CHAPTER-1

Within the broad framework of marketing, consumer behavior is

the most interesting area and one complexity of behavior, however,
varies with the nature of the product and need.

Traditionally financial institutions have enjoyed an enviable

position where they were faced with little competition. But in an
increasingly competitive financial services arena, these traditional
advantages have virtually disappeared. As the entry barriers in terms of
regulatory restrictions have decreased, making it easier for new firms to
enter, consumer are presented with plethora of options from both
traditional and non-traditional players. Due to increased competition,
product or service innovations have ceased to be a sustainable source
of differentiation. In such a scenario, competition often revolves around
price, thus depressing the margins for all the players in the industry.

Many Indian companies espouses a “Satisfied Customer

philosophy” very little has been done to advance the concept of
customers’ satisfaction, its usefulness as an operational variable. It is a
growing concern among Indian businesses because of improved
civilization, infrastructure, education and consumer awareness
demanding better value for money. Customer focus and satisfaction is a
driving force for originations gearing up for surviving or thriving in the
twenty-first century. Therefore the study focused on customer
satisfaction in Gulbarga district for Cholamandalam Investment and
Finance Company Ltd. to achieve following objectives were framed for
study.

1
1.2 OBJECTIVES

 To find out customers attitude and preference towards

Cholamandalam Investment and Finance Company Ltd. services.

 To identify the factors influencing the customer in the selection of

financial companies.

 To study customers satisfaction level towards Cholamandalam

Investment and Finance Company Ltd. Services.

 To discuss various approaches in making Cholamandalam

Investment and Finance Company Ltd. more friendly.

2
 1.3 Research Methodology

1.3.1 Design of the study:

This study is exploratory in nature. However, both the qualitative and
quantitative data are marshaled to support the assumptions made
with respect to “customer satisfaction in relation to the service
provided by Cholamandalam Investment and Finance Company
Ltd.”.
1.3.2 Sample
1.3.2.1 Selection of area:
Gulbarga, Shahabad, Wadi, Sedam and Chitapur were selected
as these areas had high density of customer are located.
1.3.2.2 Selection of sample:
The sample design for the study is random sampling method. It
was decided to study approximately 100 individuals. The respondents
were selected from Gulbarga district. Keeping in view the time and
resource available a sample size of 100 customers was contacted to get
the information. While selecting respondents a desirable efforts were
made to give a fair representation to this study.
Gulbarga = 76
Sedem =8
Chitapur =6
Wadi =5
Sahabad =5

1.3.3 Nature of data collection :

The major source of information for this study is primary and secondary
data. The researcher himself collected the information through
questionnaires. In order to accomplish the objective of the study, the
information is collected. In order to make the study effective and
representative, it is essential to select the sample in such a way that it
may be representative of the survey.

3
 After preparing the said questionnaire, keeping in view the
objectives of study were pre listed and then give final shape. In
questionnaire, forced-choice (yes /no) types of answer were elicited for
the collection of information related to respondent awareness level of
different finance company’s vehicle loan schemes. Different questions
were so arranged that field information is collected from the customers
on awareness of the financial company’s features, the duration of loan,
ranking was proposed for the best three features they would like a
financial service to have. After preparing the questionnaire and selecting
the respondents for the survey, it was thought best to get the
questionnaire filled by personally contacting the professional,
businessmen , agriculturalist, service men etc

The secondary data was analysed & used for companies profile,
literature review & theoretical background. Information was collected
through study of related journals, textbooks, use of internet through
relevant sights has also helped in updating the techniques followed for
customer’s satisfaction.

1.4 Tools of analysis :

Incomplete questionnaires were rejected. Each completed questionnaire
was categorized and each category was not only codified but also given
a particular number. These code numbers were then transferred to
tabulation sheets. Identical response were counted and placed in tabular
form. These tables were analyzed and interpreted.

To make things easier for interpretation of results weighted average,

ranking of factors were done.

4
1.4 SCOPE AND LIMITATION OF THE STUDY

The study was carried out to find out the quality of service provided by
Cholamandalam Investment and Finance Company Ltd. The study is
limited Gulbarga district. This study focuses on the customer satisfaction
level. The study is limited to those customers who have availed loan
from the Company. This study attempts to analyze the customer
perceptions on all such factors, which would be the base for the
customer satisfaction. Time was a major constraint that limited the study
for vehicle finance.

5
 1.5 Chapter scheme

The study of working capital has five chapters----

 The first chapter is introduction about the topic, its objectives, research

methodology, scope and limitation of the study and last chapter scheme.

 The second chapter is literature review and theoretical

background of Customer satisfaction.

 The third chapter gives history, profile, mission, objectives and company

profile of Cholamandalam Investment and Finance Company Ltd.

 The fourth chapter focuses on analysis and

interpretations of data.

 The fifth chapter concludes with findings, conclusion & suggestions.

CHAPTER-2

6
2.1 LITERTURE REVIEW:

Nigel Hill, John Brierley, & Rob Macdougall (1999) have written a
book relating to How to Measure Customer Satisfaction which is a
highly practical guide for developing and running an effective customer
satisfaction measurement (CSM) program. It says to be effective, a CSM
program must have all producer with accurate measures It helps the
readers to follow it step-by-step through designing and implementing a
CSM survey, highlighting blunders that are commonly made and
explaining how to make sure that the measures produced are accurate
and credible. It also covers ways of gaining understanding and
ownership of the CSM program throughout the organization, the second
key requirement for its long-term success. Finally, the relationship
between customer satisfaction and concepts such as loyalty and delight
are explored.
Finally it concludes that the success of the business is
underpinned by competitiveness and profitability, both of which are
maximized in the long run by doing best what matters most to
customers.

Derek Allen & Tanniru Rao (2000) gives a comprehensive guide to

multivariate statistical analysis in customer satisfaction, loyalty, and
service quality research. This book offers unprecedented insight into
the analysis of customer satisfaction data, providing an in-depth look at
customer satisfaction research, including a comprehensive overview of
sophisticated techniques, interpretation, and presentation of results.

Terry Vavra (2001), in his book “Customer Satisfaction Measurement

Simplified intends to address the practical questions of quality and
satisfaction professionals who need quick answers to specific issues,
and show how to implement an efficient measurement system. He

7
begins by demonstrating how to identify the requirements of the
customer, and then explains the best way to measure the level of
satisfaction, and finally how to analyze and report the data collected. He
adds that in the era of increased competition and globalize economies,
businesses are striving to find any point of uniqueness to distinguish
them from the competition. By effectively measuring customer
satisfaction levels, organizations can demonstrate how they differentiate
from the competition.

Aale Roos “How to Measure Customer Satisfaction” explains the

practical information the company need to define and measure the
satisfaction of help desk customers. He also provides advice on how to
report you findings to the help desk and upper management. At any help
desk, customer satisfaction is a key indicator of success. Though
customer satisfaction is easy to perceive, it is difficult to define and
sometimes even more difficult to measure

Terry G. Vavra, hardcover (1997) tries to answer any issue faced by

the customer satisfaction professional, the definitive book will help to
improve the structure and content of satisfaction program. He provides
the rationale, identifies specific opportunities, and suggests distinct
programs to improve the measurement of customer satisfaction in
organization. He states five critical skills that should be a part of
projects: i.e.
 Sampling and customer-participant selection
 Questionnaire design
 Interviewing and survey administration
 Data analysis
 Quality function deployment - building action plans.

Nigel Hill, Bill Self and Rob MacDougall (2000) offers guidance on
identifying customer requirements, and enhancing customer satisfaction
through continuous improvement. 25 include vital information on the

8
value of customer retention, sample questionnaire designs, and
conducting surveys, and further information on continuous improvement
and enhancing customer satisfaction.

Bob E. Hayes (1998) includes significant discussions of reliability

statistics for measuring questionnaire precision, as well as the statistical
framework for using satisfaction questionnaires. He explains about
Pinpoint customer exceptions,
Develop questions to measure whether they meeting these
expectations,
Customer satisfaction requirements,
To evaluate the reliability and validity of any questionnaire,
Use questionnaire data to monitor work processes, evaluate intervention
programs.

Frederick C. Van Bennekom (2002) “Customer surveying” guides

Service Managers is to effectively plan and manage a survey project. He
says it aim to provide the tools for the survey novice needs to collect real
and useful information about customers' perceptions of service quality.

Garry Schultz (2002) helps the executives and managers define,

create, and sustain a world-class customer contact center. He says
Customer satisfaction is essential to the success of any and all
businesses. At a time in which technological advances, cultural changes,
and escalating customer expectations have rendered post-sale customer
support more demanding than ever, the need for exemplary post-sale
services is greater than ever. He adds that ensuring all customer
interactions results in satisfaction, which is the core target of the
customer contact center.
Robert Spector & Patrick D. McCarthy (1995) Explaining how
Nordstrom’s unique customer service culture works, from the sales floor
to the executive suite, it reveal the customer service secrets behind a

9
retail legend. It provides managers with practical lessons on how to meet
the customer’s needs, and ensure customer satisfaction.

Frederik D. Wiersema (1998) offers advice based on years of

experience. With the short, accessible book, executives and
entrepreneurs alike will glean the tools and insights needed to create a
successful customer-oriented culture that is defined by service
excellence. It says, “No business can thrive without loyal, repeat
customers”.

Warren Blanding (1991) covers the development of standards and

procedures, measurements of quality performance and customer
satisfaction, complaint policies, and all aspects of the day-to-day
operations that are the essence of customer service

Frederick F. Reichheld & Thomas Teal (1996) reveals the secrets of

successful companies, which base their business strategies on loyal
relationships. He lays out the principles that connect value creation,
loyalty, growth, and profits, and shows how great companies have used
these principles to build loyal customers, loyal employees, and loyal
owners. U.S. corporations now lose half their customers in five years,
half their employees in four, and half their investors in one.

DC Gardner (1991) defines customer care and its importance, and

explains the main ingredients of a customer care programme. He
explains how to understand customers' needs and how to implement a
customer care programme, including defining objectives, designing the
programme and training your staff. Feedback techniques to sustain the
programme are set out, as are techniques to ensure the corporate
culture is customer-oriented.

10
Parimal Vyas (2000) customers’ satisfaction: as core competence
The author in his paper makes an attempt to deal with the core area of
business practices. The customers’ satisfaction philosophy calls for
strategic focus on the part of Indian companies in order to deliver real-
time, every-time customers’ satisfaction to their actual and potential
target prospects. It has been divided into several sections. It initiates
discussion with a brief review of marketing theory and practices in India.
In the introductory part, the central focus is on the concept of customers’
satisfaction in marketing theory. The next section deals with literature
review relating to concept and measurement of customers’ satisfaction.
A critical review of different theories has been made to study the
philosophy of customers ‘satisfaction. It goes further to highlight
customers’ satisfaction as an area of core competence, summarizes
benefits and comes to an end with brief sketch of its implications.

Ron Zemke, Thomas K. Connellan (2000) “e-Service” The author

Packed with ideas and solutions that readers can implement
immediately, e-Service explains how to: manage the customer's
psychological experience to strengthen brand image in the marketplace;
capture the right buyers--the ones who provide true profit--and earn their
iron-clad trust; recover from mistakes, using methods that not only retain
at-risk customers but turn them into your best publicists; design home
pages, order forms, and other visual elements that attract users rather
than frustrate them; and more.

Terry G. Vavra (1997) focuses on advanced issues such as complex

forms of analysis and interpretation, reporting, and international
surveying.

Derek Allen & Tanniru Rao (2000) focuses on advanced service for
quality managers and marketing researchers with more than a modest
exposure to statistical data analysis. While an overly technical treatment

11
of satisfaction data analysis and interpretation has been avoided as
much as possible, the objective was to demonstrate the power of a
variety of advanced statistical techniques

Atila Y¸ksel and Mike Rimmington (1998) explain how to measure

consumers` pre-event expectations to gauge ultimate customer
satisfaction. With results of reliability, multiple-regression, and correlation
Analyses. In conclusion he points out that If customers are nevertheless
satisfied despite the fact that the service experience did not fulfill their
initial expectations…. then the assumption that customers are perforce
dissatisfied when performance falls short of expectations is likely wrong.

Dr.Bhavnesh Kumar Grover (2000) in his article explains “strategic

marketing through customer service” increasing competitive market
places; best-practice organization demonstrated clear benefit of focusing
on the customer. He says Excellent service enable business to: 1)
Differentiate themselves from the competition 2) Improve their image in
the eyes of the customer 3) Minimize price sensitivity 4) Increase
customer satisfaction 5) Encourage employee participation 6) Create a
reputation for being a caring, customer-oriented company.
Author has discussed the steps needed to create a customer-
focused culture. The need to include customer service in the originations
key objectives has been stressed. Managers are the key to the
successful implementation of the strategy

Dr. Gurmeet Singh, Mr. Amrik Singh Sudam, (2002) reveals that in the
modern era of globalized competition the multi national concerns are
striving hard to sell their products almost all countries. So, advertisement
is the best way to impact the consumer attitude.

Dr. (Mrs.) D. Kamalaveni, Ms. M Nirmala, (2000) reveals that Indian

consumers are showing a strong interest in new, good quality products.

12
As a result a number of Indian companies have given birth to new
brands of products coupled with the entry of many multinational
corporations. So, while selling the product, educating customer is the
key and any purchase decision is likely to be influenced by family
members, friends, doctor’s advertisements etc.

Dr. Mallikarjun Reddy, “Marketing Strategy: linkage with customer

behavior” (2002)
The author explains about the flurry of business activity and
growing competition in all segments of the consumer products have
made strategic marketing an inevitable marketing approach. Secondly,
market strategies were made by all commercial enterprises keeping the
customer behavior inputs on top of the agenda. As a result customers’
research had acquired new importance in the field of marketing
research.

CHAPTER-II

13
2.2 THEORETICAL BACKGROUND

CUSTOMER SATISFACTION
In general Satisfaction is a person’s feeling of pleasure or
disappointment resulting from comparing a products perceived
performance (or out come) in relation to his/her expectations. If the
performance falls short of expectations, the customer is dissatisfied. Is
the performance match the expectations, the customer is satisfied.

Customer Satisfaction in Services

The primary objective of service producers and marketers is identical to
that of all markets: to develop and provide offering that satisfy consumer
needs and expectations, thereby ensuring their own economic survival.
In other words, service marketers need to be able to close the customer
gap between expectations and perceptions. To achieve this object,
service providers need to understand how consumers choose and
evaluating their services offerings. Unfortunately, most of what is known
about consumer evaluation processes pertains specifically to goods. The
assumption appears to be that services, if not identical to goods, are at
least similar enough in the consumer’s mind that they are choose and
evaluate in the same manner.

Means that satisfaction is the customer’s evaluation of a product or

service in term of whether that product or service has met their needs
and expectations. Failure to meet needs and expectations is assumed to
result in dissatisfaction with the product or service.
In addition to a sense of fulfillment in the knowledge that one’s needs
have been met, satisfaction can also be related to other types of
feelings, depending on the particular context or type of service.
It is also important to recognize that although we tend to measure
consumer satisfaction at a particular point in time as if it were static,
satisfaction is a dynamic, moving target that may evolve over time,

14
influenced by a variety of factors. Particularly when the service
experience takes place over time, satisfaction may be highly variable
depending on which point in the usage or experience cycle one is
focusing on. Similarly, in the case of very new service or a service not
previously experienced, customer expectations may be barely forming at
the point of initial purchase; these expectations will solidify as the
process unfold and the consumer begins to form his or her perceptions.
Through the service cycle the consumer may have a variety of different
experiences-some good, some not good- and each will ultimately impact
satisfaction.
Customer satisfaction is influenced by specific product or service
features and by perceptions of quality as suggested. Satisfaction is
also influenced by customers’ emotional responses, their attributions,
and their perceptions of equity.
Product and Service Features Customer satisfaction with a
product or service is influenced significantly by the customer’s
evaluation of product or service features.
In conducting satisfaction studies, most firm ill determine through
some means (often focus groups) what the important features and
attributes are for their service and then measure perceptions of those
features as well as overall service satisfaction.
Customers’ emotions can also affect their perceptions of
satisfaction with products and services. Theses emotions can be
stable, preexisting emotions.
Specific emotions may also be induced by the consumption
experience itself, influencing a consumer’s satisfaction with the
service.
Attributions-the perceived causes of events- influence perceptions
of satisfaction as well. When they have been surprised by an
outcome (the service is either much better or much worse than
expected), consumers tend to look for the reasons, and their
assessments of the reasons can influence their satisfaction.

15
 A customer satisfaction is also influenced by the perceptions of
equity and fairness. In addition to product and service features and
one’s own individual feelings and beliefs, other people often influence
consumer satisfaction.
Service quality will be the dominant element in the customers’
evaluations. In cases where customer service or services are offered
in combination with a physical product, service quality may be very
critical in determining customers’ satisfactions.

 Reliability: ability to perform the promised service

dependably and accurately.
 Assurance employee’s knowledge and courtesy and their
ability to inspire trust and confidence.
 Empathy caring individualized attention given to
customers.
 Tangibles: appearance of physical facilities, equipment,
personnel, and written materials.
Responsiveness: willingness to help customers and provide prompt
service.

Reability is defined as the ability to perform the promised service

dependably and accurately. In its broadest sense, reability means that
the company delivers on its promise-promise about delivery, service
provisions, problems resolutions and pricing. Customer want to do
business with the companies that keep their promises, particularly their
promises about the service out comes and core service attributes.
Assurances are defined as employee’s knowledge and courtesy and
the ability of the firm and its employee to inspire trust and confidence.
This dimension is likely to be particularly important for services that the
customer perceives as involving high risk and /or about which the feel
uncertain about their ability to evaluate outcomes-for example banking,
insurance, brokerage, medicals and legal service.

16
 Empathy is defined as the caring, individualized attention the firm
provides its customers. The essence of the empathy is conveying,
through personalized or customized service, those customers are unique
and special. Customers want to feel understood by and important to firm
that provides service to them.

Tangibles are defined as the appearance of physical facilities,

equipment, personnel and communication material. All of these provide
physical representation or image of the service that customer,
particularly new customers, will use to evaluate quality. Service
industries that emphasize tangible in their strategies include hospitality
service where the customer visits the establishment to receive the
service, such as restaurants and hotels, retails stores, and entertainment
companies.
Responsiveness is the willingness to help customers and to provide
prompt service. This dimension emphasizes attentiveness and
promptness in dealing with customer requests, questions, complaints,
and problems. Responsiveness is communicated to customers by the
length of time they have to wait for assistance, answers to questions, or
attentions to problem. Responsiveness also captures the notion of
flexibility and ability to customize the service to customer needs.

Definition of customer service:

“Every interaction, on the part of every employee, which proves to your

customers that they made a good choice.

Important of customer satisfaction

Customer satisfaction is a marketing tool and a definite value added

benefit.
Customers often perceive customer satisfaction as important as the
primary product or service your organization offers.

17
Begin with a solid foundation.

A customer satisfaction mission statement.

Empowered team members who can make decisions and who

take personal responsibility to ensure customer satisfaction.

Four steps to ensure customer satisfaction:

1. Always create a good first impression, in person and on the

phone
2. Communicate effectively (listen and ask questions) and give each
customer your full attention
3. Handle each transaction fast, accurately, and professionally
4. Thank each customer for the opportunity to serve them and make
sure they are completely satisfied

Impress Customers With Your People Skills:

Treat all customers with respect and dignity.

Develop a pleasant and positive attitude.

Demonstrate your personal commitment to help them by

being punctual and keeping your promises.

Perception

As diverse individuals, we all tend to see the world in our own special
was. Four people can view the same event at the, and each will report in
total honesty a story different from all the others

Reality to an individual is merely that individual’s perception of

what is “out there” of what has taken place. Individuals act and react on
the basis of their perceptions, not on the basis of objective reality. Thus,

18
to the marketer, consumer’s perception are much more important than
their knowledge of objective reality. For if one thinks about it, it’s not
what actually is so, but consumers think is so, that effects their actions,
their buying habits, their leisure habits, and so fourth and, because
individuals make decisions and take action based on what they perceive
to be reality, it is important that markets understand the whole notion of
perception and its related conception, so they can more readily
determine what factors influence consumers to buy.
Perception can be described as “how we see the world around us
“. Two individuals may be subject to the stimuli under the same apparent
condition, but how each person recognizes them, selects them and
interprets them is a highly individual process based on each person’s
own need, values and expectations.

Perception is defined as the process by which an individual

selects, organizes and interprets stimuli into a meaningful and coherent
picture of the world. A stimulus us any unit of input to any of the senses.
Examples of stimuli (i.e., sensory input) include products, packages
brand names, advertisements and commercials. Sensory receptors are
the human ages, (i.e., the sensory input) included products, packages
brand names, advertisement, and commercials. Sensory reporters are
the human ages (e I the eyes, nose, mouth, and skin) that receive
sensory inputs. Their sensory functions are to see, hear, smell, test, or
feel. All of these functions are called into play either singly or in
combination in the evaluation and us of most consumer products.
Perceptual Mapping
Beginning very recently, some of the knowledge in perception
from the field of psychology has been applied rather ingeniously to
marketing problems by the use of complex computer technology. Volney
steffire first introduced the technique to marketing with the claim that it
can estimate the share of consumer choices that a new brand will

19
estimate the patterns of substitution and competition that will exist after
the new brand is introduced.

The psychological logic behind the methodology is quite simple

and yet very powerful: “An individual will behave toward a new thing in a
manner that is similar to the way he behaves toward other things he
sees the new thing as being similar to “. In other words, as a new
product or brand is introduced, the consumer will perceive it as being
either similar or dissimilar to other exiting brands on several dimensions.

Since products may be perceived to vary on several dimensions

and, in fact, the consumers may not be consciously aware of the
dimensions or the interactions scaling have been used both to identify
the perceptual maps of consumer as well as to help in identifying and
labeling the dimensions.

The computer programs will provide the geometric distance

between brands in several dimensional spaces. It is then up to the
researcher to place labels on the variables. In the in figure the
researcher chose to name his dimensions “popular price –high quality”
and “light-heavy.” If these data are accurate, we can assume that brand
X will compete with Schliz and Budweiser and have much less
competitive effect on Blatz and Miller.

20
 The method is useful not for new product opportunities but can be
most useful in product and promotion strategies. It can help the seller
determine whether consumers have a similar or dispersed image of his
brand, aid him in knowing what the image of his brand is, and indicate
how he may go about changing it if he wishes.

CHAPTER-3

21
COMPANY PROFILE
3.1 About Cholamandalam

Cholamandalam Investment & Finance Company Limited is the financial

services arm of the USD 880 million Murugappa Group.

Incorporated in 1978, it is one of the leading Financial Services

Company in the country. The products and services include vehicle
finance, capital market finance, mutual funds, securities broking,
depository services, insurance and distribution services.

Cholamandalam made its foray into vehicle finance in mid 90's and has
built a strong portfolio over the years. The product portfolio includes
Commercial Vehicle finance, Car Finance, Two wheeler finance &
Personal Finance.

Cholamandalam Asset Management Company Limited established in

1995 offers mutual fund products under the various schemes including-
Income Scheme, Growth Scheme and Liquid Scheme. Cholamandalam
Securities Limited, a corporate member with the National Stock
Exchange (NSE), The Stock Exchange, Mumbai (BSE) and Madras
Stock Exchange (MSE), offers stock broking for individuals and
institutions and depository services under one roof.

Cholamandalam Distribution Services Limited was established in

September, 2000 with the objective of rendering independent Financial
Planning solutions to Individuals and other entities. In the course of
providing its services, CDS works with issuers of Financial Assets like
Mutual Funds, Listed Companies, Financial Institutions and Insurance
Companies to offer customized solutions.

Cholamandalam, which currently has significant presence in a range of

products and services, has drawn up plans to emerge as one of the

22
leading holistic financial services provider in the country. Towards this,
the Company is pursuing aggressive growth in its various product lines
and expanding geographic coverage to leverage its customer base.

3.2 History

Owing to Murugappa Group's pre-eminent position in the industry and

the consumer equity that it had painstakingly built, the horizon offered
opportunities in the financial sector. To harness this, the group set up
Cholamandalam Investment and Finance Company Limited in 1978 with
the primary objective of offering asset finance through leasing and hire
purchase to corporate and then to retail customers. It has since evolved
itself into a large, composite financial services organization. Today,
Cholamandalam comprises not only the original flagship company, but
also several financial solutions companies offering stock broking, mutual
funds, investment advisory services and risk management and
consultancy services.

Ever since its inception and all through its growth, the company has kept
a clear sight of its values. The basic tenet of these values is a strict
adherence to ethics and a responsibility to all those who come within its
corporate ambit - customers, shareholders, employees and society

Subsidiaries

Cholamandalam Securities Ltd. - Cholasec provides stock broking and

depositary services and backs up investment decisions with quality
research and value added investment advisory services. For further
details, visit us at www.chola-sec.com.

Cholamandalam AMC Ltd. (CAMC) - Until recently, a joint venture of

Cholamandalam Investment and Finance Co. Ltd. and the UK based
Cazenove Fund Management Limited, the company is today fully owned
by Cholamandalam. It manages several domestic mutual funds and is

23
also an advisor to the Cazenove Indian Portfolio, an offshore fund. For
further information, visit us at www.cholamutual.com.

Cholamandalam Distribution Services Ltd., a distributor of financial

products, offers investment advisory services. Your goals are matched
with the various available investment options and we give you the
investment option that's best suited for you and your family. For further
information, visit us at www.rupeelane.com.

Cholamandalam AXA Risk Services Ltd. (CARSL) offers specialized risk

services to the Indian industry and multinational companies in India and
Asia.

Management

Cholamandalam, in its efforts to pursue principles of corporate

governance, is governed by a statutory board of the company which has
entrusted the responsibility of managing the operations of this company
to a professional Managing Director. He in turn, has a team of
independent professional managers to take the company to great
heights. This harmonious and professional outlook has emerged as a big
factor in support of Cholamandalam becoming a dominant player in the
industry today.

The various business divisions (Strategic Business Units) of the

company are managed by Business Heads who report to the Managing
Director. These Business Heads form part of the Business Group
Managing Committee (BGMC), which meets once every month to
discuss strategic issues and monitor progress.

The Murugappa Group

24
Founded by Diwan Bahadur A.M.Murugappa Chettiar in the 1930s, the
group has transformed itself from its original avatar of an indigenous
banker into a large diversified business group with wide industrial
interests:

 plantations to chemicals financial services to abrasives

 with focused commitment towards the farm sector (fertilizers,
pesticides, sugar)
 with products that delight children - the Parry's toffee to
sophisticated value added chains for the most advanced
machines
 from being pioneers in providing Indians with wheels (Hercules,
Phillips, BSA cycles) to being an international leader in pioneering
neem based applications.

The Group has grown rapidly over the last 15 years through synergistic
acquisitions and expansions. The Group's name is derived from its
visionary founder, Sri A.M.M.Murugappa Chettiar. The Group is
organized into 27 Strategic Business Units (SBUs) spanning several unit
companies , with 38 manufacturing locations spread over 11 States of
India and a wide network of branches, distributors and dealers
throughout the country. It employs 23,500 people and the present
turnover is USD 880 million.

The Group's Values and Beliefs are firmly rooted in the philosophy enunciated
by the Arthashastra, the ancient Indian treatise on economic and political
wisdom:

"The fundamental principle of economic activity is that no man;

you transact with will lose; then you shall not."

25
The Murugappa Group Companies

Carborundum Universal Ltd. Cholamandalam Investment and Finance

Co. Ltd.
Abrasives, Refractories, Electro
minerals, Industrial Ceramics Vehicle Loans, Fixed deposits and
Capital market finance.
Cholamandalam AMC Ltd. Cholamandalam Securities Ltd.

Mutual Funds Securities Broking

Cholamandalam Distribution EID Parry (India) Ltd.
Services
Fertilizers, Pesticides, Seeds, sugar,
Chemicals, Bio-products (Neem
Distribution of Mutual Funds, IPOs, Pesticides, Organic manure), Sanitary
Bonds and Fixed Deposits ware & Allied Products
Cholamandalam AXA Risk Coromandel Fertilizers Ltd.
Services Ltd.
Fertilizers
Risk Management Consultancy
Parrys Confectionery Ltd. Parry Agro Industries Ltd.

Toffees, Hardboiled Candies Spirulina and carotene based nutritional

supplements, Tea, Coffee
TI Diamond Chain Ltd. Tube Investments of India Ltd.

Automotive,Industrial Bicycles, Bicycle Components, Cold Roll

& Agricultural Chains Formed Products, High Frequency
Welded Cold Drawn Welded Tubes, Cold
Rolled Close Annealed Strips
Wendt(India) Ltd. Cholamandalam General Insurance Ltd.

Super Abrasive Grinding Motor Insurance, Health, Home

Wheels & Tools Insurance, Fire Insurance, Burglary,

26
 Baggage Insurance, Marine Insurance,
etc.

The Murugappa Group - A Philanthropic Bent of Mind,

The group has made valuable contributions in education, healthcare & rural
development. The group runs schools, polytechnics and hospitals under the
auspices of AMM Foundation. The group's polytechnic institute has won
appreciation and grants from the Government of India and the World Bank.
The welfare programmes of the group benefit thousands of families in both
urban and rural India.

3.3 VEHICLE FINANCE

Credit Cars

Getting a loan when you come to Cholamandalam is the truly one-stop

way to finance your dream car. At Cholamandalam we make financing
fast and easy. If you want a loan, we can help you. We also give up to
100% finance under specified schemes. Loan is available for our
customers up to 5 years for new cars and 3 years for old cars

Used Cars

We maintain a database of car owners wishing to sell their

cars. This database is used to search for a car meeting our
client's requirements. If the requirements are met we
introduce the buyer to the seller. This service is free of
charge. This database contains the following information:

 Owner's name
 Address
 Telephone numbers
 Car make

27
  Car model (year of manufacture)
 Distance run
 Number of prior owners
 Color
 General condition of the car
 Price expected
 Remarks
Documents Required
Salaried professionals
 Form 16 or IT Return
Income
for the last 2 years
proof
and latest salary slip.
 Residence: Ration
card/ passport/ credit-
card / driving license,
telephone bill
 Office: Certificate of
employment by the
employer indicating
date of joining.
Photograph Duly signed on the back Duly
side by the customer.
28
Self employed
 Audited balance sheet
and P& L account for the
last 2 years or IT returns
for the last 2 years duly
signed by hirer.
 Residence: Ration card/
passport/ property tax
receipt/ driving license/
telephone bill Office :
Sales tax registration/
shops & establishment
registration/ property tax
receipt/ lease deed/
telephone bill/ photo-
graph of office exterior.
signed by the
proprietor on the reverse or
any other public document
like ration card , driving
 license, voter id , passport
etc with hirer photo.

PDCS For the entire tenure for For the entire tenure.
payment of EMIS.

Insurance For the entire tenure of For the entire tenure of

Cheques transaction transaction

Application Completely filled and duly Duly signed by the hirer and
form signed by the hirer/ guarantor
gurantor

Signature From the bank on which From the bank on which the
Verification the PDCS are issued PDCS are issued

Truck Finance

Commercial Vehicle Finance is offered both for new and used heavy and
light commercial vehicles. 'TRUCK FINANCE' is the brand name for
financing new commercial vehicles.

 Finance is available for all heavy and light commercial vehicles

from Telco, Ashok Leyland, Mahindra and Mahindra, Swaraj
Mazda, Eicher, Bajaj Tempo and other companies.
 Finance is provided for a maximum duration of three years

Two Wheeler Finance

Cholamandalam, now, offers easy and convenient finance options for

buying two wheelers. You can buy your favorite Motor cycles, scooters
and mopeds with "Two Wheeler Credit "from Cholamandalam. Buying a
two wheeler has never been so easy and convenient.

29
Eligibility

If you are Salaried or Self employed with the following you become
eligible for funding :

a) Minimum age of 28 and Maximum of 58 years

b) Gross Monthly Income of Minimum Rs 3000/-

c) Phone at office or residence

Repayment

You can choose your convenient option of repaying the loan in 12, 18,
24, 30 or 36 months through the post dated cheques drawn in favour of
Cholamandalam Investment and Finance Co. Ltd.

Prepayment
If you wish to preclose the loan, it is possible by paying the principal
amount as of date along with a normal preclosure charges of 3%.

Documents to be submitted

30
 Salaried Self employed
Proof of Income & Latest IT Returns &
Latest Salary slip
Computation Computation
Passport
Ration Card Passport
Residence Proof (Any Driving License Ration Card

One) Credit Card Driving License

Credit Card Statement
Statement Telephone Bill
Telephone Bill
Latest 3 months Latest 3 months
Bank Statement
transaction transaction
Of applicant and co Of applicant and co
Photograph
applicant applicant

Asset Scheme

If you either own a house or an agricultural property, you can avail

finance for your two wheeler. Just show your property proof, telephone
bill and last 3 months banks statement and get your two wheeler loan
approved

Green Channel

All you need is a identity proof and residence proof and pay a margin of
30% of the vehicle. The loan gets processed based only on these two
documents.

Processing fee

Processing fee of 2% of loan amount or Rs 500 whichever is higher

becomes applicable. Credit at the sole discretion of Cholamandalam
Investment and finance co ltd.
Personal Finance

"COMFORT" RANGE OF PRODUCTS

31
You are an existing customer of Cholamandalam and have already
availed a loan from us for any of our products like Cars/LCVs/Trucks.
You have paid all your installments in time for six months you, now are
eligible for host of other Comfort range of products, including a no
question asked, pre - approved personal loan. You can use the loan to
buy things that you have always wanted to buy and we will be glad that
we have been able to help you in it. Go ahead and fulfill your dreams.
We are right behind you!

1. Can I apply for this loan?

2. What can I use this money for?
3. What amount will I be given?
4. What will be the tenure of the loan?
5. What will be due date for my installment?
6. Can I authorize payment to third party?
7. Can I preclose the loan ?
8. Is this loan related to my earlier vehicle loan?
9. What documents do I give ?

Can I apply for this loan?

No. This loan is a pre - approved loan offered only to preferred

customers of Cholamandalam If you are one among them you will
receive a letter mentioning the amount you are eligible. You can draw
this amount just by filling up the letter and sending it across to us. Our
representative will deliver the cheque to you.

What can I use this money for?

You can use this money to buy Jewellery, Furniture, Durables and just
whatever he can dream of. We will also be offering range of products like
Consumer Durables. Two wheelers, AC etc. under this scheme, with
special tie up with manufacturers. These product will come to you with
attractive features and special interest rate exclusively for you. You are

32
our privileged customer and we want to be of more help to you than ever
before

What amount will I be given?

Once you become eligible for the loan you will receive a letter from us
mentioning the amount and tenure. You could choose your requirement
within the maximum eligibility. The Amount to be processed depends on
the choice of amount (in multiples of 1000) and tenure. The cheque
would be prepared after deducting the first installment and 1% Service
charges.

What will be the tenure of the loan?

The tenure of the loan ranges from 12, 18, 24, 30 or 36 months
depending upon the convenience, but within the maximum tenure
prescribed in the Invitation letter.

Repayments

Repayments can be by the way of Post dated Cheques favoring

Cholamandalam Investment and finance co ltd . Still better, you could
opt for Electronic Clearing Service -Debit clearing which is a service
extended by RBI whereby the customer can pay all his installments by
authorizing the finance company to debit his account on the due date.

All you need to opt for this service is to fill in the mandate form and get it
signed by the banker and hand over the same to us with an undated
cheque for the installment amount. Upon successful repayment of all
installments through Electronic Debit clearing service, the undated
cheques would be returned to you.

What will be due date for my installment?

33
For all loans disbursed between the first and fifteenth of the month 7th of
that month will be the installment due date and loans disbursed between
Sixteenth and End of the month , 20th will be the due date.

Can I authorize payment to third party?

Yes You can. All you have to do is to attach an authorization letter and
send it to us along with the invitation letter.

Can I preclose the loan?

Yes The loan can be closed anytime as you wish , just by repaying the
principal outstanding together with 3% preclosure fees.

Is this loan related to my earlier vehicle loan?

Yes

What documents do I give?

Just sign the agreement to be provided by our representative and

provide us with post date cheques for the future installments

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

4.1 Demographic profile

Personal profile No. Of respondents

34
20 to 30 O7 (7)
31 to 40 83(83)
41 to 50 10(10)
51 & above 0

Education level
PUC 48(48)
Degree 35(35)
P.G 08(8)
Professional 09(9)

Occupation
Business 35(35)
Agriculture 45(45)
Others 20(20)

Annual income of respondent

Less then 50000 03(3)
50000 to 1lakh 49(49)
1 lakh to 1.5 lakhs 43(43)
1.5 lakhs to 2 lakhs 03(3)
More then 2 lakhs 02(2)
Source: Field Survey Figures in parenthesis are percentages

The respondents belong to the age group of 20-50 years of which

83 percent belong to age group 31-40 years.

In case of education of respondents it leveled from PUC to professional.

9 percent of respondents were professionals, 8 percent respondents
were postgraduates were graduate and 48 percent were well educated
up to PUC. 45 percent of respondents were from agricultural
background, 35 percent were businessmen and 20 percent were from
government and Private (Service Sector)

Most of the respondents were earning an annual income of 50000

to one lakh (49 percent) and 1lakh to 1.5 lakh (43 percent), followed by

35
less then 50000 (3percent), 1.5 lakh to 2 lakh (3percent) and more then
2lakh (2percent).

The summary of demographic details of respondent of Gulbarga

district coving Sedam, Wadi Chitapur, Shahabad is presented in table
4.1 it is evident from the table that most respondents selected for the
study belonged to the age group of 31 to 40 and 41 to 50 i.e. 83 percent
and 10 percent respectively.

In the field of education, the respondents with post graduate and

professional accounted for 8 percent and 9 percent respectively followed
by graduate and PUC i.e. 35 percent and 48 percent .it is observed that
majority of respondent were plus two.

The respondent’s occupation of the selected Gulbarga district

exhibits that the majority of the respondents 45 percent were agriculturist
(farmers), followed by businessmen (35 percent) and 20percent were
others i.e. in govt. and private services. The average annual income of
respondents in Gulbarga district were in the category of 50000 to 1 lakh
i.e. 49 percent followed by 1lakh to 1.5 lakh 43 percent.
The graphic illustrations on various demographic illustrations on various
demographic aspects are present from figure 4.1.I to 4.1.VI.

4.1. II. Graph showing respondent’s Age group

36
Source: Field Survey

4.1. I. Graph showing respondents qualification

37
 Source: Field Survey

4.1. III. Graph showing respondents occupation

38
 Source: Field Survey

4.1. VI. Graph showing respondent’s Annual income

39
Source: Field Survey

40
4.2 Graph showing how respondents have responded
for purchase of vehicle:

100
17
90
80 6
70
60
50 100
40 77
30
20
10
0 0
Loan cash
Bank Finance services Own Relatives Others

Source: Field Survey

From the above graph it is observed that 100 percent of

respondents have taken loan through financial services of which 77
percent have paid one fourth of the total amount (as a rule) from their
own pockets while 6 percent took help of relatives to cover up that
amount and 17percent got it from other sources like friends and dealers.

41
4.3 Graph showing recalls rates of the respondents
towards auto finance companies

Graph showing the awareness of

respondents of Finance companies

100 87 86
90
No. of Respondents

80
70
56
60 48
50
40
30 23
20
10
0
am

k
O

am

rs
ho
C

e
ar

ir

th
IF

As
nd

O
Sr
C

Su

Auto Finance companies

Source: Field Survey

When the respondents were asked to recall any 3-auto finance

companies. Ashok Leyland finance company. Sundaram finance
company was rated first and second as 87 & 86 respectively and
followed by Cholamandalam Investment and Finance Company ltd., Sri
Ram finance and others i.e. 56, 48 &23 respectively.

42
4.4 Pie chart showing respondents awareness towards
Cholamandalam Investment and Finance Company
ltd.

Source: Field Survey

Pie chart showing the awareness level of Cholamandalam

Investment and Finance Company ltd. The respondent said that they
were about this finance company through Friends (63percent) followed
by advertisements, relatives (25percent, 5percent) respectively and
others like dealers 7percent.

43
4.5 Doughnut chart showing the factors that influenced
respondent to avail loan from Cholamandalam
Investment and Finance Company ltd.

Source: Field Survey

44
 The above doughnut chart show ranking the factors, where 1 was
given highest rank and 5 was lowest rank. For this 5 points were given
for 1st ranking, followed by 4, 3, 2, and 1 for the 5 th ranking. The
respondent rankings were multiplied by weights to get result. The
following are result.

31 percent respondents have ranked attractive rates of interest as

their first choice, which influence them to opt for Cholamandalam
Investment and Finance Company ltd. 25 percent respondents have
ranked simple procedure as their second choice followed by reputation
of the company and reference from vehicle dealers as third and fourth
with 13 and 10 percent. In fifth and sixth rank said nearness to the
branch and advice from friends/relatives (7 and 6 percent). Last seventh;
eighth and ninth rank was given for persuasion from the company
representative, dearness to financial companies’ manager and absence
of other company/no knowledge about the other finance company.

45
4.6 Graph showing respondent opinion on the features
for vehicle finance

Source: Field Survey

In this case the respondents were asked to rank any three

features, which they felt are more important that vehicle finance
company should take care of. They were given five options such as
flexibility, low interest, 100 percent finance, easy procedure and less
documentation.
From the above histogram it is quite clear that the respondent
have rated Low Interest (87), Easy procedures (74) as first and second
choice while Flexibility and 100 percent finance (57 each) were ranked
third. It is observed that the respondents have given very less
importance to documentation (25)

46
4.7 Graph showing about respondents availed loan
from any other company in past

Source: Field Survey

Graph showing only 1 percent of Respondents has Availed loan in

past and remaining 99 percent of respondents has not Availed loan in
past.

47
4.8 Graph showing respondent’s awareness as to whether
any one known to them has taken loan from other
company

Source: Field Survey

Graph showing only 5 percent respondents knew about the

persons who had taken loan from other companies (i.e. Ashok finance
company and Sundarm finance company.) and remaining 95 percent
don’t know.

48
4.9 Graph showing respondent’s opinion in following
matters:

Source: Field Survey

A) Nowadays all finance co. are coming up with innovative loan scheme
B) There is no much difference between loan schemes of finance
companies.

In this case the respondents were asked to give their opinion on

the above said matter.

A) 94 percent of Respondents had accepted that “Now a days

all finance companies are coming up with innovative loan
schemes” and remaining 6 percent said no as they are not aware
of it.

B) 81percent of Respondents had accepted with “there is no much

difference between loan schemes of finance companies” and
remaining 19percent did not accept.

49
10 Graph indicated how long respondent were associated
with this company

Source: Field Survey

In the above graph the respondents were asked as to how long

they were associated with Cholamandalam Investment and Finance
Company ltd.

88 percent respondents are dealing with Cholamandalam

Investment and Finance Company ltd. is less than a year and remaining
12 percent of respondents from 1 to 3 years.

50
4.11 Graph showing whether respondent had changed
their finance options

Source: Field Survey

In this case the respondents were asked whether in any condition

they felt or have changed for any other financial institutions.

The graph indicate that only 3 percent respondents were of the

opinion that if given a second chance they would like to opt for other
financial institution while 97 percent were satisfied with Cholomandalam
Investment and Finance Company ltd.

51
4.12 Graph showing customer satisfaction level with
Cholamandalam Investment and Finance Company
ltd. Services.

Source: Field Survey

Graph shows most of the Respondents were satisfied with service

provided by Cholmandalam Investment and Finance Company ltd. i.e.
85 percent, followed by 9 percent highly satisfied, while 5 percent were
dissatisfied and only 1 percent was highly dissatisfied

52
4.13 Graph indicating respondent’s satisfaction level in
relation to the features of Cholamandalam
Investment and Finance Company ltd.

90 83
7778
80
70
No.of respondents

62
60 55
50
37
40 32
30
20 111012 10 1210
10 6
1 1 2 1 0 0
0
Poor Satisfactory Good Very good

Interest Rates Installment pattern

Availability Customer Relationship
Fast Processing
Source: Field Survey

Graph showing must of Respondents were satisfied with Interest

rates, Installment pattern, Availability, Customer relationship and Fast
processing.

The above graph indicates the features what Cholamandalam

Investment and Finance Company ltd. Provides to its customers. It
explains the satisfaction level of the respondent.

Here, the respondents were satisfied with it’s the interest rate
offered by the company (81percent), followed closely by customer
relationship and availability of loan (i.e. 79 and 75 percent respectively).
It also noted that 23 percent respondent said they were not satisfied with
its processing of the document.

53
 4.14 Table showing Respondents income with age and
its association with Cholamandalam Investment and
Finance Company ltd.

Age 20 to 30 31 to 40 41 to 50
Years <1 1to3 >3 <1 1to3 >3 <1 1to3 >3
Year Years years year years year ye year yea
Income s ar s rs

<50000 1 0 0 1 0 0 1 0 0

50000 to 1 lakh 2 2 0 34 6 0 5 0 0

1lakh to1.5 lakhs 1 1 0 36 3 0 2 0 0

1.5 to 2 lakhs 0 0 0 2 0 0 1 0 0

> 2lakhs 0 0 0 1 0 0 1 0 0
Source: Field Survey

The above table shows respondents income, age and its

association with Cholamandalam Investment and Finance Company ltd.

36 percent and 34 percent respondents are from age group of 31

to 40 and their income level range from 1lakh to 1.5lakh and 50000 to
1lakh respectively are associated with the company for less than 1 year
while 3 percent and 6 percent in the same group and income level are
associated with the company 1 to 3 years.

54
 4.15 Table showing Respondents opinion on features of
the company with their education and age

Educatio PUC Degree P.G Professional

Features n
Age 20- 31- 41- 20- 31- 41- 20- 31- 41- 20- 31- 41-
(years) 30 40 50 30 40 50 30 40 50 30 40 50

Flexibility 2 24 4 2 17 1 1 2 1 0 3 1

Low interest rate 2 35 6 2 27 1 0 6 1 0 7 1

100%finance 2 19 3 4 21 0 1 4 0 0 3 2

Easy procedure 1 32 3 6 21 1 0 4 1 0 6 2

Less documentation 2 7 2 4 7 0 1 2 0 0 2 0
Source: Field Survey

The above table shows educational qualification, age of the

respondents and features provided by Cholamandalam Investment and
Finance Company Ltd. The respondents were asked to give first three
preference of their choice.
Most of the respondent in professional cadre belonged to age of
31 to 40 have rated low interest rate (7 percent) followed by easy
procedure (6 percent), flexibility in payment and 100 percent finance was
the next options.
Most of the respondent in P.G cadre belonged to age of 31 to 40
have rated low interest rate (6 percent) followed by easy procedure
(4percent) and 100 percent finance (percent).
Most of the respondent in degree cadre belonged to age of 31 to
40 have rated low interest rate (27 percent) followed by easy procedure
(21 percent) and 100 percent finance (21 percent), and flexibility in
payment (17 percent) was the next options.
Most of the respondent in P.U.C cadre who belonged to age
group of 31 to 40 have rated low interest rate (35 percent) and easy
procedure (32 percent), followed by flexibility in payment (24 percent)
and 100 percent finance (19 percent) as their next options

55
1.16 Table showing different source of awareness of
finance companies with the age of the respondents

Age
Source 20 to 30 31 to 40 41 to 50 Total

Advertisement 01 21 03 25

Friends 04 52 07 63

Relatives 02 03 00 05

Others 00 07 00 07

Total 07 83 10 100

Source: Field Survey

The above table shows the respondent’s age with the source of
information about Cholamandalam Investment and Finance Company
ltd.

52percent respondents in the age group 31 to 40 got information

through friends, 21 percent through advertisements the same was

56
followed in age group of 41 to 50 and 20 to 30 where 2 percent did rely
on their relatives.

1.17 Table shows the respondents occupation with the source of

information about Cholamandalam Investment and Finance
Company ltd.

Occupation
Source Business Agriculture Others Total

Advertisement 12 11 02 25

Friends 19 32 12 63

Relatives 01 02 02 05

Others 03 00 04 07

Total 35 45 20 100
Source: Field Survey

The above table shows the respondents occupation with the

source of information about Cholamandalam Investment and Finance
Company ltd.

32,19 and 12 percent respondents in the occupation groups were

agriculturist, business men and Govt. and private service got information
through friends, 12 and 11 percent through advertisements, the same

57
was followed in occupation group of business and agriculture where 2
percent did rely on their relatives.

CHAPTER-5

FINDING, CONCLUSION AND SUGGESTION

5.1 FINDINGS

 The study is based on customer satisfaction towards

Cholamandalam investment and finance company ltd. The study
is to bring out customers attitude, behavior and preference
towards Cholamandalam investment and finance company’s
Services .It tries to relate, what factors influence the customer to
go for Cholamandalam investment and finance company ltd.
Services.

 The summary of demographic details of respondent of Gulbarga

district cover Sedam, Wadi Chitapur, Shahbad is presented in
table 4.1 it is evident from the table that most respondents were
belongs to the age group of 31 to 40 and 41 to 50 i.e. 83 percent
and 10 percent respectively.

 In the field of education, the respondents with post graduate and

professional accounted for 8 percent and 9 percent respectively

58
 followed by graduate and PUC i.e. 35 percent and 48 percent .it is
observed that majority of respondent were plus two.

 The respondent’s occupation of the selected Gulbarga district

exhibits that the majority of the respondents 45 percent were
agriculturist (farmers), followed by businessmen (35 percent) and
20percent were others i.e. in govt. and private services.

 The average annual income of respondents in gulbarga district

were in the range of 50000 to 1 lakh i.e. 49 percent followed by
1lakh to 1.5 lakh 43 percent.

 When it comes to awareness of financial services available to

Gulbarga people Cholamandalam Investment and Finance
Company Ltd. is still in the first phase, of product cycle i.e.
awareness phase. At present Ashok Leyland finance and
Sundram finance company has good awareness among public at
large.

 It is disserved that the factors that influenced most of respondents

to avail loan from the company are its attractive rates of interest,
simple procedure, reputation of the company and reference from
vehicle dealers.

 All most of all respondents have taken vehicle loan for first time.

 Few respondent knew about the other persons who taken loan
from other companies (i.e. Ashok finance co. and sundarm
finance co.).

 Respondents were aware about finance companies, its innovative

ideas and different loan schemes offered by them. When it comes

59
 to awareness about financials and its innovation ideas and
different loan schemes offered by them and 94 percent were
aware of it, while 6 percent said they are not aware.

 Percent respondents are dealing with Cholamandalam

Investment and finance company ltd., is less than a year and
remaining 12 percent of respondents from 1 to 3 years which
indicates that all the respondents are fresh applicants while few of
them were as old as 3 years. This indicates that the company is
progressing in recent years.

 When the respondents were asked whether in any condition they

felt or have changed for any other financial institutions. 3 percent
respondents were of the opinion that if given a second chance
they would like to opt for other financial institution while 97
percent were satisfied with Cholamandalam Investment and
Finance Company Ltd. The three percent respondent said that
they would like to opt Ashok Leyland Finance company ltd as this
company was old, established, reputed and it offers better
services than Cholamandalam Investment and Finance Company
Ltd.

 The customers are satisfied with interest rates, installment

pattern, and availability of loan. Fast processing of documentation
is slow as compare to other financial companies.

 52 percent respondents got the information regarding

cholamandalam investment and finance company Ltd. Through
friends and 21 percent through advertisement. This indicates
good word of mouth plays a very important role in learning
awareness and building the company.

60
  It is observed that what ever the educational background
respondents have given highest priority to low interest rates,
which means, the financial companies which have low interest
rates attracts more customers, simultaneously respondents
preferred 100% finance from the company, followed by easy
procedure. This indicates if the company is offering low interest
rates, simple procedure, 100% finance flexibility, or say few
attractive schemes; it draws the attention of the customer.

5.2 CONCLUSION
Commercial financing has been the domain of private sector
finance companies. NBFCs entering insurance and other areas are
natural phenomena; they will help in broad basing income.

This study concludes with a view that the Non Banking Financial
Companies is highly growth oriented. But there is a less competition
among the RBI Register companies. The extent to which the company
can sustain its growth depends up on its services towards the
customers.

61
5.3 SUGGESTIONS

 As Cholamandalam Investment and Finance Company Ltd. is

new in market it has to bring lot of awareness about its
functioning and its services among Gulbarga public
 The finance companies have to provide good service to
customers for retaining them.
 When the respondents were asked whether in any condition they
felt or have changed for any other financial institutions, the
answer was yes by few of the respondents, this was because the
company was not able to provide better services as Ashok
Leyland provides. The respondents quoted that “the services of
Cholamandalam Investment and Finance Company Ltd. are not
as fast as compared to other financial institutions”. So it is
suggested to company that they should improve their services
and by following simple procedure in sanctioning loans and at the
same time the processing should be faster so that customers are
attracted and satisfied.

 Customer satisfaction of often perceives customer satisfaction as

an important primary product or services that an organization had
to offer.

 The Company has to maintain good relationship with customer.

Customer satisfaction is a marketing tool and a definite value

62
 added benefit. Cholamandalam Investment and Finance
Company Ltd. has to improve their fast processing of its
documentation process.

BIBLIOGRAPHY

Philip kotler (1998), Marketing Management, prentice-hall India Pp40-43

Peter D. Bennett and H.kassarjian (1998), Consumer behavior,

Pp 51-57

Dr. (Mrs.) D. Kamalaveni, Ms. M Nirmala (2000), “Consumer

behavior in instant food products”, Indian journal of Marketing, vol
xxx No.5-7 pp12

Dr.Bhavnesh Kumar Grover (2000),”Strategic Marketing through

customer service”, Indian journal of Marketing, vol xxx No.5-7 pp12

Parimal Vyas (2000),”Customer Satisfaction: as core competence”,

Indian journal of Marketing, vol xxx No.1-4 pp16.

www.cholamandalam.com

 http://www.the-resource-center.com/BOOKS/focus/

HTMeasure_Customer_Satisfaction.HTM

http://www.qmt.co.uk/books/customer_satisfaction.htm

http://www.the-resource-center.com/BOOKS/CUSTSAT/

Improving_measurement_customer_satisfaction. HTM

http://www.the-resource-center.com/BOOKS/CUSTSAT/

Customer_satisfaction_surveys_questionnaires. HTM

http://www.the-resource-center.com/BOOKS/CUSTSAT/

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 Listening_to_the_voice_of_the_customer.HTM

http://www.the-resource-center.com/BOOKS/CUSTSAT/

How_to_measure_service_quality.HTM

http://www.the-resource-center.com/BOOKS/CUSTSAT/

Improving_measurement_customer_satisfaction.HTM

http://www.the-resource-center.com/BOOKS/Focus/

Design_Customer_Satisfaction_Surveys.HTM

http://www.amazon.com/exec/obidos/ ASIN/0029110459/millcitymarketing

DODDAPPA APPA INSTITUTE OF MANAGEMENT GULBARGA.

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Name of the Student : K.MAHESH

Name of the Company : Cholamandalam Investment & Finance Co. Ltd.

Topic : “Customer Satisfaction in relation to the services

provided by CIFCO”.

Questionnaire for Customers:

1. Have your purchased Vehicle through:

a) Loan b) Cash basis

i) Bank i) Own

ii) Financial services ii) Relatives

iii) others

2. Please recall any three auto finance companies:

a) ____________________
b) ____________________
c) ____________________

3. How do U know about CIFCO

a) Advertisement b) Friends

c) Relatives d) Others

4. Which were the factors that influenced u to avail loan from this company.
Give ranking 1 to 5 (1 is highest rank and 5 is lowest rank)

a) Simple Procedure

b) Attractive rate of interest

c) Reputation of the company

d) Nearness to the branch

e) Reference form vehicle dealer

f) Absence of other company / No knowledge about the other finance company

g) Persuasion from the company representative

h) Advice from friends / relatives

i) Dearness to financial companies manger

5. In U r opinion, following features are must be vehicle finance (State any three)

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a) Flexibility b) Low Interest

c) 100% Finance d) Easy Procedure

e) Less documentation

6. Have U availed loan from any other company in past Yes No

If yes, what was U r experience?

7. Do U known anyone who has taken loan from other company Yes No
What was their experience?

8. What is U’ r opinion on the following :

a. Nowadays all finance Co are coming up with innovative loan scheme Yes No

b. There is no much difference between loan schemes of finance Co. Yes No

9. State the company that you dealing at present __________________

10. Since how long U’ r associated with this company

a) < 1 year b) 1-3 years c) > 3 years

11. Have U ever changed your finance options Yes No

If yes, state the name of the company __________________

12. What is your satisfaction level of CIFO service

a) Highly satisfied b) Satisfied

b) Dissatisfied d) Highly dissatisfied

13. Please rate the service of CIFO on following parameters

Poor Satisfactory Good Very Good

a) Interest Rates
b) Installments Pattern
c) Availability
d) Customer Relationship
e) Fast Processing

PERSONAL PROFILE

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Name :

Age : a) 20-30 b) 31-40 c) 41-50 d) 51 & above

Education:
a) PUC b) Degree c) P.G. d) Profession

Occupation:
a) Business b) Agriculture c) Others

Annual Income
a) < 5000 b) 50000-100000 c) 1 Lakhs -1.5 Lakhs

d) 1.5 to 2 Lakhs e) > 2 Lakhs

Address

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