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Consumer

Satisfaction in
Automobile
Industry
Research Methodology Report
2016

Efforts By:
SYBBA-F Group No. 2
Akshat Mehrish- 06
Aliasger Fanaswalla- 07
Anaka Gore- 08
Ananya Singh- 09
Anish Jain- 10
Consumer Satisfaction in Automobile Industry: Introduction

The automobile industry in India is one of the largest in the world with an annual
production of 23.37 million vehicles in FY 2014-15, following a growth of 8.68 per cent over
the last year. The automobile industry accounts for 7.1 per cent of the country's gross
domestic product (GDP). The Two Wheelers segment, with 81 per cent market share, is the
leader of the Indian Automobile market, owing to a growing middle class and a young
population. Moreover, the growing interest of companies in exploring the rural markets
further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13
per cent market share.

Customer satisfaction is a term frequently used in marketing. It is a measure of how


products and services supplied by a company meet or surpass customer expectation which
are the needs and wants of individuals in the economic market place. Such expectations are
usually driven by people’s preconceived ideas regarding goods and services. Customer
satisfaction is defined as "the number of customers, or percentage of total customers,
whose reported experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals.

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of
the state of satisfaction will vary from person to person and product/service to
product/service. It is closely related to consumer loyalty which the result of consistently
positive emotional experience, physical attribute- based satisfaction and perceived value of
an experience, which includes the product or services whereas the state of satisfaction
depends on a number of both psychological and physical variables which correlate with
satisfaction behaviours 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.

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. 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 motel—even though its
facilities and service would be deemed superior in 'absolute' terms.
Satisfied customers, satisfied employees and satisfied shareholders all have one common
characteristic – they are positive and enthusiastic about the company they are dealing with.
Talking in more detail, they shall behave in a way desired and understood by a firm, when it
comes to making decision about further cooperation with the company. Specifically, they
will be making repeat purchases, delivering best quality of work and investing additional
funds in the company stocks.

Such behaviour of satisfied customers, employees and shareholders will contribute to


business growth. Therefore satisfaction, understood in such a wide context, shall definitely
be on the top of an organisation’s list as it has strong positive impact on business results.

Customer satisfaction is often considered as the driver of customer loyalty and consecutive
retention. This statement, although intuitively true, could be argued with. A satisfied
customer may not always be a loyal one. Some may even argue that there is no reason to
retain customers as new customers can easily be acquired if the marketing strategy is well in
place. Another argument is that acquiring new customers can be more expensive than
retaining existing customers.
Review of Literature

Westbrook (1980)

Research on consumer satisfaction with products has typically ignored influences other than
the confirmation of expectations relative to product outcomes. This paper examines the
impact of broader, intrapersonal affective variables on satisfaction, and presents empirical
results on the relative effects of both types of influence. the findings support the
proposition that product satisfaction is partly a function of broader affective influences
within the consumer, in addition to purchase-specific cognitive factors, such as the extent to
which product outcomes meet or exceed expectations.

Woodruff et. al (1983)

The authors propose to modify the basic confirmation/disconfirmation paradigm in two


ways. First, expectations are replaced with experience-based norms as the standard for
comparison of a brand's performance Second, a zone of indifference is postulated as a
mediator between confirmation/disconfirmation ad satisfaction. Implication for future
research also presented.

Bearden and Teel (1983)

Data obtained from 375 members of a consumer panel in a two-phase study of consumer
exfjeriences with automobile repairs and services were used to examine the antecedents
and consequences of consumer satisfaction. The results support previous findings that
expectations and disconfirmatian are plausible determinants of satisfaction, and suggest
that complaint activity may be included in satisfaction/ dissatisfaction research as
suggested by earlier descriptions of consumer complaining behavior.

Ram and Shile Jung (1990)

This paper reports on an empirical investigation of the effect of product usage on


consumers satisfaction in the context of consumer durables. It conceptualizes three
dimensions of usage - usage frequency, usage function and usage situation- and examines
the impact of these usage dimensions on satisfaction. Results of a field survey using five
consumer durables suggest that the usage dimensions influence satisfaction through
corresponding dimensions of usage disconfirmation, independent of the effect of
performance disconfirmation satisfaction. The specific dimensions of usage disconfirmation
which influence satisfaction vary by product.
Yi (1993)

This study has investigated the moderating role of ambiguity in the process of consumer
satisfaction formation. It is found that product ambiguity moderates the way that
expectation, performance, and disconfirmation determine consumer satisfaction. When the
product is ambiguous, consumer expectations have direct effects on consumer satisfaction
as well as indirect effects through disconfirmation. On the other hand, when the product is
unambiguous or easy to evaluate, product performance has direct effects on consumer
satisfaction as well as indirect effects via disconfirmation. The theoretical and practical
implications of these findings are discussed as well.

Anderson et. Al (1994)

The study is about customer satisfaction, market share and profitability. Its main objective is
to investigate how expectations, quality, and price affect customer satisfaction and why
customer satisfaction, in turn, affects profitability. The authors used a system of equations
to test out multiple hypothesis. The findings showed a preliminary indication of trade-offs
between customer satisfaction and market share goals. They found out that customer
satisfaction might fall as market share increases.

Gupta and Stewart (1996)

Consumers use multiple strands to evaluate their satisfaction with a product and to
establish post purchase behavioural intention. However, prior empirical research has
focused on which individual standard best predicts satisfaction. In contrast,this article
develops and tests a model of consumer satisfaction and post purchase behavioral
intentionin which consumers simultaneously use multiple standards perceptions of
performance ,brand expectations, and category expectations. The results of an experiment
for a simulate ad service encounter provide support for the proposition that consumers use
multiple standards and that these standards have differential effects on such post purchase
outcomes as satisfaction, repurchase intention, an d willingness to recommend. Brand
expectations are shown to be better predictors of affective outcomes (such as satisfaction),
while category expectations are shown to be better predictors of behavioral outcomes
(repurchase and recommendation). Consistent with prior research, perceived performance
is shown to have a strong effect on both satisfaction and behavioural intention.

Anderson et. al (2001)

The objective of this paper was to investigate whether there is concrete relation between
customer satisfaction and productivity and what are the conditions under which there are
tradeoffs between customer satisfaction and productivity. Also to investigate the extent to
which such tradeoffs are present, if present at all. It was found tradeoffs exist where
increasing productivity might lead to lower levels of satisfaction however the correlation
was much higher for services than for products.

Pauwels et. al (2004)

The study is about understanding the short- and long-term impact of marketing actions,
such as, new products, sales production and firm value on financial metrics, including top-
line, bottom-line, and stock market performance. The authors use vector-autoregressive
model to test out various hypothesis. The results were that beyond the impact of the firm’s
earnings and the general investment climate, product introductions have positive and
increasing effects on firm value. In contrast, sales promotions diminish long-term firm value,
even though they have positive effects on revenues and (in the short run) on profits.

Gountas and Gountas (2006)

This paper explores how personality orientations and emotions influence consumer's service
perceptions in the airline industry. Research area in consumer behaviour is limited to
understanding of consumer's emotional experiences during their interactions with service
providers. Little research investigates the relationships between personality differences,
emotional states, and individual consumer behaviour. It investigates the effects of
personality differences and emotional contagion of sales personnel in a service setting and
suggests that both need consideration because they influence service performance
outcomes.This study examines the relationships between tourism consumers' emotions,
personality orientations and service satisfaction. The research findings suggest a direct
relationship between the consumers' personality orientation, emotional characteristics and
self-reported satisfaction of the service experience.

Waligóra and Waligóra (2007)

A new method of customer satisfaction and loyalty measurement was developed for the
purpose of the study; the method is called Brand Satisfaction Model. The study also aimed
to apply the theoretical model into the practical research. The research revealed that there
are significant differences in how satisfaction and loyalty of customers are created; it also
outlined different factors that should be taken into account when implementing loyalty
improvement programs.
Dillard and Bates (2010)

The study was undertaken in order to understand whether dissatisfied customers or


intending defectors could be regained as a result of efforts of consumer satisfaction and
crisis management undertaken by the management and whether the timing of such
measures was an important factor in the outcome. Findings indicated that such defectors
could be regained with a 50% success rate, provided adequate solutions were provided to
the problems faced by them.

Utpal M. Dholakia (2010)

The study is about Understanding the Effects of Post-Service Experience Surveys on Delay
and Acceleration of Customer Purchasing Behavior. The objective was to understand the
effects of post-service experience surveys on delay and acceleration of customer purchasing
behavior. The authors used data from a large US automotive maintenance service firm to
test out various hypothesis. The sample took data from 5225 residents. The results indicated
that the short- and longer-term influences of firm-sponsored post-service experience survey
participation vary depending on the form of customer behavior examined. As a result, the
effects of survey participation may be of, either consistent or contrasting valence, thereby
yielding either favorable or unfavorable results to the firm. A laboratory experiment
revealed that survey participation leads customers to make inferences of service
completeness and enhances their recall of the specific service elements performed during
the preventive maintenance visit.

Dr. Sharma et. Al (2011)

The objective of this paper was to find the satisfaction amongst the customers, Market
performance and Market position of TATA Motors. Primary Data and secondary data were
used to formulate a regression coefficient to interpret the data. Tata Motor is one of the
best cars manufacturing company in India, customers are satisfied because of affordable
price, but the maintenance is a problem and resale value is very low. These are the two
main reasons and other reasons are customer care does not respond to customers
complaints, so the customers are dissatisfied. TATA Motors have to improve its customer
care and decrease the price of their spare part and make available in all part of the country.
Jayasankaraprasad (2012)

The purpose of this paper is to explore the antecedents of customer satisfaction and
examine the consequences of customer satisfaction on customer behavioural outcomes.
Shopper intercept survey technique was applied to collect the data from 580 actual
shoppers from 35 supermarkets in twin cities of Hyderabad and Secunderabad in Andhra
Pradesh. Results indicate that value for money, value for time, service quality, store
reputation, and situational factors are the significant predictors (antecedents) of customer
satisfaction in a typical food and grocery retail setting. Furthermore, results find that
customer satisfaction significantly affects the store loyalty (behavioural and attitudinal),
repurchase intention, positive word-of-mouth, price insensitivity, and complaint behaviour.

Nataraj S & Dr. N.Nagaraja (2012)

The study is exploratory in nature and based on primary and secondary information. Aims at
revealing the online behavior of today’s auto consumers and attempts to investigate what
prominent factors maximize the online customer satisfaction. Found that online consumers
consider the most significant factors for website satisfaction of the Car manufacturers’
website on the basis of Quality of Content and Ease of Navigation.

Kaur and Soch (2012)

The present study addresses both the conceptual and measurement issues related to
customer loyalty amongst the cell phone users. Building on existing literature, the
antecedents of customer loyalty are reassessed in a service setting namely, customer
satisfaction, trust, commitment, corporate image, and switching costs. This paper reports
the development and validation of scales for measuring customer loyalty and its
antecedents. The scale development and validation process was divided into three phases.
Phase 1 consisted of the item generation process, assessment of content validity, and initial
purification of measures. Item analysis and exploratory factor analysis were used on data
collected from 250 postgraduate business students of a major university in India for initial
purification of the instrument. In Phase 2, additional data were collected from 855 cell
phone users in northern India to assess the latent factor structure through confirmatory
factor analysis. In Phase 3, the discriminant validity and convergent validity of the measures
were established.
Şahin et. Al (2013)

Brand experience, direct mail communication, trust and attitudes toward advertising are
major antecedents of customers’ satisfaction for a brand and satisfied customers may buy
more, accept higher prices and have a positive word-of-mouth effect. Also, we know that
the cost of selling to new customers is much higher than selling to existing customers. In this
context, the main aim of this paper is to investigate the relations among direct mail
communications, brand experience, trust, and attitudes toward advertising, satisfaction and
behavioral intentions. We work with Structural Equation Model (SEM) to analyses and
explain the relationships between the variables in the model. The findings supported the
proposed hypotheses, which are consistent with theoretical framework. All results are in
line with the study expectations, with
an exception that it refers to the relation between satisfaction and price
premium. Our study suggests that to combine high customers’ satisfaction rates with
delivering positive brand experience, trust, and direct mail communication have a strategic
opportunity to differentiate brand and reinforce customer behavioral intentions for a brand.
Our study indicates that managers should know that overall evaluations of performance
(brand experience, advertising, direct mail communication and trust) to predict customers’
behavioral intention battery through satisfaction. Research has investigated previously
unexplored relations among brand experience, direct mail communications, trust, and
attitudes toward advertising, satisfaction and behavioral intentions via SEM.

Usha and Dr. Nallabala (2014)

The automobile sector is a key performer in the global and Indian economy. The automotive
industry in India is one of the largest in the world and one of the fast growing globally. The
study covers customer’s expectation through Concorde motors and perceived value by the
customers through Concorde motors and the level of satisfactions of the customers.
Concorde Motors (India) Limited, a 100% subsidiary of the company engaged in sales and
service of Tata and FIAT passenger cars recorded a turnover of Rs.580.90 crores and profit
after Tax of Rs.3.71 crores. Concorde Motors (India) Limited has declared a dividend of
Rs.2.50 per share for the FY 2010-11 and Rs.7 per share for the FY 2010-11 on the 7%
cumulative redeemable preference shares. The research study is carried out to know the
Customer Satisfaction on FIAT cars. The Indian automotive market is one of the most
competitive markets with low costs, which make it an attractive assembly base for foreign
automotive manufacturers.
Javed et. Al (2015)

The study is about customer satisfaction and service quality in four wheeler automobile
industry. It deals with the review on customer satisfaction and its effect on automobile
industry. Throughout the study, different variables have been studied such as Customer
satisfaction, Service quality and Perceived service. The authors have used service quality
model in order to indicate that the customer satisfaction is most important part of any
industry. Therefore, it is the main responsibility of service industries to improve customer
satisfaction and quality of service which is beneficial to enhance the no. of new customers.
Research Problem:
To study Customer Satisfaction in the Automobile Industry.

Key Variables: Customer Satisfaction, Effect of product functions and performance, Effect of
purchase experience, Effect of After sales services

Research Objectives:

Following are the objectives of this research study:

• To identify how the reasons which are influencing customer satisfaction. (Reasons:
Features, Performance, Maintenance Cost, Mileage, Aesthetics).

• To study how much the purchase experience affects consumer satisfaction.

• To study how after sales service affects consumer satisfaction

• To study the relation between satisfaction and loyalty.


Research Methodology

The research methodology, while conducting this study to determine the consumer
satisfaction in automobile industry, involved the use of survey research design whereby 81
automobile users were asked to participate in the collection of primary data. Primary data
collection was facilitated by the use of questionnaire (Appendix 2) that was later coded and
converted into graphical formats for its analysis.

1. Research Design
The survey research design was used for this study, as it attempts to collect data
from members of a population and describes existing phenomena by asking
individuals about their opinion, behaviour etc. This design was suitable for this study
as it ensured that the automobile users are surveyed for determining the consumer
satisfaction levels.

2. Sample Design and Size


Convenient sampling method was used to ensure that all the automobile users are
selected conveniently with an ease of approachability and without any bias of the
researchers, in a cost effective way. This was done by sending out the link to the
questionnaire to all the automobile users known to the researchers, who in turn,
were asked to spread it amongst their social circles, thus ensuring the samples
represent the population and their selection is unbiased, convenient and cost
effective.
A sample size of 81 was selected to ensure that data collection doesn’t become a
hindrance while conducting the study but at the same time, ensuring that the sample
size is not very small which in turn, would make the findings of the study inconclusive
and insufficient for further research.

3. Data Collection Tools


Primary data was collected by using the questionnaire that was prepared by the
researcher themselves. This was done via Google Forms due to the ease of use and
accessibility. The questionnaire contained only one section whereby all the necessary
questions were asked.

4. Scaling
In order to aid in the collection of data for certain qualitative variable such as
satisfaction and loyalty, different sets of scales like Likert Scale for measuring equal
interval data. The ASCI index was also used to determine the overall satisfaction on
the basis of expectation and the ideal.
Hypothesis

Following hypotheses will be analyzed, studied and interpreted in this study, viz.

1. The influence of after sales service provided by the manufacturer on consumer


satisfaction.
Let µ1: after sales service; µ2: consumer satisfaction
H0: µ1 does not have any influence on µ2 (µ1 = µ2; µ1 - µ2 = 0)
H1: µ1 has an influence on µ2 (µ1 ≠ µ2)

2. The influence of purchase experience provided by the manufacturer on consumer


satisfaction.
Let µ1: purchase experience; µ2: consumer satisfaction
H0: µ1 does not have any influence on µ2 (µ1 = µ2; µ1 - µ2 = 0)
H4: µ1 has an influence on µ2 (µ1 ≠ µ2)

3. The influence of value for money on consumer satisfaction.


Let µ1: value for money; µ2: Consumer satisfaction
H0: µ1 does not have any influence on µ2 (µ1 = µ2; µ1 - µ2 = 0).
H1: µ1 has an influence on µ2 (µ1 ≠ µ2)

4. The effect of consumer satisfaction on loyalty.


Let µ1: consumer satisfaction; µ2: loyalty
H0: µ1 does not have any influence on µ2 (µ1 = µ2; µ1 - µ2 = 0).
H1: µ1 has an influence on µ2 (µ1 ≠ µ2)

5. The age group has an influence on satisfaction.


Let µ1:age group ; µ2: consumer satisfaction
H0: µ1 does not influence µ2 (µ1 = µ2; µ1 - µ2 = 0).
H1: µ1 influences µ2 (µ1 ≠ µ2)

6. The gender has an influence on consumer satisfaction.


Let µ1: gender µ2: consumer satisfaction.
H0: µ1 does not influence µ2 (µ1 = µ2; µ1 - µ2 = 0).
H1: µ1 varies µ2 (µ1 ≠ µ2)

7. The family income has an influence on consumer satisfaction.


Let µ1: family income µ2: consumer satisfaction.
H0: µ1 does not influence µ2 (µ1 = µ2; µ1 - µ2 = 0).
H1: µ1 influences µ2 (µ1 ≠ µ2)
Data Analysis

The data analysis of the questionnaire is given as below.

Majority of our population was in the age group 18-25 years (59.3%), followed by the age
groups 26-34 (14.8%) and above 46 years (14.8%). The age group with the least population
was 26-34 (11.1%). The higher number of respondents belonging to 18- 25 years is merely a
coincidence as the method of convenient sampling has been deployed for data collection.

The number of respondents was 81, of which 63% were male and 37% were females. The
higher number of male respondents is merely a coincidence as the method of convenient
sampling has been deployed for data collection.
Out of our total population surveyed, 34.6% claimed that their family income was between
Rs. 7 lakhs to Rs. 15 lakhs. Out of the remaining population, 33.3% claimed that their family
income was between Rs 16 lakhs to Rs. 24 lakhs. 23.5% claimed that their family income
above 25 lakhs while 8.6% claimed that their family income was less than 7 lakhs. Hence we
can safely assume that a majority of our population are within the high income bracket and
can easily change their automobile within a short period of time if dissatisfied.

Expectation and satisfaction


Out of the 81 responses taken, a staggering 93.8% stated that they were moderately to
highly satisfied. Only a minimal 6.1% of the total population were dissatisfied with their
current vehicle. The reason for this can be simply the vehicle matching the expectations of
the consumers as stated by 87.7% of our total population. Another reason for the high level
of satisfaction can be the performance of the vehicle.

6. Features and Functions

The following features were in consideration in our survey- Cruise control, Leg space,
Smoothness while driving, Auto headlights/ wipers, Seats and Car stability. While
considering customer satisfaction in regards to these features, it was noted that the
satisfaction was consistent throughout the features with the level of satisfaction being
moderate. The reason for the consistency across the board is the availability of similar
features across all brands.
Car Manufacturer

When asked about the likeliness of repurchase from the same manufacturer, a majority of
our population (81.4%) answered in affirmative, by choosing 3-4 out of a 5 point scale
indicating their satisfaction with their current manufacturer. Loyalty plays a major part in
this aspect. This can be further reiterated by the fact that 85.2% of our total population
claimed that they would also recommend their car manufacturer to others.
Customer satisfaction in relation to car manufacturer

Car manufacturers play an important role in providing satisfaction to the customers. When
our population was asked how likely a bad service experience going to make them never
consider the same brand again, 79% of the total population chose between 3-5. That shows
how important the service aspect and in turn the car manufacturer providing the service is
to customer satisfaction. We found out that purchase experience provided by the
manufacturer is also very important, as we provided our population the following factors-
Information provided, Ease of contact, Ambience and Deal provided. The majority
population chose 3-4 while considering information provided, ease of contact with the sales
representative and ambience. The overall deal provided proved to be the most important
factor amongst the alternatives as almost half of the total population surveyed deemed it to
affect their satisfaction the most.
Other factors

Given the following options in sales service affecting the satisfaction of consumers- Facilities
available, Compliance with time given, Knowledge of provider, Car handling, Proximity of
service station and Cost of service, our population was asked to choose from a scale of 1-5
as to how these factors affect their satisfaction. While knowledge of the service provider,
handling of the car, cost of service and compliance with time given were found out to be the
most important factors, proximity and facilities available were deemed to be not as
important as to affect the customer satisfaction in a negative way. This proves that while
looking at after sales services, the way the car of the consumers is handled is very important
to the consumers themselves. A bad experience can make them shift their brand loyalty.
Hypothesis Testing

In the previous section, we saw the analysis of the data as per the responses of the
questions. In this section, we shall focus on the hypothesis that have been drafted by the
researchers, in compliance with the objectives o the research, to understand the
relationships between considered variables better and to determine, if in fact, there exists
any relationships.

1. The influence of after sales service provided by the manufacturer on consumer


satisfaction.
Let µ1: after sales service; µ2: consumer satisfaction
H0: µ1 does not have any influence on µ2 (µ1 = µ2; µ1 - µ2 = 0)
H1: µ1 has an influence on µ2 (µ1 ≠ µ2)

The respondents were asked to rate their how satisfied they are with the various after sales
services provided to them by the dealers/ manufacturers. They were also asked to rate their
satisfaction (using the ASCI scale). Due to the nature of the dependent as well as
independent variable, the regression model of hypothesis testing was chosen. A confidence
level of 95% was selected in the regression for a sample size of 81. (n=81) The model though
significant (Significance F= 0.0313835 < α = 0.05) is not very strong because the value of R
square= 0.057295 which means that the independent variables (After sales services)
account only for 5.7% change in the dependent variable (consumer satisfaction). So the null
hypothesis will be rejected.
2. The influence of purchase experience provided by the manufacturer on consumer
satisfaction.
Let µ1: purchase experience; µ2: consumer satisfaction
H0: µ1 does not have any influence on µ2 (µ1 = µ2; µ1 - µ2 = 0)
H4: µ1 has an influence on µ2 (µ1 ≠ µ2)

The respondents were asked to rate their how satisfied they are with the purchase
experience provided to them by the dealers. They were also asked to rate their satisfaction
(using the ASCI scale). Due to the nature of the dependent as well as independent variable,
the regression model of hypothesis testing was chosen. A confidence level of 95% was
selected in the regression for a sample size of 81. (n=81) The model though significant
(Significance F= 0.00174 < α = 0.05) is moderate because the value of R square= 0.117417
which means that the independent variables (purchase experience) account only for
11.74% change in the dependent variable (consumer satisfaction). So the null hypothesis
will be rejected.
3. The influence of value for money on consumer satisfaction.
Let µ1: value for money; µ2: Consumer satisfaction
H0: µ1 does not have any influence on µ2 (µ1 = µ2; µ1 - µ2 = 0).
H1: µ1 has an influence on µ2 (µ1 ≠ µ2)

The respondents were asked to rate the importance of value for money to them. They were
also asked to rate their satisfaction (using the ASCI scale). Due to the nature of the
dependent as well as independent variable, the regression model of hypothesis testing was
chosen. A confidence level of 95% was selected in the regression for a sample size of 81.
(n=81) The Significance F= 0.0715277 > α = 0.05. The null hypothesis will be accepted i.e
value for money does not influence consumer satisfaction.
4. The effect of consumer satisfaction on loyalty.
Let µ1: consumer satisfaction; µ2: loyalty
H0: µ1 does not have any influence on µ2 (µ1 = µ2; µ1 - µ2 = 0).
H1: µ1 has an influence on µ2 (µ1 ≠ µ2)

The respondents were asked to rate how likely they are to repurchase from the same
manufacturer, recommend the vehicle and how likely is a bad experience going to make
them to come back to the same dealer/ manufacturer. They were also asked to rate their
satisfaction (using the ASCI scale). Due to the nature of the dependent as well as
independent variable, the regression model of hypothesis testing was chosen. A confidence
level of 95% was selected in the regression for a sample size of 81. (n=81) The model though
significant (Significance F= 0.00174 < α = 0.05) is low because the value of R square=
0.084791 which means that the independent variables (consumer satisfaction) account only
for 8.4% change in the dependent variable (loyalty). So the null hypothesis will be rejected.
When functional loyalty was checked; A confidence level of 95% was selected in the
regression for a sample size of 81. (n=81) The model though significant (Significance F=
0.003001< α = 0.05) is moderate because the value of R square= 0.106116 which means that
the independent variables (consumer satisfaction) account only for 10.6% change in the
dependent variable (functional loyalty). So the null hypothesis will be rejected.
5. The age group has an influence on satisfaction.
Let µ1:age group ; µ2: consumer satisfaction
H0: µ1 does not influence µ2 (µ1 = µ2; µ1 - µ2 = 0).
H1: µ1 influences µ2 (µ1 ≠ µ2)

Respondents were asked their age and their satisfaction levels bases on overall satisfaction,
expectation and performance of their vehicle and taking composite average of the
responses of all these questions. A level of significance of 5% was chosen to test the
hypothesis (α = 0.05). since the dependent variable was of nominal scale with more than 2
categories and the independent data was of ratio scale, the test selected for the hypothesis
testing was ANOVA. P- value = 0.013917 < α the null hypothesis will be rejected with degree
of freedom of 79 and F cal > F cri. Hence age does have an influence on consumer
satisfaction.
6. The gender has an influence on consumer satisfaction.
Let µ1: gender µ2: consumer satisfaction.
H0: µ1 does not influence µ2 (µ1 = µ2; µ1 - µ2 = 0).
H1: µ1 varies µ2 (µ1 ≠ µ2)

Respondents were asked to rate their satisfaction whereby 1 (highly dissatisfied) or 5 (highly
satisfied), in order to determine satisfaction level of that particular respondent. A 5% level
of significance was chosen to test the hypothesis (α = 0.05). A t- test (two tailed) was used
for handling the analysis of this hypothesis whereby it was assumed the population and the
sample were normally distributed t cri > t cal for the overall sample of 81 respondents.
Therefore the null hypothesis will be rejected and the alternate hypothesis will be accepted.
So we can assume that according to our research, gender has an influence on satisfaction.
7. The family income has an influence on consumer satisfaction.
Let µ1: family income µ2: consumer satisfaction.
H0: µ1 does not influence µ2 (µ1 = µ2; µ1 - µ2 = 0).
H1: µ1 influences µ2 (µ1 ≠ µ2)

Respondents were asked the income of the family and their satisfaction was measured. A
level of significance 5% was chosen to test the hypothesis α= 0.05. since the dependent
variable was of nominal scale with the more than 2 categories and the independent variable
was of ratio scale, the test selected for the hypothesis testing was ANOVA. P value =
0.129067 > α with a degree of freedom of 80 and F cal < F cri. Hence, the null hypothesis is
accepted whereby, we assume that the age of a vehicle user does not influence his/ her
satisfaction.
Findings and Recommendations

After analyzing the collected data and testing the various hypotheses, the following
statements have turned out to be true with respect to the data collected from the sample
space,

1. The after sales services influence consumer satisfaction.

We can say this relationship exists due to a number of facts. But by looking at this
data we can say that the facilities available, compliance with the time estimate
given, knowledge of the consumer provider, car handling, cost of service and
proximity of service station has a role to play in determining overall satisfaction with
the vehicle. And most of the respondents seem to be quite satisfied by the after
sales services provided by their dealers and manufacturer.

2. The purchase experience influences consumer satisfaction.

From the research done it is seen the point of purchase elements like information
provided, ease of contacting the sales rep, ambience of the store and deal provided
by the dealers play a role determining the consumer satisfaction.

3. Value for money does not influence customer satisfaction.

As we can see from the research done Value for money does not influence the
consumer satisfaction. As most of the respondents ( 56.8% ) have a family income of
more than Rs, 16 Lakh and hence are not very price sensitive; so if the consumer is
dissatisfied they can change their vehicle and may not bother much about the value
for money.

4. Consumer Satisfaction influences loyalty.

According to the research done we see that satisfaction does have an influence
loyalty just the degree to which it has may not be very high in the automobile sector.
This can be because it is a very competitive industry companies keep coming up with
newer and innovative models. Hence it becomes difficult to stay loyal to just one
company.

5. Age does not influence consumer satisfaction.

There exists a relationship between age and consumer satisfaction. As we see the
mean score of satisfaction is more among younger generation when compared to
the older generation. This can be because as the age increases the experience
increases and may lead to higher expectations by the older generation.
6. The gender has an influence on consumer satisfaction.

There exists a relation between gender and consumer satisfaction. As we see in the
research males are more satisfied than the females. As the mean score given by males
(2.349673) is more than the score given by females (1.683333). There can be many
reasons for such a result. As in India women vehicle users are still very less in number
and the exposure given is also very less. This can lead to less information about the
automobile and thus lesser satisfaction.

7. Family income does not influence consumer satisfaction.

There is no relationship between customer satisfaction and family income, as family


income doesn’t affect the factors listed above that play a role in enhancing
satisfaction. Income may influence the vehicle model purchased but not the
satisfaction derived from it.
Limitations of the study

1. Limitation of sample size: May not represent true majority as not all subjects under
research were studied on account of time/cost limitations, use of a sample provides
reasonably accurate data, however it is not absolute. The sample size was very small.

2. Lack of randomness of sample size: As the sample consists of subjects with a similar
age group, generalizations based on surveys conducted may not be very accurate.

3. Bias in filling questionnaire: Certain questions may not elicit true responses from
individuals filling the survey as they may hesitate in revealing personal information.

4. Cultural and demographic limitations: As all surveys are conducted in English, which
is the second language of the majority of the sample population, certain errors on
account of comprehension may arise.
.
5. Misunderstanding: The questionnaire method to collect data was used and thus the
respondents could not clear any doubts as the responses were filled in the absence
of the researchers which may have led to respondents misunderstanding the
questions.
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Appendix 1
Review No. 1
1 Name of the paper Interpersonal Affective Influences on Consumer Satisfaction with
Products
2 Name of the author Robert A. Westbrook
3 Year of publication 1980
4 Journal Journal of Consumer Research Vol.7 no.1 pp 49-54
5 Objectives / Purpose Exploratory study to assess the impact of interpersonal influences on
of the study satisfaction/ dissatisfaction as affective state and generalized
attitudes
6 Country United Kingdom
7 Industry
8 Variables studied Satisfaction, Interpersonal Influences
9 Research Methodology Questionnaire, Regression and Correlation
10 Sample details 194 undergraduate students at University of Arizona.
Population based on the exploratory nature of the study,
convenience and the desire to reduce potential exogenous influences
beyond scope of study.
11 Scaling (if any)  Optimism Scale (Goldman- Eisler 1960)- summated scale,
agree-disagree
Pessimism Scale (Goldman- Eisler 1960)- summated scale,
agree-disagree
 Delighted- Terrible Scale (Andrews and Withey 1976)- verbal
& graphic rating scale
 Consumer discontent Scale (Wessman and Ricks 1966)-
summated scale, agree-disagree
 Personal Feeling Scale (wessman & ricks 1966)- verbal rating
scale
 S-D Acale (Crowne and Marlowe 1964)- summated scale,
agree-disagree.
 Used 7 point rating scale to measure the variables.
12 Hypotheses studied (if H1- Product satisfaction varies directly with realization of
any) and Finding of the expectation.
study H2- Product satisfaction varies directly with optimism and inversely
by pessimism.
H3- Product satisfaction varies directly with overall life satisfaction
H4- Product satisfaction varies inversely with generalized consumer
satisfaction
H5- Product satisfaction varies directly with favorability of mood.

Findings- There is support for predicted relationships between


satisfaction and realization of expectations (H1), overall life
satisfaction (H3) and consumer discontent (H4)
Neither optimism/ pessimism (H2) nor mood (H5) affective measure
display significant relationships to automobile satisfaction.
Review No. 2
1 Name of the paper Modeling Consumer Satisfaction Process Using Experience Based
Norms.
2 Name of the author Robert B Woodruff, et al (1983)
3 Year of publication 1983
4 Journal Journal Of Marketing Research, Vol. 20, No. 3, pp. 296-304
5 Objectives / Purpose To study if expectations are replaced with experience based norms as
Of the study the standard for comparison of a brands performance.

To postulate a zone of indifference as a mediator between


confirmation/disconfirmation of satisfaction.
6 Country United States
7 Industry Automobile
8 Variables studied Consumer experience (satisfied / dissatisfied)
9 Research Methodology Study consumer satisfaction processes experience based models,
(Data collected) Questionnaire.
10 Sample details -
11 Scaling (if any) -
12 Hypotheses studied (if Proposed model suggests that future research on consumers
any) and Finding of the satisfaction/dissatisfaction will be problematic.
study
The incidence of disconfirmation will vary inversely with the width of
the zone of indifference.
Review No. 3
1 Name of the paper Selected Determinants of Consumer Satisfaction and Complaint
Reports
2 Name of the author WILLIAM O. BEARDEN and JESSE E. TEEL
Feb,1983
4 Journal Journal of Marketing Research Vol. XX (February 198.1), 21-8
5 Objectives / Purpose To incorporate consumer complaining behavior into a theoretical
of the study model of consumer satisfaction.
6 Country USA
7 Industry Automobile Servicing
8 Variables studied Existing Customers management, customer after sale perception,
customer grievance handling.
9 Research Methodology Primary Data collected from customers via survey method
(Data collected)
10 Sample details 375 user adult respondents from an original sample of 749
households participating in both waves
11 Scaling (if any) Expectations, attitudes and intentions were measured by using multi-
term measures.
12 Hypotheses studied (if The ability of a single satisfaction variable to moderately explain
any) and Finding of the complaint behavior is encouraging. Much as interpersonal and other
study affective influences have been shown to affect consumer satisfaction
(cf. Westbrook 1980), both intemal characteristics (e.g., perceived
risk, assertiveness) and extemal structural factors (e.g.. economic
constraints, the benefits and costs from complaining) may also inhibit
or encourage complaint behavior
Review No. 4
1 Name of the paper How product usage affects customer satisfaction
2 Name of the author Ram and Hyung Shile Jung
3 Year of publication 1991
4 Journal Marketing Letters, Vol. 2 (Nov 1991)
5 Objectives / Purpose The objective is to report on an imperical investigation of the effect of
of the study the product usage on consumer satisfaction in the context of data
durables.
6 Country Netherlands
7 Industry -
8 Variables studied Product Usage, Consumer Satisfaction, Durable goods, Usage
Dimensions
9 Research Methodology Interviews, Questionnaires, Correlation
(Data collected)
10 Sample details Random Sample, 1500 households in South Western USA
11 Scaling (if any) Data was collected from the respondents (using questionnaires) on
product usage (three components), performance disconfirmation,
usage disconfirmation (three components), and satisfaction.
12 Hypotheses studied (if Findings-
any) and Finding of the 1. In the context of consumer durables, the conventional
study performance-disconfirmation model should be extended to
include direct influences of product usage and usage
disconfirmation.
2. Another important finding is that the dimensions of usage
which affect satisfaction vary across products.
Review No. 5
1 Name of the paper The Determinants of Consumer Satisfaction: the Moderating Role of
Ambiguity
2 Name of the author Youjae Yi
3 Year of publication 1993
4 Journal Advances in Consumer Research Volume 20, eds. Leigh McAlister and
Michael L. Rothschild, Provo, UT : Association for Consumer
Research, Pages: 502-506.
5 Objectives / Purpose To study and investigate the moderating role of ambiguity in the
of the study process of consumer satisfaction formation.
6 Country USA
7 Industry Goods Industry
8 Variables studied Expectation, Performance, Disconfirmation and Consumer
Satisfaction
9 Research Methodology A pretest was conducted to determine which products are easy or
(Data collected) difficult to evaluate. Forty one students at the University of Michigan
participated in the pretest. They rated the difficulty of evaluating
product quality for twenty categories on a ten-point scale.
10 Sample details Forty one students at the University of Michigan
11 Scaling (if any) 10-Point Scale to rate satisfaction
12 Hypotheses studied (if Hypothesis: H1. When product experience is ambiguous, consumer
any) and Finding of the expectation is highly likely to have direct effects on consumer
study satisfaction.
H2. When product experience is unambiguous, product performance
is highly likely to have direct effects on consumer satisfaction.
Findings: The results obtained show that there was no significant
difference in the importance of the product to respondents. This
check gave a rough indication that there was no confounding of
ambiguity and involvement in the study.
Review No. 6
1 Name of the paper Customer Satisfaction, Market Share, and Profitability: Findings from
Sweden

2 Name of the author Eugene W. Anderson; Claes Fornell; Donald R. Lehmann


3 Year of publication 1994
4 Journal Journal of Marketing Vol. 58 (July 1994)
5 Objectives / Purpose To investigate how expectations, quality, and price affect customer
of the study satisfaction and why customer satisfaction, in turn, should affect
profitability.
6 Country Sweden
7 Industry General
8 Variables studied Customer Satisfaction, Profitability
9 Research Methodology System of equations
(Data collected)
10 Sample details -
11 Scaling (if any) -
12 Hypotheses studied (if H1: Customer Satisfaction has a positive effect on economic returns.
any) and Finding of the H2: The current level of quality as perceived by the market should
study have a positive effect on overall customer satisfaction.
H3: The market’s expectation of the quality of a supplier’s offering
should have a positive effect on overall customer satisfaction.
H4: The marketplace has adaptive expectations concerning the quality
of a supplier’s offering. The size of the adaptive updating effect should
be small.
H5: The impact of perceived quality on overall customer satisfaction
should be relatively greater that the impact of expectations about
quality.
Review No. 7
1 Name of the paper Customer Satisfaction, Customer behavior: The differential role of
travel and category expectations.
2 Name of the author Kamal Gupta and David W Stewart
3 Year of publication 1996
4 Journal Marketing Letters vol7 NO.5 PP249.263
5 Objectives / Purpose In this research, we posit a theoretical framework that suggests that
of the study consumers use multiple standards to evaluate the performance for a
particular service.
6 Country Netherlands
7 Industry Automobile
8 Variables studied Customer expectations, Industry norms, re-purchase
9 Research Methodology Regression , Correlation.
(Data collected)
10 Sample details 147 students from the Mid west and west coast of the USA
participated in this. The age of the subjects range from 20-26 years .
55% Males and 45% Females.
11 Scaling (if any) -Employee service, employee friendliness and peoblem solving
capacity were measured using 9 point bipolar scale
12 Hypotheses studied (if (1) Performance has a direct and positive impact on satisfaction
any) and Finding of the and repurchase invention.
study (2) Consumers use multiple norms while evaluating products –
that is a model with multiple norms will predict consumer
satisfaction and post purchase behavior better than a model
with only brand or category expectations.
(3) Disconfirmation of brand expectations affects consumer
satisfaction and post purchase behavior interaction . The
disconfirmation has a effect and vice versa.
(4) Disconfirmation of category expectations effects consumers.
Review No. 8
1 Name of the paper Customer Satisfaction, Productivity And Profitability: Differences
Between Goods And Services.
2 Name of the author Eugene W. Anderson, et al (2001)
3 Year of publication 2001
4 Journal Marketing Science, Vol. 16, No. 2.
5 Objectives / Purpose The objective of this paper is to investigate whether there are
Of the study conditions under which there are tradeoffs between customer
satisfaction and productivity.
6 Country United States
7 Industry Automobile
8 Variables studied Level of customer satisfaction, level of standardization quality, level
of customization quality, relative importance of customization quality
to customers.
9 Research Methodology In order to measure customer satisfaction, productivity and profits,
(Data collected) annual indices of customer satisfaction made available by the
Swedish Customer Satisfaction Barometer (SCSB) were used. Data
was collected on following industries: airlines, automobiles, banking,
basic foods, travel, clothing and retail, insurance (life, auto and
business), IT and shipping.
10 Sample details Survey begins with computer aided telephone surveys designed to
obtain a representative sample of customers who have recently
bought or used the company’s product/service.

Each respondent must clear a battery of screening questions; a 10-


point scale is used to collect data. This results in approximately
25,000 observations per variable from which annual indices are
constructed. Approximately 200 observations are used to estimate
each index.
11 Scaling (if any) Stapel Scale (10 Point) level of expectation regarding quality
12 Hypotheses studied (if Hypothesis: The relation between customer satisfaction and
any) and Finding of the productivity is similar for goods and services.
study Findings: For goods, the association between customer satisfaction
and productivity is significantly positive implying that the two are
directly proportional to some extent.
For services the relation is zero or even negative in some cases
implying the two are inversely proportional to one another.
Review No. 9
1 Name of the paper New Products, Sales Promotions, and Firm Value: The Case of the
Automobile Industry

2 Name of the author Koen Pauwels, Jorge Silva-Risso, Shuba Srinivasan and Dominique M.
Hanssens
3 Year of publication 2004
4 Journal Journal of Marketing, Vol. 68, October 2004
5 Objectives / Purpose This study investigates the short- and long-term impact of such
of the study marketing actions on financial metrics, including top-line, bottom-line,
and stock market performance.
6 Country USA
7 Industry Automotive
8 Variables studied New Products, Sales Promotions, Firm Value
9 Research Methodology 1. How new product introductions and promotional incentives
(Data collected) influence top-line (firm revenue), bottom-line (firm income),
and stock market (firm value) performance.
2. How a vector-autoregressive (VAR) model satisfies the
requirements.
10 Sample details -
11 Scaling (if any) -
12 Hypotheses studied (if 1. New product introductions increase long-term financial
any) and Finding of the performance and firm value, but promotions do not.
study 2. Investor reaction to new product introduction grows over
time, indicating that useful information unfolds in the first two
months after product launch.
3. Product entry in a new market yields the highest top-line,
bottom-line, and stock market benefits
Findings-
1. In the aggregate, customers have largely rational expectations.
2. Change in the level of quality provided by a firm enhance or
erode a firm’s reputation for quality over time.
Review No. 10
1 Name of the paper Personality orientations, emotional states, customer satisfaction, and
intention to repurchase
2 Name of the author John Gountas , Sandra Gountas
3 Year of publication 2006
4 Journal Journal of Business Research 60 (2007) 72–75
5 Objectives / Purpose This paper explores how personality orientations and emotions
of the study influence consumer's service perceptions in the airline industry
6 Country Australia
7 Industry Airline Industry
8 Variables studied Personality; Emotions; Emotional contagion; Satisfaction
9 Research Methodology  Qualitative and quantitative research work.
(Data collected)  The four personality orientations: the thinking or logical, the
feeling or emotional, the material or physical and the intuitive
or imaginative.
 SERQUAL
 Service satisfaction Survey
10 Sample details 2196 useable consumer responses.
11 Scaling (if any) A ten-point Likert scale and Plutchik's (2003) scales to explore
different personality orientations
12 Hypotheses studied (if H1. Consumers' personality orientations relate differentially to
any) and Finding of the positive and negative emotional states during the service interaction.
study H2. Consumer's personality orientations relate differentially to
overall service satisfaction as well as its components (i.e., the
Tangible and Intangible Service aspects).
H3. Personality orientations relate differentially to intention to
repurchase.
Findings: The findings support the differential relationships
hypothesized between the independent and the dependent
emotional states. The thinking or logical personality orientation
appears to be unaffected by emotional states or moods before and
during the actual flight services experiences.
Review No. 11
1 Name of the paper Measuring Customer Satisfaction And Loyalty In The Automotive
Industry
2 Name of the author Joanna Waligóra, Robert Waligóra (2007)

3 Year of publication 2007


4 Journal Journal of Economic Psychology, vol. 22.

5 Objectives / Purpose Creation of theoretical satisfaction measurement model and


Of the study statistical validation of the model. The model shall be based on
customer satisfaction theories and measurement 
 models described
in this paper.

Application of the theoretical model into the practical research -


measurement of customers’ satisfaction and loyalty using the new
methodology.

Analysis of the research results and comparison of the differences


between customer segments. The customers are segmented into
three groups based on existing consumer profile study: Compact
vehicles, Mid-size vehicles, and Full-size and Large vehicles owners. 


6 Country Poland
7 Industry Automobile
8 Variables studied Sales service quality, Quality of the vehicle, Design of the vehicle,
Comfort and functionality of the vehicle, Costs of ownership, Loyalty,
Satisfaction with overall dealer service, Showroom atmosphere.

9 Research Methodology The EFQM Excellence Model


(Data collected)
Importance Matrix (Segmentation of satisfaction with attributes
according to their importance)

Questionnaire development

Brand Satisfaction Model (BSM Model)

PLS (Partial Least Squares) Algorithm

Primary and secondary data (European Customer Satisfaction Index -


ECSI) was used.

10 Sample details Practical research on a group of 346 customers.

11 Scaling (if any) Continuous Rating Scale to determine consumer’s perception on


quality
12 Hypotheses studied (if Satisfaction and loyalty go hand in hand, the improvement in one
any) and Finding of the
study leads to an improvement in the other.

Findings: The Brand Satisfaction Model (BSM Model) discovered that


there are significant differences in how satisfaction and loyalty of
customers are created. Satisfaction concept in the automotive
industry is less complicated and is based mainly on vehicle quality,
comfort and functionality, which generate over 75% of customers
satisfaction. Loyalty is much more complex, importance of vehicle
quality, comfort and functionality decreases while at the same time
the importance of sales and after sales service quality as well as costs
of ownership drastically increases
Review No. 12
1 Name of the paper Managing Satisfaction in the Automotive Industry: The Economics of
Saving Expected Defectors
2 Name of the author John E. Dillard, Donald L. Bates (2010)

3 Year of publication 2010


4 Journal Journal of Consumer Satisfaction, Dissatisfaction & Complaining
Behavior, Volume 23

5 Objectives / Purpose This research was designed to empirically understand whether


Of the study “intending” defectors (those who were completely dissatisfied with
their product and definitely would not repurchase the brand when
next in the market) could be regained as customers.

Additionally, the variable “amount of time since the complete


dissatisfaction was reported” was also tested.

6 Country United States


7 Industry Automobile
8 Variables studied 1) SERVICE PERSONNEL ISSUE

a. Relationship with service advisor 


b. Knowledge of service personnel 


2) SERVICE ISSUES

a. Improper problem diagnosis 


b. Repair did not correct problem 


c. Repair parts not readily available 


d. Magnitude of problem/type of problem 


e. Number of problems 


3) WARRANTY ISSUES

a. Problem/work not covered by warranty

b. Cost of non-warranty service

9 Research Methodology For this research, 1,500 individuals from a major automotive
(Data collected) manufacturer who met the following conditions were invited:

1) They had originally purchased/leased their vehicle new and had


owned/leased their vehicle for between 18 and 30 months; 


2) They had completed a service survey [covering service


department, warranty, the service process, and maintenance and
repair problems] within the past 180 days; 


3) They were “expected” defectors (completely dissatisfied with the


product and definitely would not repurchase the brand when next in
the market);

4) Their dissatisfaction was with a brand controllable attribute.

The 1500 individuals owned products which represented a good


cross section of the models, produced by the automotive
manufacturer. The sample of 1500 was first broken down into those
who had completed a survey in the past 90 days (841) and those who
had completed a survey from 91-180 days previous (659). Three
hundred (300) participants were selected randomly from each group.
One hundred (100) were assigned to a control group and 200 were
assigned to an experimental group. The 100 control participants from
each group were combined to form a control group of size 200.

Because of random selection and random assignment to groups, the


control group “controlled” for geography and automobile model.
Thus, the final sample consisted of three groups

10 Sample details Experimental Group 1 – 200 “expected” defectors who had


completed a service survey in the past 90 days

Experimental Group 2 – 200 “expected” defectors who had


completed a service survey in the past 91-180 days

Control Group – 200 “expected” defectors - 100 each from the pool
that formed each experimental group. (The control group was
combined as a matter of convenience but members were tagged as
being from one pool or the other in the event that it was necessary
to match members of the control sample back to their original
groups.)

11 Scaling (if any) Continuous Rating Scale to assess satisfaction


12 Hypotheses studied (if Hypothesis 1: Intended defectors cannot be regained.
any) and Finding of the
study Hypothesis 2: The timing of intercession on intended defectors does
not affect the regain rate.

Findings:
1. If customer dissatisfaction is ignored, expect nearly
unanimous defection.
2. If customer dissatisfaction is addressed/acknowledged but
not resolved, expect nearly unanimous defection.
3. The longer dissatisfaction remains unresolved, the less chance
you have to “regain/save the defector ”

4. For those whose dissatisfaction is positively resolved in a
timely manner, expect a “ regained /saved defector” rate of
approximately
 50%.
5. There was no significant difference in the type of issue for
which consumers were regained.
Review No. 13
1 Name of the paper Understanding the Effects of Post-Service Experience Surveys
on Delay and Acceleration of Customer Purchasing Behavior:
Evidence From the Automotive Services Industry

2 Name of the author Utpal M. Dholakia, Siddharth S. Singh, Robert A. Westbrook


3 Year of publication 2010
4 Journal Journal of Service Research (Impact Factor: 2.73). 02/2010
5 Objectives / Purpose To understand the effects of post-service experience surveys
of the study on delay and acceleration of customer purchasing behavior.

6 Country
7 Industry Automotive
8 Variables studied Customer Purchasing Behaviour
9 Research Used data from a large U.S. automotive maintenance service
Methodology (Data firm to test hypotheses
collected)
10 Sample details 5225
11 Scaling (if any) -
12 Hypotheses studied (1) how frequently customers returned for successive quick
(if any) and Finding of lube preventive maintenance service visits.
the study (2) how likely customers were to redeem the firm’s coupons.
We chose these forms of behavior strategically because
inferences of service thoroughness can have potentially
different effects on these behaviors in the short- and long-
term: contrasting valence for inter-service visit time and
consistent valence for coupon redemptions. We explain these
hypothesized differences in detail next.
(3) Responding to a post-service experience survey will lead
customers to: (a) report remembering that more specific
service elements were performed on their vehicle during the
service, and (b) increase their perceptions of service
thoroughness, when compared to survey non-participants.
(4) Consumers who participated in a post-service experience
survey are more likely than non-participants to make
inferences that the service was more thorough at four months
following the survey, but not at nine months.
(5) Consumers who participated in a post-service experience
survey will be more satisfied with the service provider than
non-
participants at four months following the survey, and at nine
months.
Findings- findings show that post-service experience survey
participation
not only influences subsequent purchase timing, but also
customers’ receptivity to the firm’s coupons. Participants
became more likely to redeem coupons for discounts on
preventive maintenance service in all post-survey visits over
the course of a year following the survey.
Review No. 14
1 Name of the paper A STUDY AND ANALYSIS OF CUSTOMER SATISFACTION OF TATA
MOTORS IN JAIPUR, RAJASTHAN
2 Name of the author Dr. Sandesh Kumar Sharma, Kiran Sharma, Makshud Khan
3 Year of publication 2011
4 Journal Int.J.Buss.Mgt.Eco.Res., Vol 2(4)
5 Objectives / Purpose To find the satisfaction amongst the customers, Market performance
of the study and Market position of TATA Motors.
6 Country India
7 Industry Automobile
8 Variables studied Customer satisfaction and market performance
9 Research Methodology Primary data was collected via convenience sampling and secondary
(Data collected) data via Journals  Magazines  Newspaper  Data through internet
sources  Data collected from organization
10 Sample details Total sample size is 100. The following sample size according to area
wise is as (20 Rajapark, 20 Sodala, 20 GPO, MI Road, 20 Rambagh
Circle, 20 Tonk Road).It was collected using the questionnaire
method.
11 Scaling (if any) Conveinient sampling, sampling frame.
12 Hypotheses studied (if Attractive Discounts: 74% believe that attractive discounts are
any) and Finding of the offered whereas 26% are not satisfied with the discounts offered.
study Test Drive: 20% said that the test drives are not offered while 80%
agreed that test drives were offered to them . Post Sales Follow ups:
15% disagreed that post sales follow ups are done regularly whereas
85% said that they were done regularly
Review No. 15
1 Name of the paper Antecedents and Consequences of Customer Satisfaction Food &
Grocery Retailing: An Empirical Analysis
2 Name of the author Cherukuri Jayasankaraprasad, Prodhuturi Venkata Vijaya Kumar
3 Year of publication 2012
4 Journal Decision, Vol. 39, No. 3 , December, 2012
5 Objectives / Purpose The purpose of this paper is to explore the antecedents of customer
of the study satisfaction and examine the consequences of customer satisfaction
on customer behavioural outcomes.
6 Country India
7 Industry Food and Grocery Retail
8 Variables studied Customer satisfaction, value for money, value for time, service
quality, store reputation, store loyalty, repurchase intention, word-
of-mouth, price insensitivity, and complaint behaviour
9 Research Methodology An exploratory study (qualitative in nature) was carried out to
(Data collected) identify the factors affecting customer satisfaction. The exploratory
interviews with store managers and extensive discussions with
academicians/ researchers enabled to identify factors such as value
for money, value for time,
service quality, store reputation, store environment, social
surroundings, positive affect
10 Sample details Shopper intercept survey technique was applied to collect the data
from 580 actual shoppers from 35 supermarkets in twin cities of
Hyderabad and Secunderabad in Andhra Pradesh.
11 Scaling (if any) FivepointLikert scales ranging 1= strongly disagree to 5= strongly
agree. Variables include: Consumer satisfaction, value for money,
value for time, comprehensive intention, word of mouth.
12 Hypotheses studied (if H1a. Value for money will positively affect customer satisfaction.
any) and Finding of the H1b. Value for time will positively affect customer satisfaction.
study H1d. Store reputation will positively affect customer satisfaction
H1f. Social surrounding will positively influence customer
satisfaction.
H1g. A higher level of positive affect (person-within-situation) leads
to a higher level of satisfaction.
H2a. Satisfaction has direct positive effect on attitudinal loyalty
H2b. Satisfaction has direct positive effect on behavioural loyalty.
H2c. Satisfaction has direct positive effect on repurchase intention.
H2d. Satisfaction has direct positive effect on word-of-mouth
communication.
H2e. Satisfaction has direct positive effect on price-insensitivity
H2f. A higher level of satisfaction leads to lower level of complaining
behaviour.

Findings- results find that customer satisfaction significantly affects


the
store loyalty (behavioural and attitudinal), repurchase intention,
positive word-of-mouth, price insensitivity,and complaint behaviour.
Review No. 16
1 Name of the paper Customer satisfaction in automobile industry – An Indian online
buyers’ perspective of car manufacturers’ websites

2 Name of the author Nataraj S & Dr. N.Nagaraja (2012)

3 Year of publication 2012


4 Journal International Journal of Multidisciplinary Research Vol.2 Issue 6.

5 Objectives / Purpose The study aims at revealing the online behavior of today’s auto
of the study consumers and attempts to investigate what prominent factors
maximize the online customer satisfaction.

6 Country India
7 Industry Automobile
8 Variables studied Website knowledge, Reason for visit, Frequency of visit, Website
finding, Ease of navigation, Accuracy of information, Quality of
content, Specificity of content Layout/design.

9 Research Methodology The study is exploratory in nature and based on primary and
(Data collected) secondary information. Secondary information is collected from the
different journals, internet and periodicals, car manufacturers’
websites.

Primary information is gathered using online survey methods. To


elicit the responses, a detailed questionnaire has been designed and
surveyed online. Information is obtained from the online visitors of
websites of Car manufacturers. A preliminary questionnaire is
developed using 5-point Likert scales. The independent and
dependent variables are identified and there is one question for each
of the variables.

For a positive statement highest number (5) is assigned for ‘very


satisfied’, ‘highest frequency’ and lowest number (1) for ‘very
dissatisfied’, ‘lowest frequency’ responses. The respondents are
selected using simple random sampling technique. For analyzing the
survey data we have used the multiple regression to get the output
through SPSS 13 package

10 Sample details 50 online customers were elicited the questionnaire and 38


respondents have given their opinions which accounts to 76%
response rate. The respondents are selected using simple random
sampling technique. The study focuses on the online behavior of
Indian Car buyers.

11 Scaling (if any) Likert Scale, Continuous Rating Scale to determine sample’s
perception regarding online purchases
12 Hypotheses studied (if The state of satisfaction depends on a number of both psychological
any) and Finding of the and physical variables, which correlate with satisfaction behaviors
study 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.

Findings: Online consumers consider the most significant factors for


website satisfaction of the Car manufacturers’ website on the basis
of:

-Quality of Content

-Ease of Navigation

On the other hand online consumers do not consider the factors for
website satisfaction like - Website knowledge, Reason for visit,
Frequency of visit, Website finding, Accuracy of information,
Specificity of content and layout/design.

The findings of the study clearly indicate that online consumer


behavior is evolving and that automotive companies need to
anticipate this evolution in order to be part of, or even influence the
changes in the buying behavior. Companies need to take a fresh look
at their approach towards designing of websites. As they consider
the potential market for online sales, they need to use cutting edge
technology to maintain the Quality of the content of their websites
and make the websites user-friendly for ease of navigation which
could be possibly lead to increased customer satisfaction and
enhanced long-term relations.
Review No. 17
1 Name of the paper Validating Antecedents of Customer Loyalty for Indian Cell Phone
Users
2 Name of the author Harsandaldeep Kaur and Harmeen Soch
3 Year of publication 2012
4 Journal VIKALPA , VOLUME 37 NUMBER 4, OCTOBER - DECEMBER 2012
5 Objectives / Purpose the key objectives are: (a) to provide a conceptualization of customer
of the study loyalty and its antecedents; (b) to develop a scale for measuring
customer loyalty and its antecedents; and (c) to assess reliability and
validity of
the measures.
6 Country India
7 Industry Telecom
8 Variables studied Customer Loyalty
Cell Phone Market
Behavioural Loyalty
Attitudinal Loyalty
Corporate Image
Switching Cost
9 Research Methodology open-ended interviews and correlation
(Data collected)
10 Sample details Data was obtained through self-administered questionnaires from
250 postgraduate business students of a major university in India.
Convenience sampling was used to collect data. The sample
consisted of 132 (52.8%) females and 118 (47.2%) males.
11 Scaling (if any) 7-point Likert Scale ranging from “very strongly agree” to “very
strongly disagree” measured variables like Switching cost,
behavioural category, attitude category.
12 Hypotheses studied (if First, multi-item measures were developed and purified for
any) and Finding of the measuring customer loyalty using standard scale development
study procedures on a sample of 250 mobile phone users. Confirmatory
factor analysis was then applied on data collected from 855 mobile
phone users. Results revealed that all the indicators had adequate
item reliability. All the model fit indices were above the
recommended criteria. Reliability was assessed using coefficient
alpha, composite reliability and average variance extracted and all
the values obtained were above the accepted range, thus
establishing the reliability of the constructs. Convergent and
discriminate validity was established for all the eight constructs.
Review No. 18
1 Name of the paper Building behavioral intentions in automotive industry: Brand
experience, satisfaction, trust, direct mail communication and
attitudes toward advertising
2 Name of the author AZİZE ŞAHİN , GÜLDEN TURHAN and CEMAL ZEHİR
3 Year of publication Oct 2013,
4 Journal Business Management Dynamics Vol. 3, No.4, Oct 2013, pp. 45-61
5 Objectives / Purpose The objective of this paper is to empirically examine the relationship
of the study among consumers’ brand experience, satisfaction, trust, direct mail
communication, attitudes toward advertising on behavioural
intentions that are set in the form of repurchase intention, price
premium and word-of-mouth.
6 Country USA
7 Industry Automobile
8 Variables studied Consumers, Relevant Demographics, Customer Satisfaction
9 Research Methodology Primary Data collected from individuals.
(Data collected) Rank Correlation and coefficient
10 Sample details Female (174) and Male (175). A sample ranges in age from 18 and 56
years with a mean age of 33. A
11 Scaling (if any) Likert Scale to assess satisfaction
12 Hypotheses studied (if Hypothesis 1: Satisfaction has positive effects on customers’
any) and Finding of the behavioural intentions (a) repurchase
study intention, (b) price premium and (c) positive word-of-mouth
referrals.
Hypothesis 2: Consumer trust has a positive effect on consumers’
behavioural intentions (a) repurchase
intention, (b) price premium and (c) positive word-of-mouth
referrals.
Hypothesis 3: Satisfaction is positively effective on consumer trust.
Hypothesis 4: Brand experience has a positive effect on consumers’
behavioural intentions (a) repurchase
intention, (b) price premium and (c) positive word-of-mouth
referrals.
Hypothesis 5: Brand experience is positively effective on satisfaction.
Hypothesis 6: Direct mail communication is positively effective on
satisfaction.
Hypothesis 7: Attitudes toward advertising is positively effective on
satisfaction.
In conclusion, this paper has suggested what is possible, practical,
and can be done by marketers in terms of
consumers’ attitudes toward advertising, direct mail communication,
brand experience, consumer trust
and behavioural intentions for a brand. Marketing managers can
interpret these results as helping to
justify expenditures on brand and consumer related marketing
activities that create such brand’s longterm
survival, performance, and bottom-line returns.
Findings: In conclusion, this paper has suggested what is possible,
practical, and can be done by marketers in terms of
consumers’ attitudes toward advertising, direct mail communication,
brand experience, consumer trust
and behavioural intentions for a brand. Marketing managers can
interpret these results as helping to
justify expenditures on brand and consumer related marketing
activities that create such brand’s longterm
survival, performance, and bottom-line returns.
Review No. 19
1 Name of the paper A STUDY ON CUSTOMER SATISFACTION ON FIAT CAR AT
CONCORDE MOTORS IN CHENNAI
2 Name of the author Padiri Usha, Dr. Kalyan Nallabala
3 Year of publication April, 2014
4 Journal Sai Om Journal of Commerce & Management
5 Objectives / Purpose 1. To study the factors that lead to customer satisfaction. 2. To
of the study study the satisfaction level of customer towards the FIAT car. 3. To
study the customers opinion on the quality and services of Product.
4. To give appropriate suggestion to increase the satisfaction level
of customer.
6 Country India
7 Industry Automobiles
8 Variables studied Customer satisfaction
9 Research Methodology Primary Data collected via survey method from the customers and
(Data collected) Secondary data
10 Sample details sample survey of 150 Respondents.
11 Scaling (if any) RATER different aspect of services by ConcordeMotors
12 Hypotheses studied Null hypothesis (H0): There is no significant difference between the
(if any) and Finding of opinions of the respondents regarding the services provided.
the study (H1): There is significant difference between the opinions of the
respondents regarding the services provided.
(H2): There is significant difference between the opinions of the
respondents regarding the test drive given at schedule time.
(H3): There is significant difference between the opinions of the
respondents regarding the vehicle delivered on the promised day
or not. Findings-
It is observed through the survey majority of the customers are
satisfied with the after sale service and dissatisfied with the
location of the dealers. Hence it is suggested that dealer points can
be made easily accessible to customers.
1. 59% of the customers are satisfied with after sales services.
2. 76% of the respondents are satisfied with the test drive.
3. The major problem is that the customers are not getting the
vehicle on the promised date.
4. Majority of the respondents (i.e., 61%) not satisfied with sales
approach of the executive in tamers of notable clarifying that
doubts and quaries.
5. Most of the customers have expressed dissatisfaction with the
location of dealership.
Review No. 20
1 Name of the paper Customer Satisfaction And Service Quality In Four Wheeler Automobile
Service Industry: A Review
2 Name of the author Mohd Javed, Dr.Parul Gupta , Dr.Vishal Saxena
3 Year of publication September 2015
4 Journal SSRG International Journal of Mechanical Engineering (SSRG-IJME)
5 Objectives / Purpose This paper deals with the review on customer satisfaction and its effect
of the study on automobile industries.
6 Country India
7 Industry Automotive
8 Variables studied Customer Satisfaction, Service Quality, Perceived Service
9 Research Methodology Service quality model
(Data collected)
10 Sample details 1. The study adopted judgmental sampling and found its samples
among consumers using a sedan as the principal travel tool.
2. The study adopted judgmental sampling and found its samples
among consumers using a sedan as the principal travel tool.
11 Scaling (if any) Five- point likert scale
12 Hypotheses studied (if Findings- customer satisfaction is the key parameter for success of any
any) and Finding of the industry. For being number one in the market the company regularly try
study to improve their quality of service according to the feedback obtained
from the customer about their product and its quality.

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