Description
A customer is the recipient of a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration.
A STUDY ON COUSTOMER SATISFACTION WITH RERFERENCE TO SHRIRAM CHITS PVT. LTD., PULIVENDULA, ANDHRA PRADESH. A FULL TIME PROJECT REPORT
Submitted in partial fulfillment for the award of The degree of
MASTER OF BUSINESS ADMINISTRATION OF MADRAS UNIVERSITY
Submitted By N. VIVEKANANDA REDDY
(Regd.no. MB 20273)
Under the Esteemed guidance of
THANGAVELU COLLEGE OF SCIENCE & MANAGEMENT (Affiliated to Madras University) OLD MAHABALIPURAM ROAD KARAPARKAM CHENNAI – 96 TAMIL NADU
April 2004
CERTIFICATE
This is to certify that the project titled “A STUDY ON CUSTOMER SATISFACTION WITH REFERENCE TO SHRIRAM CHITS PVT. LTD.” Is a bonafied record of work carried out by N. VIVEKANANDA REDDY (Reg.No. MB 20273) in partial fulfillment of the requirements for the Award of the degree “Master of Business Administration, University of Madras”, during the month of April and the he has
prepared the project under my guidance.
RAMANI HOD
KAVITHA Project Guide.
ACKNOWLEDGEMENT I sincerely place my thanks to M. MALLIKARJUNA for providing me with opportunity to undertake project work in the company. I would like to express my sincere and deep sense of gratitude to KAVITHA Whose expert advice enabled me to accomplish the project work successfully. I am deeply indebted to my Guide, KAVITHA for his valuable guidance and for his enthusiastic and continue encouragement, which helped me to complete my project successfully. My sincere thanks go to all my friends, family members who encouraged me in every aspect of the project.
N. VIVEKANANDA REDDY (MB 20273)
DECLARATION N. VIVEKANANDA REDDY full time student of TCSM has under signed here by declare that this full – time Project Report entitled ‘ A STUDY ON CUSTOMER SATISFACTION WITH REFERENCE TO SHRIRAM CHITS PVT. LTD., PULIVENDULA, A.P ’ Submitted to the University of Madras has been prepared by me Personally with the help and timely cooperation of the Staff of SHRIRAM CHITS PVT. LTD., and With the guidance from KAVITHA, and this report has not been submitted to any other university for the fulfillment of any other course.
STATION : PULIVENDLA DATE : 22-03-04
N. VIVEKANADA REDDY (Reg.No. MB 20273)
CHAPTER NO
TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES
PAGE NO
CHAPTER – 1
INTRODUCTION 1.1 GENERAL 1.2. INDUSTRY PROFILE 1.3 COMPANY PROFILE 1.4 PRODUCT PROFILE RESEARCH METHODOLOGY AND DESIGN 2.1 STATEMENT OF OBJECTIVES 2.2 DATA COLLECTION 2.3. SAMPLING PROCEDURE 2.4. SAMPLE SIZE 2.5. PERIOD OF STUDY 2.6. QUESTIONNAIRE DESIGN 2.7. PILOT SURVEY 2.8. LIMITATION OF THE STUDY
CHAPTER-2
CHAPTER – 3
ANALYSIS AND INTERPRETATION 3.1 DATA ANALYSIS AND INTERPRETATION 3.2 STATISTICAL ANALYSIS SUMMARY OF FINDINGS RECOMMENDATION & CONCLUSION 5.1 RECOMMENDATION & SUGGESTIONS 5.2 CONCLUSION ANNEXURE BIBLIGOGRAPHY
CHAPTER – 4 CHAPTER –5
Table No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 14.1 14.2 15 16
Title Period of customer No of chits paying Monthly payment Reason for investing Reason for becoming investor Opinion about security Level of satisfaction with staff service Present level of bidding Will you recommend Shriram chits to friends Advertising strategy suggested Promotional strategy suggested Improving Shriram chits Using any other chit funds Satisfied with Shri Ram chits services Reason for satisfaction Reason for dissatisfaction Length of customer ship vs. Number of chits Advertising strategy vs. promotional strategy
Page No
LIST OF FIGURES Figures no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 14.1 14.2 Title Period of customer No of chits paying Monthly payment Reason for investing Reason for becoming investor Opinion about security Level of satisfaction with staff service Present level of bidding Will you recommend Shriram chits to friends Advertising strategy suggested Promotional strategy Suggested Improving ShriRam chits Using any other chit funds Satisfied with Shri Ram chits services Reason for satisfaction Reason for dissatisfaction Page no
SYNOPSIS
Shriram chits started its operations in the year 1974, started by Thyagarajan (chairperson) and Duruvasan (M.D) with a single Branch at Chennai and has in a short span grown into a trusted Household name for making chits available from of saving and Borrowing to all sections of the society. Shriram now has a Turnover exceeding Rs. 2500 Crores, 465 branches around 4 States and 5000 employees. Shriram chits has to date disbursed over Rs. 8000 Crores as Prize money. Shriram chits operate in four states. Tamilnadu, Andhra Pradesh Karnataka and Maharashtra, where it has a Reputation for timely disbursement of funds and excellent Customer service that differentiates it from other companies. At the SHRIRAM “They add a customer every 3 seconds.”
1.1
GENERAL
NEED FOR THE STUDY : Though chit is a traditional method of financing. This study which gives a broad idea about customers in chits. At present scenario customers are not satisfied in the chits because due to rapid growth bogus chit funds to know the satisfaction level of the customers in SHRIRAM CHITS, I preferred to do this study.
SCOPE FOR THE STUDY :
1. This study helps To assess the strength and weakness of SHRIRAM CHITS and also it helps to comparing its position among its competitors. 2. To assess the level of satisfaction with SHRIRAM CHITS and so that corrective action can be taken needed. 3. To work out strategies for improving the volume of business and market standard of SHRIRAM CHITS including promotional and advertising strategy.
1.2
INDUSTRY PROFILE :
‘Chit’ means a transaction where chit, chit fund, chatty, kury or by any other name or under which a person enters into an agreement with a specified number of persons that every of them shall subscribe a certain sum of money by way of installments over definite period and each such subscriber shall, in turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, the entitle to the price amount. Chit fund in a contract between the foreman, as the promoter is called, and the subscribers, who joined voluntarily. It is a financial system
under which the periodical and regular saving of a group of subscribers are made available to each subscriber in turn on an agreed basis. A specified amount every month of a specific period. The pooled funds every month are offered to the subscribers at monthly auctions and the subscriber who bids for the highest discount is declared the prizewinner and given the price amount on proper security. A priced winner also continued to pay the subscriptions till termination of chit. The amount foregone as discount less foreman’s commission is distributed among the subscribers as dividend.
1.3
COMPANY PROFILE :
A multi-locational, multi dimensional Rs 4000 organization, serving 36 laks customers from its all India network of 580 branches. The group is a player in the financial services sector. trucks amounting to Rs 1400 crores. At the SHRIRAM “They add a customer every 3 seconds.” An end result achieved through a single focus of innovation…. Developing products and services strategies based on a customer need. Financially, the SHRIRAM CHITS has a strong understanding of the fundamentals, the spirit of which is aptly captured in its corporate slogan “We understand It has successfully raised investments in access of Rs 1400 crores and has financed over 50,000
money well.. and people even better”, SHRIRAM today has acquired a significant national presents in the field of financial services. It has also successfully development. In the true spirit of globalization, SHRIRAM has numerous international tie-ups-Mitsubishi and Arai seisakusho-Japan, Emson research in & Tower Tech INC-USA, ITT way ASSAUTO-Italy and Cylinco group-Srilanka among others. And every of them is a success story with a tremendous potential to further entrench SHRIRAM’S credentials and interest in the subcontinent. The products / Services of the group companies can be grouped the following categories FINANCIAL SERVICES : • Truck Financing • Online Share Trading • Insurance • Chit Funds diversified into industry transport and property
Truck Financing :SHRIRAM investments Ltd (SIL), SHRIRAM Transport Finance Company Ltd (STFC) & SHRIRAM City Union Finance Ltd (SCUFF) are three major truck financing companies of SHRIRAM group. With loan disbursements of over Rs 1400 crore in truck financing with a recovery rate of 98.6 % & an interest earning of 27.4% we enjoy a leadership position in the truck financing sector. Online Share Trading : In sight share brokers (P) Ltd, (member national stock exchange) a company of the group provides online trading of shares and stocks.
Insurance : Insurance marketing as tied up with major national / international players to offer the best customaries insurance solutions for the retail customers. Chit funds : The chit fund is a form of organizing credit on a co-operative basis. SHRIRAM CHITS, established in 1974, with a small investment of Rs 0.1 million, has grown to become the largest organization of its kind in India. Despite the huge size and spread of operation, the collection efficiency is of a very high order (99%), mainly due to the excellence of the managerial culture that has been created over the last 28 years. SHRIRAM CHITS today has evolved into a massive movement, which touches lives of the millions of subscribers satisfying their diverse credit requirements.
1.4
PRODUCT PROFILE : The purpose of the chits is to inculcate and encourage the habit of thrift and there by extend the compulsory savings.
Now a days there are so many other chit fund companies also existing in the market. They are SHRIRAM CHITS, SAHARA INDIA, SUCHITRA SRIRAM CHITS is having nice position in the rural CHITS and so on.
sector and captured better position compared with other chits.
The following are different types of research design. 1. 2. 3. 4. Exploratory research design Descriptive research design Diagnosis research design Experimental research design
Descriptive research design Descriptive research includes surveys and fact-finding enquiry’s of different kinds. The major purpose of descriptive research is In social description of the state of affairs, as it exists at present. research for descriptive research studies.
science and business research, we quit often use the term ex post facto The main characteristic of
this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. Most ex post facto research projects are used for descriptive studies in which the researcher seeks to measure such items as, for example, frequency of shopping, preferences of people, or similar data. Ex post facto studies also include attempts by researchers to discovers causes even when they cannot control the variables. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and correlation methods. 2.1 STATEMENT OF OBJECTIVES
1. To find out the customers profile of SHRIRAM CHITS. 2. To find out the reason for investing in SHRIRAM CHITS. 3. The find out the level of customers satisfaction with the services of SHRIRAM CHITS. 4. To find out the customers opinion on promotional strategies. 5. To find out the positioning of SHRIRAM CHITS with reference to similar chit fund organization. 6. To find out the opinion of customers on security of their funds of investments in SHRIRAM CHITS. 7. To find out the source of influence in investing in SHRIRAM CHITS.
2. RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. The scope of research methodology is wider than that of research methods. The scope of research methodology is wider than that of research methods. Thus, we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or
technique and why are not using others so that research results are capable of being evaluated either by the researcher himself or by others. Research Design Methods of Data Collection Sampling Procedure Sampling Type Sampling Size Research Tool Contact Made Research Design A Research design is the specification of methods and procedures for acquiring the needed data to solve the problem. Type of research design The arrangement of conditions suitable of collection and analysis of data varies depending upon the type of research study. One has to prepare research design, depending upon the specific nature of the study. Descriptive Research Primary and Secondary Data Non-Probability Sampling Convenience Sampling 150 Questionnaire Direct Contact.
2.2
DATA COLLECTION
data
Nature of data : The nature of data is both primary and secondary
•
Primary data :
Descriptive research design is been used for the study. Primary data is collected from consumers survey method; personal interview method was used to collect data from consumers
•
Secondary data :
The secondary data is collected from various published books, Journals, Magazines, Newspapers, past records and from Websites. 2.3 SAMPLING PROCEDURE The first step in the sampling process is the definition of the population, which can be defined in terms elements, sampling units extent & time. Sampling unit In the present study the sampling unit, chosen is any resident of Pulivendla. 2.4 SAMPLE SIZE
Sampling population
The total sample size is 150. Sampling techniques Convenience sampling methods has been adopted for the study. When population elements are selected for inclusion in the sample based on the ease of access of the researcher can be called as convenience sampling.
2.5
PERIOD OF STUDY The study was undertaken for a period of three months, including data preparation, analysis and report presentation.
2.6
QUESTIONNAIRE DESIGN The questionnaire designed is structured questionnaire consisting of close ended, multiple choices, dichotomous, ranking and openended questions to appropriateness.
2.7
PILOT STUDY
The pilot study of 10 samples has been collected to identify the effectiveness of the questionnaire; as no modification was required in the questionnaire. The same questionnaire was used for final survey. 2.8 LIMITATIONS OF THE STUDY Any marketing research in likely to be restricted in scope by certain inherent limitations precipitated by the choice of the research design, sampling procedure & respondent selection the following limitations are present in this study. • • • The major constraint of the study was the short duration of time as the study was conducted within Three months. The study was conducted in and around Kadapa due to time and cost consideration. Non-probability sampling used could have resulted in sampling error.
3.1
Data Analysis and Interpretation Table No : 1 Period as customer
Period
6Months 1Year 2 Years
No of Respondent s
30 46 62
Percentag e
20 31 41
More than 2 years Total
12 150
8 100
Interpretation : Out of 150 respondents, 41 % of respondents have been SHRIRAM CHITS customers for 2 years, 31% for 1 year, 20% for 6 months and 8% for more than 2 years. Inference : Most of the respondents have been SHRIRAM CHITS customers for 2 years.
Chart No.1
Period as customer
8%
20%
6 months 1 year 2 year
41% 31%
> 2 yrs
Table No : 2 Number of Chits paying Particular s 1 2-3 3-4 More than 4 Total Interpretation : Out of 150 respondents 54% of respondents are participating in one chit, 28% are paying 2-3 chits, 14% are paying 3-4 chits and 4 % are paying more than 4 chits. Inference : Majority of respondents are participating in one chit. No of responden ts 80 41 22 7 150 Percentage 54 28 14 4 100
Chart No. 2 No of Chits paying
60 50 Percentage 40 30 20 10 0 1 Chit 2-3 Chits 3-4 Chits No of Chits >4 Series1
Table No : 3 Monthly Payment Particular s Rs.500 Rs.1000 Rs.2000 More than Rs. 4000 Total Interpretation : Out of 150 respondents 33% of respondents are paying monthly Rs. 2000,25% are paying Rs 1000,22% are paying Rs.500,15% are paying Rs. 4000 and 5% are paying more than Rs. 4000. Interference : Most of the respondents are paying Rs. 500 & Rs 1000 monthly. No of responden ts 32 38 50 8 150 Percentage 22 25 33 5 100
Chart No. 3 Monthly payment
15%
5%
22%
500 1000 2000 4000 > 4000
33%
25%
Table No : 4 Reason for investing in Shri Ram Chits :
Reason
1 R%
2 R% 28 42 55 25 150 18 28 37 17 100 42 36 18 54 150
3 R% 28 24 12 36 100 20 42 37 51 150
4 R% 13 28 25 34 100
Total
%
To meet urgent need of money As investment For its good return Reliability Total
60 30 40 20 150
40 20 27 13 100
150 150 150 150
100 100 100 100
Interpretation : The flowing factors have been ranked as no 1: To meet urgent need of money (40%), for its good return (27%), as investment (20%) and reliability (13%). The flowing urgent need of money (19%), for its good return (28%), as investment (36%) and reliability (17%). The flowing factors have been ranked as no 3 : To meet urgent need of money (28 %), for its good return (24%), as investment (12%) and reliability (36%). The flowing factors have been ranked as no 4: To meet urgent need of money (13%), for its good return (28%), s investment (25%) and reliability (34%). Inference : Most of the ShriRam Chit’s investors are investing to meet urgent need of money.
Chart No. 4 Reason for investing in ShriRam chits :
41 40 39 38 37 36 35 34 33 32 31
40
37 36 34 Series1
To meet urgent need of money
As investment
For its good return
Reliability
Table No : 5 In which way you became SHRIRAM CHITS Investor Particular s Agents Friends Parents Advertisem ents Total Interpretation : From the above table it is clear that out 150 respondents 41 % of respondents have became an investors of SHRIRAM CHITS through agent, 26% through advertisement, through friends. Inference : Majority of respondents have become investors of SHRIRAM CHITS through agents and advertisements. 20% through parents and 13% No of responden ts 62 20 30 38 150 Percentage 41 13 20 26 100
Chart No. 5 SRIRAM CHITS INVESTORS
26% 41% 20%
agents friends parents 13% advertisements
Table No : 6 Opinion about security of investing Particular s Most secure Reasonable secure Okay Total Interpretation : Out of 150 respondents 51 % of respondents opinion about security of investing in SHRIRAM CHITS is reasonable secure, 28% is most secure and 21 % is okay. Inference : Majority of respondent s opinion about security of investing in SHRIRAM CHITS is mostly & reasonable secure. No of responden ts 42 76 32 150 Percentage
28 51 21 100
Chart no. 6
Opinion about secutiy
60 Percentage 50 40 30 20 10 0 Most secure Reasonable secure Opinion Okay Series1
Table No : 7 Level of satisfaction with services of staff Particular s Most satisfy Satisfied Unsatisfied Neither satisfied or dissatisfied Total Interpretation : From the above table it is clear that 88% of respondents are satisfied with SHRIRAM CHITS services, 8% neither satisfied nor dissatisfied and 4% are unsatisfied. Inference : Majority of respondents are satisfied with SHRIRAM CHITS service. No of responden ts 40 92 6 12 150 Percentage
27 61 4 8 100
Chart No.7
Level of satisfaction
8% 4% 27%
Most satisfied Satisfied Unsatisfied neither satisfied or dissatisfied
61%
Table No : 8 Level of satisfaction with services of staff Particular s Very reasonable Reasonable Okay Un reasonable Total Interpretation : Out of 150 respondents 66% of respondents feel present level of bidding is reasonable, 27% feel that okay and 7% feel that it is unreasonable. Inference : Majority of respondents feel present level of bidding is reasonable and very reasonable. No of responden ts 38 62 40 10 150 Percentage
25 41 27 7 100
Chart No. 8
Level of bidding
7% 25% 27% Very reasonable Reasonable Okay Unreasonable 41%
Table No : 9 Do you recommend Shri ram chits to friends : Particular s Yes No Total Interpretation : Out of 150 respondents 97 % of respondents like to recommend SHRIRAM CHITS to their friends and 3% of respondents does not like it. Inference : Majority of respondents like to recommend SHRIRAM CHITS to their friends. No of responden ts 146 4 150 Percentage 97 3 100
Chart No. 9 Do you recommend SHRI RAM CHITS to friends :
3% Yes No 97%
Table No : 10 Advertising strategy suggested Particular s News paper T.V Sign boards Magazine Total Interpretation : Out of 150 respondents 60%of respondents suggest newspaper & T.V for advertising strategy and 40% suggest signboards and magazines for advertising strategy. Inference : Majority of respondents suggest newspaper and T.V. for advertising strategy. No of responden ts 48 42 32 28 150 Percentage
32 28 21 19 100
Chart No. 10
Advertising stratagy suggested
19% 32% News paper T.V Sign boards Magazine
21% 28%
Table No : 11 Promotional strategy that you suggest :
Particulars Gifts Commission for joining new members Agents appointments Total Interpretation :
No of responden ts 58 62 30 150
Percentage 39 41 20 100
Out of 150 respondents 41% of respondents suggest commission for joining new members as promotional strategy, 39% suggest gifts an 20% suggests agent appointments. Inference : Majority of respondents suggests commission for joining new members and gifts as promotional strategy.
Chart No. 11
Promotional strategy saggested
45 40 35 30 25 20 15 10 5 0 Gifts Commission for joining new members Agents appointments
Percentage
Series1
Strategy
Table No : 12 Improving Shri Ram chits :
Particulars More agents More branches Good services Price money payment Total Interpretation :
No of responden ts 30 20 28 72 150
Percentage 20 13 19 48 100
Out of 150 respondents 48 % of respondents feel price money payment is effective method for improving SHRI RAM CHITS, 20% as more agents, 19% as good services and 13 % as more branches. Inference : Majority of respondents feel that price money payment and more agents as effective method for improving SHRI RAM CHITS.
Chart No.12 Improving Shri Ram Chits :
20%
More Agents More branches
48%
13%
Good services Price money payment
19%
Table No : 13 Using any other chit funds:
Particulars Yes No Total Interpretation :
No of responden ts 18 132 150
Percentage 12 88 100
Out of 150 respondents 88% of respondents are using only Shri Ram Chits. And 12 % are using some other chits also.
Inference : Majority of respondents are using Shri Ram chits only.
Chart No. 13
About other chits
100 80 Percentage 60 40 20 0 Yes Responce No 12 Series1 88
Table No : 14 Satisfied with SHRI RAM CHITS services :
Particulars Yes No Total Interpretation :
No of responden ts 144 6 150
Percentage 96 4 100
Out of 150 respondents 96 % of respondents are satisfied with SHRI RAM CHITS services and 4 % are not satisfied. Inference : Majority of respondents are satisfied with services of SHRI RAM CHITS.
Chart No. 14
Services of SHRI RAM CHITS
4%
Yes No
96%
Table No : 14.1 Reason for satisfaction
Particulars Better service High rate of Return Safety Payment of interest Total Interpretation :
No of responden ts 30 48 10 56 144
Percentage 21 33 7 39 100
Out of 144 respondents who are satisfied with the services of SHRI RAM CHITS, 39% gave reason payment of interest, 33% are high rate of return, 21% are better service and 7% are safety. Inference : Majority of respondents have gave reason payment of interest and high rate of return for the reason of satisfaction.
Chart No.14.1
Reason for satisfaction
45 40 35 Percentage 30 25 20 15 10 5 0 Better service High rate of Return Safety Payment of Interest Series1
reason
Table No : 14.2 Reason for dissatisfaction Particulars Poor service Less rate of Return Total Interpretation : Out of 6 respondents not satisfied, 67 % of because of less rate of return and 33% of poor service. Inference : Majority of the respondents are not satisfied. No of responden ts 2 4 6 Percentage 33 67 100
Chart No. 14.2
Reason for dissatisfaction
33% Poor service Less rate of Return 67%
15. Length of customer ship Vs no of chits : Cross table No : 1
Customer of SC/No of chits 1 2-3 3-4 Above 4 Total 6 Months 15 10 3 2 30 Above 2 years 5 3 4 12
% 50 33 10 7 100
1 Year 20 18 8 46
% 43 39 18 100
2 Year 40 10 11 1 62
% 64 16 18 2 100
% 42 25 33 100
Total 80 41 22 7 150
Interpretation : 50% respondents are paying 1 chit for 6 months, 43% are paying 1 chit for 1 year, 64 % are paying 1 for 2 years and 42 % are paying 1 chit for more than 2 years. Inference : Majority of respondents are paying 1 chit for 2 years.
16. Advertising strategy Vs Promotional strategy : Cross Table No :2
Advertising strategy \ Promotiona l strategy Gifts Commissio n for joining Agent appointme nt Total Newspaper % T.V % Sign boar ds 10 12 10 32 % Magaz ines 10 18 28 % Total
18 20 10 48
33 47 20 100
20 12 10 42
48 28 24 100
31 37 32 100
36 64 100
58 62 30 150
Interpretation : 47% of respondents suggest newspaper & commission, 48 % are T.V & gifts, 37 % are sign boards & commission and 64 % suggest magazines and commission for joining new members for advertising and promotional strategies. Inference : Majority of respondents suggest magazines and commission for joining new members for advertising and promotional strategies.
3.2
Statistical analysis
Security Vs Source of influence for investing in SHRIRAM CHITS Weighted Average Method :
Investor of Shriram chits / Security Most Secure Reasonable secure Okay Total Advertiseme nts -28 10 38
Agent 22 30 10 62
Friends 10 8 2 20
Parents 10 10 10 30
Total 42 76 32 150
Weighted Average Table :
X 3 2 1 Total W.Av g W 22 30 10 62 -WX 66 60 10 136 2.19 W 10 8 2 20 -WX 30 16 2 48 2.4 W 10 10 10 30 -WX 30 20 10 60 2 W -28 10 38 -WX -56 10 66 1.73
The following is the rank order : RANK 1 : Most of the respondents become investors of shriram chits through friends. Rank 2 : most of the respondents become investors of shriram chits through agents.
Rank 3 : most of the respondents become investors of shriram chits through parents. Rank 4 : Most of the respondents become investors of shriram chits through Advertisements.
Advertising strategy Vs Improving shriram chits : Weighted Average Method :
Advertising strategy / improving shriram chits More agents More branches Good services Price money Total
Newspaper 10 4 14 20 48
T.V 8 6 8 20 42
Signboards 10 2 2 18 32
Magazines 2 8 4 14 28
Total 30 20 28 72 150
Weighted Average Table :
X 4 3 2 1 Total W.Avg W 10 4 14 20 48 -WX 40 12 28 20 100 2.083 W 8 6 8 20 42 -WX 32 18 16 20 86 2.047 W 10 2 2 18 32 -WX 40 6 4 18 68 2.13 W 2 8 4 14 28 -WX 8 24 8 14 54 1.93
The following is the rank order : Rank 1: strategy. Rank 2 : strategy. Rank 3 : Most of respondents prefer T.V as the advertising strategy. Most of respondents prefer newspapers as the advertising Most of respondents prefer signboards as the advertising
Rank 4 : strategy.
Most of respondents prefer magazines as the advertising
Level of satisfaction Vs Security : Weight Average Method : Level of Satisfaction /Security Most secure Reasonable secure Okay Total Most satisfied 20 12 8 40 Satisfied 18 60 14 92 Unsatisfied 2 4 -6 Neither satisfied or dissatisfied 2 -10 12 Total 42 76 32 150
Weighted average table : X 3 2 1 Total W.Avg W 20 12 8 40 -WX 60 24 8 92 23 W 18 62 14 92 -WX 54 120 14 180 1.95 W 2 4 -6 -WX 6 8 -14 2.23 W 2 -10 12 -WX 6 -10 16 1.33
The following is the ranking order. Rank 1: Most of respondents are most satisfied with the services of shriram chits. Rank 2 : Most of respondents are satisfied with the services of shriram chits. Rank 3 : Most of respondents are neither satisfied nor dissatisfied with the services of shriram chits.
Rank 4 : Most of respondents are unsatisfied with the services of shriram chits.
Statistical tools : Percentage methods is used in making comparison between two (or) more series of data this method is used to describe relationship.
No of respondents % of respondents = ---------------------- satisfaction level 100 Total respondents Chi – Square test : It is statically measure with the help of which it is possible to access the significance between the observed frequencies and the expected frequencies obtained from some hypothetical universe. can be considered equal. Chi-square tests enable us to test whether more than two population proportions
The formula for computing chi- square is
?
?(Oij-Eij)2 -----------Eij
Where, oij = observed frequency of the cell in the row and the column Eij = expected frequency of the cell in the row and the column. The calculated value of ?2 is compared with the table value of ?2 for given degree of freedom at specified level of significance.
If CV < TV then hypothesis is accepted and CV>TV then hypothesis is rejected.
Conditions : 1. Observations recorded and used are collected on a random basis. 2. No group should contain less than 10; same statisticians consider 5, if adding adjoining groups does less regrouping. 3. The number of items normally is at least 50. Weight Average method : One of the limitations of the arithmetic mean disused above is that it gives equal importance to all the items. But these are cases The term where the relative importance of the different items is not the same. When this is so, we compute weighted arithmetic mean. formula for computing weighted arithmetic mean is : ‘weight’ stands for the e relative importance of the different items. The
?wx Xw =-------?W Where Xw represents the weighted arithmetic mean ; X represents the variable values, i.e., x1 x2, x3…. Xn. X represents the weights attached to variable values, i.e., w1,w2,w3……. Wn, respectively. (1) multiply the weights by the variable x and obtain the total ? Wx
(2) divide this total by the sum of the weights i.e., ?W
FINDINGS : 1. Out of 150 respondents 88% are the customers of SHRIRAM CHITS. 2. From the above study it is clear that 50% of respondents have been customers for SHRIRAM CHITS for 2 Years and more. 3. Most of the respondents (54%) are participating in one chit monthly. 4. Majority of respondents are investing in SHRIRAM CHITS to meet the urgent need of money. 5. Most of the respondents have become the investor of SHRIRAM CHITS through agents. 6. Majority of respondent opinion about security of investing in SHRIRAM CHITS is reasonable secure (76%). 7. Majority of respondents (61%) are satisfied with the services of SHRIRAM CHITS. 8. Most of the respondents are suggesting newspaper for advertising strategy followed by T.V (60%) 9. Most of the respondents are suggesting commission for introducing new members and price money. 10. 11. Majority of respondents are paying one chit for 2 years. Majority of respondents suggest magazines and commission for
joining new member for advertising and promotional strategy.
5.1
SUGGESTIIONS & RECOMMANDATIONS
? Nearly half the respondents have been customers of SHRIRAM CHITS for periods less than two years. The company should initiate steps for retention such festival gifts of there customers (even though the present retention is a remarkable achievement as the branches in a existence only for 3 years). ? Agency is the main source through SHRIRAM CHITS its new customers. Hence they should develop the outlet through alternate commission gifts and suitable training and also appointing additional agents. ? Respondents opinion regarding security of funds with SHRIRAM CHITS (Monthly or reasonable) should be used in the company marketing / promotional strategies. ? Print media / T.V should be used for advertising SHRIRAM CHITS products has they have been rated as trust effective. ? Commission / price money should from major part of inventories for introducing new members. ? Promotional strategies may be developed for inducing customers to go for more monthly chits. ? Roughly 50 % spend Rs 1000/or below per month on chits. Promotional strategies may be introduced for participation in higher valued chits and more number of chits per month.
? There is a strong brand loyalty among customers and it should be retained through customer meets, gifts etc.,
5.2
CONCLUSION : The study has been done over a limited duration covering a
sample of finding customers of SHRIRAM CHITS. Based on the analysis and a few suggestions & recommendations have been made and if there are implemented, it is finally believed that there would be a definite improve in the sales volume of customer satisfaction. After implementation a similar study may be done in about 12-15 months to find out their effectiveness and further corrective may be taken. Although it is suggested that such studied may be done on a continual basis on regular intervals to get the feedback and follow achievements.
I am N. Vivekanada Reddy doing M.B.A. at “Thangavelu College of Science and Management”(under Madras university) Chennai. Title “Shri Ram Chits customers”. This project is being done as part of curriculum.
Shriram chits customers
1 Name 2 Age 3 Occupation : : :
4 Qualification : ? How long you have been a customer of Shriram chits ? 6months 1year 2 year more than that
? What is the no. of chits you are paying? One 2 to 3 3 to 4 above
? Monthly payment made by you against the above chits? Rs500/Rs1000/Rs2000/Rs4000/Above
? Reason for investing in Shriram chits? To meet urgent need of money As investment For its good return Reliability
? How did you become an investor of Shriram chits? From agent From parents From friends From advertisements
? What Is your opinion about security of investing in Shriram chits? Most secure Reasonable secure okay
? What is your level of satisfaction with services of Shriram chits staff? Highly Satisfied Dis satisfied Satisfied Highly dis Satisfied
? Do you feel that the present level of bidding are reasonable? Very reasonable Okay Reasonable Unreasonable
? Would you recommend Shriram chits to friends? Yes If no , reason : ? What is the advertising strategy you suggest for Shriram chits? Newspaper Sign boards T.V Magazines No
? What is promotional strategy you suggest for Shriram chits? Gifts members Agent appointments ? Which you feel is the most effective method of improving Shriram chits activities ? More Agents Good services More branches Prize money payment Commission for joining new
? Are you using any other chit funds ? Yes if yes, Name : No
? Are you satisfied with services of Shriram chits ? ? If Yes, Because of Better service Satisfy ? If No, Because of Poor service Less Safety Any suggestions :
yes / no
High rate of return Payment of interest through Less rate of return High risk
BIBLIOGRAPHY 1. Philip Kotler, “Marketing management”, eleventh edition, Eastern Economy Edition Prentice Hall of India Pvt., Ltd., New Delhi – 110001 2. R.S.N. Pillai & Bhagavathi, “Modern Marketing”, 2nd edition, S.Chand & company ltd., New Delhi – 11005. 3. Dr.D.D.Sharma, “Marketing Research”, 2nd edition, Sultan chand & Sons, New Delhi – 110002 4. C.P. Kothari, “Research Methodology”, 2nd edition, New Delhi – 110002. 5. S.P Gupt, “Statistical Methods”, 13th edition, Chand & Sons, New Delhi –11002.
doc_641388680.doc
A customer is the recipient of a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration.
A STUDY ON COUSTOMER SATISFACTION WITH RERFERENCE TO SHRIRAM CHITS PVT. LTD., PULIVENDULA, ANDHRA PRADESH. A FULL TIME PROJECT REPORT
Submitted in partial fulfillment for the award of The degree of
MASTER OF BUSINESS ADMINISTRATION OF MADRAS UNIVERSITY
Submitted By N. VIVEKANANDA REDDY
(Regd.no. MB 20273)
Under the Esteemed guidance of
THANGAVELU COLLEGE OF SCIENCE & MANAGEMENT (Affiliated to Madras University) OLD MAHABALIPURAM ROAD KARAPARKAM CHENNAI – 96 TAMIL NADU
April 2004
CERTIFICATE
This is to certify that the project titled “A STUDY ON CUSTOMER SATISFACTION WITH REFERENCE TO SHRIRAM CHITS PVT. LTD.” Is a bonafied record of work carried out by N. VIVEKANANDA REDDY (Reg.No. MB 20273) in partial fulfillment of the requirements for the Award of the degree “Master of Business Administration, University of Madras”, during the month of April and the he has
prepared the project under my guidance.
RAMANI HOD
KAVITHA Project Guide.
ACKNOWLEDGEMENT I sincerely place my thanks to M. MALLIKARJUNA for providing me with opportunity to undertake project work in the company. I would like to express my sincere and deep sense of gratitude to KAVITHA Whose expert advice enabled me to accomplish the project work successfully. I am deeply indebted to my Guide, KAVITHA for his valuable guidance and for his enthusiastic and continue encouragement, which helped me to complete my project successfully. My sincere thanks go to all my friends, family members who encouraged me in every aspect of the project.
N. VIVEKANANDA REDDY (MB 20273)
DECLARATION N. VIVEKANANDA REDDY full time student of TCSM has under signed here by declare that this full – time Project Report entitled ‘ A STUDY ON CUSTOMER SATISFACTION WITH REFERENCE TO SHRIRAM CHITS PVT. LTD., PULIVENDULA, A.P ’ Submitted to the University of Madras has been prepared by me Personally with the help and timely cooperation of the Staff of SHRIRAM CHITS PVT. LTD., and With the guidance from KAVITHA, and this report has not been submitted to any other university for the fulfillment of any other course.
STATION : PULIVENDLA DATE : 22-03-04
N. VIVEKANADA REDDY (Reg.No. MB 20273)
CHAPTER NO
TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES
PAGE NO
CHAPTER – 1
INTRODUCTION 1.1 GENERAL 1.2. INDUSTRY PROFILE 1.3 COMPANY PROFILE 1.4 PRODUCT PROFILE RESEARCH METHODOLOGY AND DESIGN 2.1 STATEMENT OF OBJECTIVES 2.2 DATA COLLECTION 2.3. SAMPLING PROCEDURE 2.4. SAMPLE SIZE 2.5. PERIOD OF STUDY 2.6. QUESTIONNAIRE DESIGN 2.7. PILOT SURVEY 2.8. LIMITATION OF THE STUDY
CHAPTER-2
CHAPTER – 3
ANALYSIS AND INTERPRETATION 3.1 DATA ANALYSIS AND INTERPRETATION 3.2 STATISTICAL ANALYSIS SUMMARY OF FINDINGS RECOMMENDATION & CONCLUSION 5.1 RECOMMENDATION & SUGGESTIONS 5.2 CONCLUSION ANNEXURE BIBLIGOGRAPHY
CHAPTER – 4 CHAPTER –5
Table No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 14.1 14.2 15 16
Title Period of customer No of chits paying Monthly payment Reason for investing Reason for becoming investor Opinion about security Level of satisfaction with staff service Present level of bidding Will you recommend Shriram chits to friends Advertising strategy suggested Promotional strategy suggested Improving Shriram chits Using any other chit funds Satisfied with Shri Ram chits services Reason for satisfaction Reason for dissatisfaction Length of customer ship vs. Number of chits Advertising strategy vs. promotional strategy
Page No
LIST OF FIGURES Figures no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 14.1 14.2 Title Period of customer No of chits paying Monthly payment Reason for investing Reason for becoming investor Opinion about security Level of satisfaction with staff service Present level of bidding Will you recommend Shriram chits to friends Advertising strategy suggested Promotional strategy Suggested Improving ShriRam chits Using any other chit funds Satisfied with Shri Ram chits services Reason for satisfaction Reason for dissatisfaction Page no
SYNOPSIS
Shriram chits started its operations in the year 1974, started by Thyagarajan (chairperson) and Duruvasan (M.D) with a single Branch at Chennai and has in a short span grown into a trusted Household name for making chits available from of saving and Borrowing to all sections of the society. Shriram now has a Turnover exceeding Rs. 2500 Crores, 465 branches around 4 States and 5000 employees. Shriram chits has to date disbursed over Rs. 8000 Crores as Prize money. Shriram chits operate in four states. Tamilnadu, Andhra Pradesh Karnataka and Maharashtra, where it has a Reputation for timely disbursement of funds and excellent Customer service that differentiates it from other companies. At the SHRIRAM “They add a customer every 3 seconds.”
1.1
GENERAL
NEED FOR THE STUDY : Though chit is a traditional method of financing. This study which gives a broad idea about customers in chits. At present scenario customers are not satisfied in the chits because due to rapid growth bogus chit funds to know the satisfaction level of the customers in SHRIRAM CHITS, I preferred to do this study.
SCOPE FOR THE STUDY :
1. This study helps To assess the strength and weakness of SHRIRAM CHITS and also it helps to comparing its position among its competitors. 2. To assess the level of satisfaction with SHRIRAM CHITS and so that corrective action can be taken needed. 3. To work out strategies for improving the volume of business and market standard of SHRIRAM CHITS including promotional and advertising strategy.
1.2
INDUSTRY PROFILE :
‘Chit’ means a transaction where chit, chit fund, chatty, kury or by any other name or under which a person enters into an agreement with a specified number of persons that every of them shall subscribe a certain sum of money by way of installments over definite period and each such subscriber shall, in turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, the entitle to the price amount. Chit fund in a contract between the foreman, as the promoter is called, and the subscribers, who joined voluntarily. It is a financial system
under which the periodical and regular saving of a group of subscribers are made available to each subscriber in turn on an agreed basis. A specified amount every month of a specific period. The pooled funds every month are offered to the subscribers at monthly auctions and the subscriber who bids for the highest discount is declared the prizewinner and given the price amount on proper security. A priced winner also continued to pay the subscriptions till termination of chit. The amount foregone as discount less foreman’s commission is distributed among the subscribers as dividend.
1.3
COMPANY PROFILE :
A multi-locational, multi dimensional Rs 4000 organization, serving 36 laks customers from its all India network of 580 branches. The group is a player in the financial services sector. trucks amounting to Rs 1400 crores. At the SHRIRAM “They add a customer every 3 seconds.” An end result achieved through a single focus of innovation…. Developing products and services strategies based on a customer need. Financially, the SHRIRAM CHITS has a strong understanding of the fundamentals, the spirit of which is aptly captured in its corporate slogan “We understand It has successfully raised investments in access of Rs 1400 crores and has financed over 50,000
money well.. and people even better”, SHRIRAM today has acquired a significant national presents in the field of financial services. It has also successfully development. In the true spirit of globalization, SHRIRAM has numerous international tie-ups-Mitsubishi and Arai seisakusho-Japan, Emson research in & Tower Tech INC-USA, ITT way ASSAUTO-Italy and Cylinco group-Srilanka among others. And every of them is a success story with a tremendous potential to further entrench SHRIRAM’S credentials and interest in the subcontinent. The products / Services of the group companies can be grouped the following categories FINANCIAL SERVICES : • Truck Financing • Online Share Trading • Insurance • Chit Funds diversified into industry transport and property
Truck Financing :SHRIRAM investments Ltd (SIL), SHRIRAM Transport Finance Company Ltd (STFC) & SHRIRAM City Union Finance Ltd (SCUFF) are three major truck financing companies of SHRIRAM group. With loan disbursements of over Rs 1400 crore in truck financing with a recovery rate of 98.6 % & an interest earning of 27.4% we enjoy a leadership position in the truck financing sector. Online Share Trading : In sight share brokers (P) Ltd, (member national stock exchange) a company of the group provides online trading of shares and stocks.
Insurance : Insurance marketing as tied up with major national / international players to offer the best customaries insurance solutions for the retail customers. Chit funds : The chit fund is a form of organizing credit on a co-operative basis. SHRIRAM CHITS, established in 1974, with a small investment of Rs 0.1 million, has grown to become the largest organization of its kind in India. Despite the huge size and spread of operation, the collection efficiency is of a very high order (99%), mainly due to the excellence of the managerial culture that has been created over the last 28 years. SHRIRAM CHITS today has evolved into a massive movement, which touches lives of the millions of subscribers satisfying their diverse credit requirements.
1.4
PRODUCT PROFILE : The purpose of the chits is to inculcate and encourage the habit of thrift and there by extend the compulsory savings.
Now a days there are so many other chit fund companies also existing in the market. They are SHRIRAM CHITS, SAHARA INDIA, SUCHITRA SRIRAM CHITS is having nice position in the rural CHITS and so on.
sector and captured better position compared with other chits.
The following are different types of research design. 1. 2. 3. 4. Exploratory research design Descriptive research design Diagnosis research design Experimental research design
Descriptive research design Descriptive research includes surveys and fact-finding enquiry’s of different kinds. The major purpose of descriptive research is In social description of the state of affairs, as it exists at present. research for descriptive research studies.
science and business research, we quit often use the term ex post facto The main characteristic of
this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. Most ex post facto research projects are used for descriptive studies in which the researcher seeks to measure such items as, for example, frequency of shopping, preferences of people, or similar data. Ex post facto studies also include attempts by researchers to discovers causes even when they cannot control the variables. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and correlation methods. 2.1 STATEMENT OF OBJECTIVES
1. To find out the customers profile of SHRIRAM CHITS. 2. To find out the reason for investing in SHRIRAM CHITS. 3. The find out the level of customers satisfaction with the services of SHRIRAM CHITS. 4. To find out the customers opinion on promotional strategies. 5. To find out the positioning of SHRIRAM CHITS with reference to similar chit fund organization. 6. To find out the opinion of customers on security of their funds of investments in SHRIRAM CHITS. 7. To find out the source of influence in investing in SHRIRAM CHITS.
2. RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. The scope of research methodology is wider than that of research methods. The scope of research methodology is wider than that of research methods. Thus, we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or
technique and why are not using others so that research results are capable of being evaluated either by the researcher himself or by others. Research Design Methods of Data Collection Sampling Procedure Sampling Type Sampling Size Research Tool Contact Made Research Design A Research design is the specification of methods and procedures for acquiring the needed data to solve the problem. Type of research design The arrangement of conditions suitable of collection and analysis of data varies depending upon the type of research study. One has to prepare research design, depending upon the specific nature of the study. Descriptive Research Primary and Secondary Data Non-Probability Sampling Convenience Sampling 150 Questionnaire Direct Contact.
2.2
DATA COLLECTION
data
Nature of data : The nature of data is both primary and secondary
•
Primary data :
Descriptive research design is been used for the study. Primary data is collected from consumers survey method; personal interview method was used to collect data from consumers
•
Secondary data :
The secondary data is collected from various published books, Journals, Magazines, Newspapers, past records and from Websites. 2.3 SAMPLING PROCEDURE The first step in the sampling process is the definition of the population, which can be defined in terms elements, sampling units extent & time. Sampling unit In the present study the sampling unit, chosen is any resident of Pulivendla. 2.4 SAMPLE SIZE
Sampling population
The total sample size is 150. Sampling techniques Convenience sampling methods has been adopted for the study. When population elements are selected for inclusion in the sample based on the ease of access of the researcher can be called as convenience sampling.
2.5
PERIOD OF STUDY The study was undertaken for a period of three months, including data preparation, analysis and report presentation.
2.6
QUESTIONNAIRE DESIGN The questionnaire designed is structured questionnaire consisting of close ended, multiple choices, dichotomous, ranking and openended questions to appropriateness.
2.7
PILOT STUDY
The pilot study of 10 samples has been collected to identify the effectiveness of the questionnaire; as no modification was required in the questionnaire. The same questionnaire was used for final survey. 2.8 LIMITATIONS OF THE STUDY Any marketing research in likely to be restricted in scope by certain inherent limitations precipitated by the choice of the research design, sampling procedure & respondent selection the following limitations are present in this study. • • • The major constraint of the study was the short duration of time as the study was conducted within Three months. The study was conducted in and around Kadapa due to time and cost consideration. Non-probability sampling used could have resulted in sampling error.
3.1
Data Analysis and Interpretation Table No : 1 Period as customer
Period
6Months 1Year 2 Years
No of Respondent s
30 46 62
Percentag e
20 31 41
More than 2 years Total
12 150
8 100
Interpretation : Out of 150 respondents, 41 % of respondents have been SHRIRAM CHITS customers for 2 years, 31% for 1 year, 20% for 6 months and 8% for more than 2 years. Inference : Most of the respondents have been SHRIRAM CHITS customers for 2 years.
Chart No.1
Period as customer
8%
20%
6 months 1 year 2 year
41% 31%
> 2 yrs
Table No : 2 Number of Chits paying Particular s 1 2-3 3-4 More than 4 Total Interpretation : Out of 150 respondents 54% of respondents are participating in one chit, 28% are paying 2-3 chits, 14% are paying 3-4 chits and 4 % are paying more than 4 chits. Inference : Majority of respondents are participating in one chit. No of responden ts 80 41 22 7 150 Percentage 54 28 14 4 100
Chart No. 2 No of Chits paying
60 50 Percentage 40 30 20 10 0 1 Chit 2-3 Chits 3-4 Chits No of Chits >4 Series1
Table No : 3 Monthly Payment Particular s Rs.500 Rs.1000 Rs.2000 More than Rs. 4000 Total Interpretation : Out of 150 respondents 33% of respondents are paying monthly Rs. 2000,25% are paying Rs 1000,22% are paying Rs.500,15% are paying Rs. 4000 and 5% are paying more than Rs. 4000. Interference : Most of the respondents are paying Rs. 500 & Rs 1000 monthly. No of responden ts 32 38 50 8 150 Percentage 22 25 33 5 100
Chart No. 3 Monthly payment
15%
5%
22%
500 1000 2000 4000 > 4000
33%
25%
Table No : 4 Reason for investing in Shri Ram Chits :
Reason
1 R%
2 R% 28 42 55 25 150 18 28 37 17 100 42 36 18 54 150
3 R% 28 24 12 36 100 20 42 37 51 150
4 R% 13 28 25 34 100
Total
%
To meet urgent need of money As investment For its good return Reliability Total
60 30 40 20 150
40 20 27 13 100
150 150 150 150
100 100 100 100
Interpretation : The flowing factors have been ranked as no 1: To meet urgent need of money (40%), for its good return (27%), as investment (20%) and reliability (13%). The flowing urgent need of money (19%), for its good return (28%), as investment (36%) and reliability (17%). The flowing factors have been ranked as no 3 : To meet urgent need of money (28 %), for its good return (24%), as investment (12%) and reliability (36%). The flowing factors have been ranked as no 4: To meet urgent need of money (13%), for its good return (28%), s investment (25%) and reliability (34%). Inference : Most of the ShriRam Chit’s investors are investing to meet urgent need of money.
Chart No. 4 Reason for investing in ShriRam chits :
41 40 39 38 37 36 35 34 33 32 31
40
37 36 34 Series1
To meet urgent need of money
As investment
For its good return
Reliability
Table No : 5 In which way you became SHRIRAM CHITS Investor Particular s Agents Friends Parents Advertisem ents Total Interpretation : From the above table it is clear that out 150 respondents 41 % of respondents have became an investors of SHRIRAM CHITS through agent, 26% through advertisement, through friends. Inference : Majority of respondents have become investors of SHRIRAM CHITS through agents and advertisements. 20% through parents and 13% No of responden ts 62 20 30 38 150 Percentage 41 13 20 26 100
Chart No. 5 SRIRAM CHITS INVESTORS
26% 41% 20%
agents friends parents 13% advertisements
Table No : 6 Opinion about security of investing Particular s Most secure Reasonable secure Okay Total Interpretation : Out of 150 respondents 51 % of respondents opinion about security of investing in SHRIRAM CHITS is reasonable secure, 28% is most secure and 21 % is okay. Inference : Majority of respondent s opinion about security of investing in SHRIRAM CHITS is mostly & reasonable secure. No of responden ts 42 76 32 150 Percentage
28 51 21 100
Chart no. 6
Opinion about secutiy
60 Percentage 50 40 30 20 10 0 Most secure Reasonable secure Opinion Okay Series1
Table No : 7 Level of satisfaction with services of staff Particular s Most satisfy Satisfied Unsatisfied Neither satisfied or dissatisfied Total Interpretation : From the above table it is clear that 88% of respondents are satisfied with SHRIRAM CHITS services, 8% neither satisfied nor dissatisfied and 4% are unsatisfied. Inference : Majority of respondents are satisfied with SHRIRAM CHITS service. No of responden ts 40 92 6 12 150 Percentage
27 61 4 8 100
Chart No.7
Level of satisfaction
8% 4% 27%
Most satisfied Satisfied Unsatisfied neither satisfied or dissatisfied
61%
Table No : 8 Level of satisfaction with services of staff Particular s Very reasonable Reasonable Okay Un reasonable Total Interpretation : Out of 150 respondents 66% of respondents feel present level of bidding is reasonable, 27% feel that okay and 7% feel that it is unreasonable. Inference : Majority of respondents feel present level of bidding is reasonable and very reasonable. No of responden ts 38 62 40 10 150 Percentage
25 41 27 7 100
Chart No. 8
Level of bidding
7% 25% 27% Very reasonable Reasonable Okay Unreasonable 41%
Table No : 9 Do you recommend Shri ram chits to friends : Particular s Yes No Total Interpretation : Out of 150 respondents 97 % of respondents like to recommend SHRIRAM CHITS to their friends and 3% of respondents does not like it. Inference : Majority of respondents like to recommend SHRIRAM CHITS to their friends. No of responden ts 146 4 150 Percentage 97 3 100
Chart No. 9 Do you recommend SHRI RAM CHITS to friends :
3% Yes No 97%
Table No : 10 Advertising strategy suggested Particular s News paper T.V Sign boards Magazine Total Interpretation : Out of 150 respondents 60%of respondents suggest newspaper & T.V for advertising strategy and 40% suggest signboards and magazines for advertising strategy. Inference : Majority of respondents suggest newspaper and T.V. for advertising strategy. No of responden ts 48 42 32 28 150 Percentage
32 28 21 19 100
Chart No. 10
Advertising stratagy suggested
19% 32% News paper T.V Sign boards Magazine
21% 28%
Table No : 11 Promotional strategy that you suggest :
Particulars Gifts Commission for joining new members Agents appointments Total Interpretation :
No of responden ts 58 62 30 150
Percentage 39 41 20 100
Out of 150 respondents 41% of respondents suggest commission for joining new members as promotional strategy, 39% suggest gifts an 20% suggests agent appointments. Inference : Majority of respondents suggests commission for joining new members and gifts as promotional strategy.
Chart No. 11
Promotional strategy saggested
45 40 35 30 25 20 15 10 5 0 Gifts Commission for joining new members Agents appointments
Percentage
Series1
Strategy
Table No : 12 Improving Shri Ram chits :
Particulars More agents More branches Good services Price money payment Total Interpretation :
No of responden ts 30 20 28 72 150
Percentage 20 13 19 48 100
Out of 150 respondents 48 % of respondents feel price money payment is effective method for improving SHRI RAM CHITS, 20% as more agents, 19% as good services and 13 % as more branches. Inference : Majority of respondents feel that price money payment and more agents as effective method for improving SHRI RAM CHITS.
Chart No.12 Improving Shri Ram Chits :
20%
More Agents More branches
48%
13%
Good services Price money payment
19%
Table No : 13 Using any other chit funds:
Particulars Yes No Total Interpretation :
No of responden ts 18 132 150
Percentage 12 88 100
Out of 150 respondents 88% of respondents are using only Shri Ram Chits. And 12 % are using some other chits also.
Inference : Majority of respondents are using Shri Ram chits only.
Chart No. 13
About other chits
100 80 Percentage 60 40 20 0 Yes Responce No 12 Series1 88
Table No : 14 Satisfied with SHRI RAM CHITS services :
Particulars Yes No Total Interpretation :
No of responden ts 144 6 150
Percentage 96 4 100
Out of 150 respondents 96 % of respondents are satisfied with SHRI RAM CHITS services and 4 % are not satisfied. Inference : Majority of respondents are satisfied with services of SHRI RAM CHITS.
Chart No. 14
Services of SHRI RAM CHITS
4%
Yes No
96%
Table No : 14.1 Reason for satisfaction
Particulars Better service High rate of Return Safety Payment of interest Total Interpretation :
No of responden ts 30 48 10 56 144
Percentage 21 33 7 39 100
Out of 144 respondents who are satisfied with the services of SHRI RAM CHITS, 39% gave reason payment of interest, 33% are high rate of return, 21% are better service and 7% are safety. Inference : Majority of respondents have gave reason payment of interest and high rate of return for the reason of satisfaction.
Chart No.14.1
Reason for satisfaction
45 40 35 Percentage 30 25 20 15 10 5 0 Better service High rate of Return Safety Payment of Interest Series1
reason
Table No : 14.2 Reason for dissatisfaction Particulars Poor service Less rate of Return Total Interpretation : Out of 6 respondents not satisfied, 67 % of because of less rate of return and 33% of poor service. Inference : Majority of the respondents are not satisfied. No of responden ts 2 4 6 Percentage 33 67 100
Chart No. 14.2
Reason for dissatisfaction
33% Poor service Less rate of Return 67%
15. Length of customer ship Vs no of chits : Cross table No : 1
Customer of SC/No of chits 1 2-3 3-4 Above 4 Total 6 Months 15 10 3 2 30 Above 2 years 5 3 4 12
% 50 33 10 7 100
1 Year 20 18 8 46
% 43 39 18 100
2 Year 40 10 11 1 62
% 64 16 18 2 100
% 42 25 33 100
Total 80 41 22 7 150
Interpretation : 50% respondents are paying 1 chit for 6 months, 43% are paying 1 chit for 1 year, 64 % are paying 1 for 2 years and 42 % are paying 1 chit for more than 2 years. Inference : Majority of respondents are paying 1 chit for 2 years.
16. Advertising strategy Vs Promotional strategy : Cross Table No :2
Advertising strategy \ Promotiona l strategy Gifts Commissio n for joining Agent appointme nt Total Newspaper % T.V % Sign boar ds 10 12 10 32 % Magaz ines 10 18 28 % Total
18 20 10 48
33 47 20 100
20 12 10 42
48 28 24 100
31 37 32 100
36 64 100
58 62 30 150
Interpretation : 47% of respondents suggest newspaper & commission, 48 % are T.V & gifts, 37 % are sign boards & commission and 64 % suggest magazines and commission for joining new members for advertising and promotional strategies. Inference : Majority of respondents suggest magazines and commission for joining new members for advertising and promotional strategies.
3.2
Statistical analysis
Security Vs Source of influence for investing in SHRIRAM CHITS Weighted Average Method :
Investor of Shriram chits / Security Most Secure Reasonable secure Okay Total Advertiseme nts -28 10 38
Agent 22 30 10 62
Friends 10 8 2 20
Parents 10 10 10 30
Total 42 76 32 150
Weighted Average Table :
X 3 2 1 Total W.Av g W 22 30 10 62 -WX 66 60 10 136 2.19 W 10 8 2 20 -WX 30 16 2 48 2.4 W 10 10 10 30 -WX 30 20 10 60 2 W -28 10 38 -WX -56 10 66 1.73
The following is the rank order : RANK 1 : Most of the respondents become investors of shriram chits through friends. Rank 2 : most of the respondents become investors of shriram chits through agents.
Rank 3 : most of the respondents become investors of shriram chits through parents. Rank 4 : Most of the respondents become investors of shriram chits through Advertisements.
Advertising strategy Vs Improving shriram chits : Weighted Average Method :
Advertising strategy / improving shriram chits More agents More branches Good services Price money Total
Newspaper 10 4 14 20 48
T.V 8 6 8 20 42
Signboards 10 2 2 18 32
Magazines 2 8 4 14 28
Total 30 20 28 72 150
Weighted Average Table :
X 4 3 2 1 Total W.Avg W 10 4 14 20 48 -WX 40 12 28 20 100 2.083 W 8 6 8 20 42 -WX 32 18 16 20 86 2.047 W 10 2 2 18 32 -WX 40 6 4 18 68 2.13 W 2 8 4 14 28 -WX 8 24 8 14 54 1.93
The following is the rank order : Rank 1: strategy. Rank 2 : strategy. Rank 3 : Most of respondents prefer T.V as the advertising strategy. Most of respondents prefer newspapers as the advertising Most of respondents prefer signboards as the advertising
Rank 4 : strategy.
Most of respondents prefer magazines as the advertising
Level of satisfaction Vs Security : Weight Average Method : Level of Satisfaction /Security Most secure Reasonable secure Okay Total Most satisfied 20 12 8 40 Satisfied 18 60 14 92 Unsatisfied 2 4 -6 Neither satisfied or dissatisfied 2 -10 12 Total 42 76 32 150
Weighted average table : X 3 2 1 Total W.Avg W 20 12 8 40 -WX 60 24 8 92 23 W 18 62 14 92 -WX 54 120 14 180 1.95 W 2 4 -6 -WX 6 8 -14 2.23 W 2 -10 12 -WX 6 -10 16 1.33
The following is the ranking order. Rank 1: Most of respondents are most satisfied with the services of shriram chits. Rank 2 : Most of respondents are satisfied with the services of shriram chits. Rank 3 : Most of respondents are neither satisfied nor dissatisfied with the services of shriram chits.
Rank 4 : Most of respondents are unsatisfied with the services of shriram chits.
Statistical tools : Percentage methods is used in making comparison between two (or) more series of data this method is used to describe relationship.
No of respondents % of respondents = ---------------------- satisfaction level 100 Total respondents Chi – Square test : It is statically measure with the help of which it is possible to access the significance between the observed frequencies and the expected frequencies obtained from some hypothetical universe. can be considered equal. Chi-square tests enable us to test whether more than two population proportions
The formula for computing chi- square is
?
?(Oij-Eij)2 -----------Eij
Where, oij = observed frequency of the cell in the row and the column Eij = expected frequency of the cell in the row and the column. The calculated value of ?2 is compared with the table value of ?2 for given degree of freedom at specified level of significance.
If CV < TV then hypothesis is accepted and CV>TV then hypothesis is rejected.
Conditions : 1. Observations recorded and used are collected on a random basis. 2. No group should contain less than 10; same statisticians consider 5, if adding adjoining groups does less regrouping. 3. The number of items normally is at least 50. Weight Average method : One of the limitations of the arithmetic mean disused above is that it gives equal importance to all the items. But these are cases The term where the relative importance of the different items is not the same. When this is so, we compute weighted arithmetic mean. formula for computing weighted arithmetic mean is : ‘weight’ stands for the e relative importance of the different items. The
?wx Xw =-------?W Where Xw represents the weighted arithmetic mean ; X represents the variable values, i.e., x1 x2, x3…. Xn. X represents the weights attached to variable values, i.e., w1,w2,w3……. Wn, respectively. (1) multiply the weights by the variable x and obtain the total ? Wx
(2) divide this total by the sum of the weights i.e., ?W
FINDINGS : 1. Out of 150 respondents 88% are the customers of SHRIRAM CHITS. 2. From the above study it is clear that 50% of respondents have been customers for SHRIRAM CHITS for 2 Years and more. 3. Most of the respondents (54%) are participating in one chit monthly. 4. Majority of respondents are investing in SHRIRAM CHITS to meet the urgent need of money. 5. Most of the respondents have become the investor of SHRIRAM CHITS through agents. 6. Majority of respondent opinion about security of investing in SHRIRAM CHITS is reasonable secure (76%). 7. Majority of respondents (61%) are satisfied with the services of SHRIRAM CHITS. 8. Most of the respondents are suggesting newspaper for advertising strategy followed by T.V (60%) 9. Most of the respondents are suggesting commission for introducing new members and price money. 10. 11. Majority of respondents are paying one chit for 2 years. Majority of respondents suggest magazines and commission for
joining new member for advertising and promotional strategy.
5.1
SUGGESTIIONS & RECOMMANDATIONS
? Nearly half the respondents have been customers of SHRIRAM CHITS for periods less than two years. The company should initiate steps for retention such festival gifts of there customers (even though the present retention is a remarkable achievement as the branches in a existence only for 3 years). ? Agency is the main source through SHRIRAM CHITS its new customers. Hence they should develop the outlet through alternate commission gifts and suitable training and also appointing additional agents. ? Respondents opinion regarding security of funds with SHRIRAM CHITS (Monthly or reasonable) should be used in the company marketing / promotional strategies. ? Print media / T.V should be used for advertising SHRIRAM CHITS products has they have been rated as trust effective. ? Commission / price money should from major part of inventories for introducing new members. ? Promotional strategies may be developed for inducing customers to go for more monthly chits. ? Roughly 50 % spend Rs 1000/or below per month on chits. Promotional strategies may be introduced for participation in higher valued chits and more number of chits per month.
? There is a strong brand loyalty among customers and it should be retained through customer meets, gifts etc.,
5.2
CONCLUSION : The study has been done over a limited duration covering a
sample of finding customers of SHRIRAM CHITS. Based on the analysis and a few suggestions & recommendations have been made and if there are implemented, it is finally believed that there would be a definite improve in the sales volume of customer satisfaction. After implementation a similar study may be done in about 12-15 months to find out their effectiveness and further corrective may be taken. Although it is suggested that such studied may be done on a continual basis on regular intervals to get the feedback and follow achievements.
I am N. Vivekanada Reddy doing M.B.A. at “Thangavelu College of Science and Management”(under Madras university) Chennai. Title “Shri Ram Chits customers”. This project is being done as part of curriculum.
Shriram chits customers
1 Name 2 Age 3 Occupation : : :
4 Qualification : ? How long you have been a customer of Shriram chits ? 6months 1year 2 year more than that
? What is the no. of chits you are paying? One 2 to 3 3 to 4 above
? Monthly payment made by you against the above chits? Rs500/Rs1000/Rs2000/Rs4000/Above
? Reason for investing in Shriram chits? To meet urgent need of money As investment For its good return Reliability
? How did you become an investor of Shriram chits? From agent From parents From friends From advertisements
? What Is your opinion about security of investing in Shriram chits? Most secure Reasonable secure okay
? What is your level of satisfaction with services of Shriram chits staff? Highly Satisfied Dis satisfied Satisfied Highly dis Satisfied
? Do you feel that the present level of bidding are reasonable? Very reasonable Okay Reasonable Unreasonable
? Would you recommend Shriram chits to friends? Yes If no , reason : ? What is the advertising strategy you suggest for Shriram chits? Newspaper Sign boards T.V Magazines No
? What is promotional strategy you suggest for Shriram chits? Gifts members Agent appointments ? Which you feel is the most effective method of improving Shriram chits activities ? More Agents Good services More branches Prize money payment Commission for joining new
? Are you using any other chit funds ? Yes if yes, Name : No
? Are you satisfied with services of Shriram chits ? ? If Yes, Because of Better service Satisfy ? If No, Because of Poor service Less Safety Any suggestions :
yes / no
High rate of return Payment of interest through Less rate of return High risk
BIBLIOGRAPHY 1. Philip Kotler, “Marketing management”, eleventh edition, Eastern Economy Edition Prentice Hall of India Pvt., Ltd., New Delhi – 110001 2. R.S.N. Pillai & Bhagavathi, “Modern Marketing”, 2nd edition, S.Chand & company ltd., New Delhi – 11005. 3. Dr.D.D.Sharma, “Marketing Research”, 2nd edition, Sultan chand & Sons, New Delhi – 110002 4. C.P. Kothari, “Research Methodology”, 2nd edition, New Delhi – 110002. 5. S.P Gupt, “Statistical Methods”, 13th edition, Chand & Sons, New Delhi –11002.
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