International Journal of Business and Management Tomorrow

Vol. 2 No. 10

Factors Affecting Customer Satisfaction: A Study on Maruti Suzuki

Mahesh L, Faculty, Maharanis Arts and Commerce College for Women, Mysore Amulya.M, Assistant Professor, Department of Studies in Business Administration, University Of Mysore, Mysore

Abstract
Exceptional customer service results in greater customer retention, which in turn results in higher profitability. Customer loyalty is a major contributor to sustainable profit growth. To achieve success, a company must make superior service second nature of the organization. A seamless integration of all components in the service-profit chain employee satisfaction, value creation, customer satisfaction, customer loyalty, and profit and growth links all the critical dynamics of top customer service. Many companies forget that satisfying customer needs and continuous value innovation is the only path to sustainable growth. This creates opportunities for new, smaller companies to emulate and improve upon what made their bigger competitors successful in the first place and steal their customers. Organizations are increasingly interested in retaining existing customers while targeting non-customers. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. In this paper I would like to emphasis on Customer Satisfaction towards Maruti Suzuki A Study on Passenger Cars in Mysore District of Karnataka. Keywords: Satisfaction, Loyalty, Sustainable Growth, Customer Retention, Profit and Growth.

1. Introduction
Measuring customer satisfaction is a relatively new concept to many companies that have been focused exclusively on income statements and balance sheets. Companies now recognize that the new global economy has changed things forever. Increased competition, crowded markets with little product differentiation and years ISSN: 2249-9962 October|2012 www.ijbmt.com Page | 1

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of continual sales growth followed by two decades of flattened sales curves have indicated to today's sharp competitors that their focus must change. As markets shrink, companies are scrambling to boost customer satisfaction and keep their current customers rather than devoting additional resources to chase potential new customers. The claim that it costs five to eight times as much to get new customers than to hold on to old ones is key to understanding the drive toward bench marking and tracking customer satisfaction. Competitors that are prospering in the new global economy recognize that measuring customer satisfaction is the key. Only by doing so can they hold on to the customers they have and understand how to better attract new customers. The competitors who will be successful recognize that customer satisfaction is a critical strategic weapon that can bring increased market share and increased profits. The problem companies face, however, is exactly how to do all of this and do it well. They need to understand how to quantify, measure, and track customer satisfaction. Without a clear and accurate sense of what needs to be measured and how to collect, analyze, and use the data as a strategic weapon to drive the business, no firm can be effective in this new business climate. Plans constructed using customer satisfaction research results can be designed to target customers and processes that are most able to extend profits. Too many companies rely on outdated and unreliable measures of customer satisfaction. They watch sales volume. They listen to sales reps describing their customers' states of mind. They track and count the frequency of complaints. And they watch aging accounts receivable reports, recognizing that unhappy customers pay as late as possible -- if at all. While these approaches are not completely without value, they are no substitute for a valid, well-designed customer satisfaction survey program.

2. Literature Review
Customer satisfaction is defined as a result of a cognitive and affective evaluation, where some comparison standard is compared to the actual perceived performance. If the perceived performance is less than expected, customers will be dissatisfied. On the other hand, if the perceived performance exceeds expectations, customer will be satisfied. Customer satisfaction is a critical issue in the success of any business system traditional or online. In a turbulent commerce environment, in order to sustain the growth and market share, companies need to understand how to satisfy customers, since customer satisfaction is critical for establishing long term client relationships (Paterson et al., 1997). To understand satisfaction, we need to have a clear understanding of what is meant by customer satisfaction. Kotler (2000) defined satisfaction as a persons feeling of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations. When cust omers become satisfied about the value that is offered and sometimes his or her expectation is met and exceeded, can generate many benefits for a firm. Positive word of mouth from existing and satisfied customers sometimes can translate into more new customers to the firm. Also, satisfied current customers often buy more products more frequently and are less likely to defect to competitors than are dissatisfied customers. Firms that have high degree of customer satisfaction, also seem to have the capacity to shield off competition particularly price competition. According to Drucker (1954), the principle purpose of a business is to create satisfied customers. Increasing customer satisfaction has been found to lead to higher future profitability (Anderson, Fornell, and Lehmann 1994), lower costs related to defective goods and services (Anderson, Fornell, and Rust 1997), increased buyer willingness to pay price premiums, provide referrals, and use more of the product (Reichheld 1996; Anderson and Mittal 2000), and higher levels of customer retention and loyalty (Fornell 1992; Anderson and Sullivan 1993; Bolton 1998). Increasing loyalty, in turn, has been found to lead to increases in future revenue (Fornell 1992; Anderson, Fornell, and Lehmann 1994) and reductions in the cost of future transactions (Reichheld 1996; Srivastava, Shervani, and Fahey 1998). All of this empirical evidence suggests that customer satisfaction is valuable from both a customer goodwill perspective and an organizations financial perspective. According to Kotler (2000) it is important to measure customer satisfaction regularly through survey to determine customers level of satisfaction. He said this is because firms may think that they are getting a sense of customer satisfaction through customer complaints. However, in reality, 95 percent of dissatisfied customers do not make any complaint and they just leave. As a result it is important for firms to make it easy for the customer to complain. About 54 to 70 percent dissatisfied customers who usually complain, will continue to do business again with the organization if their complaints are taken care of and resolved.

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This research paper is based on the Customer Satisfaction towards the products and services of Maruti Suzuki, because Customer Satisfaction is the back bone for Maruti Suzuki in facing competition and in future progress. For Business progress and expansion to serve costumer is not the only objective, but keep them satisfied is the most important objective. Satisfied customers are the main assets for any organizations in their long term future progress.

3. Need and Importance for the Study

In the modern times the business organizations are adopting new techniques and methods for the growth of the business. The organizations are giving better services to their customers to face challenge posed by the competitors for every business, it is not only important to retain the present customers but also attract the new customers. So there is need to ascertain the customers use regarding the services providing by reputed organization like Maruti Suzuki. With the increase market study there is a cut through competition among the businessmen in the industry some of the other major competitors in this area like Hyundai, Fiat, Volkswagen, Ford, Tata, and Chevrolet. The need for customer satisfaction is necessary for all business, large or small. The satisfaction of the customer is an all important task. Hence there is a need for the study.

4. Objectives of the Study

To study the customer satisfaction with the usage of vehicles of MARUTI SUZUKI To study the impact of different factors of marketing on customer satisfaction. To study the opinion of the owners of vehicles regarding pre-sales and after sales services provided by the dealers.

5. Hypothesis
H0 : H0 : H0 : H0 : There is no significant relationship between products attributes and customer satisfaction. There is no significant positive relationship between pricing attributes and customer satisfaction There is no significant relationship between promotional attributes and customer satisfaction There is no significant positive relationship between place attributes and customer satisfaction.

6. Scope and Limitations of the Study

As the time constraint was there to complete this and as there was also finance restriction to spend on the data collection activities. So for data collection, I have limited myself to customers who brought their vehicles in specified period only. The study is confined only to Mysore city. The study is considered among customers of various Maruti Suzuki products.

7. Methodology
The study is exploratory in nature and based on primary and secondary data. Secondary data is collected from the different journals, internet and periodicals, car manufacturers websites. Primary data is gathered using on field survey methods. To elicit the responses, a detailed questionnaire has been designed and surveyed. Information is obtained from the customers of Maruti Suzuki cars. A preliminary questionnaire is developed using 5 point Likert scales. The independent and dependent variables are identified and there is one question for each of the variables. The questionnaire is pre-tested several times to arrive at appropriate wording, format, length and sequencing of the questions. Pre-test feedback is used to refine the questionnaire until it is ready for data collection. After fixing the questions for the independent and dependent variables based on the type of questions different values are assigned to the Likert scale. For a positive statement highest number (5) is assigned for highly satisfied, highest frequency and lowest number (1) for highly dissatisfied lowest frequency responses. 100 customers were elicited the questionnaire and all 100 respondents have given their opinions which accounts to 100% response rate. The respondents are selected using simple random sampling technique. For analyzing the survey data we have used the different statistical techniques to get the output through SPSS 16 package. The present study focuses on the customer satisfaction towards Maruti Suzuki.

8. Data Analysis and Interpretation

In this chapter the data collected through field investigation has been analyzed.

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International Journal of Business and Management Tomorrow Table 1 : Age Group of the Respondents Frequency Percent Valid Percent Cumulative Percent Less than 30 18 18.0 18.0 18.0 30-35 35 35.0 35.0 53.0 35-40 29 29.0 29.0 82.0 40 and above 18 18.0 18.0 100.0 Total 100 100.0 100.0

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Valid

Interpretation From the data of the samples collected regarding the age of the customers, it is clearly understood that nearly 18% of the age group are under below 30 years and 35% of the age group under between 30- 35 years, 29% of the age group are under between 35-40 and the rest of them are above the age group of the 40 years. Table 2 : Gender Group Of The Respondents Frequency Percent Valid Percent Cumulative Percent Male 62 62.0 62.0 62.0 Female 38 38.0 38.0 100.0 Total 100 100.0 100.0

Valid

Interpretation The above table regarding gender of the respondents shows that nearly 62% of the respondents are Male and the remaining 38% of respondents are Female. Table 3: Occupation Of The Respondents Frequency Percent Valid Percent Cumulative Percent Businessman 15 15.0 15.0 15.0 Employee 31 31.0 31.0 46.0 Professional 32 32.0 32.0 78.0 Retired 13 13.0 13.0 91.0 Student 9 9.0 9.0 100.0 Total 100 100.0 100.0

Valid

Interpretation From the samples collected above regarding the occupation of the customers, it clearly shows that nearly 15% of the respondents are businessmen, 31% of the customers are employees, 32% of the respondents are professionals, 13% of respondents belong to retired group and the rest of them are students. Table 4 : Income Per Annum In Rupees Frequency Percent Valid Percent Less Than 150000 23 23.0 23.0 150000-200000 17 17.0 17.0 200000-300000 32 32.0 32.0 300000 And Above 28 28.0 28.0 Total 100 100.0 100.0

Valid

Cumulative Percent 23.0 40.0 72.0 100.0

Interpretation From the samples collected above regarding the income of the customers, it is clearly understood that nearly 23% of the customers are earning income around less than Rs.150000 per annum, 17% of the customers are earning income between Rs.150000-Rs.200000, 32% of the customers are earning income under between Rs.200000-Rs.300000 and the rest of them are earning income more than Rs.300000. TABLE 5 : NUMBER OF KILOMETERS (COVERED TILL DATE) Frequency Percent Valid Percent Cumulative Percent Less than 10000 34 34.0 34.0 34.0 10000-15000 28 28.0 28.0 62.0 Valid 15000-20000 17 17.0 17.0 79.0 20000 and above 21 21.0 21.0 100.0 Total 100 100.0 100.0

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Interpretation As per the samples collected regarding the kilometres travelled till the date by the vehicle of the customers, it has been clearly understood that nearly 34% of the vehicles of the customers are travelled less than 10000kms, 28% of the vehicles of the customers are travelled between 10000kms-15000kms, 17% of the vehicles of the customers travelled between 15000-20000 and the rest of the vehicles are travelled above the 20000kms. TABLE 6 : CUSTOMERS OPINION ON PRE-SALE SERVICES BY MARUTI SUZUKI Frequency Percent Valid Percent Cumulative Percent Excellent 12 12.0 12.0 12.0 Good 54 54.0 54.0 66.0 Valid Average 24 24.0 24.0 90.0 Below Average 10 10.0 10.0 100.0 Total 100 100.0 100.0 Interpretation As per the samples collected regarding Pre-sale services with the dealer has been identified that 12% of the customers feel it is Excellent, 54% of the customers feel it is good, 24% of the customers feel it is Average, 10% of the customers feel it is Below Average. TABLE 7 : CUSTOMERS OPINION ON MARUTI SUZUKI OFFERING VALUE FOR MONEY Frequency Percent Valid Percent Cumulative Percent Above Expectation 20 20.0 20.0 20.0 As Per Expectation 62 62.0 62.0 82.0 Valid Below Expectation 18 18.0 18.0 100.0 Total 100 100.0 100.0 Interpretation The above data regarding the Customers' opinion of the Maruti Suzuki offering value for money shows that 20% of the customers feel it is above expectation, 62% of the customers feel it is as per expectation and 18% of the customers feel it is below expectation. TABLE 8 : CUSTOMERS OPINION ON POST-SALE SERVICES BY MARUTI SUZUKI Frequency Percent Valid Percent Cumulative Percent Excellent 19 19.0 19.0 19.0 Good 48 48.0 48.0 67.0 Average 22 22.0 22.0 89.0 Valid Below average 9 9.0 9.0 98.0 Poor 2 2.0 2.0 100.0 Total 100 100.0 100.0 Interpretation As per the samples collected regarding Post-sale services with the dealer has been identified that 19% of the customers feel it is Excellent, 48% of the customers feel it is good, 22% of the customers feel it is Average, 9% of the customers feel it is Below Average and 2% of the customers feel that the post sale services are poor. Hypothesis 1: H0 : There is no significant relationship between Product factors (Features, Quality, Design, mileage, performance, comfort and safety) and customer satisfaction. H1 : There is significant relationship between Product factors (Features, Quality, Design, mileage, performance, comfort and safety) and customer satisfaction. TABLE 9.1 : ANOVA Sum of Squares df Between Groups 3.484 1 Within Groups 39.956 98 Total 43.440 99 Between Groups 6.084 1 Within Groups 73.556 98 Total 79.640 99 Between Groups 9.610 1 Within Groups 68.900 98 October|2012

Features

Mean Square 3.484 .408 6.084 .751 9.610 .703

F 8.546

Sig. .004

8.106

.005

Quality Design

13.669

.000

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International Journal of Business and Management Tomorrow Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total 78.510 10.454 48.456 58.910 14.188 46.722 60.910 17.084 89.956 107.040 26.351 84.489 110.840 99 1 98 99 1 98 99 1 98 99 1 98 99 10.454 .494 14.188 .477 17.084 .918 26.351 .862 21.144

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Mileage

29.759

.000

Performance

18.612

.000

Comfort

30.565

.000

Safety

Interpretation Analysis of variance revealed significant relationship between the Product Factors and Customer Satisfaction, as the p value of all the Product Attributes i.e. Features, Quality, Design, mileage, performance, comfort and safety are less than .05 it is significant hence we accept alternative hypothesis. Hypothesis 2: H0 : There is no significant relationship between Price factors (Car Price, Discounts, Seasonal offers, Payment Periods, Credit terms and Servicing Charges) and customer satisfaction. H2 : There is a significant relationship between Price factors (Car Price, Discounts, Seasonal offers, Payment Periods, Credit terms and Servicing Charges) and customer satisfaction. TABLE 9.2 : ANOVA Sum of Squares df Between Groups 1.068 1 Within Groups 35.922 98 Total 36.990 99 Between Groups .018 1 Within Groups 80.822 98 Total 80.840 99 Between Groups 12.250 1 Within Groups 86.500 98 Total 98.750 99 Between Groups 5.921 1 Within Groups 39.789 98 Total 45.710 99 Between Groups 5.444 1 Within Groups 71.556 98 Total 77.000 99 Between Groups 1.000 1 Within Groups 49.000 98 Total 50.000 99

Car Price

Mean Square 1.068 .367 .018 .825 12.250 .883 5.921 .406 5.444 .730 1.000 .500

F 2.913

Sig. .091

.022

.884

Discounts

13.879

.000

Seasonal offers

14.584

.000

Payment Periods

7.457

.007

Credit terms

2.000

.160

Servicing Chargers

Interpretation Analysis of variance revealed significant relationship between the Pricing Factors and Customer Satisfaction, as the p value of the Pricing Attributes, i.e. Seasonal offers (F=13.879; P=.000), payment periods (F=14.584; P=.000), and credit terms (F=7.457; P=.007), are less than .05 it is significant hence we accept alternative hypothesis. But the p value of Car Price (F=2.913; P=.091), Discounts (F=.022; P=.884) and Servicing Charges (F=2.000; P=.160) are more than .05. So the result shows that there is equal relationship and equal difference in relation to Pricing factors and customer satisfaction. Hypothesis 3: H0 : There is no significant relationship between Promotional factors (Advertising, Promotional Offers and Brand Identity) and customer satisfaction. H3 : There is significant relationship between Promotional factors (Advertising, Promotional Offers and Brand Identity) and customer satisfaction.

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International Journal of Business and Management Tomorrow TABLE 9.3 : ANOVA Sum of Squares df Between Groups 3.484 1 Within Groups 96.756 98 Total 100.240 99 Between Groups 9.404 1 Within Groups 77.756 98 Total 87.160 99 Between Groups 13.938 1 Within Groups 55.022 98 Total 68.960 99 Mean Square 3.484 .987 9.404 .793 13.938 .561 F 3.529

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Advertising

11.853

.001

Promotional offers

24.825

.000

Brand identity

Interpretation Analysis of variance revealed significant relationship between the Promotional Factors and Customer Satisfaction, as the p value of the Promotional Attributes, i.e. Sales Promotional offers (F=11.853; P=.001) and Brand Identity (F=24.825; P=.000) are less than .05. But the p value of Advertising (F=3. 529; P=. 063) is more than .05. The results show that there is a positive relation between Promotional factors (Promotional Offers and Brand Identity) and customer satisfaction. Hypothesis 4: H0 : There is a significant relationship between Place factors (Ambience of the showroom, Test drive facilities, Delivery Period, service Centre and Availability of Spare Parts) and customer satisfaction. H4 : There is a no significant relationship between Place factors (Ambience of the showroom, Test drive facilities, Delivery Period, service Centre and Availability of Spare Parts) and customer satisfaction. TABLE 9.4 : ANOVA Sum of Squares Between Groups 19.360 Within Groups 52.800 Total 72.160 Between Groups 3.121 Within Groups 60.189 Total 63.310 Between Groups 5.601 Within Groups 83.389 Total 88.990 Between Groups 13.444 Within Groups 46.556 Total 60.000 Between Groups .694 Within Groups 60.056 Total 60.750

Ambience of the showroom

Test drive facilities

Delivery period

Service centre

Availability of spare parts

df 1 98 99 1 98 99 1 98 99 1 98 99 1 98 99

Mean Square 19.360 .539 3.121 .614 5.601 .851 13.444 .475 .694 .613

F 35.933

Sig. .000

5.082

.026

6.583

.012

28.301

.000

1.133

.290

Interpretation Analysis of variance revealed significant relationship between the Place Factors and Customer Satisfaction, as the p value of the Place Attributes, i.e. Ambience of the showroom (F=35.933; P=.000), Test drive facilities (F=5.082; P=.026), Delivery Period (F=6.583; P=.012) and Service Centre (F=28.301; P=.000) are less than .05. But the p value of Availability of spare parts (F=1. 133; P=. 290) is more than .05. Hence it clearly indicates the significant relation between Place factors (Ambience of the showroom, Test drive facilities, Delivery Period and service Centre) and customer satisfaction.

9. Summary of Findings
The majority of the age group of the customer are between 30 and 35 years. Out of all the respondents the male group consist of 62% and female group consists of 38% Most of the customers belong to Professional and Employee groups. The income of most of the respondents is between Rs.200000/- and Rs.300000/The majority of respondents have covered less than 10000 kilometres till date. As per the data collected regarding Pre-sale services with the dealer has been identified that majority of the respondents feel the pre-sale services are Good in Mysore. October|2012 www.ijbmt.com Page | 7

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The data collected regarding the Post-Sale services by the dealer in Mysore city has identified that nearly 48% of the respondents have given their opinion as Good. The majority of the respondents have opined that Maruti Suzuki has reached their expectation in offering value for their money. Analysis of Variance test has conducted to identify the relationship between the various factors of Maruti Suzuki with Overall customer Satisfaction of the customers revealed that there is a significant relationship between the product factors, promotional factors and place factors. Among the different attributes (which we considered important for customers purchasing decision) customers gave highest consideration to mileage followed by the price of the car and Performance of the car. Other attributes like Looks, service and spares were considered later. Nearly 89% of the respondents have said that they are happy and satisfied with the Products and Services of Maruti Suzuki.

10. Conclusion
The Indian Automobile Industry is on overdrive. The rapid urbanization, coupled with an overwhelming growth in the middle class population, has created an Indian market that is extremely conducive for the automobile industry to flourish. Maruti Suzuki India Limited commonly referred to as Maruti, is a subsidiary company of Japanese automaker Suzuki Motor Corporation. Maruti Suzuki alone has a market share of 44.9% of the Indian passenger car market as of March 2011. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific. From the outcome of the study it can be concluded that the all the factors considered in the study have significant effect on the overall satisfaction of the customers. However, in this study, customers level of satisfaction is moderate for most of the attributes, except discounts, seasonal offers and Delivery period. Moreover, satisfaction levels for pricing attributes (such as Car price, discounts and service charges) are generally lower than product related attributes. For this reason, Statistical calculations have been complemented with an analysis in order to highlight those attributes where managers need to pay more attention. It is recommended that surveys like these become a regular feature of every company so that we are able to understand and track changes in customer priorities. To do this however, we will need to ensure that our customer databases are regularly updated with customer telephone contacts.

Mahesh L, Faculty, Maharanis Arts and Commerce College for Women, Mysore

Amulya.M, Assistant Professor, Department of Studies in Business Administration, University Of Mysore, Mysore

References
Aaker, D. A., 1995, Strategic Market Management. 4th ed., New York, John Wiley. American MarketingAssociation.Community/ARC/Pages/Additional/Definition/default.aspx. Retrieved 2012-01-18. Berry, Leonard L.; A. Parasuraman (1991). Marketing Services: Competing Through Quality. New York: Free Press. ISBN 9780029030790. Guiltinan, J. P., Paul, G. W. & Madden, T. J., 1997, Marketing Management: Strategies and Programs. 6 th ed., New York, McGrawHill. James David power III, J.D power and associates online research in India available at url: http://en.wikipedia.org/wiki/J.D._Power_and_Associates Kessler, Sheila (2003). Customer satisfaction toolkit for ISO 9001:2000. Milwaukee, Wis.: ASQ Quality Press. ISBN 0873895592. Nunnally, Jum C., (1978) Psychometric Theory,2nd ed., New York: McGraw-Hill Olander, Folke. 1977. "Consumer Satisfaction - A Skeptic's View." in Conceptualization and Measurement of Consumer Satisfaction and Dissatisfaction. Ed. H. Keith Hunt. Cambridge, MA: Marketing Science Institute, 409-454. Parasuraman, Zeithaml and Berry (Leonard L) (1991), between 1985 and 1988 available at url: http://en.wikipedia.org/wiki/Customer_satisfaction Peterson, Robert A. and William R. Wilson. 1992. "Measuring Customer Satisfaction: Fact and Artifact." Journal of the Academy of Marketing Science 20 (Winter): 61-71. Zairi, M., 2000, Managing Customer Dissatisfaction Through Effective Complaint Management Systems, The TQM Magazine, 12 (5), pp. 331-335.

Websites
http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Car-buyers-in-India-search-the-web-forresearch/articleshow/5434814.cms http://en.wikipedia.org/wiki/Likert_scale http://en.wikipedia.org/wiki/Customer_satisfaction#cite_note-Marketing_Metrics-0#cite_noteMarketing_Metrics-0 http://en.wikipedia.org/wiki/File:Customer-satisfaction-scale.png

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http://en.wikipedia.org/wiki/Marketing http://www.scribd.com/doc/37466408/Webchutney-Digital-Automotive-Report-2010 http://www.google.com e-search articles on customer satisfaction in automobile industry- Google search.url http://www/google.com online automobile buyers in India Google Search.url http://en.wikipedia.org/wiki/Customer_satisfaction#cite_note-4#cite_note-4 http://www.pluggd.in/wp-content/uploads/2010/09/online_car_automotive_research.jpg

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