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Reference to Apco
Submitted to University of Calicut In partial fulfilment of the requirement for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
2009 – 2011
Manjesh Kumar K
Reg No. – FIAJMBA024 Batch 2009-2011 Email: firstname.lastname@example.org Under the Guidance of Prof. Prajith P K Faculty , FIMS
FAROOK INSTITUTE OF MANAGEMENT STUDIES FAROOK COLLEGE (PO) ,CALICUT 673 632 Acknowledgement
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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. I express my gratitude to Dr.Sainul Abideen, Director, Farook Institute 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
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I, Manjesh Kumar K student of MBA IIIrd 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 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 Chapter 1 1.1
Table of Contents Introduction Introduction
Page No 1 2
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1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 Chapter 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
Company profile SWOT analysis About HMIL Dealers profile Statement of problem Objective of study Data source Research instrument used Tools used for analysis Period of study Limitation of study Theoretical review Introduction Service Quality Five dimensions of service quality Characteristics of Service Quality Conceptual model Quality and satisfaction Service Quality through customer services Setting Quality Standard Quality Management in Automobile Sector Factors Influencing Service Quality in
3 4 7 9 11 11 12 12 13 13 13 14 15 16 18 19 20 21 22 24 24 25
Automobile Sector 2.11 2.12 Chapter 3 Chapter 4 4.1 4.2 Measurement of Service Researching Service Quality Data analysis and Discussion Findings, Recommendations, Conclusions Findings Recommendations 27 28 32 48 49 51
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4.3 4.4 4.5
Conclusions Appendices Bibliography
52 53 56
List of Tables
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3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18
Age of the Respondents Media used for booking vehicle service No. of days taken for vehicle delivery after service Complaints are constructively handled Technical knowledge of the staff Staffs are willing to listen customers individual point of view Workmanship of the service machine Responds towards customers query Service charges are reasonable Rank of the service quality dimensions in Apco Hyundai Dependency of Apco for future service Measure of satisfaction of Hyundai customers Mann-Whitney test : Service quality rate and vehicle delivery time Mann-Whitney test statistics Mann-Whitney test : Service quality and staffs provided services Mann-Whitney test statistics Kruskal-Wallis test : Service quality in complained handled Kruskal-Wallis test statistics
33 34 35 36 37 38 39 40 41 42 43 44 45 45 46 46 47 47
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Sl. No 1.1 2.2 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12
List of Figures HMIL Sales growth Conceptual model of service quality Age of the Respondents Media used for booking vehicle service No. of days taken for vehicle delivery after service Complaints are constructively handled Technical knowledge of the staff Staffs are willing to listen customers individual point of view Workmanship of the service machine Responds towards customers query Service charges are reasonable Rank of the service quality dimensions in Apco Hyundai Dependency of Apco for future service Measure of satisfaction of Hyundai customers
Pg. No 8 21 33 34 35 36 37 38 39 40 41 42 43 44
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CHAPTER 1 Introduction
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Services are commodities that cannot be stored or disappear in use, or as activities that require personal contact. The distinct characteristics of services are intangibility; perish ability, heterogeneity of the product, and simultaneously of production and consumption. Two economic units are required for a service to be produced – the consumer and the producer. While the consumer cannot retain the actual service after it is produced, the effect of the service SERVICES Services as commodities that cannot be stored or disappear in use, or as activities that require personal contact. The distinct characteristics of services 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 service managers have a clear understanding of consumer expectations and perceptions. Services may be provided by private or public agencies. These characteristics enhance the importance of certain marketing strategies that are unique to services marketing, such as service customization, managing evidence, making the service tangible, and synchronizing 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 requirements and specifications; once established, the quality goal of the various function of an organization is to comply strictly with these specifications. Many analyses of service quality have attempted to distinguish between objective measures of quality 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 components of 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 service work shop and the reliability of their services. This, however, is not the
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only element that makes up perceived service quality. Because services involve 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 automobile service work shop, functional quality is influenced by such factors as the environment in which queuing takes place and consumers perceptions of the manner in which queues are handled by the staff. Service quality is a highly abstract construct, in contrast to goods where technical aspects of quality predominate. Many conceptualizations of service quality therefore begin by addressing the abstract expectations that consumers hold in respect of quality. 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 quality when assessed against high expectations. Analysis of service quality is complicated by the fact that production and consumption of a service generally occur simultaneously, with the process of service production often being just as 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 Chung established Hyundai Auto Service in Seoul, South Korea at the age of 31 years. The name Hyundai was chosen for its meaning which in English translates to “modern.” The Hyundai logo is symbolic of the company's desire to expand. 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 in December 1967. In 1968 the company entered into a contract with 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 118 plants. The eight year journey provided Hyundai with assembly knowledge, blueprints, technical specifications, production manuals, and trained Hyundai engineers. Hyundai Motor Company achieved much in 2010 despite the challenging business climate. Numerous sections of the world media have praised Hyundai's high quality. 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 customers. Customer satisfaction is our number one value. Hyundai Motor Company considers its most important mission to be bringing the enjoyment of elegance and confidence to its customers, rather than just selling products. Hyundai strives to bring its customers luxury and style. Therefore, Hyundai will continue to stabilize its global management by establishing an effective cooperation system among production bases around the world. Hyundai Motor Company's management goal in 2010 is customer–oriented 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 manufacturer in India (J.D. Power IQS Study). TheSantro was chosen the best in the premium compact car segment and the Getz in the entry level mid - size car 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 of over 6000 trained sales personnel to guide their customers in finding the right car. Their high sales and customer care standards led the company to achieve higher 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 problems experienced with vehicle serviced, highest service quality, best in-service 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 appropriate hedge instruments depending on the prevailing market 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 (excluding excise) grew by 31% to Rs 93,456 million. Operating Profit 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 including the effects of demand dynamics, commodity prices, currency exchange 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 2009-10was year of continued growth for the Indian economy, whether this growth 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 technological research. What actually lie behind this betterment of the 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 throughout 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 segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform.
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HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. To cater to rising demand, HMIL commissioned its second plant in February 2008, which produces an additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units per annum. In continuation with its commitment to providing Indian 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 quick turnaround time to changing consumer 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 Motor India, country’s second largest auto manufacturer 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
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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 at Kasaragod. Their focus is to provide their customers with unique Sales and Service experience and their mission to be with them always and ensure a life-long 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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1.6 Statement of the problem In today’s intensely competitive, rapidly changing and highly complex environment characterize by the service quality 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. The reason to choose this as a study is that there is a tendency in the people at kasaragod by giving complaint for very small reason. There by Apco Hyundai 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.
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 is inevitable. Research methodology underlines the various steps involved in the particular research and systematically solving the problem with the objective of determining the fact. (a) Research approach The researcher adopted conclusive and descriptive to study service quality with special reference to Apco Hyundai. As the term suggests, conclusive research is meant to provide information that is useful in reaching conclusions or decision making. The purpose of the conclusive research is to provide a reliable or representative picture of the population with valid research instrument. Descriptive research describes data and characteristics of the population 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 primary data was collected with the help of a structured, non disguised questionnaire. The data collection was done by making the existing customers of 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 environment. Secondary sources were previous study reports, journals, magazines, newspapers, books with a view to supplement the primary data. The wide scope of the World Wide Web was used to collect the detailed information about the topic. The 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 from the customers, questionnaire was used as research instrument .The questionnaire are design to get the specific information about the specific problem so that the data after analysis and interpretation results in a better application of the problem .Hence the questionnaire for this study is prepared in the form of structured both closed ended and open ended consisting the series of formal questions to elicit clear relevant responses from the respondents. (a) Sampling plan Sampling plan includes sampling units used in the survey. It also includes 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 be willing to share it. Here the researcher collecting the information through 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.
Tools used for analysis
• • Non parametric tests-Man- Whitney test, Kruskal- Wallis test. Statistical tools like Mean rank.
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The following are the tools were used for the project.
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.
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(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. The reviews must explain the need and scope of the study under consideration. Customer satisfaction is always influenced by the quality of interactions between customers and the personnel involved in the contact services .In the last decade, the movement towards quality had started to spread from the manufacturing sector to the service sector. The shift of focus to quality is basic for the service business to survive the competition, get acceptance from society, and be able to achieve its missions. In principle, the two main things closely related to services are expected quality and experienced or perceived quality. The first is the customers' expectations of service 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 essentially intangible, heterogeneous, perishable, and entailing simultaneity and
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inseparability of production and consumption, services require a distinct framework for quality explication and measurement. Zeithaml et al. (1993) explored the gap between expectations and perceptions to better understand expectations as they pertain to customer assessment of service quality and to extend the theoretical work that exists in the customer satisfaction literature. Based on their study, the gap between customer expectations and perceptions as proposed by Parasuraman et al. (1985) can be conceptualized to reflect two comparison standards: desired service which reflects what customers want, and adequate service which indicates the standard 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 psychometrically sound but is also diagnostically robust enough to provide 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 reveals overall performance of automobile dealers in Mexico. The study comprehends 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 relationship to offer high customer satisfaction develop life time customer value and strengthen the customer-dealer relationship.
2.2 Service Quality
Quality is a strategic tool for attaining operational efficiency and improved business performance. Importance of quality to service firms and have demonstrated its positive relationship with profits, increased market share, returns on investment, customer
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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 with performance. Service quality involves a comparison of expectations with performance: it is a measure of how well the service level delivered matches customer expectations on a consistent basis. Service quality has been conceptualized as a function of consumer expectations towards the service situation and process, and of the output quality they perceived themselves to have received. The ultimate goal of service quality measurement is to assist managers in ensuring service quality and customer satisfaction. Measurement is a necessary step towards devising any action plan. However, 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 European perspective considers the quality of a service as perceived by customers consists of three dimensions: functional (the process of service delivery to customers), 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 identifying important quality dimensions of services: quality dimension development approach and critical incident approach. The first one uses different sources of 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 provider is likely to come under greater scrutiny, thereby increasing the possibility 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 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 of the company to inspire trust and 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 refers to the caring, individualized attention the service firm provides 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 time that the client is receiving it (eg: during a car model search or a 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 is a strong possibility that the same enquiry would be answered slightly 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
Service Delivery (Including pre and post contracts)
External Communication to Consumers
Translation of Perceptions into Service Quality Specs 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:Gap 1: Consumer expectation-management perception gap which is the gap between consumer expectations of service quality and management perceptions of these expectations: Gap 2: Management perception-service quality perception gap, that is, the gap between management perceptions of consumer expectations and the firm's service quality 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 service-perceived service gap, which is the gap between expected 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 consumer when confirmed or disconfirmed expectations exist with respect to a specific service transaction or experience’. Rust and Oliver suggested that customer satisfaction 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 expected quality, where as service quality refers to a global evaluation of a firm’s service delivery system. Perceived quality, on the other hand, may be viewed as a 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 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 is taken, the relationship between satisfaction and service quality is strong when examined from either direction. Satisfaction affects assessments of service quality 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 relates to managerial delivery of the service, while satisfaction reflects customers’ 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, often only with a receipt and within a 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. Customer service is normally an integral part of a company’s customer value proposition. In ideological way corporate world says that “customers have memories they will remember you, whether you remember them or not.” Further, 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 the point of view of an overall sales process engineering effort, customer 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 customer service phase of the relationship life cycle Service quality 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 customers and prospects access to information and customer service functions via Internet; supports effective 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 management business; handles customer installations; facilitates simple and complex services; supports services carried out at customer site or in-house repair centre (depot); supports involvement of external service providers; integrates contract management; checks customer warranties when services are performed; calculates services charges; integrates information from materials management, cost accounting, billing, and accounts receivable; monitors day-to-day operations; helps decision makers with strategic management issues. (d) Claims 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 precise specification of service standards serves a valuable function in communicating standard of quality which consumers can expect to 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 the standards of performance which the organization 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 subcontractors; product quality, cost, delivery and service. It is based on a preventive 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 that a customer-focused quality management is one way to create a sustainable 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’s needs and wants. To fulfil or even exceed their expectations 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 Factors Influencing Evaluation of Service Quality in Automobile 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 responsible for consumer’s perceptions. Opinions of 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 controls, is considered by consumers to be as important to quality as are defects 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 is a huge component of 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 customer service and a long network of customer service 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 compared to the actual performance received. If the recent experience exceeds prior 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 performance provides value (that is, it is priced low to reflect the mediocre quality). 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 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=na+nb 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 hypothesis H0 according to which k independent samples were drawn from the same population (or identical populations), * Against the alternative hypothesis H1 according to which these samples were drawn from populations sharing the same shape but with different central tendencies (medians). The observations must be on a numeric or ordinal scale (not just categorical). The samples do not need to have the same number of observations.
2.12Researching Service Quality
The development of reliable, easy-to-easy measures of service quality represents a key aspect of consumer behaviour and services marketing research. Indeed, an integral part of any organization’s attempt to still a ‘quality culture’ is a commitment to a process of ‘continuous improvement’. To support this systematic approach to quality measurement 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 incidence of surveys into the level of satisfaction that customers have experienced from service providers is increasing throughout the service sector. 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 of satisfaction provided. Today, members of the public are in constant receipt of literature from a wide range of service providers asking for comments on the quality of service that they have 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 regular basis to study their opinions about the quality of service provided. On other occasions, they may be employed to monitor the introduction of a new or revised service – for example a panel could be brought together by a building society following the experimental introduction of a new branch design format. The use of continuous panels can offer organizations a means of anticipating problems and may act as an early warning system for emerging issues of importance. Retailers have been involved in the operation of continuous panels contribute to monitor their level of service provision as well as letting panels contribute to new product development research. Method is quite 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 increasingly popular method of evaluative research involves tracking the satisfaction of individuals with particular transactions that they have recently been involved in. This is a root cause for management to judge correct performance, particularly customers’ satisfaction with the contact personnel with whom they have interacted, as well as their
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overall satisfaction for the service.. For example, the Automobile Association surveys customers who have recently been served by its breakdown service and many building societies invite customers who have just used their mortgage 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 investigations use a combination of qualitative and quantitative approach. Many professional services organization have employed such studies in order to develop future market strategies. Their aim is to achieve a better understanding of how customers view an organization. In other words, to help the firm itself as clients see it. The 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 use of ‘mystery customer’ is a method of auditing the standard of service provision, particularly the staff involvement in such provision. A major difficulty in measuring service quality is overcoming the non-conforming of staff with performance 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 surveys is therefore to monitor the extent to which specified quality standards are actually being met by staff. This method of researching actual service provision involves the use of trained 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. For many companies, this may be sole method of keeping in touch with customers. Complaints can be made directly to the provider or perhaps indirectly
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through an intermediary or a watch dog body. Complaints by customers, referring to instances of what they consider poor-quality service may, if treated constructively, provide a rich source of data on which to base policies for improving service quality. However, customer complaints are at best an inadequate source of information. Most customers don’t both to complain, remain dissatisfied and tell others about their dissatisfaction. Others simply change to another supplier and do not offer potentially valuable 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 of service delivery is breaking down. As part of an overall 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 and provides an opportunity to interact with them over their matters of concern. As well as eliciting customers’ views on these issues in particular, complainants can also contribute views about customer service in general. Many companies have gone to great lengths to make it easy for customers to complain, for example by creating free phone telephone lines and aking comment 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 valuable information for planning quality service provision. One way in which formal feedback from staff can be built into a systematic research program is the operation of a staff suggestion scheme. The proposals which staff may make about how services could be provided more efficiently and/or effectively certainly do have an important role to play in moving service quality. Research into employees’ needs can also identification of policies which improve
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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 20-30 30-40 40-50 50 & Above Total
Source: Primary Data
Number of Respondents 15 6 10 19 50
Percentage 30 12 20 38 100
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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 Telephone Internet Personally Other media Total
Source: Primary Data
Number of respondents 27 5 15 3 50
% of Respondents 54 10 30 6 100
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. In the absences of computer knowledge only 10% of 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
11 16 14
22 32 28 18
More than 5 days 9
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 Strongly agree Agree Can’t say Disagree Strongly disagree
Source: Primary Data
No. Of respondent 12 25 8 3 2
% of respondent 24 50 16 6 4
Figure 3.4: Complaints are constructively handled.
Source: Primary Data
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From this graph it can be easily understand that more than 24% of respondents strongly agree that their complaints are constructively handled and 50% of respondents agree with this statement.16% of respondents stay in neutral position. 6%of respondents are disagreed with this statement and 4% of are strongly disagree. It pointed that company should give special attention to this area.
Staffs Technical Knowledge Table 3.5: Technical knowledge of the staffs Satisfaction level Highly Satisfied Satisfied Neutral Unsatisfied Highly unsatisfied
Source: Primary Data
No of respondents 35 12 3 0 0
% of respondents 70 24 6 0 0
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 with the technical knowledge of the staff. 24% of respondents are satisfied.6% of respondents take a neutral position. None of them are unsatisfied. Technical 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 Yes No No of respondents 36 14 % of respondents 72 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 to listen individual point of view. Nearly 28% of customers are not satisfied with statement.
Workmanship of the Service Machine Table3.7: Workmanship of the service machine Satisfaction level Highly satisfied Satisfied Dissatisfied Highly dissatisfied
Source: Primary Data
Number of respondents 10 35 4 1
% of respondents 20 70 8 2
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 Excellent Very good Good Average Poor
Source: Primary Data
No. of respondents 6 26 12 4 2
% of respondents 12 52 24 8 4
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: service charges are reasonable Opinion Yes No of respondents 20 % of respondents 40
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No Neutral opinion
Source: Primary Data
Figure 3.9: service charges are reasonable
Source: Primary Data
Inference: From the analysis it is clear that Service charge are not 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
Table 3.10: Rank of service quality dimensions in Apco Hyundai
Sl No : 1 2 3 4 5 Dimensions R1 R 2 8 R 3 9 R 4 R 5 Weight Weigh % t sum 141 156 18.66 20.64 21.17 22.89 15.87 Ra nk 4 3 2 1 5
Tangibles Reliability Responsive ness Assurance Empathy Total
9 9 12 14 6
13 11 (9*5)+(8*4)+(9*3)+(13*2)+ (11*1) 9 (9*5)+(14*4)+(10*3)+(8*2) +(9*1)
14 10 8 8
12 14 4 6 7
(12*5)+(8*4)+(12*3)+(14*2 160 )+(4*1) (14*5)+(15*4)+(8*3)+(6*2) +(7*1) 173 120 756
15 8 5
19 (6*5)+(5*4)+(11*3)+(9*2)+ (19*1)
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 1st rank in service quality dimensions.2nd, 3rd, 4th 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 Yes No No opinion
Source: Primary Data
No of respondents 43 0 7
% of respondents 86 0 14
Figure 1.13: Dependency of Apco for future service
Source: Primary Data
Inference: From the analysis it is inferred that 86% of 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 Highly satisfied Satisfied Neutral Unsatisfied Highly unsatisfied Total
Source: Primary Data
No of respondents 10 34 6 0 0 50
% of respondents 20 68 12 0 0 100
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. This indicates of the trustworthiness the brand and the quality of services they deliver.
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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 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 delivery Rate service quality Yes No Total
Source: Primary Data
N 26 24 50
Mean Rank 33.00 17.38
Sum of Ranks 858.00 417.00
Table 3.14: Mann-Whitney test Test Statistics Rate organization Mann-Whitney U Wilcoxon W Z Asymp. Sig. (2-tailed)
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
117.000 417.000 -4.123 .000
is an association between service quality and time vehicle delivery.
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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 yes no Total
Source: Primary Data
N 21 29 50
Mean Rank 32.74 20.26
Sum of Ranks 687.50 587.50
Table 3.16: Mann- Whitney test Test Statistics Rate organization Mann-Whitney U Wilcoxon W Z Asymp. Sig. (2-tailed)
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
152.500 587.500 -3.253 .001
is an association between service quality and staff provided services.
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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 strongly agree agree can't say disagree strongly disagree Total
Source: Primary Data
N 11 27 7 3 2 50
Mean Rank 40.23 27.28 11.36 4.50 1.50
Table 3.18: Kruskal- Wallis test Test Statistics Rate service quality Chi-Square Df Asymp. Sig.
Source: Primary Data
35.402 4 .000
From the table no 3.18: Kruskal- Wallis test was found to be significant in Chi-
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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Findings, Recommendations and Conclusion
The findings of this study have important practical implications to management of quality of the Apco Hyundai automobile services. The results of the study make a valuable
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contribution for enhancing perceived service quality of automobile services. 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 of the staff. This 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 individual point of view. Nearly 28% of customers are not satisfied 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 are 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 quality dimensions graph assurance have 1st rank in service quality dimensions.2nd, 3rd, 4th and 5th is occupied by the responsiveness, reliability, tangibles, empathy respectively.
From the 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 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 Hyundai Company in all aspect. None of the customers opined that they are dissatisfied. This indicate of the trustworthiness the brand and the quality of services the deliver.
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To set up a complaint handling cell for reducing customer grievances. Better to provide customer pick and drop facility. This enhances customer 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 delight .Therefore , it is essential that the dealer have the research and analysis method that links staff performance engagement contribute to customer value. directly to the customer behaviour ,so that they can hire , train, recognise and reward employees for how they
To conduct customer get together program. It helps for easily understanding 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. Customer care employees should be given soft skill training to improve 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.
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 is the best dealer of Hyundai. Customers of Apco Hyundai have given positive response towards overall service quality. Service quality plays a vital in determining 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.
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 book your vehicle for service at Apco? Telephone Personally Internet Others___________ 2. Are you able to book your vehicle on the day you prefer? Yes 3. No
How do you rate organization responds towards customer’s query? Excellent Very good Good Average Poor
4. No of days taken for vehicle delivery after service 0-1 5. 1-3 3-5 5&Above
Staffs provide prompt and timely services to you. Yes No
6. Do you satisfied with workmanship of the service machine? Highly satisfied 7. Satisfied Dissatisfied Highly dissatisfied
Your complaints are constructively handled
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Strongly agree Strongly disagree
8. Is the vehicle delivered back to you on time? Yes No
9. Before picking the vehicle, after servicing, are you being briefed on what 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 point of view. Yes No
11. Employees deliver appropriate services to you. Strongly agree Strongly disagree
12. Rank your responds towards Service Quality dimensions in Apco Hyundai ?
13. Are you being, called on, after service, to find whether all your vehicle problems have been resolved or not? Yes No
14. Do you satisfied with technical knowledge of staffs, for handling the problems? Highly satisfied 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 satisfied Completely satisfied
19. Which are the areas we can improve upon, to provide you with better service? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ __
4.5 Bibliography Books
RanjithKumar , Research 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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