CHAPTER – I

INTRODUCTION

1.1 Introduction of the Study

In the past, the air-conditioning (AC) industry reeled under a regime of high taxation,
which effectively acted as a damper to growth. The scenario underwent a dramatic change in
the 90’s with economic reforms and liberalization. Growing industrialization and an
expanding middle class with higher disposable incomes led to a growth in air-conditioners
demand.

With the Environmental conditions deteriorating in many of our cities due to increase
in traffic density, population growth and reduction in foliage cover, the Customer demand for
these gadgets has registered a substantial increase.Secondly, with heavy investment coming
in the information technology and telecom sectors and renewed technology and telecom
sectors and a renewed governmental initiative on strengthening agricultural infrastructure
(cold storage),institutional demand for the
air-conditioners(AC) has increased.

The domestic demand for air-conditioners is largely met by window air-conditioners.

These have improved significantly in terms of technology and are now marked aggressively.
Window air-conditioners are now at part with international brands in terms of cooling
capacity, noise levels and energy consumption. although the market has grown substantially
in the last five years, competition is fierce. In additional to a number of Indian brands and a
host of local assemblers in the unorganized sector, several multinational (MNCs) have also
invested in India. There is a substantial over capacity in the industry. A shakeout is most
likely and survival will depend upon technology, pricing power and to a limited extend brand
power.

The nature of the industry is changing, due to environmental and energy concerns.
Under the 1990 Montreal protocol, all the producers of air-conditioners have to stop using

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ozone-depleting substances from 2003 onwards. Indoor air quality is also emerging as an
important issue, which may lead to paradigm shifts in technology for cooling air.

Today’s companies are facing tough compaction. The customers have a wide choice
of brands to select from. In order to survive the competition the companies have to do a better
job of meeting and satisfying customer needs than their competition. The air – conditioners
manufactures and marketers exception.

Customer

A customer is a person who brings as his wants. It is our job to handle than profitably
to him and to ourselves.

A customer is a most important visitor on or premises. He is not dependent on us. We

are dependent on him.
In brief we can say customer is one of the assets in our successes.

According to Philip Kotler satisfaction is a person feeling of pleasure or

disappointment resulting from comparing a product received performance on relation to his
or her expectation.

Depending on the extent to which his requirements are met a customer may be
classified and delighted satisfied and dissatisfied. It also depends on his expectations and the
performance on the product or service. Many companies are aiming for high satisfaction
(delighted) because customer who are just satisfied still, find it easy to switch when a better
offer comes along they have to generate high customer loyalty is to deliver high customer
value.

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Importance of Customer Satisfaction:

The need to satisfy customer for success in any commercial enterprise is very
obvious. The income of all commercial enterprises is derived from the payments received for
the products and services supplied to its customers. Customers are the sole reason for the
existence of commercial establishment.

Thus the come activity and perhaps are of the most important activities of any
company is to attract and retain customer.

It is transfer no surprise that peter Drucker the management Guru has said “to satisfy
the customer to every business.” Initially customer can be attracted by advertisements and
other efforts by the marketing personal and made to buy the product and made to buy the
product or services. But they are not sufficient to retaining then. They could retain the
customer.

Requirements for the Customer Satisfaction

Since customer satisfaction is an important goal of any marketing program it becomes

necessary to establish factors, which help satisfy the customer.

a) Quality
b) Fair prices
c) Good customer handling skills
d) Efficient delivery
e) Effective and economical after sales service
f) Serious condition of Customer complaints

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Quality

Quality is the totality of features and characteristics of a product or services that bears
on its ability to satisfy stated or implied needs. We can say that the seller has delivered.
Quality wherever the seller product or service meets or exceeds the customer expectations.
Quality must be reflected in every company activities likes advertising service products
literature, delivery, after sales support and so on. Quality can always improved by learning to
do things right the first and quality does not cost more.

Fair Price

Fair price is very important to satisfy a customer. Price is actually the cost of a
product or services paid. By the customer prices should therefore commensurate with the
offers perceived value. It is not buyers kill them to competition product.

Good Customer Handling Skill

Good customer handling skill is an essential requirement for a salesman. The

salesman should understand buyer behaviour and act accordingly. The sales person should not
be rigid in his dealings. Instead he should have a flexible approach adopting his presentation
to each customer needs.

Efficient Delivery

Efficient delivery is also an important requirement for customer satisfaction. It is

important to inform the customer as to when as product would be ready for delivery and
keeping up the promised time in crucial. During the delivery especially in case to customer
durable the main product features, safe and correct usage, warranty and after sales service
facilities etc., should be explained. This enhances the image of the firm and also results in
customer satisfaction.

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Effective and Economical After Sales / Services

It is not enough to simply sell a quality product at a fair price to be customer. The
customer is also having keen to get effective and economical after a sales service especially
in the case of customer durable and like electronic item and automobile. This can be achieved
by,

 Training personal to serve customer better.

 Keeping adequate stocks of spare parts.
 Making time deliveries.
 Maintaining a well equipped and clean workshop.
 Offering economical service.
 Being courteous to customer.

Serious Consideration of Customer Complaints

Complaints should be considered and revolved promptly. At times the faculty may lie
entirely with the customer. In such cases a responsible action needs to be taken. The total
fault may also lie with the company and this situation there should be no satisfy the blame
instead the company should leave arise if ago and look into the complaint and revolve it or
compensate for it. This would keep the customer satisfied.

Quality Service and Customer Satisfaction:

Quality of services is becoming the decisive factor in corporate service. This is

especially applicable to the customable industry. Good service tailored to customer needs is
particularly important for high technological product.

Service may be derived as those things when added to a product increase its utility or
have to customers.

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General Services:

 Maintenance and repair.

 Customer information such as application notes, deliver information, training and
documentation.
 Impersonal administration interface (i.e., ordering, and billing)
 Quick reasonable of quality and application problem.
 Well trained and friendly customer support staff.

A service – oriented attitude alone kill not assured good service. Good service
required an excellence service infrastructure that means training employer, documentation
spare distribution and most of all and buying everyone in the company kill an attitude
towards quality.

The ten determinants of service quality in most customer service industries are listed.

1) Reliability
2) Responsible ness
3) Competence
4) Access
5) Courtesy
6) Communication
7) Credibility
8) Security
9) Understanding the customer
10) Tangibles

Quality of services is an in dispersible factor for survival of a business firm. It efforts

are made to delivery firm. It efforts are made to delivery quality service it would
automatically lead to customer satisfaction.

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Air Conditioning
Air Conditioning is the simultaneous control of Temperature, Humidity, Motion &
Purity of the atmosphere in confined Space.

Requirements of Comfort Air Conditioning:

1. Supply of Oxygen & removal of Carbon-di-oxide.

2. Removal Of heat dissipated by the occupants.
3. Removal of moisture dissipated by the occupants.
4. To provide sufficient air movement & air distribution in the confined space.
5. To maintain the purity of air by removing odour & dust

Basic Components in an A/C:

1. Compressor
2. Condenser

3. Strainer

4. Capillary

5. Tube

6. Evaporator

Working of A/C:

When the compressor is started it sucks the refrigerant vapour at low temperature and
low pressure from the evaporator through the suction line. After compressing, it discharges
the refrigerant at high temperature and high pressure in vapour state to condenser through the
discharge line. Here the vapour is condensed at high pressure by lowering down the
temperature of refrigerant with the help of atmospheric air, which was circulated by

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condenser fan. This liquid flows towards capillary tube through the liquid line & strainer.
When the liquid passes through the capillary tube, its pressure and temperature are lowered
and enters into the evaporator. Here this liquid refrigerant gets vaporized by absorbing the
heat from the room air, which is being sucked by the blower through the evaporator coil.
Hence the room air gets cooled and the same is discharged to the room. The compressor
sucks the vaporized refrigerant at low temperature and low pressure. This cycle is repeated
till the compressor works.

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1.2 Objectives of the Study

Primary Objective:

 To identify the satisfaction level of customer towards the branded A/C s in

Coimbatore city.

Secondary Objective:

 To know social economic profile of respondents

 To know opinion about various brands
 To know about the satisfaction level of respondents
 To know about the after sales and service.

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1.3 Need for the Study

 This project is done for ETA – General A/C private Ltd in Coimbatore. This project
throws lights into the customer satisfaction branded A/C in Coimbatore City.
 Various factors like awareness expectation regarding the product, sources of
information promotion, activities are analysis.
 As there is in tense compaction in the Coimbatore market for and branded A/C. This
research is also done to check how air–conditioner can improve their sales through
better customer relationship.
 It hopes that this report will be an useful guide for the ETA General Private Ltd., to
improve their performance.
 This study helps the company to identify and interpret their problems and also helps
to identify the reason for not doing well and also helps to identify where they want to
be some suggestion and recommendation are also improve. It helps to rectify the
problem and to improve the state of product and the company.

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1.4 Limitations of the Study

 This study is made to social economic profile of respondents

 This study is opinion about various brands
 This study is the satisfaction level of respondents
 This study is made satisfaction of the after sales and service.

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1.5 Research Methodology

Introduction

Research is an intensive study in a particular field to achieve at a better conclusion of

a problem. Research Methodology is a systematic way of solving the problem. Research
methodology explains the various steps that are generally adopted by the researcher in
studying the research problem along with logic behind them. The methodologies followed for
this study are as follows.

1 Research Design Descriptive Research

2 Population The Population comprises people of Coimbatore City.

3 Sample Technique Convenience Sampling

4 Sample Size 212

5 Sampling Unit Coimbatore City

6 Data Collection Primary and Secondary Data Collection

7 Data Collection Tools Questionnaire

Tools Used for Simple Percentage Analysis, Chi-Square Test &
8
Analysis Weighted Average Method

Research Design

Research Design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure. The research activity is descriptive. The study analysis the customer satisfaction
with the features of branded A/c in Coimbatore City with the reference of General A/C ETA
General Private Ltd.,

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Questionnaire Design

Proper care has been taken to ensure that the information needs match the objectives,
which in turn match the data collected through the questionnaire. The basic cardinal rules of
Questionnaire design like using simple and clear words, the logical and sequential
arrangement of questions has been taken care of. The questionnaire includes both open ended
and closed ended questions with multiple choices; Open-ended questions enable wide range
of responses. Close-ended questions offer a limited choice of response.

Sampling Design

 Population
The universe comprises people of Coimbatore City. Since the population of
Coimbatore is large in number, researcher was unable to collect information from all
individuals due to limitation of time. So part of the population is taken for analyzing
and generating the findings, which is applicable for total market.

 Convenience Sampling Method:

It is a population which is commonly referred to as a sample. It is obtained by

selecting convenient population unit.

i. It is suitable when the universe is not clearly defined.

ii. Sample unit is not clear
iii. Complete source list is not available

Sampling Size:
This refers to the number of item to be selected from the universe to constitute a
sample. This is a major problem before a researcher. The single of sample should neither be
excessively large nor to small. It should be optimum. A optimum sample is one which fulfills
the requirements of efficiency, representatives, reliability and flexibility while deciding the
size of the sample, researcher must determine the desired precision as also an acceptable
confidence level for the estimate.
The size of population variance needs to be considered as in case of larger variance
usually a bigger sample is needed. The size of population must be kept in view for this also
limit the sample size. The parameters of interest in a research study must be kept in view,
while deciding the size of the sample. Costs to dictate the size of the sample that we can

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draw. As such budgetary constraints must invariably take in the consideration when we
decide the sample size.212 respondents are sample size of the study.

Sampling Unit:

The set of customers where using A/C in Coimbatore. A decision has to be taken
concerning or sampling unit before selecting sample. Sampling unit may be a geographical
one such as state, district, village, etc., or a construction unit such as house, flat etc., or it may
be a social unit such as family, club, school etc., or it may be an individual. The researcher
will decide one or more of such units that has to select for his study.

Period of Study

The study was conducted during the period of 4 months from January -2016.

Data Collection

The collection of data is considered to be one of the most important aspects in the
research methodology.

 Nature of Data

Both primary data and secondary data have been used for this study.

 Primary:
Primary data involved integration of customers
 It is gathered by using a questionnaire administrated by personal interview.

 Secondary:
Secondary data regarding the company, industry and products were obtained from,
 Internet
 Company Personnel
 Books
 Catalogue

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Data Analysis

Data Analysis and interpretation is the main part of a project study.

Analysis
Analysis is the process of placing the data in an ordered form, combining them with
the existing information and extracting the meaning from them. In other words, analysis is an
answer to the question “what message is conveyed by each group of data” which are
otherwise raw facts and are unable to give a meaningful information. The raw data become
information only when they are analyzed and put in a meaningful form.

Interpretation

Interpretation is the process of relating various bits of information to other existing

information. Interpretation attempts to answer, “What relationship exists between the findings
to the research objectives and hypothesis framed for the study in the beginning “.

To study the customer satisfaction towards branded A/C in Coimbatore city a survey
was conducted and information was collected from 212 respondents. All the information
collected with the help of questionnaire are tabulated and analyzed using data analysis tools
like Simple percentage, chi-square test and weighted average method. The inferences given
below the table will make the reader to understand the problem as well as the solution to the
problem. Charts are used in showing the comparison diagrammatically.
Tools used for Analysis

 Simple Percentage Analysis

 Weighted Average Method

Simple Percentage Analysis

Percentage refers to a special kind of ratio in making comparison between two or

more data and to describe relationships. A simple percentage analysis was carried out for the
major part of the data analysis.

This is a univariate analysis where the percentage of a particular factor with

different categories are calculated, in order to help one get their fair idea regarding the sample

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and thereby that of population. Without this percentage, the researcher would face difficulty
in interpreting results.

Number of Respondents
For a Particular Option
Percentage of Respondents = X 100
Total no of respondents
Answered that Particular Option

Statistical Analysis

Weighted Average Method:

When the relative importance of the various items is not the same, then we make use of
weighted average method. Hence we multiply each item by a weight reflecting. The
importance assigned to the item is the total and then divide them by the sum of weights.

Ʃw

Weighted Average Method =

w

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 CHAPTER - II
REVIEW OF LITERATURE
The field of Customer Satisfaction is large and traverses many academic disciplines.
In this chapter, a review of the published literature upon which this study rests is presented.
The search for a workable definition of Customer satisfaction is explored. The concepts
regarding the theoretical nature of Customer satisfaction is investigated and some of the
major techniques used to measure are discussed.

Definition of Customer Satisfaction

An analysis of the literature concerned with Customer satisfaction in 1992 revealed a
large and ever growing body of research with some 15,000 trade and academic articles, which
had been written on the topic over the previous two decades (Peterson and Wilson, 1992).

Despite the many studies on Customer satisfaction, there appeared to be no overall agreement
over important issues such as concepts, constructs, definitions, measurements, methodologies
and various interrelationships (Yi, 1990; Brooks, 1995).

Currently the constructs of Customer satisfaction are built upon concepts such as individual
wants, needs and expectations. These concepts emerged from theories about customer choice
for goods and services, which are sought to meet needs and wants. Issues such as prices,
convenience, appeal and quality were seen as moderating the choices.

The concept of satisfaction itself needs to be defined. The Shorter Oxford English
Dictionary (1944, p. 1792) defined satisfaction as ‘[1] being satisfied, [2] thing that satisfies
desire or gratifies feeling’. It describes satisfy as ‘ [1] meeting wishes of content, [2] be
accepted as adequate [3] to fulfil, [4] comply with, [5] come up to expectations.’ Customer is
defied as ‘a person who buys a product or uses a service.’ Hence using these definitions,
Customer satisfaction can be thought of as a user or purchaser having their needs and
expectations fulfilled.

The concept of Customer satisfaction has been defined in various ways. Zeithaml,
Berry and Parasuraman (1993) suggested that Customer satisfaction is a function of the
Customer’s assessment of service quality, product quality and price. Oliva, Oliver and
Bearden (1995) suggested that satisfaction is a function of product performance relative to
customer expectations. Bachelet (1995) considered satisfaction to be an emotional reaction by
the customer in response to an experience with a product or service. He believed that this
definition included the last contact with a product or service, the satisfaction experience since

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the time of purchase as well as the general satisfaction experienced by regular users. Hill
(1996) defined Customer satisfaction as the Customers’ perceptions that a supplier has met or
exceeded their expectations. Jones and Sasser (1995) defined Customer satisfaction by
identifying four factors they postulated affected it.

The factors were: (1) essential elements of the product or service that Customers
expected all rivals to deliver, (2) basic support services such as Customer assistance, (3) a
recovery process to make up for bad experiences and (4) “customisation” which were factors
that met Customers’ personal preferences, values, or needs. Ostrom and Iacobucci (1995)
examined a number of definitions from other researchers and distinguished between the
concept of customer value and Customer satisfaction. They stated that Customer satisfaction
was best judged after purchase, was experiential and took into account the qualities and
benefits as well as the costs and efforts associated with a purchase. Gerson (1996) suggested
that a Customer was satisfied whenever his or her needs, real or perceived were met or
exceeded. He put it succinctly as “Customer Satisfaction is simply whatever the Customer
says it is”(p. 24).
A new paradigm of Customer satisfaction has evolved from this multifarious body of
knowledge. Johnson and Fornell, (1991) proposed an econometric model where satisfaction
was viewed as “a cumulative abstract construct that describes Customers’ total consumption
experience with a product or service”(p. 271). They stated this was not a transient perception
of how happy a Customer was with the product at any given point in time. It was the overall
experience with the purchase and use of a product or service to that point in time. This
concept is consistent with the economic notion where satisfaction embraces post-purchase
consumption utility as well as expected utility (Meeks, 1984). Johnson and Fornell’s (1991)
view also conformed to the economic psychological theory where satisfaction was compared
with the notion of subjective wellbeing (Wärneryd, 1988). The Johnson and Fornell (1991)
model evolved into the American Customer Satisfaction Index (ACSI). The ACSI model rests
on the relationships between the Customers evaluated characteristics such as perceived
quality, perceived value, price tolerance, willingness to repurchase and recommendation of
the product or service to others (Fornell et al., 1996). Put simply by Fornell et al (1996, p.
10), “Customer satisfaction is when your Customers come back and your products don’t”.

Importance of Customer satisfaction

The significance of Customer satisfaction to the business world is the concept that a
satisfied Customer will be a positive asset for the company through reuse of the service,
repurchase of the product or positive word of mouth, which should lead to increased profit.
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The converse of this is that a dissatisfied Customer will tell more people of their
dissatisfaction, possibly complain to the company and if sufficiently disenfranchised, change
to another company for their product or service, or totally withdraw from the market
(Anderson and Sullivan, 1993; Fornell, Ittner and Larcker, 1995; Oliva, Oliver
and Bearden, 1995).

Perception of Customer satisfaction

Customer satisfaction studies tend follow two different models. These models have
been dubbed the “Customer concerns” and the “organisational concerns” approach. There are
also an infinite number of shades of grey in-between the two extremes (Wittingslow and
Markham, 1999).

The model of Customer satisfaction chosen in a study reflects the culture of the
organisation conducting the study. The type of model chosen has consequences for defining
Customer satisfaction. A company that is driven by the importance of what it believes it is
doing and the importance of its market approach, tends to interpret Customer satisfaction as
what the Customer should want, against these organizational and marketing needs (Yi, 1990;
Dutka, 1994). If however the organisation has a culture where the Customer is seen as being
an independent entity who has his/her own motives beliefs and needs, then Customer
satisfaction will be defined as being based upon Customer thinking (Wittingslow and
Markham, 1999).
Wittingslow and Markham, (1999) suggest that we perceive the world around us in an
egocentric and selective way. Because we can’t take in all the images, sensation and feelings
that are experiencing continually, we select those that are the most important. A result of this
filtering process is we can not evaluate, with any accuracy, a thing we have either consciously
or unconsciously selected out. The sequela of this, for Customer satisfaction research, is that
asking questions on an issue that the respondent has selected out or not experienced produces
problems for the data set produced. Either the respondent chooses an answer at random
(inducing noise into the data set) (Andrews, 1984) or replies with a “Don’t Know / Not
applicable” (resulting in missing data). To minimise this problem, the respondent must be
asked question that draw from their experience and are in language that they understand
(Wittingslow and Markham, 1999).

The Nature of Customer Satisfaction

Before Customer satisfaction can be measured, the nature of satisfaction itself must be
determined. As Johnson, Anderson and Fornell, (1995) stated, “The modelling of Customer
satisfaction depends critically on how satisfaction is conceptualised.” This aspect however is

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controversial. Some of the disputed characteristics of Customer satisfaction are, the nature of
satisfaction, whether satisfaction is cumulative, or transaction specific, and the merits of
measurement at the individual compared to the market level.

Social Sciences theories of the nature of satisfaction

There have been many approaches in defining the customer satisfaction/
dissatisfaction construct and how the various Customer factors such as cost or product
performance impact on satisfaction.
1. Equity Theory. - According to equity theory, satisfaction occurs when a given party
feels that the ratio of their outcomes of a process is in some way in balance with their
inputs such as cost, time and effort (Brooks, 1995).
2. Attribution Theory - in this theory the outcome of a purchase is thought of in terms
of success or failure. The cause of the satisfaction is either attributed to factors that
are internal such as the buyers’ perceived buying abilities or external such as difficulty
of the buying task, other peoples efforts or luck (Brooks, 1995).
3. Performance Theory - Customer satisfaction is directly related to the product or
services’ perceived performance characteristics (Brooks, 1995). Performance is
defined as the Customers’ perceived level of product quality relative to the price they
pay. That is satisfaction is equated with value, where value equals perceived quality
divided by the price paid (Johnson, Anderson and Fornell, 1995).
4. Expectancy Disconfirmation Theory - Brooks (1995) stated that Expectancy
Disconfirmation Theory, at the time of the publication of his research, was the most
popular of all the social science theories. In this theory, Customers form expectations
of product performance characteristics prior to purchase. When the product is bought
and used, the expectations are compared with actual performance using a better-than,
worse-than heuristic. Positive disconfirmation results if the product is better than
expected while worse than expected performance results in negative disconfirmation.
Simple confirmation results when a product or service performs as expected.
Satisfaction is expected to increase as positive disconfirmation increases (Liljander
and Strandvik, 1995).

Statistical History of Customer satisfaction

The first work in the area that would become mathematically based Customer
satisfaction was carried out in the 1920’s by sociologists studying mass behaviour using
primarily percentage analysis. By the 1940’s, scaling and ratings were at the cutting edge of
customer science. The jump from correlation to equations was the major development in the
1950’s. The first generation of multivariate analysis occurred in the 1960’s. These methods

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however were limited in their ability to bring together theory and data. They also were
restricted in processing behavioural data by their failure to incorporate auxiliary measurement
theories, i.e. the theoretical assumptions made during measurement, that, if excluded from
the empirical model, would bias estimates and confound results (Blalock 1982, Fornell,
1988).

The increasing availability of computer technology in the late 1960’s and early 1970’s
enabled the widespread use of multivariate analysis in marketing (Sheth, 1971). The new
methods of simultaneous analysis of multiple variables displaced the older techniques of
univariate and bivariate analysis. The new processes included multiple regression, multiple
discriminant analysis, factor analysis, principal components, multidimensional scaling and
cluster analysis. The multivariate revolution of the early 1970’s became established within
academia by 1980 and became commonly used in commercial marketing research by 1982
(Bateson and Greyser, 1982).

Around 1982 a new multivariate technique appeared which was claimed brought
together the areas of psychometrics, econometrics, quantitative sociology, statistics,
biometrics, education, philosophy of science, numerical analysis and computer science
(Fornell, 1988). This technique was dubbed the Swedish Satisfaction Barometer (Fornell,
1988). Claimed advantages of this methodology were that it corrected for measurement
imprecision, isolated effects, modelled a system of relationships and provided a basis for
cause-and-effects interpretation. By the 1990’s the method had developed by researchers such
as Fornell, Anderson, Johnson, Cha and Bryant at the National Center for Quality Research
(NCQR) into the American Customer Satisfaction Index (ACSI), an aggregate, prospective,
predictive Customer satisfaction measure.

Concepts of Satisfaction Performance

Gap theory
Parasuraman, Zeithaml and Berry (1988) suggested that expectations in the
satisfaction literature have been used as predictions of service performance, while
expectations in the service quality literature were viewed in terms of what the service
provider should offer. Later Zeithaml, Berry and Parasuraman (1993) modified this
distinction, introducing two different levels of expectations and proposing the existence of a
zone of tolerance between these levels. They argued that satisfaction is the function of the
difference or gap between predicted service and perceived service, while perceived service

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quality is the function of the comparison of adequate or desired service with perceived
service performance.

Catastrophe theory / fuzzy logic

Most models of Customer satisfaction assume a linear relationship between the effect
of various causes such as expectancy disconfirmation on the customer’s reaction to a product
or service. Oliva, Oliver and Bearden (1995) put forward the concept of involvement with a
product or service. They suggested that at a low level of involvement the traditional linear
assumptions hold true. However, at high levels of involvement the relationship becomes
“sticky”. That is, the customers do not shift preferences over a range of reported performance.
Instead, the perceived performance level declined until it reaches a cusp where the customer
suddenly abandoned the product in favour of a competitor. Later when the perceived
performance of a product improves, the customer will not re-purchase until there is large
advantage in doing so.

Transaction-specific satisfaction and cumulative satisfaction

Johnson, Anderson and Fornell (1995) suggested there were two concepts of
Customer satisfaction in the literature: transaction-specific satisfaction and cumulative
satisfaction. Transaction specific Customer satisfaction focuses on individual customer
responses to individual products and services while the cumulative one describes the total
consumption experience of a Customer with a product or service (Anderson and Fornell,
1993; Boulding et al., 1993).

Some disagreement exists in transaction-specific satisfaction. Parasuraman, Zeithaml

and Berry (1988) suggested that perceived service quality was an antecedent to transaction-
specific satisfaction while Bitner (1990) and Bolton and Drew (1991) believed that
transaction-specific satisfaction is an antecedent to perceived service quality.

Johnson, Anderson and Fornell (1995) argued that while enterprises had a practical
need to conduct transaction specific research on Customer satisfaction, this action did not
contribute to the generation of empirically generalised theories and models on satisfaction.
They suggested that a market level or aggregate approach to Customer satisfaction was more
likely to overcome problems in reconciling the variation of findings at the individual level.

Individual (disaggregate) satisfaction

A large amount of Customer satisfaction literature is based on the model of
disaggregate (individual level) satisfaction with services or goods (Yi 1991). These
disaggregate studies show the scope of human behaviour. However, Yi (1991) and Anderson

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and Sullivan (1993) have reported problems with the empirical “generalizability” of these
studies. Johnson, Anderson and Fornell (1995) argued that the attitudes and behaviour of
individuals might be so unique that reliable generalisations cannot be determined from
individual level studies. As a solution to this problem, they suggested the aggregation of
individuals to produce a market level satisfaction.

Market level (aggregate) satisfaction

Little work has been done on aggregate or market level Customer satisfaction. Market
level satisfaction is the aggregate satisfaction of all those who purchase and consume a
particular product. Johnson, Anderson and Fornell (1995) reported that the aggregation of
individual responses served to improve the power of the measurement by reducing the error
in measurement of satisfaction variables and increasing the verification of coherent
relationships with other variables. They suggested that the aggregation might also increase
the sensitivity to relationships between customer attitudes and subsequent purchase
behaviour.

Market level satisfaction has been found to be reasonably stable over time (Johnson,
Anderson and Fornell 1995). Market performance expectations have a large rational
component yet remain adaptive to changing market conditions.

Johnson, Anderson and Fornell (1995) identified three antecedents of their market
model: performance (perceived product quality relative to price), expectation (attitudes or
beliefs about the degree of performance) and disconfirmation (the degree to which perceived
performance confirms performance expectations). They suggested that disconfirmation has an
important role in developing transactional models of satisfaction although it is a problematic
concept.

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 CHAPTER –III
PROFILE OF THE COMPANY
3.1 Industry Profile

Considering the size of India's population of 1 billion plus, the size of the HVAC
industry is relatively modest. Marketing gurus and economists estimate the population of the
middle class with disposable income, anywhere in the region of 75 million to 150 million.
These are the people who are buyers of room air conditioners for the residential sector.

The "services sector" consisting of retail establishments, restaurants, small offices,

banks, software centers is the major buyer of ductable split air conditioners and mini-splits.

Industry, nuclear power plants, large hotels, modern hospitals, shopping centers and
office complexes are major users of central or "applied" air conditioning equipment including
centrifugal, screw, reciprocating chillers and air handling units.

The dairy, chemical and pharmaceutical industries are the largest users of refrigeration
plants while the growing fruit, vegetable storage, milk chilling and processed food sector are
the major users of cold stores with refrigeration equipment.

Reliable, industry generated statistics of production volumes for each type of product
are difficult to come by and hence each company depends on its sales team to guess what
competition has sold, add up the total and determine what per cent of the market share it
holds.

Market research companies such as Francis Kanoi have carried out their independent
surveys but eventually they all have to depend on large manufacturers, their dealers and a
large number of small manufacturers and contractors, too numerous and spread out to get an
accurate size of the total market. The figures given have been estimated from several sources
and there can be small differences with figures estimated by some companies.

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Market Growth

The room air conditioner segment of the HVAC industry has been growing at a rate of
approximately 20 % driven by the growth of the residential sector. Lower prices, availability
of easy finance, higher disposable income and the urge for better living have all combined to
help this growth.

The central air conditioning and ducted splits market segment is growing at a lower
rate of approximately 10% driven by commercial segments such as retail, software,
healthcare, hospitality, entertainment, telecom and banking.

The commercial and industrial refrigeration segment is also growing at approximately

10%, fuelled by the increase in consumption of dairy products including ice cream, frozen
food, carbonated beverages, hygienic and cool drinking water. Cold storages are witnessing a
steady growth. Refrigeration for industry is confined to pharmaceutical and chemical plants
and modernization of synthetic fiber and textile plants.

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3.2 Company Profile

ETA General Pvt. Ltd is a joint venture between ETA-Ascon, Dubai and Fujitsu
General Pvt. Ltd. Japan.

Fujitsu General

Fujitsu General, Japan is part of US $ 50 billion Fujitsu group, a Fortune 100

company. Established in 1936, Fujitsu General has business interests in A/Cs, refrigerators,
visual products, system, communications and electrical devices. Its credo is to be an attractive
and energetic corporation that develops business on a world level, coexists with the people of
the world and practices open management. It's a leading player in the global air conditioning
market and is known essentially for its quality, technical superiority proven technology and
innovative products. It operates in more than 130 countries and is a major player in 22
countries and is among the major three in another 36 countries.

ETA General Pvt. Ltd

ETA General Pvt. Ltd. In India came into existence on the 18 th of semptember,2000
when its state of the art factory at Pondicherry was inaugurated by Mr.Yagi, Chairman of
Fujitsu General Ltd. In its rather short span of existence it has many creditable achievements.
It has set up a world class manufacturing facility at Pondicherry that will now be hub for the
entire SAARC region. It had set a record of sorts in the Air-Conditioning industry by virtue
of being the company to have sold the highest quantity in the first full year of operations. In
its second year of operations also it has achieved phenomenal growth. It is committed to
providing the Indian customer with the latest world class quality products that conforms to
international standards. The simultaneous global launch of the world’s first ceiling wall A/C
stands testimony to this commitment of ours.

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Some of the high profile projects executed by ETA Group., include:

 Texas Instruments  American International Schools

 Warner Lambert  Procter & Gamble
 Cisco  Reliance
 Intel  Wipro Limited
 Ford  National Stock Exchange Limited
 HSBC  General Electric
 Standard Chartered Bank  Oracle
 Hotel Leelaventure Limited  Tidel Park Limited
 ITC Limited  ICICI
 Trident Hotel  MIOT Hospital
 City Bank  IGCAR
 BCCI  ISRO
 Le Royal Meridian
 Nokia
 Life Style

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PRODUCTS
Window A/C

The Technically superior Window A/C

AMG13G AXG18 / AXG24

This machine is engineered to survive all extremes- heat, dust and humidity. Unique
super wave technology ensures faster, more efficient cooling unlike other A/Cs.Its high EER
ensures more value for money as power consumption is kept to the bare minimum.Self-
lubricated fan motors sealed in aluminium die cast body which will increase the life span of
motors. Tropicalised compressors usage ensures high performance at very high ambient
conditions serve you efficiently for a really long time.

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Split A/C

The World’s most powerful Hi-Wall Split A/C

ASG18 / ASG24 / ASG30

Superior engineering ensures that this A/C survives all extremes. Dust, heat, humidity
and the roughest climate across the world. With the highest cooling capacity,it is the most
energy efficient with an increased airflow. Its unique double auto swing ensures uniform
cooling in every corner of the room. Sturdier fins; ABS plastic, fire retardant components,
special Japenese steel sheet metal parts and special Polyurethane coating ensure greater
durability.

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 4 ANALYSIS AND INTERPRETATION

Table 1
Classification of the respondents based on gender

Gender No. of Respondents Percentage

Male 154 72.7
Female 58 27.3
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 72.7% of respondents are male and 27.3% of
respondents are female.

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 Chart 1
Chart showing the classification of the respondents based on gender

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 Table 2
Classification of Respondents based on Age group

Age No. of Respondents Percentage

18 – 25 70 22.0
26 – 35 82 38.7
36 – 45 37 17.4
45 and above 23 10.9
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 38.7% of respondents belongs to 26 - 35 age group,
22% of the respondents are belongs to 18 - 25 age group, 17.4% of respondents are 36-45 age
and10.9% of respondents are above 45 and above age.

Chart 2

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 Chart showing the age of the respondents

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 Table 3
Classification of Respondents based on Marital Status

Marital Status No. of Respondents Percentage

Married 124 58.5
Unmarried 88 41.5
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 58.5% are married and 41.5% are unmarried.

Chart 3

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 Chart showing the marital status of the respondents

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 Table 4
Classification of Respondents on the basis of Educational Qualification

Education No. of Respondents Percentage

School Education 34 16.1
College Education 178 83.9
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 83.9% of respondents are having college education
6.1% are finished only school education.

Chart 4
Chart showing the educational qualification of the respondents
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37 | P a g e
 Table 5

Classification of Respondents on the basis of Occupational Status

Occupation No. of Respondents Percentage

Students 43 22.2
Employed 68 32.0
Professional 50 23.6
Business 31 14.7
Retired 3 1.5
Others 17 8.0
Total 212 100

(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 32% of the respondents are employed, 23.2% are
professional, 22.2% are students, 14.7% of them are business, 8% are in the other category,
1.5% of the respondents are retired persons.

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 Chart 5

Chart showing the occupation of the respondents

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 Table 6
Classification of Respondents on the basis of Family income per month

Income Level No. of Respondents Percentage

Less than 15,000 44 20.8
15,001 to 30,000 72 34.0
30,001 – 45,000 60 28.3
45,001 and above 36 16.9
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 34% of the respondents earn between 15,001 –
30,00028,3% of the respondents earn between 30,001 – 45,000 20,8% of the respondents earn
less than 15,000 and16.9% of the respondents earn more than 45,001.

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 Chart 6

Chart showing the family income level of the respondents per month

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 Table 7

Classification of Respondents on the basis of Family size

Family Size No. of Respondents Percentage

Two 7 3.3
Three 38 18.0
Four 93 43.8
Five 43 20.3
More than 5 31 14.6
Total 212 100

(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 43.8% of the respondents have a family size of four
20.3% of the respondents have family size of five ,18% of the respondents have the family
size of three ,14.6% of the respondents have the family size of more than five and 3.3% of the
respondents have the family size of two.

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 Chart 7

Family size of the respondents

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 Table 8

Classification of Respondents on the basis of awareness on branded Ac’s

which are available in market

Branded Ac’s No. of Respondents Percentage

General 49 23.1
LG 31 14.6
Samsung 30 14.2
Voltas 27 12.7
Hitachi 21 9.9
Godrej 13 6.2
Bluestar 16 7.5
Panasonic 12 5.6
Videocon 13 6.2
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 23.1% of the respondents are aware of the general
brand in market, 14.6% of the respondents are aware about the LG brand in market and 56%
of the respondents are aware of Panosonic brands available in market.

Chart 8

Chart showing respondents are ranking awareness of the brand

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45 | P a g e
 Table 9

Classification of Respondents on the basis of currently using brands

Branded Ac’s No. of Respondents Percentage

General 41 19.3
LG 34 16.0
Samsung 29 13.7
Voltas 18 8.5
Hitachi 18 8.5
Godrej 17 8.1
Bluestar 17 8.1
Panasonic 13 6.1
Videocon 13 6.1
Others 12 5.7
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 19.3% of the respondents using General brand ,
16.0% of the respondents using LG brand and 13.7% of the respondents using Samsung
brand

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 Chart 9

Chart showing the respondents are currents using a/c brand

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 Table 10

Table showing the opinion about the reason which makes them to buy a
particular brand

Features No. of Respondents Percentage

Brand Name 121 57
Price 23 10.8
After Sales / Service 7 3.4
Better look and style 19 8.9
Price Value for money 22 10.4
Offers and Scheme 11 5.2
Any others 9 4.3
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 57% of the respondents say that the brand name
makes them to buy a particular brand, 10.8% of the respondents say that the price of the
product makes them to buy and43% of the respondents say that they buy the brand because of
other reasons.

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 Chart 10

Chart showing the opinion about the reason which makes them to buy a
particular brand

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 Table 11

Opinion of the features of the Ac’s that they are giving more
preference/importance

Features No. of Respondents Percentage

Brand Name 118 55.8
Price 15 7.2
After Sales / Service 9 4.3
Better look and style 24 11.4
Price Value for money 22 10.4
Offers and Scheme 12 5.7
Easily Maintenance 11 5.2
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 55.8% of the respondents say that they give more
preference / importance to brand name, 11.4% of the respondents say that they give more
preference / importance for the better look & style and 52.% of the respondents say that they
give more preference / importance for the easy maintenance.

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 Chart 11

Chart showing the Respondents ranked his / her features and importance
of A/C

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 Table 12

Opinion the Respondents regarding the selection of the

particular brand

Choosing Factors No. of Respondents Percentage

Self Option 72 33.9
Family Choice 72 33.9
Friend’s Recommendation 24 11.4
Dealers Approach 16 17.5
Advertisement 24 11.4
Others 4 1.9
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 33.9% of the respondents say that they select a
particular brand regarding family choice ,17.5% of the respondents say that they select a
particular brand regarding the dealers approach1 and 9% of the respondents say that they
select a particular brand regarding other influencing factors

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 Chart 12

Chart showing the how to choose the Brand by the respondents

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 Table 13

Respondents distribution on the basis of time period of using the Ac’s

Period of using No. of Respondents Percentage

1 – 3 months 26 12.2
4 – 6 months 55 25.9
7 months – 1 year 31 14.7
1 year – 2 years 39 18.4
More than 2 years 61 28.8
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that; 28% of the respondents say that they use the A/C for
more than 2 years ,25.9% of the respondents say that they use A/C for 7 months – 1 year and
18.4% of the respondents say that they use the A/C for 1 – 2 years.

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 Chart 13

Chart showing the usage period of A/C by the respondents

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 Table 14

Respondents opinion as on the Performance of A/c that they are currently

using

Performance No. of Respondents Percentage

Excellent 58 27.4
Very Good 95 44.8
Good 50 23.6
Average 9 4.2
Poor 0 -
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 44.8% of the respondents say very good about the
performance of A/C ,27.4% say excellent about the performance of A/C and 0% of the
respondents say poor about the performance of A/C.

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 Chart 14

Chart showing the respondents option on A/c Performance

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 Table 15

Respondents opinion as on recommendation of the brand that they are

currently using

Recommendation No. of Respondents Percentage

Certainly 109 51.5
Uncertainly 71 33.5
Will not recommend 32 15.0
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 51.5% of the respondents say that they certainly
recommend their brand and 15% of the respondents say that they will not recommend their
brand.

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 Chart 15

Chart showing the respondents recommend the brand to his / her friends
and relatives

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 Table 16

Respondents opinion as on switching over another brand

Switch over No. of Respondents Percentage

Yes 80 37.8
No 132 62.2
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 62.2% of the respondents say that they won’t switch
over another brand and 37.8% of the respondents say that they will switch over to another
brand.

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 Chart 16

Chart showing the respondents will change / not change come across new
model

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 Table 17

Respondents opinion as on price structure of the branded Ac’s currently

available in market

Price structure No. of Respondents Percentage

Costlier 89 42.0
Reasonable 108 51.0
Cheaper 15 7.0
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 51% of the respondents say that the price of the
branded A/C are reasonable and 7% of the respondents say it is cheaper.

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 Chart 17

Chart showing the respondents option on A/C brand which are currently
available in market

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 Table 18

Respondents opinion about mostly attracted the feature among the

branded Ac’s

Feature No. of Respondents Percentage

Climate Control 89 41.99
Freshness 78 36.79
Chillness Coverage 28 13.20
Easy Installation 13 6.13
Others 4 1.88
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 41.99% of the respondents say that they are mostly
attracted by the climate control of A/C, 36.79% of the respondents say that they are mostly
attracted by the Freshness and 1.9% of the respondents say because of other features.

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 Chart 18

Chart showing the respondents Features that mostly attracted to the

branded A/C

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 Table 19

Respondents opinion about other feature required in Ac’s

Initiated Factors No. of Respondents Percentage

Yes 34 16.1
No 178 83.9
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 83.9% of the respondents say that they do not require
other feature in A/C’s and 16.% of the respondents say that they require other features in
A/C’s.

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 Chart 19

Chart showing any other features in which respondents want more in A/C

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 Table 20

Respondents opinion about after sales / service

Initiated Factors No. of Respondents Percentage

Excellent 33 15.5
Very Good 92 43.4
Average 53 25.0
Below Average 34 16.1
Total 212 100
(Sources : Primary data)

INTERPRETATION
From the above table, it is inferred that 43.4% of the respondents say very good opinion
about the sales and service ,25% of the respondents say average about the sales and service
and 16.1% of the respondents say below average.

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 Chart 20

Chart showing the respondents opinion on after

sales / service in A/C brand

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 WEIGHTED AVERAGE METHOD

Table 21

Respondents Opinion about mostly attracted the feature

among the branded AC’s
No. of Weighted
Features Respondents Total Average
Freshness 89 x 5 445
Climate Control 78 x 4 312
Chillness Coverage 28 x 3 84
Easily Installation 13 x 2 26 4.1
Others 4x1 4
871
(Sources : Primary data)

INTERPRETATION
The above table clearly shows the arithmetic calculation value 4.1 lies between 4 and
5. So the majority of the respondents are mostly attracted the feature is climate control.

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 WEIGHTED AVERAGE METHOD

Table 22

Respondents opinion about after sales / service

No. of Weighted
Initial Features Respondents Total Average
Excellent 33 x 4 132
Very good 92 x 3 276
Average 53 x 2 106 2.5
Below Average 34 x 1 34
548

(Sources : Primary data)

INTERPRETATION
The above table clearly shows the arithmetic calculation value is 2.5 lies between 2
and 3. So the majority of respondents opinion is very good after sales and service.

CHAPTER – V

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 FINDINGS, SUGESTIONS & CONCLUSION
5.1 FINDINGS

 72.7% of respondents are male and 27.3% of respondents are female.

 38.7% of respondents belongs to 26 - 35 age group, 22% of the respondents are
belongs to 18 - 25 age group, 17.4% of respondents are 36-45 age and 10.9% of
respondents are above 45 and above age.
 Marital status of the respondents, 58.5% are married and 41.5% are unmarried.
 83.9% of respondents are having college education and 6.1% are finished only school
education
 32% of the respondents are employed, 23.2% are professional, 22.2% are students,
14.7% of them are business, 8% are in the other category, and 1.5% of the
respondents are retired persons.
 34% of the respondents earn between 15,001 – 30,000, 28.3% of the respondents earn
between 30,001 – 45,000, 20.8% of the respondents earn less than 15,000 and 16.9%
of the respondents earn more than 45,001.
 43.8% of the respondents have a family size of four, 20.3% of the respondents have
family size of five, 18% of the respondents have the family size of three, 14.6% of the
respondents have the family size of more than five, 3.3% of the respondents have the
family size of two.
 23.1% of the respondents are aware of the General brand in market, 14.6% of the
respondents are aware about the LG brand in market and 5.6% of the respondents are
aware of Panosonic brands available in market.
 19.3% of the respondents using General brand, 16.0% of the respondents using LG
brand, 13.7% of the respondents using Samsung brand
 57% of the respondents say that the brand name makes them to buy a particular brand,
10.8% of the respondents say that the price of the product makes them to buy, and
4.3% of the respondents say that they buy the brand because of other reasons.
 55.8% of the respondents say that they give more preference / importance to brand
name, 11.4% of the respondents say that they give more preference / importance for
the better look & style, 5.2 % of the respondents say that they give more preference /
importance for the easy maintenance.

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  33.9% of the respondents say that they select a particular brand regarding family
choice, 17.5% of the respondents say that they select a particular brand regarding the
dealers approach, 1.9% of the respondents say that they select a particular brand
regarding other influencing factors.
 28% of the respondents say that they use the A/C for more than 2 years, 25.9% of the
respondents say that they use A/C for 7 months – 1 year, 18.4% of the respondents say
that they use the A/C for 1 – 2 years.
 44.8% of the respondents say very good about the performance of A/C, 27.4% say
excellent about the performance of A/C, 0% of the respondents say poor about the
performance of A/C.
 51.5% of the respondents say that they certainly recommend their brand, 15% of the
respondents say that they will not recommend their brand.
 62.2% of the respondents say that they won’t switch over another brand, 37.8% of the
respondents say that they will switch over to another brand.
 51% of the respondents say that the price of the branded A/C are reasonable, 7% of
the respondents say it is cheaper.
 41.99% of the respondents say that they are mostly attracted by the climate control of
A/c, 36.79% of the respondents say that they are mostly attracted by the freshness of
A/c, 1.9% of the respondents say because of other features.
 83.9% of the respondents say that they do not require other feature in A/C’s. 16.% of
the respondents say that they require other features in A/C’s.
 43.4% of the respondents say very good opinion about the sales and service, 25% of
the respondents say average about the sales and service, 16.1% of the respondents say
below average.
 Weighted average results says “The Majority of respondents are mostly attracted the
feature is Climate control
 weighted average results says “The majority of respondents opinion is Very Good
after sales and service

5.2 SUGGESTIONS

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  There should be a proper advertisement campaign to create awareness regarding the
general A/C.
 There should be a proper after sales & service
 The general A/C should add more features to it to become a market leader.
 The general A/C should develop a good promotional activity.
 General A/C should have more dealers to cover a wide area coverage.

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5.3 Conclusion

What may be the product, the customer is the boss. Market must give importance for
customer satisfaction. So the degree of customer satisfaction is more, they will recommend
other to purchase the same brand. It will increase the reputation and sales volume of the
products. This study deals with the customer satisfaction with branded air conditioners in
Coimbatore City. The customers care also to provide information with regard to factors. It is
very much useful to the manufacturer.

Most of the respondents are aware of the general brand in market and next preference
is LG and Samsung. LG and Samsung very near to general category.

In future manufacturer can rectify the nature of the problem faced by the Customer
there by the sales volume and customer satisfaction will increase.

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