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A PROJECT REPORT ON

CUSTOMER SATISFACTION AT EVM HONDA


Dissertation Submitted To MAHATMA GANDHI UNIVERSITY In partial fulfillment of requirement for

Bachelor of Business Management


2006-2009 By

ROSHAN SORLY
Reg. No.4086 Under the guidance of Vilasini Sethumadhavan Faculty Guide Chinmaya Vidyapeet Affiliated to

Mahatma Gandhi University Kottayam, Kerala

CHINMAYA VIDYAPEET
( Affiliated to MAHATMA GANDHI UNIVERSITY:KOTTAYAM )

Warriam Road : COCHIN-682 016.


Phone No.0484-2351866 : E-Mail.chinmayavidyapeet@vsnl.net.

CERTIFICATE

The project titled a study on Customer Satisfaction at EVM Honda is a bonafide work done by Mr. Roshan Sorly in partial fulfillment for the award of the degree of Bachelor of Business Management offered by Mahatma Gandhi University.

Prof: B C Menon Principal

Mrs. Vilasini Sethumadhavan Faculty Guide

Kochi 30-03-2009

DECLARATION I hereby declare that this project titled Customer Satisfaction at EVM Honda, Vytilla is an organization work done by me towards partial fulfillment for the degree of Bachelor of Business Management under Mahatma Gandhi University, Kottayam. I further declare that this work is not partly or wholly submitted for any other purpose and that the data included in the project collected from various sources, are true to the best of my knowledge.

PLACE: ERNAKULAM DATE: 23-03-09

ROSHAN SORLY

ACKNOWLEDGEMENT First of all let me express my sincere thanks to Mrs. Kamakshi Balakrishna, our Directress, Chinmaya Vidyapeet, for her support and providing me the facilities without which I would not have been able to complete the project. I express my sincere thanks to our Principal Mr.BC Menon for his support and guidance for the completion of this work. I express my sincere thanks to my guide Mrs.Vilasini Sethumadhavan for her kind and valuable encouragement for the completion of this work. I wish to record my profound gratitude to the management of EVM Honda, Vytilla for providing me an opportunity to carryout my project. I owe my gratitude to Mr. Sutheesh Mohan Service Developments Manager of EVM Honda, Vytilla and all the staffs who took all the pain and risk in providing the relevant information. My heartfelt thanks to all my friends and well wishers for their valuable suggestions and help rendered. Last but not the least, I would like to express my whole hearted thanks to the invisible, the indomitable God for His blessings to complete the project on time. Roshan

CONTENTS
CHAPTER 1 2 3 4 5 Introduction Theoretical Framework Industrial and Company profile Analysis and Interpretation Findings, suggestions and conclusion Bibliography Annexure TITLE PAGE NO. 1 6 13 31 50

LIST OF TABLES
SL NO. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 TITLE OF THE TABLE No of problems experienced in your vehicle No of times you have returned for the same problem Ease of obtaining appointment for service Promptness of front man in opening of job card Helpfulness in listening servicing needs Undertaking of specific problems of your vehicle Courtesy in servicing you Prior explanation of job to be carried out and cost estimate Availability of parts to serve your vehicle Appearance of service area Appearance of customer lounge Reasonable time taken for service Quality of repairs carried out Job satisfactorily completed at first time Timely delivery of vehicle PAGE NO. 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

4.16 4.17 4.18 4.19

Appearance of vehicle at the time of delivery Explanation of work done and charges at the time of delivery Explanation of maintenance tips at the time of delivery Based on your overall experience would you recommend EVM Honda workshop to friend or relative

46 47 48 49

LIST OF DIAGRAMS
DIAGRAM NO. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 DIAGRAM No of problems experienced in your vehicle No of times you have returned for the same problem Ease of obtaining appointment for service Promptness of front man in opening of job card Helpfulness in listening servicing needs Undertaking of specific problems of your vehicle Courtesy in servicing you Prior explanation of job to be carried out and cost estimate Availability of parts to serve your vehicle Appearance of service area Appearance of customer lounge Reasonable time taken for service Quality of repairs carried out Job satisfactorily completed at first time Timely delivery of vehicle PAGE NO. 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

4.16 4.17 4.18 4.19

Appearance of vehicle at the time of delivery Explanation of work done and charges at the time of delivery Explanation of maintenance tips at the time of delivery Based on your overall experience would you recommend EVM Honda workshop to friend or relative

46 47 48 49

CHAPTER ONE INTRODUCTION

INTRODUCTION Marketing research has more significance in the present scenario. Marketing research interrelated research and management. Marketing research is the function which links the consumer, customer and public to the marketer through information. Information used to identify and define marketing opportunities and problems. Generate, refine and evaluate marketing action, monitor marketing performance and improve understanding marketing as a process. Concept of Service Marketing Service is defined as an action of organizations that maintains and improves the well being and functions of people. Features of Marketing Services

Intangibility: Services are intangible in nature and as such

complicate the decision makers while performing and displaying. While selling or promoting services we need to concentrate on benefits and satisfaction which a buyer can derive after buying.

Perish Ability: The services cant be stored or ownership is not

affected in the process of selling the services.

Simultaneity: Services cant be delivered to customers or users.

It doesnt move through channels of distribution. For availing services it is essential that the users are brought to providers or the providers go to the users.

In this globalized world, service plays a major role to attract customers. The above features shows that it is quite difficult to measure the satisfaction derived from the services provided. But it is very important to measure these satisfaction levels. Statement of the problem Nowadays focus is on customers. Objectives like revenue, profit and market shares are important but they will follow only by acquiring customer competence. In India even as late as in 1980, the customers were benefit with alternatives; he would uncomplainingly buy whatever was dished out by the seller. Not any more. Todays choice empowered customer, supported by competitive environment, global quality and new economic realities, decides the fate of the marketer. Producers have become price takers rather than price setters. It is worthwhile to asses what these changes have brought and the customers attitude and satisfaction towards the automobile industry. Customer satisfaction is a business term which is used to capture the idea of measuring how satisfied an enterprises customers are with the organizations efforts in the market place. It is seen as a key business performance indicator and is part of the four perspectives of the balanced scorecard. It is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical

variables which correlate with satisfaction behaviors such as return and recommended rate. The ten domains of satisfaction are:

Quality, Value, Efficiency, Timeliness, Ease of access, Environment, Interdepartmental team work, Frontline service behaviors, Commitment to the customer and Innovation. Objectives of the Study

To know the level of overall customer satisfaction at EVM

Honda, Vytilla To analyze the major factors influencing customer

satisfaction To identify and define the problems faced by the

customers To know the importance of service in the present scenario

with refers to the customers at EVM Honda To suggest measure for improvement

Scope of the Study

In this project work an attempt is made to study the level of customer satisfaction at EVM Honda. The study aims at finding the

satisfaction experienced by the customers and suggest steps for improving the loyalty of customers towards the EVM Honda.

Research Methodology Method of data collection The data collected constitutes both primary and secondary. Primary Data Primary data are collected by making direct interview with the authorities, officials & observation and also by distributing questionnaires to the population.

Secondary Data Secondary data are collected from various records kept in departments, company manuals, magazines & websites. Survey method was adopted to get the primary data and the questionnaire was designed as an instrument of survey method. The total sample size is 60 which were collected from the EVM Honda workshop in vytilla. SOURCES OF SECONDARY DATA Websites of company and other search engines. Various books on research, marketing and retail management. Various magazines, articles and reports on automobile industry.

SAMPLE DESIGN The total sample size is 60 customers, which was collected from EVM Honda workshop at Vytilla.

TOOLS AND TECHNIQUES OF DATA COLLECTION Questionnaire was designed as a main instrument to conduct survey. A questionnaire consists of a set of questions presented to respondents for their answers. The questions in this survey questionnaire involve the both open end and close ended questions, which are sufficient enough to analyze the customer satisfaction level.

Limitations

The findings and observations are based on the answers

given by the respondents and thus it is subject to personal bias The company details are collected from the manuals and

broachers provided. Thus there were many hindrances in the availability of data. Change in trends and attitudes can influence customers

preferences.

Due to time and money constraints the study was limited

to small sample size.

CHAPTER TWO THEORETICAL FRAMEWORK

THEORITICAL FRAMEWORK ON CUSTOMER SATISFACTION

Marketing is a societal process by which individual and groups obtain what they need and want through creating, offering and freely exchanging products services of value with others. Needs describe basic human requirements. These needs become wants when they are directed to specific objectives that might satisfy the needs. Understanding customer needs and wants is not always simple. Some customers have needs of which they are not fully conscious or they cannot articulate these needs. Thus these needs can be classified as Needs

Stated needs

Real needs

Unsatisfied needs

Delight needs

Secret needs

People satisfy their needs and wants with products. The product or offering will be successful if it delivers value and satisfaction to the target buyer and the buyer chooses between different offerings on the basis on which is perceived to deliver the most value. Value can be defined as the ratio between what the customer gets and what he gives. The customer gets benefits and assumes costs. The benefits include functional benefits and emotional benefits the costs include monitory costs, time costs, energy costs and psychic costs.

Thus todays customers face a vast array of product and brand choices, prices and suppliers. They are value-maxi misers, within the bounds of search cost and limited knowledge, mobility and act on it. Whether or not the offer lines up to the value expectation affects both satisfaction and repurchase profitability. Satisfaction is a function of perceived performance and expectations. It is a persons feelings of pleasure and disappointment resulting from comparing a products perceived performance in relation to his/her expectations. Thus three basic levels of satisfaction and categories of customers are: Delighted Customers

Satisfied Customers

Dissatisfied Customers Satisfied customers occur when you provide them with what you promised or they expected. That is if the performance matches the expectations, the customer is satisfied. What you promised or what they expected

What you provide

Is equal to

Satisfied customers:

Stays loyal longer

Buys more as the company introduces new products and

upgrade existing products. Talks favorably about the company and its products and

advertising and is less sensitive to price. Cost less to serve than new customers because transactions

are routinised.

Dissatisfied customers occurs when What you provide What you promised or what they expected

Is less than

If performance falls short of expectations the customer is dissatisfied. Dissatisfied customers: Stop purchasing or start looking for an alternative supplier. Talks unfavorably about the company. Pays more attention or go in search of competing brands. Generally dont come back.

Delighted customers occur when what is provided is more than what is promised or expected

What you provide

Is more than

What you promised or what they expected

Delighted customers: Stay loyal to business for life. Talks more favorably about their delightful experience. Doesnt go in search for new alternatives. Their transactions are more routinized and always upgrade

the knowledge about the company and its products. Improving Customer Satisfaction Once a Customer

Satisfaction Measurement Program is in Place Customer satisfaction research is not an end unto itself. The purpose, of course, in measuring customer satisfaction is to see where a company stands in this regard in the eyes of its customers, thereby enabling service and product improvements which will lead to higher satisfaction levels. The research is just one component in the quest to improve customer satisfaction. There are many others including: Top management commitment, Linking of customer satisfaction scores with employee and

management monetary incentives,

Recognition of employees who contribute to customers

satisfaction, Identification, measurement and tracking of operational

variables which drive satisfaction scores, Customer-based improvement goals, Plans for improving operational variables, Incorporation of customer satisfaction skills into employee

training programs , Measurement of and plans for improvement of employee

satisfaction, Changes in corporate hiring practices

Top Management Commitments Top management through its actions, must show that customer satisfaction is important to it. This can be done in several ways. Front-line employees and suppliers. Incentive programs can be structured so that all employees in an organizational unit receive compensation if the units customer satisfaction goals are met. Additionally, exemplary service on the part of individual employees can be rewarded on an ad hoc basis. Management incentives do not have to result in incremental expenditures; a relocation of current incentives will suffice. For example, if 100% of a managers bonus is dependent upon meeting operational and sales goals, the mix could be changed to include customer satisfaction goals. Recognition of Employees who contribute to Customers Satisfaction

This is an inexpensive way to foster customer satisfaction. The key to success are: Making sure that all employees are aware of why a particular employee is being recognized Making sure that each employee being recognized is

worthy of recognition Identification, Measurement and Tracking of Operational Variables when Drive Satisfaction Scores The results of a customer satisfaction survey need to be evaluated to determine what needs to be improved. For example, a survey may find that customer waiting times need to be reduced. The next step should be to quantify actual customer waiting times, and to set goals and strategies for reducing them. Goals should be as specific as possible. It is better to say we want to reduce wait times during peak periods from an average of twenty minutes to fifteen minutes by the end of June, than to say we need to reduce customer waiting times. Customer-Based Improvement Goals This ties directly to the previous point. Once you have identified what needs to be improved, you need to develop a plan for improving each identified area. Such plans need to be based on what customers really need, rather than what management believes to be a good goal. Using the previous example, if customers really desire wait times of ten minutes or less, having management dictate that wait times must be reduced to fifteen minutes will have limited appeal with customers. You may need to do a separate survey with customers to actually set appropriate goals. If this is not

economically feasible, atleast talk to a number of customers and gain their input before setting a goal. Plans for Improving Operational Variables Once you have established what needs to be improved, and how much it needs to be improved, plans need to be developed to make improvement happen. The keys to successful planning are to: Involve front-line employees and management in the

planning process, Evaluate the success of plans once they have been put into

place. This is done by measuring actual improvement in operations and customer satisfaction.

Incorporation of Customer Satisfaction Skills into Employee Training Programs Employee training programs should be modified to include: A description of the importance of customer satisfaction to the company, Descriptions of what keeps customers satisfied, A description of customer satisfaction measurement

programs, description programs, and incentive programs, Specific employee programs expectations with regard to

keeping customers satisfied.

Measurement of and Plans for Improvement of Employee Satisfaction Unhappy employees will have difficulty in keeping customers happy. You should consider measuring the satisfaction levels of employees, and then developing action plans to improve employee satisfaction. Changes in Corporate Hiring Practices Certain type of people will do a better job of satisfying customers than will other types of people, regardless of the quality of training, reward and recognition programs. Once you have determined the types of employee behaviors are important to customers, you should incorporate this knowledge into your hiring practices.

CHAPTER THREE INDUSTRIAL AND COMPANY PROFILE

INDUSTRY PROFILE TWO-WHEELER INDUSTRY The two-wheeler industry in India has grown rapidly in the country since the announcement of the process of liberalization in 1991 by the then finance minister Dr. Manmohan Singh, now Prime Minister of India. In the period 2006 - 07 the total number of the two wheelers and three wheelers produced in India, were around 9 million. The sales pertaining to two wheelers in the period 2006 - 07 was 7,857,548, which was a growth of 11.41 %. In the same period the motorcycle exports from India was 321,321 units. Previously, there were only a handful of two-wheeler models available in the country. Currently, India is the second largest producer of two-wheelers in the world. It stands next only to China and Japan in terms of the number of two-wheelers produced and the sales of two-wheelers respectively. In the year 2005-2006, the annual production of two-wheelers in India stood at around 7600801 units. The trend of owning two-wheelers is due to a variety of facts peculiar to India. One of the chief factors is poor public transport in many parts of India. Additionally, two-wheelers offer a great deal of convenience and mobility for the Indian family. Bajaj auto began trading in imported Vespa Scooters in 1948. Meanwhile Automobile Products of India (API) commenced production of scooters in the country in the early 50's. Until 1958, API and Enfield were the only producers of two-wheelers in India.

However, Bajaj signed a technical collaboration in 1960 with Piaggio of Italy to produce Bajaj Scooters. This deal expired in 1971. The condition of motorcycle manufacturers was no different. Until the mid 80's, there were only three major motorcycle manufacturers in India namely Rajdoot, Escorts, and Enfield. The two-wheeler market was opened to foreign manufacturers in the mid 80's. The industry, which had seen a smooth ride before, faced fierce foreign competition. Motorcycle companies like the Yamaha, Honda, and Kawasaki, set up shop in India in collaboration with various Indian two-wheeler companies. Companies like Escorts, Rajdoot and faced immense competition from smaller 100 cc Japanese technology motorbikes. Bikes manufactured by Hero Honda, the only company manufacturing four-stroke bikes at that time, gained massive popularity. In the mid 80's, Kinetic introduced a variomatic gearless scooter in collaboration with Honda. This scooter became instantly popular with the younger generation, especially people who found it difficult to use geared scooters. The introduction of scooterettes created another segment for people such as women and teenagers who could not get used to driving either motorcycles or gearless scooters. Many companies such as Kinetc, TVS, and Hero also started manufacturing mopeds that proved immensely popular with people who wanted a simple riding machine.

The change in the government's policy owning to pollution control norms and the Kyoto agreement saw the phasing out of two stroke two-wheelers from production. Currently there are around 10 twowheeler manufacturers in the country, they being Bajaj, Hero, Hero Honda, Honda, Indus, Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha. The latest trend in the two-wheeler market is the introduction of electrically operated vehicles from a range of manufacturers such as Indus and Hero. These can be recharged from convenient household electrical points. The only disadvantage is speed, which is restricted to around 25 miles per hour. Currently, the motorcycle market is witnessing a demand for higher volume engines. Previously, the 100 c bikes were very popular owning to the high fuel efficiency offered. However, the market is maturing fast. Sensing this movement, Bajaj has introduced the Bajaj Pulsar, with 150, 180 and 200cc engines with Dual Twin Spark Ignition (DTSi) technology. Demand Drivers The demand for two-wheelers has been influenced by a number of factors over the past five years. The key demand drivers for the growth of the two-wheeler industry are as follows: Inadequate public transportation system, especially in the

semi-urban and rural areas Increased availability of cheap consumer financing in the

past 3-4 years

Increasing availability of fuel-efficient and lowIncreasing urbanization, which creates a need for personal Changes in the demographic profile Difference between two-wheeler and passenger car prices,

maintenance models transportation

which makes two-wheelers the entry level vehicle years years The present generation is using more two wheelers Steady increase in per capita income over the past five Steady increase in per capita income over the past five

MAJOR PLAYERS IN THE TWO WHEELER SECTOR


Honda Hero Honda Bajaj Auto TVS Motors Yamaha Suzuki Kinetic Royal Enfield

Honda set to zoom past industry in two-wheelers

Despite a slowdown in the two-wheeler industry, which registered a mere 1.27% growth between April-December at 61,52,804 units, Honda Motorcycle and Scooter India (HMSI) is targeting around 15% growth in 2009-2010 at 12 lakh units as compared to 10.5 lakh units that it expects to sell by the end of the current financial year. At a time when retail finance is taking its toll on the overall demand, the company is betting big on the Indian market and has outlined an investment of Rs 300 crore in the country. Though retail financing continues to be a problem but the fundamental demand for two-wheelers is still very high and we expect to sell over 12 lakh units in the coming financial year with new models and few variants lined up during this period, says Shinji Aoyama, president and CEO, HMSI. According to Aoyama, the company will invest Rs 300 crore in the Indian market over the next three years to increase capacity and enhance its product portfolio. This will include the introduction of a 100cc bike from HMSI in 2010. "We will certainly come up with an entry-level 100cc bike in India next year and the company plans to sell around 2,00,000 bikes in the first year of launch," he says, adding that though its 100cc bike will be sporty but there could be some cannibalisation of the 100cc bikes currently being produced by Hero Honda Motor India, a joint venture partner of Honda Motor Company of Japan. The company, on Friday, launched two super bikes that will compete with the high-end bikes from the stable of Yamaha, Ducati and Suzuki Motorcycle. The CBR 1000RR Fireblade and the CB1000R

are priced at Rs 12.5 lakh and Rs 9.5 lakh respectively and will be sold in the country as completely build units, imported from Japan and Europe. Honda Motorcycle and Scooter India have set up two company owned showrooms, the Honda Wing World, in Delhi and Mumbai to retail these bikes in the domestic market. "There is an estimated demand of 400 units of high-end bikes in the country and we expect to sell less than 100 units of these in a year," says NK Rattan, vice president (sales and marketing), HMSI. HMSI registered a growth of 21.94% in January at 90,796 units as against a dip of 3.95% in the two-wheeler industry at 5, 81,742 units.

COMPANY PROFILE Honda Motor Co., Ltd. operates under the basic principles of "Respect for the Individual" and "The Three Joys" commonly expressed as The Joy of Buying, The Joy of Selling and The Joy of Creating. "Respect for the Individual" reflects their desire to respect the unique character and ability of each individual person, trusting each other as equal partners in order to do our best in every situation. Based on this, "The Three Joys" expresses their belief and desire that each person working in, or coming into contact with their company, directly or through or products, should share a sense of joy through that experience. In line with these basic principles, since its establishment in 1948, Honda has remained on the leading edge by creating new value and providing products of the highest quality at a reasonable price, for worldwide customer satisfaction. In addition, the Company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society. The Company has grown to become the world's largest motorcycle manufacturer and one of the leading automakers. With a global network of 501* subsidiaries and affiliates accounted for under the equity method, Honda develops, manufactures and markets a wide

variety of products, ranging from small general-purpose engines and scooters to specialty sports cars, to earn the Company an outstanding reputation from customers worldwide.

Honda Philosophy Basic Principles: Respect for the individual. The Three Joys (buying, selling and creating) Company Principle: Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction. Management Policies: Proceed always with ambition and youthfulness. Respect sound theory, develop fresh ideas, and make the most Enjoy work and encourage open communication. Strive constantly for a harmonious flow of work. Be ever mindful of the value of research and endeavor. Dreams inspire them to create innovative products that enhance mobility and benefit society. To meet the particular needs of customers in different regions around the world, they base their sales networks, research and development centers and manufacturing facilities in each region. Furthermore, as a socially responsible

effective use of time.

corporate citizen, they strive to address important environmental and safety issues.

Research and Development Each and every Honda associate takes the customers point of view as they strive to help everyone everywhere share the joy of mobility. Thats why Honda always welcomes new challenges as they work to benefit society and the environment, today and tomorrow. New challenges for the future. Honda is constantly involved in technological research and development to help people now and in the future. These technologies range from new materials and new sources of energy, to new power trains for maximum performance and minimum ecoimpact, to new work in decoding the rice genome for various applications. Currently, Honda is engaged in a project to develop a next-generation clean diesel engine. Another project, in cooperation with the Research Institute for Innovative Technology for the Earth (RITE), aims to produce ethanol from cellulosic biomass, a promising, secure supply of environmentally responsible alternative fuel. Honda also studies human anatomy and physiology so that they can make innovative products that enhance safety. The company

conducts original research into new forms of mobility that coexist in harmony with people and serve society. The latest, most advanced version of ASIMO, Hondas bipedal humanoid robot, now moves freely, shares tasks with humans, and even recharges itself -- a significant achievement in independent action.

Since its establishment, Honda has always dreamed skyward. This perspective recently led to development of the advanced light jet HondaJet. With delivery scheduled to start in 2010, Honda has begun construction of its production facility in the U.S. Thus, Honda always aims higher -- creating value that meets each countrys needs, bringing products speedily to market, and constantly enhancing their safety and environmental performance. Manufacturing and Distribution Quality, and nothing but quality, is essential to winning and enhancing customer trust. What supports Honda quality? They depend on the passionate dedication of Honda associates to serve customers with Honda quality. They speak the universal language of quality to earn the trust of customers in every country, and challenge themselves to always make products that surpass their great expectations. Strengthening craftsmanship globally Honda began manufacturing motorcycles in Belgium in 1963. In 1982, Honda became the first Japanese automaker to produce passenger cars (the Accord) in the U.S. Since then, Honda has established independent local operations around the world for research, development, marketing, and production.

Through the introduction of Hondas flexible manufacturing system, Honda continues reducing the time and resources necessary to launch new models into production and improving the efficiency of manufacturing operations that meet regional needs. Moreover, the grouping of production processes into cohesive units has improved the working environment, raised product quality, and further accelerated production. By 2010, new Japanese and international auto production facilities will begin operation, and they will concentrate motorcycle production in Japan as a worldwide source of innovation. Construction of a new engine factory and automobile plant in Japan is progressing steadily, together with improved production capability for building automatic trans-missions (AT). These developments reflect the strength of far-reaching production advancements. Sales and Service By creating products and services that highlight the core values that make Honda unique, they would like to provide their customers with joy and excitement beyond their expectations. Accordingly, the Honda brand stays a step ahead of the diverse needs of their customers, always offering new possibilities for richer, more rewarding lifestyles. In this way, Honda products enhance customers' enjoyment of life. Expanding customer satisfaction activities Next time, too a Honda. The ultimate goal of their sales activities worldwide is to satisfy our customers so that they will continue to come back for more Honda quality products. To ensure this, they have implemented a vigorous Customer Satisfaction (CS) program covering all of their sales companies. This program aims to

enhance customer satisfaction by strengthening their attention to detail in product and service activities through all stages of sales, delivery, and after-sales service. In March 2006, all sales channels in Japan were merged under the name of Honda Cars, providing all Honda automotive brands through a single sales network that is easier for customers to understand. They will continue to strengthen sales and services targeted to regional needs and tailored to customers in each region, with an extensive product lineup backed by IT support. Thus, they can continue to enrich their customers lifestyles as only Honda can.

DEALER PROFILE EVM Group of Companies entered in the Business of Automobile Sector in June 2001 by opening the exclusive dealership of Honda Motor Cycle and Scooter India Pvt Ltd. (HMSI) for the District of Cochin and at present for Trivandrum also. They could gather about 11000 happy customers during the last 3 years in Cochin alone and more than 4500 in Trivandrum, where Sales, Spares and Service work is carried out under the same roof. Both the Honda Dealerships are functioning in their own land and buildings. In Cochin they have at present two authorized service centers and one is shortly to be open in the hill areas of this district. EVM Honda is the first Dealer to roll out a Mobile Service Van with the motto Reach Customer. They stood first in India to get ISO Certification among all Honda Dealers. In Cochin adjacent to the main dealership, work of a Hi-Tech Service Center with all amenities is in progress and is expected to open very shortly. Adding to their achievement they got another Dealership of Honda Two Wheelers in the Capital town of Kerala-Trivandrum in 2003. This Dealership captured good market share. They are closely associated with M/s Deedi

Automobiles Trivandrum, Exclusive Dealers for Bajaj Two Wheelers & Three Wheelers of this District. Started in 1935 as a small entrepreneur EVM Group could spread the wings in many business sectors:1) Cultivation and Selling of Hill produce like Cardamom, Cashew and Lemon grass oil including its exports. 2) Supply of Natural Rubber and Rubber products to popular tyre

manufacturing Companies of India including Rubber crumbing factories. 3) Entertainment Industry - More than 20 Movie houses spared in

Kerala among which Kavitha at M.G. Road Ernakulam is undoubtly best in Kerala. 4) C&F Agent for TATA Tea & Coffee and Distribution of

Reliance Petro Chemicals etc and Fleet owners of Trucks in the State. 5) Tourism Development through Three Star Hotels and Resorts

like Hill view in Munnar, Mountain Club Resorts at Chinnakanal, Isola-Di-Cocco Beach resort at Puvar (TVM), which is tourists favourites, and Hotels at Adimali and Kothamangalam. The founder of our Group Mr. EV Mathai passed away on October 1999 but his dreams are now carried on by his six sons who are united to conquer anything that come their way FACILITIES OFFERED BY EVM HONDA 1. All service facilities of a dealer workshop such as: a) Free service and warranty jobs even for vehicles sold by

other dealers and other states. b) Periodic service and running repairs for any nature of jobs.

c) d) e)

Quick services waits and take for minor repairs. Water service Body polishing.

2. Body repair and full painting with dust free paint booth. In case of accident, just inform them and they will undertake the whole repair process including Insurance and Police formalities without any additional financial burden to customers. If needed they will arrange on spot survey. 3. 24 hours break down attending. 4. Renewal of insurance. 5. Genuine Honda spare parts. 6. Exchange of your vehicle. 7. Provision for special EVM Annual Maintenance Contract package.

Workshops Kothamangalam, Muvattupuzha, Piravom, Koothattukulam,

Mulanthuruthy, Vytilla

Topics handled at EVM Honda 1. 2. Vehicle delivery at promised delivery time. Reasonable time for servicing.

3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Washing quality of vehicles. Dealer workshop vales business with customers. Reasonable charges for servicing. Quality of repairs carried out. Courtesy in serving the customers Job satisfactorily completed the first time. Final inspection Road test Dealing with customer satisfaction index cards. Dealing with initial quality study and owners manual

feedback cards. 13. Repeat job handling

Customer Satisfaction at EVM Honda 1. Special customer vehicles to be assigned to be assigned to

a separate group in the workshop. This will enhance customer relationship building. 2. Service advisors, supervisors and technical advisors

mapping and training. 3. Linkage of service advisor with the customers each

customer shall have specific advisor for better understanding of customer needs.

4.

Retention of quality manpower through motivation,

adequate salary package and good working conditions. 5. 6. 7. Service advisor meet once in a month, in each city. Formation of quality circle. Repeat job in an area of concern. Computer software for

capturing repeat job based on demanded repairs by the customers implemented at dealer workshop. 8. Fairness of fees in an area of concern. Service advisors

shall explain to the customers the charges for the job. 9. Follow up to be done by workshop staff with special

customers. 10. During post service follow up customer shall be asked to

rate over all satisfaction with the workshop on Excellent, Very good, Good, Fair, Poor scale. 11. Based on customer feedback cards, parameter wise

analysis to be done at workshop counter measures. 12. 13. Closure of all negative feedback cards within 48 hours. Free check up camps for customer vehicles to be

organized on monthly basis by dealer workshops.

Survey covers performance of the workshop on following factors:

1. 2. 3. 4. 5. 6.

Service Initiation Service advisor In Service Experience Service delivery Service quality Vehicle Performance

The six factors along with the attributes is under

Service Initiation Ease of obtaining appointment for service Promptness of front man in opening of job card

Service Advisor Explanation of service to be performed Treated with courtesy & respect Honesty Knowledge / expertise Fulfillment of commitments Listening to request Asking questions to clarify needs

Understanding the problem with vehicle Prior explanation of job to be carried out and cost estimate

Vehicle Performance No of problems experienced in your vehicle No of times the customer have returned for the same problem In service experience Customer lounge cleanliness Customer lounge comfort

Service delivery Explanation of work performed Explanation of charges Cleanliness & appearance of vehicle Reasonable time taken for service Explanation of maintenance tips at the time of delivery

Service Quality Ability to fix problem right first time

Ability to diagnose problems Quality of work performed Thoroughness in fulfilling requests Availability of parts for service The satisfaction is also measured in terms of the following statement of the customers Likelihood of recommending EVM Honda workshop to friends or relatives

CHAPTER FOUR

ANALYSIS AND INTERPRETATION

ANALYSIS AND INTERPRETATION Table 4.1: No of problems experienced in vehicle Attributes None One Two Three Four Total Diagram 4.1: No: of respondents 8 22 12 11 7 60 Percentage 13 37 20 18 12 100

The above diagram shows the no of problems experienced in vehicle by the customer once was rated 37%, twice by 20%, thrice by 18%, four by 12% and none by 13%.

Table 4.2: No of times customer has returned for the same problem Attributes None One Two Three Four Total Diagram 4.2: No: of respondents 17 20 18 2 3 60 Percentage 28 33 30 3 5 100

The above diagram shows that the no of times customer has returned for the same problem to the workshop once was rated 33%, twice by 30% and 28% are completely satisfied with the service and they had not returned to the workshop with the same problem.

Table 4.3: Ease of obtaining appointment for service Attributes Excellent Very Good Good Fair Poor Total No: of respondents 5 10 29 14 2 60 Percentage 8 17 48 23 3 100

Diagram 4.3:

48% of respondents feel that ease of obtaining appointment for service at the workshop was good, fair by 23%, very good by 17%, excellent by 8% and 3% rated poor.

Table 4.4: Promptness of front man in opening of job card Attributes Excellent Very Good Good Fair Poor Total Diagram 4.4: No: of respondents 3 13 27 15 2 60 Percentage 5 22 45 25 3 100

Promptness of front man in opening of job card is good in view of 45% of respondents, fair by 25%, very good by 22%, excellent by 5% and poor by 3%.

Table 4.5: Helpfulness in listening to servicing needs Attributes Excellent Very Good Good Fair Poor Total Diagram 4.5: No: of respondents 1 17 30 9 3 60 Percentage 2 28 50 15 5 100

Out of 60 respondents 50% feel that helpfulness in listening to servicing needs by the employees are good, 28% rated very good, 5% poor, 15% fair and 2% excellent.

Table 4.6: Undertaking of specific problems of your vehicle Attributes Excellent Very Good Good Fair Poor Total Diagram 4.6: No: of respondents 1 12 23 21 3 60 Percentage 2 20 38 35 5 100

38% of the respondents feel that the service advisor was able to detect the problem with the vehicle and rated good, 35% fair, 20% very good, 2% excellent and 5% poor.

Table 4.7:

Courtesy in servicing you Attributes Excellent Very Good Good Fair Poor Total Diagram 4.7: No: of respondents 3 7 35 11 4 60 Percentage 5 12 58 18 7 100

Courtesy in servicing is good in view of 58% of respondents, fair by 18%, very good by 12%, excellent by 5% and 7% rated poor.

Table 4.8:

Prior explanation of job to be carried out and cost estimate Attributes Excellent Very Good Good Fair Poor Total Diagram 4.8: No: of respondents 1 13 27 17 2 60 Percentage 2 22 45 28 3 100

45% of the respondents rated well for the prior explanation given by the service advisor at the time of receipt of vehicle were good, fair by 28% and very good by 22% while 3% rated poor.

Table 4.9: Availability of parts to serve your vehicle Attributes Excellent Very Good Good Fair Poor Total No: of respondents 5 26 19 6 4 60 Percentage 8 43 32 10 7 100

Diagram 4.9:

Out of 60 respondents 43% of them rated very good at the availabity of parts, 32% good, 8% excellent and 10% fair while 7% rated poor.

Table 4.10: Appearance of service area Attributes Excellent Very Good Good Fair Poor Total Diagram 4.10: No: of respondents 10 15 28 7 0 60 Percentage 17 25 47 12 0 100

Appearance of the service area was rated well by 47% of the respondents, 25% very good, 17% excellent and 12% fair and none of them rated poor.

Table 4.11: Appearance of customer lounge Attributes Excellent Very Good Good Fair Poor Total No: of respondents 9 15 25 11 0 60 Percentage 15 25 42 18 0 100

Diagram 4.11:

Appearance of the customer lounge was rated good by 42% of the respondents, 25% very good, 15% excellent and 18% fair.

Table 4.12: Reasonable time taken for service Attributes Excellent Very Good Good Fair Poor Total Diagram 4.12: No: of respondents 5 11 32 9 3 60 Percentage 8 18 53 15 5 100

Out of 60 respondents 53% rated good for reasonable time taken for service, 18% very good, 8% excellent, 15% fair and 5% rated poor.

Table 4.13: Quality of repairs carried out Attributes Excellent Very Good Good Fair Poor Total Diagram 4.13: No: of respondents 4 9 27 15 5 60 Percentage 7 15 45 25 8 100

Out of the 60 respondents 45% feel that the quality of the repairs carried at the workshop is good, 15% rated very good, 25% fair, 7% excellent and 8% rated poor.

Table 4.14: Job satisfactorily completed at first time Attributes Excellent Very Good Good Fair Poor Total Diagram 4.14: No: of respondents 4 10 23 19 4 60 Percentage 7 17 38 32 7 100

From above it can be intercepted that on the first visit 38% respondents feel that the workshop was able to fix the problem. Out of 60 respondents overall rating is 17% very good, 7% excellent, 32% fair and 7% rated poor.

Table 4.15: Timely delivery of vehicle Attributes Excellent Very Good Good Fair Poor Total Diagram 4.15: No: of respondents 4 13 28 14 1 60 Percentage 7 22 47 23 2 100

Out of 60 respondents 47% rated that they received the vehicle on time, 22% very good, 7% excellent, 23% fair and 2% rated poor.

Table 4.16: Appearance of vehicle at the time of delivery Attributes Excellent Very Good Good Fair Poor Total No: of respondents 8 19 21 10 2 60 Percentage 13 32 35 17 3 100

Diagram 4.16:

For overall rating for the appearance of vehicle at the time of delivery 35 % respondents rated good, 32% very good, 13% excellent, 17% fair and 3% rated poor.

Table 4.17: Explanation of work done and charges at the time of delivery Attributes Excellent Very Good Good Fair Poor Total Diagram 4.17: No: of respondents 1 12 27 17 3 60 Percentage 2 20 45 28 5 100

45% rated well for the explanation given by the service advisor at the time of receipt of the vehicle and for the attributes very good 20%, fair 28%, excellent 2% and for poor 5%.

Table 4.18: Explanation of maintenance tips at the time of delivery Attributes Excellent Very Good Good Fair Poor Total Diagram 4.18: No: of respondents 5 4 16 25 10 60 Percentage 8 7 27 42 17 100

Out of 60 respondents 42% rated fair for the explanation of maintenance tips given by the service advisor at the time of delivery, 8% excellent, 7% very good, 27% good and 17% rated poor.

Table 4.19: Based on your overall experience would you recommend EVM Honda workshop to friend or relative? Attributes Definitely Yes Probably Yes Definitely No Probably No Total Diagram 4.19: No: of respondents 19 36 2 3 60 Percentage 32 60 3 5 100

Based on overall experience 60% of the respondents will probably recommend the workshop to friends or relatives, 32 % definitely yes while 5% marked probably no and 3% definitely no.

CHAPTER FIVE FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS The study made on EVM Honda proved that the workshop does have a very efficient and effective management system for customer relationship building. The study was done on 1. Service Initiation 48% of the respondents feel that it was easy in obtaining appointment for service and rated good. This shows that the company pays a great attention for their servicing sector. 45% of the respondents feel that the promptness of frontman in opening of jobcard was good. This shows that the servicing sector gives importance to the customers complaints about the vehicle and pays a great attention to customer satisfaction. 2. Service Advisor Courtesy in servicing is good in view of 58% of respondents. This shows that the employees treat the customers with care. 50% of the respondents feel that the helpfulness in listening to service needs by the service advisor was good and 35 % rated fair. This shows that the service advisor pays more attention to customer satisfaction. 38% of the respondents feel that the service advisor was able to detect the problem with the vehicle and rated good, 35% fair, 20% rated very good. This shows that the service advisor has work knowledge. 45% of the respondents rated well for the prior explanation given by the service advisor at the time of receipt of vehicle were good. This shows that the service advisor takes great care in letting the customers know the troubles in their vehicle.

3. Service Quality Out of 60 respondents 43% of them rated very well at the availability of parts and 32% good. This shows that the workshop is fully flourished with the vehicle accessories. Out of the 60 respondents, 45% feel that the quality of the repairs carried at the workshop is good and 15% rated very good. This shows that the repairs carried out by the workshop is satisfactory. 38% respondents feel that the workshop was able to fix the problem on their first visit itself and gave good, 32% rated fair. This shows that workers have knowledge on almost alls sorts of troubles that can occur to the vehicle and therefore, they are able to fix the problem in the first visit itself. 4. Service Delivery 53% of the respondents feel that the work was completed in a reasonable period of time and rated good. This shows that the employees pay more attention in their efficiency and fixes the problem in the first visit itself. 47% of the respondents said that they received the vehicle on time and rated good. This shows that the workshop is able to deliver the vehicle on time to customers. 35 % respondents rated good for appearance of vehicle at the time of delivery, 32% very good and 13% excellent. This shows that the vehicle is properly washed and cleaned by the workshop before delivery. 45% rated well for the explanation given by the service advisor at the time of receipt of the vehicle and for the attributes. This shows that service advisor gives customer satisfaction as his first priority.

Based on overall experience 60% of the respondents will probably recommend the workshop to friends or relatives, 32 % definitely yes while 5% marked probable no and 3% definitely no. Thus it can be intercepted from the above findings that customers at EVM Honda are satisfied with the services provided although some areas need improvement.

SUGGESTIONS

When viewed in totality, the customers are overall satisfied with the services provided at EVM Honda. But to make it more effective and attractive, the following recommendations are to be made:

Service Initiation: The process of interaction of workshop staff with the customers needs to be improved. The customer should be attended to within the least possible time.

Service Advisor: Service advisor plays a very important role in customer satisfaction. The process of direct interaction with the customers ensures that any dissatisfaction that the customer has can be immediately resolved. Also each customer should be linked to a service advisor to improve long term relationship with the customers.

Delayed Deliveries: This is the single largest parameter influencing customer satisfaction & they must ensure that vehicle is delivered at the promised time.

Problem Experienced: This relates to trouble free operation of the vehicle by customer. To ensure this a Road test by Technical advisor must be done for proper diagnosis of the problems reported by the customer while opening job card and also fix the problems right in first time. Also Technical advisor must road test all the customer vehicles to ensure that the vehicle is free from squeaks & rattles.

Service Quality: This relates to quality of work performed. To ensure these vehicles should be checked by final inspector during final inspection for thoroughness for in fulfilling all the demanded repairs by the customer. Proper explanation of the jobs done and charges shall be done for all the customers. One Master Mechanic should be available in each group.

User friendly Service: This includes the parameters of fairness of fees convenience of days of operation, location timings etc. Fairness of fees is a major area of concern across the service network & we must ensure that the charges for service are kept at with the competition. It is imperative that focus upon the following key areas of workshop performance on a daily monitoring basis.
1. 2.

Timely delivery of vehicle Washing quality

3. Explanation of jobs done and charges while delivering the

vehicle
4. No repeat jobs

5.

Revisits and repeat job trends to be analyzed and effective

counter measures to be taken. 6. Recognition \ application for best mechanic of the month,

based on Zero repeat job. 7. basis. 8. Case history of all repeat jobs analysis to be complied and Top 3 reasons for Revisits to be monitored on monthly

communicated to all. 9. All demanded repairs must be completed.

CONCLUSION In this globalised world, service plays a major role to attract customers. But it is quite difficult to measure the satisfaction derived from the services provided and very important to measure these satisfaction levels. EVM Hondas overall strength lies in building an organization that is sharply focused on the voice of the customer. EVM Hondas consistent performance in the study over the past several years has resulted in a steady increase in the percentage of its customers who say they intend to remain loyal to the brand.

Annexure

Questionnaire Name: Model: Phone No: Please rate Honda Dealer Workshop based on the following Vehicle Performance 1. No of problems experienced in your vehicle None One Two Three Four 2. No of times you have returned for the same problem None One Two Three Four

Service Initiation 3. Ease of obtaining appointment for service Excellent Very Good Good Fair Poor

4. Promptness of front man in opening of job card Excellent Very Good Good Fair Poor Service Advisor 5. Helpfulness in listening servicing needs Excellent Very Good Good Fair Poor

6. Undertaking of specific problems of your vehicle Excellent Very Good Good Fair Poor 7. Courtesy in servicing you Excellent Very Good Good Fair Poor 8. Prior explanation of job to be carried out and cost estimate Excellent Very Good Good Fair Poor

Service Quality 9. Availability of parts to serve your vehicle Excellent Very Good Good Fair Poor 10. Job satisfactorily completed at first time Excellent Very Good Good Fair Poor 11. Quality of repairs carried out Excellent Very Good Good Fair Poor

In-service Experience 12. Appearance of service area Excellent Very Good Good Fair Poor 13. Appearance of customer lounge Excellent Very Good Good Fair Poor Service Delivery 14. Reasonable time taken for service Excellent Very Good Good Fair Poor

15. Timely delivery of vehicle Excellent Very Good Good Fair Poor 16. Appearance of vehicle at the time of delivery Excellent Very Good Good Fair Poor 17. Explanation of work done and charges at the time of delivery Excellent Very Good Good Fair Poor

18. Explanation of maintenance tips at the time of delivery Excellent Very Good Good Fair Poor 19.Based on your overall experience would you recommend EVM Honda workshop to friend or relative Excellent Very Good Good Fair Poor

BIBILOGRAPHY REFERENCES

Kothari C.R., Research Methodology, Second Edition,

New Delhi, Wishwa Prakashan.

Philip Kotler, Marketing Management, Millennium 10th

edition, Prentice Hall India. Dr: Radha Oommen Nair, Marketing Management,

Prasanna & Co. Company manuals and magazines

WEBSITES

www.evmhonda.com www.customersatisfaction.com www.wikipidea.com

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