CUSTOMER’S SATISFACTION OF HONDA TWO WHEELERS

“A STUDY ON CUSTOMER’S SATISFACTION OF HONDA TWO WHEELERS WITH SPECIAL REFERENCE TO AM WINGS HONDA PALAKKAD PVT LTD” 1. INTRODUCTION 1.1 Introduction to the Topic of the Study The prosperity of every business unit depends on the efficiency with which its goods are marketing. Marketing occupies an important position in the organization of a business unit. If the marketing functions are not fruitfully carried out, it will affect the existence of an ultimate customer at all time. All activities which are involved in the process of transferring floods from the place of its manufacture to the ultimate consumer some under the purview of marketing. A marketing strategy is a consistent appropriate and feasible set of principles through which particular company hope to achieve it long-run customer and profit objectives in a particular competitive environment.” Nowadays it become necessary develop new marketing techniques in maintaining the existing customers and in meeting the new ones. The most important changes is that the present day market is that quality standards earliest determined by the marketer have been now determined by the customer. Marketing begins with assessment of customer concerns and end up with the evolution. During the years of growing complexities the management needs more and more information to reduce the uncertainties involved in introducing the new product. It is related with needs , wants and demands , products ,value and satisfactions. The automobile industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue. The competitive nature of the automobile industry has prompted the companies to take up new and innovative market strategies towards the competition. The automobile industry in India has witnessed a rapid growth over the last couple of decades and in recent years it has also captured the attention of the whole world with some innovative products. It 1

includes manufacturing of cars, two-wheelers like motorcycles, scooters, bikes, passenger cars, trucks, tractors, defence vehicles and buses. The automobile industry can be widely divided into car manufacturing, heavy vehicle manufacturing and two-wheeler manufacturing. The study has been conducted to know the Customer Satisfaction level towards Honda Two Wheelers With Special Reference to AM Wings Honda Palakkad. They want to know the factors that lead to the preference of a particular brand by the customers. This study will be useful for the organization to understand the reasons for the preference of the Honda bike. Customer Satisfaction The modern marketing concept is

customer oriented backed by integrated marketing

aimed at generating customer satisfaction as the key to satisfying organizational. THEORETICAL BACKGROUND OF TOPIC

Satisfaction It is no longer enough to satisfy customers. You must delight them Satisfaction is a person feeling of pleasure or disappointment resulting from comparing the products to comparing product received performance

is or (outcome) in relation to his or her

expectation As this definition makes clear satisfaction is a function of received performance and expectations. With the performance falls sharp expectation, the customer is dissatisfied. If the performance matches the expectations the customer is satisfied. With the performance exceeds expectations, the customer is highly satisfied or delighted Mini companies are for high satisfaction because customers who are just satisfied still find it easy to switch when a better offer comes along. Those who are highly satisfied are much less ready to switch High satisfaction is delight creates an emotional brand with the brand. Not a just rational performance the result is high customer loyalty Xeroxes senior managers believes that a very satisfied or delighted customer is worth tent times as much to the company as a

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satisfied customer .a very satisfied customer very satisfied is likely to stay with Xerox many more years and buy more than a satisfied customers

1.2 ORGANIZATIONAL PROFILE 1.2.1 INDUSTRY PROFILE

Automobile Industry Profile The automobile industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue. The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel filling stations. Consumption trends About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 260 billion gallons of gasoline and diesel fuel yearly. In the opinion of some, urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investments. Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars. The sustainable transport movement focuses on solutions to these problems. The Detroit branch of Boston Consulting Group predicts that, by 2014, one-third of world demand will be in the four BRIC markets (Brazil, Russia, India and China). Other potentially powerful automotive markets are Iran and Indonesia.

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Automobile industry in India The Automobile industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12 In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about 1.5 million every year. The dominant products of the industry are two wheelers with a market share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and three wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. The industry has attained a turnover of more than USD 35 billion and provides direct and indirect employment to over 13 million people. The supply chain of this industry in India is very similar to the supply chain of the automotive industry in Europe and America. This may present its own set of opportunities and threats. The orders of the industry arise from the bottom of the supply chain i. e., from the consumers and go through the automakers and climbs up until the 4

third tier suppliers. However the products, as channelled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers. Interestingly, the level of trade exports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged. a new journey in 1991 with de-licensing of the sector and subsequent opening up for 100% foreign direct investment (FDI). Since then almost all global majors have set up their facilities in Indian taking the level of production from 2 million in 1991 to over 10 million in recent years. The exports in automotive sector have grown on an average compound annual growth rate of 30% per year for the last seven years. The export earnings from this sector are over USD 6 billion. Even with this rapid growth, the Indian automotive industry’s contribution in global terms is very low. This is evident from the fact that even thought passenger and commercial vehicles have crossed the production figures of 2.3 million in the year 2008, yet India’s share is about 3.28% of world production of 70.53 million passenger and commercial vehicles. India’s automotive exports constitute only about 0.3% of global automotive trade. INDIAN TWO WHEELER INDUSTRY

Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy framework in consonance with WTO requirements have set the industry in a progressive track. Removal of the restrictive environment has helped restructuring, and enabled industry to absorb new technologies, aligning itself with the global development and also to realize its potential in the country. The liberalization policies have led to continuous increase in competition which has 5

ultimately resulted in modernization in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group. INDIA is the second largest producer of two-wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of production and sales respectively. Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler industry, bikes and scooters cover a major segment. Bikes are considered to be the favorite among the youth generation, as they help in easy commutation. Large varieties of two wheelers are available in the market, known for their latest technology and enhanced mileage. Indian bikes, scooters and mopeds represent style and class for both men and women in India. However, few Indian bike enthusiasts prefer high performance imported bikes. Some of the most popular high-speed bikes are Suzuki Hayabusa, Kawasaki Ninja, Suzuki Zeus, Hero Honda Karizma, Bajaj Pulsar and Honda Unicorn. These super bikes are specially designed for those who have a zeal for speedy drive.

FAMOUS INDIAN TWO WHEELER DEALERS            

BAJAJ AUTO LTD. HERO MOTOCOP LTD. HMSIL HERO ELECTRIC KINETIC MOTOR CO. LTD. LML INDIA LTD. MONTO MOTORS ROYAL ENFIELD MOTORS INDIA LTD. SUZUKI MOTOR CORPORATION TVS MOTOR CO. YAMAHA MOTOR INDIA PVT.LTD. MAHINDRA 2 WHEELERS LTD.

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1.2.2

COMPANY PROFILE

HONDA MOTORCYCLES & SCOOTERS INDIA LTD Honda Motorcycle & Scooter India Pvt. Ltd (HMSI) is a fully owned subsidiary of Honda Motor Company Limited, Japan. Honda is the world's largest manufacturer of two wheelers. Set up in 1999, it was the fourth Honda automotive venture in India, after Hero Honda, Kinetic Honda Motor Ltd and Honda Siel Cars India Limited. Headquarters of the company are located at Gurgaon in Haryana state of India. In December 2002, HMSI got ISO 14001 certification. ABOUT THE COMPANY Honda Motorcycle & Scooter India Pvt. Ltd was founded on August 20, 1999 at Manesar near Gurgaon in Haryana. The foundation stone for the Honda factory was laid on December 14, 1999 and the factory was completed in January 2001. The company initially ventured into scooters as its joint venture agreement with the Hero Group precluded its entry into the motorcycle segment for five years. The company set benchmarks in the Indian scooter industry with the launch of its gearless scooter Honda Activa. Honda Dio, launched after it, was a slightly upgraded and trendier version of Activa. Honda Eterno was another addition to the repertoire of Honda scooters. First bike

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launched by HMSI was Honda Unicorn. It was followed by Honda Shine. All the products launched by HMSI were runaway hits in the market. HMSI factory at Manesar is built on 52 acres of land. Its initial production capacity was 100,000 scooters per year, which has now been upgraded to 6,00,000 scooters. The bike production capacity is 10,00,000 per annum. Initial investment behind the factory was Rs.215 crores and has now grown to 800 crores. About AM MOBIKES AM Honda, one of the unit of AM Mobikes is an authorized dealer of Honda Motorcycles & Scooters in Malappuram and palakkad Dt. It was established in the year -2004 at Angadipuuram near Perinthalmanna as a partnership firm. The Managing Partner, Mr.Jamsheed KM is the CEO of the firm .As the business grew the establishment also developed. Branches of AM Honda     

AM WINGS HONDA palakkad AM HONDA Tirur AM HONDA Angadippuram AM HONDA Kondotty AM HONDA Manjeri

INFRASTRUCTURE The Head Office is functioning at 2 floored owned building. It has separate sections for servicing, PDI, showroom etc. Its spacious area for the exclusive display of new bikes itself attracts customers and it will give a new buying experience to the customers. Service section has the capacity of servicing more then -50 vehicles per day. The branches are structured like Head Office. MISSION The mission differs from organization to organization. It is designed to work together for a common aim for the successful performance of the organization not only in the short run but also for a long run. It identifies the scope of the company’s operations,

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describes company’s products, market & technological areas of thrust and reflects the values and priorities of its strategic decision makers. According to the Management officials of AM group, their success is their team work and loyalty to the customers. They are always trying to give 100% satisfaction to the customers. The mission is clearly defined by them as follows. “Our mission is not just the art of selling vehicles, but the satisfied customer which we believe that the best advertisement than everything.” ORGANISATIONAL OBJECTIVES 

To be dynamic and growth oriented

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To create a distinguished climate within the organization

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To protect the environment.

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To be law abiding and comply with all statutory requirements

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To protect the right of the customers

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To be a front runner in providing match less services.

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To create good employment opportunity

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To protect the right of employees.

KEY POLICIES HMSI ENVIRONMENTAL POLICY Honda has always wanted to pass on the beautiful natural environment to the next generation, and will continue its environmental conservation activities, meeting the high goals that it has set independently. HMSI got ISO 14001 certification in Dec. 2002, which is committed to achieve, HMSI will establish its environmental management system following PDCA cycle and continuously work to make it more effective. The policy will be well disseminated to our employees as well as to the public at large. 9

Other Environmental activities of Honda Motorcycle & Scooters India Pvt Ltd (HMSI) are described below: 

Developing Green Vehicles “At Honda, we are striving towards developing zero-emission in all our vehicles.

We are the first company in Japan to meet the most recent exhaust emission regulations. To reduce the environmental burden of four-stroke engines, we have developed a unique exhaust air injection system and a programmed fuel injection (PGM- F1) (PGM-F1) system, which is currently in use in the HONDA VFR motorcycle. On the other hand, the Giorno Crea, is a new generation, environment friendly 50cc scooter that is highly fuelefficient”. Eco-Friendly Factory. Honda's production facilities across the world also actively pursue energy-efficient methods and prevent water pollution by reducing industrial waste. Honda has taken aggressive initiatives to reduce the environmental impact of its manufacturing operations, by implementing its concept of the "Green Factory". HMSI too is actively working towards establishing an environment management system. 

Conserving environment through preventing pollution at its source of generation and strengthening our existing pollution control system.

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Promoting conservation of resources such as energy, water, oil and grease and other raw materials, by reusing, recycling and minimizing the waste generation.

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Complying with all applicable legal/regulatory requirements and strive to go beyond wherever possible.

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Regular monitoring and reviewing of environmental objectives and targets.

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Increasing environment awareness and competence amongst our employees and encourage vendors & dealers to adopt EMS.

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The "Green Dealer Concept" Started by Honda is a step further in the direction of conservation of the environment. The "Green Dealer Concept" would not only help in proper and efficient use of resources such as water, electricity, paper etc. by constantly monitoring and improving the existing systems thus doing lots of cost cutting but also reducing the polluting activities to minimum. Increasing environment awareness amongst the employees and the general public is also feature of this unique concept. SAFTEY POLICY Enhancing safety on the roads is one of Honda's top priorities. They firmly believe that the realization of a comfortable and an enjoyable mobile society depends on the mutual trust that automobile manufacturers like them, share with the consumers and society. At Honda, they use a three prong approach, based on preventing accidents from happening in the first place, minimizing injury in the unlikely event of an accident and their Driving Safety Promotion operations. Honda's safety philosophy emphasizes the development of appropriate technologies for its products, so as to ultimately achieve maximum riding comfort for its customers. Honda was the first manufacturer in Japan to develop and apply the anti-lock brake system. Educating the world, Honda is actively involved with driving education across the world for promoting traffic safety.

Honda Training Program The Honda Riding Trainer is a state-of-the-art, compact, computer driven machine that puts riders in real life road traffic situations through a wide variety of options. The Riding Trainer can reproduce various traffic situations that occur on roads, offering the user a safe way to experience hazardous situations. Further, users can repeatedly play back and view from various angles the dangers concealed in road traffic and the processes leading to accidents and hazardous situations, confirming them with their own eyes. The Trainer therefore allows users to deepen their understanding of safety and functions as an effective training tool for hazard prediction for all riders from beginners to advanced

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riders. It also gives beginners a chance to practice clutching and other motorcycle operations before riding an actual motorcycle. Till date we have 125 Riding Trainer across India.

1.2.3 PRODUCTS PROFILE

HONDA CBR 250R Honda CBR250R was launched in India to cater to growing demand in the entrylevel performance segment. It is one of the most affordable 250cc motorcycles in India and is applauded for comfortable riding position that would suit most conditions from city traffics to touring. The fully-faired onda CBR 250R gets an integrated sporty cowl that adds some style and enhances its aerodynamic design. It is inspired from its big daddy, the VFR 1200 and looks very neat and impressive. The Honda CBR 250R is powered by a 249cc single cylinder liquid cooled fuel injected engine that churns out 26bhp at 8500rpm and 22.9Nm at 7000rpm. This engine is mated to a 6-speed gearbox with 1 down and 5 up as its gear shift pattern. The motorcycle gets telescopic at the front and 5-step-adjustable mono shock absorber at the rear whiHch makes the rides very comfortable. The CBR 250R is sold in two variants in India – non-ABS and ABS. Both the variants get 296mm disc in the front and 220mm disc at the rear. It gets 13 litres fuel tank capacity which is quite decent for a 250cc motorcycle and has a kerb weight of 167 kg. The motorcycle is sold in five variants in India, including recently introduced REPSOL edition.

HONDA CBR 150R Honda has gone very aggressive in the Indian 2-wheeler market. The Japanese automaker was quick in bringing in the new Honda CBR250R to India, pricing it very aggressively in the performance motorcycle segment. The company showcased a range of 12

products at the 2012 Auto Expo, one of which was theHonda CBR150R. The CBR150R is an entry level sports bike and Honda believes it is a ‘true racing sensation’. We take it for a quick spin to find out if it really has the CBR DNA in it. Styling – The Honda CBR150R looks very similar to its elder sibling, the CBR250R. The styling is quite appealing and the bike looks quite big for a 150cc machine. The VFR1200 inspired Y-shaped headlight has black surrounds around the twin pilot lights, while the CBR1000RR inspired fairing adorns graphics, which extend to the tank. These minor changes differentiate it from its elder sibling. Even the tail light of the Honda CBR150R is the same as the Honda CBR250R, which is a non-LED unit. In fact the only difference between the 150R and 250R is the slightly shorter yet differently shaped exhaust and black colored alloy wheels in the 150R. However look closely and you will realize the Honda CBR150R is a more compact motorcycle. The shorter wheelbase gives it a very sporty stance. The front tyres are 100/80-17 and the rear tyres are 130/70-17, which are smaller than the ones found on the CBR250R. The number plate mounting is not at a good position, as the front mudguard hits it when you go over potholed roads. Honda has also given the CBR150R very different colors, which are not available on the CBR250R. These colors have a dual paint scheme, giving the baby CBR a very youthful appearance. The colors are the only difference between Standard and Deluxe variants of the bike. HONDA SHINE The CB Shine is a 125cc commuter motorcycle developed by Honda for the mass market segment. The Shine caters to a segment of buyers who are ok with understated looks but expect respectable performance and efficiency. This coupled with Honda’s refinement and reliability makes the Shine a solid all round package. The CB Shine gets some nice graphics that can be seen running all over the fuel tank. A 3D Honda emblem on the fuel tank gives it a distinct class and style. The motorcycle gets a lightweight advanced diamond frame and is powered by 124cc single cylinder air-cooled engine. The engine churns out 10.12bhp at 7500 rpm and 10.54Nm at 5500 rpm and is mated to a four speed gearbox with all back (N-1-2-3-4) shift patterns. The CB Shine gets spring loaded hydraulic suspension at both the front and rear, along with 18-inch wheels. 80/100 tubeless tyres for both the front and the rear are standard on this bike. The CB 13

Shine gets 240mm front disc and 130mm rear drum that provide decent traction under braking. The CB Shine has a kerb weight of 120kg which is pretty decent for a 125cc motorcycle.

The Honda CB Shine is sold in five colours – Force Silver Metallic, Black, Geny Grey Metallic, Rebel Red Metallic and Monsoon Grey Metallic. It is available in three different variants – Self-Disc-Alloy, Kick-Drum-Spoke and Self-Drum-Alloy.

HONDA DREAM YUGA Honda launched the Dream Yuga motorcycle in 2012. With its launch, the Japanese manufacturer forayed into the volume segment where most of the manufacturers are trying to gain as much market share as they can. The Dream Yuga was inspired from the CB Twister and the CB Shine motorcycles and is extremely reliable (like most of the Honda engines) and is known for its low cost of ownership. The motorcycle is little bulky unlike the CB Twister to give it big motorcycle feeling. The Dream Yuga has a very nice ergonomics making the rider easy to ride in traffic. The bikini front fairing and the graphics on the exterior makes the motorcycle look attractive. The Honda Dream Yuga is powered by 109cc single cylinder air-cooled engine which churns out 8.25bhp at 7500rpm and 8.63Nm of torque. The engine is mated to four-speed constant mesh gearbox which has all-up gearshift pattern. The motorcycle has telescopic suspension in the front and 5 step spring loaded suspension at the rear and features 8 litre fuel tank. The company recently updated the motorcycle with a 2013 variant which features the Honda Eco Technology (HET). With a claimed fuel efficiency of 72kmpl, the motorcycle can travel for approximately 576kms on a single tank. It gets 18 inch allows wheels and tubeless tyres at both, front and rear The Honda Dream Yuga is available in three variants in India – Self start-drum-alloy, Kick start-drum-spoke and Kick Start-drum-alloy. Its sold in India in five colours – Maple Brown Metallic, Force Silver Metallic, Monsoon Grey Metallic, Alpha Red Metallic and Black. 14

HONDA UNICORN The Honda CB Unicorn is the Japanese automaker’s mid-weight 150cc champion. On sale in the Indian market since 2005, it is now currently in its fourth avatar as the CB Unicorn. It carries a similar design as the original bike but now in a sportier avatar.

The bike is powered by a 149cc air cooled engine that produces 13bhp and 12Nm of torque. It employs a chain drive that has been connected to a five-speed sequential transmission. Standard features on the CB Unicorn include a front disc brake, mono shock rear suspension, digital speedo with analogue tachometer, button star alloy wheels and a digital fuel gauge.

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The Honda CB Unicorn competes with the Bajaj Pulsar 150, Hero Hunk and the Yamaha SZ-S in the 150cc commuter segment. HONDA TWISTER Honda CB Twister was launched in 2010 keeping in growing entry level motorcycle segment in mind. The segment at which the CB Twister is placed in attracts the maximum number of sales and volumes. The Japanese manufacturer wanted to give a stylish entry level scooter to this mass market segment with the CB Twister. The motorcycle has a fresh and sporty design which makes the motorcycle look young and stylish. The CB Twister gets sporty headlamp, screen less front cowl and curvy fuel tank that help this machine look aggressive. The Honda CB Twister is powered by a 109cc air cooled single cylinder engine that generates 9bhp at 8000rpm and 8.97Nm at 6000rpm. The engine is mated to a four speed gearbox with 1-down and 3-up as is gear shift pattern. The CB Twister has 8 litres of fuel tank capacity and has a kerb weight of 108kg. The CB Twister has telescopic suspension in the front and spring loaded hydraulic shock absorber at the rear. It gets 17 inch allow wheels and tubeless tyres at the front and the rear.

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The CB Twister is sold in three variants in India, drum brakes with kick start, drum brakes with electric start and front disc brake with electric start. Four colour options are available for this motorcycle – Heavy Grey Metallic, Electric Yellow Metallic, Sports Red and Black.

HONDA ACTIVA The Honda Activa is the highest selling scooter from the Japanese auto maker and has been a leader in its segment since a long time. It was launched in 2000 and since then it has gone through few improvements with latest being the Honda Eco Technology which helps the scooter deliver fuel efficiency of 60kmpl The scooter is powered by 109cc air-cooled engine that develops 8bhp at 7500rpm and 8.74Nm at 5500rpm. The Honda Activa competes with the Hero Maestro and the TVS Wego. The Activa is a value for money scooter to buy but the problem comes during the delivery of the scooter as most of the time, there is a long waiting period.

HONDA DIO The Honda Dio has been developed keeping in young consumers of India in mind. The Japanese manufacturer has placed this scooter below the Aviator and the Activa in order to reach wide range of consumers. The Dio that has a young design is very dynamic and unisex in nature. It is powered by a 109cc air-cooled single cylinder that churns out 8bhp at 7000rpm and 8.77Nm at 5500rpm. The Dio gets the Honda Eco Technology (HET) that helps the scooter deliver fuel efficiency of 60kmpl. The scooter sport the combi-brake system (CBS) with which both front and rear brakes are 16

applied when the rear brake lever is pressed. It has 18-litres of storage space under the seat and is equipped with zero-maintenance battery and a viscous air filter that requires replacement only after 16,000kms.

HONDA AVIATOR Honda Aviator is the third scooter that Japanese maker offers in India after the Activa and the Dio. The Aviator with its tallish look and ‘Live your style’ slogan targets is mainly targeted towards male riders. Sitting at the top of current Honda scooters line-up in India, the Aviators gets the same engine that powers the Dio and the Activa. The 109cc single cylinder air-cooled engine churns out 8bhp at 7000rpm and maximum torque at 8.77Nm at 5500rpm. The scooter gets the V-Matic transmission and can be started using kick start as well as self-start option. With the recently updated Honda Eco Technology (HET) the scooter has company claimed efficiency of 60kmpl. The Aviator is sold in two variants in India, STD and DLX. The only difference between the two is that the STD version gets drum brakes, whereas for the DLX variant gets a front disc with Combined Braking System (CBS). The Aviator is sold in two variants in India, STD and DLX. The only difference between the two are that the STD version gets drum brakes, both at the front and the rear whereas for the DLX variant, the scooter gets a front disc with Combined Braking System (CBS) which is a good safety feature to have.

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2. MAIN THEME OF THE PROJECT 2.1 Need for the Project The researcher aims at finding ways of improving customer satisfaction of AM wings Honda. In this case the actual vehicles are very much aware of AM wings Honda and other dealers of Honda two wheelers in the market therefore the firm which want to improve its performance to make the customer satisfaction 2.2 Review of Literature The literature pertaining to relationships among customer satisfaction, customer loyalty, and profitability can be divided into two groups. The first, service management literature, proposes that customer satisfaction influences customer loyalty, which in turn affects profitability. Proponents of this theory include researchers such as Anderson and Fornell (1994); Gummesson (1993); Heskett et al.(1990); Heskett et al. (1994); Reicheld and Sasser (1990); Rust, et al. (1995); Schneider and Bowen (1995); Storbacka et al. (1994); and Zeithaml et al. (1990). These researchers discuss the links between satisfaction, loyalty, and profitability. Statistically-driven examination of these links has been initiated by Nelson et al. (1992), who demonstrated the relationship of customer satisfaction to profitability among hospitals, and Rust and Zahorik (1991), who examine the relationship of customer satisfaction to customer retention in retail banking. The Bank Administration Institute has also explored these ideas, in particular Roth and van der Velde (1990, 1991) The service management literature argues that customer satisfaction is the result of a customer’s perception of the value received in a transaction or relationship - where value equals perceived service quality relative to price and customer acquisition costs (see 18

Blanchard and Galloway, 1994; Heskett et al., 1990) - relative to the value expected from transactions or relationships with competing vendors (Zeithaml et al., 1990). Loyalty behaviours, including relationship continuance, increased scale or scope of relationship, and recommendation (word of mouth advertising) result from customers’ beliefs that the quantity of value received from one supplier is greater than that available from other suppliers. Loyalty, in one or more of the forms noted above, creates increased profit through enhanced revenues, reduced costs to acquire customers, lower customer-price sensitivity, and decreased costs to serve customers familiar with a firm’s service delivery system (see Reicheld and Sesser, 1990). The second relevant literature is found in the marketing domain. It discusses the impact of customer satisfaction on customer loyalty. Yi’s “Critical review of customer satisfaction” (1990) concludes, “Many studies found that customer satisfaction influences purchase intentions as well as post-purchase attitude” (p. 104). The marketing literature suggests that customer loyalty can be defined in two distinct ways (Jacoby and Kyner, 1973). The first defines loyalty as an attitude. Different feelings create an individual’s overall attachment to a product, service, or organization (see Fornier, 1994). These feelings define the individual’s (purely cognitive) degree of loyalty. The second definition of loyalty is behavioural. Examples of loyalty behaviour include continuing to purchase services from the same supplier, increasing the scale and or scope of a relationship, or the act of recommendation (Yi, 1990). The behavioural view of loyalty is similar to loyalty as defined in the service management literature. This study examines behavioural, rather than attitudinal, loyalty (such as intent to repurchase). This approach is intended, first, to include behavioural loyalty in the conceptualization of customer loyalty that has been linked to customer satisfaction, and second, to make the demonstrated satisfaction/loyalty relationship immediately accessible to managers interested in customer behaviours linked to firm performance. Both the service management and the marketing literatures suggest that there is a strong theoretical underpinning for an empirical exploration of the linkages among customer satisfaction, customer loyalty, and profitability. The relatively small quantity of empirical research performed on these relationships to date (Storbacka et al., 1994) is

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probably the result of the paucity of organizations’ measuring “soft” issues, as customer satisfaction in meaningful ways.

2.3 OBJECTIVES OF THE STUDY 1)To find out the customers satisfaction of Honda two wheelers 2) To find out the factors that influence on customers, when they purchasing Honda 3) To find out the expectation of the customers 4) To help service provider of Honda to find out the satisfaction of customers with respect to after sales service provided by AM Wings Honda

2.4 RESEARCH METHODOLOGY Research methodology is a systematical way to solve the research problem. In this we studied various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. 2.4.1 RESEARCH DESIGN The project is based on descriptive research design. 2.42 SAMPLE DESIGN Sample Unit : The population involved in this project is the customers from the palakkad district. SAMPLE SIZE This refers to number of items to be selected from universe to constitute a sample. In this research sample size consist of 250 customers. SAMPLING TECHNIQUE 20

Convenient sampling technique has been used for the study. 2.4.3 DATA COLLECTION METHOD Both primary and secondary data has been used to satisfy the objectives of the study.

PRIMARY DATA The study is mainly based on primary data collected through a personal interviews from the existing respondents own Honda two wheeler.

SECONDARY DATA The data regarding company profile, industry profile etc has been collected from the by laws of organization, office records and also information available on the web.

2.4.4 STASTACAL TOOLS USED For analysis and interpretation of primary data, percentage analysis is used mainly due to qualitative nature of data Bar diagrams and pie charts are used to represent them in pictorial form. Percentage Analysis The collected data was analyzed by using percentage analysis method . percentage was calculated by taking the number of respondents for a particular parameter against the total number of respondents. The answers for questions asked in the questionnaire were tabulated and analyzed using simple percentage

Weighted average analysis Another tool used in this study is weighted average method for analyzing the rating and ranking scales. It is know that a mean is considered to be the most represented figure for

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the entire mass of data. This means for more realistic average is calculated by considering the weighted average for the same.

Weighted average =

sum of the frequency times the column weight Response count

2.4.5 SCOPE OF THE STUDY The study focuses on customer satisfaction towards the Honda two wheelers It includes availability level of products , quality of the products , customer’s expectations towards the products and problems faced by customers if any at Honda. Customer satisfaction is a feeling of pleasure or disappointment resulting from comparing a product’s perceived performance or outcome in relation to his or her expectations. So, satisfaction is a function of perceived performance and expectations. If the performance falls short of expectation, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectation, the customer is highly satisfied or delighted. When viewing the industrial sector we can see that all the corporate houses focusing on retaining the customers without compromising on organizational objectives, ethics and values. Customers are individuals and the organizations have to make each and every customer feel that they are highly compassionate to them. Hence Customer Relationship Management is having a wide scope in modern world.

2.4.6 LIMITATIONS OF THE STUDY.    

The study was restricted only to Palakkad District area. Many of the respondents have not given proper response The information that is provided by the individual may be biased Respondents were reluctant to disclose complete and correct information

22

2.5 Data Analysis and Interpretations Table 2.5.1 Age of the respondent Particulars 18-20 20-30 31-40 41-50 50 & above

No of respondents 45 91 61 38 15

% of respondents 18 36.4 24.4 15.2 6

Interpretation: The table shows that 18% of the respondents are 18- 20 age group,36% of the respondents belongs to 20–30 age group,24% of the respondents are 31-40 age group, 15% of the respondents are 41- 50 age group and 6% of the respondents 50 & above age group.

23

CHART 2.5.1 This chart describes the age group of respondents 40 35 30 25 20

36

15 10

24 18

15

5

6

0 18-20

20-30

31-40

24

41-50

50 & above

Table 2.5.2 Gender of the respondent Particulars male female

No of respondents 214 34

% of respondents 85.6 14.4

Interpretation: The table shows that 85.6% of the respondents are male 14.4% of the respondents are female.

25

CHART 2.5.2 This chart describes the gender group of respondents 90 80 70 60 50 40

85.6

30 20 10

14.4

0 Male

Female

26

Table 2.5.3 Occupation of the respondents Particulars Business Students Self employed Govt and privet

No of respondents 79 65 44 53

% of respondents 31.6 26 17.6 21.2

employees Other, specify

9

3.6

Interpretation: The table shows that 31.6% of the respondents are engaged in business, 26% of the respondents are in students,17% of the respondents are self employed, 21.2% of the respondents are Govt and privet employees and only 3.6% of the respondents are in other group.

27

CHART 2.5.3 This chart describes the occupation of the respondents. 35 30 25 20 15 10

31.6 26 17.6

21.2

5 3.6

0

28

Table 2.5.4 Model of Honda two wheeler owned by respondent

Particulars Activa Dio Shine CBR 150 CBR 250 Unicorn

No of respondents 57 45 20 15 8 70

% of respondents 22.8 18 8 6 3.2 28

Dream Yuga

31

12.4

Other specify

4

1.6

Interpretation:

The table shows that 22.8% of the respondents are using the Activa, 18% of the respondents are using Dio, 9.6% of the respondents are using the Shine 6% of the respondents are using the CBR 150, 3.2% of of the respondents are using the CBR 250, 28% of the respondents are using the Unicorn, 12.4 of the respondents are using Dream yuga .

29

CHART 2.5.4 This chart describes the model of Honda two wheeler owned by the respondents

30 25 20 15 10

28 22.8 18 12.4

5

8

6

0 Activa

Dio

shine

3.2

CBR 150 CBR 250

30

1.6 Unicorn Dream yuga other

TABLE 2.5.6: SOURCE OF AWARENESS OF THE PRODUCT. Particulars

No. Of respondents

% of respondents

Advertisement

80

32 13.2

Relatives Through Dealer Promotional

33 46

18.4

34

13.6

57

22.8

programs Friends

Interpretation: The table shows that 32% of the respondents to know about Honda through advertisement, 13.2% of the respondents to know through relatives 18.4% of the respondents to know through dealer and 13.6% of the respondents to know through promotional programs and 22.8% of the respondents are through friends.

31

CHART 2.5.6 This chart describes the source of awareness 35 30 25 20 15 10 5

32 18.4

13.2

0

32

22.8 13.6

Table 2.5.6 HONDA TWO WHEELER ARE BETTER THAN OTHER BRAND Particulars yes no


% of respondents 74 26

Interpretation: The table shows that 74% of respondents agreed that Honda two wheeler are better and the rest do not agree

33

CHART 2.5.6 This chart describes the Honda brand is better than other brands

26% Yes No 74%

34

TABLE 2.5.7 FACTORS INFLUENCING PURCHASING DECISION . Particulars

No. Of respondents

% of respondents

Quality

40

16

Price

55

22

Style

49

19.6

Performance

45

18

Mileage

61

24.4

Interpretation:

The table shows the reasons of opting Honda two wheeler. 16% of the respondents looks quality, 22% of the respondents were looks their price, 19.6% of the respondents were looks style, 18% of the respondents were looking performance and 24.4% of the respondents are looking mileage.

35

CHART 2.5.7 This chart describes the factors influencing purchase decision 30 25 20 15 22

10 16

24.4 19.6

18

5 0 Quality

Price

Style

36

Performance

Mileage

TABLE 2.5.8: SATISFACTION ON CURRENT TWO WHEELER

Particulars YES NO



Interpretation:

The table shows that 74.4% of the respondents are satisfied with current two wheeler and 23.6% of the respondents are said No.

37

CHART 8 This chart describes the satisfaction on current two wheeler

80

74.4

70 60 50 40 30 23.6

20 10 0 YES

NO

38

TABLE 2.5.9 COMMENT ON PRICE OF HONDA TWO WHEELER

Particulars Highly priced Rightly priced Low price

No. Of respondents 59 171 20

% of respondents 23.6 68.4 8

Interpretation:

The table shows that 23.6% of the respondents commented that price of the Honda two wheeler is very high, 68.4% of the respondents commented that it is Rightly priced and 8% of the respondents commented that the price is low

39

CHART 2.5.9 This chart describes the comment on the price of Honda two wheeler among the respondents. 80 68.4

70 60 50 40 30

23.6

20 8

10 0 Highly priced

Rightly priced

40

Low price

TABLE 2.5.10 COMPLAINTS ON WAITING PERIOD FOR DELIVERING OF HONDA TWO WHEELER

This table describes the waiting period for delivering of Honda two wheeler. Particulars YES NO

No:of respondents 183 67


Interpretation: The table shows that 26.8% of the Respondents had complaints and 73.2% of the Respondents did not have complaint

41

CHART 2.5.10 This chart describes the complaint on waiting period for delivering of Honda two wheeler.

80

73.2

70 60 50 40 30

26.8

20 10 0 YES NO

42

TABLE 2.5.11 PERIOD OF USAGE OF TWO WHEELER

Particulars

No. Of respondents

% of respondents

< 1 year

67

26.8

1-3 year

89

35.6

4-6 year

51

20.4

7-9 year

33

13.2

10 & above

10

4

Interpretation:

The table shows that 26.8% of the respondents were using the Honda two wheeler less than 1 year, 35.6% of them were using between 1-3 year, 20.4% of them were using between 4-6 year, 13.2% of them were using between 7-9 year and 4% of them were using more than 10 year.

43

CHART 2.5.11 This chart describes the period of using two wheeler by the respondents.

35.6

40 35 30

26.8

25

20.4

20

13.2

15 10

4

5 0 < 1 year

1-3 year

4-6 year

44

7-9 year

10 & above

TABLE 2.5.12: SATISFACTION LEVEL

ON MILEAGE OF HONDA TWO

WHEELERS

Respondents

Particulars

weight

Highly satisfied satisfied dissatisfied Highly

4 3 2

court 75 117 41

1

17

dissatisfied TOTAL

250

Total 292 345 86 17 750

Weighted average No of Respondents * weight/ total

Weighted average

respondents

750 / 250

3

Interpretation:

The mean value is 3 this shows that the respondents are satisfied with respect to the mileage of Honda two wheeler.

TABLE 2.5.13 SATISFACTION ON PATIENCE OF SALES EXECUTIVES IN ANSWERING

45

Particulars

Wight

Respondents

total

court Highly

5

56

280

satisfied Satisfied Moderately

4 3

58 75

232 225

satisfied Dissatisfied Highly

2 1

35 26

70 26

250

833

dissatisfied total Weighted average No of Respondents * weight/

Weighted average

total respondents

833 / 250

3.332

Interpretation:

The mean value is 3 this shows that the respondents are monetary satisfied on patience of sales executives in answering

TABLE 2.5.14 SATISFACTION ON CLARITY IN ANSWERING Particulars

Wight

Respondents

total

court Highly satisfied Satisfied

5 4

67 74 46

335 232

Moderately

3

58

225


2 1

39 12

70 26

250

833

dissatisfied total

Weighted average No of Respondents * weight/

Weighted average

total respondents

833 / 250

33.32

Interpretation:


TABLE

2.5.15

SATISFACTION

ON

SALES

EXECUTIVES

BEHAVIOUR Particulars

Weight

Respondents

total

court Highly satisfied

5

63 47

315

Satisfied Moderately

4 3

58 75

232 225


2 1

35 19

70 19

250

861

dissatisfied total


Weighted average

total respondents

861 / 250

3.332

Interpretation:


TABLE 2.5.16 SATISFACTION ON AMBIENCE OF THE SHOWROOM

Particulars

Weight

Respondents

total

court Highly satisfied Satisfied Moderately

5 4 3

104 76 40

520 304 120

satisfied Dissatisfied

2

19

70

48

Highly

1

dissatisfied total

11

11

250

1025


Weighted average

total respondents

1025 / 250

4.1

Interpretation:

The mean value is 4 this shows that the respondents are satisfied on ambiances of the showroom

TABLE 2.5.17 SERVICE CHARGES Particulars Affordable Costly

No. Of respondents 147 103

% of respondents 58 42

CHART 2.5.17 This chart describes the service charges

49

58.2 60

41.2

50 40 30 20 10 0 AFFORDABLE

COSTLY

Interpretation:

The table shows that the opinion on service charges, 58% of the respondents are feel that the service charges are affordable , 42% of the respondents are feel the service charges are costly

TABLE 2.5.18: INFLUENCE OF PRODUCT, SERVICE CENTRE & SPARE PART This table describes the influence over the availability of product, service centre & spare parts choice by the respondents. Particulars

Wight

Respondents

Total

court Highly Influenced Influence Moderately

5 4 3

135 95 25

675 380 75

influenced Less Influenced

2

10

20

50

Not at all

-

-

TOTAL

250

1150

Weighted average No of Respondents * weight/ total

Weighted average

respondents

1150/250

4.6

Interpretation:

The mean value is 4.6 this shows that the respondents are Highly Influenced nor Influenced product, service centre & spare part.

51

TABLE 2.5.19 NEXT BEST CHOICE OTHER THAN HONDA This table describes the selection of brand other than Honda by the respondents. Particulars Bajaj Yamaha Hero TVS Royal Enfield

No. Of respondents 65 53 73 32 28

% of respondents 26 21 29 13 11

CHART 2.5.16 35 30 25 20 15 10 5 0 BABAJ

YAMAHA

HERO

TVS

ROYAL ENFILD

Interpretation:

The table shows that 26% of the respondents will select the hero, 21% of the respondents will select Yamaha, 29% of the respondents will select the Bajaj, 13% of the respondents will select the TVS and 11% of the respondents will select the Royal Enfield.

TABLE 2.5.20: INFLUENCING FACTOR WHILE SELECTING DEALER 52

Particulars Goodwill After sale service Location Customer relation Other, specify

No. Of respondents 61 73 52 56 8

% of respondents 24.4 29.2 20.8 22.4 3.2

CHART 2.5.20 This chart describes the influencing factor while selecting the dealer 35 29.2

30 25

24.4 20.8

22.4

20 15 10 3.4

5 0

Interpretation:

The table shows that influencing factor while selecting a dealer for 24.4% of the respondents is goodwill, for 29.2% of the respondents it is after sale service, for 20.8% of the respondents it is location, for 22.4% of the respondents it is customer relation and other factor for 3.4% of the respondent.

53

TABLE 2.5.21: SATISFACTION LEVEL OF SERVICE PROVIDED BY AM WINGS HONDA This table describes how much the respondents are satisfied with the service provided by the AM Wings Honda. Particulars

Wight

Respondents

total

court Highly satisfied Satisfied Moderately

5 4 3

98 102 30

490 408 90


2 1

20 5

40 5

250

1033

dissatisfied total


Weighted average

total respondents

1033 / 250

4.132

Interpretation:

The mean value is 4 this shows that the respondents are satisfied with service provided by AM wings Honda

TABLE 2.5.22: WILLINGNES TO RECOMMEND HONDA TWO WHEELERS This table describes the willingness to recommend Honda to others. 54

Particulars Yes No



CHART 2.5.19 This chart describes the customers like to recommend Honda two

wheelers to others

16.8

yes no

83.2

Interpretation:

The table shows that 83.2% of the respondents are willing to recommend others and 16.8% of the respondents are not recommend.

55

3. FINDINGS, SUGGESTIONS AND CONCLUSION

3.1 FINDINGS



36% of the respondents are the age group of 20 to 30



Majority(85%) of respondents are male



32% of the respondents occupation is business.



Majority of the respondents are owed UNICORN and ACTIVA



36% of the respondents are using Honda two wheeler for a period between 1-3 years.



27% of the respondents are using Honda two wheeler for below 1 year.



Mileage is most influencing factor in purchasing diction



The mean value of rating scale is 4.6, it shows that the customers Highly Influenced product, service centre & spare part for purchasing



74 % of respondents have satisfied with Honda two wheelers



The mean value of rating scale is 4.1, it shows that the customers satisfied with service provided by AM wings Honda



83% of respondents willingness to recommend Honda two wheeler



29% respondents select hero next best choice other than Honda



32% of respondents come to know about the product from advertisement and friends .



38% of respondents are had the problem of long waiting period for delivering Honda two wheeler .



The mean value of rating scale is 3, it shows that the customers satisfied with mileage of Honda two wheeler



42% of respondents are believe Honda’s service charges are costly

56



29% of respondents looking after sale service for selecting a dealer

3.2 SUGGESTINS . 1. The company shall give more attention to the mileage as it is the most preferred feature of the bike

2. More attention can be paid to the after sales service provided to the customer as most of the customers are influenced it. 3. More care should be exercised on advertising. 4. The delivery waiting period should be reduced to increase more customer satisfaction. 5. Ensure satisfaction of all the customers 6. Implementation of effective sales promotion tools. 7. Give more attention to the feedback from the customers. 8. Clarity in answering should be improved 9. Give training to staffs for better service to customers. 10. All the problems facing while using Honda two wheelers has to be avoided. 11. Service charges should be affordable by all the customers

57

CONCLUSION

It has been undoubtedly proven that retaining customers is the only way to succeed in business.

The study on the customers satisfaction

of Honda two

wheelers among the customers within the palakkad district was conducted in the Am wings honda, a well known dealer in the palakkad and malappuram districts. The study tries to reveal the factors responsible for preferring a particular brand. The sample was collected from the customers who owned the Honda two wheeler and to know about the satisfaction level of the Honda two wheelers. The study tries to identify the extent of influence of various informational sources in customer satisfaction .|In this study most of the respondents are having a good opinion about the Honda two wheelers and the findings and suggestions of this study will support the company in an effective and better way.

58

CUSTOMER’S SATISFACTION OF HONDA TWO WHEELERS

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