A Project On

A Study On Consumers Perception Toward Honda Two Wheeler

A Project Submitted To

University Of Mumbai For Part Completion Of The Degree Of

Bachelor Of Management Studies

Under The Faculty Of Commerce

By

Guna Esakkiappan

Under The Guidance Of

Professor Gauri

Vpm's Rz Shah College Of Arts Science And Commerec

Mithagha Road, Jaihind Colony, Mulund (East), Mumbai-400081

March 2019
 DECLARATION BY STUDENT

I, the undersigned mr. Guna esakkiappan hereby declare that the work embodid in this projecr work titled " a
study on consumers perception toward honda two wheeler" carried out under the guidance of
prof gauri mam is a result of my reseach work and has not been previously submitted to anty
other university for any other degree / diploma to this or any oter university

Whenevr refernec has been made to previous works of others , it has bee clerly indicated as such
and included in the bibiliography

I, hereby futher declare that all information of this document has been optained and presented in
accordanc ewith academic rules and ethuical conduct .

Name And Signature Of The Learner

Cerfited By

Name And Signature To The Guiding Teacher

 ACKNOWLEDGEMENT

To list who have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channel and fresh dimensions in
the competition of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my Principal, DR. M.S. MADHUSUDHAN RAJE for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator MS.SHRUTI SHOUCHE, for her moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide

PROFESSOR GAURI APTE whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents & Peers who supported me throughout my
project.
 INDEX

Chapter Contents Page No.

No

1 Introduction \\Objectives Limitations of the

study Methodology

2 Customer Satisfaction

3 Profile of Honda 15-27

4 Analysis of Study

5 Summary & Suggestions 40-41

6 Generation of Honda company

7 Questionnaire 42-45 BIBLIOGRAPHY 46

CHAPTER - I
INTRODUCTION:

The two wheeler industry has been expanding rapidly. Gone are the days when
processing a twowheeler was seen as a luxury. Now a day it is viewed as a
mere necessity. Prior, sale of twowheelers was mainly confined to urban
areas but lately in rural areas the bicycles are beingreplaced by power
driven two wheelers such as scooters and motorcycles. Not only this,
theindustry has also customers ranging from all demographic segments. It
has been common thateven school going children are driving two wheelers. The
women customers are also increasingdue to increase in women literacy and
employment.If getting a new customer is difficult, then retaining a current
customer is more difficult one andnot only that it is estimated that the cost of
attracting a new customer is five times retaining thecurrent customer. It
requires a great deal of effort to induce satisfied customer to switch
awayf r o m thei r cu rre nt p re fe ren ce. Thus custo me r a ttitude is b een
giv en top p rior ity i n toda y’s competitive world.
Honda Motor Company, Ltd.
Japanese public multinational conglomerate corporation primarily known as
a manufacturer of automobiles, aircraft, motorcycles, and power
equipment.

Honda has been the world's largest motorcycle manufacturer since 1959,
as well as the world's largest manufacturer of internal combustion
engines measured by volume, producing more than 14 million internal
combustion engines each year. Honda became the second-largest
Japanese automobile manufacturer in 2001. Honda was the eighth largest
automobile manufacturer in the world in 2015.

Honda was the first Japanese automobile manufacturer to release a

dedicated luxury brand, Acura, in 1986. Aside from their core automobile
and motorcycle businesses, Honda also manufactures garden equipment,
marine engines, personal watercraft and power generators, and other
products. Since 1986, Honda has been involved with artificial
intelligence/robotics research and released their ASIMO robot in 2000.
They have also ventured into aerospace with the establishment of GE
Honda Aero Engines in 2004 and the Honda HA-420 HondaJet, which
began production in 2012. Honda has three joint-ventures in China (Honda
China, Dongfeng Honda, and Guangqi Honda).

In 2013, Honda invested about 5.7% (US$6.8 billion) of its revenues in

research and development. Also in 2013, Honda became the first Japanese
automaker to be a net exporter from the United States, exporting 108,705
Honda and Acura models, while importing only 88,357

Throughout his life, Honda's founder, Soichiro Honda, had an interest in

automobiles. He worked as a mechanic at the Art Shokai garage, where he
tuned cars and entered them in races. In 1937, with financing from his
acquaintance Kato Shichirō, Honda founded Tōkai Seiki (Eastern Sea
Precision Machine Company) to make piston rings working out of the Art
Shokai garage. After initial failures, Tōkai Seiki won a contract to supply
piston rings to Toyota, but lost the contract due to the poor quality of their
products.]After attending engineering school without graduating, and
visiting factories around Japan to better understand Toyota's quality control
processes, by 1941 Honda was able to mass-produce piston rings
acceptable to Toyota, using an automated process that could employ even
unskilled wartime laborers.

Tōkai Seiki was placed under control of the Ministry of Commerce and
Industry (called the Ministry of Munitions after 1943) at the start of World
War II, and Soichiro Honda was demoted from president to senior
managing director after Toyota took a 40% stake in the company. Honda
also aided the war effort by assisting other companies in automating the
production of military aircraft propellers. The relationships Honda cultivated
with personnel at Toyota, Nakajima Aircraft Company and the Imperial
Japanese Navy would be instrumental in the postwar period.] A US B-
29 bomber attack destroyed Tōkai Seiki's Yamashita plant in 1944, and the
Itawa plant collapsed in 13 January 1945 Mikawa earthquake. Soichiro
Honda sold the salvageable remains of the company to Toyota after the
war for ¥450,000, and used the proceeds to found the Honda Technical
Research Institute in October 1946.

With a staff of 12 men working in a 16 m2 (170 sq ft) shack, they built and
sold improvised motorized bicycles, using a supply of 500 two-
stroke 50 cc Tohatsu war surplus radio generator engines. When the
engines ran out, Honda began building their own copy of the Tohatsu
engine, and supplying these to customers to attach to their bicycles. This
was the Honda A-Type, nicknamed the Bata Bata for the sound the engine
made. In 1949, the Honda Technical Research Institute was liquidated
for ¥1,000,000, or about US$5,000 today; these funds were used to
incorporate Honda Motor Co., Ltd. At about the same time Honda hired
engineer Kihachiro Kawashima, and Takeo Fujisawa who provided
indispensable business and marketing expertise to complement Soichiro
Honda's technical bent. The close partnership between Soichiro Honda and
Fujisawa lasted until they stepped down together in October 1973.

The first complete motorcycle, with both the frame and engine made by
Honda, was the 1949 D-Type, the first Honda to go by the name
Dream. Honda Motor Company grew in a short time to become the world's
largest manufacturer of motorcycles by 1964.

The first production automobile from Honda was the T360 mini pick-up
truck, which went on sale in August 1963. Powered by a small 356-cc
straight-4 gasoline engine, it was classified under the cheaper Kei car tax
bracket. The first production car from Honda was the S500 sports car,
which followed the T360 into production in October 1963. Its chain-driven
rear wheels pointed to Honda's motorcycle origins.

Over the next few decades, Honda worked to expand its product line and
expanded operations and exports to numerous countries around the world.
In 1986, Honda introduced the successful Acura brand to the American
market in an attempt to gain ground in the luxury vehicle market. The year
1991 saw the introduction of the Honda NSX supercar, the first all-
aluminum monocoque vehicle that incorporated a mid-engine V6 with
variable-valve timing.

CEO Tadashi Kume was succeeded by Nobuhiko Kawamoto in 1990.

Kawamoto was selected over Shoichiro Irimajiri, who oversaw the
successful establishment of Honda of America Manufacturing, Inc.
in Marysville, Ohio. Irimajiri and Kawamoto shared a friendly rivalry within
Honda; owing to health issues, Irimajiri would resign in 1992.

Following the death of Soichiro Honda and the departure of Irimajiri, Honda
found itself quickly being outpaced in product development by other
Japanese automakers and was caught off-guard by the truck and sport
utility vehicle boom of the 1990s, all which took a toll on the profitability of
the company. Japanese media reported in 1992 and 1993 that Honda was
at serious risk of an unwanted and hostile takeover by Mitsubishi Motors,
which at the time was a larger automaker by volume and was flush with
profits from its successful Pajero and Diamante models.

Kawamoto acted quickly to change Honda's corporate culture, rushing

through market-driven product development that resulted in recreational
vehicles such as the first-generation Odyssey and the CR-V, and a
refocusing away from some of the numerous sedans and coupes that were
popular with the company's engineers but not with the buying public. The
most shocking change to Honda came when Kawamoto ended the
company's successful participation in Formula One after the 1992 season,
citing costs in light of the takeover threat from Mitsubishi as well as the
desire to create a more environmentally friendly company image.

The Honda Aircraft Company was established in 1995, as a wholly owned

subsidiary; its goal was to produce jet aircraft under Honda's name.
On 23 February 2015, Honda announced that CEO and
President Takanobu Ito would step down and be replaced by Takahiro
Hachigo by June; additional retirements by senior managers and directors
were expected.

Corporate profile and divisions

Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on

the Tokyo Stock Exchange and the New York Stock Exchange, as well as
exchanges in Osaka, Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris
and Switzerland.

The company has assembly plants around the globe. These plants are
located in China, the United States, Pakistan, Canada, England, Japan,
Belgium, Brazil, México, New Zealand, Malaysia, Indonesia, India,
Philippines, Thailand, Vietnam, Turkey, Taiwan, Perú and Argentina. As of
July 2010, 89 percent of Honda and Acura vehicles sold in the United
States were built in North American plants, up from 82.2 percent a year
earlier. This shields profits from the yen's advance to a 15-year high
against the dollar

Honda's Net Sales and Other Operating Revenue by Geographical

Regions in 2007

Geographic Region Total revenue (in millions of ¥)

Japan 1,681,190

North America 5,980,876

Geographic Region Total revenue (in millions of ¥)

Europe 1,236,757

Asia 1,283,154

Others 905,163

American Honda Motor Company is based in Torrance, California. Honda Racing

Corporation (HRC) is Honda's motorcycle racing division. Honda Canada Inc. is
headquartered in Markham, Ontario, it was originally planned to be located
in Richmond Hill, Ontario, but delays led them to look elsewhere. Their
manufacturing division, Honda of Canada Manufacturing, is based in Alliston,
Ontario. Honda has also created joint ventures around the world, such as Honda
Siel Cars and Hero Honda Motorcycles in India, Guangzhou
Honda and Dongfeng Honda in China, Boon Siew Honda in Malaysia and Honda
Atlas in Pakistan.

Following the Japanese earthquake and tsunami in March 2011 Honda

announced plans to halve production at its UK plants. The decision was made to
put staff at the Swindon plant on a 2-day week until the end of May as the
manufacturer struggled to source supplies from Japan. It's thought around
22,500 cars were produced during this period.

For the fiscal year 2018, Honda reported earnings of US$9.534 billion, with an
annual revenue of US$138.250 billion, an increase of 6.2% over the previous
fiscal cycle. Honda's shares traded at over $32 per share, and its market
capitalization was valued at US$50.4 billion in October 2018.
Products Of Honda

Honda is the largest motorcycle manufacturer in Japan and has been since it
started production in 1955. At its peak in 1982, Honda manufactured almost
three million motorcycles annually. By 2006 this figure had reduced to around
550,000 but was still higher than its three domestic competitors.

In 2017, India became the largest motorcycle market of Honda. In India, Honda is
leading in the scooters segment, with 59 percent market share.

During the 1960s, when it was a small manufacturer, Honda broke out of the
Japanese motorcycle market and began exporting to the U.S. Working with the
advertising agency Grey Advertising, Honda created an innovative marketing
campaign, using the slogan "You meet the nicest people on a Honda." In contrast
to the prevailing negative stereotypes of motorcyclists in America as tough,
antisocial rebels, this campaign suggested that Honda motorcycles were made
for the everyman. The campaign was hugely successful; the ads ran for three
years, and by the end of 1963 alone, Honda had sold 90,000 motorcycles.

Taking Honda's story as an archetype of the smaller manufacturer entering a

new market already occupied by highly dominant competitors, the story of their
market entry, and their subsequent huge success in the U.S. and around the
world, has been the subject of some academic controversy. Competing
explanations have been advanced to explain Honda's strategy and the reasons
for their success.

The first of these explanations was put forward when, in 1975, Boston Consulting
Group (BCG) was commissioned by the UK government to write a report
explaining why and how the British motorcycle industry had been out-competed
by its Japanese competitors. The report concluded that the Japanese firms,
including Honda, had sought a very high scale of production (they had made a
large number of motorbikes) in order to benefit from economies of
scale and learning curve effects. It blamed the decline of the British motorcycle
industry on the failure of British managers to invest enough in their businesses to
profit from economies of scale and scope.

The second explanation was offered in 1984 by Richard Pascale, who had
interviewed the Honda executives responsible for the firm's entry into the U.S.
market. As opposed to the tightly focused strategy of low cost and high scale that
BCG accredited to Honda, Pascale found that their entry into the U.S. market
was a story of "miscalculation, serendipity, and organizational learning" – in other
words, Honda's success was due to the adaptability and hard work of its staff,
rather than any long term strategy. For example, Honda's initial plan on entering
the US was to compete in large motorcycles, around 300 cc. Honda's
motorcycles in this class suffered performance and reliability problems when
ridden the relatively long distances of the US highways. When the team found
that the scooters they were using to get themselves around their U.S. base
of San Francisco attracted positive interest from consumers that they fell back on
selling the Super Cubinstead.

The most recent school of thought on Honda's strategy was put forward by Gary
Hamel and C. K. Prahalad in 1989. Creating the concept of core
competencies with Honda as an example, they argued that Honda's success was
due to its focus on leadership in the technology of internal combustion engines.
For example, the high power-to-weight ratio engines Honda produced for its
racing bikes provided technology and expertise which was transferable into
mopeds. Honda's entry into the U.S. motorcycle market during the 1960s is used
as a case study for teaching introductory strategy at business schools worldwide.

Power equipment

Production started in 1953 with H-type engine (prior to motorcycle).

Honda power equipment reached record sales in 2007 with 6.4 million units. By
2010 (Fiscal year ended 31 March) this figure had decreased to 4,7 million
units. Cumulative production of power products has exceeded 85 million units (as
of September 2008).

Honda power equipment includes:

 Engine
 Tiller
 Lawn mower
 Robotic lawn mower
 Riding mower
 Trimmer
 Mower
 Blower
 Sprayer
 Hedge trimmer
 Snowthrower
 Generator, welding power supply
 Pumps
 Outboard engine
 Inflatable boat
 Electric 4-wheel Scooter
 Compact Household Cogeneration Unit

Engines

Honda Outboard motor on a pontoon boat

Honda engines powered the entire 33-car starting field of the 2010 Indianapolis
500] and for the fifth consecutive race, there were no engine-related retirements
during the running of the Memorial Day Classic.
In the 1980s Honda developed the GY6 engine for use in motor scooters.
Although no longer manufactured by Honda it is still commonly used in many
Chinese, Korean and Taiwanese light vehicles.

Honda, despite being known as an engine company, has never built a V8 for
passenger vehicles. In the late 1990s, the company resisted considerable
pressure from its American dealers for a V8 engine (which would have seen use
in top-of-the-line Honda SUVs and Acuras), with American Honda reportedly
sending one dealer a shipment of V8 beverages to silence them. Honda
considered starting V8 production in the mid-2000s for larger Acura sedans, a
new version of the high end NSX sports car (which previously used DOHC V6
engines with VTEC to achieve its high power output) and possible future
ventures into the American full-size truck and SUV segment for both the Acura
and Honda brands, but this was cancelled in late 2008, with Honda citing
environmental and worldwide economic conditions as reasons for the termination
of this project.

Mountain bikes
See also: Honda RN-01 G-cross

Honda has also built a downhill racing bicycle known as the Honda RN-01. It is
not available for sale to the public. The bike has a gearbox, which replaces the
standard derailleurfound on most bikes.

Honda has hired several people to pilot the bike, among them Greg Minnaar. The
team is known as Team G Cross Honda.
WHAT MARKETING SHOULD DO
 Companies should establish a separate relationship market to
prepare, implement andmonitor their relationship marketing program.
  Company should not rely totally on technical people but employ
relationship managerswho well equipped with marketing Communication
and interpersonal skills.
 An integrated marketing system is a pre-
r e q u i s i t e f o r b u i l d i n g r e l a t i o n s h i p w i t h customers.
 Companies should continuously search for value building approaches
through a system
of q u a l i t y m a n a g e m e n t r e v i e w p r o c e s s , e t c . , b e c a u s e o n l
y b y e x c e e d i n g c u s t o m e r expectations, marketers can build a
value laden relationship with customers.
 As said before to satisfy a customer and to retain customer
relationship marketing isimportant.
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction
are :a ) C o m p l a i n t & S u g g e s t i o n s y s t e m b)Customer
satisfaction
surveyc ) G h o s t S h o p p i n g d ) L o s t C u s t o m
e r a n a l y s i s
a)Complaint & Suggestion system
A Customer’ centered organization would make it easy for its Customers to deliver
suggestionand complaints. Some customer centered companies – P & G,
General Electric, Whirlpoolestablished “Customer hot lines” with toll free 800
telephone numbers to maximize the ease with10

which customers can enquire make suggestion, or complaints. Their information

flows providesthese companies with many good ideas and enable them to act more
rapidly to resolve problems.
b)Customer satisfaction surveys
A company must not conclude that it can get a full picture o
f c u s t o m e r s a t i s f a c t i o n a n d dissatisfaction by simply relaying on
a complaint and suggestion system. Studies show thatcustomer are
dissatisfied with one out of every four purchases and less than 5% of
dissatisfiedcustomers will complaint customer may feel that their
complaints are minor, and they will bemade to feel stupid or that no remedy
will be offered. Most customers will by less or switch thesupplier
than complaint. The result is that the company has needlessly lost
customers.Therefore, companies can’t use complaint level as a measure of
customer satisfaction.Responsive companies obtain a direct measure of
customer satisfaction by conducting periodicsurveys. They send questionnaire
or make telephone calls to random sample of their recent customers to find
out how they feel about various aspects of the company’s performance.Customer
satisfaction can be measure in a number of ways. It can be measured
directly byasking “indicate how satisfied you are with service” on the following
scale, highly dissatisfied,indifferent satisfied, highly satisfied (Directly reported
satisfaction). Respondents can be askeda s w e l l a s t o r a t e h o w m u c h
they expected of a certain attribute and also
m u c h . T h e y experienced (desired dissatisfaction) still another method to ask
respondents to list any problemsthey had with the offer and to list any
improvements they could suggest (Problem analysis)finally, companies
could ask respondents to rate various elements of the offer in items of
theimportance of the each of and how were the organization performed
each element
(important performance ratings). Its last method helps the company to know if it i
s under performing onimportant elements and over performing on relatively
unimportant elements.
C ) G h o s t s h o p p i n g
Another useful way to gather a picture of customers satisfaction is to hire
persons to pose
as potential buyers to report their finds on strong and weak points they experienced
in buying thecompany’s and competitors products.11

d).
Lost Customer Analysis
Companies should contact who stopped buying or who have switch
to another supplier to learnwhy this happened. When IBM loses a customer,
they amount through effort or learn where theyfailed is their price too high, their
service deficient their products unreliable and so on. Not onlyit is important to
conduct exit interviews but also to monitor the customer loss rate, which if
itsincreasing clearly indicated that the company is failing to satisfy customers.
Some cautions in Measuring Customers Satisfaction
Wh en custo me rs r at e th eir s atis fa ction with an ele men t o f the co m
pan y’s pe rfo r ma nc e sa ydelivery, we need to recognize that customers
will vary in how they define food delivery ; it could mean early delivery
on time ; delivery order completeness, and so on. Yet if the companyhad to sell out
every element in detail customers would face huge questionnaire.Companies
should also note that managers and sales persons could manipulate their
ratings oncustomer satisfaction. They can be especially nice to customers
just before the survey. They canalso try excluding unhappy customer form being
included in the survey.Some customers may want to express high dissatisfaction in
order to receive more concession.
E. Lost Customer Analysis
.
Companies should contact who stopped buying or who have switch to
other supplier to learnwhy this happened. When IBM loses a customer, they
amount through effort or learn where theyfailed is their price too high, their service
deficient their products unreliable and so on. Not onlyit is important to conduct
exit interviews but also to monitor the customer loss rate, which if itsincreasing
clearly indicated that the company is failing to satisfy customer.
Some caution in Measuring Customers Satisfaction
Wh en custo me rs r at e th eir s atis fa ction with an ele men t o f the co m
pan y’s pe rfo r ma nc e sa ydelivery, we need to recognize that customers
will vary in how they define food delivery; it could mean early delivery on
time; delivery order completeness and so on. Yet if the companyhad to sell out
very element in detail customers would face huge questionnaire.12

Companies should also note that managers and sales persons could
manipulate their ratings oncustomer satisfaction. They can be especially nice
to customers just before the survey. They canalso try excluding unhappy
customers from being included in the survey. Some customers maywant to express
high dissatisfaction in order to receive more concession.
Observation on customer satisfaction
1.Customer satisfaction will be lower in industr
i e s w h e r e t h e i n d u s t r y o f f e r s a homogenous product to a
heterogenous market. On the other hand. Industries thatsupply a high
quality homogenous product to homogenous market will register
highsatisfaction.2 . C u s t o m e r s a t i s f a c t i o n i s l o w e r a n i n d u s t r i e s
w h e r e r e p e a l b u y e r f a c e s h i g h s w i t c h i n g costs. They have to but from
the supplier even through their satisfaction is low.3 . I n d u s t r i e s w h i c h
depend upon repeat business generally, create a higher
l e v e l o f customer satisfaction.4 . A s t h e c o m p a n y i n c r e a s e i t s
market share customer satisfaction call fa ll. This
i s because more customers with heterogeneous demands are drawn
into buying a fairlyhomogenous product.

Post Product Behavior

Af te r pu rch asing th e p roduct th e custo me r wil l expe ri ence so me l e
ve l o f sati sfa ction or dissatisfaction. The customer will engage in post
purchase actions and product uses of interest tothe marketers. The marketers job
does not end when the product is bought but continue into
the post purchase period. The buyer’s satisfaction
is function of the closeness between the buyer’s product expectations the customer
buts the product again and talks favorably or unfavorablyabout the product to other
s.Customers from their expectations on the basis of received. Messages from
sellers, friends andother information sources. If the seller exaggerates
the benefits, consumers will experiencedis confi r me d expe cta tions ,
which l ead to diss atisf action . The l arg er the g ap
be tween expectations and performance, the greater the consumer’s
dissatisfaction.13

Post Purchase Action

The Custo me r ’s sa tisf action o r d iss atisf action with th e p roduct wil
l in fluen ce subsequen t behavior. If the customer is satisfied, he or she will
exhibit a higher probability of purchasingthe product main. The satisfied
customer will also tend to say good things about the brand
toothers. Marketers lay ‘or best advertisements is the satisfied customer :.A
dissatisfied consumer responds differently. The dissatisfied consumer will
try to reduce
thedissolv anc e bec ause a hu man b eing st rives to e stab lish inte rnal
ha r mon y “ c onsist enc y or congruity among his opinions, knowledge and
values.Ma rket ers should be a wa re of th e full rang e
o f wa ys consu me r s h andle diss atisf ac tion. Consumers have a choice
between taking and not taking any action. If the former, they can
take public action or private action. If the former, they can take public action or pri
vate action. If the former, they can take public action or private action. Public
action includes complaining toth e co mpan y going to l a wye r or
co mp la ining to othe r g roups th at might he lp th e bu ye r
ge ts satisfaction. Such as a business private or government agencies or the buyer
might simply stop buying the product or warn friends. In all these cases the
seller losses in having done a poor jobof satisfaction to the customer.
System for complaints handling & service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied
with their purchasesabout 25% of the time. But surprising finding is that
only about 5% complain. The other 95%either feels that it is not worth the
effort to complain or that they don’t know how to whom to complain.Of the
5% of customers who complain, only about 50% report a satisfactory problem
resolution.Yet they need to resolve a customer problem in a satisfactory
manner is critical where as onaverage a satisfied customers tells three
people about a good product experience dissatisfied customer groups to
people. If each of them tells still other people the number of exposed to badwork of
mouth may grow exponentially.14

Honda is a major player in Two wheeler market. In India almost every second
motor cycle soldis from Honda. It is has many award to its creditHow strong the
brand may be, every organization has to strive to improve customer
satisfaction.With increasing competition and customer expectations,
Customer Satisfaction is the key tosuccess of any organization.Dealers play a
very important role in the marketing of any product. Their role is vital mainly
inthe case of consumer durables in general and automobiles in
particular. Unlike majority of consumer durables, automobiles need
periodic maintenance. Two wheelers have a peculiar feature as they are used
by common man who hardly has anyknowledge of the functioning or repairing of
the vehicle, dealers’ role is very important. Dealerscan enhance or tarnish the
image of the company and the product how ever good it may be.The strength of
Honda motors is its channel partners, and service availability every where.The
findings of the study are summarized below:

 Majority of the Honda customers are in the age group of 18 to 25 years.

 Majority of them are under graduates.

 Honda two wheeler customers are middle class and upper middle class.

 Normally a customer uses a Honda vehicle to a maximum period of 10 years

 •Activa, Unicorn and Shine brands are bread winners to Honda.
  Customers buy Honda for its technical features like mileage,
easy maintenance,superior technology etc.,

 Customers buy Honda influenced by their friends.

 Customers normally prefer local dealers and service dealers for buying a
vehicle.

 The dealer at Visakhapatnam Vishnu Honda motors is rated high by the40

 customers for service and are not loyal to them for after free services are
over

 Cost of spares and service is slightly high.

SUGGESTIONS
Regular availability of all models should be ensured. Efforts have to be taken
toensure no stock outs for Activa, Unicorn and Shine. Dealer has to put efforts to
improve qualityof after sales service as majority opined that they would not prefer
the dealer after free services.Dealer and Company should ensure availability of
flagship brand Activa. Due to non availability,majority of the prospective
customers are shifting to other company brands.Customers are suspecting the
dealers role in sticking to booking schedule. Efforts to be taken toensure
transparency in booking. Customer feedback system after sale and service would
improvethe image of the dealer. Dealer has to tie up with banks to provide finance
at competitive interestrates. Dealer has to be aggressive in marketing the vehicles
as they face a very toughcompetition from local Honda Dealer i.e., Jupiter
HondaDealer as well as the company has to put all efforts to enhance the image of
the brand as well as the dealership.

Compressed natural gas

The Honda Civic GX was for a long time the only purpose-built natural gas
vehicle (NGV) commercially available in some parts of the U.S. The Honda
Civic GX first appeared in 1998 as a factory-modified Civic LX that had
been designed to run exclusively on compressed natural gas. The car looks
and drives just like a contemporary Honda Civic LX, but does not run on
gasoline. In 2001, the Civic GX was rated the cleanest-burning internal
combustion engine in the world by the U.S. Environmental Protection
Agency (EPA).

First leased to the City of Los Angeles, in 2005, Honda started offering the
GX directly to the public through factory trained dealers certified to service
the GX. Before that, only fleets were eligible to purchase a new Civic GX.
In 2006, the Civic GX was released in New York, making it the second
state where the consumer is able to buy the car.

In June 2015, Honda announced its decision to phase out the

commercialization of natural-gas powered vehicles to focus on the
development of a new generation of electrified vehicles such
as hybrids, plug-in electric cars and hydrogen-powered fuel cell vehicles.
Since 2008, Honda has sold about 16,000 natural-gas vehicles, mainly to
taxi and commercial fleets.
Flexible-fuel

Honda's Brazilian subsidiary launched flexible-fuel versions for the Honda

Civic and Honda Fit in late 2006. As other Brazilian flex-fuel vehicles, these
models run on any blend of hydrous ethanol (E100) and E20-E25
gasoline. Initially, and in order to test the market preferences, the carmaker
decided to produce a limited share of the vehicles with flex-fuel engines, 33
percent of the Civic production and 28 percent of the Fit models. Also, the
sale price for the flex-fuel version was higher than the respective gasoline
versions, around US$1,000 premium for the Civic, and US$650 for the Fit,
despite the fact that all other flex-fuel vehicles sold in Brazil had the same
tag price as their gasoline versions. In July 2009, Honda launched in the
Brazilian market its third flexible-fuel car, the Honda City.

During the last two months of 2006, both flex-fuel models sold 2,427 cars
against 8,546 gasoline-powered automobiles, jumping to 41,990 flex-fuel
cars in 2007, and reaching 93,361 in 2008. Due to the success of the flex
versions, by early 2009 a hundred percent of Honda's automobile
production for the Brazilian market is now flexible-fuel, and only a small
percentage of gasoline version is produced in Brazil for exports.

In March 2009, Honda launched in the Brazilian market the first flex-fuel
motorcycle in the world. Produced by its Brazilian subsidiary Moto Honda
da Amazônia, the CG 150 Titan Mix is sold for around US$2,700.
Hybrid electric

In late 1999, Honda launched the first commercial hybrid electric car sold in
the U.S. market, the Honda Insight, just one month before the introduction
of the Toyota Prius, and initially sold for US$20,000. The first-generation
Insight was produced from 2000 to 2006 and had a fuel economy of 70
miles per US gallon (3.4 L/100 km; 84 mpg-imp) for the EPA's highway
rating, the most fuel-efficient mass-produced car at the time. Total global
sales for the Insight amounted to only around 18,000 vehicles.] Cumulative
global sales reached 100,000 hybrids in 2005 and 200,000 in 2007.

Honda introduced the second-generation Insight in Japan in February

2009, and released it in other markets through 2009 and in the U.S. market
in April 2009. At $19,800 as a five-door hatchback it will be the least
expensive hybrid available in the U.S.

Since 2002, Honda has also been selling the Honda Civic Hybrid (2003
model) in the U.S. market.[83] It was followed by the Honda Accord Hybrid,
offered in model years 2005 through 2007. Sales of the Honda CR-Z began
in Japan in February 2010, becoming Honda's third hybrid electric car in
the market. As of February 2011, Honda was producing around 200,000
hybrids a year in Japan.

Sales of the Fit Hybrid began in Japan in October 2010, at the time, the
lowest price for a gasoline-hybrid electric vehicle sold in the country. The
European version, called Honda Jazz Hybrid, was released in early
2011. During 2011 Honda launched three hybrid models available only in
Japan, the Fit Shuttle Hybrid, Freed Hybrid and Freed Spike Hybrid.

Honda's cumulative global hybrid sales passed the 1 million unit milestone
at the end of September 2012, 12 years and 11 months after sales of the
first generation Insight began in Japan November 1999. A total of 187,851
hybrids were sold worldwide in 2013, and 158,696 hybrids during the first
six months of 2014. As of June 2014, Honda has sold more than
1.35 million hybrids worldwide.
Hydrogen fuel cell

In Takanezawa, Japan, on 16 June 2008, Honda Motors produced the first

assembly-line FCX Clarity, a hybrid hydrogen fuel cell vehicle. More
efficient than a gas-electric hybrid vehicle, the FCX Clarity
combines hydrogen and oxygen from ordinary air to generate electricity for
an electric motor. In July 2014 Honda announced the end of production of
the Honda FCX Clarity for the 2015 model.

The vehicle itself does not emit any pollutants and its only by products are
heat and water. The FCX Clarity also has an advantage over gas-electric
hybrids in that it does not use an internal combustion engine to propel itself.
Like a gas-electric hybrid, it uses a lithium ion battery to assist the fuel cell
during acceleration and capture energy through regenerative braking, thus
improving fuel efficiency. The lack of hydrogen filling stations throughout
developed countries will keep production volumes low. Honda will release
the vehicle in groups of 150. California is the only U.S. market with
infrastructure for fueling such a vehicle, though the number of stations is
still limited. Building more stations is expensive, as the California Air
Resources Board (CARB) granted $6.8 million for four H2 fueling stations,
costing $1.7 million USD each.

Honda views hydrogen fuel cell vehicles as the long term replacement of
piston cars, not battery cars.
Plug-in electric vehicles

The all-electric Honda EV Plus was introduced in 1997 as a result

of CARB's zero-emissions vehicle mandate and was available only for
leasing in California. The EV plus was the first battery electric vehicle from
a major automaker with non-lead–acid batteries The EV Plus had an all-
electric range of 100 mi (160 km). Around 276 units were sold in the U.S.
and production ended in 1999.

The all-electric Honda Fit EV was introduced in 2012 and has a range of
82 mi (132 km).[100] The all-electric car was launched in the U.S. to retail
customers in July 2012 with initial availability limited to California and
Oregon. Production is limited to only 1,100 units over the first three years.
A total of 1,007 units have been leased in the U.S. through September
2014. The Fit EV was released in Japan through leasing to local
government and corporate customers in August 2012. Availability in the
Japanese market is limited to 200 units during its first two years. In July
2014 Honda announced the end of production of the Fit EV for the 2015
model.

The Honda Accord Plug-in Hybrid was introduced in 2013 and has an all-
electric range of 13 mi (21 km) Sales began in the U.S. in January 2013
and the plug-in hybrid is available only in California and New York. A total
of 835 units have been sold in the U.S. through September 2014. The
Accord PHEV was introduced in Japan in June 2013 and is available only
for leasing, primarily to corporations and government agencies.
International marketing

In 2003, Honda released its Cog advertisement in the UK and on the

Internet. To make the ad, the engineers at Honda constructed a Rube
Goldberg Machine made entirely out of car parts from a Honda Accord
Touring. To the chagrin of the engineers at Honda, all the parts were taken
from two of only six hand-assembled pre-production models of the Accord.
The advertisement depicted a single cog which sets off a chain of events
that ends with the Honda Accord moving and Garrison Keillor speaking the
tagline, "Isn't it nice when things just... work?" It took 606 takes to get it
perfect.

In 2004, they produced the Grrr advert, usually immediately followed by a

shortened version of the 2005 Impossible Dream advert. In December
2005, Honda released The Impossible Dream a two-minute panoramic
advertisement filmed in New Zealand, Japan and Argentina which
illustrates the founder's dream to build performance vehicles. While singing
the song "Impossible Dream", a man reaches for his racing helmet, leaves
his trailer on a minibike, then rides a succession of vintage Honda vehicles:
a motorcycle, then a car, then a powerboat, then goes over a waterfall only
to reappear piloting a hot air balloon, with Garrison Keillor saying "I couldn't
have put it better myself" as the song ends. The song is from the 1960s
musical Man Of La Mancha, sung by Andy Williams.

In 2006, Honda released its Choir advertisement, for the UK and the
internet. This had a 60-person choir who sang the car noises as film of the
Honda Civic are shown.
In the mid to late 2000s in the United States, during model close-out sales
for the current year before the start of the new model year, Honda's
advertising has had an animated character known simply as Mr.
Opportunity, voiced by Rob Paulsen. The casual looking man talked about
various deals offered by Honda and ended with the phrase "I'm Mr.
Opportunity, and I'm knockin'", followed by him "knocking" on the television
screen or "thumping" the speaker at the end of radio ads. In addition,
commercials for Honda's international hatchback, the Jazz, are parodies of
well-known pop culture images such as Tetris and Thomas The Tank
Engine.

In late 2006, Honda released an ad with ASIMO exploring a museum,

looking at the exhibits with almost childlike wonderment (spreading out its
arms in the aerospace exhibit, waving hello to an astronaut suit that
resembles him, etc.), while Garrison Keillor ruminates on progress. It
concludes with the tagline: "More forwards please". Honda also
sponsored ITV's coverage of Formula One in the UK for 2007. However
they had announced that they would not continue in 2008 due to the
sponsorship price requested by ITV being too high.

In May 2007, focuses on their strengths in racing and the use of the Red H
badge – a symbol of what is termed as "Hondamentalism". The campaign
highlights the lengths that Honda engineers go to in order to get the most
out of an engine, whether it is for bikes, cars, powerboats – even
lawnmowers. Honda released its Hondamentalism campaign. In the TV
spot, Garrison Keillor says, "An engineer once said to build something
great is like swimming in honey", while Honda engineers in white suits walk
and run towards a great light, battling strong winds and flying debris,
holding on to anything that will keep them from being blown away. Finally
one of the engineers walks towards a red light, his hand outstretched. A
web address is shown for the Hondamentalism website. The digital
campaign aims to show how visitors to the site share many of the
Hondamentalist characteristics.

At the beginning of 2008, Honda released – the Problem Playground. The

advert outlines Honda's environmental responsibility, demonstrating a
hybrid engine, more efficient solar panels and the FCX Clarity, a hydrogen-
powered car. The 90-second advert has large-scale puzzles,
involving Rubik's Cubes, large shapes and a 3-dimensional puzzle. On 29
May 2008, Honda, in partnership with Channel 4, broadcast a live
advertisement. It showed skydivers jumping from an aeroplane over Spain
and forming the letters H, O, N, D and A in mid-air. This live advertisement
is generally agreed to be the first of its kind on British television. The advert
lasted three minutes.

In 2009, American Honda released the Dream the Impossible documentary

series, a collection of 5- to 8-minute web vignettes that focus on the core
philosophies of Honda. Current short films include Failure: The Secret to
Success, Kick Out the Ladder and Mobility 2088. They have Honda
employees as well as Danica Patrick, Christopher Guest, Ben Bova, Chee
Pearlman, Joe Johnston and Orson Scott Card. The film series plays at
dreams.honda.com. In the UK, national television ads feature voice-overs
from American radio host Garrison Keillor, while in the US the voice of
Honda commercials is actor and director Fred Savage.
Honda Advanced Technology is part of Honda's long-standing research
and development program focused on building new models for their
automotive products and automotive-related technologies, with many of the
advances pertaining to engine technology. Honda's commitment to pursuit
of ideas and exploration of technological challenges has led to practical
solutions ranging from fuel-efficient vehicles and engines,[1] to more
sophisticated applications such as the humanoid robot, ASIMO, and
the Honda HA-420 HondaJet, a six-passenger business jet.[2] Honda
Advanced Technology emphasizes environmental sustainability, safety and
advanced mobility.

Safety

Honda operates two of the world's most sophisticated crash test

laboratories to improve safety designs and technologies in their
vehicles, resulting in the cars scoring five-star ratings in front and side
crash tests. A new independent crash test report from Euro NCAP also
assessed the 2009 Honda Accord, Honda Civic and Honda Jazz as among
Europe's safest cars, with an overall five-star rating.

Honda approaches safety issues through a core feature of advanced safety

technologies which are applied to virtually all models as standard
equipment to prevent accidents. Active safety technology prevents
uncontrollable steering during cornering on the road using the Vehicle
Stability Assist (VSA) while passive safety technology protects passengers
and pedestrian by dispersing force into the body frame of the vehicle in the
event of a road mishap. This is known as the G-force control (G-CON).
Vehicle Stability Assist

The Vehicle Stability Assist (VSA) was introduced by Honda to its vehicles
in 1997. The term is Honda's version of Electronic Stability Control
(ESC), an active safety feature developed to
correct oversteer and understeer by using several sensors to detect loss of
steering control and traction while simultaneously braking individual wheels
to help the vehicle regain stability.
How VSA works

VSA combines the Anti-lock Braking System (ABS) and Traction Control
System (TCS) with side-slip control to help stabilize the vehicle whenever it
turns more or less than desired. ABS is an existing system that prevents
the vehicle's wheels from locking up under braking, especially in slippery
road conditions. For the ABS to work, the system relies on the computed
input from a steering angle sensor to monitor the driver's steering direction,
the yaw sensor to detect the momentum of which the wheels are steering
(yaw rate), and a lateral acceleration (g-force) sensor to signal the changes
in speed. At the same time, the TCS will prevent wheel slip during
acceleration while the side-slip control stabilizes cornering when the rear or
front wheels slip sideways (during oversteer and understeer).

Controlling oversteer – During an oversteer, the rear end of the vehicle

will spin out because the rotational speed of the rear wheels exceeds the
front wheels. VSA will prevent the vehicle from spinning by braking the
outer front wheel to produce an outward moment and stabilize the vehicle.

Controlling understeer - During an understeer, the front wheels lose

traction during cornering due to excessive throttle and this causes the
speed difference between the left and front wheels to decrease. When the
vehicle steers outwards from the intended trajectory, VSA intervenes by
reducing engine power and if necessary, also braking the inner front wheel
The relative advantages and disadvantages between both are
Advantages of motor bikes
1. Fun and good to ride in any type of conditions
2. Can go for long touring without stress
3. Powerful than the scooters
4. Motor bikes has clutch and gear shifters which scooters doesn't
5. Can do cornering better than scooters
6. Can do stunts etc
7. Larger wheels, hence better comfort.
8. Larger brakes so better safety.
9. Motorbikes usually comes with wider wheels and Chunkier
suspension, ABS are only present on motorbikes. This again adds
to the safety.
10. Motorbikes are designed for city as well as highway. So they
are good for touring as well.
11. Motorbikes can even go offroad.
12.You don't too get up of the bike when putting fuel.
13.Higher cg helps the bike to corner it better.
14.Higher riding stability.
15. Motorcycle engine have higher performance figures. A bike will
always be faster than a Scooter.
16.
Disadvantages of motor bikes
1. High cost of maintenance than scooters
2. High cost than scooters etc
Advantages of scooters
1. Has lot amount of storage space to keep things
2. Gives decent milage when compared to motor bikes
3. No need to worry about acceleration, just push the throttle that's
enough ,no need to rev hard as bikes
4. Has pickup and Can run continuesly without worrying as in motor
bikes you have to change gears according to the limit to get pickup
5. Low cost than motor bikes
6. Low maintenance than motor bikes
7. Ease of riding.
8. Your feet is always resting.
9. Storage Space under seat.
10. No clutch, no fiddling with the gear.
11. Great to ride in traffic.
12.Light in weight.
13.Usually has lower seat height.
14.
Disadvantages of scooters
1. Cannot have fun like motor bikes
2. Cannot do stunts, even if you do it takes a lot of effort
3. Has small tank range
4. Cannot do cornering like motor bikes etc
 REASEARCH METHODOLOGY

NEED FOR THE STUDY:

Af te r glob ali zations , nu mb er o f two whe ele r ma r ke ts h ave ente r
ed Indian Ma rket. Ne wc o m p a n i e s h a v e b e e n s e t u p w i t h f o r e
i g n , s p e c i a l l y J a p a n e s e C o l l a b o r a t i o n b y a l r e a d y established
companies. Honda motors Japan has set up subsidiary company at Gurgaon ,
India tooffer state of the art Honda two wheelers to Indian makes Honda
motors with its wide productrange has achieved a respectful market
shone with strong dealer network and excellent after sales services.Ev en
though the re is wa iting pe riod for so me p rodu cts , so me a re
av ail able a cross the sh elf d eal erships a re upon not onl y at
me t ro s, but also a t u rban and se mi urb an a re as . This is to 2

provide prompt after sales services .it has opened class of art show rooms
and work shops at allthe places.There is a need to study to efforts put in by the
Company, Dealers and Service network to studythe extent to which
customers are satisfied with the product, service and allied services
etc.Hence it is proposed to study the Customer Satisfaction levels of Honda
Customers with respectto the product performance, after sales service and
other allied services like finance facility,availability of spares and
accessories etc.

OBJECTIVES OF THE STUDY

• To study the profile of Two wheeler Industry in India.
• To study the marketing activities of Honda Motors.
• To study the Dealership profile of Vishnu Honda.
• To study the customer handling practices prior to sale, during sale
and after sale and assesses the satisfaction levels of customers.
• To offer suggestion for improving the customer satisfaction.

HYPOTHESES

Sales of different brands of two wheelers are

uniformly distributed there is no significant
difference in the sales of different two wheeler
brands.

there is no significant difference between the

users of two wheelers on the factors like gender,
occupation etc towards their attitude about the
usage of bikes

different factors which are important in the

purchase decision of two wheeler buyers do not
differs significantly
 HYPOTHEIS 1

To test hypothesis 1 chi square test was applied

brand count

BAJAJ

HONDA

TVS

TABLE: 1.1

Age-wise Distribution of the Respondents

Age No. of Respondents Percentage (% )

18-20 years 45 18
21-30 years 91 36.4
31- 40 years 61 24.4
41-50 years 38 15.2
Above 50 years 15 6

TOTAL 250 100

Source: Primary Data

The table shows that 18% of the respondents are 18- 20 age group,36.4% of the respondents
belong to 21- 30 age group,24.4% of the respondents are 31 - 40 age group, 15.2% of the respondents are
41- 50 year group and 6% of the respondents are more than 50 years.

TABLE: 1.2
 Occupational Status of the Respondents

Occupational Status No. of Respondents Percentage (% )

Self employed 20 8

Private sector 30 12

Government sector 50 20

Professional 70 28

Student 70 28

Agriculture 10 4

Total 250 100

The above table depicts that out of 250 respondents, 28% of the respondents are students and
professional, 20% belong to government sector, 12% comes under the category of private sector, 8%
respondents are self employed persons, and 4% respondents are agriculture.

TABLE: 1.3
Monthly Income of Respondents

Monthly Income
No. of Respondents Percentage (% )
(in Rs.)

Upto Rs 5000 60 24

5001-10000 70 28

10001-15000 50 20

15001- 20000 40 16

Above 20001 30 12

Total 250 100

Source: Primary Data

The above table shows that, out of 250 respondents 28% of the respondents come under the
monthly income of Rs 5001 – 10,000, 24% belongs to the monthly income group of Rs up to 5000, 20%
have the income of Rs 10,001 – 15,000, 16% belong Rs 15001 – 20,000 and 12% are having more than Rs
20,001 as monthly income.

Table: 1.4
Model of the Honda Two wheeler Possessed by the Respondents

Particulars No. of Respondents Percentage (% )

Activa 57 22.8

Dio 45 18

Shine 20 8

CBR 150 15 6

CBR 250 8 3.2

Unicorn 70 28

Dream Yuga 31 12.4

Others 4 1.6

Total 250 100

Source: Primary Data

The table shows that 22.8% of the respondents use the model of Activa, 18% have Dio , 8% of
the respondents possess Shine, 6% use CBR 150, 3.2% have CBR 250, 28% possess the Unicorn, 12.4
have Dream yuga and 1.6% of the respondents have some other models.
 TABLE: 1.5

Source of Awareness About the Honda Two Wheeler Among Sample Respondents

Sources No. of Respondents Percentage (% )

News Paper 65 26

Magazines 45 18

Friend & Relative 50 20

Television 40 16

Internet 25 10

Poster 15 6

Other 10 4

Total 250 100

Source: Primary Data

The above table clearly shows that among the 250 respondents, 26% is stimulated by new
paper, 20% of them are influenced by friend & relative, 18% is stimulated by magazines, 16% through
television, 10% is influenced by internet and 6% are influenced by poster.

TABLE: 1.6

Reasons to Buy the Honda Two Wheeler Among the Respondents

Sources No. of Respondents Percentage (% )

Needful 45 18

Convenience 50 20

Brand image 70 28

Acceptable cost 40 16

Durable 30 12

Good service 15 6

Total 250 100

Source: Primary Data

The table shows that the out of 250 respondents, 28% buy the Honda Two Wheeler due to brand
image, 20% respondents for convenience, 18% respondents acquire to the reason of need ful, 16%
respondents on account of acceptable cost, 12% respondents for durable and remaining 6% respondents
for good service.

TABLE: 1.7

Features Influenced to Buy Honda Two Wheeler Among the Respondents

Features No. of Respondents Percentage (% )

Quality 40 16

Price 55 22

Style 49 19.6

Performance 45 18

Mileage 61 24.4

Colour 30 12

Appearance 25 10

Total 250 100

Source: Primary Data

The table shows the reasons of the purchasing decision. 16% of the respondents look for quality,
22% of the respondents are influenced by price, 19.6% of the respondents induce by style, 18% of the
respondents are looking for performance and 24.4% of the respondents prefer due to mileage, 12%
respondents buy due to colour and 10% of the respondents influence by appearance.

TABLE: 1.8

Type of Problems Faced by the Respondents

 Type of Problems No of Respondents Percentage (%)

Mileage 50 20

Brake 45 18

Tyre 55 22

Electrical Problems 60 24

Post Sales Service 20 8

Resale Value 10 4

Total 250 100

Source:Primary Data

The table shows that out of 250 respondents, 24%face the electrical problems, 22% have the
problem of tyre, 20% of the respondents face the problem of mileage, 18% have the problem of brake ,
8% face the problem of post sales service, and 4% have the problem of resale value.

TABLE: 1.9

Satisfaction Level on Mileage of Honda Two Wheeler Possessed by the Respondents

Respondents
Particulars Weight Total
Court
Highly satisfied 4 75 292
satisfied 3 117 345
Dissatisfied 2 41 86
Highly Dissatisfied 1 17 17
TOTAL 250 750
Source: Primary Data

The mean value is 3 this shows that the respondents are satisfied with respect to the mileage of Honda
two wheeler.

Weighted Average
 No. of Respondents * weight/ total respondents Weighted average

750 / 250 3

TABLE: 1.10

Factors Responsible for Satisfaction Among the Respondents

Factors No. of Respondents Percentage (% )

Price factor 50 20

Maintenance cost 90 36

Spare parts 70 28

Service factor 40 16

Total 250 100

Source: Primary Data

From the above table one can find that out 250 respondents, a maximum of 36% are satisfied with
respect to the maintenance cost of the Honda Two Wheeler followed by spare parts at 28%, 20% of
them are satisfied relating to price factor and 16% of the respondents are satisfied regarding service
factors.

Table: 1.11

Level of Satisfaction Attained by the Respondents

Level of Satisfaction No. of Respondents Percentage (% )

Highly satisfied 50 20

Satisfied 150 60

Not satisfied 30 12
 Dissatisfied 20 8

Total 250 100

Source:Primary Data

From the above table one can onclude that out of total respondents 60% of them are satisfied ,
20% of the respondents are highly satisfied and 12% them does not have any satisfaction and the
remaining 8% are dissatisfied.

ATTITUDE OF CONSUMERS

In the study, the respondent has taken six statements to measure the attitude. As there is no readymade
scale to measure the attitude level, a scale namely “Attitude Scale” has been developed by awarding
scores to the six
statements. With the help of this scale,the extend of attitude has been measured. Various factors and their
score indicate the level of satisfaction as shown in Table 4.26.

Details of Likerts Scale

TABLE: 1.12

Highly Highly Total

Particulars Satisfied Neutral Dissatisfied Mean Rank
Satisfied Dissatisfied Score
Patience of
Sales 280 232 225 70 26 833 3.33 VI
Executives

Clarity 335 296 174 78 12 895 3.58 IV

Sales
Executive 315 232 225 70 19 861 3.44 V
Behaviour

Ambience of
520 304 120 38 11 993 3.97 II
Showroom
 Availability
of Product,
Service 500 380 75 20 10 985 3.94 III
Centre &
Spare Parts
Satisfaction
Level of
490 408 90 40 5 1033 4.13 I
services
provided
Source: Primary Data

LIMITATIONS OF THE STUDY:

- The study is limited to Honda Motors Customers who have purchased or come
for serviceto M/s Sri Vishnu Honda at Visakhapatnam.- Since a convenient
sampling method is adopted, the sample may not be representing all types
of customers.- As the study is conducted for a limited period and hence it may not
be exhaustive.3

METHODOLOGY:
The study is conducted basing on Primary and Secondary DataPrimary data is
collected by administering a structured questionnaire to customers who visit
thedealer for purchase and service. Data is also collected through personal
discussions with thedealer, sales and service staff and personal observation made
during sale and service.Secondary data is obtained from company records, web
site, published articles etc.

SAMPLING:
Convenient Sampling method is adopted for selecting the
respondents. Care is taken to cover customers of all types of products and
age groups etc.4

CHAPTER IICUSTOMER SATISFACTION

INTRODUCTION
Satisfaction is a person’s feelings of pleasure (or) is app ointment
resulting from comparing a products, perceived performance in relation to his
(or) her expectation.Satisfaction is a function of perceived performance and
expectations. If the performance fallsshort of expectation, the customer is
dissatisfied. If the performance matches the expectations,th e custo me r
is s atisfi ed . I f the p er for ma n ce exc eeds expe ctations ,
th e custo me r is highl ysatisfied (or) delighted.Cu sto me r s atisf action is
both a go al and a ma r k eting tool . Co mp ani es that ach ieve
high customer satisfaction ratings make sure that their target market knows
it.Actual performance by the firmCustomer Satisfaction Customer Expectations5
1.CUSTOMER & HIS IMPORTANCE :-
The essence of the marketing concept is that organizations must adopt customer
oriented featuresand focus their attention of building programs, offering and
strategies that satisfy customer needsand wants. Many organizations maintain
their focus on operations or product or sales efforts and thereby ;
get dislocated by mistaking the means for the end. Successful
marketing involvescompanywide transformations in attitude beliefs and
perceptions of the people in how theyvi ew th e
cu sto me r . De ep co mmi t me nt to the custo me r
is what dis tinguish es succ ess ful marketers from Laggards.The excellent
companies really close to their customers, other companies top about it,
excellentcompanies really close to their customers, other companies to about it,
excellent companies doit’. The companies, which show extra ordinary
concern for the customer, include. Americanexp res s, Mc donalds ,
C itibank , I BM who go to the s ma ll est dea ler s also “Ne v e r fo rget
th ecustomer’s attitude is the hull mark of their service strategy.Hence Customers
are :-1 .The mos t imp o rtan t p eople i n an y busin ess . 2.They are not
dependent of a business, But business is dependent on them.3.They
are not an interruption to own work, they are the purpose of it.4 . T h e y
are doing us favor when they come in, we are not doing them
f a v o r b y s e r v i n g them.5.They are part of our business, they are
not outsiders.6. They are not just statistic. The customers are human
beings with flesh and blood havingfeelings and emotions.7.People come to
us with their needs and wants. It is our job to fulfill them.8 .The y a r e th e
li feblood o f eve ry b usine ss wi thout who m th e d oor of th e business
wo u l d have been closed.9.Non customer functions in particular must be
made customer oriented. Customer needsand requirements should be tracked
on regular basis.6

II.CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends upon the offer
performance in relation tothe buyer’s expectations. Customer satisfaction can be
defined as :-Satisfaction is the level of a person’s felt state resulting from
comparing a product’s
perceived performance in relation to the person’s expectation’s satisfaction level i
s a function of thedifferent between perceived performance and expectations some
of the successful business firmsare aiming for total Customer Satisfaction which
increase customer loyalty towards the productor service offered by the firm.
I I I . I M P O R T A N C E O F C U S T O M E R S A T I S F A C T I O N MISSIO
N AND PURPOSE OF BUSINESS:
The need to satisfy customer for achieving success in any commercial
enterprise is so obvious,one wonder if there is any need to establish the
importance of customer satisfaction. However one often finds that what
should be obvious everyone also needs to be explained and establish.The income
of commercial enterprise is derived from the payment received for the products
andservices supplied to its external customers. If there are no customers, there is no
income, thereis no business. In other words, customers are the sole reason
for the existence of commercialestablishments, as the function is
extremely important for the success of the organization, thesenior
management as well as the leaders of other departments or Divisions should also
realizethe importance of customers to the organization and for its
growth. It is therefore no surprisethat Peter Drucket, the renowned
management guru said “ to satisfy the customer is the missionand purpose of
every business :.

IV.CUSTOMER SATISFACTION PROCESS

Companies seeking to win in today’s market must track their customer’s expectations
perceivedcompany performance and customer satisfaction not only for them but for their
competitions aswell.Brand loyalty and Customers satisfaction on the other hand are
almost synonymous and their impact on market share is statistically varifiable. The
relationship between market
share profitability as well as profitability and share holder value creation have been the subject o
f considerable research over the years and the linkages have been proven many times.
Customer satisfaction and Business Results
Licensing to BrandsVoice of the customer Service

Honda is the world’s largest manufacturer of two wheelers, Recognized over the world as the
symbol of Honda Two Wheelers, the ‘Wings’ arrived in India as Honda Motorcycle and Scooter
India Pvt. Ltd. (HMSI), a 100% subsidiary of Honda Motor Company Ltd., Japan, in 1999. Since
its establishment in 1999 at Manesar, District Gurgaon, Haryana, Honda has lived up to its
reputation of offering the highest quality products at the most reasonable price. Despite being
one of the youngest players in the Indian two-wheelers market, Honda has become the largest
two wheeler manufacturer as well as the second largest two-wheelers company in India.
Honda is also the fastest growing company in country today. With a host of facilities under its
wings, the first factory of HMSI is spread over 52 acres including a covered area of about
100,000 sq. meters in Manesar, District Gurgaon, Haryana with an annual capacity of 1.65
million units. To meet the ever increasing demands of the products, Honda has started
operations of its second plant in Tapukara, District Alwar, Rajasthan. Expanding to full
operations, Honda production capacity has jumped 30% year on year to 2.8 million per annum
in FY 12- 13.
Honda’s third plant at Narsapura Industrial Area near Bengaluru, Karnataka is equipped to
manufacture 1.2 million units. Utilizing production technologies refined at Manesar & Tapukara
plants as starting point, the 3rd plant is employed with state-of-the-art manufacturing,
automation and environment friendly technologies to deliver quality products.
On February 17 2016, Honda inaugurated the “World’s largest only scooter plant" at Vithalapur
Gujarat with annual capacity of 1.2 million units. The new plant will employ approximately 3000
people within first 2 years of commercial production.

factory of honda
Honda is the world’s largest manufacturer of two wheelers, Recognized over the world as the
symbol of Honda Two Wheelers, the ‘Wings’ arrived in India as Honda Motorcycle and Scooter
India Pvt. Ltd. (HMSI), a 100% subsidiary of Honda Motor Company Ltd., Japan, in 1999. Since
its establishment in 1999 at Manesar, District Gurgaon, Haryana, Honda has lived up to its
reputation of offering the highest quality products at the most reasonable price. Despite being
one of the youngest players in the Indian two-wheelers market, Honda has become the largest
two wheeler manufacturer as well as the second largest two-wheelers company in India.
Honda is also the fastest growing company in country today. With a host of facilities under its
wings, the first factory of HMSI is spread over 52 acres including a covered area of about
100,000 sq. meters in Manesar, District Gurgaon, Haryana with an annual capacity of 1.65
million units. To meet the ever increasing demands of the products, Honda has started
operations of its second plant in Tapukara, District Alwar, Rajasthan. Expanding to full
operations, Honda production capacity has jumped 30% year on year to 2.8 million per annum
in FY 12- 13.
Honda’s third plant at Narsapura Industrial Area near Bengaluru, Karnataka is equipped to
manufacture 1.2 million units. Utilizing production technologies refined at Manesar & Tapukara
plants as starting point, the 3rd plant is employed with state-of-the-art manufacturing,
automation and environment friendly technologies to deliver quality products.
On February 17 2016, Honda inaugurated the “World’s largest only scooter plant" at Vithalapur
Gujarat with annual capacity of 1.2 million units. The new plant will employ approximately 3000
people within first 2 years of commercial production.

Headquartered in Japan, Honda Motor Company is one of the major producers of quality motor
vehicles around the world. Honda's quality, innovation and reliability has made it one of the most
sought after car brands in the world. It's major car models such as Accord have occupied the
leadership position in global sales for years now. Honda cars are also renowned for their fuel
efficiency and have a loyal customer following all around the world.
Honda's leadership position is sustained due to its enormous focus on R&D, quality and
innovation. Along with Toyota, its major competitor, Honda has ruled the US markets with its
successful models and captured market share of American manufacturers such as GM and
Ford.
Company Overview
Honda has grown to become the world's largest motorcycle manufacturer and one of the leading
automakers. Honda develops, manufactures and markets a wide variety of products ranging
from small general-purpose engines and scooters to specialty sports cars, to earn the Honda
Motor Company an outstanding reputation from customers worldwide. ( Honda Company
Overview, 2007 )
The Company's business is carried out through four segments. The Two-Wheel segment
manufactures two-wheel vehicles, all-terrain vehicles (ATVs), personal watercrafts and other
related products. The Four-Wheel segment offers four-wheel vehicles and other related
products. Honda's major car models include its best selling Accord, Civic, CRV, Hybrid car
Insight and its luxury range of cars under the "Acura" brand. The ...
Headquartered in Japan, Honda Motor Company is one of the major producers of quality motor
vehicles around the world. Honda's quality, innovation and reliability has made it one of the most
sought after car brands in the world. It's major car models such as Accord have occupied the
leadership position in global sales for years now. Honda cars are also renowned for their fuel
efficiency and have a loyal customer following all around the world.
Honda's leadership position is sustained due to its enormous focus on R&D, quality and
innovation. Along with Toyota, its major competitor, Honda has ruled the US markets with its
successful models and captured market share of American manufacturers such as GM and
Ford.
Company Overview
Honda has grown to become the world's largest motorcycle manufacturer and one of the leading
automakers. Honda develops, manufactures and markets a wide variety of products ranging
from small general-purpose engines and scooters to specialty sports cars, to earn the Honda
Motor Company an outstanding reputation from customers worldwide. ( Honda Company
Overview, 2007 )
The Company's business is carried out through four segments. The Two-Wheel segment
manufactures two-wheel vehicles, all-terrain vehicles (ATVs), personal watercrafts and other
related products. The Four-Wheel segment offers four-wheel vehicles and other related
products. Honda's major car models include its best selling Accord, Civic, CRV, Hybrid car
Insight and its luxury range of cars under the "Acura" brand. The ...
CHAPTER-VSUMMARY AND SUGGESTIONS
SUMMARY
39
Honda is a major player in Two wheeler market. In India almost every second motor cycle soldis
from Honda. It is has many award to its creditHow strong the brand may be, every organization
has to strive to improve customer satisfaction.With increasing competition and customer
expectations, Customer Satisfaction is the key to success of any organization.Dealers
play a very important role in the marketing of any product. Their role is vital mainly inthe case
of consumer durables in general and automobiles in particular. Unlike majority
of consumer durables, automobiles need periodic maintenance. Two wheelers have
a peculiar feature as they are used by common man who hardly has anyknowledge of the
functioning or repairing of the vehicle, dealers’ role is very important. Dealerscan enhance or
tarnish the image of the company and the product how ever good it may be.The strength of
Honda motors is its channel partners, and service availability every where.The findings of the
study are summarized below:
•
Majority of the Honda customers are in the age group of 18 to 25 years.
•
Majority of them are under graduates.
•
Honda two wheeler customers are middle class and upper middle class.
•
Normally a customer uses a Honda vehicle to a maximum period of 10 years
•
Activa, Unicorn and Shine brands are bread winners to Honda.
•
Customers buy Honda for its technical features like mileage, easy maintenance,superior
technology etc.,
•
Customers buy Honda influenced by their friends.
•
Customers normally prefer local dealers and service dealers for buying a vehicle.
•
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the40

customers for service and are not loyal to them for after free services are over
•
Cost of spares and service is slightly high.

SUGGESTIONS
Regular availability of all models should be ensured. Efforts have to be taken toensure no stock
outs for Activa, Unicorn and Shine. Dealer has to put efforts to improve qualityof after sales
service as majority opined that they would not prefer the dealer after free services.Dealer and
Company should ensure availability of flagship brand Activa. Due to non availability,majority of
the prospective customers are shifting to other company brands.Customers are suspecting the
dealers role in sticking to booking schedule. Efforts to be taken toensure transparency in
booking. Customer feedback system after sale and service would improvethe image of the dealer.
Dealer has to tie up with banks to provide finance at competitive interestrates. Dealer has to be
aggressive in marketing the vehicles as they face a very toughcompetition from local
Honda Dealer i.e., Jupiter HondaDealer as well as the company has to put all efforts to
enhance the image of the brand as well as the dealership
 SUMMARY OF FINDINGS OF STUDY

1. The study shows that out of 250 sample respondents, 36.4% are in the age of 21-30
years.
2. It is found that 28% of the respondents are student and
professionals. It shows that Honda Two Wheeler is highly used by
them as compare with other.
3. The study shows that out of sample respondents, 28% have the monthly
income level of Rs 5001 to 10,000. 4.It is found that majority of the
respondents (28%) use Unicorn Two Wheelers in their home/offices.
5. Out of 250 respondents majority of them (26%) are aware of Honda Two Wheelers
through News Paper

6.The study clearly shows that out of 250 respondents most of them (28%)
acquire Honda Two Wheeler by giving preference to brand image than the
other reasons of good service and durable

7.It is clear that majority of the respondents (24.4%) given the preference to mileage.

8.It is found that majority of the respondents (24%) face the

electrical problems while using their Honda Two Wheeler.
9.The study reveals that out of total respondents, majority of the
respondents are satisfied about the mileage of Honda Two Wheeler.
10.It is found that out of sample respondents, majority of them
(36%) are satisfied regarding the maintenance cost of their Honda
Two Wheelers.
11.The study reveals that out of total respondents, majority of the
respondents (60%) are satisfied with
their Honda Two Wheeler.
Out of 250 sample respondents, the maximum numbers of the customers give the first rank
for the Honda two wheelers
Different factors which are
important in the purchase decision of
two wheeler buyers do not differ
significantly.

important in the purchase decision of

two wheeler buyers do not differ
significantly.

To test this hypothesis, ANOVA was used with following re

http://world.honda.com/

https://curlie.org/
Recreation/Autos/Makes_and_Models/Honda/
https://curlie.org/Recreation/Motorcycles/Makes_and_Models/Honda/
International marketing

A Honda dealership in Ontario, Canada

A Honda Dealership in Dreghorn, Scotland

In 2003, Honda released its Cog advertisement in the UK and on the Internet. To make the ad,
the engineers at Honda constructed a Rube Goldberg Machine made entirely out of car parts
from a Honda Accord Touring. To the chagrin of the engineers at Honda, all the parts were
taken from two of only six hand-assembled pre-production models of the Accord. The
advertisement depicted a single cog which sets off a chain of events that ends with the Honda
Accord moving and Garrison Keillor speaking the tagline, "Isn't it nice when things just... work?"
It took 606 takes to get it perfect.[112]
In 2004, they produced the Grrr advert, usually immediately followed by a shortened version of
the 2005 Impossible Dream advert. In December 2005, Honda released The Impossible
Dream a two-minute panoramic advertisement filmed in New Zealand, Japan and Argentina
which illustrates the founder's dream to build performance vehicles. While singing the song
"Impossible Dream", a man reaches for his racing helmet, leaves his trailer on a minibike, then
rides a succession of vintage Honda vehicles: a motorcycle, then a car, then a powerboat, then
goes over a waterfall only to reappear piloting a hot air balloon, with Garrison Keillor saying "I
couldn't have put it better myself" as the song ends. The song is from the 1960s musical Man Of
La Mancha, sung by Andy Williams.
In 2006, Honda released its Choir advertisement, for the UK and the internet. This had a 60-
person choir who sang the car noises as film of the Honda Civic are shown.
In the mid to late 2000s in the United States, during model close-out sales for the current year
before the start of the new model year, Honda's advertising has had an animated
character known simply as Mr. Opportunity, voiced by Rob Paulsen. The casual looking man
talked about various deals offered by Honda and ended with the phrase "I'm Mr. Opportunity,
and I'm knockin'", followed by him "knocking" on the television screen or "thumping" the speaker
at the end of radio ads. In addition, commercials for Honda's international hatchback, the Jazz,
are parodies of well-known pop culture images such as Tetris and Thomas The Tank Engine.
In late 2006, Honda released an ad with ASIMO exploring a museum, looking at the exhibits
with almost childlike wonderment (spreading out its arms in the aerospace exhibit, waving hello
to an astronaut suit that resembles him, etc.), while Garrison Keillor ruminates on progress. It
concludes with the tagline: "More forwards please". Honda also sponsored ITV's coverage
of Formula One in the UK for 2007. However they had announced that they would not continue
in 2008 due to the sponsorship price requested by ITV being too high.
In May 2007, focuses on their strengths in racing and the use of the Red H badge – a symbol of
what is termed as "Hondamentalism". The campaign highlights the lengths that Honda
engineers go to in order to get the most out of an engine, whether it is for bikes, cars,
powerboats – even lawnmowers. Honda released its Hondamentalism campaign. In the TV
spot, Garrison Keillor says, "An engineer once said to build something great is like swimming in
honey", while Honda engineers in white suits walk and run towards a great light, battling strong
winds and flying debris, holding on to anything that will keep them from being blown away.
Finally one of the engineers walks towards a red light, his hand outstretched. A web address is
shown for the Hondamentalism website. The digital campaign aims to show how visitors to the
site share many of the Hondamentalist characteristics.
At the beginning of 2008, Honda released – the Problem Playground. The advert outlines
Honda's environmental responsibility, demonstrating a hybrid engine, more efficient solar panels
and the FCX Clarity, a hydrogen-powered car. The 90-second advert has large-scale puzzles,
involving Rubik's Cubes, large shapes and a 3-dimensional puzzle. On 29 May 2008, Honda, in
partnership with Channel 4, broadcast a live advertisement. It showed skydivers jumping from
an aeroplane over Spain and forming the letters H, O, N, D and A in mid-air. This live
advertisement is generally agreed to be the first of its kind on British television. The advert
lasted three minutes.[113]
In 2009, American Honda released the Dream the Impossible documentary series, a collection
of 5- to 8-minute web vignettes that focus on the core philosophies of Honda. Current short films
include Failure: The Secret to Success, Kick Out the Ladder and Mobility 2088. They have
Honda employees as well as Danica Patrick, Christopher Guest, Ben Bova, Chee
Pearlman, Joe Johnston and Orson Scott Card. The film series plays at dreams.honda.com. In
the UK, national television ads feature voice-overs from American radio host Garrison Keillor,
while in the US the voice of Honda commercials is actor and director Fred Savage.
Sports
The late F1 driver Ayrton Senna stated that Honda probably played the most significant role in
his three world championships. He had immense respect for founder, Soichiro Honda, and had
a good relationship with Nobuhiko Kawamoto, the chairman of Honda at that time. Senna once
called Honda "the greatest company in the world".[114]
As part of its marketing campaign, Honda is an official partner and sponsor of the National
Hockey League, the Anaheim Ducks of the NHL, and the arena named after it: Honda Center.
Honda also sponsors The Honda Classic golf tournament and is a sponsor of Major League
Soccer. The "Honda Player of the Year" award is presented in United States soccer. The
"Honda Sports Award" is given to the best female athlete in each of twelve college sports in the
United States. One of the twelve Honda Sports Award winners is chosen to receive the Honda-
Broderick Cup, as "Collegiate Woman Athlete of the Year."
Honda sponsored La Liga club Valencia CF starting from 2014–15 season.[115]
Honda has been a presenting sponsor of the Los Angeles Marathon since 2010 in a three-year
sponsorship deal, with winners of the LA Marathon receiving a free Honda Accord. Since 1989,
the Honda Campus All-Star Challenge has been a quizbowl tournament for Historically black
colleges and universities.

Summary of Honda Motor Company

Headquartered in Japan, Honda Motor Company is one of the major producers of quality motor
vehicles around the world. Honda's quality, innovation and reliability has made it one of the most
sought after car brands in the world. It's major car models such as Accord have occupied the
leadership position in global sales for years now. Honda cars are also renowned for their fuel
efficiency and have a loyal customer following all around the world.
Honda's leadership position is sustained due to its enormous focus on R&D, quality and
innovation. Along with Toyota, its major competitor, Honda has ruled the US markets with its
successful models and captured market share of American manufacturers such as GM and
Ford.
Company Overview
Honda has grown to become the world's largest motorcycle manufacturer and one of the leading
automakers. Honda develops, manufactures and markets a wide variety of products ranging
from small general-purpose engines and scooters to specialty sports cars, to earn the Honda
Motor Company an outstanding reputation from customers worldwide. ( Honda Company
Overview, 2007 )
The Company's business is carried out through four segments. The Two-Wheel segment
manufactures two-wheel vehicles, all-terrain vehicles (ATVs), personal watercrafts and other
related products. The Four-Wheel segment offers four-wheel vehicles and other related
products. Honda's major car models include its best selling Accord, Civic, CRV, Hybrid car
Insight and its luxury range of cars under the "Acura" brand. The ...
sult