“CUSTOMER PERCEPTION AND SATISFACTION

LEVEL REGARDING

MARUTI SUZUKI AFTER SALES SERVICES “

Submitted to:

G.N.D. Engineering College, Ludhiana

In the partial fulfillment of the requirement for the award of Degree of

Masters of Business Administration (M.B.A)

Session (2007-2009)

Project guide: Submitted

by :

Mr. Parampal Singh

.

ACKNOWLEGEMENT

I take the opportunity to present my vote of thanks to all guidepost that really acted as

lighting pillars to enlighten my way throughout this project. This project work would not

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Parveen VirdiClass M.B.A.Roll no. 725Registration no.7014220522

have been possible without the kind assistance and guidance of many persons who indeed

were helpful, cooperative and kind during the entire course of my project. I express my

heartfelt appreciation for all those concerned.

I would like to start from scratch i.e. my heartiest thanks to all my guides; who guided

me throughout this project and who enlighten my pathway towards the completion of this

project and showed full interest at each and every step of this project.

I also want to pay my thanks to all respondents who provided me useful information that

I required for my project.

The words at my command are very less to render my gratitude to all, which helped me.

First of all I would like to thank my project guide Mr. PARAMPAL SINGH who

kindled my path towards the completion of the project

It is with gratitude that I acknowledge my sincere feeling of indebtedness to Mr.

PARAMPAL SINGH for providing me with the valuable knowledge during the course

of training. Without his immaculate supervision, sustained efforts, friendly approach, it

would have been difficult for me to accomplish the results in such a short span of time.

He made his experience informative & rewarding.

CONTEXT

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INTRODUCTION ABOUT THE MARUTI SUZUKI COMPANY

REVIEW OF LITERATURE

OBJECTIVES OF THE PROJECT

RESEARCH METHODOLOGY

TOOLS AND INTERPRETATION

FINDINGS

LIMITATIONS

SUGGESTION

CONCLUSION

ANNESURE

BIBLIOGRAPHY

INTRODUCTION

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an

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efficient public transport system. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was preferred for the joint venture because of its track record in manufacturing and selling small cars all over the world. There was an option in the agreement to raise Suzuki’s equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government organization managed on the lines of Japanese management practices.

Maruti created history by going into production in a record 13 months. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million vehicles by May 2005. Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception till 2000-01. In 2000-01, although Maruti generated operating profits on an income of Rs 92.5 billion, high depreciation on new model launches resulted in a book loss.

COMPANY HISTORY AND BACKGROUND

The Evolution

Maruti’s history of evolution can be examined in four phases: two phases during pre-liberalization period (1983-86, 1986-1992) and two phases during post-liberalization period (1992-97, 1997-2002), followed by the full privatization of Maruti in June 2003 with the launch of an initial public offering (IPO).The first phase started when Maruti rolled out its first car in December 1983. During the initial years Maruti had 883 employees, a capital of Rs. 607 mn and profit of Rs. 17 mn without any tax obligation. From such a modest start the company in just about a decade (beginning of second phase in 1992) had turned itself into an automobile giant capturing about 80% of the market share in India. Employees grew to 2000 (end of first phase 1986), 3900 (end of second phase 1992) and 5700 in 1999. The profit after tax increased from Rs 18.67 mn in 1984 to Rs. 6854.54 mn in 1998 but started declining during 1997-2001.

During the pre-liberalization period (1983-1992) a major source of Maruti’s strength was the wholehearted willingness of the Government of India to subscribe to Suzuki’s technology and the principles and practices of Japanese management. Large number of Indian managers, supervisors and workers were regularly sent to the Suzuki plants in Japan for training. Batches of Japanese personnel came over to Maruti to train, supervise and manage. Maruti’s style of management was essentially to follow Japanese management practices.

The Path to Success for Maruti was as follows:

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(a) teamwork and recognition that each employee’s future growth and prosperity is totally dependent on the company’s growth and prosperity (b) strict work discipline for individuals and the organization (c) constant efforts to increase the productivity of labor and capital (d) steady improvements in quality and reduction in costs (e) customer orientation (f) long-term objectives and policies with the confidence to realize the goals (g) respect of law, ethics and human beings. The “path to success” translated into practices that Maruti’s culture approximated from the Japanese management practices.

Maruti adopted the norm of wearing a uniform of the same color and quality of the fabric for all its employees thus giving an identity. All the employees ate in the same canteen. They commuted in the same buses without any discrimination in seating arrangements. Employees reported early in shifts so that there were no time loss in-between shifts. Attendance approximated around 94-95%. The plant had an open office system and practiced on-the-job training, quality circles, kaizen activities, and teamwork and job- rotation. Near-total transparency was introduced in the decision making process. There were laid-down norms, principles and procedures for group decision making. These practices were unheard of in other Indian organizations but they worked well in Maruti. During the pre- liberalization period the focus was solely on production. Employees were handsomely rewarded with increasing bonus as Maruti produced more and sold more in a seller’s market commanding an almost monopoly situation.

INDUSTRY ANALYSIS

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GLOBAL FOUR WHEELER INDUSTRY

Evolution

The automobile industry has undergone significant changes since Henry Ford first introduced the assembly line technique for the mass production of cars. Production concepts, processes and the associated technologies have changed dramatically since the first cars were built. Some 70 years ago, car assembly was primarily manual work. Today, the process of car assembly is almost fully automated. In the old days, firms attached importance to the production of virtually every part in a single plant, while today, carmakers concentrate on only a few specific production stages (i.e. car assembly). Parts and module production, services and related activities have been shifted to other, specialized firms (outsourcing of production steps).Since the 1980s, it has become clear that further productivity gains to retain competitiveness can be possible only by outsourcing and securing greater flexibility. For example, firms, especially small car producers whose markets have been threatened by imports, have diversified their production programmers (e.g. by building off-road cars or convertibles) thereby introducing greater flexibility in the production process. Also, firms and their production have become more internationalized in lieu of outsourcing.

Current Scenario

The global passenger car industry has been facing the problem of excess capacity for quite some time now. For the year 2002, the global capacity in the automotive industry was 75 million units a year, against production of only 56 million units (excess capacity estimated at 25%). Efforts to shore up capacity utilization have prompted severe price competition, thus affecting margins and forcing fundamental changes in the industry. The pressure on sales and margins is driving players to emerging markets in pursuit of better growth opportunities and/or access to low-cost manufacturing bases.

• The concept of selling in the passenger car industry is changing from original sales towards lifecycle value generation, encompassing financing, repairs & maintenance, cleaning, provision of accessories, and so on.

• Vehicle manufacturers are moving into completely new materials and technologies—partly guided by environmental legislation—in striving to come up with radically different products. Some of these new technologies involve parts that can be bolted on to an existing vehicle with relatively few implications for the rest of the vehicle. Others are much more fundamental, and are likely to have a profound impact throughout the supply chain. The examples include battery, electric or hybrid power trains, and alternatives to the all-steel body. Carmakers are increasingly outsourcing component production, and focusing on product design, brand management and consumer care, in contrast to the traditional emphasis on manufacturing and engineering.

• The increasing need to attain global scales underscores the importance of platform sharing among carmakers. All original equipment manufacturers (OEMs) are trying to reduce the number of vehicle platforms, but raise the number of models produced from

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each platform. This means producing a number of seemingly distinct models from a common platform.

• As in manufacturing, distribution in the automobile industry is undergoing significant changes, involving Internet use, retailer consolidation, and unbundling of services provided by retailers.

INDIAN FOUR WHEELER INDUSTRY

Evolution

The Indian automobile industry developed within the broader context of import substitution during the 1950s. The distinctive feature of the automobile industry in India was that in line with the overall policy of State intervention in the economy, vehicle production was closely regulated by an industrial licensing system till the early 1980s that controlled output, models and prices. The cars were built mostly by two companies, Premier Automobiles Limited and HM. However, the Indian market got transformed after 1983 following the relaxation of the licensing policy and the entry of MUL into the car market. In 1991, car imports were insignificant, while component imports were equivalent to 20% of the domestic production, largely because of the continuing import of parts by MUL. The liberalization of the Indian automotive industry that began in the early 1990s was directed at dismantling the system of controls over investment and production, rather than at promoting foreign trade. Multinational companies were allowed to invest in the assembly sector for the first time, and car production was no longer constrained by the licensing system. However, QRs on built-up vehicles remained and foreign assemblers were obliged to meet local content requirements even as export targets were agreed with the Government to maintain foreign exchange neutrality. The new policy regime and large potential demand led to inflows of foreign direct investment (FDI) by the mid-1990s. By the end of 1997, Daewoo, Ford India, GM, DaimlerChrysler and Peugeot had started assembly operations in India. They were followed by Honda, HMIL, and Mitsubishi.

Current Scenario

Major Players

Bajaj Tempo Limited, DaimlerChrysler India Private Limited, Fiat India Automotive Private Limited, Ford India Limited, General Motors India Limited, Hindustan Motors Limited, Honda Siel Cars India Limited, Hyundai Motor India Limited, Mahindra & Mahindra Limited, Maruti Udyog Limited, Skoda Auto India Limited, Tata Motors Limited, Toyota Kirloskar Motors Limited.

Current scenario in Passenger Car Category

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The dominant basis of competition in the Indian passenger car industry has changed from price to price-value, especially in the passenger car segment. While the Indian market remains price sensitive, the stranglehold of Economy models has been slackening, giving way to higher-priced products that better meet customer needs. Additionally, a dominant trend in the Indian passenger car segment is the increasing fragmentation of the market into sub-segments, reflecting the increasing sophistication of the Indian consumer. With the launch of new models from FY2000 onwards, the market for MUVs has been redefined in India, especially at the upper-end. Currently, the higher-end MUVs, commonly known as Sports Utility Vehicles (SUVs), occupy a niche in the urban market, having successfully shaken off the tag of commercial vehicles attached to all MUVs till recently. Domestic car manufacturers are now venturing into areas such as car financing, leasing and fleet management, and used-car reconditioning/sales, to complement their mainstay-business of selling new cars.

COMPETITIVE FORCES IN INDIAN PASSENGER CAR MARKET

Critical Issues and Future Trends

The critical issue facing the Indian passenger car industry is the attainment of break-even volumes. This is related to the quantum of investments made by the players in capacity creation and the selling price of the car. The amount of investment in capacities by passenger car manufacturers in turn depends on the production

Threat from the new players: Increasing

· Most of the major global players are present in the Indian market; few more are expected to enter.

· Financial strength assumes importance as high are required for building capacity and maintaining adequacy of working capital.

Access to distribution network is important.

Lower tariffs in post WTO may expose Indian companies to threat of imports.

Rivalry within the industry: High

· There is keen competition in select segments. (compact and mid size segments).

· New multinational players may enter the market.

Market strength of suppliers: Low

A large number of automotive components suppliers.

Automotive players are rationalizing their vendor base to achieve consistency in quality.

Market strength of consumers: Increasing

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· Increased awareness among consumers has increased expectations. Thus the ability to innovate is critical.

· Product differentiation via new features, improved performance and after-sales support is critical.

· Increased competitive intensity has limited the pricing power of manufacturers.

Threat from substitutes: Low to medium

With consumer preferences changing, inter product substitution is taking place (Mini cars are being replaced by compact or mid sized cars).Setting up integrated manufacturing facilities may require higher capital investments than establishing assembly facilities for semi knocked down kits or complete knocked down kits. In recent years, even though the ratio of sales to capacity (an important indicator of the ability to reach break-even volumes) of the domestic car manufacturers have improved, it is still low for quite a few car manufacturers in India. India is also likely to increasingly serve as the sourcing base for global automotive companies, and automotive exports are likely to gain increasing importance over the medium term. However, the growth rates are likely to vary across segments. Although the Mini segment is expected to sustain volumes, it is likely to continue losing market share; growth in the medium term is expected to be led largely by the Compact and Mid-range segments. Additionally, in terms of engine capacity, the Indian passenger car market is moving towards cars of higher capacity. This apart, competition is likely to intensify in the SUV segment in India following the launch of new models at competitive prices.

COMPETITOR ANALYSIS

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HYUNDAI MOTOR INDIA LIMITED

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets over 25 variants of passenger cars in six segments. The Santro in the B segment, and Getz in the B+ segment.

HYUNDAI SANTRO

We are mainly going to concentrate on the various marketing and positioning strategies of Hyundai Santro as against that of Maruti Zen and Alto and Hyundai Getz as against Maruti Swift.

POSITIONING OF SANTRO

The old positioning of the Santro was that pf a ‘family car’, this positioning strategy was changed in around 2002 and Santro was repositioned as to that of ‘a smart car for young people.’ The target age group for the car had now shifted from 30-35 years to 25-30 years. The repositioning followed the face-lifts the car has been getting from time to time in the form of engine up gradation, new power steering, automatic transmission, etc, to keep the excitement around it alive in the highly competitive small car market. The repositioning also comes ahead of the possible launch of a new design Santro, and the super B-segment car ‘Getz’, sometime in 2003.

The Santro was given a fresh new positioning — from a ‘complete family car’ to a ‘sunshine car’ denoting a fresh new attitude and a ‘changing your life’ positioning. As the average age of a car owner has declined from around 30-35 three years ago to 25-30, primarily because of changing lifestyles, cheap and easily available finance, etc. the company thought that instead of promoting the Santro as a family car, it should be promoted as a car that can change the life of a young person since many of the buyers were young buyers.

HYUNDAI’S PRICING STRATEGY

With the launch of Maruti Swift recently a price war was expected to kick in . Immediately after maruti raised prices on its debutante Hyundai Motor India hit back with a Rs 16,000-19,000 markdown on three new variants of Santro Xing.

The company has introduced the XK and XL variants at a lower tag of Rs 3, 26,999 and Rs .3, 45,999 respectively. The new price variants are likely to give Maruti’s existing B-segment models, Zen and WagonR a run for their money. Hyundai has also launched a new non-AC variant of the Santro at Rs 2.79 lakh, a tad higher than what the existing non-Ac Santro costs. The next offensive is due from Maruti. With the Santro’s new price positioning, Zen and particularly WagonR may be due for a correction, or at least a limited-period subvention. If that happens the domino effect will kick in across the B-segment.

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Hyundai is positioning its new variants on the tech platform. Strapped with 1.1 liter engine with eRLX Active Intelligence technology, the new variants also come with new color-coordinated interiors, a new front grill and a 4-speed AC blower that makes the air conditioning more efficient.

TATA MOTORS

Established in 1945, Tata Motors is India's largest and only fully integrated automobile company. Tata Motors began manufacturing commercial vehicles in 1954 with a 15-year collaboration agreement with Daimler Benz of Germany.

TATA INDICA – Tata motors flagship brand

The company's passenger car range comprises the hatchback Indica, the Indigo sedan and the Marina, its station wagon variant, in petrol and diesel versions. The Tata Indica, India's first indigenously designed and manufactured car, was launched by Tata Motors in 1999 as part of its ongoing effort towards giving India transport solutions that were designed for Indian conditions. Currently, the company's passenger cars and multi-utility vehicles have a 16-per cent market share.

POSITIONING OF INDICA

Tata has positioned Indica as `more car per car'. The new car offers more space, more style, more power and more options. Emphasizing the delivery of world class quality. They have tried to redefine the small car market as it has been understood in India. True to its "More car per car" positioning, the Indica CNG offers all the core benefits of the Indica combined with the advantage of CNG. One of the most popular advertisements on television currently, is the one where the guy portrayed as the ‘loveable liar’, gets socked every time he lies ; but not when he speaks about the Indica thus implying- “ must be true”. Elaborating on the campaign, the new ad was launched with the intention of giving the Indica V2 brand a touch of youthfulness.

TATA’S PRICING STRATEGY

After the price war is being triggered off by Hyundai being the first company to introduce what came to be known as, pricing based on customer's value perceptions, all others followed suit. Telco’s Indica came in the range of Rs 2.56 lakh to Rs 3.88 lakh with 4 models. The price-points in the car market were replaced by price-bands. The width of a price-band was a function of the size of the segment being targeted besides the intensity of competition. The thumb rule being 'the higher the intensity, the wider the price-band.'

KEY STRATEGIC INITIATIVES BY MARUTI

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A) TURNAROUND STRATEGIES MARUTI FOLLOWED

Maruti was the undisputed leader in the automobile utility-car segment sector, controlling about 84% of the market till 1998. With increasing competition from local players like Telco, Hindustan Motors, Mahindra & Mahindra and foreign players like Daewoo, PAL, Toyota, Ford, Mitsubishi, GM, the whole auto industry structure in India has changed in the last seven years and resulted in the declining profits and market share for Maruti. At the same time the Indian government permitted foreign car producers to invest in the automobile sector and hold majority stakes.

In the wake of its diminishing profits and loss of market share, Maruti initiated strategic responses to cope with India’s liberalization process and began to redesign itself to face competition in the Indian market. Consultancy firms such as AT Kearney & McKinsey, together with an internationally reputed OD consultant, Dr. Athreya, have been consulted on modes of strategy and organization development during the redesign process. The redesign process saw Maruti complete a Rs. 4000 mn expansion project which increased the total production capacity to over 3,70,000 vehicles per annum. Maruti executed a plan to launch new models for different segments of the market. In its redesign plan, Maruti launches a new model every year, reduce production costs by achieving 85-90% indigenization for new models, revamp marketing by increasing the dealer network from 150 to 300 and focus on bulk institutional sales, bring down number of vendors and introduce competitive bidding. Together with the redesign plan, there has been a shift in business focus of Maruti. When Maruti commanded the largest market share, business focus was to “sell what we produce”. The earlier focus of the whole organization was "production, production and production" but now the focus has shifted to "marketing and customer focus". This can be observed from the changes in mission statement of the organization:

1984: "Fuel efficient vehicle with latest technology".

1987: "Leader in domestic market and be among global players in the overseas market".

1997: "Creating customer delight and shareholders wealth".

Focus on customer care has become a key element for Maruti. Increasing Maruti service stations with the scope of one Maruti service station every 25 km on a highway. To increase its market share, Maruti launched new car models, concentrated on marketing and institutional sales. Institutional sales, which currently contributes to 7-8% of Maruti’s total sales. Cost reduction and increasing operating efficiency were another redesign variable. Cost reduction is being achieved by reaching an indigenization level of 85-90 percent for all the models. This would save foreign currency and also stabilize prices that fluctuate with exchange rates. However, change in the mindset was not as fast as required by the market. Maruti planned to reduce costs, increase productivity, quality and upgrade its technology (Euro I&II, MPFI). In addition, it followed a high volume production of about 400,000 vehicles / year, which entailed a smooth relationship between the workers and the managers.

Post 1999, the market structure changed drastically. Just before this change, Maruti had wasted two crucial years (1996-1998) due to governmental interventions and negotiation with Suzuki of Japan about the break-up of the share holding pattern of the company. There was a change in leadership, Mr. Sato of Suzuki became the Chairman in June 1998,

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and the new Mr. Khatter was appointed as the new Joint MD. Khatter was a believer in consensus decision making and participative style of management. As a result of the internal turmoil and the changes in the external environment, Maruti faced a depleting market share, reducing profits, and increase in inventory levels, which it had not faced in the last 18 years.

After their fall in market share they redesigned their strategies and through their parent company Suzuki they learned a lot. The organizational learning of Maruti was moderately successful; the cost was relatively inexpensive as Maruti had its strong Japanese practices to fall back upon. With the program of organizational redesign, rationalization of cost and enhanced productivity, Maruti bounced back to competition with 50.8% market share and 40% rise in profit for the FY2002-2003.

B) CURRENT STRATEGIES FOLLOWED BY MUL

I. PRICING STRATEGY - CATERING TO ALL SEGMENTS

Maruti caters to all segments and has a product offering at all price points. It has a car priced at Rs.1, 87,000.00 which is the lowest offer on road. Maruti gets 70% business from repeat buyers who earlier had owned a Maruti car. Their pricing strategy is to provide an option to every customer looking for up gradation in his car. Their sole motive of having so many product offering is to be in the consideration set of every passenger car customer in India. Here is how every price point is covered.

II. OFFERING ONE STOP SHOP TO CUSTOMERS OR CREATING DIFFERENT REVENUE STREAMS

Maruti has successfully developed different revenue streams without making huge investments in the form of MDS, N2N, Maruti Insurance and Maruti Finance. These help them in making the customer experience hassle free and helps building customer satisfaction.

Maruti Finance: In a market where more than 80% of cars are financed, Maruti has strategically entered into this and has successfully created a revenue stream for Maruti. This has been found to be a major driver in converting a Maruti car sale in certain cases. Finance is one of the major decision drivers in car purchase. Maruti has tied up with 8 finance companies to form a consortium. This consortium comprises Citicorp Maruti, Maruti Countrywide, ICICI Bank, HDFC Bank, Kotak Mahindra, Sundaram Finance, Bank of Punjab and IndusInd Bank Ltd.( erstwhile-Ashok Leyland Finance).

Maruti Insurance: Insurance being a major concern of car owners. Maruti has brought all car insurance needs under one roof. Maruti has tied up with National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram to bring this service for its customers. From identifying the most suitable car coverage to virtually hassle-free claim assistance it's your dealer who takes care of everything. Maruti Insurance is a hassle-free way for customers to have their cars repaired and claims processed at any Maruti dealer workshop in India.

True Value – Initiative to capture used car market

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Another significant development is MUL's entry into the used car market in 2001, allowing customers to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car, by paying the difference. They are offered loyalty discounts in return. This helps them retain the customer. With Maruti True Value customer has a trusted name to entrust in a highly unorganized market and where cheating is rampant and the biggest concern in biggest driver of sale is trust. Maruti knows its strength in Indian market and has filled this gap of providing trust in Indian used car market. Maruti has created a system where dealers pick up used cars, recondition them, give them a fresh warranty, and sell them again. All investments for True Value are made by dealers. Maruti has build up a strong network of 172 showrooms across the nation. The used car market has a huge potential in India. The used car market in developed markets was 2-3 times as large as the new car market.

N2N: Car maintenance is a time-consuming process, especially if you own a fleet. Maruti’s N2N Fleet Management Solutions for companies, takes care of the A-Z of automobile problems. Services include end-to-end backups/solutions across the vehicle’s life: Leasing, Maintenance, Convenience services and Remarketing.

Maruti Driving School (MDS): Maruti has established this with the goal to capture the market where there is inhibition in buying cars due to inability to drive the car. This brings that customer to Maruti showroom and Maruti ends up creating a customer.

III. REPOSITIONING OF MARUTI PRODUCTS

Whenever a brand has grown old or its sales start dipping Maruti makes some facelifts in the models. Other changes have been made from time to time based on market responses or consumer feedbacks or the competitor moves. Here are the certain changes observed in different models of Maruti.

Omni has been given a major facelift in terms of interiors and exteriors two months back. A new variant called Omni Cargo, which has been positioned as a vehicle for transporting cargo and meant for small traders. It has received a very good response from market. A variant with LPG is receiving a very good response from customers who look for low cost of running.

Versa prices have been slashed and right now the lowest variant starts at 3.3 lacs. They decreased the engine power from 1600cc to 1300cc and modified it again considering consumers perception. This was a result of intensive survey done all across the nation regarding the consumer perception of Versa.

Esteem has gone through three facelifts. A new look last year has helped boost up the waning sales of Esteem.

Baleno was launched in 1999 at 7.2 lacs. In 2002 they slashed prices to 6.4 lacs. In 2003 they launched a lower variant as Baleno LXi at 5.46 lacs. This was to reduce the price and attract customers.

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Wagon-R was perceived as dull boxy car when it was launched. This made it a big failure on launch. Then further modifications in engine to increase performance and a facelift in the form of sporty looking grills on the roof. Now it’s of the most successful models in Maruti stable.

Zen has been modified four times till date. They had come up with a limited period variant called Zen Classic. That was limited period offer to boost short term sales.

Maruti 800 has so far been face lifted two times. Once it came with MPFi technology and other time it came up with changes in front grill, head light, rear lights and with round curves all around.

IV. CUSTOMER CENTRIC APPROACH

Maruti’s customer centricity is very much exemplified by the five times consecutive wins at J D Power CSI Awards. Focus on customer satisfaction is what Maruti lives with. Maruti has successfully shed off the public- sector laid back attitude image and has inculcated the customer-friendly approach in its organization culture. The customer centric attitude is imbibed in its employees. Maruti dealers and employees are answerable to even a single customer complain. There are instances of cancellation of dealerships based on customer feedback.

Maruti has taken a number of initiatives to serve customer well. They have even changed their showroom layout so that customer has to walk minimum in the showroom and there are norms for service times and delivery of vehicles. The Dealer Sales Executive, who is the first interaction medium with the Maruti customer when the customer walks in Maruti showroom, is trained on greeting etiquettes. Maruti has proper customer complain handling cell under the CRM department. The Maruti call center is another effort which brings Maruti closer to its customer. Their Market Research department remains on its toes to study the changing consumer behavior and market needs. Maruti enjoys seventy percent repeat buyers which further bolsters their claim of being customer friendly. Maruti is investing a lot of money and effort in building customer loyalty programmes.

V. COMMITTED TO MOTORIZING INDIA

Maruti is committed to motorizing India. Maruti is right now working towards making things simple for Indian consumers to upgrade from two-wheelers to the car. Towards this end, Maruti partnerships with State Bank of India and its Associate Banks took organized finance to small towns to enable people to buy Maruti cars. Rs. 2599 scheme was one of the outcomes of this effort.

Maruti expects the compact cars, which currently constitute around 80% of the market, to be the engine of growth in the future. Robust economic growth, favorable regulatory framework, affordable finance and improvements in infrastructure favor growth of the passenger vehicles segment. The low penetration levels at 7 per thousand and rising income levels will augur well for the auto industry.

Maruti is busy fine-tuning another innovation. While researching they found that rural people had strange notions about a car that the EMI (equated monthly installments)

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would range between Rs 4,000 and Rs 5,000. That, plus another R 1,500-2,000 for monthly maintenance, another Rs 1,000 for fuel (would be the cost of using the car). To counter that apprehension, the company is working on a novel idea. Control over the fuel bill is in the consumer's hands. But, maintenance need not be. Says Khattar: "What the company is doing now is saying how much you spend on fuel is in your hands anyway. As far as the maintenance cost is concerned, if you want it that way, we will charge a little extra in the EMI and offer free maintenance."

VI. DISINVESTMENT AND IPO OF MARUTI UDYOG LIMITED

It was a long and tough journey, but a rewarding one at the end. A reward worth Rs 2,424 crore, making it the biggest privatization in India till date. The size of Maruti’s sell- off deal is proof of its success. On the investment of Rs 66 crore it made in 1982, when Maruti Udyog Limited (MUL) was formally set up, the sale represents a staggering return of 35 times The best part of the deal is the Rs 1,000 crore control premium the Government has been able to extract from Suzuki Motor Corporation for relinquishing its hold over India’s largest car company. Now looking at the strategy point of it – for Suzuki, of course, complete control of MUL means a lot. Maruti is its most profitable and the largest car company outside Japan. Suzuki will now be in the driver’s seat and will not have to mind the whims and fancies of ministers and bureaucrats. “Decisions will now become quicker. The response to changing market conditions and technological needs will be faster,” says Jagdish Khattar, managing director, MUL. After the disinvestment Suzuki became the decision maker at MUL. They flowed fund in India for the major revamp in MUL. Quoting from the report that appeared in The Economic Times, 4th April 2005, -

The Indian car giant Maruti Udyog Limited has finalized its two mega investment plans — a new car plant and an engine and transmission manufacturing plant. Both the projects will be implemented by two different companies. At its meeting the company's board approved a total investment of Rs3, 271.9 crore for these two ventures, which will be located in Haryana.

The above signifies when GOI was a major stakeholder in the MUL strategies which lead to investment have had a bureaucracy factor in it but after the disinvestment strategy followed is a TOP DOWN approach with a fast implementation.

Suzuki's proposed two-wheeler facility in India would start making motorcycles and scooters by the end of 2005 through a joint venture, in which Maruti has 51 per cent stake. The two-wheeler unit will have a capacity of 250,000 units a year.

The disinvestment followed by IPO gives the insight in the fact that now all the strategic decisions are taken by Maruti Suzuki Corporation. Disinvestment had helped by removing the red tape and bureaucracy factor from its strategic decision making process.

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VII. REALISATION OF IMPORTANCE OF VEHICLE MAINTENANCE SERVICES MARKET

In the old days, the company's operations could be boiled down to a simple three-box flowchart. Components came from the 'vendors' to the 'factory' where they were assembled and then sent out to the 'dealers'. In this scheme, you know where the company's revenues come from. The new scheme is more complicated. It revolves around the total lifetime value of a car.

Work on this began in 1999, when a MUL team, wondering about new revenue streams, traveled across the world. Says R.S. Kalsi, general manager (new business), MUL: "While car companies were moving from products to services, trying to capture more of the total lifetime value of a car, MUL was just making and selling cars." If a buyer spends Rs 100 on a car during its entire life, one-third of that is spent on its purchase. Another third went into fuel. And the final third went into maintenance. Earlier, Maruti was getting only the first one-third of the overall stream. As the Indian market matured, customers began to change cars faster. Says Kalsi: "So the question was, if a car is going to see three users in, say, a life span of 10 years, how can I make sure that it comes back to me each time it changes hands ? So Maruti has changed gears to take a big share of this final one-third spent on maintenance. Maintenance market has a huge market potential. Even after having fifty lakh vehicles on road Maruti is only catering to approximately 20000 vehicles through its service stations everyday.

For this they are conducting free service workshops to encourage consumers to come to their service stations. Maruti has increased its authorized service stations to 1567 across 1036 cities. Every regional office is having a separate services and maintenance department which look after the growth of this revenue stream.

VIII. PLAYING ON COST LEADERSHIP

Maruti is the price dictator in Indian automobile industry. It’s the low cost provider of car. The lowest car on road is from Maruti stable i.e. Maruti 800. Maruti achieves this through continuous improvements in operational efficiency and productivity.

The company has set itself (and its vendors) the target of a 50% improvement in productivity and a 30% reduction in costs in three years. The ability to keep lowering the prices sets Maruti apart from other players in the league. Maruti spread the overheads over a larger base.

The impressive sales and profits were the result of major efforts within the company. Maruti also increased focus on vendor management. Maruti consolidated its vendor base. This has provided its vendors with higher volumes and higher efficiencies. Maruti does that by working with vendors, assuring them that for every drop in price, volumes will go up. Maruti is now encouraging its vendors to develop R&D capability for specialized components. Based upon such activities, product competitiveness in the market will further increase.

Maruti also made strides in applying IT to manufacturing. A new Vehicle Tracking System improved efficiency on the shop floor and enhanced quality control.

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C) MAJOR FUTURE STRATEGIES

I. PHASING OUT ZEN IN 2007

The launch of Swift and phasing out Zen is a strategic move. Alto was launched keeping in mind that it will take over Maruti 800 market in future. Perhaps being the flagship product phasing out of Maruti 800 faced lots of resistance from dealers all over. Another reason behind not phasing out Maruti 800 was the fear of brand shift of customers to other competitor’s product. Swift was launched in May, 2005 in the price band starting from 4 lacs. Before launch of Swift Maruti management had decided that they will phase out Zen since it had already came up with two modifications. The major reason behind this decision was cannibalization of Wagon R and Swift due to overlapping of price band. It is a rational decision to kill a product before it starts facing the decline stage in product cycle. Maruti is offering Rs. 3000.00 more margins to dealer on the sale of Wagon-R as compared to Zen. This is to let dealer push Wagon R instead of Zen.

II. MARUTI PLANS FOR A BIG DIESEL FORAY

The new car manufacturing company, called Maruti Suzuki Automobiles India Limited, will be a joint venture between Maruti Udyog and Suzuki Motor Corporation holding a 70 per cent and 30 per cent stake respectively. The Rs1,524.2 crore plant will have a capacity to roll out 1 lakh cars per year with a capacity to scale up to 2.5 lakh units per annum. The new car manufacturing plant will begin commercial production by the end of 2006.

Maruti would set up a diesel engine plant at Gurgaon in line with its plan to become a major player in diesel vehicles in a couple of years. This has been done in the wake of major competition from Tata Indica and meets the growing demand of diesel cars in India. While the annual growth in the diesel segment was 13 per cent in the last three years, it was 19-20 per cent in the first quarter (April-June) of the current fiscal. Maruti has currently an insignificant presence in diesel vehicle. It will manufacture new generation CRDI (common rail direct injection) engines in collaboration with Fiat-GM Opel and engines will be of 1200 cc. The plant with a capacity to produce one lakh diesel engines would be operational in 2006. At present, Peugeot of France, supplies diesel engines for Maruti's Zen and mid-sized Esteem models. This will further reduce the imported component in Maruti vehicles, making them more competitive in the Indian market.

III. MARUTI PLANS FOR A NEW ENGINE AND TRANSMISSION PLANT

The engine and the transmission plant will be owned by Suzuki Powertrain India Limited in which Suzuki Motor Corporation would hold 51 per cent stake and Maruti Udyog holding the balance. The ultimate total plant capacity would be three lakh diesel engines. However, the initial production would be 1 lakh diesel engines, 20,000 petrol engines and 1.4 lakh transmission assemblies. Investment in this facility will be Rs.1,747.7 crore. The commercial production will start by the end of 2006.

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IV. INDIA AS EXPORT HUB FOR MARUTI

Three years back as an experiment, based on the increasing design capabilities of suppliers in countries like India, McKinsey did an exercise to figure out just how much money could be saved if automobiles were to be made in overseas locations like India, Mexico and South Africa -- an automobile BPO, so to speak. The result was staggering: the industry stands to gain $ 150 billion annually in cost savings, and an additional $ 170 billion annually in new revenues once demand shoots up following the drop in prices, and the combination of which means a 25 per cent increase in existing revenue levels.

According to the study, over 90 per cent of automobiles today are sold in the countries they are made in, so there's a lot of money to be made by shifting the production overseas. Till recently, just 100,000 cars produced in low-cost countries were exported to high-cost ones -- presumably this figure is going up now that Altos from Maruti, Santros from Hyundai, Indicas from Tata Motors, and Ikons from Ford, among others, are being regularly exported out of India.

Yet, as McKinsey points out, since it just costs $ 500 and just three weeks (and both figures are falling) to ship out a car to anywhere in the world, why produce cars in high-wage islands? If a car was produced in India instead of in Japan, the study says, it will cost 22-23 per cent less, after factoring in higher import duties for components/steel, lower levels of automation, and transport costs.

In August, 2003 Maruti crossed a milestone of exporting 300,000 vehicles since its first export in 1986. Europe is the largest destination of Maruti’s exports and coincidentally after the first commercial shipment of 480 units to Hungary in 1987, the 300,00 mark was crossed by the shipment of 571 units to the same country. The top ten destination of the cumulative exports have been Netherlands, Italy, Germany, Chile, U.K., Hungary, Nepal, Greece, France and Poland in that order.

The Alto, which meets the Euro-3 norms, has been very popular in Europe where a landmark 200,000 vehicle were exported till March 2003. Even in the highly developed and competitive markets of Netherlands, UK, Germany, France and Italy Maruti vehicles have made a mark. Though the main market for the Maruti vehicles is Europe, where it is selling over 70% of its exported quantity, it is exporting in over 70 countries.

Maruti has entered some unconventional markets like Angola, Benin, Djibouti, Ethiopia, Morocco, Uganda, Chile, Costa Rica and El Salvador. The Middle-East region has also opened up and is showing good potential for growth. Some markets in this region where Maruti is, are Saudi Arabia, Kuwait, Bahrain, Qatar and UAE.

The markets outside of Europe that have large quantities, in the current year, are Algeria, Saudi Arabia, Srilanka and Bangladesh. Maruti exported more than 51,000 vehicles in 2003-04 which was 59% higher than last year. In the financial year 2003-04 Maruti exports contributed to more than 10% of total Maruti sales.

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V. MARUTI EMERGING AS R&D HUB FOR SUZUKI MOTOR CORPORATION

Japanese auto major Suzuki is all set to convert Maruti Udyog Ltd. research and development (R&D) facility as its Asia hub by 2007 for the design and development of new compact cars, according to a top official of the firm. The country’s leading car manufacturer will make substantial investments to upgrade its research and development centre at Gurgaon in Haryana for executing design and development projects for Suzuki. This includes localization, modernization and greater use of composite technologies in upcoming models.

The company will be hiring more software engineers and technocrats to handle Suzuki’s R&D projects. Investment would be more in terms of manpower than in infrastructure, which is already in place. Apart from working on innovative features, the R&D teams will focus on latest technologies using CAD-CAM tools to roll out new models that will meet the needs of MUL’s diverse customers in the future.

The reasons as to why it can be good for R&D is that

Ø Firstly the cost involved in R&D and infrastructure is low in India as compared to other countries. Also the technical skills are abundantly available; again at a cheaper cost.

Ø Secondly, India is growing as an export hub along with the Indian market growing aggressively into becoming an attractive one for investors.

Ø Thirdly, Suzuki’s investment in India, is also important as it has completely divested now as a result MUL will now become a 100% subsidiary of Suzuki in the coming year.

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KEY SUCCESS FACTORS

(1)The Quality Advantage

Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid - size car segment across 9 parameters.

(2)A Buying Experience like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car.

(3)Quality Service across 1036 Cities

In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friend service and best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.

(4)One Stop Shop

At Maruti Suzuki, customers will find all car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs.

(5) The Low Cost Maintenance Advantage

The acquisition cost is unfortunately not the only cost customers face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.

(6)Lowest Cost of Ownership

The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni.

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(7) Technological Advantage

It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car.

FUTURE CHALLENGES

Maruti has always been identified as a traditional carmaker producing value-for-money cars and right now the biggest hurdle Maruti is facing is to shed this image. Maruti wants to change it for a more aggressive image. Maruti Baleno has failed due to one of the major reasons being that customers could not identify Maruti with a car as sophisticated as Maruti Baleno. Maruti is looking forward to bring about a perception change about the company and its cars. Maruti started the exercise with the new-look Zen, and Suzuki's decision to pick India as one of the first markets for this radically different-looking car gave this endeavor a new thrust. Maruti has also changed its logo at the front grill. It has replaced the traditional Maruti logo on grill ‘stylish ‘M’ with S’. The major thrust in the facelift endeavor is with the launch of 1.3 liter Swift. It’s a style statement from Maruti to Indian market.

The next threat Maruti faces is the growing competition in compact cars. Companies like Toyota, Ford, Honda and Fiat are planning to come out with small segment cars in near future. Ford is launching Focus and Fiesta, GM is launching Aveo in 2006, Chevrolet is launching Spark in 2006, Hyundai is launching its new compact car in 2006, Honda is launching Jazz in 2006, GM is has reduced prices of its Corsa, Fiat is coming up with Panda and new Fiat Palio, Skoda is launching Fabia. All this will pose a major threat to Maruti leadership in compact cars.

New emission norms like Bharat Stage 3 which has come into effect from April 2005 has increased car prices by Rs.20000 and Bharat Stage 4 which is coming into force in 2007 will contribute in increasing car prices further. This could be of concern to Maruti which is low cost provider of passenger cars.

Rise in petrol prices and growing popularity of other substitute fuels like CNG will be another threat to Maruti. There is also a threat to Suzuki from R&D investment by Toyota and Honda in Hybrid cars. Hybrid cars could run on both petrol and gaseous fuels.

There is a threat to Maruti models ageing. Maruti models like Maruti 800 which is in market for the last twenty years and others like Zen and Esteem which have also entered the decline phase are the other threats. Maruti is planning phasing out Zen in 2007 and there were rumors of phasing out Maruti 800 also. This all makes Suzuki to replace these brands with new launches.

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Maruti 800

Maruti 800 comes in two variants - Maruti 800 Standard and Maruti 800 AC / Deluxe. Maruti 800 is the most popular entry segment car in India. With the introduction of Maruti 800 in 1980s, Maruti Udyog Limited broke the hegemony of Ambassador and Fiat in the Indian car market. Maruti 800 has great fuel efficiency and very low maintenance cost. The small size and low turning radius of the car makes it easy to drive in the heavy traffic of the big cities. Maruti 800 comes with basic safety features such as collapsible steering columns, laminated windshields and high mount stop lamp.

TECHNICAL SPECIFICATIONS OF MARUTI 800

Dimensions

Overall length 3335 mm

Overall width 1440 mm

Overall height 1405 mm

Wheelbase 2175 mmMinimum turning radius 4.4 m

Ground clearance 170 mm

Seating Capacity 4 persons

Weight

Unladen weight 665 kg (AC BS III), 650 kg (Std. BS III)

Laden weight 1000 kg

Engine

Type 4 stroke cycle, water cooled SOHC (1C2V)

No. of cylinders 3

Piston displacement 796 cc

Maximum output (Std.,AC) 37 bhp at 5000 rpm

Maximum torque (Std.,AC) 59 Nm at 2500 rpm

Power Transmission

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Std., AC 4-forward, all synchromesh,1 reverse

Steering

Steering Rack & pinion

Suspension

Front McPherson strut & coil spring

Rear Coil spring with gas filled shock absorbers

Brakes

Front Disc

Rear Drum

Tyres

Tyre size (Radial) 145/70 R-12

Capacity

Fuel tank capacity 28 liters (BS III)

Maruti A Star

Maruti Suzuki India Limited, one of the leading automobile manufacturers in the country,

has launched its latest premium hatchback - A Star. The compact car was amongst the

most awaited models of the year and one of the last models to be launched in 2008. It is

being manufactured at the Manesar plant of the company, located in Gurgaon, Haryana.

The design of the car has been conceived as well as fully developed in India. The

introductory price of Maruti A-Star ranges between Rs. 3.47 lakh and Rs. 4.12 lakh. With

the launch of this model, in November 2008, the automaker has added the next-

generation K-series petrol engine to its product line. Maruti A Star comes equipped with the next generation KB-series petrol engine. The 998 cc K10B gasoline engine promises to deliver a power of 67 PS @ 6200 rpm, with a peak torque of 90 Nm @ 3500 rpm. Optimized combustion of the fuel facilitates better efficiency of the vehicle. The compact car promises to offer a mileage of 19.59 kmpl. It also boasts of state-of-the-art engineering technology, which combines performance and safety. The low center of gravity and wide track width of Maruti A-

Star facilitates excellent stability and good road handling

Design

The feature that sets Maruti A Star apart from the crowd is its aerodynamic design. The

exteriors of the car have been adorned with distinctive headlamps, stylish taillights and

unique front grille styling. The window aperture comes with stylized DLO. The interiors

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of this automobile get refreshed looks, with a sporty pop-up tachometer and crimson

illuminated instrument panel that add to the elegant appearance of the cabin. Air

conditioning system of the car, however, lacks automatic climate control. Five people can

enjoy a comfortable ride in it.

 

Safety Features

The advanced safety features of Maruti A Star ensure great protection for all its

occupants. The vehicle comes equipped with dual airbags for the driver and front seat

passenger, which reduce the impact of collision, thereby minimizing the risk of injury.

The Antilock Braking System (ABS) of the automobile prevents skidding and locking of

wheels when the car is driven on slippery roads. This ensures that the vehicle is on track

when the brakes are applied on wet surfaces and during emergencies.

 

Variants & Color

Maruti Suzuki offers LXi, VXi and ZXi variants of A-Star for the Indian consumers. All

the three variants are packed with regular features, including head light leveling, high

mounted stop lamp, child-proof rear-door locks, front wipers and washer with

intermittent. ABS with EBD (brake assist) is optional in the VXi variant. A lovely range

of colors is available for Maruti A Star, which includes Bright Red, Desert Brown,

Healing Green, Silky Silver, Paradise Blue, Midnight Black, Sunlight Copper, Arctic

White and Azure Grey

Technical Specifications

 

Overview  

Make Maruti

Model A Star

Body Type Hatchback

Number Of Doors 5

Seating Capacity 5 persons

Fuel Tank Capacity 35 liters

Dimensions  

Length 3500 mm

Width 1600 mm

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Height 1490 mm

Wheelbase 2360 mm

Front Track Width 1405 mm

Rear Track Width 1400 mm

Ground Clearance 170 mm

Minimum Turning Radius 4.5 m

Weight  

Kerb Weight 860-880 kg

Gross Vehicle Weight 1320 kg

Engine  

Type KB-Series

Number of Cylinders 3

Number of Valves 12

Displacement 998 cc

Transmission 5-speed, Manual

Max. Power 67 PS @ 6200 rpm

Max. Torque 90 Nm @ 3500 rpm

Suspension  

Front Suspension McPherson strut and coil spring

Rear Suspension Isolated trailing link and coil spring

Shock Absorbers Gas Filled

Brakes  

Front Ventilated Discs

Rear Drums

Steering Type Rack & Pinion, Power Assisted

Tyre Size 155/80R13

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AUTOMOBILE INDUSTRY IN INDIA

. Automobile Industry in India has witnessed a tremendous growth in recent years and is all set to carry on the momentum in the foreseeable future. Indian automobile industry has come a long way since the first car ran on the streets of Bombay in 1898. Today, automobile sector in India is one of the key sectors of the economy in terms of the employment. Directly and indirectly it employs more than 10 million people and if we add the number of people employed in the auto-component and auto ancillary industry then the number goes even higher

The automobile industry comprises of heavy vehicles (trucks, buses, tempos, tractors); passenger cars; and two-wheelers. Heavy vehicles section is dominated by Tata-Telco, Ashok Leyland, Eicher Motors, Mahindra and Mahindra, and Bajaj. The major car manufacturers in India are Hindustan Motors, Maruti Udyog, Fiat India Private Ltd., Ford India Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Hyundai Motors India Ltd., and Skoda India Private Ltd., Toyota Motors, Tata Motors etc. The dominant players in the two-wheeler sector are Hero Honda, Bajaj, TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., and Yamaha etc.

In the initial years after independence Indian automobile industry was plagued by unfavorable government policies. All it had to offer in the passenger car segment was a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. The automobile sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the 1991. Measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies played a vital role in turning around the Indian automobile industry. Until the mid 1990s, the Indian auto sector consisted of just a handful of local companies. However, after the sector opened to foreign direct investment in 1996, global majors moved in. Automobile industry in India also received an unintended boost from stringent government auto emission regulations over the past few years. This ensured that vehicles produced in India conformed to the standards of the developed world.

Indian automobile industry has matured in last few years and offers differentiated products for different segments of the society. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. In the recent years Indian automobile sector has witnessed a slew of investments. India is on every major global automobile player's radar. Indian automobile industry is also fast becoming

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an outsourcing hub for automobile companies worldwide, as indicated by the zooming automobile exports from the country. Today, Hyundai, Honda, Toyota, GM, Ford and Mitsubishi have set up their manufacturing bases in India. Due to rapid economic growth and higher disposable income it is believed that the success story of the Indian automobile industry is not going to end soon.

Some of the major characteristics of Indian automobile sector are: Second largest two-wheeler market in the world. Fourth largest commercial vehicle market in the world. 11th largest passenger car market in the world

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REVIEW OF LIETERATURE

According to a recent study by NFO Automotive in 2003:- Maruti models rank highest for Total Customer Satisfaction (TCS) in the small car petrol segments, while Honda leads the midsize and entry luxury vehicles. In the highly competitive SUV segment, Mahindra Scorpio overtakes Toyota Qualis for Total Customer Satisfaction honors.

The 2003 TCS is the largest automotive syndicated study in India with a total sample of 7,014 new-car buyers having up to three years of vehicle ownership. Analysis focuses on the performance of over 40 models in the key areas of sales satisfaction, product quality, vehicle performance and design, after-sales service, brand image, and cost-of-ownership. NFO Automotive is a specialty division within NFO World Group, one of the world’s leading providers of marketing research insight and counsel.

Rankings for the TCS study are conducted at the vehicle segment level to provide comparisons among similar groups of vehicles. The models leading their respective segments on the TCS index score are Maruti 800 (entry compact segment); Maruti Wagon-R (premium compact segment); Tata Indica Diesel (diesel small car segment); Hyundai Accent Petrol (entry midsize segment); Honda City (midsize segment); Ford Ikon Diesel (diesel midsize car segment); Skoda Octavia (premium midsize segment); Honda Accord (entry luxury segment); and Mahindra Scorpio (SUV segment). The TCS index score provides a measure of commitment a given model or brand enjoys with its customers.

“The industry average TCS score has improved by three index points from 2002,” said Rajeev Lochan, General Manager of NFO Automotive. “Our analysis reveals that manufacturers are meeting their customers’ expectations in regards to product quality and vehicle performance, but fall short in the areas of after-sales service and cost of ownership.” he added. The study finds that managing customer expectations become increasingly challenging as the length of vehicle ownership increases. Compared to an average TCS score of 88 for 1 to 6 months owners, the score for post-warranty customers drops by nine index points to 79.

“Honda and Maruti perform better than the industry in satisfying their customers throughout the ownership period with a relatively higher degree of consistency in both product quality and dealer service,” comments Lochan. “It is not surprising to find that Honda and Maruti models enjoy a relatively stronger customer commitment among post-warranty owners who are closer to their next vehicle purchase.”

The study revealed that new entrants in the marketplace have performed well in meeting customer expectations, especially Mahindra’s Scorpio. “The 2002 study identified performance and design as one of the hidden opportunities for the sport utility segment and Scorpio has performed extremely well on this parameter,” adds Lochan. “Scorpio owners are truly appreciative of their vehicle’s overall exterior styling, which is reflected in Scorpio’s industry-leading ratings on this parameter.”

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In addition to the customer evaluations on various aspects of their ownership experience, the TCS study also examines key trends in the industry. Some of the emerging trends are:

1. Increase in owners purchasing additional vehicles. Among owners who purchased a new car in 2003, over 30% bought it in addition to another vehicle. This represents a 10-percentage point increase compared to 1999 and suggests that multi-car households are increasing.

2. There is a growing preference among current small-car owners for a 4-door sedan, with over 50% indicating that they would purchase a sedan for their next vehicle. A majority of those preferring a sedan indicate a budget of Rupees 4.5 to 6.5 lacs.

“Both these trends are indicative of an upward mobility and a shift in the market composition,” observes Lochan. “While small cars would continue to dominate the Indian automotive market, we anticipate a faster growth in the lower-end of the midsize car segment provided manufacturers are able to offer models to meet the buyers’ price expectations.”

The TCS study was conducted from July through October 2003 across fourteen centers: Ahmedabad, Bangalore, Calcutta, Chandigarh, Chennai, Cochin, Coimbatore, Delhi (NCR), Hyderabad, Lucknow, Ludhiana, Mumbai, Pune, and Surat. The TCS study will be conducted on an annual basis to provide the industry with the most up-to-date information on customer satisfaction and loyalty issues in the marketplace.

NFO Automotive has launched its services in India with a long-term plan of providing actionable marketing information and counsel. NFO Automotive will be introducing a brand image & needs-segmentation study early next year.

17 April 2003:- If you read one report on motoring this year, make it this one. JD Power is the most comprehensive, most rigorous and highly respected customer satisfaction survey there is.

This is the second year What Car? has teamed up with JD Power to publish verdicts from you, the motoring public. For the 2003 Customer Satisfaction Index, JD Power contacted over 24,000 owners of cars registered between September 2000 and August 2001 (X- and Y-registered).

By the time that JD Power asked each customer for the low-down on their car, they'd owned it for around two years and driven, on average, 20,500 miles. That's an incredible 492 million miles of driving experience distilled over the next few pages.In other words, that's more than enough to form some strong opinions, both good and bad, about every aspect of a car. So we're able to bring you the owners' verdict on everything from reliability and dealer service to running costs and ride and handling.

This year's survey covers 138 individual models and the results are divided by category, but we've also given awards to the top overall performers.

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WESTLAKE VILLAGE, Calif., July 20,2004:- With a record-setting index score of 912,Lincoln ranks highest in satisfying its customers with dealer service, according to the J.D. Power and Associates 2004 Customer Satisfaction Index (CSI) Study(SM) released today. The previous industry record was 903, set by Lexus in 2001. This marks the first time in the study's 23-year history that Lincoln ranks highest in CSI.

The study measures customer satisfaction among new-vehicle owners with the dealer service department during the first three years of vehicle ownership, which typically represents the majority of the vehicle warranty period. Overall satisfaction is based on six service categories: initiating service, service advisor, in-dealership experience, service delivery, service quality, and user-friendly service.

Lincoln's top ranking is driven by a 17 index-point improvement over 2003. Lincoln's improvements come in areas that have a strong impact on customer satisfaction. Among maintenance customers, who make up two-thirds of its service business, Lincoln receives significantly improved ratings in "fairness of charges" and in the areas of service initiation and service delivery. In fact, 97 percent of customers say they got the appointment date they wanted, and customers gave strong ratings on the ease of getting in and out of the dealership.

"In addition to their subsidized maintenance program, Lincoln's CSI performance was also helped by improved vehicle quality. This has translated into a 14 percent decline in the volume of repairs needed, meaning that more of Lincoln's work is maintenance-only, which is easier from a customer satisfaction viewpoint," said Joe Ivers, executive director of quality/customer satisfaction at J.D. Power and Associates. "Ford's domestic brands -- Ford and Mercury -- also showed similar effects of improved quality performance, as did Land Rover"

The industry achieved widespread improvements in customer satisfaction, gaining 11 index points over 2003. Nearly one-half of brands improved at least 10 points. Equally impressive is the fact that seven brands receive a score of 900 or higher out of a potential 1,000 in 2004 -- a feat previously accomplished only by Lexus and Saturn. Following Lincoln (912) in the rankings are Buick (909), Infiniti (908), Cadillac (904), Lexus (902), Saturn (901) and Acura (900).

"Not only are a lot of brands improving by a significant margin, but also we're seeing improvements in the toughest and most important areas to customers," said Ivers. "Many brands are aggressively improving in fixing vehicles right the first time, which heavily affects customer satisfaction. By focusing on what customers want and expect when they bring their vehicles in for maintenance or repair, dealerships are reaping the rewards with a more satisfied client base and, ultimately, brand loyalty and advocacy."

The biggest index-score improvements in 2004 come from Audi and Jaguar, which each improve an impressive 31 points over 2003, and Land Rover, which improves 29 points. Audi, which jumps 10 rank positions to tie with HUMMER for 10th, experiences

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improved ratings from both maintenance and repair customers, particularly in the consideration of a customer's time, the amount of time waiting to speak to a service advisor and the time it took to get the vehicle after service.

"This is noteworthy, considering that in the past, Audi customers have experienced some difficulty in getting an appointment," said Ivers. "That was a consequence of their popularity, which outran the dealer's capacity to service them."

Jaguar's improvement comes heavily from repair customers, primarily in the area of service quality, which includes the ability to diagnose problems, quality of work, and fulfillment of requested work.

Land Rover experiences significantly higher ratings from its repair customers, with fewer repairs needed and fewer complaints about parts availability. This trend reflects the higher quality experienced by newer launch models (e.g., 2002 Freelander and 2003 Range Rover), both of which have shown measurable improvements in J.D. Power and Associates vehicle quality measurements.

J D Power Asia Pacific in 2005:- For Maruti, this is the sixth consecutive year when it has been ranked highest in customer satisfaction in the J D Power India Customer Satisfaction Index Study. Hyundai and Ford came in the second and third position in the 2005 survey where more than 4, 200 owners of 33 different vehicle models participated from June to August.

Overall satisfaction with the dealer’s service department is assessed on 42 attributes, grouped into seven predefined factors: problems experienced, service quality, user-friendly service, service advisor, service initiation, service delivery and in-service experience.

“Maruti Suzuki’s overall strength lies in building an organization that is sharply focused on the voice of the customer,” said Mohit Arora, India director at J.D. Power Asia Pacific. “Maruti’s consistent performance in the study over the past several years has resulted in a steady increase in the percentage of its customers who say they intend to remain loyal to the brand.”

The industry has improved its overall performance by three index points, with seven of the 11 nameplates ranked in 2005 showing improvements from 2004. Mahindra emerges as the most improved nameplate in the study with an increase in score of 30 index points from 2004.

While the Tata Indica and Indigo car models record strong performances in the diesel segment in terms of cost of operation, Maruti models continue to outperform their competitors in the petrol segment.

The study, now in its ninth year, examines the satisfaction of new-vehicle buyers with the authorized service experience at 12 to 18 months of ownership. More than 4,200 owners

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of 33 different vehicle models participated in the 2005 study, which was fielded from June to August 2005

UK MINI 2005:- Car Customer Satisfaction Index (CSI) Study released today, and luxury Japanese brand Lexus tops the overall rankings for the fifth consecutive year.

MINI, which is included in the study for only the second year, is the most-improved brand with an increase of 19 index points in its total score, taking it to sixth place in the overall rankings. Owners of the MINI, built in Oxford, report substantial improvements in the brand’s quality and reliability. MINI is one of five British-built cars in the Top 20, matching the number of Japanese-built models ranked at the top of the study.

With a score of 848 index points (on a 1,000-point scale), Lexus retains its position as the most satisfying brand to own. Czech carmaker Skoda closely follows Lexus in second place with 847 index points. Honda ranks third with 843 index points, a 14-point increase from 2004.

In the model rankings, the Honda Jazz ranks as the top model for the second consecutive year, scoring significantly higher than any other model. Three other Honda models place in the Top 20, including the Swindon-made Civic and CR-V. The Lexus IS 200/300 places second among the 124 models and the Toyota Yaris ranks third. Japanese brands do not dominate the 2005 model rankings as they have in previous years, with 10 Japanese models ranking in the Top 20, compared to 14 in 2004.

“This year’s results show that the competition is getting tighter,” said Dave Sargent, executive director of European operations at J.D. Power and Associates. “While Lexus still leads, other brands are improving quickly, and many of the best performances this year are achieved by models from brands such as Honda, Toyota, Skoda, MINI and Kia. It is encouraging for UK motorists that good-quality; satisfying cars come in all shapes and sizes and at all price levels. Also, many of the leading models, including some from Japanese brands, are built right here in the UK.”

Among the 17 brands ranked above the overall industry average, seven are nameplates from Japan, with other nameplates from the UK, Germany, Sweden, Czech Republic and Korea also ranking above the average.

Commenting on the findings of the study, What Car? Group Editor, Steve Fowler says, “Although Japanese brands continue to perform well in the 2005 study, many British-built cars match their Far-Eastern rivals for satisfaction. Cars built in the UK, such as the MINI, Honda Civic and CR-V and Toyota’s Corolla and Avensis show that British factories are building some of the best cars.”

The 2005 J.D. Power and Associates / What Car? Study is based on the evaluations of more than 23,000 owners of ‘52’ and ‘03’ registration vehicles after an average of two years of ownership. The study includes 32 brands and 124 models. Owners provide detailed evaluations of their vehicles and selling dealers, which covers 77 attributes grouped into four main factors of satisfaction. The importance of each factor is shown as a percentage:

· Quality and Reliability (30%)

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· Vehicle Appeal (28%) includes performance, design, comfort and features

· Dealer Service Satisfaction (22%)

· Ownership Costs (19%) includes fuel consumption, insurance and costs of service/repair

18 August , 2005, 15:33 New Delhi :- Car owners in India reported fewer problems with their new vehicles, as eight out of 11 manufacturers showed better performance and improvement in implementation rates of various dealer activities, says the JD Power Asia Pacific Satisfaction Index Study conducted from March to May 2005.

Maruti Udyog was ranked highest in customer satisfaction, with new-vehicle sales process, for a second consecutive year in the study, which also saw Mahindra and General Motors' Opel making significant improvements.

"Maruti Suzuki's performance reflects its consistent approach to building and promoting effective sales processes based on the voice of the customer," Mr. Mohit Arora, India Director of JD Power Asia Pacific, said in a press statement.

The industry improved its overall performance by six index points, with eight of the 11 manufacturers showing improvements over 2004, the study said.

"Mahindra recorded the greatest improvement in the study, with an increase of 45 index points over 2004, and takes sixth place in the overall rankings. Opel, a General Motors nameplate, improves 40 index points in performance to rank second overall," it added.

The study revealed a significant improvement in implementation rates of various dealer activities performed during the entire sales and delivery process, such as offering test drives and explaining the vehicle's features.

On test drives offered — a key sales activity — implementation rates have improved 14 per cent over 2004 for the industry, one of the highest year-over-year improvements registered in the past five years.

"The improvements registered across most manufacturers are indicative of the growing competition in the industry, as manufacturers strive to create a strong and positive first impression on their customers," Mr. Arora said. Additionally, the study finds that although making a booking for a new vehicle is an industry practice, customers report higher satisfaction if they are able to receive their vehicles with no booking time.

Also, satisfaction scores decline rapidly with increased booking time.

Customers not only report lower satisfaction, but also report a greater number of problems with their selling dealer if they have to book their new vehicle.

The study, in its sixth year, examines satisfaction of new-vehicle buyers with the sales and delivery experience at two to six months of ownership. More than 4,150 owners of 36 different vehicle models participated in the 2005 study. Overall sales satisfaction is assessed on 48 attributes, grouped into six pre-defined factors: delivery process, delivery timing, salesperson, dealer facility, paperwork and deal.

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LONDON: 2 June 2006:– While Japanese brands continue to dominate the customer satisfaction rankings, four of the top 10 most-satisfying models are built in Britain, according to the J.D. Power and Associates / What Car? Magazine 2006 Car Customer Satisfaction Index (CSI) Study released today.

Honda Civic, Toyota Avensis, Toyota Corolla and Jaguar S-Type, which are all built in Britain, rank within the top 10 models in the study, while British brands MINI and Jaguar rank within the top 10 nameplates. Škoda, BMW and Volvo represent the remaining European brands ranking among the top 10 nameplates.

“Despite the recent, well-documented problems faced by the UK car manufacturing industry, Britain continues to build great cars,” said David Motton, editor of What Car? magazine. “While Lexus continues to set the benchmark for customer satisfaction, it is encouraging to see British brands such as MINI and Jaguar performing strongly, signifying that with the right investment and management, British-built vehicles can be a pleasure to own”

Luxury Japanese brand Lexus tops the nameplate rankings for a sixth consecutive year with a customer satisfaction score of 873 index points on a 1,000-point scale. With a 25-point increase from the 2005 study, Lexus also attains the award for the most improved nameplate in 2006. Honda (848), Škoda (842) and Toyota (838), respectively, follow Lexus in the rankings. Mercedes-Benz, Hyundai, Subaru and Volkswagen also show strong improvement in overall customer satisfaction among brands performing above average.

Lexus also builds the highest-ranking model in the study, the Lexus IS (868 index points). The Honda Jazz, which ranked highest in 2004 and 2005, follows the IS at 861 points. With an increase of 48 index points from 2005, the Suzuki Liana (856) ranks third overall.

“Over the past year, customer satisfaction across the industry has improved by 5 index points,” said Frank Parisi, director of European automotive research at J.D. Power and Associates.  “The main reason for this is a substantial improvement in satisfaction with the performance of the UK's car dealers when the customer takes their car in to be serviced or repaired.  This year, 24 of the 30 ranked brands have shown an improvement in this area which is a very encouraging trend.”

Of the brands scoring above average, those that show the greatest improvement in satisfaction with dealer service include Mercedes-Benz, Lexus, Volkswagen and Subaru.

The 2006 UK Car Customer Satisfaction Index (CSI) Study is based on the evaluations of nearly 15,000 UK car owners after an average of two years of ownership. The study includes 30 brands and 105 models. Owners provide detailed evaluations of their vehicles and dealers, which covers 77 attributes grouped into four measurements of satisfaction. In order of importance, they are:

Quality and Reliability (30%)

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Vehicle Appeal (28%), which includes performance, design, comfort and features Dealer Service Satisfaction (22%) Ownership Costs (19%), which includes fuel consumption, insurance and costs of

service quality

The annual J.D. Power and Associates /What Car? Study is designed to help manufacturers provide high levels of satisfaction to their customers, and gives consumers access to reliable and accurate information about many different vehicle models. More comprehensive study results are published exclusively in the August issue of What Car? on sale.

SINGAPORE: 26 October 2006: - For a seventh consecutive year, Maruti Suzuki ranks highest in customer satisfaction with authorized dealership service, according to the J.D. Power Asia Pacific 2006 India Customer Satisfaction Index (CSI) Study released today.

The study, now in its 10th year, measures the overall satisfaction of vehicle owners who visit their authorized dealer/service center for maintenance or repair work during the first 12 to 18 months of ownership. Overall satisfaction is determined by utilizing seven measures. They are (in order of importance): problems experienced; service quality; user-friendly service; service advisor; service initiation; service delivery; and in-service experience.

The industry average CSI has increased to 776 index points on a 1,000-point scale in 2006—up 15 points from the 2005 study. Maruti Suzuki leads the industry in customer satisfaction with a CSI score of 848 points and continues to set the industry benchmark on all measures of the CSI. Maruti Suzuki also improves its performance in all measures from 2005 results.

“Maruti Suzuki's performance in 2006 is a new industry high score, and raises the expectations for other manufacturers in the industry,” said Mohit Arora, India director at J.D. Power Asia Pacific. “Nearly 50 percent of Maruti Suzuki customer indicated that their expectations were exceeded, which generally results in particularly high levels of loyalty and advocacy intentions toward a vehicle make.”

Ford follows Maruti Suzuki in the rankings, and Mahindra and Toyota both rank third in a tie. Tata, which shows significant improvements in six of the seven factors, emerges as the most-improved nameplate in the study with an increase of 31 index points from its 2005 score.

The study finds that during the past 10 years there has been a consistent increase in the number of customers who bring their vehicles into dealerships for regular service, which includes routine maintenance and oil changes but excludes repairs. Among customers who bring their vehicle in for regular service, a quick turnaround leads to higher satisfaction levels, with scores nearly 100 points above the industry average when this expectation is met. Maruti Suzuki again leads the industry in providing a quick service turnaround with nearly one of seven customers reporting they receive their vehicle back within three hours.

“While the concept of quick service is prevalent internationally, it is still relatively new to India,” said Arora. “Vehicle owners in India appreciate a quick service turnaround if it

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is done in a cost-effective and high-quality manner. Also, it is beneficial to dealers, as it enables greater service-bay productivity and, therefore, higher overall service revenues.”

The study also examines the cost of operating new vehicles, both in terms of actual costs and owner satisfaction with those costs. Operation costs of new vehicles have increased from the 2005 study—up 12 percent for diesel and 17 percent for petrol vehicles. The overall cost of operation is an aggregation of three components: fuel; repair and maintenance; and tire expenses. While the Tata Indica, Indigo and Marina vehicle models post strong performances in the diesel segment in terms of cost of operation, Maruti models continue to dominate in the petrol segment.

The 2006 India Customer Satisfaction Index (CSI) study is based on responses from more than 4,500 owners of nearly 40 different vehicle models. The study was fielded from June to August 2006.

JOHANNESBURG, South Africa: - Honda and Toyota models capture four segment awards each, earning more awards than any other manufacturer, according to the J.D. Power and Associates/CAR Magazine 2007 South Africa Customer Satisfaction Index (CSI) Study(SM) released today.

Honda models receiving awards include the Civic, CR-V, FR-V and Jazz. Toyota models ranking highest in their respective segments are the Avensis, Hilux, Land Cruiser Prado and Tazz. Also receiving awards are the BMW X5, Fiat Panda and Opel Corsa Utility.

Now in its fourth year, the independent CSI study is a comprehensive measurement of customer satisfaction after 10 to 21 months of ownership that covers 77 attributes grouped in four factors (the importance of each factor is shown as a percentage): vehicle quality and reliability (32%); vehicle appeal (29%)-- which includes performance, design, comfort, styling and features; dealership service satisfaction (19%); and cost of ownership (20%)-- which includes fuel consumption, insurance and cost of service/repair. Importance weights are based on survey responses from vehicle owners, thus reflecting what is more important to motorists in South Africa. CSI performance is reported as an index score based on a 1,000-point scale, with a higher CSI score indicating a more satisfying ownership experience.

At the brand level, Honda ranks highest in the South Africa market for a second consecutive year, improving by 9 index points since 2006. Mercedes-Benz improves by 21 index points -- more than any other top-five ranked nameplate -- to follow Honda in the nameplate rankings. Rounding out the top five nameplates are Audi, BMW and Volvo, respectively. In addition, Honda performs particularly well in the areas of quality/reliability and Service satisfaction, while Mercedes-Benz performs well in vehicle appeal and Audi performs particularly well in ownership costs.

"Honda and Toyota models continue their strong performance in satisfying customers in South Africa," said Brian Walters, vice president of J.D. Power and Associates Europe, Middle East and Africa operations. "In both 2006 and 2007, four Toyota models ranked highest in their respective segments, while Honda has led in nameplate rankings in both years. These results are a testament to the commitment to high quality that both brands demonstrate. In addition, Mercedes-Benz maintains its ranking in the top five for a second consecutive year and improves in an impressive manner since 2006."

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Overall satisfaction continues to improve steadily in the South Africa market and reaches a record-high level for a second consecutive year. Improving by 5 points since 2006, overall customer satisfaction averages 795 in the 2007 study.

"The consistent improvement in overall satisfaction in the South Africa market is good news for consumers, franchise dealers and manufacturers," said Walters. "However, there is still significant room for improvement. While customers seem to be more satisfied with vehicle quality and reliability as well as vehicle appeal, service satisfaction and ownership cost satisfaction levels are not on par."

"We are pleased to publish the latest independent J.D. Power and Associates South Africa CSI research findings, covering the overall vehicle ownership experience," said John Bentley, editor of CAR Magazine. "These findings provide our readers with quantified information from current owners, further assisting them with their vehicle purchase decisions."

In addition to South Africa, the CSI study is currently conducted in 15 other markets: Canada, China, France, Germany, India, Indonesia, Japan, Malaysia, Mexico, New Zealand, the Philippines, Taiwan, Thailand, the United Kingdom and the United States.

J.D. Power and Associates is recognized across the globe as the leading independent authority on customer satisfaction in the automotive industry. The firm's primary role is to help automotive manufacturers further improve their product quality and service levels through a better understanding of consumer behavior and preferences. J.D. Power and Associates also provides top line results of its automotive studies to consumers for use as a reference point when purchasing a new vehicle.

The 2007 South Africa Customer Satisfaction Index Study is based on a representative sample of more than 8,700 new-vehicle owners who registered their vehicles between October 2005 and September 2006. The study was funded by J.D. Power and Associates as part of its global research programs in cooperation with the Road Traffic Management Corporation (RTMC), and includes a section of questions to assist the Corporation and the Department of Transport (DOT) in measuring the performance of its vehicle and drivers licensing program

Honda, Hyundai, Toyota and Ford made 765, 745, 740 and 737 points respectively, and registered their names in the top five of the list. Skoda, Mahindra, Chevrolet and Tata scored 736, 733, 731 and 690 respectively and mentioned among top names in the study. The study assesses the overall contentment of the owners of the vehicle who visited their official dealer or service center for maintenance or repair work in the initial 12 to 18 months of ownership.

The overall satisfaction level of the customers is determined by utilizing seven measures including service quality; user-friendly service; service advisor; service initiation; service delivery; and in-service experience.

Mohit Arora, senior director at J.D. Power Asia Pacific, Singapore said, “The steady improvement in industry-wide CSI performance during the previous three years reflects the success that many manufacturers have had in enhancing the customer experience at their dealerships.”

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SINGAPORE: 14 November 2007 :— For an eighth consecutive year, Maruti Suzuki ranks highest in customer satisfaction with authorized dealership service, according to the J.D. Power Asia Pacific 2007 India Customer Satisfaction Index (CSI) Study released today. The study, now in its 11th year, measures the overall satisfaction of vehicle owners who visited their authorized dealer/service center for maintenance or repair work during the first 12 to 18 months of ownership. Overall satisfaction is determined by utilizing seven measures. They are (in order of importance): problems experienced; service quality; user-friendly service; service advisor; service initiation; service delivery; and in-service experience. Recording only a single-point increase since 2006, overall satisfaction in the industry remains stable. Maruti Suzuki leads the industry in customer satisfaction with a CSI score of 838 points on a 1,000-point scale and continues to set the industry benchmark in all measures of the CSI. While ranking below the industry average, the remaining eight nameplates included in the study have improved since 2006. Honda, Skoda and Hyundai, respectively, demonstrate the greatest improvement.

“The steady improvement in industry-wide CSI performance during the previous three years reflects the success that many manufacturers have had in enhancing the customer experience at their dealerships”, said Mohit Arora, senior director at J.D. Power Asia Pacific, Singapore. “The improvement in performance is especially encouraging, given the sharp increase in the service volumes for most dealer networks.”The study finds that vehicle pickup and delivery before and after service has a strong impact on customer satisfaction. In particular, customers who say that their vehicle was picked up from their doorstep before service and delivered to the same point after service are notably more delighted with their after-sales service experience, compared with customers who do not receive this service. Although this value-added service is utilized more frequently over the past two years, less than one of 10 customers report receiving it.” Picking up and delivering vehicles provides greater convenience to customers, who travel an average of nine kilometers each way to reach their authorized service center,” said Arora. “With increasing traffic congestion in cities and consumer preference of delivering their vehicle for service during peak morning hours, it is not unexpected that customers are delighted with this gesture from their dealerships.”

The study also finds that customers who service their vehicles only at authorized service centers report higher overall service satisfaction, compared with those who have also used non-authorized service centers in the past. In 2007, just 13 percent of customers report visiting a non-authorized service center, a figure that has steadily declined in the past two years.” Most customers who use a non-authorized service center do so for routine maintenance or repairs—both of which are revenue-generating opportunities for dealerships,” said Arora. “Customers use the services of a non-authorized service facility mostly due to its convenient location or speedy service. Automakers can benefit by optimizing their network reach and providing quicker service to maximize revenues for their after-sales network.”

The study also examines the cost of operating new vehicles, both in terms of actual costs and owner satisfaction with those costs. The overall cost of operation is an aggregation of three components: fuel; repair and maintenance; and tire expenses. With lower fuel prices

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in 2007, the cost of new-vehicle operation has decreased since the 2006 study—down 7 percent for petrol vehicles and 2 percent for diesel vehicles. This year, diesel models such as the Ford Fiesta, Chevrolet Tavera, Tata Indica and Tata Indigo/Marina post strong performances in the diesel segment in terms of cost of operation. Maruti models continue to lead the petrol segment, both in terms of actual costs and overall satisfaction with the cost of operation.

The 2007 India Customer Satisfaction Index (CSI) study is based on responses from more than 5,300 owners of nearly 40 different vehicle models. The study was fielded from May to August 2007 and includes customers who serviced their vehicles at authorized service facilities between November 2006 to August 2007.

J.D. Power Asia Pacific 2008:- The study, now in its 12th year, measures satisfaction among vehicle owners who visited their authorized dealership service center for maintenance or repair work during the first 12 to 18 months of ownership, which typically represents the warranty period. Overall satisfaction is determined by examining seven measures (listed in order of importance): problems experienced; service quality; user-friendly service; service advisor; service initiation; service delivery; and in-service experience. Maruti Suzuki achieves an overall CSI score of 820 on a 1,000-point scale. Overall customer satisfaction with dealer service for the industry improves slightly in 2008—up by 3 points since 2007, with six of the 11 ranked brands demonstrating gains. While ranking below the industry average, Tata and Mahindra emerge as the most improved brands, respectively, particularly in the areas of service initiation, quality of service advisors and in-service experience.

“Maruti Suzuki has effectively implemented simple procedures that improve satisfaction with the value of work performed and perceptions of the fairness and honesty of the dealer, such as greeting service customers quickly upon arrival and fully explaining charges and repairs,” said Mohit Arora, senior director at J.D. Power Asia Pacific, Singapore. “Instituting these low-effort, yet high-impact practices helps to foster trust among customers, which is critical to building loyalty for future service and sales opportunities.”

The study finds that the proportion of vehicles brought in and serviced within the same day has increased to 55 percent this year from 49 percent in 2007. Quick completion of service is a key source of customer delight, particularly for customers who visit the dealer for routine maintenance.

“Quick service turnaround induces a feeling of convenience and comfort for customers, especially as life styles become faster paced,” said Arora. “Dealers that provide expedient service not only delight their customers but also benefit from greater dealership profitability as a result of high levels of asset utilization.”

The study also finds that customer-reported costs of operation for petrol-powered vehicles have risen by seven percent since 2007, primarily due to rising fuel costs. In contrast, owners of diesel-powered vehicles report a minimal increase in operating costs in 2008, compared with 2007. The overall cost of vehicle operation is an

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aggregation of three components: fuel; repair and maintenance; and tire expenses.

“Consumers in India have traditionally exhibited higher sensitivity to the costs of vehicle operation, compared with consumers in other international markets,” said Arora. “In India, customer intent to recommend a model or repurchase a make is strongly influenced by satisfaction with vehicle operating costs.”

The study finds that overall advocacy rates have declined, with 77 percent of owners in 2008 reporting that they “definitely would” recommend their vehicle make, compared with 82 percent in 2007. Customer loyalty rates have remained stable from 2007, with 64 percent of owners in 2008 saying they “definitely would” repurchase their vehicle make, compared with 63 percent in 2007. However, the study also finds that rates of advocacy and loyalty are much higher among highly satisfied customers (those with satisfaction scores averaging above 867) than among customers with lower levels of satisfaction. Approximately 94 percent of highly satisfied customers say they “definitely would” recommend their vehicle make, and 84 percent report they “definitely would” repurchase their vehicle make. In contrast, among customers with the lowest levels of satisfaction (averaging below 709), only 55 percent of customers “definitely would” recommend, and only 43 percent report that they “definitely would” repurchase their current vehicle make.

The 2008 India Customer Satisfaction Index (CSI) study is based on responses from more than 5,594 owners of nearly 41 different vehicles models. The study was fielded from May to August 2008 and includes customers who serviced their vehicles at authorized service facilities between November 2006 and August 2007

LONDON: 8 May 2008:– Toyota’s hybrid car, the Prius, is the highest-ranking model in the J.D. Power and Associates/What Car? 2008 UK Car Customer Satisfaction Index (CSI) Study released today.

The Prius earns a score of 901 on a 1,000-point scale, with owners reporting particularly high satisfaction with the model’s quality and reliability.” The Prius already has iconic status because of its green credentials; now it’s demonstrating that it’s also the watchword for reliability and satisfaction,” said Steve Fowler, editor of What Car? “It delivers on many of the points that matter most to car buyers today: it’s environmentally friendly and reasonably frugal, yet it’s also reliable and a great car to own.”

In the nameplate rankings, luxury Japanese brand Lexus ranks highest for an eighth consecutive year, receiving a customer satisfaction score of 866. Lexus continues to perform particularly well in three of four key measures: quality/reliability, service satisfaction and vehicle appeal. Rounding out the top five manufacturers are Škoda (846), Honda (844), Toyota (836) and Jaguar (833).Honda receives three model segment awards for the Jazz (small car), FR-V (MPV) and CR-V (SUV). Two Toyota models rank highest in their respective vehicle segments: the Prius (upper medium car) and the Aygo (basic car). Other models receiving awards are the Škoda Octavia (lower medium car) and Jaguar S-Type (executive/luxury car).

“Honda distinguishes itself by garnering the greatest number of segment awards in the 2008 study and also by placing among the top three nameplates,” said

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Martin Volk, senior research manager at J.D. Power and Associates. “While Lexus maintains its position as the top-ranked nameplate, two non-premium nameplates, Škoda and Honda, also place among the top three, which is a testament to the continued efforts of these car makers to provide an excellent vehicle ownership experience.”

The 2008 UK Car Customer Satisfaction Index (CSI) Study is based on the evaluations of more than 16,000 UK car owners after an average of two years of ownership. The study includes 28 brands and 100 models. Owners provide detailed evaluations of their vehicles and dealers, which covers 77 attributes grouped in four measurements of satisfaction. In order of importance, they are: quality and reliability (30%); vehicle appeal (28%), which includes performance, design, comfort and features; dealer service satisfaction (22%); and ownership costs (19%), which includes fuel consumption, insurance and costs of service/repair.

J.D. Power and Associates conducts CSI studies around the world, including Europe (France, Germany, United Kingdom); North America (Canada, Mexico, United States); Asia Pacific (China, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Taiwan, Thailand); and Africa (South Africa).

The annual J.D. Power and Associates/What Car? study is designed to give consumers access to reliable and accurate information about many different vehicle models, and helps manufacturers provide high levels of satisfaction to their customers. More comprehensive study results are published exclusively in the July issue of What Car? on sale Thursday, May 8, 2008.

Munich: 20 June 2008:- For a second consecutive year, Honda ranks highest among automotive brands in satisfying new-vehicle owners, according to the J.D. Power and Associates 2008 Germany Customer Satisfaction Index (CSI) Study released today in cooperation with AUTO TESTS.

Now in its seventh year, the study examines customer satisfaction with new vehicles and vehicle service after two years of ownership. Owners provide detailed evaluations of their vehicles and dealers, which cover 77 attributes grouped in four measurements of satisfaction. In order of importance, they are: quality and reliability (30%); vehicle appeal (25%), which includes performance, design, comfort and features; dealer service satisfaction (23%); and ownership costs (22%), which includes fuel consumption, insurance and costs of service/repair.

In the nameplate rankings, Honda leads with a customer satisfaction score of 849 on a 1,000-point scale. Honda performs particularly well in service satisfaction. Following Honda in the rankings is BMW with 845, an increase of 13 index points from 2007. BMW performs well in appeal, and quality and reliability. Toyota, Audi, Mazda, Daihatsu, Mercedes-Benz, Skoda, Volvo and Nissan also perform above the industry average in overall customer satisfaction.

“Overall satisfaction is at its highest level since the launch of the study in 2002, improving by 48 index points from 2002 to 815 in 2008,” said Martin Volk, senior research manager at J.D. Power and Associates in Europe. “More customers report being ‘delighted’ rather than merely satisfied, which could lead to financial benefits for manufacturers. For example, customers who are particularly pleased with an exceptional product and service experience are more than twice as likely to repurchase the same vehicle brand compared with those with lower satisfaction levels.”

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With an index score of 888, the Toyota Prius ranks highest among all models in the study for a second consecutive year. The Prius performs particularly well in the ownership costs, and quality and reliability measures.

July 2008 : - China Customer Satisfaction Index (CSI) Study released today, Mercedes-Benz ranks higher than any other automotive brand in customer satisfaction for authorized dealer after-sales service in China.  Although it was Mercedes' first time being included in the rankings, the company scored a total of 854 points on a 1,000 point scale, performing particularly well in six of the seven scoring factors: service initiation, service advisor, in-service experience, service delivery, user-friendly service and problems experienced.

Equally as impressive, nearly 40 percent of Mercedes-Benz customers said they received at least 21 of 24 services measured in the study - a rate twice that of the industry average (20 percent).  In addition, forty-four percent of Mercedes customers say they “definitely would” recommend their service dealers, compared to an industry average of 23 percent for other automakers’ customers.

Commenting on why dealer after-sales service is so important in the Chinese market, Dr. Mei Songlin, general manager of research at J.D. Power Asia Pacific China operations, had this to say:  “With new-vehicle sales in China showing signs of slowing, providing superior customer satisfaction is of primary importance for automakers and dealers.  In the highly competitive China automotive market, dealers are finding it increasingly difficult to achieve profitability from new-vehicle sales. Manufacturers are creating differentiation and directing their dealers to grow their business through superior after-sales service, which ultimately benefits consumers.”

As for the other automakers rounding out the top five:  coming in second was Audi, followed by SGM-Chevrolet, Citroen, Nissan and Guangzhou Toyota.“A hybrid car leading the customer satisfaction rankings for a second year indicates the industry’s shift to more environmentally friendly vehicles,” said Olaf Schilling, chief editor of AUTO TESTS. “The Toyota Prius receives high ratings from customers in fuel consumption, which will become more of a factor in overall satisfaction as fuel prices increase.”

BANGKOK: 1 July 2008: — Toyota ranks highest in customer satisfaction with authorized dealer after-sales service in Thailand for the first time since 2003, according to the J.D. Power Asia Pacific 2008 Thailand Customer Satisfaction Index (CSI) Study

released today. Now in its ninth year, the study measures customer satisfaction with

maintenance and repair service at authorized dealer service centers. Seven factors are examined to determine overall satisfaction. In order of importance, they are: service quality; problems experienced; service delivery; user-friendly service; service advisor; service initiation; and in-service experience. CSI performance is reported as an index score based on a 1,000-point scale.

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Among the eight brands examined in the 2008 study, Toyota ranks highest with an overall CSI score of 853, performing particularly well in the in-service experience and user-friendly service factors. While ranking below the industry average, Isuzu follows Toyota in the rankings with a score of 846, performing particularly well in the service quality factor. Honda improves considerably since the 2007 study and follows Isuzu in the rankings with a score of 844, performing particularly well in the service initiation, in-service experience and service delivery factors.

Overall satisfaction in 2008 averages 847—up 4 points from the 2007 study. The industry also improves slightly in all factors. In 2008, 94 percent of customers, regardless of their service requirements, say that service was completed the same day they brought their vehicle to the dealer—an increase from 92 percent in 2007. Among these customers, the time needed to service the vehicle averaged 2 hours and 20 minutes.

“Interestingly, a growing proportion of customers report waiting at the service center while their vehicle is being serviced—an average of 72 percent in 2008, compared with 69 percent in 2007,” said Loïc Pean, country manager at J.D. Power and Associates, Singapore. “As a result, customers are becoming more demanding regarding service center amenities, particularly in the waiting area. Manufacturers and dealers may need to quickly adopt new strategies to match these rising customer expectations.”

The study finds that the proportion of customers who say they schedule an appointment for service rather than simply dropping in at the dealership is quickly increasing. In 2008, 29 percent of customers report making an appointment, compared with 22 percent in 2007 and 20 percent in 2006.

“The increase in the number of customers scheduling their visit is probably the result of manufacturer efforts to gain better control of the service process, which can improve management efficiency and operational costs, as well as potentially reducing servicing and waiting time for their customers,” said Pean. “In past years, customers with service appointments historically had lower overall satisfaction levels than did drop-in customers. However, in 2008, overall satisfaction is nearly equal for these two groups, demonstrating that dealers are making strides in improving customer satisfaction among customers with appointments. The future challenge for manufacturers and dealers will be to maintain or improve that level of satisfaction and proactively manage growing numbers of scheduled service visits.”

The study also finds that vehicle owners report spending more money on fuel—an average of 5,000 baht per month in 2008, compared with 4,500 baht per month in 2007. “As rising fuel costs are whittling away household budgets, existing or prospective car owners may become more sensitive to maintenance and service costs in the near future,” said Pean.

The 2008 Thailand Customer Satisfaction Index Study is based on evaluations from 3,316 new-vehicle owners who purchased their vehicles between July 2006 and April 2007. The study was fielded between January and April 2008.

The CSI study is one of four consumer-based studies J.D. Power Asia Pacific conducts in Thailand. The 2008 Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, will be released in late July.

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The 2008 Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners, will be released in late October. The 2008 Automotive Performance, Execution and Layout (APEAL) Study, measuring what excites and delights owners about their new-vehicle’s performance and design, will be released in late November.

SINGAPORE: 1 September 2008: — Toyota ranks highest in customer satisfaction with authorized dealer after-sales service in the Philippines, according to the J.D. Power Asia Pacific 2008 Philippines Customer Satisfaction Index (CSI) Study released today.

Now in its eighth year, the study measures new-vehicle owner satisfaction with the after-sales service process by examining dealership performance in seven factors. In order of importance, they are: problems experienced; service quality; user-friendly service; service delivery; service advisor; service initiation; and in-service experience. CSI performance is reported as an index score based on a 1,000-point scale. Overall customer satisfaction shows improvement with a score of 837 this year—an increase of 23 points since 2007.

Among the 10 brands included in the study, Toyota ranks highest, achieving an overall score of 843. Toyota performs particularly well in the areas of service advisor and service quality. Ford follows Toyota in the rankings with a score of 841. Also ranking above the industry average are Nissan and Mitsubishi, respectively.

The study finds that customers whose dealers provided explanations of the work performed on their vehicle had higher satisfaction levels, compared with customers who did not receive explanations. On average, satisfaction was 4 points higher than the industry average when customers received explanations. In contrast, when dealers did not provide explanations, satisfaction averaged 49 points lower than the industry average. In 2008, 8 percent of customers report that their dealer did not offer an explanation of the work performed on their vehicle.

“Customers are concerned about what work is being performed on their vehicle, and want to be kept informed, even for routine maintenance,” said Taku Kimoto, general manager for the Philippines at J.D. Power Asia Pacific, Singapore. “By making an effort to explain the actual work done, the dealer demonstrates thoroughness in the work completed. This helps to reinforce customer confidence and trust in the dealership, which translates into higher customer satisfaction.”

In addition, customers who are highly satisfied with the overall service performance of the dealer have higher levels of advocacy and loyalty to both the vehicle brand and dealer. Approximately 85 percent of customers who report that they are highly satisfied with their dealer’s service performance say they “definitely will” repurchase the same make, compared with the industry average of 55 percent.  Similarly, 81 percent of highly satisfied customers say they “definitely will” revisit their service dealer for post-warranty service, compared with the industry average (58%).

“Customer dealership service experiences play an important role in building a lasting relationship for both service and sales,” said Kimoto. “While the improvement in overall satisfaction demonstrated in 2008 is very encouraging, the

45

challenge for dealerships lies in continuing this upward momentum against rising customer expectations.”

The 2008 Philippines Customer Satisfaction Index (CSI) Study is based on the responses of more than 1,400 new-vehicle owners who purchased their personal-use vehicles between September 2006 and June 2007 and took their vehicle for service to an authorized dealer or service center between September 2007 and June 2008.

Lexus study in 2009 by J.D. Power:- examines satisfaction among vehicle owners who visit a service department for maintenance or repair work. The CSI rankings are based on dealer performance during the first three years of ownership, which typically represent the majority of the vehicle warranty period. Five measures are examined to determine overall customer satisfaction with dealer service (listed in order of importance): service quality; service initiation; service advisor; service facility; and vehicle pickup.

The study finds that although satisfaction with dealer service tends to decline as vehicles age—particularly during the fourth and fifth years of ownership—those automakers whose dealers provide the highest levels of satisfaction during the warranty period retain a greater share of future service visits at the dealership, even after the warranty period expires. Brands with dealers that achieve particularly high CSI scores (800 or higher) during the first three years of vehicle ownership retained 79 percent of dollars spent on maintenance and repairs during the first five years of ownership. In contrast, brands that attained CSI scores below 800 retained only 69 percent of customer maintenance and repair dollars.

The study also finds that consumers report spending an average of $310 annually on oil changes, routine maintenance and repairs during the first five years of vehicle ownership. Higher satisfaction with dealers leads to a dramatically lower likelihood to spend this money on visits to non-dealer service facilities. For example, customers who say the dealer service they received was “unacceptable” report spending eight times as much at non-dealer service facilities, compared with customers who report receiving “truly exceptional” service from their dealer.

“Since dealer service is the last touch point in the vehicle ownership cycle that auto manufacturers have with customers, providing superior levels of service can leave owners with a lasting favorable impression of the brand,” said Jon Osborn, research director at J.D. Power and Associates. “Providing excellent service is not only good for customers, but it also benefits dealers and automakers in terms of income from future service visits and sales. The significant decline in new-vehicle sales means that dealers are relying even more heavily on the service-operations side of their business for much-needed revenue. In many cases, this income is keeping the dealerships open. With the stakes so high, it is imperative for dealers to focus heavily on maximizing satisfaction levels.”

Lexus ranks highest in customer satisfaction with dealer service in 2009—improving from fourth rank position in 2008. Lexus achieves an overall CSI score of 835 on a 1,000-point scale and performs particularly well in four of the five measures: service quality; service initiation; service advisor and service facility. Rounding out the top five nameplates are Jaguar (810), BMW (808), Cadillac (806) and Acura (805).

“The highest-performing brands differentiate themselves particularly in the service quality and service facility measures,” said Osborn. “There are several

46

practices that the highest-ranked brands consistently perform that help elevate customer service satisfaction levels, including providing prompt service appointments; greeting the customer immediately on arrival; knowing the vehicle’s service history; returning vehicles to customers in a clean condition; and offering alternative transportation to customers leaving their cars for service. These courtesies may seem intuitive, but many dealers do not provide them consistently. We find that they are very effective in raising customer satisfaction, provided that the service work performed on the vehicle is also satisfactory.”D. Power and Associates 2009 Customer Service Index (CSI) Study released today. 

The study, now in its 29th year, examines satisfaction among vehicle owners who visit a service department for maintenance or repair work. The CSI rankings are based on dealer performance during the first three years of ownership, which typically represent the majority of the vehicle warranty period. Five measures are examined to determine overall customer satisfaction with dealer service (listed in order of importance): service quality; service initiation; service advisor; service facility; and vehicle pickup.

The study finds that although satisfaction with dealer service tends to decline as vehicles age—particularly during the fourth and fifth years of ownership—those automakers whose dealers provide the highest levels of satisfaction during the warranty period retain a greater share of future service visits at the dealership, even after the warranty period expires. Brands with dealers that achieve particularly high CSI scores (800 or higher) during the first three years of vehicle ownership retained 79 percent of dollars spent on maintenance and repairs during the first five years of ownership. In contrast, brands that attained CSI scores below 800 retained only 69 percent of customer maintenance and repair dollars.

The study also finds that consumers report spending an average of $310 annually on oil changes, routine maintenance and repairs during the first five years of vehicle ownership. Higher satisfaction with dealers leads to a dramatically lower likelihood to spend this money on visits to non-dealer service facilities. For example, customers who say the dealer service they received was “unacceptable” report spending eight times as much at non-dealer service facilities, compared with customers who report receiving “truly exceptional” service from their dealer.

“Since dealer service is the last touch point in the vehicle ownership cycle that auto manufacturers have with customers, providing superior levels of service can leave owners with a lasting favorable impression of the brand,” said Jon Osborn, research director at J.D. Power and Associates. “Providing excellent service is not only good for customers, but it also benefits dealers and automakers in terms of income from future service visits and sales. The significant decline in new-vehicle sales means that dealers are relying even more heavily on the service-operations side of their business for much-needed revenue. In many cases, this income is keeping the dealerships open. With the stakes so high, it is imperative for dealers to focus heavily on maximizing satisfaction levels.”

Lexus ranks highest in customer satisfaction with dealer service in 2009—improving from fourth rank position in 2008. Lexus achieves an overall CSI score of 835 on a 1,000-point scale and performs particularly well in four of the five measures: service

47

quality; service initiation; service advisor and service facility. Rounding out the top five nameplates are Jaguar (810), BMW (808), Cadillac (806) and Acura (805).

“The highest-performing brands differentiate themselves particularly in the service quality and service facility measures,” said Osborn. “There are several practices that the highest-ranked brands consistently perform that help elevate customer service satisfaction levels, including providing prompt service appointments; greeting the customer immediately on arrival; knowing the vehicle’s service history; returning vehicles to customers in a clean condition; and offering alternative transportation to customers leaving their cars for service. These courtesies may seem intuitive, but many dealers do not provide them consistently. We find that they are very effective in raising customer satisfaction, provided that the service work performed on the vehicle is also satisfactory.”

OBJECTIVES

To understand the perception of customers after sales services.

To understand the satisfaction level of customers for Maruti brand.

To study the role of employees in delivering services.

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To analyze the satisfaction level of services provide by Maruti to customers.

To analyze the level of employees for providing services to customers.

.

RESEARCH METHODOLOGY

Research is the systematic process of collecting and analyzing information to increase our understanding of the phenomenon under study. It is the function of the researcher to contribute to the understanding of the phenomenon and to communicate that understanding to others.

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Need of the study

To understand the brand preference of the customer for product. At the time of purchasing what is the perception of the customer, what things comes in the mind on the customer and on the basis of which things the customer buys the product.

SAMPLE SIZE

Why Sample?

This brings us to the question of why sample. Why should we not use the population as the focus of study? There are some reasons to sample. It is usually too costly to test the entire population.

1. The first reason to sample is that it may be impossible to test the entire

population.

2. The second reason to sample is that testing the entire population often produces

error.

3. The third reason to sample is that testing may be destructive.

4. We can get that information from operating on small samples.

Total sample size : - 100

Survey Technique : - convenience

SAMPLE UNIT:

Corporate Sector

Students

Senior Citizens

Area for Survey

The survey has done in the different corporate sector like Paramount Steel, Roily

Hosiery Mill, Dana mandi, Mittal steel, Stan autos.

The survey has done in the G.G.N. Khalsa College civil lines, G.N.D.

Engineering College Ludhiana.

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DATA COLLECTION

PRIMARY DATA: - Primary data should be collected with the various methods which

are following.

Methods for collecting data

Questionnaires

Paper-pencil-questionnaires can be sent to a large number of people and saves the researcher time and money. People are more truthful while responding to the questionnaires regarding controversial issues in particular due to the fact that their responses are anonymous. But they also have drawbacks. Majority of the people who receive questionnaires don't return them and those who do might not be representative of the originally selected sample

Secondary data: - The secondary data which is collected from the different sources like

Books: - The secondary data should be collected from the different books on the basis of the need and topics. There are several types of books are available in the market written by different author’s.

Internet: - It is another source of collecting any kind of information form anywhere.

CONSUMER BEHAVIOR

Market and Environment stimuli enter the buyer’s consciousness. The buyer’s characteristics and environment processes lead to certain purchase decisions. The marketer’s task is to understand what happens in the buyer’s consciousness between the arrival of outside stimuli and the purchase decisions.

A consumer’s buying behavior is influenced by cultural, social, personal and psychological factors.

Cultural Factors

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Culture, subculture and social class are particularly important in buying behavior. Culture is the fundamental determinant of a person’s wants and behavior. The growing child acquires a set of values, perceptions, preferences and behaviors through his or her family and other key institutions.

Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Subcultures include nationalities, religious and geographical regions.

Social FactorsIn addition to cultural factors a consumer’s behavior is influenced by such social factors as reference groups, family and social roles and statues.

References Groups: - A person’s reference groups consist of all the groups that have a direct or indirect influence on the person’s attitudes or behavior. Groups having a direct influence on a person are called membership groups. Some groups are primary groups, such as family, friends, neighbors and co-workers with whom the person interacts fairly continuously and informally.

Family:- The family is the most important consumer buying organization in society and family members constitute the most influential primary reference group. The family can distinguished between two families in the buyer life. The family of orientation consists of parents and siblings. From parents a personal ambition, self worth and love. Even if the buyer no longer interacts very mush with his or her parents, their influence on the buyer’s behavior can be significant and another direct influence on everyday buying behavior is the family of procreation namely one’s spouse and children.

Roles and Statues:- A person participates in many groups family, clubs, organizations. The person’s position in each group can be defined in terms of role and status. A role consists of the activities a person is expected to perform. Each role carries a status. A general manager has more status than a sales manager and a sales manager has more status than the office clerk. People choose the products that communicate their role and status in society

Personal FactorsA buyer’s decisions are also influenced by personal characteristics. These include the buyer’s age and stage in the life cycle, occupation, economic circumstances, lifestyle and personality.

Age and Stage in the life cycle:- People buy different goods and services over a lifetime. They buy the products according to their age and the different stage in the life cycle.

Occupation and Economic Circumstances:- Occupation also influences consumer buying behavior. Every person buy products on the basis of their occupation. A blue

52

collar worker will buy work clothes, work shoes etc. A company president will buy expensive suits, air travel and country club membership.

Product choice is greatly affected by economic circumstances: spend able income, saving and assets, debts, borrowing power and attitudes toward spending and saving.

Lifestyle: - People from the same subculture, social class and occupation may lead different lifestyles. A lifestyle is a person’s pattern of living in the world as expressed in activities, interests and opinions. Life style interacting with his or her environment.

Psychographics is the science of using psychology and demographics to better understand consumers.

Buyer characteristics Buyer’s decisions processCulturalSocialPersonalPsychological

Problem recognitionInformation searchEvaluation of alternativesPurchase decisionPost purchase behavior

Model of Buyer Behavior

The consumer’s shopping record is usually combined with demographic information (e.g., income, educational level of adults in the household, occupations of adults, ages of children, and whether the family owns and rents) and the family’s television watching habits.  (Electronic equipment run by firms such as A. C. Nielsen will actually recognize the face of each family member when he or she sits down to watch).

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Buyer decisions

Product choiceBrand choiceDealer choicePurchase timingPurchase amount

It is now possible to assess the relative impact of a number of factors on the consumer’s choice—e.g.

Culture and Subculture

Culture is part of the external influences that impact the consumer. That is, culture represents influences that are imposed on the consumer by other individuals.

The definition of culture offered in one textbook is “That complex whole which includes knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by man person as a member of society.”  From this definition, we make the following observations:

Culture, as a “complex whole,” is a system of interdependent components.

Knowledge and beliefs are important parts.  In the U.S., we know and believe that a person who is skilled and works hard will get ahead. In other countries, it may be believed that differences in outcome result more from luck.  “Chunking,” the name for China in Chinese literally means “The Middle Kingdom.”  The belief among ancient Chinese that they were in the center of the universe greatly influenced their thinking.

Other issues are relevant.  Art, for example, may be reflected in the rather arbitrary practice of wearing ties in some countries and wearing turbans in others.  Morality may be exhibited in the view in the United States that one should not be naked in public.  In Japan, on the other hand, groups of men and women may take steam baths together without perceived as improper.  On the other extreme, women in some Arab countries are not even allowed to reveal their faces.  Notice, by the way, that what at least

54

some countries view as moral may in fact be highly immoral by the standards of another country.  For example, the law that once banned interracial marriages in South Africa was named the “Immorality Act,” even though in most civilized countries this law, and any degree of explicit racial prejudice, would itself be considered highly immoral.

Culture has several important characteristics:  (1) Culture is comprehensive.  This means that all parts must fit together in some logical fashion.  For example, bowing and a strong desire to avoid the loss of face are unified in their manifestation of the importance of respect.  (2)  Culture is learned rather than being something we are born with.  We will consider the mechanics of learning later in the course.  (3)  Culture is manifested within boundaries of acceptable behavior.  For example, in American society, one cannot show up to class naked, but wearing anything from a suit and tie to shorts and a T-shirt would usually be acceptable.  Failure to behave within the prescribed norms may lead to sanctions, ranging from being hauled off by the police for indecent exposure to being laughed at by others for wearing a suit at the beach.  (4)  Conscious awareness of cultural standards is limited.  One American spy was intercepted by the Germans during World War II simply because of the way he held his knife and fork while eating.  (5)  Cultures fall somewhere on a continuum between static and dynamic depending on how quickly they accept change.  For example, American culture has changed a great deal since the 1950s, while the culture of Saudi Arabia has changed much less.

Dealing with culture: - Culture is a problematic issue for many marketers since it is inherently nebulous and often difficult to understand.  One may violate the cultural norms of another country without being informed of this, and people from different cultures may feel uncomfortable in each other’s presence without knowing exactly why (for example, two speakers may unconsciously continue to attempt to adjust to reach an incompatible preferred interpersonal distance).

Cultural lessons: -   We considered several cultural lessons in class; the important thing here is the big picture.  For example, within the Muslim tradition, the dog is considered a “dirty” animal, so portraying it as “man’s best friend” in an advertisement is counter-productive.  Packaging, seen as a reflection of the quality of the “real” product, is considerably more important in Asia than in the U.S., where there is a tendency to focus on the contents which “really count.”  Many cultures observe significantly greater levels of formality than that typical in the U.S., and Japanese negotiator tend to observe long silent pauses as a speaker’s point is considered.

Cultural characteristics as a continuum: - There is a tendency to stereotype cultures as being one way or another (e.g., individualistic rather than collectivistic).  Note, however, countries fall on a continuum of cultural traits.  Hofstadter’s research demonstrates a wide range between the most individualistic and collectivistic countries, for example—some fall in the middle.

55

Hofstede’s Dimensions: - Gert Hofstede, a Dutch researcher, was able to interview a large number of IBM executives in various countries, and found that cultural differences tended to center around four key dimensions:

Individualism vs. collectivism:  To what extent do people believe in individual responsibility and reward rather than having these measures aimed at the larger group?  Contrary to the stereotype, Japan actually ranks in the middle of this dimension, while Indonesia and West Africa rank toward the collectivistic side.  The U.S., Britain, and the Netherlands rate toward individualism.

Power distance:  To what extent is there a strong separation of individuals based on rank?  Power distance tends to be particularly high in Arab countries and some Latin American ones, while it is more modest in Northern Europe and the U.S.

Masculinity vs. femininity involves a somewhat more nebulous concept.   “Masculine” values involve competition and “conquering” nature by means such as large construction projects, while “feminine” values involve harmony and environmental protection.   Japan is one of the more masculine countries, while the Netherlands rank relatively low.  The U.S. is close to the middle, slightly toward the masculine side.

(The fact that these values are thought of as “masculine” or “feminine” does not mean that they are consistently held by members of each respective gender—there are very large “within-group” differences.  There is, however, often a large correlation of these cultural values with the status of women.)

Uncertainty avoidance involves the extent to which a “structured” situation with clear rules is preferred to a more ambiguous one; in general, countries with lower uncertainty avoidance tend to be more tolerant of risk.  Japan ranks very high.  Few countries are very low in any absolute sense, but relatively speaking, Britain and Hong Kong are lower, and the U.S. is in the lower range of the distribution.

Although Hofstede’s original work did not address this, a fifth dimension of long term vs. short term orientation has been proposed.  In the U.S., managers like to see quick results, while Japanese managers are known for take a long term view, often accepting long periods before profitability is obtained.

High vs. low context cultures: - In some cultures, “what you see is what you get”—the speaker is expected to make his or her points clear and limit ambiguity.  This

This is the case in the U.S.—if you have something on your mind, you are expected to say it directly, subject to some reasonable standards of diplomacy.  In Japan, in contrast, facial expressions and what is not said may be an important clue to understanding a speaker’s meaning.  Thus, it may be very difficult for Japanese speakers to understand

56

another’s written communication.  The nature of languages may exacerbate this phenomenon—while the German language is very precise, Chinese lacks many grammatical features, and the meaning of words may be somewhat less precise.  English ranks somewhere in the middle of this continuum.

Ethnocentrism and the self-reference criterion: - The self-reference criterion refers to the tendency of individuals, often unconsciously, to use the standards of one’s own culture to evaluate others.  For example, Americans may perceive more traditional societies to be “backward” and “unmotivated” because they fail to adopt new technologies or social customs, seeking instead to preserve traditional values.  In the 1960s, a supposedly well read American psychology professor referred to India’s culture of “sick” because, despite severe food shortages, the Hindu religion did not allow the eating of cows.  The psychologist expressed disgust that the cows were allowed to roam free in villages, although it turns out that they provided valuable functions by offering milk and fertilizing fields.  Ethnocentrism is the tendency to view one’s culture to be superior to others.  The important thing here is to consider how these biases may come in the way in dealing with members of other cultures.

It should be noted that there is a tendency of outsiders to a culture to overstate the similarity of members of that culture to each other.  In the United States, we are well aware that there is a great deal of heterogeneity within our culture; however, we often underestimate the diversity within other cultures.  For example, in Latin America, there are great differences between people who live in coastal and mountainous areas; there are also great differences between social classes.

Language issues: - Language is an important element of culture.  It should be realized that regional differences may be subtle.  For example, one word may mean one thing in one Latin American country, but something off-color in another.  It should also be kept in mind that much information is carried in non-verbal communication.  In some cultures, we nod to signify “yes” and shake our heads to signify “no;” in other cultures, the practice is reversed.  Within the context of language:

There are often large variations in regional dialects of a given language.  The differences between U.S., Australian, and British English are actually modest compared to differences between dialects of Spanish and German.

Idioms involve “figures of speech” that may not be used, literally translated, in other languages.  For example, baseball is a predominantly north and South American sport, so the notion of “in the ball park” makes sense here, but the term does not carry the same meaning in cultures where the sport is less popular.

Neologisms involve terms that have come into language relatively recently as technology or society involved.  With the proliferation of computer technology, for example, the idea of an “add-on” became widely known.  It may take longer for such terms to “diffuse” into other regions of the world.  In parts of the World where English is heavily studied in schools, the emphasis is often on grammar and traditional language rather than on current terminology, so neologisms have a wide potential not to be understood.

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Slang exists within most languages.  Again, regional variations are common and not all people in a region where slang is used will necessarily understand this.  There are often significant generation gaps in the use of slang.

INTERPRETATION OF DATA

1. For how long you have been associated with Maruti Brand?

6 months 1 year 2 years 4 yrs. And more8% 25% 25% 42%

58

8%

25%

25%

42%6 months

1 year

2 years

4 yrs. And more

Interpretation: - 42% people are associated with Maruti brand from 4 years and more, 25% people are associated from 1 and 2 years and 8% from 6 months.

2. Which product of Maruti do you own?

Cars Esteem Zen SX4 M 800 A star Estilo Swift Alto Wagoner90% 1% 21% 3% 31% 1% 2% 15% 18% 3%

59

48%

1%11%

2%

16%

1%

1%

8%

10%2%

Cars

Esteem

Zen

SX4

M 800

A star

Estilo

Swift

Alto

Wagoner

VAN SUV Any other6% 4% 0%

60%

40%

0%

VAN

SUV

Any other

Interpretation: - The 90% people are using the cars of Maruti in which 31% are using Maruti 800 and 21% are using Zen, Alto is on 3rd and Swift is on 4th position. 6% are using VAN and 4% are using SUV.

3. After what time interval you get your vehicle serviced?

0-3 months 3-6 months 6-9 months 9-12 months Not sure10% 52% 12% 8% 18%

60

10%

52%

12%8%

18%

0%

10%

20%

30%

40%

50%

60%

1

0-3 months

3-6 months

6-9 months

9-12 months

Not sure

Interpretation: - The 52% people get their vehicle service within 3-6 months and 18% people are not sure for service time..

4. Do you get call from the authorized service centre about due date of servicing of your vehicle?

Yes No7o% 30%

61

0%

10%

20%

30%

40%

50%

60%

70%

80%

1

Yes

No

Interpretation: - The 70% people said they get call from service centre and 30% people said they don’t get call from service centre.

5. Do they provide the on line/telephone appointment facility?

Yes No66% 34%

62

66%

34%

Yes

No

Interpretation: - 66% people said they get telephone/online appointment facility and 34% said they don’t get telephone/online appointment facility.

Category-A (Questions related with pre-service experiences)

1. After how much time you were attended to after reaching the workshop?

within 5 minutes Within 6-10 minutes More than 10 minutes Not sure24% 29% 18% 29%

63

24%

29%18%

29%

within 5 minutes

Within 6-10 minutes

More than 10 minutes

Not sure

Interpretation: - 29% people said they were attended within 6-10 minutes and 29% people are not sure, 24% people said they were attended within 5 minutes when they reached the workshop.

2. Were you provided all the information about approximate expenses to be incurred for servicing your vehicle?

Yes No80% 20%

64

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No

Interpretation: - The 80% customers said they get all information about the incurred expenses during service and 20% said they don’t get information.

3. Was the job card made in the required time period?

Yes No84% 16%

65

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1

Yes

No

Interpretation:- 84% customers said that the job card was made in required time period and 16% said No.

Category-B (Questions related with in-service process)

1. Was the service provider able to understand the problems of your vehicle properly?

Yes No90% 10%

66

Yes90%

No10%

Interpretation: - 90% customer said the service provider was able to understand the vehicle problem and 10% said No.

2. Were you advised to sit in customer lounge while your car would be serviced?

Yes No81% 19%

67

Yes81%

No19%

Interpretation:- 81% customers said that they were advised to sit in customer lounge and 19% said they were not advised to sit in customer lounge.

3. Give your views about the customer lounge.

Statement Highlysatisfied

Satisfied No comments

Dissatisfied Highlydissatisfied

a. Neatness of customer lounge

20% 55% 21% 3% 1%

b. Location/view of customer lounge

18% 53% 22% 6% 1%

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c. Facilities like TV, Reading material etc available

31% 46% 18% 4% 1%

0%

10%

20%

30%

40%

50%

60%

satis

fied

diss

atis

fied

Highly Satisfied Nocomments

Dissatisfied Highly

Neatness of customerlounge

Location/view ofcustomer lounge

Facilities like TV,Reading material etcavailable

Interpretation: - 55% customers are satisfied with neatness for customer lounge, 53% customers are satisfied with location/view of customer lounge and 46% customers are satisfied with facilities of customer lounge.

4. Were you offered Tea/Coffee and snacks in the customer lounge?

Yes No72% 28%

69

72%

28%

Yes

No

Interpretation: - 72% customers said that they were offered Tea/Coffee in the customer lounge and 28% said they were not offered.

5. Were you satisfied with washing facility and quality of washing of your car?

Yes No80% 20%

70

Yes80%

No20%

Interpretation: - 80% customers said they were satisfied with the washing quality and 20% said they were not satisfied.

6. Was the workshop having adequate infrastructure and tools to carryout the servicing of the vehicle?

Yes No86% 14%

71

0% 20% 40% 60% 80% 100%

Yes

No

Interpretation:- 86% customers said that the workshop has adequate infrastructure and tools to carryout service and 14% said they has not.

7. Did the workshop manager visit your vehicle when it was being serviced?

Yes No59% 41%

72

59%

41%

0%

10%

20%

30%

40%

50%

60%

1

Interpretation: - 59% customers said the workshop manager visits their vehicle and 41% customers said that manager didn’t visit.

Category-C (Questions related with Post services experiences)

1. Did you get the vehicle in time as you were promised?

Yes No72% 28%

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If No was explanation given to you for the delay.

Yes No13% 17%

72%

28%

13%17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

1

Yes

No

Yes

No

Interpretation:- 72% customers said they get their vehicle as time was promised and 28% customers said they don’t get their vehicle at time and 13% said explanation was given to them for delay and 17% said no explanation was given to them.

2. What do you think about payment/billing procedure?

Excellent Good Average Unacceptable18% 56% 24% 2%

74

18%

56%

24%

2%

0%

10%

20%

30%

40%

50%

60%

1

Excellent

Good

Average

Unacceptable

Interpretation:- 56% customers said that the payment/billing procedure is good and 24% said it is average and 18% said it is excellent.

3. What do you think about cleanliness and appearance of vehicle after servicing?

Excellent Good Average Unacceptable24% 56% 18% 2%

75

24%

56%

18%

2%0%

10%

20%

30%

40%

50%

60%

Excellent Good Average Unacceptable

Interpretation: - 56% customers said about the cleanliness and appearance of vehicle after servicing and 24% customers said it is excellent.

4. Was the work done according to the job card and your complaints?

Yes No78% 22%

76

78% 22%

Yes

No

Interpretation: - 78% customers said that the work was done according to job card and complaints and 22% said it was not according to job card and complaints.

5. Were you contacted after service to check your satisfaction with service done?

Yes No76% 24%

77

76%

24%

Yes

No

Interpretation: - 76% customers said that they were contacted after servicing to check satisfaction with service done and 24% said they were not contacted.

6. Do you have any kind of grievances with the authorized service station?

Yes No14% 86%

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14%

86%

Yes

No

Interpretation:- 14% customers said they have grievances about service station and 86% customers said they have not grievances.

They have given the grievances following:-1. Highly costly spare parts.2. The work should do more professionally.3. Sometimes rudely behavior shown by employees.

7. How do you rate the overall performance of Maruti regarding after sales service provided?

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied13% 69% 15% 2% 0

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13%

69%

15%2%

Highly satisfied

Satisfied

Neutral

Dissatisfied

Highly dissatisfied

Interpretation:- 69% customers said they are satisfied with the overall performance of Maruti Suzuki after sales services, 15% said Neutral and 13% said they are Highly satisfied with overall performance of Maruti.

FINDINGS

1. 42% customers are associated with Maruti brand from 4 years and more.2. 90% are using cars, 6% VAN and 4% are using SUV of Maruti.3. 52% customers get their vehicle service after 3-6 months.

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4. 70% customers get call from authorized service station for their vehicle service and 30% customers don’t get call from service centre.

5. 66% customers said service centre provides the online/telephone appointment facility.

6. 29% customers are attended within 6-10 minutes after reaching the workshop and 29% customers are not sure.

7. The 80% people get information about incurred expenses during service.8. 84% customers said that job card was made in required time.9. 90% customers said that service provider was able to understand the problem of

their vehicle.10. 81% customers were advised to sit in customer lounge.11. 53% people are satisfied with the neatness of customer lounge.12. 53% people are satisfied with location/view of customer lounge.13. 46% customers are satisfied with facilities of customer lounge and 31% said it is

excellent.14. The Tea/Coffee was provided to 72% customers in customer lounge.15. 80% customers are satisfied with washing quality of their cars.16. According to 86% customers workshop have adequate infrastructure and tool to

carryout for servicing the vehicle.17. 59% customers said that workshop manager visits their vehicle during servicing.18. 72% customers get their vehicle in time as promised.19. According to 56% customer’s payment/billing procedure and cleanliness of

vehicle after servicing is good.20. 78% customers said that work was done according to the job card and complaints.21. 76% customers were contacted after servicing their vehicle.22. 86% customers have not any kind of grievances about service centre.23. 69% customers are satisfied, 15% neutral and 13% are highly satisfied with

overall performance of Maruti.

LIMITATIONS

1. The samples were limited for survey.

2. The survey was just related with Ludhiana.

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3. This study is just related with Maruti brand.

4. Contact with some of the people can’t be made.

5. Due to shortage of time some Questionnaire can be biased.

6. It is not easy to identify the behavior the population on the basis on some samples.

7. The people have not time for giving the answer from their busy schedule.

SUGGESTIONS

1. The company has to check the entire particular or per service manual.

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2. The company has to reduce service rates to beat the private service centre.

3. The skilled employees should recruit for making better strategies for customer’s services.

4. The cost of spares parts should be on appropriated rates which should easily efforts by customers.

5. The company has to appoint good engineers to understand the technical problems of customer’s vehicles.

6. The billing procedure should be faster due to customer’s busy schedule.

7. The company should provide more facilities in customer lounge to keep them busy.

CONCLUSION

The conclusion of the study is that the Maruti is prestige brand in India and providing the different cars with different price range to customer’s to satisfy their needs. The company

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has to provide more facilities and discounts to retain existing customer and attract new customers.

AXXEXURE

1. For how long you have been associated with Maruti Brand? (Tick in appropriate box)

a).6 months b).1 years

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c).2 years d).4 years and more

2. Which product of Maruti do you own?

a).Car b).Van c).SUV d).Any other________ _________

3. After what time interval you get your vehicle serviced?

a).0-3 months b).3-6 months e).Not sure

c).6-9 months d).9-12 months

4. Do you get call from the authorized service centre about due date of servicing of your vehicle?

a). Yes b). No

5. Do they provide the on line/telephone appointment facility?

a). Yes b). No

Answer to the following questions that would help to evaluate your perception and satisfaction regarding after sales services provided by Maruti?

Category-A (Questions related with pre-service experiences)

1. After how much time you were attended to after reaching the workshop?

a). Within 5 minutes. b). within 6-10 minutes.

c).More than 10 minutes. d). Not sure

2. Were you provided all the information about approximate expenses to be incurred for servicing your vehicle?

a). Yes b). No

3. Was the job card made in the required time period?

a). Yes b). No

Category-B (Questions related with in-service process)

1. Was the service provider able to understand the problems of your vehicle properly?

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a). Yes b). No

2. Were you advised to sit in customer lounge while your car would be serviced?

a). Yes b). No

3. Give your views about the customer lounge.

Statement Highlysatisfied

Satisfied No comments

Dissatisfied Highlydissatisfied

a. Neatness of customer lounge

b. Location/view of customer lounge

c. Facilities like TV, Reading material etc available

4. Were you offered Tea/Coffee and snacks in the customer lounge?

a). Yes b). No5. Were you satisfied with washing facility and quality of washing of your car?

a). Yes b). No

6. Was the workshop having adequate infrastructure and tools to carryout the servicing of the vehicle?

a). Yes b). No

7. Did the workshop manager visit your vehicle when it was being serviced?

a). Yes b). No

Category-C (Questions related with Post services experiences)

1. Did you get the vehicle in time as you were promised?

a). Yes b). No

If No was explanation given to you for the delay.

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a). Yes b). No

2. What do you think about payment/billing procedure?

a).Excellent b). Good c). Average d).Unacceptable

3. What do you think about cleanliness and appearance of vehicle after servicing?

a).Excellent b). Good c). Average d).Unacceptable. 5. Was the work done according to the job card and your complaints?

a). Yes b). No

6. Were you contacted after service to check your satisfaction with service done?

a). Yes b). No

7. Do you have any kind of grievances with the authorized service station?

a). Yes b). No

If yes (kindly specify) ______________________________________________________________________________________________

8. How do you rate the overall performance of Maruti regarding after sales service provided?

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

Suggestions__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

BIBLIOGRAPHY

http://www.autospectator.com/cars/car-consumer-info/0034625-maruti-suzuki-ranks-highest-cutomative-customer-satisfaction-india-8th-con.

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