CHAPTER 1

INTRODUCTION

INTRODUCTION

Customer satisfaction, a business term, is a measure of how products and

services supplied by a company meet or surpass customer expectation. It is seen as a
key performance indicator within business and is part of the four perspectives of a
Balanced Scorecard.
In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element
of business strategy.
There is a substantial body of empirical literature that establishes the benefits of
customer satisfaction for firms.

BASICS
Basically, you might look at marketing as the wide range of activities involved in
making sure that you're continuing to meet the needs of your customers and are getting
value in return. Marketing analysis includes finding out what groups of potential
customers (or markets) exist, what groups of customers you prefer to serve (target
markets), what their needs are, what products or services you might develop to meet their
needs, how the customers might prefer to use the products and services, what your
competitors are doing, what pricing you should use and how you should distribute
products and services to your target markets. Various methods of market research are
used to find out information about markets, target markets and their needs, competitors,
etc. Marketing also includes ongoing promotions, which can include advertising, public
relations, sales and customer service.
WHAT IS THE CUSTOMER SATISFACTION MODEL? DESCRIPTION
The customer satisfaction model from N. Kano is a quality management and
marketing technique that can be used for measuring client happiness.
Kano's model of customer satisfaction distinguishes six categories of quality
attributes, from which the first three actually influence customer satisfaction:
1. Basic Factors. (Dissatisfiers. Must have.) - The minimum
requirements which will cause dissatisfaction if they are not
fulfilled, but do not cause customer satisfaction if they are
fulfilled (or are exceeded). The customer regards these as
prerequisites and takes these for granted. Basic factors
establish a market entry 'threshold'.
2. Excitement Factors. (Satisfiers. Attractive.) - The factors that
increase customer satisfaction if delivered but do not cause

dissatisfaction if they are not delivered. These factors surprise

the customer and generate 'delight'. Using these factors, a
company can really distinguish itself from its competitors in a
positive way.
3. Performance Factors. The factors that cause satisfaction if
the performance is high, and they cause dissatisfaction if the
performance is low. Here, the attribute performance-overall
satisfaction is linear and symmetric. Typically these factors are
directly connected to customers' explicit needs and desires and
a company should try to be competitive here.
The additional three attributes which Kano mentions are:
4. Indifferent attributes. The customer does not care about this
feature.
5. Questionable attributes. It is unclear whether this attribute is
expected by the customer.
6. Reverse attributes. The reverse of this product feature was
expected by the customer.
Origin of the customer satisfaction model. History
The approach towards analyzing customer satisfaction was first published in an
article by KANO, N. SERAKU, N., TAKAHASHI, F. & TSUJI, S. (1984) Attractive
quality and must-be quality, Hinshitsu (Quality, the Journal of Japanese Society for
Quality Control), 14, pp. 39-48.
Usage of the customer satisfaction model. Applications
Besides the obvious quality management and marketing usage, Kurt Matzler,
Matthias Fuchs and Astrid Schubert wonder in their article "Employee Satisfaction:
Does Kano's Model Apply?" (Total Quality Management & Business Excellence,

November-December 2004) whether Kano's model on customer satisfaction factors is

also relevant to describe employee satisfaction. Since employees can be perceived as
internal customers. They reach the conclusion that Kano's theory is indeed useable for
internal customers analysis as well.

Steps in the customer satisfaction model. Process

Kano developed a questionnaire to identify the basic, performance and
excitement factors as well as the other three additional factors.
1. For each product feature a pair of questions is formulated to
which the customer can answer in one of five different ways.
2. The first question concerns the reaction of the customer if the
product shows that feature (functional question);
3. The second question concerns the reaction of the customer if
the

product

does

NOT

show

this

feature

(dysfunctional

question).
4. By combining the answers all attributes can be classified into
the six factors.
Customer Expectations
Customer is defined as anyone who receives that which is produced by the
individual or organization that has value. Customer expectations are continuously
increasing. Brand loyalty is a thing of the past. Customers seek out products and
producers that are best able to satisfy their requirements. A product does not need to be
rated highest by customers on all dimensions, only on those they think are important.

Customer-driven strategy for improvement any management activity should

eventually lead to increased customer satisfaction...

The Canon Production System (CPS) is about:

1.

Environmentally-conscious manufacturing and logistics

2.

Quality-oriented methods

3.

Lower costs

4.

Shorter deadlines

5.

... All aim for maximum customer satisfaction...

CUSTOMER LOYALTY
"It takes a lot less money to increase your retention of current customers than to
find new ones-but I know I don't give it as much effort as I should because it does take a
lot of energy and effort!"

Strategize And Plan For Loyalty!

Do we even have a specific plan for building customer loyalty?

We bet ourselves haven't given it as much thought as we should- because to tell
the truth we need to give it more effort also.
If we currently retain 70 percent of our customers and we start a program to
improve that to 80 percent, we'll add an additional 10 percent to our growth rate.
Particularly because of the high cost of landing new customers versus the high
profitability of a loyal customer base, you might want to reflect upon your current
business strategy.
These four factors will greatly affect your ability to build a loyal customer base:
1.

Products that are highly differentiated from those of the competition.

2.

Higher-end products where price is not the primary buying factor.

3.

Products with a high service component.

4.

Multiple products for the same customer.

Market To Your Own Customers!
Giving a lot of thought to your marketing programs aimed at current customers is one
aspect of building customer loyalty.
When you buy a new car, many dealers will within minutes try to sell you an
extended warranty, an alarm system, and maybe rustproofing. It's often a very easy sale
and costs the dealer almost nothing to make. Are there additional products or services you
can sell your customers?
Three years ago my house was painted, and it's now due for another coat. Why
hasn't the painter called or at least sent a card? It would be a lot less expensive than
getting new customers through his newspaper ad, and since I was happy with his work I

won't get four competing bids this time. Keep all the information you can on your
customers and don't hesitate to ask for the next sale.
Use Complaints To Build Business!
When customers aren't happy with your business they usually won't complain to you instead, they'll probably complain to just about everyone else they know - and take their
business to your competition next time. That's why an increasing number of businesses
are making follow-up calls or mailing satisfaction questionnaires after the sale is made.
They find that if they promptly follow up and resolve a customer's complaint, the
customer might be even more likely to do business than the average customer who didn't
have a complaint.
In many business situations, the customer will have many more interactions after
the sale with technical, service, or customer support people than they did with the sales
people. So if you're serious about retaining customers or getting referrals, these
interactions are the ones that are really going to matter. They really should be handled
with the same attention and focus that sales calls get because in a way they are sales calls
for repeat business.
ER COMPLAINS
Why Tackle Customer Complaints?
Companies find that effectively handling customers with problems is critical to
their reputations as well as their bottom lines. When customers complain and they are
satisfied with the way their complaint is handled, they are more likely to purchase
another product or service from the same company. Companies that resolve complaints
on the first contact increase customer satisfaction and product loyalty, improve employee
satisfaction, and reduce costs. Companies even encourage complaints. Most dissatisfied
customers do not complain. By making it easy for customers to complain, more
customers will come to you with their problems, giving you greater opportunity to correct
your service delivery or production processes. Customers who get their problems

satisfactorily and quickly solved tell their friends and neighbors, and they are not easily
won over by the competition.
There is a bottom-line concern for government as well. As noted above,
complaints can be costly. Repeated hand-offs increase costs and waste precious resources.
When complaints are not promptly resolved, frustrated customers seek redress in
different agencies or at different parts or levels of the same agency, resulting in duplicate
effort and compounding costs.
Just as costs compound when there is a poor complaint system, trust also erodes
as citizens become frustrated with a non-responsive bureaucracy. Indeed, there has been a
cumulative erosion of public confidence in government. Thirty years ago, 70 percent of
Americans trusted the federal government to do the right thing most of the time. In 1993,
only 17 percent of Americans said that they trusted the government.(2) There are many
factors contributing to this decline in trust and confidence, particularly the huge volume
of regulations that did not make sense to the public and the high cost of government.
However, we learned from our benchmarking partners that an effective approach to
resolving complaints is invaluable in winning the trust and loyalty of our customers--the
public.
There are costs associated with a poor complaint system and there are benefits
associated with a good one. Studies have shown that handling customer complaints well
can be a critical part of a turnaround strategy. If a complaint is handled well, it sustains
and strengthens customer loyalty and the company's image as a leader. It also tells the
customer that the company cares and can improve because of their contact. In
government agencies, it promotes public confidence in government services.
Customer complaints also represent valuable information about recurrent
problems. They can point the way to understanding the root causes of customer problems
and help an organization target core processes that need improvement. If acted upon to
improve core processes, customer complaints can be a source of information that can
reduce costs as well as improve services.

Customer Complaints Create Profit

Customer complaints are like medicine. Nobody likes them, but they make us
better. Actually, they are probably more like preventative medicine because they
provide advanced warning about problems. Financial statements, in contrast, provide
a historical perspective. By the time problems manifest in the financial statements,
forget the medicine. Its time for emergency surgery.
Studies from the Technical Assistance Research Program* in Arlington, VA
suggest that the root cause of customer complaints can be traced back to one of three
areas: individual employees, the company, or the customer, with 80% of complaints
traceable to the last two categories.

By listening carefully, we can identify

opportunities for training employees, improving products and services, and educating
customers.

Individual Employees
Business is becoming increasingly complex and fast-paced. Customer service
professionals have to know their product or service, their company information, the
technology that supports it, and how to communicate all of this to savvy, demanding
customers. Even a small gap in knowledge or skill could cause huge repercussions in
terms of lost business.
When I first started my seminar business, I received a few complaints about my
individual skills as a speaker. Some customers complained that they didnt like my
Philadelphia accent, my hairstyle, the way I moved around the room, or the pace of
my delivery. After I cried for a few hours, I decided to invest in voice lessons, an
image consultant, and a video camera. These have been some of the best investments
I have ever made. I never want to get in the way of my own success. Companies
should not let their employees lack of knowledge or skill get in the way of their
success.
The Company

More often, the culprit is the actual product or service we provide. There may
be an inherent flaw in the design. There could be a glitch in the distribution channel
that causes dissatisfaction. Even if everything is perfect, marketing pieces, advertising
campaigns, and salespeople could inflate value and create customer expectations that
are impossible to satisfy.
Recently, I was providing a service that involved a series of facilitated sessions. I
allowed the customer to choose the dates of our sessions. Even though there were
very few sessions, they occurred over a long period of time and the customer
complained that the project took too long to complete. I made reparations to the client
and decided to restructure the service and the pricing so that in the future I would
control the timing of sessions. Now sessions always happen over a shorter period of
time and the service has a higher value and is more profitable. I have fixed the
delivery process of my service.
The Customer
As many of us have always suspected, customers actually cause most of the
problems they complain about. Its not our fault. Its not our employees fault. Its
the customers fault. Yet even here there is profit to be mined. Customer education
and innovation are the possible solutions.
I always send out a preprogram questionnaire to customers in order to tailor their
seminars. If customers have email, I send the questionnaire via email. Recently, I had
a customer who did not know how to return the email questionnaire to me with
responses filled in. I sent back brief instructions on how to work the email, which
could be classified here as customer education.
Afterwards, I started wondering if there could be a better, easier, cleaner way to
collect information, in other words, innovate. From that complaint, I decided to create
hidden web pages on my website, customized to each customer with their company
logo and questionnaire. Customers just click a link from an email, type their
responses into a form on the web page that appears, and hit a submit button. This

approach is much simpler and more impressive. I do this with all of my customers
now and advertise it in my marketing.
Summary
Customer complaints are never easy to hear. If we shift from being defensive to
opportunistic, complaints can be our best friend. If we do not listen, rest assured, the
financial statement will communicate the news eventually.
MEASURING CUSTOMER SATISFACTION
Organizations are increasingly interested in retaining existing customers while
targeting non-customers; measuring customer satisfaction provides an indication of
how successful the organization is at providing products and/or services to the
marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual
manifestation of the state of satisfaction will vary from person to person and
product/service to product/service. The state of satisfaction depends on a number of
both psychological and physical variables which correlate with satisfaction behaviors
such as return and recommend rate. The level of satisfaction can also vary depending
on other options the customer may have and other products against which the
customer can compare the organization's products.
Because satisfaction is basically a psychological state, care should be taken in
the effort of quantitative measurement, although a large quantity of research in this
area has recently been developed. Work done by Berry, Brodeur between 1990 and
1998 defined ten 'Quality Values' which influence satisfaction behavior, further
expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten
domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of
Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors,
Commitment to the Customer and Innovation. These factors are emphasized for
continuous improvement and organizational change measurement and are most often
utilized to develop the architecture for satisfaction measurement as an integrated

model. Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988
provides the basis for the measurement of customer satisfaction with a service by
using the gap between the customer's expectation of performance and their perceived
experience of performance. This provides the measurer with a satisfaction "gap" which
is objective and quantitative in nature. Work done by Cronin and Taylor propose the
"confirmation/disconfirmation" theory of combining the "gap" described by
Parasuraman, Zeithaml and Berry as two different measures (perception and
expectation of performance) into a single measurement of performance according to
expectation. According to Garbrand, customer satisfaction equals perception of
performance divided by expectation of performance.
The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement
and in term of their perception and expectation of performance of the organization
being measured.
CUSTOMER SATISFACTION IN 7 STEPS
It's a well known fact that no business can exist without customers. In the
business of Website design, it's important to work closely with your customers to
make sure the site or system you create for them is as close to their requirements
as you can manage. Because it's critical that you form a close working
relationship with your client, customer service is of vital importance. What
follows are a selection of tips that will make your clients feel valued, wanted and
loved.
1.

Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If
you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest
assured, though, it does get easier over time. It's important to meet your customers
face to face at least once or even twice during the course of a project.

My experience has shown that a client finds it easier to relate to and work with
someone they've actually met in person, rather than a voice on the phone or someone
typing into an email or messenger program. When you do meet them, be calm,
confident and above all, take time to ask them what they need. I believe that if a
potential client spends over half the meeting doing the talking, you're well on your
way to a sale.
2.

Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with all
customers' queries within the space of a few hours, but at least email or call them
back and let them know you've received their message and you'll contact them about
it as soon as possible. Even if you're not able to solve a problem right away, let the
customer know you're working on it.
3.

Be Friendly and Approachable

A fellow SitePointer once told me that you can hear a smile through the phone. This
is very true. It's very important to be friendly, courteous and to make your clients feel
like you're their friend and you're there to help them out. There will be times when
you want to beat your clients over the head repeatedly with a blunt object - it happens
to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best
you can, and at all times remain polite and courteous.
4.

Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly defined
customer service policy is going to save you a lot of time and effort in the long run. If
a customer has a problem, what should they do? If the first option doesn't work, then
what? Should they contact different people for billing and technical enquiries? If
they're not satisfied with any aspect of your customer service, who should they tell?
There's nothing more annoying for a client than being passed from person to person,
or not knowing who to turn to. Making sure they know exactly what to do at each

stage of their enquiry should be of utmost importance. So make sure your customer
service policy is present on your site -- and anywhere else it may be useful.
5.

Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company you were a
client of? Have you ever had a personalised sign-up confirmation email for a service
that you could tell was typed from scratch? These little niceties can be time
consuming and aren't always cost effective, but remember to do them.
Even if it's as small as sending a Happy Holidays email to all your customers, it's
something. It shows you care; it shows there are real people on the other end of that
screen or telephone; and most importantly, it makes the customer feel welcomed,
wanted and valued.
6.

Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out

Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship.
Take this as an example: you're working on the front-end for your client's exciting
new ecommerce Endeavour. You have all the images, originals and files backed up on
your desktop computer and the site is going really well. During a meeting with your
client he/she happens to mention a hard-copy brochure their internal marketing
people are developing. As if by magic, a couple of weeks later a CD-ROM arrives on
their doorstep complete with high resolution versions of all the images you've used on
the site. A note accompanies it which reads:
"Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide
you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able
to make use of some in your brochure."
Your client is heartily impressed, and remarks to his colleagues and friends how very
helpful and considerate his Web designers are. Meanwhile, in your office, you lay

back in your chair drinking your 7th cup of coffee that morning, safe in the
knowledge this happy customer will send several referrals your way.
7.

Honour Your Promises

It's possible this is the most important point in this article. The simple message: when
you promise something, deliver. The most common example here is project delivery
dates.
Clients don't like to be disappointed. Sometimes, something may not get done, or you
might miss a deadline through no fault of your own. Projects can be late, technology
can fail and sub-contractors don't always deliver on time. In this case a quick apology
and assurance it'll be ready ASAP wouldn't go amiss.
Customer service, like any aspect of business, is a practiced art that takes time and effort
to master. All you need to do to achieve this is to stop and switch roles with the customer.
What would you want from your business if you were the client? How would you want to
be treated? Treat your customers like your friends and they'll always come back.

1.2 OBJECTIVES OF THE STUDY

To study the consumer attitude towards Ridhi Auto Industries Pvt. Ltd..
To know influencing factor to buy Ridhi Auto Industries Pvt. Ltd..
To know the satisfaction level of consumers.
To know the customer opinion about Ridhi Auto Industries Pvt. Ltd..

1.3 SCOPE OF THE STUDY

1.4 COMPANY PROFILE

1.4.1

Name of the Company

Ridhi Auto Industries Private Limited

Mr. Amit Jain
Plot No-1913, C-Industrial Estate, Rai
Sonipat - 131029, Haryana , India
Mobile: +(91)-8059075814

1.4.2

Nature of the organization

Ridhi Auto Industries Private Limited was established in the year 2009. They are one of
the flourishing manufacturer & supplier of Automotive Products. They bring forth an
advance range of Industrial Products inclusive of Auto parts, Crane parts, Tractor parts
and Heavy Machinery Parts. Well equipped production unit with latest machinery and
teasing facilities have helped to carve a valuable niche for their products in the national.

They are a customer-centric organization and thus all our business endeavors are aimed at
achieving maximum client satisfaction. They are committed to provide products that are
high on quality and low in operational cost. Impeccable quality is the reason for their
phenomenal success. This also has been the prime reason of their esteemed clientele
returning to time and again with bulk orders.
Quality
Quality is always given the topmost priority at Ridhi Auto Industries Private Limited.
Only quality products attract the clients to a company. With this philosophy in mind, they
strive to offer only the best quality products at competitive prices. For checking the
products, our quality controllers use latest machines and equipment that help them to get
the best results.
Infrastructure
They have a dedicated manpower, catering to the needs of our customers. The company
employs a dedicated workforce including skilled and semi skilled labour. Highly
experienced and hardworking professionals, who possess deep rooted knowledge of the
discipline. These facilities ensure the production of only sophisticated equipments that
are extremely user friendly.

1.4.3

Companys vision & mission.

Vision
To provide our clients value through absolute precision & total reliability in our products
& continual improvement in the processes to achieve maximum efficiency & highest
customer service
Mission
To go global, set up Higher bench marks of quality. Make customers the partner in profits
by cutting down costs through higher productivity & efficient supply chain management.
1.4.4

Product range of the company.

Automotive Parts
They are leading manufacturer & supplier of Automotive Parts such as MS Pin, Metal
Bushes, Metal Piston etc.
MS Pin

They are engaged in manufacturing & supplying of a wide range MS Pin which is made
using high grade raw material. These MS Nails are available in various sizes and

specifications. Our MS Pins can be customized as per our customers specifications and it
can be availed at most reasonable price.
Metal Bushes

They are involved in manufacturing & supplying of an extensive range of Metal Bushes.
These Bushes are crafted using high grade raw materials, are assured of better operational
life and sturdy structure. They are also preferred for their accurate dimension and
flawless performance.
Metal Piston

They are manufacturer & supplier of an excellent range of metal piston which are
manufactured from high grade quality raw materials. They offer our client a wide range
of metal pistons available in different shapes and sizes in accordance with different
requirements.
Crane Parts
They are engaged in manufacturing & supplying of a wide range of Crane Parts such
as Axle Pin, Pin Bushes, Threaded Bush etc.
Threaded Bush

They engaged in manufacturing & supplying of high quality Threaded Bush to our most
valued clients. Threaded Bush are made by using latest technology and manufactured
according to the specified standards. These Threaded Bush are widely finds its
applications in various automobile sectors.

Axle Pin

They are manufacturer & supplier of a wide variety of Axle Pin. Axle Pin has been
manufactured using finest of raw materials, that are raised from authentic sellers. Their
corrosion resistant features make them a class apart object and even in the humid and
high moisture conditions these remain intact.
Pin Bushes

They are one of flourishing manufacturer & supplier of Pin Bushes that are constructed
using quality raw materials and are available in different weights and sizes. These Pin
Bushes are widely known for its durability and quality.

Tractor Parts
They are leading manufacturer & supplier of Tractor Parts such as Crank Shaft, Pin
Shaft, Piston Pinetc.
Pin Shaft

They are engaged in manufacturing & supplying a quality Pin Shaft that are
manufactured with the usage of standard quality raw material which ensures high
durability at its user end. Owing to their premium quality, these products are widely being
used in various industria.
Crank Shaft

They are involved in manufacturing & supplying of an excellent quality range of Cranks
Shafts, which are available in various sizes and specifications. Our Crank Shafts are
dimensionally accurate and known for abrasion resistance and fine finish. These durable
crank shafts are primarily used in automobile and electrical industries.
Piston Pin

Our company engaged in manufacturing & exporting of Piston Pins are quality approved
equipment extensively used in different automobile and heavy engineering industries.
Our range of Piston Pins is made out of special quality graded alloy steels and duly
hardened to withstand wear and tear.
Heavy Machinery Parts
They are engaged in manufacturing & supplying of a wide range of Heavy Machinery
Parts such as Chain Sprocket, MS Shaft, Threaded Shafts etc.

MS Shaft

Our company is involved in manufacturing & supplying of MS Shaft. The MS Shaft

offered by us is manufactured using finest of raw materials, which are sourced from
trustworthy vendors of the industry. Our MS Shaft is known for its durability, corrosion
resistance, tear resistance and dimensional accuracy.
Threaded Shafts

Our company is manufacturer & supplier of high quality threaded shafts. These shafts
are made using the quality raw material that is procured from the certified dealers, which
is extremely rich in quality. These threaded shafts are good demand in the market due to
high quality and durability.

Chain Sprocket

They are manufacturer & supplier of a wide range of superior quality Chain Sprocket.
These Chain Sprocket can be customized as per our precious customers specifications.
These Chain Sprocket are widely known for its durability and quality.

Other Products
MS Seamless Pipes

They are manufacturer & supplier of MS Seamless Pipes. These high quality MS
Seamless Pipes are made by using latest technology and manufactured according to the
specified standards. They are made as per the prerequisite industry standards and are used
in boiler and vessel, power plants, refineries, defense, thermal and nuclear power plants
and fertilizers industries.
1.4.5

Size of Organization

Year of Establishment

2009

Legal Status of Firm

Private Limited Company

Nature of Business

Supplier, Manufacturer

Number of Employees

51 to 100 People

Turnover

Rs. 2 - 5 Crore ( or US$ 400 K - 1 Mn Approx.)

1.4.6

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Organization structure of the company.

1.5 INDUSTRY PROFILE:

The Indian auto parts industry's sales growth is likely to be lower at 12%-15% in the
current fiscal year because of an expected slowdown in vehicle sales, the president of the
Automotive Component Manufacturers Association of India said Tuesday.
"The first quarter of 2011-12 has witnessed some slowdown in vehicle consumption in
India and this seems to suggest that the growth in the auto component industry in the
current fiscal year will in the range of 12%-15%," Srivats Ram said during a press
conference.
The association said the Indian auto components industry's sales grew 34% to $39.90
billion in the fiscal year ended March 31.
"Auto component consumption in 2010-11 grew at a robust pace in tandem with vehicle
sales in the domestic market," the industry body said in a statement.
Car sales last fiscal year rose 30%, the biggest gain in over a decade, to 1.98 million
units.
The lower revenue projection for the auto components industry this year mirrors the
slowdown in overall demand due to higher interest rates and rising fuel prices.
Auto makers expect a festival-season spurt in sales in the three-four months starting
September, but overall annual vehicle sales growth will still be lower. India's biggest car
maker by sales, Maruti Suzuki India Ltd., earlier this month said it expects vehicle sales
to grow less than 10% this fiscal year.
The industry body said auto component exports last year jumped 54% to $5.4 billion
while imports climbed 30% to $8.50 billion.
Exports grew at a rapid pace because of "signs of recovery in North America, western
Europe and Asian markets," Mr. Ram said, adding that he doesn't expect growth this year
to be as high.

"In fact, the industry would be happy with a 20%-25% [export] growth in this fiscal
year," he added.
The auto component industry in India added production capacity valued at $2 billion to
$2.25 billion in 2010-11 by setting up several new plants and expanding existing ones,
the industry body said.
The Indian auto industry is highly competitive with a number of global and Indian autocompanies present. The size of auto component industry in India is around USD 34.7
billion and has grown at ~26% p.a. since FY 05 (Figure 1). Though the industry
witnessed slower growth in 200809 owing to the global slowdown, Indian auto
component manufacturers are equipped to address the challenges of a downturn.

Over the years Indian auto component companies have increased their footprint in global
markets and the exports have grown at ~17% p.a. in the last six years to reach USD 4.4
billion in FY11 (Figure 1). Significant number of auto component manufacturers are
focusing on global best practices like 5-S, Kaizen, TQM, TPM, 6 Sigma etc. and in the
process more companies are getting recognized with quality certifications. The Indian
auto industry has evolved around three major clusters:
Mumbai-Pune-Nashik-Aurangabad (West);
Chennai-Bangalore-Hosur (South); and
Delhi-Gurgaon-Faridabad (North).

The industry, over the years, has developed the capability of manufacturing all
components required to manufacture vehicles, which is evident from the high levels of
indigenization / localization achieved in the vehicle industry as well as the components
developed for the completely Indian made vehicles like the Tata Indica, Tata Indigo,
Mahindra Scorpio, Bajaj Pulsar etc. The component industry has now holistic capability
to manufacture the entire range of auto-components e.g. Engine parts, Drive,
Transmission Parts, Suspension & Braking Parts, Electricals, Body and Chassis Parts,
Equipment etc.
Indian auto component industry can be broadly segmented into six major segments.
Engine and drive transmission parts together contribute about 50 per cent of the auto
component industry production. Engine parts, which constitute 31 per cent of the
production, mainly comprise of pistons, engine valves, carburettors, fuel injection
systems, camshafts, crankshafts and cooling systems. Drive transmission parts, which
constitute 19 per cent of the total production, include axle assembly, steering parts and
clutch assembly.
The domestic auto components industry consists mostly of unorganized players, who are
largely small and medium enterprises. However, it is the organized segment that
contributes about 72 per cent of the industrys total revenues. About 619 organized
players are registered with the Auto Component Manufacturers Association (ACMA).
The organized sector is dominated by large promoter groups. Of this, while MNCs
contribute 12 per cent of revenues; the domestic promoter groups contribute 35 per cent,
while the balance comes from smaller companies.
Prevalent business models are:

Full Indian ownership

Indian owner and MNCs in technical alliance

Indian owner and MNC JV

Complete MNC subsidiary

Investments in Indian auto component sector have grown from around ~USD 4 billion in
FY05 to ~USD 10.3 billion in FY11 (Figure 8). Due to recession there was postponement
of investment plans because of which the investment levels remained unchanged between
FY08 and FY09. Investment picked up again in FY10 registering a CAGR of 14%.
Several large Indian auto component manufacturers are in the process of substantially
investing in capacity expansion, establishing partnerships in India and abroad, acquiring
companies in foreign countries establishing greenfield ventures, research & development
(R&D) facilities and design capabilities. The auto component industry invested USD 2
billion in FY11 in several greenfield as well as expansion projects.
Strategies for long term sustainability Think Local, Click Global
Today auto component companies have significant opportunities to take the giant leap.
On one hand the domestic market is attracting more OEM players who have a strong
need for localization. On the other hand, recession afflicted global markets are hunting
for low cost vendors to optimize their operations. At this juncture, adoption of a strategic
shift is critical to be able to ride the opportunity wave. Thus Indian auto component
players need to re-align their strategies and operations to undertake the following:
Drive Quality-Cost-Delivery (QCD) improvements This is mission critical to
continue to be the supplier of choice for existing customers as well as attract new
automotive OEMs.
Re-orient export strategies By focusing on mature automotive markets Indian
auto component companies can leverage the increasing drive to source from low
cost destinations. In parallel, developing export relationships/ partners in
emerging automotive markets will help de-risk and grow the exports business.
Acquire new customers in India The highly cost sensitive automotive market
coupled with a high degree of competitive intensity, is forcing new MNC players
to increase localization. But the stumbling block is lack of choice of compatible

suppliers. This is an opportunity area for Indian auto component players. The
qualifying criteria are stringent and hence will necessitate an upgrade of service
levels and manufacturing capability through operational excellence measures, to
woe new and discerning OEM customers. _ Explore non-automotive segments
What began with a top Indian auto component players diversification from
automotive forgings to aerospace and other high technology sectors has now
gained momentum.
Increasing number of auto component players are exploring to de-risk their automotive
business by diversifying into allied industries. This helps smoothen out the business over
different industry cycles.
These are some of the strategic options for long term sustainability. However its success
requires decisive Boardroom action and prudent leadership of the top management of
Indian auto component companies. Today the mood is cautious, and industry growth has
moderated. But nonetheless the long term prospects are strong, as India is poised to be
one of the fastest growing automotive markets worldwide over the next decade and is
slated to move from number 8 position to number 3 position in the passenger vehicle
market. And to harness this opportunity, effective management of the short term
challenges and implementation of sustainable strategies is the key to robust industry
growth.

CHAPTER 2
REVIEW OF
LITERATURE

Levesque, T and McDougall, G.H.G. (1996), the study investigated the major
determinant of customer satisfaction and future behavioral intensions in the retail banking
sector. The study identifies the determinants that include service quality dimensions (e.g.
getting it right the first time), service features (e.g. competitive interest rates), service
problems, service recovery and products used. The study finds, in particular, that service
problems and the banks service recovery ability have a major impact on customer
satisfaction and intention to switch banks. However, the results do not support the view
that satisfactory problem recovery leads to greater customer satisfaction or closer
bonding of the customer with the provider. At best a satisfaction problem recovery
leads to the same level of customer satisfaction as when a problem had not occurred.
Malhotra, M., and Arora, S. (1999). The study investigates that level of customer
satisfaction in the public sector banks and th3e private, with the purpose of helping bank
managements to formulate marketing strategies to attract customers towards them. The
exploratory study was done by collecting dataa from the cities of amritsir, Ludhiana and
Chandigarh. Twenty attributes were taken into consideration for measuring the level of
satisfaction/disatiasfaction. The study found that there are six factiors, in order of their
improtance are routine operation factor, price factor, situation factor, environmental
facotrs, technology factor and interactive facror. Similarly, for customers of private
sector banks, the foactors found to be important are staff factor, routine operation factor,
service factor,

environmentalfacotrs, technology factor, interactive facror and

promotional facotr. Moreover, factor wise average scores of these factors reveal that
there is significant difference between the satisfaction lvele of the customres of public
and the private sector banks. The latter are found to be more satisfied. A few strategies
suggested by the authors to improve service quality are proper training of the staff,
conducting market surveys periodically, personaliziang the service, avoiding long
queues,having well lit, ventilated and clean surroundings.
Armstrong Robert W., and Seng T.B. (2000), The study extends the current
undrstanding of cuctomer satisfaction at the business to business level in the Asian
banking industry. It incorporates guanxi (Cuhinese business relationship), relationship
marketing and the disconfirmation paradigm. The research highlights the importance of

relational constructs and disconfirmation paradigm in the influencing customer

satisfaction at the business to business level in the Singapore banking industry. At the
business to business level in the Asian context, the disconfirmation papdigm is still
the predominant paradigm influencing the customer satisfaction process. Relationship
marketing and guanxi are significant in the comprehesive model of corporate customer
satisfaction. Relationship marketing is found to have both a direct and an indirect impact
through disconfirmation) on corporate customer satisfaction. Guanxi is found to exert an
idirect impact on satisfaction as opposed to the intial hypothesized direct impact on
satisfactionon.
Athanassopoulous, A., Gounraris, S. and Stathakopuoulos V. (2001), The paper
investigates the behavioural consequences of customer satisfaction in the banking
industry.

The authors examine theimpact of customer satisfaction on customers

behavioural responses. The findings indicate that when customers assessed customer
satisfaction to be high, they either decided to stay whith the existing service provideror
subdue their negative behavioural intensitons. Customer satisfaction is also found to
have strong positive association with word-of mouth communication.

The research

reuslts confirm prior research and indicate that the customer satisfaction dimensions
arenot industry specific, but also country specific.

The authors suggest to develop

strategies to enhance behavioral responses to customer satisfaction and prohibit negative

ones. Such strategies can include meeting customers desired service levels, preventing
service problemsfromoccuring, dealing effectively with dissatsfied customers, solving
service problems effectively when they occure and dealing with customer complaints
positively.
Sureshchandar G.S., Rajendran C. and Anantharaman R.N. (2002) adopt a
different approach and view customer satisfaction as a multi dimensional construct just
as service quality, but argues that customer satisfaction should be operationalized along
the same factors (and the corresponding items) on which service quality is
operationalized. Based on this approach, the link between service quality and customer
satisfaction has been investigated. The results indicate that the two constructs are indeed

independent but are closely related, implying that an increase in one is likely to lead to
an increase in another.
CUSTOMER SATISFACTION
Customer satisfaction is equivalent to making sure that product and service performance
meets customer expectations. It is the perception of the customer that the outcome of a
business transaction is equal to or greater than his/her expectation. Customer satisfaction
occurs when the acquisition of products and /or services provides a minimum negative
departure from expectations when compared with other acquisitions and when the
marginal utility of a transaction is equal to or greater than preceding acquisitions.
Customer satisfaction occurs when the perception of the reward from the purchase of
goods or services by the customer meets or exceeds his/her perceived sacrifice. The
perception is a consequence of matching past purchase and consumption experience with
the current purchase.
CUSTOMER SERVICE AND SATISFACTION
We must cultivate our garden. Voltair When we talk about customer service and/or
satisfaction, we talk about creativity. Creativity allows us to handle or diffuse problems at
hand or later on rather in the process of conducting the everyday business. We talk about
how, or what, does the organization have to do to gain not only the sale but also the
loyalty of the customer. We want to know the payoff of the transaction both in the short
and long term. We want to know what our customers Want? We want to know if our
customers are satisfied? Satisfaction, Of course, means that what we delivered to a
customer met the customers Approval. We want to know if customers are delighted and
willing to come Back, and so on. Fleiss 2 and Feldman 3 present examples of that
delightfulness in their writings. Fleiss has written about Ben and Jerrys ice cream and
Feldman has discussed excellence in a cab ride. As important as delightfulness is, some
of us minimize it, or even totally disregard it. At this point, we fail.

Some of the issues that will guarantee failure in sales, satisfaction, and loyalty are:

Employees must adhere to a rigid chain of command

Employees are closely supervised

Conflictin whatever formis not allowed

Rewards are based on carrot-and-stick principles

Wrong objectives are measure.

We must understand customer expectation levels concerning quality. We must also

understand the strategy for customer service quality, and next we must understand the
measurement and feedback cycles of Customer satisfaction.
The customer is the person or unit receiving the output of a process on the system. In
fact, it is worth emphasizing that a customer can be the immediate, intermediate, or
ultimate customer. Also, a customer may be a person or persons, or a process or
processes. Customer satisfaction, however, is when the customer is satisfied with a
product/service that meets the customers needs, wants, and expectations.
There are at least three levels of customer expectations about quality:
Level 1
Expectations are very simple and take the form of assumptions, must have, or take it for
granted. For example, I expect the airline to be able to take off, fly to my destination, and
land safely. I expect to get the correct blood for my blood transfusion and I expect the
bank to deposit my money to my account and to keep a correct tally for me.
Level 2

Expectations are a step higher than that of level 1 and they require some form of
satisfaction through meeting the requirements and/or specifications. For example, I
expect to be treated courteously by all airline personnel. I went to the hospital expecting
to have my hernia repaired, to be in some pain after it was done, to be out on the same
day, and to receive a correct bill. And I went to the bank expecting the bank teller to be
friendly, informative, and helpful with my transactions
CUSTOMER SATISFACTION SURVEYS HELP TO:
Improve customer, client, or employee loyalty. React quickly to changes in the market.
Identify and capitalize on opportunities. Beat the competition. Retain or gain market
share. Increase revenue. Reduce costs. Post sales follow up PSFs are done in order to get
the first hand feedback from the customer about the experience that they had during the
sales and delivery process. The first PSF is done within the 72 hours of delivery and the
voice or exact wordings of the customer are recorded. The next PSF call is made after 15
days after the vehicle is delivered. The feedback form system is a very important tool to
obtain customers feedback on the experience that the customer had during the purchase
of his/her car.
Steps to be followed after receiving customer complaint:
Firstly customer acre manager gives a control number to all complaints received and
records the same in the customer complaints control register.
Then customer acre manager gets in touch with the customer over the phone and
expresses regret on the inconvenience faced by the customer Immediate action is taken to
ensure that the customer complaint is resolved and writes a letter of apology.
The customer care manager along with the concerned DSE, then visits the customer,
hands over the letter and takes satisfaction note from the customer then he sends a copy
of the letter and the satisfaction note to Maruti Udyog Ltd. And also files a copy of the
same in the customer complaints register/file.

Then the CCM discusses the customer complaints in the weekly meeting with the general
manager on SSI with the entire showroom staff. Necessary counter measures are taken to
ensure that such complaints are not repeated in future.
All sales staff and managers review customer care activities on daily, weekly and
monthly basis. The SSI review meet is conducted regularly.
Moments of truth
Expectation---------------satisfaction---------------------reality
If you get what you expected
Expectation---------------dissatisfaction----------------reality
If you get less than you expected
Expectation---------------delight--------------------------reality
If you get more than you expected
When customers dont complain they go somewhere else.
Customers dont complain. They pass on their dissatisfaction to their colleagues , family,
greengrocer, suppliers , consultants, managers , sports club, grandparents, neighbours,
director, to you

CHAPTER 3
RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY
The objective of the present study can be accomplished by conducting a systematic
market research. Market research is the systematic design, collection, analysis and
reporting of data and findings that are relevant to different marketing situations facing the
company. The marketing research process that will be adopted in the present study will
consist of the following stages:
Research Instruments:
The research instruments generally used to collect the primary data are Questionnaires
and Mechanical instruments.
Questionnaires:
Questionnaires are formal set of questions prepared to collect the required information.
This is one of the most effective and popular techniques used in surveys. However, we
had to be careful when drawing up questionnaires. Before deciding on the questions, it
was important to understand the exact nature of information required and who should be
interviewed. The knowledge level of target respondents was kept in mind, while drawing
of questions. The major junk of the customer was basically from urban background. The
questionnaires were designed in English.
Sampling:
The sample is a subset of a unit of a population, collected as a representation of it. The
proper sample design is essential in marketing research. The sample has to be collected
in such a way, that it represents the population. The sample was taken from all the
segments of the customers.
Sample Size:
The size of the sample is an important element in the research process as it has a direct
affect on the result of the research. As a size of sample increases, accuracy and reliability
of the research results also increases. However, the cost of the research also increases.

Therefore, we need to make a trade off between the accuracy and cost of research. Type
of project was another important aspect of deciding the sample size.
During this project we touched 50 customers in Delhi region
The marketing research process that will be adopted in the present study will consist of
following stages:
*

Defining the problem and the research objective:

The research objective states what information is needed to solve the problem. The
objective of the research is to derive the opinion of the users and opinion of the potential
customers.
*

Developing the research plan:

Once the problem is identified, the next step is to prepare a plan for getting the
information needed for the research. The present study will adopt the exploratory
approach wherein there is a need to gather large amount of information before making a
conclusion. If required, the descriptive and casual approaches may also be used.
*

Collection and Sources of data:

Market research requires two kinds of data, i.e., Primary data and Secondary data. Being
a firm in service industry, data gathering will involve usage of both primary and
secondary data though there will be an extensive usage of primary data. Well-structured
questionnaires will be prepared for both the existing and the potential customers. There
will be personal interview surveys mostly in-home (door-to-door) surveys. The
questionnaires will contain both open-ended and close-ended questions. Secondary data
will be collected from various journals, books and web sites.
*

Analyze the collected information:

This involves converting raw data into useful information. It involves tabulation of data,
using statistical measures on them for developing and calculating the averages.

Report research findings:

This phase will mark the culmination of the marketing research effort. The report with the
research findings is a formal written document.

CHAPTER 4
DATA REDUCTION,
PRESENTATION &
ANALYSIS

1. OPINION OF CUSTOMERS ON PRODUCT AVAILABILITY.

PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Availability of Ridhi Auto
Industries Pvt. Ltd. Products.
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Excellent

20

40%

Good

26

52%

Fair

8%

Poor

0%

Total No. of Respondents

50

100%

26
20

4
Excellent

Good

Fair

Poor
0

2.

OPINION OF THE CUSTOMERS ON PERFORMANCE OF

PRODUCTS.

PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the performance of different
products of Ridhi Auto Industries Pvt. Ltd..
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Excellent

32

64%

Good

13

26%

Fair

10%

Poor

0%

Total No. of Respondents

50

100%

32

13
5
Excellent

Good

Fair

Poor
0

3. CUSTOMERS OPINION ON FEATURES OF PRODUCTS.

PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Features of products.
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Excellent

31

62%

Very Good

11

22%

Good

16%

Poor

0%

50

100%

Total No. of Respondents

31

11

Excellent

Very Good

Good

Poor
0

4. AWARENESS ON ALL PRODUCTS OF RIDHI AUTO INDUSTRIES PVT.

LTD..
PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Awareness of all the
products of Ridhi Auto Industries Pvt. Ltd..
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Well aware

22

44%

More aware

16

32%

Few known

12

24%

Dont know

0%

Total No. of Respondents

50

100%

22
16
12

5. WHAT IS OUR RANKING COMPARED WITH THE SIMILAR PRODUCTS

ON THE MARKET
PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Ranking of products on the
market.
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Excellent

22

44%

Good

16

32%

Satisfaction

10

20%

Dissatisfaction

4%

Total No. of Respondents

50

100%

22
16
10
2

6. HOW ABOUT THE RELIABILITY TO OUR PRODUCTS

PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Reliability of Ridhi Auto
Industries Pvt. Ltd. Products.
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Excellent

20

40%

Good

20

40%

Satisfaction

16%

Dissatisfaction

4%

Total No. of Respondents

50

100%

20

20
8
2

7. WHAT ABOUT THE COMPATIBILITY OF OUR PRODUCTS

PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Compatibility of Ridhi
Auto Industries Pvt. Ltd. products.
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Excellent

22

44%

Good

20

40%

Satisfaction

10%

Dissatisfaction

0%

Total No. of Respondents

50

100%

22

20
8

8. OPINION OF CUSTOMERS ON PRICE OF THE PRODUCT

PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Pricing of Ridhi Auto
Industries Pvt. Ltd. products.
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Very High

23

46%

High

15

30%

Reasonable

12

24%

Low

0%

Total No. of Respondents

50

100%

23
15
12

Very High

High

Reasonable

Low
0

9. HAVE THESE DISTRIBUTING CHANNELS ARE AVILABLE TO YOU?

PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Distributing channels of
Ridhi Auto Industries Pvt. Ltd..
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Most available

16

32%

More available

18

36%

Available

10

20%

Not available

12%

Total No. of Respondents

50

100%

16

18
10
6

10. HOW DO YOU RATE OUR DELIVERY ON TIME PERFORMANCE AND

OUR COMMITMENT TO MEET YOUR DELIVERY EXPECTATIONS?
PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Delivery rate of Time
performance & Commitment.
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Excellent

18

36%

Good

21

42%

Satisfaction

18%

Dissatisfaction

4%

Total No. of Respondents

50

100%

18

21
9
2

11. CAN OUR PRODUCTS WORKING PROPERLY?

PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Working nature of Ridhi
Auto Industries Pvt. Ltd. Products.
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Excellent

30

60%

Good

15

30%

Satisfaction

10%

Dissatisfaction

0%

Total No. of Respondents

50

100%

30
15
5
0

12. DO YOU FELL THE STYLE AND ATTRACTIVENESS TO OUR

WEBSITE

PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Style & Attractiveness of
Ridhi Auto Industries Pvt. Ltd. Website.
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Excellent

18

36%

Good

16

32%

Satisfaction

18%

Dissatisfaction

14%

Total No. of Respondents

50

100%

18

16
9

13. DOES OUR WEBSITE PROVIDE THE KIND OF INFORMATION THAT

YOU NEED?
PERCENTAGE ANALYSIS:
This table shows the customers opinion concerning the Information provided by
the Website of Ridhi Auto Industries Pvt. Ltd..
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Excellent

25

50%

Good

20

40%

Satisfaction

10%

Dissatisfaction

0%

Total No. of Respondents

50

100%

25

20
5
0

14. DO YOU NEED TECHNICAL IMPROVEMENT TO RIDHI AUTO

INDUSTRIES PVT. LTD. PRODUCTS?
PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the need of technological
improvement of Ridhi Auto Industries Pvt. Ltd. products.
OPINION

NO. Of RESPONDENTS

PERCENTAGE

Lot of need

16%

More need

12%

Fair need

20

40%

No need

16

32%

Total No. of Respondents

50

100%

20
16
8

Lot of need More need

Fair need

No need

15. WHICH ADVERTISING MEDIA IS ATTRACTED TO YOU MOST?

PERCENTAGE ANALYSIS:
This table shows the customer opinion concerning the Attracted Advertising
Media of Ridhi Auto Industries Pvt. Ltd..
OPINION

NO. Of RESPONDENTS

PERCENTAGE

E-Newsletters

12

24%

Newsletters

13

26%

Own Website

11

22%

B2B Portals, Other famous sites

14

28%

Total No. of Respondents

50

100%

12

13

11

14

CHAPTER 5
DATA
INTERPRETATION

DATA INTERPRETATION

40% are feeling that the product availability is Excellent, 52% of the product
availability is good, 8% of the product availability is fair, None of them had faced
poor product availability. The majority of customers feel that the product
availability of Ridhi Auto Industries Pvt. Ltd. products is good. The firm should
take every necessary measure to contiue the existing ways of making the product
available. This will increase the number of satisfied customers.

64% of the customers are feeling that the performance is Excellent, 26% of the
customers feel that the performance is good, 10% of the customers feel that the
performance is fair, none of them are there to say performance is not good. The
above analysis depicts that the majority of the customers feel that the performance
of products is Excellent. As most of the customers of the firm perceive the
performance of the products to be excellent, the firm should ensure to maintain
the same standards. This action will increase the loyalty of the customers towards
the firm and its products

62% of the custmers are feeling that the features of products is Excellenet, 22%
of customers are feeling that the features of products is very good, and 16% of
them are the opinion that the features of products is good. However, there are no
respondents to quote the features of products are poor. The above analysis depicts
that majority of the customers feel that the overall efficiency of products is
satisfactory. As most the customers are of the opinion that the efficiency of the
firms products is good, the company should ensure to continue the same standards
of efficiency further.

44% are well aware about the products, 32% are more aware about the products,
18% are few known about the products, and no one has in the list of Dont about
products. The above analysis depicts that the majority of customers aware about
the all the products. Firm should aware the people about our products. This will
improves the firms credibility as well as it will changes the most known

customers to well known customers. Then automaticlly it will leads to sales

promotion.

44% are feeling that Ridhi Auto Industries Pvt. Ltd. Ranking in market is
Excellent, 32% are feeling that the Ridhi Auto Industries Pvt. Ltd. Ranking in
market is good, 20% are feeling that Ridhi Auto Industries Pvt. Ltd. Ranking in
market is Satisfactory and 4% of the customers are dissatisfied with the Ranking
in market. The above analysis depicts that the majority of customers feel that the
Ranking of Ridhi Auto Industries Pvt. Ltd. is Excellent. The firm should take
certain necessary steps to give even better Ranking than the existing one to
completely wipe out the Market standards. However by giving better Ranking to
products customers will be satisfied to the hilt.

36% are feeling that Reliability on Ridhi Auto Industries Pvt. Ltd. products are
Excellent, 42% are feeling that Reliability on Ridhi Auto Industries Pvt. Ltd.
products are good, 18% are feeling that Reliability on Ridhi Auto Industries Pvt.
Ltd. products are fair, and 4% of the customers are dissatisfied with the
Reliability. The above analysis depicts that the majority of customers feel that the
packaging of Ridhi Auto Industries Pvt. Ltd. is good. The firm should take certain
necessary steps to give even better Reliability than the existing one to completely
wipe out the dissatisfied customers. However by giving better Reliability to
products customers will be satisfied to the hilt.

36% are feeling that Ridhi Auto Industries Pvt. Ltd. is Excellent, 42% are feeling
that the Ridhi Auto Industries Pvt. Ltd. Compatibility is good, 18% are feeling
that the Ridhi Auto Industries Pvt. Ltd. Compatibility is Satisfactory and 4% of
the customers are dissatisfied with the Compatibility. The above analysis depicts
that the majority of customers feel that the Compatibility of Ridhi Auto Industries
Pvt. Ltd. products is Excellent. The firm should take certain necessary steps to
give even better Compatibility than the existing one to completely wipe out the
dissatisfied customers. However by giving
customers will be satisfied to the hilt.

better Compatibility to products

46% of the custmers are feeling that product price is very high, 30% of them feel
that the price of the product is high, 24% of them feel that the price is reasoable &
None of them are of the opinion that the price is low. The above analysis depicts
that majority of the customers feel that price of the product is abnormal or very
high. Since most of the customers strongly feel that the prices of the products are
high, the firm should reduce the prices to affordable level. This will lead to
increase in sales and will enhance the customer satisfaction levels.

32% Distributing channels are Most available to the customers, 36% Distributing
channels are More available to the customers, 20% Distributing channels are
Available to the customers and 12% Distributing channels are Not available to the
customers. The above analysis depicts that the majority of customers feel that the
Distributing channels are More available. The firm should take certain necessary
steps to give even better Distributing channels than the existing one to completely
wipe out the dissatisfied customers. However by giving

better Distributing

channels to customers will be satisfied to the hilt.

36%, Delivery rate of Time performance & Commitment is Excellent, 42%,

Delivery rate of Time performance & Commitment is Good, 18%, Delivery rate
of Time performance & Commitment is Satisfied, and 4%, Delivery rate of Time
performance & Commitment is Dissatisfied, The above analysis depicts that the
majority of customers feel that the Delivery rate of Time performance &
Commitment is good. The firm should take certain necessary steps to give even
better Delivery rate of Time performance & Commitment than the existing one to
completely wipe out the dissatisfied customers. However by giving

better

Delivery rate of Time performance & Commitment to customers will be satisfied

to the hilt.

60% are feeling that Working nature Ridhi Auto Industries Pvt. Ltd. products are
Excellent, 30% are feeling that Working nature Ridhi Auto Industries Pvt. Ltd.
products are good, 10% are feeling that Working nature Ridhi Auto Industries Pvt.
Ltd. products are Satisfactory and No customers are dissatisfied with the Working

nature. The above analysis depicts that the majority of customers feel that the
Working nature of Ridhi Auto Industries Pvt. Ltd. products is good. The firm
should take certain necessary steps to give even better Working nature than the
existing one to completely wipe out the dissatisfied customers. However by
giving better Working nature to products customers will be satisfied to the hilt.

36% are feeling that Style & Attractiveness of Ridhi Auto Industries Pvt. Ltd.
Website is Excellent, 32% are feeling that Style & Attractiveness of Ridhi Auto
Industries Pvt. Ltd. Website is Good, 18% are feeling that Style & Attractiveness
of Website is Satisfactory and 14% of the customers are dissatisfied with the Style
& Attractiveness of Website. The above analysis depicts that the majority of
customers feels that the Style & Attractiveness of Website is Excellent. The firm
should take certain necessary steps to give even better Style & Attractiveness of
Website than the existing one to completely wipe out the dissatisfied customers.
However by giving better Style & Attractiveness of Website to customers will be
satisfied to the hilt.

50% are feeling that Information provided by the Ridhi Auto Industries Pvt. Ltd.
Website is Excellent, 40% are feeling that Information provided by the Ridhi Auto
Industries Pvt. Ltd. Website is Good, 10% are feeling that Information provided
by the Ridhi Auto Industries Pvt. Ltd. Website is Fair and None of them are bad
about the Information provided by the Ridhi Auto Industries Pvt. Ltd. Website.
The above analysis depicts that the majority of customers feel that the Information
provided by the Ridhi Auto Industries Pvt. Ltd. Website is Excellent. The firm
should take certain necessary steps to give even better providing information in
the Website than the existing one to completely wipe out the dissatisfied
customers. However by giving better providing information in the Website to
customers will be satisfied to the hilt.

16% are feeling that there is lot of need in technological improvement, 12% are
feeling that there is more need in technological improvement, 40% are feeling that
there is fair need in technological improvement, and 32% of them are felt that

there is no need in technolgical improvement. The above analysis depicts that the
majority of customers feel that there is no need in technolgical improvement. The
firm should take certain necessary steps to give better Technology than the
existing one to completely wipe out the dissatisfied customers. However by
giving better Technology to products customers will be satisfied to the hilt.

24% are Attracted by the E-Newsletters of Ridhi Auto Industries Pvt. Ltd., 26%
are Attracted by the Newsletters of Ridhi Auto Industries Pvt. Ltd., 22% are
Attracted by the Own Website of Ridhi Auto Industries Pvt. Ltd., and 28% are
Attracted by the B2B Portals & Other famous sites. The above analysis depicts
that the majority of customers Attracted by the B2B Portals & Other famous sites
like Alibaba, Google. The firm should take certain necessary steps to attract by
the even better Advertising Media than the existing one to completely wipe out
the dissatisfied customers. However by improving better Advertising media to
customers will be satisfied to the hilt.

CHAPTER 6
SUMMARY AND
CONCLUSION

SUMMARY AND CONCLUSION

RESULTS OF THE STUDY:
1)

It is better to concentrate on the Ridhi Auto Industries Pvt.

Ltd. Products because the efficiency of the Ridhi Auto Industries
Pvt. Ltd. Products is more and most of the customers are
preferring this product, when compared to other products.

2)

In fixing the price of the product the following factors

should be kept in the mind, because most of the customers feel
that the price of the products is high.
Selection of the sub-supplier (vendors)
Keeping reasonable inventory
Service providers like transporters, agents etc.
Maximum utilization of manpower and machinery etc.,
Optimum design.
Proper planning.
These activities will help in reducing the unnecessary costs incurred by the

company. Moreover this accrued value can be passed on to the customer by reducing
the price.

LIMITATIONS
The main source of data is primary data
50 samples does not reflect the opinion of customers as whole

 Time limit was another limitation and there may be possibility of committing a
general error

SUGGESTIONS

The promotional activities taken by the company need to be more effective. If

the firm promotes the products rigorously and effectively then the customers will
get more information regarding their products.

The company can further enhance its After-Sale services by adopting the latest
practices. Few of the practices are listed below.

Opening a 24hrs or 12 hrs Toll-free numbers to register customer

complaints.

Attending the customers complaints in the least possible time by

having service points at all dealerships.

Free service camps once or twice in a year.

Adopting techniques like Six-Sigma to reduce the repetitions of the

errors.

ANNEXURE
QUESTIONNAIRE
Dear Sir/Madam,
Please tick ( ) the appropriate block of your options for the questionnaire given
below
1. Opinion of customers on product availability.
Excellent ( )

Good ( )

Fair

Poor ( )

( )

2. Customers opinion on features of products.

Excellent ( )

Good ( )

Fair

Poor ( )

( )

3. Opinion of the customers on performance of products.

Excellent ( )

Good ( )

Fair

Poor ( )

( )

4. Awareness on all products of Ridhi Auto Industries Pvt. Ltd..

Well aware

More aware

Few known

Dont know

5. What is our ranking compared with the similar products on the market.
Excellent ( )

Good ( )

Fair

Poor ( )

( )

6. How about the reliability to our products

Excellent ( )

Good ( )

Fair

Poor ( )

( )

7. What about the compatibility of our product

Excellent ( )

Good ( )

Fair

Poor ( )

( )

8. Opinion of customers on price of the product

Very High

( )

High ( )

Reasonable ( )

Low ( )

9. Have these distributing channels are available to you?

Most available ( )

More available ( )

Available

Not available

( )

( )

10. How do you rate our delivery on time performance and our commitment to meet
your delivery expectations?
Excellent ( )

Good ( )

Fair

Poor ( )

( )

11. Can our product working properly?

Excellent ( )

Good ( )

Fair

Poor ( )

( )

12. Do you feel the style and attractiveness to our website

Excellent ( )

Good ( )

Fair

Poor ( )

( )

13. Does our website provide the kind of information that you need?
Excellent ( )

Good ( )

Fair

Poor ( )

( )

14. Do you need technical improvement to Ridhi Auto Industries Pvt. Ltd. products?
Lot of need ( )

More need ( )

Fair need

No need

( )

( )

15. Which advertising media is attracted to you most?

E-Newsletters

( )

Newsletters

Own Website

( )

B2B Portals,
Other famous sites

( )
( )