MAJOR RESEARCH PROJECT

On
“SERVICE QUALITY AND CUSTOMER SATISFACTION OF
MARUTI SUZUKI
For partial fulfilment of the requirement for the Degree of

Master of Business Administration

Batch 2018-2020

Submitted to: Submitted by:

Mr. Saket Rathi Nilesh Singh (MBA III)

Business Economics (Marketing)

IBMR IPS ACADEMY

Rajendra Nagar, A.B. Road, Indore–452012 (M.P.)
CONTENTS

1- Introduction
2- Company Details
3- Review of Literature
4- Rationale of study
5- Objectives of study
6- Methodology
a) Sampling Design
b) Steps in Sampling Design
c) Methods of Data Collection

7- Reference (Bibliography)
INTRODUCTION

Service quality is an achievement in customer service. It reflects at each service

encounter. Customers form service expectations from past experiences, word of mouth
and marketing communications. In general, customers compare perceived service with
expected service, and if the former falls short of the latter the customers are
disappointed. Service quality can be related to service potential (for example, worker's
qualifications); service process (for example, the quickness of service) and service
result (customer satisfaction).
Service quality (SQ), in its contemporary conceptualisation, is a comparison of
perceived expectations (E) of a service with perceived performance (P), giving rise to
the equation SQ=P-E. This conceptualisation of service quality has its origins in the
expectancy-disconfirmation paradigm.
A business with high service quality will meet or exceed customer expectations whilst
remaining economically competitive. Evidence from empirical studies suggests that
improved service quality increases profitability and long term economic
competitiveness. Improvements to service quality may be achieved by improving
operational processes; identifying problems quickly and systematically; establishing
valid and reliable service performance measures and measuring customer
satisfaction and other performance outcomes.
The measurement of subjective aspects of customer service depends on the conformity
of the expected benefit with the perceived result. This in turns depends upon the
customer's expectation in terms of service, they might receive and the service
provider's ability and talent to present this expected service. Successful companies add
benefits to their offering that not only satisfy the customers but also surprise
and delight them. Delighting customers is a matter of exceeding their expectations.
Pre-defined objective criteria may be unattainable in practice, in which case, the best
possible achievable result becomes the ideal. The objective ideal may still be poor, in
subjective terms. Individual service quality states the service quality of employees as
distinct from the quality that the customers perceived.
Service quality is generally viewed as the output of the service delivery system,
especially in the case of pure service systems. Moreover, service quality is linked to
consumer satisfaction. Service quality is a perception of the customer. Customers,
however, form opinions about service quality not just from a single reference but from
a host of contributing factors.
Customer satisfaction is defined as a measurement that determines how
happy customers are with a company's products, services, and capabilities. Customer
satisfaction information, including surveys and ratings, can help a company determine
how to best improve or changes its products and services. An organization’s main
focus must be to satisfy its customers. This applies to industrial firms, retail and
wholesale businesses, government bodies, service companies, non-profit
organizations, and every subgroup within an organization.
Organizations should not assume they know what the customer wants. Instead, it is
important to understand the voice of the customer, using tools such as
customer surveys, focus groups, and polling. Using these tools, organizations can gain
detailed insights as to what their customers want and better tailor their services or
products to meet or exceed customer expectations.
Every method of collecting data on customer satisfaction comes down to a customer
survey. With digital analytics, we can determine if users are researching a goal, how
they are interacting with a feature, or even their relative struggle completing a given
task. But we can’t gauge their emotional response to any of that.

That’s the secret. Measuring customer satisfaction gives you a peek at your
customers’ emotional responses. If we simply judge customer experience on
conversion rates and goals completed, the DMV would score very high — much
higher than something with higher funnel drop-off, like, say, buying a Tesla.
Luckily, most businesses know not to measure things so myopically. We look at data
in the right context and with a blend of attitudinal and behavioural data. When it
comes to optimizing for customer experience and improving customer satisfaction,
that’s the way to go.
Surveys: When do you send them? To whom do you send them?
These are great questions — and it depends on what you want to answer. Most often,
with a customer satisfaction survey, you’re looking to answer a very specific question
such as, “How did the customer feel about this specific situation?” This situation is
usually transactional, such as buying a pair of socks or getting an oil change.
In this case, you’re best off sending the survey as soon as you can. The longer the
delay, the more likely it is that your data will be skewed. The memory does strange
things, especially when it comes to emotions and experiences. If you want a true
reflection of the customer’s experience, send the survey ASAP.
Details of Company

Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an

automobile manufacturer in India. It is a 56.21% owned subsidiary of the Japanese car
and motorcycle manufacturer Suzuki Motor Corporation. As of July 2018, it had a
market share of 53% of the Indian passenger car market. Maruti Suzuki manufactures
and sells popular cars such as the Ciaz, Ertiga, Wagon R, Alto K10 and Alto
800, Swift, Celerio, Swift Dzire, Baleno and Baleno RS, Omni, baleno, Eeco, Ignis, S-
Cross, Vitara Brezza and newly launched S-Presso small SUV. The company is
headquartered at New Delhi. In May 2015, the company produced its fifteen millionth
vehicle in India, a Swift Dzire.

Maruti is India's foremost automobile company has over the years created history with
its collaborator, Suzuki of Japan. Maruti is the market leader in all segments of the
passenger car market. Maruti over the years has been able to build the following
strengths: large production volumes, a well-developed vendor base, large sales and
after sales network and a large population of cars on the roads (over half the total cars
in India belong to maruti) are tangible strengths for all to see. Maruti is the leader in
terms of providing the customer a low cost fuel-efficient vehicle. As a corollary we
are the lowest cost manufacturers in India. In a price sensitive market like India
especially for big-ticker items for the aspiring middle class, very few companies can
think of matching us without sustaining substantial losses. What is not very visible our
high standards of productivity, Japanese work culture, a well – trained and motivated
work force and technical support from Suzuki the leader of small cars.

History

Maruti Udyog Limited was founded by the Government of India in 1981, only to
merge with the Japanese automobile company Suzuki in October 1982. The first
manufacturing factory of Maruti was established in Gurugram, Haryana, in the same
year.

Affiliation with Suzuki

In 1982, a license and joint venture agreement (JVA) was signed between Maruti
Udyog Ltd, and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of
cars. In India's closed market, Maruti received the right to import 40,000 fully built-up
Suzuki in the first two years, and even after that the early goal was to use only 33%
indigenous parts. This upset the local manufacturers considerably. There were also
some concerns that the Indian market was too small to absorb the comparatively large
production planned by Maruti Suzuki, with the government even considering
adjusting the petrol tax and lowering the excise duty in order to boost sales. Local
production commenced in December 1983. In 1984, the Maruti Van with the same
three-cylinder engine as the 800 was released and the installed capacity of the plant
in Gurgaon reached 40,000 units.

In 1985, the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, was

launched. In 1986, the original 800 was replaced by an all-new model of the 796 cc
hatchback Suzuki Alto (SS80) and the 100,000th vehicle was produced by the
company. In 1987, the company started exporting to the West, when a lot of 500 cars
were sent to Hungary. By 1988, the capacity of the Gurgaon plant was increased to
100,000 units per annum.

PRODUCTS & SERVICES OF MARUTI SUZUKI LIMITED:-

 800 (Launched-1983)
 Omni (Launched-1984)
 Gypsy (Launched-1985)
 WagonR (Launched-1999)
 Alto (Launched-2000)
 Swift (Launched-2005)
 Estilo (Launched-2006)
 SX4 (Launched-2007)
 Grand Vitara (launched-2007)
 Swift Dzire (Launched-2008)
 A-star (Launched-2008)
 Ritz (Launched-2009)
 Eeco (Launched-2010)
 Alto K10 (Launched-2010)
  Maruti Ertiga (Launched-2012)
 Maruti Alto 800 (Launched-2012)
 Maruti Ciaz (launched-2014)
 Maruti Nexa Baleno (launched-2015)
 Maruti Nexa S-cross (launched-2015)
 Maruti Ignis (launched-2017)
 Maruti XL6 (Launched-2019)
 Maruti S-Presso (Launched-2019)

MARUTI ADD-ON SERVICES:-

 Maruti Insurance

 Maruti Driving School

 Maruti Finance

 Maruti True Services

 Maruti Genuine Accessories

REVIEW OF LITERATURE

MR.VISHAL.S.RANA, 2015 has made a study on PERFORMANCE

EVALUATION OF MARUTI SUZUKI INDIA LIMITED: Maruti Suzuki India
Limited is India‘s leading & largest Passenger car manufacturer which accounting for
nearly 50 percent of the total industry sales. With a view to cater the demand of all
types of customer the company has variety of brands in its basket i.e., ranging from
the peoples car Maruti 800 to the stylish hatch-back Swift, SX4 Sedan and luxury
sports utility vehicle (SUV) Grand Vitara.

GAUHAR FATMA & ELA KUMAR, 2014 made a research on MARKETING

STRATEGIES OF MARUTI SUZUKI LIMITED
All the marketing strategies are based on right mix of 4Ps, only those can be ahead
which has the right marketing strategies because it increases the chances of better
market penetration with proper utilization of resources. Maruti Suzuki India limited is
presently considered as the leading automobile giant. This research paper is purely
based on secondary data and tries to study the different strategies of Maruti Suzuki, its
vast network of dealers and service centres which provides proper after sale service
and is able to maintain good relationship with customer which is their strongest point.

Chanchal Pal Chauhan, ET Bureau Feb 1, 2013-Maruti Suzuki aims to become

India's largest exporter of passenger cars. NEW DELHI: Maruti Suzuki, India's largest
carmaker, is scripting a strategy to pole-vault itself to become India's largest exporter
of passenger cars, by building a base for manufacturing 3-million cars in five years
that includes at least 10 new vehicles across segments, including the light commercial
segment. To implement this ambitious target from ground-up in India, the Japanese
parent is slated to put in place a high-level management team that would monitor the
progress of the new endeavor.

Awasthi & Tanuka, 13-Jul-2012 had made a study on FINANCIAL ANALYSIS OF

MARUTI SUZUKI INDIA LTD & COMPARATIVE STUDY WITH TATA
MOTORS AND HYUNDAI MOTORS.
The Indian automobile industry has an enormous opportunity for creating new wealth
by delivering value to the world and by delivering value to the domestic user. Today
the Indian automobile industry employs half a million people in the organised sector
and about ten million people in the unorganised sector. To my mind, the potential is
several times this number. The Indian automobile component industry is emerging as
a world-class outsourcing destination for global auto majors. Outsourcing is now
extending to demanding components like the gearbox.
Gunjan Malhotra and Soumyadeep Sinharay, 2010 researched on Maruti Suzuki –
Reigning Emperor of Indian Automobile Industry. It was first week of June 2010. Mr
Shinzo Nakanishi, MD & CEO of Maruti Suzuki India Limited (MSIL) was in a very
nice mood, particularly because of MSIL‘s performance in last calendar month. For
the first time in history, MSIL has sold over one lakh units in a month in May 2010.
Sitting in his suite, he was wondering how this company has come up its ages in
Indian environment.

Sai Prasanna Ragu & R. muthukumar, April 2009 made a study on Maruti Udyog
Ltd to Maruti Suzuki Ltd.:25 Years of Corporate Transformation. The case study
outlines the transformation of Maruti Suzuki India Private Ltd. (Maruti) from a state-
owned company to a dominant market player (with protectionism all around) and also
to an effective competitor (in the era of increased and intensified competition from
domestic and foreign players). The case study also highlights Maruti‘s strategies to
counter intensified competition and external conditions like global economic
recession, the resultant credit crunch and its impact on sales volume.

Gupta, Chakraborty IBS Centre for Management Research (2009)

This case examines the competitive strategies of Maruti Suzuki India Limited; a
subsidiary of Japan based Suzuki Motor Corporation, the market leader in the Indian
passenger car industry. After the liberalisation of the Indian economy in 1991, several
foreign players had entered the Indian passenger car market. Maruti started losing
market share. The company focused on upgrading manufacturing, increasing capacity,
launching new products at regular intervals so as to cater to all the segments of the
Indian passenger car market and venturing into other related businesses like car
finance, insurance and buying and selling used Maruti cars.

Peyton, R.M. (2003) in their working paper submitted at the Allied Academies
International Conference presented a comprehensive review of the literature on
various Customer Satisfaction and Dissatisfaction (CS/D) theories proposed. The
literatures are specifically prior to the 1990s. This review focuses on the major
components of the decision-making process, also addresses the measurement-related
issues relevant to this body of literature.

Willard Hom (2000) presents two broadly classified customer satisfaction models
viz. Macro-models, which place the customer satisfaction among a set of related
constructs in marketing research and Micro-models, which theorize the elements of
customer satisfaction. The paper also gives various models of customer satisfaction
from the perspective of the marketing research discipline.
Vavra, T.G. (1997) in his book suggests specific programmes to improve the
measurement of customer satisfaction in an organization. The author describes five
critical skills required for this taskviz.sampling /customer-participant selection,
questionnaire design, interviewing /survey administration, data analysis, and quality
function deployment-building action plans.

J K Satia & PS Thomas in July 1989 has made a study on Maruti Udyog ltd- Maruti
Udyog Ltd was set up in 1980 by the government to produce automobiles. By
collaborating with Suzuki Motor Company in 1982, it was hoped that the famed
Japanese style of management would catalyse the small and backward car industry
and some of the others which was linked. Maruti got off to an excellent start by public
sector standards. However, by 1985, fiscal, balance of payment, and technology
transfer problems began to surface. Its current order books winding sign by 1990,
questions arise as to MUL‘s mission, its product-market strategies, its pricing policy,
and the value of Japanese participation.
Rationale Of study

This Study is confined to the Customers of Maruti Suzuki car to find out the
customers preferences and their needs expected from the business owners. This study
is helpful in analysing the satisfaction level of the customers and to know the factors
that influence the customers to buy the product. This study is important to know the
necessary changes in product features and customer’s feeling about the product. This
study is useful for the company to make necessary changes in Price, Design, and
Application etc.
OBJECTIVES OF STUDY

 To find the service Quality level of maruti service ltd.

 To find the Customer satisfaction level of Maruti service ltd.
 To find the market share of MSIL and its competitors.
 To determine the key areas of strengths and weaknesses of maruti services.
 To study the Consumer behavior regarding maruti services
RESEARCH METHODOLOGY

Sampling Design

Survey: A survey is a fact finding study of analysis in scientific and orderly form for
defined purpose of a given situation or a problem when a study is undertaken due to
consideration of time and cost almost invariably lead to a selection of respondent i.e.
selection of only a few items. The selected respondents constitute what is technically
called a ‘sample’ and the selection process is called ‘sampling technique’ the survey
so conducted is known as ‘sample survey’.

Steps in Sampling Design

1. Universe
The MUL, Indore & Pithampur is selected for the study because it is a well-
established organization with a total number of consumers.

2. Source List

A list which contains the name of all the consumers at this level in related departments
will be prepared.

3. Sample Size

The number of managers at this level is 30 in production, 10 in finance, 30 in

marketing, 16 in HR, due to shortage of time instead of contacting each and every
worker a representative sample of 20 from production and 20 from marketing at
random.

4. Sampling Procedure

Probability Sampling: It is also known as random sampling. A list of all the

consumers related to these two departments will be prepared. All the names will be
written on chits and at random 50 chits shall be selected. The names of the consumers,
which will be shown on the chits, will be selected as units of sample.
In this way sample of 40 consumers will be drawn. This random sampling technique
ensures the law of statistical regularity, which states that if on an average the sample
will have the same compositions, characteristics as the universe.
Methods of Data Collection

The data required for the survey will be made available from various sources such as:

 Primary Source is the data which is collected first hand. This shall be collected
through direct communication with consumers.
 Secondary Source is the data which is already available. This shall be collected
through printed material files and annual reports of the company.
BIBLOGRAPHY

www.marutisuzuki.com
www.carwale.com
www.gaadi.com
www.cartrade.com
www.studymode.com
www.scribd.com
www.wikipedia.com
www.jdpower.com
www.motorbeam.com
www.theautomotive.com