Beruflich Dokumente
Kultur Dokumente
UNIVERSITY OF MYSORE
PROJECT REPORT
A STUDY ON CUSTOMER SATISFACTION OF HONDA ACTIVA
SUBMITTED BY
DILIP H S
Reg. No: 13MB0220
UNDER THE GUIDENCE OF:
Mr. AJAY M. JADHAV
Assistant Professor - DoS in Business Administration,
Pooja Bhagavat Memorial Mahajana Post Graduate Centre
Mysore 570016
Project Report submitted to the University of Mysore in partial
Fulfilment of the requirements of IV Semester MBA Degree
Examinations May/ June 2014 - 15
CERTIFICATE
2014- 2015
This is to certify that Mr. DILIP H S, Reg. No. 13MB0220, our student of 4TH semester
MBA has carried out the Project on A STUDY ON CUSTOMER SATISFACTION OF
HONDA ACTIVA as part of his curriculum activity as per the norms for obtaining a
Post-Graduation Degree in Master of Business Administration from UNIVERSITY OF
MYSORE during the year 2014- 2015
CERTIFICATE
POOJA BHAGAVAT MEMORIAL MAHAJANA POST GRADUATE
CENTRE, K R S ROAD, METAGALLI, MYSORE.
Dr. C K Renukarya
Prof. S R S Khadri
Director
PBMM P. G. Centre
Mysore
DECLARATION
I, hereby declare that the report title A STUDY ON CUSTOMER SATISFACTION
OF HONDA ACTIVA is a record of independent research carried out by me
under the guidance of Mr AJAY M JADHAV- Assistant Professor, DoS in
Business Administration Pooja Bhagavat Memorial Mahajana Post Graduate
Centre, Mysore, and I further declare that the findings in the Project Report are
independent study done by me.
Place: Mysore
Date:
DILIP H S
ACKNOWLEDGEMENT
Date:
DILIP H S
Place: Mysore
CONTENT
CHAPTE
R
1
CONTENTS
INTRODUCTION
2
3
4
5
6
7
PAGE
NUMBER
7-11
Introduction
Statement of the problem
Objectives of the study
Need for the study
Scope of the study
Methodology
Limitations of study
12-28
29-43
44-60
61-65
66-67
68-73
INTRODUCTION
INTRODUCTION
The two wheeler segment in the automobile industry plays a vital role in India. The
present day market is such that a two wheeler is affordable by middle class people
in urban areas. It is also more convenient for travelling short distance within the
city and for individual, over, the years the sales figured of the two wheelers has
increased to a very large extent. The sales of the two wheeler in 1950 were merely
900 units, whereas now the sales have gone up to millions.
The two wheeler market mainly consists of scooterette and
motorcycles. The motorcycles segment forms 65% of whole of two
wheeler segment. Whereas earlier the motorcycles had a very
small share in the two wheeler segment but with the collaboration
of Indian and Japanese companies (Honda, Suzuki, and of
Kawasaki) the share has increased tremendously with reason
being that two wheelers had a superior engine, better pick-up,
good mileage, improved designs and large options to choose
from.
The two wheeler segment is divided into two stroke and four
stroke categories. The two strokes consists of kinetic Honda,
Nova, Yamaha Rx135, kb-125, etc. the four strokes category
consists of Honda Activa, TVS Scooty, Kinetic Style, etc.
Most of the officials or some persons generally prefer these two
wheelers, such as Honda Activa, Kinetic Honda, Scooty, etc, as
they are more concerned with mileage. They are also concerned
with these two wheelers, as they prefer unguarded vehicles, so
that it would be easy to ride the two wheelers in the cities where
there is much traffic.
The scooterette segment will continue to lead the demand for two wheeler in the
coming years.
The Indian two wheeler industries produced and sold about 3.4
million units in the year 2009-10. Like any other Indian industry,
the policy environment guided and controlled this segment of the
industry as well. Licensing horns ruled day till the mid 80s access
to foreign technology inputs and foreign investment were strictly
government controlled.
Since mid 80s, the Indian automobile industry was administered select doses of
liberalization, foreign collaboration coupled with Indian market potential, attracted
world major companies like, Honda, Yamaha, Suzuki, etc.
STATEMENT OF THE PROBLEM
With the recent influx of different brands in todays four wheel
auto segment each striving to satisfy customer with the end
results of maintaining loyalty, at present cars as such have
become necessity but not a nicety.
With this outlook of todays market it is even a laymans
perceptive that Honda has stood against all odds this indicates
that Honda, by itself reflects a satisfied customer.
Keeping in mind curriculum requirement and organizational
requirement the study has been conducted to find out customer
10
satisfaction
towards
Honda
Activa.
However,
due
to
time
OBJECTIVES OF STUDY
The main objectives of the study are:
1. To find out the customer satisfaction level.
2. To find out from which dealer the customer has purchased their
product and the source of awareness about the dealership and
the product.
3. To find the availability of finances schemes and mode of
purchase through the various financial schemes.
4. To find customer satisfaction level towards sales process.
NEED FOR THE STUDY
The need for the study arises in order to create awareness amongst the customers
and to determine the customer satisfaction.
The need for the study arises due to the following reasons: 1. To measure the level of customers satisfaction towards silicon Honda.
2. To know the customer preferences towards Activa.
3. In order to retain the existing customers.
4. To market brand loyally towards the product.
5. To know the customers opinion towards existing after sales service provided
by the company.
11
Sample Procedure
Empirical field studies require collection of first hand
information on data pertaining to the unit of study from the field.
12
13
14
REVIEW OF LITERATURE
15
16
17
REFERENCE
Bardia Alimohamadi, Nasrin Khorshidi(1980):The inefficiencies and lack of
effectiveness were consequently producing high levels of customer
dissatisfactions.
18
THEORITICAL BACKGROUND
19
CUSTOMER SATISFACTION
Customer satisfaction suffices the customer. Customer visualizes, perceives and
will have some expectations before making any purchase. If the product meets
customers expectations then he is satisfied. Customer will be satisfied when the
product meets the basic needs set and therefore utility of a product is nothing but
consumers estimation of products over all capacity to satisfy his needs.
Customer satisfaction is a function of perceived performances and expectations.
20
at satisfying customers. The satisfied customers will have brand loyalty and strong
affinity towards the product, so there is less scope of switching to other brands.
Satisfaction can be used as gauge for measuring effectiveness of customer care of
the organization. This increases the customer loyalty.
21
SOCIAL
Culture
PERSONAL
PSYCHOLGICAL
Age
Sub cultural
Motivation
Life style
Cross-cultural
Perception
Occupation
Social class
BUYER
Learning
22
23
CUSTOMER SURVEYS
It is conducted to learn how product has affected brand choice behavior,
what they thought of it and it is direct measure of satisfied customers.
TAKE ACTION
MEASURES
GHOST SHOPPING
Customer oriented companies hire persons to pose as potential buyers to
report their findings on strong and weak points they experienced in buying
company and competitors product. The ghost shoppers even pose certain problems
to test whether the companys sales personal handle the situation well.
RETENTION OF CUSTOMERS
Retaining a single customer is most important than attracting many new
customers. Company should reconfigure all planning processes towards customers.
24
Direct all marketing efforts towards meeting customer needs. Create corporate
strategy aimed at customer value.
Company can make customers happy by providing reliability,
responsiveness, assurance, empathy and tangible materials.
derivativeness
should
be
compulsory,
satisfying
customers
requirements.
Companies should have quest for quality and should meet standards.
Quality should be in every stage from planning to production.
Quality should be in hallmark of the company. Company should promise
highest standard of product quality, safety, comfort and dependability.
25
Companies should have quest to find innovative ideas and featured or attributes
that will create excitement and desire and they should look beyond what the
customer says.
WHAT IS MARKET?
Market consists of all the potential customers sharing a particular need or wants
who might be willing and able to engage in exchange to satisfy that need or wants
MARKETING
Marketing is so basic that it cannot be considered as a separate function. It
is the whole business seen from points the point of view of its final results, that is
from customer point of view business success is not determined by the producer
but by the customer
Peter.F.Drucker
Marketing consists of all activities by which a company adapts itself to its
environment
Ray Corey
26
WHAT IS MARKETING?
Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating, offering and exchanging
products of value with others.
.
MARKET SEGMENTATION
The task of breaking the total market into segments that share common
properties is market segmentation. It is the process of identifying a group of
consumers with similar needs and producing a product that will meet those needs
at a profit.
Market segmentation will facilitate the firm to identify and find out the additional
benefit desired by the people to pay benefits and source where they would like to
buy it.
CONSUMER BEHAVIOUR
The term consumer behaviour refers to the behaviour that consumers display in
searching for purchasing, using, evaluating and disposing of products and services
that they expect will satisfy their needs. The study of consumer behavior is the
study of how the individuals make decisions to spend their available resources
(time, money, effort) on consumption related items. It includes the study of what
they buy, why they buy, when they buy it, where they buy it and how they buy it
and how often they use it.
WHY WE STUDY CONSUMER BEHAVIOUR?
There are various reasons as to why people study consumer behavior. As
consumers, we benefit from insights in our own consumption related decisions:
what we buy, why we buy, how we buy and the promotional influences that
27
28
29
30
INDUSTRY PROFILE
Since time immemorial man has been trying to make things which would make life
easier. Among these is the transportation for himself and the goods.
31
The
invention
of
wheel
revolutionized
the
concept
of
car.
This
was
the
beginning
of
the
trend,
which
In India two wheelers have demonstrated the ever since they come to know
been used in the country. So the manufacturers are all set to woo the customers
with the styles that surprise. Efficiency above expectations. Durability and services
more reliable and pricing.
Since the 1980s the market for personalized transport experienced a strident
growth in the country.
32
From January 1994 the market especially for two wheelers has so grown to meet
the demand of the customers of India. The production capacity has been
consistently increased.
Largely speaking three major categories of two wheeler started coming, the
Scooters, the Motorcycles and Mopeds. The recent trend is for the scooterette.
INDIAN AUTOMOBILE MARKET:
In India basically the people are composed of middle and lower income people.
For them economical and reasonable comfortable bike or scooter with less
maintenance was the priority. Honda noticed this and their efforts paid dividends
when Activa and Dio were launched. The two wheeler age revolutionized Indian
automobile market. The customers attitudes too changed with preference for
looks, low cost, maintenance, fuel efficiency. Power engine, availability of spare
parts, comfortable riding and good after sales service.
Consumers long list of preference was carefully kept in mind and a new era of
market segmentation began. The market now segregates high income and middle
income from rich class of customers. Bikes and scooterettes for every one has
become a motto for automobile industry. Rich and high-income group of customers
usually goes for:
- Looks
- Maintenance
- Power
The middle and low-income people goes for:
- Fuel efficient
- Power
- Economical cost
33
INDUSTRY PROFILE
The Indian two wheelers industries can be broadly classified as scooters,
motorcycles and mopeds. These segments as shown below constitute the domestic
two wheeler sales of 3.4 million in financial year 2009-09.
In the last six years, the domestic two wheeler industries have seen structural
changes. This can be seen from the change in composition of two wheeler sales.
Where the motor cycles have consistently gained market share from scooter and
moped segment to corner a share of 41% of total two wheeler sales. This trend is
expected to continue in the next two years till the four stroke scooters make their
presence felt in this segment. The table below gives an idea about the strides made
by motor cycle segment in the last six years.
Moped sales in southern region lead in three wheeler sales with a contribution of
42% and 35.8% of total three wheeler sales respectively.
In the terms of three wheeler vehicle population in Maharashtra State stands first
with a population of 0.39 mn and Gujarat in the second place with 0.22 mn as on
March 31st 2014.
34
VOLUME
SALES in
( Rs. Cr)
nos.
NET
PROFIT
( Rs.
(%)
Cr )
year )
Hero-Honda
10,29,591
3369.88
246.87
7.33
Bajaj auto
5,42,531
3628.74
249.95
6.89
TVS
3,54,497
1820.98
62.57
3.44
Yamaha
1,71,307
not listed
not listed
not
listed
INDUSTRIAL BACKGROUND
35
36
COMPANY PROFILE
HONDA
37
Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the Wings,
represents the company's unwavering dedication in achieving goals that are unique
and above all, conforming to international norms. These wings are now in India as
Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary
of Honda Motor Company Ltd., Japan. These wings are here to initiate a change
and make a difference in the Indian 2-wheeler industry. Honda's dream for India is
to not only manufacture 2-wheelers of global quality, but also meet and exceed the
expectations of Indian customers with outstanding after sales support.
ORIGIN OF THE ORGANIZATION
Honda Activa is the first scooter model of HMSI for the Indian market.
It has revitalized the Indian scooter market after its launch in the year 2009. Within
the 1st year of its launch it has been awarded the 'Scooter of the Year' by
Overdrive magazine and also the 'Readers Choice Award' for the best scooter by
Auto India Magazine.
The Honda Activa has set a new standard for new era of scooters in India. It has
been developed exclusively for the Indian market after closely examining the
changing lifestyles, wants and needs of the consumers.
The Honda Activa has been designed to cater people who believe:
The conventional Indian scooter is too big and difficult to handle
38
The Honda Activa is equipped with a number of new functions and mechanisms,
introduced for the first time in India. It is designed to offer greater functionality,
performance, economy, and ease of handling and maintenance to a wide crosssection of the Indian society.
As responsible members of society and industry, we Honda Motorcycle and
Scooters India Pvt. Ltd. (HMSI), Manesar manufacturer of two wheelers,
recognize that well being of humans and conservation of earth's environment is
important. By adopting environmental management system, HMSI is moving
towards realization of Honda's green factory concept.
39
Technology
Our fundamental design philosophy seeks to maximize space and comfort
for people, while minimizing the space required for mechanical components. With
this aim in mind, Honda's R&D activities include product-specific development
and research.
Safety
At Honda, we use a three-prong approach, based on preventing accidents,
minimizing injury in the unlikely event of an accident and our Driving Safety
Promotion operations. Honda's safety philosophy emphasizes the development of
appropriate technologies for its products, so as to ultimately achieve maximum
riding comfort for its customers. Honda was the first manufacturer in Japan and
India to develop and apply the anti-lock brake system for the two wheelers.
40
Environment
Honda is unrivalled in making a conscious effort to lower the emissions of every
one of its vehicles, 2 and 4-wheelers. It is actively pursuing the development of a
4-stroke engine in all 2-wheelers by 2014.
41
PRODUCT PROFILE
42
HONDA ACTIVA
Technical Specifications
Engine:
Type
Displacement
102 cc
Maximum Power
Maximum Torque
Transmission
V-matic
Ignition
Electricals:
Battery
12 V, 5 Ah
Headlamp
35 W
Chassis:
Frame
Dimensions (l*b*h)
1765*715*1130 mm
Wheel Base
1235 mm
Seat Height
760 mm
Ground Clearance
145 mm
43
Fuel Tank Capacity:
Tank capacity
6 litres
Brakes:
Front
Rear
Tyre size:
Front
3.50-10, 4 PR
Rear
3.50-10, 4 PR
Suspension:
Front
Rear
Colors:
Strand silver metallic
Black
Laser red
44
45
Table 1:
Age Group of the Respondents
Age
No of respondents
46
18-25
39
25-32
18
32-39
11
39 & above
32
Observation
Age is the very important factor in the purchase decisions of the customers. People
of different age group prefer different types of two wheelers. Out of the surveyed
100 respondents, 39 % respondents belong to the age group 18-25 years; 18 %
respondents belong to the age group of 25-32 years; and 11 % respondents belong
to the age group of 32-39; 32 % of them belong to 39 & Above.
Graph 1: Age Group of the Respondents
39
40
32
35
30
25
18
20
39 & above
11
15
10
5
0
a
47
Table 2:
Sex of the respondents
Gender
No of respondents
Male
76
Female
24
Observation
Sex is also an important consideration for the marketers so as to know which of the
sex prefer to buy their products. The above study shows that out of the surveyed
100 respondents of Honda Activa 76% of the users were male and the rest 24% of
them were female. This reveals that male users are more in number but there are
also females who too use Activa.
Graph 2:
Sex of the respondents
76
80
70
60
50
female
40
24
30
20
10
0
a
48
Table 3:
Occupation of the Respondents
Occupation
No of respondents
Student
34
Service
21
Business
Professional
39
Observation
49
34
35
30
21
25
professional
20
15
10
5
0
a
Table 4:
Monthly Income of the Respondents
Monthly Income
No of respondents
5000-10,000
10,000-15,000
47
15,000-20,000
19
27
Observation
50
Graph 4:
Monthly Income of the Respondents
47
50
45
40
35
27
30
20,000& above19
25
20
15
10
5
0
a
Table 5:
Ownership status of the Activa
Ownership status
Self owned
No of respondents
99
51
Company owned
Company leased
Observation
The study shows that out of the 100 surveyed respondents 99% of them owning
Activa were self-owned, 1% was company owned and none of them were using
company leased.
Graph 5:
Ownership status of the Activa
99
100
90
80
70
60
company leased
50
40
30
20
10
0
a
52
Table 6:
Recommendation of Activa to others
Recommendation
No of respondents
Yes
87
No
13
Observation
The above study reveals that the 87% of the respondents would like to recommend
Honda Activa to others, such as their friends and relatives. And 13% of the
respondents told that they would not recommend Activa, as they would get a bike
for the same cost.
53
Graph 6:
Recommendation of Activa to others
87
90
80
70
60
50
no
40
30
13
20
10
0
a
54
Table 7:
Ratings for Ride, Handling
Ratings
No of respondents
Excellent
48
Good
26
Average
16
Poor
10
Observation
The study shows that the respondents ratings for Ride & Handling. 48% of them
told that it was excellent, 26% told that it was good, 16% told that it was average
and 10% of them told that it was poor.
Graph 7:
55
Ratings
50
for
Ride,
Handling
48
45
40
35
26
30
25
poor
16
20
15
10
10
5
0
a
Table 8:
Ratings for Comfort
Ratings
No of respondents
Excellent
52
Good
24
Average
23
Poor
56
Observation
The study shows that the respondents ratings for Comfort. 52% of them told that it
was excellent, 24% told that it was good, 23% told that it was average and 1% of
them told that it was poor.
57
60
52
50
40
30
24
poor
23
20
10
0
a
Table 9:
Ratings for Road Grip
Ratings
No of respondents
58
Excellent
17
Good
21
Average
37
Poor
25
Observation
The study shows that the respondents ratings for Road Grip. 17% of them told that
it was excellent, 21% told that it was good, 37% told that it was average and 25%
of them told that it was poor.
59
37
40
35
30
25
25
20
21
17
poor
15
10
5
0
a
Table 10:
Ratings for Engine Performance
Ratings
No of respondents
60
Excellent
47
Good
15
Average
31
Poor
Observation
The study shows that the respondents ratings for Engine Performance. 47% of
them told that it was excellent, 15% told that it was good, 31% told that it was
average and 7% of them told that it was poor.
61
50
47
45
40
31
35
30
25
poor
20
15
15
10
5
0
a
62
FINDINGS
63
Silicon Honda Pvt. Ltd. Occupy prime position with 52% of sample size
recommending the dealers for Honda Activa two wheelers.
27% of the sample size told that the service given by the Silicon Honda was
excellent.
Advertisements have popularized other dealers with friends of the customers
with 42% of them indicating for it.
Delivery instruments are given properly by all the dealers.
All the customers say that they prefer to service their vehicles at the
authorized service centers only.
33% of the customers told that they would purchase another Honda Activa in
future for their family members or for their relatives.
29% of the customers say that they purchased Activa for its travelling
comfort.
22% told that Activa is easy to ride.
26% told that Activa is a fuel efficient two wheeler.
99% of the customers ownership status of Activa is self-owned.
12% purchased Activa as they felt it was a trend for it.
Indian market is full of middle class customers and most of the customers
owning Activa belonged to middle class category.
The customers got aware of Honda Activa largely through magazines and
newspapers.
34% of the customers were students and 39% of them were professionals.
76% of the customers were male and 24% of them were female.
SUGGESTIONS
64
Customer care is best way to build long-term relation, because they also
have emotional and psychological needs when they purchase a car.
65
CONCLUSION
66
67
BIBLIOGRAPHY
Books:
1. Principles of Marketing Management
By Philip Kotler.
68
2. Research Methodology
By C.R.Kothari.
Magazines:
1. Auto World.
2. Over drive.
3. Auto India.
News Papers:
1. Times of India.
2. Economic Times.
Web Sites:
www.honda2wheelersindia.com
www.activa.com
www.hondabick.com
69
ANNEXURE
Name:
Age:
Gender:
70
Student
Service
Monthly Income: 5000-10,000
15,000-20,00
Business
Professional
10,000-15,000
SPECIFIC INFROMATION
1. What is the owner ship status of Honda Activa?
Company owned
Company leased
Self owned
71
o 32-39
o 39 & above
3. sex of the respondents
o Male
o Female
No
Excellent
Good
Average
Poor
72
Comfort
Road grip
Mileage
Design
Engine
performance
Speed
Braking
Pick-up
City Honda
Planet Honda
Friends
Others
73
Private shop
No
Company loan
Finance schemes
Others
Television
Magazines
Show-room display
Exhibition
Postal catalogue
74
Good
Average
Poor
14.Ratings for road grip
Excellent
Good
Average
Poor
15.ratings for engine performance
Excellent
Good
Average
Poor