FORD REPORTt.docx

A PROJECT REPORT

OF

Study on

“Customer satisfaction towards Product and after sale services offered by Ford”

Submitted for the fulfillment of the requirement of the award of Degree of Master Of Business Administration

Under the Guidance of: Submitted by:

MR Bharat Singla

Roll. No: 1211016

MBA 3rd sem

Maharishi Markandeshwar Institute of Management Maharishi Markandeshwar University

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ACKNOWLEDGEMENT

First of all, I would like to express my thanks to Mrs. Jyoti Breja for giving me such a wonderful opportunity to widen the horizons of my knowledge.

In no small measures, I would also like to gratefully thank to all those who gave me constructive suggestions for the improvement of all the aspect related to this project.

In particular, I would like to thank Mr , my research guide for her valuable suggestions and guidance.

I also owe a deep sense of gratitude to other faculty members for their continuous encouragement.

Despite all efforts, I have no doubt that error and obscurities remain that seen to afflict all research project and for which I am culpable.

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STUDENT’S DECLARATION

This is to certify that I have completed this Project titled Customer statisfaction towards Product and after sale services offered by Ford” under the guidance of “MR” in partial fulfillment of the requirement of the award of degree of Master of Business Administration at MAHARISHI MARKANDESHWAR UNIVERSITY MULLANA AMBALA.

Bharat Singla

1211016

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CERTIFICATE

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EXECUTIVE SUMMARY

The Automobile Industry was came in age of Henry Ford in 1914 for the bulk production of

cars. This lead to the development of the industry and it first begun in the assembly lines of his car

factory. The several methods adopted by Ford, made the new invention (that is, the car) popular

amongst the rich as well as the masses. The Indian passenger car market which ranks amongst the

largest in the world, is poised to become even larger and enter the top five passenger car markets in

the world in the next decade.

The objective of this research is to know the level of customer satisfaction with the services provided

by Pearl Ford and to study the opinion of the owners of cars regarding its features like mileage, price

etc.

Customer Satisfaction is a phrase used to describe a new found magic for industrial success. 

With the increase in customer’s demands and competition it has become a lot more important to base

the entire company on customer service. When doing this one must first realize that every member

of an organization plays an active role in customer service.

Ford Motor Company designs, develops, manufactures, and services cars and trucks worldwide. Pearl Ford has started its operations in year 2002 under the dynamic leadership & management.

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INDEX

S.NO PARTICULAR PAGE NO.

1.1.11.21.3

INTRODUCTIONMILESTONE OF FORDPRODUCT OF FORDDEALER PROFILE

7141718

2. LITERATURE REVIEW 21

3.3.1

RESEARCH METHODOLOGYOBJECTIVE OF STUDY

2324

4. DATA ANALYSIS 27

5.5.15.2

FINDINGSSUGGESTIONSCONCLUSION

444647

6. BIBLIOGRAPHY 48-49

7. ANNEXURE QUESTIONNAIRE

50-54

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CHAPTER- 1

INTRODUCTION

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1 INTRODUCTION ABOUT THE INDUSTRY

Automobile Industry History

In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first

automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled, military

tractor that made the use of a steam engine. The range of the automobile, however, was very brief

and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were

not fit for the roads as the steam engines made them very heavy and large, and required ample

starting time. Oliver Evans was the first to design a steam engine driven automobile in

U.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and

1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were amongst the

first to invent more applicable automobiles, making use of non-rechargeable electric batteries in

1842. Development of roads made travelling comfortable and as a result, the short ranged, electric

battery driven automobiles were no more the best option for travelling over longer distances.

The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk

production of cars. This lead to the development of the industry and it first begun in the assembly

lines of his car factory. The several methods adopted by Ford, made the new invention (that is, the

car) popular amongst the rich as well as the masses.

According the History of Automobile Industry US, dominated the automobile markets

around the globe with no notable competitors. However, after the end of the Second World War in

1945, the Automobile Industry of other technologically advanced nations such as Japan and certain

European nations gained momentum and within a very short period, beginning in the early 1980s,

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the U.S Automobile Industry was flooded with foreign automobile companies, especially those of

Japan and Germany.

The current trends of the Global Automobile Industry reveal that in the developed countries

the Automobile Industries are stagnating as a result of the drooping car markets, whereas the

Automobile Industry in the developing nations, such as, India and Brazil, have been consistently

registering higher growth rates every passing year for their flourishing domestic automobile

markets.

The World Automobile Industry is turned to the developing markets.

With the developed markets almost saturated, the World Automobile Industry is now

focused on the developing markets of South America and Asia, and Eastern Europe with special

emphasis on BRIC (Brazil, Russia, India, and China).

As per the reports of the International Organization of Motor Vehicle Manufacturers or OICA(the

association of the companies involved in World Automobile Industry), for the fiscal end in 2010, the

automobile manufacturers in the U.S. have been overtaken by those in Japan, in terms of the total

volume of automobile units manufactured worldwide.

However, the struggling General Motors of the U.S. still remain the worldwide leaders of the

World Automobile Industry, ahead of the rapidly growing Toyota Motor Corporation of Japan, by a

substantial margin.

Measures to be adopted by global leaders of the World Automobile Industry.

Several significant economic measures are being considered by the major players of the

World Automobile Industry in order to make a smooth entry into the markets of the developing

countries, and to make a name for themselves. The effective measures include:

Reducing the selling prices of the automobiles manufactured in their factories

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Improving the levels of after-sales services to keep customers satisfied

Opening manufacturing factories in the developing nations, to reduce effective costs of

production as well as saving shipping charges, and enhancing prompt delivery of automobile

units.

Automobile Industry

In keeping with the Automobile Industry Trends, the leading automobile manufacturers are

turning to the Asian markets that appear set to grow immensely over the next decade. The

automobile markets in the U.S., Europe and the Japan have almost matured as a result of saturation

and appear set to decline through the next decade. In contrast, the automobile markets spread over

the entire Asian continent (with the exception of Japan), are constantly increasing in size and will be

the destination for most of the globally leading automobile manufacturers.

The Automobile Industry Trends reveal that the emerging markets of the developing

nations of Asia especially China, and India are backed by their huge population growth rate, to add

to the growing national economy of these two nations.

The rapid growth of the national economy of the BRIC countries (including Brazil, Russia, India,

and China) has enabled a growing section of the population of these countries to purchase

automobiles. Global surveys conducted recently reveal that within the next ten years, these emerging

automobile markets will account for nearly a whooping 90 percent of the global automobile sales

growth. As a result of this, leading Automobile manufacturers of the world are setting up factories in

the emerging markets, in order to serve the potential consumers better as well as reduce

manufacturing and shipping costs. In addition, these arrangements are enabling the leading global

automobile manufacturers to compete with the local automobile manufacturers, which were

flourishing in the absence of quality competition.

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The prosperity of the national economy is reflected in the rising per capita income of the developing

nations. Therefore, increasing Gross Domestic Product and per capita income have raised the

purchasing ability of the population that constitutes these emerging markets.

As a growing percentage of the population in the developed nations age rapidly, in comparison to

the rest of the world, these aging numbers necessitate automobiles to fit the physiological change of

the world population.

The Emerging India Automobile Market.

The India Automobile Market is a promising industrial sector that is growing immensely every

passing year. The passenger cars are referred to, through the use of the word "automobile." The

whooping growth experienced by the Indian Automobile Market in the last financial year itself that

is the financial year end in February, 2011 was very close to a 38 percent over the previous fiscal.

This statistical fact is a glittering example of the potential of the growing Automobile Industry in

India.

As per the survey conducted by the Society of Indian Automobile Manufacturers, the total

number of automobiles manufactured by the Automobile Industry in India, throughout the

financial year 2010-11, was very close to the 35.5 lakh (3.5 million) margin. The huge of number

of automobiles manufactured by the Automobile Industry in India was an enormous growth upon

the number of automobiles manufactured during the previous fiscal that ended in 2010.

The total number of cars that were exported from India was very close to the 5.0 lakh (5.0

hundred thousand) margin, an encouraging sign for the Automobile Industry in India. The export of

cars manufactured in India comprised nearly 33 percent of the total number of cars manufactured

domestically by the Automobile Industry in India.

The India Automobile Market looks set to prosper, largely due to the growing market for

automobiles that is developing in India. In the financial year that ended in February, 2009, the Indian

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automobile markets were the fastest growing in the world, with the registered growth rate touching

nearly 20 percent.

The Automobile Industry in India mainly comprises of the small car section, which enjoys

nearly a 2/3rd market share of the entire market for automobiles in India. In this respect, the Indian

markets are the largest in the world for small cars, behind Japan.

The Indian passenger car market which ranks amongst the largest in the world, is poised to

become even larger and enter the top five passenger car markets in the world in the next decade.

2.2 COMPANY PROFILE

Ford Motor Company designs, develops, manufactures, and services cars and trucks

worldwide. It operates in two sectors, Automotive and Financial Services. The Automotive sector

sells vehicles under Ford, Mercury, Lincoln, and Volvo brand names. This sector markets cars,

trucks, and parts through retail dealers in North America, and through distributors and dealers

outside of North America. It also sells cars and trucks to dealers for sale to fleet customers, including

daily rental car companies, commercial fleet customers, leasing companies, and governments. In

addition, this sector provides retail customers with a range of after-the-sale vehicle services and

products in areas, such as maintenance and light repair, heavy repair, collision, vehicle accessories,

and extended service warranty under the Genuine Ford, Lincoln-Mercury Parts and Service, Ford

Custom Accessories, Ford Extended Service Plan, and Motor craft brand names. The Financial

Services sector offers various automotive financing products to and through automotive dealers. It

offers retail financing, which includes purchasing retail installment sale contracts and retail lease

contracts from dealers, and financing to commercial customers to purchase or lease vehicle fleets;

wholesale financing that comprises making loans to dealers to finance the purchase of vehicle

inventory; and other financing, which consists of making loans to dealers for working capital,

improvements to dealership facilities, and to purchase or finance dealership real estate. This sector

also services the finance receivables and leases that it originates and purchases, makes loans to its

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affiliates, purchases receivables, and provides insurance services related to its financing programs.

Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan.

Henry Ford and Family

The story of Henry Ford is not of a prodigy entrepreneur or an overnight success. Ford grew

up on a farm and might have easily have remained in agriculture. But something stronger pulled at

Ford’s imagination, mechanics, and machinery, understanding how things worked and what new

possibilities lay in store. As a young boy, he took apart everything he got his hands on. He quickly

became known around the neighborhood for fixing people’s watches.

In 1896, Ford invented the Quadricycle . It was the first “horseless carriage” that he actually

built. Its a far cry from today’s cars and even from what he produced a few years later, but in a way

it was the starting point of Ford’s career as a businessman. Until the Quadricycle, Ford’s

tinkering was experimental, theoretical-like the gas engine he built on his kitchen table in the 1890’s,

which was just an engine with nothing to power. The Quadricycle showed enough potential that it

launched the beginning of Ford’s business ventures.

Ideas into Business

Ford Motor Company was founded on June 16, 1903.The first Ford, the model A, was being

sold in Detroit a few months later. When founded the Ford Motor Company was just one of 15 car

manufacturers in Michgan and 88 in the US. But as it began to turn a profit within its first few

months,it became clear that Henry Ford’s vision for the automotive industry was going to work and

work in a big way. During the first five years of Ford Motor Company’s existence, Henry Ford, as

chief engineer and later as president, directed a development and production program that started in

a converted wagon shop.

Henry Ford’s insistence that the company’s future lay in the production of affordable cars

for a mass market caused increasing friction between him and the other investors. As some left, Ford

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acquired enough stock to increase its own holdings to 58.5 percent. Henry Ford became president in

1906, replacing John.S.Gray,a Detroit banker who had served as the company’s first president.

Ford Family through the Years

The years between the world wars were a period of hectic expansion. In 1917, Ford

Motor Company began producing trucks and tractors. In 1919,a conflict with stockholders over the

millions to be spent building the giant Rouge manufacturing complex in Dearborn, Michigan led to

the company becoming wholly owned by Henry Ford and his son, Edsel, who then succeeded his

father as president. After Edsel Ford passed away in 1943,a saddened Henry Ford resumed the

presidency.

Henry Ford resigned for the second time at the end of World War II. His eldest

grandson, Henry Ford II, became president on Sept 21,1945.Even as Henry Ford II drove the

industry’s first postwar car off the assembly line, he was making plans to reorganize and decentralize

the company to resume its prewar position as a major force in a fiercely competitive auto industry.

Henry Ford II provided strong leadership for Ford Motor Company from the postwar era

into the 1980s.He was president from 1945 until 1960 and chief executive officer from 1945 until

1979.He was chairman of the board of directors from 1960 until 1980 and removed as chairman of

the finance committee from 1980 until his death in 1987.Now,at the beginning of its second

century,another Ford family member has been named CEO of Ford Motor Company, the first family

member to hold the position in more than 20 years. Like his uncle, Henry Ford I, William Clay Ford

Jr.(great grandson of Henry Ford) leads a company where “family” has a much broader meaning,

referring to far more than just those with the last name “Ford”. Today, the Ford family comprises of

employees, dealers, suppliers, shareholders, customers and more-all those who help fulfill the vision

Bill Ford has defined for the company: to create great products that benefit customers, shareholders

and society.

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HISTORY

The Dream Becomes A Business

Ford Motor Company entered the business world on June 16,1903, when Henry Ford and

11 business associates signed the signed the company’s articles of incorporation. With $28,000 in

cash, the pioneering industrialists gave birth to what was to become one of the world’s largest

corporations. Few companies are as closely identified with the history and development of industry

and society throughout the 20th century as Ford Motor Company.

As with most great enterprises, Ford Motor Company’s beginnings were modest. The

company had anxious moments in its infancy. The earliest record of a shipment is July 20, 1903,

approximately one month after incorporation, to a Detroit physician. With the company’s first sale

came hope –a young Ford Motor Company had taken its first steps.

Mass Production On The Line

Perhaps Ford Motor Company’s single greatest contribution to automotive manufacturing

was the moving assembly line. First implemented at the Highland Part plant (in Michigan, US) in

1913, the new technique allowed individual workers to stay in one place and perform the same tasks

repeatedly on multiple vehicles that passed them. The proved tremendously efficient, helping the

company far surpass the production levels of their competitors-and making the vehicles more

affordable.

The First Vehicles

Henry Ford insisted that the company’s future lay in the production of affordable cars for a

mass market. Beginning in 1903, the company began using the first 19 letters of the alphabet to

name new cars. In 1908, the Model T was born.19 years and 15 million Model T’s later, Ford Motor

Company was a giant industrial complex that spanned the globe. In 1925, Ford Motor Company

acquired the Lincoln Motor Company, thus branching out into luxury cars, and in the 1930’s, the

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Mercury division was created to establish a division centered on mid-priced cars. Ford Motor

Company was growing.

Becoming a Global Company

In the 50’s came the Thunderbird and the chance to own a part of Ford Motor Company.

The company went public and, on Feb 24, 1959, had about 350,000 new stockholders. Henry Ford

II’s keen perception of political and economic trends in the 50’s led to the global expansion of FMC

in the 60’s, and the establishment of Ford of Europe in 1967, 20 years ahead of the European

Economic Community’s arrival. The company established its North American Automotive

Operations in 1971, consolidating U.S, Canadian and Mexican operations more than two decades

ahead of the North American Free Trade Agreement.

Ford Motor Company started the last century with a single man envisioning products that

would meet the needs of people in a world on the verge of high gear industrialization. Today, Ford

Motor Company is a family of automotive brands consisting of: Ford, Lincoln, Mercury, Mazda,

Jaguar, Land Rover, Aston Martin and Volvo. The company is beginning its second century of

existence with a worldwide organization that retains and expands Henry Ford’s heritage by

developing products that serve the varying and ever changing needs of people in the global

community.

Significant milestonesSignificant milestones

1896: Henry Ford builds his first vehicle- the Quadra cycle- on a buggy frame with 4 bicycle wheels.

1901 : Henry Ford wins high-profile car race in Grosse Pointe, Michigan USA.

1903: Henry Ford & 11 invertors sign articles of incorporation for Ford Motor Company in Michigan, USA. The original Model A "Ford mobile" is introduced- 1,708 cars are produced.

1907: The Ford oval trademark was first introduced.

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1908: Ford introduces the Model T, which became one of the most popular cars in the world. Production officially ended in May 1927 after total world production of 15,458,781

1913: The moving Assembly line is introduced at Highland Park assembly plant, Dearborn, making Model T production 8 times faster

1914: Ford begins offering $5 per day for eight- hour work days & 15,000 job seekers clamor for 3,000 jobs at the Model T Plant in Highland Park. The previous pay rate was $2.34 per day for nine hours.

1928: The 1928 Model A was the first vehicle to sport an early version of the Ford script in the oval badge.

1949: The '49 Ford introduces all- new post- war era cars.

1954: Thunderbird introduced as a personal luxury car with a V8. Ford begins crash testing, & opens Arizona Proving Grounds.

1956: Ford common stock goes on sale, with 10.2 million shares sold in the first day, representing 22% of the company.

1959: Ford Credit Corporation formed to provide automotive financing.

1960: Falcon introduced.

1964: Mustang introduced.

1985: Ford Taurus introduced with dramatic "aero design” styling, along with Ford aero star minivan

1987: Ford acquires 75% of Aston Martin ltd.

1992: Ford Taurus becomes America's top selling car, displaying the Honda Accord.

2004: The Ford escaped Hybrid, the first gasoline- electric Hybrid SUV, is introduced.

2007: The Ford Fusion is rated higher in quality then its chief rivals ( the Toyoto Camry & Honda Accord ), and is selling better than expected.

2007: Ford Mustang 2009 & Ford Ka 2009 were introduced to the worlds markets.

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Ford In India

1926: Ford India is established by Ford Of Canada.

1935: Indian govt officials ask Henry Ford to consider building a car manufacturing plant in Bombay.

1941 : Mahatma Gandhi sends spinning wheels, the symbol of India's economic independence, to Henry Ford.

1954: Ford India operations cease.

1969: Ford reenters India in a joint venture with Escords Ltd to produce Tractors.

1991: Ford ceases Tractor operations. Ford establishes climate systems India, a joint venture with Maruti & Sumitomo Corporation.

1995 (Nov): Ford & M&M received govt approval on joint venture called Mahindra Ford India Ltd (MFIL).

1996 (Sept): Ford Escort receives more than 70,000 sales booking.

1996 (Oct): Mahindra Ford makes history in India by simultaneously handing over the first cars in 7 cities just 1 month after close of bookings.

1997 (Nov): Ford Escort chosen best quality cars in JD Power's India Initial Quality Surveyt (IIQS).

1997 (Dec): MFIL tops JD Power's customers satisfaction index (CSI).

1998: The company was remanded Ford India. With a steady increase of Ford’s investments, the equity levels stands presently at 85:15.

1999: Ford India inaugurated the fully integrated manufacturing facility in Maraimalai Nagar and launched Ikon.

1999 (July): Ford India lays the Foundation stone for an export plant. The export plant will source auto components locally and assemble kits to export to oversee market.

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2001 (Nov): Ford India Launched the Ford Mondeo.

2003 (Sept): Ford Endeavor debuts in India.

2004: Ford Fusion debuts in India.

2005: Fiesta Launched with fan fare in India.

2006: Ford India marks 87% growth in sales.

2008: Ford commits itself to India with an investment of $375 million.

2008: Ford India starts assembly of its diesel DV 4 engine from a new plant at Maraimalai Nagar.

2008: Ford launches the New Fusion+, Endeavour and Endeavour Thunder+, New Fiesta and recently Ikon.

2010: Ford launches its first Hatchback car Figo. With Figo, Ford launched the first in class Bluetooth technology.

2011: Classic was launched.

2012: Ford launched the first global car New Fiesta.

2012: Ford introduced the Automatic Variant of new Fiesta POWERSHIFT.

2013: Ford launches its new car Eco Sport.

2015: ford Figo Aspire coming soon.

PRODUCT OF FORD MOTORS

Ford Fiesta

Ford Figo

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Ford Endeavour

Ford Ecosport

Ford Fiesta classic

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DEALER PROFILE

PEARL FORD

Pearl Ford has started its operations in year 2002 under the dynamic leadership & management of Mr. Pawn Gupta. 

The group has dealerships of Ford in four locations -; 

Karnal , 

Ambala

Yamunanagar

Kurukshetra  .

Functioning Of Different Departments

H.R Department:- To appoint right person at right place at right time. Accounts Department:- To provide actual position of the company to the manager with

prepared P&L a/c, Balance Sheet & Financial statement. Sales Department:- To study the Need & Budget of the customers and deliver the Product

accordingly. Finance Department:- To provide insurance/finance/loan /credit facilities to the potential

customers. Service Department:- To provide proper Service in an effective and efficient manner. Customer Care:- To increase the customer satisfaction level.

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SOURCE OF FINANCING

HDFC Bank

SBI Bank

ICICI Bank

Axis Bank

SWOT Analysis

STRENGTHS:-

Pearl Ford Motors recorded the strongest as well as effective operation performance in 2010

It has strong brand portfolio.

Has wide network of distributors and dealers.

High employee productivity.

WEAKNESSES:-

It has a very small share of market which results in a great loss to the company.

Due to Product recalls, Ford’s brand image was also harmed and thus the company suffered a lot.

Declining operating efficiency and weak returns.

It have a very small share market

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OPPORTUNITIES:-

It termed as environment friendly.

Various products were predicted to switch towards the hybrid electric engines.

Well researched programs are under consideration in order to gain more popularity.

Restructuring plan was launched in order to improve the performance.

THREATS:-

Rising oil prises are one of the major contributors towards the loss of the company.

Rise in competition is one of the major threats towards the productivity of the company.

Working with different techniques is one of the major threats.

Rising raw material prices.

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CHAPTER-2

LITERATURE REVIEW

LITERATURE REVIEW

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Concept Identification-

As organizations become increasingly customer focused and driven by demand, the need to

gain customer loyalty and retain their loyalty is critical. Customer satisfaction is the most effective

way to achieve customer loyalty. Customer satisfaction and customer loyalty share many similar

traits. Customer value is the customer’s perception of the ratio of benefits to what he or she gives to

obtain those benefits. The customer Value Triad is a framework used to understand what it is that

customers want. The framework consists of three parts: (1) perceived product quality, (2) value-

based pricing, and (3) perceived service quality.

Customers are satisfied, when value meets or exceeds expectations.  If their expectations of

value are not met, there is no chance of satisfying them. Figuring out what the customers want,

however, is a difficult and complex process. To be able to create and deliver customer value is

important to understand its components. On the most basic level, value from a customer’s

perspective is the ratio of benefits to the risks being taken while buying the product.

CUSTOMER SATISFACTION

AN INSIGHT

According to Harold E Edmondson “ Customer Satisfaction” seems to appear in print more

frequently than any other catch phrase used to describe a new found magic for industrial

success. Before we proceed in to the study of the dynamics of Customer Satisfaction it is important

to know about, who a customer is and what satisfaction really means.

Who really is a Customer?

The question of defining who your customers are seems fairly easy particularly if you have

segmented your market properly and understand who you are trying to satisfy. However subtlety that

frequently goes undetected by many firms is that is that customer set can be divided into two parts,

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the apparent customer and the user. The apparent customer is the person or group of people who

decide what product to buy and basically have control over the purse strings. The user is a person or

group who physically uses the product or is the direct recipient of a service.

What does satisfaction really mean?

As in defining customer above, defining satisfaction also appears simple.  However as

with customer there is a subtlety that needs addressing. Satisfaction by most definitions simply

means meeting the customer’s requirement.

Customer satisfaction is a concept that more and more companies are putting at the

heart of their strategy, but for this to be successful they’re needs to be clarity about, what customer

satisfaction means and what needs to happen to drive improvement. Without this, there is a risk that

customer satisfaction becomes little more than a good intention, with confused objectives failing to

address the real issues for customers, one helpful way to look at the problem is to rephrase the

objectives: set the sights on helping the customers meet their goals.

Customer satisfaction can be defined in many different ways.  Finding the right way

for a company depends on understanding your customer and on having a clear vision of the role that

customer satisfaction is to play in the strategy. For example, a focus on customer satisfaction can

work alongside existing segmentations to support revenue generation from high value customers or

it can be a company-wide objective rooted in the brand values. For the former, it may be sufficient to

focus on improving customer service, but for the latter a broader definition of customer satisfaction

is necessary, closer akin to corporate reputation.

Whatever the strategy for customer satisfaction, it must at least include getting the

basics right. Failing to achieve this can destroy the reputation as well as losing valuable

customers. Every customer, regardless of their economic worth to the business, has the power to

influence – positively or negatively – a company’s reputation. Once the objectives for the customer

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satisfaction strategy are defined there are a number of steps we can take to make sure the focus on

customer satisfaction is effective.

Building a company around Customer Satisfaction -

With the increase in customer’s demands and competition it has become a lot more

important to base the entire company on customer service. When doing this one must first realize

that every member of an organization plays an active role in customer service. This includes both

external customers and internal customers within a company.

Customer focused organizations focus both on customer satisfaction and

profit. Achieving customer satisfaction generates the profit. In these organizations top management

has frequent contacts with external customers. The top management uses consultative, participative,

and supportive management styles to get through to the customer. The staff focuses all of its

attention on satisfying the customer’s needs. However, the management’s job is to provide the staff

with support necessary to achieve these goals. The other department and staff in the organization that

do not have direct contact with the external customers deal exclusively with internal customer

satisfaction.

The Influence of the salesperson in Customer Satisfaction-

In an article titled,  “The influence of salesperson selling behavior on customer

satisfaction with products,” Brent G.Goff and James S. Boles examine the effects of non-product

related construct on customer satisfaction with major retail purchases such as automobiles. The

article states that salesperson’s selling orientation- customer orientation (SOCO) will affect not only

consumer satisfaction with the salesperson and dealer, but also indirectly, satisfaction with the

product or manufacturer.

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In the perspectives of both the retailer and the manufacturer, customer satisfaction

represents an important issue because it relates to several desirable outcomes. Customer satisfaction

leads to future purchases, and repeated purchases of the same product from the same source. In other

words, it helps a firm retain its present customers and build loyalty. By helping a buyer obtain

product information and providing guidelines about what should be expected during the buying

process and use of a product, a salesperson may influence customer expectations concerning the

product. Thereby this may reduce the likelihood of dissatisfaction (Grewal and Sharma, 1991). A

successful salesperson tailors to the needs of each individual customer. By being customer-oriented,

a salesperson is likely to identify with needs of the customer, enabling the salesperson to match his

or her presentation to those requirements of the customer.

Internal marketing – how it affects Customer Satisfaction –

Successful companies make every effort to ensure satisfaction to their customer

by focusing all organizational efforts of the company on providing superior customer service. By

doing this these companies hope to retain their existing customers and attract new ones. Only angle

of customer satisfaction commonly overlooked is the internal aspect.

The internal customer or employee plays a vital role in achieving customer

satisfaction and loyalty. Some firm’s do not understand that the treatment of internal customers

becomes the external customers’ perception of the company. A firm’s employees or other

departments within the organization make up its internal customers. Their job performance affects

the firm’s ability to deliver superior product and customer service (Boone and Kurtz, 1999). When a

firm’s employees are happy at work, their overall attitude and performance towards the customer

enhances tremendously. Internal marketing helps members or employees of an organization

understand and fulfill their roles in implementing its marketing strategy. Internal marketing not only

keeps employees happy, it also shows them how their actions affect the firm’s ability to achieve

customer satisfaction.

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CHAPTER-3

RESEARCH METHODOLOGY

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OBJECTIVES OF THE STUDY

The study has been undertaken with the main objective to know the satisfaction level of the

consumer with the products and after sale services of the vehicles.

The other specific objectives are:

To know the level of customer satisfaction with the services provided by Pearl Ford, kernal.

To study the opinion of the owners of cars regarding its features like mileage, price etc.

To study the effect of advertisement on the customers to promote the produc

To give suggestions to improve customer satisfaction

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RESEARCH METHODOLOG Y

Research is a careful investigation or inquiry especially through search for new facts in branch of

knowledge: market research specifies the information. Required to address these issues: designs the

method for collecting information: manage and implements the data collection process analyses the

results and communicates the finding and their implications. Research problem is the one which

requires a researcher to find out the best solution for the given problem that is to find out the course

of action, the action the objectives can be obtained optimally in the context of a given environment.

This chapter aims to understand research methodology establishing a framework of evaluation and

re-evaluation of primary and secondary research. The techniques and concepts used during primary

research in order to arrive at findings,which are also dealt with and lead to a logical deduction

towards the analysis and results.

TYPE OF RESEARCH DESIGN: 

EXPLORATORY CUM DESCRIPTIVE RESEARCH 

The research I conducted is exploratory as well as descriptive.

Exploratory research involved collection of data from primary and secondary sources.

Data Collection: - The objectives of the project are such that both primary and secondary data is

required to achieve them. So both primary and secondary data was used for the project. The mode of

collecting primary data is personal interview and sources of secondary data are various magazines,

books, newspapers, & websites etc.

1. Primary Data: The primary data was collected to measure the vehicles coming for repair in

workshop and their frequency of coming. The primary data was collected by means of personal

interview and analysis was done on the basis of response received from the customers. The interview

has been conducted in such a manner that the consumer’s satisfaction level can be measured and

consumer can enter his responses easily.

31

2. Secondary Data: The purpose of collecting secondary data was to achieve the objective of

studying the recent trends and developments taking place in cargo vehicles.

SAMPLE SIZEI have targeted 100 people in the age group of above 21 years for the purpose of the

research. The target population influences the sample size. The target population represents karnal

region.

Analysis and Interpretation

After the data collection, it was compiled, classified and tabulated manually and with help of

computer. .

LIMITATIONS OF THE STUDY

1. Limited scope

The survey was conducted in karnal thus the respondents belonged to only this region of the country.

This could have brought bias into the study.

2. Assumption for the purpose of analysis

Some assumptions were made while doing analysis and interpretation; there could be few limitations

in regard to these.

3. Limited Time and Resources

Limited time and the resources resulted in many discrepancies

32

CHAPTER- 4

DATA ANALYSIS AND INTERPRETATION

33

1). Which of the following Ford car you own?

a) Fiesta

b) Figo

c) Endeavour

d) EcoSport

Data analysis:

% of customers05

101520253035

figo Fiesta Endeavour Ecosport

Interpretation: This question is meant for taking the information regarding the most preferred car in

the Ford cars. From the above graph it is found that most preferred vehicle of Ford cars is Figo

34

Name of the car % of customers

figo 35

fiesta 22

Endeavour 18

Ecosport 25

2). What do you like most about your Ford car?

a) Style/design

b) Comfort

c) Ford brand

d) Service

Data analysis:

0

10

20

30

40

50

18

46

26

10

Customer preference

Style/design Comfort Ford brand Service

% o

f cus

tom

ers

35

Customers preference % of customers

Style/design 18

Comfort 46

Ford brand 26

Service 10

Interpretation: This question is meant to know the customers preferences and likes towards the

cars. From the data we can position our product to the comfort seeking group of people.

3).What do you feel great about your car when compared to other cars in the market?

a) Fuel efficiency

b) Durability

c) Low maintenance

d) Sound quality

e) Brand name

Data analysis:

36

Customers perspective % of customers

Fuel efficiency 4

Durability 14

Low maintenance 18

Sound quality 24

Brand name 40

0

5

10

15

20

25

30

35

40

Fuel efficiencyDurabilityLow maintenanceSound qualityBrand name

customer prespective

% o

f cus

tom

ers

Interpretation: From this question we can position the cars according to the customer’s

perspectives. Many of the Ford customers are buying the cars by seeing its Brand Name only. The

no. of customers satisfied with the fuel efficiency are very low.

4). How did you come to know about this car before purchasing?

a) From friends, relatives (buzz)

b) Advertisements

c) Car experts

d) Sale’s persons visit

e) Auto magazines

Data analysis:

37

Source of awareness No. of

customers

Friends, relatives 18

Advertisements 50

Car experts 6

Sale’s persons visit 16

Auto magazines 10

0

10

20

30

40

50

18

50

6

16

5

Friends, relativesAdvertisementsCar expertsSale’s persons visitAuto magazines

Source of awareness

% o

f cus

tom

ers

Interpretation: Most of the Ford customers came to know about their vehicle through

advertisements only. The major media that attracted the customers is television.

5).Can you share your experience with after sale service support.

a) Very much satisfied

b) Satisfied

c) Ok

d) Not satisfied

Data analysis:

38

Post service

experience

No. of

customers

Very much satisfied 12

Satisfied 30

Ok 50

Not satisfied 8

0

10

20

30

40

50

60

Very much satisfied Satisfied Ok Not satisfied

After sale service experience

No.

of c

usto

mer

s

Interpretation: This question is prepared to know the service levels of the authorized dealer. Most

of the customers are just telling ok about the service. Only a very few customers are very much

satisfied with the service. Even some of the customers are not satisfied with the service given by the

authorized service men.

6). Where do you get your car serviced regularly?

a) At authorized service centre

b) At a local workshop near my home

Data analysis:

39

Place of service No. of

customers

At authorized service centre 82

At a local workshop near

home

18

82%

18%

customers preference for service centres

at authorised service centre

At a local workshop near home

Interpretation: Most of the Fortune Ford customers are interested to service their vehicles only at

the authorized dealers. From this we come to know what the importance of authorized service

centers for car is.

7. From where did you heard about this workshop?

(1) Magazines.

(2) Newspapers.

(3) Television.

40

(4) Local advertisement.

(5) Others.

Response % of customers

Magazines 10

Newspapers 33

Television 6

Local advertisement 46

Others 5

DATA ANALYSIS:

Magazi

nes

Newspap

ers

Televi

sion

Local ad

vertisem

ent

Others0

1020304050

% of customers

% of customers

INTERPRETATION: Most of the people got information about this workshop through local

advertisement, followed by newspapers and magazines.

8. How long you are coming to this workshop?

(1) Less than six months.

(2) Six month to one year.

41

(3) One year to two years.

(4) More than two years.

Duration of visiting the workshop Response

Less than six months 10

Six month to one year 45

One year to two years 32

More than two years 13

DATA ANALYSIS:

Response

Less than six monthsSix month to one yearOne year to two yearsMore than two years

INTERPRETATION: Majority of the customers (45%) are visiting the workshop from six

months to one year, this is followed by one to two year old customers of Ford.

9. Are you satisfied with the company’s free service plans?

(1) Very dissatisfied

42

(2)Somewhat dissatisfied

(3)Neither satisfied nor dissatisfied

(4) Very satisfied

(5)Somewhat satisfied

DATA ANALYSIS:

% of customers

Very dissatisfiedSomewhat dissatisfied Neither satisfied nor dissatisfied Very satisfiedSomewhat satisfied

INTERPRETATION: Majority of the customers are moderately satisfied with free service plans

offered by company and notably this is more than half of the respondents. This is followed by

extremely satisfied customers which forms a significant 30%.

10. Do you agree that the services are done on time?

43

Satisfaction with free service plans % of customers

Very dissatisfied 2

Somewhat dissatisfied 9

Neither satisfied nor dissatisfied 4

Very satisfied 30

Somewhat satisfied 55

(1) Very much disagree

(2) Somewhat disagree

(3) Neither agree nor disagree

(4) Very much agree

(5) Somewhat agree

Response regarding timely service % of customers

Very much disagree 3

Somewhat disagree 35

Neither agree nor disagree 3

Very much agree 20

Somewhat agree 39

DATA ANALYSIS:

Very much disagree

Somewhat disagree

Neither agree nor disagree

Very much agree

Somewhat agree

05

1015202530354045

% of customers

% of customers

INTERPRETATION: 39% of the customers moderately agree on timely service issue. There are

35% of customers who moderately disagree, customers who very much agree are 20% while very

much disagreeing customers are only 3%.

44

11. Which problem you face when you come for the service?

(1) Timeliness

(2) Customer relationship

(3) Infrastructure

(4) Others

Problems faced % of customers

Timeliness 62

Customer relationship 23

Infrastructure 10

Others 5

DATA ANALYSIS:

45

% of customers

timeliness customer relationshipinfrastructureothers

INTERPRETATION: The timeliness issue is complained by 62% of customers during the

servicing of the vehicles, followed by 23% customers who have customer relationship issues.

The workshop must address these issues seriously.

12. How will you rate the Company in maintaining good customer relationship?

(1) Good

(2) Average

(3) Poor

Maintaining good customer relationship % of customers

Good 35

Average 58

Poor 7

DATA ANALYSIS:

GoodAverage

Poor

0

10

20

30

40

50

60

% of customers

% of customers

46

INTERPRETATION: In maintaining good customer relationships, the majority (58%) rated the

company as average. Only 7% rated the company poor in this case.

13. Are you satisfied with the service charges?

(1) Yes

(2) No

(3) Neither yes nor no

Response regarding service charges % of customers

Yes 32

No 55

Neither yes nor no 13

DATA ANALYSIS:

% of customers

YesNoNeither yes nor no

47

INTERPRETATION: More than half of the respondents were not satisfied with the service

charges. Only 32% find these charges reasonable.

14. Will you want to come for service next time?

(1) Yes

(2) No

(3) Can’t say

Response % of customers

Yes 63

No 17

Can’t say 20

DATA ANALYSIS:

% of customers

YesNoCan’t say

48

INTERPRETATION: 63% customers told that they would come again for getting their vehicle

serviced the next time, followed by 20% who were unsure whether they would come or not.

15. If you don’t come again, then what is the reason behind this?

(1) Poor timing.

(2) Infrastructure

(3) Poor dealing of Employees

(4) Others

Reason for not visiting again % of customers

Poor timing. 64

Infrastructure 10

Poor dealing of Employees 13

Others 13

DATA ANALYSIS:

49

% of customers

Poor timing. InfrastructurePoor dealing of Employees Others

INTERPRETATION: Again, poor timing remains the biggest reason for annoyed customers, who won’t come for service the next time. This is followed by poor dealing of employees and other reason.

50

CHAPTER- 5

FINDINGS, SUGGESTIONS AND CONCLUSION

51

FINDINGS1. The proportion of customers who like ‘service’ factor in their Ford vehicle the most is extremely low (only 10%). This clearly indicates the dissatisfaction level of customers with the service of Ford vehicles.

2. However among other variables, the brand name is liked the most, followed by the comfort factor. Many of the Ford customers buy the cars because of the trusted brand name. This gives us an insight of the relationship between the company and the customers.

3. The after sale services don’t please the customers much. The extremely satisfied customers were as low as 12%. The highest proportion of customers consisted of moderately satisfied customers constituting 50%

4. Interestingly 82% of customers prefer only authorized Ford dealers for getting their Ford vehicle serviced which is inspiring.

5. Regarding the preference of customers relating to vehicle they want to buy, Ford Figo tops the list among other cars.

6. Notably, a significant proportion of people attach comfort feature with the Company’s cars. So the Company can advantageously position its products to the confort seeking group of people.

7. Extensive advertisement has helped the Company to popularize its brand name among the people.

52

8. Majority of the customers (45%) are visiting Pearl Ford from six months to one year, this is followed by one to two year old customers of Ford.

9. But unfortunately, the proportion of customers who have been visiting this agency from more than two years is very low (only 13%). This shows that majority of customers sell their Ford vehicle and shift their preference to other brands after around 2 years.

10. Majority of the customers are satisfied with the procedure of the service, but still the proportion

of customers who want change in the procedure is as high as 43%. This calls for better strategic

planning.

11. The timeliness issue is complained by 62% of customers during the servicing of the vehicles,

followed by 23% customers who have customer relationship issues.

12. In maintaining good customer relationships, the majority (58%) rated the company as average.

13. Around 55% of the respondents were not satisfied with the service charges.

SUGGESTIONS

1. Pearl Ford must address the timeliness issue during servicing the vehicles.

2. Strategies on Customer Relationship Management need to be framed and implemented.

3. Pearl Ford should reduce the service charges, as more than half of the respondents find them to be

unreasonable.

4. The after sale services need to be improved.

5. Since majority of customers sell their Ford vehicle and shift their preference to other brands after

around 2 years, the company should seriously take this fact into consideration.

6. Changes need to be incorporated in the procedure of the service.

53

CONCLUSION

In the nutshell, it can be concluded that the brand name rules the heart of the customers. Ford Fiesta

is the most favorite car among other Ford vehicles. Unfortunately, majority of customers sell their

Ford vehicle and shift their preference to other brands after around 2 years. This indicates poor

strategic planning. The after sale services of the dealer also need improvements. The dealer should

seriously take this into consideration for its long run survival and success. Strategies need to be

formulated to have an edge over the competitors.

Ford is one of the top car brands in the world and customers attach expectations with it. However,

not most of the customers are pleased with its services. The company needs to keep in mind that the

customer is the king, and his satisfaction should be the topmost priority of the company. But the

revelations of the research don’t present a very good picture. I hope the company draws benefits

from this report and understands the value of perception of its esteemed customers and make the

required improvements.

Finally, I would like to mention that this project has given me an idea of handling real situations. I

have made my sincerest efforts to complete this work with as much perfection as possible

54

CHAPTER -6

BIBLIOGRAPHY

55

1) www.Fordmotors.com

2) www.autocar.com

3) www.overdrive.in

4) http://bhagatgroup.com/Ford-index.htm

5) Magazines- Autocar India, Topgear, WhatCar, Car n

Style

6) Newspapers- Economic Times Zigwheels

7) Journals- India Overdrive, Fastrack

56

57

CHAPTER-7

ANNEXURE

A. QUESTIONNAIRE

CUSTOMER SATISFACTION INDEX

Details:

58

Vehicle No: _______________________________________________________

Model: ___________________________________________________________

Customer Name: __________________________________________________

Telephone No: ______________________Mobile:________________________

Date: __________________Customer signature: ________________________

1. Which of the following ford car you own ?

a) figo b) fiesta c) endavour d) Ecosport

2. What do you like most about the car?

a) Style/design b) Comfort c) Ford brand d) Service

3. What do you feel great about your car when compared to other cars in the market ?

a) Fuel efficiency ( )

b) Durability ( )

c) Low maintenance ( )

d) Sound quality ( )

e) Brand name ( )

59

4. How did you come to know about this car before purchasing ?

a) Friends , relatives ( )

b) Advertisements ( )

c) Car experts ( )

d) Sale person visit ( )

e) Auto magazines ( )

5. Can you share your experience with after sale services support.

a) Very much satisfied ( )

b) Satisfied ( )

c) Ok ( )

d) Not satisfied ( )

6. Where do you get your car serviced regularly ?

a) At authorized service centre

b) At a local workshop by home

60

7. From where did you heard about Pearl Ford?

Magazines. ( )

Newspapers. ( )

Television. ( )

Local advertisement. ( )

Others. ( )

8. How long you are coming to Pearl Ford?

Less then six months. ( )

Six month to one year. ( )

One year to two years. ( )

More then two years. ( )

9. Are you satisfied with the company’s free service plans?

(1) Very dissatisfied ( )

(2) Somewhat dissatisfied ( )

(3) Nether satisfied nor dissatisfied ( )

(4) Very satisfied ( )

(5) Somewhat satisfied ( )

(5) Somewhat agree ( )

10. Do you agree that the services are done on time?

(1) Very disagree ( )

61

(2) Somewhat disagree ( )

(3) Nether agree nor disagree ( )

(4) Very agree ( )

(5) Somewhat agree ( )

11. Which problem you face when you come for the service?

1) timeliness ( )

2) customer relationship ( )

3) infrastructure ( )

4) others ( )

12. How will you rate the company in maintaining good customer relationship?

(1) Good ( )

(2) Average ( )

(3) Poor ( )

13. Are you satisfied with the service charges?

(1) Very dissatisfied ( )

(2) Somewhat dissatisfied ( )

(3) Nether satisfied nor dissatisfied ( )

(4) Very satisfied ( )

(5) Somewhat satisfied ( )

62

Q14. Will you want to come for service next time?

(1) Yes ( )

(2) No ( )

(3) Can’t say ( )

15. If you don’t come again, then what is the reason behind this?

(1) Poor timing. ( )

(2) Infrastructure ( )

(3) Poor dealing of Employees ( )

16.Please give your comments/suggestions to enable us to improve satisfaction of customers at

this Ford authorized showroom.

63

_______________________________________________________________

_______________________________________________________________

THANK YOU FOR YOUR VALUABLE OPINIONS

64