Customer satisfaction in small car segment
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Transcript of Customer satisfaction in small car segment
CUSTOMERS SATISFACTION LEVEL IN COMPACT CAR SEGMENT WITH SPECIAL REFERENCE TO MARUTI
Project of Marketing Research
By:
Faizan Ahmad
INSTITUTE OF MANAGEMENT STUDIESLAL QUAN, GHAZIABAD – 201 009
SEPTEMBER 2008
TABLE OF CONTENTS
CHAPTER NO. CHAPTER PAGE NUMBER
1. LITERATURE REVIEW 6
2. OBJECTIVES 8
3. RESEARCH METHODOLOGY 9
4. RESEARCH DESIGN 10
5. SAMPLE DESIGN 11
6. DATA COLLECTION 12
7. DATA ANALYSIS 13
8. CONCLUSION & FINDINGS 20
9. ANNEXURE 21
2
CHAPTER 1
LITERATURE REVIEW
Kurt Matzler and Hans H. Hinterhuber in their article “How to make product development
projects more successful by integrating Kano's model of customer satisfaction into quality
function deployment” in science direct Technovation,Volume 18, Issue 1, January 1998, Pages
25-38 said that -Managers need a set of practical step-by-step tools and methods which ensure
a better understanding of customers' needs and requirements, as well as procedures and
processes to enhance communication by focusing on the voice of the customer within a product
development project.
The authors propose a methodology, based on Kano's model of customer satisfaction, to
explore customers' stated needs and unstated desires and to resolve them into different
categories which have different impacts on customer satisfaction.
Robert A. Peterson and William R. Wilson in their paper “Measuring customer satisfaction:
Fact and artifact” published in Journal of the Academy of Marketing Science October, 2007
said that- Self-reports of customer satisfaction invariably possess distributions that are
negatively skewed and exhibit a positivity bias. Examination of the customer satisfaction
literature and empirical investigations reveal that measurements of customer satisfaction
exhibit tendencies of confounding and methodological contamination and appear to reflect
numerous artifacts.
Thorsten Hennig-Thurau and Alexander Klee in their article “The impact of customer
satisfaction and relationship quality on customer retention: A critical reassessment and model
development” published in Department of Marketing II, Marketing Management, University of
Hanover, Königsworther Platz 1, 30167, Hanover, Germany said that
- Customer satisfaction with a company's products or services is often seen as the key to a
company's success and long-term competitiveness. In the context of relationship marketing,
customer satisfaction is often viewed as a central determinant of customer retention. However,
the few empirical investigations in this area indicate that a direct relationship between these
constructs is weak or even nonexistent. The overall purpose of this article is to develop a
3
conceptual foundation for investigating the customer retention process, with the use of the
concepts of customer satisfaction and relationship quality. The article involves a critical
examination of the satisfaction-retention relationship, and the development of a more
comprehensive view of the customer's quality perception.
4
CHAPTER 2
OBJECTIVES
The purpose of research is to discover answers to questions through the application of
scientific procedures. The main aim of research is to find out the hidden truth which has not
been discovered yet.
1. To check the satisfaction level in people about the different cars in the compact car
segment that they use and to develop substantial degree of awareness in them
accordingly.
2. To identify the factors the customers feel are important while selecting a particular car.
3. To identify which companies in the compact car segment are the leaders and who are
the followers.
5
CHAPTER3
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. (Kothari 1998)
We divided the research methedology into two stages which involve two sources for collecting
the data in order to achieve the objective of project. The first source involves collecting data
from secondary sources. Various secondary sources are used in order to determine the
Consumer attitude. Various secondary sources for collecting information are websites. The
second source for collecting information was through consumer survey throughout Delhi/NCR
region. In planning and designing a specific research project it is necessary to anticipate all the
steps that must be under taken if the project is to be successful in collecting valid and reliable
information. If it were broken down into very small parts or activities, the marketing research
process would consist of a great number of steps.
RESEARCH OBJECTIVES
The purpose of research is to discover answers to questions through the application of
scientific procedures. The main aim of research is to find out the hidden truth which has not
been discovered yet.
1. To check the satisfaction level in people about the different cars in the compact car
segment that they use and to develop substantial degree of awareness in them accordingly.
2. To identify the factors the customers feel are important while selecting a particular car.
3. To identify which companies in the compact car segment are the leaders and who are
the followers.
6
CHAPTER 4
RESEARCH DESIGN
A research design is the arrangement of the conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
(Kothari 1998)
Exploratory research or formulate research is to gain familiarity with a phenomenon or to
achieve insight into it. The objective of exploratory research is to gather preliminary
information that will help to define problems. Thus Exploratory Research was done to identify
the satisfaction level of the customers with respect to the car they are using currently or if they
want to shift to a new brand and factors important in selecting a particular brand of a car.
.
7
CHAPTER 5
SAMPLE DESIGN:
Sampling may be defined as the selection of some part of an aggregate or totality on the basis
of which a judgement or inference about the population is made.
The object of sampling is to maximum information about the parent population with minimum
efforts. We have gone for “Convenience random sampling”. So we approached people that
owe maruti.
Sample unit: - In this we have primarily focused on the customers of maruti because these
people are more dependent on compact car segment.
Sample size: - 100
Sampling Technique: - “Convenience Random Sampling” was opted in the research because
as the parent population is very large and it is not practically possible to segment a large
population and to conduct in-depth research.
Sampling Areas: - Dasna and Ghaziabad.
8
CHAPTER 6
DATA COLLECTION METHOD
Data can be broadly classified into two categories i.e. Primary data and Secondary data.
Primary data are those which are collected afresh and for first time. Secondary data, on the
other hand, are those which have already collected by someone else and which have already
been passed through statistical process. (Kothari 1998)
Collection of primary data: - We have obtained primary data through direct communication
through personal interview, having structured questionnaire with closed and open ended
options in advance to elicit necessary information from the respondents.
Collection of secondary data: - In planning and designing a specific research project it is
necessary to anticipate all the steps that must be under taken if the project is to be successful in
collecting valid and reliable information. If it were broken down into very small parts or
activities, the marketing research process would consist of a great number of steps. The various
sources of secondary data were
Various publications of central, state and local government.
White Papers of Research Experts
.
9
CHAPTETR 7
DATA ANALYSIS
FACTOR ANALYSIS
Communalities
InitialExtractio
nbrand name 1.000 .966dealers price 1.000 .973after sales service 1.000 .956avl of srv stations 1.000 .979avl of spare parts 1.000 .928maintenance cost 1.000 .849comfort while driving 1.000 .918back seat comfort 1.000 .964luggage space 1.000 .956leg space 1.000 .935design n dimensions 1.000 .922fuel options 1.000 .776safety features 1.000 .921ground clearance 1.000 .966sturdiness 1.000 .873engine sound 1.000 .962mileage 1.000 .942pick up 1.000 .947engine performance 1.000 .954warranty of spare parts
1.000 .826
fuel tank capaity 1.000 .889seating capacity 1.000 .888engine type 1.000 .966tyre type 1.000 .946power output 1.000 .956resale value 1.000 .947sales promotional scheme
1.000 .971
information availability
1.000 .938
financing schemes 1.000 .931availability of accessories
1.000 .935
quality of accessories 1.000 .876
10
Extraction Method: Principal Component Analysis.
Total Variance Explained
Component Initial Eigenvalues
Extraction Sums of Squared Loadings
Rotation Sums of Squared Loadings
Total% of
VarianceCumulativ
e % Total
% of Varian
ce
Cumulative
% Total
% of Varian
ceCumulati
ve %1 8.199 26.449 26.449 8.199 26.449 26.449 4.928 15.896 15.8962 4.734 15.272 41.720 4.734 15.272 41.720 4.343 14.011 29.9073 3.607 11.636 53.357 3.607 11.636 53.357 3.809 12.288 42.1954 2.992 9.651 63.008 2.992 9.651 63.008 3.241 10.454 52.6495 2.792 9.006 72.014 2.792 9.006 72.014 3.146 10.148 62.7976 2.235 7.210 79.224 2.235 7.210 79.224 2.836 9.149 71.9467 1.753 5.653 84.877 1.753 5.653 84.877 2.408 7.769 79.7148 1.408 4.542 89.419 1.408 4.542 89.419 2.077 6.701 86.4159 1.037 3.344 92.763 1.037 3.344 92.763 1.968 6.348 92.76310 .782 2.522 95.28411 .701 2.262 97.54712 .451 1.454 99.00013 .185 .597 99.59714 .125 .403 100.00015 7.98E-
0162.57E-015 100.000
16 5.88E-016
1.90E-015 100.000
17 5.72E-016
1.85E-015 100.000
18 3.20E-016
1.03E-015 100.000
19 3.06E-016
9.87E-016 100.000
20 9.82E-017
3.17E-016 100.000
21 4.95E-017
1.60E-016 100.000
22 -8.69E-
018
-2.80E-017
100.000
23 -1.20E-
-3.87E-016
100.000
11
01624 -
1.35E-016
-4.36E-016
100.000
25 -2.60E-
016
-8.38E-016
100.000
26 -2.94E-
016
-9.49E-016
100.000
27 -4.03E-
016
-1.30E-015
100.000
28 -4.96E-
016
-1.60E-015
100.000
29 -7.29E-
016
-2.35E-015
100.000
30 -7.68E-
016
-2.48E-015
100.000
31 -8.46E-
016
-2.73E-015
100.000
Extraction Method: Principal Component Analysis.
Component Matrix(a)
Component 1 2 3 4 5 6 7 8 9brand name .702 -.101 -.403 .320 .272 .047 -.252 -.011 .243dealers price .595 .094 .379 -.115 -.068 -.066 .149 -.628 .165after sales
service.754 .403 .125 -.342 -.288 -.051 .019 .072 -.033
avl of srv stations
-.273 .650 .186 .286 .175 .368 .183.4``0
6.007
avl of spare parts
.250 ` .607 .343 -.129 -.265 .098 .230 .346
maintenance cost
-.045 .672 .306 .194 -.375 -.224 -.067 -.212 .152
comfort while driving
.668 -.127 -.196 .547 -.336 .030 .055 .041 -.010
back seat .101 .501 .060 .066 .784 .111 .152 -.039 .209
12
comfortluggage space .809 -.338 .165 -.207 -.153 .160 .258 .011 .031leg space .567 .048 -.551 -.181 .287 -.187 .358 .156 .062design n
dimensions.062 .370 -.527 -.130 .524 -.415 -.052 -.191 -.032
fuel options .563 .205 .111 -.162 .487 .276 -.003 -.233 -.101safety features -.219 .263 .124 .712 .403 -.090 .249 .128 -.180ground
clearance.629 .074 .280 -.176 .101 -.507 .045 .421 .090
sturdiness .258 .779 -.231 .322 -.037 -.064 -.110 .033 -.153engine sound .603 .326 -.291 .095 .216 -.224 -.524 -.155 .054mileage .641 -.547 -.280 .064 .269 .167 .093 .104 -.173pick up .648 .028 -.330 .040 -.199 .355 -.373 .191 .273engine
performance.709 -.049 -.206 -.260 -.191 -.057 -.344 .376 -.201
warranty of spare parts
.677 -.146 -.206 -.397 .023 -.073 .343 -.142 -.060
fuel tank capaity .045 .310 .500 -.581 -.014 .296 -.214 -.006 .263seating capacity -.128 .423 .334 -.269 .541 .258 -.296 -.028 -.248engine type .739 .278 .440 -.061 .029 .349 .046 -.060 -.132tyre type .498 -.411 .250 .607 .118 .022 -.184 -.182 -.127power output .456 -.423 .340 .443 .079 -.449 -.005 -.209 .081resale value .586 -.284 .533 .255 .184 .263 -.136 .227 .037sales
promotional scheme
.552 .508 -.258 .191 -.409 .230 -.133 -.165 -.202
information availability
-.080 .713 -.268 .224 -.454 .127 .152 -.118 -.202
financing schemes
.586 .006 .525 -.096 -.037 -.159 .283 .039 -.441
availability of accessories
.131 -.141 -.324 .237 -.017 .692 .433 -.110 .240
quality of accessories
.435 .569 -.292 -.155 -.073 -.213 .406 .112 .163
Extraction Method: Principal Component Analysis.a 9 components extracted.
13
Rotated Component Matrix(a)
Component Attributes 1 2 3 4 5 6 7 8 9brand name .032 .847 -.061 .267 .143 .325 .004 .133 .169dealers price .473 .040 .114 .084 .120 -.071 .182 .819after sales service
.637 .310 .367 .336 -.029 -.354 .176 -.164 .149
avl of srv stations
-.057 -.196 .382 -.109 .482 -.035 .384 .252 -.578
avl of spare parts
.244 -.003 .135 -.051 .035 .089 .908 -.099 .051
maintenance cost
-.073 -.142 .650 -.134 .020 -.127 .518 -.190 .249
comfort while driving
.325 .546 .260 .084 -.363 .472 .134 .242 .091
back seat comfort
-.080 .004 .008 .302 .890 .065 .229 .129 .003
luggage space .771 .300 -.221 .226 -.211 -.060 .016 .248 .248leg space .156 .297 -.050 .880 .067 .118 -.135 .087 -.028design n dimensions
-.368 .100 .143 .612 .427 .128 -.229 -.336 .136
fuel options .444 .254 .008 .158 .633 -.036 -.140 .088 .244safety features -.137 -.256 .178 -.060 .397 .689 .294 .065 -.281ground clearance
.502 .226 -.189 .450 -.009 -.002 .473 -.447 -.031
sturdiness -.022 .263 .782 .191 .276 .149 .151 -.140 -.120engine sound -.017 .726 .267 .231 .294 .102 -.011 -.369 .276mileage .427 .480 -.390 .259 -.038 .368 -.353 .220 -.015pick up .157 .896 .134 .069 -.104 -.193 .014 .217 -.039engine performance
.477 .664 .041 .232 -.219 -.156 -.153 -.321 -.178
warranty of spare parts
.507 .166 -.095 .600 -.092 -.070 -.243 .091 .303
fuel tank capaity .233 -.019 -.042 -.199 .319 -.793 .216 -.054 .110seating capacity .102 -.104 .035 -.238 .803 -.271 -.116 -.248 -.129engine type .803 .258 .218 -.048 .347 -.117 .163 .127 .169tyre type .349 .397 -.167 -.343 .011 .656 .084 .046 .284power output .271 .171 -.301 -.055 -.151 .604 .333 -.175 .481resale value .620 .407 -.341 -.304 .178 .203 .319 .113 -.012sales promotional scheme
.285 .462 .803 .049 -.041 -.006 -.089 .100 .104
information availability
-.094 -.106 .937 .058 -.062 -.030 -.004 .142 -.108
financing .895 -.147 .035 .094 .028 .158 .115 -.219 .110
14
schemesavailability of accessories
.011 .146 .036 .077 .005 .080 -.139 .938 -.015
quality of accessories
.147 .081 .436 .762 .043 -.135 .235 .049 .010
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.a Rotation converged in 65 iterations.
On the basis of rotated component matrix the factors and the variables under them are identified which are as follows:
1 2 3 4 5 6 7 8 9Financing
Engine performance
Promotions
Design Sitting Capacity
Brand Image
Spare Parts
Accessories Servicing
Resale value
Comfort while driving
Sturdiness
Quality of accessories
Seating capacity
Brand name
Avl of spare parts
Availability of accessories
Availability of service stations
Luggage space
Engine sound
Sales promotional scheme
Leg space
Back seat comfort
Fuel tank capacity
Dealers price
Financing schemes
Mileage Information availability
Design n dimensions
Fuel options
Tyre type
Warranty of spare parts
Pick up Maintenance cost
Power output
Engine type
Engine performance
Safety features
The factors have been named on the basis of the variables underlying them.
15
Regression
ANOVA(d)
Model
Sum of Squares df
Mean Square F Sig.
1 Regression
11.572 9 1.286 28.446 .000(a)
Residual 4.068 90 .045Total 15.640 99
2 Regression
11.546 8 1.443 32.084 .000(b)
Residual 4.094 91 .045Total 15.640 99
3 Regression
11.516 7 1.645 36.697 .000(c)
Residual 4.124 92 .045Total 15.640 99
a Predictors: (Constant), REGR factor score 9 for analysis 1, REGR factor score 8 for analysis 1, REGR factor score 7 for analysis 1, REGR factor score 6 for analysis 1, REGR factor score 5 for analysis 1, REGR factor score 4 for analysis 1, REGR factor score 3 for analysis 1, REGR factor score 2 for analysis 1, REGR factor score 1 for analysis 1b Predictors: (Constant), REGR factor score 9 for analysis 1, REGR factor score 8 for analysis 1, REGR factor score 7 for analysis 1, REGR factor score 5 for analysis 1, REGR factor score 4 for analysis 1, REGR factor score 3 for analysis 1, REGR factor score 2 for analysis 1, REGR factor score 1 for analysis 1c Predictors: (Constant), REGR factor score 9 for analysis 1, REGR factor score 8 for analysis 1, REGR factor score 7 for analysis 1, REGR factor score 5 for analysis 1, REGR factor score 4 for analysis 1, REGR factor score 3 for analysis 1, REGR factor score 2 for analysis 1d Dependent Variable: satisfaction with performance of the car
Coefficients(a)
Model
Unstandardized Coefficients
Standardized Coefficients t Sig.
Collinearity Statistics
BStd.
Error BetaToleranc
e VIF BStd.
Error1 (Constant) 2.940 .021 138.285 .000
REGR factor score 1 for analysis 1
.018 .021 .044 .823 .413 1.000 1.000
REGR factor score 2 for
.165 .021 .416 7.734 .000 1.000 1.000
16
analysis 1REGR factor score 3 for analysis 1
.172 .021 .434 8.069 .000 1.000 1.000
REGR factor score 4 for analysis 1
.113 .021 .284 5.278 .000 1.000 1.000
REGR factor score 5 for analysis 1
.038 .021 .095 1.762 .081 1.000 1.000
REGR factor score 6 for analysis 1
.016 .021 .040 .753 .453 1.000 1.000
REGR factor score 7 for analysis 1
.042 .021 .105 1.961 .053 1.000 1.000
REGR factor score 8 for analysis 1
.203 .021 .511 9.498 .000 1.000 1.000
REGR factor score 9 for analysis 1
-.047 .021 -.118 -2.198 .030 1.000 1.000
2 (Constant) 2.940 .021 138.616 .000REGR factor score 1 for analysis 1
.018 .021 .044 .825 .412 1.000 1.000
REGR factor score 2 for analysis 1
.165 .021 .416 7.752 .000 1.000 1.000
REGR factor score 3 for analysis 1
.172 .021 .434 8.088 .000 1.000 1.000
REGR factor score 4 for analysis 1
.113 .021 .284 5.291 .000 1.000 1.000
REGR factor score 5 for analysis 1
.038 .021 .095 1.767 .081 1.000 1.000
REGR factor score 7 for analysis 1
.042 .021 .105 1.966 .052 1.000 1.000
REGR factor score 8 for analysis 1
.203 .021 .511 9.521 .000 1.000 1.000
REGR factor score 9 for
-.047 .021 -.118 -2.204 .030 1.000 1.000
17
analysis 13 (Constant) 2.940 .021 138.857 .000
REGR factor score 2 for analysis 1
.165 .021 .416 7.766 .000 1.000 1.000
REGR factor score 3 for analysis 1
.172 .021 .434 8.102 .000 1.000 1.000
REGR factor score 4 for analysis 1
.113 .021 .284 5.300 .000 1.000 1.000
REGR factor score 5 for analysis 1
.038 .021 .095 1.770 .080 1.000 1.000
REGR factor score 7 for analysis 1
.042 .021 .105 1.969 .052 1.000 1.000
REGR factor score 8 for analysis 1
.203 .021 .511 9.537 .000 1.000 1.000
REGR factor score 9 for analysis 1
-.047 .021 -.118 -2.208 .030 1.000 1.000
a Dependent Variable: satisfaction with performance of the car
18
CHAPTER 8CONCLUSION & FINDINGS
During the entire research process, we can conclude that:-
Out of the 100 individuals interviewed, maximum of the customers are satisfied with the
services provided by the maruti and hence this is the most important factor for purchasing
this car in the compact car segment.
Our study showed that the usually ineffective factors are sitting Capacity and the
availability of the spare parts and they are that not important in the customer satisfaction
Engine performance, design, servicing, accessories and promotions are the most
important factors which we analyzed by applying the regression i.e. 2,3,4,8 & 9 as shown
in the regression table.
We found out Mostly people take Care of the services as the most important factor for
their requirement.
19
CHAPTER 9ANNEXURE 1
QUESTIONNAIRE Age:
Occupation:
Gender:
Income: <3LPA, 3-5LPA, 5-7 LPA, >7LPA
Please rate the following attributes of your car on the basis of the satisfaction level derived
from them on a five point scale.
(Where 5 = very satisfied and 1 = very dissatisfied.
Serial no. Attributes 5 4 3 2 11. Brand name 2. Maximum Retail Price3. After Sales Service4. Availability of service stations5. Availability of spare parts 6. Maintenance costs7. Comfort while driving8. Comfort while sitting at the back seat9. Luggage space10. Leg space11. Design and Dimensions 12. Fuel options13. Safety Features14. Ground clearance15. Sturdiness16. Engine Sound17. Mileage18. Pick-up19. Engine performance20. Warranty of spare parts21. Fuel tank capacity22. Seating capacity23. Engine type24. Tyre type 25. Power output26. Resale value27. Sales Promotional schemes28. Information availability29. Financing Schemes
20
30. Availability of accessories 31. Quality of accessories 32. Rate your satisfaction level with the
performance of your car.
21