A PROJECT REPORT
OF Study on “Customer satisfaction towards Product and after sale services offered by Ford”
Submitted for the fulfillment of the requirement of the award of Degree of Master Of Business Administration
Under the Guidance of: Submitted by: MR Bharat Singla Roll. No: 1211016 MBA 3rd sem
Maharishi Markandeshwar Institute of Management Maharishi Markandeshwar University
1 ACKNOWLEDGEMENT
First of all, I would like to express my thanks to Mrs. Jyoti Breja for giving me such a wonderful opportunity to widen the horizons of my knowledge.
In no small measures, I would also like to gratefully thank to all those who gave me constructive suggestions for the improvement of all the aspect related to this project.
In particular, I would like to thank Mr , my research guide for her valuable suggestions and guidance.
I also owe a deep sense of gratitude to other faculty members for their continuous encouragement.
Despite all efforts, I have no doubt that error and obscurities remain that seen to afflict all research project and for which I am culpable.
2
STUDENT’S DECLARATION
This is to certify that I have completed this Project titled Customer statisfaction towards Product and after sale services offered by Ford” under the guidance of “MR” in partial fulfillment of the requirement of the award of degree of Master of Business Administration at MAHARISHI MARKANDESHWAR UNIVERSITY MULLANA AMBALA.
Bharat Singla 1211016
3 CERTIFICATE
4 EXECUTIVE SUMMARY
The Automobile Industry was came in age of Henry Ford in 1914 for the bulk production of cars. This lead to the development of the industry and it first begun in the assembly lines of his car factory. The several methods adopted by Ford, made the new invention (that is, the car) popular amongst the rich as well as the masses. The Indian passenger car market which ranks amongst the largest in the world, is poised to become even larger and enter the top five passenger car markets in the world in the next decade.
The objective of this research is to know the level of customer satisfaction with the services provided by Pearl Ford and to study the opinion of the owners of cars regarding its features like mileage, price etc.
Customer Satisfaction is a phrase used to describe a new found magic for industrial success. With the increase in customer’s demands and competition it has become a lot more important to base the entire company on customer service. When doing this one must first realize that every member of an organization plays an active role in customer service.
Ford Motor Company designs, develops, manufactures, and services cars and trucks worldwide. Pearl Ford has started its operations in year 2002 under the dynamic leadership & management.
5 INDEX
S.NO PARTICULAR PAGE NO.
1. INTRODUCTION 7 1.1 MILESTONE OF FORD 14 1.2 PRODUCT OF FORD 17 1.3 DEALER PROFILE 18 2. LITERATURE REVIEW 21
3. RESEARCH METHODOLOGY 23 3.1 OBJECTIVE OF STUDY 24 4. DATA ANALYSIS 27 5. FINDINGS 44 5.1 SUGGESTIONS 46 5.2 CONCLUSION 47 6. BIBLIOGRAPHY 48-49
7. ANNEXURE 50-54
QUESTIONNAIRE
6 CHAPTER- 1
INTRODUCTION
7 1 INTRODUCTION ABOUT THE INDUSTRY
Automobile Industry History
In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled, military tractor that made the use of a steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver Evans was the first to design a steam engine driven automobile in U.S.
A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were amongst the first to invent more applicable automobiles, making use of non-rechargeable electric batteries in 1842. Development of roads made travelling comfortable and as a result, the short ranged, electric battery driven automobiles were no more the best option for travelling over longer distances.
The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk production of cars. This lead to the development of the industry and it first begun in the assembly lines of his car factory. The several methods adopted by Ford, made the new invention (that is, the car) popular amongst the rich as well as the masses.
8 According the History of Automobile Industry US, dominated the automobile markets around the globe with no notable competitors. However, after the end of the Second World War in 1945, the Automobile Industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period, beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign automobile companies, especially those of Japan and Germany.
The current trends of the Global Automobile Industry reveal that in the developed countries the Automobile Industries are stagnating as a result of the drooping car markets, whereas the Automobile Industry in the developing nations, such as, India and Brazil, have been consistently registering higher growth rates every passing year for their flourishing domestic automobile markets.
The World Automobile Industry is turned to the developing markets.
With the developed markets almost saturated, the World Automobile Industry is now focused on the developing markets of South America and Asia, and Eastern Europe with special emphasis on BRIC (Brazil, Russia, India, and China). As per the reports of the International Organization of Motor Vehicle Manufacturers or OICA(the association of the companies involved in World Automobile Industry), for the fiscal end in 2010, the automobile manufacturers in the U.S. have been overtaken by those in Japan, in terms of the total volume of automobile units manufactured worldwide.
However, the struggling General Motors of the U.S. still remain the worldwide leaders of the World Automobile Industry, ahead of the rapidly growing Toyota Motor Corporation of Japan, by a substantial margin.
Measures to be adopted by global leaders of the World Automobile Industry.
9 Several significant economic measures are being considered by the major players of the World Automobile Industry in order to make a smooth entry into the markets of the developing countries, and to make a name for themselves. The effective measures include:
Reducing the selling prices of the automobiles manufactured in their factories
Improving the levels of after-sales services to keep customers satisfied
Opening manufacturing factories in the developing nations, to reduce effective costs of production as well as saving shipping charges, and enhancing prompt delivery of automobile units.
Automobile Industry
In keeping with the Automobile Industry Trends, the leading automobile manufacturers are turning to the Asian markets that appear set to grow immensely over the next decade. The automobile markets in the U.S., Europe and the Japan have almost matured as a result of saturation and appear set to decline through the next decade. In contrast, the automobile markets spread over the entire Asian continent (with the exception of Japan), are constantly increasing in size and will be the destination for most of the globally leading automobile manufacturers.
The Automobile Industry Trends reveal that the emerging markets of the developing nations of Asia especially China, and India are backed by their huge population growth rate, to add to the growing national economy of these two nations.
The rapid growth of the national economy of the BRIC countries (including Brazil, Russia, India, and China) has enabled a growing section of the population of these countries to purchase automobiles. Global surveys conducted recently reveal that within the next ten years, these emerging automobile markets will account for nearly a whooping 90 percent of the global automobile sales
10 growth. As a result of this, leading Automobile manufacturers of the world are setting up factories in the emerging markets, in order to serve the potential consumers better as well as reduce manufacturing and shipping costs. In addition, these arrangements are enabling the leading global automobile manufacturers to compete with the local automobile manufacturers, which were flourishing in the absence of quality competition.
The prosperity of the national economy is reflected in the rising per capita income of the developing nations. Therefore, increasing Gross Domestic Product and per capita income have raised the purchasing ability of the population that constitutes these emerging markets.
As a growing percentage of the population in the developed nations age rapidly, in comparison to the rest of the world, these aging numbers necessitate automobiles to fit the physiological change of the world population.
The Emerging India Automobile Market.
The India Automobile Market is a promising industrial sector that is growing immensely every passing year. The passenger cars are referred to, through the use of the word "automobile." The whooping growth experienced by the Indian Automobile Market in the last financial year itself that is the financial year end in February, 2011 was very close to a 38 percent over the previous fiscal. This statistical fact is a glittering example of the potential of the growing Automobile Industry in India.
As per the survey conducted by the Society of Indian Automobile Manufacturers, the total number of automobiles manufactured by the Automobile Industry in India, throughout the financial year 2010-11, was very close to the 35.5 lakh (3.5 million) margin. The huge of number of automobiles manufactured by the Automobile Industry in India was an enormous growth upon the number of automobiles manufactured during the previous fiscal that ended in 2010.
11 The total number of cars that were exported from India was very close to the 5.0 lakh (5.0 hundred thousand) margin, an encouraging sign for the Automobile Industry in India. The export of cars manufactured in India comprised nearly 33 percent of the total number of cars manufactured domestically by the Automobile Industry in India.
The India Automobile Market looks set to prosper, largely due to the growing market for automobiles that is developing in India. In the financial year that ended in February, 2009, the Indian automobile markets were the fastest growing in the world, with the registered growth rate touching nearly 20 percent.
The Automobile Industry in India mainly comprises of the small car section, which enjoys nearly a 2/3rd market share of the entire market for automobiles in India. In this respect, the Indian markets are the largest in the world for small cars, behind Japan.
The Indian passenger car market which ranks amongst the largest in the world, is poised to become even larger and enter the top five passenger car markets in the world in the next decade.
2.2 COMPANY PROFILE
Ford Motor Company designs, develops, manufactures, and services cars and trucks worldwide. It operates in two sectors, Automotive and Financial Services. The Automotive sector sells vehicles under Ford, Mercury, Lincoln, and Volvo brand names. This sector markets cars, trucks, and parts through retail dealers in North America, and through distributors and dealers outside of North America. It also sells cars and trucks to dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, this sector provides retail customers with a range of after-the-sale vehicle services and products in areas, such as maintenance and light repair, heavy repair, collision, vehicle accessories, and extended service warranty under the Genuine Ford, Lincoln-Mercury Parts and Service, Ford Custom Accessories, Ford Extended Service Plan, and Motor craft brand names. The Financial Services sector offers various automotive financing products to and through automotive dealers. It
12 offers retail financing, which includes purchasing retail installment sale contracts and retail lease contracts from dealers, and financing to commercial customers to purchase or lease vehicle fleets; wholesale financing that comprises making loans to dealers to finance the purchase of vehicle inventory; and other financing, which consists of making loans to dealers for working capital, improvements to dealership facilities, and to purchase or finance dealership real estate. This sector also services the finance receivables and leases that it originates and purchases, makes loans to its affiliates, purchases receivables, and provides insurance services related to its financing programs. Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan.
Henry Ford and Family
The story of Henry Ford is not of a prodigy entrepreneur or an overnight success. Ford grew up on a farm and might have easily have remained in agriculture. But something stronger pulled at Ford’s imagination, mechanics, and machinery, understanding how things worked and what new possibilities lay in store. As a young boy, he took apart everything he got his hands on. He quickly became known around the neighborhood for fixing people’s watches.
In 1896, Ford invented the Quadricycle . It was the first “horseless carriage” that he actually built. Its a far cry from today’s cars and even from what he produced a few years later, but in a way it was the starting point of Ford’s career as a businessman. Until the Quadricycle, Ford’s tinkering was experimental, theoretical-like the gas engine he built on his kitchen table in the 1890’s, which was just an engine with nothing to power. The Quadricycle showed enough potential that it launched the beginning of Ford’s business ventures.
Ideas into Business
Ford Motor Company was founded on June 16, 1903.The first Ford, the model A, was being sold in Detroit a few months later. When founded the Ford Motor Company was just one of 15 car manufacturers in Michgan and 88 in the US. But as it began to turn a profit within its first few months,it became clear that Henry Ford’s vision for the automotive industry was going to work and work in a big way. During the first five years of Ford Motor Company’s existence, Henry Ford, as
13 chief engineer and later as president, directed a development and production program that started in a converted wagon shop.
Henry Ford’s insistence that the company’s future lay in the production of affordable cars for a mass market caused increasing friction between him and the other investors. As some left, Ford acquired enough stock to increase its own holdings to 58.5 percent. Henry Ford became president in 1906, replacing John.S.Gray,a Detroit banker who had served as the company’s first president.
Ford Family through the Years
The years between the world wars were a period of hectic expansion. In 1917, Ford Motor Company began producing trucks and tractors. In 1919,a conflict with stockholders over the millions to be spent building the giant Rouge manufacturing complex in Dearborn, Michigan led to the company becoming wholly owned by Henry Ford and his son, Edsel, who then succeeded his father as president. After Edsel Ford passed away in 1943,a saddened Henry Ford resumed the presidency.
Henry Ford resigned for the second time at the end of World War II. His eldest grandson, Henry Ford II, became president on Sept 21,1945.Even as Henry Ford II drove the industry’s first postwar car off the assembly line, he was making plans to reorganize and decentralize the company to resume its prewar position as a major force in a fiercely competitive auto industry.
Henry Ford II provided strong leadership for Ford Motor Company from the postwar era into the 1980s.He was president from 1945 until 1960 and chief executive officer from 1945 until 1979.He was chairman of the board of directors from 1960 until 1980 and removed as chairman of the finance committee from 1980 until his death in 1987.Now,at the beginning of its second century,another Ford family member has been named CEO of Ford Motor Company, the first family member to hold the position in more than 20 years. Like his uncle, Henry Ford I, William Clay Ford Jr.(great grandson of Henry Ford) leads a company where “family” has a much broader meaning, referring to far more than just those with the last name “Ford”. Today, the Ford family comprises of employees, dealers, suppliers, shareholders, customers and more-all those who help fulfill the vision
14 Bill Ford has defined for the company: to create great products that benefit customers, shareholders and society.
HISTORY
The Dream Becomes A Business
Ford Motor Company entered the business world on June 16,1903, when Henry Ford and 11 business associates signed the signed the company’s articles of incorporation. With $28,000 in cash, the pioneering industrialists gave birth to what was to become one of the world’s largest corporations. Few companies are as closely identified with the history and development of industry and society throughout the 20th century as Ford Motor Company.
As with most great enterprises, Ford Motor Company’s beginnings were modest. The company had anxious moments in its infancy. The earliest record of a shipment is July 20, 1903, approximately one month after incorporation, to a Detroit physician. With the company’s first sale came hope –a young Ford Motor Company had taken its first steps.
Mass Production On The Line
Perhaps Ford Motor Company’s single greatest contribution to automotive manufacturing was the moving assembly line. First implemented at the Highland Part plant (in Michigan, US) in 1913, the new technique allowed individual workers to stay in one place and perform the same tasks repeatedly on multiple vehicles that passed them. The proved tremendously efficient, helping the company far surpass the production levels of their competitors-and making the vehicles more affordable.
The First Vehicles
Henry Ford insisted that the company’s future lay in the production of affordable cars for a mass market. Beginning in 1903, the company began using the first 19 letters of the alphabet to
15 name new cars. In 1908, the Model T was born.19 years and 15 million Model T’s later, Ford Motor Company was a giant industrial complex that spanned the globe. In 1925, Ford Motor Company acquired the Lincoln Motor Company, thus branching out into luxury cars, and in the 1930’s, the Mercury division was created to establish a division centered on mid-priced cars. Ford Motor Company was growing.
Becoming a Global Company
In the 50’s came the Thunderbird and the chance to own a part of Ford Motor Company. The company went public and, on Feb 24, 1959, had about 350,000 new stockholders. Henry Ford II’s keen perception of political and economic trends in the 50’s led to the global expansion of FMC in the 60’s, and the establishment of Ford of Europe in 1967, 20 years ahead of the European Economic Community’s arrival. The company established its North American Automotive Operations in 1971, consolidating U.S, Canadian and Mexican operations more than two decades ahead of the North American Free Trade Agreement.
Ford Motor Company started the last century with a single man envisioning products that would meet the needs of people in a world on the verge of high gear industrialization. Today, Ford Motor Company is a family of automotive brands consisting of: Ford, Lincoln, Mercury, Mazda, Jaguar, Land Rover, Aston Martin and Volvo. The company is beginning its second century of existence with a worldwide organization that retains and expands Henry Ford’s heritage by developing products that serve the varying and ever changing needs of people in the global community.
Significant milestones
1896: Henry Ford builds his first vehicle- the Quadra cycle- on a buggy frame with 4 bicycle wheels.
1901 : Henry Ford wins high-profile car race in Grosse Pointe, Michigan USA.
1903: Henry Ford & 11 invertors sign articles of incorporation for Ford Motor Company in Michigan, USA. The original Model A "Ford mobile" is introduced- 1,708 cars are produced.
16 1907: The Ford oval trademark was first introduced.
1908: Ford introduces the Model T, which became one of the most popular cars in the world. Production officially ended in May 1927 after total world production of 15,458,781
1913: The moving Assembly line is introduced at Highland Park assembly plant, Dearborn, making Model T production 8 times faster
1914: Ford begins offering $5 per day for eight- hour work days & 15,000 job seekers clamor for 3,000 jobs at the Model T Plant in Highland Park. The previous pay rate was $2.34 per day for nine hours.
1928: The 1928 Model A was the first vehicle to sport an early version of the Ford script in the oval badge.
1949: The '49 Ford introduces all- new post- war era cars.
1954: Thunderbird introduced as a personal luxury car with a V8. Ford begins crash testing, & opens Arizona Proving Grounds.
1956: Ford common stock goes on sale, with 10.2 million shares sold in the first day, representing 22% of the company.
1959: Ford Credit Corporation formed to provide automotive financing.
1960: Falcon introduced.
1964: Mustang introduced.
1985: Ford Taurus introduced with dramatic "aero design” styling, along with Ford aero star minivan
1987: Ford acquires 75% of Aston Martin ltd.
1992: Ford Taurus becomes America's top selling car, displaying the Honda Accord.
2004: The Ford escaped Hybrid, the first gasoline- electric Hybrid SUV, is introduced.
2007: The Ford Fusion is rated higher in quality then its chief rivals ( the Toyoto Camry & Honda Accord ), and is selling better than expected.
2007: Ford Mustang 2009 & Ford Ka 2009 were introduced to the worlds markets.
17 Ford In India
1926: Ford India is established by Ford Of Canada.
1935: Indian govt officials ask Henry Ford to consider building a car manufacturing plant in Bombay.
1941 : Mahatma Gandhi sends spinning wheels, the symbol of India's economic independence, to Henry Ford.
1954: Ford India operations cease.
1969: Ford reenters India in a joint venture with Escords Ltd to produce Tractors.
1991: Ford ceases Tractor operations. Ford establishes climate systems India, a joint venture with Maruti & Sumitomo Corporation.
1995 (Nov): Ford & M&M received govt approval on joint venture called Mahindra Ford India Ltd (MFIL).
1996 (Sept): Ford Escort receives more than 70,000 sales booking.
1996 (Oct): Mahindra Ford makes history in India by simultaneously handing over the first cars in 7 cities just 1 month after close of bookings.
1997 (Nov): Ford Escort chosen best quality cars in JD Power's India Initial Quality Surveyt (IIQS).
1997 (Dec): MFIL tops JD Power's customers satisfaction index (CSI).
1998: The company was remanded Ford India. With a steady increase of Ford’s investments, the equity levels stands presently at 85:15.
1999: Ford India inaugurated the fully integrated manufacturing facility in Maraimalai Nagar and launched Ikon.
1999 (July): Ford India lays the Foundation stone for an export plant. The export plant will source auto components locally and assemble kits to export to oversee market.
18 2001 (Nov): Ford India Launched the Ford Mondeo.
2003 (Sept): Ford Endeavor debuts in India.
2004: Ford Fusion debuts in India.
2005: Fiesta Launched with fan fare in India.
2006: Ford India marks 87% growth in sales.
2008: Ford commits itself to India with an investment of $375 million.
2008: Ford India starts assembly of its diesel DV 4 engine from a new plant at Maraimalai Nagar.
2008: Ford launches the New Fusion+, Endeavour and Endeavour Thunder+, New Fiesta and recently Ikon.
2010: Ford launches its first Hatchback car Figo. With Figo, Ford launched the first in class Bluetooth technology.
2011: Classic was launched.
2012: Ford launched the first global car New Fiesta.
2012: Ford introduced the Automatic Variant of new Fiesta POWERSHIFT.
2013: Ford launches its new car Eco Sport.
2015: ford Figo Aspire coming soon.
PRODUCT OF FORD MOTORS
Ford Fiesta
Ford Figo
19 Ford Endeavour
Ford Ecosport
Ford Fiesta classic
20 DEALER PROFILE
PEARL FORD
Pearl Ford has started its operations in year 2002 under the dynamic leadership & management of Mr. Pawn Gupta.
The group has dealerships of Ford in four locations -;
Karnal,
Ambala
Yamunanagar
Kurukshetra .
Functioning Of Different Departments
H.R Department:- To appoint right person at right place at right time. Accounts Department:- To provide actual position of the company to the manager with prepared P&L a/c, Balance Sheet & Financial statement. Sales Department:- To study the Need & Budget of the customers and deliver the Product accordingly. Finance Department:- To provide insurance/finance/loan /credit facilities to the potential customers. Service Department:- To provide proper Service in an effective and efficient manner. Customer Care:- To increase the customer satisfaction level.
SOURCE OF FINANCING
21 HDFC Bank
SBI Bank
ICICI Bank
Axis Bank
SWOT Analysis
STRENGTHS:-
Pearl Ford Motors recorded the strongest as well as effective operation performance in 2010
It has strong brand portfolio.
Has wide network of distributors and dealers.
High employee productivity.
WEAKNESSES:-
It has a very small share of market which results in a great loss to the company.
Due to Product recalls, Ford’s brand image was also harmed and thus the company suffered a lot.
Declining operating efficiency and weak returns.
It have a very small share market
OPPORTUNITIES:-
22 It termed as environment friendly.
Various products were predicted to switch towards the hybrid electric engines.
Well researched programs are under consideration in order to gain more popularity.
Restructuring plan was launched in order to improve the performance.
THREATS:-
Rising oil prises are one of the major contributors towards the loss of the company.
Rise in competition is one of the major threats towards the productivity of the company.
Working with different techniques is one of the major threats.
Rising raw material prices.
23
CHAPTER-2
LITERATURE REVIEW
LITERATURE REVIEW
Concept Identification-
24 As organizations become increasingly customer focused and driven by demand, the need to gain customer loyalty and retain their loyalty is critical. Customer satisfaction is the most effective way to achieve customer loyalty. Customer satisfaction and customer loyalty share many similar traits. Customer value is the customer’s perception of the ratio of benefits to what he or she gives to obtain those benefits. The customer Value Triad is a framework used to understand what it is that customers want. The framework consists of three parts: (1) perceived product quality, (2) value- based pricing, and (3) perceived service quality.
Customers are satisfied, when value meets or exceeds expectations. If their expectations of value are not met, there is no chance of satisfying them. Figuring out what the customers want, however, is a difficult and complex process. To be able to create and deliver customer value is important to understand its components. On the most basic level, value from a customer’s perspective is the ratio of benefits to the risks being taken while buying the product.
CUSTOMER SATISFACTION
AN INSIGHT
According to Harold E Edmondson “ Customer Satisfaction” seems to appear in print more frequently than any other catch phrase used to describe a new found magic for industrial success. Before we proceed in to the study of the dynamics of Customer Satisfaction it is important to know about, who a customer is and what satisfaction really means.
Who really is a Customer?
The question of defining who your customers are seems fairly easy particularly if you have segmented your market properly and understand who you are trying to satisfy. However subtlety that frequently goes undetected by many firms is that is that customer set can be divided into two parts, the apparent customer and the user. The apparent customer is the person or group of people who
25 decide what product to buy and basically have control over the purse strings. The user is a person or group who physically uses the product or is the direct recipient of a service.
What does satisfaction really mean?
As in defining customer above, defining satisfaction also appears simple. However as with customer there is a subtlety that needs addressing. Satisfaction by most definitions simply means meeting the customer’s requirement.
Customer satisfaction is a concept that more and more companies are putting at the heart of their strategy, but for this to be successful they’re needs to be clarity about, what customer satisfaction means and what needs to happen to drive improvement. Without this, there is a risk that customer satisfaction becomes little more than a good intention, with confused objectives failing to address the real issues for customers, one helpful way to look at the problem is to rephrase the objectives: set the sights on helping the customers meet their goals.
Customer satisfaction can be defined in many different ways. Finding the right way for a company depends on understanding your customer and on having a clear vision of the role that customer satisfaction is to play in the strategy. For example, a focus on customer satisfaction can work alongside existing segmentations to support revenue generation from high value customers or it can be a company-wide objective rooted in the brand values. For the former, it may be sufficient to focus on improving customer service, but for the latter a broader definition of customer satisfaction is necessary, closer akin to corporate reputation.
Whatever the strategy for customer satisfaction, it must at least include getting the basics right. Failing to achieve this can destroy the reputation as well as losing valuable customers. Every customer, regardless of their economic worth to the business, has the power to influence – positively or negatively – a company’s reputation. Once the objectives for the customer
26 satisfaction strategy are defined there are a number of steps we can take to make sure the focus on customer satisfaction is effective.
Building a company around Customer Satisfaction -
With the increase in customer’s demands and competition it has become a lot more important to base the entire company on customer service. When doing this one must first realize that every member of an organization plays an active role in customer service. This includes both external customers and internal customers within a company.
Customer focused organizations focus both on customer satisfaction and profit. Achieving customer satisfaction generates the profit. In these organizations top management has frequent contacts with external customers. The top management uses consultative, participative, and supportive management styles to get through to the customer. The staff focuses all of its attention on satisfying the customer’s needs. However, the management’s job is to provide the staff with support necessary to achieve these goals. The other department and staff in the organization that do not have direct contact with the external customers deal exclusively with internal customer satisfaction.
The Influence of the salesperson in Customer Satisfaction-
In an article titled, “The influence of salesperson selling behavior on customer satisfaction with products,” Brent G.Goff and James S. Boles examine the effects of non-product related construct on customer satisfaction with major retail purchases such as automobiles. The article states that salesperson’s selling orientation- customer orientation (SOCO) will affect not only consumer satisfaction with the salesperson and dealer, but also indirectly, satisfaction with the product or manufacturer.
In the perspectives of both the retailer and the manufacturer, customer satisfaction represents an important issue because it relates to several desirable outcomes. Customer satisfaction
27 leads to future purchases, and repeated purchases of the same product from the same source. In other words, it helps a firm retain its present customers and build loyalty. By helping a buyer obtain product information and providing guidelines about what should be expected during the buying process and use of a product, a salesperson may influence customer expectations concerning the product. Thereby this may reduce the likelihood of dissatisfaction (Grewal and Sharma, 1991). A successful salesperson tailors to the needs of each individual customer. By being customer-oriented, a salesperson is likely to identify with needs of the customer, enabling the salesperson to match his or her presentation to those requirements of the customer.
Internal marketing – how it affects Customer Satisfaction –
Successful companies make every effort to ensure satisfaction to their customer by focusing all organizational efforts of the company on providing superior customer service. By doing this these companies hope to retain their existing customers and attract new ones. Only angle of customer satisfaction commonly overlooked is the internal aspect.
The internal customer or employee plays a vital role in achieving customer satisfaction and loyalty. Some firm’s do not understand that the treatment of internal customers becomes the external customers’ perception of the company. A firm’s employees or other departments within the organization make up its internal customers. Their job performance affects the firm’s ability to deliver superior product and customer service (Boone and Kurtz, 1999). When a firm’s employees are happy at work, their overall attitude and performance towards the customer enhances tremendously. Internal marketing helps members or employees of an organization understand and fulfill their roles in implementing its marketing strategy. Internal marketing not only keeps employees happy, it also shows them how their actions affect the firm’s ability to achieve customer satisfaction.
28 CHAPTER-3
RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY
29 The study has been undertaken with the main objective to know the satisfaction level of the consumer with the products and after sale services of the vehicles. The other specific objectives are:
To know the level of customer satisfaction with the services provided by Pearl Ford, kernal.
To study the opinion of the owners of cars regarding its features like mileage, price etc.
To study the effect of advertisement on the customers to promote the produc
To give suggestions to improve customer satisfaction
30 RESEARCH METHODOLOG Y
Research is a careful investigation or inquiry especially through search for new facts in branch of knowledge: market research specifies the information. Required to address these issues: designs the method for collecting information: manage and implements the data collection process analyses the results and communicates the finding and their implications. Research problem is the one which requires a researcher to find out the best solution for the given problem that is to find out the course of action, the action the objectives can be obtained optimally in the context of a given environment.
This chapter aims to understand research methodology establishing a framework of evaluation and re-evaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings,which are also dealt with and lead to a logical deduction towards the analysis and results.
TYPE OF RESEARCH DESIGN:
EXPLORATORY CUM DESCRIPTIVE RESEARCH The research I conducted is exploratory as well as descriptive. Exploratory research involved collection of data from primary and secondary sources. Data Collection: - The objectives of the project are such that both primary and secondary data is required to achieve them. So both primary and secondary data was used for the project. The mode of collecting primary data is personal interview and sources of secondary data are various magazines, books, newspapers, & websites etc.
1. Primary Data: The primary data was collected to measure the vehicles coming for repair in workshop and their frequency of coming. The primary data was collected by means of personal interview and analysis was done on the basis of response received from the customers. The interview has been conducted in such a manner that the consumer’s satisfaction level can be measured and consumer can enter his responses easily.
31 2. Secondary Data: The purpose of collecting secondary data was to achieve the objective of studying the recent trends and developments taking place in cargo vehicles.
SAMPLE SIZE I have targeted 100 people in the age group of above 21 years for the purpose of the research. The target population influences the sample size. The target population represents karnal region. Analysis and Interpretation
After the data collection, it was compiled, classified and tabulated manually and with help of computer. .
LIMITATIONS OF THE STUDY
1. Limited scope
The survey was conducted in karnal thus the respondents belonged to only this region of the country. This could have brought bias into the study.
2. Assumption for the purpose of analysis
Some assumptions were made while doing analysis and interpretation; there could be few limitations in regard to these.
3. Limited Time and Resources
Limited time and the resources resulted in many discrepancies
32 CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION
33 1). Which of the following Ford car you own? a) Fiesta Name of the car % of customers b) Figo figo 35 c) Endeavour fiesta 22 d) EcoSport Endeavour 18 Ecosport 25
Data analysis:
35 30 25
20 figo Fiesta Endeavour Ecosport 15 10 5 0 % of customers
Interpretation: This question is meant for taking the information regarding the most preferred car in the Ford cars. From the above graph it is found that most preferred vehicle of Ford cars is Figo
34 2). What do you like most about your Ford car? a) Style/design Customers preference % of customers b) Comfort Style/design 18 c) Ford brand Comfort 46 d) Service Ford brand 26 Service 10
Data analysis:
Interpretation: This question is meant to know the customers preferences and likes towards the cars. From the data we can position our product to the comfort seeking group of people.
35 3).What do you feel great about your car when compared to other cars in the market?
a) Fuel efficiency Customers perspective % of customers b) Durability Fuel efficiency 4 Durability 14 c) Low maintenance Low maintenance 18 d) Sound quality Sound quality 24 Brand name 40 e) Brand name
Data analysis:
40 35 30 Fuel efficiency Durability Low maintenance Sound quality 25 % of customers 20 15 10 Brand name 5 0 customer prespective
Interpretation: From this question we can position the cars according to the customer’s perspectives. Many of the Ford customers are buying the cars by seeing its Brand Name only. The no. of customers satisfied with the fuel efficiency are very low.
36 4). How did you come to know about this car before purchasing? a) From friends, relatives (buzz) Source of awareness No. of b) Advertisements customers c) Car experts Friends, relatives 18 Advertisements 50 d) Sale’s persons visit Car experts 6 e) Auto magazines Sale’s persons visit 16 Auto magazines 10
Data analysis:
Interpretation: Most of the Ford customers came to know about their vehicle through advertisements only. The major media that attracted the customers is television.
37 5).Can you share your experience with after sale service support. a) Very much satisfied Post service No. of b) Satisfied experience customers c) Ok Very much satisfied 12 Satisfied 30 d) Not satisfied Ok 50 Not satisfied 8
Data analysis:
60
50
40
No. of customers 30 Very much satisfied Satisfied Ok Not satisfied
20
10
0
After sale service experience
Interpretation: This question is prepared to know the service levels of the authorized dealer. Most of the customers are just telling ok about the service. Only a very few customers are very much satisfied with the service. Even some of the customers are not satisfied with the service given by the authorized service men.
38 6). Where do you get your car serviced regularly? a) At authorized Place of service No. of service centre b) At a local customers workshop near my home At authorized service centre 82 At a local workshop near 18 home Data analysis:
customers preference for service centres
82% at authorised service centre At a local workshop near home 18%
Interpretation: Most of the Fortune Ford customers are interested to service their vehicles only at the authorized dealers. From this we come to know what the importance of authorized service centers for car is.
39 7. From where did you heard about this workshop?
(1) Magazines. (2) Newspapers. (3) Television. (4) Local advertisement. (5) Others.
Response % of customers
Magazines 10
Newspapers 33
Television 6
Local advertisement 46
Others 5
DATA ANALYSIS:
40 % of customers
50 40 30 % of customers 20 10 0
INTERPRETATION: Most of the people got information about this workshop through local advertisement, followed by newspapers and magazines.
8. How long you are coming to this workshop?
(1) Less than six months. (2) Six month to one year. (3) One year to two years. (4) More than two years.
Duration of visiting the workshop Response
Less than six months 10
Six month to one year 45
One year to two years 32
More than two years 13
41
DATA ANALYSIS:
Response
Less than six months Six month to one year One year to two years More than two years
INTERPRETATION: Majority of the customers (45%) are visiting the workshop from six months to one year, this is followed by one to two year old customers of Ford.
9. Are you satisfied Satisfaction with free service plans % of customers with the company’s free service Very dissatisfied 2 plans? (1) Very dissatisfied Somewhat dissatisfied 9
(2)Somewhat Neither satisfied nor dissatisfied 4 dissatisfied
Very satisfied 30 42
Somewhat satisfied 55 (3)Neither satisfied nor dissatisfied
(4) Very satisfied
(5)Somewhat satisfied
DATA ANALYSIS:
% of customers
Very dissatisfied Somewhat dissatisfied
Neither satisfied nor dissatisfied Very satisfied Somewhat satisfied
INTERPRETATION: Majority of the customers are moderately satisfied with free service plans offered by company and notably this is more than half of the respondents. This is followed by extremely satisfied customers which forms a significant 30%.
10. Do you agree that the services are done on time?
(1) Very much disagree (2) Somewhat disagree
43 (3) Neither agree nor disagree (4) Very much agree (5) Somewhat agree
Response regarding timely service % of customers
Very much disagree 3
Somewhat disagree 35
Neither agree nor disagree 3
Very much agree 20
Somewhat agree 39
DATA ANALYSIS:
% of customers
50 40 30 20 10 0 % of customers
44 INTERPRETATION: 39% of the customers moderately agree on timely service issue. There are 35% of customers who moderately disagree, customers who very much agree are 20% while very much disagreeing customers are only 3%.
11. Which problem you face when you come for the service?
(1) Timeliness (2) Customer relationship (3) Infrastructure (4) Others
Problems faced % of customers
Timeliness 62
Customer relationship 23
Infrastructure 10
Others 5
DATA ANALYSIS:
45 % of customers
timeliness customer relationship infrastructure others
INTERPRETATION: The timeliness issue is complained by 62% of customers during the servicing of the vehicles, followed by 23% customers who have customer relationship issues. The workshop must address these issues seriously.
12. How will you rate the Company in maintaining good customer relationship?
(1) Good
(2) Average
(3) Poor
Maintaining good customer relationship % of customers
Good 35
Average 58
46 Poor 7
DATA ANALYSIS:
% of customers
60 50 40 % of customers 30 20 10 0 Good Average Poor
INTERPRETATION: In maintaining good customer relationships, the majority (58%) rated the company as average. Only 7% rated the company poor in this case.
13. Are you satisfied with the service charges?
(1) Yes
(2) No
(3) Neither yes nor no
Response regarding service charges % of customers
47 Yes 32
No 55
Neither yes nor no 13
DATA ANALYSIS:
% of customers
Yes No Neither yes nor no
INTERPRETATION: More than half of the respondents were not satisfied with the service charges. Only 32% find these charges reasonable.
14. Will you want to come for service next time?
(1) Yes
(2) No
48 (3) Can’t say
Response % of customers
Yes 63
No 17
Can’t say 20
DATA ANALYSIS:
% of customers
Yes No Can’t say
INTERPRETATION: 63% customers told that they would come again for getting their vehicle serviced the next time, followed by 20% who were unsure whether they would come or not.
15. If you don’t come again, then what is the reason behind this?
(1) Poor timing.
49 (2) Infrastructure
(3) Poor dealing of Employees
(4) Others
Reason for not visiting again % of customers
Poor timing. 64
Infrastructure 10
Poor dealing of Employees 13
Others 13
DATA ANALYSIS:
% of customers
Poor timing.
Infrastructure Poor dealing of Employees Others
50 INTERPRETATION: Again, poor timing remains the biggest reason for annoyed customers, who won’t come for service the next time. This is followed by poor dealing of employees and other reason.
51 CHAPTER- 5
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS
52 1. The proportion of customers who like ‘service’ factor in their Ford vehicle the most is extremely low (only 10%). This clearly indicates the dissatisfaction level of customers with the service of Ford vehicles.
2. However among other variables, the brand name is liked the most, followed by the comfort factor. Many of the Ford customers buy the cars because of the trusted brand name. This gives us an insight of the relationship between the company and the customers.
3. The after sale services don’t please the customers much. The extremely satisfied customers were as low as 12%. The highest proportion of customers consisted of moderately satisfied customers constituting 50%
4. Interestingly 82% of customers prefer only authorized Ford dealers for getting their Ford vehicle serviced which is inspiring.
5. Regarding the preference of customers relating to vehicle they want to buy, Ford Figo tops the list among other cars.
6. Notably, a significant proportion of people attach comfort feature with the Company’s cars. So the Company can advantageously position its products to the confort seeking group of people.
7. Extensive advertisement has helped the Company to popularize its brand name among the people.
8. Majority of the customers (45%) are visiting Pearl Ford from six months to one year, this is followed by one to two year old customers of Ford.
9. But unfortunately, the proportion of customers who have been visiting this agency from more than two years is very low (only 13%). This shows that majority of customers sell their Ford vehicle and shift their preference to other brands after around 2 years.
10. Majority of the customers are satisfied with the procedure of the service, but still the proportion of customers who want change in the procedure is as high as 43%. This calls for better strategic planning.
11. The timeliness issue is complained by 62% of customers during the servicing of the vehicles, followed by 23% customers who have customer relationship issues.
12. In maintaining good customer relationships, the majority (58%) rated the company as average.
53 13. Around 55% of the respondents were not satisfied with the service charges.
SUGGESTIONS
1. Pearl Ford must address the timeliness issue during servicing the vehicles.
2. Strategies on Customer Relationship Management need to be framed and implemented.
3. Pearl Ford should reduce the service charges, as more than half of the respondents find them to be unreasonable.
4. The after sale services need to be improved.
5. Since majority of customers sell their Ford vehicle and shift their preference to other brands after around 2 years, the company should seriously take this fact into consideration.
6. Changes need to be incorporated in the procedure of the service.
CONCLUSION
In the nutshell, it can be concluded that the brand name rules the heart of the customers. Ford Fiesta is the most favorite car among other Ford vehicles. Unfortunately, majority of customers sell their Ford vehicle and shift their preference to other brands after around 2 years. This indicates poor strategic planning. The after sale services of the dealer also need improvements. The dealer should seriously take this into consideration for its long run survival and success. Strategies need to be formulated to have an edge over the competitors.
Ford is one of the top car brands in the world and customers attach expectations with it. However, not most of the customers are pleased with its services. The company needs to keep in mind that the customer is the king, and his satisfaction should be the topmost priority of the company. But the revelations of the research don’t present a very good picture. I hope the company draws benefits
54 from this report and understands the value of perception of its esteemed customers and make the required improvements.
Finally, I would like to mention that this project has given me an idea of handling real situations. I have made my sincerest efforts to complete this work with as much perfection as possible
55 CHAPTER -6
BIBLIOGRAPHY
56 1) www.Fordmotors.com 2) www.autocar.com 3) www.overdrive.in 4) http://bhagatgroup.com/Ford-index.htm 5) Magazines- Autocar India, Topgear, WhatCar, Car n Style 6) Newspapers- Economic Times Zigwheels 7) Journals- India Overdrive, Fastrack
57 CHAPTER-7
ANNEXURE
58 A. QUESTIONNAIRE
CUSTOMER SATISFACTION INDEX
Details:
Vehicle No: ______
Model: ______
Customer Name: ______
Telephone No: ______Mobile:______
Date: ______Customer signature: ______
1. Which of the following ford car you own ?
a) figo b) fiesta c) endavour d) Ecosport
2. What do you like most about the car?
a) Style/design b) Comfort c) Ford brand d) Service
3. What do you feel great about your car when compared to other cars in the market ?
59 a) Fuel efficiency ( )
b) Durability ( )
c) Low maintenance ( )
d) Sound quality ( )
e) Brand name ( )
4. How did you come to know about this car before purchasing ?
a) Friends , relatives ( )
b) Advertisements ( )
c) Car experts ( )
d) Sale person visit ( )
e) Auto magazines ( )
5. Can you share your experience with after sale services support.
a) Very much satisfied ( )
b) Satisfied ( )
c) Ok ( )
d) Not satisfied ( )
60 6. Where do you get your car serviced regularly ?
a) At authorized service centre
b) At a local workshop by home
7. From where did you heard about Pearl Ford?
Magazines. ( ) Newspapers. ( ) Television. ( ) Local advertisement. ( ) Others. ( )
8. How long you are coming to Pearl Ford?
Less then six months. ( ) Six month to one year. ( ) One year to two years. ( ) More then two years. ( ) 9. Are you satisfied with the company’s free service plans?
(1) Very dissatisfied ( )
(2) Somewhat dissatisfied ( )
(3) Nether satisfied nor dissatisfied ( )
(4) Very satisfied ( )
61 (5) Somewhat satisfied ( )
(5) Somewhat agree ( )
10. Do you agree that the services are done on time?
(1) Very disagree ( )
(2) Somewhat disagree ( )
(3) Nether agree nor disagree ( )
(4) Very agree ( )
(5) Somewhat agree ( )
11. Which problem you face when you come for the service?
1) timeliness ( ) 2) customer relationship ( ) 3) infrastructure ( ) 4) others ( )
12. How will you rate the company in maintaining good customer relationship?
(1) Good ( )
(2) Average ( )
(3) Poor ( )
13. Are you satisfied with the service charges?
(1) Very dissatisfied ( )
(2) Somewhat dissatisfied ( )
62 (3) Nether satisfied nor dissatisfied ( )
(4) Very satisfied ( )
(5) Somewhat satisfied ( )
Q14. Will you want to come for service next time?
(1) Yes ( )
(2) No ( )
(3) Can’t say ( )
15. If you don’t come again, then what is the reason behind this?
(1) Poor timing. ( )
(2) Infrastructure ( )
(3) Poor dealing of Employees ( )
16.Please give your comments/suggestions to enable us to improve satisfaction of customers at this Ford authorized showroom.
63 ______
______
THANK YOU FOR YOUR VALUABLE OPINIONS
64