Final Project Marketing

A
PROJECT REPORT
ON
“A STUDY OF CUSTOMER SATISFACTION AND

CUSTOMER DELIGHT IN MERCEDES-BENZ”
A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF POST GRADUATE DIPLOMA
IN MANAGEMENT (PGDM)
FROM
INSTITUTE OF MANAGEMENT TECHNOLOGY,

CENTRE FOR DISTANCE LEARNING GHAZIABAD
UNDER THE GUIDANCE OF SUBMITTED BY

GURPREET SINGH ANWAR KHAN
ENROLLMENT No: 1811200037
MBA-MARKETING
i
Roll Number: __ ___________________ D a te: _____ ______ ___ _ ___
N ame: ___ ____ ____ ___ ____ ___ _____ Contac t No: _____________
Area of S pec i a li z a tion ( R el a ted to P r oj ec t ) __ __ _ ________ __ _ ___ ___ __ ___ __ _ ______
Title of Project Report ___________________________________________________
Subject code: IMT52/IMT-PRJ01/IMTPRJ02
PROJECT SUBMISSION FORM
Choice of Venue for Viva Voc e (Tick any one of the following Venue )
1. I MT CD L G ha zi a ba d C he c k L is t
1. Photocopy of Approved Synopsis

2. Photocopy of Identity C a rd Issued by I MT C D L
3. Acknowledgement letter and resume from Project Guide
Roll Number: __ ___________________ D a te: ___ __ ____ ___ ___ ___
N ame: ___ ____ ____ ___ ____ ___ _____ Contac t N o: __ ________ ____
Area of Specializa tion r el a ted to Project: _____________________________________
Received by:
IMT-CDL Head Office: A-16, Site –III UPSIDC Meerut Road Industrial Area, Ghaziabad 201001
12/26/2018 IMT-CDL
STUDENT IDENTITY CARD
Enrolment No: 1811200037
Name: ANWAR KHAN
Father Name: SAGIR AHMED
/> DOB: 8/28/1994
Course Code: PGDM
Session: JANUARY,2018
Valid Upto: 12/31/2019
Address: C-31 SECTOR 6 NOIDA UP Mail Pin

201301
IMT Centre for Distance Learning: A-16, Site-3, UPSIDC Industrial Area, Meerut Road, Ghaziabad - 201 003.
Phone: +91-120-3015465 | Website: www.imtcdl.ac.in | Toll Free: 1800 200 1063
http://sis.imtcdl.ac.in/cdl/icard.aspx 1/1
GUIDE CERTIFICATE
This is to certify that Mr. Anwar Khan a student of IMT-CDL Ghaziabad has
completed project work on “A STUDY OF CUSTOMER SATISFACTION AND
CUSTOMER DELIGHT IN MERCEDES-BENZ” Under my guidance and
supervision.
I certify that this is an original work and has not been copied from any
source.
Signature of Guide
Date:
http://sis.imtcdl.ac.in/sis/synopsis/StudentViewSynopsis.aspx 4/3
CURRICULUM VITAE
GURPREET SINGH
House No- 1920, Gali No- 19,
Govind Puri, New Delhi- 110019 Mob : +91-9818320926
E-mail :gurpreetsingh6793@gmail.com
SNAPSHOT
 Currently serving as a Senior Executive in Mercedes-Benz.
 Hands on Experience of 4 years in marketing.
ACEDEMIC CREDENTIALS:
MBA (72%) : IGNOU Correspondence, (2017)

BBA (57%) : DAV Centenary, Faridabad (2015)
12th (69%) : Vidya Niketan, New Delhi (2012)
10th (78%) : Arya Public School, New Delhi (2010)
TECHNICAL SKILLS:
OS : UNIX, Win-XP
Basic : MS-Office
WORK EXPERIENCE:
Senior Executive : Mercedes-Benz, Since Sep15
PERSONAL DETAILS:
Name : GURPREET SINGH
DOB : 29 Mar 1994
Nationality : Indian
Marital Status : Single
Place: New Delhi Gurpreet Singh

Date: Signature
iii
ACKNOWLEDGEMENT
Getting a project ready requires the work and effort of many people. I would
like all those persons who have contributed in completing this project.
I would like to thank the employee of Mercedes-Benz for constant guidance
to conduct the present arduous project and untiring cooperation which they
extended to me throughout the duration of my training.
I would like to take an opportunity to thank all the people who helped me in
collecting necessary information and making of the report. I am grateful to
all of them for their time, energy and wisdom.
ANWAR KHAN
iv
DECLARATION
I hereby declare that the projects entitled “A STUDY OF CUSTOMER
SATISFACTION AND CUSTOMER DELIGHT IN MERCEDES-BENZ” has
been prepared by me under the guidance of my project Guide Mr.
GURPREET SINGH.
I also declare that this project is the result of my effort and has not
been submitted to any other University or Institution for the award of any
degree, or personal favors whatsoever. All the details and analysis provided
in the report hold true to the best of my knowledge.
Place: New Delhi ANWAR KHAN
Date:
v
12/26/2018 sis.imtcdl.ac.in/sis/synopsis/StudentViewSynopsis.aspx
View Synopsis
Enrollment No: 1811200037

Name: ANWAR KHAN
Area of Specialisation: Marketing
Title of the Project: A STUDY OF CUSTOMER SATISFACTION AND CUSTOMER DELIGHT IN
MERCEDES-BENZ
Statement of the problem: Satisfaction is crucial concern for both customers and organizations. Satisfaction
is a subjective concept and therefore difficult to determine. It depends on many
factors and varies from person to person and product to product. The importance
of customer satisfaction in strategy development for customers and market
oriented cannot be under determined. Now a day it has become very important
factor for each and every organization to enhance the level of customer
satisfaction. The overall study reveals that It was found that the customer are
mostly satisfied with price , design, safety, mileage, interior space, status brand
name, comfort level, spares part and after sale service.
TOPIC- Evaluation & Comments

from Faculty
CORRECT
Objectives of the study: Mercedes-Benz is a global automobile marque and a division of the German
company Daimler AG. The brand is known for luxury vehicles, buses, coaches,
and lorries. The headquarters is in Stuttgart, Baden-Württemberg. The name first
appeared in 1926 under Daimler-Benz. Mercedes-Benz traces its origins to
Daimler-Motoren-Gesellschaft's 1901 Mercedes and Karl Benz's 1886 Benz
Patent-Motorwagen, which is widely regarded as the first gasoline-powered
automobile. The slogan for the brand is "the best or nothing".
OBJECTIVE- Evaluation & Comments

from Faculty
CORRECT
Methodology: Secondary Data
METHODOLOGY- Evaluation & Comments

from Faculty
Conduct survey to collect data

u have mentioned questionnaire hence it is primary
Explanation of the Method: A methodology does not set out to provide solutions - it is, therefore, not the
same thing as a method. Instead, it offers the theoretical underpinning for
understanding which method, set of methods or so called “best practices” can be
applied to specific case, for example, to calculate a specific result. It has been
defined also as follows: 1. "the analysis of the principles of methods, rules, and
postulates employed by a discipline" 2. "the systematic study of methods that
are, can be, or have been applied within a discipline" 3. "the study or description
of methods”
Company Name: MERCEDES-BENZ
Company Profile: Mercedes-Benz is a global automobile marque and a division of the German
company Daimler AG. The brand is known for luxury vehicles, buses, coaches,
and lorries. The headquarters is in Stuttgart, Baden-Württemberg. The name first
appeared in 1926 under Daimler-Benz. Mercedes-Benz traces its origins to
Daimler-Motoren-Gesellschaft's 1901 Mercedes and Karl Benz's 1886 Benz
Patent-Motorwagen, which is widely regarded as the first gasoline-powered
automobile. The slogan for the brand is "the best or nothing
Questionnaire (10 to 15 questions)
1. How you aware about Mercedes-Benz?

2. What is your Perception about Mercedes-Benz?
3. Factor prompt to buy Mercedes-Benz?
4. Decision influenced by to purchase Mercedes-Benz?
5. Which feature of Mercedes-Benz attracts you more?
6. Why do you use Mercedes-Benz ?
7. How many years have you been using Mercedes-Benz?
8. Do you think Mercedes-Benz products are more Quality & beneficial than others?
9. Purpose of Keeping the Four Wheelers?
10. On the basis of price and feature comparison, is Mercedes-Benz economical?
11. What is the selling scale System of Mercedes-Benz ?
12. Why do you prefer Mercedes-Benz?
13. Sale of Mercedes-Benz?
14. Do you think Mercedes-Benz and its products fulfills all your expectation?
15. What made you to buy this vehicle?
16.
Number of respondents: 65
Area of study: New Delhi
Method you will use to classify data: Primary data is basically the live data which I collected on field while doing cold
calls with the customers and I shown them list of question for which I had
required their responses. Secondary data for the base of the project I collected
from from internet, magazines, newspapers etc.
Method you will use to present data: ? Bar chart (Bar charts will be used for comparing two or more values that will be
taken over time or on different conditions, usually on small data set ) ? Pie-chart
(Circular chart divided in to sectors, illustrating relative magnitudes or
frequencies) Tools and Techniques As no study could be successfully completed
without proper tools and techniques, sames with my project. For the better
presentation and right explanation I used tools of statistics and computer very
frequently. And I am very thankful to all those tools for helping me a lot. Basic
tools which I used for project from statistics are-
QUESTIONNAIRE- Evaluation & Comments

from Faculty
CORRECT
References: Ms- Excel Ms-Access Ms-Word

Chapterization Scheme:
1. Introduction
2. Research methodology
3. Theoretical aspects
4. Data analysis & interpretation
5. Conclusion & Suggestion
6. Limitation
7. Questionnaire
CHAPTERIZATION- Evaluation & Comments

from Faculty
CORRECT
Profile of Project Guide

Name: Gurpreet Singh
Age: 24
Educational Qualification: MBA
Years of Experience: 4
Current organisation: MERCEDES-BENZ
Current designation: Senior Executive
Brief profile:
Address:
House No:. 1920
Street: 19, govind puri
City: New Delhi
State: New Delhi
Phone Number (Residence): 9818320926
Phone Number (Office): 9818320926
Mobile: 9717095968
Email: gurpreetsingh6793@gmail.com
PROJECT GUIDE- Evaluation & Comments

from Faculty
CORRECT
FINALCOMMENTSFROM FACULTY
Approved with Modification
FACULTY DETAILS
Faculty Name: Ganesh Dash
Email: ganeshdash@imtcdl.ac.in
CLOSE
CONTENTS
NUMBER TOPIC PAGE NO.

TITLE OF THE PROJECT
CHAPTER 1 INTODUCTION
1.1 Introduction to the topic 01-06
1.2 Objective & Scope of the Study 07
1.3 Company Profile 08-31
1.4 Industry Overview 32-36
CHAPTER 2 RESEARCH METHODOLOGY

2.1 Data Collection 37
2.2 Sampling Techniques & Tools for Analysis 38-41
CHAPTER 3 LITERATURE REVIEW

3.1 Theoretical aspects of Consumer buying 42-46
3.2 Literature Review 47-56
CHAPTER 4 DATA ANALYSIS/INTERPETATION & FINDINGS
4.1 Data Analysis & Interpretations 57-72
4.2 Findings 73-74
CHAPTER 5 Conclusions & Recommendations 75-77
CHAPTER 6 Limitations of the Study 78
CHAPTER 7 Bibliography 79
CHAPTER 8 Appendices 80-82
TITLE OF THE PROJECT
“A STUDY OF CUSTOMER SATISFACTION AND
CUSTOMER DELIGHT IN MERCEDES-BENZ”
CHAPTER-1
INTRODUCTION
INTRODUCTION OF THE PROJECT

Satisfaction is crucial concern for both customers and organizations. Satisfaction is a subjective
concept and therefore difficult to determine. It depends on many factors and varies from person
to person and product to product. The importance of customer satisfaction in strategy
development for customers and market oriented cannot be under determined. Now a day it has
become very important factor for each and every organization to enhance the level of customer
satisfaction. The overall study reveals that It was found that the customer are mostly satisfied
with price , design, safety, mileage, interior space, status brand name, comfort level, spares part
and after sale service. Customer satisfaction is a measure of post purchase behaviour of the
customers. If customer expectations meet with the perceived value of goods and service then
customer is satisfied but if the perceived value of goods and service is less than the customer
expectations than customer is dissatisfied and if the perceived value exceeded the expected
value of the goods and service than the customer is delighted. In addition, customers generally
want the best possible product or service for a low cost. The perception of the best product or
service at lowest price with safety effect the industry and customer segment significantly.
Mercedes-Benz is a global automobile marque and a division of the German company Daimler
AG. The brand is known for luxury vehicles, buses, coaches, and lorries. The headquarters is
in Stuttgart, Baden-Württemberg. The name first appeared in 1926 under Daimler-Benz.
Mercedes-Benz traces its origins to Daimler-Motoren-Gesellschaft's 1901 Mercedes and Karl
Benz's 1886 Benz Patent-Motorwagen, which is widely regarded as the first gasoline- powered
automobile. The slogan for the brand is "the best or nothing".
Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol-powered car, the
Benz Patent Motorwagen, financed by Bertha Benz and patented in January 1886, and Gottlieb
Daimler and engineer Wilhelm Maybach's conversion of a stagecoach by the addition of a
petrol engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler-
Motoren-Gesellschaft (Daimler Motors Corporation).
1
The marketing mix of Mercedes Benz shows what a fantastic company Mercedes is, and how,
as per Business Week Magazine, it is the top most recognized global automobile brands. This
high profile success is not an accident but hard work, patience and excellent application of
effective marketing strategy all rolled into one.
Mercedes benz is considered as the world’s oldest manufacturer of luxury carmaker and the
reputation is unlikely to go away in the near future. This marketing mix looks at the company’s
marketing and advertising strategies it has implemented over the years to establish itself as a
leader in the fiercely competitive automobile industry.
Product in the marketing mix of Mercedes Benz
The name Mercedes Benz needs no introduction even to a toddler, but many people don’t know
the inner story of this automobile giant and its line of products. As a matter of fact, Mercedes
Benz has always been associated with the world class brand of cars, buses, coaches and tracks
known for their luxurious nature. Mercedes Benz is not a company in itself; Gottlieb Daimler
and Wilhelm May Bach call its parent company Daimler AG, which was founded, in 1890.
Earlier on, Karl Benz had founded his company in 1871, which later came to join Daimler AG.
Mercedes Benz’s headquarters is located at Baden-Wurttemberg and Stuttgart, Germany.
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As already mentioned, the company currently produces a wide range of advanced luxury trucks,
coaches, cars and buses in its manufacturing facilities based throughout the world. The
company has its origin in one of the founding fathers, Karl Benz’s creation of the first
automobile that was launched in 1886. The car was first marketed in 1901. Since then, the
company has introduced a number of innovations that have helped in establishing the company.
Product is the strongest P in the marketing mix of Mercedes Benz. Mercedes remain as one of
the leading brands in the Indian market, that too for more than 50 years. The company currently
assembles its models — S-Class, E-Class, C-Class and the ML-Class while other models,
including GL-Class, CLS-Class and SLK-Class are fully imported.
Promotion in the marketing mix of Mercedes Benz
Although Mercedes Benz marketing strategy used to focus on the luxury, safety and precision
engineering of its cars, competition has propelled it to adjust its product to suit the changing
consumer attitudes. Now, their marketing strategy focuses more on presenting a more
energetic, fun loving and approachable side of Mercedes Benz.
Related Service Marketing Mix of Easy Jet
The evolution of its marketing strategy can also be a connected to its expanded market.
Mercedes Benz has, over the years, found it necessary to expand the market to include younger
consumers. Another marketing strategy employed by Mercedes Benz is its decision to slice
prices and make the product more affordable to consumers.
In order to increase communication with its target market, Mercedes Benz has maintained
accessibility to consumers through the following
 Online advertising
 Social media
 Establishing excellent customer service at its point of sales
 Offer warranty under excellent conditions
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 Television advertising
 Print media
One thing that Mercedes managed to do is to build a reputation of quality and exclusivity in all
its products, making it one of the most recognizable brands in the globe. Thus, it enjoys a
reputation of class and prestige.
Place in the marketing mix of Mercedes Benz
Mercedes Benz introduced many technological and safety innovations over the years.
However, the introduced innovations went on to be replicated by other brands. The company
distributes its product through a broad network of dealers throughout the world. Mercedes Benz
understands that consumers are not just interested in a buying a car that moves them from point
X to point Y.
They are actually making a car that will enable them easily sell the idea about the car in the
market. The company intends to change the perception of the brand and reposition it so that it
is more appealing to younger generation. They are also sending out the message that they are
more approachable than ever before.
Pricing in the marketing mix of Mercedes Benz
Mercedes-Benz manufactures different types of convertibles, full sixed sedans, coupes and
sports sedans. It has as many as 14 car models currently ranging from INR 21,49,000 to
7,68,00,000. Mercedes is leaving no stone unturned to tap Indian market in premium segments.
As a matter of fact, the company deals in a niche segment where the customer is more
concerned with the value they are getting on the product more than anything else is.
Therefore, the company has tried to ensure it makes high quality cars first and foremost. The
company has a broad price structure outside India, ranging from $30,000 to up to $100,000,
depending on the model.
S.W.O.T ANALYSIS OF THE ORGANIZATION STRENGTHS
4
Mercedes Benz
Parent Company Daimler
Category Sedans, SUV’s
Sector Automobiles
Tagline/ Slogan The best or nothing
USP Global top-of-the-mind premium automobile brand
STP
Segment Luxury automobile segment including sedans & SUV’s
Target Group Business professional form the higher income group
Positioning Mercedes Benz is the best premium car in the world
Product Portfolio
1. Mercedes Benz C Class 2. Mercedes Benz E Class
3. Mercedes Benz GL Class 4. Mercedes Benz M Class
5. Mercedes Benz S Class 6. Mercedes Benz SL Class
Brands 7. Mercedes Benz SLK Class
SWOT Analysis
1. Mercedes Benz has a strong brand value and global leader in

premium cars
2. Lack of capital constraints
3. Leader in innovation i.e. 1st to introduce diesel engines, fuel
injection and anti locking brakes
4. More than $12bn allocated for R&D
5. Strong presence in motor sport under McLaren Mercedes
Strength 6. Manufactured and assembled in over 20 countries across the
5
world
7. Mercedes holds patents on the majority of safety features
Weakness 1. High maintenance cost of Mercedes Benz cars
1. Developing hybrid cars and fuel efficient cars for the future
2. Tapping emerging markets across the world and building a
global brand
Opportunity 3. Fast growing luxury automobile market & increased income
1. Government policies for the automobile sector across the

world
2. Ever increasing fuel prices
Threats 3. Intense competition from global automobile brands
Competition
1. BMW
2.Porsche
3.Audi
4.Volkswagen
5.Jaguar
6.Ferrari
7.Aston Martin
Competitors 8. Volvo
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OBJECTIVE OF THE STUDY
The objective of the study is to:
1. To find the satisfaction level of the customer regarding the service provided.
2. To find out any drawbacks in the service delivery.
3. Study the consumer behaviors, and perception about the Mercedes-Benz.
4. Study about the need of improvement in existing Marketing System.
5. Study about the difficulties faced by Executives while marketing in the field.
6. To study the brands of Mercedes-Benz & consumers perception with its

competitors.
7. To find out the level of satisfaction of the buyers on different attributes.
8. To identify strength weakness, opportunity and threats for Mercedes-Benz.
9. To study the features of different brands that give a good idea of various schemes
offered by the company.
NEED FOR THE STUDY
These days it is very clear that market is having drastic changes and all the companies are acting
according to it because to survive in the market and this should be achieved by studying about
the customer options and analyzing their future requirements.
This study is definitely going to help to analyze the customer and can take necessary steps for
the improvement of the services by the company.
Because customers are the real advertisement for any product so the company should be in
position to meet the customer requirements and also should maintain the Customer
Relationship.
7
Mercedes-Benz is not only concerned with selling of their products they also concerned with
providing service to the customers after selling. So there is necessity for the company to find
out the satisfaction level of the customers, at different levels in the company. Which help the
organization to find out the ways in improving the services being provided to the customers,
To increase the satisfaction level in them.
COMPANY PROFILE
Mercedes-Benz is a German automobile manufacturer, a multinational division of the German

manufacturer Daimler AG. The brand is used for luxury automobiles, buses, coaches, and
trucks. The headquarters of Mercedes-Benz is in Stuttgart, Baden-Württemberg, Germany.
The name first appeared in 1926 under Daimler-Benz, but traces its origins to Daimler-
Motoren-Gesellschaft's 1901 Mercedes and to Karl Benz's 1886 Benz Patent-Motorwagen,
which is widely regarded as the first gasoline powered automobile. Mercedes-Benz's slogan is
"Das Beste oder nichts" (English: "The best or nothing"). Mercedes-Benz is one of the most
recognized and best-selling automotive brands worldwide.
History
Karl Benz. Benz made the 1886 Benz Patent Motorwagen, which is widely regarded as the first
automobile.
8
Gottlieb Daimler, Founder of Daimler-Motoren-Gesellschaft.
Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol-powered car, the
Benz Patent Motorwagen, financed by Bertha Benz and patented in January 1886, and Gottlieb
Daimler and engineer Wilhelm Maybach's conversion of a stagecoach by the addition of a
petrol engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler-
Motoren-Gesellschaft. The first Mercedes-Benz brand name vehicles were produced in 1926,
following the merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz
company. Throughout the 1930s, Mercedes-Benz produced the 770 model, a car that was
popular during Germany's Nazi period. Adolf Hitler was known to have driven these cars
during his time in power, with bulletproof windshields. Most of the surviving models have been
sold at auctions to private buyers. One of them is currently on display at the War Museum in
Ottawa, Ontario. Mercedes-Benz has introduced many technological and safety innovations
that later became common in other vehicles. Mercedes-Benz is one of the best-known and
established automotive brands in the world, and is also one of the world's oldest automotive
brand still in existence today in 2015, having produced the first petrol- powered car.
For information relating to the famous three-pointed star, see under the title Daimler-
Motoren-Gesellschaft including the merger into Daimler-Benz.
Subsidiaries and alliances
As part of the Daimler AG company, the Mercedes-Benz Cars division includes Mercedes-
Benz and Smart car production.
9
Mercedes-AMG
Mercedes-AMG became a majority owned division of Mercedes-Benz in 1999. The company

was integrated into DaimlerChrysler in 1999,[9] and became Mercedes-Benz AMG beginning
on 1 January 1999.
McLaren Group
Mercedes-AMG was the official engine supplier for the second oldest and most successful F1
team by Grand Prix wins, McLaren Racing from 1995-2014. In 2013 it was announced that
after the last year with Mercedes contract with McLaren, Mercedes would be dropped and be
replaced by Honda, with whom McLaren had world championship wins in the past together.
Mercedes have since gone on to buy their own Formula 1 team, buying the former Honda
Racing F1 team, Brawn GP, and turning it into Mercedes F1 in 2010. Despite a slow start, in
2012 the team began to show progress and rise to the front of the Grid with their first win
coming from driver Nico Rosberg at the 2012 Chinese Grand Prix, before showing further
progress again in 2013, when the team signed Lewis Hamilton from McLaren to replace the
retiring Michael Schumacher. Hamilton's first win for the team came at the 2013 Hungarian
Grand Prix.
In 2014 the team won the Formula One World Constructors Title, with Driver Lewis Hamilton
going on to win the Drivers Title. In 2015 the team won their second successive World
Contructors Title.
Road car manufacturing
From 2003 to 2009, Mercedes were in a joint venture with McLaren Group to manufacture the
Mercedes-Benz SLR McLaren. At this time, Mercedes owned 40% of McLaren Group. Due to
Mercedes purchasing Brawn GP, a F1 team, Mercedes decided to sell their shares back to Ron
Dennis, as McLaren would be their rival in the F1 championship.
Maybach
Daimler's ultra-luxury brand Maybach was under Mercedes-Benz cars division until 2013,
when the production stopped due to poor sales volumes. It now exists under the Mercedes-
10
Maybach name, with the models being ultra-luxury versions of Mercedes cars, such as the
2016 Mercedes-Maybach S600.
Production
Factories
Beside its native Germany, Mercedes-Benz vehicles are also manufactured or assembled in:
Sovereign
Continent Note
state
Manufactures Busses and Trucks in cooperation with SNVI
Algeria Africa
(Actros , Zetros, Unimog, and G-Class, Sprinter).
South Manufactures buses, trucks and the Sprinter van. This is the first
Argentina
America Mercedes-Benz factory outside of Germany. Built in 1951.
Austria Europe G-Class
Bosnia and
Europe
Herzegovina
Manufactures trucks and buses. Established in 1956. The A-Class
South
Brazil (W168) was produced from 1999 to 2005 and the C-Class was
America
produced until 2010 as well.
North
Canada
America
South
Colombia Assembly of buses, Established in Soacha 2012 and Funza 2015
America
China Asia
Via Egyptian German Automotive Company E-Class, C-Class and
Egypt Africa
GLK
New A-series (W176) is manufactured in Uusikaupunki since late
Finland Europe
2013, being the first M-B passenger car ever built in that country
Hungary Europe
Jordan Asia Buses company factory, Elba House, Amman.
India Asia Bangalore (R&D). Pune (Passenger cars).[15] Chennai (Daimler
11
Sovereign
Continent Note
state
India Commercial Vehicles Pvt. Ltd.) - Trucks & Engine
Manufacturing unit.
Asia /
Indonesia
Australia
Iran Asia Not since 2010
Malaysia Asia Assembly of C, E and S class vehicles by DRB-HICOM.
Mercedes-Benz Mexico fully manufactures some Mercedes and
Daimler vehicles completely from locally built parts (C-Class, E-
Class, M-Class, International trucks, Axor, Atego, and Mercedes
North Buses), manufactures other models in complete knock down kits
Mexico
America (CL-Class, CLK-Class, SL-Class, SLK-Class) and manufactures a
select number of models in semi knockdown kits which use both
imported components and locally sourced Mexican components
(S-Class, CLS-Class, R-Class, GL-Class, Sprinter).
Nigeria Africa Assembly of buses, trucks, utility motors and the Sprinter van
Philippines Asia
Joint venture Mercedes-Benz Car Trucks Vostok in Naberezhnye
Chelny (jointly Kamaz). Available in trucks Actros, Axor, multi-
Russia Eurasia
purpose auto four wheel drive medium trucks Unimog. Mercedes-
Benz Sprinter Classic is also produced in Russia.
Serbia Europe FAP produces Mercedes-Benz trucks under license.
Factory at Vitoria-Gasteiz Mercedes-Benz Vito, Viano and V-
Spain Europe
Class have been built there.
South
Africa
Africa[19]
Mercedes-Benz Musso and MB100 models manufactured by
South Korea Asia
SsangYong Motor Company.
Thailand Asia Assembly of C, E and S class vehicles by the Thonburi Group
Turkey Eurasia Mercedes-Benz Türk A.Ş.
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Sovereign
Continent Note
state
The SLR sports car was built at the McLaren Technology Centre in
United Woking. Brackley, Northamptonshire, is home to the Mercedes
Europe
Kingdom Grand Prix factory, and Brixworth, Northamptonshire is the
location of Mercedes-Benz HighPerformanceEngines
The Mercedes-Benz GLE-Class Sport Utility and the full-sized GL-
Class Luxury Sport Utility Vehicle are all built at the Mercedes-
North
United States Benz U.S. International production facility near Tuscaloosa,
America
Alabama.[22] Trucks (6,000 per year in the late
seventies) were once assembled in Hampton, VA.
Assembly of E-Class, C-Class, S-Class, GLK-Class and Sprinter.
Vietnam Asia
Established in 1995.
Quality rankings
Since its inception, Mercedes-Benz had maintained a reputation for its quality and durability.
Objective measures looking at passenger vehicles, such as J. D. Power surveys, demonstrated
a downturn in reputation in these criteria in the late 1990s and early 2000s. By mid-2005,
Mercedes temporarily returned to the industry average for initial quality, a measure of problems
after the first 90 days of ownership, according to J. D. Power. In J. D. Power's Initial Quality
Study for the first quarter of 2007, Mercedes showed dramatic improvement by climbing from
25th to 5th place and earning several awards for its models. For 2008, Mercedes-Benz's initial
quality rating improved by yet another mark, to fourth place. On top of this accolade, it also
received the Platinum Plant Quality Award for its Mercedes’ Sindelfingen, Germany assembly
plant. J. D. Power's 2011 US Initial Quality and Vehicle Dependability Studies both ranked
Mercedes-Benz vehicles above average in build quality and reliability. In the 2011 UK J. D.
Power Survey, Mercedes cars were rated above average. A 2014 iSeeCars.com study for
Reuters found Mercedes to have the lowest vehicle recall rate.
13
Models
Mercedes-Benz A-Class (compact)
Mercedes B-Class (Tourer)

Mercedes-Benz C-Class (D-segment)
Mercedes-Benz E-Class (Executive car)
Mercedes-Benz S-Class (luxury sedan)
Mercedes-Benz SL-Class (Grand Tourer)
Mercedes-Benz SLS AMG (supercar)
Mercedes-Benz M-Class (luxury SUV)
Current model range
Mercedes-Benz offers a full range of passenger, light commercial and heavy commercial
equipment. Vehicles are manufactured in multiple countries worldwide. The Smart marque of
city cars are also produced by Daimler AG.
 A-Class – Hatchback
 B-Class – Multi Purpose Vehicle (MPV)
 C-Class – Saloon, Estate & Coupé
 CLA-Class – 4 Door Coupé
 CLS-Class – 4 Door Coupé and Estate
 E-Class – Saloon, Estate, Coupé and Cabriolet
 G-Class – Sports Utility Vehicle (SUV)
 GLA-Class – Compact Sports Utility Vehicle (SUV)/ Crossover
 GLC-Class – Sports Utility Vehicle (SUV)
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 GLE-Class – Sports Utility Vehicle (SUV)
 GLS-Class – Large Sports Utility Vehicle (SUV)
 S-Class – Luxury Saloon
 SL-Class – Grand Tourer
 SLC-Class – Roadster
 V-Class – Multi Purpose Vehicle (MPV)/ Van
 AMG GT – Sports car/ Supercar
Vans
Mercedes-Benz Sprinter
Mercedes-Benz produces a range of vans; Citan (a rebadged version of the Renault Kangoo),
Vito and Sprinter.
Trucks
See also: List of Mercedes-Benz trucks
Mercedes-Benz Zetros used for snowplowing
Unimog, a famous allround vehicle by Mercedes-Benz
Mercedes-Benz Trucks is now part of the Daimler Trucks division, and includes companies
that were part of the DaimlerChrysler merger. Gottlieb Daimler sold the world's first truck in
1886.[32] The first factory to be built outside Germany after WWII was in Argentina. It
15
originally built trucks, many of which were modified independently to buses, popularly
named Colectivo. Today, it builds buses, trucks and the Sprinter van.
Buses
Main article: Mercedes-Benz buses
Mercedes-Benz produces a wide range of buses and coaches, mainly for Europe and Asia.
The first model was produced by Karl Benz in 1895.
Significant models produced
 1928: SSK racing car

 1930: 770 "Großer Mercedes" state and ceremonial car
 1934: 500 K
 1936: 260 D World's first diesel production car
 1936: 170
 1938: W195 Speed Record-breaker
 1939: 320A A military vehicle
 1951: 300, known as the "Adenauer Mercedes"
 1953: "Ponton" models
 1954: 300SL "Gullwing"
 1956: 190SL
 1959: "Fintail" models
 1960: 220SE Cabriolet
 1963: 600 "Grand Mercedes"
 1963: 230SL "Pagoda"
 1965: S-Class
 1966: 300SEL 6.3
 1968: W114 "new generation" compact cars
 1969: C111 experimental vehicle
 1972: W107 350SL
 1974: 450SEL 6.9
 1977: W123- Mercedes' first station wagon
 1978: 300SD - Mercedes' first turbo diesel
 1979: 500SEL and G-Class
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 1983: 190E 2.3–16
 1989: 300SL, 500SL
 1990: 500E
 1991: 600SEL
 1993: C-Class
 1995: C43 AMG
 1995: SL73 AMG, 7.3 V12
 1996: SLK
 1997: A-Class and M-Class
 2004: SLR McLaren and CLS-Class
 2007: BlueTec E320, GL320 Bluetec, ML320 Bluetec, R320 Bluetec
 2010: SLS AMG
 2013: CLA-Class
The Mercedes-Benz 600 or 600S Pullman Guard limousines offer the option of armour- plating
and have been used by diplomats worldwide.
Car nomenclature
Until 1994, Mercedes-Benz used an alphanumeric system for categorising their vehicles,
consisting of a number sequence approximately equal to the engine's displacement in liters
multiplied by 100, followed by an arrangement of alphabetical suffixes indicating body style
and engine type.
 "C" indicates a coupe or cabriolet body style (for example, the CL and CLK models,
although the C-Class is an exception, as it is also offered as a sedan).
 "D" indicates the vehicle is equipped with a diesel engine.
 "E" (for "Einspritzung") indicates the vehicle's engine is equipped with petrol fuel
injection. In most cases (the 600 limousine and Mercedes E-Class being the exceptions),
if neither "E" or "D" is present, the vehicle has a petrol engine with a carburettor.
 "G" was originally used for the Geländewagen off-road vehicle, but is now applied to
Mercedes SUVs in general (for example, the GLA and GLK).
 "K" was used in the 1930s, indicating a supercharger ("Kompressor") equipped
engine. One exception is the SSK, where K indicates "Kurz" (short-wheelbase).
17
 "L" indicates "Leicht" (lightweight) for sporting models, and "Lang" (long-
wheelbase) for sedan models.
 "R" indicates "Rennen" (racing), used for racing cars (for example, the 300SLR).
 "S" Sonderklasse "Special class" for flagship models, including the S-Class, and the
SL-Class, SLR McLaren and SLS sportscars.
 "T" indicates "Touring" and an estate (or station wagon) body style.
Some models in the 1950s also had lower-case letters (b, c, and d) to indicate specific trim
levels. For other models, the numeric part of the designation does not match the engine
displacement. This was done to show the model's position in the model range independent of
displacement or in the price matrix. For these vehicles, the actual displacement in liters is
suffixed to the model designation. An exception was the 190-class with the numeric designation
of "190" as to denote its entry level in the model along with the displacement label on the right
side of the boot (190E 2.3 for 2.3-litre 4-cylinder petrol motor, 190D 2.5 for 2.5-litre 5-cylinder
diesel motor, and so forth). Some older models (such as the SS and SSK) did not have a number
as part of the designation at all.
For the 1994 model year, Mercedes-Benz revised the naming system. Models were divided into
"classes" denoted by an arrangement of up to three letters (see "Current model range" above),
followed by a three-digit (or two-digit for AMG models, with the number approximately equal
to the displacement in litres multiplied by 10) number related to the engine displacement as
before. Variants of the same model such as an estate version or a vehicle with a diesel engine
are no longer given a separate letter. The SLR, SLS and GT supercars do not carry a numerical
designation.
Today, many numerical designations no longer reflect the engine's actual displacement but
more of the relative performance and marketing position. Despite its engine displacement in
two litres, the powerplant in the A45 AMG produces 355 brake horsepower so the designation
is higher as to indicate the greater performance. Another example is the E250 CGI having
greater performance than the E200 CGI due to the different engine tuning even though both
have 1.8-litre engines. From the marketing perspective, E200 seems more "upscale" than E180.
Recent AMG models use the "63" designation (in honor of the 1960s 6.3-litre M100 engine)
despite being equipped with either a 6.2-litre (M156) or 5.5-litre (M157) engine.
18
Some models carry further designations indicating special features:
 "4MATIC" indicates the vehicle is equipped with all-wheel-drive.

 "BlueTEC" indicates a diesel engine with selective catalytic reduction exhaust
aftertreatment.
 "BlueEFFICIENCY" indicates special fuel economy features (direct injection, start-
stop system, aerodynamic modifications, etc.)
 "CGI" (Charged Gasoline Injection) indicates direct gasoline injection.
 "CDI" (Common-rail Direct Injection) indicates a common-rail diesel engine.
 "Hybrid" indicates a petrol- or diesel-electric hybrid.
 "NGT" indicates a natural gas-fueled engine.
 "Kompressor" indicates a supercharged engine.
 "Turbo" indicates a turbocharged engine, only used on A-, B-,E- and GLK-Class
models.
 "AMG Line" indicates the interior or engine, depending which car, has been fitted
with the luxuries of their AMG sports cars
Model designation badges can be deleted at the request of the customer.
2015 and beyond
Rationalisation of the model nomenclature was announced in November 2014 for future
models.[34][35] The changes consolidate many confusing nomenclature and their placements in
the model range such as CL-Class is now called the S-Class Coupé. The naming structure is
divided into four categories: core, off-road vehicle/SUV, 4-door coupé, and roadster. G- Class,
V-Class, and Mercedes-AMG GT are unaffected by the change.
Core Off-Road Vehicles/SUV 4-Door Coupé Roadster

A-Class GLA CLA
B-Class GLB (2019)
GLC SLC
C-Class
(formerly GLK) (formerly SLK)
E-Class GLE CLS
19
(formerly ML)
GLS
S-Class SL
(formerly GL)
Note: The CLA is positioned between the A- and B-Class models, while the CLS sits
between the E- and S-Classes.
In addition to the revised nomenclature, Mercedes-Benz has new nomenclature for the drive
systems.
Current New Example

Natural Gas Drive c for "compressed natural gas" B 200 c
BlueTec E 350 d
d for "diesel"
CDI GLA 200 d
PLUG-IN HYBRID** S 500 e
e for "electric"
Electric Drive B 250 e
Fuel Cell f for "fuel cell" B 200 f
HYBRID S 400 h
h for "hybrid"
BlueTEC HYBRID E 300 h
4MATIC 4MATIC E 400 4MATIC
The revised A45 AMG for 2016 model year on has shifted the model designation to the right
side while AMG is on the left side. This trend commenced with Mercedes-Maybach with
MAYBACH on the left and S500/S600 on the right.
Environmental record
Mercedes-Benz has developed multi concept cars with alternative propulsion, such as hybrid-
electric, fully electric, and fuel-cell powertrains. At the 2007 Frankfurt motor show, Mercedes-
Benz showed seven hybrid models, including the F700 concept car, powered by a hybrid-
electric drivetrain featuring the DiesOtto engine. In 2009, Mercedes-Benz displayed
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three BlueZERO concepts at the North American International Auto Show. Each car features
a different powertrain - battery-electric, fuel-cell electric, and gasoline-electric hybrid. In the
same year, Mercedes also showed the Vision S500 PHEV concept with a 19 miles (31 km) all-
electric range and CO2 emissions of 74 grams/km in the New European Driving Cycle.
Since 2002, Mercedes-Benz has developed the F-Cell fuel cell vehicle. The current version,
based on the B-Class, has a 250-mile range and is available for lease, with volume production
scheduled to begin in 2014. Mercedes has also announced the SLS AMG E-Cell, a fully electric
version of the SLS sports car, with deliveries expected in 2013. The Mercedes-Benz S400
BlueHYBRID was launched in 2009, and is the first production automotive hybrid in the world
to use a lithium-ion battery. In mid-2010, production commenced on the Vito E- Cell all-
electric van. Mercedes expects 100 vehicles to be produced by the end of 2010 and a further
2000 by the end of 2011.
In 2008, Mercedes-Benz announced that it would have a demonstration fleet of small electric
cars in two to three years. Mercedes-Benz and Smart are preparing for the widespread uptake
of electric vehicles (EVs) in the UK by beginning the installation of recharging points across
their dealer networks. So far 20 Elektrobay recharging units, produced in the UK by Brighton-
based Elektromotive, have been installed at seven locations as part of a pilot project, and further
expansion of the initiative is planned later in 2010.
In the United States, Mercedes-Benz was assessed a record US$30.66 million fine for their
decision to not meet the federal corporate average fuel economy standard in 2009.[51] Certain
Mercedes-Benz cars, including the S550 and all AMG models sold in the United States, also
face an additional gas guzzler tax.[52] However, newer AMG models fitted with the M157
engine will not be subject to the gas-guzzler tax, due to improved fuel economy, and newer
models powered by the M276 and M278 engines will have better fuel economy. In 2008,
Mercedes also had the worst CO2 average of all major European manufacturers, ranking 14th
out of 14 manufacturers. Mercedes was also the worst manufacturer in 2007 and 2006 in terms
of average CO2 levels, with 181 g and 188 g of CO2 emitted per km, respectively.
21
Bicycles
Mercedes-Benz Accessories GmbH introduced three new bicycles in 2005, and the range has
developed to include the patent pending Foldingbike in 2007. Other models include the
Mercedes-Benz Carbon Bike, Trekking Bike, Fitness Bike and the Trailblazer Bike.
Motorsport
Main article: Mercedes-Benz in motorsport
A DMG Mercedes Simplex 1906 in the Deutsches Museum
The two companies which were merged to form the Mercedes-Benz brand in 1926 had both
already enjoyed success in the new sport of motor racing throughout their separate histories. A
single Benz competed in the world's first motor race, the 1894 Paris–Rouen, where Émile Roger
finished 14th in 10 hours 1 minute. Throughout its long history, the company has been involved
in a range of motorsport activities, including sports car racing and rallying. On several
occasions Mercedes-Benz has withdrawn completely from motorsport for a significant period,
notably in the late 1930s, and after the 1955 Le Mans disaster, where a Mercedes-Benz 300
SLR rammed another car (An Austin-Healey), took off into the stands, and killed more than 80
spectators. Stirling Moss and co-driver Denis Jenkinson made history by winning the 1955
Mille Miglia road race in Italy during a record-breaking drive with an average speed of almost
98 mph in a Mercedes-Benz 300 SLR.
Although there was some activity in the intervening years, it was not until 1987 that Mercedes-
Benz returned to front line competition, returning to Le Mans, Deutsche Tourenwagen
Meisterschaft (DTM), and Formula One with Sauber. The 1990s saw Mercedes-Benz purchase
British engine builder Ilmor (now Mercedes-Benz High Performance Engines), and campaign
IndyCars under the USAC/CART rules, eventually winning the 1994 Indianapolis 500 and
1994 CART IndyCar World Series Championship
22
with Al Unser, Jr. at the wheel. The 1990s also saw the return of Mercedes-Benz to GT racing,
and the Mercedes-Benz CLK GTR, both of which took the company to new heights by
dominating the FIA's GT1 class.
Mercedes-Benz is currently active in three forms of motorsport, Formula Three, DTM and
Formula One.
Formula One
The Mercedes-Benz Formula One team at the 2013 Malaysian Grand Prix.
Mercedes-Benz took part in the world championship in 1954 and 1955, but despite being
successful with two championship titles for Juan-Manuel Fangio, the company left the sport
after just two seasons. Fangio is considered by many to be the best F1 driver in history.
Mercedes-Benz returned as an engine supplier in the 1990s and part-owned Team McLaren for
some years, to which it has supplied engines engineered by Ilmorsince 1995. This partnership
brought success, including drivers championships for Mika Häkkinen in 1998 and 1999, and
for Lewis Hamilton in 2008, as well as a constructors championship in 1998. The collaboration
with McLaren had been extended into the production of roadgoing cars such as the Mercedes-
Benz SLR McLaren.
In 2007, McLaren-Mercedes was fined a record US$100 million for stealing confidential
Ferrari technical data.
In 2009, Ross Brawn's newly conceived Formula One team, Brawn GP used Mercedes engines
to help win the constructor's championship, and Jenson Button to become champion in the F1
drivers' championship. At the end of the season, Mercedes-Benz sold its 40% stake
23
in McLaren to the McLaren Group and bought 70% of the Brawn GP team jointly with an Abu
Dhabi-based investment consortium. Brawn GP was renamed Mercedes GP for the 2010 season
and is, from this season on, a works team for Mercedes-Benz. As of 2015, the company
currently provides engines to the Williams F1 Team, Sahara Force India F1 Team and the Lotus
F1 Team.
In 2014, Mercedes clinched its first F1 Constructor's title with drivers Lewis Hamilton and
Nico Rosberg with 3 races to go, after dominating much of the season.
Logo history
1902-1909
1909-1916
1916-1926
24

1926-current
1980-current
1990-current
Noted employees
 Paul Bracq – major designer of automobiles in the 20th century

 Béla Barényi – car safety pioneer (rigid passenger safety shell), joined Daimler-Benz
in 1937
 Wilhelm Maybach – automotive pioneer, first met Gottlieb Daimler in 1865
 Ferdinand Porsche – founder of Porsche, joined Mercedes in 1923 and developed the
Kompressor
 Bruno Sacco – joined Daimler-Benz as a designer in 1958. Head of Design in 1975,
retired in 1999
 Rudolf Uhlenhaut – joined Daimler-Benz in 1931, his designs included the Silver
Arrows, the 300 SL and 300SLR
 Adolf Eichmann – former Nazi criminal. Worked in Argentina's factory after WWII
25
 Rudolf Caracciola – one of the greatest GP drivers in history drove MB Silver Arrows
in competition.
 Josef Ganz - Technical consultant and "Godfather" of the *Mercedes-Benz W136, with
the revolutionary Independent suspension, Swing axle layout.
Innovations
Numerous technological innovations have been introduced on Mercedes-Benz automobiles

throughout the many years of their production, including:
 The internal combustion engine automobile was developed independently by Benz and
Daimler & Maybach in 1886
 Daimler invented the honeycomb radiator of the type still used on all water-cooled
vehicles today
 Daimler invented the float carburetor which was used until replaced by fuel injection
 The "drop chassis" – the car originally designated the "Mercedes" by Daimler was also
the first car with a modern configuration, having the carriage lowered and set between
the front and rear wheels, with a front engine and powered rear wheels. All earlier cars
were "horseless carriages", which had high centres of gravity and various engine/drive-
train configurations
 The first passenger road car to have brakes on all four wheels (1924)
 In 1936, the Mercedes-Benz 260 D was the first diesel powered passenger car.
 Mercedes-Benz were the first to offer direct fuel injection on the Mercedes-Benz 300SL
Gullwing
 The "safety cage" or "safety cell" construction with front and rear crumple zones was
first developed by Mercedes-Benz in 1951. This is considered by many as the most
important innovation in automobile construction from a safety standpoint
 In 1959, Mercedes-Benz patented a device that prevents drive wheels from spinning by
intervening at the engine, transmission, or brakes. In 1987, Mercedes-Benz applied its
patent by introducing a traction control system that worked under both braking and
acceleration
 an Anti-Lock Brake system (ABS) was first offered on the W116 450SEL 6.9. They
became standard on the W126 S-Class starting production in 1979 and first sold in most
markets in 1980.
26
 Airbags were first introduced in the European market, beginning with model year 1981
S-Class.
 Mercedes-Benz was the first to introduce pre-tensioners to seat belts on the 1981 S-
Class. In the event of a crash, a pre-tensioner will tighten the belt instantaneously,
removing any 'slack' in the belt, which prevents the occupant from jerking forward in a
crash
 In September 2003, Mercedes-Benz introduced the world's first seven-speed automatic
transmission called '7G-Tronic'
 Electronic Stability Programme (ESP), brake assist, and many other types of safety
equipment were all developed, tested, and implemented into passenger cars – first – by
Mercedes-Benz. Mercedes-Benz has not made a large fuss about its innovations, and
has even licensed them for use by competitors – in the name of improving automobile
and passenger safety. As a result, crumple zones and anti-lock brakes (ABS) are now
standard on all modern vehicles.
Mercedes M156 engine
 The (W211) E320 CDI which has a variable geometry turbocharger (VGT) 3.0-litre V6
common rail diesel engine (producing 224 hp or 167 kW), set three world endurance
records. It covered 100,000 miles (160,000 km) in a record time, with an average speed
of 224.823 km/h (139.70 mph). Three identical cars did the endurance run (one set
above record) and the other two cars set world records for time taken to cover 100,000
kilometres (62,137 mi) and 50,000 miles (80,000 km) respectively. After all three cars
had completed the run, their combined distance was 300,000 miles (480,000 km) (all
records were FIA approved).
 Mercedes-Benz pioneered a system called Pre-Safe to detect an imminent crash – and
prepares the car's safety systems to respond optimally. It also calculates the optimal
braking force required to avoid an accident in emergency situations, and makes it
27
immediately available for when the driver depresses the brake pedal. Occupants are
also prepared by tightening the seat belt, closing the sunroof and windows, and moving
the seats into the optimal position.
 At 181 horsepower per litre, the M133 engine installed in Mercedes-Benz A45 AMG is
the most powerful series production four-cylinder turbocharged motor (as of June 2013)
and has one of the highest power density for a passenger vehicle.
Half a century of vehicle safety innovation helped win Mercedes-Benz the Safety Award at the
2007 What Car? Awards.
Robot cars
In the 1980s, Mercedes built the world's first robot car, together with the team of Professor
Ernst Dickmanns at Bundeswehr University Munich. Partially encouraged by Dickmanns'
success, in 1987 the European Union's EUREKA programme initiated the Prometheus Project
on autonomous vehicles, funded to the tune of nearly €800 million. A culmination point was
achieved in 1995, when Dickmanns' re-engineered autonomous S-Class Mercedes took a long
trip from Munich in Bavaria to Copenhagen in Denmark, and back. On highways, the robot
achieved speeds exceeding 175 km/h (109 mph) (permissible in some areas of the German
Autobahn). The car's abilities has heavily influenced robot car research and funding decisions
worldwide.
As for the future of Mercedes-Benz Robot Cars, in October 2015, the company introduced the
Vision Tokyo, a five-seat electric van powered by a hybrid hydrogen fuel-cell systerm. The
super-sleek van is touted as "a chill-out zone in the midst of megacity traffic mayhem."
Tuners
Several companies have become car tuners (or modifiers) of Mercedes Benz, in order to
increase performance and/or luxury to a given model.
AMG is Mercedes-Benz's in-house performance-tuning division, specialising in high-

performance versions of most Mercedes-Benz cars. AMG engines are all hand-built, and each
completed engine receives a tag with the signature of the engineer who built it. AMG has been
wholly owned by Mercedes-Benz since 1999. The 2009 SLS AMG, a revival of the 300SL
Gullwing, is the first car to be entirely developed by AMG.
28
There are numerous independent tuners including Brabus, Carlsson, Kleemann and Renntech.
Sponsorships
Mercedes-Benz is sponsoring the German national football team.
In football, Mercedes-Benz sponsors Germany National Football Team. Mercedes-Benz

sponsors Bundesliga club VfB Stuttgart and provides the naming rights for their stadium, the
Mercedes-Benz Arena. The company also holds the naming rights to the Mercedes-Benz
Superdome in New Orleans, Louisiana. On August 24, 2015, Mercedes-Benz was announced
as the naming rights sponsor for the Atlanta Falcons' new stadium, scheduled to open in 2017.
PROBLEMS OF THE ORGANIZATION
Mercedes-Benz Problems
Vehicles equipped with a 7-speed automatic transmission may develop a rough shifting
condition, most commonly going up from first to second gear and going down from third to
second or second to first gear. Our technicians tell us this is due to an internal component
failure. Mercedes has released updated parts; the transmission will need to be removed and
disassembled to complete the necessary repairs.
Internal Component Failure May Cause Rough Shifting
Vehicles equipped with a 7-speed automatic transmission may develop a rough shifting
condition, most commonly going up from first to second gear and going down from third to
29
second or second to first gear. Our technicians tell us this is due to an internal component
failure. Mercedes has released updated parts; the transmission will need to be removed and
disassembled to complete the necessary repairs.
Instrument Clusters Tend to Fail
Instrument cluster displays tend to fail, especially the clock and gear indicators. Our technicians
tell us the instrument cluster will require replacement to correct this issue.
The Indian automobile industry has emerged as the 7th largest in the world. According to the
Society for Indian Automobile Manufacturers (SIAM), the automobile industry has already
invested Rs 70,000 crores in the past four years in building new factories, adding fresh capacity
and bringing out new products.
The auto components industry too is gearing up to compliment the vehicle industry’s growth.
About $6 billion has been invested in the past 4 years according to Automotive Component
Manufacturers Association of India (ACMA). It is driven by a sustained increase in vehicle
population and an increasing preference towards higher-end vehicles with rising consumer
aspirations (Volvo registered 155% increased growth of its luxury segment in 2012).
According to a recent Automotive industry report by Wipro, in the coming decade, the main
focus would be on enhancing efficiency and productivity, and on innovation, driven by
changing customer demands. Price sensitivity of the Indian consumer, cost optimization needs
of manufacturers and increasing focus on environmental concerns will drive critical changes in
the market.
Future strategies of the auto companies will have to focus on increased environmental safety
concerns, rising fuel prices and cost-effectiveness in the rising market competition. Innovation
has to focus on increasing efficiency and reducing emissions.
Customer experience will be a key factor to retain the existing ones and reach out to the new
ones. After-sales service is an important aspect which will help in winning the loyalty of the
consumer. Overall in- vehicle experience needs to be upgraded for the consumer by deploying
telematics, embedded software and infotainment in a seamless and user-friendly manner.
30
According to me, in order to ensure long-term, sustainable growth, auto companies will need
to focus on adopting a three pronged strategy of - investing in R&D for product development,
extending presence to non-auto verticals, and expanding geographical presence beyond the
domestic boundaries. OEMs should expand service and distribution networks, manufacturing
facilities and improve technological capabilities.
Future investments will need a strong public-private partnership, not only to build
infrastructure for growth but also to combat the counterfeit auto parts market.
A clear roadmap, training of man-power and appropriate regulations with clear policies
regarding safety & emission norms and fiscal policies are required for long–term planning by
the automotive industry. Steps to create an encouraging environment will help in accelerating
and sustaining growth and project India as the global hub for the auto industry.
COMPETITION INFORMATION
Competition
1. BMW
2.Porsche
3.Audi
4.Volkswagen
5.Jaguar
6.Ferrari
7.Aston Martin
Competitors 8. Volvo
31
INDUSTRY OVERVIEW
Introduction
The Indian auto industry is one of the largest in the world. The 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 the 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.
India is also a prominent auto exporter and has strong export growth expectations for the near
future. In April-March 2016, overall automobile exports grew by 1.91 per cent. PV,
Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 per cent,
per cent, and 0.97 per cent respectively in April-March 2016 over April-March 2015.*
In addition, several initiatives by the Government of India and the major automobile
players in the Indian market are expected to make India a leader in the 2W and Four
Wheeler (4W) market in the world by 2020.
Market Size
The sales of PVs, CVs and 2Ws grew by 9.17 per cent, 3.03 per cent and 8.29 per cent
respectively, during the period April-January 2017.
Investments
In order to keep up with the growing demand, several auto makers have started investing
heavily in various segments of the industry during the last few months. The industry has
attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion during the period April
2000 to September 2016, according to data released by Department of Industrial Policy and
Promotion (DIPP).
Some of the major investments and developments in the automobile sector in India are as
follows:
32
 Electric car maker Tesla Inc. is likely to introduce its products in India sometime in the
summer of 2017.
 South Korea’s Kia Motors Corp is close to finalising a site for its first factory in India,
slated to attract US$1 billion (Rs 6,700 crore) of investment. It is deciding between
Andhra Pradesh and Maharashtra. The target for operationalising the factory is the end
of 2018 or early 2019.
 Several automobile manufacturers, from global majors such as Audi to Indian
companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the
possibilities of introducing driverless self-driven cars for India.
 BMW plans to manufacture a local version of below-500 CC motorcycle, the G310R,
in TVS Motor’s Hosur plant in Tamil Nadu, for Indian markets.
 Honda Motorcycle and Scooter India (HMSI) has inaugurated its 900th Honda
Authorised Exclusive Dealership in India, thereby taking its total dealership network to
4,800 across the country and further plans to increase its network to 5,300 by end of
2016-17.
 Hero MotoCorp Ltd seeks to enhance its participation in the Indian electric vehicle (EV)
space by pursuing its internal EV Programme in addition to investing Rs 205 crore (US$
30.75 million) to acquire around 26-30 per cent stake in Bengaluru-based technology
start-up Ather Energy Pvt Ltd.
 JustRide, a self-drive car rental firm, has raised US$ 3 million in a bridge round of
funding led by a group of global investors and a trio of Y Combinator partners, which
will be utilised to amplify JustRide’s car sharing platform JustConnect and Yabber, an
internet of things (IoT) device for cars that is based on the company’s smart vehicle
technology (SVT).
 Ford Motor Co. plans to invest Rs 1,300 crore (US$ 195 million) to build a global
technology and business centre in Chennai, which will be designed as a hub for product
development, mobility solutions and business services for India and other markets.
 Cummins has plans to make India an export hub for the world, by investing in top
components and technologies in India.
 Suzuki Motor Corporation, the Japan-based automobile manufacturer, plans to invest
Rs 2,600 crore (US$ 390 million) for setting up its second assembly plant in India and
an engine and transmission unit in Mehsana, Gujarat.
33
 Mr Masayoshi Son, Chief Executive Officer, SoftBank Group, has stated that Ola Cabs
may introduce a fleet of one million electric cars in partnership with an electric vehicle
maker and the Government of India, which could help reduce pollution and thereby
transform the electric mobility sector in the country.
 China’s biggest automobile manufacturer, SAIC Motor, plans to invest US$ 1 billion in
India by 2018, and is exploring possibilities to set up manufacturing unit in one of three
states – Maharashtra, Andhra Pradesh and Tamil Nadu.
 Suzuki Motorcycle India Pvt Ltd has started exports of made-in-India flagship bike
Gixxer to its home country of Japan, which will be in addition to current exports to
countries in Latin America and surrounding countries.
 General Motors plans to invest US$ 1 billion in India by 2020, mainly to increase the
capacity at the Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by
2025.
 FIAT Chrysler Automobiles has recently invested US$280 million in its Ranjangaon
plant to locally manufacture Jeep Compass, its new compact SUV which will be
launched in India in August 2017.
Government Initiatives
The Government of India encourages foreign investment in the automobile sector and allows
100 per cent FDI under the automatic route.
Some of the major initiatives taken by the Government of India are:
 The Government of India plans to introduce a new Green Urban Transport Scheme with
a central assistance of about Rs 25,000 crore (US$ 3.75 billion), aimed at boosting the
growth of urban transport along low carbon path for substantial reduction in pollution,
and providing a framework for funding urban mobility projects at National, State and
City level with minimum recourse to budgetary support by encouraging innovative
financing of projects.
 Government of India aims to make automobiles manufacturing the main driver of
‘Make in India’ initiative, as it expects passenger vehicles market to triple to 9.4 million
units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
34
 The Government plans to promote eco-friendly cars in the country i.e. CNG based
vehicle, hybrid vehicle, and electric vehicle and also made mandatory of 5 per cent
ethanol blending in petrol.
 The government has formulated a Scheme for Faster Adoption and Manufacturing of
Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission
2020 to encourage the progressive induction of reliable, affordable and efficient electric
and hybrid vehicles in the country.
Road Ahead
India’s automotive industry is one of the most competitive in the world. It does not cover 100
per cent of technology or components required to make a car but it is giving a good 97 per cent,
as highlighted by Mr Vicent Cobee, Corporate Vice-President, Nissan Motor’s Datsun.
Leading auto maker Maruti Suzuki expects Indian passenger car market to reach four million
units by 2020, up from 1.97 million units in 2014-15.
Mr Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is a
key market for the company, not only in terms of volumes but also as a hub of small products
for exports to 92 countries.
Mr Joachim Drees, Global CEO, MAN Trucks & Bus AG, has stated that India has the potential
to be among the top five markets, outside of Europe, by 2020 for the company, which is
reflected in the appointment of its most experienced managers to India for increasing volumes
and exports out of India.
The Indian automotive aftermarket is estimated to grow at around 10-15 per cent to reach US$
16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to
US$ 300 billion in annual revenue by 2026, create 65 million additional jobs and contribute
over 12 per cent to India’s Gross Domestic Product#.
According to Mr Guillaume Sicard, president, Nissan India Operations, the income tax rate cut
from 10 per cent to 5 per cent for individual tax payers earning under Rs 5 lakh (US$ 7,472)
per annum will create a positive sentiment among likely first time buyers for entry level and
small cars.
35
Exchange Rate Used: INR 1 = US$ 0.015 as on February 9, 2017
The automobile industry in India is expected to be the world's third largest by 2016, with the
country currently being the world's second largest two-wheeler manufacturer. Two-wheeler
production is projected to rise from 18.5 million in FY15 to 34 million by FY20.
Passenger vehicle market in India is expected to cross the three million unit milestone during
FY 2016-17, and further increase to 10 million units in FY 2019-20.
The government aims to develop India as a global manufacturing as well as a research and
development (R&D) hub. It has set up National Automotive Testing and R&D Infrastructure
Project (NATRiP) centres as well as a National Automotive Board to act as facilitator between
the government and the industry.
Alternative fuel has the potential to provide for the country's energy demand in the auto sector
as the CNG distribution network in India is expected to rise to 250 cities in 2018 from 125 cities
in 2014. Also, the luxury car market could register high growth and is expected to reach 150,000
units by 2020.
36
CHAPTER-2
RESEARCH METHODOLOGY
Methodology is the systematic, theoretical analysis of the methods applied to a field of study.
It comprises the theoretical analysis of the body of methods and principles associated with a
branch of knowledge. Typically, it encompasses concepts such as paradigm, theoretical model,
phases and quantitative or qualitative techniques.
A methodology does not set out to provide solutions - it is, therefore, not the same thing as a
method. Instead, it offers the theoretical underpinning for understanding which method, set of
methods or so called “best practices” can be applied to specific case, for example, to calculate
a specific result.
It has been defined also as follows:
1. "the analysis of the principles of methods, rules, and postulates employed by a

discipline"
2. "the systematic study of methods that are, can be, or have been applied within a
discipline"
3. "the study or description of methods”
RESEARCH DESIGN
The research design is purely and simply the framework of plan for a study that guides the
collection and analysis of data. Types of Research Design:
 Exploratory Research – The main purpose of such studies is that of formulating a
problem for more precise investigation or of developing the working hypotheses from
an operational point of view.
 Descriptive Research – Those studies which are concerned with describing the
characteristics of a particular individual, or of a group.
 Hypothesis Testing Research – They are those where the researchers tests the
hypotheses of casual relationships between variables.
Descriptive research design was used for this research.

A research design is a systematic plan to study a scientific problem. The design of a study
defines the study type (descriptive, correlation, semi-experimental, experimental, review,
37
meta-analytic) and sub-type (e.g., descriptive-longitudinal case study), research question,
hypotheses, independent and dependent variables, experimental design, and, if applicable, data
collection methods and a statistical analysis plan.
Design types and sub-types
There are many ways to classify research designs, but sometimes the distinction is artificial
and other times different designs are combined. Nonetheless, the list below offers a number of
useful distinctions between possible research designs.[1]
 Descriptive (e.g., case-study, naturalistic observation, Survey)

 Co relational (e.g., case-control study, observational study)
 Semi-experimental (e.g., field experiment, quasi-experiment)
 Experimental (Experiment with random assignment)
 Review (Literature review, Systematic review)
 Meta-analytic (Meta-analysis)
Sometimes a distinction is made between "fixed" and "flexible" or, synonymously,

"quantitative" and "qualitative" research designs.[2] However, fixed designs need not be
quantitative, and flexible design need not be qualitative. In fixed designs, the design of the
study is fixed before the main stage of data collection takes place. Fixed designs are normally
theory driven; otherwise it is impossible to know in advance which variables need to be
controlled and measured. Often, these variables are measured quantitatively. Flexible designs
allow for more freedom during the data collection process. One reason for using a flexible
research design can be that the variable of interest is not quantitatively measurable, such as
culture. In other cases, theory might not be available before one starts the research. However,
these distinctions are not recognized by many researchers, such as Stephen Gorard who
presents a simpler and cleaner definition of research design.
DATA COLLECTION
Primary Data: the data which is collected first hand or by the investigator himself. It means
that this is the information which the investigator collects himself/herself through interviews,
door to door survey, questionnaire and others.
Secondary Data: the data which is collected second hand or through a already existing piece
of information. It means the information which we take from the internet, newspaper,
38
newsprint or a journal. This includes all the thing which are already printed and we are taking
out information from them.
The data which I collected for my project will be classified as a secondary data, because I made
it through the information provide in the newspaper and internet. I Did Not Go For Any Door
To Door Survey Or Any Questionnaire, all the information was made through the help of
Wikipedia, newspaper, magazines and other search engines.
SAMPLING DESIGN
(a) Primary Data Collection Sources:
It has been collected by forming a proper questionnaire. Questionnaire is a systematic and

structured manner of collecting data for conducting experiment. The nature of the questionnaire
is very inductive and fundamental. It has been kept in a proper framework to make it clear to
the retailers.
Primary data can be collected in five main ways:
i) Observation
ii) Focus groups
iii) Surveys
iv) Behavioral data
v) Experiments
Among these, ‘survey method’ was selected to collect the primary data. 100 user were visited
& collected the required data relevant to this project.
(b) Secondary Data Collection Sources:
Secondary sources
Information was collected from secondary sources such as customer survey, newspapers
advertisements, newsletters, etc.
39
Beside these the use of Internet was also made in collecting relevant information. The data
collected from the above mentioned sources has been adequately structured and used at
appropriate places in the report. The information gathered included:
• Their annual reports.
• Pamphlets.
• Newsletters.
• Pictures.
• Exchange schemes.
SAMPLING UNIT
Sampling techniques can be broadly classified in to two types:
 Probability Sampling
 Non Probability Sampling
This project will be based on the non-probability, purposive, quota sampling. As in the given
project the sample will be considered specific to predetermined New Delhi.
Types of Research :
Research are mostly categorized in to four major categories:
 First is descriptive & Analytical
 Second Applied & Fundamental
 Third Quantitative & Qualitative
 Fourth Conceptual & Empirical
The project will be based on Descriptive Research type.
SAMPLE SIZE
It is the process of selecting representative subset of a total population for obtaining data for
the study of the whole population the subset is known as sample. The sample size is selected
for the study 100 user. The techniques of sampling unit in this study are convenience sampling.
Sampling Technique
Sampling techniques can be broadly classified in to two types:
40
Probability Sampling (here the every item in the universe have the equal chance of
inclusion in the sample)
Non Probability Sampling (Here the item in the sample are deliberately selected by
the researcher)
This project will be based on the non-probability, purposive, quota sampling. As in the given
project the sample will be considered specific to predetermined New Delhi.
Tools Used for Data Analysis
Bar chart (Bar charts will be used for comparing two or more values that will be taken
over time or on different conditions, usually on small data set )
Pie-chart (Circular chart divided in to sectors, illustrating relative magnitudes or
frequencies)
41
CHAPTER – 3
MAIN ANALYSIS/REPORT
Consumer Buying Intention

Consumers' Purchase Intentions and Their Behavior reviews the relevant literature on purchase
intentions in marketing, and more generally on the intentions-behavior relationship in social
psychology, since purchase intentions are a particular form of the more general construct of
intentions. Starting with the importance of purchase intentions to marketing managers, the
author then focuses on reviewing the literature that provides an understanding of how strong
the relationship between purchase intentions and purchasing is, what factors influence the
strength of the relationship between purchase intentions and purchasing, and how a marketing
manager should best use purchase intentions to forecast future sales.
Customer satisfaction measures how well the expectations of a customer concerning a product
or service provided by your company have been met.
Customer satisfaction is an abstract concept and involves such factors as the quality of the
product, the quality of the service provided, the atmosphere of the location where the product
or service is purchased, and the price of the product or service. Businesses often use customer
satisfaction surveys to gauge customer satisfaction.
Purpose
A business ideally is continually seeking feedback to improve customer satisfaction.
"Customer satisfaction provides a leading indicator of consumer purchase intentions and

loyalty." "Customer satisfaction data are among the most frequently collected indicators of
market perceptions. Their principal use is twofold:"
42
1. "Within organizations, the collection, analysis and dissemination of these data send a
message about the importance of tending to customers and ensuring that they have a
positive experience with the company's goods and services."
2. "Although sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will
make further purchases in the future. Much research has focused on the relationship
between customer satisfaction and retention. Studies indicate that the ramifications of
satisfaction are most strongly realized at the extremes."
On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become
return customers and might even evangelize for the firm. (A second important metric related
to satisfaction is willingness to recommend. This metric is defined as "The percentage of
surveyed customers who indicate that they would recommend a brand to friends." When a
customer is satisfied with a product, he or she might recommend it to friends, relatives and
colleagues. This can be a powerful marketing advantage.) "Individuals who rate their
satisfaction level as '1,' by contrast, are unlikely to return. Further, they can hurt the firm by
making negative comments about it to prospective customers. Willingness to recommend is a
key metric relating to customer satisfaction."
Theoretical Ground
"In literature antecedents of satisfaction are studied from different aspects. The considerations
extend from psychological to physical and from normative to positive aspects. However, in
most of the cases the consideration is focused on two basic constructs as customers expectations
prior to purchase or use of a product and his relative perception of the performance of that
product after using it.
Expectations of a customer on a product tell us his anticipated performance for that product.
As it is suggested in the literature, consumers may have various "types" of expectations when
forming opinions about a product's anticipated performance. For example, four types of
expectations are identified by Miller (1977): ideal, expected, minimum tolerable, and desirable.
While, Day (1977) indicated among expectations, the ones that are about the costs, the product
nature, the efforts in obtaining benefits and lastly expectations of social values. Perceived
product performance is considered as an important construct due to its ability to allow making
comparisons with the expectations.
43
It is considered that customers judge products on a limited set of norms and attributes.
Olshavsky and Miller (1972) and Olson and Dover (1976) designed their researches as to
manipulate actual product performance, and their aim was to find out how perceived
performance ratings were influenced by expectations. These studies took out the discussions
about explaining the differences between expectations and perceived performance."
In some research studies, scholars have been able to establish that customer satisfaction has a
strong emotional (i.e., affective component). Still others show that the cognitive and affective
components of customer satisfaction reciprocally influence each other over time to determine
overall satisfaction.
Especially for durable goods that are consumed over time, there is value to taking a dynamic
perspective on customer satisfaction. Within a dynamic perspective, customer satisfaction can
evolve over time as customers repeatedly use a product or interact with a service. The
satisfaction experienced with each interaction (transactional satisfaction) can influence the
overall, cumulative satisfaction. Scholars showed that it is not just overall customer
satisfaction, but also customer loyalty that evolves over time.
Buying Behavior is the decision processes and acts of people involved in buying and using
products.
Need to understand:
 why consumers make the purchases that they make?
 what factors influence consumer purchases?
 the changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm
needs to analyze buying behavior for:
 Buyers reactions to a firms marketing strategy has a great impact on the firms success.
 The marketing concept stresses that a firm should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore need to analyze the what, where, when
and how consumers buy.
 Marketers can better predict how consumers will respond to marketing strategies.
Types of Consumer Buying Behavior
Types of consumer buying behavior are determined by:
44
 Level of Involvement in purchase decision. Importance and intensity of interest in a
product in a particular situation.
 Buyers level of involvement determines why he/she is motivated to seek information
about a certain products and brands but virtually ignores others.
The four type of consumer buying behavior are:
 Routine Response/Programmed Behavior - buying low involvement frequently
purchased low cost items; need very little search and decision effort; purchased almost
automatically. Examples include soft drinks, snack foods, milk etc.
 Limited Decision Making - buying product occasionally. When you need to obtain
information about unfamiliar brand in a familiar product category, perhaps. Requires a
moderate amount of time for information gathering. Examples include Clothes-- know
product class but not the brand.
 Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or
infrequently bought products. High degree of economic/performance/psychological
risk. Examples include cars, homes, computers, education. Spend alot of time seeking
information and deciding.
The purchase of the same product does not always elicit the same Buying Behavior. Product
can shift from one category to the next.
For example:
Going out for dinner for one person may be extensive decision making (for some that does not
go out often at all), but limited decision making for some else. The reason for the dinner,
whether it is an anniversary celebration, or a meal with a couple of friends will also determine
the extent of the decision making.
Consumer behaviour is the study of when, why, how, and where people do or do not buy a
product. It blends elements from psychology, sociology, social anthropology and economics.
It attempts to understand the buyer decision making process, both individually and in groups.
It studies characteristics of individual consumers such as demographics and behavioural
variables in an attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Research has shown that consumer behavior is
difficult to predict, even for experts in the field. Relationship marketing is an influential asset
for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning
of marketing through the re-affirmation of the importance of the customer or buyer.
45
A greater importance is also placed on consumer retention, customer relationship management,
personalisation, customisation and one-to-one marketing. Social functions can be categorized
into social choice and welfare functions.
Each method for vote counting is assumed as social function but if Arrow’s possibility theorem
is used for a social function, social welfare function is achieved. Some specifications of the
social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity,
homogeneity and weak and strong Pareto optimality. No social choice function meets these
requirements in an ordinal scale simultaneously. The most important characteristic of a social
function is identification of the interactive effect of alternatives and creating a logical relation
with the ranks. Marketing provides services in order to satisfy customers. With that in mind,
the productive system is considered from its beginning at the production level, to the end of the
cycle, the consumer (Kioumarsi et al., 2009).
Black Box Model
The black box model shows the interaction of stimuli, consumer characteristics, decision
process and consumer responses. It can be distinguished between interpersonal stimuli
(between people) or intrapersonal stimuli (within people). The black box model is related to
the black box theory of behaviourism, where the focus is not set on the processes inside a
consumer, but the relation between the stimuli and the response of the consumer. The marketing
stimuli are planned and processed by the companies, whereas the environmental stimulus are
given by social factors, based on the economical, political and cultural circumstances of a
society. The buyers black box contains the buyer characteristics and the decision process, which
determines the buyers response.
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Literature Review: Customer Expectations
The literature review is about customer expectations, customer perceptions and customer
satisfaction and their association with the services they receive. The literature describes
customer satisfaction as a problem which has become a major issue for the service providers.
Customer satisfaction is found to be based upon the customer's comparison between prior
expectation and actual service performance. Park, Robertson and Wu (2004) found that the
expectation of a customer is an important factor in the analysis of customer satisfaction and
perception and has this factor has been found to be neglected in the airline industry. Focusing
on customer satisfaction is the vital key to improve the service quality of an airline.
There are ways by which service providers can reduce the risk of losing their customers. It
happens when the customers who complain about service poor quality enable the companies to
improve their quality of services, by enhancing the quality of services companies gets the
opportunity to minimize the costs of negative word- of- mouth, switching behavior providers
and lost turnover (Stauss, 1999).
Airline industry is also a service provider industry that has been continuously working on
improving services and adopting ways to satisfy their customers. Airlines play a significant
role as a medium and as a service provider to transport passengers from one destination to the
other across the globe (Rhoades & Waguespack, 2008). Hanlon (1999) suggest that there are
three main factors that make customers to avoid traveling through some airline. These three
factors are incomes, fares and service levels.
Although many factors can play a key role in the success of an airline but customers do not
compromise on services and hence it has become the critical factor behind the success of airline
industry (Bamford & Xystouri, 2005; Rhoades &Waguespack, 2005; 2008). The study on
services has revealed that Zagat, an aviation research firm, rates services in airlines according
to overall performance of airline, the extent to which it provides comfort to the passengers,
services, type and quality of food and the website through which customers get the know how
about airlines and services and use it as a communication medium (Rhoades, 2006).Also, The
US department of Transportation (DOT) states that service in the airline industry can be seen
from various dimensions which includes delays in takeoffs and landings, mishandling of
baggage oversold flights and the management and response to customer complaints (Saha &
Theingi, 2009).
47
It is quite evident from the viewpoints mentioned above that service is a broad term which
includes elements or dimensions like performance, food, lingering of flights and, the way
customer queries and issues are entertained and safety of their luggage. Hence these services
not only play a key role in success of airlines but also shape up the expectations of customers.
Quality of services has become an extremely important issue for service providers, but delivery
of such service becomes difficult because of four characteristics namely, intangibility,
inseparability, variability, and perishability. The SERVQUAL model helps the service
providers when they fail to satisfy their customers and when their expectations are not filled
according to their perceptions (Bebko, 2001).
Out of all the gaps, Gap 5 is more appropriate with the research objective as it describes
customer perceptions and expectations regarding services they get from the service providers.
There are some variations in the Gap 5 which leads to customer satisfaction (when perception
of the customers meet their expectations) or sometimes they are highly pleased and delighted
(when perceptions exceed from the expectation of customers) and the worst condition is when
a customer is totally disappointed, in fact outraged (when perception do not meet the
expectations at all) (Andreassen, 2001; Schneider and Bowen, 1999). All these aspects
mentioned above have been described in detail throughout the literature review.
Customer Importance in service industry
The trends of the buisness have consdderably drifted fron product oriebted trend to the
customer oriented. The most valuable asset in the buisness today is the strength of the
relationships of the organisation with its customers.
Long term relations are the bottomline or we can say are the basis of enhanced profitability. It
is true that such relationships between a customer and an organisation only exist as long as the
customer percieves good benefits and quality service from the organisation. Quality links
directly to customer, what customer suggest is the dimension of the quality. Elearn (2005)
defined and linked quality with the customers point of view.
"Quality is consistent of conformance to customer's expectations".(Elearn 2005,p.02)
In todays market the customer has become more demanding as the expectations of the sevices
and the expectation of the performanance of the product continue to increase.The brand
48
power or the image of a corporate has immensely decresed as the customers now know that
there is an alternative and wide choice is available (Gerson.1992).
In the airline service industry customer experience service after they have already paid or
purchased the service, on the other hand tangible or manufacturing industries advertise and
promote their products with unique features like cool colors,nice taste, pleasant smell etc.
Christopher & Peck (2003) suggest that to retain a customer requires an understanding of
what those customers value and a focus on the processes whereby that value can consistently
be delivered.Clearly there is an equation between the value that customer percieve they are
getting and the price they are prepared to pay.
Gerson (1992),explained "why customer buy?",The author explained Customers basically buy
for the four reasons:to make or save money, to save time,to feel secure (have peace of mind)
or boost their ego. Thus if a company promises that their product or the service will do one or
more of these four things,it will have better productivity and performance .If it doesn't then a
company implement their service recovery programme to ensure the satisfaction and the loyalty
of a customer are maintained.
The Issues of Customer Satisfaction
The heading states customer satisfaction as a problem which suggests that it should be given a
lot of importance by the companies that are dealing with customers. The importance of
customer satisfaction can be understood by statements from various writers.
The companies while making business strategies, incorporates a strategy to achieve Customer
satisfaction (Reichheld & Sasser, 1990; Rust & Zahorik, 1993). Drucker (1973) states it as the
reason of successful business, and according to Claycomb & Martin (2002) customer
satisfaction is a basic principle of relationship marketing and management. Anderson et al
(1994) think that customer satisfaction is a helpful factor in giving organizations an edge over
their customers.
It is evident from some research works that concepts of corporate profitability, customer
satisfaction and customer loyalty, and customer retention are interlinked. There is a strong and
positive relationship between customer satisfaction and corporate profitability (Reichheld &
Sasser, 1990; Rust and Zahorik 1993; Anderon et al., 1997). It has been
49
seen in many industries that the companies who achieve greater customer satisfaction, rare are
the chances of losing their customers which means customer satisfaction leads to customer
retention and they flourish economically (Hogan et al ., 2003; Reichheld & Sasser, 1990).
Another study states that the satisfied customers become the loyal customers (Anderson &
Sullivan, 1993; Fornell, 1992; Bolton & Drew, 1991; Oliver & Swan, 1989)
.The more the loyalty of the customer would be the better would be the profit gain
(Reichheld & Teal, 1996).
Customer Expectations & Gratification
Customer expectations if not fulfilled leads to three states and then customer complains. This
complaining is the post-purchase behavior. These three states are delight, satisfaction and
dissatisfaction. If the customer is pleased, satisfied and delighted, he/she admires the services
(Leventhal, 2006). When the customer is not satisfied he/she expresses disappointment and
complains about the quality of service (Santos & Boote, 2003).
The customer expectations lie in three categories that are fuzzy, precise, implicit, explicit, and
unrealistic and realistic expectations.
Fuzzy expectations are those that are formed when customers are uncertain about the things
they are expecting, they want something but they fail to comprehend what they want actually.
If these expectations are not met, customers are dissatisfied but they do not understand why it
happened and what they wanted. Such customers are more prone towards switching behavior
and switch to other service provider without realizing the reason and benefits. The opposite of
this concept is precise expectations (Ojasalo, 2001).
The implicit expectations are associated with situations when the services are meant to be
delivered just according to the expectations of customers and customer's donot want to even
think about it what will happen if the services will not be delivered the way they are expecting.
If these expectations are not met, they become prominent and are felt by the customers.
Explicit expectations, on the other hand are well defined in customer's mind. Customers are
conscious about these expectations and about whether they are met or not (Ojasalo, 2001).
50
Unrealistic expectations are those that cannot be fulfilled by the service provider and even the
customers themselves. Realistic expectations are exactly the opposite of unrealistic
expectations (Ojasalo, 2001). All these types of expectations are likely to be expected by the
customers at the same time.
There are some ways of managing these expectations. Firstly by focusing on fuzzy
expectations, the service providers can make these fuzzy experiences more precise, and this
can be achieved when service providers interact with the customers. This communications
enable the service providers to shape their service according to the customer needs, and
customer finds easy to understand what kind of service they desire. In, short the problem is
identified and then a solution is provided. By focusing fuzzy expectations, service providers
can avoid providing short-term satisfaction at the expense of long-term satisfaction (Ojasalo,
2001).
Implicit expectations can turn into explicit expectations firstly when service providers
purposely reveals them, and secondly, if they are not matched by experiences. When Implicit
expectations are revealed, it increases the likeliness of achieving higher customer satisfaction
or in other words of high quality in the long term (Ojasalo, 2001).
The unrealistic expectations, as mentioned earlier, do not usually exist or in other words nobody
can meet these expectations. When these expectations are not fulfilled this leads to
dissatisfaction and disappointment of customers. If these expectations can be made realistic, it
is possible to achieve customer satisfaction. The need is to calibrate these unrealistic
expectations and make them realistic in order to avoid disappointment of customers in the
future. It is better to calibrate these unrealistic expectations because when customers realize
that their expectations cannot be met practically, they are disappointed and if they realize this
at the later stage, the disappointment is even higher. Calibrating unrealistic expectations lead
to high-long term quality.
All of these expectations have been discussed in the short-term as well as in the long-term
context. In short term the customer satisfaction is achieved immediately but it does not last for
a long time while in long term, the satisfaction doesn't come immediately but lasts over a longer
period. Of these two, long-term quality holds significance in order to have long lasting
relationship with the customers (Ojasalo, 1999).
51
The following figure shows expectation management model.
(Source: Ojasalo, 2001, p.206)
All these expectations management methods increase the possibility of achieving long-term
quality and the customer satisfaction.
The Attributes Of Customer Satisfaction
As this research is based on services and customer expectations, perceptions and their
satisfaction of the Pakistan International Airline, it is important to discuss those factors and
attributes that lead to customer satisfaction in the Airline Industry. Kano model describes these
attributes (Kano et al, 1984).
These attributes are basic needs, performance needs and exciting factors to the customers. Their
basic needs are safety and those products and services that are not hazardous. If a service or
product doesn't fulfill any of these basic needs it results in customer dissatisfaction.
The second attribute revolves around the particular performance of airlines, the extent to which
they fulfill or are able to meet the requirements of customers as this helps them in achieving
competitive edge in the market place. Customers get satisfied when these needs are fulfilled.
The last and third attribute which is the exciting factor includes those factors that are generally
not expected by the customers but they are meant to please them and attract them but this
attribute has least or no effect on customer satisfaction.
The time dimension in the model tells that as the time passes the exciting attribute becomes a
performance factor and with more time lapses it becomes the basic requirement thus customers
give least importance to these exciting attributes therefore with the passage of time they
concentrate on the performance factors and the basic needs.It thus becomes importance for an
airline to concentrate on the performance and basic attributes to be sucessful.
Fig 2b. Kano Model (Source: Create Superior Customer Values: New Direction for Middle
Eastern Airlines, 2008)
52
MARKETING
Marketing is the process of performing market research, selling products and/or services to
customers and promoting them via advertising to further enhance sales. It generates the strategy
that underlies sales techniques, business communication, and business developments. It is an
integrated process through which companies build strong customer relationships and create
value for their customers and for themselves.
Marketing is used to identify the customer, to satisfy the customer, and to keep the customer.
With the customer as the focus of its activities, it can be concluded that marketing
management is one of the major components of business management. Marketing evolved to
meet the stasis in developing new markets caused by mature markets and overcapacities in the
last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus
from production to the perceived needs and wants of their customers as the means of staying
profitable.
Definition of Marketing Management:
Marketing Management is a business discipline which is focused on the practical application
of marketing techniques and the management of a firm's marketing resources and activities.
Rapidly emerging forces of globalization have compelled firms to market beyond the borders
of their home country making International marketing highly significant and an integral part of
a firm's marketing strategy. Marketing managers are often responsible for influencing the level,
timing, and composition of customer demand accepted definition of the term. In part, this is
because the role of a marketing manager can vary significantly based on a business' size,
corporate culture, and industry context. For example, in a large consumer products company,
the marketing manager may act as the overall general manager of his or her assigned product
To create an effective, cost-efficient Marketing management strategy, firms must possess a
detailed, objective understanding of their own business and the market in which they operate.
In analyzing these issues, the discipline of marketing management often overlaps with the
related discipline of strategic planning.
Traditionally, marketing analysis was structured into three areas: Customer analysis, Company
analysis, and Competitor analysis (so-called "3Cs" analysis). More recently, it has become
fashionable in some marketing circles to divide these further into certain five "Cs": Customer
analysis, Company analysis, Collaborator analysis, Competitor analysis, and analysis of the
industry Context.
53
In Customer analysis is to develop a schematic diagram for market segmentation, breaking
down the market into various constituent groups of customers, which are called customer
segments or market segmentation's. Marketing managers work to develop detailed profiles of
each segment, focusing on any number of variables that may differ among the segments:
demographic, psycho graphic, geographic, behavioral, needs-benefit, and other factors may all
be examined. Marketers also attempt to track these segments' perceptions of the various
products in the market using tools such as perceptual mapping.
Marketing management employs various tools from economics and competitive strategy to
analyze the industry context in which the firm operates. These include Porter's five forces,
analysis of strategic groups of competitors, value chain analysis and others. Depending on the
industry, the regulatory context may also be important to examine in detail.
In Competitor analysis, marketers build detailed profiles of each competitor in the market,
focusing especially on their relative competitive strengths and weaknesses using SWOT
analysis. Marketing managers will examine each competitor's cost structure, sources of profits,
resources and competencies, competitive positioning and product differentiation, degree of
vertical integration, historical responses to industry developments, and other factors.
Marketing management often finds it necessary to invest in research to collect the data required
to perform accurate marketing analysis. As such, they often conduct market research
(alternately marketing research) to obtain this information. Marketers employ a variety of
techniques to conduct market research, but some of the more common include:
 Qualitative marketing research, such as focus groups and various types of interviews
 Quantitative marketing research, such as statistical surveys
 Experimental techniques such as test markets
 Observational techniques such as ethnographic (on-site) observation
Consumer Perception
The effect of planting a clear brand message in consumers’ minds is that consumers can
personalize the message and begin to adopt the brand. The message put out to a target audience,
if consistent and memorable enough to get consumers’ attention in the first place, really is more
of a seed planted in consumers’ minds that then begins to develop into the brand’s image. A
brand’s image is not the product itself, nor is it the exact marketing
54
message designed by advertisers, but rather it's a personal perception of the product grown in
the mind of each consumer, according to the Association for Consumer Research.
Identity Impact
Brand packaging, advertising, media attention on a brand and peer perception of a brand
contribute to a brand’s identity. A brand that meets or exceeds a consumer’s expectations can
end up adopted into a consumer’s life and shared with others. Consumers then can begin to see
a part of themselves symbolized by the brand. For example, your favorite brand of beer, line
of sportswear, cell phone or restaurant may have been introduced to you because each brand’s
message and quality somehow clicked with you; however, certain brands become your
“favorites” when you perceive them as somehow more integral than competing brands to your
self-image, culture, creative expression or lifestyle.
Peer Influence
For many consumers, when their family members or friends have adopted and trusted a brand,
they are more likely to trust that brand as well and extend that trust to all products made by that
brand, suggests a 2012 study by Rajdeep Grewal of Penn State's Smeal College of Business.
Marketing that highlights the personality of the brand rather than product features or pricing
speaks to those consumers more clearly, which can lead to greater brand championing and
sales.
The App Effect
Digital interaction via smartphone apps allows marketers to build deeper connections with
consumers than ever before. A branded app that provides information useful and relevant to
consumers’ lives instills in those consumers greater appreciation of the brand sponsoring the
app, according to a 2011 study by Indiana University professor Robert F. Potter. For example,
the study found that an informational app sponsored by Target that offered product reviews
proved to have more impact on consumer behavior and brand favorability than a game app
sponsored by Gap. The effect of a brand that provides downloadable and interactive
information on a category that its products fall under is that consumers begin to talk back to the
brand by providing feedback, offering their own information and caring about the brand enough
to support it and keep it on top.
55
CONSUMER BRAND BEHAVIOR
Consumer behavior is dependent on few factors that need to be considered in any industry. In
the garment industry, there are several intertwining factors known that influence consumer
behavior. The Internet as one knows well has its importance in nearly every form of trade, but
brand recognition is driven by a set of factors that have their own principles.
Trade is directly dependent on communication, and these days the Internet it is considered to
be one of the most important and reliable means of communications for trade. It is for this
reason that brand promotion is significantly related to the use of the Internet. However, it needs
to be asserted that the Internet is a tool for promoting a brand as is other means of brand
promotion.
In view of the Internet being an important medium through which customers may be
communicated with, consumer behaviors, and more importantly, consumer-purchase decisions,
become an important subject. Observing consumer-purchase decisions in the recent past, it can
be asserted that there is immense scope for expanding industries that receive positive responses
from consumers. An example of this is observed with some organizations in the garment
industry. A company such as Levis is a good example to view the effectiveness of branding on
consumer-purchase decisions. In addition purchases made at outlets, online purchases have
been significant as purchases of are easily made and are believed to be considerably reliable.
This reflects the manner in which consumers rely on brands like Levis. For purchasing garments
and placing orders, advertising through the Internet is the first step towards pulling in
customers. Indeed, this step is believed to be effective as there are a number of individuals who
first see ads online, and then decide to physically check a promotion out. However, this is not
the only way that people want to explore promotions of garments or any other industry.
Shoppers are keen to check out things for themselves. There are many consumers that also do
not rely on the Internet for purchasing what they want. They would rather shop, and there are
indeed many consumers who spend several hours per week in shopping centers searching for
what they want. Among these shoppers there are different kinds of consumers, and each of
these has different characteristics. Some look for stuff that is cheaper and reliable while others
want quality. Those who search for quality know what brands they want generally.
56
CHAPTER -4
DATA ANALYSIS AND INTERPETATION

Table No.1:
Particulars No. of Respondents Percentage
TV Ads 40 40%
Existing customers 20 20%

Magazines 10 10%
Friends 10 10%
Internet 20 20%
Total 100 100%
GRAPH No.1:
Interpretation: From the above graph shows that 40% of the respondents came to know of
Mercedes-Benz through TV ads, 10% of the respondents through magazines, 20% of the
respondents through the existing customers and 10% of respondents from friends, 10% of
respondents through internet. The above graph explained that majority of respondents are TV
Ads and Existing Customers.
57
Q.2. What is your perception about Mercedes-Benz?
Table No. 2:
Particulars No. of Respondents Percentage
Good 40 40%
Ordinary 30 30%
No comment 10 10%
Poor 20 20%
Total 100 100%
Graph No.2:
Interpretation:
The above graph reveals that good perception comes from 40%, 30% have ordinary perception
about the Mercedes-Benz and rest by 10% have No Comment, 20% have poor perception.
58
Table No. 3
Features No. of Respondents Percentage
Performance 36 36%
Look 22 22%
Availability 10 10%
Price 2 2%
Maintenance 8 8%
Brand Image 10 10%
After Sales Service 12 12%
Total 100 100%
Graph No. 3
Interpretation:
The above graph reveals that factor prompt to buy Mercedes-Benz. Performance (36%), Look
(22%), availability (10%), Price (2%), Maintenance (4%), Brand image (10%) and after sales
service (12%).
59
4. Decision influenced by to Purchase Mercedes-Benz?
Table No. 4
Influencer No. of Respondents Percentage
Parents 16 16%
Self 54 54%
Friends 18 18%
Relatives 8 8%
Others 4 4%
Total 100 100%
Graph No. 4
Interpretation:
The above graph reveals that decision influences by to purchase Mercedes-Benz. Parents
(16%), Self (54%), Friends (18%), Relatives (8%), Others (4%). Here Most of the customers
purchased by self decisions.
60
5.: Mercedes-Benz have Good Quality?
Table No. 5
Particulars Number of Respondent Percentage
Strongly agree 50 50%
Agree 20 20%
Neither agree 20 20%
Disagree 10 10%
TOTAL 100 100%
Graph No. 5
Interpretation:
The above graph shows that 50% of respondents strongly agree Mercedes-Benz have Good
Quality, 20% agree, 20% Neither agree and 10% of respondents disagree.
61
6. Which feature of Mercedes-Benz attract you more?
Table No.6:
Particulars No. of Respondent Percentage

Good looking 30 30%
Price 20 20%
Less power consume 20 20%
Stylish 10 10%
Etc 20 20%
Total 100 100%
Graph No.6:
Interpretation: 30% people like Mercedes-Benz due to good looking, 20% due to price,
20% due to less power consumption and rest due to stylish & trend and rest of others.
62
7. Why do you use Mercedes-Benz?
Table No.7:
Product No. of Respondent Percentage

Good price 10 10%
Better quality 64 64%
Easily available 16 16%
Diversified categories of 10 10%
product
Total 100 100%
Graph No.7:
Interpretation: In the above graph shows that 10% of respondents says Mercedes-Benz have
Good price, better quality (64%), easily available (16%), diversified categories of products
(10%). Here most of the respondents use Mercedes-Benz due to its better quality.
63
8. How many years have you been using Mercedes-Benz?
Table No.8:
Years No. of Respondent Percentage

1-2 Yrs 10 10%
2-3 Yrrs 10 10%
3-4 Yrs 16 16%
More than 4 Yrs 64 64%
Total 100 100%
Graph No.8:
Interpretation: In the above graph shows that 10% of people using Mercedes-Benz 1-2 years,
10% respondents using 2-3 years, 16% respondents using for 3-4 years and rest 64%
respondents using More than 4 years.
64
Table No.9:
Product No. of Respondent Percentage

Yes 80 80%
No 20 20%
Total 100 100%
Graph No.9:
Interpretation: The above graph showing is 80% of respondents says Mercedes-Benz are
more quality and beneficial than others. Only 20% of respondents Says No.
65
Table No.10:
Purpose No. of Respondent Percentage

Status Symbol 26 26%
For Pleasure 14 14%
Transportations 44 44%
Adventure 10 10%
Any Other 6 6%
Total 100 100%
Graph No.10:
Interpretation: The above graph showing is Most of the respondents approx 44% says for
transportation.
66
11.: On the basis of price and feature comparison, is Mercedes-Benz economical?
Table. No.11:
Option No. of respondents Percentage
Extremely Agreed 20 20%
Highly agreed 30 30%
Agreed 24 24%
No Comments 12 12%
Disagreed 14 14%
Total 100 100%
GRAPH No. 11:
Interpretation: The above graph showing is Mercedes-Benz are economical. 20% of public is
extremely agreed with this statement, 30% is highly agreed, 25% is agreed and rest of peoples
answer is negative.
67
12. What is the Selling scale System of Mercedes-Benz?
Table No.12
Option No. of Respondents Percentage
Excellent 60 60%
Good 10 10%
Fair 10 10%
Poor 10 10%
Very poor 10 10%
Total 100 100%
Graph No. 12
Interpretation: In the above graph shows that 60% of people says excellent about selling scale
system of Mercedes-Benz, 10% Good, 10% Fair, 10% Poor and rest 10% says very poor.
68
Table No. 13
Need 70 70%
Entertainment 30 30%
Total 100 100%
Graph No. 13
Interpretation:
In the above graph shows that 70% of customer prefer Mercedes-Benz due to need and rest
30% of customer prefer entertainment purpose.
69
14. Sale of Mercedes-Benz in Rural area and Urban area
Table No. 14
Urban Area 72 72%
Rural Area 28 28%
Total 10 100%
Graph No. 14
Interpretation: In the above graph shows that 72% Sale of Mercedes-Benz in Urban Area,
Only 28% Sale in Rural Area.
70
15. Do you think Mercedes-Benz & its product fulfills all your expectation?
Table No. 15
Yes 80 80%
No 20 20%
Total 100 100%
Graph No. 15
Interpretation: The above graph shows that most of the respondents approx 80% agree with
this statement.
71
16.What made you to buy this vehicle?
TABLE – 16
S. No. Features No. of Respondents %
1. Model 23 23
2. Price 13 13
3. Quality 21 21
4. Brand Name 29 29
5. Other Benefits 14 14
100 100
CHART – 16
35
29
No. of Respondents
30
25 23 Model
21
Price
20
13 14 Quality
15
Brand Name
10
Other Benefits
5
0
Model Price Quality Brand Other
Name Benefits
Reason for buying TATA Vehicle
Inference :
29% of the customer’s opted Tata vehicle basing on the brand name, 23% basing on the model,
21% basing on the quality, 14% basing on other benefits and 13% basing on the price. The
brand name of the TATA and quality of product should be taken care of while providing
service.
72
FINDINGS
 It reveals that good perception comes from 40%, 30% have ordinary perception about
the Mercedes-Benz and rest by 10% have No Comment, 20% have poor perception.
 It reveals that factor prompt to buy Mercedes-Benz. Performance (36%), Look (22%),
availability (10%), Price (2%), Maintenance (4%), Brand image (10%) and after sales
service (12%).
 It is observed that 50% of respondents strongly agree Mercedes-Benz have Good
Quality, 20% agree, 20% Neither agree and 10% of respondents disagree.
 30% people like Mercedes-Benz due to good looking, 20% due to price, 20% due to
less power consumption and rest due to stylish & trend and rest of others.
 It is observed that 10% of respondents says Mercedes-Benz have Good price, better
quality (64%), easily available (16%), diversified categories of products (10%). Here
most of the respondents use Mercedes-Benz due to its better quality.
 It reveals that it is 80% of respondents says Mercedes-Benz are more quality and
beneficial than others. Only 20% of respondents Says No.
 It reveals that it is showing Mercedes-Benz are economical. 20% of public is extremely

agreed with this statement, 30% is highly agreed, 25% is agreed and rest of peoples
answer is negative.
 It revelas that 60% of people says excellent about selling scale system of Mercedes-
Benz, 10% Good, 10% Fair, 10% Poor and rest 10% says very poor.
 34% of the customer previously not used any vehicle, 26% used some other vehicle,
23% used maruthi, 9% used mahindra and 8% used Toyota.
 29% of the customer opted Tata vehicel basing on the brand name, 23% basing on the
model, 21% basing on the quality, 14% basing on other benefits and 13% basing on the
price.
 45% of the customers are satisfied about the explanation about the benefits, features,
etc., at the time of purchase, 27% are very satisfied, 12% very satisfied, 12% are
somewhat dissatisfied, 4% are delighted and 12% had not responded to the above
question.
73
 42% of the customers are satisfied by the reception of the sales personnel at the time of
enquiry, 30% are very satisfied, 12% are delighted, 4% are somewhat dissatisfied and
12% had not responded to the above question.
 50% of the customers are very satisfied by the reception of the service advisor, 30% are
satisfied, 11% are delighted and 9% are somewhat dissatisfied.
 44% of the customers are very satisfied by the time taken to open job card, 25% are
satisfied, 23% are delighted and 8% are somewhat dissatisfied.
 46% of he customers are satisfied by the attitude of the service personnel, 28% are very
satisfied, 140% are somewhat dissatisfied, 11% are delighted and 1% very dissatisfied.
74
CHAPTER - 5
CONCLUSIONS & RECOMMENDATIONS
CONCLUSION
Mercedes-Benz is the German automobile manufacturer in addition of being a multinational

division for the German Daimler manufacturer AG. This company is popularly known for the
various products they manufacture including coaches, trucks, automobiles and buses. The
company’s biggest assets are the stakeholders that significantly assist in the continuity and their
health daily operations. Mercedes-Benz employees are the most important internal
stakeholders. Because of the interests of their various employees, Mercede-Benz has often
succeeded in their objectives, and by the fact that their stakeholders are always part of their
successes, For example, Mercedes-Benz continued success has result to a good reputation and
security for their employees.
My research made it clear that Mercedes-Benz is not only one of the most profitable car brands
in the world, but they also rank high in many categories amongst other top car manufacturers.
Mercedes-Benz is a well-trusted car manufacturer and the rankings I have research prove that
Mercedes-Benz deserves to stay amongst the highest ranked car brands for quite some time.
People seem to get the wrong impression that a gentleman should “walk but never run”. Well,
the Mercedes SL63 AMG begs to differ. This roadster comes with a dual personality that makes
up its best asset.
The SL63 AMG has a magical effect on long distances, treating you with a superb GT attitude.
It doesn’t even care if you fold its top. This is one of the best foldable roof vehicles we’ve ever
driven. If the weather allows it, you can drive it in open-air mode for many hours. And even
when the sky protests, you‘ll be able to use its clever roof to let the light come in.
This Mercedes also tickles your senses with a never-ending torque story. Sure, it doesn’t have
an ultra-sharp response, but it packs enough heat to cause pleasant disturbance.
75
And, for all its firepower, the SL63 AMG is a pretty practical machine. This is the one asset
that makes it win the battle with the Mercedes SLS AMG. Of course, it’s hard to believe that
the two will ever share customers. In fact, the SLS will most likely go out of production in
2014.
What’s more, the AMG bits and pieces are well built into the SL. However, engineering can’t
buy character and this exposes the dark side of the Mercedes SL63 AMG.
With a starting price of $216,725 or EUR159,400, this is one purchase you’ll feel. And when
you’re playing at this level, you may want to feel something a bit more special. Call it drama,
call it noblesse, but it’s somehow missing.
Speaking of missing requirements, the Mercedes SL would probably expand its reach by a
great deal if it would add another pair of seats. Even a “+2” arrangement such as that of the
Porsche 911 would do.
In the end, the Mercedes SL63 AMG takes the SL’s melange between the German way and the
American spirit further in a brilliant way. Let’s look at that long hood once again.
76
SUGGESTIONS
 Prompt delivery of the vehicle should be made.

 Top priority must be given to taxes and long distance vehicles then local vehicles.
 Facilities like A/C. News papers, Drinking water and weeklies must be provided and they
must be up to the standards in customer waiting room.
 MG Brothers must advertise it self about its service station by having boarding mainly at
sales point and at customer waiting room.
 A separate phone must be made available to deal with customers to inform them whether
the service station is ready to accept their Vehicles for service
 The organization must appoint persons to deal with the customers in phone and to explain
the customers about the job done at the time of delivery.
 Shelter must be their while going through job card.
 The organization must instruct the workers not only to considers the job card they must
also go through the vehicle and if they find and things extra jobs to be done them they must
inform the owner and they must entire it in job card and then go through the work.
 Labour charges should be decreased
 Service reminders should be sent regularly
 Billing should be made faster.
 People should purchase Mercedes-Benz due to the fact that their brand ranking is like no
other and has been for a long time.
 Mercedes-Benz is never going to decline in brand value, which is why you should trust
such a well-know car brand when purchasing your next vehicle.
 If brand rankings mean anything to a potential customer, Mercedes-Benz is the car to
purchase, as it is a consistent top rank amongst several other big name car manufacturers.
77
CHAPTER - 6
LIMITATIONS OF THE STUDY

As said a basic research was conducted at the company to enable the company to assess how
far the customers are satisfied with product and services of Mercedes-Benz. During the course
of the study the following limitations were observed:
 It is very difficult to check the accuracy of the information provided.
 Since all the products and services are not widely used by all the customers it is
difficult to draw realistic conclusions based on the survey.
 All the secondary data are required were not available.
 The method will be unsuitable if the number of persons to be surveyed is very less as it
will be difficult to draw logical conclusions regarding the satisfaction level of
customers.
 Interpretation of data may vary from individual depending on the individual
understanding the product features and services of the company.
78
BIBLIOGRAPHY
BOOKS:
 Mercedes-Benz Safety Innovations". Theautochannel.com. 13 September 2010.

Retrieved 26 September 2010.
 Daimler AG Investor Relations Archived 18 August 2011 at the Wayback Machine.
 "Behind the Scenes: Mercedez-Benz AMG". Motortrend.com. 26 February 2007.

Archived from the original on 10 August 2010. Retrieved 26 September 2010.
 "Mercedes-AMG: unique, top-quality model line-up is popular worldwide".

Media.daimler.com. 10 April 2000. Turn JavaScript off to see archived page. Archived
from the original on 14 April 2010. Retrieved 12 March 2011.
 "The history of Mercedes-AMG GmbH". Media.daimler.com. 20 December 2000.

Archived from the original on 25 February 2010. Retrieved 26 September 2010.
 "This Is Tesla's Big Chance In China. Will It Be Blown Again?". Forbes. 8 September
2016. Retrieved 8 September 2016.
Magazines & News Papers:
- Hindustan Times
- India Today
- Business Outlook
WEBSITES:
 https://www.mercedes-benz.co.in/
 https://en.wikipedia.org/wiki/Mercedes-Benz
 http://www.strategy-business.com/article/00269?gko=48bd9
 http://www.marketwatch.com/investing/stock/hmc/profile
 http://freepestelanalysis.com/pestelpestle-analysis-of-Mercedes-Benz/
79
ANNEXURE
QUESTIONNAIRE FOR THE SURVEY
Name : Himanshu Dubey
Age : 37
Contact No +91-9717301746
Address : House No- 23/G, Greater Kaiash, New Delhi - 110048

a) TV Ads b) Existing customers
c) Magazines d) Friends
e) Internet
2. What is your Perception about Mercedes-Benz?
a) Good b) Ordinary
c) No Comments d) Poor
a) Performance b) Look
c) Availability d) Price
e) Maintenance f) Brand image
g) After sale service
4. Decision influenced by to purchase Mercedes-Benz?
a) Parents b) Self
c) Friends d) Relatives
e) Others
5. Mercedes-Benz has Good Quality?
a) Strongly agree b) Agree
c) Neither agree d) Disagree
6. Which feature of Mercedes-Benz attracts you more?
a) Good looking b) Price
c) Less power consume d) Stylish
80
e) Etc
7. Why do you use Mercedes-Benz ?
a) Good price b) Better quality
c) Easily available d) Diversified categories of product
8. How many years have you been using Mercedes-Benz ?
a) 1-2 Yrs b) 2-3 Yrs.
c) 3-4 Yrs d) More Than 4 Yrs
a) Yes b) No
a) Status Symbol b) For Pleasure
c) Transportation d) Adventure
e) Any other
11.: On the basis of price and feature comparison, is Mercedes-Benz economical?
a) Extremely Agreed b) Highly agreed
c) Agreed d) No Comment e) Disagreed
12. What is the selling scale System of Mercedes-Benz ?
a) Excellent b) Good c) Fair
d) Poor e) Very poor
a) Need b) Entertainment
14. Sale of Mercedes-Benz?
a) Rural Area b) Urban Area
e) Any other
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15. Do you think Mercedes-Benz and its products fulfills all your expectation?
a) Yes b) No
16.What made you to buy this vehicle?

a) Model
b) Price
c) Quality
d) Brand Name
e) Other Benefits
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A

“A STUDY OF CUSTOMER SATISFACTION AND

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

INSTITUTE OF MANAGEMENT TECHNOLOGY,

UNDER THE GUIDANCE OF SUBMITTED BY

ENROLLMENT No: 1811200037

Area of S pec i a li z a tion ( R el a ted to P r oj ec t ) __ __ _ ________ __ _ ___ ___ __ ___ __ _ ______

Title of Project Report ___________________________________________________

Subject code: IMT52/IMT-PRJ01/IMTPRJ02

PROJECT SUBMISSION FORM

1. Photocopy of Approved Synopsis

Roll Number: __ ___________________ D a te: ___ __ ____ ___ ___ ___

Area of Specializa tion r el a ted to Project: _____________________________________

STUDENT IDENTITY CARD

Enrolment No: 1811200037

Name: ANWAR KHAN

Father Name: SAGIR AHMED

/> DOB: 8/28/1994

Course Code: PGDM

Valid Upto: 12/31/2019

Address: C-31 SECTOR 6 NOIDA UP Mail Pin

completed project work on “A STUDY OF CUSTOMER SATISFACTION AND

CUSTOMER DELIGHT IN MERCEDES-BENZ” Under my guidance and

MBA (72%) : IGNOU Correspondence, (2017)

Senior Executive : Mercedes-Benz, Since Sep15

Place: New Delhi Gurpreet Singh

I would like to thank the employee of Mercedes-Benz for constant guidance

extended to me throughout the duration of my training.

collecting necessary information and making of the report. I am grateful to

all of them for their time, energy and wisdom.

SATISFACTION AND CUSTOMER DELIGHT IN MERCEDES-BENZ” has

been prepared by me under the guidance of my project Guide Mr.

in the report hold true to the best of my knowledge.

Place: New Delhi ANWAR KHAN

Enrollment No: 1811200037

TOPIC- Evaluation & Comments

OBJECTIVE- Evaluation & Comments

Methodology: Secondary Data

METHODOLOGY- Evaluation & Comments

Conduct survey to collect data

1. How you aware about Mercedes-Benz?

QUESTIONNAIRE- Evaluation & Comments

References: Ms- Excel Ms-Access Ms-Word

CHAPTERIZATION- Evaluation & Comments

Profile of Project Guide

PROJECT GUIDE- Evaluation & Comments

Approved with Modification

Faculty Name: Ganesh Dash

NUMBER TOPIC PAGE NO.

1.2 Objective & Scope of the Study 07

1.3 Company Profile 08-31

1.4 Industry Overview 32-36

CHAPTER 2 RESEARCH METHODOLOGY

2.2 Sampling Techniques & Tools for Analysis 38-41

CHAPTER 3 LITERATURE REVIEW

3.2 Literature Review 47-56

4.1 Data Analysis & Interpretations 57-72

4.2 Findings 73-74

CHAPTER 5 Conclusions & Recommendations 75-77

CHAPTER 6 Limitations of the Study 78

CHAPTER 8 Appendices 80-82

CUSTOMER DELIGHT IN MERCEDES-BENZ”

INTRODUCTION OF THE PROJECT

Area of S pec i a li z a tion ( R el a ted to P r oj ec t ) _ ______ _ _ _ _ __ _ ______

Roll Number: _______________ D a te: _ _ _ _