Professional Documents
Culture Documents
LIST OF CONTENTS
S.NO
TITLE
1.
INTRODUCTION
2.
PROFILE
PAGE NO
5-14
INDUSTRY PROFILE
15-19
ORGANISATION PROFILE
20-24
3.
REVIEW OF LITERATURE
4.
RESEARCH METHODOLOGY
25-32
33
33
34
34
36
5.
37-67
6.
FINDINGS
68-70
7.
SUGGESTIONS
71-72
8.
CONCLUSION
73-74
9.
ANNEXURE
75-79
10.
BIBLOGRAPHY
80-81
LIST OF TABLES
TITLE
TABLE.NO
PAGE.NO
Volume of goods
38
Export market
40
Exportation of goods
42
44
46
48
50
51
52
10
53
11
54
12
56
13
58
14
60
15
16
17
18
19
TABLE.NO
62
63
Opinion on feedback
65
Chi- Square
67
Weighted Average
Correlation
67
LIST OF CHARTS
TITLE
3
PAGE.NO
Volume of goods
39
Export market
41
Exportation of goods
43
45
47
49
50
51
52
10
53
11
54
12
56
13
58
14
60
15
16
62
63
Opinion on feedback
CHAPTER I
INTRODUCTION
The products and services that an industrial company has to offer are generally organized around
its customers needs in addition to the level of expertise and production capabilities of the firm.
4
Creating a strategy for product development is an important and often multifaceted segment of
running a successful enterprise, and it brings together a range of different principles, such as
research and development, marketing, engineering, design, materials, and manufacturing. In
most cases, an industrial product development strategy will depend on two main goals: keeping
the new product or product line within the companys overall objectives and marketing
philosophy, and developing a system for assessing the performance of an existing product. For
evaluating the success of an existing product, factors such as sales, customer response, profits,
competition, and market acceptance are usually involved.
Product development is usually based upon these criteria, and putting together a strategy helps to
determine which products need to be modified, continued, or discontinued. In addition,
development analysis can set guidelines for new products to be introduced. When working on
product development, it can be helpful to remember that an industrial product is often more than
just a tangible good, but also a set of technical, economic, legal, and personal relations between
the consumer and the seller. Elements such as price, product specifications, purchasing contracts,
and a customers personal interpretation of a companys brand and reputation are all significant
influences on a products overall performance.
CUSTOMER SERVICE
Consumers can evaluate a product along several levels. Its basic characteristics are inherent to
the generic version of the product and are defined as the fundamental advantages it can offer to a
customer. Generic products can be made distinct by adding value through extra features, such as
quality or performance enhancements. The final level of consumer perception involves
augmented properties, which offer less tangible benefits, such as customer assistance,
maintenance services, training, or appealing payment options. In terms of competition with other
products and companies, consumers greatly value these added benefits when making a
purchasing decision, making it important for manufacturers to understand the notion of a total
package when marketing to their customers. For example, when manufacturing automotive
parts, a high-performing product will provide the customer base with basic benefits, while
adding spare parts, technical assistance, and skill training will offer enhanced properties to create
a total package with increased appeal to consumers.
5
Perceptions are defined in various ways. Strydom, Jooste and Cant (2000:84) define
CUSTOMER SERVICE as the process of receiving, organising and assigning meaning to
information or stimuli detected by the customers five senses and opine that it gives meaning to
the world that surrounds the customer. Perceptions are also described as the end result of a
number of observations by the customer. Customers perceive services in terms of quality of
services provided and the satisfaction level attained.
One of the best ways to raise the service level is by knowing the customers perceptions (Zemke,
Woods 1998, 273). Therefore, the focus of this thesis will be on how a small retail business can
develop their customer service, image and product range by knowing how their customers
experience them. Retail businesses do not only nowadays face competition from other retailers;
they also face competition from, for example, mail order catalogues and internet shopping, in
addition retailing have nowadays become much more international. For that reason, it is essential
to recognize customers needs and wants, as well as which the elements are that attract them to
visit particular stores. (Paulins, Geistfeld 2003, 371) Ab Sisustus Interior CASA Oy is the case
company. The company is an interior store situated in Vaasa. The store is specialized in classic
and trendy design furniture and lightning. The concept of CUSTOMER SERVICE is built up by
customer experiences, how they perceive the service they are offered and ultimately by whether
they actually are satisfied with their experiences or not. One way of competing more successfully
for small businesses today is by offering true customer service and service quality (Wilson,
Zeithaml, Bitner and Gremler 2008, 78). Eventually, the success of the business is settled by how
strongly the image of the store and the products the store is selling meet the customers
expectations. (Porter, Claycomb 1997, 373) Personal customer service is a crucial aspect of the
case companys business idea and Sisustus CASA offers, apart from the items in the store,
furnishing and interior planning for both business-to-business customers and private persons.
During the years of operation, the company have established many long-term customer
relationships. (CASA 2009) A Norwegian study by Solvang (2007) found out that customer
service within the furniture retail business is of great importance. Compared to other retail
industries, e.g. the grocery industry, the aspect of service is much more crucial for business
success within this sector. In furniture stores, customers depend much more on the service and
advices given by staff than in normal grocery stores, which are to a great extent self-service
7
oriented. It is then not surprising that customers perception of service and the image of furniture
stores are closely linked to customer loyalty and satisfaction. (Solvang 2007, 110) Customer
service and customers perceptions are always important but especially for small businesses. By
knowing the customers perception, how they perceive service, selection/products, prices,
location and cleanliness, customers satisfaction and ultimately the success of the business can be
affected.
Importance of CUSTOMER SERVICE
The theoretical outline of this thesis will be divided into three main parts, the theories behind
CUSTOMER SERVICEs of service, store image and products. Before introducing and analyzing
the importance of CUSTOMER SERVICE within these different categories, a short definition of
perception and its elements will follow.
The definition of perception can be said as the process in which a person select, arrange and
interpret stimuli, these stimuli are filtered and adjusted to become ones own view of the world.
Even though exposed to the same thing, in the same environment, two persons will never
experience the same. (See e.g. Schiffman and Kanuk). We live in a world today where we daily
are exposed to millions of different stimuli; different smells, sounds, tastes, sights and textures.
Our brain takes in and processes only a small number of all these stimuli. (Solomon, Bamossy,
Askegaard and Hogg, 2006, 36)
The whole perception process is made up by three stages, the exposure stage, the attention stage
and the interpretation stage. The brain takes in the stimuli in the attention stage and interprets the
stimuli, according to our previous experiences and desires, in the interpretation stage. Ultimately,
these three stages form our perceptions. (Solomon, Bamossy, Askegaard and Hogg, 2006, 36)
It is only when the customers perceptions of the business, the products and the services are
known, that you truly know whether or not the business is going in the right direction. All
interactions that occur between the customers and the business will ultimately affect the
customers view and image of the business.
Excellent customer service is far from enough, for example, if the store is located far from the
customers and on a place where there are no parking places outside these aspects will effect the
8
perceptions. Selling top class products is a prerequisite for many stores in order to keep
customers, but if the staff is unfriendly, the store will eventually start to lose its customers. All
what customers see, hear and experience is linked together and forms their overall perception of
the business, this is why it is essential for the case company, Sisustus CASA, as well as for all
businesses to know the customers perceptions.
The meaning of CUSTOMER SERVICE is most often used in the content of how customers
perceive the quality of the service they are offered. More widely speaking CUSTOMER
SERVICE is also the customers overall picture of the company, including company image,
expectations, external influences, service quality etc.
CUSTOMER SERVICE
In this part, customers perception of service will be discussed. Firstly, the importance of high
quality service will be considered and later on the elements of service quality; the technical,
functional and relational quality dimensions will be argued. At the end, the advantages and
disadvantages with the SERVQUAL model will be explained.
Customers perception of service quality can generally be divided into the perception of
reliability, responsiveness, assurance, empathy and tangibles. These aspects will be discussed
more profound later on, as the SERVQUAL model is explained. Together with the product price
and quality, service quality forms the broader concept of customer satisfaction. Ultimately, if
customers experiences exceed their expectations, customer satisfaction together with situational
and personal factors will result in customer loyalty (Wilson, Zeithaml, Bitner and Gremler 2008,
79). It is of great importance, to win customer loyalty especially for smaller businesses. Small
businesses do not have the same budget as larger companies, and keeping existing customer is by
far much cheaper than finding new ones. Offering excellent customer service will not only lead
to customer loyalty, it will also give smaller firms a competitive advantage against larger
companies (Longenecker, Moore, Petty, Palich 2005, 290). However, customers service
expectations varies according to store type, customers expect a much more wide-ranging service
in specialty stores compared to discount stores. Sisustus CASA can be described as a specialty
store in this perspective, why customer service can be seen as essential (Paulins et. al 2003, 371).
In this part, customers perception of service will be discussed. Firstly, the importance of high
quality service will be considered and later on the elements of service quality; the technical,
functional and relational quality dimensions will be argued. At the end, the advantages and
disadvantages with the SERVQUAL model will be explained.
Customers perception of service quality can generally be divided into the perception of
reliability, responsiveness, assurance, empathy and tangibles. These aspects will be discussed
more profound later on, as the SERVQUAL model is explained. Together with the product price
and quality, service quality forms the broader concept of customer satisfaction. Ultimately, if
customers experiences exceed their expectations, customer satisfaction together with situational
and personal factors will result in customer loyalty (Wilson, Zeithaml, Bitner and Gremler 2008,
79). It is of great importance, to win customer loyalty especially for smaller businesses. Small
businesses do not have the same budget as larger companies, and keeping existing customer is by
far much cheaper than finding new ones. Offering excellent customer service will not only lead
to customer loyalty, it will also give smaller firms a competitive advantage against larger
companies (Longenecker, Moore, Petty, Palich 2005, 290). However, customers service
expectations varies according to store type, customers expect a much more wide-ranging service
in specialty stores compared to discount stores. Sisustus CASA can be described as a specialty
store in this perspective, why customer service can be seen as essential (Paulins et. al 2003, 371).
THOUGH consumer perceptions of price, quality, and value are considered pivotal determinants
of shopping behavior and product choice (Bishop 1984; Doyle 1984; Jacoby and Olson 1985,
Sawyer and Dickson 1984, Schlechter 1984), research on these concepts and their linkages has
provided few conclu- sive findings. Research efforts have been criticized for inadequate
definition and conceptualization (Monroe and Krishnan 1985; Zeithaml 1983), inconsistent
measurement procedures (Monroe and Krishnan 1985), and methodological problems (Bowbrick
1982; Olson 1977; Peterson and Wilson 1985). One fundamental problem limiting work in the
area involves the mean- ing of the concepts: quality and value are indistinct and elusive
constructs that often are mistaken for im- precise adjectives like "goodness, or luxury, or shininess, or weight" (Crosby 1979). Quality and value are not well differentiated from each other
and from similar constructs such as perceived worth and utility.
10
The concept of perceived customer value within marketing subject has been analyzed for several
decades. However, because of the much diversified nature of the research into the phenomenon,
no universal conceptualization has been accepted. In this direction, the authors developed various
approaches of perceived customer value. We will review the major approaches of this complex
concept.
According to Khalifa (2004), the perceived customer value definitions can be grouped into three
main categories: benefits/costs ratio models (utilitarian), value components models, and meansends models. Benefits/costs ratio models occur in the earliest papers defining the perceived value
as a valuation by the customer of two dimensions benefits and costs (Kumar & Grisafe, 2004;
Roig et al., 2006; Gounaris et al., 2007). In researching of conceptual CUSTOMER SERVICEs
of price, quality and value, Zeithaml (1998) described value as the ratio of customer perceived
product utility (benefits received) divided by the price paid (the costs suffered and other
sacrifice), and emphasized that customer value is based on subjective perception. Similarly,
according to Woodruff (1997).
Most marketing strategists will agree that creating customer value is fundamental to both profitseeking companies and nonprofit organizations. Indeed, creating superior customer value is a
necessary condition for a company securing a niche in a competitive environment, not to
mention a leadership position in the market (Day 1990). According to Porter (1980), a company
can follow two generic routes to compete in a market: differentiation and low-cost. Day (1990)
maintains that both approaches have the same objectiveC to create superior customer value,
because "regardless of which of these routes is emphasized, the effort will fail unless significant
customer value is created" (Day 1990, p. 163).
Day (1990) addresses the issues in analyzing customer value and proposes that it can be
expressed in a "value equation": "Customer's Perceived Benefits-Customer's Perceived
Costs=Perceived Customer Value" (p. 142). Although Day's approach to customer value is
basically sound, some details regarding consumer customers remain unclear. For example, the
process by which consumers perceive product benefits is nebulous: Day particularly addresses
product valuation by industrial customers in detail, but this is only in principle a part of a much
more complex process of product valuation by consumers. Hence a theoretical framework which
underlies the consumers' overall product valuation is still missing in the literature. Such a
11
framework should address the issues of how consumers perceive the benefits and costs of
products, as well as what possible benefits and costs consumers may perceive from products in
the market. The current paper tries to fill these gaps.
In addition, the word "value" has discrepant meanings in the marketing literature, especially
between its two areas: marketing strategy and consumer behavior. What marketing strategists
mean by "customer value" is quite different from the meanings of the "consumer values"
discussed in consumer behavior research (Clawson and Vinson 1978; Kahle 1977; Peter and
Olson 1990; Sheth, Newman and Gross 1991; Vinson, Scott and Lamont 1977; Wilkie 1990).
Generally speaking, "customer value" focuses on the buyers' evaluation of product purchase at
the time of buying, while "consumer values" stress people's valuation on the consumption or
possession of products. Actually, Day's approach to customer value (Day 1990), by emphasizing
the customers' perceptions, indicates a direction in which the two different, but related, concepts
of "value(s)" in marketing discipline might be integrated. The current paper helps accomplish
this integration by suggesting a model of customer value for consumer markets.
This paper first reviews the literature on consumption behavior analysis relevant to marketing
strategy. Next, a framework of product valuation for consumers and its typology of product
benefit are proposed based on the consumption behavior analysis. After the process of product
valuation for consumers has been made clear, the paper presents a comprehensive model of
customer value for the consumer market integrating consumer values, product benefits, logistic
benefits, and various costs of consumption. In the proposed model, product benefits, logistic
benefits, and costs are defined in terms of consumers' perception in the activities of acquisition,
consumption (or using) and maintenance, as well as consumers' expectation of personal values
satisfaction before buying. Finally, the implications of consumption behavior analysis for
marketing strategy are discussed.
The consumption behavior approach to customer value can be an effective way of achieving
more innovation, enhancing customer value, and obtaining greater marketing penetration and
strategy sustainability. Consumption, like production, involves a constellation of goods and
consumption values or desirable benefits. If marketers think of consumers as engaged in a
constructive process by which they achieve their consumption values, it may be easy to see that a
variety of holistic benefits are involved as customers use the products (Boyd and Levy 1963).
12
Although the marketers may already plan and act in terms of consumer needs and behavior
patterns, they can gain even more insight if they study consumer's consumption behaviors in
which their products play a part. For knowledge of the customers' consumption behavior to be
truly meaningful, much more would have to be known about the customers' personal values,
feelings and thoughts, and consumption values. In other words, understanding the consumers'
consumption behavior means that their activities should be analyzed thoroughly and holistically,
from the expectation about consumption values at the prepurchase stage, to the purchase
evaluation at the stage of selection and acquisition, to consumption values actualization in the
stage of use, possession, and maintenance.
One caveat about customer value: greater customer value does not necessarily equal greater
customer satisfaction. Customer value is defined as the difference (or surplus) between benefits
and costs; it is a level of return for customer costs. From a cognitive perspective, according to
expectation theory, satisfaction is the result of a comparison between what actually occurs and
what is expected. Hence the customers' buying satisfaction depends on both their perceived value
of the purchase and their knowledge of what a fair level of buying value should be. In short,
customers will feel satisfied to the extent that the perceived value of their buying exceeds the
standard they hold. From this point of view, exceeding value is the key for customer satisfaction,
not customer value per se (a surplus value). This issue can be viewed as an avenue for further
study.
Perceived product quality is perhaps one of the most important constructs in marketing. In recent
years, perceived quality has been the subject of considerable interest by both practitioners and
researchers, mainly in services marketing (Cronin & Taylor, 1992; Parasuraman, Zeithaml &
Berry 1996). However, work that integrates the role of perceived product quality within the
context of other marketing variables like product involvement, consumer satisfaction and
purchase intentions has received less attention. Moreover, the relationships between these
constructs for goods rather than services have not been studied extensively in marketing.
Perceived quality has attracted the interest of practitioners and researchers because of a belief in
its beneficial effects on marketing performance. Indeed, the belief that high perceived quality
leads to repeated purchases is the bedrock of any business. Thus a better understanding of the
13
relationship between perceived product quality and product involvement, consumer satisfaction
and purchase intentions may help academics develop a model of consumer decision making for
goods. It may also provide practitioners with indications as to where best to devote marketing
attention and scarce corporate resources.
This study intends to contribute to the development of a conceptual framework that integrates
perceived product quality, involvement, satisfaction and purchase intentions. Specifically, the
study investigates the relation between differences in quality perceptions and product
involvement, consumer satisfaction and purchase intentions. It reviews the literature on these
four constructs and outlines the expected relationships. Appropriate measures are identified and
research is carried out among sport shoes consumers. Implications for theory development and
management are discussed, limitations of the study are noted and possible areas for further
research are indicated.
CHAPTER II
INDUSTRY PROFILE
The scope and influence of logistics has evolved in the late 1940s. In the 1950s, and 60s,
military was the only organization which used logistics. The scope of logistics has been
extended beyond the army, as it has been recognized as one of the important tools for
developing competitiveness. Competitive advantage means the company has the ability to
differentiate itself, in the customers eyes, and also is operating at a lower cost and greater
profit.
Logistics facilitates in getting products and services as and when they are needed and desired
to the customer. It also helps in economic transactions, serving as a major enabler of growth of
trade and commerce in an economy.
14
Logistics has come to be recognized as a distinct function with the rise of mass production
systems. Production and distribution were earlier viewed as a sequential chain of extremely
specialized activities. The role of logistics is to ensure availability of all the required materials
before every step in this chain. Obviously inventory of raw materials, semi-finished and
finished goods is a must across this chain to ensure its smooth functioning.
The concept of logistics has its base upon the systems approach. There is a single chain, with
flow of materials starting from the supplier, then to the plant and finally to the end customer,
and also these activities are done sequentially in order to achieve customer satisfaction at low
cost. For this to be successful there has to be co-ordination in the activities of the department.
With reference to an organization, an organization gets a concrete shape due to its structure. In
the earlier times, the suppliers in distribution activities were spread across the entire structure,
thus resulting in an overlapping of activities and finally in unaccountable authority and
responsibility. In todays process driven organization, where the focus has shifted from
functions to process, logistics has become an essential part of the process.
Definitions of logistics:
The American Council of Logistics Management defines logistics as the process of planning,
implementing and controlling the efficient, cost effective flow and storage of raw materials, inprocess inventory, finished goods and related information from point of origin to point of
consumption for the purpose of conforming to customers requirements.
Philip Kotler defines logistics as planning, implementing, and controlling the physical flows
of materials and finished goods from point of origin to point of use to meet the customers
need at a profit.
Objectives of logistics:
Logistics has the following objectives:
15
Reduction of inventory: Inventory is one of the key factors, which can affect the profit of an
enterprise to a great extent. In the traditional system, firms had to carry lot of inventory for
satisfying the customer and to ensure excellent customer service. But, when funds are blocked
in inventory, they cannot be used for other productive purposes. These costs will drain the
enterprises profit. Logistics helps in maintaining inventory at the lowest level, and thus
achieving the customer goal. This is done through small, but frequent supplies.
Economy of freight: Freight is a major source of cost in logistics. This can be reduced by
following measures like selecting the proper mode of transport, consolidation of freight, route
planning, long distance shipments etc.
Reliability and consistency in delivery performance: Material required by the customer
must be delivered on time, not ahead of the schedule or behind the schedule. Proper planning
of the transportation modes, with availability of inventory will ensure this.
Minimum damage to products: Sometimes products may be damaged due to improper
packing, frequent handling of consignment, and other reasons. This damage adds to the
logistics cost. The use of proper logistical packaging, mechanized material handling
equipment, etc will reduce this damage.
Quicker and faster response: A firm must have the capability to extend service to the
customer in the shortest time frame. By utilizing the latest technologies in processing
information and communication will improve the decision making, and thus enable the
enterprise to be flexible enough so that the firm can fulfill customer requirements, in the
shortest possible time frame.
The various functions of logistics are as follows:
1. Order Processing: Processing the orders received from the customers is an activity,
which is very important by itself and also consumes a lot of time and paperwork. It
involves steps like checking the order for any deviations in the agreed or negotiated
terms, price, payment and delivery terms, checking if the materials is available in stock,
producing and scheduling the material for shortages, and also giving acknowledgement to
the owner, by indicating any deviations.
16
2. Inventory Planning and management: Planning the inventory can help an organization
in maintaining an optimal level of inventory which will also help in satisfying the
customer. Activities like inventory forecasting, engineering the order quantity,
optimization the level of service, proper deployment of inventory etc. are involved in this.
3. Warehousing: This serves as the place where the finished goods are stored before they
are sold to the customers finally. This is a major cost center and improper warehouse
management will create a host of problems.
4. Transportation: Helps in physical movement of the goods to the customers place. This is
done through various modes like rail, road, air, sea etc.
5. Packaging: A critical element in the physical distribution of the product, which also
influences the efficiency of the logistical system.
17
Generally, the in-house logistics departments in manufacturing organizations take care of all
aspects of logistics. But this is not an area of core competency of manufacturing or trading
organizations. Today, a lot of successful business corporations across the world are
outsourcing logistics to the third party logistics providers, who are having the necessary
infrastructure and expertise to do the job in a better manner. Complete logistics solutions to
manufacturers and traders is provided by the third party logistics providers, and they help in
integrating various logistics operations, thus ensuring speedy and uniform movement of
materials across the supply chain.
Logistics is nowadays widely used in virtually every area. The success of a logistics service
providing company depends on how they conceptualize and implement the logistics solution,
and also tune to the requirements of the customer.
Future of Logistics
Nowadays corporations look only for sustainable competitive advantage, not only for
growth, but also to survive. There is so much killing competition that corporations are
compelled to review their business process while they deliver the products and services to
customers, who are looking for more and more value for the money that they are spending.
The focus of competition has shifted from the product to the supply chain.
Today, logistics management is based on the system concept and cost approach.
Transportation, warehousing, handling of material, inventory management and order
processing are the major logistics activities, which impact the customer cost and operation.
Integrated logistics helps in taking the cost out of the supply chain and also enhance the
customer service level.
18
When looking at the macro level, a growth of a countrys economy depends on the availability
of excellent logistics infrastructure. The speed of the movement of goods depends to a great
extent on the various modes of transportation like rail, road, air, and sea.
Logistics has a bright future, especially in India, but certain pressing issues like abolition of
octroi levy, rationalization of customs formalities, improvement in road and rail infrastructure,
creation of modern warehouse facilities etc, have to be taken care of. The geographical
position of India also is well positioned to emerge as an excellent hub for a variety of products.
19
COMPANY PROFILE
LOGISTICS SERVICE PROVIDERS:
If a company employs an outside provider to perform some or all of its logistics
activities, this outside provider is termed a logistics service provider. These LSPs were originally
only offering a very narrow spectrum of services, mainly consisting of transportation or
warehousing services. In order to react to changing demands from their customers, as pointed out
in the preceding sections, LSPs have started to offer integrated service portfolios that include a
multitude of different services. According to, five types of LSPs can currently be distinguished:
carriers, couriers & express & parcel/postal (CEP), freight forwarders, third-party LSPs (3PLs),
and fourth-party LSPs (4PLs), which will be briefly described below.
Freight forwarders are intermediaries between suppliers and buyers of transportation
services. In most cases, brokers carry out additional ser-vices, such as transportation planning
and management, including the associated provision of information systems. In some cases,
brokers also dispose of their own transportation assets. Bundling and coordination of demand for
transportation services are the core competencies of brokers.
In contrast to the aforementioned LSPs, 3PLs or contract LSPs offer their customers
logistics solutions that often include management capacities. These solutions most commonly
include several services, such as warehousing and pick/pack operations that are carried out on a
longer-term contractual basis. A recent addition to the list of types of LSPs comes in the form of
4PLs. While there is no universal agreement on the definition of the 4PL, the cur-rent state of the
debate establishes 4PLs as suppliers of complete logistics systems, without carrying out the
services themselves. Instead, 4PLs sub-contract all operations from other LSPs and confine
20
themselves to the management of logistics systems. Thus, they do not dispose of any logistical
assets and are a neutral intermediary between businesses and asset-based LSPs.
Our Vision:
To be always with our customers and business partners and grow with our customers
with great relationship and trust..
21
Mission:
To be one of the leading players in the logistic industry providing customers powerful
logistic solution globally.
ORGANSATION CHART:
Managing
Director
Finance
Manager
Administratio
n Manager
Documentati
on
Manager
Marketing
Operation
Manager
Manager
Accountant
Executive
Officer
Representati
ves
Office Boy
CHA SENIOR
OFFICER
CHA
Executive
22
Assistan
t
Manage
rSales
Officer
Loading &
Unloading
Executive
SMI Capabilities
Air Freight:
Central procurement and capacity management
Strategic partnership with leading airlines
24x7 hub and charter activities
Ocean Freight:
Central procurement and capacity management
Strategic partnership with leading carriers
Intermodal services
SMI Ocean Freight Products
Full container loads (FCL)
Less than full container load (LCL)
Non containerized load (NCL)
Door-to-door intermodal services
Port-Port, Door-Port, Port-to-Door services
Global coverage with consolidation services
On carriage by truck, rail, and barge
The SMI core product offerings provides multiple benefits to our customers
23
Our end to end services are designed to control and continually improve the global flow
of goods and information
To plan and manage complex logistics requirements of a global supply chain, we deliver
solutions to:
Reduce supply chain cost
Shorten lead times
Improve productivity
Our tailor made solutions contain full range of services to improve the supply chain.
Distribution warehousing secures availability of products at all times.
We provide the following services:
Order fulfillment, pick and pack
Tracking the cargo via Web-access
CONTACT
US:
24
CHAPTER III
REVIEW OF LITERATURE
1.
A sample of 100 respondents from 4 branches of HDFC banks were selected according to the
convenience and 25 respondents from each branch respectively. A structured questionnaire with
two sections was designed (Shamsher Singh 2011). Section A consists of demographic analysis
and Section B was designed to measure the service attribute values being delivered by banks.
The 9 statements were measured on a Five point Likert scale, 5 indicates strongly agree and 1
indicates strongly disagree. SPSS 15.0 version of one.
Banks must pay attention on their functioning to compete with other banks. The banking sector
in India is undergoing major change due to competition among the private and the public sector
banks. The customer has high expectations for quality of services that the bank is providing to
him to get satisfied. This study reveals that the customer service quality of the HDFC Bank is
satisfactory; however the credit card information has to be improved further was the personal
suggestion of certain customers. Today is a scenario of not just customer satisfaction but
customer delight. Customer awareness has increased a very great extent compared to past when
it was very less. Keeping this is mind the present organizations are in a need to keep running
faster to remain in the same position and even faster to be on par with competitors.
Further research should make several extensions of the current study. The research needs to use
more diversified random samples and should employ a factor analysis. The research can be
undertaken in rural area for understanding the overall satisfaction on all India bases.
2.
ninety five respondents were surveyed. Data was analysed using descriptive and inferential
statistics. The questionnaire measured students expectations and perceptions in five dimensions
of service that consists of tangibles, reliability, assurance, responsiveness and empathy.
The results demonstrated that in each of the five SERVQUAL dimensions, there was a negative
quality gap. The largest gap was in the tangibles dimension. Also, there were significant
differences between perceptions and expectations of students in all of the five SERVQUAL
dimensions (p<0.001)
Improvements are needed across all five dimensions. Results have shown that students
perception of service quality at the BSU falls below their expectations, presenting a great
challenge to the institution. In order to improve service quality, it is recommended that the BSU
regularly assesses employees, as well as customers experiences and provide prompt feedback.
Increased competitiveness in the marketplace in which HEIs function has been one of the main
reasons why quality service and customer care have become of great importance. In order to
retain and expand market share, high quality service must be rendered.
Selecting an educational institution is the first step the student undertakes in the educational
process of higher education. Any declining student numbers, as well as increased competition,
should thus be of major concern to an HEI
The importance of quality in education is undeniable. Todays students are tomorrows leaders
and without quality education, the nation will continue to lose its competitive edge and lag even
further behind the rest of the industrialised world at a time where organisations can least afford
to fail. Quality is a function of people, process and policy. In education, quality must be
improved in many areas such as training, resource management and curriculum (Milakovich,
2006: 255).
Students are viewed as customers of HEIs as they are the primary beneficiaries of education.
The gap analysis model should guide management in finding out where the reason (or reasons)
for the quality of the service problem lie and discovering appropriate ways to close this gap. The
Gap analysis is a straightforward and appropriate way of indentifying inconsistencies between a
service provider and CUSTOMER SERVICE of service performance. Addressing these gaps is a
logical basis for developing service processes in which expectations and experiences consistently
meet. Good perceived quality will most likely be increased in this way.
26
3.
image of furniture stores are closely linked to customer loyalty and satisfaction. (Solvang 2007,
110) Customer service and customers perceptions are always important but especially for small
businesses.
By
knowing
the
customers perception,
how
they
perceive
service,
selection/products, prices, location and cleanliness, customers satisfaction and ultimately the
success of the business can be affected.
4.
How do customers choose their products and what kind of products should be offered to them?
This part will deal with these issues as well as consider the importance of developing an
appropriate merchandise strategy. In addition, this chapter will concentrate on the impacts width
and depth assortments may have, and how it influences customers perceptions. However, these
issues are as well closely connected to the Theory about CUSTOMER SERVICE of store image
presented in the previous chapter. The portfolio Matrix will be presented in this chapter as one
way of maintaining control over product performances and the improvement of these
performances. At the end of the chapter the importance of arranging and displaying products instore, will be discussed. Examples will be given on how this affect CUSTOMER SERVICEs on
both the product range and store image. When deciding what products to offer the consumers it is
essential to remember that humans in general have very few basic needs, a roof over the head
and food in the stomach is enough for survival. However, when the basic needs are fulfilled
infinite amounts of other needs and wants are created. All humans strive to accomplish some of
these needs and wants, taking into consideration the limited amount of resources. Ultimately,
customers will choose the products or services that provide most satisfaction for money. A lamp
bought from the grocery store can very well meet the basic lightning needs and be a good budget
buy, but for others a designer lamp by Arne Jacobsen will create a much higher demand, even
considering the price difference. At the end, the consumer will choose the lamp that gives most
value for the money spent. (see e.g. Kotler, Armstrong, Wong, Saunders 2008, 9). A retailer
should never forget that the products they are offering are not only plain products; it is products
providing the customers with a solution to their problems. Offering a customer a normal lamp
might solve his/her need for lightning but it might not solve his/her underlying desires for a
designer lamp, a lamp that is not only practical but also nice to look at. The case company can be
described a specialty store for furniture, lightning and decoration and therefore, they should not
only offer their customers plain products, they should instead focus on offering products that
28
give brand significance and brand experience to their customers. (see e.g. Kotler, Armstrong,
Wong, Saunders 2008, 9).
5. CUSTOMER'S PERCEPTION OF SERVICE QUALITY IN LIBRARIES
Service quality assesses performance of products and services from customers'
perspective. A library has both tangible products and intangible services. Assessing
Service quality as management technique is of recent origin and new to Library and
Information Science (LIS) professionals. Today, the library customers are open to
multiple sources of information and expect quality material within shortest possible time
irrespective of the format of information. The web technologies and commercial
information service providers have impelled libraries to be customer focused for their
survival. Proper understanding of customers' perceptions along service quality
dimensions is essential for LIS professionals to recognize the customer expectations.
Aligning the products/services to meet customer expectations woul? result in reduced
gaps in perceptions of service quality In this paper, the authors briefly explain the concept
of service quality; trace its development and highlight some of the results of an empirical
study on service quality in academic libraries is presented.
Customers' Perceived Service Quality (P-E)
The SERVQUAL measures of service quality are measured in terms of difference
between customers' perceptions (P) and expectations (E). The magnitude of difference
between them measures how well the facilities and services provided in the library match
the customer when the weighted average scores were considered. The unweighted and
weighted mean scores are reveal that there liability received maximum negative score in
unweighted as well as weighted scores. Responsiveness had the second most negative 2
score. Tangibles and empathy too had significant gaps.
Factors that Influence Customers' Perception of Service Quality
The customers' perception on library will be formed over the period while interacting
with the existing system. Customers' overall opinion about the library facilities and
29
services primarily depends on their own experience in the library. Regression and
ANOVA tests were carried out in this study to identify the factors that might influence the
customers' perceptions of service quality. The results of the study revealed interesting
factors that could influence or moderate the same. A few factors are summarized below:The customers' perception on library will be formed over the period while interacting
with the existing system. Customers' overall opinion about the library facilities and
services primarily depends on their own experience in the library. Regression and
ANOVA tests were carried out in this study to identify the factors that might influence the
customers' perceptions of service quality. The results of the study revealed interesting
factors that could influence or moderate the same.
6. CUSTOMER SERVICE OF SERVICE QUALITY IN BOUTIQUE HOTEL LE
SIX PARIS
This study aims to examine customers perception of service quality in a Parisian
boutique hotel. At the same time, customer satisfaction and customer loyalty are
evaluated, as these two concepts are highly related to service quality. For this purpose a
survey research has been chosen as the most appropriate research method. Data was
collected from 151 customers who visited boutique hotel Le Six and a benchmark has
been developed to interpret the results. The results of the study show that overall service
quality at hotel Le Six is highly rated by its customers. Respondents are very satis ed
with their stay, although they remain price conscious. An additional contribution of this
study is the recon rmation of the general conceptual framework of service quality in
hospitality rms by Ekinci, Dawes and Massey (2008), in the unique sett ing of a
boutique hotel. The aim of this study was to investigate customers perception of service
quality in boutique hotel Le Six. In the first place a theoretical framework for service
quality in boutique hotels was developed based on an extended literature review.
7. CUSTOMER SERVICE of service quality at the Business Studies Unit of the Durban
University of Technology
30
Customer satisfaction is the key ingredient to the success of any business. This is the most
important factor that creates loyal customers. Presently, organisations are attempting to obtain
increased customer satisfaction by focusing on the quality of their products and the service
provided. Students were identified as customers of HEIs. This research focuses on the
determination of CUSTOMER SERVICE of service quality at the Business Studies Unit (BSU)
of the Durban University of Technology. The objectives were: to identify expectations of
students of the BSU; to identify the perceptions of students of the BSU and to measure and
compare the expectations and perceptions of students using the SERVQUAL score.
CUSTOMER SERVICEs were determined by means of a quantitative survey conducted at the
BSU lecture venues using the self-administered SERVQUAL questionnaire. One hundred and
ninety five respondents were surveyed. Data was analysed using descriptive and inferential
statistics. The questionnaire measured students expectations and perceptions in five dimensions
of service that consists of tangibles, reliability, assurance, responsiveness and empathy. The
results demonstrated that in each of the five SERVQUAL dimensions, there was a negative
quality gap. The largest gap was in the tangibles dimension. Also, there were significant
differences between perceptions and expectations of students in all of the five SERVQUAL
dimensions (p<0.001) Improvements are needed across all five dimensions. Results have shown
that students perception of service quality at the BSU falls below their expectations, presenting
a great challenge to the institution. In order to improve service quality, it is recommended that
the BSU regularly assesses employees, as well as customers experiences and provide prompt
feedback.
31
In recent years, the relationship perspective of marketing has had a profound impact on the
customer service business. The new focus on customer profitability revealed that the effective
management of satisfied and faithful customers gains the company an improvement of economic
and competitive situation (Yang & Peterson, 2004). Thus the delivering of superior customer
value has become vital for a company to maintain long-term relationships with their customers.
However, significant changes in both economic environment and marketing thought have altered
the customer value perception. From customer perspective, whether or not the customers receive
the value they expect will very much depend on the many ever changing factors.
Regardless of a small size and geographical location Lithuanian economy is an emerging one.
Most of existing literature agrees that emerging economy countries are those undergoing rapid
growth and the adoption of a free market system (Hoskisson et al., 2000). Throughout the
economic transformation period rapid and deep restructuring in economic systems (Child &
Czegledy, 1996) and deregulation in retail banking sector helped to foster intensifying
competition (Gardener et al., 1999). Lithuanian banking business in the last two decades has
been significantly influenced by the processes of market liberalization and globalisation that
leads to hyper-competitive conditions in market. Retail banking market has been undergoing a
constant change with the changes of monetary policy, bank mergers and acquisitions, intense
competition in growing demand for financial services and dramatic decline in it during the period
of 2008- 2010. Furthermore, economic recession had a negative effect on the bank customer
value perceptions, satisfaction and loyalty in the Baltic countries (Titko & Lace, 2010). In the
period of economic recession customers re-evaluate the services provided by the banks. Banks,
in their turn, re-evaluate their customers distinguishing the profitable ones from unprofitable and
offering different services to these segments as the one size fits all marketing management
approach is not working any more. Thus the financial institutions products, services, and
marketing communication need adaptations.
CHAPTER III
RESEARCH METHODOLOGY
32
33
Identifying the customers of the Business Studies Unit (BSU) is important in order to know how
to proceed in establishing a feedback mechanism. Establishing a feedback mechanism is
accomplished through a systematic, factual collection of data from customers so that the BSU
can establish whether or not its service provision is efficient. This information would then be
used for the purpose of continuous improvement.
(b)Secondary data
Secondary data were collected from books, Newspaper, websites and company
documents etc.
34
Sampling Method
The researcher has been adopted to select simple random sampling method
Sample size
The researcher has selected 40 clients of S.M.I LOGISTICS PVT LTD in Chennai.
---------------------------- x 100
Total number of respondents
Weighted Average :
The from weighted average usually report to a weighted arithmetic mean but weighted
verses of other means can also be calculated such as the weighted Geometric mean
harmonic mean.
Weighted Average = Wx
x
(W) Weight
35
weighted
Feedback is just the representative of the entire population; it only states the opinion of a few
respondents.
Being student of MBA I could not spare much time for it and hence I could not go for very big
sample size.
Consultation with Experts would have largely improved quality of the Research.
The sample of the respondents chosen for the study might not be representative.
Analysis of the proposed aspects might differ depending on the tools and techniques used.
36
CHAPTER 5
37
Volume of goods
No.of.respondents
Percentage
%
50-100
20
50
100-250
12
30
250-500
10
500 above
10
TOTAL
40
100
CHART
38
The following table 5.2 explains the details of the respondents on export market.
TABLE 5.2
Region
No.of.respondents Percentage
%
UK
18
45
USA
12
30
SOUTH EAST
20
OTHERS
TOTAL
40
100
CHART
40
TABLE 5.3
Percentage
Exportation of goods No.of.respondents
Daily
18
45
Monthly
17
43
Weekly
12
6 months once
40
100
TOTAL
CHART
42
Intrepredation:
The table 5.3 shows that 43% of the respondents have been exportation of
goods as mothly and 12% of the respondents have been exportation of goods as weekly basis.
Inference:
Most 45% of the respondents have been exportation goods as daily.
43
Service pricing
No.of.respondents
Percentage
%
Reasonable
24
60
Higher
12
30
Lower
10
TOTAL
40
100
CHART
44
Interpretations:
The table 5.4 shows that 30 % of the respondents opinion on pricing is higher.
and 10% of the respondents opinion on pricing is lower.
Inference:
Most 60% of the respondents opinion on pricing is reasonable.
Factors
No.of.respondents Percentage
%
14
35
Locality
12
30
10
10
25
40
100
CHART
46
The following table 3.5 reveals the explain the period of dealing with S.M.I
LOGISTICS PVT LTD services.
TABLE5.6
Particular
No.of.respondents Percentage
%
16
40
2 year
14
35
3 year
10
25
Above
40
100
TOTAL
CHART
48
The following table 5.7 explains the detail of the respondents on transportation
services.
TABLE 5.7
No.of.respondents Weight Wx
Transportation services
(x)
(W)
Highly satisfied
20
80
Satisfied
17
51
Moderate
Dissatisfied
x=40
Wx=136
= 3.4
The average value of 3.4% show that majority of the respondents are satisfied with
transportation service.
5.8 SATISFACTION ON CUSTOMER FRIEGHT STATION OPERATION:
The following table 5.8 Satisfaction of the respondents on customer freight station
of S.M.I LOGISTICS PVT LTD .
50
TABLE 5.8
No.of.respondents Weight Wx
Customer freight station
(x)
(W)
Highly satisfied
18
54
Satisfied
13
52
Moderate
14
Dissatisfied
x=40
Wx=122
51
(W)
25
75
Satisfied
16
Dissatisfied
High satisfied
x=40
Wx=98
52
Weight
Wx
Liner services
(x)
(W)
Highly satisfied
15
60
Satisfied
12
36
Moderate
14
Dissatisfied
x=40
Wx= 124
53
Percentage
Particular No.of.respondents
Yes
26
65
No
14
35
CHART
Interpretation:
The table 5.11 shows that 35% of the respondents revealed that the freight rate is
competitive with other players.
Inference :
Most 65% of the respondents agreed that the freight rate is competitive
54
55
31
78
No
22
Total
40
100
CHART
Interpretation:
The table 5.12 shows that 22% of the respondents reveal that information
technology in the operation are bad.
Inference
Most 78% of the respondents reveal that information technology adopted in the
operations is good.
56
Percentage
(x)
Highly satisfied
20
50
Satisfied
15
37.5
Dissatisfied
12.5
40
100
CHART
INFERENCE
From the above it can be inferred that 502% of the respondents are highly satisfied on the
value added services, 37.5% of the respondents are satisfied on the value added services and
12.5% of the respondents are dissatisfied on the value added services
58
No.of.respondents
(x)
59
Percentage
Very
22
55
18
45
40
100
consistency
Consistency
CHART
Interpretation:
The above table 5.14 shows that 45% of the respondents revealed that the
delivering of the cargo to the destination is inconsistency.
Inference:
The most 55%of the respondents revealed that the delivering of the cargo to the
destinations very consistency.
60
No.of.respondents
(x)
Weight
Wx
(W)
Excellent
12
36
Good
13
13
Satisfied
15
30
61
Poor
x=40
Wx=79
x
=
79
40
Yes
34
85
No
15
TOTAL
40
100
Inference:
1.97
The average value of 1.97% of the respondents are satisfied with professionalism
and response level
5.16 OPINION ON FEEDBACK:
The following table 5.16 explains the details of the respondents opinion on
feedback.
TABLE 5.16
62
CHART
63
STATISTICAL TOOLS
RANK CORRELATION
OBJECTIVE:
To find out the relationship between the transportation services in moving cargo one
place to another place and factors influences for S.M.I LOGISTICS PVT LTD
R1
R2
D= R1 R2
D2
20
14
17
12
-1
10
-2
64
D2 =5
6D2
R = 1 - --------------N (n2 1)
= 1 6(5) / 4(15)
= 1- 0.5
R = 0.5
INFERENCE:
From the above rank correlation it is inferred that r = 0.5 (Positive Correlation), there is a
positive correlation between the transportation services in moving cargo one place to another
place and factors influences for S.M.I LOGISTICS PVT LTD
65
WEIGHTED AVERAGE
OBJECTIVE:
PERCEPTION ON PROFESSSIONALISM AND RESPONSE LEVEL:
The following table 3.16 reveals the explain the details of perception on
respondents of professionalism and response level
TABLE 5.15
Particular
No.of.respondents
(x)
Weight
Wx
(W)
Excellent
12
36
Good
13
13
Satisfied
15
30
Poor
x=40
Wx=79
x
=
79/40 =
1.97
Inference:
The average value of 1.97% of the respondents are satisfied with professionalism
and response level
CHAPTER 6
FINDINGS OF THE STUDY
67
Most 50% of the respondents have been 50-100 volume of goods handled through S.M.I
LOGISTICS PVT LTD services.
Most 45% of the respondents have been export market of UK through S.M.I LOGISTICS
PVT LTD services.
Most Majority 35% of the respondents are selection for low price in service
The less than 1 year 40% of the respondents are experience with S.M.I LOGISTICS PVT
LTD service.
The average value of 3.4% show that majority of the respondents are satisfied with
transportation service.
The average value of 3.05% shows that most of the respondents are highly satisfied with
customer freight station services provided by S.M.I LOGISTICS PVT LTD .
The average value of 2.45% shows that most of the respondents are satisfied with
customs house agent operation.
68
The average value of 2.9 shows that most of the respondents are satisfied with the liner
services
Most 65% of the respondents agreed that the freight rate is competitive
Most 78% of the respondents reveal that information technology adopted in the
operations is good
The average value of 2.3% shows that most of the respondents are satisfied with value
added services
The most 55%of the respondents revealed that the delivering of the cargo to the
destinations very consistency.
The average value of 1.97% of the respondents are satisfied with professionalism and
response level
The average value of 1.97% of the respondents are satisfied with professionalism and
response level
The most of 85% of the respondents are highly satisfaction by the feedback provided by
the S.M.I LOGISTICS PVT LTD .
69
CHAPTER 7
SUGGESTIONS
70
SUGGESTIONS
The Logistics company should ask the customer to send the invoices before planning
The Logistics company should arrange the training for using advanced technology
Before filling shipping bill the Logistics company should verify all the details related
goods.
The Logistics company should choose the right customer freight station which is
providing all godown facilities.
The container should be reached the port as soon as possible based on that the planning
should in advance.
In the problem of vessel delay they have to rearrange the planning to send the goods to
another vessel.
The logistic company should ask the customer to send the goods as earlier as possible.
The Logistics company should ask the customer to arrange the vehicles in good
condition
71
CONCLUSION
72
CONCLUSION
A detailed analysis about the S.M.I LOGISTICS PVT LTD Logistics services to customer
requirements and satisfaction needs. They survey include various CUSTOMER SERVICE
service provided by S.M.I LOGISTICS PVT LTD company in Chennai
All the important aspects observed from the study and the valuable suggestions. The analysis of
the study. It will helpful for the company in understanding the awareness and Satisfaction among
customer needs.
73
ANNEXURES
74
Company Name:-
2.
Address:-
3.
4.
5.
6.
50 to 100 teus
Most of the service through S.M.I LOGISTICS PVT LTD to which region
U.K.
U.S.A.
South East
Others
Weekly
Monthly
6 Months once
Whether the S.M.I LOGISTICS PVT LTD provide competitive price to the customer
Reasonable
higher
Lower
7.
Which factor make you to select the S.M.I LOGISTICS PVT LTD.
Low price in service
Locality
Skilled workmanship
75
8.
9.
How long you are dealing with S.M.I LOGISTICS PVT LTD .
Less than one year
2 year
3 year
above
Rate the transportation service in moving cargo one place to another place through S.M.I
LOGISTICS PVT LTD.
10.
Highly satisfied
Satisfied
Moderate
Dissatisfied
Rate the service provided by the S.M.I LOGISTICS PVT LTD in clearing Cargo from
CFS
11.
Highly satisfied
Satisfied
Moderate
Dissatisfied
Rate the service provided by the customs House Agent operation than by S.M.I
LOGISTICS PVT LTD
Highly satisfied
satisfied
Dissatisfied
12
Whether the Information provided by S.M.I LOGISTICS PVT LTD regarding liner
service is satisfied.
13
highly satisfied
Satisfied
Moderate
Dissatisfied
No
76
14.
15.
16.
No
The satisfaction on valued added service provided by S.M.I LOGISTICS PVT LTD .
highly satisfied
Satisfied
Moderate
Dissatisfied
17.
18.
Inconsistency
Rate the services of professionalism and response level of S.M.I LOGISTICS PVT LTD .
Excellent
good
Satisfaction
poor
19.
No
a)
b)
c)
d)
e)
78
BIBILIOGRAPHY
BOOKS
79
80