1.6 LIMITTION OF STUDY:The study is limited to secondary data only primary data will be presented in semester 4.

This
study mainly focused on importance of customer satisfaction towards Samsung mobiles phones.
Surveys interviews have to be collected for next semester.
Time factor is the main limitation of the study.

CH 2:-REVIEW OF LITREATURE:-

Theoretical Background of the

Customer Satisfaction
According to Philip Kotler, satisfaction is a persons feelings of pressure or disappointment
resulting from products perceived performance (outcome) in relation to his or her
expectations. Customer satisfaction is the level of a persons felt state resulting from
comparing a products perceived performance (outcome) in relation to the persons
expectations.
In today's increasingly competitive environment, quality services and customer satisfaction are
critical to corporate success. Delivering high quality services is closely linked to profits, cost
savings and market share. As stated by Piercy (1995), it is striking that one of the few elements
that links many of the otherwise disparate recommendations made to managers over the past
several decades has been the need to focus on customer satisfaction as a route to sustained high
performance. Companies should, to a much higher degree, be aware of the fact that customer
dissatisfaction equals both defection and long-term losses. As stated by various authors
(Ballantayne et al. 1996; Berry, 1986; Collier, 1994; Schneider and Bowen, 1995): It is easier and much cheaper - to keep existing customers than to get new ones. Additionally, another
benefit from achieving satisfied customers is the fact that the willingness to repurchase is much
higher for satisfied customers than for dissatisfied and indifferent ones. Despite this awareness

concerning the importance of customer satisfaction, it is beyond the ability of many of today's
service companies to maintain satisfied customers.
Empirical surveys concerning the proportion of satisfied versus dissatisfied customers reveal that
a large amount of service industries suffer from an insufficient number of satisfied customers. A
survey conducted in the BD by Dr.siraj (2001) reveals extreme low levels of overall customer
satisfaction. He examined the overall customer satisfaction levels in various service branches:
Grocery chains (31%), fast-food outlets & Res. (24%), and banks (15%). One can argue that
these results constitute a low range of general service provision. However, even companies
which focus their efforts on achieving satisfied customers, rarely exceed a customer satisfaction
ratio above 50-70% (Scheby, 1998). However , it is important to emphasize that it is almost
impossible to compare various levels of satisfaction, as the numbers depend heavily on the
specific method of measurement. As a result, it is not possible to refer to the degree of satisfied
versus dissatisfied customers in absolute terms, but only in relative terms.
Based on the results above, the impression rises that the discipline of satisfying customers is not
always successfully translated into activities practiced by service companies. This fact has
supported our interest in conducting an investigation concerning the relationship between service
providers and customer satisfaction.
Methods to Measure Customer Satisfaction
Companies use the following methods to measure customer satisfaction.
1) Complaints and suggestion system:
Companies obtaining complaints through their customer service centers, and further suggestions
were given by customers to satisfy their desires.
2) Customer satisfaction surveys:
Responsive companies obtain a direct measure of customer satisfaction by periodic surveys.
They send questionnaires to random sample of their customers to find out how they feel about

various aspects of the companys performance and also solicit views on their competitors
performance. It is useful to measure the customers willingness to recommend the company and
brand to other persons.
3) Lost Customer Analysis:
Companies should contact customers who have stopped buying or who have switched to another
supplier to learn why this happened.
4) Consumer Behavior Vs Consumption Behavior:
Consumer behavior refers to the manner in which an individual reaches decision related to the
selection, purchases and use of goods and services. Walters and Paul says that, consumer
behavior is the process where by the individuals decides what, when, how and from whom to
purchase goods & services.
Consumer behavior relates to an individual person (Micro behavior) where as consumption
behavior relates to and to the mass or aggregate of individuals (Macro behavior) consumers
behavior as a study focuses on the decision process of the individual consumer or consuming
unit such as the family.
In contrast the consumption behavior as a study is to do with the explanation of the behavior of
the aggregate of consumers or the consuming unit. Consumer is a pivot, around which the entire
system of marketing revolves. The study of buyer behavior is one of the most important keys to
successful mark.
Customer Satisfaction is seen as a key performance indicator within business and is often part of
a Balanced Scorecard. 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.
"Within organizations, customer satisfaction ratings can have powerful effects. They focus
employees on the importance of fulfilling customers expectations. Furthermore, when these
ratings dip, they warn of problems that can affect sales and profitability. . . . These metrics

quantify an important dynamic. When a brand has loyal customers, it gains positive word-ofmouth marketing, which is both free and highly effective."
Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do
this, firms need reliable and representative measures of satisfaction.
In researching satisfaction, firms generally ask customers whether their product or service has
met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When
customers have high expectations and the reality falls short, they will be disappointed and will
likely rate their experience as less than satisfying. For this reason, a luxury resort, for example,
might receive a lower satisfaction rating than a budget moteleven though its facilities and
service would be deemed superior in absolute terms.
The importance of customer satisfaction diminishes when a firm has increased bargaining power.
For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry
that is an oligopoly, where only a few suppliers of a certain product or service exist. As such,
many cell phone plan contracts have a lot of fine print with provisions that they would never get
away if there were, say, a hundred cell phone plan providers, because customer satisfaction
would be way too low, and customers would easily have the option of leaving for a better
contract offer. There is a substantial body of empirical literature that establishes the benefits of
customer satisfaction for firms.
Reference :- Marketing management Philip Kotler

CH:-3 OVER VIEW OF SAMSUNG COMPANY

3.1 Company overview: Samsung Group
The Samsung Group is a multinational conglomerate corporation headquartered in Samsung
Town, Seoul, South Korea. It is the world's largest conglomerate by revenue with an annual
revenue of US $173.4 billion in 2008 and is South Korea's largest chaebol. The meaning of the
Korean hanja word Samsung is "tristar" or "three stars".
The Samsung Group is composed of numerous international affiliated businesses, most of them
united under the Samsung brand including Samsung Electronics, the world's largest electronics
company, Samsung Heavy Industries, the world's second largest shipbuilder and Samsung C&T,
a major global construction company.
Samsung has been the world's most popular consumer electronics brand since 2005 and is the
best known South Korean brand in the world. Samsung Group accounts for more than 20% of
South Korea's total exports and is the leader in many domestic industries, such as the financial,
chemical, retail and entertainment industries. The company's strong influence in South Korea is
visible throughout the nation, which has been referred to as the "Republic of Samsung".
The Samsung Philosophy:
At Samsung, they follow a simple business philosophy: to devote their talent and technology to
creating superior products and services that contribute to a better global society. Every day, their

people bring this philosophy to life. Their leaders search for the brightest talent from around the
world, and give them the resources they need to be the best at what they do. The result is that all
of their productsfrom memory chips that help businesses store vital knowledge to mobile
phones that connect people across continents have the power to enrich lives. And thats what
making a better global society all is about.
Their Values
They believe that living by strong values is the key to good business. At Samsung, a rigorous
code of conduct and these core values are at the heart of every decision we make.
People
Quite simply, a company is its people. At Samsung, were dedicated to giving our people a
wealth of opportunities to reach their full potential.
Excellence
Everything we do at Samsung is driven by an unyielding passion for excellenceand an
unfaltering commitment to develop the best products and services on the market.
Change
In todays fast-paced global economy, change is constant and innovation is critical to a
companys survival. As we have done for 70 years, we set our sights on the future, anticipating
market needs and demands so we can steer our company toward long-term success.
Samsung Telecommunication:

Samsung Telecommunications is one of five business units within Samsung Electronics,

belonging to the Samsung Group, and consists of the Mobile Communications Division,
Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile
Solution Centre and Telecommunication R&D Centre. Telecommunication Business produces a
full spectrum of products from mobiles and other mobile devices such as MP3 players
and laptop computers to telecommunication network infrastructure. Headquarters is located
in Suwon, South Korea.
In 2007 Samsung Telecommunication Business reported over 40% growth and became the
second largest mobile device manufacturer in the world. Its market share was 14% in Q4 2007,
growing up form 11.3% in Q4 2006. At the end of November 2011, Samsung sold more than 300
million mobile devices and set still in second after Nokia with 300.6 million mobile devices sold
in the first three quarter of 2011.
Our Culture:
At Samsung, we follow a simple business philosophy: to devote our talent and technology to
creating superior products and services that contribute to a better global society. Every day, our

people bring this philosophy to life. Our leaders search for the brightest talent from around the
world and give them the resources they need to be the best at what they do.

The result is that all of our products from memory chips that help businesses store vital
knowledge to mobile phones that connect people across continents have the power to enrich
lives. That's what making a better global society is all about. We believe that living by strong
values is the key to good business.Samsung encourages leadership; assisting children in lowincome families by supporting educational infrastructure, supporting outstanding students and
supporting programs that encourage family well-being. We also carry out programs in these areas
at each of our eight volunteer centers.
Corporate Responsibility:
Samsung recognizes that your choice of workplace is affected by more than benefits and
compensation.

Many in the workforce want to work for an employer who will value them and help them reach
their fullest potential, while preserving work-life balance. Others are also concerned by what
their employer is doing to help the environment and those in need.
Samsung's commitment to sustainability and good corporate citizenship is strong. Here are some
examples of how Samsung Mobile is not just a great place to work, but how we're also doing our
part and giving back.

3.2 Product Profile

Samsung Mobiles in India is managed by Samsung Telecommunications India (STI) who are the
design and technology leaders in the market of mobiles. The Samsung mobile division in India
manufacturers and markets wide variety of mobile telecommunications products with pre pay
and post pay markets in the consumer as well as business segments.
There are 3 different conglomerates which are united under one Samsung group. Samsung
Electronics is the part of its business conglomerate and also the worlds largest electronics
company. Samsung Mobiles is also a part of Samsung Electronics which works in semi
conductors, telecommunications, digital media and digital LCD appliances. The Headquarter of
Samsung is in South Korea and at present it operates in more than 100 countries.

The mobile phones by Samsung are mainly divided into 6 major categories that include style,
Multimedia, Infotainment, Essential, Business and Connected.
The company is known for introducing consumer oriented innovative and breakthrough
technology products and the new brand positioning of the company is reflected in its spunky and
new tagline Next is What? which is used in all the communication material of Samsung.
The popular handsets of Samsung are:
Tablet Smartphone
Smartphone
Dual Sim Phone Find the perfect balance with DUAL SIM.
Touch Phone Leading the TOUCH revolution.
Qwerty Messaging Phone
Multimedia Phone MULTIMEDIA magic unlimited.
CDMA Phone Discover a unique lifestyle with CDMA.
Essential Phone

3.3 Samsung Galaxy Smartphones:

Intuitive, stylish and simple to use, the Samsung Galaxy smartphone delivers a personalized,
seamless mobile experience that helps your day run smoothlywhether it's time for work,
family or play.
List of Samsung Galaxy Series:
Now in India Samsung is the King of Mobiles. Galaxy series mobiles are very hot these days
because of cool design, features, large display and attractive prices. Also these comes with Most
powerful and popular android Operating system. Samsung improving galaxy series by adding

more mobiles in the galaxy brigade.Samsung give the names to their galxy series mobile phones
such as Galaxy y,Galaxy Ace,Galaxy Grand etc..