Business Research Proposal

PGDM 2011-13 Does Manufacturing Defects in Automobile Affect Customer Loyalty?

Prepared by Ravi Saini Ravi Trivedi Ruby Shukla Sagar Singh Chauhan Sankalp Sharma
Section D : Group 8

2011155 2011156 2011161 2011162 2011167

Guided By Prof. VSR Vijaykumar

Impact of Manufacturing Defects on Customer loyalty

Group 8

Introduction The study is intended to give understanding of the Customer Loyalty after they find defects in the Automobile they have purchased.

Executive Summary The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010.According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12.In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.

Automobile Production In India

Type of Vehicle Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers Total

200620072008-2009 2007 2008 1,209,876 1,309,300 1,545,223 353,703 374,445 391,083 434,423 519,982 556,126

2009-2010 1,777,583 549,006 500,660 8,026,681

2010-2011 1,838,697 417,126 501,030 8,418,626

6,529,829 7,608,697 8,466,666

8,467,853 9,743,503 11,087,997 10,853,930 11,175,479

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Indian Automobile Sector Involvement

The Survey Need For the Research: Sales fell 32% in the first 10 months of the fiscal year even though the passenger vehicle market grew 1.45%. Intensify customer loyalty retention programme.

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Impact of Manufacturing Defects on Customer loyalty

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Measuring Parameters: Model Price of the Model Type of defect Rectification of defect Days spent on rectification Customer satisfaction to complaint handling Satisfaction of the customer post rectification of the defect Rectification charges(if any)

Research problem A study of defects in Honda Cars, the rectification process and its effect on Customer Loyalty.

Objective To study the percentage of defective cars in the market To study the time taken for rectification. To study customer satisfaction towards rectification process and Customer loyalty towards the Honda Siel Motors. Variable Classification Dependent Variable: Defects Intermediate Variable: Rectification Process Independent Variable: Customer Satisfaction and Customer Loyalty

Defects Time of occurance Multiple Occurance Type

Rectification Repaired/Replaced Time Spent

Customer Loyality& Satisfaction Customer Satisfaction to complaint handling Customer Loyality towards Manufacturer

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Benefits of the study This study will help us understand the customer, and hence shall enable us to redesign our customer retention programme thereby contributing in increasing the sales of Honda Siel Motors India.

Questionnaire

Gender a) Male b) Female What is your age? a) 18-25 b) 26-30 c) 30-50 d) Above 50 What is your occupation? a) Public sector server b) Businessmen c) Private sector server d) Others What is your income? a) 3-5lakh b) 5-7lakh c) 7-10lakh d) Above 10lakh Type of city you live in a) Metropolitan b) Tiered 1 c) Tiered 2 d) Tiered 3 Do you own /have previously owned a car a) Yes b) No Which manufacturers car do you own /have previously owned in the past a) Tata b) Honda c) Maruti d) Hyundai e) Ford f) Toyota
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g) Mahindra h) Others How often do you use your car a) Daily b) Frequently c) Occasionally How would you rate the performance of your car a) Excellent b) Good c) Fair d) Good What do you like the most about your car a) Looks b) Service c) Performance d) Comfort e) All of the above When you go to a vehicle dealership what factors are most important to you. Rank in order of importance (1-most important) a) Prompt attention to you as soon as you enter b) A well lit and peaceful ambience c) 3 well dressed and professional sales executives d) A clean and well maintained display vehicle e) A good demo of the vehicle and answers to all your queries f) A test drive of your desired vehicle g) A follow up after you leave h) Other Have you experienced any problem with your Honda Car? a)Yes b)No If yes, then has the same problem occurred on multiple occasions? a)Yes b)No What did you do to resolve the problem? a) Contact customer service authorised by Honda Siel Motors b) Local Mechanic c) Do nothing What was the cause of the problem? a) Manufacturing defect b) Users Mistake What was the nature of the defect? a) Repairable b) Replaceable
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c) Not repairable Was the defect repaired? a) Yes b) No What was the time taken to repair the vehicle? a) 1 day b) 1 week c) 1 month d) Ages Are you satisfied with you vehicle after its servicing/repairing ? a) Yes b) No Was the staff helpful to you while dealing with the servicing of your vehicle? a) Yes b) No Were you duly informed about the problems with your vehicle? a) Yes b) No In future if you intend to buy another car, will you choose HONDA? a) Yes b) No Will you suggest your relatives/close associates to choose HONDA for their next car purchase? a) Yes b) No

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