A STUDY ON CUSTOMER SATISFACTION OF FMCG IN PATHANJALI

PRODUCTS

CHAPTER I

INTRODUCTION

Customer is the king; this is all the more apt for today's business environment where,
all other factors remaining more or less constant, it is the value addition to the customer that
is making all the difference.

Customer satisfaction depends on the performance relative to a expectations.

A key premise in customer satisfaction is understanding the needs and meeting or exceeding
the expectations of customers. Furthermore, this is done while optimally using resources.
While most companies have developed strategies to improve quality and external customer
service, internal customer satisfaction is a much neglected component of quality
improvement. To this end, it is important to emphasize that total customer satisfaction can be
attained only if all employees devoted to external customer satisfaction can work together
and assist each other to achieve the common objective, when the internal customer isn't
satisfied, Relationships with the external customer suffer. So, it is suggested to adopt
customer oriented approach to keep the internal customer satisfied and motivated, who in turn
will focus their attention and energy upon meeting the requirements of their customers,
thereby maximizing the customer, thereby maximizing the customer satisfaction.

Customer satisfaction survey is the process to monitor the satisfaction quotient of

their people. In internal satisfaction surveys therefore tracks the return on your investments in
keeping your people happy, high salaries, a quality culture, a healthy work environment.

Last, but not the least internal customer satisfaction survey helps in finding the
critical areas, which need further improvement.
NEED OF INTERNAL CUSTOMER SATISFACTION SURVEY ARISES DUE TO
FOLLOWING REASONS.

 Rapidly growing organization.

 High or growing turnover rate
 Excessive rumor's
 Highly competitive industry.
 Planned and recent organizational changes.

BENEFITS OF AN INTERNAL CUSTOMER SATISFACTION SURVEY

Ø It creates better teamwork and much improved work process.

Ø It leads to higher output and superior quality product.

Ø It decreases the turnover.

Ø Reduced overheads, and increase customer satisfaction level's inter departmental.

Ø It enhance communication and hence helped in team building, hence there is less wasted
effort caused by lack of common purpose and poor communication.

Ø A good employee feedback survey improves employee attitude and boosts morals.

INTERNAL CUSTOMER-SUPPLIER RELATIONSHIP

In an organization, from procuring an order to delivering the final product, a series of

activities takes place. There are different depts. To which these activities are assigned eg.
Raw material for production is purchased by one dep’t. And supplied to other deptt. Where
the production initiates. Thus every debt. Play an important role of a customer and supplier
as well.

The importance of a customer is well known from the maxim, “Customer is the king”.
Earlier, organizational administrators concentrated only on the satisfaction of external
customers i.e. the target market. But now it is being realized that if the internal customer is
satisfied the quality as well as the quantity is also appreciable. Higher the customer
satisfaction index, higher will be the quality of the production. This results in the satisfaction
of external customers and ultimately brings profits & prosperity to the organization. It can
benefit the organization in following ways:-

1) There will be less employee turnover.

2) Optimum utilization of available resources will take place.

3) High job satisfaction and feeling of belongingness in employees.

4) Qualitative product.

5) Least conflicts in the departments.

6) Good reputation in the market and many more benefits can be accrued.

Thus, every deptt. Should ensure that the customer deptt. is satisfied with the product and
services provided by it as it will result into an overall improvement of the organization.

To serve a final customer first of all a company has to satisfy his employees. If
employees are satisfied then they will ultimately satisfy the final customer. Three types of
marketing arise. These are a follows:-

1) Internal marketing:

It is defined as when company communicates its policies to the employees. In

this understands their employees & provides good working condition, compensation
 and incentives so as to satisfy their employees. Company satisfies their employees
because they are the person in touch with the final users.

2) External marketing:

When company communicates with its final end user regarding the product
complaints & suggestions so as to satisfy them.

3) Interactive marketing:

In this employees communicate company product to its final end users.

INTRODUCTION TO CUSTOMER SATISFACTION

Today’s companies are facing their toughest competition ever. These companies can
outdo their competition if they can move from product and sales philosophy to a marketing
philosophy. We spell out in detail how companies can go about winning customers and
outperforming competitors. The answer lies in doing a better job of meeting and satisfying
customers’ needs. Only customer-centered companies are adept at building customers, not
just building product. They are skilled in market engineering, not just product engineering.

Too many companies think that it is the marketing/sales department’s job to procure
customers. If that department cannot, the company draws the conclusion that its marketing
people aren’t very good. But in fact, marketing is only one factor in attracting and keeping
customers. The best marketing department in the world cannot spell products that are poorly
made or fail to meet anyone’s need. The marketing department can be effective only in
companies whose various departments and employees have designed and implemented a
competitively superior customer value-delivery system.

Although the customer oriented firms seek to create high customer satisfaction, its
main goal is to maximize customer satisfaction, first the company can increase customer
satisfaction by lowering its prices, but results may be lower profits second the company
might be able to increase prices. Third the company has many stake-holders including
employees, dealers, suppliers and stock holders spending more to increase customer
satisfaction might divert funds from increasing the satisfaction of other partner. Estimate the
company must operate on the philosophy that it is trying to deliver a high level of satisfaction
to the other stake-holder within the constraints of its resources. From the past studies of last
three decades we observed that the company’s first task is to create and satisfy customers.
But today’s customers face a vast array of product and brand choice prices and suppliers.

It is generally believed that customers estimate which offer will deliver the most value
customers are like value maximizes, within the bounds of search costs and limited
knowledge, mobility income, they form an expectation of value and act on it, whether or not
the offer lives up to the value expectations affects customer’s satisfaction and their
repurchase probability.

CUSTOMER VALUE

Customer delivered value is the difference between the total customer value and total
consumer cost. Consumer value is the bundle of benefits customers expect from a given
product or service. Total consumer cost it the bundle of costs consumer expect to incur in
evaluating, obtaining and using the product.

That two customers can report being “highly satisfied” for different reasons. one may
be easily satisfied most of the time and other might be hard to please but was pleased on this
occasion. Companies should also note that managers and salespeople can manipulate their
ratings on customer satisfaction. They can be especially nice just before the survey. They can
also try to exclude unhappy customers from the survey. Another danger is that if customers
will know that the company will go out of its way to please customers, some customers may
express high dissatisfaction (even if satisfied) in order to receive more concession.

DELIVERING CUSTOMER VALUE AND SATISFACTION:

The value chain is a tool for identifying ways to create more customer value. every
firm is a collection of activities that are performed to design, produce, market, deliver and
support its product. The value chain identifies nine strategically relevant activities that create
value and cost in a specific business. These nine value-creating activities consist of five
primary activities and four support activities.
INTERNAL RECORD SYSTEM

Marketing managers rely on internal reports on orders, sales, prices, cost, inventory
levels, receivables, payables, and so on. By analyzing this information, they can spot
important opportunities and problems.

THE MARKETING INTELLIGENCE SYSTEM

A marketing intelligence system is a set of procedures and sources used by managers

to obtain everyday information about developments in the marketing environment. Marketing
managers collect marketing intelligence by reading books, newspapers and trade
publications; talking to customers, suppliers and distributors; meeting with other company
mangers.

First, it can train and motivate the sales force to spot and report new developments.
Sales representatives are positioned to pick up information missed by other means.

Second, the company can motivate the distributors, retailers, and other intermediaries
to pass along important intelligence.

Third, companies can collect competitive intelligence by purchasing competitors’

products; attending open houses and trade shows; reading competitors’ publishing reports;
attending stockholders’ meeting; talking to employees, dealers, distributors, suppliers, and
freight agents; collecting competitors’ ads; and looking up news stories about competitors on
the internet.

SOURCES OF INTERNAL DATA

Sources of internal data are of two types:

1. Internal or primary data

2. External or secondary data.

INTERNAL SOURCES
 Company profit-loss statements, balance sheets, sales figures, sales call reports,
invoices, inventory reports and prior research reports.

EXTERNAL SOURCES

A) Government publications

B) Periodicals and books

C) Commercial data

NEED OF THE STUDY

Customer satisfaction survey is a systematic process for collecting consumer data, analyzing
this data to make it into actionable information, driving the results throughout an organization
and implementing satisfaction survey is a management information system that continuously
captures the voice of the customer through the assessment of performance from the
customers’ point of view.

CHAPTER-II

REVIEW OF LITERATURE

For more than a decade now, a range of studies that address environmentally sound
consumer behaviour, e.g. car use, waste sorting, minimisation and recycling practices, have
been conducted. However, few studies evaluated consumer acceptance of the PSS concept – a
consumption based on non-ownership of physical products, see, for example, studies on car
sharing schemes (Schrader 1999; Meijkamp 2000), ski rental and washing services (Hirschl,
Konrad et al. 2001).

A number of examples (mainly from the business-to-business area) exist that confirm
the potential of PSS for reducing life cycle environmental impact. It is, however, increasingly
evident that these examples are difficult to directly apply to the market of private consumers,
mainly because business customers often prefer services to product ownership (Alexander
1997), while according to some studies it is a formidable challenge for private customers to
adopt “ownerless consumption” (Schrader 1996; Littig 1998). In addition, the environmental
impacts of such offers depend to a large extent on user behaviour. To address this problem,
changes are needed in consumption behaviour; consumption patterns and levels; and
ultimately a change in lifestyles towards more sustainable patterns. Many authors recognise
that “the health of our planet is inextricably dependent upon human behaviour” (Geller 1995),
and therefore changing human behaviour may foster and maintain sustainability (Gudgion
and Thomas 1991; McKenzie-Mohr, Nemiroff et al. 1995; Oskamp 2000). An increasing
number of studies have been conducted in search for instruments that can potentially help
facilitate the shift toward more sustainable patterns of consumption, e.g., (Goodwin,
Ackerman et al. 1997); (OECD 1997); (Stern, Dietz et al. 1997); (Thøgersen and Ölander
2002).

Paul S. Goldner (2006) Grigoroudis, E and Siskos, Y (2009) defines, “…a

customer is any organization or individual with which you have done business over the past
twelve months”. “Customer means the party to which the goods are to be supplied or service
rendered by the supplier”. provide definition for ‘customer’ upon two approaches: With
reference to loyalty, “A customer is the person that assesses the quality of the offered
products and services” and on process oriented approach, “the customer is the person or
group that receives the work output” (p.9).

Customer satisfaction is an evaluation of difference between prior expectations about

productand its actual performance. Customer satisfaction is how customers react towards the
state ofsatisfaction, and how customers judge the satisfaction level (Hanif, Hafez & Riaz,
2010).Customer satisfaction is the reaction of customer toward state of the fulfillment and
judgment ofcustomer about that fulfilled state (Khayyat & Heshmati,2012).Customer
satisfaction is the expectation before consuming a product regarding quality or it is a pre-
consumption judgment or expectation(bae,2012).Satisfaction is an outcome of purchase in
which consumer compare cost and rewards with theanticipated
consiquences(Maxham,2001).There is always a positive relationship between customer
satisfaction and profit maximization ofan organization(bowen&chen,2001).No one is
important than customers and their satisfaction isthe ultimate objective through improvement
in services in terms of competitiveness and it savesfuture revenue plus it becomes the cause
of cost reduction in future(Yuan Hu, Ching-Chan&Cheng, Hong,2010).Customer satisfaction
is the perceived feeling of a customer for which he orshe has set standards if his expectations
match with the standard he is satisfied(Eggert&Ulaga,2002).There are number of imperial
studies on specific relationship of employeessatisfaction.Often the quality of the relationship
is called satisfaction mirror which gives an ideathat success of business is from satisfaction of
employee which is reflected in term of thecustomer satisfaction.Service quality is derived
from employee satisfaction for example ifemployees are satisfied it has direct effect on both
customer satisfaction and servicequality(Madern,Maull,Smart&Baker,2005).There is a
significant effect of customer satisfaction on the performance of business and
throughcustomer satisfaction returns of shareholders can be increased and value of any
business can bemaximized(O’sullivan,Mccalling,2010)

The most widely accepted conceptualization of the customer satisfaction concept is

the expectancy disconfirmation theory (McQuitty, Finn and Wiley, 2000). The theory was
developed by Oliver, who proposed that satisfaction level is a result of the difference between
expected and perceived performance. Satisfaction (positive disconfirmation) occures when
product or service is better than expected. On the other hand, a performance worse than
expected results is dissatisfaction (negative disconfirmation). Studies show that customer
satisfaction may have direct and indirect impact on business results. Luo and Homburg
(2007) concluded that customer satisfaction positively affects business profitability. The
majority of studies have investigated the relationship with customer behaviour patterns
(Dimitriades, 2006; Olorunniwo et al., 2006; Chi and Qu, 2008; Faullant et al., 2008).
According to these findings, customer satisfaction increases customer loyalty, influences
repurchase intentions and leads to positive word-of-mouth.

Customer satisfaction with offices is resolved by specialized execution, as well as by

a many-sided set of trade procedures, for example, compelling correspondence and
administration ofdesires. (Campbell&Finch,2004).Customer satisfaction have antecedent,
mediated and moderated effect on personal connectionsand enjoyable
interactions(Fatima&Razzaque,2013).Customer satisfaction with offices is resolved not just
by specialized execution, additionally by amultifaceted set of trade methodologies, for
example, powerful correspondence andadministration of desires.(Campbell&Finch,2004).

The exceptional dissemination of portable administrations has beaten the

masters'desires.Telecommunication has turned into a heading segment, giving
commoditizedadministrations. Accordingly, the infiltration of cellular telephones is very
nearly twice as highas that of personal computers(Turel&Serenko,2013).The portable Internet
guaranteed equilent adaptability and expense productivity to the typicalweb. In any case,
encounters show that the improvement of portable web requisitions needs tothink about
uncommon tests in the zones of convenience, advancement
proficiency.(Spriestersbach&Springer,2005).As interest obliges that more provisions be re-
wrote for versatile arrangements, organizationsmay think that it is important to upgrade
information offering and substance conveyance systemsto backing the portable
stage.(Devi,Ramzan&Shander,2012).

Mobile applications and administrations progressively help us in our everyday

lifecircumstances, satisfying our needs for data, correspondence,diversion or
relaxation(Wac,Ickin,Hong,Janowski,Fielder&Dey,2011)Regardless of the reputation of
flexible demands, their execution likewise imperativeness bottlenecks remain stowed away
due to a non-attendance of detectable quality into the advantageconstrained conveyable
execution environment with possibly intricate affiliation with the procurement
behavior(Qian,Wang,Gerbar,Mao,San,Spatscheck,2011).

Cell phones and tablets are converting the way individuals digest news, take after
games, and sitin front of the TV and films. Individuals are basically strolling around with a
worldwidenewsroom, a games enclosure, widescreen HD TV, and film theater in their pocket
or tote.Furthermore as a rule nowadays, clients have a decision by they way they need to get
to the dataand captivate with the substance(Anderson,2013)It is evident that clients are vital
stakeholders in associations and their fulfillment is a necessityto administration. Client
fulfillment has been a subject of incredible enthusiasm to associationsand specialists
indistinguishable.(Agbor,2011).
 CHAPTER III

RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

 To understand the existing product quality in pathanjali products

 To investigate whether the product quality of pathanjali products is capable of
addressing all demands made by customer.
 To identify the difference between Expectation & Perception of customers in product
quality offered by pathanjali products
 To understand about the customer satisfaction for pathanjali products.

RESEARCH METHODOLOGY

RESEARCH

Once the problem has been carefully defined, the researcher needs to establish the plan that
will outline the investigation to be carried out. The research design indicates the steps that
have been taken and in what sequence they occurred. It is a systematic and purposive
Investigation of facts with an objective of understanding the customer satisfaction for
pathanjali products The methodology that will be applied by the study has been chosen in
order to acquire informational deduce conclusions about the Customer satisfaction for
pathanjali products ‘.

PURPOSE OF THE STUDY

Themain purposes of this study is to obtain an insight into the problems faced by the pathanja
li products customers in order to propose further recommendations for better customer
satisfaction.

RESEARCH DESIGN

Research design is the arrangement of conditions for collection and analyze of data in a
systematic manner that aims to combine relevance to research purpose with economy
in procedure. The research study applied here is purely descriptive.
SAMPLING TECHNIQUE

The simple random sampling method was used for the primary data collection. Simple
random sampling is the basic sampling technique where we select a group of subjects (a
sample) for study from a larger group (a population). Each individual is chosen entirely by
chance and each member of the population has an equal chance of being included in the
sample. Every possible sample of a given size has the same chance of selection; i.e. each
member of the population is equally to be chosen stage in the sampling process. There are
two types of sampling techniques.

SAMPLING

They are Probability sampling and Non-Probability sampling. The researcher adopted Non-
probability sampling.

NON-PROBABILITY SAMPLING

Non-
probability sampling procedure, which does not afford any basis for estimating the probabilit
y that each item in the population has been include in the sample

CONVENIENCE SAMPLING

The researcher has adopted convenience sampling method for this study.

SAMPLE SIZE

1000 respondents are chosen as a sample size for the study.

DATA COLLECTION

PRIMARY DATA

Information obtained from the original source by research is called Primary Data. They offer
much greater accuracy and reliability. The data was collected from the respondents through
the questionnaire.
SECONDARY DATA

In means data that are already available i.e. it refers to the data which have already been
collected and analyzed by someone else. The data was collected from the websites and
journals.

SIGNIFICANCE OF THE STUDY

The watch industry is in the current scenario is booming and undergoing a rapid growth. The
emergence of new generation private and foreign watches in the Indian watch market has
raised the competitiveness in the industry. The study aims at identifying the extend to which
the product quality of a watch affects its competitiveness. The outcome of the study reveals
the current perception about the watches rooted in the minds of the customers which could be
useful in formulating the strategies in future operations of the company, for the attainment of
its goals in this competitive scenario.

LIMITATIONS OF STUDY

The following are the limitations of the study

 Pathanjali products has become the most necessary commodity/service, so it was

difficult to define the population in a particular place.
 100 respondents cannot represent the population, as a whole. So the findings may be
biased.
 Time plays a havoc role in data collection. So, the sample is restricted to 100.
 Chances of biased responses from the customers