CUSTOMER SATISFACTION ON ORRA DIAMONDS"

Submitted to Mangalore University, in partial fulfillment of the requirements of the Bachelor of Business Management degree course.

By KHAN ALIYA BASHIR Reg. No:060230261

Under the Guidance of

MRS. ANNETTE SONIA CHETAN Lecturer Srinivas Institute of Management Studies Mangalore

SRINIVAS INSTITUTE OF MANAGEMENT STUDIES Pandeshwar, Mangalore - 575001 2009-2010

INTRODUCTION TO CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depend on the offers performance in relation to the buyer expectation. In general satisfaction is a person's feelings of pleasure or disappointment resulting from comparing a products perceived performance relation to his/her expectations. If the performance falls short of expectation, the customer is dissatisfied. If the performance matches the expectation customer is satisfied. If the performance exceeds the expectation the customer is highly satisfied. Customer satisfaction cannot be very difficult. After all you either satisfied with the services you receive or you are not. If you dont you are not. If it is that eas y, then obtaining people's opinion about how satisfied they are with relatively straight forward matter- or is it?. Customer satisfaction is a marketing tool and a definite value addad benefit. It is often perceived by customers as important as the primary product or service your organisation offers. It looks at what is involved from 3 different angles, the first is from the view of an organisation wishing to understand, and measures, how satisfied its customer are with the products and services they receive from it. The second is from the perspective of a research agency that has been asked to obtain feedback from customers and about their experiences when dealing with companies. Finally it considers the issue from the perspective of consumers who participate in surveys, including both business customers and members of general public

MEANING OF CUSTOMER SATISFICATION

Customer satisfaction is a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and part of the four prospective of balanced score card. IN a competitive market place were businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy customer satisfaction drives successful private sector business. High performing businesses have developed principles and strategies for achieving customer satisfaction. This paper presents a framework or set of ideas for using customer satisfaction principles and strategies to improve the quality responsiveness, and possibility of public sector privately provided services in vulnerable communities. The framework suggested that resident who live in tough neighbourhoods can be supported through customer satisfaction strategies to become empowered individuals

who informed perspectives influence decisions about what, how, when, and where services are available to them. Customer satisfaction is the customers response to the evaluation of the perceived discrepancy between prior expectation and the actual performance of the product as perceived after its consumption.

DEFINITION
Codotte, woodruff and Jenkins (1987) define customer satisfaction as "conceptualized as a feeling developed from an evaluation of the experience." HERE, the timing of satisfaction response is driving consumption. BUT there is general agreement with kotler (2003) that "customer satisfaction is a person's feeling of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectation." In short customer satisfaction is "The provision of goods or services which fulfil the customer expectation in terms of quality and service, in relation to price paid."

IMPORTANCE OF CUSTOMER SATISFACTION IT costs atleast 7 times more to source a new customer than it does to retain existing one A 'satisfied' customer tells 5-7 people in a year whilst a 'dissatisfied' customer will tell 14-15 people. Companies can boost profits anywhere from 25% to 125% by retaining a mere 5% more of their exciting customers. Totally satisfied customers were 6 times more likely to use that services and commend it than ' satisfied' customers. Customers who have a bad experience with you and do not complain are only 37% likely to still do business with you. Customers who have an opportunity to complain and the complaint is achieved are 95% likely to still do business with you.

Factors of customer satisfaction yqilruq f ecivres reliability of service knowledge of the staff Being kept informed of progress The way service kept its promises The way the service handled any problem Friendliness of staff How sympathetic staff were to your needs Speed of enquiries Number of time had to contact the service.

Measuring customer satisfaction Organizations are increasingly interested in retaining existing customers while targeting non-customers; measuring customer satisfaction provides an indication how successful is the organisation at providing products and/or services to the market place. Customer satisfied is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviours such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer can compare the organizations products. Because satisfaction is basically a psychological state, care should be taken in effort of quantitative measurement, although a large quantity developed. Work done by berry (bart allen) and brodewr between 1990 and 1998 defined ten 'quantity values' which influence satisfaction behaviour, further expanded by berry in 2002 and known as the ten domains of satisfaction. The usual measures of customer satisfaction involve a survey with a set of statements using a likert technique or scale. The customer is asked to evaluate each

statement and in term of their perception and exceptation of performance of the organization being measured.

The university of michigan's American consumer satisfaction is a scientific standard of consumer satisfaction academic research has shown that the national ACSI score is a strong predictor of gross domestic product growth, and an even stronger predictor of personal consumption expenditure (PCE) growth. On the micro economic level, research has shown that ACSI data predicts stock market performance, both for market indices and for individually traded companies. Increasing ACSI scores has been shown to predict loyalty, word of mouth recommendations and purchase behaviour. The ACSI measures consume satisfaction annually for more than 200 companies in 43 industries and 10 economic sector. In addition to quarterly reports, the ACSI. Methodology can be applied to private sector companies and government agencies in order to improve loyalty and purchase intent. The net promoter score is a management tool that can be used to guage the loyalty of a firms consumer relationships. It serves as an alternative to traditional consumer a single question (usually, "how likely is it that you would recommend us to a friend or colleague?") based on their responses, consumers can be categorized into one of 3 groups, promoters, passives and detractors. In the net promoters are viewed as valuable assets that drive profitable growth because of their repeat/increased purchases, longevity and referrals, while detractors are seen as liabilities that destroy profitable growth because of their complaints, reduced purchases/defection and negative word of mouth. The kano model is a theory of product development and consumer satisfaction developed in the 1980's by professor noriaki kano that classifies consumer preferences into 5 categories: attractive, one dimensional, must be indifferent, reverse. The kano model offers some insight into the product attributes which are perceived to be important to consumers. kano also produced a methodology for mapping consumers responses to questionnaires onto his model. One of the newest and most innovative consumer satisfaction measurement methodologies is called gustometria. Gustometria is real time measurement of consumer and employee satisfaction, consumers are invited to answer a short survey by touching the "gustometer" screen with their fingers. The responses are collected immediately by gustometria serves which tabulate the results in real time. Management can then log into their private website and use the sophisticated business intelligence reports which are built into the gustometria system.

HISTORY OF DIAMONDS THE name diamond is derived from ancient greek adawa (a'damas), "people", "unalterable", "unbreakable"," untamed". Diamonds are thought to have been first recognised and mined in india, were significant alluvial deposits of stone could be found many centuries ago along the rivers penner, Krishna,and Godavari. Diamonds have been known in india for atleast 3000 years ago but mostly likely 6000 years. Diamonds have been treasured as gemstones since their use at religious icons in ancient india. Their usage in engraving tools also dates to early human history. The popularity of diamonds has been risen since 19th century because of increased supply improved cutting and polishing techniques, growth in the world economy, and innovative and successful campaign. In 1772 antonine lavoisiee used a lens to concentrate the rays of the on a diamond in an atmosphere of oxygen and showed that the only product of combustion was carbon dioxide providing that diamonds is composed of carbon. Later in 1797, Smithson tennat repeated and expanded that experiment by demonstrating the burning diamond and graphite (charcoal) releases the same amount of gas he established the chemical equivalence of these substances. Diamond is the hardest natural material known , where hardness is defined as resistance to scratching and is graded between (softest) and 10 (hardest) using the mobs scale of mineral hardness. Diamond has a hardness of 10 (hardest) on this scale. Diamond's hardness has been known since antiquity, and is the source of its name. Diamond's hardness depends on its purity, crystalline perfection and orientation. Therefore whereas it might be possible to scratch some diamonds with other materials, such as boron nitride, the hardest diamonds can be only scratched by other diamonds. In particular, nano crystalline diamond aggregrates were measured to be harder than any large crystal diamond. Those aggregrate are produced by high pressure high temperature treatment of graphite. The hardest natural diamonds originated mostly from the copetion and bingara fields located in the new England area in new south wales Australia. These diamonds are generally small, perfect and are used to polish other diamonds.

Identification Diamonds can be identified by their huge thermal conductivity. Their high refractive index is also indicative, but other materials have similar refractivity. Diamonds cut glass, but this does not positively indentify a diamonds because other materials such as quartz, also lie above glass on the mohs scale and can also cut it. Diamonds can scratch other diamonds but this can result in damage to one or both stones.

PRODUCTION Approximately 130 million carats of diamonds are mined annually with a total value of nearly US$ billion and about 100000kg are synthesized animally. Roughly 49% of diamond originate from central and southern Africa ,although significant source of the mineral have been discovered Canada , India, Russia, Brazil, and Austria's they are mined from kimberlitic and lamtroite volcanic pipes , which can bring diamond crystals , originate from deep within the earth where high pressure and temperature enable then to form , to the surface . the diamond supply is controlled by a limited number of powerful business and is also highly concentrated in a small number of location around the world ,

Company profile

A sterling legacythe finest diamondsexclusive creations Thats orra the diamond destination! A spark born in 1888 was carried for over a century to metamorphose into orra. From sculpting and manufacturing diamonds to crafting and retailing the finest diamond jewellery, orra has come a long way since its inception. Orra the diamond destination is indias largest and only exclusive diamond jewellery retail chain. It is a part of the rosyblue group the worlds largest diamond manufacturing company with a presence across 15 countries headquartered in antwerp, belgium (www.rosyblue.com). The group is among the largest sight holders and india's largest diamond and platinum retailer. Today, 1 in every 25 diamonds in value terms is a rosyblue diamond. Set in an international format, orra retails through 35 exclusive high street boutiques in 23 cities across india. These boutiques have today become the ultimate destination for the choicest diamonds in the country. Within two years of its launch, orra was counted among the top 5 jewellery brands in the country. In 2007, it earned the prestigious distinction of being voted as the best jewellery retail chain of the year

Banking on the rich diamond heritage orra offers the finest diamonds set in artistically inspired designs. Be it a perfectly sculpted solitaire or a classic handcrafted neckpiece, at orra, there is a diamond for every occasion. Define a diamond's size, shape or colour and orra will make your dream come true! Orra diamonds are etched out by artisans who have inherited the 700-year-old legacy of the belgian master craftsmen, the inventors of diamond sculpting. Discover the luminous drops of mystique all the way from belgium!

ORRA, part of the Rosyblue Group, is the only jewelry company in India which has tie-ups with the three leading jewelry organizations namely, DTC (De Beers), PGI (Platinum Guild India) & WGC (World Gold Council). Name a size, define a shape, state the color and ORRA will have a diamond to make your dream come true. We can proudly claim that 1 in every 25 diamonds is a Rosy Blue diamond. The company has come a long way from sculpting diamonds to crafting the finest diamond jewelry. A legacy that has spanned centuries, overwhelming the world with its brilliance can be summed up as ORRA. A word that epitomizes the person it was created for - her spirit, her grace and the invisible glow that surrounds her. At ORRA, diamonds are sculpted to be as special as the person who buys it. Set in the international store format, ORRA has 33 exclusive diamond boutiques across India. The ORRA color logo draws strengths from our foundation. A sterling legacy; Superior diamonds; unique product offerings. With the launch of ORRA, the focus on building inheritance revolved around our international lineage and centuries of presence. These were made relevant to the consumer by stressing on their ramification in terms of product focus. We have attempted to differentiate our product offerings and create new product concepts. Whilst the overall positioning is of a serious diamond player, the aim is to entice consumers through product offerings tailor-made to their requirements. Examples of these innovative and differentiated products:

Title of the study :"CUSTOMER SATISFACTION ON ORRA DIAMONDS

Type of the research The type of the research done here is of descriptive in nature. The data is collected and presented as it is by means of survey collected. Objective of the study Primary objective: To analyze the customer satisfaction of 'orra diamonds' Secondary objective: To make assessment of the consumers acceptance and the determinants of their purchase decision (survey of customer through questionnaire) To study the attitude of customers towards the facilities provided at the center. Scope of the study This study helps in understanding how satisfied the customers are with orra diamonds. This study also helps in knowing which of the diamonds type are preferred. The other scopes being it enables us to know the quality of diamonds and service provided.

Research methodology Sample size: The study is done by collecting data from a sample size of 50 customers. Sampling method: This study is used random sampling method Sources of data collection method: The study is done by collecting primary data as well as secondary data. A primary data: It is collected by supplying questionnaire to the customers. B. secondary data: IT is collected from various other sources such as websites, books related to customer satisfaction and officials of orra. A sample size of 50 customers owning to 'orra' has been selected for the study.

Limitations of the study The study is confined only to the customers of mangalore city The study is limited only to 50 ORRA customers only. The conclusion arrive at are my limited knowledge and data that was at my disposal Lack to time to get more specific information is another reason.

1. AGE TABLE 1 Criteria 20-35 35-45 45-55 55 and above Total Number of respondents 30 9 6 5 50 Percentage 60% 18% 12% 10% 100%

GRAPH- 1

10%
12%

18%

60%

55 and above

From the table and chart 5.1it is evident that 60% of customer satisfied are between the age 20-35 and 18% are between the age 35-45 and 12% are between the age group 45-55 and 10% are between the age group 55 and above. so it is observed that majority of customer satisfied are between the age 20-35

TABLE

GENDER2. .1

Criteria Male Female Total

Number of respondents 30 20 50

Percentage 60% 40% 100%

GRAPH-2

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% SINGLE MARRIED

Series1

From the table and chart no 5.2 it is evident that 60% customer satisfied are male and 40% are female. So it is observed that majority of customer satisfied are male

TABLE 3 3. MARTIAL STATUS

Criteria Single Married Total

Number of respondents 26 24 50

Percentage 52% 48% 100%

GRAPH -3

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% SINGLE MARRIED

Series1

From the table and graph no 5.3 it is evident that 52% customer satisfied are single, and 48% are married. So it is clear that more number of customer satisfied are single.

TABLE 4

4. QUALIFICATION Criteria Graduate Post graduate Other Total Number of respondents 25 15 10 50 Percentage 50% 30% 20% 100%

GRAPH -4

20%

Graduate 50% Post graduate Other 30%

From the table and chart no 5.4 it is evident that 50% respondents of orra diamonds are graduate, and 30% are post graduate and other are 10% .so it is clear that majority of respondents are graduate

TABLE - 5 ANNUAL INCOME

Criteria 100000-200000 200000-400000 400000-600000 600000-and above Total

Number of respondents 15 17 8 10 50

Percentage 30% 34% 16% 20% 100%

GRAPH -5

20% 30% 100000-200000 200000-400000 16% 400000-600000 600000-and above

34%

From the table and graph 5.5 it is evident that respondents annual income from 100000-200000 are 30% and 200000- 400000 are 34% and 400000-600000 are 16% and 600000 and above are 20%. So it is clear that majority no of respondents have annual income of 200000 400000.

Table -6 AWARE OF ORRA DIAMOND Criteria Yes No Total Number of respondents 45 5 50 Percentage 90% 10% 100%

Graph -6

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Series1

From the table and graph 5.6 it is evident that 90% of respondents are aware of orra diamonds and 10% are not aware . so it is clear that majority of respondents are aware of orra diamonds

Table -7 KNOWN ABOUT ORRA DIAMOND Criteria Publicity Newspapers Television Radio Family and friends Banners Posters Total Number of respondents 14 4 3 2 10 10 7 50 Percentage 28% 8% 6% 4% 20% 20% 14% 100%

From the table and graph 5.7 it is evident that 28% of respondents came to know about orra diamonds through publicity , 8% through newspapers,6% through television, 4% through radio, 20% through banners and 14% through posters. So it is clear that majority of customers came to know about orra diamonds through publicity.

Table -8 SERVICES PROVIDED BY ORRA AND ITS COMPETITORS Criteria Yes No Total Number of respondents 30 20 50 Percentage 60% 40% 100%

Graph- 8

40% Yes No 60%

From the table and graph 5.8 it is evident that 60% of respondents are satisfied with services provided by orra than its competitors, and 40% are not satisfied. So it is clear that majority of respondents are satisfied with the services than its competitors.

Table -9 SATISFIED WITH OFFERS AND DISCOUNTS Criteria Yes No Total Number of respondents 40 10 50 Percentage 80% 20% 100%

Graph -9
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Series1

From the table and graph 5.9 it is evident that 80% are satisfied with offers and discounts and 20% are not satisfied. So it is clear that majority no of respondents are satisfied with offers and discounts.

Table -10 SATISFIED WITH VALUE OF MONEY

Criteria Yes No Total

Number of respondents 34 16 50

Percentage 68% 32% 100%

Graph 10

32% Yes No 68%

From the table 5.10 it is evident that 68% are satisfied with the value of money, and 32% are not satisfied with the value of money. So it is clear that majority no of respondents are satisfied with the value of money.

Table -11 WHICH YOU GIVE IMPORTANCE Criteria Quality Offers Variety of design Service Discounts Total Number of respondents 20 5 10 10 5 50 Percentage 40% 10% 20% 20% 10% 100%

Graph -11

10% Quality 20% 40% Offers Variety of design Service Discounts 20% 10%

From the table 5.11 it is evident that 40% of respondents give importance to quality,10% to offers ,20% to variety of design,20% to service and 20% to discounts. So it is clear that majority of respondents give importance to quality.

Table -12 HOW TO ASSURE THE QUALITY OF JEWEL Criteria Yes No Total Number of respondents 34 16 50 Percentage 68% 32% 100%

Graph -12

32% Yes No 68%

From the table and chart 5.12 it is evident that 68% of respondents know to assure the quality of jewel, and 32% dont know to assure the quality of jewel. So it is clear that majority of respondents know to assure the quality of jewel.

Table -13 MORE IMPORTANCE TO QUALITY ASSURANCE IN CASE OF DIAMONDS Criteria Yes No Total Number of respondents 34 16 50 Percentage 68% 32% 100%

Graph -13

70% 60% 50% 40% 30% 20% 10% 0% Yes no 32% 68% Series1

From the table and chart 5.13, it is evident that 68% of respondents give more importance to quality assurance and 32% of respondents dont give importance. So it is clear that majority of respondents give importance to quality assurance.

Table 14 FIRST IN MIND WHEN YOU THINK ABOUT ORRA Criteria Logo of ORRA diamond Purity of diamond Tagline Total Number of respondents 10 25 15 50 Percentage 20% 50% 30% 100%

GRAPH 14

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Logo of ORRA diamond Purity of diamond Tagline

Series1

From the table and graph 5.14 it is evident that 20% of respondents first think about logo of orra diamonds, 50% about purity of diamond, 30% about tagline. So it is clear that majority of respondents think about purity of diamonds.

Table- 15 RATE OF PRICING FACTOR OF ORRA Criteria Excellent Average Below average Total Number of respondents 16 29 5 50 Percentage 32% 58% 10% 100%

Graph -15

60% 50% 40% 30% 20% 10% 0% Excellent Average Below average Series1

From the table and chart 5.15 it is evident that 32% of respondents felt excellent about the rate of pricing, 58% were average, 10% were below average. So it is clear that majority of respondents are average.

Table 16 SATISFIED WITH THE PRODUCT Criteria Extremely satisfied Very satisfied Unsatisfied Total Number of respondents 15 30 5 50 Percentage 30% 60% 10% 100%

Graph -16

10% 30% Extremely satisfied Very satisfied unsatisfied

60%

From the table 5.16 it is evident that 30% of respondents are extremely satisfied with the product, 60% are very satisfied, 10% are unsatisfied. So it is clear that majority of respondents are just satisfied with the product.

Table -17 CUSTOMER REPRESENTATIVE HANDLED REQUIREMENT QUICKLY Criteria Strongly agree Agree Neutral Disagree Total Number of respondent 16 20 10 4 50 Percentage 32% 40% 20% 8% 100%

Graph -17

40% 35% 30% 25% 20% 15% 10% 5% 0% Strongly agree Agree Neutral Disagree Series1

From the table and chart 5.17 it is evident that 32% of respondents strongly agree that their requirement was well hand led by customer representatives quickly, 40%

felt it was confusing, 20% felt it was neutral, 8% felt it wasnt confusing. So it is clear that requirement handled was confusing.

Table -18 CUSTOMER REPRESENTATIVE HAD KNOWLEDGE ABOUT PRODUCTS Criteria Yes No Total Number of respondents 36 14 50 Percentage 72% 28% 100%

Graph -18

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Series1

From the table 5.18 it is evident that 72% of respondents are satisfied that customer representatives had good knowledge about the product, 28% of respondents are not satisfied. So it is clear that majority of customers are satisfied with the representatives knowledge about the the product.

Table 19 RECOMMEND ORRA TO OTHER MANGALOREANS

Criteria Yes No Total

Number of respondents 30 20 50

Percentage 60% 40% 100%

Graph 19

80% 60% 40% 20% 0% Yes No Series1 Series1

From the table5.19 it is evident that 60% of respondents would recommend to other mangaloreans, and 40% would not recommend to other mangaloreans. So it is clear that majority of respondents would recommend to others.

Table 20 SATISFIED WITH QUALITY OF ORRA Criteria Yes No Total Number of respondents 37 13 50 Percentage 74% 26% 100%

Graph -20

26%

Yes No

74%

From the table and graph 5.20 it is evident that 74% of respondents are satisfied with the quality of orra diamonds, 26% are not satisfied. So it is clear that majority of respondents are satisfied with the quality of orra products.

Table -21 SATISFIED WITH AMBIENCE AND DISPLAY OF ORRA Criteria Yes No Total Number of respondents 34 16 50 Percentage 68% 32% 100%

Graph -21

32% Yes No 68%

From the table 5.21 it is evident that 68% of respondents are satisfied with the ambience and display of orra diamonds, and 32% are not satisfied with ambience and display of orra diamonds. So it is clear that majority of respondents are satisfied with the products .

Table -22 SATISFIED WITH DESIGNS AVAILABLE AT ORRA Criteria Yes No Total Number of respondents 30 20 50 Percentage 60% 40% 100%

Graph 22

80% 60% 40% 20% 0% Yes No Series1 Series1

From the table and chart 5.22 it is clear that 60% of respondents are satisfied with the designs available at orra products, 40% of respondents are not satisfied. So it is clear that majority of respondents are satisfied with the designs available at orra.

Table 23 WHY YOU PREFER ORRA Criteria Good quality Less price as compare to others Location Number 26 6 10 8 50 Other Total Graph -23 Percentage 52% 12% 20% 16% 100%

Good quality 12% 36% 52% 16% 20% Less price as compare to others location Other

From the table and chart 5.23 it is clear that 52% of respondents prefer good quality , 12% prefer less price as compare to other, 20% prefer location and 16% prefer other. So it is clear that, majority of respondents prefer good quality.

6. FINDINGS It was found that majority of the customers where in between the age group 20-35 It was found from the study that satisfied customers were more number of male when compared to female. It was that more number of single are satisfied with the orra products. It was found that 50% are graduates . It was found from the study that

7.SUGGESTION AND CONCLUSION

Advertisements: ORRA can use more aggressive advertising strategies. They can make use of local medias to have a better reach in the society Financing facility: orra can tie up with some of the major financials in the country to provide customers loan facilities Better designs: ORRA can provide for a variety of designs to meet the ever growing need of the customers Schemes: ORRA can introduce some new schemes to attract customers Customization: ORRA can give customers the choice of customizing their jewellery under the experts from ORRA

Conclusions Customers needs are always changing and meeting the same is really tough. Hence ORRA should constantly innovate its design to improve the customer satisfaction. And try and build up brand loyalty with its customers. ORRA can use the findings, suggestions given in the study in order to maximize its market share

8.ANNEXURE

9.BIBLOGRAPHY