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“A STUDY ON CUSTOMER’S SATISFACTION OF

HONDA TWO WHEELERS


WITH SPECIAL REFERENCE TO
AM WINGS HONDA PALAKKAD PVT LTD”

1. INTRODUCTION

1.1 Introduction to the Topic of the Study

The prosperity of every business unit depends on the efficiency with which its
goods are marketing. Marketing occupies an important position in the organization of a
business unit. If the marketing functions are not fruitfully carried out, it will affect the
existence of an ultimate customer at all time. All activities which are involved in the
process of transferring floods from the place of its manufacture to the ultimate consumer
some under the purview of marketing.

A marketing strategy is a consistent appropriate and feasible set of principles


through which particular company hope to achieve it long-run customer and profit
objectives in a particular competitive environment.”

Nowadays it become necessary develop new marketing techniques in maintaining


the existing customers and in meeting the new ones. The most important changes is that
the present day market is that quality standards earliest determined by the marketer have
been now determined by the customer. Marketing begins with assessment of customer
concerns and end up with the evolution.

During the years of growing complexities the management needs more and more
information to reduce the uncertainties involved in introducing the new product. It is
related with needs , wants and demands , products ,value and satisfactions.

The automobile industry designs, develops, manufactures, markets, and sells motor
vehicles, and is one of the world's most important economic sectors by revenue. The
competitive nature of the automobile industry has prompted the companies to take up new
and innovative market strategies towards the competition. The automobile industry in
India has witnessed a rapid growth over the last couple of decades and in recent years it
has also captured the attention of the whole world with some innovative products. It

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includes manufacturing of cars, two-wheelers like motorcycles, scooters, bikes, passenger
cars, trucks, tractors, defence vehicles and buses. The automobile industry can be widely
divided into car manufacturing, heavy vehicle manufacturing and two-wheeler
manufacturing.

The study has been conducted to know the Customer Satisfaction level towards
Honda Two Wheelers With Special Reference to AM Wings Honda Palakkad. They want
to know the factors that lead to the preference of a particular brand by the customers. This
study will be useful for the organization to understand the reasons for the preference of the
Honda bike.

Customer Satisfaction

The modern marketing concept is customer oriented backed by integrated marketing


aimed at generating customer satisfaction as the key to satisfying organizational.

THEORETICAL BACKGROUND OF TOPIC

Satisfaction

It is no longer enough to satisfy customers. You must delight them Satisfaction is a


person feeling of pleasure or disappointment resulting from comparing the products to
comparing product received performance is or (outcome) in relation to his or her
expectation

As this definition makes clear satisfaction is a function of received performance


and expectations. With the performance falls sharp expectation, the customer is
dissatisfied. If the performance matches the expectations the customer is satisfied. With
the performance exceeds expectations, the customer is highly satisfied or delighted Mini
companies are for high satisfaction because customers who are just satisfied still find it
easy to switch when a better offer comes along. Those who are highly satisfied are much
less ready to switch

High satisfaction is delight creates an emotional brand with the brand. Not a just
rational performance the result is high customer loyalty Xeroxes senior managers believes
that a very satisfied or delighted customer is worth tent times as much to the company as a

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satisfied customer .a very satisfied customer very satisfied is likely to stay with Xerox
many more years and buy more than a satisfied customers

1.2 ORGANIZATIONAL PROFILE

1.2.1 INDUSTRY PROFILE

Automobile Industry Profile

The automobile industry designs, develops, manufactures, markets, and


sells motor vehicles, and is one of the world's most important economic sectors by
revenue. The term automotive industry usually does not include industries dedicated
to automobiles after delivery to the customer, such as repair shops and motor fuel
filling stations.

Consumption trends

About 250 million vehicles are in use in the United States. Around the
world, there were about 806 million cars and light trucks on the road in 2007,
consuming over 260 billion gallons of gasoline and diesel fuel yearly. In the opinion
of some, urban transport systems based around the car have proved unsustainable,
consuming excessive energy, affecting the health of populations, and delivering a
declining level of service despite increasing investments. Many of these negative
impacts fall disproportionately on those social groups who are also least likely to
own and drive cars. The sustainable transport movement focuses on solutions to
these problems.

The Detroit branch of Boston Consulting Group predicts that, by 2014,


one-third of world demand will be in the four BRIC markets (Brazil, Russia, India
and China). Other potentially powerful automotive markets are Iran and Indonesia.

Automobile industry in India

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The Automobile industry in India is one of the largest in the world and
one of the fastest growing globally. India manufactures over 17.5 million vehicles
(including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. It is
the world's second largest manufacturer of motorcycles, with annual sales exceeding
8.5 million in 2009. India's passenger car and commercial vehicle manufacturing
industry is the seventh largest in the world, with an annual production of more than
3.7 million units in 2010. According to recent reports, India is set to overtake Brazil
to become the sixth largest passenger vehicle producer in the world, growing 16-18
per cent to sell around three million units in the course of 2011-12 In 2009, India
emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South
Korea, and Thailand.

As of 2010, India is home to 40 million passenger vehicles and more


than 3.7 million automotive vehicles were produced in India in 2010 (an increase of
33.9%), making the country the second fastest growing automobile market in the
world. According to the Society of Indian Automobile Manufacturers, annual car
sales are projected to increase up to 5 million vehicles by 2015 and more than 9
million by 2020. By 2050, the country is expected to top the world in car volumes
with approximately 611 million vehicles on the nation's roads.

The Indian Automobile Industry is manufacturing over 11 million


vehicles and exporting about 1.5 million every year. The dominant products of the
industry are two wheelers with a market share of over 75% and passenger cars with a
market share of about 16%. Commercial vehicles and three wheelers share about 9%
of the market between them. About 91% of the vehicles sold are used by households
and only about 9% for commercial purposes. The industry has attained a turnover of
more than USD 35 billion and provides direct and indirect employment to over 13
million people.

The supply chain of this industry in India is very similar to the supply chain of
the automotive industry in Europe and America. This may present its own set of
opportunities and threats. The orders of the industry arise from the bottom of the supply
chain i. e., from the consumers and go through the automakers and climbs up until the
third tier suppliers. However the products, as channelled in every traditional automotive
industry, flow from the top of the supply chain to reach the consumers. Interestingly,
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the level of trade exports in this sector in India has been medium and imports have been
low. However, this is rapidly changing and both exports and imports are increasing. The
demand determinants of the industry are factors like affordability, product innovation,
infrastructure and price of fuel. Also, the basis of competition in the sector is high and
increasing, and its life cycle stage is growth. With a rapidly growing middle class, all
the advantages of this sector in India are yet to be leveraged.

a new journey in 1991 with de-licensing of the sector and subsequent opening up for
100% foreign direct investment (FDI). Since then almost all global majors have set up
their facilities in Indian taking the level of production from 2 million in 1991 to over 10
million in recent years. The exports in automotive sector have grown on an average
compound annual growth rate of 30% per year for the last seven years. The export
earnings from this sector are over USD 6 billion.

Even with this rapid growth, the Indian automotive industry’s contribution in global
terms is very low. This is evident from the fact that even thought passenger and
commercial vehicles have crossed the production figures of 2.3 million in the year
2008, yet India’s share is about 3.28% of world production of 70.53 million passenger
and commercial vehicles. India’s automotive exports constitute only about 0.3% of
global automotive trade.

INDIAN TWO WHEELER INDUSTRY

Automobile is one of the largest industries in global market. Being the leader in
product and process technologies in the manufacturing sector, it has been recognized as
one of the drivers of economic growth. During the last decade, well directed efforts have
been made to provide a new look to the automobile policy for realizing the sector's full
potential for the economy. Steps like abolition of licensing, removal of quantitative
restrictions and initiatives to bring the policy framework in consonance with WTO
requirements have set the industry in a progressive track. Removal of the restrictive
environment has helped restructuring, and enabled industry to absorb new technologies,
aligning itself with the global development and also to realize its potential in the country.
The liberalization policies have led to continuous increase in competition which has
ultimately resulted in modernization in line with the global standards as well as in
substantial cut in prices. Aggressive marketing by the auto finance companies have also

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played a significant role in boosting automobile demand, especially from the population in
the middle income group.

INDIA is the second largest producer of two-wheelers in the world. In the last few
years, the Indian two-wheeler industry has seen spectacular growth. The country stands
next to China and Japan in terms of production and sales respectively.

Majority of Indians, especially the youngsters prefer motorbikes rather than cars.
Capturing a large share in the two-wheeler industry, bikes and scooters cover a major
segment. Bikes are considered to be the favorite among the youth generation, as they help
in easy commutation.

Large varieties of two wheelers are available in the market, known for their latest
technology and enhanced mileage. Indian bikes, scooters and mopeds represent style and
class for both men and women in India. However, few Indian bike enthusiasts prefer high
performance imported bikes. Some of the most popular high-speed bikes are Suzuki
Hayabusa, Kawasaki Ninja, Suzuki Zeus, Hero Honda Karizma, Bajaj Pulsar and Honda
Unicorn. These super bikes are specially designed for those who have a zeal for speedy
drive.

FAMOUS INDIAN TWO WHEELER DEALERS

 BAJAJ AUTO LTD.


 HERO MOTOCOP LTD.
 HMSIL
 HERO ELECTRIC
 KINETIC MOTOR CO. LTD.
 LML INDIA LTD.
 MONTO MOTORS
 ROYAL ENFIELD MOTORS INDIA LTD.
 SUZUKI MOTOR CORPORATION
 TVS MOTOR CO.
 YAMAHA MOTOR INDIA PVT.LTD.
 MAHINDRA 2 WHEELERS LTD.

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1.2.2 COMPANY PROFILE

HONDA MOTORCYCLES & SCOOTERS INDIA LTD

Honda Motorcycle & Scooter India Pvt. Ltd (HMSI) is a fully owned subsidiary of
Honda Motor Company Limited, Japan. Honda is the world's largest manufacturer of two
wheelers. Set up in 1999, it was the fourth Honda automotive venture in India, after Hero
Honda, Kinetic Honda Motor Ltd and Honda Siel Cars India Limited. Headquarters of the
company are located at Gurgaon in Haryana state of India. In December 2002, HMSI got
ISO 14001 certification.

ABOUT THE COMPANY

Honda Motorcycle & Scooter India Pvt. Ltd was founded on August 20, 1999 at
Manesar near Gurgaon in Haryana. The foundation stone for the Honda factory was laid on
December 14, 1999 and the factory was completed in January 2001.

The company initially ventured into scooters as its joint venture agreement with the
Hero Group precluded its entry into the motorcycle segment for five years. The company
set benchmarks in the Indian scooter industry with the launch of its gearless scooter Honda
Activa. Honda Dio, launched after it, was a slightly upgraded and trendier version of
Activa. Honda Eterno was another addition to the repertoire of Honda scooters. First bike

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launched by HMSI was Honda Unicorn. It was followed by Honda Shine. All the products
launched by HMSI were runaway hits in the market.

HMSI factory at Manesar is built on 52 acres of land. Its initial production capacity was
100,000 scooters per year, which has now been upgraded to 6,00,000 scooters. The bike
production capacity is 10,00,000 per annum. Initial investment behind the factory was
Rs.215 crores and has now grown to 800 crores.

About AM MOBIKES

AM Honda, one of the unit of AM Mobikes is an authorized dealer of Honda


Motorcycles & Scooters in Malappuram and palakkad Dt. It was established in the year -
2004 at Angadipuuram near Perinthalmanna as a partnership firm. The Managing Partner,
Mr.Jamsheed KM is the CEO of the firm .As the business grew the establishment also
developed.

Branches of AM Honda

 AM WINGS HONDA palakkad


 AM HONDA Tirur
 AM HONDA Angadippuram
 AM HONDA Kondotty
 AM HONDA Manjeri

INFRASTRUCTURE

The Head Office is functioning at 2 floored owned building. It has separate


sections for servicing, PDI, showroom etc. Its spacious area for the exclusive display of
new bikes itself attracts customers and it will give a new buying experience to the
customers. Service section has the capacity of servicing more then -50 vehicles per day.
The branches are structured like Head Office.

MISSION

The mission differs from organization to organization. It is designed to work


together for a common aim for the successful performance of the organization not only in
the short run but also for a long run. It identifies the scope of the company’s operations,

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describes company’s products, market & technological areas of thrust and reflects the
values and priorities of its strategic decision makers.

According to the Management officials of AM group, their success is their team


work and loyalty to the customers. They are always trying to give 100% satisfaction to the
customers. The mission is clearly defined by them as follows.

“Our mission is not just the art of selling vehicles, but the satisfied customer which we
believe that the best advertisement than everything.”

ORGANISATIONAL OBJECTIVES

 To be dynamic and growth oriented

 To create a distinguished climate within the organization

 To protect the environment.

 To be law abiding and comply with all statutory requirements

 To protect the right of the customers

 To be a front runner in providing match less services.

 To create good employment opportunity

 To protect the right of employees.

KEY POLICIES

HMSI ENVIRONMENTAL POLICY

Honda has always wanted to pass on the beautiful natural environment to the next
generation, and will continue its environmental conservation activities, meeting the high
goals that it has set independently.

HMSI got ISO 14001 certification in Dec. 2002, which is committed to achieve,
HMSI will establish its environmental management system following PDCA cycle and
continuously work to make it more effective. The policy will be well disseminated to our
employees as well as to the public at large.

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Other Environmental activities of Honda Motorcycle & Scooters India Pvt Ltd
(HMSI) are described below:

 Developing Green Vehicles

“At Honda, we are striving towards developing zero-emission in all our vehicles.
We are the first company in Japan to meet the most recent exhaust emission regulations.
To reduce the environmental burden of four-stroke engines, we have developed a unique
exhaust air injection system and a programmed fuel injection (PGM- F1) (PGM-F1)
system, which is currently in use in the HONDA VFR motorcycle. On the other hand, the
Giorno Crea, is a new generation, environment friendly 50cc scooter that is highly fuel-
efficient”.

Eco-Friendly Factory.

Honda's production facilities across the world also actively pursue energy-efficient
methods and prevent water pollution by reducing industrial waste. Honda has taken
aggressive initiatives to reduce the environmental impact of its manufacturing operations,
by implementing its concept of the "Green Factory". HMSI too is actively working
towards establishing an environment management system.

 Conserving environment through preventing pollution at its source of generation and


strengthening our existing pollution control system.

 Promoting conservation of resources such as energy, water, oil and grease and other
raw materials, by reusing, recycling and minimizing the waste generation.
 Complying with all applicable legal/regulatory requirements and strive to go beyond
wherever possible.
 Regular monitoring and reviewing of environmental objectives and targets.
 Increasing environment awareness and competence amongst our employees and
encourage vendors & dealers to adopt EMS.

The "Green Dealer Concept"

Started by Honda is a step further in the direction of conservation of the


environment. The "Green Dealer Concept" would not only help in proper and efficient use

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of resources such as water, electricity, paper etc. by constantly monitoring and improving
the existing systems thus doing lots of cost cutting but also reducing the polluting activities
to minimum. Increasing environment awareness amongst the employees and the general
public is also feature of this unique concept.

SAFTEY POLICY

Enhancing safety on the roads is one of Honda's top priorities. They firmly believe
that the realization of a comfortable and an enjoyable mobile society depends on the
mutual trust that automobile manufacturers like them, share with the consumers and
society. At Honda, they use a three prong approach, based on preventing accidents from
happening in the first place, minimizing injury in the unlikely event of an accident and
their Driving Safety Promotion operations.

Honda's safety philosophy emphasizes the development of appropriate technologies


for its products, so as to ultimately achieve maximum riding comfort for its customers.
Honda was the first manufacturer in Japan to develop and apply the anti-lock brake
system. Educating the world, Honda is actively involved with driving education across the
world for promoting traffic safety.

Honda Training Program

The Honda Riding Trainer is a state-of-the-art, compact, computer driven machine


that puts riders in real life road traffic situations through a wide variety of options. The
Riding Trainer can reproduce various traffic situations that occur on roads, offering the
user a safe way to experience hazardous situations. Further, users can repeatedly play back
and view from various angles the dangers concealed in road traffic and the processes
leading to accidents and hazardous situations, confirming them with their own eyes. The
Trainer therefore allows users to deepen their understanding of safety and functions as an
effective training tool for hazard prediction for all riders from beginners to advanced
riders. It also gives beginners a chance to practice clutching and other motorcycle
operations before riding an actual motorcycle. Till date we have 125 Riding Trainer across
India.

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1.2.3 PRODUCTS PROFILE

HONDA CBR 250R

Honda CBR250R was launched in India to cater to growing demand in the entry-
level performance segment. It is one of the most affordable 250cc motorcycles in India and
is applauded for comfortable riding position that would suit most conditions from city
traffics to touring.

The fully-faired onda CBR 250R gets an integrated sporty cowl that adds some style and
enhances its aerodynamic design. It is inspired from its big daddy, the VFR 1200 and looks
very neat and impressive. The Honda CBR 250R is powered by a 249cc single cylinder
liquid cooled fuel injected engine that churns out 26bhp at 8500rpm and 22.9Nm at
7000rpm. This engine is mated to a 6-speed gearbox with 1 down and 5 up as its gear shift
pattern. The motorcycle gets telescopic at the front and 5-step-adjustable mono shock
absorber at the rear whiHch makes the rides very comfortable.

The CBR 250R is sold in two variants in India – non-ABS and ABS. Both the variants get
296mm disc in the front and 220mm disc at the rear. It gets 13 litres fuel tank capacity
which is quite decent for a 250cc motorcycle and has a kerb weight of 167 kg. The
motorcycle is sold in five variants in India, including recently introduced REPSOL edition.

HONDA CBR 150R

Honda has gone very aggressive in the Indian 2-wheeler market. The Japanese
automaker was quick in bringing in the new Honda CBR250R to India, pricing it very
aggressively in the performance motorcycle segment. The company showcased a range of
products at the 2012 Auto Expo, one of which was theHonda CBR150R. The CBR150R
is an entry level sports bike and Honda believes it is a ‘true racing sensation’. We take it
for a quick spin to find out if it really has the CBR DNA in it.

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Styling – The Honda CBR150R looks very similar to its elder sibling, the CBR250R. The
styling is quite appealing and the bike looks quite big for a 150cc machine. The VFR1200
inspired Y-shaped headlight has black surrounds around the twin pilot lights, while the
CBR1000RR inspired fairing adorns graphics, which extend to the tank. These minor
changes differentiate it from its elder sibling. Even the tail light of the Honda
CBR150R is the same as the Honda CBR250R, which is a non-LED unit. In fact the only
difference between the 150R and 250R is the slightly shorter yet differently shaped
exhaust and black colored alloy wheels in the 150R.

However look closely and you will realize the Honda CBR150R is a more compact
motorcycle. The shorter wheelbase gives it a very sporty stance. The front tyres are
100/80-17 and the rear tyres are 130/70-17, which are smaller than the ones found on the
CBR250R. The number plate mounting is not at a good position, as the front mudguard
hits it when you go over potholed roads. Honda has also given the CBR150R very
different colors, which are not available on the CBR250R. These colors have a dual paint
scheme, giving the baby CBR a very youthful appearance. The colors are the only
difference between Standard and Deluxe variants of the bike.

HONDA SHINE

The CB Shine is a 125cc commuter motorcycle developed by Honda for the mass
market segment. The Shine caters to a segment of buyers who are ok with understated
looks but expect respectable performance and efficiency. This coupled with Honda’s
refinement and reliability makes the Shine a solid all round package.

The CB Shine gets some nice graphics that can be seen running all over the fuel tank. A
3D Honda emblem on the fuel tank gives it a distinct class and style. The motorcycle gets
a lightweight advanced diamond frame and is powered by 124cc single cylinder air-cooled
engine. The engine churns out 10.12bhp at 7500 rpm and 10.54Nm at 5500 rpm and is
mated to a four speed gearbox with all back (N-1-2-3-4) shift patterns. The CB Shine gets
spring loaded hydraulic suspension at both the front and rear, along with 18-inch wheels.
80/100 tubeless tyres for both the front and the rear are standard on this bike. The CB
Shine gets 240mm front disc and 130mm rear drum that provide decent traction under
braking. The CB Shine has a kerb weight of 120kg which is pretty decent for a 125cc
motorcycle.

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The Honda CB Shine is sold in five colours – Force Silver Metallic, Black, Geny Grey
Metallic, Rebel Red Metallic and Monsoon Grey Metallic. It is available in three different
variants – Self-Disc-Alloy, Kick-Drum-Spoke and Self-Drum-Alloy.

HONDA DREAM YUGA

Honda launched the Dream Yuga motorcycle in 2012. With its launch, the
Japanese manufacturer forayed into the volume segment where most of the manufacturers
are trying to gain as much market share as they can. The Dream Yuga was inspired from
the CB Twister and the CB Shine motorcycles and is extremely reliable (like most of the
Honda engines) and is known for its low cost of ownership. The motorcycle is little bulky
unlike the CB Twister to give it big motorcycle feeling. The Dream Yuga has a very nice
ergonomics making the rider easy to ride in traffic. The bikini front fairing and the
graphics on the exterior makes the motorcycle look attractive.

The Honda Dream Yuga is powered by 109cc single cylinder air-cooled engine which
churns out 8.25bhp at 7500rpm and 8.63Nm of torque. The engine is mated to four-speed
constant mesh gearbox which has all-up gearshift pattern. The motorcycle has telescopic
suspension in the front and 5 step spring loaded suspension at the rear and features 8 litre
fuel tank. The company recently updated the motorcycle with a 2013 variant which
features the Honda Eco Technology (HET). With a claimed fuel efficiency of 72kmpl, the
motorcycle can travel for approximately 576kms on a single tank. It gets 18 inch allows
wheels and tubeless tyres at both, front and rear

The Honda Dream Yuga is available in three variants in India – Self start-drum-alloy, Kick
start-drum-spoke and Kick Start-drum-alloy. Its sold in India in five colours – Maple
Brown Metallic, Force Silver Metallic, Monsoon Grey Metallic, Alpha Red Metallic and
Black.

HONDA UNICORN

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The Honda CB Unicorn is the Japanese automaker’s mid-weight 150cc champion. On sale
in the Indian market since 2005, it is now currently in its fourth avatar as the CB Unicorn.
It carries a similar design as the original bike but now in a sportier avatar.

The bike is powered by a 149cc air cooled engine that produces 13bhp and 12Nm of
torque. It employs a chain drive that has been connected to a five-speed sequential
transmission. Standard features on the CB Unicorn include a front disc brake, mono shock
rear suspension, digital speedo with analogue tachometer, button star alloy wheels and a
digital fuel gauge. .

The Honda CB Unicorn competes with the Bajaj Pulsar 150, Hero Hunk and the Yamaha
SZ-S in the 150cc commuter segment.

HONDA TWISTER

Honda CB Twister was launched in 2010 keeping in growing entry level motorcycle
segment in mind. The segment at which the CB Twister is placed in attracts the maximum
number of sales and volumes. The Japanese manufacturer wanted to give a stylish entry
level scooter to this mass market segment with the CB Twister. The motorcycle has a fresh
and sporty design which makes the motorcycle look young and stylish. The CB Twister
gets sporty headlamp, screen less front cowl and curvy fuel tank that help this machine
look aggressive.

The Honda CB Twister is powered by a 109cc air cooled single cylinder engine that
generates 9bhp at 8000rpm and 8.97Nm at 6000rpm. The engine is mated to a four speed
gearbox with 1-down and 3-up as is gear shift pattern. The CB Twister has 8 litres of fuel
tank capacity and has a kerb weight of 108kg. The CB Twister has telescopic suspension
in the front and spring loaded hydraulic shock absorber at the rear. It gets 17 inch allow
wheels and tubeless tyres at the front and the rear.

The CB Twister is sold in three variants in India, drum brakes with kick start, drum brakes
with electric start and front disc brake with electric start. Four colour options are available
for this motorcycle – Heavy Grey Metallic, Electric Yellow Metallic, Sports Red and
Black.

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HONDA ACTIVA

The Honda Activa is the highest selling scooter from the Japanese auto maker and
has been a leader in its segment since a long time.

It was launched in 2000 and since then it has gone through few improvements with latest
being the Honda Eco Technology which helps the scooter deliver fuel efficiency of
60kmpl

The scooter is powered by 109cc air-cooled engine that develops 8bhp at 7500rpm and
8.74Nm at 5500rpm. The Honda Activa competes with the Hero Maestro and the TVS
Wego. The Activa is a value for money scooter to buy but the problem comes during the
delivery of the scooter as most of the time, there is a long waiting period.

HONDA DIO

The Honda Dio has been developed keeping in young consumers of India in mind.
The Japanese manufacturer has placed this scooter below the Aviator and the Activa in
order to reach wide range of consumers. The Dio that has a young design is very dynamic
and unisex in nature.

It is powered by a 109cc air-cooled single cylinder that churns out 8bhp at 7000rpm and
8.77Nm at 5500rpm. The Dio gets the Honda Eco Technology (HET) that helps the
scooter deliver fuel efficiency of 60kmpl.

The scooter sport the combi-brake system (CBS) with which both front and rear brakes are
applied when the rear brake lever is pressed. It has 18-litres of storage space under the seat
and is equipped with zero-maintenance battery and a viscous air filter that requires
replacement only after 16,000kms.

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HONDA AVIATOR

Honda Aviator is the third scooter that Japanese maker offers in India after the
Activa and the Dio. The Aviator with its tallish look and ‘Live your style’ slogan targets is
mainly targeted towards male riders.

Sitting at the top of current Honda scooters line-up in India, the Aviators gets the same
engine that powers the Dio and the Activa. The 109cc single cylinder air-cooled engine
churns out 8bhp at 7000rpm and maximum torque at 8.77Nm at 5500rpm. The scooter gets
the V-Matic transmission and can be started using kick start as well as self-start option.
With the recently updated Honda Eco Technology (HET) the scooter has company claimed
efficiency of 60kmpl.

The Aviator is sold in two variants in India, STD and DLX. The only difference between
the two is that the STD version gets drum brakes, whereas for the DLX variant gets a front
disc with Combined Braking System (CBS).

The Aviator is sold in two variants in India, STD and DLX. The only difference between
the two are that the STD version gets drum brakes, both at the front and the rear whereas
for the DLX variant, the scooter gets a front disc with Combined Braking System (CBS)
which is a good safety feature to have.

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2. MAIN THEME OF THE PROJECT

2.1 Need for the Project

The researcher aims at finding ways of improving customer satisfaction of AM


wings Honda. In this case the actual vehicles are very much aware of AM wings Honda
and other dealers of Honda two wheelers in the market therefore the firm which want to
improve its performance to make the customer satisfaction

2.2 Review of Literature

The literature pertaining to relationships among customer satisfaction, customer


loyalty, and profitability can be divided into two groups. The first, service management
literature, proposes that customer satisfaction influences customer loyalty, which in turn
affects profitability. Proponents of this theory include researchers such as Anderson and
Fornell (1994); Gummesson (1993); Heskett et al.(1990); Heskett et al. (1994); Reicheld
and Sasser (1990); Rust, et al. (1995); Schneider and Bowen (1995); Storbacka et
al. (1994); and Zeithaml et al. (1990). These researchers discuss the links between
satisfaction, loyalty, and profitability. Statistically-driven examination of these links has
been initiated by Nelson et al. (1992), who demonstrated the relationship of customer
satisfaction to profitability among hospitals, and Rust and Zahorik (1991), who examine
the relationship of customer satisfaction to customer retention in retail banking. The Bank
Administration Institute has also explored these ideas, in particular Roth and van der Velde
(1990, 1991)

The service management literature argues that customer satisfaction is the result of
a customer’s perception of the value received in a transaction or relationship - where value
equals perceived service quality relative to price and customer acquisition costs (see
Blanchard and Galloway, 1994; Heskett et al., 1990) - relative to the value expected from
transactions or relationships with competing vendors (Zeithaml et al., 1990). Loyalty
behaviours, including relationship continuance, increased scale or scope of relationship,
and recommendation (word of mouth advertising) result from customers’ beliefs that the

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quantity of value received from one supplier is greater than that available from other
suppliers. Loyalty, in one or more of the forms noted above, creates increased profit
through enhanced revenues, reduced costs to acquire customers, lower customer-price
sensitivity, and decreased costs to serve customers familiar with a firm’s service delivery
system (see Reicheld and Sesser, 1990).

The second relevant literature is found in the marketing domain. It discusses the
impact of customer satisfaction on customer loyalty. Yi’s “Critical review of customer
satisfaction” (1990) concludes, “Many studies found that customer satisfaction influences
purchase intentions as well as post-purchase attitude” (p. 104).

The marketing literature suggests that customer loyalty can be defined in two
distinct ways (Jacoby and Kyner, 1973). The first defines loyalty as an attitude. Different
feelings create an individual’s overall attachment to a product, service, or organization (see
Fornier, 1994). These feelings define the individual’s (purely cognitive) degree of loyalty.

The second definition of loyalty is behavioural. Examples of loyalty behaviour


include continuing to purchase services from the same supplier, increasing the scale and or
scope of a relationship, or the act of recommendation (Yi, 1990). The behavioural view of
loyalty is similar to loyalty as defined in the service management literature. This study
examines behavioural, rather than attitudinal, loyalty (such as intent to repurchase). This
approach is intended, first, to include behavioural loyalty in the conceptualization of
customer loyalty that has been linked to customer satisfaction, and second, to make the
demonstrated satisfaction/loyalty relationship immediately accessible to managers
interested in customer behaviours linked to firm performance.

Both the service management and the marketing literatures suggest that there is a
strong theoretical underpinning for an empirical exploration of the linkages among
customer satisfaction, customer loyalty, and profitability. The relatively small quantity of
empirical research performed on these relationships to date (Storbacka et al., 1994) is
probably the result of the paucity of organizations’ measuring “soft” issues, as customer
satisfaction in meaningful ways.

19
2.3 OBJECTIVES OF THE STUDY

1)To find out the customers satisfaction of Honda two wheelers

2) To find out the factors that influence on customers, when they purchasing Honda

3) To find out the expectation of the customers

4) To help service provider of Honda to find out the satisfaction of customers with
respect to after sales service provided by AM Wings Honda

2.4 RESEARCH METHODOLOGY

Research methodology is a systematical way to solve the research


problem. In this we studied various steps that are generally adopted by a researcher
in studying his research problem along with the logic behind them.

2.4.1 RESEARCH DESIGN

The project is based on descriptive research design.

2.42 SAMPLE DESIGN

Sample Unit : The population involved in this project is the customers from the
palakkad district.

SAMPLE SIZE

This refers to number of items to be selected from universe to constitute a sample. In


this research sample size consist of 250 customers.

SAMPLING TECHNIQUE

Convenient sampling technique has been used for the study.

2.4.3 DATA COLLECTION METHOD

Both primary and secondary data has been used to satisfy the objectives of the study.

20
PRIMARY DATA

The study is mainly based on primary data collected through a personal interviews
from the existing respondents own Honda two wheeler.

SECONDARY DATA

The data regarding company profile, industry profile etc has been collected from the
by laws of organization, office records and also information available on the web.

2.4.4 STASTACAL TOOLS USED

For analysis and interpretation of primary data, percentage analysis is used mainly
due to qualitative nature of data Bar diagrams and pie charts are used to represent
them in pictorial form.

Percentage Analysis

The collected data was analyzed by using percentage analysis method . percentage
was calculated by taking the number of respondents for a particular parameter
against the total number of respondents. The answers for questions asked in the
questionnaire were tabulated and analyzed using simple percentage

Weighted average analysis

Another tool used in this study is weighted average method for analyzing the rating and
ranking scales. It is know that a mean is considered to be the most represented figure for
the entire mass of data. This means for more realistic average is calculated by considering
the weighted average for the same.

Weighted average = sum of the frequency times the column weight

Response count

21
2.4.5 SCOPE OF THE STUDY

The study focuses on customer satisfaction towards the Honda two wheelers It
includes availability level of products , quality of the products , customer’s expectations
towards the products and problems faced by customers if any at Honda.

Customer satisfaction is a feeling of pleasure or disappointment resulting from


comparing a product’s perceived performance or outcome in relation to his or her
expectations. So, satisfaction is a function of perceived performance and expectations. If
the performance falls short of expectation, the customer is dissatisfied. If the performance
matches the expectations, the customer is satisfied. If the performance exceeds
expectation, the customer is highly satisfied or delighted.

When viewing the industrial sector we can see that all the corporate houses focusing on
retaining the customers without compromising on organizational objectives, ethics and
values. Customers are individuals and the organizations have to make each and every
customer feel that they are highly compassionate to them. Hence Customer Relationship
Management is having a wide scope in modern world.

2.4.6 LIMITATIONS OF THE STUDY.

 The study was restricted only to Palakkad District area.


 Many of the respondents have not given proper response
 The information that is provided by the individual may be biased
 Respondents were reluctant to disclose complete and correct information

22
2.5 Data Analysis and Interpretations

Table 2.5.1 Age of the respondent

Particulars No of respondents % of respondents


18-20 45 18
20-30 91 36.4
31-40 61 24.4
41-50 38 15.2
50 & above 15 6

Interpretation:
The table shows that 18% of the respondents are 18- 20 age group,36% of the respondents
belongs to 20–30 age group,24% of the respondents are 31-40 age group, 15% of the
respondents are 41- 50 age group and 6% of the respondents 50 & above age group.

23
CHART 2.5.1

This chart describes the age group of respondents

40

35

30

25

20
36
15
24
10
18
15
5
6
0
18-20 20-30 31-40 41-50 50 & above

24
Table 2.5.2 Gender of the respondent

Particulars No of respondents % of respondents


male 214 85.6
female 34 14.4

Interpretation:

The table shows that 85.6% of the respondents are male 14.4% of the respondents are
female.

25
CHART 2.5.2

This chart describes the gender group of respondents

90

80

70

60

50
85.6
40

30

20

10
14.4
0
Male Female

26
Table 2.5.3 Occupation of the respondents

Particulars No of respondents % of respondents


Business 79 31.6
Students 65 26
Self employed 44 17.6
Govt and privet 53 21.2
employees
Other, specify 9 3.6

Interpretation:

The table shows that 31.6% of the respondents are engaged in business, 26% of the
respondents are in students,17% of the respondents are self employed, 21.2% of the
respondents are Govt and privet employees and only 3.6% of the respondents are in other
group.

27
CHART 2.5.3

This chart describes the occupation of the respondents.

35

30

25

20

15 31.6
26
10 21.2
17.6

5
3.6
0
Business students self employed govt and privet Other,specify
employees

28
Table 2.5.4 Model of Honda two wheeler owned by respondent

Particulars No of respondents % of respondents


Activa 57 22.8
Dio 45 18
Shine 20 8
CBR 150 15 6
CBR 250 8 3.2
Unicorn 70 28

Dream Yuga 31 12.4

Other specify 4 1.6

Interpretation:

The table shows that 22.8% of the respondents are using the Activa, 18% of
the respondents are using Dio, 9.6% of the respondents are using the Shine 6%
of the respondents are using the CBR 150, 3.2% of of the respondents are
using the CBR 250, 28% of the respondents are using the Unicorn, 12.4 of the
respondents are using Dream yuga .

29
CHART 2.5.4

This chart describes the model of Honda two wheeler owned by the respondents
30

25

20

15
28
22.8
10
18
12.4
5
8
6
3.2 1.6
0
Activa Dio shine CBR 150 CBR 250 Unicorn Dream yuga other

30
TABLE 2.5.6: SOURCE OF AWARENESS OF THE PRODUCT.

Particulars No. Of respondents % of respondents


Advertisement 80 32
13.2
Relatives 33
Through Dealer 46 18.4

Promotional 34 13.6
programs
57 22.8
Friends

Interpretation:

The table shows that 32% of the respondents to know about Honda through advertisement,
13.2% of the respondents to know through relatives 18.4% of the respondents to know
through dealer and 13.6% of the respondents to know through promotional programs and
22.8% of the respondents are through friends.

31
CHART 2.5.6

This chart describes the source of awareness

35

30

25

20

15 32

22.8
10 18.4
13.2 13.6
5

0
Advertisement Friends Through Dealer Promotional Through other
&Relatives programs customer

32
Table 2.5.6 HONDA TWO WHEELER ARE BETTER THAN OTHER BRAND
Particulars No of respondents % of respondents
yes 185 74
no 65 26

Interpretation:

The table shows that 74% of respondents agreed that Honda two wheeler are better and the
rest do not agree

33
CHART 2.5.6

This chart describes the Honda brand is better than other brands

26%

Yes
No

74%

34
TABLE 2.5.7 FACTORS INFLUENCING PURCHASING DECISION .

Particulars No. Of respondents % of respondents


Quality 40 16

Price 55 22

Style 49 19.6

Performance 45 18

Mileage 61 24.4

Interpretation:
The table shows the reasons of opting Honda two wheeler. 16% of the
respondents looks quality, 22% of the respondents were looks their price, 19.6% of
the respondents were looks style, 18% of the respondents were looking performance
and 24.4% of the respondents are looking mileage.

35
CHART 2.5.7

This chart describes the factors influencing purchase decision

30

25

20

15
24.4
22
10 19.6
18
16
5

0
Quality Price Style Performance Mileage

36
TABLE 2.5.8: SATISFACTION ON CURRENT TWO WHEELER

Particulars No of respondents % of respondents


YES 183 74.4
NO 67 26.8

Interpretation:
The table shows that 74.4% of the respondents are satisfied with current two
wheeler and 23.6% of the respondents are said No.

37
CHART 8

This chart describes the satisfaction on current two wheeler

80 74.4

70

60

50

40
30 23.6
20
10
0
YES
NO

38
TABLE 2.5.9 COMMENT ON PRICE OF HONDA TWO WHEELER

Particulars No. Of respondents % of respondents


Highly priced 59 23.6
Rightly priced 171 68.4
Low price 20 8

Interpretation:
The table shows that 23.6% of the respondents commented that price of the Honda
two wheeler is very high, 68.4% of the respondents commented that it is Rightly
priced and 8% of the respondents commented that the price is low

39
CHART 2.5.9

This chart describes the comment on the price of Honda two wheeler among
the respondents.

80
68.4
70

60

50

40

30 23.6
20
8
10

0
Highly priced Rightly priced Low price

40
TABLE 2.5.10 COMPLAINTS ON WAITING PERIOD FOR DELIVERING
OF HONDA TWO WHEELER

This table describes the waiting period for delivering of Honda two wheeler.

Particulars No:of respondents % of respondents


YES 183 73.2
NO 67 26.8

Interpretation:
The table shows that 26.8% of the Respondents had complaints and 73.2% of the Respondents
did not have complaint

41
CHART 2.5.10

This chart describes the complaint on waiting period for delivering of Honda two
wheeler.

80 73.2
70

60

50

40
26.8
30
20
10
0
YES
NO

42
TABLE 2.5.11 PERIOD OF USAGE OF TWO WHEELER

Particulars No. Of respondents % of respondents

< 1 year 67 26.8

1-3 year 89 35.6

4-6 year 51 20.4

7-9 year 33 13.2

10 & above 10 4

Interpretation:

The table shows that 26.8% of the respondents were using the Honda two
wheeler less than 1 year, 35.6% of them were using between 1-3 year, 20.4%
of them were using between 4-6 year, 13.2% of them were using between 7-9
year and 4% of them were using more than 10 year.

43
CHART 2.5.11

This chart describes the period of using two wheeler by the respondents.

40 35.6
35

30 26.8

25
20.4
20
13.2
15

10
4
5

0
< 1 year 1-3 year 4-6 year 7-9 year 10 & above

44
TABLE 2.5.12: SATISFACTION LEVEL ON MILEAGE OF HONDA TWO
WHEELERS

Respondents Total
Particulars weight
court
Highly satisfied 4 75 292
satisfied 3 117 345
dissatisfied 2 41 86
Highly 17
1 17
dissatisfied
TOTAL 250 750

Weighted average

No of Respondents * weight/ total Weighted average


respondents

750 / 250 3

Interpretation:

The mean value is 3 this shows that the respondents are satisfied with respect
to the mileage of Honda two wheeler.

45
TABLE 2.5.13 SATISFACTION ON PATIENCE OF SALES EXECUTIVES IN
ANSWERING

Particulars Wight Respondents total


court

Highly 5 56 280
satisfied
Satisfied 4 58 232
Moderately 3 75 225
satisfied
Dissatisfied 2 35 70
Highly 1 26 26
dissatisfied
total 250 833

Weighted average

No of Respondents * weight/ Weighted average


total respondents

833 / 250 3.332

Interpretation:

The mean value is 3 this shows that the respondents are monetary satisfied on
patience of sales executives in answering

46
TABLE 2.5.14 SATISFACTION ON CLARITY IN ANSWERING

Particulars Wight Respondents total


court

Highly satisfied 5 67 335


Satisfied 4 74 232
Moderately 3 58 225
satisfied
Dissatisfied 2 39 70
Highly 1 12 26
dissatisfied
total 250 833

Weighted average

No of Respondents * weight/ Weighted average


total respondents

833 / 250 33.32

Interpretation:

The mean value is 3 this shows that the respondents are monetary satisfied on
patience of sales executives in answering

47
TABLE 2.5.15 SATISFACTION ON SALES EXECUTIVES
BEHAVIOUR

Particulars Weight Respondents total


court

Highly satisfied 5 63 315


Satisfied 4 58 232
Moderately 3 75 225
satisfied
Dissatisfied 2 35 70
Highly 1 19 19
dissatisfied
total 250 861

Weighted average

No of Respondents * weight/ Weighted average


total respondents

861 / 250 3.332

Interpretation:

The mean value is 3 this shows that the respondents are monetary satisfied on
patience of sales executives in answering

48
TABLE 2.5.16 SATISFACTION ON AMBIENCE OF THE SHOWROOM

Particulars Weight Respondents total


court

Highly satisfied 5 104 520


Satisfied 4 76 304
Moderately 3 40 120
satisfied
Dissatisfied 2 19 70
Highly 1 11 11
dissatisfied
total 250 1025

Weighted average

No of Respondents * weight/ Weighted average


total respondents

1025 / 250 4.1

Interpretation:

The mean value is 4 this shows that the respondents are satisfied on ambiances
of the showroom

49
TABLE 2.5.17 SERVICE CHARGES

Particulars No. Of respondents % of respondents


Affordable 147 58
Costly 103 42

CHART 2.5.17

This chart describes the service charges

58.2
60

50
41.2

40

30

20

10

0
AFFORDABLE COSTLY

Interpretation:

The table shows that the opinion on service charges, 58% of the respondents
are feel that the service charges are affordable , 42% of the respondents are
feel the service charges are costly

50
TABLE 2.5.18: INFLUENCE OF PRODUCT, SERVICE CENTRE &
SPARE PART

This table describes the influence over the availability of product, service
centre & spare parts choice by the respondents.

Particulars Wight Respondents Total


court
Highly Influenced 5 135 675
Influence 4 95 380
Moderately 3 25 75
influenced
Less Influenced 2 10 20
Not at all - -

TOTAL 250 1150

Weighted average

No of Respondents * weight/ total Weighted average


respondents

1150/250 4.6

Interpretation:

The mean value is 4.6 this shows that the respondents are Highly Influenced
nor Influenced product, service centre & spare part.

51
TABLE 2.5.19 NEXT BEST CHOICE OTHER THAN HONDA

This table describes the selection of brand other than Honda by the
respondents.

Particulars No. Of respondents % of respondents


Bajaj 65 26
Yamaha 53 21
Hero 73 29
TVS 32 13
Royal Enfield 28 11

CHART 2.5.16

35

30

25

20

15

10

0
BABAJ YAMAHA HERO TVS ROYAL ENFILD

Interpretation:

The table shows that 26% of the respondents will select the hero, 21% of the
respondents will select Yamaha, 29% of the respondents will select the Bajaj,
13% of the respondents will select the TVS and 11% of the respondents will
select the Royal Enfield.

52
TABLE 2.5.20: INFLUENCING FACTOR WHILE SELECTING DEALER

Particulars No. Of respondents % of respondents


Goodwill 61 24.4
After sale service 73 29.2
Location 52 20.8
Customer relation 56 22.4
Other, specify 8 3.2

CHART 2.5.20

This chart describes the influencing factor while selecting the dealer

35

29.2
30

24.4
25
22.4
20.8
20

15

10

5 3.4

0
Goodwill After sale service Location Customer relation Other, specify

Interpretation:

The table shows that influencing factor while selecting a dealer for 24.4% of
the respondents is goodwill, for 29.2% of the respondents it is after sale
service, for 20.8% of the respondents it is location, for 22.4% of the
respondents it is customer relation and other factor for 3.4% of the respondent.

53
TABLE 2.5.21: SATISFACTION LEVEL OF SERVICE PROVIDED BY
AM WINGS HONDA

This table describes how much the respondents are satisfied with the service
provided by the AM Wings Honda.

Particulars Wight Respondents total


court
Highly satisfied 5 98 490
Satisfied 4 102 408
Moderately 3 30 90
satisfied
Dissatisfied 2 20 40
Highly 1 5 5
dissatisfied
total 250 1033

Weighted average

No of Respondents * weight/ Weighted average


total respondents

1033 / 250 4.132

Interpretation:

The mean value is 4 this shows that the respondents are satisfied with service
provided by AM wings Honda

54
TABLE 2.5.22: WILLINGNES TO RECOMMEND HONDA TWO
WHEELERS

This table describes the willingness to recommend Honda to others.

Particulars No of respondents % of respondents


Yes 208 83.2
No 42 16.8

CHART 2.5.19

This chart describes the customers like to recommend Honda two


wheelers to others

16.8

yes
no

83.2

Interpretation:

The table shows that 83.2% of the respondents are willing to recommend
others and 16.8% of the respondents are not recommend.

55
3. FINDINGS, SUGGESTIONS AND CONCLUSION

3.1 FINDINGS

 36% of the respondents are the age group of 20 to 30

 Majority(85%) of respondents are male

 32% of the respondents occupation is business.

 Majority of the respondents are owed UNICORN and ACTIVA

 36% of the respondents are using Honda two wheeler for a period between 1-3
years.

 27% of the respondents are using Honda two wheeler for below 1 year.

 Mileage is most influencing factor in purchasing diction

 The mean value of rating scale is 4.6, it shows that the customers Highly
Influenced product, service centre & spare part for purchasing

 74 % of respondents have satisfied with Honda two wheelers

 The mean value of rating scale is 4.1, it shows that the customers satisfied with
service provided by AM wings Honda

 83% of respondents willingness to recommend Honda two wheeler

 29% respondents select hero next best choice other than Honda

 32% of respondents come to know about the product from advertisement and
friends .

 38% of respondents are had the problem of long waiting period for delivering
Honda two wheeler .

 The mean value of rating scale is 3, it shows that the customers satisfied with
mileage of Honda two wheeler

 42% of respondents are believe Honda’s service charges are costly

 29% of respondents looking after sale service for selecting a dealer

56
3.2 SUGGESTINS

1. The company shall give more attention to the mileage as it is the most preferred
feature of the bike
2. More attention can be paid to the after sales service provided to the customer
as most of the customers are influenced it.

3. More care should be exercised on advertising.

4. The delivery waiting period should be reduced to increase more customer


satisfaction.

5. Ensure satisfaction of all the customers

6. Implementation of effective sales promotion tools.

7. Give more attention to the feedback from the customers.

8. Clarity in answering should be improved

9. Give training to staffs for better service to customers.

10. All the problems facing while using Honda two wheelers has to be avoided.

11. Service charges should be affordable by all the customers

57
CONCLUSION

It has been undoubtedly proven that retaining customers is the only way to
succeed in business. The study on the customers satisfaction of Honda two
wheelers among the customers within the palakkad district was conducted in the Am
wings honda, a well known dealer in the palakkad and malappuram districts. The
study tries to reveal the factors responsible for preferring a particular brand. The
sample was collected from the customers who owned the Honda two wheeler and to
know about the satisfaction level of the Honda two wheelers. The study tries to
identify the extent of influence of various informational sources in customer
satisfaction .|In this study most of the respondents are having a good opinion about
the Honda two wheelers and the findings and suggestions of this study will support
the company in an effective and better way.

58