Customer Perception of Hyundai Cars

PROJECT REPORT
ON
CUSTOMER PERCEPTION
IN
HYUNDAI
BY
GAURAV KUMAR
ROLL NO.: 1305020036
SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE
MASTERS DEGREE IN BUSINESS

ADMINISTRATION
(2015-2016)
SIKKIM MANIPAL UNIVERSITY-DE
1
DECLARATION
I, the undersigned, hereby declare that the project report entitled
CUSTOMER PERCEPTION carried out at HYUNDAI. Is my original
work written and submitted by me in partial fulfillment of Master`s Degree
in Business Administration of SIKKIM MANIPAL UNIVERSITY-DE. I
also declare that this project has not been submitted earlier in any other
university or institution.
Date: Candidate Name
GAURAV KUMAR
2
ACKNOWLEDGEMENT
I take this opportunity to extend my profound thanks and deep sense
of gratitude to the authorities of HYUNDAI. For giving me the opportunity
to undertake this project work in their esteemed organization. I profusely
thank Mr. VIKAS CHAUHAN (Asst.Manager).
My sincere thanks to my project guide Mr. JAHANGEER ALAM. For
the kind encouragement and constant support extended in completion of this
project work. From the bottom of my heart
I am also thankful to all those who have incidentally helped me,
through their valued guidance, co-operation and unstinted support during the
course of my project.
GAURAV KUMAR
3
ABSTRACT
Most prior research on bundling from a consumer perspective has focused on how
bundles are processed, particularly from a prospect theory or mental accounting
perspective. In contrast, relatively little research has examined the factors that might
drive consumer preference for bundles versus individual items. This article addresses one
such factor: the potential to reduce search and assembly costs. Through exploratory
interviews and two laboratory experiments, the authors show that preference for a bundle
is greater when bundle choice will reduce search effort than when it will not, particularly
among consumers who are less motivated to process information.
The study regarding consumer preference for cars was made in respect of selected
major car marketers. The area of consumer preference is one of the most interesting
areas, because it is concerned with understanding consumers with regard to why
individuals act in certain consumption related ways. Initially most concepts of consumer
preference were related with economic theories.
The mass communication has also changed the whole theory concept of marketing.
The marketers, who were concentrating only on urban consumers, have started to shift
their target towards rural markets too. Increasing awareness of new products has made
consumer choosier, there by consumers preference values have been changing very fast.
These characteristics are demographic, for example, sex or genders, age and socio-
economic class. It takes image characteristics of a brand and venders them in human as
seen by the consumer. Brand image is broader than brand personality because by the time
we enter the personality real, we are dealing with feelings and emotions that the
consumer takes away from communications. A well-established brand has a clear brand
personality. It may remain unstated. But it can play a strategic role in brand wars. Closely
position brands may also acquire distinct personalities as a result of exposure to the
quality of the product, attraction in packing, service at the time of sale and after sale,
word-of-mouth and advertising strategies adapted by the company. Brand is thought as
being friendly, boring, funny, rude, caring stylish etc. Consumers need to think of brands
in human terms, memo ability of a brand personality comes through consistency.
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INDEX
S.No: CONTENTS PAGE NO.
CHAPTER-1 6-13
INTRODUCTION
Scope of the Study

Objectives of the Study
Methodology of the Study
Limitations of the Study
CHAPTER-2 14-30
REVIEW OF LITERATURE
CHAPTER-3 31-52
INDUSTRY PROFILES
COMPANY PROFILES
CHAPTER-4 53-63
DATA ANALYSIS AND INTERPRETATION
CHAPTER-5 64-70
FINDINGS
SUGGESTIONS
CONCLUSION
QUESTIONNAIRE
BIBILIOGRAPHY
5
CHAPTER-1
INTRODUCTION
6
Customer Perception
Consumers can evaluate a product along several levels. Its basic characteristics are
inherent to the generic version of the product and are defined as the fundamental
advantages it can offer to a customer. Generic products can be made distinct by adding
value through extra features, such as quality or performance enhancements. The final
level of consumer perception involves augmented properties, which offer less tangible
benefits, such as customer assistance, maintenance services, training, or appealing
payment options. In terms of competition with other products and companies, consumers
greatly value these added benefits when making a purchasing decision, making it
important for manufacturers to understand the notion of a total package when
marketing to their customers. For example, when manufacturing automotive parts, a high-
performing product will provide the customer base with basic benefits, while adding
spare parts, technical assistance, and skill training will offer enhanced properties to create
a total package with increased appeal to consumers.
Changing Product Strategies
In industrial product development, a marketing strategy that is flexible and adaptive to changing market
circumstances stands a greater chance of being effective in the long-term. Products and consumer
perceptions are variable, so changes in strategy may be required to better address customer needs,
technological developments, new laws and regulations, and the overall product life-cycle. By monitoring
external conditions and shifting product development accordingly, a company can better target its
consumers and learn to react to their needs. The major factors that can necessitate a change in product
strategy include:
Customer Preferences: Fluctuations in the cost of materials, new application

requirements, and changing brand awareness are just a few of things that can cause
consumer needs to change. Keeping close track of customer response to a product and
taking their demands into consideration are important for maintaining market share.
7
Technological Advances: A new technological development can engender a change in
a product line, causing products to need modification in order to remain competitive or
rendering some products obsolete. For example, fiber optic cables have replaced older
cables in certain applications and many businesses have switched from main frame
computers to personal computers. Being aware of these advances can help a business stay
ahead of the curve.
Laws and Regulations: The implementation of new governmental regulations can
cause certain products or manufacturing methods to be restricted, limiting their consumer
appeal. Conversely, new laws can also lend an advantage to certain business and
deregulation can sometimes benefit production standards. Product development strategies
must shift according to the legal landscape.
Product Life-Cycles: To preserve the rate of growth in profit and sales, many industrial
companies decide to alter, discontinue, or replace older products with newer models or
more recent upgrades. These changes are usually made periodically, allowing existing
products that reach maturity or decline to be phased out or modified, thus retaining their
appeal.
Scope of the study
The scope is very limited because attitude of the people change according to the
time.
The study is restricted to Palampur, New Delhi and that to among 100
respondents.
The study is conducted for 45 days.
The study is restricted to certain area. So it could not give an accurate picture
about New Delhi of India.
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NEED FOR THE STUDY
From the days of industrial revolution when goods & services were produced to
the present day, the emphasis has shifted from the producers to the consumer and his
needs, and with the consumer becoming more involved, in the marketing process there is
greater need for information regarding the consumer needs. Preferences and making them
satisfied of the products & services, has led to a constant but increasing need to conduct
marketing research.
This research is an insight into the mind of the consumer, with the help of which
the organizations will become aware of their pitfalls and in turn can also make
improvements in the product regarding the level of satisfaction of the consumers towards
their offerings in the market place.
The basic need of this project is to know the CONSUMER PERCEPTION
amongst the respondents, with regard to HYUNDAI Motors services and its products.
OBJECTIVES OF THE STUDY
To know satisfaction level about Show rooms modern looking equipment and
fixtures.
To know the Show room physical facilities are visually appealing or not
To know Show room convenience to move around the Show room.
To know the Show room people are knowledgeable to answer the customer
questions
To know employees in the Show room are providing without delay services to the
customers.
To know the Show rooms can give personal attention to the customers or not.
To know the Show room management is immediately responding to customers

problem.
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RESEARCH METHODOLOGY
One of the important tools for conducting marketing researching is the

availability of necessary and useful data. Data collection is more of an than science the
methods of marketing research are in a way the methods of data collection. The
sources of information fall under two categories.
Internal sources:
Every company has to keep certain records such as accounts, records, reports,
etc., these records provide sample information which can organizations usually keeps
collecting in its working.
External sources:
When internal records are insufficient and required information is not
available, the organizations will have to depend on external sources. The external
sources of data are:
Primary data:
Primary data are data gathered for a specific purpose or for a specific research
report.
For systematically collecting the data the closed end questionnaire is used. The
questionnaire consists of questions relating to various aspects of the study for proper
data collection the questionnaire is divided into 2 sections. Both the sections are meant
for the respondent only.
Secondary data:
Secondary data are data that are collected for another purpose and already exist
somewhere. Data pertaining to company is collected from company web site company
catalogues and magazines. The company profile gives a detailed report of history
various products manufacture by its etc.
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METHOD OF RESEARCH
SURVEY METHOD:
A survey is a complete operation, which requires some technical knowledge survey
methods are mostly personal in character. Surveys are best suited forgetting primary
data. The researcher obtains information from the respondents by interviewing them.
SAMPLING:
It is not always necessary to collect data from whole universe. A small
representative sample may serve the purpose. A sample means a small group should be
emanative cross section and really representative in character. This selection process
is called sampling.
SAMPLE SIZE:
Samples are devices for learning about large masses by observing a few individuals.
The selected sample is 100.Iin that sample 58 is males and 42 are females.
METHOD OF SAMPLING
RANDOM SAMPLING METHOD
The method adopted here is random sampling method. A random sample is one
where each item in the universe has as equal chance of known opportunity of being
selected.
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QUESTIONNAIRE:
A Questionnaire is carefully completed logical sequence of question directed to a
define objective. It is the out line of what information is required and the framework
on which the data is built upon. Questionnaire is son commonly used in securing
market information that its preparation deserves utmost skill and care.
FORMS OF QUESTIONS
OPEN ENDED QUESTIONS:
They are descriptive in nature. Respondents are allowed to answer in their own
words. Such questions buying the actual opinion of the respondent s regarding srvices.
CLOSED ENDED QUESTIONS:
They are not descriptive in nature. They will be given certain choices and the
respondents have to choose choice among them. They make analysis easy but
sometimes they restrict the respondents choices.
TYPES OF CLOSED ENDED QUESTIONS:
DICHOTAMS: a question offering two answers choice.
MULTIPLE CHOICE: a question offering three choices.
RATING SCALE: a scale that rates some attributes from poor to
excellent.
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LIMITATIONS OF THE STUDY
Time is the main limitation for the study, as project was restricted only for 45
days.
The methods used in this project are random sampling methods and results
obtained may not be accurately fully accurate and believable.
The research has been centered to only One hundred Customers of HYUNDAI
fresh
The analysis is purely based on closed ended questions and due their deliberate
manipulation, important information may be lost and even barriers of
communication would cause a limitation.
The whole project research was confined to only customers of HYUNDAI

Fresh@.
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CHAPTER-2
REVIEW OF LITERATURE
14
Perception
In philosophy, psychology, and cognitive science, perception is the process of attaining
awareness or understanding of sensory information. The word "perception" comes from
the Latin words perceptio, percipio, and means "receiving, collecting, action of taking
possession, apprehension with the mind or senses."
Perception is one of the oldest fields in psychology. The oldest quantitative law in
psychology is the Weber-Fechner law, which quantifies the relationship between the
intensity of physical stimuli and their perceptual effects. The study of perception gave
rise to the Gestalt school of psychology, with its emphasis on holistic approach.
What one perceives is a result of interplays between past experiences, including ones
culture, and the interpretation of the perceived.
Types
Two types of consciousness are considerable regarding perception: phenomenal (any

occurrence that is observable and physical) and psychological. The difference every
sighted person can demonstrate to him- or herself is by the simple opening and closing of
his or her eyes: phenomenal consciousness is thought, on average, to be predominately
absent without senses such as sight. Through the full or rich sensations present in senses
such as sight, nothing by comparison is present while the senses are not engaged, such as
when the eyes are closed. Using this precept, it is understood that, in the vast majority of
cases, logical solutions are reached through simple human sensation. The analogy of
Plato's Cave was coined to express these ideas.
Passive perception (conceived by Ren Descartes) can be surmised as the following

sequence of events: surrounding input (senses) processing (brain) output (re-
action). Although still supported by mainstream philosophers, psychologists and
neurologists, this theory is nowadays losing momentum. The theory of active perception
has emerged from extensive research of sensory illusions, most notably the works of
Richard L. Gregory. This theory, which is increasingly gaining experimental support, can
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be surmised as dynamic relationship between "description" (in the brain) senses
surrounding, all of which holds true to the linear concept of experience.
Perception and reality
In the case of visual perception, some people can actually see the percept shift in their
mind's eye. Others, who are not picture thinkers, may not necessarily perceive the 'shape-
shifting' as their world changes. The 'esemplastic' nature has been shown by experiment:
an ambiguous image has multiple interpretations on the perceptual level. The question,
"Is the glass half empty or half full?" serves to demonstrate the way an object can be
perceived in different ways.
Just as one object can give rise to multiple percepts, so an object may fail to give rise to
any percept at all: if the percept has no grounding in a person's experience, the person
may literally not perceive it.
The processes of perception routinely alter what humans see. When people view
something with a preconceived concept about it, they tend to take those concepts and see
them whether or not they are there. This problem stems from the fact that humans are
unable to understand new information, without the inherent bias of their previous
knowledge. A persons knowledge creates his or her reality as much as the truth, because
the human mind can only contemplate that to which it has been exposed. When objects
are viewed without understanding, the mind will try to reach for something that it already
recognizes, in order to process what it is viewing. That which most closely relates to the
unfamiliar from our past experiences, makes up what we see when we look at things that
we dont comprehend.
This confusing ambiguity of perception is exploited in human technologies such as

camouflage, and also in biological mimicry, for example by European Peacock
butterflies, whose wings bear eye markings that birds respond to as though they were the
eyes of a dangerous predator. Perceptual ambiguity is not restricted to vision. For
example, recent touch perception research Robles-De-La-Torre & Hayward 2001 found
that kinesthesia based haptic perception strongly relies on the forces experienced during
touch.
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Cognitive theories of perception assume there is a poverty of stimulus. This (with
reference to perception) is the claim that sensations are, by themselves, unable to provide
a unique description of the world. Sensations require 'enriching', which is the role of the
mental model. A different type of theory is the perceptual ecology approach of James J.
Gibson. Gibson rejected the assumption of a poverty of stimulus by rejecting the notion
that perception is based in sensations. Instead, he investigated what information is
actually presented to the perceptual systems. He and the psychologists who work within
this paradigm detailed how the world could be specified to a mobile, exploring organism
via the lawful projection of information about the world into energy arrays. Specification
is a 1:1 mapping of some aspect of the world into a perceptual array; given such a
mapping, no enrichment is required and perception is direct perception.
Preconceptions can influence how the world is perceived. For example, one classic
psychological experiment showed slower reaction times and less accurate answers when
a deck of playing cards reversed the color of the suit symbol for some cards (e.g. red
spades and black hearts).
There is also evidence that the brain in some ways operates on a slight "delay", to allow
nerve impulses from distant parts of the body to be integrated into simultaneous signals.
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Perception-in-action
An ecological understanding of perception derived from Gibson's early work is that of

"perception-in-action", the notion that perception is a requisite property of animate
action; that without perception action would be unguided, and without action perception
would serve no purpose. Animate actions require both perception and motion, and
perception and movement can be described as "two sides of the same coin, the coin is
action". Gibson works from the assumption that singular entities, which he calls
"invariants", already exist in the real world and that all that the perception process does is
to home in upon them. A view known as constructivism (held by such philosophers as
Ernst von Glasersfeld) regards the continual adjustment of perception and action to the
external input as precisely what constitutes the "entity", which is therefore far from being
invariant.
Glasersfeld considers an "invariant" as a target to be homed in upon, and a pragmatic

necessity to allow an initial measure of understanding to be established prior to the
updating that a statement aims to achieve. The invariant does not and need not represent
an actuality, and Glasersfeld describes it as extremely unlikely that what is desired or
feared by an organism will never suffer change as time goes on. This social
constructionist theory thus allows for a needful evolutionary adjustment.
A mathematical theory of perception-in-action has been devised and investigated in many

forms of controlled movement, and has been described in many different species of
organism using the General Tau Theory. According to this theory, tau information, or
time-to-goal information is the fundamental 'percept' in perception.
In todays globalising economy competition is getting more and more fierce. That means
it becomes more difficult for products and services to differentiate themselves from other
offerings than ever before. Not only is the number of competitive offerings rising due to
globalisation of production, sourcing, logistics and access to information. Many products
and services face new competition from substitutes and from completely new offerings or
bundles from industry outsiders. Since product differences are closed at an increasing
speed and many companies try to win the battle for customers by price reductions,
products and services tend to become commodities.
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On the other hand, customer behaviour becomes more hybrid. On one hand, customers
are increasingly price sensitive searching for bargains at marketplaces like ebay or
buying their groceries at discount markets. On the other hand they enjoy branded and
luxury goods. One and the same person may plan a weekend trip with a no-frills airline
and a stay at a five-star-hotel.
In the result, customers have a wider choice of often less distinguishable products and
they are much better informed. For many offerings the balance of power shifts towards
the customer. Customers are widely aware of their greater power, which raises their
expectations on how companies should care for them.
Bringing it all together, it becomes ever more difficult to differentiate a product or service
by traditional categories like price, quality, functionality etc.
In this situation the development of a strong relationship between customers and a

company could likely prove to be a significant opportunity for competitive advantage.
This relationship is not longer based on features like price and quality alone. Today it is
more the perceived experience a customer makes in his various interactions with a
company (e.g. how fast, easy, efficient and reliable the process is) that can make or break
the relationship. Problems during a single transaction can damage a so far favourable
customer attitude.
The consequence for companies is that they have to adapt their ways of competing for
customers. Traditionally, companies have focused their efforts of customer relationship
management on issues like customer satisfaction and targeted marketing activities like
event marketing, direct marketing or advertising. Although doubtless necessary and
beneficial, these activities are not longer enough. They narrow the relationship between
company and customer down to a particular set of contacts in which the company invests
its efforts. Most likely this will produce not more than a satisfied customer who is well
aware of the companies offerings and has a positive attitude towards them. However, a
satisfied customer is not necessarily a loyal one.[2]
If a customer is satisfied that means that a product of service has met his expectations and
that he was not dissatisfied by it. Customer satisfaction is doubtlessly very important. It is
the precondition for repeat purchases and it prevents the customer from telling others
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about his disappointing experiences. A loyal customer, however, is more than a customer
who frequently purchases from a company.
The difference is the emotional bond which links the customer so closely to the company
that he develops a clear preference for these products or brands and is even willing to
recommend them to others. Loyal customers truly prefer a product, brand or company
over competitive offerings. Thus loyalty goes beyond a rational decision for known
quality or superior price-performance-ratio. It is about the customers feelings and
perceptions about the brand or product.
When the customer makes his buying decision, he evaluates the benefits he perceives
from a particular product and compares them with the costs. The value a customer
perceives when buying and using a product or service go beyond usability. There is a set
of emotional values as well, such as social status, exclusivity, friendliness and
responsiveness or the degree to which personal expectations and preferences are met.
Similarly, the costs perceived by the customer, normally comprise more than the actual
price. They also include costs of usage, the lost opportunity to use an other offering,
potential switching costs etc. Hence, the customer establishes an equation between
perceived benefits and perceived costs of one product and compares this to similar
equations of other products.
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Based on this, customer loyalty can be understood as to how customers feel about a
product, service or brand and whether their perceived total investments with a it live up to
their expectations.
The important point here is the involvement of feelings, emotions and perceptions. In
todays competitive marketplace, these perceptions are becoming much more important
for gaining sustainable competitive advantage.
Customer perceptions are influenced by a variety of factors. Besides the actual outcome
i.e. did the product or service deliver the expected function and did it fulfil the customers
need the whole process of consumption and all interactions involved are of crucial
importance. In todays globalised information driven economy this can also comprise
issues like
How other customers or influencing groups perceive the product or brand
The degree to which the customer feels the actual marketing campaign addresses
the most important issues
Responsiveness and service quality of any affiliates, e.g. distribution partners
Customer perceptions are dynamic. First of all, with the developing relationship between
customer and company, his perceptions of the company and its products or services will
change.
The more experience the customer accumulates, the more his perceptions will shift from
fact-based judgements to a more general meaning the whole relationship gains for him.
Over time, he puts a stronger focus on the consequence of the product or service
consumption.
Moreover, if the customers circumstances change, their needs and preferences often
change too. In the external environment, the offerings of competitors, with which a
customer compares a product or service will change, thus altering his perception of the
best offer around. Another point is that the public opinion towards certain issues can
change. This effect can reach from fashion trends to the public expectation of good
corporate citizenship. Shells intention to dump its Brent Spar platform into the ocean
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significantly altered many customers perception of which company was worth buying
fuel from.
Research has been don on the impact of market share on the perceived quality of a
product.[3] Depending on the nature of the product and the customers preferences,
increasing market share can have positive or negative effects on how the customer
perceives the product.
Positive effects of increasing market share on customer perception

Increasing market share can send out positive signals by acting as an indicator of
superior quality that is recognised by more and more other customers. This effect is
particularly strong for premium priced products. Customers normally assume that a
product must be of exceptional quality if it can gain such an unexpected market success
despite its high price.
Many brands offer positive emotional benefits of using a product that is popular in
the markets.
The value of a product or service can rise through increasing number of users of
the same product, e.g. number of members of an online community, better availability of
software for popular computer systems.
Negative effects of increasing market share on customer perception

For premium and luxury products, customers may translate an increasing market
share into a loss of exclusivity and thus perceive it as less valuable.
The quality of services may suffer if they are consumed by increasing numbers of
users. Diseconomies of scales and congestions can be observed with busy airports and
many other services so that customers may look out for other providers that promise more
timely service and convenience.
The concept of customer perception does not only relate to individual customers in
consumer markets. It is also valid in business to business situations. For example, a
competitor benchmarking survey of a large industrial supplier revealed that the market
leader, although recognised for excellent quality and service and known to be highly
innovative, was perceived as arrogant in some regions. If we take into consideration that
there are about four other large players with a similar level of quality and innovative
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ideas, this perceived arrogance could develop into a serious problem. Customers here are
well aware the main characteristics of all the offerings available at the market are largely
comparable. So they might use the development of a new product generation of their own
to switch to a supplier that can serve them not better or worse, but with more
responsiveness and understanding.
Companies have done a lot to improve customer satisfaction and customer relationships
in the past. As discussed above, this will not be enough anymore.
Any serious effort to manage customer perceptions starts with a good measurement
system. Companies must be truly willing to look at the whole process of interaction
through the customers eyes. For many companies, this requires a more or less extensive
shift in mindset, since most departments from development to sales will be involved.
The backbone of any customer perception management and measurement system,

however, is thorough market research and surveys. There are several aspects of
measuring customer perceptions.
First of all the company has to find out how itself and its offerings are perceived
by the customers. It is essential to identify what the customer is actually buying and
which features are most important to him. Only this way it is possible to align the internal
focus and resources to the customers expectation. This information is of greater value if it
can be compared to the customers perception of competitive offerings. Not only will this
reveal relative strengths and weaknesses, it is also a valuable source of ideas for
improvement.
Besides that, surveys should also identify the relative importance of several
influencing variables in the eyes of the customer. To know what matters most to the
customer helps to set priorities for projects.
Of course, as with any market research activities, it should be based on a careful

customer segmentation. Customer groups that differ by frequency of use, social status,
geographical region or other criteria, are likely to have different expectations and
preferences. Hence, they will probably perceive an offering in different ways.
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Zeithaml suggest to incorporate several behavioural-intentions questions to
identify signals that are potentially favourable or unfavourable for the company.
Questions for behaviour intentions are potentially of higher validity and richer diagnostic
value than the overall service quality or customer satisfaction variables. Since these
questions are directed at potential future actions they can not only indicate of changes in
demand and market trends. They also provide early warning signs and help to take to take
timely corrective action.
Only if a company knows which features of its products and services or which other
points of contact with the customer are considered most important by the customers, it
can develop appropriate strategies. Such a strategy will not only help the company to
strengthen the emotional bond with the customer through targeted improvements and
activities. It may also have the positive side effect that the customers whole experience
leads him to the conclusion that this company really understands his distinctive needs and
really takes him seriously. Hence, the customers perception of the whole company may
improve beyond a positive attitude towards a particular product.
Based on thorough research, companies can develop strategies and initiate targeted
activities to manage and improve customer perceptions. This article finishes with some
examples of how this can be done. It has to be taken into consideration, however, that
there is no one right strategy. Since these measures shall provide a distinctive competitive
advantage, they should be based on the particular competencies and resources of a
company and they should aim at setting the company apart from the other market
participants.
The service experience is closely linked to his perception of the total company and
its offerings be it products or service. A common idea of many authors is that it is not
always necessary to deliver the absolutely perfect customer experience. Instead it is
important to solve the customers need or problem in a matter that is perceived
appropriate. For many retail products, for example, it will be sufficient in most cases to
offer an appropriate group of substitute products, but not all particular products. In
service situations, customers will - depending on the actual nature of the service - not
expect an immediate service delivery. They will however expect a delivery within a time
frame that is either market standard or meets the service promise of the actual service
provider. As long as the company keeps this promise, the customer will perceive this as
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satisfying. Byrnes even suggests that you earn more customer loyalty when you do a
good job fixing a service problem, than if there had been no problem at all. The point is
to meet or excel the customers expectations, not to achieve some ideal level of product
or service delivery.
Companies should try to make sure that their customers are fully aware of all the
ways their offering can provide value to them. They have to explain the customer how
this particular product can deliver more value than those from competitors. This approach
means to widen the customer perception and to extend their awareness and appreciation
to more features or aspects of the offering. However, this point has to be considered very
carefully in order not to produce an diametrical effect.
This point again highlights the critical importance of market research. In this example,
market research would help the company to develop different communication strategies
that focus on those product features that are of high priority for particular market
segments.
A commonplace strategy to circumvent the loss of exclusivity associated with high

market share is to leverage the brand by introducing new related brands. This is very
efficient with fragrances or fashion brands.
In situations in which customers perceive high market shares lead as a sign of

quality, it is advisable to advertise a favourable high share, e.g. Americas most popular
SUV, Three out of five people already use .
It is advisable to contact customers who indicate low results for loyalty or

perception of the company in the surveys. Direct contact allows to identify the roots of
the problem and if possible to solve the issue. Besides solving some customer-
specific problems and thus improving the perception of some individuals, such follow-
ups may reveal some causes for problems that are common to wider parts of the customer
base. These are the starting points for some improvements with potentially significant
effects.
Perception is the process by which organisms interpret and organize sensation to produce
a meaningful experience of the world. Sensation usually refers to the immediate,
relatively unprocessed result of stimulation of sensory receptors in the eyes, ears, nose,
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tongue, or skin. Perception, on the other hand, better describes one's ultimate experience
of the world and typically involves further processing of sensory input. In practice,
sensation and perception are virtually impossible to separate, because they are part of one
continuous process.
Thus, perception in humans describes the process whereby sensory stimulation is

translated into organized experience. That experience, or percept, is the joint product
of the stimulation and of the process itself. Relations found between various types of
stimulation (e.g., light waves and sound waves) and their associated percepts suggest
inferences that can be made about the properties of the perceptual process; theories of
perceiving then can be developed on the basis of these inferences. Because the perceptual
process is not itself public or directly observable (except to the perceiver himself, whose
percepts are given directly in experience), the validity of perceptual theories can be
checked only indirectly.
Historically, systematic thought about perceiving was the province of philosophy.

Philosophical interest in perception stems largely from questions about the sources and
validity of what is called human knowledge (epistemology). Epistemologists ask whether
a real, physical world exists independently of human experience and, if so, how its
properties can be learned and how the truth or accuracy of that experience can be
determined. They also ask whether there are innate ideas or whether all experience
originates through contact with the physical world, mediated by the sense organs.
As a scientific enterprise, however, the investigation of perception has especially

developed as part of the larger discipline of psychology. For the most part, psychology
bypasses the questions about perceiving raised by philosophy in favour of problems that
can be handled by its special methods. The remnants of such philosophical questions,
however, do remain; researchers are still concerned, for example, with the relative
contributions of innate and learned factors to the perceptual process.
Such fundamental philosophical assertions as the existence of a physical world, however,

are taken for granted among most scientific students of perceiving. Typically, researchers
in perception simply accept the apparent physical world particularly as it is described in
those branches of physics concerned with electromagnetic energy, optics, and mechanics.
The problems they consider relate to the process whereby percepts are formed from the
26
interaction of physical energy (for example, light) with the perceiving organism. Of
further interest is the degree of correspondence between percepts and the physical objects
to which they ordinarily relate. How accurately, for example, does the visually perceived
size of an object match its physical size as measured.
Consumer behavior is the study of when, why, how, and where people do or do not buy
a product. It blends elements from psychology, sociology, social anthropology and
economics. It attempts to understand the buyer decision making process, both
individually and in groups. It studies characteristics of individual consumers such as
demographics and behavioural variables in an attempt to understand people's wants. It
also tries to assess influences on the consumer from groups such as family, friends,
reference groups, and society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer
playing the three distinct roles of user, payer and buyer. Relationship marketing is an
influential asset for customer behaviour analysis as it has a keen interest in the re-
discovery of the true meaning of marketing through the re-affirmation of the importance
of the customer or buyer. A greater importance is also placed on consumer retention,
customer relationship management, personalisation, customisation and one-to-one
marketing. Social functions can be categorized into social choice and welfare functions.
Each method for vote counting is assumed as social function but if Arrows possibility
theorem is used for a social function, social welfare function is achieved. Some
specifications of the social functions are decisiveness, neutrality, anonymity,
monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social
choice function meets these requirements in an ordinal scale simultaneously. The most
important characteristic of a social function is identification of the interactive effect of
alternatives and creating a logical relation with the ranks. Marketing provides services in
order to satisfy customers. With that in mind, the productive system is considered from its
beginning at the production level, to the end of the cycle, the consumer
The black box model shows the interaction of stimuli, consumer characteristics, decision
process and consumer responses. It can be distinguished between interpersonal stimuli
(between people) or intrapersonal stimuli (within people). The black box model is related
to the black box theory of behaviourism, where the focus is not set on the processes
27
inside a consumer, but the relation between the stimuli and the response of the consumer.
The marketing stimuli are planned and processed by the companies, whereas the
environmental stimulus are given by social factors, based on the economical, political and
cultural circumstances of a society. The buyers black box contains the buyer
characteristics and the decision process, which determines the buyers response.
The black box model considers the buyers response as a result of a conscious, rational
decision process, in which it is assumed that the buyer has recognized the problem.
However, in reality many decisions are not made in awareness of a determined problem
by the consumer.
Information search
Once the consumer has recognised a problem, they search for information on products
and services that can solve that problem. Belch and Belch (2007) explain that consumers
undertake both an internal (memory) and an external search.
Sources of information include:
Personal sources .
Commercial sources
Public sources
Personal experience
The relevant internal psychological process that is associated with information search is
perception. Perception is defined as "the process by which an individual receives, selects,
organises, and interprets information to create a meaningful picture of the world".
The selective perception process
Stage Description
Selective exposure consumers select which promotional messages they will

expose themselves to.
Selective attention consumers select which promotional messages they will pay
attention to.
28
Selective comprehension consumer interpret messages in line with their beliefs,
attitudes, motives and experiences.
Selective retention consumers remember messages that are more meaningful or
important to them.
The implications of this process help develop an effective promotional strategy, and
select which sources of information are more effective for the brand.
Information evaluation
At this time the consumer compares the brands and products that are in their evoked set.
How can the marketing organization increase the likelihood that their brand is part of the
consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the
functional and psychological benefits that they offer. The marketing organization needs to
understand what benefits consumers are seeking and therefore which attributes are most
important in terms of making a decision.
Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase
decision. Sometimes purchase intention does not result in an actual purchase. The
marketing organization must facilitate the consumer to act on their purchase intention.
The organisation can use variety of techniques to achieve this. The provision of credit or
payment terms may encourage purchase, or a sales promotion such as the opportunity to
receive a premium or enter a competition may provide an incentive to buy now. The
relevant internal psychological process that is associated with purchase decision is
integration.Once the integration is achieved, the organisation can influence the purchase
decisions much more easily.
Postpurchase evaluation
The EKB model was further developed by Rice (1993) which suggested there should be a
feedback loop, Foxall (2005) further suggests the importance of the post purchase
evaluation and that the post purchase evaluation is key due to its influences on future
purchase patterns.
29
Internal influences
Consumer behaviour is influenced by: demographics, psychographics (lifestyle),

personality, motivation, knowledge, attitudes, beliefs, and feelings. Consumer behaviour
concern with consumer need consumer actions in the direction of satisfying needs leads
to his behaviour of every individuals depend on thinking
External influences
Consumer behaviour is influenced by: culture, sub-culture, locality, royalty, ethnicity,

family, social class, past experience reference groups, lifestyle, market mix factors.
30
CHAPTER-3
INDUSTRY PROFILE
&
COMPANY PROFILE
31
Automobile industry in India
The automobile industry in India is the ninth largest in the world with an annual
production of over 2.3 million units in 2008 In 2009, India emerged as Asia's fourth
largest exporter of automobiles, behind Japan, South Korea and Thailand.
Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. Several Indian automobile manufacturers such as TOYOTA Motors, Maruti
Suzuki and Mahindra and Mahindra, expanded their domestic and international
operations. India's robust economic growth led to the further expansion of its domestic
automobile market which attracted significant India-specific investment by multinational
automobile manufacturers. In February 2009, monthly sales of passenger cars in India
exceeded 100,000 units.
bryonic automotive industry emerged in India in the 1940s. Following the independence,
in 1947, the Government of India and the private sector launched efforts to create an
automotive component manufacturing industry to supply to the automobile industry.
However, the growth was relatively slow in the 1950s and 1960s due to nationalization
and the license raj which hampered the Indian private sector. After 1970, the automotive
industry started to grow, but the growth was mainly driven by tractors, commercial
vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the
Indian market ultimately leading to the establishment of Maruti Udyog. A number of
foreign firms initiated joint ventures with Indian companies.
In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian government
chose Suzuki for its joint-venture to manufacture small cars. Following the economic
liberalization in 1991 and the gradual weakening of the license raj, a number of Indian
and multi-national car companies launched operations. Since then, automotive
component and automobile manufacturing growth has accelerated to meet domestic and
export demands.
32
The Britannica Encyclopedia a motorcycle as a bike or tricycle propelled by an
internal combustion engine (or, less often by an electric engine). The automobile was
the reply to the 19th century reams of self-propelling the horse-drawn bikeriage.
Similarly, the invention of the motorcycle created the self propelling bicycle. The first
commercial design was three-wheeler built by Edward Butler in Great Britain in 1884.
This employed a horizontal single-cylinder gasoline engine mounted between two steer
able front wheels and connected by a drive chain to the rear wheel. The 1900s saw the
conversion of many bicycles or pedal cycles by adding small, centrally mounted spark
ignition engine engines. There was then felt the need for reliable constructions. This led
to road trial tests and competition between manufacturers. Tourist Trophy (TT) races
were held on the Isle of main in 1907 as reliability or endurance races. Such were the
proving ground for many new ideas from early two-stroke-cycle designs to supercharged
multivalent engines mounted on aerodynamic, bikebon fiber reinforced bodywork.
The invention of two wheelers is a much-debated issue. Who invented the first
motorcycle? May seem like a simple question, safety, bicycle, i.e., bicycle with front
and rear wheels of the same size, with a pedal crank mechanism to drive the rear wheel.
Those bicycles in turn described from high-wheel bicycles. The high wheelers
descended from an early type of pushbike, without pedals, propelled by the riders feet
pushing against the ground. These appeared around 1800, used iron banded wagon
wheels, and were called bone-crushers, both for their jarring ride, and their tendency to
toss their riders. Gottiieb Daimler (who credited with the building the first motorcycle in
1885, one wheel in the front and one in the back, although it had a smaller spring-loaded
outrigger wheel on each side. It was constructed mostly of wood, the wheels were of the
iron-banded wooden-spooked wagon-type and it definitely had a bone-crusher chassis!
33
FURTHER DEVELOPMENTS:
Most of the developments during the early phase concentrated on three and four-
wheeled design since it was complex enough to get the machines running with out having
to worry about them falling over. The next notable two-wheeler though was the
Hildebrand & Wolf Mueller, patented in Munich in 1894. In 1895, the French firm of
DeDion-button built and engine that was to make the mass production and common use
of motorcycle possible. The first motorcycle with electric start and a fully modem
electrical system; the Hence special from the Indian Motorcycle Company astounded the
industry in 1931. Before World War 1, IMC was the largest motorcycle manufacturer in
the world producing over 20000 bikes per year.
INCREASING POPULARITY:
The popularity of the vehicle grew especially after 1910, in 1916; the Indian
motorcycle company introduced the model H racer, and placed it on sale. During World
War 1, all branches of the armed forces in Europe used motorcycles principally for
dispatching. After the war, it enjoyed a sport vogue until the Great Depression began in
motorcycles lasted into the late 20th century; weight the vehicle being used for high-speed
touring and sport competitions. The more sophisticated of a 125cc model. Since then, an
increasing number of powerful bikes have blazed the roads.
HISTORICAL INDUSTRY DEVELOPMENTS:
Indian is the second largest manufacturer and producer to two wheelers in the
World. It stands next only to Japan and China in terms of the number of V produced and
domestic sales respectively. This destination was achieved due to variety of reason like
restrictive policy followed by the government of India towards the passenger bike
industry, rising demand for personal transport, inefficiency in the public transportation
system etc. The Indian two-wheelers industry made a small beginning in the early 50s
when Automobile products of India (API) started manufacturing scooters in the country.
Until 1958, API and Enfield were the sole producers.
34
The two wheelers market was opened were opened to foreign competition in the
mid-80s. And the then market leaders-Escorts and Enfield were caught unaware by the
onslaught of the 100cc bikes of the four Indo- Japanese joint ventures. With the
availability of fuel-efficiency low power bikes, demand swelled, resulting in Hero Honda
then the only producer of four stroke bikes (100cc category), gaining a top slot.
The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki
and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles
respectively. These two players initially started with assembly of CKD Kits, and later on
progressed to indigenous manufacturing.
The industry had a smooth ride in the 50s, 60s and 70s when government
prohibited new entries and strictly controlled capacity expansion. The industry saw a
sudden growth in the 80s. The industry witnessed a steady of 14% leading to a peak
volume of 1.9 mn vehicles in 1990.
In 1990 the entire automobile industry saw a drastic fall in demand. This resulted
in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn
vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93
and FY94. Hero Honda showed a marginal decline in 1992.
The reason for recession in the sector were the incessant rise in fuel prices, high
input costs and reduced purchasing power due to significant like increased production in
1992, due to new entrants coupled with recession in the industry resulted in companies
either reporting losses or a fall in profits.
The two-wheelers market has had a perceptible shift from a buyers market to a
sellers market with a variety of choice, players will have compete on various fronts viz.
pricing, technology product design, productivity after sale service, marketing and
distribution. In the short term, market shares of individual manufacturers are going to be
sensitive to capacity, product acceptance, pricing and competitive pressures from other
manufacturers.
As incomes grow and people grow and people feel the need to own a private means
of transport, sales of two-wheelers will rise. Penetration is expected to increase to
approximately to more than 25% by 2005.
35
The motorcycle segment will continue to lead the demand for two-wheelers in the
coming years. Motorcycle sale is expected to increase by 20% yoy as compared to 1%
growth in the scooter market and 3% by moped sales respectively for the next two years.
The four-stroke scooters will add new dimension to the two-wheeler segment in the
coming future.
The Asian continent is that largest user of the two-wheelers in the world. This is due to
poor road infrastructure and low per capita income, restrictive policy on bike industry.
This is due to oligopoly between top five players in the segment, compared to thirsty
manufacturers in the bike industry.
Exports
India has emerged as one of the world's largest manufacturers of small cars. According to
New York Times, India's strong engineering base and expertise in the manufacturing of
low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of
several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and
Suzuki.
In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors
plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly,
General Motors announced its plans to export about 50,000 cars manufactured in India by
2011.
In September 2009, Ford Motors announced its plans to setup a plant in India with an
annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both
for the Indian market and for export. The company said that the plant was a part of its
plan to make India the hub for its global production business. Fiat Motors also announced
that it would source more than US$1 billion worth auto components from India.
According to Bloomberg L.P., in 2009 India surpassed China as Asia's fourth largest
exporter of cars.
36
Indian automobile companies
Notable Indian automobile manufacturers
Ashok Leyland
Chinkara Motors: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster,
Sailster.
Force Motors
Hindustan Motors: Ambassador.
Mahindra: Major, Xylo, Scorpio.
Maruti Suzuki: 800, Alto, WagonR, Estilo, AStar, Ritz, Swift, Swift DZire, SX4,
Omni, Versa, Gypsy
Premier: Sigma, Roadster, RiO.
San Motors: Storm
TOYOTA Motors: Nano, Indica, Indigo, Sumo, Safari, TL.Aria
Electric car companies in India
Ajanta Group
Mahindra
Hero Electric REVA
Tara International
TOYOTA Motors
Notable Multi-national automobile manufacturers
Locally manufactured Automobiles of Multi-national Companies
Audi: A4, A6.

BMW: 3 Series, 5 Series.
Chevrolet: Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera.
Fiat: Palio, Grande Punto, Linea.
Ford: Ikon, Fiesta, Fusion, Endeavour, Figo
37
Honda: Jazz, City, Civic, Accord.
Hyundai: Santro, i10, Getz, i20, Accent, Verna, Hyundai , Sonata.
Mercedes-Benz: C-Class, E-Class
Mitsubishi: Lancer, Lancer Cedia.
Nissan: Micra
Renault: Logan
koda: Fabia, Octavia, Laura.
Toyota: Corolla, Innova, Fortuner
Volkswagen: Jetta, Passat, Polo.
Cars sold in India as CBU (Completely Built Units)
Audi: A8, TT, R8, Q5, Q7.

Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur,
Mulsanne.
BMW: 6 Series, 7 Series, X3, X5, X6, M3, M5, M6 and Z4.
Chevrolet: Captiva
Fiat: Nuova 500.
Honda: Civic Hybrid, CR-V.
Hyundai: Santa Fe.
Jaguar: XF, XJ, XK.
Lamborghini: Gallardo, Murcilago.
Land Rover: Range Rover, Range Rover Sport, Discovery 4, Freelander 2.
Maybach: 57 and 62.
Mercedes-Benz: CL-Class, CLS-Class, S-Class, SL-Class, SLK-Class, M-Class,
Viano.
Mitsubishi: Pajero, Montero, Outlander.
Nissan: Teana, X-Trail, 307Z.
Porsche: 911, Boxter, Panamera, Cayman, Cayenne.
Rolls Royce: Ghost, Phantom, Phantom Coup, Phantom Drophead Coup.
koda: Superb.
Suzuki: Grand Vitara.
Toyota: Camry, Land Cruiser, Land Cruiser Prado, Prius.
38
COMPANY PROFILE
39
HISTORY:
The Company is an authorized Dealer of Hyundai Motors India Limited (HMIL)
for sale of its entire range of motor vehicles. It is also authorized to service & repair of all
Hyundai cars and also deals in spare parts of Hyundai cars.
Lakshmi Hyundai was established in the year 1998 in Himayathnagar with the
launch of Hyundais first car in India- the evergreen SANTRO. The entire business is
managed under the able leadership and guidance of the managing Director Shri K.Rama
Mohana Rao.
Soon after the Himayathnagar showroom, came up the state-of-art service
facilities at Kukatpally, Banjarahills and L.B.Nagar. These service centers are well
equipped to cater to the needs of valued customers. The management left no stone
unturned to review, research and implement the latest of technologies and methodologies
to improve on the sales, service on the customer satisfaction. Continuous up gradation of
the facilities at the sales and service outlets and adding to the service agenda each time,
add been sales graph go high by the yea
AWARDS:
The awards received for Best in sales in south region, Best in finance , Top
performer in 2005 and their technicians being awarded with a Gold Medal for standing
No.1 in the world at World skill Olympics held at Korea-stand testimony to the
recognition that received at the global level.
According to the popular belief, a customer walking into LAKSHMI HYUNDAI is
treated like an asset. His/her needs are assessed in the first stage and the customer is
educated subsequently about the product line, service range, allied services, etc., ample
information and time is given to the prospective buyer to make up his/her mind on which
car to buy.
Totally focused customer centric approach, unparalleled service motto, top-end
facilities, bouquet of allied services, solid after sales backup, quality assurance,
unconditional warranty promise and desire to excel through service are some of the
threads which blend in effectively to give birth to the fabric called LAKSHMI
HYUNDAI LAKSHMI HYUNDAIs success is just beginning and more to expect
spectacular chapters in the preamble Winning Edges.
40
LAKSHMI HYUNDAI MAN POWER:
Department Own Contract Total

Sales 57 0 57
Service 126 49 175
Spaces 15 0 15
Finance & 98 0 98
HR/Administration
Total 296 49 345
RECRUITMENT PROCESS AT LAKSHMI HYUNDAI:
The recruitment process involves both internal and external methods. Internal
methods namely are employee referrals, promotions, inter company transfers.
Promotions
Posts falling vacant due to be filled will be notified within the division/office, giving
educational qualifications and experience laid down for the post and the extent to which
these will be relaxed for promotion and inviting applications from eligible employees in
lower group, who have rendered the requisite qualifying service and who have requisite
higher post.
Employment Exchange: All vacancies are to be notified to the Local Employment Exchange. If
employment exchanges are unable to sponsor the suitable candidates with in the prescribed time
limits, the vacancies may be advertised in the press on a local/regional advertisement the
vacancies may be advertised on India Basis. A minimum of two weeks notice is to given to the
Local Employment Exchange for sponsoring suitable candidates.
Paper advertisements:
Of the external methods this method is mostly adopted by the organization. This method
of recruitment involves advertising the requirements of personnel in two of the leading
newspapers one being in English language and other being in regional language. For
recruitments in Hyderabad, Eenadu and Deccan Chronicle are the two leading
newspapers that the requirement of personnel is advertised.
41
SELECTION PROCESS AT LAKSHMI HYUNDAI:
After the recruitment process next step is the selection process in employing a suitable
candidate into the organization. At Hindustan Aeronautics Limited the selection process
mainly includes test/interviews. If a candidate passes through the different rounds of
interviews/test then he is employed into the organization. The Personnel Department of
each division or the corporate office will screen the applications received and categorize
them to those that satisfy prescribed minimum educational qualification and experience
and those do not .
Personal Manager Interview:

This is the first round of interview for the candidate. The Personal manager checks the
knowledge of the candidate in the applied field along with his positive attitude,
communication skills and so on. On personal dissatisfaction the manager can call the
candidate for another round of interview. He prepares an evaluation report on the
candidates' performance in the interview.
Board Directors Interview:

After the personal manager interview, the next in line is the Board Directors Interview.
There are 4 directors who take the seat of interviewer. Questions about family
background, health details, academic performance and activities, likes and dislikes,
attitudes and capabilities etc. are all questioned. The interview conducted by the Board
directors can take any shape from stress interview to formal or informal interview
depending on the kind of department they are being recruited for. All the directors
prepare an evaluation report individually on the candidates performance in relation to
personality, intelligence, attitudes, skills and knowledge and so on. .
Verification of Date of Birth, Character and Antecedents

The secondary school certificate is the accepted document required for verification of
date of birth. However, if this document is not available, the candidate should produce a
RESUME. In that he/she mention all study details of them.
42
APPOINTMENT OF SELECTED CANIDIDATES
Candidates who are selected for appointment to post will be issued with a letter
proposing to offer the post or offering the post. If they accept appointment offer they
are to be reply in the form.
SALES TEAM PERFORMANCE BONUS POINTS

Universal Factors Sub-Factors No. of Points Total points
Job Knowledge & Product Information 100

Judgment
Communication Skills 75
GDMS Up gradation 100
Accessories Selling Skills 25 350
Finance Dealing Skills 50
Sales Personality Presentation Skills 50

Confidence Level 50
Voice & Body Culture 100
Appearance 50 300
Selling Skills 50
Code Of Conduct Time Management 50

Obeying Orders 100
Alertness 75
Company Dress 50 350
Attendance Record 75
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC), South Korea and is the largest passenger car exporter and the second
largest car manufacturer in India. HMIL presently markets 6 models of passenger cars
across segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment
includes the Accent and the Verna, the A5 segment includes the Sonata Transform and the
SUV segment includes the Santa Fe.
43
HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts of the
most advanced production, quality and testing capabilities in the country. To cater to
rising demand, HMIL commissioned its second plant in February 2008, which produces
an additional 300,000 units per annum, raising HMILs total production capacity to
600,000 units per annum.
In continuation with its commitment to providing Indian customers with cutting-edge

global technology, HMIL has set up a modern multi-million dollar research and
development facility in the cyber city of Hyderabad. It aims to become a centre of
excellence for automobile engineering and ensure quick turnaround time to changing
consumer needs.
As HMCs global export hub for compact cars, HMIL is the first automotive company in
India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports
cars to more than 110 countries across EU, Africa, Middle East, Latin America, Asia and
Australia. It has been the number one exporter of passenger car of the country for the
sixth year in a row.
To support its growth and expansion plans, HMIL currently has a 315 strong dealer
network and 640 strong service points across India, which will see further expansion in
2010.
Mr. Han Woo Park joined Hyundai Motor Company in Seoul, South Korea, in 1982 in the
finance department and ever since he has been involved with costing, auditing and the
financial operations of the company.
He joined Hyundai Motor India Limited in 2003 as the Chief Financial Officer and since
then he has played a pivotal role in HMIL as he was involved in all aspects of the
company in his capacity as a CFO.
Mr. Park has a vast experience and understanding of Hyundai Motor India Ltd and the
Indian culture and has successfully led his team for the last seven years. Mr. Park holds a
degree in Business Administration from the University of Dankook in Seoul, South
Korea.
44
Prior to his becoming the Managing Director of HMIL he held the position of CFO and
Senior Executive Director. Mr Park lives in Chennai with his wife. He has two children, a
son and a daughter. The son is studying at University of Texas, Austin and the daughter is
studying at SUNY Buffalo. Mr Park was born in South Korea on January 29, 1958.
Hyundai Motor India Engineering (HMIE) is a fully owned subsidiary of Hyundai Motor
Company, South Korea, which has set up the R&D Centre in Hyderabad. HMIE is a
centre with one of the most advanced research and development facilities which focuses
on state of the art product and design engineering and rigorous quality enhancement. The
new R&D Centre at Hyderabad in India is Hyundai Motor Companys fourth overseas
R&D centre.
Set up with an investment of Rs. 184 crores, the new 200,000 square-foot facility R&D
Centre, is aimed at further accelerating local content development and enable Hyundai to
respond even more quickly to changing customer needs across the world. The R&D
Centre will further facilitate the development of India as Hyundais global hub for
manufacturing and engineering of small cars. The new R&D Centre in Hyderabad will
support all back-end operations like computer aided engineering (CAE), computer aided
design (CAD) and help the R & D work taking place across Hyundais car line-up. The
R&D Centre will help in developing vehicles which includes their styling, design
engineering and vehicle test & evaluation. The R&D Centre will play a pivotal role for
cars manufactured in India inorder to satisfy the specific needs of the Indian customers.
Hyundai Motor Companys other overseas R&D centres are located in the United States,
Germany, Japan & Korea.
Management Philosophy With the spirit of creative challenge, we will strive to create a
more affluent lifestyle for humanity, and contribute to the harmony and co-prosperity
with shareholders, customers, employees and other stakeholders in the automobile
industry.
The spirit of creative challenge has been a driving force in leading HMC to where it is
today.
It is the permanent key factor for HMC to actively respond to change in the management
system and seek creative and selfinnovative system. With the spirit of creative
45
challenge, we create profits, the primary objective of a private enterprise. Furthermore,
we take responsibility for the environment and society we belong to, and offer sustainable
mobility in order to implement our corporate philosophy and provide benefits to all
stakeholders including shareholders, customers, executives, employees, suppliers, and
communities. Vision We announced "Innovation for Customers" as our midto long
term vision with five core strategies: global orientation, respect for human values,
customer satisfaction, technology innovation, and cultural creation. We desire to create an
automobile culture of putting customer first via developing humancentered and
environmentfriendly technological innovation.
Management Policy Based on a respect for human dignity, we make efforts to meet the
expectations of all stakeholders including customers and business partners by building a
constructive relationship amongst management, labor, executives and employees. Also,
we focus on communicating our corporate values both internally and externally, and
46
gaining confidence from all stakeholders.
Mid-and Long-term Strategies We developed five midand longterm strategies: global

management, higher brand values, business innovation, environmental management, and
strengthening product competitiveness. Especially, we selected environmental
management as one of our strategies to meet the needs of our stakeholders and the society
47
we belong to. We also intend to promote sustainability development and preservation of
the environment.
MOST LIKED SMALL CAR IS SANTROXING
48
49
50
51
New Arrivals
EON
Santro Xing
52

i10
i20
Accent
Fluidic Verna
The All New Sonata
53
CHAPTER-4
DATA ANALYSIS
&
INTERPRETATION
54
DATA ANALYSIS
1. This Show room has modern looking equipment and fixtures?.
TABLE 1
Some
Strongly Somewhat
Gender % % Neutral % what % Strongly agree %
disagree disagree
agree
MALE 4 0.04 8 0.08 12 0.12 22 0.22 12 0.12
FEMALE 4 0.04 2 0.02 14 0.14 18 0.18 4 0.04
TOTAL 8 10 26 40 16
Table 1: reveals customers opinion on modern looking equipment and fixtures.
Interpretation
From the above data it was found that, 4 male and 4 female are strongly
disagreed with modern looking neutral in their opinion respondents are some
55
what agree.12 male and 4 female are strongly agree with the modern furniture
and equipment., 22male and 18 female equipment and fixtures,8 male and 2
female are some what disagree, 12 male and 14 female respondents .
2. The Physical facilities at this Show room are visually appealing?

TABLE 2.
Strongly Somewhat somewha Strongly

Gender disagree % disagree % Neutral % t agree % agree %
MALE 4 0.04 10 0.10 10 0.10 17 0.17 8 0.08
FEMALE 0 0 2 0.02 14 0.14 23 0.23 12 0.12
TOTAL 4 12 24 40 20
Table 2: reveals customers opinion on visibility of physical facilities.
Interpretation
From the table it is evident that 40of the respondents are of the
opinion that they are some what satisfied with visibility, and 20 of the
sample respondents said they strongly agree. However, 24 of the sample
collected are neutral with the appealing of physical facilities. 12 of the
sample respondents said they some what disagree and only 4 of the sample
respondents said they strongly disagree with visibility. From the above
analysis we can say that majority of the sample respondents are agreed with
the visual appeal of physical facilities
56
3. The Show room layout at this Show room makes it easy for customers to
move around Show room?
TABLE 3.

MALE 4 0.04 2 0.02 16 0.16 19 0.19 12 0.12
FEMAL 0 0 10 0.10 16 0.16 11 0.11 10 0.10
TOTAL 4 12 32 30 22
Table 3: reveals customers opinion on visibility of layout of this Show room easy to the
customers to move around the Show room.
Interpretation
From the table it is evident that 32 of the respondents are of the

opinion that they are neutral to move around the Show room, and 22 of the
sample respondents said they strongly agree. However, 30 of the sample
collected are some what agreed. However only 12 of the people some what
disagree and 4 of the respondents strongly disagree. From the above
analysis we can say that majority of the people feels that this Show room
makes easy for customers to move around the Show room.
57
4. Employees in this Show room have knowledge to answer customer
question?
TABLE 4

MALE 0 0 8 0.08 9 0.09 22 0.22 16 0
FEMALE 2 0.02 4 0.04 9 0.09 16 0.16 14 0
TOTAL 2 12 18 38 30
Table 4: reveals customers opinion on Employees have knowledge to answer customers

question.
Interpretation
From the table it is evident that 38 of the respondents opinion that they
are some what satisfied with knowledge of employees, and 30 of the sample
respondents said they strongly agree. However, only 18 of the sample
respondents are Neutral with the knowledge of employees. However12 of the
sample respondents said they somewhat disagree and 2 of the respondents
strongly disagree. From the above analysis we can say that majority of the
sample respondents are in agreed with the Employees have knowledge to
answer customers question.
58
5. The behavior of employees in this Show room instills confidence in
customers?
TABLE 5
Strongly Somewhat Somewha Strongly

MALE 0 0 4 0.04 18 0.18 30 0.30 6 0.06
FEMAL
E 2 0.02 6 0.06 14 0.14 10 0.10 10 0.10
TOTAL 2 10 32 40 16
Table5: reveals customers opinions on the behavior of employees instill

confidence in customers.
Interpretation

opinion that they are some what satisfied with employees behavior, and 32
of the sample respondents said they strongly agree. However, only 16of the
sample collected is strongly agreeing with the behavior of employees, and
10 of the people are some what agree and 2 of the people are strongly
disagreeing. From the above analysis we can say that majority of the sample
59
respondents are in agreed with the behavior of the employees in this Show
room instill confidence in customers.
6. Employees in this Show room give prompt service to customers?.
TABLE 6
Some
Strongl what Strogl
Gende y disagre Neutr Somewha y
r disagree % ed % al % t agree % agree %
Male 0 0 12 12 12 12 20 0.20 10 0.10
Femal 0.0 0.0
e 2 2 4 4 12 0.12 16 0.16 12 0.12
TOTA
L 2 16 24 36 22
Table6: reveals customers opinions on the behavior of employees give prompt

service to customers.
Interpretation

opinion that they are some what satisfied with employees give prompt
service, and 22 of the sample respondents said they strongly agree. However,
only 24 of the sample collected are Neutral with the behavior of employees.
And 16 of the people are some what agree and 2 of the people are strongly
disagreed. From the above analysis we can say that majority of the sample
60
respondents are in agreement with the employees in the Show room give
prompt service to customers.
7. This Show room gives customers individual attention?.
TABLE 7

MALE 4 0.04 8 0.08 20 0.20 10 0.10 12 0.12
FEMALE 2 0.02 16 0.16 12 0.12 12 0.12 4 0.04
TOTAL 6 24 32 22 16
Table7: reveals customers opinions on the Show room give customers

individual attention.
Interpretation

opinion that they are neutral with Show room gives customers individual
attention, and 22 of the sample respondents said they somewhat agreed.
However, only 16of the sample collected is strongly agreed and 24 of the
people are some what disagree and 2 of the people are strongly disagreed.
From the above analysis we can say that majority of the sample respondents
are said this Show room gives customers individual attention.
61
8. When a customer has a problem, this Show room shows a sincere interest
in solving it ?.
TABLE 8
Strongly Somewhat somewhat Strongly

Gender disagree % disagree % Neutral % agree % agree %
MALE 8 0.08 0 0 11 0.11 22 0.22 12 0.12
FEMALE 4 0.04 6 0.06 15 0.15 20 0.20 2 0.02
TOTAL 12 6 26 42 14
Table8: reveals customers opinions on the customers problem.
Interpretation

opinion that they are some what agree with Show room gives sincere interest
in customers problem, and 26 of the sample respondents said they neutral.
However, only 14of the sample collected is strongly agreed and 6 of the
people are some what disagree and 12 of the people are strongly disagreed.
are agree with this Show room shows a sincere interest in solving customers
problem.
62
9. This Show room provides plenty of convenient parking to all their
customers?
TABLE 9

MALE 6 0.06 8 0.08 12 0.12 14 0.14 14 0.14
FEMAL
E 10 0.10 12 0.12 8 0.08 10 0.10 6 0.06
TOTAL 16 20 20 24 20
Table9: reveals customers opinions on the parking convenience of customers.
Interpretation

opinion that they are some what agree with Show room gives customers
parking problem, and 20 of the sample respondents said they neutral.
However, only 20 of the sample collected are strongly agreed and 20 of the
people are some what disagree and 16of the people are strongly disagree.
are agree that this Show room has a plenty of space for parking.
63
10. This Show room has operating hours convenient to all their customers?.
TABLE 10

Male 2 0.02 6 0.06 12 0.12 12 0.12 30 0.30
Female 2 0.02 6 0.06 10 0.10 10 0.10 20 0.20
4 12 22 22 50
Table9 reveals customers opinions on the operating hours of this Show room
convenient to all their customers.
Interpretation

opinion that they are strongly agree with Show room operating hours, and
22of the sample respondents said they some what agree. However, only 22of
the sample collected is neutral and 12 of the people are some what disagree
and 4 of the people are strongly disagreed. From the above analysis we can
say that majority of the people said that they are strongly agree with the
operating hours of this Show room convenient to all their customers.
64
CHAPTER-V
FINDINGS
SUGGESTIONS
CONCLUSION
QUESTIONNAIRE
BIBILIOGRAPHY
65
FINDINGS
From data analysis, I conclude that 40% of the respondents satisfaction level
about Show rooms modern looking equipment and fixtures is some what agree.
Then, only few respondents are strongly disagree.
Majority of the people (40%) said the Show room physical facilities are visually
appealing.
When asking about Show room convenience to move around the Show room
maximum number of respondents said that it is some what ease to move around
the Show room.
38% respondents said that the Show room people are somewhat knowledgeable to
answer their questions.
According to data analysis, employees in the Show room are providing without
delay services to the customers.
24% of the respondents said that the Show rooms cannot give personal attention
to the customers.
42% respondents have said that, the Show room management is immediately
responding to customers problem.
After the data analysis I found that majority of the people are not pleased
with the parking facilities
66
SUGGESTIONS
Parking facilities should be enhanced in order to satisfy customers.
Management personnel should maintain gracious relation with the customers.
Knowledge of the employees should be improved in order to answer the

customers troubles.
The layout of the Show room should be enhanced in order to move customers
around the Show room.
Improve modern looking equipment and features in showroom.
Give training to employees on how to convince the customer.
67
CONCLUSION
The respondents are of HYUNDAI and they came know about the service from
hoardings, print media, primarily and through electronic media and road shows
secondarily. The respondents are using HYUNDAI since 1 year and below 1 year in most
of the cases. The service provided by HYUNDAI is used by majority of the respondents
and the reason for choosing it is the quality of the service, followed by brand image.
CONSUMER PERCEPTION of the respondents towards HYUNDAI is high;
however a significant number of the respondents are dissatisfied with its services.
In purchasing HYUNDAI products family appear to be the prime motivators of
the respondents in making their purchase decisions, due to the special offers being
targeted by the company at this segment.
The respondents are paying their bills at the company show rooms, and these are also on
delivery time.
The respondents are desirous of having online bill payment service for
convenience as its saves their time, money and effort. The instruments being providing
with billing service are being well received by the respondents.
68
QUESTIONNAIRE
ANNEXTURE
Name of Respondent: ___________________________________________________

Designation: ________________________ Income: ___________________________
Address: ______________________________________________________________
Phone No._________________ Email id: ___________________________________
1. This Show room has modern looking equipment and fixtures:
Strongly Disagree Somewhat Disagree Neutral Somewhat

Agree Strongly Agree
2. The physical facilities at this Show room are visually appealing:

3. The Show room layout at this Show room makes it easy for
customers to move around Show room:
Strongly Disagree Somewhat Disagree Neutral

Somewhat Agree Strongly Agree
4. Employees in this Show room have the knowledge to answer
customer questions:
69
5. The behavior of employees in this Show room instill confidence in

customers

6. Employees in this Show room give prompt service to customers:

7. This Show room gives customers individual attention:

8. When a customer has a problem, this Show room shows a sincere
interest in solving it:

9. This Show room provides plenty of convenient parking for customers:

10. This Show room has operating hours convenient to all their
customers:
70
BIBILIOGRAPHY
S.No. AUTHOR NAME REFERED BOOKS
1. PHILLIP KOTLER Principles of Marketing 11th Edition

Prentice Hall India.
2. PHILLIP KOTLAR Marketing Management Millennium

Edition.Prentice Hall India
3. V.S.RAMASWAMY & Marketing Management -7th Edition

NAMAKUMARI Millennium India Ltd.
WEB SITES
www.google.com
www.hyundai.com
www.autoindia.com
www.customersopt.org
71

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PROJECT REPORT

ROLL NO.: 1305020036

SUBMITTED IN PARTIAL FULFILLMENT OF THE

MASTERS DEGREE IN BUSINESS

SIKKIM MANIPAL UNIVERSITY-DE

I, the undersigned, hereby declare that the project report entitled

CUSTOMER PERCEPTION carried out at HYUNDAI. Is my original

work written and submitted by me in partial fulfillment of Master`s Degree

in Business Administration of SIKKIM MANIPAL UNIVERSITY-DE. I

Date: Candidate Name

I take this opportunity to extend my profound thanks and deep sense

of gratitude to the authorities of HYUNDAI. For giving me the opportunity

to undertake this project work in their esteemed organization. I profusely

thank Mr. VIKAS CHAUHAN (Asst.Manager).

My sincere thanks to my project guide Mr. JAHANGEER ALAM. For

the kind encouragement and constant support extended in completion of this

project work. From the bottom of my heart

I am also thankful to all those who have incidentally helped me,

Scope of the Study

Changing Product Strategies

Customer Preferences: Fluctuations in the cost of materials, new application

Scope of the study

OBJECTIVES OF THE STUDY

To know Show room convenience to move around the Show room.

To know the Show room management is immediately responding to customers

One of the important tools for conducting marketing researching is the

A survey is a complete operation, which requires some technical knowledge survey

RANDOM SAMPLING METHOD

A Questionnaire is carefully completed logical sequence of question directed to a

OPEN ENDED QUESTIONS:

CLOSED ENDED QUESTIONS:

sometimes they restrict the respondents choices.

TYPES OF CLOSED ENDED QUESTIONS:

DICHOTAMS: a question offering two answers choice.

MULTIPLE CHOICE: a question offering three choices.

RATING SCALE: a scale that rates some attributes from poor to

The whole project research was confined to only customers of HYUNDAI

Two types of consciousness are considerable regarding perception: phenomenal (any

Passive perception (conceived by Ren Descartes) can be surmised as the following

Perception and reality

This confusing ambiguity of perception is exploited in human technologies such as

An ecological understanding of perception derived from Gibson's early work is that of

Glasersfeld considers an "invariant" as a target to be homed in upon, and a pragmatic

A mathematical theory of perception-in-action has been devised and investigated in many

In this situation the development of a strong relationship between customers and a

How other customers or influencing groups perceive the product or brand

Responsiveness and service quality of any affiliates, e.g. distribution partners

Positive effects of increasing market share on customer perception

Negative effects of increasing market share on customer perception

The backbone of any customer perception management and measurement system,

Of course, as with any market research activities, it should be based on a careful

A commonplace strategy to circumvent the loss of exclusivity associated with high

In situations in which customers perceive high market shares lead as a sign of

It is advisable to contact customers who indicate low results for loyalty or

Thus, perception in humans describes the process whereby sensory stimulation is

Historically, systematic thought about perceiving was the province of philosophy.

As a scientific enterprise, however, the investigation of perception has especially

Such fundamental philosophical assertions as the existence of a physical world, however,

Sources of information include:

The selective perception process

Selective exposure consumers select which promotional messages they will

Consumer behaviour is influenced by: demographics, psychographics (lifestyle),

Consumer behaviour is influenced by: culture, sub-culture, locality, royalty, ethnicity,