synopsis hero honda car & satisfaction.docx

7/28/2019 SYNOPSIS HERO HONDA CAR & SATISFACTION.docx

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A

SYNOPSIS REPORT

ON

Analysis of New Honda City Customer

Profile & Satisfaction Level

Submitted in Partial Fulfillment of the Requirement for

The Degree of BACHELOR OF BUSINESS ADMINISTRATION


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AN INDUSTRY OVERVIEW:

The four wheeler industry in India:

Background

Source: FADA (Federation Of Automobile Dealers Association) & ICRA(Investment Information And Credit

Rating Agency Of India Limited) Sectoral Review

The four wheeler industry in India has not quite matched up to the performance of its

counterparts in other parts of the world. The primary reason for this has been the all-

pervasive regulatory atmosphere prevailing till the opening up of the industry in the mid-

1990s. The various layers of legislative Acts sheltered the industry from external

competition for a long time. Moreover, the industry was considered low-priority as cars

were thought of as "unaffordable luxury".

Until the early 1990s, the automotive sector in India was highly protected. This was in the

form of steep import tariffs and measures that restricted the participation of foreign

companies. Hindustan Motors (HM) and Premier Automobile (PAL) that were set up in

1940's dominated the vehicle market and industry. In the 1950s, the arrival of Tata

Motors, Bajaj Auto, and Mahindra & Mahindra led to steadily increasing vehicle

production in India, while the 1960s witnessed the establishment of the two- and three-

wheeler industry in India. However, the automotive industry witnessed tremendous

growth after the entry of Maruti Udyog in the 1980s. In 1983, the government permitted

Suzuki - for some time, the only FDI player - to enter the market in a joint venture with

Maruti - a state operated enterprise at the time. Ten years later, as part of a broader move

to liberalise its economy, India de-licensed passenger car manufacturing and opened it up

further to foreign participation. That brought a wave of FDI to India's vehicle industry.

Import barriers have been progressively relaxed. Today, almost all of the major global

players are present in India. The automotive industry is today a key sector of the Indian

economy and a major foreign exchange earner for the country.


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COMPANY PROFILE:

HONDA WORLDWIDE:

The history of the Honda Motor Company began with the vision of one man - Soichiro Honda.

His dream was personal mobility for everyone.

Soichiro Honda founded the Honda Motor Company in 1948. In the same year, he designed and

engineered the first product of this company - a 50 cc motorised bike on a bicycle frame - in his

small shed at Hamamatsu.

Soichiro's vision was international in character. His desire was to lead the world in technology,

and make a significant contribution to the creation of a better society. As a result, most of the

products that Honda developed started out by making a difference. Whether it was the CVCC

engine in the sixties or the solar powered car of the nineties, they all sought to challenge andovercome conventional wisdom.

PRINCIPLES OF HONDA:

Honda Motor Co., Ltd. operates under the basic principles of "Respect for the Individual" and

"The Three Joys"commonly expressed as The Joy of Buying, The Joy of Selling and The Joy

of Creating. "Respect for the Individual" reflects our desire to respect the unique character and

ability of each individual person, trusting each other as equal partners in order to do our best in

every situation.

Honda in India:

Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture

between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company,

with a commitment to providing Hondas latest passenger car models and technologies, to the

Indian customers. The Honda City, its first offering introduced in 1997, revolutionized the Indian

passenger car market and has ever since been recognized as an engineering marvel in the Indian

automobile industry. The success of City as well as all its other models has led HSCI to become

the leading premium car manufacturer in India


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The all new Honda City:

The third generation of the concept design arrow-shot or arrows, make All New Honda City

looks very different from the generation predecessor. Overall view All New Honda City more

impressive. With exterior design changes so that the overall look sporty luxury at a time.

All New Honda City is a perfect evolution of a mini-class sedan. The latest generation of Honda

City will continue success in the automotive market. Honda City has this revolutionary view, and

the more luxurious for a mini-class sedan.

Design front bumper and spoiler made refers to the cars racing to the level of Aerodynamics can

be maximum. In addition, also made a whole big enough air on the spoiler to reduce barriers

when its winds, also as Feed of fresh air to the engine room. The larger size of the headlight to

make Honda call it The Eagle Eye.

Behind, All New City is designed according to tail arrows. An effect of arrows is established

by design decks high and the trunk cut off, which also contribute to the smooth flow of air to the

rear body. In addition, the form of bumper diffuser also added to create the effect HANDICAP

style press and the road surface in order to maintain stability when the car was on high speed.

The shape of the rear lights also changed, now mica lamp made in two colors, red and white

three-dimensional. Interior also participate improvement, Honda wants to apply the concept of

cozy Lounge in the car cabin. This is possible with the dimensions of space that is longer and

more widely each 5mm from the previous generation (4.395mm and 16.95mm) and less than

15mm (1.470mm).

There are also features reclining seat, which allows rear seat passengers could be laid down

sitting position to get more comfortable. This technology may be applied first in a sedan, usually

because the rear seat passengers with what is required baggage.

Importance of the all new Honda City for the Company:

According to the management of HSCI, Honda City has been the most important car in theHonda line up. HSCI claims to sell around 60,000 cars every year. Out of these 2/3

rdof the cars

sold are City i.e. Honda sells 40,000 City every year.

The City has been the star performer for HSCI since the time it was launched. However now it is

taking the position of a cash cow for the company. i.e. it is generating the maximum sales for the

company despite its small & stagnant market share.


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CUSTOMER SATISFACTION:

The word "satisfaction" comes from the Latin words satis (enough) and facere (to do or

make). These words suggest the true meaning of satisfaction, which is fulfillment.

Managerially, fulfillment usually translates to solving problem& satisfying the customer is

not enough. To produce high level of customer loyalty, businesses need to move beyond

more satisfaction, to customer delight.

Definition of Customer satisfaction:

Rather than a single definition, it would be appropriate to have a look at various definitions given

by some of the leading management gurus of the world. As it would help us to understand the

concept of Customer satisfaction in a better manner.

DEFINITION 1:

A famous economist, Karl E. Case defines Customer satisfaction as:

Equivalent to making sure that product and service performance meets customer expectations.

DEFINITION 2:

According to K. Keller :

Customer satisfaction is the perception of the customer that the outcome of a business

transaction is equal to or greater than his/her expectation.

DEFINITION 3:

According to Sir Peter Parker:

Customer satisfaction occurs when the acquisition of products and or services provides a

minimum negative departure from expectations when compared with other acquisitions.

DEFINITION 4:

As Leon G. Schiffman says:

Customer satisfaction is an individuals perception of the performance of the product or

service in relation to his or her expectations.


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Importance of customer satisfaction:

Why Customer Satisfaction:

A customer is satisfied only when he is getting quality product and quality service which he

perceives. If a company is able to provide both, this will lead to customer satisfaction. A

satisfied customer will develop loyalty towards the company and will buy product of same

company again and again. At the same time he will recommend company's product to others.

This will help company in getting new customers. As a result company's sale will increase and

profits will rise.

Dissatisfied customer on an average will tell 12 others not to buy a product of the company.

With internet and other information technology tools this number could go up to 10,000.

This will affect the image of the company and will result in loss of sale and profit.

The cost of acquiring new customer is 5 times more than keeping the old one. The old customer

will remain with a company only if they are satisfied with the services provided by the company.

If a customer has a major complaint, 91 % of such customers will not buy from the company

again. If the problem is resolved quickly, 82% of them will return. So a company should see that

it is able to meet expectations of each and every customer and should not delay in solving

customer's complaint.

Scope Of The Project:i. A detailed study of the four wheeler industry in India,ii. A brief study about functioning of Honda in India(i.e.HSCI),iii. Understanding the customer profile for the new Honda City,iv. Understanding and analyzing the level of satisfaction or dissatisfaction among the

customers of the new Honda city & the reasons for the same.

3.3 Objectives Of The Project:

i. To understand the detailed profile of the customers of the All New Honda City


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ii. To evaluate the level of satisfaction or dissatisfaction among the customers of thenew Honda city & the reasons for the same.

In order to achieve the above stated objectives the researcher found it necessary to gather

information pertaining to the following:

i. I ndian four -wheeler Industry,ii. Honda andiii. All new Honda City I -VTEC.

RESEARCH METHODOLOGY:

There were several methodologies of research that the researcher could have utilized to collect

information regarding customer satisfaction. Some of the more commonly used strategies are: i)

written survey, ii) telephone surveys, iii)focus groups, iv) in-depth interviews etc. However

factors such as information need, resources, accessibility to customers, sample to be used, time

etc. had to be considered prior to selection of a methodology.

4.1 Research Method:

For this particular study, the method of acquiring information from the customer needed to be

both easy to use and understand. Therefore the researcher decided to use the wri tten sur vey

method. Under this method, the information was collected from the customers using a research

instrument called a Questionnair e(whi ch was prepared by the researcher himself). This

questionnaire was a structured questionnaire, which had definite, concrete and predetermined

questions. These questions were presented with exactly the same wording and in the same order

to all the respondents. The questionnaire consisted of both closed ended& open ended

questions.


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Data Source:

The research makes use of both Primary & Secondary Data.

a. Primary Data: The customer survey was based on the primary data which was collectedby the researcher through one to one interaction with the customers, using thequestionnaire.

b. Secondary Data: use of secondary data was also made in the research. The purpose wasto gather information as to who is a customer, what is customer satisfaction, information

pertaining to four-wheelers market, company profile & research papers on customer

satisfaction. This secondary data was collected from various websites, Magazines &

broachers, management books and articles.

4.3 Target population & Sampling plan:

The target population consisted of all the existing customers of the all new Honda City I -

VTECand the research area was Delhi & NCR. Out of the entire target population the researcher

decided to draw asample of 200 customers,for the purpose of this report. These samples were

chosen on the basisofsimple random sampling.

4.4 Target Areas:

In order to conduct the survey and meet the targeted audience the researcher visited various

places. These places included: i) Company Dealerships & Service Centr es (Ace Honda & Prime

Honda),ii) Petrol pumps (Kargil F il l up station Vasundhr a encl. & I ndian Oil M ayur vihar

PH-I),iii)Shopping mall s, (which included the Great I ndian M all & Centre Stage Mall).

4.5 Data processing:

The data collected from the respondents, through the questionnaire, was recorded in an excel

sheetwhich was then converted into SPSSdatabase for analysis procedure. This data has been


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displayed in the report using graphical presentati ons(pie-charts, bar diagrams, histograms etc.)

and tabulations.

Questionnaire

Q1. Name____________

Q2. Gender

i. Maleii. Female

Q3. Age:

Q4. Family status:

i. Married (with kids)ii. Married (without kids)

iii. UnmarriedQ5.Educational qualification:

i. Undergraduateii. Graduate

iii. Post graduateiv.

None of the above

Q6. Occupation

i. Businessii. Service

iii. Self employedQ7. Mode of payment:

i. Cashii. Credit

iii. BothQ8.Re payment period

i. 612 monthsii. 1318 months

iii. 1924 monthsiv. 2530 monthsv. 3136 months


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vi. More than 36 months

Q9. What does your car mean to you? (Multiple choice)

i. Companionii. 1St love

iii. 2nd homeiv. Best friendv. Most prized Possession

vi. Someone you can rely onvii. Basic need

viii. Other

Q10. What prompted you to buy a car?

i. Tired of previous carii. Previous car had trouble

iii. Better off now economicallyiv. Family structure changedv. Received as a gift

vi. Became necessary for workvii. I/ family member got a drivers license

viii. Company gave me a carix. Became necessary for commuting


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x. Wanted my own carxi. Disappointed with the previous car dealer

xii. Purchase conditions improvedxiii. Maintenance cost of previous car was highxiv. Had given the previous car to my family memberxv. OtherQ11. Key factors before buying a car

i. Brand nameii. Price of the car

iii. Exterior stylingiv. Interiorsv. Driving comfort

vi. Riding comfortvii. Spaciousness of the cabin

viii. Luggage capacityix. Performancex. Ease of handling

xi. Safetyxii. Fuel efficiency

xiii. After sales servicesxiv. Cost of spare partsxv. OtherQ12. Which were the other cars that you considered before buying the all new Honda City?

What were the reasons for considering them & rejecting them?


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S. No. Name Price Reason for

consideration

Reason for

rejection

Q13. Where did you get the information about the new Honda city?

i. Newspaperii. Television

iii. Internetiv. Banners/ hoardingsv. Friends/ family

vi. Road showsQ14. Key reasons for buying the new Honda City

i. Brand nameii. Affordable price

iii. Exterior stylingiv. Variety of colours availablev. Interior spaciousness

vi. Driving riding comfortvii. Safety features

viii. Fuel efficiencyix. Power


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x. Technology usedxi. I VTEC engine

xii. Dealers networkxiii. Good salesmanshipxiv. After sales servicesxv. Positive feedback from family/friends

xvi. OtherQ15. Which variant?

i. 1.5 (MT)ii. 1.5S (MT)

iii. 1.5S (AT)

Q16. Why did you choose this question?

i. Economic constraintii. Better social image

iii. Convenienceiv. Suited my budgetv. Other

Q17. Did you decide your EMI before buying your car?

i. Yesii. No

Q18. Who drives your Honda city?

i. Myself


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ii. Chaufferiii. Family & friendsiv. All of the above

Q19. During weekdays your car is used for

i. Business purposeii. By family

iii. Travel and workiv. Other

Q20. During weekends your car is used for

i. Social visitsii. Shopping

iii. Long drivesiv. Other

Q21. How often do you use your audio system?

i. Very oftenii. Often

iii. Sometimesiv. Rarelyv. Very rarely


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Q22. How satisfied are you with the audio system?

i. Highly satisfiedii. Satisfied

iii. Neither satisfied nor dissatisfiediv. Dissatisfiedv. Dissatisfied

Q23. Rank the following features on scale of 15

i. Exterior stylingii. Interior styling

iii. Spaciousnessiv. Riding comfortv. Safety

vi. Imagevii. Handling

viii. Fuel efficiency

Q24. Are there any features that you think should be added to the all new Honda City? If yes,

then at what cost?

S. No. Additional Features Price Charged

1 Alloy wheels

2 Fog lamps


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3 Side protectors

4 Bumper protectors

5 Leather seats

6 Side airbags

7 Rear centre arm rest

8 CD/Cassette player

9 Navigation

10 Blue tooth

11 Rear parking sensors

12 Any others: -----------------------------------------

---------------------------------------------------------

Q25. What do you think about the exterior design of the new Honda city?

i. Arrow short formii. Stylish

iii. Classyiv. Trendyv. Advanced

vi. Scientificvii. Other

Q26. Rate the following on a scale of 1- 5

i. Front stylingii. Side styling


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iii. Rear styling

Q27. When seated on the drivers seat rank the following on a scale of 1 5

i. Interior colour schemeii. Visibility of instrument panel

iii. Dashboard designiv. Seating posturev. Leg room

vi. Head roomvii. Access to audio control

viii. Audio systemix. Air conditioningx. Road visibility

Q28. When seated on the rear seat rank the following on a scale of 15

i. Rear seat comfortii. Shoulder room comfort

iii. Leg roomiv. Cabin spacev. Air conditioning

vi. Audio systemQ29. How often do you use your luggage space?

i. Very often


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ii. Ofteniii. Sometimesiv. Rarelyv. Very rarely

Q30. Rate the luggage space on a scale of 15

i. Spaciousness of the luggage cabinii. Ease of loading and unloading

Q31. What has been your overall impression about the performance of the new Honda city?

i. Powerfulii. Adequately powerful

iii. Under powerQ32. Rate the following on a scale of 1 -5

i. Engine performanceii. Transmission

iii. Mileageiv. Suspensionv. Brake

vi. Noise/ vibration

Q33. In your opinion how important is the safety aspect of the car

i. Very importantii. Important

iii. Not important


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Q34. Are you aware about the safety features of the new Honda city?

i. Yesii. No

Q35. If yes, could you name any 3 safety features of the car?

i.____________________ii.____________________

iii.____________________Q36. All new Honda city is value for money?

i. Strongly agreeii. Agree

iii. Neither agree nor disagreeiv. Disagreev. Strongly disagree

Q37. Are you aware about the new accessory package of the new Honda city?

i. Yesii. No

Q38. If yes then did you buy the accessory package?

i. Yesii. No

Q39. If yes then then which one did you buy?

i. Eleganceii. Illumination


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Q40. How satisfied are you with the accessory package bought by you?

i. Highly satisfiedii. Satisfied

iii. Neither satisfied nor dissatisfiediv. Dissatisfiedv. Highly dissatisfied

Q41. Do you think the accessory package is value for money?



Q42. How has your overall experience with the new Honda city been?




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Q43. The 3 major reasons for your satisfaction with your car are:

i. __________________________________ii. __________________________________iii. __________________________________

Q44. Is there any dissatisfaction point with your Honda city?

i. Yesii. No

Q45. If yes, could you please tell us the main reason for your dissatisfaction:

_________________________________________________________

_________________________________________________________

Q46. Would you like to continue your relationship with Honda in future?

i. Yesii. No

iii. Cant sayQ47 whats your monthly income?

i. 50,00075,000ii. 75,0011, 00,000

iii. 1, 00,0011, 25,000iv. 1, 25, 0011, 50,000v. 1, 50,0011, 75,000

vi. More than 1, 75,000


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vii. Other

Annexure II

References

Websitesiv. www.hondacarindia.comv. www.academon.com/lib.html

vi. www.hclibrary.org/vii. www.fadaweb.com

viii. www.icra.in/ix. www.google.com

Journals & Magazinesi. Overdrive Magazines, March 2009 Editionii. Autocar India, March 2009 Editioniii. CRISIL journalsiv. Broachers by SIMA

Books
http://www.hondacarindia.com/http://www.hondacarindia.com/http://www.academon.com/lib.htmlhttp://www.academon.com/lib.htmlhttp://www.hclibrary.org/http://www.hclibrary.org/http://www.fadaweb.com/http://www.fadaweb.com/http://www.icra.in/http://www.icra.in/http://www.google.com/http://www.google.com/http://www.google.com/http://www.icra.in/http://www.fadaweb.com/http://www.hclibrary.org/http://www.academon.com/lib.htmlhttp://www.hondacarindia.com/


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i. Peter Druker: A critical commentary on his philosophy of management,byC. Northcotr Parkison, Pg.287

ii. Realities of management by John Marsh, glossary, Pg-389iii.

Consumer Behaviour by LeonG. Schiffman,9

th

Edition, Glossary, G-3

iv. Marketing Management by Philip Kotler, 11th Edition, Chapter3, Pg.70v. Customer satisfaction by P. Parker, Chapter1, Pg-5

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