Description
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.
Case Study of Customer Satisfaction With Reference to Tata Motor Passenger Vehicles
Abstract: Satisfaction is crucial concern for both customers and organizations. Satisfaction is a subjective concept and therefore difficult to determine. It depends on many factors and varies from person to person and product to product. The importance of customer satisfaction in strategy development for customers and market oriented cannot be underdetermined. Now a day it has become very important factor for each and every organization to enhance the level of customer satisfaction. The overall study reveals that It was found that the customer are mostly satisfied with price , design, safety, mileage, interior space, status brand name, comfort level, spares part and after sale service. Keywords: Customer, Customer satisfaction, Automobile company, passenger vehicles, Tata motors.
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
INTRODUCTION
Satisfaction is crucial concern for both customers and organisations. Satisfaction is a subjective concept and therefore difficult to determine. It depends on many factors and varies from person to person and product to product. The importance of customer satisfaction in strategy development for customers and market oriented cannot be underdetermined. Now a day it has become very important factor for each and every organization to enhance the level of customer satisfaction. Customer satisfaction, a term is used in marketing, it's a measure how product and service supplied by the company meet or surpass customer expectation. Customer satisfaction according to ISO 9000, users opinion about the degree to which its meets its requirements. Customer satisfaction is a highly personal assessment. Customer satisfaction is a measure of post purchase behaviour of the customers. customer expectations meet with the perceived value of goods and service then customer is satisfied but if the perceived value of goods and service is less than the customer expectations than customer is dissatisfied and if the perceived value exceeded the expected value of the goods and service than the customer is delighted. In addition, customers generally want the best possible product or service for a low cost. The perception of the best product or service at lowest price with safety effect the industry and customer segment significantly. Thus customer satisfaction is defined as "The number of the customers or percentage of the total customers, whose reported an experience with a firm, it product or its service exceeds specified satisfaction goods". Customer satisfaction is very important for any business whether it sale the product or services because if the customer is satisfied then they make the repeat purchases and tell other persons like their friends, neighbourhoods, family members etc. about their good experience and satisfied customers tell five other people about their good experience. If
IMPORTANCE OF CUSTOMER SATISFACTION
Customer satisfaction is an important because a higher level of satisfaction can deliver many satisfactions. Those satisfactions are as follows: Loyalty: A highly satisfied customer is a loyal customer. Repeat purchases: A highly satisfied customers buy more products. IJARMSS | 69
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
Referral: A highly satisfied customer tells their friends and family about the product or service. Retention: A highly satisfied customer is less likely to switch brands. Reduced cost: A highly satisfied customer costs less to serve than a new customer. Premium safety: A highly satisfied customer is willing to pay more for the products or service.
INDIAN AUTOMOBILE COMPANY
Peter Drucker called the automobile industry as "the Industry of Industries". Automobile industry has been recognised as one of the drivers of economic growth. During the lastdecade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy.
Market Share
100 80 60 40 20 0 Two wheelers Three wheelers Commercial vehicles passenger vehicles 76.23 3.58 4.32 15.86
The automotive industry of India categorized into the passenger vehicles, two wheelers, commercial vehicles and three wheelers with two wheeler dominant the market. Figure shows that 76.23% of the vehicles sold are two wheelers, nearly 59%of these two wheelers sold are motorcycles and 12% are scooters. The passenger vehicles are categorized into passenger cars, utility vehicles, and multipurpose vehicles. All sedans, hatchback, station wagons, and sport cars fall under the passenger car. The passenger vehicles manufacturers account for 15.86% of market in India. Commercial vehicles are categorized into heavy, medium and light. They account for 4.32% of the market. Three wheelers are categorized into Passenger carrier and good carrier, three wheeler account 3.58% of market share in India.
TATA MOTOR PROFILE
Tata is founded by Jamsetji Tata in 1868. The Tata group comprises over 100 operating companies in seven business sectors: communications and information technology, IJARMSS | 70
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
engineering, materials, services, energy, consumer products and chemicals. The group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries Tata Motors is among the top five commercial vehicle manufacturers, in the world. Tata Motors Limited is India's largest automobile company. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is the world's fourth largest truck and bus manufacturer. The Tata Motors Group's over 55,000 employees are guided by the vision to be ''best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.'
REVIEW OF LITERATURE
It is noteworthy to investigate what research work has been done throughout the world in the context of " Customer satisfaction with reference to Tata Motors Passenger vehicles" so that their contribution in the existing body of literature and gaps in their findings can be explored. While going through review of previous research finding, particularly conducted empirically the researcher came across many studies which covered the various aspects related to this topic but researcher mainly focus attention on those studies which are relevant for this topic. Mahapatra, kumar and Chauhan (2010) mentioned a study on "customer satisfaction, dissatisfaction and post purchase evaluation: an empirical study on small size passenger cars in India" with the main objectives to examine the satisfaction and impact on future purchase decision and explore the performance of different attributes in automobile in giving satisfaction to customer with the sample size of 150 customers and they used the multiple regression techniques and they revealed from this study that customers are highly satisfied with the performance of attributes like pickup, wipers, etc. and other attributes like pollution, engine, quietness, battery performance, and pick up influence the consumer future purchase decisions and consumer give the more importance to these factors. Kurkoti and Prabhu (2011) revealed a study on "Study on Satisfaction with reference to Tata nano car customers in Pune city" with the objectives to determine the customer satisfaction towards Tata Nano, to study the gap analysis and to find out the impact of fire incidences on Nano car users. For this study they taken the sample size of 125 customers and techniques used by them were paired sample, ANOVAs, and Turkey test. They concluded from this IJARMSS | 71
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
study that Nano car customers are not satisfied with the performance and waiting period of car but they satisfied with the safety of car and fire incidences report that has impact on the customer satisfaction. Sharma, Kiran Sharma and Khan (2011) conducted "A study and analysis of customer satisfaction of Tata motors in Jaipur, Rajasthan with the objectives to find out the satisfaction among the customers, market performance and market position of Tata motors. They taken the sample size of 100 customers in Jaipur city and concluded from this study that 73% people feel that safety are affordable whereas 12% do not agree, 74% believe that attractive discount are offered but 26% are not satisfied with the discount offered , but the overall opinion about Tata Motors is very good. Singh (2011) revealed a study on " An empirical review of the product and customer satisfaction of Tata commercial vehicles" to find out the quality of service , performance of Tata motors and to know the consumer perception towards Tata motors with the sample size of 100 customers and used the statistical techniques tables, bar charts etc. This study concluded that consumer prefer the Tata commercial vehicles due to its better quality, brand image, easy availability of service stations, spare part quality etc. Ganesh and Soundarapandiyan (2011) conducted a study on "i10 Hyundai Chennai: customer satisfaction level" with the sample size of 150 customers and tools used percentage analysis, chi square and multiple regression analysis. The objectives of the study was to identify the post purchase behaviour and customer satisfaction level and find the effectiveness of after sales service of customer of Hyundai i10. They revealed from the study that customers are satisfied with the car after purchase because its gives the feel of luxury to customers and a convenience of smaller car in crowded area. It's most stylish as compared to others. Lohana and sharma (2012) conducted a study on "customer satisfaction towards Hyundai cars in Nanded city" with the objectives is to identify the customer preferences and parameter about the Hyundai cars. They have taken the sample of 60. They concluded from the study that 50% customers are satisfied with the overall performance of their vehicle. The customers are satisfied with the fuel efficiency, brand image, after sales service and economy in purchase etc.
IJARMSS | 72
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
Rao and Kumar (2012) revealed study on "Customer satisfaction towards Tata Motors - A study on Passenger cars in Warangal district of Andhra Pradesh" with the objectives to study the customer satisfaction with the usage of vehicles, after sale service, key area of strength, pricing affects, service and quality. They taken the sample of 100 respondents and used the percentage technique. They concluded from the study that majority of customers are satisfied with the safety, dealer service, customer relationship and availability of spares etc.
RESEARCH OBJECTIVES
Every study has some objectives behind it. Present study seeks to achieve the following research objectives: RO1: To evaluate car owner's perception and behaviour pertaining to the purchase and use of cars. RO2: To study the customer satisfaction level of Tata motor passenger vehicles. RO3: To find out the most crucial factor for Customer satisfaction of Tata Motor Passenger vehicles. RO4: To find out the customer loyalty and competitive position of Tata Motors with other brands.
RESEARCH METHODOLOGY
Research design of the present study is exploratory cum descriptive and partially casual in nature, as the study aims at achieving insights into a relatively new phenomenon of A Study of Customer Satisfaction with reference to Tata Motors Passenger division..As the research is aimed at to find out the consumers satisfaction level towards Tata Motors passenger division, so only those were selected who were having selected Tata cars and using them.
SAMPLE SIZE
In this study, sample size of 100 respondents is chosen who are using the Tata car.
SAMPLING TECHNIQUE
Non-probability sampling was the only sampling technique available for the present study. Which produce an objective measure of the reliability of sample estimate? Here simplest non-probability sampling technique 'convenience sampling' was applied. Respondents were approached must all the places e.g. on the road, colleges, markets, houses, offices, etc., by the way of questionnaires.
IJARMSS | 73
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
TOOLS OF DATA ANALYSIS
In the Present study, the data collected were edited, coded and tabulated to make study meaningful. Then data were interpreted and analyzed to get the results for conclusions and recommendations. The data so collected has been analyzed with help of various tools and techniques to fulfill the research objectives. These include percentage table, frequency table, and mean keeping in context with the objective of the study. It was further suitably analyzed by Multi Dimensional Scaling (MDS) method. To conduct the statistical techniques, SPSS (Statistical Package for Social Science) version 18 for windows has been used.
ANALYSIS AND INTERPRETATION OF DATA
The analyses and interpretation of data according to research objectives is as follow:
Ro1: Car owner perception and behaviour
Table1-Time period Particulars Upto 1 Year 1-5 Year 5-10 Year 10-15 year Total Source: based on primary data From the data of sample collected regarding the time period of car they have , it is clearly understand by the data collected are that 33% of them have the car upto the 1 year, 56% have the car in between 1-5 years , 9% have the car in between 5-10 years and only 2% have the car between 10-15 year. Table 2- Purpose of using the Tata car Particulars Commercial Purpose Personal Purpose Both Total Source: based on primary data From the data of sample collected regarding the purpose of car , it is clearly understand by IJARMSS | 74 Frequency 10 80 10 100 Percent 10.0 80.0 10.0 100.0 Frequency 33 56 92 100 Percent 33.0 56.0 9.0 2.0 100.0
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
the data collected that 10 % customers use the Tata cars for commercial purpose , 90% use the car for the personal purpose and 10 % use the car for both commercial and personal purpose. Table 3-How purchased
Particulars Cash Loan Total Source: based on primary data
Frequency 44 56 100
Percent 44.0 56.0 100.0
From the data of sample collected regarding the how customer purchased their car, the table shows that 44% customers purchased the Tata car on cash while 56% purchased on loan. Table 4- Anyone recommend Particulars Yes No Total Source: based on primary data From the data of sample collected regarding that if any one recommended the customers to purchase the Tata cars, it is clearly understand by the data collected that 41% customers recommended by anyone. Table 5- Source of recommendation Particulars Relatives Media Friends Source: based on primary data From the data of sample collected regarding that if anyone recommended them to purchase the Tata car from this 41% are recommended by anyone these include that 18 % are recommended by their relatives, 9% are recommended by the media and 19% are recommended by their friends. Frequency 18 4 19 Percent 43.9 9.8 46.3 Frequency 41 59 100 Percent 41.0 59.0 100.0
IJARMSS | 75
International Journal of Advanced Research in Management and Social Sciences Table 6- Preventive maintenance Particulars Yes No Total Frequency 97 3 100
ISSN: 2278-6236
Percent 97.0 3.0 100.0
Source: based on primary data From the data of sample collected regarding that are customers regularly taking the preventive maintenance of their Tata car its clearly understand by data that 97% customers take the maintenance and only 3% are not take preventive maintenance Table 7- Sources of preventive maintenance Particulars Authorized Dealer Road side Mechanic Total Source: based on primary data From the data of sample collected regarding the preventive maintenance of car 97% take the preventive maintenance of this 91.85 take the preventive maintenance from authorized dealers and 8.2% are take the preventive maintenance from road side mechanic. Frequency 89 8 97 Percent 91.75 8.25 100
Ro2: Factor affecting Tata Motors passenger vehicles
Table 8- Factor affecting the customer Satisfaction Particulars Price Design Safety Mileage Interior Space Status/Brand Name Comfort Level Spares After Sale service Source: based on primary data IJARMSS | 76 Mean 4.07 3.75 3.66 3.78 4.07 3.91 3.88 3.74 3.50 Implications Satisfied Satisfied Satisfied Satisfied Satisfied Satisfied Satisfied Satisfied Satisfied
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
Table depicts that mean score of price, design, safety, mileage interior space, status /brand name, comfort level, spares and after sale service shows that customers are satisfied with Tata motors passenger vehicles.
Ro3: Most crucial factor for Customer satisfaction
Most crucial factor for customer satisfaction For detailed analysis, Multi dimensional scaling (MDS) technique is used for each Factor of
customer satisfaction in context of Tata motors car. MDS yields to perceptual mapping which expounds to find out most crucial factor for customer satisfaction with reference to Tata Motorson a 2 X 2 matrix. RSQ values are the proportion of variance of the scaled data (disparities) in the partition (row, matrix, or entire data) which is accounted for by their corresponding distances. Higher the RSQ value, the better the model explains the variation present in the data. Stress values are Kruskal's stress formula 1.
Number of parameters is 10. Number of data values is 10. Iteration history for the 2 dimensional solution (in squared distances) Young's S-stress formula 1 is used.
Iteration 1 2 3 4 5 6 7 8 9 10 11 For matrix Stress = .05095
S-stress .13072 .10512 .08938 .07923 .07415 .07171 .06994 .06848 .06727 .06626 .06542
Improvement
.02559 .01575 .01015 .00508 .00244 .00176 .00147 .00121 .00101 .00084
RSQ = .97414
IJARMSS | 77
International Journal of Advanced Research in Management and Social Sciences Configuration derived in 2 dimension Stimulus Number 1 2 3 4 5 Stimulus Name Price Mileage Interior Space Attractive look After sale service 1.6390 1.1536 -.1979 -1.0407 -1.5539 1 2
ISSN: 2278-6236
-.7884 .7543 .0993 .8531 .7197
Multidimensional scaling indicates that it is appropriate to represent the results in two dimensions. The variance in the data is accounted for (RSQ=0.97414) with a fairly low level of residual stress (0.05095).
Figure 1- MDS model Results of most crucial factor of customer satisfaction of Tata Motors by Multi dimensional scaling showed that price are the more influencing and primary determinant for customer satisfaction. Mileage and interior space were considered to be important but were determined as secondary determinants. After sale service were found to be less influencing as well as the secondary determinants. IJARMSS | 78
International Journal of Advanced Research in Management and Social Sciences Table 11- Competitive position of Tata Motors
ISSN: 2278-6236
Particulars Maruti Udhog Ltd. Hyundai Motor Ltd. Tata Motors Ltd.
Mean 1. 73 2.43 1.84
This table show that majority of respondents preferred the Maruti Udhog ltd as mean score is highest which 1.73 is, next preferred brand is Tata Motors. Table 12- Recommended the Tata car Particulars Yes No Total Source :based on primary data Frequency 75 25 100 Percent 75.0 25.0 100.0
Table shows that 100 respondents were asked that will they recommended Tata car to anybody in which 75% respondents say that they will recommend car to other person and 25% say that they will not recommended Tata car. Table 13- Repeat purchase
Particulars Yes No Total Source :based on primary data
Frequency 75 25 100
Percent 75.0 25.0 100.0
Table shows that 100 respondents were asked that will they make the repeat purchase of Tata car in which 75% respondents say that they will make the repeat purchase of Tata car and 25% say that they will not make the repeat purchase of Tata car.
CONCLUSION
In this study concluded that mostly Tata customers purchased car on loan, used the Tata car for personal purpose, having the car from 1-5 year and they are recommended by their friends as well as take preventive maintenance from authorised dealer. In case of level of IJARMSS | 79
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
customer satisfaction, It was found that the customer are mostly satisfied with price , design, safety, mileage, interior space, status brand name, comfort level, spares part and after sale service. Finding pertaining to most influencing show that most influencing factor for customer satisfaction in case of Tata Motors were price, mileage and interior space. At the end finding pertaining to competitive position show that customer preferred Maruti as comparison to Tata Motors but mostly customers are loyal with Tata Motors.
REFERENCES
1) Armstrong, G., & Kotler, P. (2005). Managing profitable customer relationship. Marketing: An Introduction (p. 41). New Delhi: Pearson Education. 2) Blois, K. (2009). Consumer Behavior. Textbook of Marketing (pp. 63,113). New Delhi:
Oxford University press. 3) Ganesh, M., & Soundarapandiyan, K. (2011). I 10 Hyundai Chennai Customers:
Satisfaction Level. SCMS Journal of Indian Management, 8(4), 78-90. 4) Gurleen, K. (2011). A Study of pre and post purchase consumer behavior for various
cars brands in Punjab. Radix International Journal of Marketing, 1(2), 100-119. 5) Hanif, M., Hafeez, S., & Adnan Riaz, A. R. (2010). Factors Affecting Customer
Satisfaction. International Research Journal of Finance and Economics, lxii (60), 44-52. 6) Herrmann, A., Xia, l., Monroe, K. B., & Huber, F. (2007). The influence of Price fairness
on Customer Satisfaction: An Empirical test in the context of Automobile Purchases. Journal of Product and Brand Management, 16(1), 49-58. 7) 8) 9) 10)
11)
http:// Tata motors.com retrieved on Aug. 16. 2012 http://Managemnet Study guide.com retrieved on 10 Oct. 2012. http://Scribd.com retrieved on 15 Oct. 2012. http://Tata .com retrieved 20 Aug. 2012. http://wikipedia.com retrieved on 10 Aug. 2012. http://www. Acma report.com retrieved on 8 Oct.2012. http://www. Anthill online.com/Marketing-customer satisfaction retrieved on 8 Aug.
12) 13) 2012. 14) 15) 16)
http://www. Carwale.com retrieved on 27 Aug. 2012. http://www. Expertmanage.com retrieved on 10 Aug. 2012. http://www. Indian Mirror.com/Automobile industry retrieved on 27Aug.2012. IJARMSS | 80
International Journal of Advanced Research in Management and Social Sciences 17) 18) 19) 20) 21) http://www.expertmanage.com retrieved on 9 Oct. 2012. http://www.Infebeam.com retrieved on 12 Sept. 2012. http://www.mairec.org retrieved on 12 Sept. 2012. http://www.scribd.com retrieved on 12 Dec. 2012.
ISSN: 2278-6236
Jahanshahi, A. A., Hajizadeh Gashti, M. A., Mirdamadi, S. A., Nawaser, K., & Sadeq
Khaksar, S. M. (2011). Study the Effects of Customer Service and Product Quality on Customer Satisfaction and Loyalty. International Journal of Humanities and Social Science, 1(7), 253-260. 22) Jain, T. (2010). After Sale Service. Principle of Marketing (1 ed., p. 241). New Delhi:
V.K Global Publication Pvt. Ltd. 23) Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2009). Creation Customer Value
Satisfaction and loyalty. Marketing Management (13 ed., pp. 120-125). New Delhi: Pearson Education. 24) Kurtkoti, A., & Prabhu, S. (2011). A Study of Customer Satisfaction towards Nano Cars
Customers in Pune City. Pravara management review, 10 (2), 28-32. 25) Lohana, S. R., & Sharma, O. (2012). A study on Customer Satisfaction towards
Hyundai cars in Nanded city. International Journal of Marketing and Management Research, 3 (4), 118-138. 26) Mahapatra, S., Kumar, J., & Chauhan, A. (2010). Customer Satisfaction,
Dissatisfaction and Post-Purchase evaluation: An empirical study on small size passenger cars in India. International Journal of Business and Society, 2 (2), 97-108. 27) Malik, G. (2011). A study of customer perception and expectations for Tata Nano. KIIT
Journal of Management, 7 (3), 1-10. 28) Maric, A., & Arsovki, S. (2010). The level of customer satisfaction as one of the goal of
the quality of organization in baker industry. International Journal for Quality Research, 4 (4), 275-281. 29) Michael, C. R., & Massaaki, K. B. (2000). Distribution and Supply chain Management.
Marketing Management (2 ed., pp. 368-370). New Delhi: Vikas Publishing house pvt. ltd. 30) Rao, V. R., & Kumar, R. V. (2012). Customer Satisfaction towards Tata Motors.
South Asian Journal of Marketing and Management Research, 2(4), 127-150. 31) S., G., & Prakasam, K. (2012). A study of Customer satisfaction towards selected IJARMSS | 81
International Journal of Advanced Research in Management and Social Sciences hotels in Bangalore. Golden Research Thoughts, 2 (.4), 1-8. 32)
ISSN: 2278-6236
Saxsena, R. (2007). An Introduction. Marketing Management (3 ed., p. 14). New
Delhi: McGraw hill Companies. 33) Sharma, S. K., Sharma, K., & Khan, M. (2011). A Study and analysis of customer
Satisfaction of Tata Motors in Jaipur. International Journal of Business Management and Economics research, 2(4), 250-257. 34) Shil, N. C., & Huda, M. (2011). Explicating Customer satisfaction: A survey on Private
commercial Banks. Indian Journal of Marketing, 42 (12), 1. 35) Singh, R. (2011). An Empirical review of the Product and Customer satisfaction of
Tata Commercial Vehicles. THAVAN IJRMM, 1(1), 109-120. 36) You, H., Ryu, T., Oh, K., Yun, M., & Kim, K. (2006). Development of customer
Satisfaction models for automotive interior materials. International Journal of Industrial Ergonomics, 36(4), 323-330. Distribution of respondents according to Gender Particulars Male Female Total Frequency 90 10 100 Percent 90.0 10.0 100.0
Distribution of respondents according to Residential status Particulars Urban Rural Total Frequency 74 26 100 Percent 74.0 26.0 100.0
Distribution of respondents according to Age Particulars Less than 25 Year 25-35 Years 35-45 Years 45 above Total Frequency 15 46 26 13 100 Percent 15.0 46.0 26.0 13.0 100.0 IJARMSS | 82
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
Distribution of respondents according to Income Level Particulars Less than Rs. 2,00,000 Rs. 2,00,000- Rs.5,00,000 Rs. 5,00,000- Rs.8,00,000 Rs. 8,00,000 above Total Frequency 24 36 23 17 100 Percent 24.0 36.0 23.0 17.0 100.0
Distribution of respondents according to Education Level Particulars Upto +2 Graduation Post graduation Diploma Professional Qualification Other Total Frequency 20 26 33 9 10 2 100 Percent 20.0 26.0 33.0 9.0 10.0 2.0 100
Distribution of respondents according to Work Line Particulars Business Service Profession Student Total Frequency 38 46 10 6 100 Percent 38.0 46.0 10.0 6.0 100.0
IJARMSS | 83
doc_561492456.docx
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.
Case Study of Customer Satisfaction With Reference to Tata Motor Passenger Vehicles
Abstract: Satisfaction is crucial concern for both customers and organizations. Satisfaction is a subjective concept and therefore difficult to determine. It depends on many factors and varies from person to person and product to product. The importance of customer satisfaction in strategy development for customers and market oriented cannot be underdetermined. Now a day it has become very important factor for each and every organization to enhance the level of customer satisfaction. The overall study reveals that It was found that the customer are mostly satisfied with price , design, safety, mileage, interior space, status brand name, comfort level, spares part and after sale service. Keywords: Customer, Customer satisfaction, Automobile company, passenger vehicles, Tata motors.
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
INTRODUCTION
Satisfaction is crucial concern for both customers and organisations. Satisfaction is a subjective concept and therefore difficult to determine. It depends on many factors and varies from person to person and product to product. The importance of customer satisfaction in strategy development for customers and market oriented cannot be underdetermined. Now a day it has become very important factor for each and every organization to enhance the level of customer satisfaction. Customer satisfaction, a term is used in marketing, it's a measure how product and service supplied by the company meet or surpass customer expectation. Customer satisfaction according to ISO 9000, users opinion about the degree to which its meets its requirements. Customer satisfaction is a highly personal assessment. Customer satisfaction is a measure of post purchase behaviour of the customers. customer expectations meet with the perceived value of goods and service then customer is satisfied but if the perceived value of goods and service is less than the customer expectations than customer is dissatisfied and if the perceived value exceeded the expected value of the goods and service than the customer is delighted. In addition, customers generally want the best possible product or service for a low cost. The perception of the best product or service at lowest price with safety effect the industry and customer segment significantly. Thus customer satisfaction is defined as "The number of the customers or percentage of the total customers, whose reported an experience with a firm, it product or its service exceeds specified satisfaction goods". Customer satisfaction is very important for any business whether it sale the product or services because if the customer is satisfied then they make the repeat purchases and tell other persons like their friends, neighbourhoods, family members etc. about their good experience and satisfied customers tell five other people about their good experience. If
IMPORTANCE OF CUSTOMER SATISFACTION
Customer satisfaction is an important because a higher level of satisfaction can deliver many satisfactions. Those satisfactions are as follows: Loyalty: A highly satisfied customer is a loyal customer. Repeat purchases: A highly satisfied customers buy more products. IJARMSS | 69
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
Referral: A highly satisfied customer tells their friends and family about the product or service. Retention: A highly satisfied customer is less likely to switch brands. Reduced cost: A highly satisfied customer costs less to serve than a new customer. Premium safety: A highly satisfied customer is willing to pay more for the products or service.
INDIAN AUTOMOBILE COMPANY
Peter Drucker called the automobile industry as "the Industry of Industries". Automobile industry has been recognised as one of the drivers of economic growth. During the lastdecade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy.
Market Share
100 80 60 40 20 0 Two wheelers Three wheelers Commercial vehicles passenger vehicles 76.23 3.58 4.32 15.86
The automotive industry of India categorized into the passenger vehicles, two wheelers, commercial vehicles and three wheelers with two wheeler dominant the market. Figure shows that 76.23% of the vehicles sold are two wheelers, nearly 59%of these two wheelers sold are motorcycles and 12% are scooters. The passenger vehicles are categorized into passenger cars, utility vehicles, and multipurpose vehicles. All sedans, hatchback, station wagons, and sport cars fall under the passenger car. The passenger vehicles manufacturers account for 15.86% of market in India. Commercial vehicles are categorized into heavy, medium and light. They account for 4.32% of the market. Three wheelers are categorized into Passenger carrier and good carrier, three wheeler account 3.58% of market share in India.
TATA MOTOR PROFILE
Tata is founded by Jamsetji Tata in 1868. The Tata group comprises over 100 operating companies in seven business sectors: communications and information technology, IJARMSS | 70
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
engineering, materials, services, energy, consumer products and chemicals. The group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries Tata Motors is among the top five commercial vehicle manufacturers, in the world. Tata Motors Limited is India's largest automobile company. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is the world's fourth largest truck and bus manufacturer. The Tata Motors Group's over 55,000 employees are guided by the vision to be ''best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.'
REVIEW OF LITERATURE
It is noteworthy to investigate what research work has been done throughout the world in the context of " Customer satisfaction with reference to Tata Motors Passenger vehicles" so that their contribution in the existing body of literature and gaps in their findings can be explored. While going through review of previous research finding, particularly conducted empirically the researcher came across many studies which covered the various aspects related to this topic but researcher mainly focus attention on those studies which are relevant for this topic. Mahapatra, kumar and Chauhan (2010) mentioned a study on "customer satisfaction, dissatisfaction and post purchase evaluation: an empirical study on small size passenger cars in India" with the main objectives to examine the satisfaction and impact on future purchase decision and explore the performance of different attributes in automobile in giving satisfaction to customer with the sample size of 150 customers and they used the multiple regression techniques and they revealed from this study that customers are highly satisfied with the performance of attributes like pickup, wipers, etc. and other attributes like pollution, engine, quietness, battery performance, and pick up influence the consumer future purchase decisions and consumer give the more importance to these factors. Kurkoti and Prabhu (2011) revealed a study on "Study on Satisfaction with reference to Tata nano car customers in Pune city" with the objectives to determine the customer satisfaction towards Tata Nano, to study the gap analysis and to find out the impact of fire incidences on Nano car users. For this study they taken the sample size of 125 customers and techniques used by them were paired sample, ANOVAs, and Turkey test. They concluded from this IJARMSS | 71
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
study that Nano car customers are not satisfied with the performance and waiting period of car but they satisfied with the safety of car and fire incidences report that has impact on the customer satisfaction. Sharma, Kiran Sharma and Khan (2011) conducted "A study and analysis of customer satisfaction of Tata motors in Jaipur, Rajasthan with the objectives to find out the satisfaction among the customers, market performance and market position of Tata motors. They taken the sample size of 100 customers in Jaipur city and concluded from this study that 73% people feel that safety are affordable whereas 12% do not agree, 74% believe that attractive discount are offered but 26% are not satisfied with the discount offered , but the overall opinion about Tata Motors is very good. Singh (2011) revealed a study on " An empirical review of the product and customer satisfaction of Tata commercial vehicles" to find out the quality of service , performance of Tata motors and to know the consumer perception towards Tata motors with the sample size of 100 customers and used the statistical techniques tables, bar charts etc. This study concluded that consumer prefer the Tata commercial vehicles due to its better quality, brand image, easy availability of service stations, spare part quality etc. Ganesh and Soundarapandiyan (2011) conducted a study on "i10 Hyundai Chennai: customer satisfaction level" with the sample size of 150 customers and tools used percentage analysis, chi square and multiple regression analysis. The objectives of the study was to identify the post purchase behaviour and customer satisfaction level and find the effectiveness of after sales service of customer of Hyundai i10. They revealed from the study that customers are satisfied with the car after purchase because its gives the feel of luxury to customers and a convenience of smaller car in crowded area. It's most stylish as compared to others. Lohana and sharma (2012) conducted a study on "customer satisfaction towards Hyundai cars in Nanded city" with the objectives is to identify the customer preferences and parameter about the Hyundai cars. They have taken the sample of 60. They concluded from the study that 50% customers are satisfied with the overall performance of their vehicle. The customers are satisfied with the fuel efficiency, brand image, after sales service and economy in purchase etc.
IJARMSS | 72
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
Rao and Kumar (2012) revealed study on "Customer satisfaction towards Tata Motors - A study on Passenger cars in Warangal district of Andhra Pradesh" with the objectives to study the customer satisfaction with the usage of vehicles, after sale service, key area of strength, pricing affects, service and quality. They taken the sample of 100 respondents and used the percentage technique. They concluded from the study that majority of customers are satisfied with the safety, dealer service, customer relationship and availability of spares etc.
RESEARCH OBJECTIVES
Every study has some objectives behind it. Present study seeks to achieve the following research objectives: RO1: To evaluate car owner's perception and behaviour pertaining to the purchase and use of cars. RO2: To study the customer satisfaction level of Tata motor passenger vehicles. RO3: To find out the most crucial factor for Customer satisfaction of Tata Motor Passenger vehicles. RO4: To find out the customer loyalty and competitive position of Tata Motors with other brands.
RESEARCH METHODOLOGY
Research design of the present study is exploratory cum descriptive and partially casual in nature, as the study aims at achieving insights into a relatively new phenomenon of A Study of Customer Satisfaction with reference to Tata Motors Passenger division..As the research is aimed at to find out the consumers satisfaction level towards Tata Motors passenger division, so only those were selected who were having selected Tata cars and using them.
SAMPLE SIZE
In this study, sample size of 100 respondents is chosen who are using the Tata car.
SAMPLING TECHNIQUE
Non-probability sampling was the only sampling technique available for the present study. Which produce an objective measure of the reliability of sample estimate? Here simplest non-probability sampling technique 'convenience sampling' was applied. Respondents were approached must all the places e.g. on the road, colleges, markets, houses, offices, etc., by the way of questionnaires.
IJARMSS | 73
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
TOOLS OF DATA ANALYSIS
In the Present study, the data collected were edited, coded and tabulated to make study meaningful. Then data were interpreted and analyzed to get the results for conclusions and recommendations. The data so collected has been analyzed with help of various tools and techniques to fulfill the research objectives. These include percentage table, frequency table, and mean keeping in context with the objective of the study. It was further suitably analyzed by Multi Dimensional Scaling (MDS) method. To conduct the statistical techniques, SPSS (Statistical Package for Social Science) version 18 for windows has been used.
ANALYSIS AND INTERPRETATION OF DATA
The analyses and interpretation of data according to research objectives is as follow:
Ro1: Car owner perception and behaviour
Table1-Time period Particulars Upto 1 Year 1-5 Year 5-10 Year 10-15 year Total Source: based on primary data From the data of sample collected regarding the time period of car they have , it is clearly understand by the data collected are that 33% of them have the car upto the 1 year, 56% have the car in between 1-5 years , 9% have the car in between 5-10 years and only 2% have the car between 10-15 year. Table 2- Purpose of using the Tata car Particulars Commercial Purpose Personal Purpose Both Total Source: based on primary data From the data of sample collected regarding the purpose of car , it is clearly understand by IJARMSS | 74 Frequency 10 80 10 100 Percent 10.0 80.0 10.0 100.0 Frequency 33 56 92 100 Percent 33.0 56.0 9.0 2.0 100.0
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
the data collected that 10 % customers use the Tata cars for commercial purpose , 90% use the car for the personal purpose and 10 % use the car for both commercial and personal purpose. Table 3-How purchased
Particulars Cash Loan Total Source: based on primary data
Frequency 44 56 100
Percent 44.0 56.0 100.0
From the data of sample collected regarding the how customer purchased their car, the table shows that 44% customers purchased the Tata car on cash while 56% purchased on loan. Table 4- Anyone recommend Particulars Yes No Total Source: based on primary data From the data of sample collected regarding that if any one recommended the customers to purchase the Tata cars, it is clearly understand by the data collected that 41% customers recommended by anyone. Table 5- Source of recommendation Particulars Relatives Media Friends Source: based on primary data From the data of sample collected regarding that if anyone recommended them to purchase the Tata car from this 41% are recommended by anyone these include that 18 % are recommended by their relatives, 9% are recommended by the media and 19% are recommended by their friends. Frequency 18 4 19 Percent 43.9 9.8 46.3 Frequency 41 59 100 Percent 41.0 59.0 100.0
IJARMSS | 75
International Journal of Advanced Research in Management and Social Sciences Table 6- Preventive maintenance Particulars Yes No Total Frequency 97 3 100
ISSN: 2278-6236
Percent 97.0 3.0 100.0
Source: based on primary data From the data of sample collected regarding that are customers regularly taking the preventive maintenance of their Tata car its clearly understand by data that 97% customers take the maintenance and only 3% are not take preventive maintenance Table 7- Sources of preventive maintenance Particulars Authorized Dealer Road side Mechanic Total Source: based on primary data From the data of sample collected regarding the preventive maintenance of car 97% take the preventive maintenance of this 91.85 take the preventive maintenance from authorized dealers and 8.2% are take the preventive maintenance from road side mechanic. Frequency 89 8 97 Percent 91.75 8.25 100
Ro2: Factor affecting Tata Motors passenger vehicles
Table 8- Factor affecting the customer Satisfaction Particulars Price Design Safety Mileage Interior Space Status/Brand Name Comfort Level Spares After Sale service Source: based on primary data IJARMSS | 76 Mean 4.07 3.75 3.66 3.78 4.07 3.91 3.88 3.74 3.50 Implications Satisfied Satisfied Satisfied Satisfied Satisfied Satisfied Satisfied Satisfied Satisfied
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
Table depicts that mean score of price, design, safety, mileage interior space, status /brand name, comfort level, spares and after sale service shows that customers are satisfied with Tata motors passenger vehicles.
Ro3: Most crucial factor for Customer satisfaction
Most crucial factor for customer satisfaction For detailed analysis, Multi dimensional scaling (MDS) technique is used for each Factor of
customer satisfaction in context of Tata motors car. MDS yields to perceptual mapping which expounds to find out most crucial factor for customer satisfaction with reference to Tata Motorson a 2 X 2 matrix. RSQ values are the proportion of variance of the scaled data (disparities) in the partition (row, matrix, or entire data) which is accounted for by their corresponding distances. Higher the RSQ value, the better the model explains the variation present in the data. Stress values are Kruskal's stress formula 1.
Number of parameters is 10. Number of data values is 10. Iteration history for the 2 dimensional solution (in squared distances) Young's S-stress formula 1 is used.
Iteration 1 2 3 4 5 6 7 8 9 10 11 For matrix Stress = .05095
S-stress .13072 .10512 .08938 .07923 .07415 .07171 .06994 .06848 .06727 .06626 .06542
Improvement
.02559 .01575 .01015 .00508 .00244 .00176 .00147 .00121 .00101 .00084
RSQ = .97414
IJARMSS | 77
International Journal of Advanced Research in Management and Social Sciences Configuration derived in 2 dimension Stimulus Number 1 2 3 4 5 Stimulus Name Price Mileage Interior Space Attractive look After sale service 1.6390 1.1536 -.1979 -1.0407 -1.5539 1 2
ISSN: 2278-6236
-.7884 .7543 .0993 .8531 .7197
Multidimensional scaling indicates that it is appropriate to represent the results in two dimensions. The variance in the data is accounted for (RSQ=0.97414) with a fairly low level of residual stress (0.05095).
Figure 1- MDS model Results of most crucial factor of customer satisfaction of Tata Motors by Multi dimensional scaling showed that price are the more influencing and primary determinant for customer satisfaction. Mileage and interior space were considered to be important but were determined as secondary determinants. After sale service were found to be less influencing as well as the secondary determinants. IJARMSS | 78
International Journal of Advanced Research in Management and Social Sciences Table 11- Competitive position of Tata Motors
ISSN: 2278-6236
Particulars Maruti Udhog Ltd. Hyundai Motor Ltd. Tata Motors Ltd.
Mean 1. 73 2.43 1.84
This table show that majority of respondents preferred the Maruti Udhog ltd as mean score is highest which 1.73 is, next preferred brand is Tata Motors. Table 12- Recommended the Tata car Particulars Yes No Total Source :based on primary data Frequency 75 25 100 Percent 75.0 25.0 100.0
Table shows that 100 respondents were asked that will they recommended Tata car to anybody in which 75% respondents say that they will recommend car to other person and 25% say that they will not recommended Tata car. Table 13- Repeat purchase
Particulars Yes No Total Source :based on primary data
Frequency 75 25 100
Percent 75.0 25.0 100.0
Table shows that 100 respondents were asked that will they make the repeat purchase of Tata car in which 75% respondents say that they will make the repeat purchase of Tata car and 25% say that they will not make the repeat purchase of Tata car.
CONCLUSION
In this study concluded that mostly Tata customers purchased car on loan, used the Tata car for personal purpose, having the car from 1-5 year and they are recommended by their friends as well as take preventive maintenance from authorised dealer. In case of level of IJARMSS | 79
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
customer satisfaction, It was found that the customer are mostly satisfied with price , design, safety, mileage, interior space, status brand name, comfort level, spares part and after sale service. Finding pertaining to most influencing show that most influencing factor for customer satisfaction in case of Tata Motors were price, mileage and interior space. At the end finding pertaining to competitive position show that customer preferred Maruti as comparison to Tata Motors but mostly customers are loyal with Tata Motors.
REFERENCES
1) Armstrong, G., & Kotler, P. (2005). Managing profitable customer relationship. Marketing: An Introduction (p. 41). New Delhi: Pearson Education. 2) Blois, K. (2009). Consumer Behavior. Textbook of Marketing (pp. 63,113). New Delhi:
Oxford University press. 3) Ganesh, M., & Soundarapandiyan, K. (2011). I 10 Hyundai Chennai Customers:
Satisfaction Level. SCMS Journal of Indian Management, 8(4), 78-90. 4) Gurleen, K. (2011). A Study of pre and post purchase consumer behavior for various
cars brands in Punjab. Radix International Journal of Marketing, 1(2), 100-119. 5) Hanif, M., Hafeez, S., & Adnan Riaz, A. R. (2010). Factors Affecting Customer
Satisfaction. International Research Journal of Finance and Economics, lxii (60), 44-52. 6) Herrmann, A., Xia, l., Monroe, K. B., & Huber, F. (2007). The influence of Price fairness
on Customer Satisfaction: An Empirical test in the context of Automobile Purchases. Journal of Product and Brand Management, 16(1), 49-58. 7) 8) 9) 10)
11)
http:// Tata motors.com retrieved on Aug. 16. 2012 http://Managemnet Study guide.com retrieved on 10 Oct. 2012. http://Scribd.com retrieved on 15 Oct. 2012. http://Tata .com retrieved 20 Aug. 2012. http://wikipedia.com retrieved on 10 Aug. 2012. http://www. Acma report.com retrieved on 8 Oct.2012. http://www. Anthill online.com/Marketing-customer satisfaction retrieved on 8 Aug.
12) 13) 2012. 14) 15) 16)
http://www. Carwale.com retrieved on 27 Aug. 2012. http://www. Expertmanage.com retrieved on 10 Aug. 2012. http://www. Indian Mirror.com/Automobile industry retrieved on 27Aug.2012. IJARMSS | 80
International Journal of Advanced Research in Management and Social Sciences 17) 18) 19) 20) 21) http://www.expertmanage.com retrieved on 9 Oct. 2012. http://www.Infebeam.com retrieved on 12 Sept. 2012. http://www.mairec.org retrieved on 12 Sept. 2012. http://www.scribd.com retrieved on 12 Dec. 2012.
ISSN: 2278-6236
Jahanshahi, A. A., Hajizadeh Gashti, M. A., Mirdamadi, S. A., Nawaser, K., & Sadeq
Khaksar, S. M. (2011). Study the Effects of Customer Service and Product Quality on Customer Satisfaction and Loyalty. International Journal of Humanities and Social Science, 1(7), 253-260. 22) Jain, T. (2010). After Sale Service. Principle of Marketing (1 ed., p. 241). New Delhi:
V.K Global Publication Pvt. Ltd. 23) Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2009). Creation Customer Value
Satisfaction and loyalty. Marketing Management (13 ed., pp. 120-125). New Delhi: Pearson Education. 24) Kurtkoti, A., & Prabhu, S. (2011). A Study of Customer Satisfaction towards Nano Cars
Customers in Pune City. Pravara management review, 10 (2), 28-32. 25) Lohana, S. R., & Sharma, O. (2012). A study on Customer Satisfaction towards
Hyundai cars in Nanded city. International Journal of Marketing and Management Research, 3 (4), 118-138. 26) Mahapatra, S., Kumar, J., & Chauhan, A. (2010). Customer Satisfaction,
Dissatisfaction and Post-Purchase evaluation: An empirical study on small size passenger cars in India. International Journal of Business and Society, 2 (2), 97-108. 27) Malik, G. (2011). A study of customer perception and expectations for Tata Nano. KIIT
Journal of Management, 7 (3), 1-10. 28) Maric, A., & Arsovki, S. (2010). The level of customer satisfaction as one of the goal of
the quality of organization in baker industry. International Journal for Quality Research, 4 (4), 275-281. 29) Michael, C. R., & Massaaki, K. B. (2000). Distribution and Supply chain Management.
Marketing Management (2 ed., pp. 368-370). New Delhi: Vikas Publishing house pvt. ltd. 30) Rao, V. R., & Kumar, R. V. (2012). Customer Satisfaction towards Tata Motors.
South Asian Journal of Marketing and Management Research, 2(4), 127-150. 31) S., G., & Prakasam, K. (2012). A study of Customer satisfaction towards selected IJARMSS | 81
International Journal of Advanced Research in Management and Social Sciences hotels in Bangalore. Golden Research Thoughts, 2 (.4), 1-8. 32)
ISSN: 2278-6236
Saxsena, R. (2007). An Introduction. Marketing Management (3 ed., p. 14). New
Delhi: McGraw hill Companies. 33) Sharma, S. K., Sharma, K., & Khan, M. (2011). A Study and analysis of customer
Satisfaction of Tata Motors in Jaipur. International Journal of Business Management and Economics research, 2(4), 250-257. 34) Shil, N. C., & Huda, M. (2011). Explicating Customer satisfaction: A survey on Private
commercial Banks. Indian Journal of Marketing, 42 (12), 1. 35) Singh, R. (2011). An Empirical review of the Product and Customer satisfaction of
Tata Commercial Vehicles. THAVAN IJRMM, 1(1), 109-120. 36) You, H., Ryu, T., Oh, K., Yun, M., & Kim, K. (2006). Development of customer
Satisfaction models for automotive interior materials. International Journal of Industrial Ergonomics, 36(4), 323-330. Distribution of respondents according to Gender Particulars Male Female Total Frequency 90 10 100 Percent 90.0 10.0 100.0
Distribution of respondents according to Residential status Particulars Urban Rural Total Frequency 74 26 100 Percent 74.0 26.0 100.0
Distribution of respondents according to Age Particulars Less than 25 Year 25-35 Years 35-45 Years 45 above Total Frequency 15 46 26 13 100 Percent 15.0 46.0 26.0 13.0 100.0 IJARMSS | 82
International Journal of Advanced Research in Management and Social Sciences
ISSN: 2278-6236
Distribution of respondents according to Income Level Particulars Less than Rs. 2,00,000 Rs. 2,00,000- Rs.5,00,000 Rs. 5,00,000- Rs.8,00,000 Rs. 8,00,000 above Total Frequency 24 36 23 17 100 Percent 24.0 36.0 23.0 17.0 100.0
Distribution of respondents according to Education Level Particulars Upto +2 Graduation Post graduation Diploma Professional Qualification Other Total Frequency 20 26 33 9 10 2 100 Percent 20.0 26.0 33.0 9.0 10.0 2.0 100
Distribution of respondents according to Work Line Particulars Business Service Profession Student Total Frequency 38 46 10 6 100 Percent 38.0 46.0 10.0 6.0 100.0
IJARMSS | 83
doc_561492456.docx