A STUDY ON CUSTOMER EXPECTATION AND SATISFACTION TOWARDS AFTER

SALES AND SERVICE PROVIDED BY KANCHI AUTO INDUSTRIES AT

TIRUVANNAMALAI

CHAPTER I
Introduction:
Customer expectation:
Customer expectation refers to the total perceived benefits a customer expects from a
companys product or service. If the actual experience customers have with a product exceeds
the expectation, they are typically satisfied. If actual performance falls below the expectation,
they are typically.
TYPES OF EXPECTATION:

Explicit expectation
Implicit expectation
Static performance expectations
Dynamic performance expectations
Technological expectations
Interpersonal expectations
Situational expectations

1. Explicit expectation:

Explicit expectations are mental targets for product performance, such as well identified
performance standards.
For example:
Expectations for a color printer were for 17 pages per minute and high quality color
printing, but the product actually delivered 3 pages per minute and good quality color printing,
then the cognitive evaluation comparing products performance and expectation would be 17
PPM 3PPM+ High-Good, with each item weighted by the associated importance.
2. Implicit expectation:
Implicit expectations reflect established norms of performance. Implicit
expectations are established by business in general, other companies, industries
and even cultures.

An implicit reference might include wording such as compared with other

companies or compared to the leading brand.

3. Static performance expectations:

Static performance expectations address how performance and quality are defined for a
specific application. Performance measures related to quality of outcome may include the
evaluation of accessibility, customization, dependability, timeliness, accuracy, and user friendly
interfaces.
Static performance expectations are the visible part of the iceberg; they are the
performance we see and often erroneously are assumed to be the only dimensions of
performance that exist.
4. Dynamic performance expectations:
Dynamic performance expectations are about how the product or service is expected
to evolve over time. Dynamic expectations may be about the changes in support, product, or
service needed to meet future business or user environments.
Dynamic performance expectations may help to produce static performance expectations
as new uses, integration, or system requirements develop and become more stable.
5. Technological expectations:
Technological expectations focus on the evolving state of the product category.
6. Interpersonal expectations:
Interpersonal expectations reflect the relationship between the customer and the product
or service provider. Person to person relationship are increasingly important, especially where
products require support for proper use and functioning.
Customer satisfaction:
The degree of satisfaction provided by the goods or services of a company as measured
by the number of repeat customers.
Customer satisfaction defines:
According to Loudon and Delta Bitta, customer satisfaction is the decision process and
physical activity individuals engage in when evaluating, acquiring, using, or disposing of goods
and services.

Need of the customer satisfaction:

The customer satisfaction market is the sum total of all the goods and service purchased a
given period by all the inhabitance of given country or a section there of for the satisfaction of
their consumption needs. The consumer market actually consists of four components.

People
Purchasing power
Need for a specific product
Willing to fill the need with a given product.

Peter .f. Drucker was apt in saying It is the customer who determines what a business is,
what the customer thinks he is buying, what is considers value is decisive it determines
What a business, what it produces and whether it will prosper.

Why Customer satisfaction is important:

Customer satisfaction is a marketing term that measures how products or services
supplied by a company meet or surpass a customers expectation.
Customer satisfaction is important because it provides marketers and business owners with a
metric that they can use to manage and improve their businesses.
In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a
customer satisfaction metric very useful in managing and monitoring their business.
Here are the top six reasons why customer is so important:

Its a leading indicator of consumer repurchase intention and loyalty

Its a point of differentiation
It reduces customer churn
It increases customer lifetime value.
It reduces negative word of mouth
Its cheaper to retain customers than acquire new ones

Industry profile:

Indian Three-wheeler Industry

Three-wheeler industry has a 4% share in Indian auto industry, in terms of sales volume. It
consists of passenger carrier and goods carrier. In financial year 2011-12 so far, at the time of writing this
article the three-wheeler industry reported 12% growth to 8.13 lakh vehicles in period April 2011February 2012 from 7.29 lakh vehicles in April 2010- February2011. This is primarily on account of
robust export demand for passenger carrier. (http://www.siamindia.com/, 2012)

BAJAJ profile:
Introduction
Distinctly Ahead is the tag line of Indias automobile giant Bajaj Auto Ltd. Bajaj Auto Ltd is
one of the leading two & three-wheeler manufacturers in India. The company is well known for their
R&D, product development, process engineering and low-cost manufacturing Skills. In the environment
of massive competition, stiffening norms and policies, diversion of customers towards the four
wheelers, Bajaj need to be proactively involved in attracting the prospective customers and improving
the customer satisfaction level. Retaining the market share is possible with the support, cooperation and
effective backing of Dealers and Sub dealers. This research analyses the present system of sales and
service, customer expectation form the company, competitors products and possible ways to improve
the market share.

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches
over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home
appliances, lighting, iron and steel, insurance, travel and finance. The group's flagship company,
Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the
Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South
and South East Asia. Founded in 1926, at the height of India's movement for independence from
the British, the group has an illustrious history. The integrity, dedication, resourcefulness and
determination to succeed which are characteristic of the group today, are often traced back to its
birth during those days of relentless devotion to a common cause. Jamaal Bajaj, founder of the
group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhi had adopted him
as his son. This close relationship and his deep involvement in the independence movement did
not leave Jamaal Bajaj with much time to spend on his newly launched business venture. We are
celebrating 125th Birth anniversary of Shi. Jamnagar Bajaj on 4th of November 2014.

His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was
close to Gandhi and it was only after Independence in 1947, that he was able to give his full

attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified
into various manufacturing activities. The present Chairman of the group, Rahul Bajaj, took
charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship
company has gone up from INR.72 million to INR. 120 billion, its product portfolio has
expanded and the brand has found a global market. He is one of Indias most distinguished
business leaders and internationally respected for his business acumen and a Bajaj Auto Limited
(herein after referred to as the "Company") hereby adopts the following Code of Conduct for
Affirmative Action. This will be effective from 1st December 2006.

Diesel Product Line of Bajaj

RE Diesel:
The vehicle has higher torque at lower rpm with large engine and better cooling facility. It has
better clutch plates with safe systems. The vehicle has good suspension system and highest speed in
segment. The fuel cost is low and have better mileage, it also have large tank facility.
RE GDI:
The vehicle has the 2 stroke Gasoline Direct Injection engine with double head lights and fork suspension
in front. It has better clutch system and self-start system and low emissions.
Mega max:
The vehicle has highest torque and power with better engine cooling systems. The clutch plates
have longer life and it has better suspension system with fork suspension in front. The vehicle has
halogen headlights and better breaking system. The vehicle has more space.

Competitors
The major competitors of Bajaj in the passenger segment of three-wheeler markets are Piaggio, Mahindra
& Mahindra and TVS.
Piaggio Vehicles Private Limited (PVPL)
Piaggio Vehicles Private Limited (PVPL) in India is a 100% subsidiary of Piaggio & C. Spa
of Italy, a world major in two, three and four wheeled motorized vehicles. Piaggio has about 33% of the
share in Indian three-wheeler market. The company claims it is currently the market leader in the stateof-the-art three-wheeler diesel category in India, with a market share of 55%.
Mahindra & Mahindra
M&M entered automotive manufacturing in 1947 to bring the iconic Wallys Jeep onto Indian
roads. They have grown into a US $15.4 billion multinational group with more than 1,44,000
employees in over

100 countries across the globe. M&M says it is the only three-wheeler With 24 months warranty. M&M
has about 8% of the market share in the Diesel segment of passenger vehicles.
TVS
TVS Motor Company is the third largest two-wheeler manufacturer in India and one
among the top ten in the world, with annual turnover of more than USD 1 billion in 2007-2008.
`TVS has about 10% share in the three-wheeler market, and its growing rapidly.

The Company affirms that its competitiveness is interlinked with the wellbeing of all
sections of the Indian society.
The Company believes that equal opportunity in employment for all sections of the
society is a component of its growth and competitiveness. It further believes that inclusive
growth is a component of growth and development of the country.

Objective of the study:

PRIMARY OBJECTIVE:
To find out customer expectation and satisfaction towards after sales & service provided by
kanchi auto industries.

Secondary objective:
1. To understand the level of satisfaction of the user
2. To analysis factor about customer satisfaction
3. To recommended suitable ideas for improving the level of satisfaction
4. To understand the customer requirements in the out-city market of
Tiruvannamalai.
5. To understand the customer perception about the Diesel three-wheeler Vehicle.

Scope of the study:

The study focus on how and why customers make decision to buy goods and services,
customer expectation research goes to what are they expect to the customer and customer
satisfaction research goes far beyond these facts of customer satisfaction considers the uses of
customer make of the goods they buy and their subsequent evaluations.

CHAPTER II
REVIEW OF LITERATURE

Paul S. Goldner (2006) defines, a customer is any organization or individual with which
you have done business over the past twelve months
Grigoroudis, E and Siskos, Y (2009) provide definition for customer upon two approaches:
with reference to loyalty, A customer is the person that assesses the quality of the offered
products and services and on process oriented approach, the customer is the person or group
that receives the work output
Howard and sheth (1969) define satisfaction as the buyers cognitive state of being adequately
or inadequately rewarded for the sacrifices he has undergone
Westbrook abed Reilly (1983) customer satisfaction is an emotional response to the
experiences provided by association with particular products or services purchased, retail pullets,
or even molar patterns of behavior such as shopping and buyer behavior, as well as the overall
market place
Oliver (1981) put forward a definition as, the summary psychological state resulting when the
emotion surrounding disconfirmed expectations is coupled with the customers prior feelings
about the consumption experiences
Hunt (1997) is an evaluation rendered that the (consumption) experience was at least as good
as it was supposed to be customer/customer satisfaction is an evaluation that the chosen
alternative is consistent with prior beliefs with respect to that alternative
Tse and Wilton (1988) defines as, the customers response to the evaluation of the perceived
discrepancy between prior expectations (or some others norm of performance) and the actual
performance of the product/service as perceived after its consumed
Berry and Parasuraman (1991) argue that since customer satisfaction is influenced by the
availability of customer service; the provision of quality customer service has become a major
concern of all business. Customer satisfaction is typically defined as post consumption
evaluative judgment concerning a specific product or services.
Oliver (1981) defines customer satisfaction as a customers emotional response to the use of
product or service.

Anton (1996) offers more elaborations: customer satisfaction as a state of mind in which the
customers needs, wants expectations throughout the product or service life have been met or
exceeded, resulting in subsequent repurchase and loyalty
Schiff man and Kanuk (2004) defines customer as the individual perception of the
performance of the product or service in relation to his or her expectations
Woodruff and guardian (1996) defines satisfaction, then, is the evaluation or feeling

that

results from the disconfirmation process. It is not the comparison itself (i.e., the disconfirmation
process), but it is customers responses to the comparison. Satisfaction has an emotional
component.
Hung (1977) satisfaction is a king of stepping away from an experience and evaluation itone
could have a pleasurable experience that caused dissatisfaction because even through it was
pleasurable, it was not a pleasurable as it was supposed to be. So satisfaction/ dissatisfaction isnt
an emotion, its an emotion, its an evaluation of the emotion
Oliver (1977) defines satisfaction is the customers fulfillment response. It is a judgment that a
product or service feature, or product or service itself, provided (or is providing) a pleasurable
level of consumption- related fulfillment, levels of under- or over- fulfillment.

Customer Expectations

According to Zenithal, Biter, and Grimier (2006), customer expectations are beliefs
about a service delivery that serve as standard against which performance is done.
Divide and Uttar (1989) proposed that customer expectation is formed by many
uncontrollable factors, which include previous experience with other companies, and their
advertising, customers psychological condition at the time of service delivery, customer
background and values and the images of the purchased product.
In addition, Zenithal et al. (1990) stated that customer service expectation is built on
complex considerations, including their own pre-purchase beliefs and other peoples opinions.
Similarly, Miller also stated that customers expectation related to different levels of satisfaction.
It may be based on previous product experiences, learning from advertisements and word-ofmouth communication. Santos added that expectation could be seen as a pre-consumption
attitude before the next purchase; it may involve experience.
Customers expectation is what the customers wish to receive from the services. The
diversity of expectation definitions can be concluded that expectation is uncontrollable factors
which including past experience, advertising, and customers perception at the time of purchase,
background, attitude and products image. Furthermore, the influences of customers expectation
are pre-purchase beliefs, word of mouth communications, individual needs, customers
experiences, and other personal attitudes. Different customers have different expectation based
on the customers knowledge of a product or service.

CHAPTER III

Research methodology:
A research design is purely and simply the frame work or plan for a study that guides the
collection and analysis of the data. In customer surveys, the convenient research design is used in
collecting and analyzing.
Research design:

Data collection:
There are two types of data
1. Primary data
2. Secondary data
The study involves mostly primary data.
Primary data:
The data collected for a purpose or for a particular problem in original is known
as Primary data. It consists of all answers obtained first hand this is called Primary data.
Secondary data:
The data collected from previous record. The past available information gathered
and o use the problems.

Limitation of the study:

The study after sales & service only for share auto

Appendix:

A STUDY ON CUSTOMER EXPECTATION AND SATISFACTION TOWARDS AFTER

SALES AND SERVICE PROVIDED BY KANCHI AUTO INDUSTRIES AT
TIRUVANNAMALAI
Questionnaire
1. Name: ______________________
2. Address: ___________________
3. Gender:
A. Male

B. Female

A. Less than 15

B.15-25

C.26-35

D. More than 36

4. Age:

5. Your educational qualification:

A.8th std

B. SSLC

C. Higher secondary

D. Under graduate

6. Your marital status:

A. Married

B. Unmarried

7. Size of the family:

A. Below 2

B. 3 - 4

C.5 6

D. above 6

8. Monthly income:

A. Below 5000

B. 5000 to 10000

C. 10000 to 15000

D. Above 15000

9. Which factor is influenced to buy Bajaj auto?

A. Price

B. Durability

C. Mileage

D. Performance

10. Mode of payment?

A. Cash

B. Installment

C. Credit card

D. Vehicle loan

11. Which is the best feature of Bajaj auto?

A. Mileage

B. Style

C. Durability

D. Maintenance

12. What do you feel about mileage?

A. Excellent

B. Good

C. Average

D. Poor

E. very poor
13. Performance of the vehicles
A. Very good

B. Good

C. Neutral

D. Bad

14. How do you feel about payment system while purchase the Bajaj auto?

A. Very good

B. Good

C. Neutral

D. Bad

15. What about company service?

A. Very good

B. Good

C. Neutral

D. Bad

16. How many kilometer have you ridden?

A. Below 10000

B.10000 to 20000

C.21000 to 30000

D. above 30000

17. Did the showroom people explain you about Bajaj auto?
A. Excellent

B. Good

C. Average

D. Poor

E. very poor
18. What do you feel about hospitality?
A. Excellent

B. Good

C. Average

D. Poor

E. very poor
19. Why are you prefer this Bajaj auto? Choose, or select
A. Mileage

B. Style

C. Durability

D. Maintenance

E. Resale value
20. What do you think about Bajaj auto price compare to other auto?

A. Very high

B. High

C .Low

D. Normal

21. Do you think any changes in Bajaj auto?

A. Yes

B. No

If yes, mention_____________________________
22. Future expectation
A. Extern body

B.

23. Your overall rating about Bajaj auto?

A. highly satisfaction

B. Satisfaction

C. Neutral

D. Dissatisfaction

24. Write your suggestion to increase sales in Bajaj auto?

______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________
25. How often you face problem with Bajaj auto?
A. Frequently

B. often

C. Very rate

D. Never

26. If you are not satisfied with the duration of free service. what is your preferred service
period?
A. 5 month

B. 8 month

C. 1 year

D. above 1 year

Bibliography:
www.Businessdictionary.com
www.clientheartbea.com
www.financepraciioner.com
www.gualtrics.com
www.siamindia.com