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A STUDY ON CUSTOMER PREFERENCE IN PRECISE ELECTRICALS,

MUMBAI.

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 preference 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 PREFERENCE 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 preference 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.

STATEMENT OF THE PROBLEM:

Growing individualistic ideas are fast penetrating the Indian minds and the joint family
and caste system are fast cracking. company many benefits in store for them. It saves their
families from misery, chaos, and destitution. Insurance lays the foundation on which the
economic structure of life can be gradually and safely built up and sustained to the end.
Uncertainties to the individual are made certainties for the group.

RESEARCH METHODLOGY

OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE
The primary objective of the study is to find out the “study on the customer satisfaction level
of PRECISE ELECTRICALS, MUMBAI.”

SECONDARY OBJECTIVE

 To study the socio economic variables that influences the insuring public to take-up
the policies.
 To study the awareness of insurance plans in PRECISE ELECTRICALS, MUMBAI.
 To study the effectiveness of advertisement of PRECISE ELECTRICALS,
MUMBAI.
 To study the customer perception of life insurance
 To study the efficiency of PRECISE ELECTRICALS, MUMBAI. being a private
organization.

LIMITATIONS OF THE STUDY

 The study suffers from a few limitations, which will have to be kept in mind for the
findings to be fairly interpreted
 The recommendations are subjected to time and cost constraint
 Sampling has its own limitations, which would have resulted in minor errors
 There can be errors due to bias of respondents
 The size of the sampling was not big enough to arrive at strong conclusion. The
results should be interpreted with the above limitations in perspective.

RESEARCH DESIGN

SAMPLING FACTORS

DATA COLLECTION

PRIMARY DATA

The primary data for this study is collected with the objective in mind “a study on the
customer perception of PRECISE ELECTRICALS, MUMBAI.

SECONDARY DATA
The secondary data for the study is collected with the information that is being published in
journals and magazines and from the internet.

SAMPLE COLLECTION

The data required for the study is collected with the help of questionnaire. These
questionnaires are handed over to the customers and asked to get it filled up. The data is
interpreted from the information that is incurred from the questionnaire

SAMPLE AREA

The area where the data is collected is in and around PRECISE ELECTRICALS,

MUMBAI. The respondents are the people who reside in MUMBAI

SAMPLE SIZE

Due to the limitation of time and scope of the study the number of respondents from which
the data is collected is 100.

RESEARCH TOOL

STOOLS OF ANALYSIS

Analytical techniques are used to obtain findings and arrange information in a logical
sequence from the data collected. After tabulation of the data, researcher used the following
quantitative techniques

1. Percentage Analysis

The data that is obtained is from the questionnaire is analysed through percentage analysis.
The results are shown on the percentage basis.

2. Graphs

Graphical representations are used to show the results in simple form. The graphs are
prepared on the basis of data that is received from the percentage analysis

3. Chi – Square Test


The research methodology tool chi – square test is being taken as a tool in order to bring out
the final result by analyzing the factors. The end result for the study is being derived from the
using this research tool.

Chi square test is an important non parametric test and as such no test is necessary in respect
of the population. We require only the degree of freedom (implicitly of the course the size
of the sample) for using this test. As anon parametric test chi square can be used (i) as a test
of goodness to fit and (ii) as a test of independence. Since there searcher used test of
independence only the details about the independence is given below

TEST OF INDEPENDENCE

The 2 test is used to test whether there is a significant difference between the observed
number of responses in each category and the expected number of responses for such
category under the assumption of null hypothesis. It enables us to explain whether or not two
attributes are associated with each other. In order that we may apply the chi-square test either
as a test to judge the significance of association between attributes, it is necessary that the
observed as well as theoretical distribution must be adjusted to give the same total frequency
as we find in case of observed distribution. Karl Pearson developed test for testing the
significance of discrepancy between experimental values and the theoretical values obtained
under some theory of hypothesis. This is known as test of goodness of fit. Karl Pearson
proved that the statistics is used to test whether difference between observed and expected
frequencies are frequent.

CHAPTER-II

REVIEW OF LITERATURE

REVIEW OF LITERATURE

(Schrader 1999; Meijkamp 2000), ski rental and washing services (Hirschl, Konrad et
al. 2001).

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

(Gudgion and Thomas 1991; McKenzie-Mohr, Nemiroff et al. 1995; Oskamp 2000).

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. (Goodwin, Ackerman et al.
1997); (OECD 1997); (Stern, Dietz et al. 1997); (Thøgersen and Ölander 2002).

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 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.,

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).

(Hanif, Hafez & Riaz, 2010

Customer satisfaction is an evaluation of difference between prior expectations about


product and its actual performance. Customer satisfaction is how customers react towards the
state of satisfaction, and how customers judge the satisfaction level
(Khayyat & Heshmati,2012).

Customer satisfaction is the reaction of customer toward state of the fulfilment and
judgment of customer about that fulfilled state 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 the anticipated consequences (Maxham,2001).There is always a
positive relationship between customer satisfaction and profit maximization of an
organization(bowen&chen,2001).

(Yuan Hu, Ching-Chan&Cheng, Hong,2010)

No one is important than customers and their satisfaction is the ultimate objective
through improvement in services in terms of competitiveness and it saves future revenue plus
it becomes the cause of cost reduction in future. Customer satisfaction is the perceived
feeling of a customer for which he or she 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 employee’s


satisfaction. Often the quality of the relationship is called satisfaction mirror which gives an
idea that success of business is from satisfaction of employee which is reflected in term of the
customer satisfaction. Service quality is derived from employee satisfaction for example if
employees are satisfied it has direct effect on both customer satisfaction and service quality
(Madern, Maull, Smart&Baker,2005).There is a significant effect of customer satisfaction on
the performance of business and through customer satisfaction returns of shareholders can be
increased and value of any business can be maximized(

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.

.(Campbell&Finch,2004).

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 of desires. Customer satisfaction have antecedent, mediated and moderated
effect on personal connection sand enjoyable interactions Customer satisfaction with offices
is resolved not just by specialized execution, additionally by a multifaceted set of trade
methodologies, for example, powerful correspondence and administration of desires

(Turel&Serenko,2013)

The exceptional dissemination of portable administrations has beaten the masters ‘desires.
Telecommunication has turned into a heading segment, giving commoditized administrations.
Accordingly, the infiltration of cellular telephones is very nearly twice as high as that of
personal computers. The portable Internet guaranteed equalling adaptability and expense
productivity to the typical web. In any case, encounters show that the improvement of
portable web requisitions needs to think 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, organizations may think that it is important
to upgrade information offering and substance conveyance systems to backing the portable
stage

.(Devi,Ramzan&Shander,2012).
Mobile applications and administrations progressively help us in our everyday life
circumstances, 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 advantage constrained conveyable
execution environment with possibly intricate affiliation with the procurement behaviour

(Qian,Wang,Gerbar,Mao,San,Spatscheck,2011).

Cell phones and tablets are converting the way individuals digest news, take after
games, and sit in front of the TV and films. Individuals are basically strolling around with a
world wide newsroom, 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 data and captivate with the substance(Anderson,2013)It is evident that clients are
vital stakeholders in associations and their fulfillment is a necessity to administration. Client
fulfillment has been a subject of incredible enthusiasm to associations and specialists
indistinguishable

CHAPTER III

INDUSTRY PROFILE:

INTRODUCTION OF THE ORGANIZATION

Precise Electricals is one of the leading manufactures in Low Voltage instrument


transformers established in 1971.

We at Precise Electricals manufacture more than 25000 nos. transformers monthly.We


manufacture transformers for Switchboard, Switchgear, Furnace application, Isolation
purpose and for energy meters.

Our products are known for their high quality, durability and reliability. This is due to
our emphasis on design, engineering and manufacturing for more than 40 years in this sector.
We adhere to international standards by acquiring & adapting latest technologies along with
in-house R & D. All Products have been Type Tested for compliance with relevant IS / IEC
at ERDA, CPRI and ASTA which are worldwide acceptable certifications.
“We have recently taken up the first step for the manufacturing of Medium Voltage
transformers. The proposed factory is to be commissioned by April 2016 which is in
Vadodara-Gujarat, having a manufacturing capacity of 3000 nos. transformers
monthly”.

Infrastructure

Our company is privileged with a well-structured infrastructure facility. It is further divided


into different such as Marketing & Sales office, Manufacturing Unit, Quality Control
Department, Research and Development Unit, Stores, Packaging and Administrative
Department located at Wagle Estate, Thane – Maharashtra.

These are efficiently managed by our well-experienced and professional experts. We have
also installed some of the advanced equipment and machinery which enable us to supply an
entire range of Instrument Transformers.