A

Summer Internship Project Report

On
“Study Of Consumer Durable Loan At BAJAJ FINSERV
LIMITED”

Submitted in the partial fulfilment of the requirements for

Post Graduate Diploma in Management - PGDM

SUBMITTED BY
Name: Alfiya Shaikh
Roll No: 106
Batch: 2016-18

UNDER GUIDANCE OF
Prof. Sandeep Sawant

SUBMITTED TO

Kohinoor Business School,

Mumbai
 DECLARATION

This is to declare that I Alfiya Shaikh student of Kohinoor Business

School, PGDM batch 2016-2017, has given original data and
information to the best of my knowledge in the project report titled
Study Of Consumer Durable Loan At BAJAJ FINSERV
LIMITED is a record of independent work carried out by me under the
guidance and supervision of the Prof. Sandeep Sawant towards the
partial fulfilment of requirement for the PGDM course.

Date: 15 July, 2017 Name: Alfiya Shaikh

Place: Mumbai Roll No: 106
Specialisation: Marketing
 CERTIFICATE
This is to certify that the project entitled “Study Of Consumer
Durable Loan At BAJAJ FINSERV LIMITED, submitted to
Kohinoor Business School, Mumbai in the partial fulfilment of the
requirements for the award of the Post Graduate Diploma in
Management (PGDM) embodies the results of bonafide project work
carried out by Alfiya Shaikh under my guidance and supervision.

To the best of my knowledge the results embodied in this project have

not been submitted to any other university or institute for the award of
Degree or Diploma. The assistance and help received during the course
of this investigation has been duly acknowledged.

Project Guide: Sandeep Sawant

Date:
Place: Mumbai
 Acknowledgement
It gives me immense pleasure to present this Project Report. However,
it would not have been possible without help and support of all the team
members of Bajaj Finserv Limited.

I would like to thank project Mr. Sandeep Sharma and Mr.Vivek

Kumar for guiding me in my tenure of internship and my trainers for
supporting me, helping me and teaching me with the process on
Analysis of Consumer Behaviour towards consumer durable loan at
Bajaj Finance. Without their support and guidance I wouldn’t have
come so far to prepare this report.

I would like to thank my Prof.Sandeep Sawant for guiding and

supporting me. I am very thankful to Mr.Mahendra & Mrs. Jayashri
Madam and Kohinoor Library for providing me with the relevant data
and information. I would like to express my thankfulness to Kohinoor
Business School, who has given me great opportunity to work on this
project.

I am also grateful to my loving parents and my kind friends whose

prayers, affection and support are always a source of encouragement.
Their suggestions and supply of information were really very valuable
and helpful to me. Their continuous encouragement and support helped
me for completing this project successfully.

Alfiya Shaikh
Roll No: 106
Specialization: Marketing
Kohinoor Business School
 INDEX
Sr. No Particulars Page No

Executive Summary

1 Introduction
1.1 Consumer durable industry in India 1
1.2 Consumer durable loans 2

2 Company Profile
2.1 About Bajaj Finserv 3
2.2 Corporate Background 3
2.3 Bajaj Finance Businesses 4
2.4 What does Bajaj Finance stand for 4
2.5 Vision and Mission 5
2.6 Objectives of the Organisation 5
2.7 Values 6
2.8 Key Strategic Differentiators 7
2.9 Product Profile 8
2.10 Organisational hierarchy 9
2.11 Competitors 12
2.12 Awards and Recognition 12
2.13 SWOT Analysis 13

3 About the Topic

3.1 Consumer Behaviour 16
3.2 Customer Satisfaction 17
3.3 Customer Perception 18
21
4 Research Methodology
4.1 Objectives 21
4.2 Scope 21
4.3 Data Collection Method 21
4.4 Limitation 21
5 Body of Work 22
6 Understanding the Process 24
7 Data Analysis and interpretation 26
8 Findings and Recommendations
8.1 Findings 37
8.2 Recommendations 37
Conclusion 39
Bibliography 40
CHAPTER 1 INTRODUCTION

1.1 Consumer Durable Industry and India

Consumer durables is one of the fastest growing industry segments in India. This industry has
demand from both Urban and rural market. Urban market accounts for a major share i.e., 65%
of the total revenues in the Indian consumer Durable Sector. In Rural Market, durables such as
refrigerators and consumer electronic goods are likely to witness growing demand in the
coming years. India is likely to emerge as the world’s largest middle class consumer market
with an aggregated spend of nearly US$13 trillion by 2030 as per a report by Deloilte titted,
“India matters, winning in growth markets”. As against the Compound Annual Growth Rate
(CAGR) of 13% in FY 13- FY 14, CAGR of 14.8% in FY 2015. India’s consumer durables
industry accounts for more than 2/5th of end- consumer spending, and creates three indirect
jobs for every direct job and contributes to more than 5.5% of the index of industrial production
according to a Federation of Indian Chambers of Commerce and Industry- Ernst &Young
Report.

India is expected to become the fifth largest consumer durables market in the world by 2025.
The consumer electronics market is expected to increase to US$ 400 billion by 2020. The
production is expected to reach US$ 104 billion by 2016.

The sector is expected to double at 14.7 per cent compound annual growth rate (CAGR) to
US$ 12.5 billion in FY15 from US$ 6.3 billion in FY10. Urban markets account for the major
share (65 per cent) of total revenues in the consumer durables sector in the country. Demand
in urban markets is expected to increase for non-essential products such as LED TVs, laptops,
split ACs and, beauty and wellness products. In rural markets, durables like refrigerators as
well as consumer electronic goods are likely to witness growing demand in the coming years
as the government plans to invest significantly in rural electrification.

The Government of India has increased liberalization which has favoured foreign direct
investments (FDI). Also, policies such as National Electronics Mission and digitization of
television and setting up of Electronic Hardware Technology Parks (EHTPs) are expected to
boost the growth of this sector.
1.2Consumer Durable Loan

A Durable Finance helps you improve your lifestyle by providing you with options to purchase
an LED TV, Mobiles, ACs, Laptops, Refrigerators and Washing Machines etc. on easy
monthly installments.

Consumer durable finance means to provide the finance on the consumer durable product like,
washing machinist, TV, mobile phones etc. it is known as consumer durable finance.
The consumer durable finance provide the 0% interest on durable product to the consumer,
This gives customers another compelling reason to opt for 0% interest Consumer Durables
Finance for their durables purchases. Consumer durables finance schemes are generally
available at the dealer location (point of sale) or the showroom. The beneficiaries are not just
customers – lenders, manufacturers, and retailers too benefit. Manufacturers gain from the
resultant boost to sales and increased consumer preference towards high-margin products.
Financing schemes enable customers, especially those with lower income levels, to use future
income streams to buy consumer products upfront and pay in installments over a period.

The most popular finance scheme prevalent in the market currently is the 12/4 scheme, where
the financier collects the amount for the first four months as initial down payment from the
buyer and then disburses the full amount to the dealer. The financier then recovers the balance
amount in 8 monthly installments from the buyer. The interest and processing charges are
generally paid upfront by the manufacturer to the financier. Consumer durables financing
appears robust, continued support from manufacturers (who are effectively bearing the interest
costs currently) would be critical to sustain high growth.
CHAPTER 2 COMPANY PROFILE

2.1About Bajaj Finserv

Bajaj Finance Limited, a subsidiary of Bajaj Finserv, is an Indian Non-Banking Financial

Company (NBFC). The company deals in Consumer Finance, SME (Small and Medium-sized
Enterprises) and Commercial Lending, and Wealth Management. They are a consumer focused
company with emphasis on profitable growth and operational efficiency to deliver best results
to all its stakeholders.

The company is a 29-year-old most diversified non-bank in India with a demonstrated track
record of profitability. Apart from being the largest financier of consumer durables in India
they are also one of the most profitable firms in this category

2.2 Corporate background

Originally incorporated as Bajaj Auto Finance Limited on March 25, 1987, the non-
bank singularly focused on providing two and three wheeler finance. After 11 years in the auto
finance market, Bajaj Auto Finance Ltd launched its initial public issue of equity share and was
listed on the BSE and NSE.

At the turn of the 20th century, the company ventured into the durables finance sector, making
a relatively smooth transition to the unexplored space. In the subsequent years, Bajaj Auto
Finance diversified into business and property loans as well.
2.3 Bajaj Finance Business

2.4 What does Bajaj Finance stand for?

 Non-bank with strategy & structure of a bank with consistent track record of
profitability
 Focused on mass affluent & above clients with strong cross sell orientation
 Diversified financial services strategy seeks to optimise risk and profit to deliver a
sustainable business model
 Business continuous innovation to transform customer experience to create growth
opportunities …
 AUM US $9.26 bn, Net NPA 0.44%,Capital adequacy of 20.3% - Credit Rating of
AAA by CRISIL (S&P), India Ratings (Fitch) and CARE .
2.5 Vision and Mission

Vision:

Bajaj Finserv has a vision to become a full-fledged financial services company and be the
financial partner to the Indian consumer and help him across his financial needs, whether for
finance, for investment management, for protection or for post-retirement support, throughout
his lifecycle.

Mission:
Bajaj Finserv aims to be the most useful, reliable and efficient provider of Financial Services.
It is our continuous endeavor to be a trustworthy advisor to our clients, helping them achieve
their financial goals.

2.6 Objective of the Organization:

Our main objects as contained in our Memorandum of Association include:
1. To Finance industrial by way advance ,deposit or lend money, securities and propertied
or with any Company, Body corporate, trust, firm, person or association whether falling
under the same management or otherwise, with or without security and on such terms
as may be determined from time to time, and to carry on and undertake the business of
finance and investment and to provide venture capital, seed capital, loan capital and to
participate in equity preference share capital or to give guarantees on behalf of the
company in the matter and to promote companies engaged in industrial and trading
business and to act as Financial Consultants, Management Consultants, Brokers,
Dealers, Agents and to carry on the business of share broking, money broking
,exchange broking, bill broking and general brokers for shares ,debentures, debenture-
stock, bonds, units, obligations, securities ,commodities, bullion currencies and to
manage the funds of any person, firm, body corporate or trust by investment in various
avenues like Growth Fund, income fund, risk fund, tax exempt funds, pension
/superannuation funds and to pass on the benefits of portfolio investments to the
investor as dividends, bonus, interest, etc.
2. To carry on the business as an investment company and to underwrite, sub-underwrite,
to investigating , and acquire by gift or otherwise and hold, sell, buy or otherwise deal
in shares debentures, debentures-stocks, bond, units, obligations and securities issued
 or guaranteed by Indian or Foreign Governments, States, Dominions, Sovereigns,
Municipalities.

2.7 Our Values

•WE RESPECT THE OPINIONS AND DECISIONS OF OTHERS

EMPOWERMENT •WE ENCOURAGE AND BACK PEOPLE TO DO THEIR BEST

•WE ARE WILLING TO LEAN AND ADAPT TO THE ENVIRONMENT,OUR

FLEXIBILITY PARTNER AND CUSTOMERS EVEOLVING NEEDS

•WE ALWAYS STRIVE TO CHANGE THE STATUS QUO

ENTREPRENEURSHIP •WE INNOVATE WITH NEW IDEAS AND ENERGIES WITH A STRONG
PASSION AND ENTREPRENEURIAL SKILLS

•WE BELIEVE WE MUST WORK WITH HONESTY TRUTH AND THE INMATE
TRANSPARENCY DESIRE TO DO WELL

•WE ARE DRIVEN BY THE DESIRE TO CREATE A MEANINGFUL DIFFERENCE

IMPACT IN SOCIETY
2.8 Key Strategic Differentiators

Part of the Bajaj Group – one of the oldest &

A trusted brand with strong brand equity
most respected business houses

Focus on mass affluent and above clients Overall franchise of 20.13MM and Cross sell
client base of 11MM

Strong focus on cross selling assets, insurance Consumer PPC of 3.23 and SME PPC of 4.71 vs
and wealth products to existing cutomer corresponding Consumer PPC of 2.82 and SME
PPC of 3.59 last year

Diversified lending strategy AUM mix for Consumer : SME : Commercial :

Rural stood at 45% : 37% : 13% : 5%

Continuous improvements in features of

Highly agile & highly innovative products & timely transitions to maintain
Brand Identity
competitive edge

Has helped establish a highly metricised

Deep investment in technology and analytics
company and manage risk & controllership
effectively
2.9 Product Profile of the Organisation

Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two
Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer Durable Loans,
Personal Loans, Loan against Property, Small Business Loans, Construction Equipment Loans,
Loan against Securities and Insurance Services under the name of Bajaj Finserv Lending. Bajaj
Finserv Lending is one of the most diversified NBFCs in the market catering to more than 5
million customers across the country. Apart from being a well-recognized organization, they
pride us for holding the highest credit rating of FAAA/Stable for any NBFC in the country
today. The product offerings include Consumer Durable Loans, Personal Loans, Loan against
Property, Small Business Loans, Two-wheeler and Three – Wheeler Loans, Construction
Equipment Loans, Loans against Securities and Insurance Services.

1.Personal Loan
2.Home Loan
3.EMI Card
4.Durable Loan
5.Lifestyle Finance
6.Digital Product Fianace
7.Clothes & Accessories
8.Daily Needs
9.Travel & Holiday
10.Shop On E-Commerce
11.Doctor Loan
12.Chartered Accountant Loan
13.Engineer Loan
14.Business Loan
15.Loan Against Property
16.Loan Against Shares
17.Extended Warranty
18.Two And Three Wheeler Finance
19.Gold Loan
20.Fixed Deposit
 21.Mutual Funds
22.General Insurance
23.Life Insurance
24.Credit Card

2.9.1 Products Covered:

0% interest Consumer Durables Finance is available on a wide range of products and in over
101 cities across India. Hereunder is an indicative list of products covered?
 LED/LCD/CTV
 Washing Machines
 Microwave Ovens
 Refrigerators,
 Cameras/Camcorders
 Dishwashers
 Generators
 Cooking Range products
 Dryers
 Laptops / Desktops (Select)
 Smart phones (Select)
 Air purifiers / Water Purifiers / R.O.
 Music Systems
 Inverters
 Air conditioners

2.10 Organisational Hierarchy

A key issue in accomplishing the goals identified in the planning process is structuring the
work of organization. Organizations are group of people, with ideas and resources working
toward common goals. The purpose of the organizing function is to make the best use of the
organizations resources to achieve organizational goals. Organizational Structure is the formal
decisions making framework by which job tasks are divided, grouped and coordinated.
Formalization is an important aspect of structure. It is the extent to which the unit of
organization is explicitly defined and its policies, procedures and goals are clearly stated. It is
the official organizational structure conceived and built by top management. The formal
organization can be seen and represented in chart form. An organization chart displays the
organizational structure and shows job titles, lines of authority and relationship between
departments. Organizational Structure allows the expressed allocation of responsibilities for
different functions and processes to different entities. Ordinary description of such entities is
as branch site, department, work group and single group of people.

ADMINISTRATION

CREDIT TEAM
DEPARTMENT

COLLECTION

HUMAN
RESOURCE

MARKETING

OPERATIONS

PRODUCT

SALES

Departments at Bajaj Finance

 Corporate hierarchy

Management Committee
2.11 Competitors

1. Capital First
2. HDFC Finance
3. Tata Capital
4. Reliance Capital

2.12 Awards & Recognition

1)Best Employers in India

Bajaj Fianance have been recognized as one of the Best Employers in India, for the second year
in a row in the Aon Hewitt Best Employers Study, 2015.

2)ToP 25 Workplaces in Asia

Bajaj Finserv Limited has been ranked amongst the top 25 best places to work in Asia by the
Great Place to Work (GPTW) Institute.

In this inaugural list, 900 companies across Asia Pacific were evaluated and benchmarked in
the following three categories:

10 Best Multinational Workplaces in Asia 2015

Best Small & Medium-sized Workplaces in Asia 2015 (50-500 Employees)

25 Best Workplaces in Asia 2015 (500 + Employees)

Bajaj Finserv have been awarded in the category of 25 Best Workplaces in Asia 2015 (500 +
Employees)and have been ranked No. 23. There are only 9 other Indian companies in this list
and we are also amongst the only two BFSI companies featured in this ranking.

3)Top 3 Financial Services Company

Bajaj Finserv is ranked among Top 3 Financial Services Companies to work for in India.
4)CIO 100

Recently, we also won the CIO 100 Innovation award for two of our innovations - EMI
Card and Flexi saver.

2.13 SWOT Analysis

STRENGHTS

THREATS
SWOT OPPORTUNITIES
ANALYSIS

WEAKNESS

Strengths -

 Monopoly player in the Consumer durable finance market.

 Insurance Product are an incredible product also
 providing cross sale.

 0% finance facility.

 EMI Card provided for existing customer is one of a kind

service.

 BFL has presence at all the major retail counters

throughout the country.

 Strong network of executives with a responsible

managerial hierarchy.

Weakness -

 Low Control on the Payment Default by customers.

 Concentration needed on cross selling.

 Lot of dependence on the Online Support System.

 Customer Service and handling needs improvement.

Opportunities -

 Market has a lot of growth opportunities.

Consumer Finance being an untapped market holds great
scope.
  Use the market as a good platform for cross selling.

 Create a brand identity of its own, strengthening the brand

Bajaj.

 Opportunities in Rural market.

 Opportunities available to reach the top position amongst

the Finance Companies and establish itself internationally.

Threats -

 New competitors entering the market with similar offerings.

(HDFC, Shriram).

 There is always a threat of Losses due to payment defaults in such

business.
CHAPTER 3

3.1 Consumer Behaviour

It is defined as all psychological social and physical behavior of potential customer as they
become aware evaluate purchase and consume and tell to others about the product and services.
Buying behavior involves both individual (psychological) and group process,
 Buyer behavior is reflected from awareness right through post purchase evaluation
indicating satisfaction and non satisfaction, from purchaser
 Buyer behavior includes communication, purchasing, and consumption behavior
 Consumer behavior is basically social in nature hence the social factors play important
role in shaping buying behavior

Hence we can say consumer behavior is an orderly process whereby the consumer interacts
with the environment for making a purchase decision on products
CONSUMER BEHAVIOR AND MARKETING MANAGEMENT
Marketing managements work around consumers which is actually the market for them,
 Understanding their behavior is very vital in every segment to plan marketing activities
accordingly.
 Both industrial and individual customers are vital in marketing management

DIVERSITY OF CONSUMER BEHAVIOR

Customer and consumer words are referred as synonyms but the difference exists, like
Customer is the purchaser of products or services may or may not be the end user on the other
hand consumer is the end user may or may not be the purchaser.
New age of business demands, differentiation of customers by individual differences in
consumer expectations, preferences and influence.
Firms need to go into deep of consumer behavior to analyze and act to achieve objectives.
NEED FOR STUDYING CONSUMER BEHAVIOR
Consumer behavior can be said to be the study of how individuals make decision on how to
spend their available resources (time, Money, effort) on various consumption related items.
That means consumer behavior tells the markets to resolve every activity around the ultimate
consumers & gauge their behavior by specially focusing on,
 Who buys products or services?
 How do they buy products or services?
 Where do they buy them?
 How often they buy them?
 Why do they buy them?
 How often they use them?
These questions will help in understanding better what factors influences the decision making
process of the customers. The decision making process identifies the number of people who
are involve in this process & describes a role to them like users decides, influences & buyers.
It is believed that consumers or customers make purchase decision on the basis of receipt of a
small number of selectivity chosen pieces of information. Thus, it will be very important to
understand what & how much them to evaluate the goods & services offerings.
CONSUMER DECISION MAKING PROCESS
 Stimuli need, reasons, influences, gathering information
 Information processing- process, analyze information about product.
 Decision making on the basis of analysis, decision to go for
 Response to buy without any partiality

FACTOR INFLUENCING BUYING BEAVIOR

Individual Factor
 Cognitive thinking process – perception, attitude, needs/motives
 Personal characteristics – demography, lifestyles, personal traits

Environmental Factors
 Culture – Values, beliefs, sub-culture / cross cultural group
 Social Class, Society
 Influence group – family, opinion leaders, reference group
 Situational variables – purchase occasion, market communication, shopping behavior,
price, sales influence, product position

3.2 Consumer Satisfaction

All business firms have realized that marketing is a core element of management philosophy
and the key to its success lies in focusing more on the customers. That is, it will be the customer
who will decide where the firm is heading. Thus, the challenge before the marketer is to ensure
that they should satisfy every customer.
Satisfaction is an important element in the evaluating stage. Satisfaction refers to the buyers
state of being adequately rewarded in a buying situation for the sacrifices he has made one the
customer purchase and use the product they may then become either satisfy or dissatisfied.
The result of the satisfaction to customer from the purchaser of the product or services is that
more favorable post-purchase attitude, higher purchase intention & brand loyalty to be
exhibited that the same behavior is likely to be exhibited in a similar purchasing situation. The
term ‘consumer’ is a typically used to refer to someone who regularly purchase from a
particular store or company.
Customers are people who are happy with the product & services and are willing to come back
and pay for it again.
Today the firms aim to give satisfaction to the customer through marketing concepts. The firm
try to help buyers in the solving the problem then competitors. The marketers must see that
consumers with purchasing power constitute a potential buyer are identified. It is essential for
the marketer to carry out the business in such a way that they give satisfaction to consumers
needed. When a firm markets a product or service it should aim to enjoy consumer’s
satisfaction & profit maximization.
CONSUMER RESEARCH
Consumer research is the methodology used to study consumer behavior research offer set
diverse to identify consumer needs it is used to identify both felt & unfelt needs, to learn how
consumers. Perceive product & brand & stores. What their attitudes are before and after
promotional campaigns & how & why they make their consumption decision.

3.3 Customer Perception

Different customers may perceive one and the same product or service in different ways. A
customer’s perception of an offering may even deviate from what the producer or service
provider or marketer had intended. This may cause serious problems in today’s attention
economy. Everybody is exposed to more and more diverse information than ever before. It is
hard enough for an offering to get a potential customer’s attention at all. If the customer’s
perception of this offering is an unfavourable one, it probably will not get a second chance to
make a better impression.

Why customer perception is important for businesses

In today’s globalising economy competition is getting more and more fierce. That means it
becomes more difficult for products and services to differentiate themselves from other
offerings than ever before.

Not only is the number of competitive offerings rising due to globalisation of production,
sourcing, logistics and access to information. Many products and services face new competition
from substitutes and from completely new offerings or bundles from industry outsiders. Since
product differences are closed at an increasing speed and many companies try to win the battle
for customers by price reductions, products and services tend to become commodities.

On the other hand, customer behaviour becomes more hybrid. On one hand, customers are
increasingly price sensitive – searching for bargains at marketplaces like ebay or buying their
groceries at discount markets. On the other hand they enjoy branded and luxury goods. One
and the same person may plan a weekend trip with a no-frills airline and a stay at a five-star-
hotel.In the result, customers have a wider choice of often less distinguishable products and
they are much better informed. For many offerings the balance of power shifts towards the
customer. Customers are widely aware of their greater power, which raises their expectations
on how companies should care for them.
Bringing it all together, it becomes ever more difficult to differentiate a product or service by
traditional categories like price, quality, functionality etc.

In this situation the development of a strong relationship between customers and a company
could likely prove to be a significant opportunity for competitive advantage. This relationship
is not longer based on features like price and quality alone. Today it is more the perceived
experience a customer makes in his various interactions with a company (e.g. how fast, easy,
efficient and reliable the process is) that can make or break the relationship. Problems during
a single transaction can damage a so far favourable customer perception.

Customer loyalty and customer perception

The consequence for companies is that they have to adapt their ways of competing for
customers. Traditionally, companies have focused their efforts of customer relationship
management on issues like customer satisfaction and targeted marketing activities like event
marketing, direct marketing or advertising. Although doubtless necessary and beneficial, these
activities are not longer enough. They narrow the relationship between company and customer
down to a particular set of contacts in which the company invests its efforts. Most likely this
will produce not more than a satisfied customer who is well aware of the companies offerings
and has a positive attitude towards them. However, a satisfied customer is not necessarily a
loyal one.

If a customer is satisfied that means that a product of service has met his expectations and that
he was not dissatisfied by it. Customer satisfaction is doubtlessly very important. It is the
precondition for repeat purchases and it prevents the customer from telling others about his
disappointing experiences. A loyal customer, however, is more than a customer who frequently
purchases from a company.

The difference is the emotional bond which links the customer so closely to the company that
he develops a clear preference for these products or brands and is even willing to recommend
them to others. Loyal customers truly prefer a product, brand or company over competitive
offerings. Thus loyalty goes beyond a rational decision for known quality or superior price-
performance-ratio. It is about the customers’ feelings and the customer perception about the
brand or product.

When the customer makes his buying decision, he evaluates the benefits he perceives from a
particular product and compares them with the costs. The value a customer perceives when
buying and using a product or service go beyond usability. There is a set of emotional values
as well, such as social status, exclusivity, friendliness and responsiveness or the degree to
which personal expectations and preferences are met. Similarly, the costs perceived by the
customer, normally comprise more than the actual price. They also include costs of usage, the
lost opportunity to use an other offering, potential switching costs etc. Hence, the customer
establishes an equation between perceived benefits and perceived costs of one product and
compares this to similar equations of other products.

Based on this, customer loyalty can be understood as to how customers feel about a product,
service or brand and whether their perceived total investments with a it live up to their
expectations.The important point here is the involvement of feelings, emotions and
perceptions. In today’s competitive marketplace, these perceptions are becoming much more
important for gaining sustainable competitive advantage.

Impact factors on customer perception

Customer perception is influenced by a variety of factors. Besides the actual outcome – i.e. did
the product or service deliver the expected function and did it fulfil the customers need – the
whole process of consumption and all interactions involved are of crucial importance. In
today’s globalised information driven economy this can also comprise issues like

 How other customers or influencing groups perceive the product or brand

 The degree to which the customer feels the actual marketing campaign addresses the
most important issues
 Responsiveness and service quality of any affiliates, e.g. distribution partners

Customer perception is dynamic. First of all, with the developing relationship between
customer and company, his perceptions of the company and its products or services will
change.

The more experience the customer accumulates, the more his perceptions will shift from fact-
based judgements to a more general meaning the whole relationship gains for him. Over time,
he puts a stronger focus on the consequence of the product or service consumption.

Moreover, if the customers’ circumstances change, their needs and preferences often change
too. In the external environment, the offerings of competitors, with which a customer compares
a product or service will change, thus altering his perception of the best offer around. Another
point is that the public opinion towards certain issues can change. This effect can reach from
fashion trends to the public expectation of good corporate citizenship. Shells intention to dump
its Brent Spar platform into the ocean significantly altered many customers perception of which
company was worth buying fuel from.

Research has been done on the impact of market share on the perceived quality of a product.
Depending on the nature of the product and the customers’ preferences, increasing market share
can have positive or negative effects on how the customer perceives the product.
CHAPTER 4 RESEARCH METHODOLOGY

4.1 Objectives

The objective of the research is

 To understand the consumer durable loan process at a dealer store.

 To study and understand behaviour of customers.

4.2 Scope

This project is limited to Bajaj Finserv Lending. And the researcher analyses only consumer
durable finance.

4.3 Data collection Method

The data collection method adopted by the researcher is primary as well as secondary.

Primary Data: This data has been collected by the reaserchers instore experience,customer
feedback and the sales executive feed back at the CROMA RETAIL STORE,BHANDUP and
CROMA RETAIL STORE,SION.

Secondary Data: This data has been collected from the company’s website,various other
reasech work available on the internet.

4.4 Limitations

 The reaserch may be inaccurate due to inexperience on the part of the researcher.
 The time for the research was less.
 Geographical Constraint.
CHAPTER 5 BODY OF WORK

Job Responsibilities

 Selling finance options to walk in customers at Dealer location.

 Coverting cash or card paying customer to finance.
 Conduct promotional activities with retailers.
 Managing relationships.
 Cross selling of insurance products.
 Reporting

LEARNING

Dealing with customers

I got to know about how to deal with customers how to offer them different schemes and how
to handle their queries.

Pitching customers towards various other products

Other products included extended warranty, EMI card,Health Risk cover etc are being provided
by Bajaj Finserv. We got to know how to approach customers and how to pitch them
accordingly.

Process of granting loan

I. Documentation: Credit card,driving license,Pan card etc is required to provide loan

to the customers.
II. Various requirements: As mentioned in surrogates various slabs are there to
which customers are provided loan.

My objective of this internship was to understand the loan process of consumer durable
products and the various documents required for application. I understood the eligibility criteria
required to apply for the loan.I explored the different tools and techniques of how to convert a
credit card or cash customer into a finance customer and also how to build good relationships
with the sales person as they are main key to get customers and not let the competitors win.
I was taught how to pitch in the customers and sell other products accordingly thus by
understanding the need and the behaviour of the customers.

My job was to explain the benefits of applying the EMI card and explaining them various
schemes provided. My work also involved cross selling the insurance products to walkin
customers.

I also learned how the sales executive use their instincts to judge a customer is genuine or not
but this does not always help sometimes a genuine customer may turn into a fraud customer. I
learnt how manage customers especially during peaks hours and handle their queries
effectively.

I understood how important it is to manage and maintain customer relationships.

CHAPTER 6 UNDERSTANDING THE PROCESS

6.1 Documents required

 Driving licence
 PAN Card
 Rent Agreement
 Cancelled Cheque.
 Salary slip

6.2 My Job Responsibilities

First pitch in the customers, after pitching the customers the next process is to explore them
with the overall loan process of 0 % interest scheme. Once the customer agrees, then ask the
customers for the required documents.

Decide the surrogate of the customer.

Fill in the application form, details get stored in to the sales force software

A unique case ID is generated then the control goes into the hand of company approval
department.

Once approved the customer signs the agreement document. The next process is to generate
the invoice, memo of the disbursement gets generated.

Along with the loan procedure documents, disbursement memo will get forward to the Bajaj
Finserv, Pune. Then all the attatched documents are scrutinized by the operational department
of Bajaj Finserv.

Once the loan procedure of the company is satisfied then this document gets sealed by the
approval stamp.

Various surrogates

1. WOW Policy
 2. WOW Lite Policy
3. WOW Extension Policy

Scheme Chart

The scheme is revised every month depending on the previous month sales observations

Schemes Description

12/4 It means the 4months payment will be taken as an advance and

remaining payment will be distributed in 8 months.
10/2 It means the 2 months payment will be taken as an advance and
remaining payment will be distributed in 8 months.
18/6 It means the 6 months payment will be taken as an advance and
remaining payment will be distributed in 12 months. And it is long
term scheme.
24/6 It means the 6 months payment will be taken as an advance and
remaining payment will be distributed in 18 months. And it also
long term scheme.
10/0 It means there is no any advance payment will be taken, all payment
will be distributed in 10 months.
CHAPTER 7 DATA ANALYSIS AND INTERPRETATION
Quantitative analysis is performed using the collected data at the dealer outlet store of Bajaj
Finance. Tool utilized,
 Percentage Analysis
 Graph Chart

SAMPLING
1. Sampling Technique : Non-probability sampling
(A non-probability sampling technique is that in
which each element in the population does not
have an equal chance of getting selected)

2. Sample Unit : People those who have consumed Amul fresh

product

3. Sample Size : 60

4. Method : Direct interview through questionnaire

5. Scale : Likert Scale

Collected data were not easily understandable, so I like to analyze the collected data in a
systematic manner and interpreted with simple method.
The analysis and interpretation of the data involves the analyzing of the collected data and
interpretation it with pictorial representation such as bar charts, pie chart and others.

Are you aware about the consumer durable loan availability?

Yes

No

No of Respondents % of Respondents
YES 47 78
NO 13 22
 NO
22%

YES
78%

Have you ever taken consumer durable loan?

Yes

No

No of Respondents % of Respondents
YES 36 60
NO 24 40

NO
40%

YES
60%
Are you a new or existing customer?

New

Existing

No of Respondents % of Respondents
YES 36 60
NO 24 40

NO
40%

YES
60%

Do you own EMI card of Bajaj Finance?

Yes

No

No of Respondents % of Respondents
YES 35 58
NO 25 42
 NO
42%

YES
58%

How did you come to know about Bajaj Finance CD loan?

Retail sales executive

Family, friends, relatives

Advertisement.

No of Respondents % of Respondents
RETAIL SALES EXECUTIVE 14 23
FAMILY, FRIENDS, RELATIVES 27 45
ADVERTISEMENT 19 32
 RETAIL SALES
EXECUTIVE
23%
ADVERTISEMNT
32%

FAMILY FRIENDS
RELATIVES
45%

Have you been a customer of any other finace apart from Bajaj Finance?

Yes

No

No of Respondents % of Respondents
YES 29 48
NO 31 52

YES
48%
NO
52%
State the finance provider.

HDFC

Tata capital

Reliance Capital

Capital First

No of Respondents % of Respondents
HDFC 4 11
TATA CAPITAL 6 17
RELIANCE CAPITAL 9 26
CAPITAL FIRST 16 46

HDFC
11%

TATA CAPITAL
CAPITAL FIRST 17%
46%

RELIANCE CAPITAL
26%

Which finance do you prefer the most?

Bajaj Fianace

HDFC

Tata capital

Reliance Capital
Capital First

No of Respondents % of Respondents
BAJAJ FINANCE 43 72
HDFC 2 3
TATA CAPITAL 2 3
RELIANCE CAPITAL 5 9
CAPITAL FIRST 8 13

CAPITAL FIRST
13%
RELIANCE CAPITAL
9%

TATA CAPITAL
3%
HDFC
3%
BAJAJ FINANCE
72%

How would you rate Bajaj Finance?

Good

Average

Bad

Below average

No of Respondents % of Respondents
GOOD 37 74
AVERAGE 13 26
BAD 0 0
 BELOW AVERAGE 0 0

BAD BELOW AVERAGE

0% 0%

AVERAGE
26%

GOOD
74%

Are you satisfied with Bajaj Finance schemes

Yes

No

No of Respondents % of Respondents
YES 47 60
NO 13 40
 NO
40%

YES
60%

Are you aware about any other products launched by EMI card

Yes

No

No of Respondents % of Respondents
YES 38 55
NO 22 45
 NO
45%

YES
55%

Did the executive solve all the queries

Yes

No

No of Respondents % of Respondents
YES 50 62
NO 10 38

NO
38%

YES
62%
Interpretation

With the help of the above data received from the consumer feedback we can conclude that the
publicity of Bajaj Finserv is mainly due to word of mouth. Bajaj Finserv has successfully
created a positive image in the minds of the consumers hence even if the consumer fails to get
a loan from Bajaj Finserv most of the time he will buy the EMI card so that on his next visit he
does not have any issue.Capital Fisrst is its biggest competitor at any Croma Outlet.
CHAPTER 8 FINDINGS AND RECOMMENDATIONS

8.1 Findings

1. Bajaj Finance has successfully created a good reputation in the minds of the customers.
2. Bajaj Finance enjoys loyalty from customers.
a. Other competitors are slowly developing and creating businesses for
them which is hurting Bajaj Finserv’s cross selling opportunity.
3. Majority of cases happen in the evening time between 6 PM to 10 PM.
4. Number of cases on weekends is higher than other days of the weekends.
5. Most cases are for the products ranging more than ₹ 10000
6. Bajaj Finserv has been rapidly growing in integrated technology. Virtual Card and
Retail Finance is a result of that.
7. Some potential customers are diverting to competitors due to low CIBIL score although
they had good current record.
8. There is delay in the delivery of EMI Card to the customers.
9. Repeat sale for existing customers is increasing day by day hence this holds a great
scope in future.
10. Finance demand for products at their peak sale season is very high urging for
special schemes for those categories at that time. Example – Air Coolers &
AC’s in summers and Washing Machines in Rainy Season.
11. Many customers have even complained that even after paying fines or paying the
instalments on time their card is blocked.

8.2 Recommendations
1. Bajaj Finserv shoul focus more on advertising and promotional activities not only out
side the store but also in side the store.
2. The schemes charts should be showcased at the floor with the respective products to
showcase more transparency.
3. Some customers were facing problem that they are not getting EMI card even after 3
Months of paying the installments.I think that should be checked because it will tamper
the goodwill of the company.
4. A small printer machine should be kept at the desk itself only for Bajaj Finserv
executives because this will fasten the work and thus more customers can be
entertained.
5. Management must encourage Executives to concentrate more on Cross Selling.
6. Also one more thing can be changed is that women can be given some more emphasis
as an executive as customers will have more belief in them.
7. More awareness regarding the insurance products
8. A promotional campaign must be run to clarify the benefits and offerings of BFSL
which will clear the doubt about 0% finance and 0 processing fees.
9. Processing fees should not be charged for the EMI Card holders in the case of consumer
durable as it will create loyalty among customers and will help build a strong customer
base even before the competitors entering the market.
10. The EMI schemes should be made more flexible.
11. Bajaj Finserv should reduce the CIBIL Requirement score because I have noticed that
even after having a CIBIL score of 735 or 745 the customers are rejected and thus these
customers then buy finance their products from other finace.
12. FOS should be taught by professional, how to pitch finance to customers and when?
CONCLUSION
Consumer Finance market is an untapped market has a great scope of growth. For any business
to survive it is very important to understand the behaviour of its customers,satisfy the
customers.

Consumer Durable loan created not only desire but also created willingness among the
consumers to purchase products. Bajaj Finance serves customers by providing loans on
consumer durables. The growth of any product depends upon how we do proper branding of
that product and also the promotion which plays a very vital role in attracting customers and to
retain them so that the loyalty maintains in future as well.

Bajaj Finserv enjoys a good reputation in the minds of the customers. It is also observed that
the consumers are loyal towards the brand. The company should train its employes in the cross
sell process which would help in increasing the sale of these products.

Besides this quality is the dominating aspect which influences consumer to purchase, but
prompt availability of other brands and aggressive promotional activities of other influences
the consumer towards them and also leads to increase in sales.

To conclude “BAJAJ FINANCE” needs to focus on their foot falls, sales finance team
should be well educated about the policy and customer preference because our major
competitor is capital first, that is threat to our counters and new store as well
BIBLIOGRAPHY
https://www.bajajfinserv.in/finance/

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http://www.business-standard.com/search?type=news&q=Consumer+Durable+Loans

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