SYMBIOSIS INSTITUTE OF

BUSINESS MANAGEMENT

Research Methodology
(Assignment 1)

Prepared by-
Binish Siddiqui
PRN: 19021141032
 Kia Motors
(Research problem and Hypothesis
Formulation)
Introduction

Kia Motors Corporation was founded in 1944 and is Korea's oldest

manufacturer of motor vehicles. Over 3 million Kia vehicles a year are
produced at 14 manufacturing and assembly operations in five countries which
are then sold and serviced through a network of distributors and dealers
covering around 180 countries.

In 2018, Kia had the agenda to concentrate at the lucrative end of the Indian
market. The plan was to produce a strategic compact sedan and compact SUV
especially for the Indian market at the new plant (in Andhra Pradesh), which
will occupy around 23 million square feet and incorporate facilities for
stamping, welding, painting and assembly. The site is also home to numerous
supplier companies’ facilities. Localisation steadily increased from time to time.
With a US$1.1 billion investment, the manufacturing facility began production
in the second half of 2019 and produced up to approximately 300,000 units each
year.

The first Kia car that anybody could buy was towards the end of 2019. Till then
as per expectation, Kia showcased their global range like the Soul, Stonic,
Picanto, Rio, Sportage etc.

Performance of Kia Motors in India after its launch

Kia Motors India’s strong performance in November 2019, when it sold 14,005
Seltos SUVs, has given a boost to Kia Motors’ global sales. With this, the
made-in-India Seltos has notched cumulative sales of 40,581 units in barely four
months, which gives it a monthly sales average of 10,145 units. Unsurprisingly,
the Seltos already made it to India's bestselling SUVs list in October, taking the
crown from the Maruti Suzuki Vitara Brezza.
This has been a very solid start for a new brand in the Indian market. The SUV's
robust performance gave Kia Motors India a 4.85 percent UV market share till
end-October.
Kia Motors India says it has received over 60,000 bookings for the Seltos until
now and, to ensure timely deliveries, has started a second shift at its
manufacturing facility in Anantapur to ramp-up overall production. The
company says that it will not close bookings of the model as their plant is fully
capable of meeting the rising consumer demand for the Seltos.

Kia’s Seltos is BS 6 compliant from day one and is available in both petrol and
diesel variants. With both manual and automatic options in all powertrains, it
makes it an attractive proposition.
“Getting such an overwhelming response from customers across the 160 cities
where we are present, makes us elated. We are committed to the Indian market
and to delivering the best and class leading products. With our most modern
automotive plant having three lakh capacity, we are fully prepared to make on
time deliveries and uphold the trust our customers have shown in us," said
Bhatt.
The Seltos, launched in India in August, was met with strong sales. A total of
40,649 units have been sold as of November 2019.

Some positive customer reviews-

 “I am proud of the owner of the Kia Seltos HTK+ petrol variant, it is the
most comfortable car in its segment as well as has great driving and
handling characteristics. Kia has provided all the necessary features at a
competitive price but I feel that it should have provided some features
like armrest and charging port for rear passengers too in this particular
model. Overall it is a great car and could have improved in the back seat
experience at this price.”

 “This is the most beautiful car, The design of the Kia Seltos is much
richer and newer than other SUV vehicles in India, as well as being
sporty. Very good quality has been used in this. Its front is a quite bold
while from the side and back it looks quite premium.”
  “The price-performance ratio is better than MG, Creta and other
opponents as its size and modern features are very reliable. The wireless
charger is also not a common feature. Its infotainment system is of Bose
which is commendable. Also, it's an affordable car of its segment.”
 “In one word it's a superb car. The interior and exterior both are superb
and have a good suspension. Good space, color combination is also good
and look-wise it's superb. The driving experience is ultimate so far.
Highly recommended.”
 “Nice look & features as well. Not all good features available in all the
top models. Hi-tech. support features.”

 “Very wonderful design and technical development are too high this type
of car, and also so many features available in the vehicle, more options
and more model, vehicle looking is good. I'm seen the car at road very
nice and fantastic road presence, one of the my lovely car of this segment,
thanks to KIA motors I'm waiting for next Carnival car, also need your
finances scheme and offer for upcoming month because of India people's
expected in this type of offers, Fall in Love this car, thanks for legend Kia
motor, one of the day I'm seeing a wonderful day, and also provide low-
level price in this market please let me know if you best in Seltos car,
love you Seltos love you so much buddy.”
 “This car is a very wonderfully design by Kia motors. Its headlights are
very attractive and the front view of the car is very amazing. Kia Motors
are giving the best function in this car of a 360-degree rotating parking
camera with sunroof and also 6 airbags. The wooden finish in the interior
of this car is very fabulous. Very luxurious sitting in the car.”

7 Common Problems Kia Seltos Owners & Prospective Buyers

Facing In India-

Kia Motors India Limited made an impressive debut in the domestic market
with the Seltos that went on sale in August 2019. With bookings crossing more
than 60,000 units and the total sales in October leading to the mid-size SUV
becoming the most sold SUV in the country, this is a kind of a start only a few
manufacturers could dream about. However, for any new brand to have a
credible tenure in the market, it is significant to gain the trust from the
customers on the long term bringing the service, support and other criteria into
perspective. But, Kia appears to be having none of that and some of the claims
made by owners are nothing but extremely sore and here are the seven things
we got to know from the social media:
1. Wrong Delivery Commitment:
In the social media forums and group, the Seltos’ owners have expressed
their displeasure over the company. Wrong delivery commitment is one of
the primary complaints as Rajiv Mittal who booked GTX diesel variants a
couple of months ago is still waiting for an answer from the South Korean
brand on the delivery date and he might consider cancelling the reservation.
He wasn’t the only one raising such claims.
2. Seemingly No Time For Accident Repairs:
Rahul Kharjul lamented of the lack of customer service and after-sales
support from Kia. His newly purchased Seltos was involved in an accident
but in the name of getting it repaired, the vehicle rests in Kia’s workshop for
more than two weeks without any fix due to the unavailability of parts.
Shailesh Meena Gothada’s case was even worse as his damaged Seltos in an
accident is left unattended for two months at the service centre as there is no
availability of parts in New Delhi and he drove his vehicle for only three
days after the purchase sadly.
3. Shockingly Terrible Mileage (1.4 DCT):
Rajiv Paul was one amongst the many owners who were shocked by the poor
mileage. On a tank-to-tank scenario, his Seltos DCT variant returned only
7.7 kmpl and he wrote that he drove on a relatively traffic-free route for 450
km in the city with an average speed of 40 kmph. He was on Eco mode and
perplexed over whether it happened due to his driving style or the car.
4. Defective Car Delivered:
Amit Tanwar, owner of Kia Seltos DI VGT 6AT HTK+ from Udaipur,
Rajasthan had the infotainment screen shut off while travelling to Dahod.
After a couple of attempts at as many service centres and having waited for
three hours on each occasion, the issue was fixed – only for it to happen the
next time the wheel of the Seltos was turned. This time, a yellow warning
light came out and the owner was asked to drive only at 80 kmph. Despite
maintaining the speed, in the middle of a highway, white smoke poured out
of the central AC vents and the driver was lucky enough to get away unhurt
and it could have been fatal. As Kia has not responded properly, the family
could take the matters to consumer court and ask for a full refund for selling
them a “defective” product that could have led to a fatality and creating
“mental harassment”.
5. Technical Glitches:
The Seltos does seem to have its share of technical glitches as well. While on
cruise control, Som Shekhar Singh applied brakes instead of disengaging the
system to lower speed. He claimed that the accelerator pedal got disengaged
instead and the SUV grounded to a halt.
6. Lacklustre DCT And Over Heating Issues:
Mehul Rastogi purchased his Seltos GTX+ DCT only a couple of weeks
back. When he was on traffic situations, the SUV showed heat warning and
the Kia personnel advised him to put the car on P or N during such jammed-
up scenarios and it is plainly ridiculous. Siddharth Jain put forward the
similar issue by posting the picture of the warning message that read:
“Transmission temperature is high! Stop safely”. He drove his GTX+ Seltos
from Noida NCR to New Delhi in about five hours covering 100 km.
7. Infotainment System Hangs Often:
Another Seltos owner, Pradeep Khaire, claimed that he drove from Pune to
Malwan for about 450 km only to have the touchscreen infotainment system
hanging often. While the Seltos was smooth on even tarmac, he said even the
slightest of potholes and bumps resulted in the display hanging for good. He
had to pull over and wait for five minutes and restart the Seltos to have it
fixed every time the issue cropped up. It’s pivotal to create a good brand
image for any new company and instead of targeting sales numbers, Kia
should concentrate on providing credible service and after sales support for
long term success like Maruti Suzuki, Hyundai and Toyota and not repeat
the mistakes of fellow global brands like Fiat and General Motors.
Formulate Research Problem

MANAGEMENT DECISION PROBLEM-

Q) What measures should be taken by the management of the company to

overcome certain issues raised by some of its customers?

RESEARCH PROBLEM-

Q) Are services reaching the customers on time?

Q) Are the after-sales services being provided by Kia Motors effective enough?
Q) Which are the service centres receiving maximum number of complaints?

COMPONENTS OF RESEARCH-

1) Unit of Analysis
The individuals from whom the research information can be collected are:
 customers of Kia Motors.
 Service centres of Kia Motors
 Complaint handling department of Kia Motors

2) Research Variables
Dependent Variables-
 Customer buying experience
 Customer perception of their cars
 Sales of Kia Motors cars
Independent Variables-

 Attitudes of people towards vehicles.

 Demographic environment of customers
 Moderating variables-

 Age group of customers

 Education level

Intervening variables-

 Craze for cars in youth.

 Customer Loyalty

Extraneous variables-

 Ratio of complaints received on per year basis

 Terms and Conditions of Guarantees
 Terms and Conditions of the Warranties

FORMULATION OF RESEARCH HYPOTHESIS:

We are here conducting a Descriptive Hypothesis.

Ho= Most customers are happy with Kia Motors’ after-sale services
Ho= Customer dissatisfaction will drastically affect sales in coming years
Ho= Immediate actions are taken on receiving a customer complaint
Ho= Consumer dissatisfaction will have impact on future purchase decisions.
Ho= Service providers do their work efficiently and on time.
Ho= Competitors with better after-sales services will steal customers from Kia
Motors.
Thank You