Service Quality

“A Stu Study dy on Ser Servic vicee Qual Qualit ity y wit with h Spe Specia ciall

Refere Reference nce to Apco Apco

Hyundai Kasaragod”

Submitted to University of Calicut In partial fulfilment of the requirement for the award of the Degree of 

MASTER OF BUSINESS ADMINISTRATION 2009 – 2011

Submitted by

Manjesh Kumar K  Reg No. – FIAJMBA024 Batch 2009-2011 Email: [email protected] Under the Guidance of  Prof. Prajith P K  Faculty , FIMS

FAROOK INSTITUTE OF MANAGEMENT STUDIES FAROOK COLLEGE (PO) ,CALICUT 673 632 Acknowledgement Page | 1

I express my deepest gratitude to Mr. Satheesh Sathyan , (Sales Manager of Apco Hyundai Kasaragod) for giving me an opportunity to do this project in APCO Vehicles (India) Pvt .Ltd . The experience over there was valuable and has increased my confidence.

Over all the exposure over there was a remarkable one. I express my individual gratitude to Mr.Rakesh EP, (Service Manager) who helped me in each and every stage of my work. I

thank all the staff members of APCO Vehicles (India) Pvt .Ltd., Kasaragod, with out whose help and support this would have ever been possible. Dr.Sainul Abideen Abideen, Directo I expr expres esss my grat gratit itud udee to Dr.Sainul Director, r, Farook Farook Institu Institute te of 

Management studies who had encouraged me to undertake this project. I own my greatest debt of gratitude to my guide Prof. Prajith PK  who provided me all the guidance to make this project a successful one. I would like to take this opportunity to bestow my due appreciation to my parents and friends for their moral and financial support for completing this project report. I would also like to thank all my friends for their engagement and helpful hand in successful completion of my work.

MANJESH KUMAR K 

Declaration

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I, Manjesh Kumar K student of MBA III rd Semester, studying at Farook Institute of  Management Studies, Farook College ,Kozhikode, hereby declare that the project report on “A study on service quality with special reference reference to Apco Hyundai Kasaragod”

submitted to University of Calicut in partial fulfillment of Degree of Master’s of Business Administration is the original work conducted by me. The information and data given in the report is authentic to the best of my knowledge. This project report is not being submitted to any other University for award of any other  Degree, Diploma and Fellowship.

Place: Date:

MANJEH KUMAR K 

Sl. No

Table of Contents

Page No

Chapter 1

Introduction

1

1.1

Introduction

2

Page | 3

1.2

Company profile

3

1.3

SWOT analysis

4

1.4

About HMIL

7

1.5

Dealers profile

9

1.6

Statement of problem

11

1.7

Objective of study

11

1.8

Data source

12

1.9

Research instrument used

12

1.10

Tools used for analysis

13

1.11

Period of study

13

1.12

Limitation of study

13

Chapter 2

Theoretical review

14

2.1

Introduction

15

2.2

Service Quality

16

2.3

Five dimensions of service quality

18

2.4

Characteristics of Service Quality

19

2.5

Conceptual model

20

2.6

Quality and satisfaction

21

2.7

Service Quality through customer services

22

2.8

Setting Quality Standard

24

2.9

Quality Management in Automobile Sector

24

2.10

Factors

Influencing

Service

Quality

in

25

Automobile Sector  2.11

Measurement of Service

27

2.12

Researching Service Quality

28

Chapter 3

Data analysis and Discussion

32

Chapter 4

Findings, Recommendati ations, Conclusions

48

4.1

Findings

49

4.2

Recommendations

51

Page | 4

4.3

Conclusions

52

4.4

Appendices

53

4.5

Bibliography

56

Sl. No

List of Tables

Pg. No

Page | 5

3.1

Age of the Respondents

33

3.2

Media used for booking vehicle service

34

3.3

No. of days taken for vehicle delivery after service

35

3.4

Complaints are constructively handled

36

3.5

Technical knowledge of the staff

37

3.6

Staffs are willing to listen customers individual point of view

38

3.7

Workmanship of the service machine

39

3.8

Responds towards customers query

40

3.9

Service charges are reasonable

41

3.10

Rank of the service quality dimensions in Apco Hyundai

42

3.11

Dependency of Apco for future service

43

3.12

Measure of satisfaction of Hyundai customers

44

3.13

Mann-Whitney test : Service quality rate and vehicle delivery time

45

3.14

Mann-Whitney test statistics

45

3.15

Mann-Whitney test : Service qu quality and staffs provided services

46

3.16

Mann-Whitney test statistics

46

3.17

Kruskal-Wallis test : Service quality in complained handled

47

3.18

Kruskal-W -Waallis test est statistics

47

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Sl. No

List of Figures

Pg. No

1.1

HMIL Sales growth

8

2.2

Conceptual model of service quality

21

3.1

Age of the Respondents

33

3.2

Media used for booking vehicle service

34

3.3

No. of days taken for vehicle delivery after service

35

3.4

Complaints are constructively handled

36

3.5

Technical knowledge of the staff

37

3.6

Staffs are willing to listen customers individual point of view

38

3.7

Workmanship of the service machine

39

3.8

Responds towards customers query

40

3.9

Service charges are reasonable

41

3.10

Rank of the service quality dimensions in Apco Hyundai

42

3.11

Dependency of Apco for future service

43

3.12

Measure of satisfaction of Hyundai customers

44

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CHAPTER 1 Introduction

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1.1 Introduction Services Services are commodities commodities that cannot be stored or disappear in use, or as activities that require require personal personal contact. The distinct characteristics characteristics of services services are intangibili intangibility; ty; perish perish ability, ability, heterogeneit heterogeneity y of the product, product, and simultaneous simultaneously ly of production production and consumptio consumption. n. Two economi economicc units units are required required for a servic servicee to be produced produced – the consume consumerr and the  producer.  producer. While the consumer consumer cannot retain the actual service after it is produced, produced, the effect of the service SERVICES Services as commodities that cannot be stored or disappear in use, or as activi activities ties that that requir requiree person personal al contact contact.. The distin distinct ct charact characteris eristic ticss of servic services es are intangibility, perishability, heterogeneity of the product, and simultaneity of production and consumption. Two economic units are required for a service to be produced – the consumer  and the producerWhile the consumer cannot retain the actual service after it is produced, the effect of the service can be retained. Managing a service operation requires the manager to understand the service concept, service delivery system, and service levels. As the consumer  has a key role in the definition and evaluation of all three elements, it is imperative that servic servicee manage managers rs have have a clear clear unders understan tandin ding g of consum consumer er expect expectatio ations ns and percep perceptio tions. ns. Services Services may be provided by private or public agencies. These characteristics characteristics enhance the importance of certain marketing strategies that are unique to services marketing, such as service service customizatio customization, n, managing managing evidence, evidence, making making the service service tangible, tangible, and synchronizi synchronizing ng supply and demand patterns.

Quality is an extremely difficult concept to define in a few words. At its most basic, quality has been defined as conforming to requirements .This implies that organizations must establish establish requirements requirements and specifications; specifications; once established established,, the quality goal of the various various function of an organization is to comply strictly with these specifications. Many analyses of  servic servicee quality quality have have attemp attempted ted to distin distingui guish sh betwee between n objecti objective ve measur measures es of qualit quality y and measures which are based on the more subjective perceptions of customers.

A development of this idea by Gronroos identified ‘technical’ and ‘functional’ quality as being the two principle principle components components of quality. quality. Technical quality refers to the relatively quantifiable aspects of a service which consumers receive in their interactions with a service firm. Because it can easily be measured by both customer and supplier, it forms an important  basis for judging service quality. Examples of technical quality include the waiting time in an automobile automobile service work shop and the reliability of their services. services. This, however, however, is not the

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only only element element that that makes makes up perceiv perceived ed servic servicee qualit quality. y. Becaus Becausee service servicess involv involvee direct direct consumer-producer interaction, consumers are also influenced by how the technical quality is delivered to them. This is what Gronroos describes as functional quality and cannot be measured as objectively as the elements of technical quality. In the case of the queue in a automo automobil bilee servic servicee work work shop, shop, functi functiona onall qualit quality y is influe influence nced d by such such factors factors as the environment in which queuing takes place and consumers perceptions of the manner in which queues are handled by the staff. Servic Servicee qualit quality y is a highly highly abstract abstract constr construct uct,, in contra contrast st to goods goods where where techni technical cal aspects of quality predominate. Many conceptualizations of service quality therefore begin by addressing addressing the abstract abstract expectation expectationss that consumers hold in respect respect of quality. quality. Consumers Consumers subsequently judge service quality as the extent to which perceived service delivery matches up to these initial expectations. In this way, a service which is perceived as being of mediocre standard may be considered of high quality when compared against low expectations, but of  low low qual qualit ity y when when asse assess ssed ed agai agains nstt high high expe expect ctati ation ons. s. Anal Analys ysis is of serv service ice quali quality ty is compli complicate cated d by the fact fact that that produc productio tion n and consum consumpti ption on of a servic servicee genera generally lly occur  occur  simultaneo simultaneously, usly, with the process process of service service production production often being just as important important as the service outcome. A further problem in understanding and managing service quality researcher study the level of service quality in Apco Hyundai Kasaragod. Here researcher use questionnaire for  measuring level of service quality for the improvement of company. Once the customer  expectation are understand that helps for continuous development of service quality.

1.2 Company Profile

The beginning of Hyundai Motor Company dates to April 1946 when founder, JuYung Yung Chung Chung establ establish ished ed Hyunda Hyundaii Auto Auto Servic Servicee in Seoul, Seoul, South South Korea Korea at the age of 31 years. years.

The name name Hyunda Hyundaii was chosen chosen for its meaning meaning which which in English English translat translates es to

“modern.” The Hyundai logo is symbolic of the company's company's desire to expand. The The oval shape represents the company's global expansion and the stylized "H" is symbolic of two people (the company and customer) shaking hands.

Hyundai Motor Company was founded by Ju-Yung Chung and younger brother SeYung Chung Chung in December December 1967. In 1968 the company company entered entered into a contract with Ford Ford motor company to assemble the Ford Cortina and Granada for the South Korean market and continued to produce them until 1976. Hyundai completed construction of the Ulsan plant in six months and achieved the shortest groundbreaking to first commercial production of any of 

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Ford’s Ford’s 118 plants. plants. The eight year journey journey provided Hyundai Hyundai with assembly assembly knowledge, knowledge,  blueprints, technical specifications, production manuals, and trained Hyundai engineers. Hyundai Motor Company achieved much in 2010 despite the challenging business climate climate.. Numero Numerous us sectio sections ns of the world world media media have have praise praised d Hyunda Hyundai's i's high high qualit quality. y. Improvements in customer satisfaction and a continuous sales growth demonstrate Hyundai Motor's ability to increase its market share. Hyundai's success, watched closely worldwide, is a result of continuous and aggressive innovations that have been implemented on behalf of  custom customers ers.. Custom Customer er satisf satisfact action ion is our numbe numberr one value. value. Hyunda Hyundaii Motor Motor Compan Company y cons consid iders ers its its most most impo import rtan antt miss missio ion n to be brin bringi ging ng the the enjo enjoym ymen entt of eleg elegan ance ce and and confidence to its customers, rather than just selling products. Hyundai strives to bring its cust custom omers ers luxu luxury ry and and styl style. e. Ther Therefo efore, re, Hyun Hyunda daii will will cont contin inue ue to stab stabil ilize ize its its glob global al management by establishing an effective cooperation system among production bases around the world. world. Hyunda Hyundaii Motor Motor Compan Company's y's manage managemen mentt goal goal in 2010 2010 is custom customer– er–ori orient ented ed management and continuous execution of global management.

1.3 SWOT analysis of Hyundai motor company  Now a day’s Automobile industry presents a galaxy of varieties and models meeting all  possible expectations and globally established industry standards. SWOT analysis will bring the efficiency and effectiveness of Hyundai Motor Company. (a) Strengths

Following are the strengths of Hyundai motor company. The quality advantage:

Hyundai owners experience fewer problems with their vehicles than any other car  manufa manufactu cturer rer in India India (J.D. (J.D. Power Power IQS Study). Study). TheSan TheSantro tro was chosen chosen the best best in the  premium  premium compact car segment and the Getz in the entry level mid - size car segment segment across several parameters. Buying experience like no other:

Hyundai has a sales network of 250 state-of-the-art showrooms across 189 cities, with a workforce workforce of over 6000 trained sales personnel personnel to guide their customers customers in finding the right car. car. Thei Theirr high high sales sales and and cust custom omer er care care stan standa dard rdss led the the comp compan any y to achi achiev evee high higher  er  nameplate in the J.D. Power CSI Study. Quality Service across 1036 Cities:

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In the J.D. Power CSI Study Hyundai scored the highest across all 7 parameters: least   pro probl blem emss expe experie rienc nced ed with with vehi vehicle cle serv servic iced ed,, high highes estt serv servic icee qual qualit ity, y, best best in-se in-serv rvic icee experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience. The 92% of Hyundai owners feel that work gets done right the first time during service. The J.D. Power CSI study also reveals that 97% of  Hyundai owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle. (b) Weaknesses

Following are the weaknesses of Hyundai motor company . Commodity price risks

Hyundai commodity price risks to higher costs due to changes in prices of inputs such as steel, aluminium, plastics and rubber, which go into the production of automobiles. In order to mitigate these risks, the company continues its attempts to enter into long term contracts based on its projections of prices. In a volatile commodity market, where your  company gives top priority to ensuring smooth availability of inputs, long term contracts are helpful. They also help minimize the impact of growing input prices. Conversely, long term contracts dilute the benefits, if any, of a decline in input prices. Exchange rate risk 

The company is exposed to the risks associated with fluctuations in foreign exchange rates mainly of import of components & raw materials and export of vehicles. The company has a well structured exchange risk management policy. The company manages the exchange risk by using using appropriate appropriate hedge instrument instrumentss depending depending on the prevailing prevailing market conditions conditions and the view on the currency. (c) Opportunities

Following are the opportunities of Hyundai motor company.

Leading growth:

As the market leader, company led the growth in the passenger car sector last year. Hyundai sales went up 30% to 4,72,000 units. This is the highest annual sale since company  began operations 20 years ago. Hyundai also gained market share, mainly on account of its  performance in the competitive A2 segment where it increased its share from 40.3% in 200506 to 47.7% in 2006-07. The record sales performance was reflected in the financials. Net

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Sales Sales (exclu (excludin ding g excise excise)) grew grew by 31% to Rs 93,456 93,456 million. million. Operat Operating ing Profit Profit Margin Margin increased from 0.8 % in 2005-06 to 4.7 % in 2006-07. Profit after Tax jumped 270% to Rs 5421 million. (d) Threats

Following are the threats of Hyundai motor company. Risk factors

In the course of its business, Hyundai is exposed to a variety of market and other risks includ including ing the effects effects of demand demand dynami dynamics, cs, commod commodity ity prices prices,, curren currency cy exchan exchange ge rates, rates, interest rates, as well as risk associated with financial issues, hazard events and specific assets risk. Whenever possible, we use the instrument of insurance to mitigate the risk. Business risks

The automotive industry is very capital intensive. Such investments require a certain scale of operation to generate viable returns. These scales depend on demand. Although 2009 2009-1 -10w 0was as year year of cont contin inue ued d grow growth th for for the the Indi Indian an econo economy my,, whet whethe herr this this grow growth th momentum will continue has to be seen. (e) Conclusion

Automobiles have become an indispensable part of our lives, an extension of the human body that provides us faster, cheaper and more convenient mobility every passing day. Behind this betterment go the efforts of those in the industry, in the form of improvement through through technological technological research. research. What actually actually lie behind this betterment betterment of the automobiles automobiles are the opinions, requirements, likes and dislikes of those who use these vehicles. These wheeled machines affect our lives in ways more than one. Numerous surveys and research are conducted throughou throughoutt the world every now and then to reveal one or the other aspect of  automobiles, be it about the pollution caused due to vehicle population in cities, or rising motor accidents and causes, vehicular technology and so on.

1.4 About HMIL Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India. HMIL presently markets 6 models of passenger cars across across segmen segments. ts. The A2 segmen segmentt includ includes es the Santro, Santro, i10 and the i20, the A3 segmen segmentt includes the Accent and the Verna, the A5 segment includes the Sonata Transform.

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HMIL’s fully integrated integrated state-of-the state-of-the-art -art manufacturi manufacturing ng plant near Chennai Chennai boasts boasts of  the most advanced production, quality and testing capabilities in the country. To cater to rising rising demand, demand, HMIL commissio commissioned ned its second second plant in February February 2008, which produces produces an additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units per annum. In continuatio continuation n with its commitment commitment to providing providing Indian customers customers with cutting-edge global technology, HMIL has set up a modern multi-million dollar research and development facility in the cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineering and ensure e nsure quick turnaround time to changing consumer c onsumer needs.

As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to achieve the export of 10 lakh cars in just over a decade. To support its growth and expansion plans, HMIL currently has a 290 strong dealer network and 540 strong service  points across India, which will see further expansion in 2011.

Figure No:1.1 HMIL sales growth

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Source: Internet (a) Current growth rate of HMIL

Hyundai Hyun dai Motor India, country’s second largest auto manu manufacturer facturer recorded a 14.2% growth in the month of September, 2010.HMIL’s total sales for September, 2010stood at 51,441 units as against 53,802 units in September, 2009 registering a decline of 4.4%. The domestic sales accounted for  31,751 units as against 27,803 units in September, 2009 while

the exports dipped by 24.3% from 25,999 units in September, 2009 to 19,690 units in September, 2010.

1.5 Dealer Profile Page | 15

Apco Hyundai, a part of the noted corporate conglomerate Apco Group, was started

at Calicut in January 2008. Within a short span they were able expand their operations and established their unique presence in the entire North Kerala .They have recently started their  operations operations at Kasaragod. Kasaragod. Their focus is to provide their customers customers with unique Sales and Serv Servic icee expe experi rien ence ce and and their their miss missio ion n to be with with them them alwa always ys and and ensu ensure re a lifelife-lo long ng association with our organization. APCO Hyundai is the exclusive dealership of globally renowned Hyundai Passenger  Cars with fully integrated 3-S (Sales, Service and Spares) facilities at Calicut and Kasaragod offering peerless customer service in the region. The fully air conditioned showrooms are endowed with a world class display of a wide range of Hyundai passenger cars. At both the 3-S facilities we have a well trained and efficient work force and the much needed sophisticated infrastructure to cater the demands of the customers round the clock.

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The Project

1.6 Statement of the problem

In today’s intensely competitive, rapidly changing and highly complex environment characterize characterize by the the service service quality quality level of custom customer er service service has decreased decreased in recent recent years, years, and that this can be attributed to a lack of support or understanding at the executive and middle middle management management levels of a corporation corporation and/or a customer customer service policy. The reason to choose this as a study is that there is a tendency in the people at kasaragod by giving complaint complaint for very small reason. There by Apco Hyundai Hyundai entrusted entrusted with me the task of  finding service quality level.

1.7 Objective of the study (a) Primary objective: •

To study the level service quality at Apco Hyundai Kasaragod.

(b)Secondary (b)Secondary objectives: •

To measures how the service components, matches customer expectations.

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•

To check the effect of delivery time on service quality.

•

To study the association of employee performance and service quality. To study the effect of complaint handling on service quality

•

1.8 Research Methodology

To define any research problem and give a suitable solution for the problem a sound research research is inevitable. inevitable. Research methodology methodology underlines underlines the various steps involved involved in the  particular research and systematically solving the problem with the objective of determining the fact.

(a) Research approach

The researc researcher her adopte adopted d conclu conclusiv sivee and descrip descriptiv tivee to study study service service qualit quality y with with special reference to Apco Hyundai. As the term suggests, suggests, conclusive conclusive research research is meant to provide information information that is useful in reaching conclusions or decision making. The purpose of the conclusive research is to prov provid idee a relia reliabl blee or repr repres esen enta tati tive ve pict pictur uree of the the popu popula lati tion on with with vali valid d rese researc arch h instrument. Descri Descripti ptive ve researc research h descri describes bes data data and charact characteri eristic sticss of the popula populatio tion n being being studied. Descriptive research answers who, what, where, when, and how. The descriptive design deals with facts and characteristics concerning with individual respondents.

(b) Data Source:

Primary data:

The The prim primar ary y data data was was coll collect ected ed with with the the help help of a stru structu ctured red,, non non disg disgui uise sed d questi questionn onnaire aire.. The data data collec collectio tion n was done done by making making the existi existing ng custom customers ers of Apco Apco Hyundai, kasaragod fill the questionnaires .The researcher also used unstructured personal interview to gather information required for the purpose of the study.

Secondary data :

The research relied upon many secondary sources for getting a clear picture of the enviro environme nment. nt. Second Secondary ary sources sources were were previo previous us study study report reports, s, journa journals, ls, magazi magazines, nes, newspapers, books with a view to supplement the primary data. The wide scope of the World Wide Wide Web was used to collect collect the detaile detailed d inform informati ation on about about the topic. topic.

The The study study of 

secondary sources made the structuring of questionnaire easy.

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1.9 Research Instrument used In order to get relevant information information from the customers, customers, questionna questionnaire ire was used as research instrument .The questionnaire are design to get the specific information about the speci specifi ficc prob proble lem m so that that the the data data after after anal analys ysis is and and inte interp rpret retati ation on resu result ltss in a bett better  er  application of the problem .Hence the questionnaire for this study is prepared in the form of  structured structured both closed closed ended and open ended ended consisting consisting the series of formal questions questions to elicit clear relevant responses from the respondents.

(a) Sampli Sampling ng plan plan

Sampling Sampling plan includes includes sampling units used in the survey. It also includes includes sampling sampling size and sampling procedure for the survey.

(b) Sample size

The sample size undertaken in this research study is 50. (c) Sample units

Every single individual undertaken in the research study is called the sampling unit. In this research study sampling unit is every single individual who gets his vehicle serviced at Apco Hyundai. (d) Sampling procedures

The primary consideration in purposive sampling is judgement of researcher as to who can provide the best information to achieve the objectives of the study. The researcher  only goes to those people who in his/her opinion are likely to have the required information and and be will willin ing g to shar sharee it. it. Here Here the the rese resear arch cher er coll collec ecti ting ng the the info inform rmat atio ion n thro throug ugh h questionnaire. (e) Contact Method

Direct contact method was used for the study was used this study. Questionnaires were directly circulated to the respondents of the sample in order to achieve instant response.

1.10 Tools used for analysis The following are the tools were used for the project. •

•

 Non parametric tests-Man- Whitney test, Kruskal- Wallis test. Statistical tools like Mean rank.

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The significance of the results was tested using non-parametric tests- Man-Whitney test, Kruskal- Wallis test, with the help of the statistical software SPSS.

1.11Period of the study The period of the study was for 21 days, between October 1st and October 30, 2010, to complete this project. 1.12 Limitation of the study •

The information provide by the respondents may be biased.

•

The study was restricted to single city so findings cannot be generalised.

•

Time was major limitation of the study 30 days was a very limited period to conduct a research with wide scope.

•

Some confidential and unrevealed secondary data.

CHAPTER 2

Theoretical Review

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2.1Introduction (a) Review of literature

Review of literature is the most useful and simple method of formulating the research  problem. The researches done by previous researchers are reviewed and their usefulness is evaluated to serve as basis for further research. Thus researcher reviews and builds upon the work of others. The reviews that are collected by the researcher should give an insight into the field under study. study. The reviews reviews must must explai explain n the need and scope scope of the study study under  consideration. Customer Customer satisfaction satisfaction is always influenced influenced by the quality of interactions interactions between cust custom omers ers and and the the pers person onne nell invo involv lved ed in the the cont contac actt serv servic ices es .In .In the the last last deca decade de,, the the movement towards quality had started to spread from the manufacturing sector to the service sect sector or.. The The shift shift of focu focuss to quali quality ty is basi basicc for for the the serv servic icee busi busine ness ss to surv surviv ivee the the competition, get acceptance from society, and be able to achieve its missions. In principle, principle, the two main things closely related to services services are expected expected quality and experienced experienced or perceived perceived quality. The first is the customers' customers' expectation expectationss of service quality quality and the latter is the customers' perceptions of service quality. The customers will always assess the services they experienced by comparing them with whatever they expected or  wished to receive. Parasuraman, Zeithaml and Berry (1985) emphatically pointed out that the concept of 

quality prevalent in the goods sector is not extendable to the services sector. Being inherently and essent essential ially ly intang intangibl ible, e, hetero heterogen geneou eous, s, perish perishabl able, e, and entail entailing ing simult simultanei aneity ty and

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inseparabili inseparability ty of production production and consumpti consumption, on, services require require a distinct distinct framework framework for  quality explication and measurement. Zeithaml et al. (1993) explored the gap between expectations and perceptions to better 

understand understand expectations expectations as they pertain to customer customer assessment assessment of service service quality quality and to extend extend the theoretical work that exists exists in the customer customer satisfaction literature. literature. Based Based on their  study, the gap between customer expectations and perceptions as propose d by Parasuraman et al. (1985) can be conceptualized conceptualized to reflect two comparison comparison standards: standards: desired service which reflect reflectss what what custom customers ers want, want, and adequa adequate te servic servicee which which indicat indicates es the standa standard rd that that customers are willing to accept.

Jain and Gupta (2004) have done a comparative analysis of two major service qualities

Measurement scales: SERVQUAL and SERVPERF. An ideal service quality scale is one that is not only only psycho psychomet metrica rically lly sound sound but is also also diagno diagnostic sticall ally y robust robust enough enough to provid providee insights to the managers for corrective actions in the event of quality shortfalls. This study assesses the diagnostic power of the two service quality scales. Using data collected through a survey of consumers of fast food restaurants in Delhi, the study finds the SERVPERF scale to be providing a more convergent and discriminate valid explanation of service quality construct.

Rajagopal (2008) has analyzed the impact of market orientation strategies and performance

of customer services on customer acquisition, retention and sales of automobiles which reveal revealss overall overall perfor performan mance ce of automo automobil bilee dealer dealerss in Mexico Mexico.. The study study compre comprehen hends ds understanding on customer-dealer relationship in the automobile market segment referring to key factors which establishes service quality encompassing tangibility, responsiveness, trust, accuracy and empathy. It was found that the customers perceive better quality of relationship in a given frame of functions that are performed effectively by the dealer lowering the extent of conflicts thereof. High conformance quality services of dealers and value added customer  relatio relationsh nship ip to offer offer high high custom customer er satisf satisfact action ion develo develop p life life time time custom customer er value value and strengthen the customer-dealer relationship.

2.2 Service Quality Quality Quality is a strategic strategic tool for attaining attaining operational operational efficiency efficiency and improved improved business   perfo performa rmance nce.. Import Importanc ancee of qualit quality y to service service firms firms and have have demons demonstrat trated ed its positiv positivee relat relatio ions nshi hip p with with prof profit its, s, incr increa ease sed d mark market et share share,, retur returns ns on inve invest stme ment nt,, cust custom omer  er 

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satisfaction, and future purchase intentions. Service quality has been described as a form of  attitude, related but not equivalent to satisfaction, which results from the comparison of  expectations expectations with performance. performance. Service quality quality involves involves a comparison comparison of expectation expectationss with   performance: it is a measure of how well the service level delivered matches customer  expectations expectations on a consistent consistent basis. Service quality has been conceptualized conceptualized as a function function of  consumer expectations towards the service situation and process, and of the output quality they they perc percei eive ved d them themse selv lves es to have have rece receiv ived ed.. The The ulti ultima mate te goal goal of serv servic icee qual qualit ity y measurement is to assist managers in ensuring service quality and customer satisfaction. Measurement Measurement is a necessary necessary step towards towards devising any action plan. However, because because of its elusiveness and indistinctness, explication and measurement of quality also present problems for researchers, who often bypass definitions and use one-dimensional self-report measures to capture the concept. The emergence of service quality and its assessment has attracted the attention of  numerous researchers in the past two decades or so. In this sense, there are two main lines of  thoughts on measuring service quality an American and European perspective. The focus on functional quality attributes is referred to as the American perspective of service quality while the European perspective suggests that service quality considers two more components. The Europe European an perspe perspecti ctive ve consid considers ers the qualit quality y of a service service as percei perceived ved by custom customers ers consis consists ts of three three dimens dimension ions: s: functi functiona onall (the (the proces processs of service service delive delivery ry to custom customers ers), ), technical (the outcomes generated by the service to the customers), and image (how the customers view the company). Considering those dimensions, the quality of the service is dependent upon two variables: the expected service and the perceived service.

Functional quality of a service is often assessed by measures of customers’ attitudes, as incustomer satisfaction questionnaires. The process of identifying customers’ attitudes  begins with determining customers’ requirements or quality dimensions. There are two ways of identifyin identifying g important important quality quality dimensions dimensions of services: services: quality quality dimension dimension development development approach and critical incident approach. The first one uses different different sources of information, information, such as opinions of providers and literature. The other one is a process to obtain information from customers.

2.3 Five Dimensions of Service Quality Service quality is a perception of the customer. Customers, however, form opinions about service quality not just from a single reference but from a host of contributing factors.

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Service marketers need to understand all the dimensions used by customers to evaluate service quality. Service quality dimensions are following. (a) Reliability

This dimension is shown to have the highest influence on the customer perception of  quality. It is the ability to perform the promised service dependably and accurately. When service delivery fails the first time, a service provider may get a second chance to provide the same service in the phase called ‘Recovery’. The expectations of the customer are usually higher during the recovery phase than before because of the initial failure. Thus, the service   provi provider der is likely likely to come come under under greate greaterr scruti scrutiny, ny, thereb thereby y increas increasing ing the possib possibili ility ty of  customer dissatisfaction. The reliability dimension, which ensures timely delivery time after  time, helps the service provider to meet the customer expectations fully at the lowest level of  service expectation

(b) Responsiveness Responsiveness

It is the willingness of the service firm’s staff to help customers and to provide them with prompt service. The customers may have queries, special requests, complaints, etc. In fact, each customer may have problems of his or her own. While the front-end employee may have been trained or equipped to deliver standardized services, the customers want them to go beyond this limit. It is the willingness to help the customer or willingness to go that extra distance that is responsiveness. The second aspect of responsiveness is speedy response to a customer request. When response is delayed customers usually loses interest.

(c)Assurance

It defined as the ability ability of the company to inspire trust and confidence confidence in the service delivery. It refers to knowledge and courtesy of the service firm’s employees and their ability to inspire trust and confidence in the customer toward the company. This dimension is considered vital for services that involve high risk as customers may not be able to evaluate all the uncertainties involved in the process by them.

(d) Empathy

It refer referss to the the carin caring, g, indi indivi vidu dual aliz ized ed atte attent ntio ion n the the serv servic icee firm firm prov provid ides es each each customer. When service provider puts himself in the shoes of the customers, he may see the customer’s viewpoint better. When customers feel t5hat the provider is making his best effort to see their viewpoint, it may be good enough for most.

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(e) Tangibles

It refers to physical facilities, equipment, and appearance of a service firm’s employees. The  job of the tangible and physical evidence of a service is multifunctional. Tangibles provide the customer proof of the quality of service.

2.4 Characteristics of Service Quality Marketing experts acknowledge that marketing a service is more difficult than marketing a tangible product. They identify the following as being characteristic of services: •

Intangibility the service cannot be touched or viewed, so it is difficult for clients to

tell in advance what they will be getting; •

Inseparability of production and consumption the service is being produced at the

same same time time that that the client client is receiving receiving it (eg: during during a car model model search search or a legal legal consultation). •

Perish ability unused capacity cannot be stored for future use. For example, spare

seats on one aeroplane cannot be transferred to the next flight, and query-free times at the reference desk cannot be saved up until there is a busy period. •

Heterogeneity (or  variability): services involve people, and people are all different.

There There is a strong strong possibi possibilit lity y that that the same same enquir enquiry y would would be answer answered ed slight slightly ly differently by different people (or even by the same person at different times). It is important to minimise the differences in performance (through training, standardsetting and quality assurance).

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2.5 Conceptual Model of Service Quality Conceptual model of service quality reveals expected and perceived service quality gap between customer and management. Figure 2.1

Consumer 

Word-of-Mouth Communication

Personal Needs

Past Experience

Expected Service

Gap 5

Perceived Service

Service Delivery (Including pre and post

Marketer

Gap 3

Gap 4

External Communication to Consumers

 Translation of  Perceptions into Service Quality Management Perception of  Consumer Expectations

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Gap 1 Gap 2 Using these 5 dimensions as the evaluation criteria the specification of service quality  becomes the gap between customers’ expectations and their perceptions The five key gaps or  discrepancies on the service provider's side that are likely to affect consumers' perceptions of  service quality are:Consumer er expect expectatio ation-ma n-manag nageme ement nt percep perceptio tion n gap which which is the gap betwee between n Gap Gap 1: Consum consumer expectations of service quality and management perceptions of these expectations: Gap 2: Management perception-service quality perception gap, that is, the gap between

mana manage geme ment nt perce percept ptio ions ns of cons consum umer er expe expect ctati ation onss and and the the firm firm's 's serv service ice qual qualit ity y specifications Gap 3:Service quality specifications-service delivery gap, the gap between service quality

specifications and actual service quality. Gap 4: Service delivery-external communications gap, or the gap between actual service

delivery and external communications about the service Gap 5: Expected Expected service-perceived service-perceived service gap, which is the gap between expected expected service service

and perceived service.

2.6 Quality and satisfaction

A review of the literature will reveal that the terms ‘quality’ and ‘satisfaction’ are quite often used interchangeably. While both concepts are related and appear to be merging, there are still gaps in the understanding of the two constructs, their relationship to each other  and their antecedents and consequences. A distinction has often been made between the two constructs. According to Cronin and Taylor ‘this distinction is important to both managers and researches alike, because service providers need to know whether their objective should be to have consumers who are satisfied with their performance or to deliver the maximum level of   perceived service quality. satisfaction as a ‘summary psychological state experienced by the consum consumer er when when confirm confirmed ed or discon disconfir firmed med expect expectatio ations ns exist exist with with respec respectt to a specif specific ic service service transaction transaction or experience’. experience’. Rust and Oliver suggested suggested that customer customer satisfactio satisfaction n or 

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dissatisfaction - a ‘cognitive or affective reaction’ –emerges as a response to a single or   prolonged set of service encounters. Satisfaction is a ‘post consumption’ experience which compares perceived quality with with expect expected ed quality quality,, where where as servic servicee qualit quality y refers refers to a global global evaluatio evaluation n of a firm’s firm’s service service delivery delivery system. Perceived Perceived quality, on the other hand, may be viewed as a global global attitudinal judgment associated with the superiority of the service experience over time. Not surprisingly there has been considerable debate concerning the nature of the relationship  between the constructs of satisfaction and quality. While the majority of research re search suggests hat service quality is a vital antecedent to customer satisfaction there is now strong evidence to suggest that satisfaction must be a vital antecedent of service quality. Regardless of which view view is taken, taken, the relatio relationsh nship ip betwee between n satisf satisfact action ion and servic servicee qualit quality y is strong strong when when examin examined ed from from either either direct direction ion.. Satisf Satisfacti action on affects affects assess assessmen ments ts of service service qualit quality y and assessment of service quality affects satisfaction. In turn both are vital in helping buyers develop their future purchase intentions.

So, conclusion is that the key difference between the two constructs is that quality relat relates es to mana manage geri rial al deli delive very ry of the the serv service ice,, whil whilee sati satisf sfact actio ion n refl reflect ectss cust custom omers ers’’ experiences with that service. They argued that quality improvements that are not based on customer needs will not lead to improved customer satisfaction.

2.7 Service Quality through Customer Service Customer service is a series of activities designed to enhance the level of customer  satisfaction – that is, the feeling that a product or service has met the customer expectation. Its importance varies by product, industry and customer; defective or broken merchandise can  be exchanged, exchanged, often only with a receipt and within a specified specified time frame. Retail stores will often have a desk or counter devoted to dealing with returns, exchanges and complaints, or  will perform related functions at the point of sale. Cust Custom omer er serv service ice is norm normal ally ly an inte integr gral al part part of a comp compan any’ y’ss cust custom omer er valu valuee  proposition. In ideological way corporate world says that “customers have memories they will remember remember you, whether you remember remember them or not.” Further, Further, customer customer trust can be destroyed at once by a major service problem, or it can be undermined one day at a time, with a thousand small demonstrations of incompetence. From From the point point of view view of an overal overalll sales sales proces processs engine engineerin ering g effort effort,, custom customer  er  service plays an important role in an organization's ability to generate income and revenue.

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From that perspective, customer service should be included as part of an overall approach to systematic improvement. Some have argued that the quality and level of customer service has decreased in recent years, and that this can be attributed to a lack of support or understanding at the executive and middle management levels of a corporation and/or a customer service  policy. To address this argument, many organizations have employed a variety of methods to improve their service quality. In the the cust custom omer er serv servic icee phas phasee of the the rela relati tion onsh ship ip life life cycl cyclee Serv Servic icee qual qualit ity y Management supports the following key functional areas:

(a) Interaction Center

Provides inbound and outbound call processing, e-mail management, and activity management to track, monitor, and enhance all customer contact; supports multiple channels for customer communication, including telephony and Web.

(b) Internet Customer Self-Service

It offers offers custom customers ers and prospe prospects cts access access to inform informatio ation n and custom customer er service service functions functions via Internet; Internet; supports supports effective customer customer self service; includes case-logic system featuring advanced decision support for problem determination and resolution.

(c) Service Management

They Meets varied demands of service service management management business; business; handles handles customer  customer  instal installati lations ons;; facilit facilitates ates simple simple and comple complex x servic services; es; suppor supports ts servic services es carried carried out at customer customer site or in-house repair centre (depot); supports supports involvemen involvementt of external service service  providers; integrates contract management; checks customer warranties when services are  performed;  performed; calculates calculates services services charges; charges; integrates integrates information information from materials materials management, management, cost accounting accounting,, billing, billing, and accounts accounts receivable; receivable; monitors monitors day-to-day day-to-day operations; operations; helps decision makers with strategic management issues.

(d) Claims Management Management:

It facilitates handling of entire claims process. (e) Field service or mobile service:

It enables rapid allocation of service tools for to meet incoming service requisition and also timely services to customers.

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2.8 Setting Quality Standard A prec precis isee spec specif ific icat atio ion n of serv servic icee stan standa dard rdss serv serves es a valu valuab able le func functi tion on in communicatin communicating g standard standard of quality quality which consumers consumers can expect to receive. receive. It also serves to communicate the standards which are expected of employees. While the general manner in which an organization goes about promoting itself may give a general impression as to what level of quality it seeks to deliver, more specific standards can be stated in a number of ways which are considered below. At its most basic, an organization can rely on its terms of business as a basis for  determining the level of service to be delivered to customers. These generally act to protect customers against excessively poor service rather than being used to proactively promote high standards of excellence. The booking conditions of tour operators, for example, make very few promises about service quality, other than offers of compensation if delays exceed a specified standard or if accommodation arrangements are changed at short notice. Generally worded customer charters go beyond the minimum levels of business terms  by stating in a general manner manner the standards standards of performance performance which the organizatio organization n aims to achieve in its dealings with customers. Now a days automobile companies use Q S 9000. QS 9000 is a customer-driven automotive standard. It focuses on defect prevention, continuous improvement and reduction of wastage or variation in the supply chain; development of subcont contrac racto tors rs;; prod produc uctt qual qualit ity, y, cost cost,, deli delive very ry and and serv servic ice. e. It is base based d on a prev preven enti tive ve methodology. It uses disciplined problem solving methods.

2.9 Quality Management in Automobile Sector In times of severe competition, it is of crucial importance to create a competitive advantage to differentiate from the competitors and to sustain the automobile sector. This shows shows that that a custom customer-f er-focu ocused sed quality quality manage managemen mentt is one way to create create a sustai sustainab nable le competitive advantage. Quality controls along the whole value chain -before, during and after   production- leads to failure free products, which save costs on the one hand and have thus a  positive influence on the company’s revenue. On the other hand failure free products that meet the customers’ expectations lead to satisfied customers who build up a brand loyalty and conduct retention sales, which have a positive influence on the company’s sales, market share as well as the overall image. Furthermore, it is important to listen to ‘the voice of the customers’ and get an insight in the customer customer’s ’s needs needs and wants. wants. To fulfil fulfil or even even exceed exceed their their expecta expectatio tions ns leads leads to customer satisfaction, which is a key to success in today’s automobile sector. In addition, the

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customer demands in regard of quality are growing continuously and new technologies are appearing on the markets on a regular basis. Therefore the producers are forced to keep to the latest technology developments and to get hold on the changing customer needs. But even without this external pressure, quality improvement is justified from a cost point of view. The applicability of a customer-oriented quality management is shown in the practical part of this thesis, when the quality of the Saab models is analysed from the customer’s perspective

2.10 2.10 Factors Factors Influen Influencin cing g Evalua Evaluatio tion n of Ser Servic vicee Quali Quality ty in Automo Automobil bilee Sector (a) Advertising Campaigns and Opinions of Friends and Families

There is the perception of quality and value. There is often a disturbing disconnect  between actual quality and value of a vehicle and what the consumer believes to be the quality and value. Real or not, consumers are cultivating beliefs about different brands and vehicles based on a feeling or belief about quality and value rather than any quantitative measurement of such. These beliefs are cultivated from advertising campaigns, aesthetics,  press reports and anecdotes from friends and family. (b) Long-term Reputation

Long-term reputation is very important for quality perception. In fact, this factor is mainly mainly responsibl responsiblee for consumer’s consumer’s perceptions perceptions.. Opinions Opinions of friends friends and family have strong influence on quality perception too. If certain members in family prefer one particular brand and always talk about how good those vehicles are, it creates quality perception in everyone's mind. (c) Vehicle Class

The study found that vehicle class plays an important role in quality perception. For  example if a small vehicle achieves expected fuel-economy criteria, lower income group customers tend to associate it with quality. At the same time, luxury buyers' notions of quality are inordinately tied to fit-and-finish issues. Vehicle design, particularly interior features and cont contro rols ls,, is cons consid ider ered ed by cons consum umers ers to be as impo importa rtant nt to qual qualit ity y as are defec defects ts and and malfunctions. Many consumers base their ideas of quality not on whether things work right or  not in a vehicle, but on design and execution. "If a product is simple and easy to use, many consumers associate that with quality, regardless of dependability. A preoccupation with features can create negative or positive notions in consumers' minds--but either type can  powerfully shape perceptions of whether a vehicle is up to snuff.

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(d) Reliability, Repair ability and Durability

The product aspects of reliability, reparability, durability are not only important for  vehicle's performance, but also are significant for quality perception. Repair ability factor   becomes a quality criterion for consumers in two ways. First, some automakers are willing to stand behind their products for longer than others. Another aspect of reparability is how easy or difficult it is to get a vehicle repaired. The study found that these aspects often times are highlighted by a sales person or in the sales literature. Reliability and repair ability helps determine long-term costs of ownership. The advertisements and sales information about low maintenance costs, little down-time, and easy to replace standardized parts help to form  perception about quality. (e) Dealership Performance

How dealers treat their customers customers is a huge component component of vehicle vehicle quality in the eyes of many consumers because owning and maintaining an automobile establishes a relationship with a manufacturer, and the dealer is generally the face of that relationship. Dealer handling of consumers, in fact, shapes much of our perception of a vehicle as a quality, stand-up brand. On the other hand, some consumers have come to rely on specific dealers as guarantors of a quality relationship, and they're willing to buy a variety of vehicles from them. 4.7 Mythical Perception (f) Customer Service Reach

The easy custom customer er servic servicee and a long long networ network k of custom customer er servic servicee centre centre also influence the quality perception. If customer service people could explain, over the phone or   by email, how to replace a part, it gives an indication that it has better quality. The better  service capabilities are indication of good quality.

2.11Measurement of Service Quality Assessment of service quality is depends upon prior expectations of overall quality comp compar ared ed to the the actu actual al perfo perform rman ance ce recei receive ved. d. If the the recen recentt expe experie rienc ncee exce exceed edss prio prior  r  expectations, customer satisfaction is likely to be high. Customer satisfaction can also be high even with mediocre performance quality if the customer's expectations are low, or if the   perfo performa rmance nce provid provides es value value (that (that is, it is priced priced low to reflect reflect the medioc mediocre re qualit quality). y). Likewise, a customer can be dissatisfied with the service encounter and still perceive the overall quality to be good. This occurs when a quality service is priced very high and the

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transaction provides little value. Some of statistical test are used for understanding service quality. Its theoretical aspects are following. (a) Mann – Whitney Whitney Test

In order to apply the Mann-Whitney test, the raw data from samples A and B must first be combined into a set of N=n a+n b elements, which are then ranked from lowest to highest, including tied rank values where appropriate. These rankings are then re-sorted into the two separate samples. In this test data have already been ranked, these ranks can be entered directly into the cells headed by the label «Ranks». In this case, please note that the sum of all ranks for  samples A and B combined must be equal to [N(N+1)]/2. If this equality is not satisfied, you will receive a message asking you to examine your data entry for errors. Data have not yet  been rank-ordered in this fashion, they can be entered into the cells labelled «Raw Data» and the ranking will be performed automatically. (b) Kruskal – Wallis Test The Kruskal-Wallis test is used to test: * The null null hypoth hypothesi esiss H0 accordi according ng to which which k  independen independentt samples samples were were drawn from the same population (or identical populations), * Agains Againstt the alterna alternativ tivee hypoth hypothesi esiss H1 accord according ing to which which these these sample sampless were were drawn from populations sharing the same shape but with different central tendencies (med (media ians ns). ). The obser bserv vatio ations ns must ust be on a numer umeric ic or ordi ordin nal scal scalee (no (not  just categorical). The samples do not need to have the same number of observations.

2.12Researching Service Quality The development development of reliable, easy-to-easy easy-to-easy measures measures of service quality quality represents represents a key aspect of consumer behaviour and services marketing research. Indeed, an integral part of  any any orga organi niza zati tion on’s ’s atte attemp mptt to stil stilll a ‘qua ‘quali lity ty cultu culture re’’ is a comm commit itme ment nt to a proc proces esss of  ‘continuou ‘continuouss improvement’ improvement’.. To support support this systematic approach to quality quality measuremen measurementt is needed. This is especially true of ‘pure’ services organizations, as unlike their counterparts in the manufacturing sector they have fewer objective measures of quality by which to judge their production. They are following.

(a) Regular customer surveys

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The The inci incide denc ncee of surv survey eyss into into the the leve levell of sati satisf sfac acti tion on that that cust custom omer erss have have expe experie rienc nced ed from from serv servic icee prov provid iders ers is incr increas easin ing g throu through ghou outt the the serv servic icee sect sector or.. The The increasing range of competing services available and customers’ growing awareness of the fact that they are in receipt of a service for which they pay a price– whether directly or  through taxation – has led them to expect to be consulted and to express an opinion about the level level of satisf satisfact action ion provid provided. ed. Today, Today, member memberss of the public public are in consta constant nt receipt receipt of  literat literature ure from from a wide wide range range of servic servicee provid providers ers asking asking for comments comments on the quality quality of  service service that they have received. received. It is probably true to sat that most large service providers in  both private and public sectors have jumped on this quality bandwagon. The assumption that most people make is that data from such surveys will be used to take corrective action where expectations are not reached.

(b) Customer panels

These can provide a continuous source of information on customer expectations. Groups of customers, who are generally frequent user, are brought together by a company on a regula regularr basis basis to study study their their opinion opinionss about about the qualit quality y of servic servicee provid provided. ed. On other  other  occasions, they may be employed to monitor the introduction of a new or revised service –  for for exam exampl plee a pane panell coul could d be brou brough ghtt toge togeth ther er by a buil buildi ding ng soci society ety foll follow owin ing g the the experimental experimental introduction introduction of a new branch design format. The use of continuou continuouss panels can offer organizations a means of anticipating problems and may act as an early warning system for for emerg emergin ing g issu issues es of impo import rtan ance ce.. Reta Retail ilers ers have have been been invo involv lved ed in the the oper operati ation on of  continuou continuouss panels contribute contribute to monitor monitor their level of service service provision provision as well as letting letting  panels  panels contribute contribute to new product development development research. Method is quite dependent dependent on how well the panel represents consumers as a whole. There has been a suggestion that the number  of people prepared to become members of panels is not rising as quickly as firms’ appetite for  information. The result has been the emergence of ‘professional’ panel members who may not be representative of service users as a whole.

(c) Transaction analysis

An increas increasing ingly ly popula popularr method method of evalua evaluativ tivee resear research ch involv involves es tracki tracking ng the satisfaction satisfaction of individual individualss with particular transactions transactions that they have recently recently been involved in. This is a root cause for management to judge correct performance, particularly customers’ satisf satisfact action ion with with the contac contactt person personnel nel with with whom whom they they have have interac interacted ted,, as well well as their  their 

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overall overall satisf satisfacti action on for the servic service.. e.. For exampl example, e, the Autom Automobi obile le Associ Associatio ation n survey surveyss custom customers ers who who have have recentl recently y been been served served by its breakd breakdown own service service and many many buildi building ng societies societies invite customers customers who have just used their mortgage services services to express their views on the service received via a structured questionnaire. An additional benefit of this research is its capability to associate service quality performance with individual contact personnel and link it to reward system.

(d) Perception surveys

These These invest investiga igatio tions ns use a combin combinatio ation n of qualitat qualitative ive and quanti quantitati tative ve approa approach. ch. Many professional professional services organization organization have employed employed such studies studies in order to develop develop future market strategies. strategies. Their aim is to achieve a better better understand understanding ing of how customers customers view view an organi organizat zation ion.. In other other words, words, to help help the firm firm itself itself as client clientss see it. The initial initial qualitative stages of a study involve researchers in identifying the attitudes of clients towards the firm as well as how the firm is perceived by the community at large. Perception studies of  subject include an analysis of the perceptions of a firm’s employees.

(e) Mystery customers

The The use use of ‘mys ‘myste tery ry cust custom omer’ er’ is a meth method od of audit auditin ing g the the stan standa dard rd of serv servic icee   provi provisio sion, n, partic particula ularly rly the staff staff involv involveme ement nt in such such provis provision ion.. A major major diffic difficult ulty y in measur measuring ing servic servicee qualit quality y is overco overcomin ming g the non-co non-confo nformi rming ng of staff staff with with perfor performan mance ce guidelines. This so called service-performance gap is the result of employees being unable and/or unwilling to perform the service at the desired level. An important function of mystery customer customer surveys is therefore therefore to monitor the extent extent to which specified specified quality standards standards are actually being met by staff. This This metho method d of researc researchin hing g actual actual service service provis provision ion involv involves es the use of traine trained d assessors who visit service organizations and report back their observations. Audits tend to be tailored to the specific needs of a company and focus on an issue that it wishes to evaluate. The format of the enquiry is determined jointly by the client and research organization. (f) Analysis of complaints

Dissatisfaction of customers is most clearly voiced through the complaints that they make about service provision. provision. For many companies, companies, this may be sole method of keeping keeping in touch with customers. Complaints can be made directly to the provider or perhaps indirectly

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thro throug ugh h an inte interm rmed ediar iary y or a watch watch dog dog body body.. Comp Compla lain ints ts by cust custom omers ers,, refer referri ring ng to instances of what they consider poor-quality service may, if treated constructively, provide a rich source source of data data on which which to base base polici policies es for improv improving ing service service quality quality.. Howev However, er, customer customer complaints are at best an inadequate inadequate source of information information.. Most customers customers don’t  both to complain, remain dissatisfied and tell others about their dissatisfaction. Others simply change change to another supplier supplier and do not offer potentially potentially valuable information information to the service  provider about what factors where wrong which cause them to leave. In truly market - oriented organizations, complaints analysis can form a useful pointer  to where the process process of service service delivery is breaking breaking down. As part of an overall overall programme programme for keeping in touch with customers, the analysis of complaints can have an important role to  play. The continuous tracking of complaints is a relatively inexpensive source of data which enables a company to review the major concerns of customers on an ongoing basis and hope fully rectifies any evident problems. In addition the receipt of complaints by the firm enable staff to enter into direct into direct contact with customers customers and provides provides an opportunit opportunity y to interact interact with them over their matters matters of concern. concern. As well as eliciting eliciting customers’ customers’ views on these issues in particular, particular, complainants complainants can also contribute contribute views about customer customer service service in general general.. Many Many compan companies ies have gone gone to great great length lengthss to make make it easy easy for custom customers ers to compla complain, in, for exampl examplee by creatin creating g free phone phone teleph telephone one lines lines and aking aking commen commentt cards cards readily available. (g) Employee researches

Research undertaken among employees can enable their views about the way that services are provided and their perceptions of how they are received by customers to be taken into account. Data gathered from staff training seminars and development exercises, feedback  from Quality circles, job appraisal and performance evaluation reports, etc. can all provide valuab valuable le inform informati ation on for planni planning ng qualit quality y servic servicee provis provision ion.. One way in which which formal formal feedback from staff can be built into a systematic research program is the operation of a staff  sugges suggestio tion n scheme scheme.. The propo proposal salss which which staff staff may make make about about how how service servicess could could be  provided more efficiently and/or effectively certainly do have an important role to play in moving moving service service quality. quality. Research into employees’ employees’ needs can also identification identification of policies policies which improve

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CHAPTER 3

Data analysis and Discussion

Data Analysis and Discussion Based up on the data collected through the questionnaire the following information has been tabulated and represented in the graph. Age of the Respondents

Table 3.1: Age of the Respondents Age

Number of Respondents

Percentage

20-30

15

30

30-40

6

12

40-50

10

20

50 & Above

19

38

Total

50

100

Source: Primary Data

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Figure 3.1: Age of the respondents

Source: Primary Data

Inference:

This analysis shows the age group of the respondent comes under the age group of i.e. 20-30 i.e. 30%, 30-40 age group 12%, 40-50 with weight age of 20%, 38% of the respondent are above the 50. Media Used for Booking Vehicle Service

Table No 3.2: Media used for booking vehicle service Media

Number of respondents

% of Respondents

Telephone

27

54

Internet

5

10

Personally

15

30

Other media

3

6

Total

50

100

Source: Primary Data

Figure 3.2: Media used for booking vehicle service

Source: Primary Data

Inference:

A majority of customers have booking their vehicle for service through telephone and  personally  personally.. In the absences absences of computer computer knowledge knowledge only 10% of customers customers booking their  vehicle for service through internet. 6% of customers use other media for booking vehicle for  services. Duration of vehicle service

Table3.3: No of days taken for vehicle delivery after service No of days

Number of respondents

% of respondents

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0-1 1-3 3-5 More than 5 days

11

22

16

32

14

28

9

18

Source: Primary Data

Figure 3.3: No of days taken for vehicle delivery after service

Source: Primary Data

Inference:

It can be inferred from the graph that time delivery of the serviced vehicle is good. With in 3 days more than 50% of vehicles are serviced. 28% respondents are response 3-5 days and 18% of respondents are response more than 5 days.

Complaints are Constructively Handled

Table 3.4: Complaints are constructively handled Levels

No. Of respondent

% of respondent

Strongly agree

12

24

Agree

25

50

Can’t say

8

16

Disagree

3

6

Strongly disagree

2

4

Source: Primary Data

Figure 3.4: Complaints are constructively handled.

Source: Primary Data

Inference:

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From this graph it can be easily understand that more than 24% of respondents strongly agree that that thei theirr comp compla lain ints ts are are cons constr truc uctiv tivel ely y hand handle led d and and 50% 50% of respo respond nden ents ts agre agreee with with this this statement.1 statement.16% 6% of responden respondents ts stay in neutral neutral position. position. 6%of respondents respondents are disagreed disagreed with this statement statement and 4% of are strongly strongly disagree. It pointed pointed that company company should give special attention attention to this area.

Staffs Technical Knowledge

Table 3.5: Technical knowledge of the staffs Satisfaction level

No of respondents

% of respondents

Highly Satisfied

35

70

Satisfied

12

24

Neutral

3

6

Unsatisfied

0

0

Highly unsatisfied

0

0

Source: Primary Data

Figure 3.5: Technical knowledge of the staffs

Source: Primary Data

Inference:

From the analysis it can be inferred that more than 70% of the respondents are highly satisfied satisfied with the technical technical knowledge knowledge of the staff. 24% of respondent respondentss are satisfied.6 satisfied.6% % of  respondent respondentss take a neutral neutral position. position. None of them are unsatisfie unsatisfied. d. Technical Technical knowledge knowledge of  staffs contributes for improvement of the service sector in Apco Hyundai.

Staffs are Willing to Listen Customers Opinion

Table 3.6:Staffs are willing to listen customers individual point of view Opinion

No of respondents

% of respondents

Yes

36

72

No

14

28

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Source: Primary Data

Figure 3.6: Staffs are willing to listen customers individual point of view

Source: Primary Data

Inference:

It can be inferred from the graph that majority of the customers believe that staffs are willing willing to listen individual individual point point of view. Nearly 28% of customers customers are not satisfied satisfied with statement.

Workmanship of the Service Machine

Table3.7: Workmanship of the service machine Satisfaction level

Number of respondents

% of respondents

Highly satisfied

10

20

Satisfied

35

70

Dissatisfied

4

8

Highly dissatisfied

1

2

Source: Primary Data

Figure 3.7: Workmanship of the service machine

Source: Primary Data

Inference:

 Nearly 70% of customers are satisfied with the workmanship of the service quality machine and 8% of customers are not satisfied.

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Responds towards Customer’s Query

Table 3.8: Responds towards customer’s query Ratings

No. of respondents

% of respondents

Excellent

6

12

Very good

26

52

Good

12

24

Average

4

8

Poor

2

4

Source: Primary Data

Figure 1.10: Responds towards customers query

Source: Primary Data

Inference:

This figure shows that customers are satisfied with their responds towards query. More than 80% of customers are above the average level. Only 4% of customers are not satisfied with work. This major area of concern and the company should give corrective information to customers.

Service Charges are Reasonable

Table 3.9: 3.9: service charges are reasonable Opinion

No of respondents

% of respondents

Yes

20

40

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No

24

Neutral opinion

48

6

12

Source: Primary Data

Figure 3.9: 3.9: service charges are reasonable

Source: Primary Data

Inference:

From the analysis it is clear that Service charge are not reasonable. reasonable. Nearly 48% of  respondents are not satisfied with service charges.12% of respondents are stay in neutral  position. It may leads to customer dissatisfaction in Apco Hyundai.

Rank of service quality dimensions in Apco Hyundai H yundai

Table 3.10: Rank of service quality dimensions in Apco Hyundai Sl No :

Dimensions

R1

R   R  2 3

R  4

R  5

Weight

Weigh t sum

%

Ra nk 

1

Tangibles

9

8

9

13

11

(9*5)+(8*4)+(9*3)+(13*2)+ (11*1)

141

18.66

4

2

Reliability

9

14

10

8

9

(9*5)+(14*4)+(10*3)+(8*2) +(9*1)

156

20.64

3

3

Responsive ness

12

8

12

14

4

(12*5)+(8*4)+(12*3)+(14*2 )+(4*1)

160

21.17

2

4

Assurance

14

15

8

6

7

(14*5)+(15*4)+(8*3)+(6*2) +(7*1)

173

22.89

1

5

Empathy

6

5

11

9

19

(6*5)+(5*4)+(11*3)+(9*2)+ (19*1)

120

15.87

5

Total

756

Source: Primary Data

Figure 3.10: Rank of Service Quality Dimensions in Apco Hyundai

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Source: Primary Data

Inference:

In this graph assurance have 1 st rank in service quality dimensions.2 nd, 3 rd, 4 th and 5th is occupied by the responsiveness, reliability, tangibles, empathy respectively. So it pointed that customers are highly satisfied with assurance of their quality of services.

Dependency of Apco for Future Service Table 3.11: Dependency of Apco for future service Opinion

No of respondents

% of respondents

Yes

43

86

No

0

0

No opinion

7

14

Source: Primary Data

Figure 1.13: Dependency of Apco for future service

Source: Primary Data

Inference:

From the analysis it is inferred inferred that 86% of respondent respondent depend upon Apco for future service. None of them have no specific opinion that they are not depending upon company for  future service.

Measure of Satisfaction of Hyundai Customers

Table 3.12: Measure of satisfaction of Hyundai customers

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Satisfaction level

No of respondents

% of respondents

Highly satisfied

10

20

Satisfied

34

68

Neutral

6

12

Unsatisfied

0

0

Highly unsatisfied

0

0

Total

50

100

Source: Primary Data

Figure 3.12: Measure of satisfaction of Hyundai customers.

Source: Primary Data

Inference:

It can be inferred from the graph that majority constituting of 68% of the respondents are satisfied with the Hyundai Company in all aspect. None of the customers opined that they are dissatisfied. dissatisfied. This indicates indicates of the trustworthines trustworthinesss the brand and the quality of services services they deliver.

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Mann-Whitney Test Here this non parametric test can be used in order to find out whether any significant difference exists in mean ranks of the service quality in vehicle delivery time.

Ho: There is no association between vehicle delivery and the service quality rate. H1: There is an association between vehicle delivery and service quality rate.

Table 3.13: Mann-Whitney test Ranks

Time vehicle

Rate service quality

delivery

N

Mean Rank

Sum of Ranks

Ye s

26

33.00

858.00

No

24

17.38

417.00

Total

50

Source: Primary Data

Table 3.14: Mann-Whitney test Test Statistics

Rate organization Mann-Whitney U

117.000

Wilcoxon W

417.000

Z

-4.123

Asymp. Sig. (2-tailed)

.000

Source : Primary Data From the table no 3.16, Mann- Whitney test was found to be significant at Mann-Whitney U=117.00, Z= -4.123, asymptotically significant= .000. Hence we accept H1.This means that there

is an association between service quality and time vehicle delivery.

Mann-Whitney Test

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Here this non parametric test can be used in order to find out whether any significant difference exists in mean ranks of the service quality and staffs provided promptly services to customers. Ho: There is no association between the service quality rate and staffs provided services H1: There is association between service quality rate and staffs provided services. Table 3.15: Mann- Whitney test

Ranks

staff   provided services Rate service quality

N

Mean Rank

Sum of Ranks

yes

21

32.74

687.50

no

29

20.26

587.50

Total

50

Source: Primary Data

Table 3.16: Mann- Whitney test Test Statistics

Rate organization Mann-Whitney U

152.500

Wilcoxon W

587.500

Z

-3.253

Asymp. Sig. (2-tailed)

.001

Source: Primary Data From the table no 3.16, Mann- Whitney test was found to be significant at Mann-Whitney U=152.50, Z= -3.253, asymptotically significant= .001. Hence we accept H1.This means that there

is an association between service quality and staff provided services.

Kruskal-Wallis Test

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Kruskal- Wallis is a non parametric test used for finding out whether there is any significant difference exists in the mean ranks of service quality in complaints are handled.

Ho: There is no association between the service quality rate and complaints are handled H1: There is association between service quality rate and complaints are handled. Table 3.17: Kruskal- Wallis test Ranks

Complaints are handled Rate service quality

N

Mean Rank  

strongly agree

11

40.23

agree

27

27.28

can't say

7

11.36

disagree

3

4.50

strongly disagree

2

1.50

Total

50

Source: Primary Data

Table 3.18: Kruskal- Wallis test Test Statistics

Rate service quality Chi-Square

35.402

Df

4

Asymp. Sig.

.000

Source: Primary Data

Inference: From From the the table table no 3.18 3.18: Kruska was foun found d to be signi signifi fica cant nt in ChiKruskall- Wallis Wallis test test was

Square=35.402, df=4, asymptotically significant= .000. Hence we accept H1.This means that there is an association between service quality and complaints are handled.

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CHAPTER 4

Findings, Recommendations and Conclusion

4.1Findings The findings of this study have important practical implications to management of  quality of the Apco Hyundai Hyundai automobile services. The results of the study study make a valuable

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cont contri ribu buti tion on for for enha enhanc ncin ing g perce perceiv ived ed serv servic icee quali quality ty of auto automo mobi bile le serv servic ices es.. The The measurement technique also serves to identify symptoms and the underlying problems that inhibit the effective provision of quality services in automobile sector. •

A majority of customers have booking their vehicle for service through telephone and  personally.

•

From the percentage analysis it can be easily understand that time delivery of the serviced vehicle is good. With in 3 days more than 50% of vehicles are serviced.

•

There is an association between service quality and vehicle delivery time.

•

From the analysis it can be inferred that more than 70% of the respondents are highly satisfied with the technical knowledge knowledge of the staff. staff. This knowledge knowledge contributes lot for  improvement of the service sector in Apco Hyundai. Remaining 30% plays crucial role for satisfying service quality dimensions.

•

The study proves that majority of the customers believe that staffs are willing to listen listen indivi individua duall point point of view. view. Nearly Nearly 28% of custom customers ers are not satisfie satisfied d with with statement.

•

 Nearly 70% of customers are satisfied with the workmanship of the service quality machine and 8% of customers are not satisfied.

•

From the research it has been found that customers customers are satisfied satisfied with staffs responds towards query. More than 80% of customers are above the average level. Only 4% of  customers are not satisfied with work. This major area of concern and the company should give corrective information to customers.

•

  Nearly 48% of respondents are not satisfied with service charges. It may leads to customer dissatisfaction in Apco Hyundai.

•

In service service qualit quality y dimens dimension ionss graph graph assura assurance nce have have 1st rank rank in servic servicee qualit quality y dimensions.2nd, 3 rd, 4 th and 5th is occupied by the responsiveness, reliability, tangibles, empathy respectively.

•

From From the the Mann Mann-- Whit Whitne ney y test test was was foun found d to be sign signif ifica icant nt at Mann Mann-W -Whi hitn tney ey U=152.50, Z= -3.253, asymptotically significant= .001. Hence we accept H1.This means that there is a association between service quality and staff provided services.

•

•

There is an association between service quality and complaints are handled. From the study majority constituting of 68% of the respondents are satisfied with the Hyun Hyunda daii Comp Compan any y in all aspe aspect ct.. None None of the the cust custom omer erss opin opined ed that that they they are are dissatisfied. This indicate of the trustworthiness the brand and the quality of services the deliver.

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4.2 Recommendations •

To set up a complaint handling cell for reducing customer grievances.

•

Better Better to provid providee custom customer er pick pick and drop drop facili facility. ty. This This enhanc enhances es custom customer er and company relations.

•

Provide spot and home services to customers.

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•

Employees are capable of directly contributing to both customer disappointment and deligh delightt .Theref .Therefore ore , it is essent essential ial that that the dealer dealer have have the researc research h and analysis analysis meth method od that that links links staff staff perfor performa manc ncee engage engageme ment nt

dire direct ctly ly to the

cust custom omer  er 

 behaviour ,so that they can hire , train, recognise and reward employees for how they contribute to customer value. •

To cond conduc uctt cust custom omer er get get toge togeth ther er prog progra ram. m. It help helpss for for easi easily ly unde unders rsta tand ndin ing g customer’s expectations and perceptions towards service quality in company .It also contributing for the improvement of services given by the company.

•

Service charges are not reasonable. So company should give discounts to customers. Affordable financing attract and retain customers.

•

Identify what leverages top-end customer commitment and advocacy behaviour, and then build customer experience around it.

•

All the issue of the customers regarding sales and service should be dealt with immediately and over all satisfaction level towards the various services provided by the dealer should be further raised.

•

Communicate often with customers regarding to build loyalty and to gain intangible, emotional relationship benefits.

•

Cust Custom omer er care care empl employ oyee eess shou should ld be give given n soft soft skil skilll trai traini ning ng to impr improv ovee the the effectiveness of customer interactions.

•

The company should identify ways and means to reduce the service time there by offering an assured shortest possible time.

4.3Conclusion In this highly competitive world organizations have no choice but to provide better  services to customer to stay in the market. For an organisation providing services it will be very difficult to give out the offers to attract customers, so to stay in the market providing  better services is only the option.

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To conclude, this project Apco Automobiles has created a good image in Kasaragod. Apco Apco is the the best best deal dealer er of Hyun Hyunda dai. i. Cust Custom omers ers of Apco Apco Hyun Hyunda daii have have give given n posi positi tive ve respon response se toward towardss overall overall servic servicee qualit quality. y. Servic Servicee qualit quality y plays plays a vital vital in determ determini ining ng marketing image of every company. Once the attributes of automobile services from the customer’s perspective are more clearly known and understood, its service providers will be in a better position to anticipate consumer requirements rather than to react to consumer  dissatisfaction.

4.4 Appendices Questionnaire

Dear Respondent,

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This is a survey to understand the service quality in Apco Hyundai. The study being conducted is part of my curriculum. Please fill the questionnaire with care and attentiveness and to best of your knowledge to help us gauge your likes and dislikes.  Name: Occupation: Location: Vehicle Model: Year of Purchase: Annual Family Income:

Below 1.2 lakhs

1.2 – 2.4L

2.4L – 5 L

Above 5 L

1. How do you you book book your vehicle vehicle for service service at Apco? Telephone Personally Internet Others___________  2. Are you you able able to book book your vehicle vehicle on the day day you you prefer? prefer? Yes 3.

No

How do do you rate organiz organization ation respon responds ds towards towards custom customer’s er’s query? query? Excellent

Very good

Good

Average

Poor 

4. No of days days take taken n for vehic vehicle le delive delivery ry after after servic servicee 0-1 5.

1-3

3-5

5&Above

Staffs provide provide prompt prompt and and timely services services to you. Yes

No

6. Do you you satisfied satisfied with workmanshi workmanship p of the service service machine? machine? Highly satisfied 7.

Satisfied

Dissatisfied

Highly dissatisfied

Your Your compl complain aints ts are are cons constru tructi ctivel vely y handl handled ed

Page | 55

Strongly agree

Agree

Can’t say

Disagree

Strongly disagree 8. Is the the vehicl vehiclee delive delivered red back back to to you on time? time? Yes

No

9. Before pickin picking g the vehicle, vehicle, after after servicing, servicing, are are you being being briefed briefed on what what works works have  been done based on the problems you indicated earlier, and additional work, if any? Yes

No

10. Staffs are willing to listen to your individual individual point of view. Yes

No

11. Employees deliver appropriate services to you. Strongly agree

Agree

Can’t say

Disagree

Strongly disagree

12. Rank your responds towards Service Quality dimensions in Apco Hyundai ?

Tangibles

Reliability

Responsiveness

Assurance

Empathy 13. Are you being, called on, after service, to find whether all your vehicle problems problems have been resolved or not? Yes

No

14. Do you satisfied with technical knowledge of staffs, for handling the problems? Highly satisfied

Satisfied

Neutral

Unsatisfied

Highly dissatisfied 15. Do you find the service charges reasonable? Yes

No

Neutral opinion

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16. How often do you give your vehicle for service, here? Almost once a month Once in four months

Once in two months Once in six months

Once in three months Rarely

17. Do you depend of Apco for future service? Yes

No

Neutral opinion

18. Please indicate your degree of SATISFACTION with the overall services provided by your APCO HYUNDAI , by placing a check mark X in the relevant box below.

Completely dissatisfied

Very dissatisfied

Mildly dissatisfied

 Neither dissatisfied nor satisfied

Mildly satisfied

Very

Completely

satisfied

satisfied

19. Which are the areas we can improve improve upon, to provide you with better service?  ________________________________________________________________________   ________________________________________________________________________   ________________________________________________________________________   __ 

4.5 Bibliography Books RanjithKumar Ranjith Kumar , Research Resear ch Methodology , Second Edition , 2005 by Pearson Education Australia, Copyright 2005. SHH Kazmi, Marketing Management, First edition , New Delhi 2007,Copyright 2007,SHH Kazmi.

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V. ParthaSarathy, Service Quality, First Edition 2006, Published by the ICFAI University Press. Kanishka Bedi, Quality Management, by Oxford University Press 2006. PrassannaChandra, Projects, Seventh Edition, by Tata Mcgraw Hill Education Private Limited. Copyright 2009 by Chandra Prasanna. Websites

http://www.hyundai.com/companyprofile http:/www.scribd.com/doc/20072208/Measuring-service-quality-using-SERVQUAL-scale-A-Case-study-at-DADA-motors-Ludhiana-Punjab urfindia.com/automobile/automobile-industry.html http://www.2indya.com/2010/05/26/automobile-industry-in-india/[INDIANPROFILE http://www.hyundai.com/companyprofile

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