CHAPTER -1

INTRODUCTION

1
INTRODUCTION ABOUT THE INDUSTRY

Automobile Industry History

In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first

automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled,

military tractor that made the use of a steam engine. The range of the automobile, however, was

very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these

automobiles were not fit for the roads as the steam engines made them very heavy and large,

and required ample starting time. Oliver Evans was the first to design a steam engine driven

automobile in U.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and

1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were

amongst the first to invent more applicable automobiles, making use of non-rechargeable

electric batteries in 1842. Development of roads made travelling comfortable and as a result, the

short ranged, electric battery driven automobiles were no more the best option for travelling

over longer distances.

The Automobile Industry finally came of age with Henry Ford in 1904 for the bulk production

of cars. This lead to the development of the industry and it first begun in the assembly lines of

his car factory. The several methods adopted by Ford, made the new invention (that is, the car)

popular amongst the rich as well as the masses.

According the History of Automobile Industry US, dominated the automobile markets around

the globe with no notable competitors. However, after the end of the Second World War in

2
1945, the Automobile Industry of other technologically advanced nations such as Japan and

certain European nations gained momentum and within a very short period, beginning in the

early 1980s, the U.S Automobile Industry was flooded with foreign automobile companies,

especially those of Japan and Germany.

The current trends of the Global Automobile Industry reveal that in the developed countries the

Automobile Industries are stagnating as a result of the drooping car markets, whereas the

Automobile Industry in the developing nations, such as, India and Brazil, have been

consistently registering higher growth rates every passing year for their flourishing domestic

automobile markets. The World Automobile Industry is turned to the developing markets

With the developed markets almost saturated, the World Automobile Industry is now focused

on the developing markets of South America and Asia, and Eastern Europe with special

emphasis on BRIC (Brazil, Russia, India, and China). As per the reports of the International

Organization of Motor Vehicle Manufacturers or OICA(the association of the companies

involved in World Automobile Industry), for the fiscal end in 2010, the automobile

manufacturers in the U.S. have been overtaken by those in Japan, in terms of the total volume of

automobile units manufactured worldwide.

However, the struggling General Motors of the U.S. still remain the worldwide leaders of the

World Automobile Industry, ahead of the rapidly growing Toyota Motor Corporation of Japan,

by a substantial margin.

3
 PHYSICAL PRESENCE ACROSS THE GLOBE

HDFC BANK have assembly plants and auto manufacturing units in different cities of India,

including Sanand, Lucknow, Pantnagar, Jamshedpur, Pune and Dharwad. They have facilities in

Thailand, UK, South Africa and Argentina too. As far as their development and research

centers’ are concerned, they are present in Lucknow, Jamshedpur, Pune and Dharwad, in

addition to South Korea, UK and Spain. The company has a joint venture for manufacturing

buses with Marco polo, for construction equipments with Hitachi and for automotive

components with Fiat Chrysler.

4
 FOUNDING AND HISTORY

HDFC BANK has auto manufacturing and assembly plants in Jamshedpur, Pantnagar,

Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa, Great

Britain and Thailand.

It has research and development centre’s in Pune, Jamshedpur, Lucknow, Dharwad in India

and also in South Korea, Great Britain and Spain. HDFC BANK principal subsidiaries

purchased the English premium car maker Jaguar and Land Rover (the maker of Jaguar

and Land Rover cars) and the South Korean commercial vehicle manufacturer Tata

Daewoo.

HDFC BANK have a bus-manufacturing joint venture with Marco Polo S.A. (Tata Marco

Polo),a construction-equipments manufacturing joint venture with Hitachi (Tata Hitachi

Construction Machinery), and a joint venture with Fiat Chrysler which manufactures

automotive components and Fiat Chrysler and Tata branded vehicles.

5
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first

commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969.

HDFC BANK entered the passenger vehicle market in 1991 with the launch of the Tata

Sierra, becoming the first Indian manufacturer to achieve the capability of developing a

competitive indigenous automobile. In 1998, Tata launched the Tata Nano, the world’s

cheapest car. HDFC BANK acquired the South Korean truck manufacturer Daewoo

Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover from Ford in

2008.

HDFC BANK is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of

the BSE SENSEX index, the National Stock Exchange of India, and the New York Stock

exchange. The company is ranked 226th on the Fortune Global 500 list of the world’s biggest

corporations as of 2016.

On 17 January 2017, Natarajan Chandrasekaran was appointed chairman of the company.

6
 HISTORY

Tata entered the commercial vehicles sector in 1954 after forming a joint venture with

Daimler-Benz of Germany. After years of dominating the commercial vehicle market in

India, HDFC BANK entered the passenger vehicle market in 1991 by launching the Tata

Sierra, a multi utility vehicle. Tata subsequently launched the Tata Estate (1992; a station

wagon design based on the earlier ‘Tata mobile’ (1989), a light commercial vehicle), the

Tata Sumo (1994; LCV) and the Tata Safari (1998; India’s first sports utility vehicle).

Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Although

initially criticized by auto analysts, its excellent fuel economy, powerful engine, and an

aggressive marketing strategy made it one of the best-selling cars in the history of the Indian

automobile industry. A newer version of the car, named Indica V2, was a major

improvement over the previous version and quickly became a mass favorite. HDFC BANK

also successfully exported large numbers of the car to South Africa. The success of the

Indica played a key role in the growth of HDFC BANK.

In 2004, HDFC BANK acquired Daewoo’s South Korea-based truck manufacturing unit,

Daewoo Commercial Vehicles Company, later renamed Tata Daewoo.

On 27 September 2004, HDFC BANK rang the opening bell at the New York Stock

Exchange to mark the listing of HDFC BANK.

In 2005, HDFC BANK acquired a 21% controlling stake in the Spanish bus and coach

manufacturer Hispano Carrocera. HDFC BANK continued its market area expansion

through the introduction of new products such as buses (Starbus and Globus, jointly

Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo).

7
In 2006, Tata formed a joint venture with the Brazil-based Marco polo, Tata Marco polo

Bus, to manufacturer fully built buses and coaches.

In 2008, HDFC BANK acquired the English car maker Jaguar Land Rover, manufacturer of

the Jaguar and Land Rover from Ford Motor Company.

In May 2009, Tata unveiled the Tata World Truck range jointly developed with Tata

Daewoo; the range went on sale in South Korea, South Africa, the SAARC countries, and

the Middle East at the end of 2009.

Tata acquired full ownership of Hispano Carrocera in 2009.

In 2009, its Lucknow plant was awarded the “Best of All” Rajiv Gandhi National Quality

Award.

In 2010, HDFC BANK acquired an 80% stake in the Italian design and engineering

company Trilix for €1.85 million. The acquisition formed part of the company’s plan to

enhance its styling and design capabilities.

In 2012, HDFC BANK announced it would invest around Rs. 6 billion in the world to run

on compressed air (engines designed by the French company MDI) and dubbed “Mini

CAT”.

In 2014, HDFC BANK introduced first Truck Championship in India “T1 Prima Truck

Racing Championship”.

On 26 January 2014, the Managing director Karl Slym was found dead. He fell from of the

22nd floor to the fourth floor of the Shangri-La-Hotel in Bangkok, where he was to attend a

meeting of HDFC BANK Thailand.

8
 On 2 November 2015, HDFC BANK announced Lionel Messi as global brand ambassador

at New Delhi, to promote and endorse passenger vehicles globally.

On 27 December 2016, HDFC BANK announced the Bollywood actor Akshay Kumar as

brand ambassador for its commercial vehicles range.

On 8 March 2017, HDFC BANK announced that it has signed a memorandum of

understanding with Volkswagen to develop vehicles for India’s domestic market.

Full Name HDFC BANK

Founded 1945, 73 years ago

Founder Ratan Naval Tata

Industry Automobile

Sector Private

Country India

Type Public

Traded as BSE: 500570 (BSE SENSEX CONSTITUENT)

NSE: TATAMOTORS

NYSE:TTM

Headquarters Mumbai, India

Area served Worldwide

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Key people Natarajan Chandrasekaran (Chairman)

Guenter Butschek (CEO)

P B Balaji (CFO)

Products  Automobiles

 Sport cars

 Commercial vehicles

 Coaches

 Buses

 Construction equipment

 Military vehicles

 Automotive parts

Services Automotive design, Equipment and Outsourcing Services

Vehicle Leasing

Vehicle Service

Revenue Rs. 2.697 Trillion (US$41 billion) (2017)

Operating income Rs. 30,343.5 Crore (US$4.6 billion) (2017)

Profit Rs. 7,454.88 Crore (US$1.1 billion) (2017)

Total Assets Rs. 2.725.8. trillion (US$42 billion) (2017)

Number of Employees 79,558 (2017)

Parent Tata Group

Divisions HDFC BANK Cars

Subsidiaries Jaguar Land Rover

Tata Daewoo

Tata Technologies

10
Website www.tatamotors.com

 MODELS

Tata offers 11 new car models in India. Nexon, Tiago and Hexa are among the popular cars

from Tata. Tata Nano is the lowest priced model at Rs. 2.38 lakh and Tata Safari Storme is

the highest priced model at Rs. 12.2. Lakh.

11
12
INTRODUCTION TO STUDY
Customer satisfaction
The definition of customer satisfaction has been widely debated as organizations

increasingly attempt to measurement it. Customer satisfaction can be experienced in a

variety of situations and connected to both goods and services. It is highly personal

assessment that is greatly affected by customer expectations. Satisfaction also is based on

the customer’s experience of both contacts with the organization and personal outcomes.

Some researchers define a satisfied customer within the private sector as one who receive

significant added value to his/her bottom line a definition that may apply just as well to

public service. Customer satisfaction differs depending on the situation and the product or

service. A customer may be satisfied with a product or service, an experience, a purchase

decision, a salesperson, store, service provider, or an attribute or any of these. Some

researchers completely avoid “satisfaction” as a measurement objective because it is “too

fuzzy an idea to serve as a meaningful benchmark.” Instead, they focus on the customer’s

entire experience with an organization or service contact and the detailed assessment of that

experience. Some definition are based on the observation that customer satisfaction or

dissatisfaction results from either that confirmation or disconfirmation of individual

expectations regarding a service or product. To avoid difficulties stemming from the

kaleidoscope of customer expectation and difference, some experts urge companies to

“concentrate on a goal that’s more closely linked to customer equality.” Instead of asking

whether customers hold them accountable 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.

Customer satisfaction depends on the products performed relative to a buyer’s expectation,

the customer is dissatisfied. If preference matches expectation, the customer is satisfied. If

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preference is exceeds expectation, the customer is highly satisfied or delighted outstanding

marketing insurance companies go out of their way to keep their customer satisfied.

Satisfied customers make repeat purchase insurance products and tell other about their

experience with the product. The key is to match customer expectations with company

performance. Smart insurance company’s aim to delight customers by promising only what

they can deliver, then delivering more than the promise. Consumers usually face a broad

array of products and services that might satisfy a given need. How do they choose among

these many marketing makers offers? Consumers make choice based on their perception of

the value and satisfaction that various products and services deliver.

Customer value is difference between the values the customer gains from owing and using a

product and the costs of obtaining the products customers from expectations about the value

of various marketing offers and buy accordingly. How do buyers from their expectations?

Customer expectations are based on past buying experience, the opinion of friends and

marketer and competitor information and promises.

In general, customer satisfaction with auto insurance providers decreased significantly, with

20 of the 21companies surveyed decreasing in satisfaction from the previous year. Cares are

the only carries that did not experience a decline in satisfaction. Businesses survive because

they have customers who are willing to buy their products or services, however, many

businesses fails to “check in” with their customers to determine whether they are happy or

not and what it will make or keep them happy.

According to U.S consumers’ affairs department, it costs five times more to gain a new

customer than to retain an existing one. Other studies have repeated that with just a five

percent increase in Customer retention’s a firm can raise its profitability customers spend

salary at first. Depending on the industry and the nature of the bad experience, dissatisfied

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customers will complain to 10 to 20 friends and acquaintances, which is three times more

than those with good experiences are. Hence, the negative information is influential, and

consumers generally place significant weight on it when making a decision. If that is not the

reason enough, fierce competitor is needed more and more to differentiate firms from one

another. With technology available to virtually every one today, the traditional features and

cost advantages are no longer relevant. Still product and service quality provides an

enormous opportunity to distinguish a firm from the rest. The Japanese have recognized this

and have though us to expect quality. Today’s consumers do, and they know more about

products and services than they ever did.

Customers are the best source of information. Whether to improve an existing product or

service or whether firms are planning to launch something new. There is no substitution for

“getting it from horse’s mouth” When you talk to your customer directly, to increase your

odds for achieving success you “mistake proof” your decisions and work on what really

matters. When you routinely ask the customers for feedback and involve them in business

they, in turn, become committed to the success of your business.

Customer Satisfaction Measurement: -

A basic and effective base line customer satisfaction survey program should focus on

measuring customer perceptions of how will the company delivers on the critical success

factors and dimensions of the business as defined by the customers:

For example:

 Service Promptness

 Courtesy of Staff

 Responsiveness

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 Understanding the customer problem, etc.

The findings of the company performance should be analyzed both with all customers and

by key segments of the customer population. The essential starting point for Customer

Satisfaction Measurement (CMS) is exploratory research. Since satisfaction is about an

organization’s ability. To meet customer requirement one has to start by clarifying with

customers exactly what those requirements are. This is done through exploratory research

using focus groups or one to one depth interviews.

Two main factors determine the accuracy of CMS. The first is the asking the right question

and the second is the asking them to the right people sample of customers which accurately

reflects the customer base.

Three things decide the accuracy of a sample. They are:

 It must be representative.

 It must be randomly selected.

 It must be adequate enough.

Measuring customer satisfaction

Organizations need to retain 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 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

16
satisfaction can also vary depending on other factors the customer, such as other products

against which the customer can compare the organization's products.

Work done by Parasuraman, Zenithal and Berry (Leonard L) between 1985 and 1988

delivered SERVQUAL which 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 researcher

with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor extended

the disconfirmation theory by combining the "gap" described by Parasuraman, Zenithal and

Berry.

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

a Linker Technique or scale. The customer is asked to evaluate each statement in terms of

their perception and expectation of performance of the service being measured. Customer

satisfaction is highly recognized by manufacturers and is a necessity forced upon dealers.

Dealers therefore often aim to get the highest level of satisfaction mainly to reap the rewards

of a bonus (or save being fined), rather than recognizing its true value. But it’s more than

just a tool to give you a juicy OEM bonus; it can really help to improve operations in your

dealership and differentiate yourself from the competition.

There are many points at which you can measure customer satisfaction; from their first visit

to your dealership to bringing their car in for a service. Surveys are a great way to monitor

and manage satisfaction levels. Responses to questions should be carefully reviewed and

those that fall short urgently addressed.

Surveys don’t necessarily have to be conducted after an event and they don’t need to be

lengthy documents, either. They can be short and sweet, requiring the customer to answer

17
just a few simple questions on a tablet or via SMS while they’re waiting to collect their

vehicle.

This approach will appeal to many customers who don’t have the time or patience to answer

long surveys. You should consider other added extras that will improve their experience

with you, such as on-site valet parking – anything to keep their loyalty and stand out from

your competitors.

STRENGTHS

 HDFC BANK are market leader in Automobile Industry with high market share.

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 HDFC BANK Company have huge employee base.

 HDFC BANK employee productivity percentage is higher.

 HDFC BANK produce low price car with low fuel consumption.

 HDFC BANK are the reputable brand in Indian Industry.

 HDFC BANK Limited is India’s largest automobile company, with revenues of Rs.

35651.48 crores (USD 8.8 billion) in 2007-08.

 The company’s dealership, sales, services and spare parts network comprises over

3500 touch points.

 HDFC BANK has been aggressively acquiring foreign brands to increase its global

presence.[sky]

 The research and development department of HDFC BANK is very strong.

 HDFC BANK posses High corporate responsibility

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.WEAKNESS

 Return on Investment on HDFC BANK shares in low.

 HDFC BANK are not able to meet safety standards in their vehicles.

 The domestic sales of the company are not up to the mark.

 Tata has not got a foothold in the luxury car segment in its domestic market.

OPPORTUNITIES

 HDFC BANK can take the advantage of their low cost car by entering into third

world countries where people have low purchasing power.

 HDFC BANK should focus in developing luxury cards.

 HDFC BANK can introduce more safety features in vehicles to gain more customer

satisfaction.

 Joint ventures in other countries allow HDFC BANK to easily enter into new market.

THREATS

 HDFC BANK have low cost advantage over its competitors, once the competitors

find out the low cost production methodology then there will no competitive

advantage.

 Other companies are starting to compete for some of this market share. In fact, the

Pakistan’s Transmission Motor Company has built a basic four-wheeler for only

$2,100. This car is considerably cheap and the Pakistan Transmission Motor

company started exporting them to Sudan, Qatar, and Chile. This is going to be the

beginning of new emerging car manufactures that will be producing low priced cars.

 The major challenge for HDFC BANK is the rising prices of steel, Aluminum and

plastic which is heavily used in vehicle manufacturing.

19
  The low safety standards can impact the sales.

 It termed as environment friendly.

 Various products were predicted to switch towards the hybrid electric engines.

 Well researched programs are under consideration in order to gain more popularity.

 Restructuring plan was launched in order to improve the performance.

Who really is a Customer?

The question of defining who your customers are seems fairly easy particularly if you have

segmented your market properly and understand who you are trying to satisfy. However

subtlety that frequently goes undetected by many firms is that is that customer set can be

divided into two parts, the apparent customer and the user. The apparent customer is the

person or group of people who decide what product to buy and basically have control over

the purse strings. The user is a person or group who physically uses the product or is the

direct recipient of a service.

What does satisfaction really mean?

As in defining customer above, defining satisfaction also appears simple. However as with

customer there is a subtlety that needs addressing. Satisfaction by most definitions simply

means meeting the customer’s requirement.

Customer satisfaction is a concept that more and more companies are putting at the heart of

their strategy, but for this to be successful they’re needs to be clarity about, what customer

satisfaction means and what needs to happen to drive improvement. Without this, there is a

risk that customer satisfaction becomes little more than a good intention, with confused

objectives failing to address the real issues for customers, one helpful way to look at the

20
problem is to rephrase the objectives: set the sights on helping the customers meet their

goals.

Customer satisfaction can be defined in many different ways. Finding the right way for a

company depends on understanding your customer and on having a clear vision of the role

that customer satisfaction is to play in the strategy. For example, a focus on customer

satisfaction can work alongside existing segmentations to support revenue generation from

high value customers or it can be a company-wide objective rooted in the brand values. For

the former, it may be sufficient to focus on improving customer service, but for the latter a

broader definition of customer satisfaction is necessary, closer akin to corporate reputation.

Whatever the strategy for customer satisfaction, it must at least include getting the basics

right. Failing to achieve this can destroy the reputation as well as losing valuable customers.

Every customer, regardless of their economic worth to the business, has the power to

influence – positively or negatively – a company’s reputation. Once the objectives for the

customer satisfaction strategy are defined there are a number of steps we can take to make

sure the focus on customer satisfaction is effective.

Building a company around Customer Satisfaction

With the increase in customer’s demands and competition it has become a lot more

important to base the entire company on customer service. When doing this one must first

realize that every member of an organization plays an active role in customer service. This

includes both external customers and internal customers within a company.

Customer focused organizations focus both on customer satisfaction and profit. Achieving

customer satisfaction generates the profit. In these organizations top management has

frequent contacts with external customers. The top management uses consultative,

21
participative, and supportive management styles to get through to the customer. The staff

focuses all of its attention on satisfying the customer’s needs. However, the management’s

job is to provide the staff with support necessary to achieve these goals. The other

department and staff in the organization that do not have direct contact with the external

customers deal exclusively with internal customer satisfaction.

The Influence of the salesperson in Customer Satisfaction

In an article titled, “The influence of salesperson selling behavior on customer satisfaction

with products,” Brent G.Goff and James S. Boles examine the effects of non-product related

construct on customer satisfaction with major retail purchases such as automobiles. The

article states that salesperson’s selling orientation- customer orientation (SOCO) will affect

not only consumer satisfaction with the salesperson and dealer, but also indirectly,

satisfaction with the product or manufacturer.

In the perspectives of both the retailer and the manufacturer, customer satisfaction represents

an important issue because it relates to several desirable outcomes. Customer satisfaction

leads to future purchases, and repeated purchases of the same product from the same source.

In other words, it helps a firm retain its present customers and build loyalty. By helping a

buyer obtain product information and providing guidelines about what should be expected

during the buying process and use of a product, a salesperson may influence customer

expectations concerning the product. Thereby this may reduce the likelihood of

dissatisfaction (Grewal and Sharma, 1991). A successful salesperson tailors to the needs of

each individual customer. By being customer-oriented, a salesperson is likely to identify

with needs of the customer, enabling the salesperson to match his or her presentation to

those requirements of the customer.

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Internal marketing – how it affects Customer Satisfaction –

Successful companies make every effort to ensure satisfaction to their customer by focusing

all organizational efforts of the company on providing superior customer service. By doing

this these companies hope to retain their existing customers and attract new ones. Only angle

of customer satisfaction commonly overlooked is the internal aspect.

The internal customer or employee plays a vital role in achieving customer satisfaction and

loyalty. Some firm’s do not understand that the treatment of internal customers becomes the

external customers’ perception of the company. A firm’s employees or other departments

within the organization make up its internal customers. Their job performance affects the

firm’s ability to deliver superior product and customer service (Boone and Kurtz, 1999).

When a firm’s employees are happy at work, their overall attitude and performance towards

the customer enhances tremendously.

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 CHAPTER-2

LITERATURE REVIEW

24
LITERATURE REVIEW

Sheetal B. Sachem, Harsh V. Verma (2004) this study is an attempt to explore a relative

importance of service quality dimensions across a select ‘service context. The results

Suggest that all the service quality dimensions are equally important as no proper order of

Their importance could be established, the service performance in relation to the

Expectations ‘is poor in respect of nearly all the dimensions and in all the select services,

And the nature of service does not seem to have a role in establishing an order of Importance

of the dimensions.

Dr K. Chidambaram ET. al. (2004) the researchers undertook a study on "Brand

Preference of Passenger Cars - A Study with Special Reference to Coimbatore City in Tamil

Nadu", argued that the customers gave more importance to fuel efficiency than to other

factors. They believed that the brand name was explanatory of product, quality, utility and

technology. Consumers preferred to purchase passengers cars, as they offered high fuel

efficiency, good quality, technology and durability, and could be purchased at a reasonable

price.

S. Muralidhar (2005) The research analysts, Business Line, in his article "Passenger Car -

Distinct Signs of Maruti" said that managing costs, improving productivity and efficient

investments into research and development would be the key parameters that would

determine the competitiveness of car manufactures, especially the home grown ones. This

would come into sharper focus for companies that attempt to go global with their products,

as imports of passenger cars in the premium sedans category become an increasingly

attractive proposition.

Sumit Jain (2006) the automotive industry is now facing new and pressing challenges.

Globalization, individualizations, digitalization and increasing competition are changing the

25
face of the industry. In addition, increasing safety requirements and voluntary environmental

commitments have also contributed to the changes ahead. The size of the organization is no

longer a guarantee of success. Only those companies that find new ways to create value may

prosper in the future. The purpose of this study is to present a short overview of the

automotive industry today and highlight challenges facing the industry.

Dr Mrs. J Jelsy Joseph and T Hemalatha (2007) Their study "Customer Relationship

Management in Passenger Car Industry" argues that after-sales services not only help in

firms coming close to the customer and build credibility for their service and commitment

towards the customer but also help improve mouth publicity and good will generated from

such customer-oriented efforts. It also reveals that the firms improve their market share and

interact with consumer to maintain relationship. A customer acquisition and relations have

become the most important terms in sales.

Dr S. Saravanan (2008) following the policy lubrications of the Government of India in

1991, a number of multinational car companies entered the country. These companies

launched big cars assuming that the small car owners in India would immediately upgrade to

them. Ford India Ltd, the Indian subsidiary of Ford Motors launched Ford Escort. These cars

were considered to be quite bigger cars and the Indian buyers shunned them. These

companies, which had established huge manufacturing facilities in the country, faced a poor

utilization of capacity. Ford India Ltd also faced the same crisis.

Rajnish Katarne and Satyendra Sharma (2010) this paper aimed at the measurement of

current service quality level of a typical automobile dealership in an Indian city. The study

was conducted using a representative survey of respondents, the owners of one of the

popular brand vehicles. In this paper, satisfaction/dissatisfaction of the customer has been

measured using standard statistical tools, and an attempt has been made to find out reason(s)

26
for dissatisfaction by applying the root cause analysis. The current performance of a service

centre was not found up to the mark. Necessary suggestions have been made and the service

centre has started executing them for the improvement in the current service quality level.

Nitin Joshi1, D. P. Mishra 1 (2011) The aim of the study is to understand the behavior of

the customer in the State of Maharashtra which is one of the most developed states of India.

The study was carried out to understand the customer awareness on environment friendly car

(EFC). The objective of the study is to understand the awareness levels and create awareness

of the EFC so that the efforts of the manufacturing the green car will be achieved. SPSS

version 17.0 has been used for analysis of the data. Five hundred respondents have been

asked to fill in a questionnaire

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 CHAPTER-3

RESEARCH METHODOLOGY

28
RESEARCH METHODOLOGY

Research is a careful investigation or inquiry especially through search for new facts in

branch of knowledge: market research specifies the information. Required to address these

issues: designs the method for collecting information: manage and implements the data

collection process analyses the results and communicates the finding and their implications.

This chapter aims to understand research methodology establishing a framework of

evaluation and re-evaluation of primary and secondary research. The techniques and

concepts used during primary research in order to arrive at findings, which are also dealt

with and lead to a logical deduction towards the analysis and results.

DATA COLLECTION METHODS

Sources of data:

The information needed to further proceed had been collected through primary and

secondary data

Primary Data: The primary data was collected by means of personal interview and

analysis was done on the basis of response received from the customers. The interview has

been conducted in such a manner that the consumer’s satisfaction level can be measured and

consumer can enter his responses easily.

Secondary Data: The purpose of collecting secondary data was to achieve the objective

of studying the recent trends and developments taking place in cargo vehicles.

INTERNAL SOURCES

 Company Journals

29
  Company Reports

 Company Brochures

EXTERNAL SOURCES

 Websites

 Newspapers

 Magazines

TOOLS FOR DATA COLLECTION

The primary data for the study are collected through personal interview and calling

system:

 Discussion with person in related stream of activities and views from experts will

be analyzed.

 Secondary sources of data required for the study can be collected from secondary

sources, this include library references, journals, newspapers and other articles.

 Data required for the study collected through the questionnaire.

RESEARCH DESIGN

Sample size: 50 respondents

30
OBJECTIVES OF THE STUDY

The study has been undertaken with the main objective to know the satisfaction level of the

consumer with the products and after sale services of the vehicles. The other specific

objectives are:

 To study the level of customer satisfaction with the services provided by TATA

Motors

 To study the opinion of the owners of cars regarding its features like mileage, price

etc.

 To study the effect of advertisement on the customers to promote the produce.

 To study the customer satisfaction with using their car.

 To study the information resources that the customer using before purchasing the car.

31
SCOPE

Every company use various factors which are used to improve their service quality and

measures take solves problems. The study aims to find out the various factors which are

used to improve their service quality and measures taken to solve the problem if any to

increase satisfactory level of customers and thereby increasing the sales of products in

HDFC BANK and also creating a place in consumers mind, it may helps to develop

corporate image of HDFC BANK. Corporate image of the company may build with

years of quality service leads to positioning a place in the customers mind. Customer

satisfaction is important to create corporate image. The people think is depend upon what

they hear see or read corporate image. So every concerns establish maintain positive

relation with general public.

The scope of the study involves that how the customer satisfaction affect the corporate

image these study is most relevant today’s business world. The companies follow a

maintenance review system so that they can easily inform their customers about their

service date. The customer is also happy with the customer redresser procedure.

32
 CHAPTER-4

DATA ANALYSIS

AND

INTERPRETATION

33
DATA ANALYSIS AND INTERPRETAION

Data analysis consists of diagrammatic representation and interpretation of data collected

through questionnaire from the customers.

1) ASSOCIATION OF CUSTOMERS WITH HDFC BANK

TIME PERIOD NO. OF RESPONDEDNTS PERCENTAGE

Below 6 months 10 20%

6 month – 1 year 4 8%

1-3 year 7 14%

3-5 year 9 18%

More than 5 years 20 40%

Total 50 100%

Association of customers with HDFC BANK

20% Below 6 months

40%
8% 6 month-1 year

14% 1-3 year

18% 3-5 years

More than 5 years

34
Analysis and interpretation: Here we analysis is carried out to check how long a

customer will stay in HDFC Bank and from the response and analysis it is found that

almost 40% of the respondents are there in more than 5 years, 20% are below 6 months,

18% in between 3-5 years, 14% are in between 1-3 year and 8% are in 6 month – 1 year.

Analysis and Interpretation: This analysis is carried out to check which car is

more preferred by customers in HDFC BANK.

WHICH PRODUCT IS LIKED BY CUSTOMERS

OPINION NO. OF RESPONDENTS PERCENTAGE

CASA 14 28%

FD 13 26%

RD 16 32%

CREDIT CARD 7 14%

Total 50 100%

Which feature is more liked by customers?

14%
28%

CASA

32% FD
RD
26% CREDIT CARD

35
Analysis and Interpretation: This analysis is carried out to check that which feature of

HDFC BANK is more liked by customers. From the responses it is found that 32% of the

respondents like the RD, 28% of the respondents like CASA of the HDFC BANK.

2) WHAT DO YOU FEEL GREAT ABOUT TATA CAR WHEN

COMPARED TO OTHER CARS IN THE MARKET?

OPINION NO. OF PERCENTAGE

RESPONDENTS
Fuel efficiency 16 32%

Durability 11 22%

Low maintenance 19 38%

Sound quality 4 8%

Total 50 100%

36
 What is great in tata cars in comparison to
other cars?

8%
32%
Fuel efficincy
38% Durability
Low Maintenance
22%
Sound Quality

Analysis and Interpretation: This analysis is carried out to check that which feature

of Tata car makes the customers feel great in comparison to other cars. From the responses it

is found that 38% of the respondents like the Low Maintenance, 32% of the respondents like

Fuel efficiency of the Tata cars, 22% of the respondents like durability of the Tata cars and

8% of the respondents like Sound quality of the Tata cars.

3) ARE YOU SATISFIED WITH FUEL CONSUMPTION OF TATA

CARS?

OPINION NO. OF PERCENTAGE

RESPONDENTS
Extremely satisfied 16 32%

Satisfied 11 22%

Neutral 16 32%

Dissatisfied 7 14%

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 Total 50 100%

Satisfaction with fuel consumption

14%
32%

Extremely satisfied

32% Satisfied
Neutral
22% Dissatisfied

Analysis and Interpretation: This analysis is carried out to check the satisfaction level

of customers about the fuel consumption in Tata cars. From the responses it is found that

32% of the respondents are extremely satisfied, 32% of the respondents Neutral, 22% of the

respondents are satisfied and 14% of the respondents are dissatisfied.

4) ARE YOU SATISFIED WITH DESIGN OF TATA CARS?

OPINION NO. OF PERCENTAGE

RESPONDENTS
Extremely satisfied 27 54%

Satisfied 6 12%

Neutral 11 22%

Dissatisfied 6 12%

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 Total 50 100%

Satisfaction with design of Tata Cars

12%

22% Extremely Satisfied

54% Satisfied
Neutral
12%
Dissatisfied

Analysis and Interpretation: This analysis is carried out to check the satisfaction level

of customers about the design of Tata cars. From the responses it is found that 54% of the

respondents are extremely satisfied, 22% of the respondents Neutral, 12% of the respondents

are satisfied and 12% of the respondents are dissatisfied.

5) ARE YOU SATISFIED WITH SPACE AVAILABLE IN THE

TATA CARS?

OPINION NO. OF PERCENTAGE

RESPONDENTS
Extremely satisfied 28 56%

Satisfied 4 8%

Neutral 9 18%

39
 Dissatisfied 9 18%

Total 50 100%

Satisfaction with space available in cars?

18%

Extremely satisfied
18%
56% Satisfied
Neutral
8%
Dissatisfied

Analysis and Interpretation: This analysis is carried out to check the satisfaction level

of customers about the space available in Tata cars. From the responses it is found that 56%

of the respondents are extremely satisfied, 18% of the respondents Neutral, 18% of the

respondents are dissatisfied and 8% of the respondents are satisfied.

6) ARE YOU SATISFIED WITH MAINTENANCE COST OF TATA

CARS?

OPINION NO. OF PERCENTAGE

RESPONDENTS
Extremely satisfied 17 34%

Satisfied 5 10%

40
 Neutral 14 28%

Dissatisfied 14 28%

Total 50 100%

Satisfaction with Mintenance cost

28%
34%

Extremely satisfied
Satisfied
Neutrsal
10%
28% Dissatisfied

Analysis and Interpretation: This analysis is carried out to check the satisfaction level

of customers about the maintenance cost of Tata cars. From the responses it is found that

34% of the respondents are extremely satisfied, 28% of the respondents Neutral, 28% of the

respondents are dissatisfied and 10% of the respondents are satisfied.

7) ARE YOU SAISFIED WITH SERVICE CHARGES OF TATA

CARS?

OPINION NO. OF PERCENTAGE

RESPONDENTS
Extremely satisfied 16 32%

Satisfied 3 6%

41
 Neutral 20 40%

Dissatisfied 11 22%

Total 50 100%

Satisfaction level with service charges

22%
32%

Extremely satisfied
Satisfied
6% Neutral
40% Dissatisfied

Analysis and Interpretation: This analysis is carried out to check the satisfaction level

of customers with service charges of Tata cars. From the responses it is found that 40% of

the respondents are Neutral, 32% of the respondents extremely satisfied, 22% of the

respondents are dissatisfied and 6% of the respondents are satisfied.

8) ARE YOU SATISFIED WITH INSURANCE POLICIES?

OPINION NO. OF PERCENTAGE

RESPONDENTS
Yes 36 72%

No 14 28%

42
 Total 50 100%

Satisfaction with insurance policies

28%

Yes
No
72%

Analysis and Interpretation: This analysis is carried out to check the satisfaction level

of customers with insurance policies of Tata cars. From the responses it is found that 72% of

the respondents say yes and 28% of the respondents said no.

9) HOW WILL YOU RATE TEH COMPANY IN MAINTAINING

GOOD CUSTOMER RELATIONSHIP?

OPINION NO. OF PERCENTAGE

RESPONDENTS
Good 21 42%

43
 Average 13 26%

Poor 16 32%

Total 50 100%

Rating for Maintaining Good customer

relationship

32%
42%

Good
Average
Poor
26%

Analysis and Interpretation: This analysis is carried to check out that how

successfully the company is maintaining good customer relationship. From responses it is

analyzed that 42% people rate the company good for maintaining customer relationship,

32% of the respondents rate it poor and 26% rate it average.

10) WHAT IS THE GENERAL PERCEPTION OF CUSTOMER

ABOUT HDFC BANK?

OPINION NO. OF PERCENTAGE

RESPONDENTS
Very Good 30 60%

44
 Good 6 12%

Average 7 14%

Bad 7 14%

Total 50 100%

General perception about Tata Motors

14%

14%
Very Good
Good
60%
12% Average
Bad

Analysis and Interpretation: This analysis is carried out to check the general

perception of customers about HDFC BANK. From the responses it is analyzed that 60%

people said very good, 14% people said bad, 14% people said average, 12% people said

good.

45
11) How many marks would you like to give Tata cars out of 10?

OPTION NO. OF PERCENTAGE

RESPONDANTS
0 to 4 4 8%

5 to 8 21 42%

9 to 10 25 50%

Total 50 100%

Rating to TATA MOTORS

8%

50%
0 to 4
42%
5 to 8
9 to 10

Analysis and Interpretation: This analysis is carried out to check the rating out of 10

to HDFC BANK. From the responses it is analyzed that 50% people said 9-10, 42% people

said 5-8, and 8% people said 0-4 rating.

46
 CHAPTER-5

FINDINGS, SUGGESTIONS,

LIMITATIONS AND

CONCLUSION

47
 FINDINGS

 An attempt was done to know about how long a customer will stay in HDFC BANK

and from the response and analysis it is found that almost 40% of the respondents are there

in more than 5 years, 20% are below 6 months, 18% in between 3-5 years, 14% are in

between 1-3 year and 8% are in 6 month – 1 year.

 An attempt was done to know about which car is more preferred by customers in

HDFC BANK. And from the responses it is found that 32% of the respondents own Tiago

car, 14% of the respondents own Zest cars, 12% of the respondents own Safari cars, 8% of

the respondents own Nano cars, 6% of the respondents own Nexon cars, 6% of the

respondents own Hexa cars, 6% of the respondents own Bolt cars, 6% of the respondents

own Tigor cars, 6% of the respondents own Indigo cars, 4% of the respondents own Indica

cars.

 An attempt was done to know about which feature of Tata car is more liked by

customers. From the responses it is found that 32% of the respondents like the Tata Brand,

28% of the respondents like Style/Design of the Tata cars, 26% of the respondents like

comfort in the Tata cars and rest of the respondents like Service of the Tata cars.

 An attempt was done to know about which feature of Tata car makes the customers

feel great in comparison to other cars. From the responses it is found that 38% of the

respondents like the Low Maintenance, 32% of the respondents like Fuel efficiency of the

Tata cars, 22% of the respondents like durability of the Tata cars and 8% of the respondents

like Sound quality of the Tata cars.

 An attempt was done to know about the satisfaction level of customers about the fuel

consumption in Tata cars. From the responses it is found that 32% of the respondents are

extremely satisfied, 32% of the respondents Neutral, 22% of the respondents are satisfied

and 14% of the respondents are dissatisfied.

48
 An attempt was done to know about the satisfaction level of customers about the

design of Tata cars. From the responses it is found that 54% of the respondents are

extremely satisfied, 22% of the respondents Neutral, 12% of the respondents are satisfied

and 12% of the respondents are dissatisfied.

 An attempt was done to know about the satisfaction level of customers about the

space available in Tata cars. From the responses it is found that 56% of the respondents are

extremely satisfied, 18% of the respondents Neutral, 18% of the respondents are dissatisfied

and 8% of the respondents are satisfied.

 An attempt was done to know about the satisfaction level of customers about the

maintenance cost of Tata cars. From the responses it is found that 34% of the respondents

are extremely satisfied, 28% of the respondents Neutral, 28% of the respondents are

dissatisfied and 10% of the respondents are satisfied.

 An attempt was done to know about the satisfaction level of customers with service

charges of Tata cars. From the responses it is found that 40% of the respondents are Neutral,

32% of the respondents extremely satisfied, 22% of the respondents are dissatisfied and 6%

of the respondents are satisfied.

 An attempt was done to know about the satisfaction level of customers with

insurance policies of Tata cars. From the responses it is found that 72% of the respondents

say yes and 28% of the respondents said no.

 An attempt was done to know about how successfully the company is maintaining

good customer relationship. From responses it is analyzed that 42% people rate the company

good for maintaining customer relationship, 32% of the respondents rate it poor and 26%

rate it average.

49
 An attempt was done to know about the general perception of customers about

HDFC BANK. From the responses it is analyzed that 60% people said very good, 14%

people said bad, 14% people said average, 12% people said good.

 An attempt was done to know about the rating out of 10 to HDFC BANK. From the

responses it is analyzed that 50% people said 9-10, 42% people said 5-8, and 8% people said

0-4.

50
 SUGGESTIONS

 HDFC BANK must address the timeliness issue during servicing the vehicles.

 Strategies on Customer Relationship Management need to be framed and

implemented.

 HDFC BANK should reduce the service charges, as more than half of the

respondents find them to be unreasonable.

 The after sale services need to be improved.

 .Since majority of customers sell their TATA vehicle and shift their preference to

other brands after around 2 years, the company should seriously take this fact into

consideration.

 Changes need to be incorporated in the procedure of the service.

 There is need to manage the time to make bills and job cards so those customers
need not to wait for a long time after the service has done.

 HDFC BANK should try to use the advertising media optimally to gain the
benefits.

 The Workshop Customer Relationship Manager should try to maintain the better
rations with customers by properly solving the problems of customers.

51
 LIMITATIONS

 Some of the respondents were hesitating to disclose their views. Thus personal bias

was an important limitation of the study.

 All limitations pertaining to the questionnaire method also affect the study.

 Statistical and analytical method that have been used as its own limitations.

 All the inherent limitation of sampling method i.e the systematic biases might have

crept into the study

52
 CONCLUSION

In the nutshell, it can be concluded that the brand name rules the heart of the customers. Tata

Tiago is the most favorite car among other Tata vehicles. Unfortunately, majority of

customers sell their Tata vehicle and shift their preference to other brands after around 2

years. This indicates poor strategic planning. The after sale services of the dealer also need

improvements. The dealer should seriously take this into consideration for its long run

survival and success. Strategies need to be formulated to have an edge over the competitors.

Tata is one of the top car brands in the world and customers attach expectations with it.

However, not most of the customers are pleased with its services. The company needs to

keep in mind that the customer is the king, and his satisfaction should be the topmost

priority of the company. But the revelations of the research don’t present a very good

picture. I hope the company draws benefits from this report and understands the value of

perception of its esteemed customers and make the required improvements.

Finally, I would like to mention that this project has given me an idea of handling real

situations. I have made my sincerest efforts to complete this work with as much perfection

as possible.

53
 BIBLIOGRAPHY

REFERENCES

 C.R. KOTHARI, “Research Methodology”, 2nd Edition.vikas publication

 PHILIP KOTLER (North western university), Kevin lane Keller (Darth Lane

College) Abraham koshy ( IIM Ahmadabad), Mithileshwar Jha (IIM Bangalore)

“Marketing Management” 13th edition, Pearson publication, 2009,p.505

 KASPER, H. (1988). “On problem perception, dissatisfaction, and brand loyalty”

Journal of Economic Psychology, 9 (3), 387-397.

HYPERLINKS

1) www.tatamotors.com

2) www.autocar.com

3) www.overdrive.in

4) Magazines- AutoCAD India, Top gear, What Car, Corn Style

5) Newspapers- Economic Times Pinwheels

6) Journals- India Overdrive, Fastback

54
 QUESTIONNAIRE

PERSONAL INFOMATION

Name of respondent: _____________ Gender: _________________

Age: __________________________

Occupation: ____________________

1) Which gender prefers TATA MOTOR’S CARS?

 Male

 Female

2) Which age group more prefers TATA MOTOR’S CARS?

 18-28

 29-38

 39-48

 49-above

3) How long have you been associated with TATA MOTOR’S?

 Below 6 months

 6 months to 1 year

 1 to 3 years

 3 to 5 years

 More than 5 years

4) Which of the following TATA car you own?

 Nexon  Bolt  Tiago

 Hexa  Zest  Safari

55
 Tigor  Nano

 Indigo

 Indica

5) What do you like most about the TATA CARS?

 Style/Design

 Comfort

 Tata Brand

 Service

6) What do you feel great about TATA car when compared to other

cars in the market?

 Fuel efficiency

 Durability

 Low maintenance

 Sound quality

7) Are you satisfied with fuel consumption of TATA CARS?

 Extremely Satisfied

 Satisfied

 Neutral

 Dissatisfied

8) Are you satisfied with design of TATA CARS?

 Extremely Satisfied

 Satisfied

56
 Neutral

 Dissatisfied

9) Are you satisfied with space available in the TATA CARS?

 Extremely Satisfied

 Satisfied

 Neutral

 Dissatisfied

10) Are you satisfied with Maintenance cost of TATA CARS?

 Extremely Satisfied

 Satisfied

 Neutral

 Dissatisfied

11) Are you satisfied with service charges of TATA MOTOR’S?

 Extremely Satisfied

 Satisfied

 Neutral

 Dissatisfied

12) Are you satisfied with insurance policy provided by TATA

MOTOR’S?

 Yes

 No

13) How will you rate the company in maintaining good customer

relationship?

 Good

57
 Average

 Poor

14) What is your general perception about TATA cars?

 Very Good

 Good

 Average

 Bad

15) How many marks would you like to give Tata cars out of 10?

 0 -4

 5-8

 9-10

Suggestion for improvement

__________________________________________________________________________

__________________________________________________________________________

________________________________________

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