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8/13/2019 Customer Satisfaction in Maruti Suzuki
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CUSTOMER SATISFACTION IN
MARUTI SUZUKI
CUSTOMER SATISFACTION
MEANING
Customer satisfaction, a term frequently used in marketing, 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. !n a survey of nearly ## senior marketing managers, $% percent responded
that they found a customer satisfaction metric very useful in managing and monitoring their
businesses.
!t is seen as a key performance indicator within business and is often part of a &alanced
'corecard. !n 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.
"ithin organiations, customer satisfaction ratings can have powerful effects. *hey focus
employees on the importance of fulfilling customers+ expectations. urthermore, when these
ratings dip, they warn of problems that can affect sales and profitability. *hese metrics quantify
an important dynamic. hen a brand has loyal customers, it gains positive word-of-mouth
marketing, which is both free and highly effective."
*herefore, it is essential for businesses to effectively manage customer satisfaction. *o be able
do this, firms need reliable and representative measures of satisfaction.
"!n researching satisfaction, firms generally ask customers whether their product or service has
met or exceeded expectations. *hus, expectations are a key factor behind satisfaction. hen
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customers have high expectations and the reality falls short, they will be disappointed and will
likely rate their experience as less than satisfying. or this reason, a luxury resort, for example,
might receive a lower satisfaction rating than a budget moteleven though its facilities and
service would be deemed superior in /absolute/ terms.
*he importance of customer satisfaction diminishes when a firm has increasedbargaining power.
or example, cell phoneplan providers, such as 0*1* and 2erion, participate in an industry
that is an oligopoly, where only a few suppliers of a certain product or service exist. 0s such,
many cell phone plan contracts have a lot offine printwith provisions that they would never get
away if there were, say, a hundred cell phone plan providers, because customer satisfaction
would be way too low, and customers would easily have the option of leaving for a better
contract offer.
*here is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms.
2
http://en.wikipedia.org/wiki/Bargaining_powerhttp://en.wikipedia.org/wiki/Bargaining_powerhttp://en.wikipedia.org/wiki/Cell_phonehttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Verizonhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Cell_phonehttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Verizonhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Bargaining_power8/13/2019 Customer Satisfaction in Maruti Suzuki
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PURPOSE OF CUSTOMER SATISFACTION
Customer satisfaction provides a leading indicator of consumer purchase intentions and
loyalty." "Customer satisfaction data are among the most frequently collected indicators of
market perceptions. *heir principal use is twofold3"
"ithin organiations, the collection, analysis and dissemination of these data send a message
about the importance of tending to customers and ensuring that they have a positive experience
with the company+s goods and services."
"0lthough sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firm+s customers will make
further purchases in the future. 4uch research has focused on the relationship between customer
satisfaction and retention. 'tudies indicate that the ramifications of satisfaction are most strongly
realied at the extremes." 5n a five-point scale, "individuals who rate their satisfaction level as
/6/ are likely to become return customers and might even evangelie for the firm. (0 second
important metric related to satisfaction is willingness to recommend. *his metric is defined as
"*he percentage of surveyed customers who indicate that they would recommend a brand to
friends." hen a customer is satisfied with a product, he or she might recommend it to friends,
relatives and colleagues. *his can be a powerful marketing advantage.) "!ndividuals who rate
their satisfaction level as /%,/ by contrast, are unlikely to return. urther, they can hurt the firm by
making negative comments about it to prospective customers.illingness to recommendis a
key metric relating to customer satisfaction."
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CONSTRUCTION OF CUSTOMER SATISFACTION
5rganiations need to retain existing customers while targeting non-
customers. 4easuring customer satisfaction provides an indication of how successful the
organiation is at providing products and7or services to the marketplace.
Customer satisfaction is measured at the individual level, but it is almost always reported at an
aggregate level. !t can be, and often is, measured along various dimensions. 0 hotel, for
example, might ask customers to rate their experience with its front desk and check-in service,
with the room, with the amenities in the room, with the restaurants, and so on. 0dditionally, in a
holistic sense, the hotel might ask about overall satisfaction /with your stay.
0s research on consumption experiences grows, evidence suggests that consumers purchase
goods and services for a combination of two types of benefits3 hedonic and utilitarian. 8edonic
benefits are associated with the sensory and experiential attributes of the product. 9tilitarian
benefits of a product are associated with the more instrumental and functional attributes of the
product (&atra and 0thola %::#).
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the
state of satisfaction will vary from person to person and product7service to product7service. *he
state of satisfaction depends on a number of both psychological and physical variables which
correlate with satisfaction behaviors such as return and recommend rate. *he level of satisfaction
can also vary depending on other options the customer may have and other products against
which the customer can compare the organiation/s products.
ork done by ;arasuraman, ective and quantitative in nature. ork done by
Cronin and *aylor propose the "confirmation7disconfirmation" theory of combining the "gap"
described by ;arasuraman,
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their perception and expectation of performance of the organiation being measured. *heir
satisfaction is generally measured on a five-point scale.
"Customer satisfaction data can also be collected on a %#-point scale."
"@egardless of the scale used, the ob>ective is to measure customers+ perceived satisfaction with
their experience of a firm+s offerings." !t is essential for firms to effectively manage customer
satisfaction. *o be able do this, we need accurate measurement of satisfaction.
Aood quality measures need to have high satisfaction loadings, good reliability, and low error
variances. !n an empirical study comparing commonly used satisfaction measures it was found
that two multi-item semantic differentialscales performed best across both hedonic and
utilitarian service consumption contexts. 0ccording to studies by irt 1 ?ee (##B), they
identified a six-item $-point semantic differentialscale (e.g., 5liver and 'wan %:=B), which is a
six-item $-point bipolar scale, that consistently performed best across both hedonic and
utilitarian services. !t loaded most highly on satisfaction, had the highest item reliability, and had
by far the lowest error variance across both studies. !n the study,the six items asked respondents+
evaluation of their most recent experience with 0*4 services and ice cream restaurant, along
seven points within these six items3 please me to displeased me, contented with to disgusted
with, very satisfied with to very dissatisfied with, did a good >ob for me to did a poor >ob for
me, wise choice to poor choice and happy with to unhappy with.
0 semantic differential, which is a four-item $-point bipolar scale, was the second best
performing measure, which was again consistent across both contexts. !n the study, respondents
were asked to evaluate their experience with both products, along seven points within these four
items3 satisfied to dissatisfied, favorable to unfavorable, pleasant to unpleasant and ! like
it very much to ! didn+t like it at all.
*he third best scale was single-item percentage measure, a one-item $-point bipolar scale .0gain,
the respondents were asked to evaluate their experience on both 0*4 services and ice cream
restaurants, along seven points within delighted to terrible.
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!t seems that dependent on a trade-off between length of the questionnaire and quality of
satisfaction measure, these scales seem to be good options for measuring customer satisfaction in
academic and applied studies research alike. 0ll other measures tested consistently performed
worse than the top three measures, and7or their performance varied significantly across the two
service contexts in their study. *hese results suggest that more careful pretesting would be
prudent should these measures be used.
inally, all measures captured both affective and cognitive aspects of satisfaction, independent of
their scale anchors. 0ffective measures capture a consumer+s attitude (liking7disliking) towards a
product, which can result from any product information or experience. 5n the other hand,
cognitive element is defined as an appraisal or conclusion on how the product+s performance
compared against expectations (or exceeded or fell short of expectations), was useful (or not
useful), fit the situation (or did not fit), exceeded the requirements of the situation (or did not
exceed)
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AWARDS FOR COMPAN
A!ar"s for #$%$
Rit& 'ot fo((o!in' a!ar"s
A!ar"s for #$$)
Rit& 'ot fo((o!in' a!ar"s
D.E. 0'8!0 ;0'0!C @F;5@*
4aruti 'uuki @anks 8ighest in 0utomotive Customer 'atisfaction in !ndia
for a %Bth Consecutive Gear.
SINGAPORE* +% Octo,er #$%# or a %Bth consecutive year, 4aruti 'uuki ranks highest in
customer satisfaction with authoried dealer service in !ndia, according to the D.E. ;ower 0sia
;acific #% !ndia Customer 'ervice !ndex (C'!) 'tudies released on B% 5ctober #%.
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*he study, now in its %Hth year, measures satisfaction among vehicle owners who visited their
authoried dealership service center for maintenance or repair work during the first % to I
months of ownership, which typically represents the warranty period. 5verall satisfaction is
determined by examining seven measures (listed in order of importance)3 problems experiencedJ
service qualityJ user-friendly serviceJ service advisorJ service initiationJ service deliveryJ and in-
service experience.
*he study finds that vehicle owners increasingly consider faster turnaround in service,
door-step service and alternate transportation arrangements post vehicle drop-off as essential to
satisfaction.
'atisfaction is significantly higher among vehicle owners whose dealership provides analternate form of transportation while their vehicle is being serviced than among those who do
not receive this service. Correspondingly, during the past three years, the gap in satisfaction
between these two groups of customers has increased by I% points. *he expectation for this
service continues to outpace the delivery of it from dealerships by nearly : percent.
Eoor-step service for vehicle owners also contributes to higher satisfaction scores.
5verall satisfaction is IB points higher among owners whose vehicle is picked up from and
dropped off at their home or work by the dealership than among those who take their vehicle to
the dealership service center themselves.
"2ehicle owners view the service process as an essential errand that needs to be
completed," said 4ohit 0rora, executive director D.E.;ower 0sia ;acific. "ith increasing stress
of the daily commute, time commitments and other complexities in their daily life, owners highly
appreciate the actions that dealers take to mitigate the effort required for service."
5verall customer satisfaction with the dealership service experience has increased by %#
points from #%% to =BI in #%, demonstrating that operational improvements continue to
remain a focus for the industry. 'atisfaction has improved in all five factors, with the largest
increase in the service quality factor.
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*he study also finds that during the past three years, there has been a significant
reduction in the cost of maintaining and repairing vehicles, which correlates to the improvement
in the overall quality of vehicles being produced. !n #%, vehicle owners have experienced
significantly fewer problems, compared with #%#. *his year, %# percent of owners have
experienced a problem with their petrol-fueled vehicle during the initial % to I months of
ownership, down from %$ percent in #%#. 'imilarly, the percentage of owners who have
experienced a problem with their diesel-powered vehicle has declined to %I percent in #% from
I percent in #%#.
"hile reduction in the number of problems experienced during ownership has
contributed to the reduction in the cost of vehicle maintenance and repairs for owners, the overall
cost of running vehicles has gone up," said 0rora. "uel price increases are the primary reason
for the rising costs, especially for petrol models, for which a %B percent reduction in the cost of
maintenance has been offset by a B% percent increase in the cost spent on fuel between #%# and
#%."
4aruti 'uuki ranks highest in customer satisfaction with dealer service for a %Bth
consecutive year, with a score of =$: points. 4aruti 'uuki performs particularly well across all
factors. 4ahindra is the most improved make in #%, significantly improving across all five
factors of service operations.
2ehicle owners who are highly satisfied with dealer service tend to have higher levels of
advocacy and loyalty to the dealership and the brand. 0mong owners who are highly satisfied
with their service experience at the dealership (service satisfaction scores averaging :B# and
above), :B percent indicate they "definitely would" revisit their service dealer for post-warranty
service. !n contrast, only B= percent of less-satisfied owners (service satisfaction scores
averaging $H= and below) say the same. 'imilarly, =6 percent of highly satisfied owners indicate
they "definitely would" purchase their next vehicle from the service dealer, compared with >ust
B% percent of those who are less satisfied.
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*he #% !ndia Customer 'ervice !ndex 'tudy is based on evaluations from $,6:I vehicle
owners. *he study was fielded from 4ay to 0ugust #% and includes owners who purchased
their vehicle between 4ay #%# and 0ugust #%%.*he Company takes great pride in sharing that
customers have rated 4aruti 'uuki first o in Customer 'atisfaction 'urvey conducted by
independent body, D.E.;ower 0sia ;acific. !t is %Bth time in a row.
*he award mirrors the company/s commitment towards "Customer O,session".
T-e com.an/ 0ouc-es for customer satisfaction1 For its sincere efforts it -as ,een
rate" 2,/ customers3 first in customer satisfaction amon' a(( car ma4ers in In"ia for nine
/ears in a ro! in annua( sur0e/ ,/ 5 D Po!er Asia Pacific1
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5D POWER ASIA PACIFIC CSI INDE6
4aruti 'uuki ranks highest in customer satisfaction with dealer service for a %Bth consecutive
year, with a score of =$: points. 4aruti 'uuki performs particularly well across all factors.
4ahindra is the most improved make in #%, significantly
improving across all five factors of service operations.
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AWARENESS OF CUSTOMERS
KE INITIATI7ES FOR SATISFING CUSTOMERS
Car .ic4u. 8 "e(i0er/ faci(it/ for !omen car o!ners
Kuote 9nquote3 "*he study finds that vehicle pickup and delivery before and after
service has a strong impact on customer satisfaction. !n particular, customers who say that their
vehicle was picked up from their doorstep before service and delivered to the same point after
service are notably more delighted with their after-sales service experience, compared with
customers who do not receive this service...."
Car Safet/ "e0ice* Immo,i(i&er
*he company used technology to meet customer needs and even delight them. ollowing
feedback that the company/s cars were more prone to theft owing to their resale value, the
company worked on an anti-theft immobilier or "!-CatsJ" system for all its new cars.
Settin' u. 9E:.ress Ser0ice ;a/s9 8 9# < Tec-nician ;a/s9
0s the name suggests the company set out to delight its customers by offering them faster
car service by introducing new concepts such as Fxpress 'ervice &ays 1 - *echnicians &ays.
*hese are done for customers who are hard pressed for time.
&oth the initiatives undertaken in this direction have helped improve customer interface and also
helped increase the productivity and capacity of existing workshops.
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Me'a Cam.s
*he company aggressively conducts /4ega Camps/ throughout the country round the year.
0ctivities undertaken during a mega camp include complimentary car wash, 0C 1 ;ollution
check up, oil and fuel top ups, wheel alignments etc.
0part from mega camps workshop camps like 07C checkup camps, ;9C and general check-up
camps, ?ocality camps , ;re monsoon camps etc are also regularly conducted as part of customer
connect initiatives.
Ser0ice at /our Door Ste. t-rou'- Maruti Mo,i(e Su..ort
0nother unique initiative is the door step service facility through 4aruti 4obile 'upport.
4aruti 4obile 'upport is a first of it/s kind initiative and is expected not only to help the
company reach out customers in metro cities but also as a mean to reach semi urban 7rural areas
where setting up of new workshop may not be viable.
Com.(ete Car Nee"s
*he company/s effort of providing all car-related needs -- from learning to drive a car at 4aruti
Eriving 'chools to car insurance, extended warranty and eventually exchanging the existing car
for a new one -- under one roof at dealerships also enhances customer satisfaction.
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DATA ANA=SIS AND INTERPRETATION
Ta,(e %1 S-o!in' Occu.ation of Customer
IHL of the customers are of opinion that 4aruti should improve in quality.
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?UES1 ) Ta,(e s-o!in' customer@s re.urc-ase intention1
Res.on"ent Remar4 No. of respondentsGes $I
No H
Inter.retation >
!t is observed that, $IL of the customers are ready to repurchase the 4aruti+s car, HL are not
ready to purchase the car.
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?UES1 %% Ta,(e s-o!in' customer@s recommen"ation intention1
Res.on"ent Remar4 No. of respondents
/e! 72
o 2
Inter.retation >
!t is observed that, $L of the customers are ready to recommend the car to the friends and
relative, =L are not ready to recommend the car to the friends and relatives.
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FINDINGS
!t is observed that
*he prospective segment is from the business and self employed class.
*he company should concentrate on the age group H-BI.
4aruti should continue to maintain the standard of the service.
!t is observed that, IL of the respondent are of opinion that vehicles are as per
expectation, and #L are saying its below expectation.
Company should improve its post sales service.
*he customer highest priority is for the mileage.
Customer are highly satisfied with the service which help in customer retention
!t is observed that, IHL of the customers are of opinion that 4aruti should improve in
quality, and %HL of the opinion that 4aruti should improve in price.
Customers are highly satisfied which help in customer retention.
Company has created goodwill among the customers which will help them to recommend
car to friends and relatives.
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SUGGESTIONS
0fter conducting the survey and knowing the market, ! realied that3
*he company should keep in mind the need of young generation.
Company should improve the promotion strategy of product.
Company should improve the promotion strategy of 0dd-on services.
!t will be beneficial for the company to make the warehouse near to the showroom and
there should be roof facility, adequate security facility in the warehouse.
*he Company should know its customers satisfaction level throughout doing periodic
surveys. ;eriodic surveys can treat customer satisfaction directly.
Company should improve7upgrades its employee+s product knowledge, market situation,
and its competitor+s knowledge by giving proper training to employee.
Company should upgrade or innovate its new product.
*he Company should not only concentrate on the customer satisfaction but also thecompany led to monitor their competitor+s performance in their areas of operations.
*he Company should make changes according to the other competitors 1 according to
the customer+s expectations.
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CONC=USION
!t has been observed that most customers are satisfied with pre sales services similarly
most of these customers are dissatisfied with the post sales service which is the matter of concern
for the company. 4aruti 'uuki needs to improve some parts of products specifically the
interiors. 8igh customer satisfaction level helps the company to retain its existing customer as
well as generate new customer through word to mouth publicity.
Customer satisfaction index is a good tool to make improvements in the products and
services of the company. 0nd therefore should utilie carefully 1 kept as confidential as
possible.
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=IMITATIONS
*hough the research was conducted properly, the probability of errors 1 biases
kept is minimumJ still some errors occurred because of certain limitation.
T-ese are as fo((o!s*ective-of-maruti-suuki
http377www.marutisuuki.com74aruti-'uuki-@anks-8ighest-in-0utomotive-Customer-
'atisfaction-in-!ndia-or-Ninth-Consecutive-Gear.aspx
http377indiatoday.intoday.in7story7maruti-suuki-witnesses-improved-demands-
report7%7I#I#.html
NEWSPAPER
Newspaper-business standards, *imes of !ndia, etc.
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APPENDI6
?UESTIONNAIRE
Gen"er * ( )4ale ( ) emale
A'e *
Occu.ation * ( );rivate Fmployee ( ) Aovt Fmployee ( ) &usinessman
( ) ;rofessional
Mont-(/ Income* ( ) &elow 6### ( ) &etween 6### to %####
( ) &etween %6### to 6### ( ) 0bove 6###
%. hich 4odel of 4aruti are you usingP
Car3-QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
. rom how many years you are using this modelP
a) #- years b) -I years c) I-H years d) H-= years
B. ;reference for choosing particular carP
a) Comfort b) 4ileage c) eature d) ;erformance
e) ?ooks f) ;rice g) 5thers ;lease specify3-QQQ
I. 0re you satisfied with your carP
a) Ges b)No
!f No, give the reasons for the same
a)Comfort b) 4ileage c) eature
d) ;erformance e) ?ooks f) ;rice
6. Eo you prefer to get 4A0 fitted in your car or any local accessoriesP
a) 4A0 b) ?ocal
H. hat is your ;re-sales experience while purchasing the carP
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a) Fxcellent b) Aood c) 0verage d) &elow 0verage
$. hat is your ;ost-sales experience after purchasing the carP
a) Fxcellent b) Aood c) 0verage d) &elow 0verage
=. 0re you satisfied with the features of 4arutiP(%Rpoor Raverage BRgood IRvery good 6RFxcellent)
a) ComfortQQ. 76 b) 4ileageQQ. 76 c) eature QQ. 76
d) 'afetyQQ. 76 e) ?ooksQQ. 76 f) ;riceQQ. 76
:. 8ow will you rate 4aruti on the basis of 2alue for 4oneyP
a) 0bove Fxpectation b)&elow Fxpectation c)0s per Fxpectation
%#. Eo you find easy availability of spare partsP
a) Ges b)No
%%. ould you like to re purchase the 4aruti+s carP
a) Ges b)No
%. ould you like to recommend the 4aruti car to your friends7relativesP
a) Ges b)No
%B. !n which sector do you think7feel 4aruti should improveP
a) ;rice b) Kuality c) 'ervice d) 5thers
%I. 0re you satisfied with the overall service of 4arutiP
a) Fxcellent b) Aood c) 0verage d) &elow 0verage