A Project Report on Customer Satisfaction at Evm Honda

A PROJECT REPORT ON

CUSTOMER SATISFACTION ATEVM HONDA

Dissertation Submitted To MAHATMA GANDHI UNIVERSITY

In partial fulfillment of requirement for Bachelor of Business Management

2006-2009 By

ROSHAN SORLY Reg. No.4086

Under the guidance of

Vilasini Sethumadhavan

Faculty Guide

Chinmaya Vidyapeet

Affiliated to

Mahatma Gandhi University Kottayam, Kerala

CERTIFICATE

The project titled a study on “Customer Satisfaction at EVM Honda” is a

bonafide work done by Mr. Roshan Sorly in partial fulfillment for the

award of the degree of Bachelor of Business Management offered by

Mahatma Gandhi University.

Prof: B C Menon Mrs. Vilasini Sethumadhavan

Principal Faculty Guide

Kochi

30-03-2009

DECLARATION

I hereby declare that this project titled “Customer Satisfaction at EVM

Honda, Vytilla” is an organization work done by me towards partial

fulfillment for the degree of Bachelor of Business Management under

Mahatma Gandhi University, Kottayam.

I further declare that this work is not partly or wholly submitted for any

other purpose and that the data included in the project collected from

various sources, are true to the best of my knowledge.

PLACE: ERNAKULAM ROSHAN SORLY

DATE: 23-03-09

ACKNOWLEDGEMENT

First of all let me express my sincere thanks to Mrs. Kamakshi

Balakrishna, our Directress, Chinmaya Vidyapeet, for her support and

providing me the facilities without which I would not have been able to

complete the project.

I express my sincere thanks to our Principal Mr.BC Menon for his

support and guidance for the completion of this work.

I express my sincere thanks to my guide Mrs.Vilasini Sethumadhavan for

her kind and valuable encouragement for the completion of this work.

I wish to record my profound gratitude to the management of EVM

Honda, Vytilla for providing me an opportunity to carryout my project.

I owe my gratitude to Mr. Sutheesh Mohan Service Developments

Manager of EVM Honda, Vytilla and all the staffs who took all the pain

and risk in providing the relevant information.

My heartfelt thanks to all my friends and well wishers for their valuable

suggestions and help rendered.

Last but not the least, I would like to express my whole hearted thanks to

the invisible, the indomitable God for His blessings to complete the

project on time.

Roshan

CONTENTS

CHAPTER TITLE PAGE NO.

1 Introduction 1

2 Theoretical Framework 6

3 Industrial and Company profile 13

4 Analysis and Interpretation 31

5 Findings, suggestions and conclusion 50

Bibliography

Annexure

LIST OF TABLES

SL NO.

TITLE OF THE TABLEPAGE

NO.

4.1 No of problems experienced in your vehicle 31

4.2 No of times you have returned for the same problem 32

4.3 Ease of obtaining appointment for service 33

4.4 Promptness of front man in opening of job card 34

4.5 Helpfulness in listening servicing needs 35

4.6 Undertaking of specific problems of your vehicle 36

4.7 Courtesy in servicing you 37

4.8 Prior explanation of job to be carried out and cost estimate 38

4.9 Availability of parts to serve your vehicle 39

4.10 Appearance of service area 40

4.11 Appearance of customer lounge 41

4.12 Reasonable time taken for service 42

4.13 Quality of repairs carried out 43

4.14 Job satisfactorily completed at first time 44

4.15 Timely delivery of vehicle 45

4.16 Appearance of vehicle at the time of delivery 46

4.17Explanation of work done and charges at the time of delivery

47

4.18 Explanation of maintenance tips at the time of delivery 48

4.19Based on your overall experience would you recommend EVM Honda workshop to friend or relative

49

LIST OF DIAGRAMS

DIAGRAM NO.

DIAGRAMPAGE

NO.

4.1 No of problems experienced in your vehicle 31

4.2 No of times you have returned for the same problem 32

4.3 Ease of obtaining appointment for service 33

4.4 Promptness of front man in opening of job card 34

4.5 Helpfulness in listening servicing needs 35

4.6 Undertaking of specific problems of your vehicle 36

4.7 Courtesy in servicing you 37

4.8Prior explanation of job to be carried out and cost estimate

38

4.9 Availability of parts to serve your vehicle 39

4.10 Appearance of service area 40

4.11 Appearance of customer lounge 41

4.12 Reasonable time taken for service 42

4.13 Quality of repairs carried out 43

4.14 Job satisfactorily completed at first time 44

4.15 Timely delivery of vehicle 45

4.16 Appearance of vehicle at the time of delivery 46

4.17Explanation of work done and charges at the time of delivery

47

4.18 Explanation of maintenance tips at the time of delivery 48

4.19Based on your overall experience would you recommend EVM Honda workshop to friend or relative

49

CHAPTER ONEINTRODUCTION

INTRODUCTION

Marketing research has more significance in the present scenario.

Marketing research interrelated research and management.

Marketing research is the function which links the consumer,

customer and public to the marketer through information.

Information used to identify and define marketing opportunities and

problems. Generate, refine and evaluate marketing action, monitor

marketing performance and improve understanding marketing as a

process.

Concept of Service Marketing

Service is defined as an action of organizations that maintains and

improves the well being and functions of people.

Features of Marketing Services

Intangibility : Services are intangible in nature and as such

complicate the decision makers while performing and displaying.

While selling or promoting services we need to concentrate on

benefits and satisfaction which a buyer can derive after buying.

Perish Ability : The services can’t be stored or ownership is not

affected in the process of selling the services.

Simultaneity : Services can’t be delivered to customers or users.

It doesn’t move through channels of distribution. For availing

services it is essential that the users are brought to providers or the

providers go to the users.

In this globalized world, service plays a major role to attract

customers. The above features shows that it is quite difficult to

measure the satisfaction derived from the services provided. But it is

very important to measure these satisfaction levels.

Statement of the problem

Nowadays focus is on customers. Objectives like revenue, profit and

market shares are important but they will follow only by acquiring

customer competence. In India even as late as in 1980, the customers

were benefit with alternatives; he would uncomplainingly buy

whatever was dished out by the seller. Not any more. Today’s choice

empowered customer, supported by competitive environment, global

quality and new economic realities, decides the fate of the marketer.

Producers have become price takers rather than price setters. It is

worthwhile to asses what these changes have brought and the

customers attitude and satisfaction towards the automobile industry.

Customer satisfaction is a business term which is used to capture the

idea of measuring how satisfied an enterprise’s customers are with

the organization’s efforts in the market place. It is seen as a key

business performance indicator and is part of the four perspectives of

the balanced scorecard. It is an ambiguous and abstract concept and

the actual manifestation of the state of satisfaction vary from person

to person and product/service to product/service. The state of

satisfaction depends on a number of both psychological and physical

variables which correlate with satisfaction behaviors such as return

and recommended rate. The ten domains of satisfaction are:

Quality, Value, Efficiency, Timeliness, Ease of access, Environment,

Interdepartmental team work, Frontline service behaviors,

Commitment to the customer and Innovation.

Objectives of the Study

To know the level of overall customer satisfaction at EVM

Honda, Vytilla

To analyze the major factors influencing customer satisfaction

To identify and define the problems faced by the customers

To know the importance of service in the present scenario with

refers to the customers at EVM Honda

To suggest measure for improvement

Scope of the Study

In this project work an attempt is made to study the level of customer

satisfaction at EVM Honda. The study aims at finding the

satisfaction experienced by the customers and suggest steps for

improving the loyalty of customers towards the EVM Honda.

Research Methodology

Method of data collection

The data collected constitutes both primary and secondary.

Primary Data

Primary data are collected by making direct interview with the

authorities, officials & observation and also by distributing

questionnaires to the population.

Secondary Data

Secondary data are collected from various records kept in

departments, company manuals, magazines & websites.

Survey method was adopted to get the primary data and the

questionnaire was designed as an instrument of survey method. The

total sample size is 60 which were collected from the EVM Honda

workshop in vytilla.

SOURCES OF SECONDARY DATA

Websites of company and other search engines.

Various books on research, marketing and retail management.

Various magazines, articles and reports on automobile industry.

SAMPLE DESIGN

The total sample size is 60 customers, which was collected from

EVM Honda workshop at Vytilla.

TOOLS AND TECHNIQUES OF DATA COLLECTION

Questionnaire was designed as a main instrument to conduct survey.

A questionnaire consists of a set of questions presented to

respondents for their answers. The questions in this survey

questionnaire involve the both open end and close ended questions,

which are sufficient enough to analyze the customer satisfaction

level.

Limitations

The findings and observations are based on the answers given by

the respondents and thus it is subject to personal bias

The company details are collected from the manuals and

broachers provided. Thus there were many hindrances in the

availability of data.

Change in trends and attitudes can influence customer’s

preferences.

Due to time and money constraints the study was limited to small

sample size.

CHAPTER TWO

THEORETICAL FRAMEWORK

THEORITICAL FRAMEWORK ON CUSTOMER

SATISFACTION

Marketing is a societal process by which individual and groups

obtain what they need and want through creating, offering and freely

exchanging products services of value with others. Needs describe

basic human requirements. These needs become wants when they are

directed to specific objectives that might satisfy the needs.

Understanding customer needs and wants is not always simple. Some

customers have needs of which they are not fully conscious or they

cannot articulate these needs. Thus these needs can be classified as

Needs

People satisfy their needs and wants with products. The product or

offering will be successful if it delivers value and satisfaction to the

target buyer and the buyer chooses between different offerings on the

basis on which is perceived to deliver the most value. Value can be

defined as the ratio between what the customer gets and what he

gives. The customer gets benefits and assumes costs. The benefits

include functional benefits and emotional benefits the costs include

monitory costs, time costs, energy costs and psychic costs.

Thus today’s customers face a vast array of product and brand

choices, prices and suppliers.

Stated needs

Unsatisfied needs

Real needs Secret needs

Delight needs

They are value-maxi misers, within the bounds of search cost and

limited knowledge, mobility and act on it. Whether or not the offer

lines up to the value expectation affects both satisfaction and

repurchase profitability.

Satisfaction is a function of perceived performance and expectations.

It is a person’s feelings of pleasure and disappointment resulting

from comparing a product’s perceived performance in relation to

his/her expectations. Thus three basic levels of satisfaction and

categories of customers are:

Satisfied customers occur when you provide them with what you

promised or they expected. That is if the performance matches the

expectations, the customer is satisfied.

Satisfied customers:

Stays loyal longer

Is equal

to

Delighted Customers

What you provide

What you promised or what

they expected

Satisfied Customers

Dissatisfied Customers

Buys more as the company introduces new products and upgrade

existing products.

Talks favorably about the company and its products and

advertising and is less sensitive to price.

Cost less to serve than new customers because transactions are

routinised.

Dissatisfied customers occurs when

If performance falls short of expectations the customer is

dissatisfied.

Dissatisfied customers:

Stop purchasing or start looking for an alternative supplier.

Talk’s unfavorably about the company.

Pays more attention or go in search of competing brands.

Generally don’t come back.

Delighted customers occur when what is provided is more than what

is promised or expected

What you provide


they expected

What you provide


they expectedIs more than

Is less than

Delighted customers:

Stay loyal to business for life.

Talks more favorably about their delightful experience.

Doesn’t go in search for new alternatives.

Their transactions are more routinized and always upgrade the

knowledge about the company and its products.

Improving Customer Satisfaction – Once a Customer

Satisfaction Measurement Program is in Place

Customer satisfaction research is not an end unto itself. The purpose,

of course, in measuring customer satisfaction is to see where a

company stands in this regard in the eyes of its customers, thereby

enabling service and product improvements which will lead to higher

satisfaction levels. The research is just one component in the quest to

improve customer satisfaction. There are many others including:

Top management commitment,

Linking of customer satisfaction scores with employee and

management monetary incentives,

Recognition of employees who contribute to customer’s

satisfaction,

Identification, measurement and tracking of operational variables

which drive satisfaction scores,

Customer-based improvement goals,

Plans for improving operational variables,

Incorporation of customer satisfaction skills into employee

training programs ,

Measurement of and plans for improvement of employee

satisfaction,

Changes in corporate hiring practices

Top Management Commitments

Top management through its actions, must show that customer

satisfaction is important to it. This can be done in several ways.

Front-line employees and suppliers. Incentive programs can be

structured so that all employees in an organizational unit receive

compensation if the unit’s customer satisfaction goals are met.

Additionally, exemplary service on the part of individual employees

can be rewarded on an ad hoc basis. Management incentives do not

have to result in incremental expenditures; a relocation of current

incentives will suffice. For example, if 100% of a manager’s bonus

is dependent upon meeting operational and sales goals, the mix could

be changed to include customer satisfaction goals.

Recognition of Employees who contribute to Customer’s

Satisfaction

This is an inexpensive way to foster customer satisfaction. The key

to success are:

Making sure that all employees are aware of why a particular

employee is being recognized

Making sure that each employee being recognized is worthy of

recognition

Identification, Measurement and Tracking of Operational

Variables when Drive Satisfaction Scores

The results of a customer satisfaction survey need to be evaluated to

determine what needs to be improved. For example, a survey may

find that customer waiting times need to be reduced. The next step

should be to quantify actual customer waiting times, and to set goals

and strategies for reducing them. Goals should be as specific as

possible. It is better to say “we want to reduce wait times during

peak periods from an average of twenty minutes to fifteen minutes

by the end of June,” than to say “we need to reduce customer waiting

times.”

Customer-Based Improvement Goals

This ties directly to the previous point. Once you have identified

what needs to be improved, you need to develop a plan for

improving each identified area. Such plans need to be based on what

customers really need, rather than what management believes to be a

good goal. Using the previous example, if customers really desire

wait times of ten minutes or less, having management dictate that

wait times must be reduced to fifteen minutes will have limited

appeal with customers. You may need to do a separate survey with

customers to actually set appropriate goals. If this is not

economically feasible, atleast talk to a number of customers and gain

their input before setting a goal.

Plans for Improving Operational Variables

Once you have established what needs to be improved, and how

much it needs to be improved, plans need to be developed to make

improvement happen. The keys to successful planning are to:

Involve front-line employees and management in the planning

process,

Evaluate the success of plans once they have been put into place.

This is done by measuring actual improvement in operations and

customer satisfaction.

Incorporation of Customer Satisfaction Skills into Employee

Training Programs

Employee training programs should be modified to include:

A description of the importance of customer satisfaction to the

company,

Descriptions of what keeps customers satisfied,

A description of customer satisfaction measurement programs,

description programs, and incentive programs,

Specific employee programs expectations with regard to keeping

customers satisfied.

Measurement of and Plans for Improvement of Employee

Satisfaction

Unhappy employees will have difficulty in keeping customers

happy. You should consider measuring the satisfaction levels of

employees, and then developing action plans to improve employee

satisfaction.

Changes in Corporate Hiring Practices

Certain type of people will do a better job of satisfying customers

than will other types of people, regardless of the quality of training,

reward and recognition programs. Once you have determined the

types of employee behaviors are important to customers, you should

incorporate this knowledge into your hiring practices.

CHAPTER THREE

INDUSTRIAL

AND

COMPANY PROFILE

INDUSTRY PROFILE

TWO-WHEELER INDUSTRY

The two-wheeler industry in India has grown rapidly in the country

since the announcement of the process of liberalization in 1991 by

the then finance minister Dr. Manmohan Singh, now Prime Minister

of India.

In the period 2006 - 07 the total number of the two wheelers and

three wheelers produced in India, were around 9 million. The sales

pertaining to two wheelers in the period 2006 - 07 was 7,857,548,

which was a growth of 11.41 %. In the same period the motorcycle

exports from India was 321,321 units.

Previously, there were only a handful of two-wheeler models

available in the country. Currently, India is the second largest

producer of two-wheelers in the world. It stands next only to China

and Japan in terms of the number of two-wheelers produced and the

sales of two-wheelers respectively. In the year 2005-2006, the annual

production of two-wheelers in India stood at around 7600801 units.

The trend of owning two-wheelers is due to a variety of facts

peculiar to India. One of the chief factors is poor public transport in

many parts of India. Additionally, two-wheelers offer a great deal of

convenience and mobility for the Indian family.

Bajaj auto began trading in imported Vespa Scooters in 1948.

Meanwhile Automobile Products of India (API) commenced

production of scooters in the country in the early 50's. Until 1958,

API and Enfield were the only producers of two-wheelers in India.

However, Bajaj signed a technical collaboration in 1960 with

Piaggio of Italy to produce Bajaj Scooters. This deal expired in 1971.

The condition of motorcycle manufacturers was no different. Until

the mid 80's, there were only three major motorcycle manufacturers

in India namely Rajdoot, Escorts, and Enfield. The two-wheeler

market was opened to foreign manufacturers in the mid 80's. The

industry, which had seen a smooth ride before, faced fierce foreign

competition.

Motorcycle companies like the Yamaha, Honda, and Kawasaki, set

up shop in India in collaboration with various Indian two-wheeler

companies. Companies like Escorts, Rajdoot and faced immense

competition from smaller 100 cc Japanese technology motorbikes.

Bikes manufactured by Hero Honda, the only company

manufacturing four-stroke bikes at that time, gained massive

popularity.

In the mid 80's, Kinetic introduced a variomatic gearless scooter in

collaboration with Honda. This scooter became instantly popular

with the younger generation, especially people who found it difficult

to use geared scooters. The introduction of scooterettes created

another segment for people such as women and teenagers who could

not get used to driving either motorcycles or gearless scooters. Many

companies such as Kinetc, TVS, and Hero also started

manufacturing mopeds that proved immensely popular with people

who wanted a simple riding machine.

The change in the government's policy owning to pollution control

norms and the Kyoto agreement saw the phasing out of two stroke

two-wheelers from production. Currently there are around 10 two-

wheeler manufacturers in the country, they being Bajaj, Hero, Hero

Honda, Honda, Indus, Kinetic, Royal Enfield, Suzuki, TVS, and

Yamaha.

The latest trend in the two-wheeler market is the introduction of

electrically operated vehicles from a range of manufacturers such as

Indus and Hero. These can be recharged from convenient household

electrical points. The only disadvantage is speed, which is restricted

to around 25 miles per hour.

Currently, the motorcycle market is witnessing a demand for higher

volume engines. Previously, the 100 c bikes were very popular

owning to the high fuel efficiency offered. However, the market is

maturing fast. Sensing this movement, Bajaj has introduced the Bajaj

Pulsar, with 150, 180 and 200cc engines with Dual Twin Spark

Ignition (DTSi) technology.

Demand Drivers

The demand for two-wheelers has been influenced by a number of

factors over the past five years. The key demand drivers for the

growth of the two-wheeler industry are as follows:

Inadequate public transportation system, especially in the semi-

urban and rural areas

Increased availability of cheap consumer financing in the past 3-

4 years

Increasing availability of fuel-efficient and low-maintenance

models

Increasing urbanization, which creates a need for personal

transportation

Changes in the demographic profile

Difference between two-wheeler and passenger car prices, which

makes two-wheelers the entry level vehicle

Steady increase in per capita income over the past five years

Steady increase in per capita income over the past five years

The present generation is using more two wheelers

MAJOR PLAYERS IN THE TWO WHEELER SECTOR

Honda

Hero Honda

Bajaj Auto

TVS Motors

Yamaha

Suzuki

Kinetic

Royal Enfield

Honda set to zoom past industry in two-wheelers

Despite a slowdown in the two-wheeler industry, which registered a

mere 1.27% growth between April-December at 61,52,804 units,

Honda Motorcycle and Scooter India (HMSI) is targeting around

15% growth in 2009-2010 at 12 lakh units as compared to 10.5 lakh

units that it expects to sell by the end of the current financial year.

http://en.wikipedia.org/wiki/Royal_Enfield

http://en.wikipedia.org/wiki/TVS_Motors

http://en.wikipedia.org/wiki/Bajaj_Auto

http://en.wikipedia.org/wiki/Hero_Honda

At a time when retail finance is taking its toll on the overall demand,

the company is betting big on the Indian market and has outlined an

investment of Rs 300 crore in the country.

“Though retail financing continues to be a problem but the

fundamental demand for two-wheelers is still very high and we

expect to sell over 12 lakh units in the coming financial year with

new models and few variants lined up during this period,” says

Shinji Aoyama, president and CEO, HMSI.

According to Aoyama, the company will invest Rs 300 crore in the

Indian market over the next three years to increase capacity and

enhance its product portfolio. This will include the introduction of a

100cc bike from HMSI in 2010.

"We will certainly come up with an entry-level 100cc bike in India

next year and the company plans to sell around 2,00,000 bikes in the

first year of launch," he says, adding that though its 100cc bike will

be sporty but there could be some cannibalisation of the 100cc bikes

currently being produced by Hero Honda Motor India, a joint venture

partner of Honda Motor Company of Japan.

The company, on Friday, launched two super bikes that will compete

with the high-end bikes from the stable of Yamaha, Ducati and

Suzuki Motorcycle. The CBR 1000RR Fireblade and the CB1000R

are priced at Rs 12.5 lakh and Rs 9.5 lakh respectively and will be

sold in the country as completely build units, imported from Japan

and Europe. Honda Motorcycle and Scooter India have set up two

company owned showrooms, the Honda Wing World, in Delhi and

Mumbai to retail these bikes in the domestic market. "There is an

estimated demand of 400 units of high-end bikes in the country and

we expect to sell less than 100 units of these in a year," says NK

Rattan, vice president (sales and marketing), HMSI.

HMSI registered a growth of 21.94% in January at 90,796 units as

against a dip of 3.95% in the two-wheeler industry at 5, 81,742 units.

COMPANY PROFILE

Honda Motor Co., Ltd. operates under the basic principles of

"Respect for the Individual" and "The Three Joys" — commonly

expressed as The Joy of Buying, The Joy of Selling and The Joy of

Creating. "Respect for the Individual" reflects their desire to respect

the unique character and ability of each individual person, trusting

each other as equal partners in order to do our best in every situation.

Based on this, "The Three Joys" expresses their belief and desire that

each person working in, or coming into contact with their company,

directly or through or products, should share a sense of joy through

that experience.

In line with these basic principles, since its establishment in 1948,

Honda has remained on the leading edge by creating new value and

providing products of the highest quality at a reasonable price, for

worldwide customer satisfaction. In addition, the Company has

conducted its activities with a commitment to protecting the

environment and enhancing safety in a mobile society.

The Company has grown to become the world's largest motorcycle

manufacturer and one of the leading automakers. With a global

network of 501* subsidiaries and affiliates accounted for under the

equity method, Honda develops, manufactures and markets a wide

variety of products, ranging from small general-purpose engines and

scooters to specialty sports cars, to earn the Company an outstanding

reputation from customers worldwide.

Honda Philosophy

Basic Principles:

Respect for the individual. The Three Joys (buying, selling and

creating)

Company Principle:

Maintaining a global viewpoint, we are dedicated to supplying

products of the highest quality, yet at a reasonable price for

worldwide customer satisfaction.

Management Policies:

Proceed always with ambition and youthfulness.

Respect sound theory, develop fresh ideas, and make the most

effective use of time.

Enjoy work and encourage open communication.

Strive constantly for a harmonious flow of work.

Be ever mindful of the value of research and endeavor.

Dreams inspire them to create innovative products that enhance

mobility and benefit society. To meet the particular needs of

customers in different regions around the world, they base their sales

networks, research and development centers and manufacturing

facilities in each region. Furthermore, as a socially responsible

corporate citizen, they strive to address important environmental and

safety issues.

Research and Development

Each and every Honda associate takes the customer’s point of view

as they strive to help everyone everywhere share the joy of mobility.

That’s why Honda always welcomes new challenges as they work to

benefit society and the environment, today and tomorrow. New

challenges for the future.

Honda is constantly involved in technological research and

development to help people now and in the future. These

technologies range from new materials and new sources of energy, to

new power trains for maximum performance and minimum eco-

impact, to new work in decoding the rice genome for various

applications. Currently, Honda is engaged in a project to develop a

next-generation clean diesel engine. Another project, in cooperation

with the Research Institute for Innovative Technology for the Earth

(RITE), aims to produce ethanol from cellulosic biomass, a

promising, secure supply of environmentally responsible alternative

fuel.

Honda also studies human anatomy and physiology so that they can

make innovative products that enhance safety. The company

conducts original research into new forms of mobility that coexist in

harmony with people and serve society. The latest, most advanced

version of ASIMO, Honda’s bipedal humanoid robot, now moves

freely, shares tasks with humans, and even recharges itself -- a

significant achievement in independent action.

Since its establishment, Honda has always “dreamed skyward.” This

perspective recently led to development of the advanced light jet

HondaJet. With delivery scheduled to start in 2010, Honda has begun

construction of its production facility in the U.S. Thus, Honda

always aims higher -- creating value that meets each country’s needs,

bringing products speedily to market, and constantly enhancing their

safety and environmental performance.

Manufacturing and Distribution

Quality, and nothing but quality, is essential to winning and

enhancing customer trust. What supports Honda quality? They

depend on the passionate dedication of Honda associates to serve

customers with Honda quality. They speak the universal language of

quality to earn the trust of customers in every country, and challenge

themselves to always make products that surpass their great

expectations. Strengthening craftsmanship globally

Honda began manufacturing motorcycles in Belgium in 1963. In

1982, Honda became the first Japanese automaker to produce

passenger cars (the Accord) in the U.S. Since then, Honda has

established independent local operations around the world for

research, development, marketing, and production.

Through the introduction of Honda’s flexible manufacturing system,

Honda continues reducing the time and resources necessary to launch

new models into production and improving the efficiency of

manufacturing operations that meet regional needs. Moreover, the

grouping of production processes into cohesive units has improved

the working environment, raised product quality, and further

accelerated production.

By 2010, new Japanese and international auto production facilities

will begin operation, and they will concentrate motorcycle

production in Japan as a worldwide source of innovation.

Construction of a new engine factory and automobile plant in Japan

is progressing steadily, together with improved production capability

for building automatic trans-missions (AT). These developments

reflect the strength of far-reaching production advancements.

Sales and ServiceBy creating products and services that highlight

the core values that make Honda unique, they would like to provide

their customers with joy and excitement beyond their expectations.

Accordingly, the Honda brand stays a step ahead of the diverse needs

of their customers, always offering new possibilities for richer, more

rewarding lifestyles. In this way, Honda products enhance customers'

enjoyment of life. Expanding customer satisfaction activities “Next

time, too… a Honda.” The ultimate goal of their sales activities

worldwide is to satisfy our customers so that they will continue to

come back for more Honda quality products. To ensure this, they

have implemented a vigorous Customer Satisfaction (CS) program

covering all of their sales companies. This program aims to enhance

customer satisfaction by strengthening their attention to detail in

product and service activities through all stages of sales, delivery,

and after-sales service.In March 2006, all sales channels in Japan

were merged under the name of Honda Cars, providing all Honda

automotive brands through a single sales network that is easier for

customers to understand. They will continue to strengthen sales and

services targeted to regional needs and tailored to customers in each

region, with an extensive product lineup backed by IT support. Thus,

they can continue to enrich their customers’ lifestyles as only Honda

can.DEALER PROFILEEVM Group of Companies entered in the

Business of Automobile Sector in June 2001 by opening the

exclusive dealership of Honda Motor Cycle and Scooter India Pvt

Ltd. (HMSI) for the District of Cochin and at present for Trivandrum

also. They could gather about 11000 happy customers during the last

3½ years in Cochin alone and more than 4500 in Trivandrum, where

Sales, Spares and Service work is carried out under the same roof.

Both the Honda Dealerships are functioning in their own land and

buildings.In Cochin they have at present two authorized service

centers and one is shortly to be open in the hill areas of this district.

EVM Honda is the first Dealer to roll out a Mobile Service Van with

the motto “Reach Customer”. They stood first in India to get ISO

Certification among all Honda Dealers. In Cochin adjacent to the

main dealership, work of a Hi-Tech Service Center with all amenities

is in progress and is expected to open very shortly. Adding to their

achievement they got another Dealership of Honda Two Wheelers in

the Capital town of Kerala-Trivandrum in 2003. This Dealership

captured good market share. They are closely associated with M/s

Deedi Automobiles Trivandrum, Exclusive Dealers for Bajaj Two

Wheelers & Three Wheelers of this District.Started in 1935 as a

small entrepreneur EVM Group could spread the wings in many

business sectors:-Cultivation and Selling of Hill produce like

Cardamom, Cashew and Lemon grass oil including its exports.

1) Supply of Natural Rubber and Rubber products to popular tyre

manufacturing Companies of India including Rubber crumbing

factories.

2) Entertainment Industry - More than 20 Movie houses spared in

Kerala among which “Kavitha” at M.G. Road Ernakulam is

undoubtly best in Kerala.

3) C&F Agent for TATA Tea & Coffee and Distribution of

Reliance Petro Chemicals etc and Fleet owners of Trucks in the

State.

4) Tourism Development through Three Star Hotels and Resorts

like Hill view in Munnar, Mountain Club Resorts at

Chinnakanal, Isola-Di-Cocco Beach resort at Puvar (TVM),

which is tourist’s favourites, and Hotels at Adimali and

Kothamangalam.

The founder of our Group Mr. EV Mathai passed away on October

1999 but his dreams are now carried on by his six sons who are

united to conquer anything that come their way

FACILITIES OFFERED BY EVM HONDA

1. All service facilities of a dealer workshop such as:

a) Free service and warranty jobs even for vehicles sold by other

dealers and other states.

b) Periodic service and running repairs for any nature of jobs.

c) Quick services – waits and take for minor repairs.

d) Water service

e) Body polishing.

2. Body repair and full painting with dust free paint booth. In case of

accident, just inform them and they will undertake the whole repair

process including Insurance and Police formalities without any

additional financial burden to customers. If needed they will arrange

on spot survey.

3. 24 hours break down attending.

4. Renewal of insurance.

5. Genuine Honda spare parts.

6. Exchange of your vehicle.

7. Provision for special EVM Annual Maintenance Contract

package.

Workshops

Kothamangalam, Muvattupuzha, Piravom, Koothattukulam,

Mulanthuruthy, Vytilla

Topics handled at EVM Honda

1. Vehicle delivery at promised delivery time.

2. Reasonable time for servicing.

3. Washing quality of vehicles.

4. Dealer workshop vales business with customers.

5. Reasonable charges for servicing.

6. Quality of repairs carried out.

7. Courtesy in serving the customers

8. Job satisfactorily completed the first time.

9. Final inspection

10.Road test

11.Dealing with customer satisfaction index cards.

12.Dealing with initial quality study and owners manual feedback

cards.

13.Repeat job handling

Customer Satisfaction at EVM Honda

1. Special customer vehicles to be assigned to be assigned to a

separate group in the workshop. This will enhance customer

relationship building.

2. Service advisors, supervisors and technical advisors mapping and

training.

3. Linkage of service advisor with the customers – each customer

shall have specific advisor for better understanding of customer

needs.

4. Retention of quality manpower through motivation, adequate

salary package and good working conditions.

5. Service advisor meet once in a month, in each city.

6. Formation of quality circle.

7. Repeat job in an area of concern. Computer software for

capturing repeat job based on demanded repairs by the customers

implemented at dealer workshop.

8. Fairness of fees in an area of concern. Service advisors shall

explain to the customers the charges for the job.

9. Follow up to be done by workshop staff with special customers.

10.During post service follow up customer shall be asked to rate

over all satisfaction with the workshop on Excellent, Very good,

Good, Fair, Poor scale.

11.Based on customer feedback cards, parameter wise analysis to be

done at workshop counter measures.

12.Closure of all negative feedback cards within 48 hours.

13.Free check up camps for customer vehicles to be organized on

monthly basis by dealer workshops.

Survey covers performance of the workshop on following factors:

1. Service Initiation

2. Service advisor

3. In Service Experience

4. Service delivery

5. Service quality

6. Vehicle Performance

The six factors along with the attributes is under

Service Initiation

Ease of obtaining appointment for service

Promptness of front man in opening of job card

Service Advisor

Explanation of service to be performed

Treated with courtesy & respect

Honesty

Knowledge / expertise

Fulfillment of commitments’

Listening to request

Asking questions to clarify needs

Understanding the problem with vehicle

Prior explanation of job to be carried out and cost estimate

Vehicle Performance

No of problems experienced in your vehicle

No of times the customer have returned for the same problem

In service experience

Customer lounge cleanliness

Customer lounge comfort

Service delivery

Explanation of work performed

Explanation of charges

Cleanliness & appearance of vehicle

Reasonable time taken for service

Explanation of maintenance tips at the time of delivery

Service Quality

Ability to fix problem right first time

Ability to diagnose problems

Quality of work performed

Thoroughness in fulfilling requests

Availability of parts for service

The satisfaction is also measured in terms of the following statement

of the customers

Likelihood of recommending EVM Honda workshop to friends or

relatives

CHAPTER FOUR

ANALYSIS

AND

INTERPRETATION

ANALYSIS AND INTERPRETATION

Table 4.1: No of problems experienced in vehicle

Attributes No: of respondents Percentage

None 8 13

One 22 37

Two 12 20

Three 11 18

Four 7 12

Total 60 100

Diagram 4.1:

The above diagram shows the no of problems experienced in vehicle

by the customer once was rated 37%, twice by 20%, thrice by 18%,

four by 12% and none by 13%.

Table 4.2: No of times customer has returned for the same problem


None 17 28

One 20 33

Two 18 30

Three 2 3

Four 3 5

Total 60 100

Diagram 4.2:

The above diagram shows that the no of times customer has returned

for the same problem to the workshop once was rated 33%, twice by

30% and 28% are completely satisfied with the service and they had

not returned to the workshop with the same problem.

Table 4.3:

Ease of obtaining appointment for service


Excellent 5 8

Very Good 10 17

Good 29 48

Fair 14 23

Poor 2 3

Total 60 100

Diagram 4.3:

48% of respondents feel that ease of obtaining appointment for

service at the workshop was good, fair by 23%, very good by 17%,

excellent by 8% and 3% rated poor.

Table 4.4:

Promptness of front man in opening of job card


Excellent 3 5

Very Good 13 22

Good 27 45

Fair 15 25

Poor 2 3

Total 60 100

Diagram 4.4:

Promptness of front man in opening of job card is good in view of

45% of respondents, fair by 25%, very good by 22%, excellent by

5% and poor by 3%.

Table 4.5:

Helpfulness in listening to servicing needs


Excellent 1 2

Very Good 17 28

Good 30 50

Fair 9 15

Poor 3 5

Total 60 100

Diagram 4.5:

Out of 60 respondents 50% feel that helpfulness in listening to

servicing needs by the employees are good, 28% rated very good,

5% poor, 15% fair and 2% excellent.

Table 4.6:

Undertaking of specific problems of your vehicle


Excellent 1 2

Very Good 12 20

Good 23 38

Fair 21 35

Poor 3 5

Total 60 100

Diagram 4.6:

38% of the respondents feel that the service advisor was able to

detect the problem with the vehicle and rated good, 35% fair, 20%

very good, 2% excellent and 5% poor.

Table 4.7:

Courtesy in servicing youAttributes No: of respondents Percentage

Excellent 3 5

Very Good 7 12

Good 35 58

Fair 11 18

Poor 4 7

Total 60 100

Diagram 4.7:

Courtesy in servicing is good in view of 58% of respondents, fair by

18%, very good by 12%, excellent by 5% and 7% rated poor.

Table 4.8:

Prior explanation of job to be carried out and cost estimate


Excellent 1 2

Very Good 13 22

Good 27 45

Fair 17 28

Poor 2 3

Total 60 100

Diagram 4.8:

45% of the respondents rated well for the prior explanation given by

the service advisor at the time of receipt of vehicle were good, fair

by 28% and very good by 22% while 3% rated poor.

Table 4.9:

Availability of parts to serve your vehicle


Excellent 5 8

Very Good 26 43

Good 19 32

Fair 6 10

Poor 4 7

Total 60 100

Diagram 4.9:

Out of 60 respondents 43% of them rated very good at the availabity

of parts, 32% good, 8% excellent and 10% fair while 7% rated poor.

Table 4.10:

Appearance of service area


Excellent 10 17

Very Good 15 25

Good 28 47

Fair 7 12

Poor 0 0

Total 60 100

Diagram 4.10:

Appearance of the service area was rated well by 47% of the

respondents, 25% very good, 17% excellent and 12% fair and none

of them rated poor.

Table 4.11:

Appearance of customer loungeAttributes No: of respondents Percentage

Excellent 9 15

Very Good 15 25

Good 25 42

Fair 11 18

Poor 0 0

Total 60 100

Diagram 4.11:

Appearance of the customer lounge was rated good by 42% of the

respondents, 25% very good, 15% excellent and 18% fair.

Table 4.12:

Reasonable time taken for service


Excellent 5 8

Very Good 11 18

Good 32 53

Fair 9 15

Poor 3 5

Total 60 100

Diagram 4.12:

Out of 60 respondents 53% rated good for reasonable time taken for

service, 18% very good, 8% excellent, 15% fair and 5% rated poor.

Table 4.13:

Quality of repairs carried out


Excellent 4 7

Very Good 9 15

Good 27 45

Fair 15 25

Poor 5 8

Total 60 100

Diagram 4.13:

Out of the 60 respondents 45% feel that the quality of the repairs

carried at the workshop is good, 15% rated very good, 25% fair, 7%

excellent and 8% rated poor.

Table 4.14:

Job satisfactorily completed at first time


Excellent 4 7

Very Good 10 17

Good 23 38

Fair 19 32

Poor 4 7

Total 60 100

Diagram 4.14:

From above it can be intercepted that on the first visit 38%

respondents feel that the workshop was able to fix the problem. Out

of 60 respondents overall rating is 17% very good, 7% excellent,

32% fair and 7% rated poor.

Table 4.15:

Timely delivery of vehicle


Excellent 4 7

Very Good 13 22

Good 28 47

Fair 14 23

Poor 1 2

Total 60 100

Diagram 4.15:

Out of 60 respondents 47% rated that they received the vehicle on

time, 22% very good, 7% excellent, 23% fair and 2% rated poor.

Table 4.16:

Appearance of vehicle at the time of delivery


Excellent 8 13

Very Good 19 32

Good 21 35

Fair 10 17

Poor 2 3

Total 60 100

Diagram 4.16:

For overall rating for the appearance of vehicle at the time of

delivery 35 % respondents rated good, 32% very good, 13%

excellent, 17% fair and 3% rated poor.

Table 4.17:

Explanation of work done and charges at the time of delivery


Excellent 1 2

Very Good 12 20

Good 27 45

Fair 17 28

Poor 3 5

Total 60 100

Diagram 4.17:

45% rated well for the explanation given by the service advisor at the

time of receipt of the vehicle and for the attributes very good 20%,

fair 28%, excellent 2% and for poor 5%.

Table 4.18:

Explanation of maintenance tips at the time of delivery


Excellent 5 8

Very Good 4 7

Good 16 27

Fair 25 42

Poor 10 17

Total 60 100

Diagram 4.18:

Out of 60 respondents 42% rated fair for the explanation of

maintenance tips given by the service advisor at the time of delivery,

8% excellent, 7% very good, 27% good and 17% rated poor.

Table 4.19:

Based on your overall experience would you recommend EVM Honda

workshop to friend or relative?


Definitely Yes 19 32

Probably Yes 36 60

Definitely No 2 3

Probably No 3 5

Total 60 100

Diagram 4.19:

Based on overall experience 60% of the respondents will probably

recommend the workshop to friends or relatives, 32 % definitely yes

while 5% marked probably no and 3% definitely no.

CHAPTER FIVE

FINDINGS,

SUGGESTIONS

AND

CONCLUSION

FINDINGS

The study made on EVM Honda proved that the workshop does have

a very efficient and effective management system for customer

relationship building. The study was done on

1. Service Initiation

48% of the respondents feel that it was easy in obtaining

appointment for service and rated good. This shows that the

company pays a great attention for their servicing sector.

45% of the respondents feel that the promptness of frontman in

opening of jobcard was good. This shows that the servicing sector

gives importance to the customer’s complaints about the vehicle and

pays a great attention to customer satisfaction.

2. Service Advisor

Courtesy in servicing is good in view of 58% of respondents. This

shows that the employees treat the customers with care.

50% of the respondents feel that the helpfulness in listening to

service needs by the service advisor was good and 35 % rated fair.

This shows that the service advisor pays more attention to customer

satisfaction.

38% of the respondents feel that the service advisor was able to

detect the problem with the vehicle and rated good, 35% fair, 20%

rated very good. This shows that the service advisor has work

knowledge.

45% of the respondents rated well for the prior explanation given by

the service advisor at the time of receipt of vehicle were good. This

shows that the service advisor takes great care in letting the

customers know the troubles in their vehicle.

3. Service Quality

Out of 60 respondents 43% of them rated very well at the availability

of parts and 32% good. This shows that the workshop is fully

flourished with the vehicle accessories.

Out of the 60 respondents, 45% feel that the quality of the repairs

carried at the workshop is good and 15% rated very good. This

shows that the repairs carried out by the workshop is satisfactory.

38% respondent’s feel that the workshop was able to fix the problem

on their first visit itself and gave good, 32% rated fair. This shows

that workers have knowledge on almost alls sorts of troubles that can

occur to the vehicle and therefore, they are able to fix the problem in

the first visit itself.

4. Service Delivery

53% of the respondents feel that the work was completed in a

reasonable period of time and rated good. This shows that the

employees pay more attention in their efficiency and fixes the

problem in the first visit itself.

47% of the respondents said that they received the vehicle on time

and rated good. This shows that the workshop is able to deliver the

vehicle on time to customers.

35 % respondents rated good for appearance of vehicle at the time of

delivery, 32% very good and 13% excellent. This shows that the

vehicle is properly washed and cleaned by the workshop before

delivery.

45% rated well for the explanation given by the service advisor at the

time of receipt of the vehicle and for the attributes. This shows that

service advisor gives customer satisfaction as his first priority.

Based on overall experience 60% of the respondents will probably

recommend the workshop to friends or relatives, 32 % definitely yes

while 5% marked probable no and 3% definitely no.

Thus it can be intercepted from the above findings that customers at

EVM Honda are satisfied with the services provided although some

areas need improvement.

SUGGESTIONS

When viewed in totality, the customers are overall satisfied with the

services provided at EVM Honda. But to make it more effective and

attractive, the following recommendations are to be made:

Service Initiation: The process of interaction of workshop staff with

the customers needs to be improved. The customer should be

attended to within the least possible time.

Service Advisor: Service advisor plays a very important role in

customer satisfaction. The process of direct interaction with the

customers ensures that any dissatisfaction that the customer has can

be immediately resolved. Also each customer should be linked to a

service advisor to improve long term relationship with the customers.

Delayed Deliveries: This is the single largest parameter influencing

customer satisfaction & they must ensure that vehicle is delivered at

the promised time.

Problem Experienced: This relates to trouble free operation of the

vehicle by customer. To ensure this a Road test by Technical advisor

must be done for proper diagnosis of the problems reported by the

customer while opening job card and also fix the problems right in

first time. Also

Technical advisor must road test all the customer vehicles to ensure

that the vehicle is free from squeaks & rattles.

Service Quality: This relates to quality of work performed. To

ensure these vehicles should be checked by final inspector during

final inspection for thoroughness for in fulfilling all the demanded

repairs by the customer. Proper explanation of the jobs done and

charges shall be done for all the customers. One Master Mechanic

should be available in each group.

User friendly Service: This includes the parameters of fairness of

fees convenience of days of operation, location timings etc. Fairness

of fees is a major area of concern across the service network & we

must ensure that the charges for service are kept at with the

competition.

It is imperative that focus upon the following key areas of workshop

performance on a daily monitoring basis.

1. Timely delivery of vehicle

2. Washing quality

3. Explanation of jobs done and charges while delivering the vehicle

4. No repeat jobs

5. Revisits and repeat job trends to be analyzed and effective

counter measures to be taken.

6. Recognition \ application for best mechanic of the month, based

on Zero repeat job.

7. Top 3 reasons for Revisits to be monitored on monthly basis.

8. Case history of all repeat jobs analysis to be complied and

communicated to all.

9. All demanded repairs must be completed.

CONCLUSION

In this globalised world, service plays a major role to attract

customers. But it is quite difficult to measure the satisfaction derived

from the services provided and very important to measure these

satisfaction levels. EVM Honda’s overall strength lies in building an

organization that is sharply focused on the voice of the customer.

EVM Honda’s consistent performance in the study over the past

several years has resulted in a steady increase in the percentage of its

customers who say they intend to remain loyal to the brand.

Annexure

Questionnaire

Name:

Model:

Phone No:

Please rate Honda Dealer Workshop based on the following

Vehicle Performance

1. No of problems experienced in your vehicle

None

One

Two

Three

Four

2. No of times you have returned for the same problem

None

One

Two

Three

Four

Service Initiation

3. Ease of obtaining appointment for service

Excellent

Very Good

Good

Fair

Poor

4. Promptness of front man in opening of job card

Excellent

Very Good

Good

Fair

Poor

Service Advisor

5. Helpfulness in listening servicing needs

Excellent

Very Good

Good

Fair

Poor

6. Undertaking of specific problems of your vehicle

Excellent

Very Good

Good

Fair

Poor

7. Courtesy in servicing you

Excellent

Very Good

Good

Fair

Poor

8. Prior explanation of job to be carried out and cost estimate

Excellent

Very Good

Good

Fair

Poor

Service Quality

9. Availability of parts to serve your vehicle

Excellent

Very Good

Good

Fair

Poor

10. Job satisfactorily completed at first time

Excellent

Very Good

Good

Fair

Poor

11. Quality of repairs carried out

Excellent

Very Good

Good

Fair

Poor

In-service Experience

12. Appearance of service area

Excellent

Very Good

Good

Fair

Poor

13. Appearance of customer lounge

Excellent

Very Good

Good

Fair

Poor

Service Delivery

14. Reasonable time taken for service

Excellent

Very Good

Good

Fair

Poor

15. Timely delivery of vehicle

Excellent

Very Good

Good

Fair

Poor

16. Appearance of vehicle at the time of delivery

Excellent

Very Good

Good

Fair

Poor

17. Explanation of work done and charges at the time of delivery

Excellent

Very Good

Good

Fair

Poor

18. Explanation of maintenance tips at the time of delivery

Excellent

Very Good

Good

Fair

Poor

19.Based on your overall experience would you recommend EVM

Honda workshop to friend or relative

Excellent

Very Good

Good

Fair

Poor

BIBILOGRAPHY

REFERENCES

Kothari C.R., Research Methodology, Second Edition, New

Delhi, Wishwa Prakashan.

Philip Kotler, Marketing Management, Millennium 10th edition,

Prentice Hall India.

Dr: Radha Oommen Nair, Marketing Management, Prasanna &

Co.

Company manuals and magazines

WEBSITES

www.evmhonda.com

www.customersatisfaction.com

www.wikipidea.com

http://www.customersatisfaction.com/

http://www.evmhonda.com/

A Project Report on Customer Satisfaction at Evm Honda

Documents