services of the

company Table No.8 shows that 48% of respondents

rate as excellent, 44% of respondents rate as good and 8% of respondents rate as average of the quality

of the services of the company. This has been plotted in figure no.10

i. Rate of the company’s efficiency in responding the queries of the customers

Table No. 9 Rate of the company’s efficiency in

responding the queries of the customers S. No. Opinion No. of


1 Excellent 12 48%

2 Good 11 44%

3 Average 2 8%

4 Unsatisfactory - -

5 Poor - -

Total 25 100%

Figure No. 11 Rate of the company’s efficiency in

responding the queries of the customers Table No.9 shows that 48% of respondent’s

rate as excellent, 44% of respondent’s rate as good and 8% of respondents rate as average of the company’s efficiency in responding the queries of the customers. This has been plotted in figure no.11 j. Aspects of the customer service of the company, where improvement is needed Table No.10 Aspects of the customer service of the

company, where improvement is needed S. No. Opinion No. of


1 Efficiency of call handling 4 16%

2 Communications and follow ups 6 24%

3 Promptness in resolving issues 5 20%

4 Courteousness of employees 5 20%

5 Response time 5 20%

Total 25 100%


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Figure No.12 Aspects of the customer service of

the company, where improvement is needed Table No.10 shows that 16% of respondents

have the opinion of efficiency of call handling, 24% of respondents have the opinion of communications and follow ups, 20% of respondents have the opinion of promptness in resolving issues, 20% of respondents have the opinion of courteousness of employees and 20% of respondents have the opinion of response time as the aspects of the customer service of the company, where improvement is needed. This has been plotted in figure no.12

l. Satisfaction of the customers in purchasing the company’s product(s) and service(s)

Table No. 11 Satisfaction of the customers in

purchasing the company’s product(s) and service(s)


1 Highly satisfied 9 36%

2 Satisfied 10 40%

3 Neither 6 24%

4 Dissatisfied - -

5 Highly dissatisfied - -

Total 25 100%

Figure No.13 Satisfaction of the customers in

purchasing the company’s product(s) and service(s)

Table No.11 shows that 36% of respondents were highly satisfied, 40% of respondents were

satisfied, and 24% of respondents were neither satisfied nor dissatisfied with the purchasing of company’s product(s) and service(s). This has been plotted in figure no.13

m. Frequency of the customers in buying the

company’s product

Table No.12 Frequency of the customers in buying the company’s product


1 Once in six months 3 12%

2 Once an year 4 16%

3 Once in three years 8 32%

4 Once in five years 10 40%

Total 25 100%

Figure No. 14 Frequency of the customers in

buying the company’s product Table No.12 shows that 12% of respondents

buy the company’s product once in six months, 16% of respondents buy the company’s product once an year, 32% of respondents buy the company’s product once in three years and 40% of respondents buy the company’s product once in five years. This has been plotted in figure no.12 n. Helpfulness of the staff in the company in explaining the benefits of the product

Table No. 13 Helpfulness of the staff in the

company in explaining the benefits of the product S. No. Opinion No. of



2 Satisfied 10 40%

3 Neither 5 20%


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4 Dissatisfied 1 4%

5 Highly dissatisfied - -

Total 25 100%

Figure No.15 Helpfulness of the staff in the

company in explaining the benefits of the product

Table No.13 shows that 36% of respondents were highly satisfied, 40% of respondents were satisfied, 20% of respondents were neither satisfied and nor dissatisfied, 4% of respondents were dissatisfied with the helpfulness of the company in explaining the benefits of the product. This has been plotted in figure no.15

o. Satisfaction of the customers and the continuity of the customers in the buying behavior of the product from the company in future.

Table No.14 Satisfaction of the customers and the

continuity of the customers in the buying behavior of the product from the

company in future S. No. Opinion No. of


1 Yes 14 56%

2 No 5 20%

3 Can’t say 6 24%

Total 25 100%

Figure No. 16 Satisfaction of the customers and

the continuity of the customers in the buying behavior of the product from the

company in future

Table No.14 shows that 56% of respondents are satisfied and continue to buy the product from the company in future, 20% of respondents will not continue buying and 24% of respondents remain neutral. This has been plotted in figure no.16

p. Satisfaction of the customers and the tendency of recommending the company’s product to others

Table No. 15 Satisfaction of the customers and the

tendency of recommending the company’s product to others


1 Yes 14 56%

2 No 6 24%

3 Can’t say 5 20%

Total 25 100%

Figure No.17 Satisfaction of the customers and the

tendency of recommending the company’s product to others

Table No.15 shows that 56% of respondents are satisfied with the product and will recommend to others, 24% of respondents will not recommend the product and 20% of respondents stay neutral. This has been plotted in figure no.17

q. Satisfaction of the customers with the delivery services of the company Table No.16 Satisfaction of the customers with the

delivery services of the company S. No. Opinion No. of



2 Satisfied 10 40%

3 Neither 4 16%

4 Dissatisfied 1 4%

5 Highly dissatisfied -

Total 25 100%


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Figure No 18 Satisfaction of the customers with

the delivery services of the company Table No.16 shows that 40% of respondents

were highly satisfied, 40% of respondents were satisfied, 16% of respondents were neither satisfied nor dissatisfied and 4% of respondents were dissatisfied with the delivery services of the company. This has been plotted in figure no.18

r. Opinion of customers in keeping them loyal to buy the product of the company

Table No.17 Opinion of customers in keeping them loyal to buy the product of the company


1 Good product and service 3 12%

2 Courteous

behavior of sales demonstrators

4 16%

3 Good sales promotion strategies

4 16%

4

Solving customer

complaints in time

5 20%

5 Giving discounts 2 8%

6

Giving incentives on ‘introduce a friend’ offer

2 8%

7 Taking customer

feedback regularly

5 20%

Total 25 100%

Figure No.19 Opinion of customers in keeping them loyal to buy the product of the company

Table No.17 shows that 12% of respondents

have the opinion of good product and service, 16% of respondents have the opinion of courteous behavior of sales demonstrators, 16% of respondents have the opinion of good sales promotion strategies, 20% of respondents have the opinion of solving customer complaints in time, 8% of respondents have the opinion of giving discounts, 8% of respondents have the opinion of giving incentives on ‘introduce a friend’ offer, and 20% of respondents have the opinion of taking customer feedback regularly for keeping the customers loyal to buy the product of the company. This has been plotted in figure no.19

I. FINDINGS The results of study in the TVS motor bike dealership

shows that, 1. 36% of respondents are within the age group of

21 – 30 years of age. 2. 60% of respondents are males. 3. 48% of respondents bought the

product(s)/service(s) for themselves. 4. The customers bought the products at no

particular occasion (40%) 5. The motivation for buying the products was 36%

on the basis of the need requirement. 6. In understanding the requirements of the

customers and providing with compatible solutions by the company, 56% of customer response was excellent for the company.

7. 48% of respondents rates excellent for the quality of the products of the company.

8. 48% of respondents rates excellent for the quality of the services of the company.

9. The company’s efficiency in responding the customer queries fall on the category of excellent.

10. The aspects of customer service in which improvement is needed are communication and follow ups.


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11. The customers are satisfied (40%) in purchasing the products/services from the company.

12. 40% of respondents buy the product once in five years.

13. 40% of respondents are satisfied with the helpfulness of the staff in explaining the benefits of the product.

14. 56% of customer response was ‘yes’ for the continuity of the buying behavior of the product from the company in future.

15. The customers were satisfied with the products/services and the tendency of recommending the products/services to others was high (56%) among the respondents.

16. 40% of the customers are highly satisfied and satisfied respectively with the delivery services of the company.

17. The opinion of the customers in keeping them loyal to buy the product of the company falls on two categories as solving the customer complaints in time (20%) and taking customer feedback regularly (20%).

SUGGESTIONS

The company have above half a percent satisfied customers as per the results of the study, hence the company should take measure like excellent sales promotion strategies, courteousness of the staff members, solving complaints in time, providing beneficiary offers to withstand and improve the level of satisfaction of the customers.

CONCLUSION From the study, it was found that the

customer loyalty of the company is at an excellent position because of the high level product satisfaction and the customer satisfaction. Though there is a good position in the market, there are some factors that may affect the satisfaction level of customers. If the company takes pain to sort out those factors and take sufficient measures to improve the level of satisfaction, it can further improve its position in the current market status.

Acknowledgment Author would like to thank the management of St.Anthony TVS, Marthandam for permitting to conduct the study on customer loyalty in their firm.

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AUTHOR’S PROFILE

Merlin D. Jane is a post graduate student of management studies in Maria College of Engineering and Technology, Attoor, affiliated to Anna University as well a graduate of Occupational Therapy from SRM College of Occupational Therapy, Chennai, affiliated to Dr.M.G,R Medical University. She has a working experience as Occupational Therapist for 3 years and a half years. Her research interest includes the effect of mood in performance and management strategies in hospital industry and educational institutions.

Milon D.Selvam is a post graduate in manufacturing engineering from Government College of Technology, affiliated to Anna University, Coimbatore. Presently working as an Assistant Professor in mechanical engineering, Karpagam University. Coimbatore & currently doing research in the field of machining & material science. He has 3 years of experience in teaching. His research interest includes machining parameter optimization and metallurgy

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Advertising and Sales Promotion - Tvs