customer satisfaction in maruti suzuki

8/13/2019 Customer Satisfaction in Maruti Suzuki

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CUSTOMER SATISFACTION IN

MARUTI SUZUKI

CUSTOMER SATISFACTION

MEANING

Customer satisfaction, a term frequently used in marketing, is a measure of how

products and services supplied by a company meet or surpass customer expectation. Customer

satisfaction is defined as "the number of customers, or percentage of total customers, whose

reported experience with a firm, its products, or its services (ratings) exceeds specified

satisfaction goals. !n a survey of nearly ## senior marketing managers, $% percent responded

that they found a customer satisfaction metric very useful in managing and monitoring their

businesses.

!t is seen as a key performance indicator within business and is often part of a &alanced

'corecard. !n a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of business

strategy.

"ithin organiations, customer satisfaction ratings can have powerful effects. *hey focus

employees on the importance of fulfilling customers+ expectations. urthermore, when these

ratings dip, they warn of problems that can affect sales and profitability. *hese metrics quantify

an important dynamic. hen a brand has loyal customers, it gains positive word-of-mouth

marketing, which is both free and highly effective."

*herefore, it is essential for businesses to effectively manage customer satisfaction. *o be able

do this, firms need reliable and representative measures of satisfaction.

"!n researching satisfaction, firms generally ask customers whether their product or service has

met or exceeded expectations. *hus, expectations are a key factor behind satisfaction. hen

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customers have high expectations and the reality falls short, they will be disappointed and will

likely rate their experience as less than satisfying. or this reason, a luxury resort, for example,

might receive a lower satisfaction rating than a budget moteleven though its facilities and

service would be deemed superior in /absolute/ terms.

*he importance of customer satisfaction diminishes when a firm has increasedbargaining power.

or example, cell phoneplan providers, such as 0*1* and 2erion, participate in an industry

that is an oligopoly, where only a few suppliers of a certain product or service exist. 0s such,

many cell phone plan contracts have a lot offine printwith provisions that they would never get

away if there were, say, a hundred cell phone plan providers, because customer satisfaction

would be way too low, and customers would easily have the option of leaving for a better

contract offer.

*here is a substantial body of empirical literature that establishes the benefits of customer

satisfaction for firms.

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http://en.wikipedia.org/wiki/Bargaining_powerhttp://en.wikipedia.org/wiki/Bargaining_powerhttp://en.wikipedia.org/wiki/Cell_phonehttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Verizonhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Cell_phonehttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Verizonhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Bargaining_power


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PURPOSE OF CUSTOMER SATISFACTION

Customer satisfaction provides a leading indicator of consumer purchase intentions and

loyalty." "Customer satisfaction data are among the most frequently collected indicators of

market perceptions. *heir principal use is twofold3"

"ithin organiations, the collection, analysis and dissemination of these data send a message

about the importance of tending to customers and ensuring that they have a positive experience

with the company+s goods and services."

"0lthough sales or market share can indicate how well a firm is performing currently,

satisfaction is perhaps the best indicator of how likely it is that the firm+s customers will make

further purchases in the future. 4uch research has focused on the relationship between customer

satisfaction and retention. 'tudies indicate that the ramifications of satisfaction are most strongly

realied at the extremes." 5n a five-point scale, "individuals who rate their satisfaction level as

/6/ are likely to become return customers and might even evangelie for the firm. (0 second

important metric related to satisfaction is willingness to recommend. *his metric is defined as

"*he percentage of surveyed customers who indicate that they would recommend a brand to

friends." hen a customer is satisfied with a product, he or she might recommend it to friends,

relatives and colleagues. *his can be a powerful marketing advantage.) "!ndividuals who rate

their satisfaction level as /%,/ by contrast, are unlikely to return. urther, they can hurt the firm by

making negative comments about it to prospective customers.illingness to recommendis a

key metric relating to customer satisfaction."

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CONSTRUCTION OF CUSTOMER SATISFACTION

5rganiations need to retain existing customers while targeting non-

customers. 4easuring customer satisfaction provides an indication of how successful the

organiation is at providing products and7or services to the marketplace.

Customer satisfaction is measured at the individual level, but it is almost always reported at an

aggregate level. !t can be, and often is, measured along various dimensions. 0 hotel, for

example, might ask customers to rate their experience with its front desk and check-in service,

with the room, with the amenities in the room, with the restaurants, and so on. 0dditionally, in a

holistic sense, the hotel might ask about overall satisfaction /with your stay.

0s research on consumption experiences grows, evidence suggests that consumers purchase

goods and services for a combination of two types of benefits3 hedonic and utilitarian. 8edonic

benefits are associated with the sensory and experiential attributes of the product. 9tilitarian

benefits of a product are associated with the more instrumental and functional attributes of the

product (&atra and 0thola %::#).

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the

state of satisfaction will vary from person to person and product7service to product7service. *he

state of satisfaction depends on a number of both psychological and physical variables which

correlate with satisfaction behaviors such as return and recommend rate. *he level of satisfaction

can also vary depending on other options the customer may have and other products against

which the customer can compare the organiation/s products.

ork done by ;arasuraman, ective and quantitative in nature. ork done by

Cronin and *aylor propose the "confirmation7disconfirmation" theory of combining the "gap"

described by ;arasuraman,


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their perception and expectation of performance of the organiation being measured. *heir

satisfaction is generally measured on a five-point scale.

"Customer satisfaction data can also be collected on a %#-point scale."

"@egardless of the scale used, the ob>ective is to measure customers+ perceived satisfaction with

their experience of a firm+s offerings." !t is essential for firms to effectively manage customer

satisfaction. *o be able do this, we need accurate measurement of satisfaction.

Aood quality measures need to have high satisfaction loadings, good reliability, and low error

variances. !n an empirical study comparing commonly used satisfaction measures it was found

that two multi-item semantic differentialscales performed best across both hedonic and

utilitarian service consumption contexts. 0ccording to studies by irt 1 ?ee (##B), they

identified a six-item $-point semantic differentialscale (e.g., 5liver and 'wan %:=B), which is a

six-item $-point bipolar scale, that consistently performed best across both hedonic and

utilitarian services. !t loaded most highly on satisfaction, had the highest item reliability, and had

by far the lowest error variance across both studies. !n the study,the six items asked respondents+

evaluation of their most recent experience with 0*4 services and ice cream restaurant, along

seven points within these six items3 please me to displeased me, contented with to disgusted

with, very satisfied with to very dissatisfied with, did a good >ob for me to did a poor >ob for

me, wise choice to poor choice and happy with to unhappy with.

0 semantic differential, which is a four-item $-point bipolar scale, was the second best

performing measure, which was again consistent across both contexts. !n the study, respondents

were asked to evaluate their experience with both products, along seven points within these four

items3 satisfied to dissatisfied, favorable to unfavorable, pleasant to unpleasant and ! like

it very much to ! didn+t like it at all.

*he third best scale was single-item percentage measure, a one-item $-point bipolar scale .0gain,

the respondents were asked to evaluate their experience on both 0*4 services and ice cream

restaurants, along seven points within delighted to terrible.

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!t seems that dependent on a trade-off between length of the questionnaire and quality of

satisfaction measure, these scales seem to be good options for measuring customer satisfaction in

academic and applied studies research alike. 0ll other measures tested consistently performed

worse than the top three measures, and7or their performance varied significantly across the two

service contexts in their study. *hese results suggest that more careful pretesting would be

prudent should these measures be used.

inally, all measures captured both affective and cognitive aspects of satisfaction, independent of

their scale anchors. 0ffective measures capture a consumer+s attitude (liking7disliking) towards a

product, which can result from any product information or experience. 5n the other hand,

cognitive element is defined as an appraisal or conclusion on how the product+s performance

compared against expectations (or exceeded or fell short of expectations), was useful (or not

useful), fit the situation (or did not fit), exceeded the requirements of the situation (or did not

exceed)

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AWARDS FOR COMPAN

A!ar"s for #$%$

Rit& 'ot fo((o!in' a!ar"s

A!ar"s for #$$)

Rit& 'ot fo((o!in' a!ar"s

D.E. 0'8!0 ;0'0!C @F;5@*

4aruti 'uuki @anks 8ighest in 0utomotive Customer 'atisfaction in !ndia

for a %Bth Consecutive Gear.

SINGAPORE* +% Octo,er #$%# or a %Bth consecutive year, 4aruti 'uuki ranks highest in

customer satisfaction with authoried dealer service in !ndia, according to the D.E. ;ower 0sia

;acific #% !ndia Customer 'ervice !ndex (C'!) 'tudies released on B% 5ctober #%.

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*he study, now in its %Hth year, measures satisfaction among vehicle owners who visited their

authoried dealership service center for maintenance or repair work during the first % to I

months of ownership, which typically represents the warranty period. 5verall satisfaction is

determined by examining seven measures (listed in order of importance)3 problems experiencedJ

service qualityJ user-friendly serviceJ service advisorJ service initiationJ service deliveryJ and in-

service experience.

*he study finds that vehicle owners increasingly consider faster turnaround in service,

door-step service and alternate transportation arrangements post vehicle drop-off as essential to

satisfaction.

'atisfaction is significantly higher among vehicle owners whose dealership provides analternate form of transportation while their vehicle is being serviced than among those who do

not receive this service. Correspondingly, during the past three years, the gap in satisfaction

between these two groups of customers has increased by I% points. *he expectation for this

service continues to outpace the delivery of it from dealerships by nearly : percent.

Eoor-step service for vehicle owners also contributes to higher satisfaction scores.

5verall satisfaction is IB points higher among owners whose vehicle is picked up from and

dropped off at their home or work by the dealership than among those who take their vehicle to

the dealership service center themselves.

"2ehicle owners view the service process as an essential errand that needs to be

completed," said 4ohit 0rora, executive director D.E.;ower 0sia ;acific. "ith increasing stress

of the daily commute, time commitments and other complexities in their daily life, owners highly

appreciate the actions that dealers take to mitigate the effort required for service."

5verall customer satisfaction with the dealership service experience has increased by %#

points from #%% to =BI in #%, demonstrating that operational improvements continue to

remain a focus for the industry. 'atisfaction has improved in all five factors, with the largest

increase in the service quality factor.

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*he study also finds that during the past three years, there has been a significant

reduction in the cost of maintaining and repairing vehicles, which correlates to the improvement

in the overall quality of vehicles being produced. !n #%, vehicle owners have experienced

significantly fewer problems, compared with #%#. *his year, %# percent of owners have

experienced a problem with their petrol-fueled vehicle during the initial % to I months of

ownership, down from %$ percent in #%#. 'imilarly, the percentage of owners who have

experienced a problem with their diesel-powered vehicle has declined to %I percent in #% from

I percent in #%#.

"hile reduction in the number of problems experienced during ownership has

contributed to the reduction in the cost of vehicle maintenance and repairs for owners, the overall

cost of running vehicles has gone up," said 0rora. "uel price increases are the primary reason

for the rising costs, especially for petrol models, for which a %B percent reduction in the cost of

maintenance has been offset by a B% percent increase in the cost spent on fuel between #%# and

#%."

4aruti 'uuki ranks highest in customer satisfaction with dealer service for a %Bth

consecutive year, with a score of =$: points. 4aruti 'uuki performs particularly well across all

factors. 4ahindra is the most improved make in #%, significantly improving across all five

factors of service operations.

2ehicle owners who are highly satisfied with dealer service tend to have higher levels of

advocacy and loyalty to the dealership and the brand. 0mong owners who are highly satisfied

with their service experience at the dealership (service satisfaction scores averaging :B# and

above), :B percent indicate they "definitely would" revisit their service dealer for post-warranty

service. !n contrast, only B= percent of less-satisfied owners (service satisfaction scores

averaging $H= and below) say the same. 'imilarly, =6 percent of highly satisfied owners indicate

they "definitely would" purchase their next vehicle from the service dealer, compared with >ust

B% percent of those who are less satisfied.

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*he #% !ndia Customer 'ervice !ndex 'tudy is based on evaluations from $,6:I vehicle

owners. *he study was fielded from 4ay to 0ugust #% and includes owners who purchased

their vehicle between 4ay #%# and 0ugust #%%.*he Company takes great pride in sharing that

customers have rated 4aruti 'uuki first o in Customer 'atisfaction 'urvey conducted by

independent body, D.E.;ower 0sia ;acific. !t is %Bth time in a row.

*he award mirrors the company/s commitment towards "Customer O,session".

T-e com.an/ 0ouc-es for customer satisfaction1 For its sincere efforts it -as ,een

rate" 2,/ customers3 first in customer satisfaction amon' a(( car ma4ers in In"ia for nine

/ears in a ro! in annua( sur0e/ ,/ 5 D Po!er Asia Pacific1

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5D POWER ASIA PACIFIC CSI INDE6

4aruti 'uuki ranks highest in customer satisfaction with dealer service for a %Bth consecutive

year, with a score of =$: points. 4aruti 'uuki performs particularly well across all factors.

4ahindra is the most improved make in #%, significantly

improving across all five factors of service operations.

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AWARENESS OF CUSTOMERS

KE INITIATI7ES FOR SATISFING CUSTOMERS

Car .ic4u. 8 "e(i0er/ faci(it/ for !omen car o!ners

Kuote 9nquote3 "*he study finds that vehicle pickup and delivery before and after

service has a strong impact on customer satisfaction. !n particular, customers who say that their

vehicle was picked up from their doorstep before service and delivered to the same point after

service are notably more delighted with their after-sales service experience, compared with

customers who do not receive this service...."

Car Safet/ "e0ice* Immo,i(i&er

*he company used technology to meet customer needs and even delight them. ollowing

feedback that the company/s cars were more prone to theft owing to their resale value, the

company worked on an anti-theft immobilier or "!-CatsJ" system for all its new cars.

Settin' u. 9E:.ress Ser0ice ;a/s9 8 9# < Tec-nician ;a/s9

0s the name suggests the company set out to delight its customers by offering them faster

car service by introducing new concepts such as Fxpress 'ervice &ays 1 - *echnicians &ays.

*hese are done for customers who are hard pressed for time.

&oth the initiatives undertaken in this direction have helped improve customer interface and also

helped increase the productivity and capacity of existing workshops.

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Me'a Cam.s

*he company aggressively conducts /4ega Camps/ throughout the country round the year.

0ctivities undertaken during a mega camp include complimentary car wash, 0C 1 ;ollution

check up, oil and fuel top ups, wheel alignments etc.

0part from mega camps workshop camps like 07C checkup camps, ;9C and general check-up

camps, ?ocality camps , ;re monsoon camps etc are also regularly conducted as part of customer

connect initiatives.

Ser0ice at /our Door Ste. t-rou'- Maruti Mo,i(e Su..ort

0nother unique initiative is the door step service facility through 4aruti 4obile 'upport.

4aruti 4obile 'upport is a first of it/s kind initiative and is expected not only to help the

company reach out customers in metro cities but also as a mean to reach semi urban 7rural areas

where setting up of new workshop may not be viable.

Com.(ete Car Nee"s

*he company/s effort of providing all car-related needs -- from learning to drive a car at 4aruti

Eriving 'chools to car insurance, extended warranty and eventually exchanging the existing car

for a new one -- under one roof at dealerships also enhances customer satisfaction.

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DATA ANA=SIS AND INTERPRETATION

Ta,(e %1 S-o!in' Occu.ation of Customer

IHL of the customers are of opinion that 4aruti should improve in quality.

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?UES1 ) Ta,(e s-o!in' customer@s re.urc-ase intention1

Res.on"ent Remar4 No. of respondentsGes $I

No H

Inter.retation >

!t is observed that, $IL of the customers are ready to repurchase the 4aruti+s car, HL are not

ready to purchase the car.

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?UES1 %% Ta,(e s-o!in' customer@s recommen"ation intention1

Res.on"ent Remar4 No. of respondents

/e! 72

o 2

Inter.retation >

!t is observed that, $L of the customers are ready to recommend the car to the friends and

relative, =L are not ready to recommend the car to the friends and relatives.

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FINDINGS

!t is observed that

*he prospective segment is from the business and self employed class.

*he company should concentrate on the age group H-BI.

4aruti should continue to maintain the standard of the service.

!t is observed that, IL of the respondent are of opinion that vehicles are as per

expectation, and #L are saying its below expectation.

Company should improve its post sales service.

*he customer highest priority is for the mileage.

Customer are highly satisfied with the service which help in customer retention

!t is observed that, IHL of the customers are of opinion that 4aruti should improve in

quality, and %HL of the opinion that 4aruti should improve in price.

Customers are highly satisfied which help in customer retention.

Company has created goodwill among the customers which will help them to recommend

car to friends and relatives.

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SUGGESTIONS

0fter conducting the survey and knowing the market, ! realied that3

*he company should keep in mind the need of young generation.

Company should improve the promotion strategy of product.

Company should improve the promotion strategy of 0dd-on services.

!t will be beneficial for the company to make the warehouse near to the showroom and

there should be roof facility, adequate security facility in the warehouse.

*he Company should know its customers satisfaction level throughout doing periodic

surveys. ;eriodic surveys can treat customer satisfaction directly.

Company should improve7upgrades its employee+s product knowledge, market situation,

and its competitor+s knowledge by giving proper training to employee.

Company should upgrade or innovate its new product.

*he Company should not only concentrate on the customer satisfaction but also thecompany led to monitor their competitor+s performance in their areas of operations.

*he Company should make changes according to the other competitors 1 according to

the customer+s expectations.

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CONC=USION

!t has been observed that most customers are satisfied with pre sales services similarly

most of these customers are dissatisfied with the post sales service which is the matter of concern

for the company. 4aruti 'uuki needs to improve some parts of products specifically the

interiors. 8igh customer satisfaction level helps the company to retain its existing customer as

well as generate new customer through word to mouth publicity.

Customer satisfaction index is a good tool to make improvements in the products and

services of the company. 0nd therefore should utilie carefully 1 kept as confidential as

possible.

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=IMITATIONS

*hough the research was conducted properly, the probability of errors 1 biases

kept is minimumJ still some errors occurred because of certain limitation.

T-ese are as fo((o!s*ective-of-maruti-suuki

http377www.marutisuuki.com74aruti-'uuki-@anks-8ighest-in-0utomotive-Customer-

'atisfaction-in-!ndia-or-Ninth-Consecutive-Gear.aspx

http377indiatoday.intoday.in7story7maruti-suuki-witnesses-improved-demands-

report7%7I#I#.html

NEWSPAPER

Newspaper-business standards, *imes of !ndia, etc.

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APPENDI6

?UESTIONNAIRE

Gen"er * ( )4ale ( ) emale

A'e *

Occu.ation * ( );rivate Fmployee ( ) Aovt Fmployee ( ) &usinessman

( ) ;rofessional

Mont-(/ Income* ( ) &elow 6### ( ) &etween 6### to %####

( ) &etween %6### to 6### ( ) 0bove 6###

%. hich 4odel of 4aruti are you usingP

Car3-QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ

. rom how many years you are using this modelP

a) #- years b) -I years c) I-H years d) H-= years

B. ;reference for choosing particular carP

a) Comfort b) 4ileage c) eature d) ;erformance

e) ?ooks f) ;rice g) 5thers ;lease specify3-QQQ

I. 0re you satisfied with your carP

a) Ges b)No

!f No, give the reasons for the same

a)Comfort b) 4ileage c) eature

d) ;erformance e) ?ooks f) ;rice

6. Eo you prefer to get 4A0 fitted in your car or any local accessoriesP

a) 4A0 b) ?ocal

H. hat is your ;re-sales experience while purchasing the carP

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a) Fxcellent b) Aood c) 0verage d) &elow 0verage

$. hat is your ;ost-sales experience after purchasing the carP


=. 0re you satisfied with the features of 4arutiP(%Rpoor Raverage BRgood IRvery good 6RFxcellent)

a) ComfortQQ. 76 b) 4ileageQQ. 76 c) eature QQ. 76

d) 'afetyQQ. 76 e) ?ooksQQ. 76 f) ;riceQQ. 76

:. 8ow will you rate 4aruti on the basis of 2alue for 4oneyP

a) 0bove Fxpectation b)&elow Fxpectation c)0s per Fxpectation

%#. Eo you find easy availability of spare partsP

a) Ges b)No

%%. ould you like to re purchase the 4aruti+s carP

a) Ges b)No

%. ould you like to recommend the 4aruti car to your friends7relativesP

a) Ges b)No

%B. !n which sector do you think7feel 4aruti should improveP

a) ;rice b) Kuality c) 'ervice d) 5thers

%I. 0re you satisfied with the overall service of 4arutiP


customer satisfaction in maruti suzuki

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