INSTITUTE OF MANAGEMENT SCIENCES

University of Jammu

SESSION 2018-2020

A PROJECT REPORT ON

“​CUSTOMERS SATISFACTION TOWARDS PRODUCTS AND

SERVICES OF MARUTI SUZUKI”

SUBMITTED BY: ARJUN PANDIT

MBA 3​RD​ SEMESTER

ROLL NO: 0414MBA13

UNDER THE SUPERVISION OF

Dr. Divya Singh Jamwal

 ​CERTIFICATE BY GUIDE

This is to certify that work entitled project “CUSTOMER SATISFACTION TOWARDS

PRODUCTS AND SERVICES OF MARUKI SUZUKI” ​is done by ARJUN PANDIT under
my guidance and supervision for the partial fulfilment of degree of MBA, Institute of
Management Sciences, Jammu.

This report has not been submitted to any other university or institution for the award of any
degree/ certificate.

PROJECT GUIDE

Dr. Divya Singh Jamwal

 ​ACKNOWLEDGEMENT

It gives me immense pleasure to present the report of my project titled “​CUSTOMER

SATISFACTION TOWARDS PRODUCTS AND SERVICES OF MARUKI SUZUKI”. I
am highly grateful to Dr. Divya Singh Jamwal for providing me this opportunity to carry out
this project. I wish to express my deep gratitude and sincere thanks to the management of the
MARUTI SUZUKI PEAKS AUTO JAMMU PVT LTD. for providing me an opportunity to
work as a summer trainee in their company.

ARJUN PANDIT

MBA 3​RD​ SEM

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 ​ ​DECLARATION

I undersigned, hereby declare that this project report entitled “​CUSTOMER

SATISFACTION TOWARDS PRODUCTS AND SERVICES OF MARUTI SUZUKI‘’
under the guidance of Dr. Divya Singh Jamwal is my original work. ​The matter presented in
this report has not been copied from any source. I also declare that all the data, charts,
diagrams are all facts and genuine .The findings on this report are collected by me. Also this
report has not been submitted earlier for the award of any degree or diploma. All the
endeavours put in the completion of the task are genuine and original to the best of my
knowledge.

ARJUN PANDIT

MBA 3​RD​ SEMISTER

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 EXECUTIVE SUMMARY

The automotive industry comprises a wide range of ​companies​ and ​organizations​ involved in
the ​design​, ​development​, ​manufacturing​, ​marketing​, and ​selling​ of ​motor vehicles​. ​Maruti
Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile
manufacturer in India ​.This research study deals with the “Customer satisfaction towards
products and services of Maruti Suzuki”.

The first chapter introduces the main topic of this study- The concept of customer satisfaction
with respect to products and services of Maruti Suzuki have been explored. In the second
chapter a detailed profile of organisation under study –company profile has been provided.
The various products and services offered by the organisation are also discussed.

In the next chapter a small Literature Review has been done where different studies on the
Customer satisfaction have been explored. The following section discusses the Research
Methodology for this study wherein research objectives, research design (descriptive),
sampling design (convenience) and sample size (50) have been described. The questionnaire
tool has been used to collect sample data and have used Likert scale to get the responses.
Finally pie charts and means have been used to analyse the data.

The next chapter shows the data analysis in detail where each question is separately analyzed.
The major findings and suggestions are covered in the next section followed by conclusion
and limitations.

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6
 ​TABLE OF CONTENTS

S.NO. TOPICS PAGE NO

1 Acknowledgement i

2 Declaration ii

3 Executive Summary iii

4 Introduction 1-6

5 Company Profile 7-20

6 Review of Literature 21-24

7 Research Methodology 25-32

8 Data Analysis& Interpretation 33-48

9 Findings 49-50

10 Conclusion ,Suggestions & Limitation 51-54

11 References 55-56

12 Appendix ​57-60
 CHAPTER 1

INTRODUCTION

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 CUSTOMER SATISFACTION

As organizations become increasingly customer focused and driven by demand, the need to
gain customer loyalty and retain their loyalty is critical. Customer satisfaction is the most
effective way to achieve customer loyalty. Customer satisfaction and customer loyalty share
many similar traits. Customer value is the customer‘s perception of the ratio of benefits to
what he or she gives to obtain those benefits. The customer Value Triad is a framework used
to understand what it is that customers want. The framework consists of three parts: (1)
perceived product quality, (2) value-based pricing, and (3) perceived service quality.

Customers are satisfied, when value meets or exceeds expectations. If their expectations of
value are not met, there is no chance of satisfying them. Figuring out what the customers
want, however, is a difficult and complex process. To be able to create and deliver customer
value is important to understand its components. On the most basic level, value from a
customer‘s perspective is the ratio of benefits to the risks being taken while buying the
product.

According to Harold E Edmondson ― “Customer Satisfaction” seems to appear in print more

frequently than any other catch phrase used to describe a new found magic for industrial
success. Before we proceed in to the study of the dynamics of Customer Satisfaction it is
important to know about, who a customer is and what satisfaction really means.

Who really is a Customer​?

The question of defining who your customers are seems fairly easy particularly if you have
segmented your market properly and understand who you are trying to satisfy. However
subtlety that frequently goes undetected by many firms is that is that customer set can be
divided into two parts, the apparent customer and the user.

The apparent customer is the person or group of people who decide what product to buy and
basically have control over the purse strings. The user is a person or group who physically
uses the product or is the direct recipient of a service.

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As in defining customer above, defining satisfaction also appears simple. However as with
customer there is a subtlety that needs addressing. Satisfaction by most definitions simply
means meeting the customer‘s requirement.

Customer satisfaction is a concept that more and more companies are putting at the heart of
their strategy, but for this to be successful they‘re needs to be clarity about, what customer
satisfaction means and what needs to happen to drive improvement.

Without this, there is a risk that customer satisfaction becomes little more than a good
intention, with confused objectives failing to address the real issues for customers, one
helpful way to look at the problem is to rephrase the objectives: set the sights on helping the
customers meet their goals. Customer satisfaction can be defined in many different ways.
Finding the right way for a company depends on understanding your customer and on having
a clear vision of the role that customer satisfaction is to play in the strategy.

For example, a focus on customer satisfaction can work alongside existing segmentations to
support revenue generation from high value customers or it can be a company- wide
objective rooted in the brand values. For the former, it may be sufficient to focus on
improving customer service, but for the latter a broader definition of customer satisfaction is
necessary, closer akin to corporate reputation. Whatever the strategy for customer
satisfaction, it must at least include getting the basics right. Failing to achieve this can destroy
the reputation as well as losing valuable customers. Every customer, regardless of their
economic worth to the business, has the power to influence – positively or negatively – a
company‘s reputation. Once the objectives for the customer satisfaction strategy are defined
there are a number of steps we can take to make sure the focus on customer satisfaction is
effective.

Building a company around Customer Satisfaction - With the increase in customer‘s

demands and competition it has become a lot more important to base the entire company on
customer service. When doing this one must first realize that every member of an
organization plays an active role in customer service. This includes both external customers
and internal customers within a company. Customer focused organizations focus both on
customer satisfaction and profit. Achieving customer satisfaction generates the profit. In
these organizations top management has frequent contacts with external customers. The top

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management uses consultative, participative, and supportive management styles to get
through to the customer. The staff focuses all of its attention on satisfying the customer‘s
needs. However, the management‘s job is to provide the staff with support necessary to
achieve these goals. The other department and staff in the organization that do not have direct
contact with the external customers deal exclusively with internal customer satisfaction.

The satisfaction drivers

In 2006, a research study has identified a powerful set of five factors that drive satisfaction.
This model should be seen as a tool to help all those involved in delivering and monitoring
the areas that are important to their customers (mostly in the public services thought it can be
extended to other sectors of the economy). The drivers of client satisfaction are listed here in
order of importance. They include;

1).Delivery – the service delivers the outcome it promised and manages to deal with any
problems that may arise. “I got what I needed.”

2).Timeliness – the service responds immediately to the initial customer contact and deals
with the issue at the heart of it quickly and without passing it on between staff. “I was
satisfied with the amount of time it took to get the service.”

3).Professionalism – staff are competent and treat customers fairly. They are prepared to go
the extra mile to give us the extra smile.

4).Information – the information given out to customers is accurate and comprehensive and
they are kept informed about progress.

5).Staff attitude – staff are friendly, polite and sympathetic to customers’​ needs.

Quality and satisfaction are very often inter-related. As said earlier, the term “customer
satisfaction” became popularized in the 1980’s with the total quality movement. Customer
Driven Excellence and Customer Focused Results remain important aspects of the Baldrige
National Quality Programme.

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However, it is a fact that there exists a gap between these two concepts. According to Cronin
and Taylor (1992), this distinction is important to both managers and researchers alike, since
service providers need to know whether their objective should be to have consumers which
are satisfied with their performance or to offer the reinforce customer service excellence.

Many of the theorists of customer satisfaction like Oliver and Rust viewed that satisfaction is
a highly personal based assessment and as such, it emerges as a response to a single or
prolonged set of service encounters.

The Influence of the salesperson in Customer Satisfaction

In an article titled, ―The influence of salesperson selling behaviour on customer satisfaction

with products,‖ Brent G.Goff and James S. Boles examine the effects of non-product related
construct on customer satisfaction with major retail purchases such as automobiles. The
article states that salesperson‘s selling orientation- customer orientation (SOCO) will affect
not only consumer satisfaction with the salesperson and dealer, but also indirectly,
satisfaction with the product or manufacturer.

Customer satisfaction leads to future purchases, and repeated purchases of the same product
from the same source. In other words, it helps a firm retain its present customers and build
loyalty. By helping a buyer obtain product information and providing guidelines about what
should be expected during the buying process and use of a product, a salesperson may
influence customer expectations concerning the product. Thereby this may reduce the
likelihood of dissatisfaction (Grewal and Sharma, 1991). A successful salesperson tailors to
the needs of each individual customer. By being customer-oriented, a salesperson is likely to
identify with needs of the customer, enabling the salesperson to match his or her presentation
to those requirements of the customer.

Internal Marketing – how it affects Customer Satisfaction

Successful companies make every effort to ensure satisfaction to their customer by focusing
all organizational efforts of the company on providing superior customer service. By doing
this these companies hope to retain their existing customers and 6 attract new ones. Only
angle of customer satisfaction commonly overlooked is the internal aspect. The internal

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customer or employee plays a vital role in achieving customer satisfaction and loyalty. Some
firm‘s do not understand that the treatment of internal customers becomes the external
customers‘ perception of the company. A firm‘s employees or other departments within the
organization make up its internal customers. Their job performance affects the firm‘s ability
to deliver superior product and customer service (Boone and Kurtz, 1999). When a firm‘s
employees are happy at work, their overall attitude and performance towards the customer
enhances tremendously. Internal marketing helps members or employees of an organization
understand and fulfil their roles in implementing its marketing strategy. Internal marketing
not only keeps employees happy, it also shows them how their actions affect the firm‘s ability
to achieve customer satisfaction.

Customer Satisfaction as part of Service Profit Chain​:

A Harvard Business Review article outlines the internal process required to drive growth and
increase profitability. The article describes the ways in which service quality contributes to
success, outlining the steps in the ―Service-profit chain: In this world of competition any
organization cannot avoid Customers. It has become a necessity for an organization for its
survival in any industry so that customer satisfaction plays important role in each an every
product life cycle ​In today’s business world, as most firms are adopting a market oriented
strategy, we raise the debate that whether improvements in customer satisfaction will boost
firms profitability. Much evidence shows that there is strong positive relationship between
these two​A satisfied customer, who has experience good quality service, will normally
recommend the product to others, repeat purchase and even try line extensions as said earlier.

Customer satisfaction survey for Maruti Suzuki is the project conducted for Maruti Suzuki
peaks auto pvt. Ltd in city of Jammu . Today Companies are facing toughest competition
ever. The intense competition makes the companies to take the necessary steps. To retain
their existing customer as well as attract new once. In the environment of advancement of the
technology the companies are trying hard to keep the pace with latest development. This
survey will help the company to know the customers satisfaction level and feedback of
customers at the product .It will also help company to know about the competitors. This will
help company to know about wants and expectation of customers.

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 CHAPTER 2

COMPANY PROFILE

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Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile
manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle manufacturer
Suzuki Motor Corporation. As of January 2017, it had a market share of 51% of the Indian
passenger car market. Maruti Suzuki 36 manufactures and sells popular cars such as the Ciaz,
Ertiga, Alto, Swift, Celerio, Swift Dzire and Omni. The company is headquartered at New
Delhi.In February 2012, the company sold its ten millionth (ten million = one crore) vehicle
in India. Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by the lack
of an efficient public transport system.

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Suzuki Motor Company was chosen from seven prospective partners worldwide. This was
not only due to their undisputed leadership in small cars but also to their commitment to
actively bring to MUL contemporary technology and Japanese management practices (which
had catapulted Japan over USA to the status of the top auto manufacturing country in the
world). A license and a Joint Venture agreement were signed between Govt of India and
Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The objectives of MUL then were: Modernization of the Indian Automobile Industry,
Production of fuel-efficient vehicles to conserve scarce resources, Production of large number
of motor vehicles which was necessary for economic growth.

OBJECTIVE OF THE COMPANY

Maruti’s marketing objective is to continually offer the customer new products and services
that: reduce the customer‘s cost of ownership of their cars; and anticipate and address the
customer‘s needs and preferences in all aspects and stages of car ownership, to provide what
they refer to as the ―360degree customer experience .They sell ten models with more than
50 variants in segments A, B, C, and utility vehicle segment of the Indian passenger car
market. Of these, they manufacture nine models and import the Grand Vitara as a completely
built unit from Suzuki in Japan. Their models and variants are designed to address the
changing demands of the market and are periodically upgraded in technology, styling and
features. To take advantage of the brand recognition associated with their products, they
retain the brand name of the product through various stages of product upgrades overtime.
For example, the version of the Maruti 800 brand currently sold in the market is a

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significantly upgraded version, in terms of technology, design andstyling, of the Maruti 800
launched in 1983.

THE REVOLUTION

Maruti created history by record production in 13 months. On 14 December 1983, the then
Prime Minister of India, Mrs. Indira Gandhi, handed over the keys of the first car to Mr.
Harpal Singh of Delhi. Volume targets were routinely exceeded, and in March 1994, it
became the first Indian company to produce over one million vehicles, a landmark yet to be
achieved by any other car company in India. Maruti is the highest volume car manufacturer in
Asia, outside Japan and Korea, having produced over 3.5 million vehicles by December
2001.

Maruti is one of the most successful automobile joint ventures, and has made profits every
year since 37 inception till 2000-01. In 2000-01, although we generated operating profits on
an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book
loss. We are again on track for profits in 2001-02, with a profit of Rs 300 million in the first

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half. In this period, sales were increased by 5.3%, against an industry decline of 6.1 %. We
revolutionized the wav Indians looked at cars. "No other car company so completely
dominates its home market" - (The Economist). Despite there being 11 companies now in the
passenger car market, Maruti holds about 60 % of the total market share.

MUL is also the first and only car company in the world to lead its home market in terms of
both market share and in the JD Power Customer Satisfaction study (JD Power Asia Pacific
2000 India Customer Satisfaction studies).

​TRANSFER OF TECHNOLOGY

Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that the
transfer of contemporary technology from our partner Suzuki is a smooth process. Great
stress is laid on training and motivating the people who maintain the equipment, since the
best equipment alone cannot guarantee high quality and productivity.

From the beginning it was a conscious decision to send people to Suzuki Motor Corporation
for on-the-job training for line technicians, supervisors and engineers. This helps them to
imbibe the culture in a way that merely transferring technology through documents can never
replicate. At present 20 % of our workforce is trained under this program.

OUR ETHOS

Our employees are our greatest strength and asset. It is this underlying philosophy that has
moulded our workforce into a team with common goals and objectives.

Our Employee-Management relationship is therefore characterized by: Participative 38

Management, Team work, Kaizen, Communication, Information sharing, and an open office
culture for easy accessibility to implement this philosophy. We have taken several measures
like a flat organizational structure i.e. there are only three levels of responsibilities ranging
from the Board Of Directors, Division Heads to Department Heads. Other visible features of
this philosophy are common uniforms (at all levels), and a common canteen for all.

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This structure ensures better communication and speedy decision making processes. It also
creates an environment that builds trust, transparency and a sense of belonging amongst
employees

PERFORMANCE

In more ways than one, the year 2004-05 was a watershed year for Maruti UdyogLimited
(MUL). The company has consolidated and initiated a new growth momentum. There have
been several developments, of which it is useful to begin with three.

First, driven by renewed vigour and aggression in the market, Maruti recorded its highest
ever sales of over 4.72 lack vehicles in the domestic & export markets which resulted in gross
sales revenue of Rs.112,840 million — a growth of 25.8 per cent over 2003-04. It is the
highest top-line growth in the last seven years.

Second, this high sales growth, coupled with significant improvements in operational
efficiencies, has translated into much higher returns on investment. Earnings per share(EPS)
more than trebled from Rs.5.14 in 2003-04 to Rs.18.77 in 2004-05.

Third, the Government of India divested a majority of its shares through an initial public
offer(IPO) and made way for greater participation from the shareholders in the fortunes of
India‘s leading passenger car manufacturer.

In a nutshell, therefore, 2004-05 marks the beginning of a new journey for company, as it
restructured itself in the face of stiff competition and entered a new high growth phase.

The sharp revival in the Indian economy — from 4 per cent GDP growth in 2003-04to 8.2 per
cent in 2004-05 — has definitely assisted company in increasing revenue. This is the highest
GDP increase recorded by India since the advent of economic liberalization, and the country
has become one of the fastest growing economies of the world .This has considerably
increased per capita disposable income which, coupled with much easier availability of
significantly cheaper consumer finance, has driven automobile sales.

Historically, the fortunes of automobile industries across the globe are strongly correlated
with macro-economic parameters and the performance of the industrial sector. Chart A plots

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growth in GDP, industry, passenger vehicle (PV) sales volumes and total automobile sales
volumes – and emphasizes this correlation. In 2004-05,the Indian passenger car and
multi-utility vehicles market finally reached efficient scales of nearly a million. Although the
improved economic environment

​PRODUCTS & SERVICES

​MARUTI 800

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ECONOMY

Great technology enables the Maruti 800 to deliver great fuel efficiency. The Maruti 800 has
topped every fuel efficiency survey that has been conducted in the past. The Maruti 800 has
the lowest fuel cost per kilometre of any petrol car in the country with a cost of Rs1.94 per
kilometre This confirms the position of the Maruti 800 as the most fuel efficient petrol car in
the country and Maruti also launched their LPG model which is more economic than others.

MARUTI OMNI

FOR THE FAMILY

This car position itself in the mind of consumer as a family car.

The punch line of the car is ―total solution of the entire family

Reclining front seats with adjustable head restraints let you relax completely. With its ample
44 luggage space, the Omni is equipped for anything.

MARUTI ALTO

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Features are​:

MPFI ENGINE

Plenty of power, great mileage and low emission make the Alto the perfect choice for Indian
roads. The fuel efficiency of the Alto is better than any other vehicles in its class.

RELIABILITY

Here's another first by ALTO, which has been setting records since its introduction in India!
45 Alto becomes the first Indian car to undergo a 24 hours endurance test and sets 13 national
records in the process.

Wagon R COMFORT

. Full flat folding front seats and reclining rear seats allow you to stretch yourself during long
drives. This ensures that you travel in maximum comfort as compared to cramped seating
arrangements in other cars. The McPherson strut suspension in the front and coil springs at
the rear ensures a smooth comfortable drive. It's not just comfort; Wagon R also has a 1061cc
MPFI low friction engine

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SPACE

Nothing cramps the style of the smarter race. That‘s why it prefers the Wagon R. Tall body,
high seats and wide opening doors make it easy to get in and get out. Seven cm taller than the
Santro, the Wagon R offers more headroom, amazing spaciousness and a commanding
driving position. The split rear seating 46 arrangement along with fully reclining front and the
reclining rear seats gives a first class airline seating comfort. The Wagon R comes with an
extra large boot space, which is possible because of its unique design that maximizes space
on a compact platform. Caution, safety and protection are integral to a smarter mindset. And
the Wagon R is designed to satisfy every concern.

​MARUTI VERSA

ONE GREAT DRIVE, TWICE THE SAFETY

The Versa is one of the safest cars on the road. It has safety features to guard your loved ones
from road disasters. Side impact absorbing beams in all 4 doors protect the passengers from
side crashes. Front impact beams between the front pillars and the collapsible steering
column shield you from head on collisions.

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SWIFT DZIRE

The new Swift DZire joined the Swift and SX4 in Suzuki's Indian lineup and is intended to
"redefine the market and stir excitement in the entry level sedan segment". It's a good news
for the consumers because Swift DZire, which comes both in diesel and petrol engines, offers
luxury feature options including integrated stereo, steering mounted audio controls, automatic
climate control and power windows as well. Not only this but, it is also equipped with latest’s
safety features like Dual Airbags, ABS with EDB, collapsible steering column and an d
CATS anti-theft facility. It's true to say that many of these features are being offered for the
first time in this segment in contemporary car market in India.

GRAND VITARA

Grand Vitara is a new segment entered by maruti. Initially they are just in traditional cars
business Grand Vitara is a SUV (sports utility vehicle) with a powerful engine of 2600 cc. It

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is fitted with a MPFI diesel engine. It delivers 4x4 drive. Price charged for grand vitara is
between 13.5 lakh to 16 lakh. It is of premium segment.

MATRIX OF MARUTI SUZUKI

STAR​: The Company has long run opportunity for growth and profitability .They have high
relative market share and high Growth rate. SWIFT, SWIFT DESIREAND ZEN ESTILO is
the fast growing and has potential to gain substantial profit in the market.

QUESTION MARK​: there are also called as wild cats that are new products with potential
for success but there cash needs are high And cash generation is low. In auto industry of
MARUTI SX4, GRAND VITARA, ASTAR there has been improve in the organization
reputation As they want successful not only in Indian market but as well as in global market.

CASH COW​: It has high relative market share but compete in low growth rate as they
generate cash in excess of their needs. MARUTI 800, ALTO AND WAGNOR have fallen to
ladder 3 & 4 due to introduction of ZEN ESTALIO and A STAR.

DOG​: The dogs have no market share and do not have potential to bring in much cash.
BALENO, OMINI, VERSA There business have liquidated and trim down thus The
strategies adopted are that are harvest, divest and drop

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 4P’S OF MARUTI SUZUKI

Product Strategy​:-

Portfolio of 12 products

Five product lines

Product Line Products

A1 800
A2 Alto, Zen ,Wagon –R, Swift, A-star
A3 DZiRE, Sx4
SUV Vitara, Gypsy
C - Class Omni, EECO

Price Strategy​:-

The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti – 800

is the lowest price car of this company. Alto, Omni, Wagon R, are also the low

price car of the company, Zen & Esteem are the mid price car of the company. But

Grand Vitara is the high price model of the company. The price of car is decided

according to its product variety, quality, design etc.

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Place strategy:-

600 New car sales outlets covering 393 cities.

265 ̳Maruti True Value‘ outlets spread across 166 cities.

2628 Maruti Authorized Service Stations, covering 1220 cities.

Tie up with Adani group for exporting 200,000 units through Mnudra port Gujarat

Suggested Place strategy​:-

400 new car sales outlets in next three years.

S150 new true value shops in next three years.

1200 new Maruti Authorized Service Stations in next three years.

Tie up with other distributors for Exports.

Promotion Strategy:-

Advertising

TV Ads
Print Ads
Radio Ads

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 SWOT ANALYSIS OF MARUTI SUZUKI

​STRENGTHS

● Bigger name in the market

● Trust of People
● Maruti Suzuki India Ltd. is the market leader for more than a decade.
● Has a great dealership chain in the market
● Better after sales service
● Low maintenance cost of vehicle

WEAKNESSES

● Exports are not that good

● Lesser diesel models in the market compare to others
● Global image is not that big

​OPPURTUNITIES

● Great opportunities to go global with success of Swift and SX4 all over
● Introduction of more diesel models. The diesel car segment is growing
● Opportunity to grow bigger by entering into bigger car markets

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● Already a market leader so great opportunity to be the king of market in ​every stage of
industry

​THREATS

● Foreign companies entering market; so a bigger threat from​ ​ MNCs.

● To the market share, as many big names are coming in the industry
● There is hardly any diesel models

CHAPTER 3

REVIEW OF LITERATURE

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Keith (1960) defined marketing as ―satisfying the needs and desires of the consumer”.
Hunt (1982) reported that by the 1970s, interest in customer satisfaction had increase to such
an extent that over 500 studies were published. This trend continued and by 1992, Peterson
and Wilson estimated the amount of academic and trade articles on customer satisfaction to
be over 15,000.

(​Naumann, 1995​) Several studies have shown that it costs about five times to gain a new
customer as it does to keep an existing customer and this results into more interest in
customer relationships. Thus, several companies are adopting customer satisfaction as their
operational goal with a carefully designed framework.

Hill and Alexander (2000) wrote in their book that ―companies now have big investment in
database marketing, relationship management and customer planning to move closer to their
customers”.

Jones and Sasser (1995​) wrote that ―achieving customer satisfaction is the main goal for
most service firms today. Increasing customer satisfaction has been shown to directly affect
companies‘market share, which leads to improved profits, positive recommendation, lower
marketing expenditures

(Reichheld, 1996; Heskett 1997), and greatly impact the corporate image and survival
Parker and Mathew (2001) expressed that there are two basic definitional approaches of the

31
concept of customer satisfaction. The first approach defines satisfaction as a process and the
second approach defines satisfaction as an 30 outcome of a consumption experience. These
two approaches are complementary, as often one depends on the other.

(Oliver, 1977, 1981; Olson and Dover, 1979; Tee and Wilton, 1988), Customer satisfaction
as a process is defined as an evaluation between what was received and what was expected
emphasizing the perceptual, evaluative and psychological processes that contribute to
customer satisfaction

(Vavra, 1997,). Parker and Mathews (2001) however noted that the process of satisfaction
definitions concentrates on the antecedents to satisfaction rather than satisfaction itself.
Satisfaction as a process is the most widely adopted description of customer satisfaction and a
lot of research efforts have been directed at understanding the process approach of
satisfaction evaluations

​Cardozo (1965); and Howard and Sheth (1969​) developed the contrast theory, which
showed that consumers would exaggerate any contrasts between expectations and product
evaluations.

Olshavsky and Miller (1972); and Olson and Dover (1979) developed the assimilation
theory, which means that perceived quality is directly increasing with expectations.
Assimilation effects occur when the difference between expectations and quality is too small
to be perceived.

​Anderson (1973) further developed this theory into assimilation-contrast theory, which
means if the discrepancy is too large to be assimilated then the contrast effects occur. The
assimilation-contrast effects occur when the difference between 31 expectations and quality is
too large to be perceived and this difference is exaggerated by consumers.

According to Parker and Mathews (2001), the most popular descendant of the discrepancy
theories is the expectation disconfirmation theory (Oliver, 1977, 1981), which stated that the
result of customers‘ perceptions of the difference between their perceptions of performance
and their expectations of performance. Positive disconfirmation leads to increased
satisfaction, with negative disconfirmation having the opposite effect.

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​Churchill and Surprenant (1982​) found that neither disconfirmation nor expectations had
any effect on customer satisfaction with durable products.

Weiner (1980, and 1985); and Folkes (1984) proposed the attribution theory, which stated
that when a customer purchases a product or service, if the consumption is below expectation,
the customer is convinced that the supplier causes the dissatisfaction. The complaining
customer is focused on restoring justice and the satisfaction outcome is driven by perceived
fairness of the outcome of complaining

Westbrook and Reilly (1983) proposed the value-percept theory, which defines satisfaction
as an emotional response caused by a cognitive-evaluative process, which is the comparison
of the product or service to one's values rather than an expectation. So, satisfaction is a
discrepancy between the observed and the desired.

​Fisk and Young (1985); Swan and Oliver (1985) proposed the equity theory, which stated
that individuals compare their input and output ratios with those of others and feel equitable
treated. Equity judgement is based on two steps; first, the customer compares the outcome to
the input and secondly, performs a relative comparison of the outcome to the other party.

​Pizam and Ellis (1999) reported that there are two additional distinct theories of customer
satisfaction apart from the seven aforementioned ones and these include: 1. Comparison-level
2. Generalized negativity; and The outcome approach of the customer satisfaction is defined
as the end-state satisfaction resulting from the experience of consumption. This post-
consumption state can be an outcome that occurs without comparing expectations or may be a
cognitive state of reward, an emotional response that may occur as the result of comparing
expected and actual performance or a comparison of rewards and costs to the anticipated
consequences

Parker and Mathews (2001​) expressed that attention has been focused on the nature of
satisfaction of the outcome approach which include: 1. Emotion - Satisfaction is viewed as

33
the surprise element of product or service purchase and or consumption experiences or is an
affective response to a specific consumption experience

34
 CHAPTER 4

RESEARCH METHODOLOGY

Research Methodology is a methodology for collecting all sorts of information and data
pertaining to the subject in question. ​A research methodology involves specific techniques
that are adopted in research process to collect, assemble and evaluate data. It defines those
tools that are used to gather relevant information in a specific research study. Surveys,
questionnaires and interviews are the common tools of research .​The methodology involve
overall research design, sampling procedure and fieldwork done and finally the analysis
procedure. ​Research methodology is applied on two important types of research process
which involves basic research and applied research.

Research is a logical and systematic search for new and useful information on a particular
topic. It is an interrogation of findings, solutions to scientific and social problems through
objective and systematic analysis. It is a search for knowledge that is a discovery of hidden

truths. ​ ​Some people consider research as a movement, a movement from the known to the

35
unknown​. ​Research may be very broadly defined as systematic gathering of data and
information and its analysis for advancement of knowledge in any subject. Research attempts
to find answer intellectual and practical questions through application of systematic methods.

Here knowledge means information about matters. The information might be collected from
different sources like experience, human beings, books, journals, nature etc. A research can
lead to new contributions to the existing knowledge. Only through research it is possible to
make progress in a field. It is done with the help of study, experiments, observation, analysis,
comparisons and reasoning. In this chapter the research design and methodology have been
outlined. The research design emphasizes the merits in convenience research as far as data
collection is concerned.

​RESEARCH PROCESS

As Research is a systematic and formalized process, it follows a certain sequence of research

action. The research process has the following steps​:

● Determining the need for research

✔ Is prior information available on the subject?
✔ Is timing correct?

● Define the problem or opportunity

✔ Clear terms
✔ Focus on core issues

36
● Formulate research objectives
✔ Study the environment
✔ Explore the problem
✔ Keep objectives to minimum

● Create research design

✔ Exploratory, descriptive, casual etc​.

● Determine data sources and collection method

✔ Primary-surveys ,experimental ,observation etc
✔ Secondary-reports, journals.

● Sampling design
✔ Identify the universe
✔ Identify sampling method
✔ Calculate sample size

● Collection and analysis​ ​of data

✔ Using simple to complex statistical tools

● Interpretation and report generation

✔ Report the data based on analysis with recommendation and suggestions
✔ Provide solutions to the problem

4.1RESEARCH DESIGN

The research design is a comprehensive master plan of the research study to be undertaken,
giving a general statement of the methods to be used. The function of a research design is to
ensure that requisite data in accordance with the problem at hand is collected accurately and
economically. Simply stated, it is the framework, a blueprint for the research study which

37
guides the collection and analysis of data. The research design, depending upon the needs of
the researcher may be a very detailed statement or only furnish the minimum information
required for planning the research project.​ Descriptive research design is used in this study.

TYPES OF RESEARCH DESIGN

Descriptive Research Design​: ​In a descriptive research design, a researcher is solely

interested in describing the situation or case under his/her research study. It is a theory-based
research design which is created by gathering, analyzing and presenting the collected data. By
implementing an in-depth research design such as this, a researcher can provide insights into
the why and how of research.

Experimental Research Design: ​Experimental research​ design is used to establish a

relationship between the cause and effect of a situation. It is a causal research design where
the effect caused by the independent variable on the dependent variable is observed.

Diagnostic Research Design: ​In the diagnostic research design, a researcher is inclined
towards evaluating the root cause of a specific topic. Elements that contribute towards a
troublesome situation are evaluated in this research design method

​ esearch Design: C​orrelational research​ is a non-experimental research

Correlational​ R

design technique which helps researchers to establish a relationship between two closely
connected variables. Two different groups are required to conduct this research design
method.

4.2RESEARCH OBJECTIVES

1. To study the satisfaction of customers towards products and services of Maruti Suzuki
2. To study the various Products and services of Maruti Suzuki

4.3SCOPE OF THE STUDY

38
1. The scope of this study is limited to customer satisfaction with various products and
services of Maruti Suzuki

2. This study is only limited to customers of Maruti Suzuki peaks auto Pvt. ltd.

4.4SAMPLE DESIGN

Sample design refers to the plans and methods to be followed in selecting sample from the
target population and the estimation technique formula for computing the sample
statistics. These statistics are the estimates used to infer the population parameters

4.5SAMPLING TECHNIQUE

A sampling technique is the name or other identification of the specific process by which the
entities of the sample are selected. In sampling technique , information is collected only from
a representative part of the universe and the conclusions are drawn on the basis for the entire
universe. Since the information required was not of a technical nature and also looking at the
scope of the project and the extent of the target segment, the sampling technique employed
was Convenience Sampling.

TYPES OF SAMPLING TECHNIQUE

​Probability Sampling:​ ​Probability sampling​ s a sampling method that selects random

members of a population by setting a few selection criteria. There are 4 types of probability
sampling technique:

39
Simple Random Sampling :​One of the best probability sampling techniques that helps in
saving time and resources, is the ​Simple Random Sampling​ method. It is a trustworthy
method of obtaining information where every single member of a population is chosen
randomly, merely by chance and each individual has the exact same probability of being
chosen to be a part of a sample.

Cluster Sampling:​ ​Cluster sampling​ is a method where the researchers divide the entire
population into sections or clusters that represent a population. Clusters are identified and
included in a sample on the basis of ​defining demographic parameters​ such as age, location,
sex etc​.

Stratified Random Sampling:​ ​Stratified Random sampling​ is a method where the

population can be divided into smaller groups, that don’t overlap but represent the entire
population together. While sampling, these groups can be organized and then draw a sample
from each group separately.

Non-probability Sampling: ​Non probability​ sampling method is reliant on a researcher’s

ability to select members at random. This sampling method is not a fixed or pre-defined
selection process which makes it difficult for all elements of a population to have equal
opportunities to be included in a sample .There are 4 types of non-probability sampling

Convenience sampling:​ This method is dependent on the ease of access to subjects such as
surveying customers at a mall or passers-by on a busy street. It is usually termed
as ​convenience sampling​, as it’s carried out on the basis of how easy is it for a researcher to
get in touch with the subjects

Snowball sampling:​ ​Snowball sampling​ is a sampling method that is used in studies which
need to be carried out to understand subjects which are difficult to trace.

Quota sampling:​ In ​Quota sampling​, selection of members in this sampling technique

happens on basis of a pre-set standard. In this case, as a sample is formed on basis of specific
attributes, the created sample will have the same attributes that are found in the total
population. It is an extremely quick method of collecting samples.

40
4.6SAMPLE SIZE

Sample size is a count of the individual samples or observations in any statistical setting, such
as a scientific experiment or a public opinion survey. Though a relatively straightforward
concept, choice of sample size is a critical determination for a project. Too small a sample
yields unreliable results, while an overly large sample demands a good deal of time and
resources.​ ​Sample of 50 Customers was taken into study and their data was collected

4.7QUESTIONNAIRE DESIGN

Questionnaire design is the process of designing the format and questions in the survey
instrument that will be used to collect data about a particular phenomenon​.

A Questionnaire whether it is called a schedule, interview form, or measuring instrument is a

structured technique for data collection that consists of series of question, written or verbal,
that a respondent answers.

In this study a structured questionnaire having eleven questions and three demographics
was used to know the perception of customers. All the questions use five point Likert scale to
understand perception of the customers

4.8ANALYTICAL TOOLS

In this study pie chart, percentage and mean have been used for the analysis of data

4.9COLLECTION OF DATA

Data collection is defined as the procedure of collecting, measuring and analyzing accurate
insights for research using standard validated techniques. A researcher can evaluate their
hypothesis on the basis of collected data. In most cases, data collection is the primary and

41
most important step f​ or research, irrespective of the field of research. The approach of data

collection is different for different fields of study, depending on the required information.

Data collection is a process of collecting information from all the relevant sources to find
answers to the research problem, test the hypothesis and evaluate the outcomes. Data
collection methods can be divided into two categories: secondary methods of data collection
and primary methods of data collecti​on​.

The basic premises of any study is primary data. Here in this study both primary and
secondary data are used to collect information.

PRIMARY DATA

Primary data can be collected through ​questionnaires with closed-ended questions, methods
of correlation and regression, mean, mode and median and others and can also be collected
through interviews, questionnaires with open-ended questions, focus groups, observation,
game or role-playing, case studies etc​. Primary data in this study is collected by using the
structured questionnaire and interaction with the customers.

SECONDARY DATA

Secondary data is a type of data that has already been published in books, newspapers,
magazines, journals e​ ​Reports Secondary data in this study is collected through

1) Internet

2) Pamphlets

3) Advertisement

4) Customer database

5) News papers

42
 CHAPTER 5

DATA ANALYSIS & INTERPRETATION

43
Q1 Gender

Gender No of respondents Percentage

Male 40 80%
Female 10 20%
Total 50 100%

Interpretation: Majority of customers (80%) are male

44
Q2 Age of customers

Age No of respondents Percentage

Below 20 yrs 5 10%
20-30 yrs 15 30%
30-40 yrs 20 40%
Above 40yrs 10 20%
total 50 100%

Interpretation: Most of the customers fall under the age category of 30-40yrs

45
Q3 occupation of customers

Occupation No of respondents Percentage

Businessmen 35 70%
Govt employee 10 20%
Professional 5 10%
Total 50 100%

Interpretation: Majority of customers i.e. 70% are businessmen

46
Q4 which factor influenced you the most to buy Maruti Suzuki cars

FACTORS No of respondents Percentage

Affordable prices 5 10%
Mileage 15 30%
Post purchase services 20 40%
Commercials 10 20%
total 50 100%

Interpretation: Most of the customers purchase Maruti Suzuki cars because of post purchase
services

47
Q5 Rate your satisfaction towards comfort and safety features in vehicles of Maruti Suzuki

No of respondents Percentage
Strongly satisfied 20 40%
Satisfied 15 30%
Neutral 5 10%
Dissatisfied 5 10%
Strongly dissatisfied 5 10%
Total 50 100%

48
Interpretation: majority of customers (70%approx) are satisfied with the comfort and safety
features in Maruti Suzuki vehicles

Q6 Are you satisfied with the knowledge and empathy of salesperson of Maruti Suzuki

NO OF RESPONDENTS PERCENTAGE
Strongly satisfied 10 20%
Satisfied 15 30%
Neutral 5 10%
Dissatisfied 10 20%
Strongly dissatisfied 10 20%
Total 50 100%

49
Interpretation: Most of the customers (50%) are satisfied with the knowledge & empathy of
salesperson.

Q7” Prices of Maruti Suzuki vehicles are affordable”. Do you agree with the statement?

No of respondents Percentage
Strongly agreed 15 30%
Agreed 10 20%
neutral 5 10%
Disagreed 10 20%
Strongly disagreed 10 20%
Total 50 100%

50
Interpretation : Most of the customers have agreed that the prices of Maruti Suzuki cars are
affordable

Q8Rate your satisfaction level towards the test drive facilities of Maruti Suzuki

No of respondents Percentage
Strongly satisfied 15 30%
Satisfied 10 20%
Neutral 5 10%

51
Dissatisfied 10 20%
Strongly dissatisfied 10 20%
Total 50 100%

Interpretation: Maximum no of customers are satisfied with the test drive facilities of Maruti
Suzuki

Q 9 Rate your satisfaction towards the availability of service stations of Maruti Suzuki

No of respondents Percentage
Strongly satisfied 10 20%

52
satisfied 15 30%
Neutral 5 10%
dissatisfied 10 20%
Strongly dissatisfied 10 20%
Total 50 100%

Interpretation : Most of the customers are satisfied with the availability of service stations

Q10Are you satisfied with the discount schemes offered by Maruti Suzuki

No of respondents Percentage
Strongly satisfied 10 20%

53
Satisfied 10 20%
Neutral 5 10%
Dissatisfied 15 30%
Strongly dissatisfied 10 20%
Total 50 100%

Interpretation : Most of the customers are dissatisfied with the discount schemes of Maruti
Suzuki

Q11 Rate your satisfaction towards the after sale services provided by Maruti Suzuki

54
 No of respondents Percentage
Strongly satisfied 15 30%
satisfied 15 30%
neutral 5 10%
Dissatisfied 5 10%
Strongly dissatisfied 10 20%
Total 50 100%

Interpretation : Most of the customers are satisfied with the after sales services.

55
Q12 “I would like to re-purchase Maruti Suzuki Car in future”. Do you agree with the
statement?

No of respondents Percentage
Strongly agreed 15 30%
Agreed 10 20%
Neutral 5 10%
Disagreed 10 20%
Strongly disagreed 10 20%
Total 50 100%

Interpretation : Most of the customers would like to repurchase from Maruti Suzuki in future.

56
Q13. Would you recommend others to purchase Maruti Suzuki Cars

No of respondents Percentage
Strongly recommended 10 20%
Recommended 25 50%
Neutral 5 10%
Not recommended 5 10%
Strongly not recommended 5 10%
Total 50 100%

Interpretation : Majority of customers would recommend others to purchase their cars from
Maruti Suzuki .

57
OVERALL MEAN BASED ON QUESTIONNAIRE

SNO QUESTIONS MEAN

1 Satisfaction towards safety and comfort feature in Maruti Suzuki vehicles 3.8

2 Satisfaction towards knowledge and empathy of salespersons 3.1

3 Prices of Maruti Suzuki are affordable do you agree with the statement 3.2

4 Satisfaction towards the test drive facilities 3.2

5 Satisfaction towards availability of service stations 3.1

6 Satisfaction towards the discount schemes offered by Maruti Suzuki 2.9

7 Satisfaction towards after sale services 3.4

8 “I would like to re purchase Maruti Suzuki cars in future” do you agree 3.2

9 Recommendation of Maruti Suzuki cars to others 3.6

OVERALL MEAN 3

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SATISFACTION BASED ON GENDER

GENDER MEAN
MALE 3.76
FEMALE 1.56
OVERALL MEAN 3

SATISFACTION BASED ON OCCUPATION

OCCUPATION MEAN
BUSINESSMEN 4.2
GOVT EMPLOYEE 2.5
PROFESSIONAL 1.5
OVERALL MEAN 3

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 CHAPTER 6

FINDINGS/ RESULTS

60
Maruti Suzuki mostly relies on male customers (70%)
Majority of customers of Maruti suzuki are businessmen followed by govt employee
Majority of customers are satisfied with the comfort and safety features of Maruti
Suzuki vehicles
Most of the customers (50%approx)are satisfied with the knowledge and empathy of
salespersons of Maruti Suzuki
50% of the customers feel that the prices of Maruti Suzuki vehicles are affordable
Customers (50%approx)are satisfied with the test drive facilities of Maruti Suzuki
Few customers (50%Approx)are dissatisfied with the availability of service stations of
Maruti Suzuki
Satisfaction level towards the discount schemes is found to be 2.9 thereby showing
that customers are dissatisfied with discount schemes
Satisfaction level towards after sale services is quite high(3.4) showing that
customers are quite satisfied with after sale services
It has been observed that majority of customers(70%Approx) would recommend
others to buy Maruti Suzuki Cars

61
 CHAPTER 7

CONCLUSION, SUGGESTIONS AND LIMITATIONS

62
 ​CONCLUSION

It has been observed that most customers are satisfied with pre sales services similarly most
of these customers are satisfied with the post sales service. But customers are also dissatisfied
with the discounts schemes which should be dealt by the company in a good way to increase
the satisfaction. High customer satisfaction level helps the company to retain its existing
customer as well as generate new customer through word to mouth publicity

Customer satisfaction index is a good tool to make improvements in the products and services
of the company. And therefore should utilize carefully &kept as confidential as possible.
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:" "Within organizations, the collection,
analysis and dissemination of these data send a message about the importance of tending to

63
customers and ensuring that they have a positive experience with the company‘s goods and
services."

​SUGGESTIONS

Since majority of customers are male so company should try to attract female
customers also
Few customers feel that the price of Maruti Suzuki vehicles is high so the company
should show serious concern in this area in order to increase the satisfaction of
customers
It has been observed that customers are dissatisfied with the discount schemes
therefore efficient discount schemes keeping in mind needs and preferences of
customers should be introduced.
Most of the customers (40%) are dissatisfied with the knowledge and empathy of
salesperson therefore salespersons should be more friendly and try to solve the
grievances of customers

64
 ​LIMITATIONS

The study suffered from time constraints as it is completed within the short period of
45 days
In most of the cases had to rely upon the information get from secondary sources and
given by respondents, which may not be fully true.
Sample size is small i.e. 50
There was dearth of free time in hands of the customers. As such carrying survey and
getting the questionnaire filled correctly on time was challenging.

65
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 REFRENCES

Books:

Kotler, P (2002),‖Marketing Management‖, Millennium Edition, Tenth

Edition, Prentice Hall, Inc, A Pearson Education Company, Upper Saddle
River, New Jersey ,pp.
Hair, Joseph, F., Anderson, Rolph, E. and Tatham Ronald, L.
(1987),Multivariate Data Analysis, New 'fork: MacMillan Publishing
Company.
Helen Woodniffe (1997), "Financial Sewices Marketing", Services

67
Marketing,Macmillion, Delhi.
Hill, N., (1996), Hanbook of Customer Satisfaction Measurement, Gower
Press, Aldershot, UK.

Websites

https://www.carwale.com/marutisuzuki-cars/

https://en.wikipedia.org/wiki/Maruti_Suzuki

https://www.cardekho.com/cars/Maruti

68
 ANNEXURE

I Arjun Pandit of MBA 3​rd semester undertaking project report of MBA from Institute of
Management Sciences affiliated with Jammu University

In view of this I am conducting a survey towards customer satisfaction towards products and
services of Maruti Suzuki

Q1 Gender

69
 a) Male
b) Female

Q2 Age of customers

a) Below 20 yrs
b) 20-30 yrs
c) 30-40yrs
d) Above 40 yrs

Q3 occupation

a) Businessmen
b) Govt employee
c) Professional

Q4 Which factor influenced you the most to buy Maruti Suzuki cars

a) Affordable prices
b) Mileage
c) Post purchase services
d) Commercials

Q5 rate your satisfaction towards comfort and safety features in vehicles of maruti Suzuki

a) Strongly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Strongly dissatisfied

Q6 Are you satisfied with the knowledge and empathy of salesperson of Maruti Suzuki

a) Strongly satisfied

70
 b) Satisfied
c) Neutral
d) Dissatisfied
e) Strongly dissatisfied

Q7” Prices of Maruti Suzuki vehicles are affordable”. Do you agree with the statement?

a) Strongly agreed
b) Agreed
c) Neutral
d) Disagreed
e) Strongly disagreed

Q8 Rate your satisfaction level towards the test drive facilities of Maruti Suzuki

a) Strongly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Strongly dissatisfied

Q 9 Rate your satisfaction towards the availability of service stations of Maruti Suzuki

a) Strongly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Strongly dissatisfied

71
Q10Are you satisfied with the discount schemes offered by Maruti Suzuki

a) Strongly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Strongly dissatisfied

Q11Rate your satisfaction towards the after sale services provided by Maruti Suzuki

a) Strongly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Strongly dissatisfied

Q12 “I would like to re-purchase Maruti Suzuki car in future”. Do you agree with the
statement?

a) Strongly agreed
b) Agreed
c) Neutral
d) Disagreed
e) Strongly disagreed

Q13. Would you recommend others to purchase Maruti Suzuki cars

a) Strongly recommended
b) Recommended
c) Neutral
d) Not recommended
e) Strongly not recommended

72
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