INTRODUCTION




CUSTOMER
SATISFACTION

Customer
satisfaction
refers
to
the
extent
to
which
customers
are
happy


with
 the
 products
 and
 services
 provided
 by
 a
 business
 firm.
 Customer


satisfaction
 levels
 can
 be
 measured
 using
 survey
 techniques
 and


questionnaires.
 Customer
 satisfaction
 plays
 a
 huge
 role
 in
 the
 success
 (or


failure)
 of
 a
 firm’s
 marketing
 campaign.

Creating
 a
 successful
 marketing


strategy
 begins
 and
 ends
 with
 knowing
 your
 target
 audience.
 In
 a


competitive
 marketplace
 where
 businesses
 compete
 for
 customers,


customer
 satisfaction
 is
 seen
 as
 a
 key
 differentiator
 and
 increasingly
 has


become
a
key
element
of
business
strategy.


In
this
context,
Philip
Kolter
says,
“of
the
dozens
of
categories
of
human


action
working,
sleeping,
walking,
eating,
breathing,
buying
and
so
forth
the


one
 of
 primary
 interest
 to
 the
 marketer
 is
 buying.
 The
 buyer’s
 decision


making
process
can
be
very
elaborate”.
As
pinpointing
a
consumer’s
buying


decision
 is
 hard,
 it
 could
 be
 determined
 by
 his
 multi
 dimensional


personality.


Hence,
 from
 the
 fact
 that
 all
 of
 us
 are
 consumers
 one
 way
 or
 another,


marketing
 manager
 must
 identify
 and
 measure
 the
 importance
 of
 his


customers.
Gaining
high
levels
of
customer
satisfaction
is
very
important
to


a
 business
 because
 satisfied
 customers
 are
 most
 likely
 to
 be
 loyal
 and
 to


make
 repeat
 purchases
 and
 to
 use
 a
 wide
 range
 of
 products
 offered
 by
 a


 1

business.
 Knowing
 what
 your
 customer
 wants
 then
 makes
 it
 possible
 to


tailor
everything
you
do
to
pleasing
the
customers
e.g.
providing
the
goods


that
customers
want,
in
the
packaging
that
they
want,
in
retail
outlets
which


are
convenient
to
use
and
well
placed.


The
 need
 for
 achieving
 customer
 satisfaction
 is
 increasing
 day
 by
 day.


The
reason
is
obvious.
Modern
world
is
competitive
and
consumers
occupy


and
pivotal
position.
All
business
activities
are
directed
towards
him
in
such


a
 manner
 that
 the
 customer
 satisfaction
 can
 be
 achieved.
 In
 the
 modern


world,
 products
 are
 produced
 and
 services
 and
 rendered
 as
 per
 the
 taste,


requirements
 and
 needs
 of
 the
 target
 customer.
 Otherwise,
 good/services


will
be
left
unsold.


Whether
 the
 buyer
 is
 satisfied
 after
 purchases
 depends
 on
 the
 offer’s


performance
 in
 relation
 to
 buyer’s
 expectations.
 According
 to
 Philip
 Kotler


“satisfaction
 is
 a
 person’s
 feelings
 pleasure
 disappointment
 resulting
 from


comparing
 a
 product’s
 perceived
 performance
 (outcome)
 in
 relation
 to
 his


or
her
expectations”.


The
factors
which
lead
to
high
levels
of
customer
satisfaction
including:


 Products
 and
 Services,
 which
 are
 customer
 focused
 and
 hence,


provide
high
levels
of
value
for
money.


 Customer
 Service,
 which
 gives
 personal
 attention
 to
 the
 needs
 of


individual
customers.



 2

  After
 Sales
 Service
 ‐
 following
 up
 the
 original
 purchase
 with
 after


sales
support
such
as
maintenance
and
customer
contacts
etc.



 



 Customer
satisfaction
is
seen
as
a
proof
of
delivering
a
quality
product
or


service.
 It
 is
 believed
 that
 customer
 satisfaction
 brings
 sales
 growth,
 and


market
share.
This
turn
will
not
only
generate
higher
profits
but
will
provide


competitive
 strength
 for
 long‐term
 business
 vitality
 and
 growth.
 The


following
figure
illustrates
these
hypothetical
relationships.


Relationship
marketing



Relationship
 marketing
 involves
 creating,
 maintaining
 and
 chancing


strong
 relationships
 with
 customers
 and
 other
 stakeholders
 including


employee’s
dealers,
suppliers
and
shareholders.
It
is
an
attempt
at
the
long‐

term
 relationship
 and
 is
 an
 exercise
 in
 brand
 building,
 which
 is
 an


interaction
 between
 the
 brand
 and
 its
 customer.
 Relationship
 marketing
 is


on
 going
 interaction
 between
 a
 buyer
 and
 seller
 in
 which
 the
 seller


continuously
 improves
 its
 understanding
 of
 the
 buyer’s
 and
 he
 becomes


increasingly
loyal
to
the
seller.
It
goes
beyond
conventional
marketing
seeks


to
 establish
 and
 enduring
 relationship
 with
 the
 customers.
 The
 ultimate


outcome
 is
 the
 building
 of
 unique
 to
 company
 assets
 called
 a
 marketing


network.


A
 marketing
 network
 consists
 of
 the
 company
 and
 its
 supporting


stakeholders
(customers,
suppliers,
distributors,
retailers
and
agencies
and


others)
with
whom
it
has
built
mutually
profitable
business
relationship.
It


 3

is
 a
 thesis
 of
 sale
 promotion,
 which
 is
 a
 short
 term,
 exercises
 a
 temporary


incentive
 for
 people
 to
 buy.
 Relationship
 market
 is
 the
 key
 to
 relating


customers.
The
company
hopes
to
convert
many
of
its
qualified
prospects
in


to
 first
 time
 customers,
 and
 to
 then
 convert
 those
 satisfied
 first
 time


customers
 in
 to
 repeat
 customers.
 Both
 first‐time
 customers
 and
 repeat


customers
may
continue
to
buy
from
competitors
as
well.
The
company
acts


to
 convert
 repeat
 customers
 in
 to
 clients.
 The
 next
 challenge
 is
 turn
 client


into
advocates,
customers
who
praise
the
company.
The
ultimate
is
to
turn


advocates
 in
 to
 partners,
 where
 the
 customer
 and
 the
 company
 work


together
actively.


It
shouldn’t
be
thought
that
relationship
marketing
is
a
replacement
for


transactional
 marketing
 as
 it
 has
 been
 practiced
 to
 date.
 Rather
 it
 is
 an


augmentation
and
a
refocusing
of
the
marketing
concept
with
the
emphasis


placed
 upon
 strategies
 to
 enhance
 customer
 relation
 and
 loyalty.
 In


transactional
 marketing,
 customer
 service
 commitment
 to
 quality
 is
 often


ignored,
 where
 as
 in
 relationship
 marketing
 the
 focus
 is
 on
 retaining
 the


customer
 the
 getting
 the
 repeat
 business.
 Hence
 the
 quality
 of
 products,


service
 and
 direct
 with
 customers
 receive
 a
 highly
 priority.
 Johnson
 &


Johnson
 sends
 mailers
 and
 gift
 packs
 to
 expectant
 mothers
 and
 continues


the
relationship
until
the
child
reaches
adulthood.


One
 of
 the
 distinguishing
 characteristics
 of
 the
 relationship
 marketing


approach
 is
 that
 it
 places
 the
 emphasis
 upon
 the
 need
 to
 take
 a
 cross‐


 4

functional
 approach
 to
 customer
 satisfaction.
 The
 basic
 philosophy
 of


understanding
 relationship
 marketing
 is
 that
 the
 goal
 of
 all
 marketing


activity
 should
 the
 established
 of
 mutually
 beneficial
 partnership
 with


customers.
 Hence
 the
 challenge
 to
 management
 is
 to
 develop
 marketing


strategies
that
are
designed
to
create
enduring
customer
relationship.




Understanding
the
consumers

Satisfying
 the
 consumer
 calls
 for
 a
 lot
 of
 research
 and
 analysis
 and


careful.
Systematic
and
through
is
most
essential.
Practically
in
all
cases,
the


satisfying
of
a
need
or
want
is
anticipated
and
there
becomes
the
reason
for


purchase.
 Therefore,
 whether
 the
 product
 is
 going
 to
 live
 unto
 the


consumer’s
satisfaction
will
be
determined
by
the
principles
as
laid
down
by


Graves.



1. The
inherent
ability
of
the
product
to
perform
as
anticipated.



2. Advertising.


3. The
promises
direct
or
implied,
of
the
sales
man.



4. The
 consumer’s
 use
 (or
 abuse)
 of
 the
 product
 as
 intended
 by


manufacturer.



Reasons
for
the
creation
of
dissatisfied
consumers:



1. Unfulfilled
promises
made
by
the
sales
man.


2. Failure
to
inform
customers
as
to
condition
of
service.



 5

 3. Failure
of
one
product
to
perform
as
anticipated
losses
customers
for


a
whole
rage
of
other
products.



4. Over‐enthusiasm
 can
 lead
 to
 exaggerated
 claim
 and
 disappointed


customers.



5. When
research
becomes
too
academic
to
be
of
value.



Advertising
 which
 promises
 “The
 greatest…”
 or
 “The
 biggest…”is


preparing
the
way
of
customer’s
dissatisfaction.
The
sales
man,
who
is
eager


to
create
a
sale,
takes
the
first
step
towards
making
dissatisfied
customers.


To
conclude,
consumer
behavior
according
to,
might
very
well
be
viewed
in


the
framework
of
discovering
problem
solving.



The
behavior
of
the
consumer
is
goal
oriented
and
therefore
purposive.


He
learns
what
latter
become
habitual
modes
of
reducing
tension.
He
learns


to
 rely
 on
 dependable
 modes
 of
 reducing
 tension
 but
 he
 is
 constantly


dropped
 of
 old
 habits
 and
 taking
 risk
 in
 searching
 out
 new
 means
 of


problem
solving.
It
is
only
through
risk‐taking
and
variation
that
growth
can


occur.



Measurement
of
customer
satisfaction:

Organizations
 are
 increasingly
 interested
 in
 retaining
 existing


customers
while
targeting
non‐customers;
measuring
customer
satisfaction


provides
 an
 indication
 of
 how
 successful
 the
 organization
 is
 at
 providing


products
 and
 /
 or
 services
 to
 the
 marketplace.
 Customer
 satisfaction
 is
 an



 6

ambiguous
and
abstract
concept
and
the
actual
manifestation
of
the
state
of


satisfaction
 will
 vary
 from
 person
 to
 person
 and
 product
 /
 service
 to


produce/service.
 The
 state
 of
 satisfaction
 depends
 on
 a
 number
 of
 both


psychological
 and
 physical
 variables,
 which
 correlate
 with
 satisfaction


behaviors
such
as
return
and
recommend
rate.
The
level
of
satisfaction
can


also
 vary
 depending
 on
 other
 options
 the
 customer
 may
 have
 and
 other


products
 against
 which
 the
 customer
 can
 compare
 the
 organization’s


products.
Because
satisfaction
is
basically
a
psychological
state,
care
should


be
 taken
 in
 the
 effort
 of
 quantitative
 measurement,
 although
 ugh
 a
 large


quantity
of
research
in
this
area
has
recently
been
developed.
Work
done
by


Berry
Brodeur
between
1990and
1998
defined
by
Berry
in
2002
and
known


as
the
ten
domains
of
satisfaction.
These
ten
domains
of
satisfaction
include:


Quality,
 value
 Timelines,
 Efficiency,
 Ease
 of
 Access,
 Environment,
 Inter‐

departmental
 Teamwork,
 Front
 line
 Service
 Behaviors,
 Commitment
 to
 the


Customer
and
Innovation.



 These
 factors
 are
 emphasized
 for
 continuous
 improvement
 and


organizational
change
measurement
and
are
most
often
utilized
to
develop


the
architecture
for
satisfaction
measurement
as
an
integrated
model.
Work


done
by
Parasuraman,
Zeithaml
and
Berry
between
1985
and
1988
provides


the
 basis
 for
 the
 measurement
 of
 customer
 satisfaction
 with
 a
 service
 by


using
the
gap
between
the
customer’s
expectation
of
performance
and
their


perceived
 experience
 of
 performance.
 This
 provides
 the
 measurer
 with
 a


satisfaction
“gap”
which
is
objective
and
quantitative
in
nature.
Work
done


 7

by
Cronin
and
Taylor
propose
the
“confirmation/disconfirmation”
theory
of


combining
the
“gap”
described
by
Parasuraman,
Zeithaml
and
Berry
as
two


different
 measures
 (perception
 and
 expectation
 of
 performance)
 into
 a


single
measurement
of
performance
according
to
expectation.
According
to


Garbrand,
 customer
 satisfaction
 equals
 perception
 of
 performance
 divided


by
expectation
of
performance.



The
usual
measures
of
customer
satisfaction
involve
a
survey
with
a
set


of
 statements
 using
 a
 Likert
 Technique
 or
 scale.
 The
 customer
 is
 asked
 to


evaluate
each
statement
and
in
term
of
their
perception
and
expectation
of


performance
of
the
organization
being
measured.



Customer
value:

Until
 quiet
 recently
 it
 was
 assumed
 that
 customer
 value
 was
 show


respective
 buyers
 judged
 a
 good
 service
 on
 some
 combinations
 of
 quality


and
 price.
 Today,
 value
 is
 a
 much
 boarder
 concept,
 which
 also
 includes


dimension
 like
 convenience,
 timely
 delivery
 and
 service.
 Customer
 now


wants
 more
 of
 the
 dimensions
 they
 value.
 If
 the
 value
 convenience,
 they


want
 their
 purchase
 to
 busy;
 if
 they
 value
 low
 price,
 they
 want
 lowest


possible
rates;
if
they
value
speed,
they
want
the
purchase
to
be
extremely


fast.



To
provide
customer
value
a
manufacture,
retailer,
or
service
provided


dose
 not
 have
 to
 complete
 on
 all
 these
 direction.
 Search
 conducted
 by


management
experts
such
as
Michael
Treacy
and
Fred
Wiersema
suggests



 8

that
firms
cannot
succeed
by
being
all
things
to
all
people.
Instead
they
must


find
the
unique
value
that
they
alone
can
deliver
to
a
selected
market.
Many


successful
firms
have
chosen
to
deliver
outstanding
customer
value
with
one


of
the
three
value
strategies
namely,
best
price,
best
product,
or
best
service.


Thus
 a
 firm
 chooses
 a
 value
 propositions
 by
 assessing
 its
 customers,


competitive
 and
 itself.
 So
 now
 the
 expression
 “Customer
 value”
 can
 be


defined
as
–
“Whatever
Customers
Value”.



Customer
value
and
satisfaction:


Customer
 satisfaction
 is
 an
 impotent
 fuscous
 of
 the
 marketing
 concept.
 To


find
 out
 the
 worth
 of
 a
 satisfied
 customer,
 firms
 have
 to
 calculate
 the


financial
value
of
satisfied
customer
overtime.



These
 calculations
 have
 focused
 marketer’s
 attention
 on
 customer


retention.
 Ford
 Motor
 Company
 has
 set
 a
 target
 of
 increasing
 customer


retention‐the
percentage
of
ford
owners
whose
next
car
is
also
a
Ford
from


60%
to
80%.



INDUSTRY
PROFILE


History
of
Plastic



In
 this
 era
 of
 many
 astonishing
 industrial
 developments,
 probably
 no


industry
has
under
gone
such
rapid
growth
and
development
as
the
plastics


industry.
 According
 to
 most
 authorities
 in
 this
 field,
 the
 plastics
 industry


really
began
in
1868.

A
young
American
printer,
named
John
Wesley
Hyatt,


was
searching
for
a
new
material
to
be
used
as
a
substitute
for
ivory
in
the


 9

making
 of
 billiard
 balls.
 A
 $10,000
 prize
 had
 been
 offered
 for
 such
 a


discovery.
He
found
that
cellulose
nitrate,
formed
by
the
action
of
nitric
acid


on
cotton
cellulose,
mixed
with
camphor
and
treated
with
proper
amounts


of
 pressure
 and
 heat,
 produced
 a
 substance,
 which
 could
 be
 molded
 into


desired
 shapes.
 He
 called
 his
 new
 material
 "Celluloid.”
 It
 was
 not
 until


almost
 the
 beginning
 of
 the
 twentieth
 century
 that
 a
 second
 plastic
 was


produced.
 Adolph
 Spitteler,
 a
 German,
 mixed
 sour
 milk
 and
 formaldehyde


together
to
form
a
material,
which
was
really
casein
plastic.
In
1909,
Dr.
Leo


Baekeland,
an
American
born
in
Belgium,
was
trying
to
produce
a
synthetic


resin.
He
did
this
successfully
by
mixing
phenol
and
formaldehyde
together


under
certain
conditions,
thus
producing
the
first
synthetic
resin.
This
new


plastic
 was
 called
 "Bakelite.”
 Many
 new
 plastics
 have
 been
 made
 since


"Bakelite."
Production
of
plastics
has
increased
over
2000%
since
"Bakelite"


was
 first
 produced,
 and
 there
 are
 now
 more
 than
 twenty
 known
 types.


Research
 along
 the
 lines
 of
 plastics
 has
 given
 a
 great
 impetus
 to
 research


and
invention
in
many
other
different
fields
of
endeavor.
Millions
of
dollars


are
 spent
 yearly
 in
 plastics
 research,
 trying
 to
 find
 new
 plastics
 and
 to


improve
the
existing
ones.
Much
research
will
be
done
in
the
future
to
lower


the
cost
of
producing
plastics
so
that
their
consumption
will
become
greater.


In
 spite
 of
 the
 varied
 and
 widespread
 application
 of
 plastics
 in
 practically


every
phase
of
everyday
life,
the
possibilities
of
this
wonderful
new
material


have
been
by
no
means
exhausted.
It
seems
safe
to
say
that
if
the
application



 10

and
use
of
plastics
continue
to
increase
at
the
present
rate,
we
may
be
living


in
a
"Plastics
Age."



Issues
facing
the
plastic
industry



1.
Sustaining
development


 a)
Obtaining
acceptable
profits


 b)
Environmental
stewardship


 c)
Corporate
responsibility



2.
Economic
issues


 a)
Captive
consumption


 b)
Rise
of
Middle
Eastern
production


 c)
State
of
global
economies

3.
Address
Plastics’
role
in
possible
climate
changes





4.
Develop
new
products

For
e.g.
improved
packaging

a)
Longer
shelf
life


 b)
Less
wastage
of
products


 c)
Improved
health
and
safety



5.
Feed
stock
supply





6.
International
trade





7.
Improve
plants


 a)
New
processes


 b)
Upgrade
old
plants







 11

Global
scenario

Last
 few
 years
 have
 been
 tumultuous
 for
 plastics
 and
 petrochemical


sector
due
to
steep
rise
in
oil
prices,
which
has
adversely
affected
the
global


economies.
 However,
 considering
 the
 feed
 stock
 advantage
 and
 abundance


of
 oil
 reserves
 newer
 petrochemical
 complexes
 are
 being
 established
 in


Middle‐east
countries.
i.e.
Oman,
Saudi
Arabia,
UAE,
etc.
It
is
projected
that


by
the
end
of
2010,
Ethylene
capacity
in
Middle
East
would
reach
to
about


35
million
tons
per
annum
and
Polypropylene
(PP)
capacity
to
touch
about
7


million
 tones
 per
 annum.
 The
 US
 Petrochemical
 sector
 may
 lose
 Export


competitiveness,
as
most
of
the
Ethylene
capacities
in
USA
are
Ethane
based,


which
 are
 not
 cost
 competitive
 and
 are
 capable
 to
 produce
 only


Polyethylene
 (PE).
 Similarly,
 the
 revamping
 of
 European
 Petrochemical


Complexes
 would
 be
 imperative
 as
 they
 are
 based
 on
 old
 and
 expensive


technology
 and
 are
 not
 cost
 competitive
 with
 the
 Middle‐East
 companies


having
 the
 biggest
 advantage
 of
 raw
 material
 at
 their
 doorstep.
 China,


Middle
East
and
India
would
be
the
major
global
players,
where
expansion


and
augmentation
of
existing
petrochemical
capacity
would
take
place
in
the


next
5
years.


Worldwide
 Plastics
 Industry
 witnessed
 a
 steady
 growth
 in
 the
 year


2007,
which
is
reflected
in
the
increased
consumption
figures
of
all
types
of


Plastics
 materials.
 Asia
 has
 been
 world’s
 largest
 plastics
 consumer
 for


several
 years,
 accounting
 for
 about
 30%
 of
 the
 global
 consumption


excluding
 Japan,
 which
 has
 share
 of
 about
 6.5%.
 Next
 to
 Asia
 is
 North



 12

America
with
26%
share,
then
Western
Europe
with
23%
share
in
the
global


market.



The
key
growth
segment
remains
“Packaging”
which
accounted
for
over


35%
 of
 the
 global
 consumption.
 Amongst
 the
 individual
 Plastics
 Materials,


Polyolefin
accounted
for
53%
of
the
total
consumption,
(PE
with
33.5%,
PP


with
 19.5%)
 followed
 by
 PVC
 –
 16.5%,
 PS‐8.5%,
 PET
 &
 PU
 ‐
 5.5%,
 Styrene


copolymers
(ABS,
SAN,
etc)
–
3.5%
other
engineering
&
high
performance
&


specialty
plastics,
blends,
alloys,
thermosetting
plastics
–
13%.
 


In
 recent
 years,
 significant
 aspect
 of
 plastics
 material
 growth
 globally


has
 been
 the
 innovation
 of
 newer
 application
 areas
 for
 plastics
 such
 as


increasing
plastics
applications
in
automotive
field,
rail,
transport,
defense
&


aerospace,
 medical
 and
 healthcare,
 electrical
 &
 electronics,


telecommunication,
 building
 &
 infrastructure,
 furniture,
 etc.
 Plastics
 have


become
the
key
drivers
of
innovations
&
application
development.
Polymer‐

Electronics
is
one
such
area,
which
has
opened
up
new
avenues
for
plastics;


from
 organic
 light
 emitting
 diodes
 to
 electro‐optical
 and
 bioelectrical


complements,
from
low‐cost
plastic
chips
to
flexible
solar
cells.
New
plastics


can
 conduct
 electricity
 and
 emit
 light.
 While
 polymers
 will
 not
 replace


silicon
 as
 semiconductors,
 they
 do
 offer
 completely
 new
 opportunities
 for


low‐priced
 mass‐manufactured
 products.
 Radio‐frequency
 identification


(RFID)
tags
in
smartcards
for
identification
and
access
control,
payment
and


ticket
 systems,
 price
 labels,
 product
 tracking
 systems
 in
 the
 logistics
 chain



 13

or
 packaging
 that
 monitors
 product
 quality
 –
 many
 things
 are
 in
 offing.


Growth‐trend
 of
 plastics
 has
 proved
 that
 there
 has
 been
 a
 quiet
 “Plastics
–


revolution”
taking
place
in
the
material
–
sector.
 


Global
Per
capita
consumption
of
Plastics
is
(in
Kgs)




World
Average
 26


North
America
 90


West
Europe
 65


East
Europe
 10


China
 12


India
 5.0


South
East
Asia
 10


South
America
 18


Worldwide,
the
plastics
and
polymer
consumption
will
have
an
average


growth
 rate
 of
 5%
 and
 it
 will
 touch
 a
 figure
 of
 227
 million
 tons
 by
 2015.


Globally,
it
is
projected
that
PET
(Bottle
grade)
will
have
the
highest
growth


rate
of
about
11%
AAGR.



 14

 Diagram
1:
Global
Growth
Rates


(Annual
 Average
 Growth
 Rate)
 amongst
 all
 polymers,
 followed
 by
 PP,
 PE,


PVC
and
PS
in
the
descending
order,
as
depicted
in
the
Figure.


Furthermore,
 the
 grades
 of
 PE
 (HDPE,
 LLDPE,
 LDPE)
 are
 expected
 to


grow
 about
 GDP
 growth
 annually
 up
 to
 2020.
 The
 forecast
 about
 global


polyethylene
demand
is
as
follows:
 


•
 Global
 polyethylene
 demand
 is
 estimated
 to
 grow
 an
 average
 4.4%


annually
 through
 2020.
 This
 is
 


about
 1%
 above
 the
 expected
 global
 GDP


growth.




 15

•
 LLDPE
 is
 expected
 to
 experience
 the
 fastest
 growth,
 with
 an
 average


annual
 growth
 rate
 of
 6.2
 


percent.
 This
 comes
 at
 the
 expense
 of
 LDPE,


which
is
expected
to
grow
only
1.8%
during
the
same



period.
 


•
HDPE
growth
is
estimated
to
average
4.6
percent.
 


Diagram
2:
The
Global
Demand
up
to
2020
projected


The
Global
PE
Demand
in
terms
of1000
tons
per
year
up
to
2020
is

projected:




 16

 Similarly,
 Polyethylene
 (PE)
 dominates
 the
 future
 capacity
 addition


amongst
 different
 polymers
 by
 2008,
 which
 is
 evident
 from
 the
 Global


Commodity
Polymer
Capacity
Additions
between
2004
and
2008.


Indian
plastic
industry



The
 Indian
 Plastic
 Industry
 has
 taken
 great
 strides.
 In
 the
 last
 few


decades,
 the
 industry
 has
 grown
 to
 the
 status
 of
 a
 leading
 sector
 in
 the


country
 with
 a
 sizable
 base.
 The
 material
 is
 gaining
 notable
 importance
 in


different
spheres
of
activity
and
the
per
capita
consumption
is
increasing
at


a
 fast
 pace.
 Continuous
 advancements
 and
 developments
 in
 polymer


technology,
 processing
 machineries,
 expertise,
 and
 cost
 effective


manufacturing
 is
 fast
 replacing
 the
 typical
 materials
 in
 different
 segments


with
plastics.





On
the
basis
of
value
added,
share
of
India's
plastic
products
industry
is


about
0.5%
of
India's
GDP.
The
exports
of
plastic
products
also
yield
about


1%
of
the
country's
exports.
The
sector
has
a
large
presence
of
small
scale


companies
 in
 the
 industry,
 which
 account
 for
 more
 than
 50%
 turnover
 of


the
 industry
 and
 provides
 employment
 to
 an
 estimate
 of
 about
 0.4
 million


people
in
the
country.
Approximately
Rs.
100
billion
are
invested
in
the
form


of
fixed
assets
in
the
plastic
processing
industry.


History

Indian
plastic
industry
has
made
significant
achievements
in
the
country


ever
 since
 it
 made
 a
 promising
 beginning
 with
 the
 start
 of
 production
 of



 17

polystyrene
 in
 1957.
 The
 industry
 is
 growing
 at
 a
 rapid
 pace
 and
 the
 per


capita
consumption
of
plastics
in
the
country
has
increased
several
times
as


compared
to
the
earlier
decade.
The
chronology
of
production
of
polymers
is


summarized
as
under
‐


1957
‐
Polystyrene


1959
‐
LDPE


1961
‐
PVC


1968
‐
HDPE


1978
‐
Polypropylene


Currently,
 the
 Indian
 plastic
 industry
 is
 highly
 fragmented
 with
 an


estimate
of
around
25,000
firms
and
over
400,000
employees.
The
top
100


players
 of
 Indian
 Plastic
 Industry
 account
 for
 just
 20%
 of
 the
 industry


turnover.
Barring
10
to
15%
of
the
firms
that
can
be
categorized
as
medium


scale
enterprises,
most
of
the
units
operate
on
a
small
–
scale
basis.



The
 immense
 potential
 of
 Indian
 plastic
 industry
 has
 motivated
 Indian


manufacturers
 to
 acquire
 technical
 expertise,
 achieve
 superior
 quality


standards
 and
 build
 capacities
 in
 different
 facets
 of
 the
 booming
 plastic


industry.
Substantial
developments
in
the
plastic
machinery
sector
coupled


with
 matching
 developments
 in
 the
 petrochemical
 sector
 both
 of
 which


support
 the
 plastic
 processing
 industry,
 have
 facilitated
 the
 plastic


processors
 to
 develop
 capacities
 to
 cater
 both
 the
 domestic
 as
 well
 as


overseas
exports.



 18

Exports

In
the
calendar
year
2006,
the
value
of
world
plastic
export
was
US$
375


billion.
However
the
share
of
India
was
less
than
1
%
with
exports
of
worth


US$
3.187
billion.
The
percentage
of
growth
in
export
was
21
%.
During
this


trend
 of
 growth
 in
 exports,
 the
 export
 of
 plastics
 raw
 material
 increased


from
55
%
to
60
%
of
the
total
export
of
plastic
goods,
while
the
export
of


processed
plastic
goods
has
registered
a
negative
growth
from
45
%
to
9
%.


According
to
recent
reports,
the
industry
is
said
to
be
losing
an
opportunity


of
 USD
 300
 million
 through
 value
 addition
 on
 the
 raw
 materials
 that
 are


exported.


The
top
10
trading
partners
for
Indian
plastic
industry
are


o USA


o UAE


o Italy


o UK


o Belgium


o Germany


o Singapore


o Saudi
Arabia


o China


o Hong
Kong


The
Indian
plastic
exports
were
valued
at
about
US$
532
million
during



 19

FY
 2004
 (1st
 half
 FY2005
 exports
 US
 $
 295
 million).
 With
 significant


capacity
 additions
 leading
 to
 over‐capacity
 in
 domestic
 markets
 during


FY2001
 and
 beyond,
 polymer
 exports
 have
 increased
 considerably.


However,
due
to
the
lower
competitiveness
of
the
plastic
products
industry,


polymers
have
been
exported
directly.




Products

The
major
plastic
products
that
India
exports
are
‐




Raw
 Materials
 ‐
 PVC,
 polypropylene,
 polyethylene,
 polystyrene,
 ABS,

polyester
chips,
urea
/
phenol
formaldehyde,
master
batches,
additives,
etc



Packaging
‐
PP
/
HDPE
woven
sacks
/
bags
/
fabrics,
poly‐lined
jute
goods,

box
 strapping,
 BOPP
 tapes,
 a
 range
 of
 plastic
 sheeting
 /
 films
 (of
 PVC,
 PP,

HDPE,
 nylon,
 FRP,
 PTFE,
 acrylic,
 etc.),
 pouches,
 crates,
 bottles,
 containers,

barrels,
cans,
carboys,
shopping
/
carrier
/
garbage
bags.



Films
 ‐
 Polyester
 film,
 BOPP
 film,
 mesh,
 metalized
 /
 multilayer
 films
 and

photo
films



Consumer
 Goods
 ‐
 Toothbrushes,
 cleaning
 brushes,
 hair
 brushes,
 nail
 /

cosmetic
brushes,
combs,
molded
furniture
(chairs,
tables,
etc.)
house
ware,

kitchenware,
 insulated
 molded
 house
 ware,
 microwave
 re‐heatable

containers,
mats
and
mattresses,
water
bottles,
gifts
and
novelties,
a
range
of

stationery
items
like
files,
folders,
mathematical
instruments,
etc.



Writing
Instruments
‐
Pens,
ball
pens,
markers,
sign
pens,
refills,
etc.




Travel
 ware
 ‐
 Molded
 luggage,
 soft
 luggage,
 a
 range
 of
 bags
 like
 school


 20

bags/ladies
handbags,
wallets,
etc.



Leather
Cloth
/
Artificial
Leather
Floor
Coverings
‐
Vinyl
floor
coverings

and
linoleums




Foam
 Boards
 Drip
 Irrigation
 Systems/Components
 Pipes
 &
 Pipe

Fittings
‐
Made
of
PVC,
HDPE,
PP,
FRP,
nylon



Water
 Storage
 Tanks
 Toys
 and
 Games
 Engineering
 Plastics
 ‐
 Auto

components,
 parts
 for
 various
 machinery
 /
 equipment
 in

telecommunications,
railways,
electronics,
etc.



Electrical
 Accessories
 FRP/GRP
 Products
 ‐
 Safety
 helmets/equipment,

pipes,
storage
tanks,
etc.



Sanitary
Fittings
‐
Cisterns,
toilet
seats,
bathroom
fittings,
etc.



Construction
‐
PVC
profiles,
doors,
windows,
etc.

Tarpaulins
Laminates
Fishnets/Fishing
Lines
Cordage
/
Ropes
/
Twins

Eyewear
‐
Lenses,
spectacle
frames,
goggles,
etc.



Laboratory
Ware
Surgical
/
Medical
‐
Disposable
syringes,
blood
/
urine

bags,
I.V.
sets,
etc.





 21

 Trends
in
Indian
Export
of
Plastic
Products­


India
Plastic
Products
Exports
FY
2004
US$
531.6
Million



 22

 Polymer
Demand
in
India
(MMT)


Figure
1


Plastic
Industry
India
­
Perspective

Over
 the
 years,
 India
 has
 made
 significant
 progress
 in
 the
 industrial


world
with
healthy
economic
growth.
On
purchase
power
parity
basis,
it
is


one
of
the
top
five
global
economics
and
is
expected
to
be
the
third
largest


by
the
turn
of
this
decade.
Plastics,
one
of
the
fastest
growing
industries
in


India,
 have
 a
 vital
 role
 to
 play.
 Indian
 Plastics
 Industry
 is
 expanding
 at
 a


phenomenal
pace.
Major
international
companies
from
various
sectors
such


as
 automobiles,
 electronics,
 telecommunications,
 food
 processing,
 packing,


healthcare
 etc.
 have
 set‐up
 large
 manufacturing
 bases
 in
 India.
 Therefore,


demand
for
plastics
is
rapidly
increasing
and
soon
India
will
emerge
as
one


of
the
fastest
growing
markets
in
the
world.
 


The
 next
 two
 decades
 are
 expected
 to
 offer
 unprecedented


opportunities
 for
 the
 plastic
 industry
 in
 India.
 This
 would
 necessitate



 23

industry
initiatives
to
foster
investments,
grow
the
market,
upgrade
quality


standards,
enhance
global
participation,
encourage
Indian
industry,
to
adopt


and
adapt
to
world‐class
technology
and
manufacturing
practices



Despite
instability
in
International
prices
of
polymer
materials
in
2006
‐
07,


plastics
 industry
 in
 the
 country
 has
 consolidated
 its
 performance
 by


consuming
 about
 5.0
 million
 tonnes
 of
 polymers,
 as
 compared
 to
 Chinese


consumption
of
about
30
million
tonnes
in
2007.
 Indian
 plastics
 industries


are
enthusiastic
about
the
acceleration
of
the
growth
engine
in
the
next
3
to


5
years
due
to
capacity
expansion
of
existing
petrochemical
complexes
and


setting
up
of
new
crackers
in
the
country
currently.
Reliance
Industries
Ltd.,


(RIL)
 has
 about
 75%
 share
 of
 Indian
 Petrochemical
 Cracker
 capacity,


followed
by
medium
sized
capacity
of
Gas
Authority
of
India
Ltd.
(GAIL)
and


Haldia
Petrochemicals
Ltd.,
(HPL).
RIL
has
ambitious
plan
of
augmenting
its


PP
 capacity
 from
 1010
 KT
 to
 2600
 KT
 by
 the
 year
 2010.
 Indian
 Oil


Corporation
 (IOC)
 has
 also
 planned
 an
 800
 K
 tonnes
 naphtha
 cracker
 at


Panipat
at
an
investment
of
Rs.6300
crores
to
produce
800
KT
of
PE
and
PP


each
at
Panipat.
IOC
would
also
be
setting
up
a
production
capacity
150
KT


PP
at
Chennai
by
year
2009
as
well
as
styrene,
which
is
not
being
produced


in
India.
These
positive
factors
of
availability
of
polymeric
materials
would


infallibly
 be
 harbinger
 in
 accelerating
 the
 growth
 of
 plastics
 sector
 in
 the


near
future.




 24

Future
Forecast

The
Indian
plastic
industry
clearly
has
the
potential
to
continue
its
fast


growth.
 However,
 over
 the
 next
 few
 years,
 competition
 in
 the
 industry
 is


expected
 to
 increase
 considerably,
 as
 a
 result
 of
 global
 trends,
 which
 will


become
 applicable
 to
 the
 liberalizing
 economy
 of
 country.
 To
 survive
 the


competition,
both
polymer
manufacturers
and
processors
will
need
to
adopt


radically
new
methods
and
approaches
to
reduce
costs,
improve
market
and


customer
service
and
management
of
performance.





The
per
capita
consumption
of
plastics
in
India
is
well
below
the
world


average.
 However
 it
 also
 reflects
 the
 many
 years
 of
 growth
 ahead,
 as
 the


country's
 economy
 continues
 to
 grow
 and
 upgrade
 the
 usage
 of
 products.


Translating
the
expected
growth
rate
into
incremental
demand,
it
is
obvious


that
the
country
will
remain
one
of
the
largest
sources
of
additional
demand


for
almost
all
kinds
of
plastics.



Hence,
it
is
clear
that
plastics
will
continue
to
be
a
growth
industry,
with


boosting
 prospects
 for
 fresh
 investments
 in
 polymerization
 and


downstream
 processing
 capacity.
 This
 is
 in
 contrast
 to
 the
 situation
 in


various
other
countries,
where
growth
prospects
are
limited,
either
because


of
stagnant
demand
or
due
to
the
historical
over
building.
In
such
countries,


the
 overall
 outlook
 would
 be
 far
 less
 promising,
 with
 the
 key
 imperatives


being
cost
cutting
and
capacity
rationalization.



 25

COMPANY
PROFILE


Partnership
Firm

According
 to
 section
 4
 of
 The
 Indian
 Partnership
 Act
 1932,
 defines


‘partnership’
 as
 “the
 relationship
 between
 persons
 who
 have
 agreed
 to


share
the
profits
of
a
business
carried
on
by
all
or
any
of
them
acting
for
all.”



 If
two
or
more
persons
join
hands
to
run
the
business
successfully,
such


mutual
relationship
based
on
agreement
among
these
persons
is
technically


called
 ‘partnership’.
 The
 people
 who
 have
 entered
 into
 partnership
 are


individually
 known
 as
 ‘partners
 ‘
 and
 collectively
 as’
 Firm’.
 The
 liability
 of


partner
is
unlimited.


The
main
rules
of
partnership
are,


 Profit
sharing


 Interest
on
capital


 Interest
on
loan


 Interest
on
drawings


 Remuneration
to
partners



 26

 REDSTAR
POLY
PRODUCTS


Plastics,
 the
 wonderfully
 mouldable
 material,
 seem
 to
 have
 taken
 over


the
 world
 today.
 The
 innumerable
 products
 made
 out
 of
 it
 find
 infinite


variety
of
uses
in
almost
all
walks
of
life.



Redstar
Poly
Products
was
incepted
in
the
year
1997;
it
has
emerged
as


a
 leading
 manufacturer
 of
 plastic
 house
 holds
 articles.
 Redstar
 is
 a


Registered
 Partnership
 firm
 under
 the
 Indian
 Partnership
 Act
 1932.
 The


firm
 started
 its
 production
 and
 marketing
 of
 various
 plastic
 household


articles
 from
 the
 year
 1997.
 Their
 plastic
 products
 are
 molded
 to
 desired


shapes
and
sizes
in
attractive
colors.
Manufacturing
wide
variety
of
products


requires
an
unending
supply
of
raw
materials
to
meet
the
immediate
orders


placed
by
their
customers.


Redstar
 produces
 different
 articles
 for
 household
 activities.
 The
 firm


started
production
of
22
products
and
now
it
is
about
46
products
at
good


market
potential
in
Kerala,
India.
The
firm
is
situated
at
Poravoor,
Karikkad


Village,
 Thrissur
 District,
 Kerala
 with
 sophisticated
 facilities.
 The
 firm
 is


concentrating
in
the
production
of
quality
products
at
reasonable
price.
The


firm
has
got
ISO
9001:2000
certifications
for
its
quality.



 Ever
 Since
 its
 inception,
 the
 relentless
 quest
 for
 quality
 has
 made


Redstar’s
 products
 a
 resounding
 success
 across
 Kerala
 State.
 There
 is
 only


one
 mantra
 behind
 its
 success,
 Quality.
 Right
 from
 selecting
 the
 purest
 of



 27

virgin
plastics
to
moulding
using
the
most
advanced
machineries,
emphasize


on
global
standards.


Having
 made
 significance
 advances
 in
 the
 last
 several
 years,
 Redstar


Poly
 Products
 is
 now
 a
 fully
 integrated
 company
 with
 the
 ability
 and


infrastructure
 to
 take
 a
 product
 from
 discovery
 through
 research
 and


development,
moulding
it
to
perfection
and
into
various
markets
using
vivid


distribution
 network.
 The
 regular
 addition
 of
 new
 products
 is
 just
 one
 of


many
reasons
that
make
the
company
all
the
more
attractive.


Departments

 Human
Resource
Department

 Finance
Department

 Marketing
Department

 Works
Department



Finance
Department

Finance
 Manager
 heads
 this
 department.
 Under
 his
 supervision,
 one


Chief
 Accountant
 is
 there.
 Two
 assistants
 are
 there
 to
 help
 the
 Chief


Accountant.
 Finance
 department
 is
 controlling
 the
 day‐to‐day
 expenses


inside
 the
 company
 and
 they’re
 also
 responsible
 for
 the
 wage
 and
 salary


administration,
 provident
 fund
 and
 gratuity
 allowances,
 raw
 material


purchases.
 It
 also
 performs
 all,
 accounting
 and
 financial
 activities
 of
 the


organization
 and
 maintains
 different
 types
 of
 books
 and
 ledger.
 Cash


receipts
and
disbursements
are
made
through
this
department.





 28

Human
Resource
Department

The
 Human
 Resource
 Manager
 heads
 this
 department.
 There
 is
 one


assistant
 also.
 This
 department
 is
 responsible
 for
 the
 welfare
 measures,


wage
 and
 salary
 administration,
 safety
 measures,
 recruitment
 etc.
 This


department
for
controls
the
administrative
activities
of
the
firm.
Employees


are
paid
monthly
salary
with
D.A,
HRA
etc.


Works
Department


Work
 manager
 is
 one
 who
 controls
 all
 production
 activities,
 mould


settling
 and
 quality
 control.
 Work
 manager
 control
 all
 the
 activities
 inside


the
 production
 plant.
 Under
 work
 manager
 there
 is
 a
 quality
 section,


machine
 operators,
 supervisors
 and
 helpers.
 In
 the
 plant
 there
 are
 100


employees.
 Three
 shifts
 are
 there.
 It
 is
 8
 hours
 in
 each
 shift.
 In
 the
 plant,


production
 is
 according
 to
 the
 order
 creation.
 For
 fast
 moving
 products,


there
is
batch
production
and
for
slow
moving
products,
order
is
taken
and


then
the
production
starts.





Marketing
Department

The
firm
has
a
strong
marketing
department.
Marketing
Manager
heads


this
 department.
 Under
 his
 supervision,
 the
 store
 and
 dispatch
 works
 are


done
with
the
help
of
a
General
Supervisor.
All
the
marketing
strategies
are


discussed
 and
 executed
 by
 this
 team
 with
 suggestions
 from
 General


Manager
and
Managing
Director.
Company
is
having
a
distribution
channel



 29

all
 over
 Kerala.
 The
 products
 are
 distributed
 through
 agency
 and
 direct
 to


customers.


Products
of
the
firm


Redstar
Poly
Products
is
producing
plastic
household
articles.
Here
the
main


object
of
production
is
the
optimum
use
of
resources
at
optimum
cost.
The


firm
 is
 concentrating
 in
 the
 production
 of
 quality
 products
 at
 reasonable


rate.



 In
 this
 firm,
 there
 is
 production
 of
 different
 products.
 Their
 arrays
 of


plastic
 molded
 products
 are
 made
 from
 high
 quality
 raw
 materials
 like


virgin
 grade
 HPDE,
 Co‐Polymers
 etc
 for
 commercial
 as
 well
 as
 residential


purposes.


 Buckets
with/without
lids

 Drums
with/without
lids

 Plastic
basins

 Dust
bins

 Pedal

 Air
tight
containers

 Service
trays

 Utility
boxes

 Plastic
baskets

 Water
jugs

 Laundry
baskets

 File
tray

 Tubs





 30

Small
Scale
Industry
Registration
(SSI)





 In
 their
 own
 interest,
 all
 existing
 small
 scale
 units
 or
 intending


entrepreneurs
 employing
 more
 than
 ten
 workers
 should
 get
 themselves


registered
with
the
with
the
Director
of
Industries
in
their
states.
A
copy
of


this
application
for
registration
should
be
sent
to
the
Director
of
Small
Scale


Industries
 Service
 Institute
 in
 the
 concerned
 state.
 Such
 registrations
 are


required
for
a
firm
or
concern
to
be
entitled
as
Small
Scale
Industries
Unit.
It


will
 facilitate
 the
 concern
 for
 getting
 assistance
 from
 Government
 and
 for


obtaining
 machinery
 on
 Hire
 Purchase
 System
 from
 NSIC.
 REDSTAR
 POLY


PRODUCTS
has
got
the
certificate
of
permanent
registration
as
SSI.


Benefits
as
SSI





 In
India,
entrepreneurs
are
offered
a
number
of
a
number
of
incentives


because
 they
 facilitate
 decentralization
 of
 industries
 and
 also
 facilitate


transformation
 of
 traditional
 technique
 into
 a
 modern
 technique.
 The


Government
has
announced
various
development
programs
like
DIC’s
PMRY


program,
export
promotion,
reservation
of
items
etc.
for
encouraging
those


industries.
 It
 has
 also
 announced
 ‘financial
 assistance’
 to
 such
 concerns
 by


way
of
SIDBI,
NABARD,
ICICI
and
Banks
etc



 Apart
 from
 the
 above
 other
 facilities
 like,
 registration
 concession,
 tax


benefit
 etc.
 are
 also
 benefited
 by
 such
 concerns.
 Recently,
 during
 the
 year


2000
the
Central
Govt.
has
declared
some
special
benefits
for
SSS
units.



 31

  Excise
 duty
 exemption
 limit
 enhanced
 from
 Rs.5000000/‐
 to


Rs.1
crore


 Capital
subsidy
of
12%
for
investment
in
technology
in
selected


sectors


 Provision
 of
 20%
 projected
 annual
 turnover
 to
 be
 given
 as


working
 capital
 loan
 for
 Khadhi
 and
 village
 industries
 and
 so


on.



 Sales
 tax,
 on
 products
 raised
 by
 any
 small‐scale
 industrial
 unit
 for
 the
















after
 its
 registration
 under
 SSI
 sector
 is
 exempted.
 The
 Govt.
 has
 also


allowed
three
years
additional
exemption
apart
from
the
five
years
already


given,
under
the
expansion
and
modernization
scheme.
The
only
condition
is


such
unit
must
invest
25%
of
the
fixed
block
during
the
time
of
expansion.


The
 firm
 gets
 sales
 tax
 exemption
 3%
 against
 form
 18
 on
 purchase
 of
 raw


material
 from
 registered
 dealers
 within
 the
 state.
 As
 the
 concern
 ‘C’
 From


with
 it
 has
 to
 pay
 4%
 CST
 on
 purchase
 of
 raw
 materials
 required
 on
 its


production.



 Unfortunately
 according
 to
 the
 last
 financial
 report,
 the
 govt.
 has


withdrawn
all
the
tax
exemptions
and
subsidies
provided
to
SSI
units.
Under


the
purview
of
income
tax,
no
tax
benefits
are
available
to
SSI
units.




 32

 ORGANIZATIONAL
CHART




Managing
Director




Secretary


General
Manager


Finance
 HR
 Marketing
 Works


Manager
 Manager
 Manager
 Manager


Quality

Chief
 Assistant
 General
 Section

Accountant
 Manager
 Supervisor


Machine

Operators

Assistants

Dispatch
 Store

Supervisors


Supervisor
 Supervisors


Helpers
 Helpers











 33

 RESEARCH
METHODOLOGY



Statement
of
the
problem

Customer
 is
 the
 central
 figure
 of
 all
 marketing
 activities.
 It
 is
 the


customers
who
determine
the
growth,
prosperity
and
even
the
existence
of


business
 enterprise.
 Customers’
 mind
 is
 the
 deciding
 factor
 behind
 his


buying
patterns
with
regard
to
product
or
service.


A
marketer
should
plan
his
production
and
distribution
to
suit
the
needs


and
 convenience
 of
 consumers.
 Customer
 Satisfaction
 is
 the
 key
 factor
 for


the
development
and
up
gradation
of
a
firm.


This
 study
 reveals,
 the
 Customer
 Satisfaction
 level
 of
 Redstar
 Poly


Products,
the
reason
for
their
satisfaction
and
dissatisfaction
of
the
services,


their
 suggestions
 and
 comments
 etc
 can
 be
 understood.
 This
 study
 will
 be


providing
a
large
number
of
ideas
for
the
further
development
of
the
firm.


Scope
of
the
study

The
 existence
 of
 an
 organization
 is
 heavily
 depends
 upon
 the


satisfaction
 it
 customers.
 Without
 proper
 customer
 the
 company
 will
 not


have
goodwill.
So
the
customer
satisfactions
play
a
vital
role
in
the
success


of
an
organization.



 The
 scope
 of
 the
 study
 is
 to
 find
 out
 the
 existing
 level
 of
 satisfaction


among
 the
 customers
 of
 the
 company
 and
 to
 analyze
 the
 results
 and
 give



 34

suggestions
 so
 as
 to
 improve
 the
 quality
 of
 the
 firm
 in
 serving
 their


customers
and
maintaining
their
product
quality.


Mode
of
research

The
 research
 study
 was
 conducted
 only
 by
 questioning
 method
 to
 find


out
the
customer
satisfaction
on
product
quality
as
well
as
service
quality
of


the
firm.
This
study
was
done
by:



 Designing
questionnaires



 Selecting
samples
from
the
group
of
respondents


 Executing
questionnaire


 Conducting
personal
interviews



 Comparison
of
questionnaires


 Analyzing
collected
data



 Interpretation
of
collected
data



 Presentation
of
the
findings
and
suggestions






Research
design

Research
 design
 is
 the
 arrangement
 of
 conditions
 for
 collection
 of


analysis
 of
 data
 in
 the
 manner
 that
 aims
 to
 combine
 relevance
 to
 the


research
 purpose
 with
 economy
 in
 procedure.
 The
 research
 is
 followed
 by


descriptive
 nature
 of
 the
 study.
 Here
 the
 study
 was
 mainly
 conducted
 by


using
descriptive
research.
The
study
is
mainly
connected
with
primary
data


collected
from
the
respondents.




 35

Sample
design


The
 process
 of
 extracting
 a
 sample
 from
 respondents
 is
 called
 sampling


process.
 The
 section
 of
 sample
 to
 conduct
 the
 research
 depends
 upon
 the


nature
and
scope
of
the
study
along
with
the
objective
to
be
achieved.



Sample
size


The
 sample
 size
 selected
 for
 this
 study
 is
 50
 samples,
 the
 survey
 has


been
 conducted
 by
 questionnaire
 and
 personal
 interview
 method
 was
 also


administrated
in
order
to
make
the
research
more
effective.



Sources
of
data
collection


Data
 has
 been
 collected
 through
 both
 primary
 and
 secondary
 data


collection
 methods.
 Primary
 data
 has
 been
 collected
 using
 personal


interview
 and
 questionnaires.
 Secondary
 data
 is
 collected
 from
 journals,


previous
literatures,
projects
and
the
web.


Tools
used
for
analysis

For
 extracting
 meaningful
 information
 from
 the
 data
 obtained,
 data


analysis
 is
 done.
 The
 tools
 used
 for
 the
 analysis
 are
 tables,
 charts,


percentage
 analysis,
 averages
 and
 diagrams.
 The
 collected
 data
 are
 coded,


edited
and
tabulated
in
the
form
of
tables.


Period
of
study

The
time
period
allotted
for
the
study
is
from
12th
January
2010
to
06th


February
2010.



 36

Objectives:



 Modern
 marketing
 is
 customer
 oriented.
 Therefore,
 the
 study
 of
 the


customer
 satisfaction
 is
 important
 as
 well
 as
 the
 main
 objectives
 for
 any


business
enterprise.


Following
are
some
of
the
objectives
of
the
study.


 To
find
out
the
existing
level
of
customer
satisfaction
of
Redstar
Poly


Products.



 To
identify
the
efficiency
of
present
marketing
strategies
in
satisfying


the
customers.


 To
 evaluate
 the
 effect
 of
 present
 pricing
 policy
 in
 customers

satisfaction.


 To
study
the
causes
of
dissatisfaction,
if
any.


 To
ascertain
the
knowledge
among
the
customers
with
respect
to
the


customer
satisfaction
activities
of
Redstar.


 To
 study
 the
 factors
 influencing
 the
 customers
 for
 buying
 the

products.


 To
find
out
areas
where
services
and
products
can
be
improved.


 To
 study
 the
 relationship
 between
 customer
 satisfaction
 and
 the


performance
of
the
company.


 To
give
suggestions
for
improving
the
customer
satisfaction.




 37

Limitations:



The
following
are
the
limitation
faced
during
the
course
of
the
study.


 The
main
limitation
of
the
project
was
time
duration.


 As
it
is
an
academic
project,
the
lack
of
professionalism
will
be
there.


 Confidentiality
of
the
organization.


 The
 study
 was
 conducted
 using
 sample
 respondents
 so
 the
 custom


limitations
of
sample
data
will
be
there.



 The
respondents
are
not
ready
to
disclose
some
useful
information.






















































 38

 REVIEW
OF
LITERATURE




What
is
Customer
or
Consumer
Satisfaction?



 According
 to
 Oliver
 (1997),
 Customer
 satisfaction
 is
 the
 customer’s


fulfillment
response.
It
is
a
judgment
that
a
product
or
service
feature,
or
the


product
 or
 service
 itself,
 provided
 (or
 is
 providing)
 a
 pleasurable
 level
 of


consumption‐related
 fulfillment,
 including
 levels
 of
 under‐
 or
 over


fulfillment.





 According
 to
 Tse
 and
 Wilton
 (1988),
 The
 consumer’s
 response
 to
 the


evaluation
 of
 the
 perceived
 discrepancy
 between
 prior
 expectations
 (or


some
 norm
 of
 performance)
 and
 the
 actual
 performance
 of
 the
 product
 as


perceived
after
its
consumption.





 According
 to
 Churchill
 and
 Surprenant
 (1982),
 Conceptually,
 an


outcome
of
purchase
and
use
resulting
from
the
buyer’s
comparison
of
the


rewards
 and
 costs
 of
 the
 purchase
 relative
 to
 anticipated
 consequences.


Operationally,
similar
to
attitude
in
that,
it
can
be
assessed
as
a
summation


of
satisfactions
with
various
attributes.



 


 According
 to
 Westbrook
 and
 Reilly
 (1983),
 An
 emotional
 response
 to


the
 experiences
 provided
 by
 and
 associated
 with
 particular
 products
 or


services
purchased,
retail
outlets,
or
even
molar
patterns
of
behavior
such
as


shopping
 and
 buyer
 behavior,
 as
 well
 as
 the
 overall
 marketplace.
 An


emotional
response
triggered
by
a
cognitive
evaluative
process
in
which
the



 39

perceptions
 of
 (or
 beliefs
 about)
 an
 object,
 action,
 or
 condition
 are


compared
to
one’s
values
(or
needs,
wants,
desires).



A
GENERAL
DEFINITIONAL
FRAMEWORK
OF
CONSUMER
SATISFACTION




By
Academy
of
Marketing
Science
(AMS)
Review
Volume
2000






 Any
 generic
 definition
 of
 satisfaction
 will
 be
 subject
 to
 chameleon


effects.
 Rather
 than
 presenting
 a
 generic
 definition
 of
 satisfaction,
 AMS


identify
 the
 conceptual
 domain
 of
 satisfaction,
 delineate
 specific


components
 necessary
 for
 any
 meaningful
 definition
 of
 satisfaction,
 and


outline
 a
 process
 for
 developing
 context‐specific
 definitions
 that
 can
 be


compared
across
studies.







As
 concluded
 by
 the
 literature
 review
 and
 validated
 by
 the
 group
 and


personal
interview
data,
there
appears
to
be
three
essential
components
of


consumer
satisfaction:






1.
Summary
affective
response,
which
varies
in
intensity;




2.
Satisfaction
focus
around
product
choice,
purchase
and
consumption;
and




3.
Time
of
determination
which
varies
by
situation,
but
is
generally
limited

in
duration.






 In
 this
 framework,
 satisfaction
 is
 limited
 to
 an
 affective
 response


reflecting
satisfaction
as
a
holistic
evaluative
outcome.
This
distinction
does


not
 preclude
 the
 importance
 of
 cognitions
 in
 determining
 satisfaction;


however,
 cognitions
 are
 bases
 for
 the
 formation
 of
 satisfaction,
 but
 the


cognitions
 are
 not
 satisfaction.
 This
 is
 similar
 to
 choice
 in
 that
 the
 brand



 40

chosen
 may
 be
 based
 on
 cognitive
 evaluations;
 however,
 the
 choice
 is
 not


cognition
but
the
brands
selected
or
not
selected.








 The
 summary
 affective
 response
 is
 defined
 as
 the
 holistic
 nature
 of


consumer’s
 state
 of
 satisfaction,
 the
 focus
 is
 the
 object(s)
 of
 consumer’s


state,
and
timing
refers
to
the
temporal
existence
of
satisfaction.
According


to
 field
 data
 results
 and
 supported
 by
 extant
 satisfaction
 literature,
 these


components
are
applicable
across
situations
and
across
consumers.



All
 of
 these
 components
 are
 critical
 to
 appropriately
 operationalize
 the


definition,
 to
 produce
 valid
 results,
 and
 make
 accurate
 interpretations
 and


managerial
decisions.
Thus,
the
following
components
should
be
included
in


any
context
specific
definition
of
consumer
satisfaction.







Consumer
satisfaction
is:




A
 summary
 affective
 response
 of
 varying
 intensity.
 The
 exact
 type
 of

affective
 response
 and
 the
 level
 of
 intensity
 likely
 to
 be
 experienced
 must
 be

explicitly
defined
by
a
researcher
depending
on
the
context
of
interest.




With
 a
 time­specific
 point
 of
 determination
 and
 limited
 duration.
 The

researcher
 should
 select
 the
 point
 of
 determination
 most
 relevant
 for
 the

research
questions
and
identify
the
likely
duration
of
the
summary
response.
It

is
 reasonable
 to
 expect
 that
 consumers
 may
 consciously
 determine
 their

satisfaction
 response
 when
 asked
 by
 a
 researcher;
 therefore,
 timing
 is
 most

critical
to
ascertain
the
most
accurate,
well­formed
response.





Directed
toward
focal
aspects
of
product
acquisition
and/or
consumption.

The
researcher
should
identify
the
focus
of
interest
based
on
the
managerial
or

research
 question
 they
 face.
 This
 may
 include
 a
 broad
 or
 narrow
 range
 of


 41

acquisition
or
consumption
activities/issues.





By
 fleshing
 out
 these
 components,
 researchers
 should
 be
 able
 to
 develop


specific
definitions
that
are
conceptually
richer
and
empirically
more
useful


than
 previous
 definitions.
 To
 develop
 context‐relevant
 definitions
 and


measures,
researchers
must
be
able
to
identify
both
the
questions
they
are


interested
 in
 answering
 and
 some
 basic
 information
 about
 the
 setting
 and


consumers.
Specifically,
the
researcher
will
need
to
provide
details
about
all


three
components
of
satisfaction.







Satisfaction
 Focus
 ‐
 The
 difficult
 decision
 for
 a
 researcher
 is
 to
 determine


the
degree
of
detail
needed
to
define
the
satisfaction
focus.
For
example,
is


satisfaction
with
the
product
an
appropriate
focus
(e.g.,
the
automobile),
or


should
 it
 be
 limited
 to
 specific
 attributes
 (e.g.,
 gas
 mileage)
 or
 specific


benefits
 (e.g.,
 the
 automobile
 is
 fun
 to
 drive)?
 One‐way
 researchers
 could


identify
 the
 appropriate
 focus
 or
 foci
 is
 by
 surveying
 or
 interviewing


existing
or
new
customers
during
the
purchase
process
or
at
various
points


following
 purchase
 (Gardial
 et
 al.
 1994).
 This
 information
 would
 allow


researchers
to
segment
their
customers
on
the
basis
of
what
foci
are
actually


considered
 when
 they
 determine
 their
 satisfaction. The purpose would be to

develop a battery of satisfaction survey instruments tailored to different types of

customers and research questions.


Timing
 ‐
 As
 noted
 above,
 there
 are
 two
 important
 properties
 related
 to


timing;
 time
 of
 determination
 and
 duration.
 When
 examining
 time
 of



 42

determination,
the
researcher
must
identify
which
stage
of
the
purchase
and


consumption
 process
 is
 most
 important
 to
 the
 research
 question.
 For


example,
 if
 an
 automobile
 manufacturer
 is
 interested
 in
 repeat
 purchase,


then
the
final
stages
of
consumption
may
be
most
appropriate.
On
the
other


hand,
if
the
firm
were
interested
in
improving
the
warranty
program,
then


earlier
 stages
 would
 be
 most
 appropriate.
 Duration
 will
 also
 help
 identify


the
 most
 appropriate
 time
 of
 determination
 to
 consider.
 For
 example,
 if


satisfaction
is
fleeting,
then
it
should
be
measured
earlier
in
the
process.







Summary
 Response
 ‐
 The
 final
 step
 is
 to
 identify
 appropriate
 affective


responses.
 Intensity
 represents
 the
 key
 properties
 of
 response.
 Affective


responses
 can
 vary
 dramatically
 across
 a
 range
 of
 responses.
 For
 example,


Cadotte,
 Woodruff
 and
 Jenkins
 (1987)
 identify
 ten
 different
 types
 of


affective
 descriptors
 that
 may
 be
 appropriate
 in
 a
 restaurant
 setting.


However,
it
is
unreasonable
to
assume
that
all
of
these
will
be
appropriate
in


another
specific
context.
Researchers
must
select
descriptors
that
accurately


reflect
 the
 emotional
 responses
 to
 the
 relevant
 satisfaction
 focus.
 If
 the


range
 of
 intensity
 is
 too
 large,
 then
 there
 will
 be
 little
 variance
 in
 any


measures
of
satisfaction.
If
the
range
is
too
small,
then
the
researcher
does


not
obtain
the
maximum
information
that
the
 consumers
 can
 provide
 (Cox


1980).













 43

The
notion
of
consumer
satisfaction




 The
basis
for
consumer
satisfaction
or
dissatisfaction
lies
in
mankind's


ability
 to
 learn
 from
 past
 experiences.
 
 Accordingly,
 consumer
 preferences


are
 constantly
 being
 updated
 by
 way
 of
 the
 learning
 process.
 
 Learning


theory
posits,
"A
given
response
is
reinforced
either
positively
or
negatively


to
 the
 extent
 that
 it
 is
 followed
 by
 a
 reward.
 
 Reward,
 in
 turn,
 leads
 to
 an


evaluation
 that
 the
 purchase
 was
 satisfactory,
 and
 hence
 it
 can
 exert
 an


effect
on
brand
beliefs
and
attitudes.

The
probability
of
engaging
in
a
similar


buying
act
will
be
increased
if
there
are
positive
consequences
in
the
act
of


purchase
and
use
and
vice
versa"
(Engel,
Kollat
&
Blackwell,
1968).




 A
basic
tenet
of
marketing
is
that
consumer
satisfaction
with
a
product


is
 likely
 to
 lead
 to
 repeat
 purchases,
 acceptance
 of
 other
 products
 in
 the


product
 line,
 and
 favorable
 word‐of‐mouth
 (Cardozo,
 1965).
 
 However,


while
the
idea
of
post‐purchase
outcome
has
been
included
as
a
variable
in


early
consumer
behavior
models
(Engel,
Kollat
&
Blackwell,
1968;
Howard
&


Sheth,
 1969),
 the
 study
 of
 CS/D,
 as
 a
 separate
 outcome
 of
 the
 purchase


decision,
was
not
given
much
research
attention
until
the
latter
part
of
the


1970s
 (Anderson,
 1973).
 
 Early
 attempts
 to
 understand
 consumer
 post‐

purchase
 responses
 focused
 on
 the
 notion
 of
 cognitive
 dissonance


(Festinger,
 1957).
 
 A
 number
 of
 early
 studies
 suggested
 that
 CS/D
 was
 a


more
 definitive
 outcome
 of
 the
 post‐purchase
 decision
 (Cardozo,
 1965;


Engel,
Kollat
&
Blackwell,
1968).




 In
noting
that
it
"would
indeed
be
an
understatement"
to
say
that
there



 44

is
 no
 general
 agreement
 on
 how
 to
 define
 satisfaction,
 Day
 (1980)
 asserts


that
 "while
 everyone
 knows
 what
 satisfaction
 means,
 it
 clearly
 does
 not


mean
 the
 same
 thing
 to
 everyone".
 
 Early
 conceptualizations
 of
 consumer


satisfaction
 view
 it
 as
 a
 single
 variable,
 which
 involves
 a
 single
 evaluative


reaction
 from
 consumers,
 which
 may
 or
 may
 not
 be
 related
 to
 pre‐

evaluation
concepts.




 In
 discussing
 the
 conceptualization
 of
 consumer
 satisfaction,
 for


example,
 Hunt
 (1977b)
 notes
 that
 “satisfaction
 is
 a
 kind
 of
 stepping
 away


from
 an
 experience
 and
 evaluating
 it…
 
 One
 could
 have
 a
 pleasurable


experience
 that
 caused
 dissatisfaction
 because
 even
 though
 it
 was


pleasurable,
 it
 wasn't
 as
 pleasurable
 as
 it
 was
 supposed
 to
 be.
 
 So


satisfaction/dissatisfaction
 isn't
 an
 emotion,
 it's
 the
 evaluation
 of
 the


emotion".


Theoretical
Framework
for
Customer
satisfaction


Today’s’
 companies
 are
 facing
 their
 toughest
 competition
 ever.
 In
 this


project
 we
 spell
 out
 in
 detail
 how
 business
 firms
 can
 go
 about
 winning


customers
and
outperforming
competitors.
The
answer
lies
in
doing
a
better


job
 of
 meeting
 or
 exceeding
 customer
 expectations.
 Customer
 ‐
 centered


business
firms
are
adept
at
building
customers,
 not
just
products;
they
are


skilled
in
market
engineering,
not
just
product
engineering.



 We
 believe
 that
 customers
 estimate
 which
 offer
 will
 deliver
 the
 most


value.
 Customers
 are
 value
 creators,
 within
 bounds
 of
 search
 costs
 and


limited
knowledge,
mobility
and
income.
They
form
and
expectation
of
value


 45

and
 act
 on
 it.
 Whether
 or
 not
 the
 offer
 lives
 up
 to
 the
 value
 expectation


affects
both
satisfaction
and
repurchases
probability.





Customer
Perceived
Value


 Our
 premise
 is
 that
 customers
 will
 buy
 from
 the
 firm
 that
 they
 see
 as


offering
 the
 highest
 perceived
 value.
 CPV
 is
 the
 difference
 between
 the


prospective
 customers
 evaluation
 of
 all
 the
 benefits
 and
 all
 the
 costs
 of
 an


offering
 and
 the
 perceived
 alternatives.
 Total
 customer
 value
 is
 the


perceived
 monetary
 value
 of
 the
 bundle
 of
 economic,
 functional
 and


psychological
benefits
customers
expect
from
a
given
market
offering.
Total


customer
cost
is
the
bundle
of
costs
customers
expect
to
incur
in
evaluating,


obtaining,
using
and
disposing
of
the
given
market
offering.




Customer
Satisfaction
surveys

Studies
 shows
 that
 through
 customers
 are
 dissatisfied
 with
 one
 out
 of


every
 four
 purchases
 less
 than
 5%
 of
 dissatisfied
 customers
 will
 complain.


Most
customers
will
buy
less
or
switch
suppliers.
Complaint
levels
are
thus


not
 a
 good
 measure
 of
 customer
 satisfaction.
 Responsive
 companies


measure
customer
satisfaction
directly
by
conducting
periodic
surveys.
They


send
 questionnaires
 or
 make
 telephone
 calls,
 to
 random
 sample
 of
 recent


customers.
They
also
solicit
buyers
view
on
their
competitors’
performance.


While
 collecting
 customer
 satisfaction
 data,
 it
 is
 also
 useful
 to
 ask


additional
 questions
 to
 measure
 repurchase
 intention.
 It
 is
 also
 useful
 to



 46

measure
 the
 likelihood
 or
 willingness
 to
 recommend
 the
 company
 and


brand
to
others.
A
high
positive
word
of
mouth
score
indicates
the
company


is
producing
high
customer
satisfaction.




Attracting
and
retaining
customers

In
addition
to
improving
their
relation
with
their
partners
in
the
supply


chain,
many
companies
are
intent
on
developing
stronger
bonds
and
loyalty


with
 their
 ultimate
 customers.
 In
 the
 past,
 many
 companies
 too
 their


customers
for
granted.
Their
customers
may
not
have
had
many
alternative


source
 of
 supply,
 or
 all
 suppliers
 were
 equally
 deficient
 in
 services,
 or
 the


market
was
growing
so
that
the
company
did
not
worry
about
satisfying
its


customers.
Clearly,
things
have
changed.


Today’s
 customers
 are
 harder
 to
 please.
 They
 are
 smarter,
 more
 price


conscious,
 more
 demanding
 less
 forgiving
 and
 approached
 by
 more


competitors
 with
 equal
 or
 better
 offers.
 The
 challenge,
 according
 to
 Jeffery


Gitomer,
 is
 not
 to
 produce
 satisfied
 customers
 several
 competitors
 can
 do


this.
The
challenge
is
to
produce
loyal
customers.


Attracting
customers


Companies
 seeking
 to
 grow
 their
 profits
 and
 sales
 have
 to
 spend


considerable
 time
 and
 resources
 searching
 for
 new
 customers.
 Customer


acquisition
 requires
 substantial
 skills
 in
 lead
 generation,
 lead
 qualification,


and
 account
 conversion.
 To
 generate
 leads,
 the
 company
 develops



 47

advertisements
and
places
them
in
media
that
will
reach
new
prospects;
its


sales
people
participate
in
trade
show
where
they
might
find
new
leads;
and


so
on.
All
this
activity
produces
a
list
of
suspects.
The
next
taste
is
to
qualify


which
 of
 the
 suspects
 are
 really
 goods
 prospects
 and
 this
 is
 done
 by


interviewing
them,
checking
on
their
financial
standing
and
on.


The
 prospects
 may
 be
 graded
 as
 hot,
 warm
 and
 cool.
 The
 sales
 people


first
 contact
 the
 hot
 prospects
 and
 work
 on
 account
 conversion,
 which


involves
 making
 presentations,
 answering,
 objections
 and
 negotiating
 final


terms.


Total
Customer
Satisfaction



 Whether
 the
 buyer
 is
 satisfied
 after
 purchase
 depends
 on
 the
 offer’s


performance
in
relation
to
buyer’s
expectations.
In
general,
satisfaction
is
a


person’s
feelings
of
pleasure
or
disappointment
resulting
from
comparing
a


product’s
performance
or
(outcome)
in
relation
to
his
or
her
expectations.
If


the
 performance
 falls
 short
 of
 expectations,
 the
 customer
 is
 dissatisfied.
 If


the
 performance
 the
 expectations,
 the
 customer
 is
 satisfied.
 If
 the


performance
 exceeds
 the
 expectations,
 the
 customer
 is
 highly
 satisfied
 or


delighted.



Customer
Expectations

How
 do
 buyers
 form
 their
 expectations?
 From
 past
 buying
 experience,


friend’s
and
associate’s
advice,
and
marketers’
and
competitors’
information


and
promises.
If
marketers
raise
expectations
too
high,
the
buyer
is
likely
to



 48

be
 disappointed.
 However,
 if
 the
 firm
 sets
 expectations
 too
 low,
 it
 won’t


attract
enough
buyers
(although
it
will
satisfy
those
who
do
buy).




Delivering
high
customer
value


The
key
to
generating
high
customer
loyalty
is
to
deliver
high
customer


value.
 According
 to
 Michael
 Lanning,
 in
 his
 delivering
 profitable
 value,
 a


company
must
design
a
competitively
superior
value
proposition
aimed
at
a


specific
market
segment
backed
by
a
superior
value
 ‐
delivery
system.
The


value
 proposition
 consists
 of
 the
 whole
 cluster
 of
 benefits
 the
 company


promises
to
deliver;
it
is
more
than
the
core
positioning
of
the
offering.





Measuring
satisfaction

Although
 the
 customer
 ‐
 centered
 firm
 seeks
 to
 create
 high
 customer


satisfaction
 that
 is
 not
 its
 main
 goal.
 If
 the
 company
 increases
 customer


satisfaction
by
lowering
its
price
or
increasing
its
services,
the
result
may
be


lower
 profits.
 The
 firm
 might
 be
 able
 to
 increase
 its
 profitability
 by
 means


other
 than
 increased
 satisfaction.
 Also,
 the
 firm
 has
 many
 stakeholders,


including
 employees,
 dealers,
 supplies
 and
 stockholders.
 Spending
 more
 to


increase
 customer
 satisfaction
 might
 divert
 funds
 from
 increasing
 the


satisfaction
 of
 other
 “partners”.
 Ultimately,
 the
 firm
 must
 operate
 on
 the


philosophy
 that
 it
 is
 trying
 to
 deliver
 a
 high
 level
 of
 customer
 satisfaction


subject
 to
 delivering
 acceptable
 levels
 of
 satisfaction
 to
 the
 other


stakeholders,
given
its
total
resources.



 49

APPROACHES
TO
THE
STUDY
OF
CONSUMER
SATISFACTION/


DISSATISFACTION




 A
 number
 of
 theoretical
 approaches
 have
 been
 utilized
 to
 explain
 the


relationship
 between
 disconfirmation
 and
 satisfaction
 (Oliver,
 1980b;


Anderson,
 1973).
 
 These
 approaches
 can
 be
 viewed
 as
 variations
 of


consistency
theories
and
focus
mainly
on
the
nature
of
the
consumer's
post‐

usage
comparison
process
(Oliver,
1980b).



Consistency
theories
suggest
that
when
expectations
and
the
actual
product


performance
do
not
match
the
consumer
will
feel
some
degree
of
tension.

In


order
to
relieve
this
tension
the
consumer
will
make
adjustments
either
in


expectations
or
in
the
perceptions
of
the
product's
actual
performance.

Four


theoretical
 approaches
 have
 been
 advanced
 under
 the
 umbrella
 of


consistency
theory:




1.

Assimilation
theory


2.

Contrast
theory


3.

Assimilation­contrast
theory


4.
Negativity
theory.



1.

Assimilation
theory.





 Festinger's
 (1957)
 dissonance
 theory
 forms
 the
 basis
 of
 assimilation


theory.
 
 Dissonance
 theory
 posits
 that
 consumers
 make
 some
 kind
 of


cognitive
 comparison
 between
 expectations
 about
 the
 product
 and
 the



 50

perceived
 product
 performance.
 
 If
 there
 is
 a
 discrepancy
 between


expectations
 and
 perceived
 product
 performance
 then
 dissonance
 arises.


This
 view
 of
 the
 consumer
 post‐usage
 evaluation
 was
 introduced
 into
 the


satisfaction
 literature
 in
 the
 form
 of
 assimilation
 theory
 (Anderson,
 1973).



According
 to
 Anderson
 (1973),
 consumers
 seek
 to
 avoid
 dissonance
 by


adjusting
 perceptions
 about
 a
 given
 product
 to
 bring
 it
 more
 in
 line
 with


expectations.




 Consumers
 can
 also
 reduce
 the
 tension
 resulting
 from
 a
 discrepancy


between
 expectations
 and
 product
 performance
 either
 by
 distorting


expectations
 so
 that
 they
 coincide
 with
 perceived
 product
 performance
 or


by
raising
the
level
of
satisfaction
by
minimizing
the
relative
importance
of


the
 disconfirmation
 experienced
 (Olson
 &
 Dover,
 1979).
 
 Assimilation


theory
 has
 a
 number
 of
 shortcomings.
 
 First,
 the
 approach
 assumes
 that


there
 is
 a
 relationship
 between
 expectation
 and
 satisfaction
 but
 does
 not


specify
how
disconfirmation
of
an
expectation
leads
to
either
satisfaction
or


dissatisfaction.
 
 Second,
 the
 theory
 also
 assumes
 thatconsumers
 are


motivated
 enough
 to
 adjust
 either
 their
 expectations
 or
 their
 perceptions


about
 the
 performance
 of
 the
 product
 (Forman,
 1986).
 
 If
 the
 consumer


adjusts
either
expectations
or
perceptions
about
product
performance
then


dissatisfaction
 would
 not
 be
 an
 outcome
 of
 the
 post‐usage
 evaluation


process.
 
 A
 number
 of
 researchers
 have
 found
 that
 controlling
 for
 actual


product
 performance
 can
 lead
 to
 a
 positive
 relationship
 between


expectation
 and
 satisfaction
 (Olson
 &
 Dover,
 1979;
 Anderson,
 1973).




 51

Therefore,
it
would
appear
that
dissatisfaction
could
never
occur
unless
the


evaluative
 processes
 were
 to
 begin
 with
 negative
 consumer
 expectations


(Bitner,
1987).



2.

Contrast
theory.





 Contrast
theory,
first
introduced
by
Hovland,
Harvey
and
Sherif
(1957),


presents
an
alternative
view
of
the
consumer
post‐usage
evaluation
process


than
 was
 presented
 in
 assimilation
 theory
 in
 that
 post‐usage
 evaluations


lead
 to
 results
 in
 opposite
 predictions
 for
 the
 effects
 of
 expectations
 on


satisfaction
 (Cardozo,
 1965).
 
 The
 approach
 holds
 that
 when
 consumers


experience
disconfirmation
they
seek
to
minimize
the
discrepancy
between


prior
 expectations
 and
 actual
 product
 performance
 by
 shifting
 their


evaluations
away
from
the
expectations.

Dawes,
Singer
and
Lemons
(1972)


define
contrast
theory
as
the
tendency
to
magnify
the
discrepancy
between


"one's
 own
 attitudes
 and
 the
 attitudes
 represented
 by
 opinion
 statements"


(p.
 281)
 endorsed
 by
 persons
 with
 opposing
 views.
 
 While
 assimilation


theory
posits
that
consumers
will
seek
to
minimize
the
discrepancy
between


expectation
 and
 performance,
 contrast
 theory
 holds
 that
 a
 surprise
 effect


occurs
leading
to
the
discrepancy
being
magnified
or
exaggerated.



3.

Assimilation­contrast
theory.





 The
assimilation‐contrast
theory
has
been
proposed
as
yet
another
way


to
 explain
 the
 relationships
 among
 the
 variables
 in
 the
 disconfirmation


model
 (Hovland,
 Harvey
 &
 Sherif,
 1957).
 
 A
 combination
 of
 both
 the



 52

assimilation
and
the
contrast
theories,
this
paradigm
posits
that
satisfaction


is
 a
 function
 of
 the
 magnitude
 of
 the
 discrepancy
 between
 expected
 and


perceived
 performance.
 
 Generally,
 consumers
 have
 zones
 or
 latitudes
 of


acceptance
 or
 rejection
 with
 respect
 to
 their
 perceptions.
 
 As
 with


assimilation
 theory,
 the
 consumers
 will
 tend
 to
 assimilate
 or
 adjust


differences
in
perceptions
about
product
performance
to
bring
it
in
line
with


prior
 expectations,
 but
 only
 if
 the
 discrepancy
 is
 relatively
 small.
 
 When


there
 is
 a
 large
 discrepancy
 between
 expectations
 and
 perceived


performance,
contrast
effects
occur
and
the
consumer
tends
to
magnify
the


perceived
 difference.
 
 Whether
 assimilation
 or
 contrast
 occurs
 depends


upon
 the
 perceived
 disparity
 between
 expectations
 and
 actual
 product


performance.




 Arguing
 that
 Cardozo's
 (1965)
 attempt
 at
 reconciling
 the
 two
 earlier


theories
 was
 methodologically
 flawed,
 Anderson
 (1973)
 presented
 his


adaptation
 of
 an
 earlier
 work.
 
 He
 asserted
 that
 consumers
 possess
 a


"noticeable
difference"
disconfirmation
threshold.





 Assimilation‐contrast
 theory
 attempts
 illustrate
 that
 both
 the


assimilation
 and
 the
 contrast
 theory
 paradigms
 have
 applicability
 in
 the


study
 of
 consumer
 satisfaction.
 
 The
 approach
 makes
 it
 possible
 to
 "…


hypothesize
 variables
 other
 than
 the
 magnitude
 of
 the
 discrepancy
 that


might
 also
 influence
 whether
 the
 assimilation
 effect
 or
 the
 contrast
 effect


would
 be
 observed…
 when
 product
 performance
 is
 difficult
 to
 judge,


expectations
 may
 dominate
 and
 assimilation
 effects
 will
 be
 observed…



 53

contrast
 effects
 would
 result
 in
 high
 involvement
 circumstances.
 
 The


strength
of
the
expectations
may
also
affect
whether
assimilation
or
contrast


effects
are
observed"
(Bitner,
1987,
p.
13).




 Researchers
 attempting
 to
 empirically
 test
 this
 theory
 have
 met
 with


mixed
results.

For
example,
Olson
and
Dover
(1979)
and
Anderson
(1973)


found
 some
 evidence
 to
 support
 the
 assimilation
 theory
 approach.
 
 In


discussing
 both
 of
 these
 studies,
 however,
 Oliver
 (1980a)
 arguesthat
 they


only
 measured
 expectations
 and
 assumed
 that
 there
 were
 perceptual


differences
 between
 disconfirmation
 or
 satisfaction.
 
 This
 criticism
 is
 of


some
significance
because
researchers
do
not
actually
measure
satisfaction


or
 dissatisfaction.
 
 Instead,
 researchers
 generally
 believed
 that
 it
 is
 the


perception
 of
 disconfirmation
 that
 leads
 to
 satisfaction
 or
 dissatisfaction


(Forman,
1986).




 In
 contradiction
 to
 the
 findings
 supporting
 the
 assimilation


perspective,
 Cadotte,
 Woodruff
 and
 Jenkins
 (1983)
 reported
 negative


correlation
 between
 expectation
 and
 disconfirmation.
 
 They
 therefore


concluded
that
satisfaction
is
really
an
additive
function
of
the
two
concepts.



Further
 ambiguity
 is
 created
 by
 results
 of
 studies,
 which
 found
 no


relationship
 between
 expectation
 and
 disconfirmation
 (Oliver,
 1977a,


1977b,
1979).



4.

Negativity
theory.





 Like
the
three
previous
theories,
negativity
theory
has
its
foundations


in
 the
 disconfirmation
 process.
 
 Introduced
 into
 the
 consumer
 satisfaction



 54

literature
 by
 Anderson
 (1973),
 negativity
 theory
 posits
 that
 when


expectations
 are
 strongly
 held,
 consumers
 will
 respond
 negatively
 to
 any


disconfirmation.
 Accordingly,
 dissatisfaction
 will
 occur
 if
 perceived


performance
is
less
 than
expectations
or
if
perceived
performance
exceeds


expectations
(Carlsmith
&
Aronson,
1963;
Anderson,
1973).





Customer
satisfaction
process




 The
paramount
goal
of
marketing
is
to
understand
the
consumer
and
to


influence
 buying
 behavior.
 One
 of
 the
 main
 perspectives
 of
 the
 consumer


behavior
research,
analyses
buying
behavior
from
the
so‐called
“information


processing
 perspective"
 (Holbrook
 and
 Hirschman
 1982).
 According
 to
 the


model,
 customer
 decision‐making
 process
 comprises
 a
 need‐satisfying


behavior
 and
 a
 wide
 range
 of
 motivating
 and
 influencing
 factors.
 The


process
can
be
depicted
in
the
following
steps
(Engel,
Blackwell
et
al.
1995):



1.
 Need
 recognition
 –
 realization
 of
 the
 difference
 between
 desired


situation
 and
 the
 current
 situation
 that
 serves
 as
 a
 trigger
 for
 the
 entire


consumption
process.



2.
 Search
 for
 information
 ‐
 search
 for
 data
 relevant
 for
 the
 purchasing


decision,
 both
 from
 internal
 sources
 (one's
 memory)
 and/or
 external


sources.




 55




3.
 Pre­purchase
 alternative
 evaluation
 ‐
 assessment
 of
 available
 choices


that
can
fulfill
the
realized
need
by
evaluating
benefits
they
may
deliver
and


reduction
of
the
number
of
options
to
the
one
(or
several)
preferred.




4.
Purchase
‐
acquiring
of
the
chosen
product
or
service.



5.
Consumption
‐
utilizing
of
the
procured
product
or
service.



6.
 Post­purchase
 alternative
 re­evaluation
 ‐
 assessment
 of
 whether
 or


not
 and
 to
 what
 degree
 the
 consumption
 of
 the
 alternative
 produced


satisfaction.



7.
Divestment
‐
disposing
of
the
unconsumed
product.




 Besides
 the
 information
 processing
 perspective,
 marketing
 analyses


consumer
 behavior
 by
 employing
 a
 psychologically
 grounded
 concept
 of


attitudes
(Balderjahn
1988;
Ronis,
Yates
et
al.
1989;
Luzar
and
Cosse
1998).


It
 is
 consumer
 attitudes
 that
 are
 usually
 named
 as
 the
 major
 factor
 in


shaping
consumer
behavior
and
a
wealth
of
studies
is
available
on
the
topic


of
how
attitudes
can
predict
behavior.




 56

 DATA
ANALYSIS
AND
INTERPRETATION


This
chapter
deals
with
the
analysis
and
interpretation
of
collected
data.


Collected
data
are
analyzed
and
interpreted
by
using
tables
and
diagrams
in


order
to
get
a
clear
picture
about
the
study.


The
word
“analysis”
literally
means,
“to
break
into
parts”.
Analysis
is
the


process
of
breaking
down
a
complex
set
of
figurer
into
simple
statements
in


order
to
have
a
better
understanding.


The
 term
 “interpretation”
 literally
 means
 to
 explain
 the
 meaning
 of


interpretations
and
significance
of
data.


Analysis
and
Interpretation
are
two
different
process
of
breaking
down


a
 complex
 set
 of
 figurer
 into
 simple
 statements.
 But
 interpretation
 means


explaining
 the
 meaning
 and
 significance
 of
 this
 simplified
 statement.


Analysis
and
Interpretation
are
inter‐related.



 57

1.
State
the
category
of
outlet?



Outlet
format
 No.
of
respondents
 Percentage


Retail
shop
 15
 30


Wholesaler
 25
 50


Modern
format
 5
 10


Others
 5
 10






Graph:
Type
of
outlet








 58

Interpretation

It
 is
 clear
 from
 the
 graph
 that
 the
 firm’s
 main
 channel
 of
 distribution
 is


wholesaler
 customers
 as
 well
 as
 the
 retail
 shops.
 And
 the
 modern
 formats


and
 other
 players
 dominate
 the
 rest.
 As
 this
 is
 the
 period
 of
 booming
 of


modern
formats,
the
firm
should
also
concentrate
in
that
field
also.




2.
Why
do
you
prefer
Redstar
poly
products?



Reasons
 No.
of
respondents
 Percentage


Quality
 30
 60


Brand
image
 10
 20


Price
 5
 10


Others
 5
 10





Interpretation

Most
 of
 the
 customers
 select
 the
 firm’s
 products
 because
 of
 their
 quality


products
 and
 the
 other
 reason
 is
 brand
 image
 of
 the
 firm.
 Regarding
 the


price,
it
is
not
very
economical
but
reasonable
because
we
have
to
pay
little


high
price
for
quality
products.
10%
of
people
prefer
because
of
some
other


reasons.











 59

 











Graph:
Reasons
for
preferring
Redstar



















 60



3.
Which
all
Redstar
products
are
you
dealing
presently?



Product
 No.
Respondents
 Percentage


Buckets
 50
 100


Containers
 50
 100


Drums
 40
 80


Trays
 45
 90


Baskets
 50
 100


Water
jugs
 50
 100


Tubs
 45
 90


Basins
 50
 100


Utility
boxes
 50
 100


Dustbins
 50
 100


Pedal
bins
 40
 80


Mugs
 100
 100




Interpretation

From
 the
 results,
 we
 can
 understand
 all
 the
 customers
 under
 study
 are


dealing
in
8
out
of
12
products
and
the
rest
of
products
namely
pedal
bins


(80%),
 tubs
 (90%),
 trays
 (90%)
 and
 drums
 (80%)
 And
 it
 is
 only
 a
 few


customers
are
not
dealing
in
these
products.
The
firm
has
a
good
customer


value
as
well
as
product
value.



 61

 


Graph:
Selection
of
products
dealt
by
Redstar
customers














 62

4.
How
you
came
to
know
about
Redstar
products?



Reasons
 No.
of
respondents
 Percentage


Advertisement
 15
 30


Publicity
 10
 20


Company
staff
 20
 40


Others
 5
 10





Graph:
Knowledge
about
the
firm




















 63

Interpretation

From
the
results,
most
of
the
customers
are
aware
of
the
firm
because
of
the


company
staff
and
their
direct
contacts.
30%
of
the
customers
are
aware
of


the
firm
because
of
their
advertising
and
other
promotional
activities.
So
the


firm
 has
 to
 improve
 their
 marketing
 and
 advertising
 programs.
 Publicity


gives
20%
and
others
modes
make
it
10%.


5.
Comment
upon
the
defects
of
the
products?





Reasons
 No.
of
respondents
 Percentage


No
defects
 45
 90


Less
strong
 _
 _


Lack
of
finishing
 2
 4


Others
 3
 6



Graph:
Defects
about
the
product





 64

Interpretation

The
 very
 major
 portion
 of
 the
 customers
 can’t
 find
 any
 defects
 in
 the


products.
 That
 means
 the
 firm
 is
 producing
 in
 high
 quality
 and
 thus
 the


customers
 are
 satisfied.
 4%
 find
 some
 lack
 of
 finishing
 in
 the
 products,
 so


the
firm
should
shed
light
upon
this.
6%
is
some
other
defects.
So
an
overall


quality
checking
and
maintenance
should
be
established.




6.
How
you
comment
upon
the
product
quality
of
Redstar?





Reasons
 No.
of
respondents
 Percentage


Excellent
 15
 30


Good
 27
 54


Average
 8
 16


Below
average
 _
 _



Graph:
Product
quality
of
the
firm





 65

Interpretation

From
 the
 above
 we
 can
 understand
 the
 customers
 are
 satisfied
 with
 the


product
 quality
 of
 the
 firm
 and
 30%
 of
 them
 see
 the
 products
 as
 excellent


quality
and
54%
feel
it
is
good
there
is
no
one,
which
feel
that
the
product
is


below
average
quality.
So
the
firm
is
good
in
quality
and
of
course
it
is
the


success
of
the
firm.




7.
How
you
compare
the
price
of
Redstar
with
other
brands?



Reasons
 No.
of
respondents
 Percentage


High
 5
 10


Reasonable
 40
 80


Low
 5
 10





Graph:
Comparison
of
the
price
with
other
brands







 66

Interpretation

Majority
of
the
customers
are
satisfied
with
the
price
of
the
products
when


comparing
with
other
brands.
Only
10%
of
the
customers
feel
that
the
price


is
 high.
 As
 there
 are
 opinions
 as
 both
 high
 and
 low
 prices,
 the
 firm
 should


take
 a
 look
 at
 their
 pricing
 decisions,
 and
 make
 the
 price
 as
 a
 competitive


weapon.






8.
How
frequently
you
order
the
Redstar
products?





Reasons
 No.
of
respondents
 Percentage


1‐2
weeks
 15
 30


2‐4
weeks
 22
 44


1‐2
months
 10
 20


Above
2
months
 3
 6





Interpretation

From
the
above,
we
can
understand
that
the
firm
is
getting
orders
from
the


customers
frequently
as
74%
of
the
customers
are
ordering
the
products
in


a
 short
 span
 of
 one
 month
 and
 only
 26%
 takes
 it
 more
 than
 one
 month
 to


replenish
the
stock.
That
means
there
is
a
good
turnover
of
the
products
or


there
is
a
good
demand
for
the
products
among
the
customers.







 67

 

Graph:
Frequency
of
order












9.
In
your
opinion
how
long
the
users
can
use
Redstar
products?





Reasons
 No.
of
respondents
 Percentage


Below
1
year
 4
 8


1‐2
years
 15
 30


2‐3
years
 23
 46


Above
3
years
 8
 16











 68

 



Graph:
Durability
of
the
products










Interpretation

From
 the
 above,
 we
 can
 understand
 that
 the
 firm’s
 products
 are
 good
 in


durability
as
most
of
the
customers
feel
that
the
product
can
be
used
more


than
 one
 year
 and
 62%
 can
 use
 it
 more
 than
 2
 years.
 So
 with
 regard
 to


durability,
we
can
say
that
customers
are
satisfied
and
also
the
firm
should


find
reasons
why
this
8%
couldn’t
use
it
at
least
one
year
or
more.















 69



10.
How
satisfied
are
you
with
the
relevant
knowledge
of
the
staff
you

dealt
directly
with?






Reasons
 No.
of
respondents
 Percentage


Excellent
 4
 8


Good
 35
 70


Average
 9
 18


Poor
 2
 4







Graph:
Knowledge
of
the
staffs














 70

Interpretation

From
 the
 above,
 we
 can
 understand
 that
 the
 staffs
 that
 are
 in
 direct
 touch


with
the
customers
have
a
good
knowledge
in
their
relevant
fields.
Only
4%


of
the
customers
feel
that
the
knowledge
of
the
staffs
is
poor
and
of
course


this
should
be
improved
to
make
the
customers
more
satisfied.




11.
Comment
upon
the
courtesy
of
the
company
staffs?





Reasons
 No.
of
respondents
 Percentage


Excellent
 9
 18


Good
 30
 60


Average
 11
 22


Poor
 _
 _







Interpretation

From
 the
 results,
 we
 know
 that
 78%
 of
 the
 customers
 feel
 the
 courtesy
 of


the
company
staffs
is
good
or
more
than
good.
22%
feel
that
the
courtesy
of


the
 staffs
 is
 average
 and
 this
 should
 be
 improved.
 For
 this
 the
 firm
 should


pay
attention
to
their
psychological
aspects
and
all.












 71

 Graph:
Courtesy
of
the
company
staffs








12.
How
satisfied
are
you
with
the
speed
in
which
the
service/product

was
delivered?




Reasons
 No.
of
respondents
 Percentage


Highly
satisfied
 8
 16


Satisfied
 30
 60


Average
feeling
 12
 24


Poor
 _
 _





Interpretation

Most
 of
 the
 customers
 are
 satisfied
 with
 the
 delivery
 of
 the
 services
 or


products
of
the
firm.
24%
of
the
customers
have
an
average
feeling.
Even
if


most
of
the
customers
have
good
feeling,
this
24%
average
feeling
should
be


improved.



 72



Graph:
Delivery
of
the
service/product












13.
Comment
upon
availability
of
product
information?







Reasons
 No.
of
respondents
 Percentage


Very
good
 9
 18


Good
 28
 56


Average
 13
 26


Below
average
 _
 _











 73

 

Graph:
Availability
of
product
information










Interpretation

From
 the
 above,
 most
 of
 the
 customers
 are
 satisfied
 in
 the
 availability
 of


product
information.
Only
26%
is
having
an
average
feeling.
That
mean
even


if
a
good
response
regarding
the
availability
of
product
information,
the
firm


should
 make
 all
 the
 arrangements
 for
 100%
 availability
 of
 product


information.













 74







14.
Comment
upon
the
value
of
the
product?





Reasons
 No.
of
respondents
 Percentage


Very
high
 7
 14


High
 28
 56


Average
 15
 30


Below
average
 _
 _





Graph:
Value
of
the
product
















 75

Interpretation

From
 the
 above,
 we
 can
 understand
 that
 the
 products
 are
 having
 a
 good


value
perception
among
the
customers.
Majority
of
the
customers
perceive


that
the
products
are
having
a
high
value.
Only
30%
are
feeling
that
they
are


getting
an
average
feeling
and
hence
the
firm
should
check
whether
they
are


giving
reasonable
value
to
the
returns
made
by
the
customers.




15a.
Would
you
like
to
consider
ordering
Redstar
products
again?





Reasons
 No.
of
respondents
 Percentage


Yes
 49
 98


No
 1
 2





Pie
diagram:
Opinion
regarding
ordering
the
products
again







 76

Interpretation

98%
 of
 the
 customers
 are
 ready
 to
 reorder
 the
 products.
 This
 it
 self


implicates
that
the
firm
achieved
a
good
level
of
satisfaction.
Although
it
is


like
that,
the
firm
should
find
the
reason
why
that
2%
came.






15b.
 If
 yes,
 how
 likely
 would
 you
 be
 to
 consider
 ordering
 Redstar

products
again?





Reasons
 No.
of
respondents
 Percentage


Very
likely
 32
 64


Somewhat
likely
 13
 26


Somewhat
unlikely
 5
 10


Very
unlikely
 _
 _





Interpretation

Most
of
the
customers
are
likely
to
reorder
the
products
again
and
only
10%


are
 unlikely
 to
 order
 again.
 Any
 way
 the
 results
 show
 that
 there
 is
 a
 good


acceptance
 rate
 among
 the
 customers
 for
 the
 company’s
 products.
 Firm


should
also
look
on
to
the
matters
such
as
delivery
time,
design
etc.













 77

 



Graph:
Likelihood
of
reordering
of
products












16.
For
how
long,
have
you
been
dealing
with
Redstar
products?



Reasons
 No.
of
respondents
 Percentage


Below
1
year
 _
 _


1‐2
years
 3
 6


2‐3
years
 6
 12


Above
3
years
 41
 82











 78

 

Graph:
Period
of
contact
with
the
firm












Interpretation

A
very
good
majority
of
customers
are
dealing
with
the
firm
from
more
than


2
 years.
 This
 means
 that
 firm
 is
 having
 a
 good
 reputation
 and
 customer


satisfaction
level
among
the
customers.




















 79





17.
How
you
rate
the
services
provided
by
the
company?





Reasons
 No.
of
respondents
 Percentage


Excellent
 15
 30


Good
 30
 60


Satisfactory
 5
 10


Poor
 _
 _







Graph:
Rating
of
services
provided
by
the
firm
















 80

Interpretation

The
 firm
 is
 providing
 satisfying
 services
 to
 their
 customers
 and
 they
 have


good
satisfaction
level.
Despite
10%
(satisfactory),
the
rest
of
the
customers


are
 feeling
 the
 services
 are
 good
 or
 more
 than
 good.
 Any
 way
 the
 firm


should
make
improvements
wherever
necessary.


18.
How
do
you
rate
the
responsiveness
of
the
company
in
dealing
with

you?





Reasons
 No.
of
respondents
 Percentage


Very
good
 15
 30


Good
 27
 54


Average
 8
 16


Below
average
 _
 _







Interpretation

From
the
above,
it
is
clear
that
the
responsiveness
of
the
firm
in
dealing
with


the
customers
is
good
and
they
are
satisfying
the
customers.
Only
16%
feels


it
is
an
average
responsiveness
from
the
firm.
So
it
should
be
improved.










 81

 

Graph:
Responsiveness
of
the
firm
in
dealing
with
the
customers












19.
How
do
you
rate
the
company’s
approach
to
quality
management
to

ensure
complete
customer
satisfaction?



Reasons
 No.
of
respondents
 Percentage


Excellent
 4
 8


Good
 31
 62


Average
 15
 30


Below
average
 _
 _











 82

 

Graph:
Rating
for
company’s
approach
to
total
quality
management










Interpretation

Most
 of
 the
 customers
 are
 satisfied
 with
 the
 company’s
 approach
 to
 total


quality
management.
30%
of
the
customers
are
feeling
that
the
company
is


doing
 average
 efforts
 regarding
 this.
 As
 30%
 is
 not
 a
 silly
 matter,
 the
 firm


should
 seriously
 approach
 the
 total
 quality
 management
 concerns
 for


complete
customer
satisfaction.













 83





20.
 How
 satisfied
 are
 you
 that
 the
 staff
 showed
 interest
 in
 you
 as
 an

individual
/
treated
you
as
a
valued
customer?





Reasons
 No.
of
respondents
 Percentage


Highly
satisfied
 17
 34


Satisfied
 26
 52


Average
feeling
 7
 14


Below
average
 _
 _







Graph:
Interest
of
the
staffs














 84

Interpretation

From
 the
 above,
 most
 of
 the
 customers
 are
 satisfied
 in
 the
 behavior
 of
 the


staffs
 regarding
 their
 interest
 in
 dealing
 with
 them.
 Most
 of
 them
 feel
 that


they
 got
 individual
 care
 or
 attention
 from
 the
 staffs.
 Only
 14%
 have
 an


average
feeling.
Overall
they
are
satisfied.








21.
How
satisfied
are
you
with
the
helpfulness
of
the
company
staff?





Reasons
 No.
of
respondents
 Percentage


Highly
satisfied
 10
 20


Satisfied
 36
 72


Average
feeling
 4
 8


Below
average
 _
 _





Interpretation

Most
 of
 the
 customers
 are
 satisfied
 with
 the
 helpfulness
 of
 the
 company


staffs
that
means
they
are
good
in
dealing
with
the
customers.
Only
8%
feels


it
is
an
average
effort
from
the
part
of
the
staffs
in
helping
the
customers.














 85

 

Graph:
Helpfulness
of
the
company
staff











22.
Comment
upon
the
way
problems
were
resolved?







Reasons
 No.
of
respondents
 Percentage


Excellent
 6
 12


Good
 36
 72


Average
 8
 16


Below
average
 _
 _











 86

 

Graph:
Rating
for
problem
resolving












Interpretation

Most
of
the
people
are
satisfied
with
the
way
problems
were
resolved.
So
the


firm
 is
 good
 in
 settling
 all
 issues
 diligently.
 Only
 16%
 feels
 that
 the
 firm
 is


having
 an
 average
 quality
 to
 resolve
 the
 problems.
 So
 the
 management


quality
should
be
improved
especially
with
regard
to
settling
problems
and


issues.










 87







23.
Comment
upon
the
reputation
of
the
company?





Reasons
 No.
of
respondents
 Percentage


Excellent
 6
 12


Good
 44
 88


Average
 _
 _


Below
average
 _
 _







Graph:
Reputation
of
the
firm














 88

Interpretation

Every
customer
is
satisfied
or
feels
that
the
firm
is
having
a
good
reputation


among
the
industry.
So
the
firm
is
doing
the
business
very
smartly.


24.
How
did
you
find
your
overall
dealings
with
Redstar?







Reasons
 No.
of
respondents
 Percentage


Very
good
 3
 6


Good
 41
 82


Average
 6
 12


Poor
 _
 _



Graph:
Rating
of
overall
dealings
with
the
firm










 89

Interpretation

From
 the
 results,
 majority
 of
 the
 customers
 are
 satisfied
 with
 the
 overall


dealings
with
the
firm.
12%
of
the
customers
are
having
an
average
feeing.


So
firm
should
make
improvements
to
achieve
total
customer
satisfaction.



 90

 FINDINGS,
SUGGESTIONS
AND
CONCLUSION



Findings




 From
 the
 above
 studies,
 I
 found
 that
 the
 level
 of
 satisfaction
 of

customers
is
high
with
regard
to
firm’s
products
and
services.




 Most
of
the
customers
feel
that
the
products
and
services
are
of
good

quality.




 The
firm
is
good
in
the
delivery
of
products
and
services.




 Customers
are
satisfied
with
the
overall
services
provided
by
the
firm.




 Customers
are
very
satisfied
with
the
courtesy
and
helpfulness
of
the

company
staffs.




 Although
the
customers
are
satisfied
in
the
firms
overall
performance,

I
think
that
firm
has
to
take
at
most
care
to
improve
all
the
service
and

products.




 The
price
policy
of
the
firm
is
good
and
customers
are
happy
with
the

price
of
the
products,
a
very
small
thinks
that
the
price
is
high.





 91

  Most
 of
 the
 customers
 are
 dealing
 in
 almost
 all
 products
 of
 the
 firm

and
all
the
customers
cater
at
least
8
products
out
of
12
products
of

the
firm.




 Firm’s
advertising
campaigns
and
efforts
should
be
improved.




 The
durability
of
the
products
is
good
and
very
much
satisfying.




 The
firm
is
having
a
good
reputation
among
the
customers
and
in
the

industry
 and
 most
 of
 the
 customers
 are
 dealing
 with
 the
 firm
 long

back.





 92

Suggestions




 It
is
better
that
increasing
outdoor
advertising
which
includes
boards

and
 attractive
 illuminated
 logos
 with
 the
 brand
 name
 may
 be

exhibited
in
place
attention.




 Customers
seek
more
information
about
the
product
before
ordering,

so
 considerable
 amount
 of
 information
 should
 be
 communicated

through
advertisement.




 Any
 developments
 in
 the
 products
 and
 services
 should
 be


communicated
to
customers
on
a
regular
basis.




 Most
of
the
customers
are
price
conscious,
so
firm
should
try
hard
to

offer
 the
 products
 at
 competitive
 rate
 and
 make
 the
 price
 as
 a

competitive
weapon.




 Conduct
proper
incentive
programs
for
the
customers
e.g.
Best
Dealer

of
the
year
Awards,
all
these
will
help
the
firm
to
get
more
orders.




 Overall
quality
measures
should
be
improved.




 It
would
be
better
that,
improving
the
advertisements
in
medias
will

bring
more
turnover
and
profit

 As
 the
 firm’s
 marketing
 lineup
 is
 strong,
 firm
 can
 go
 for
 mass

production
and
marketing.







 93




Conclusion



 The
project
titled
“Customer
Satisfaction
of
Redstar
Poly
Products”
was


carried
out
with
the
core
objective
to
analyze
the
customer
satisfaction
level


of
 the
 company.
 As
 all
 know,
 customer
 is
 the
 king
 of
 business;


understanding
 of
 their
 responses
 regarding
 the
 products
 and
 services
 will


help
 the
 firm
 to
 improve
 their
 contact
 with
 them.
 So
 a
 proper
 Customer


Relationship
Management
should
be
implemented.
From
strong
and
detailed


observations,
 I
 can
 understand
 that
 the
 firm
 changed
 the
 Polymer


manufacturing
 industry
 and
 most
 of
 their
 customers
 are
 satisfied
 in


products
as
well
as
the
services
of
the
firm.
The
company
is
functioning
with


more
efficient
than
any
other
company
in
the
same
industry.
The
company
is


utilizing
their
resources
at
a
maximum
for
their
success.



 


I
wish
the
company
every
success
and
a
bright
future.



 94

 EXECUTIVE
SUMMARY


The
project
entitled
“CUSTOMER
SATISFACTION
OF
REDSTAR
POLY
PRODUCTS
“

has
 been
 undertaken
 in
 REDSTAR
 POLY
 PRODUCTS,
 Poravoor,
 Karikkad
 PO,

Thrissur.
The
company
was
established
in
1997.
The
company
is
producing
variety

of
 plastic
 household
 articles.
 The
 study
 has
 been
 conducted
 in
 order
 to
 relate

theoretical
 concept
 that
 has
 been
 taught
 in
 the
 classroom
 about
 the
 customer

satisfaction,
 surveys,
 research
 and
 marketing.
 It
 was
 a
 great
 experience
 to
 know

the
 practical
 works
 inside
 and
 outside
 an
 organization.
 The
 period
 of
 study
 was

from
12th
January
2010
to
06th
February
2010.


The
 main
 objectives
 of
 study
 are
 to
 find
 out
 the
 level
 of
 customer
 satisfaction

towards
the
firm.
It
also
helps
to
study
the
customer
attitude
towards
the
Plastic

products.
 Research
 methodology
 is
 based
 on
 survey
 method
 and
 descriptive

research.
 Both
 primary
 and
 secondary
 data
 are
 used
 for
 the
 study.
 The
 primary

data
was
collected
through
questionnaire
and
secondary
data
was
collected
from

company
report,
record,
magazines
and


websites.


From
the
analysis
of
the
results,
I
found
that
the
level
of
satisfaction
of
customers

is
high
with
regard
to
firm’s
products
and
services.
Only
few
customers
have
low

level
of
satisfaction.
But
the
overall
opinion
of
customers
is
good
about
the
firm.





Customer
satisfaction
is
an
integral
part
of
a
successive
firm
or
management.
The

studies
reveal
that
the
majority
of
the
respondents
are
satisfied
with
regard
to
the

products
 and
 services
 of
 the
 firm.
 But,
 still
 there
 is
 a
 need
 for
 improvements
 in

advertisements
 through
 medias.
 In
 a
 nutshell,
 the
 customers
 are
 very
 satisfied

with
the
firm.
And
of
course,
they
are
the
real
assets
of
this
esteemed
organization.



 95

 BIBLIOGRAPHY

STATUES:

Indian Partnership Act, 1932

PERIODICALS:

The Week
Business India

BOOKS:

Marketing Management - Philip Kotler

Service Marketing - S.M. Jha

WEBSITES:

google.co.in
altavista.com


 96

 QUESTIONNAIRE



Dear
Sir/Madam,


I
 am
 Vibin
 P
 Cheriyan
 from
 Pondicherry
 University,
 doing
 M.B.A
 in


Marketing
 (Reg.
 No.
 1308360001)
 As
 a
 part
 of
 my
 curriculum,
 I
 am


conducting
a
survey
for
REDSTAR
POLY
PRODUCTS,
Poravoor,
Karikkad


PO,
Thrissur
District,
among
the
customers
of
their
products.
I
request
you


to
fill
up
this
questionnaire
by
putting
a
tick
mark
against
your
appropriate


choice
 for
 each
 statement.
 The
 data
 collected
 will
 solely
 be
 used
 for
 my


study
purposes
only
and
will
be
kept
confidential.




Store
Name:
 ……………………………………………………………………………………..


Position:
 
 ……………………………………………………………………………………..


City/District:
 ……………………………………………………………………………………..


Phone:
 
 
 ……………………………………………………………………………………..


E‐mail:
 
 
 ……………………………………………………………………………………..


Postal
Code:
 ……………………………………………………………………………………..

























 97

  Please
put
a
tick
mark
for
your
appropriate
choice
of
statement.







1.
State
the
category
or
type
of
outlet?



Retail
shop


Wholesaler



Modern
format

Others…………………………



2.
Why
do
you
prefer
Redstar
products?



Quality

Brand
image

Price

Others………………………………..



3.
Which
all
Redstar
products
are
you
dealing
presently?



Buckets

Containers

Drums

Trays

Baskets

Water
jugs

Tubs

Basins

Utility
boxes

Dustbins

Pedal
bins

Mugs



4.
How
you
came
to
know
about
Redstar
products?



Advertisement

Publicity

Company
staff

Other……………………………..



5.
Comment
upon
the
defects
of
the
products?



No
defects

Less
strong

Lack
of
finishing

Others………………………..



 98

6.
How
you
comment
upon
the
product
quality
of
Redstar?



Excellent

Good


Average


Below
average





7.
How
you
compare
the
price
of
Redstar
with
other
brands?



High


Reasonable

Low






8.
How
frequently
you
order
the
Redstar
products?



1‐2
weeks


2‐4
weeks

1‐2
months


Above
2
months





9.
In
your
opinion
how
long
the
users
can
use
Redstar
products?



Below
1
year

1‐2
years

2‐3
years


Above
3
years





10.
How
satisfied
are
you
with
the
relevant
knowledge
of
the
staff
you
dealt
directly

with?




Excellent

Good


Average


Poor



11.
Comment
upon
the
courtesy
of
the
company
staff?



Excellent

Good

 

Average


Poor







 99



12.
 How
 satisfied
 are
 you
 with
 the
 speed
 in
 which
 the
 service/product
 was

delivered?




Highly
satisfied

Satisfied

Average

Poor





13.
Comment
upon
availability
of
product
information?



Very
good

Good


Average

Below
average





14.
Comment
upon
the
value
of
the
product?



Very
high

High

Average

Below
average





15a.
Would
you
like
to
consider
ordering
Redstar
products
again?



Yes

No





15b.
If
yes,
how
likely
would
you
be
to
consider
ordering
Redstar
products
again?



Very
likely

Somewhat
likely

Somewhat
unlikely

Very
unlikely



16.
For
how
long,
have
you
been
dealing
with
Redstar
products?



Below
one
year

1‐2
years

2‐3
years

Above
3
years







 100

17.
How
you
rate
the
services
provided
by
the
company?



Excellent

Good

Satisfactory

Poor





18.
How
do
you
rate
the
responsiveness
of
the
company
in
dealing
with
you?



Very
good

Good

Average

Below
average





19.
 How
 do
 you
 rate
 the
 company’s
 approach
 to
 quality
 management
 to
 ensure

complete
customer
satisfaction?



Excellent

Good

Average

Below
average





20.
 How
 satisfied
 are
 you
 that
 the
 staff
 showed
 interest
 in
 you
 as
 an
 individual
 /

treated
you
as
a
valued
customer?



Highly
satisfied

Satisfied

Average
feeling

Below
average




21.
How
satisfied
are
you
with
the
helpfulness
of
the
company
staff?



Highly
satisfied

Satisfied

Average
feeling

Below
average



22.
Comment
upon
the
way
problems
were
resolved?



Excellent

Good

Average

Below
average





 101

23.
Comment
upon
the
reputation
of
the
company?



Excellent

Good

Average

Below
average



24.
How
did
you
find
your
overall
dealings
with
Redstar?



Very
Good

Good

Average

Poor



25.
Any
more
responses,
or
any
suggestions
to
improve
our
products
and
services?

…………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………
…………………………………………………….……………………………………………………………………………
…………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………












 102