A STUDY ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY AT VST MOTORS, VELLORE. A Project Report Submitted in partial fulfilment of the requirements for the degree of Bachelor of Commerce (Computer Applications) [B.Com] Major Project Done by V.Vijayasarathi 05BCC062 Under the Guidance of Mrs. Shirley Light Inba Jeyakumar B.E, MBA Lecturer April 2008 VIT Business School fostering innovation VIT U N I V E R S I T Y (Estd. u/s 3 of UGC Act 1956) Vellore - 632 014, Tamil
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A STUDY ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY AT VST MOTORS
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A STUDY ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY AT VST MOTORS,
VELLORE.
A Project Report Submitted in partial fulfilment of the requirements for the degree of Bachelor of Commerce (Computer Applications)
[B.Com]
Major Project
Done by
V.Vijayasarathi
05BCC062
Under the Guidance of
Mrs. Shirley Light Inba Jeyakumar B.E, MBA
Lecturer
April 2008
VIT Business School
fostering innovation
VITU N I V E R S I T Y
(Estd. u/s 3 of UGC Act 1956)
Vellore - 632 014, Tamil Nadu, India
CERTIFICATE
This is to certify that the project titled ‘A STUDY ON CUSTOMER SATISFACTION
AND CUSTOMER LOYALTY’ is submitted by Mr. V.Vijayasarathi, 05BCC062 to
VIT Business School, VIT University, Vellore in partial fulfilment of the requirements
for the degree of Bachelor of Commerce (Computer Applications) is a bonafide record of
work carried out by him / her under my supervision. The contents of this project, in full
or in parts have not been submitted in any form to any other institute or university for the
award of any degree or diploma
Programme Manager Faculty Guide
Internal Examiner External Examiner
Declaration
I ,V.Vijayasarathi., a Bonafide student of the VIT Business School, VIT University,
Vellore, hereby declare that the project titled “A STUDY ON CUSTOMER
SATISFACTION AND CUSTOMER LOYALTY AT VST MOTORS, VELLORE” in
partial fulfillment of the requirements of the Degree of Bachelor of Commerce (CA), VIT
University, is my original work.
.
Date:
Place: Vellore
Name & Signature
INTRODUCTION
Tata Motors Limited is India's largest automobile company, with revenues of Rs.
32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial
vehicles in each segment, and the second largest in the passenger vehicles market with
winning products in the compact, midsize car and utility vehicle segments. The
company is the world's fifth largest medium and heavy commercial vehicle
manufacturer, and the world's second largest medium and heavy bus manufacturer.
The company's 22,000 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." Tata Motors helps its employees realise their potential through
innovative HR practices. The company's goal is to empower and provide employees
with dynamic career paths in congruence with corporate objectives. All-round potential
development and performance improvement is ensured by regular in-house and external
training. The company has won several awards recognising its training programmes.
Established in 1945, Tata Motors' presence indeed cuts across the length and
breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled
out in 1954. The company's manufacturing base is spread across India - Jamshedpur
(Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow
(Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur
(close to Kolkata in West Bengal) to manufacture the company's small car. The nation-
wide dealership, sales, services and spare parts network comprises over 2,000 touch
points. The company also has a strong auto finance operation, TML Financial Services
Limited, supporting customers to purchase Tata Motors vehicles.
Tata Motors, the first company from India's engineering sector to be listed in the
New York Stock Exchange (September 2004), has also emerged as an international
automobile company. In 2004, it acquired the Daewoo Commercial Vehicles Company,
Korea's second largest truck maker. The rechristened Tata Daewoo Commercial
Vehicles Company has launched several new products in the Korean market, while also
exporting these products to several international markets.
Today two-thirds of heavy commercial vehicle exports out of South Korea are
from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a
reputed Spanish bus and coach manufacturer, with an option to acquire the remaining
stake as well. Hispano's presence is being expanded in other markets. In 2006, it formed
a joint venture with the Brazil-based Marcopolo, a global leader in body-building for
buses and coaches to manufacture fully-built buses and coaches for India and select
international markets. Tata Motors also entered into a joint venture in 2006 with
Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market
the company's pickup vehicles in Thailand. In 2006, Tata Motors and Fiat Auto formed
an industrial joint venture at Ranjangaon (near Pune in Maharashtra, India) to produce
both Fiat and Tata cars and Fiat powertrains for the Indian and overseas markets; Tata
Motors already distributes and markets Fiat branded cars in India. In 2007, Tata Motors
and Fiat Auto entered into an agreement for a Tata license to build a pick-up vehicle
bearing the Fiat nameplate at Fiat Group Automobiles' Plant at Córdoba, Argentina. The
pick-up will be sold in South and Central America and select European markets.
These linkages will further extend Tata Motors' international footprint,
established through exports since 1961. While currently about 18% of its revenues are
from international business, the company's objective is to expand its international
business, both through organic and inorganic growth routes. The company's commercial
and passenger vehicles are already being marketed in several countries in Europe,
Africa, the Middle East, Australia, South East Asia and South Asia. It has assembly
operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal.
The foundation of the company’s growth is a deep understanding of economic
stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. The R&D establishment includes a team of 1400
scientists and engineers. The company's Engineering Research Centre was established
in 1966, and has facilities in Pune, Jamshedpur and Lucknow. The ERC has enabled
pioneering technologies and products. It was Tata Motors, which developed the first
indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle
and, in 1998, the Tata Indica, India's first fully indigenous passenger car.
Within two years of launch, Tata Indica became India's largest selling car in its
segment. The ERC in Pune, among whose facilities are India's only certified crash-test
facility and hemi-anechoic chamber for testing of noise and vibration, has received
several awards from the Government of India. Some of the more prominent amongst
them are the National Award for Research and Development Efforts in Industry in the
Mechanical Engineering Industries sector in 1999, the National Award for Successful
Commercialisation of Indigenous Technology by an Industrial Concern in 2000, and the
CSIR Diamond Jubilee Technology Award in 2004.
The company set up the Tata Motors European Technical Centre (TMETC) in
2005 in the UK. TMETC is engaged in design engineering and development of
5 percent of customers are know TATA Trucks by TV Advertisement,0 percent of customers are know TATA Trucks by Internet Search,26 percent of customers are know TATA Trucks by Existing Customers,30 percent of customers are know TATA Trucks by Brand Image,24 percent of customers are know TATA Trucks by Schemes,15 percent of customers are know TATA Trucks by Dealers.
Chart - 4
TABLE NO - 5WHAT’S THE MILEAGE YOU WILL GET BY USING TATA TRUCKS FOR PER LITRE
MILEAGE Frequency Percent3 to 3.5 km 20 20.0
3.5 to 4 km 69 69.0 ABOVE 4 km 11 11.0 Total 100 100.0
Inference:
69 percent of the customers get a mileage of 3.5 to 4 km,
20 percent of the customers get a mileage of 3 to 3.5 km,
11 percent of the customers are get a mileage of more than 4 km.
Chart - 5
TABLE NO - 6HOW LONG PERIOD YOU USE THE TATA TRUCKS
PERIOD Frequency Percent1 YEAR 23 23.0
2 YEARS to 4 YEARS 59 59.0
ABOVE 4 YEARS 18 18.0
Total 100 100.0
Inference:
23 percent of the customers have used TATA trucks for a Year,59 percent of the customers have used TATA trucks period of 2 Years to 4Years,18 percent of the customers are used TATA trucks period of Above 4 Years.
Chart – 6
TABLE NO - 7WHAT IS THE LEVEL OF SATISFACTION BY USING TATA TRUCKS
LEVEL OF SATISFACTION Frequency PercentHIGHLY SATISFIED 45 45.0
SATISFIED 36 36.0 NORMAL 19 19.0 Total 100 100.0
Inference:
45 percent of TATA Trucks customers level of satisfaction are Highly Satisfied,36 percent of TATA Trucks customers level of satisfaction are Satisfied,19 percent of TATA Trucks customers level of satisfaction are Normal,0 percent of TATA Trucks customers level of satisfaction are Dissatisfied,0 percent of TATA Trucks customers level of satisfaction are Highly Dissatisfied.
Chart - 7
TABLE NO - 8IF GIVEN CHANCE TO PURCHASE ANOTHER TRUCK WILL YOU PREFER TATA
TRUCK AGAIN?
PREFER AGAIN Frequency PercentYES 85 85.0
NO 15 15.0 Total 100 100.0
Inference:
85 percent of TATA Trucks customers are prefer to purchase TATA Truck again saying Yes,15 percent of TATA Trucks customers are prefer to purchase TATA Truck again saying No.
Chart - 8
TABLE NO - 9I DON’T GET ANY PROBLEM IN MY TRUCK YET
NO PROBLEM Frequency PercentSTRONGLY AGREE 3 3.0
AGREE 24 24.0 NEITHER AGREE OR DISAGREE 52 52.0
DISAGREE 21 21.0 Total 100 100.0
Inference:
3 percent of TATA Trucks customers Not yet face any Problem they are Strongly Agree,24 percent of TATA Trucks customers Not yet face any Problem they are Agree,52 percent of TATA Trucks customers Not yet face any Problem they are Neither Agree or Disagree,21 percent of TATA Trucks customers Not yet face any Problem they are Disagree,0 percent of TATA Trucks customers Not yet face any Problem they are Strongly Disagree.
Chart - 9
TABLE NO - 10TATA TRUCKS ARE GIVING MORE MILEAGE COMPARED TO OTHER TRUCKS
MORE MILEAGE Frequency PercentSTRONGLY AGREE 10 10.0
AGREE 35 35.0 NEITHER AGREE OR DISAGREE 50 50.0
DISAGREE 5 5.0 Total 100 100.0
Inference:
10 percent of TATA Trucks customers get good mileage they are Strongly Agree,35 percent of TATA Trucks customers get good mileage they are Agree,50 percent of TATA Trucks customers get good mileage they are Neither Agree or Disagree,5 percent of TATA Trucks customers get good mileage they are Disagree,0 percent of TATA Trucks customers get good mileage they are Strongly Disagree.
Chart - 10
TABLE NO - 11SPARE PARTS ARE EASILY AVAILABLE IN VST MOTORS
Frequency PercentSTRONGLY AGREE 57 57.0
AGREE 37 37.0 NEITHER AGREE OR DISAGREE 5 5.0 DISAGREE 1 1.0 Total 100 100.0
Inference:
57 percent of TATA Trucks customers get Spare Parts easily available in VST Motors they Strongly Agree,37 percent of TATA Trucks customers get Spare Parts easily available in VST Motors they Agree,5 percent of TATA Trucks customers get Spare Parts easily available in VST Motors theyNeither Agree or Disagree,0 percent of TATA Trucks customers get Spare Parts easily available in VST Motors they Disagree,0 percent of TATA Trucks customers get Spare Parts easily available in VST Motors they Strongly Disagree.
Chart - 11
TABLE NO - 12BANK LOANS ARE HELPFUL TO BUY TATA TRUCKS
Frequency PercentSTRONGLY AGREE 5 5.0
AGREE 9 9.0 NEITHER AGREE OR DISAGREE 56 56.0
DISAGREE 21 21.0 STRONGLY DISAGREE 9 9.0 Total 100 100.0
Inference:
5 percent of customers Bank Loans are helpful to buy TATA Trucks they Strongly Agree,9 percent of customers Bank Loans are helpful to buy TATA Trucks they Agree,56 percent of customers Bank Loans are helpful to buy TATA Trucks they Neither Agree or Disagree,21 percent of customers Bank Loans are helpful to buy TATA Trucks they Disagree,9 percent of customers Bank Loans are helpful to buy TATA Trucks they Strongly Disagree
Chart - 12
TABLE NO - 13TATA TRUCKS MAKE ME PROUD WHEN I AM USING
Frequency PercentSTRONGLY AGREE 2 2.0
AGREE 22 22.0 NEITHER AGREE OR DISAGREE 67 67.0 DISAGREE 8 8.0 STRONGLY DISAGREE 1 1.0 Total 100 100.0
Inference:
2 percent of customers feel TATA Trucks make proud when use it they Strongly Agree,22 percent of customers feel TATA Trucks make proud when use it they Agree,67 percent of customers feel TATA Trucks make proud when use it they Neither Agree or Disagree,8 percent of customers feel TATA Trucks make proud when use it they Disagree,1percent of customers feel TATA Trucks make proud when use it they Strongly Disagree
Chart - 13
TABLE NO - 14DUE TO MY OWN INTEREST I PURCHASE TATA TRUCKS
Frequency PercentSTRONGLY AGREE 2 2.0
AGREE 37 37.0 NEITHER AGREE OR DISAGREE 42 42.0 DISAGREE 18 18.0 STRONGLY DISAGREE 1 1.0 Total 100 100.0
Inference:
2 percent of customers buy TATA Trucks as their own interest they Strongly Agree,37 percent of customers buy TATA Trucks as their own interest they Agree,42 percent of customers buy TATA Trucks as their own interest they Neither Agree or Disagree,18 percent of customers buy TATA Trucks as their own interest they Disagree,1 percent of customers buy TATA Trucks as their own interest they Strongly Disagree
Chart - 14
TABLE NO - 15TATA TRUCKS ARE NOT MUCH THAN COSTLY THAN COMPARED TO OTHER
TRUCKS
Frequency PercentSTRONGLY AGREE 1 1.0
AGREE 24 24.0 NEITHER AGREE OR DISAGREE 56 56.0 DISAGREE 19 19.0 Total 100 100.0
Inference:
1 percent of customers feel TATA Trucks is not costly than others they Strongly Agree,24 percent of customers feel TATA Trucks is not costly than others they Agree,56 percent of customers feel TATA Trucks is not costly than others they Neither Agree or Disagree,19 percent of customers feel TATA Trucks is not costly than others they Disagree,0 percent of customers feel TATA Trucks is not costly than others they Strongly Disagree
Chart - 15
TABLE NO - 16THE VEHICLE LOOK LIKE MAJESTIC
Frequen
cy PercentSTRONGLY AGREE 19 19.0
AGREE 23 23.0 NEITHER AGREE OR DISAGREE 39 39.0 DISAGREE 18 18.0 STRONGLY DISAGREE 1 1.0 Total 100 100.0
Inference:
19 percent of customers feel TATA Trucks is look as Majestic they Strongly Agree,23 percent of customers feel TATA Trucks is look as Majestic they Agree,39 percent of customers feel TATA Trucks is look as Majestic they Neither Agree or Disagree,18 percent of customers feel TATA Trucks is look as Majestic they Disagree,1 percent of customers feel TATA Trucks is look as Majestic they Strongly Disagree
Chart - 16
TABLE NO - 17THE SERVICE OFFERED BY VST MOTORS TO CUSTOMER IS EXCELLENT
Frequency PercentSTRONGLY AGREE 68 68.0
AGREE 30 30.0 NEITHER AGREE OR DISAGREE 2 2.0
Total 100 100.0
Inference:
68 percent of customers feel VST Motors provide best service for their TATA Trucks they Strongly Agree,30 percent of customers feel VST Motors provide best service for their TATA Trucks they Agree,2 percent of customers feel VST Motors provide best service for their TATA Trucks they Neither Agree or Disagree,0 percent of customers feel VST Motors provide best service for their TATA Trucks they Disagree,0 percent of customers feel VST Motors provide best service for their TATA Trucks they Strongly Disagree
Chart - 17
LEVEL OF SATISFACTION:
TABLE NO - 18
MILEAGE
Frequency PercentVERY GOOD 63 63.0
GOOD 36 36.0 NORMAL 1 1.0 Total 100 100.0
Inference:
63 percent of customers feel TATA Trucks give Mileage as Very Good,36 percent of customers feel TATA Trucks give Mileage as Good,1 percent of customers feel TATA Trucks give Mileage as Normal,0 percent of customers feel TATA Trucks give Mileage as Poor,0 percent of customers feel TATA Trucks give Mileage as Very Poor.
Chart - 18
TABLE NO – 19PRICE
Frequency PercentVERY GOOD 13 13.0
GOOD 51 51.0 NORMAL 36 36.0 Total 100 100.0
Inference:
13 percent of customers feel TATA Trucks Price as Very Good,51 percent of customers feel TATA Trucks Price as Good,36 percent of customers feel TATA Trucks Price as Normal,0 percent of customers feel TATA Trucks Price as Poor,0 percent of customers feel TATA Trucks Price as Very Poor
Chart - 19
TABLE NO – 20LIFE PERIOD
Frequency PercentVERY GOOD 12 12.0
GOOD 42 42.0 NORMAL 46 46.0 Total 100 100.0
Inference:
12 percent of customers feel TATA Trucks Life Period as Very Good,42 percent of customers feel TATA Trucks Life Period as Good,46 percent of customers feel TATA Trucks Life Period as Normal,0 percent of customers feel TATA Trucks Life Period as Poor,0 percent of customers feel TATA Trucks Life Period as Very Poor
Chart - 20
TABLE NO – 21RESALE VALUE
Frequency PercentVERY GOOD 3 3.0
GOOD 7 7.0 NORMAL 49 49.0 POOR 34 34.0 VERY POOR 7 7.0 Total 100 100.0
Inference:
3 percent of customers feel TATA Trucks have Resale Value as Very Good,7 percent of customers feel TATA Trucks have Resale Value as Good,49 percent of customers feel TATA Trucks have Resale Value as Normal,34 percent of customers feel TATA Trucks have Resale Value as Poor,7 percent of customers feel TATA Trucks have Resale Value as Very Poor
Chart - 21
TABLE NO – 22SAFETY
Frequency PercentVERY GOOD 64 64.0
GOOD 30 30.0 NORMAL 6 6.0 Total 100 100.0
Inference:
64 percent of customers feel TATA Trucks provide Safety as Very Good,94 percent of customers feel TATA Trucks provide Safety as Good,0 percent of customers feel TATA Trucks provide Safety as Normal,0 percent of customers feel TATA Trucks provide Safety as Poor,0 percent of customers feel TATA Trucks provide Safety as Very Poor
Chart - 22
CHI-SQUARE:
INFERENCE:
Here Chi square value is 0.229 which is above the hypothetical value of 0.05. Hence we can
accept. Ho. There is a relationship between the purpose and the choice of satisfaction. Also from the
contingency asymmetric value of 0.213. We conclude that there is high association between Purpose
and the choice of Satisfaction.
FINDINGS:
Most of the customers use TATA trucks for other purpose like Goods Carrier and Blue Metals.
Most of the customers are have the TATA trucks as their Own Vehicle.
Most of the customers purchase TATA trucks are purchase by full payment.
Most of the customers use their TATA trucks for 2 Years to 4 Years.
Most of the customers get mileage above 3.5 km to 4 km per liter in their TATA Trucks So by that the customers feel makes profitability to their business.
Most of the TATA trucks customers feel Highly Satisfied.
Most of the TATA trucks customers would prefer Yes for if again given a chance to buy TATA truck.
Most of the TATA trucks customers says spare parts are easily available in VST Motors.
Most of the TATA trucks customers say service offered by VST Motors is Excellent.
Most of the TATA trucks customers feel TATA Trucks are safe to drive.
SUGESSTIONS:
All the organisations in India increasingly face challenge of customer satisfaction. Thus, it is
important to gain more customers by satisfy them it leads to customer loyalty.
Customers expect more facilities and features like Digital Speed-O-Meter, Alarm while break
failure, Tubeless tyres for all their truck models.
Since customer got problems in their TATA trucks, to avoid that make full check their
vehicle in first service
To buy TATA trucks customers feel Bank Loans are not useful to purchase, for that dealers
facilitate to the customers and contact the bank make loan to customers in lower rate of
interest during purchase of TATA trucks.
.
And the dealers provide installment facility to the buyers with low installment amount and at
lower rate of interest.
The Company may concentrate on the vehicle while designing, inner and outer look, power
of engine, capacity of the vehicle as customer needs.
For the reason the trucks belong to TATA in that Brand Image and the dealers also prove full
information about the trucks as per customer needs, the customers get better recognization.
BIBLIOGRAPHY
The books used in study are:
MM. SISIR KUMAR BHATTACHARYYA- MARKETING MANAGEMENT