PROJECT REPORT ON

“CUSTOMER SATISFACTION AT VOLKSWAGEN”

Undertaken at

“VOLKSWAGEN”

Submitted in partial fulfilment of the requirements

for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

to
Guru Gobind Singh Indraprastha University, NEW DELHI

Under the Guidance of Submitted by

Dr. S. CHINNATHAMBI MAYANK WADHWANI
PROFESSOR BBA-V Semester
Evening Shift
44621301716

Session 2018-2019

1
 CONTENTS
S No Topic Page No

1 Certificate I

2 Acknowledgement II

3 Executive Summary III

Chapter I: Introduction 1-20

Chapter II: Review of Literature 21-25

Chapter III: Research Methodology 26-29

Chapter IV: Data Reduction, Presentation & Analysis 30-40

Chapter V: Data Interpretation 41

Chapter VI: Summary & Conclusions 42-43

References/ Bibliography 44

Questionnaire 45-47

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 TO WHOM IT MAY CONCERN

I MAYANK WADHWANI, Enrolment No.44421301716 from BBA-V Sem, Shift

EVENING of the Tecnia Institute of Advanced Studies, Delhi hereby declare that the Project
Report & VivaVoce (BBA-310) entitled “CUSTOMER SATISFACTION AT
VOLKSWAGEN is an original work and the same has not been submitted to any other
Institute for the award of any other degree. A presentation of the Project Report& Viva Voice
was made and the suggestions as approved by the faculty were duly incorporated.

Date: Signature of the

Student
MAYANK WADHWANI
BBA V Sem. (EVE)
44621301716

Certified that the Project Report& Viva Voice submitted in partial fulfillment of Bachelor of
Business Administration (BBA) to be awarded by G.G.S.I.P. University, Delhi by MAYANK
WADHWANI, Enrolment No.44421301716has been completed under my guidance and is
Satisfactory.

Date:
Signature of the Guide
Dr S CHINNATHAMBI

3
 ACKNOWLEDGEMENT

A project report has never been the sale product of the person whose name appears on
the cover. There are always some people whose guidance proves to be of immense help
in giving its final shape. So, it is my first duty to express my gratitude towards all of
them.
Success in my endeavor calls for co-operation and the valuable for senior and
colleagues.
I am hearty thankful to Dr. ROTASH KUMAR, H.O.D. of BBA department for allowing
me to undergo this training. I wish to express my deep sense of gratitude to my Internal
Guide Dr S CHINNATHAMBI for his able guidance and useful suggestions, which
helped me in completing the project work, in time.
Last but not the least; I am extremely thankful to god who is the ultimate guide
providing me with valuable insist, courage and determination at every doorstep, if I
don’t mention here that love, affection & co-operation which I received from my family
members. They too helped me a lot in completing this report.

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 EXECUTIVE SUMMARY
The Human Resource are the most important assets of an organization. The success or failure
of an organization is largely dependent on the calibre of the people working therein. Without
positive and creative contributions from employees, organizations cannot progress and
prosper. In order to achieve the goals or the activities of an organization, Therefore, they
need to recruit employee with requisite skills, qualifications experiences. While doing so,
they have to keep the present as well as the future requirements of the organization in mind.
Recruitment is defined as, “a process to discover the sources of manpower to most the
requirements of staffing schedule and to employ effective measure for attracting the
manpower in adequate numbers to facilitate effective selection of an efficient workfoe.”
In order to attract people for the jobs, the organization must communicate the position in such
a way that job seekers respond. To be cost effective, the recruitment process should attract
qualified applicants and provide enough information for unqualified persons to self-select
themselves ort.
The term “HR recruiter” may sound redundant, as both human resources managers and
recruiters’ not find job candidates and get them hired, this job is very specific.
Recruiters will work from resumes or by actively soliciting individuals qualified for
positions. A recruiter’s job includes reviewing candidate’s job
experiences, negotiating salaries, and placing candidates in agreeable employment positions.
Recruiters typically receive a free from the hiring employers.

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 CHAPTER -1
INTRODUCTION

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 INTRODUCTION

Research Motivation

A multitude of companies today has already identified the need to create a loyal

customer base and acknowledges that maintaining existing customers and extending business

with them is significantly less expensive than acquiring new customers. Empirical proof of

the proliferation of such customer loyalty efforts in the business world is e.g. provided in the

form of loyalty programs, which many companies have installed during the past years. By

engaging in efforts aimed at creating customer loyalty, which in turn fosters financial success

in monetary terms firms react to increasing competitive challenges.

Within research, the investigation of customer loyalty gained importance when the

classic marketing paradigm with its instrumental and transactional orientation proved

unsuitable in the context of longer-term business relationships. Instead, the relationship

marketing approach, which is specifically concerned with the study of relational ex-changes,

gained importance within research, serving as a conceptual foundation for the majority of

customer loyalty researchers.

The question of how loyalty develops has been subject to an abundance of research,

leading to an expansive body of literature on loyalty determinants. The extant literature

exploring different factors and their constituent effects on loyalty, however, reveals a strong

focus on consumer goods and industrial equipment settings, while industrial services have

received relatively little attention so far. In addition, the majority of articles incorporates

merely a few potential determinants and thus fails to draw a comprehensive picture of the

mechanisms of customer loyalty formation.

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Research Goals

As outlined in the preceding section, Customer feedback is confronted with diverse

management challenges that result from continuous growth, globalization, and customer

diversity. The aim of the present study therefore is to identify determinants of customer

loyalty in relationships between Company’s and their customers by explicitly considering

different characteristics and cultural contexts of such relationships. In this sense, the present

research is positioned at the interface of marketing and feedback and is intended to contribute

not only to satisfaction research, but also to research in marketing, customer loyalty, and

cultural studies.

In order to address the concept of customer satisfaction, it is important to understand

the mechanisms underlying loyalty in the company’s outsourcing context.

As stated previously, a globalizing marketplace and the need of Company’s to render

satisfaction services on an international scale requires intercultural management

competencies. Before being able to apply such management techniques, though, a thorough

understanding of cultural differences between different countries is necessary. The present

study will therefore provide a starting point for such analyses by investigating cultural

differences between two important markets for customer satisfaction, the USA and Germany.

Particular differences between Germany and the USA will be identified and applied to the

previously devised customer loyalty model. As a result, differences between the two countries

with respect to the formation of customer loyalty can be inferred.

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 Finally, this study will investigate in how far different relationship conditions

influence the development of customer loyalty. For this purpose, important relationship

characteristics will be identified and their moderating influences on the customer loyalty

model will be examined. This will provide information on the robustness of the customer

loyalty model versus relational contingencies and will suggest if it is necessary to

differentiate customer loyalty efforts accordingly.

Customer Satisfaction

The term satisfaction is often misinterpreted to mean need. In fact, the scope of

satisfaction goes well beyond need. Customer satisfaction, a term frequently used

in marketing, is a measure of how products and services supplied by a company meet or

surpass customer expectation. Customer satisfaction is defined as "the number of customers,

or percentage of total customers, whose reported experience with a firm, its products, or its

services (ratings) exceeds specified satisfaction goals”.

It is seen as a key performance indicator within business and is often part of

a Balanced Scorecard. In a competitive marketplace where businesses compete for customers,

customer satisfaction is seen as a key differentiator and increasingly has become a key

element of business strategy.

Within organizations, customer satisfaction ratings can have powerful effects. They focus

employees on the importance of fulfilling customers’ expectations. Furthermore, when these

ratings dip, they warn of problems that can affect sales and profitability. These metrics

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quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-

mouth marketing, which is both free and highly effective.[

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be

able do this, firms need reliable and representative measures of satisfaction.

In researching satisfaction, firms generally ask customers whether their product or

service has met or exceeded expectations. Thus, expectations are a key factor behind
satisfaction. When customers have high expectations and the reality falls short, they will be

disappointed and will likely rate their experience as less than satisfying. For this reason, a

luxury resort, for example, might receive a lower satisfaction rating than a budget motel—

even though its facilities and service would be deemed superior in “absolute” terms.

The importance of customer satisfaction diminishes when a firm has increased bargaining

power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an

industry that is an oligopoly, where only a few suppliers of a certain product or service exist.

As such, many cell phone plan contracts have a lot of fine print with provisions that they

would never get away if there were, say, a hundred cell phone plan providers, because

customer satisfaction would be way too low, and customers would easily have the option of

leaving for a better contract offer.

There is a substantial body of empirical literature that establishes the benefits of customer

satisfaction for firms.

Customer Satisfaction in 7 Steps

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1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If

you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest

assured, though, it does get easier over time. It's important to meet your customers face to

face at least once or even twice during the course of a project.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a

response to an email or phone call. It might not always be practical to deal with all customers'

queries within the space of a few hours, but at least email or call them back and let them

know you've received their message and you'll contact them about it as soon as possible.

Even if you're not able to solve a problem right away, let the customer know you're working

on it.

3. Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile through the phone. This

is very true. It's very important to be friendly, courteous and to make your clients feel like

you're their friend and you're there to help them out. There will be times when you want to

beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's vital

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that you keep a clear head, respond to your clients' wishes as best you can, and at all times

remain polite and courteous.

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly defined

customer service policy is going to save you a lot of time and effort in the long run. If a

customer has a problem, what should they do? If the first option doesn't work, then what?

Should they contact different people for billing and technical enquiries? If they're not

satisfied with any aspect of your customer service, who should they tell? There's nothing

more annoying for a client than being passed from person to person, or not knowing who to

turn to. Making sure they know exactly what to do at each stage of their enquiry should be of

utmost importance. So make sure your customer service policy is present on your site -- and

anywhere else it may be useful.

5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company you were a

client of? Have you ever had a personalized sign-up confirmation email for a service that you

could tell was typed from scratch? These little niceties can be time consuming and aren't

always cost effective, but remember to do them.

Even if it's as small as sending a Happy Holidays email to all your customers, it's

something. It shows you care; it shows there are real people on the other end of that screen or

telephone; and most importantly, it makes the customer feel welcomed, wanted and valued.

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6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out

Sometimes this is easier said than done! However, achieving this supreme level of

understanding with your clients will do wonders for your working relationship.

7. Honor Your Promises

It's possible this is the most important point in this article. The simple message: when

you promise something, deliver. Clients don't like to be disappointed. Sometimes, something

may not get done, or you might miss a deadline through no fault of your own. Projects can be

late, technology can fail and sub-contractors don't always deliver on time. In this case a quick

apology and assurance it'll be ready ASAP wouldn't go a miss.

Customer Loyalty

Obtaining a thorough understanding of customer loyalty is a prerequisite for the

execution of the research at hand. For that, the development of customer loyalty research

within the framework of relationship marketing will be presented first, before different

customer loyalty concepts will be introduced. From these concepts, a definition of customer

loyalty for use in this study will be derived, before both consequences and antecedents of

customer loyalty will be portrayed.

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 Since the beginning of the 1990s, customer loyalty has gained importance both in

relationship marketing research and in business. In business, this can be attributed to

changing market- and competition-environments. Due to a shift from a sellers’ to a buyers’

market and because of an increasing degree of globalization, most industries find themselves

confronted with new challenges. In a first phase, firms tried to face these challenges by

focusing on their internal processes and organizational structures, trying to achieve cost

reductions by concentrating on internal improvements. A second phase of external focus

followed, where firms directed attention to their customers, trying to retain existing ones and

to win over new ones (churning). Since “acquiring new customers is much more expensive

than keeping them”. And “loyal customers are the bedrock of any business”. A loyal customer

base represents a barrier to entry, a basis for a price premium, time to respond to competitor

innovations, and a bulwark against deleterious price competition. Loyalty is critical to brand

volume, is highly correlated to market share, and can be used as the basis of predicting future

market share; consequently, understanding loyalty appears critical to any meaningful analysis

of marketing strategy.

In marketing research, two trends mark the development of customer loyalty. While

individual transactions initially were in the center of marketing research, the focus shifted

towards analyzing relationships states that the ‘traditional’ marketing concept of the

marketing mix with its ‘4 Ps’, developed in the middle of the last century, had been the

established approach until the 1990s. This approach, how-ever, focuses solely on

transactions, a deficit tackled by the relationship marketing approach. At the core of it is the

study of relationships between buyers and sellers of goods or services, in contrast to merely

examining transactions. An often cited and comprehensive definition of relationship

marketing is provided “Relationship marketing refers to all marketing activities directed

toward establishing, developing, and maintaining successful relational exchanges.”

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Therefore, the relationship marketing approach pro-vides a suitable environment in which

customer loyalty research can be nested.

While the development of relationship marketing began in the early 1970s, it was not

until the late 1980s that works from the ‘Nordic School of Services’. Initiated a paradigm

shift that geared marketing towards the creation, conservation, and extension of buyer-seller

relationships. Although relationship marketing today is widely accepted among marketing

researchers, its promoters do not postulate the replacement of the transactional approach, but

rather juxtapose the two approaches. For example, delineates a strategy continuum, in which

different goods require different degrees of transaction- and relationship-based marketing

strategies. As a result of the focus on relationships in marketing research, customer loyalty

gained importance within research.

Before determining which stream the present study can be associated with, however,

it is important to create a clear understanding of different customer loyalty concepts prevalent

in research. This will be accomplished in the following section.

Customer Loyalty Concepts

Reviewing research, it becomes obvious that the notion of customer loyalty is blurred.

At its core, customer loyalty deals with relationships between suppliers and their customers

and can be distinguished from other loyalty aspects, such as brand loyalty, which refer to a

more abstract attachment, such as that towards a brand. Within German customer loyalty

literature, the notion of customer loyalty is even more faceted, encompasses both ‘customer

loyalty’ and ‘customer retention’ distinguishes an active, supplier-focused component and a

passive, customer focused component of customer loyalty.

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 In the supplier-focused perspective, customer loyalty is seen as a bundle of measures

that aim at improving relationships with customers. The supplier is in the center of attention

and the customer is only regarded as the factor at which success of customer loyalty becomes

manifest. Here it becomes clear that this approach contains a conceptual deficit. It is the

customer who eventually decides on whether customer loyalty management is successful or

not, because all activities undertaken by a supplier can only be geared at influencing

customers to be loyal. A customer-focused perspective therefore has to be added to evaluate

the success of customer loyalty management.

Within the customer-focused perspective, customer loyalty is conceptualized taking

into account customers’ complex characteristics. These can either be approached as

customers’ directly observable actions and/or take into account their attitudes and intentions.

Since customers’ actions are directly influenced by their attitudes and intentions, it is obvious

that these have to be scrutinized to understand and manage loyalty. A third perspective is a

synthesis of the former two approaches. The relationship-focused perspective directly

examines the relationship between suppliers and customers. Accordingly, the objects of study

in this perspective usually are buying behavior in retail contexts and long-term relationships

marked by frequent interaction between suppliers and buyers in industrial contexts.

It is clear that the supplier-focused perspective with its instrumental approach is

significantly different from the other two approaches. Distinguishing the customer- and the

relationship-focused perspective, however, is difficult, because both focus on the customer.

 Behaviorist customer loyalty concepts

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 Behaviorist concepts of customer loyalty have been at the core of early marketing

research and focus on customers’ observable behavior, as e.g. in purchasing behavior.

Accordingly, customer loyalty is established, when customers demonstrate consistency in

their choice of supplier or brand. “Hard-core” loyalty, when one product alternative is

exclusively repurchased and of “reinforcing” loyalty, when customers switch among brands

but repeat-purchase one or more alternatives to a significant extent. Similarly, customer

loyalty as “the proportion of times a purchaser chooses the same product or service in a

specific category compared to the total number of purchases made by the purchaser in that

category“. Pegging customer loyalty to purchasing behavior, however, is very critical, there

can be a multitude of factors affecting purchasing behavior, such as product availability or

special deals, which are not grasped by looking at purchases alone. A main deficit of the

behavioristic approach thus is that it does not look at the drivers’ behind purchasing behavior.

Another disadvantage of behavioristic customer loyalty concepts is their ex-post

approach. When loyalty is only expressed through purchases, information on customers’

actual loyalty status in between purchases is not available. Consequently, decreasing loyalty

is only recognized after it manifests itself through changed purchasing behavior. Only in

relationships with frequent interaction can a supplier integrate further aspects, such as

complaints, into customer loyalty management. The reason, why behavioristic concepts may

still be valuable, is because the measurement of customer loyalty in this approach does not

necessitate involvement by the customer. The assessment of attitudes and intentions would

always imply customers’ cooperation through participation in surveys. By simply recording

purchases, e.g. through delivery records in the industrial context or customer cards in a

consumer context; the assessment of customer loyalty poses little difficulty. Particularly in

areas, where most purchases can be easily ascribed to individual customers, as is the case

with mail-ordering or book-stores on the internet, the behavioristic approach is useful for

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identifying different customer groups and their characteristics. Such firms, however, can only

assess purchases of their own products, while purchases of competing products go unnoticed.

Firms can therefore neither draw conclusions about relative changes of purchasing behaviors,

nor evaluate their comparative market position.

 Neo-behaviorist customer loyalty concepts

These narrow technical definitions do not adequately capture the richness and depth

of the loyalty construct implicit in a relational framework.” Consequently, neo-behavioristic

customer loyalty concepts start at the shortcomings of the behavioristic approach by

examining the causes of loyalty. As early as 1969, Day concluded that “loyalty should be

evaluated with both attitudinal and behavioral criteria” otherwise accidental repeat-purchases,

merely resulting from situational exigencies, would be regarded as indicators of loyalty.

There is no agreement, however, on the question, whether attitudes are part of customer

loyalty or merely an antecedent of it. Some authors propose that only positive attitude can

lead to ‘true’ customer loyalty. If attitude then is a necessary prerequisite of customer loyalty,

some drivers of loyalty cannot be explained. Transaction cost theory, for instance, provides

the concept of asset specificity. Relationship-specific investments create economic switching

barriers and therefore increase customer loyalty. However, the mere repeat purchase of goods

or services for reasons of economic constraints would not qualify as loyalty, as positive

attitudes are not involved. In order to avoid the outlined problem, it is useful to abstain from

defining positive attitude to be a necessary antecedent of loyalty. Instead, researchers usually

consider intentions and observable behavior to be the constituting elements of customer

loyalty.

Determinants of Customer Loyalty

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 In order to be able to gear marketing activities towards the creation of customer

loyalty, its determinants and their precise effects have to be known. Accordingly, many

researchers have investigated this topic. In order to gain an overview of the determinants

identified in these works, they can be structured in three dimensions:

(1) Company-related determinants refer to the supplier itself or to the goods or services

offered. It is a prerequisite for the existence of customer loyalty that the offered goods

or services create utility for the customer and that they are available. In this respect, an

assessment is usually performed by examining quality. In order to evaluate the price-

performance ratio, customers will pay attention to prices. Customer loyalty will also be

influenced by the reputation a company has and ultimately by customer loyalty programs

offered.

(2) Relationship-related determinants play a significant role in long-term

relationships. Factors regarding the interaction between supplier and customer,

such as relationship quality, previous experiences, and trust are important. Commitment,

which provides evidence of emotional closeness and moral or normative feelings of

obligation, takes a central role in relationships. Specificity and dependence can lead to

economic, psychological and social switching barriers.

(3) Customer-related determinants are mainly influenced by customers’

characteristics. In this respect, affect and involvement, and consequently also the

importance of the good or service to the customer, are important. In addition to the

above delineated areas, the effects of the market environment and competition are

researched, as is the link between satisfaction and loyalty, which plays an important role in

the research of customer loyalty and is often placed in one of the three dimensions. However,

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as most other determinants influence satisfaction, it cannot be clearly separated and should

therefore be listed as a distinct category.

COMPANY PROFILE

Overview
Volkswagen AG is a Germany-based automobile manufacturer. The Company develops
vehicles and components, and also produces and sells vehicles, in particular Volkswagen
brand passenger cars and commercial vehicles. The Company consists of two divisions:
Automotive and Financial Services division. The Automotive division is responsible for the
development of vehicles and engines, the production and sale of passenger cars, commercial
vehicles, trucks and buses, and the genuine parts business. The Financial services division’s
portfolio of services includes dealer and custom financing, leasing, banking and insurance
activities, and fleet management. The Company brands include Audi, Skoda, Bentley, SEAT,
Scania. During the year ended December 31, 2009, a total of four million vehicles were
delivered to customers worldwide. On February 20, 2009, the Company acquired Scania AB.
In December 2009, the Company acquired 49% of Porsche Zwischenholding GmbH.

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Volkswagen

ABOUT

Volkswagen AG is a Germany-based automobile manufacturer. The Company develops vehicles and

components, and also produces and sells vehicles, in particular Volkswagen brand passenger cars and
commercial vehicles. The Company consists of two divisions: Automotive and Financial Services
division. The Automotive division is...
BUY/SELL

» Analyst Consensus
OVERALL
Beta: -0.24

Market Cap (Mil.): €63,139.64

Shares Outstanding (Mil.): 465.19

Annual Dividend: 2.20

Yield (%): 1.69

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 FINANCIALS
VOWG.DE Industry Sector

P/E (TTM): 7.55 6.11 19.93

EPS (TTM): 519.28 -- --

ROI: 7.11 1.28 2.26

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 CHAPTER -2
LITERATURE REVIEW

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 REVIEW OF LITERATURE

SURVEY

After having presented the necessary fundamentals of customer loyalty in the

preceding section, this section will elaborate on the reference point of the research project,

i.e. questionnaire

Nature of Survey
 Answers to clear research questions.

 Specific statistics.

 Information about the policies of current environment.

 Assessing data quality.

THEORETICAL FRAMEWORK

Attitude Measurement

Attitude is defined as a predisposition of a person to respond to an idea or object.

Attitudes are composed of beliefs about the object of concern, such as feelings about the

object, likes / dislikes of an individual for an object.

An attitude is learned, it is naturally stable.

Measurement means assigning numbers or other symbols to characteristics of objects

according to certain pre-specified rules.

By attitude measurement, we mean to measure the attitude of a person (e.g. a consumer, an

employee, a student, a manager etc.) towards objects / situations.

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.

Scaling

– Scaling is the term commonly used to refer the process of measuring

attitudes. It describes the procedures of assigning numbers to various
degrees of opinion, attitude and other concepts.

– A procedure for the assignment of numbers (or other symbols) to a

property of objects in order to impart some of the characteristics of
numbers to the properties in question.

– Attitude Scaling is the process of assessing an attitudinal disposition using

a number that represents a person’s score on an attitudinal continuum
ranging from an extremely favorable disposition to an extremely
unfavorable one

Measurement scales

• Nominal Scale:à A scale whose numbers serve only as labels or tags for identifying

and classifying objects with a strict one-to-one correspondence between the numbers

and the objects. Although any information that vary degree of attitude, skills

understandings etc. will not be measured successfully on nominal scale. The only

permissible act is counting. E.g. No. Of players, roll numbers in the class. The

statistics that can be applied on nominal scale are percentages, mode chi-square and

binomial test.

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 • Ordinal Scale:à It is a ranking scale in which numbers are assigned to objects to

indicate the relative extent to which some characteristic is possessed. Thus it is

possible to determine whether an object has more or less of characteristic than some

other object, but not how much more or less. It is meaningful to calculate percentile

quartile median, rank order co-relation from data

• Interval Scale:à In this scale, numerically equal distances on the scale represents

equal value in the characteristics being measured. Statistical techniques that may be

used on interval scale data include all of those for nominal or ordinal in addition to it

arithmetic mean, standard deviation, product moment co-relation can also be used.

• Ratio Scale:à Ratio scales have an absolute or true zero of measurement. Ratio scale

represents the actual amount of variables. It provides the facility of a kind of

comparison which is not provided by any other scale.

SCALING TECHNIQUES

• Arbitrary Approach:à These scales are developed on adhoc basis and depends
on subjective selection. Few statements or items are collected which are
appropriate to a given topic. Merits of this scales are that they can be
developed very easily, quickly and with relatively less expense. But there is no
objective evidence that such scales measure the concept for which they have
been developed.

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 • Consensus Approach :à Here a panel of judges evaluate the items chosen for
inclusion in the instrument in terms of whether they are relevant to the topic
area and unique in implication.
•
• Item Analysis Approach:à Under it a number of individual items are
developed into a test which is given to a group of respondents. After
administering the test, the total scores are calculated for every one. After
administering the test, the total scores are calculated for every one. Individual
items are then analysed to determine which items discriminate between persons
or objects with high total scores and those with low scores.

• Cumulative Scales Approach:à These are chosen on the basis of their

conforming to some ranking of items with ascending and descending power.

• Factor Analysis:à It may be constructed on the basis of intercorrelations of

items which indicate that a common factor accounts for the relationship
between items. This relationship is typically measured through factor analysis
method.

SCALE CONSTRUCTION TECHNIQUE

• Semantic Differential Scales (Thurstone type Scales): à This scale is

developed by using consensus approach. It is a seven-point rating scale with
end points associated with bipolar labels. It has been widely used in comparing
brand, product and company images, developing advertising and promotion
strategies and in new product development studies.

Procedure for Thurstone Scale:à

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 1) The researcher gathers a large no. of statements, twenty or more that express
the viewpoint.

2) These statements are then submitted to a panel of judges, each of whom arranges
them in 11 groups ranging from one extreme to another. Generally in the first pile
most unfavorable issue is placed.

3) The sorting by each judge yields a composite position for each of the items. In case
of disagreement between the judges about an item, that item is discarded.

4) For items that are retained each is given a scale value between one and eleven.
5) A final selection of statements is then made. For this purpose a sample of
statements, whose scores are spread evenly from one extreme to the other is taken.

Likert / Summated Scale:à This scale is developed by utilizing the item analysis
approach wherein a particular item is evaluated. Each response is given a numerical
score, indicating his agreement or disagreement, and the scores are totaled to measure
the respondent’s attitude. Advantages are easy to construct and administer, suitable for
mail, telephone or personal interviews. The major disadvantage its take much time to
complete because respondents have to read each item.

Procedure for Likert type Scale

1)Researcher collects a large number of statements which are relevant to attitude.

2) A trial test is administer to a number of subjects.

3) Numbers are allotted for each score.

4) Then the total score of each respondent is obtained by adding his scores that he
received for separate statements.

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5)Those statements having highest and lowest total scores will be identified.

6) Only those statements that correlate with the total test should be retained in the
final instrument and all others must be discarded from it.

• Semantic Differential Scale :à This scale is developed by Chrles E. Osgood, G J Suci

and P.H Tannenbaum. This scale is based on the presumption that an object can have

different dimensions which can be located in multidimensional property space called a

semantic space. For e.g. for analyzing candidates for leadership .

• Procedure:

1) The Concept to be studied is selected on the basis of personal judgement, keeping in

view the nature of problem

2) Scales are selected bearing in mind the criteria of evaluation.

3) Then a panel of judges are used to rate the various stimuli on the various selected

scales.

OBSERVATION METHOD

• It is one of the methods for data collection. It can be used to get both past and current

information. In marketing research we can check the display positions of various

products in stores, to find out how frequently the product is out of stock etc.

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Advantages of this method are-

It enables to record the behaviour as it occurs.

It can be used regardless of respondents willingness to report or not.

It can be used for those who are unable to respond like infants, animals etc.

Limitations are-

 Unable to observe the past or future

behaviour of any person.

 It does not help in finding a person’s opinion or knowledge on any subject matter

 It is very slow and unable to cover large

sample of population and

 Inadequacies of our sense organs also

distorts the observation.

 Distorted by observer’s interest, freshness and

freedom from interruption.

Methods of observation

• Structured- unstructured observation:à Structured Observation is used when the

research problem has been formulated precisely and the observers have been told

specifically what is to be observed. Unstructured observation implies that observers

are free to observe whatever they think is relevant and important.

30
• Disguised- undisguised observation :à In Disguised observation, the subjects do not

know that they are being observed. In Undisguised observation subjects know about

the observation.

• Direct- indirect observation: In direct observation, the event or the behavior of a

person is observed as it occurs. In Indirect observation some record of past behavior is

observed.

• Human- mechanical observation:à In human observation trained observers are

required to observe and faithfully record their observations. In Mechanical

observation mechanical devices such as eye camera and audiometers are used.

• Observation under natural setting- laboratory setting:à Observations in field studies

are in their natural settings and are therefore in realistic conditions Whereas in

laboratory settings, enables the observer to control variables which influence the

behavior of people.

QUESTIONNAIRE METHOD (of collecting data)

A formal list of questions used for obtaining information from respondents is called a

questionnaire. A questionnaire is a structured technique for data collection. It consists of a

series of questions, ordered in a logical sequence, to which the respondents reply.

Functions (objectives) of a questionnaire: -

1) It translates the research objectives into specific questions that are to be asked to the

respondents.

31
2) It standardizes questions and response categories so that every participant responds to

identical stimuli.

3) By its wording, question flow and appearance, it fosters cooperation and keeps

respondents motivated throughout the interview.

4) It serves as a permanent record of the research.

5) It speeds up the research process.

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Questionnaires can be classified on following three basis:
1. The degree to which a questionnaire is structured (i.e. structured or non-structured

questionnaire);

2. The disguise or lack of disguise of the objectives or the sponsorer of the questionnaire

(i.e. a disguised or an undisguised questionnaire);

3. The communication method used (i.e. by personal interview, telephone, or mail)

1) Structured questionnaires are those where the questions to be asked are

standardized, and no variation is permitted in terms of the wording of the questions

between different respondents. In a structured questionnaire, we can standardize

either (1) questions only, or (2) both questions and answers.

2) Non-structured questionnaire is one in which no specific set of questions

are to be asked from each respondent. The researcher asks the questions in the manner

in which he/she deems fit in a particular situation. In fact, the researcher may only

have certain main points on which he may develop the questions at the time of actual

interview. Thus a non-structured questionnaire is devoid of rigidity and allows

considerable freedom to the researcher in choosing the order as well as specific

content of questions.

33
Advantages of Questionnaires

1. Versatility: all most every problem of business research could be

approached using a questionnaire.
2. Cost: Questionnaires are cost effective
3. Are easy to analyze.
4. Questionnaires reduce researcher’s bias, as answers are in respondents
own words.
5. Large samples can be made use of and thus the results can be more
reliable.

Disadvantages / Limitations of Questionnaire method of data

collection

1. Questionnaires are useful only when respondents possess, and are willing to
provide the needed information. In case any of these things is lacking, the
entire purpose (of questionnaire) is defeated.

2. Often questionnaires suffer with a low rate of response.

3. Often respondents may not provide a true answer to the researcher

(especially when they encounter an embarrassing / ego hurting question).

34
 CHAPTER -3
RESEARCH
METHODOLOGY

35
 RESEARCH METHODOLOGY

Objective of the study

 A study on customer level of satisfaction in towards VOLKSWAGEN

HALDWANI.
 To identify the loyalty of customer towards VOLKSWAGEN HALDWANI.

 To measure the specific reasons for satisfaction and dissatisfaction in

with VOLKSWAGEN HALDWANI.

 To identify the recommendations of VOLKSWAGEN HALDWANI to others

by existing loyal customers.

36
Scope of the study

 Scope of the study mainly to know the current level of customer

satisfaction.

 Scope of the study mainly to know the loyalty of the customer towards

the company.

 To give suggestion regarding improvement of performance standard of

the Company

 To inform the management about current level.

37
Limitations of the study

 Time limit restricts detailed survey work for this particular topic of

research

 Some customers have lack of time, so they may not communicate properly.

38
Research design

The objective of the study has been achieved by using both Primary and Secondary
Data’s. The data’s obtained for the study was primarily from field investigation carried out
among the customers of Volkswagen Haldwani.

Sampling

Sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting items for
samples.

Samples are studied for the population who are the customers of Volkswagen
Haldwani. Research design is needed because it facilitates the smooth railing of the various
research operations thereby making research as effective as possible yielding maximal
information with minimal expenditure of effort, time and money.

Sample Size

The Customers, to whom Volkswagen Haldwani provides service is taken into

consideration. The sample size is 85.

Primary Data

Primary data was collected through Online Survey

Survey Research:

Survey research as name suggests, is distinguished by the facts that the data are
collected from the people who are thought to have the desired information, through
questionnaire.

39
 Questionnaire was posted over the internet and sent to the respective customers in
order to collect information related to the topic. The questionnaires so designed for this
purpose were structured.

Secondary Data

Secondary data was collected through company websites and records. And analysis on
various aspects has been done using different statistical techniques.

The methods followed for the analysis and interpretation of data are:

 Uni variate Percentage Analysis

 Weighted average method

 Univariate Percentage Analysis:

Percentage refers to a special kind of ratio. It is used to make comparison between

two or more series of data. They can be used to compare the relative items, the distribution of
two or more series of data, since the percentages reduces every thing to a common base and
there by allow meaningful comparisons to be made. Here only one factor is considered.

NO OF RESPONDENTS
PERCENTAGE = x 100
TOTAL RESPONDENTS

 Weighted Average Method:

This method is a used when the relative importance of the different items is not the
same. The term weighted stands for the relative importance of the different items. It is

40
assumed that inventory costs should be assigned on the basis of average costs of identical
units. An average cost unit is determined by dividing the total costs of the units by the
number of units.

The weighted average method is logical when assigning costs to units that become mixed
together, there by making separate identification difficult or impossible.
The formula is:

__ ∑ WX
X =
∑W

Where;

X = Weighted Arithmetic mean

X = Frequency or no of response dents

W = Weighted allotted to each factor

41
 CHAPTER -4
DATA ANALYSIS &
INTERPRETATION

42
 DATA ANALYSIS & INTERPRETATION

Customers overall experience to accessibility and responses of Volkswagen Haldwani

Representative through Telephone.

Options Respondents Percentage

Excellent 16 20 %

Very Good 16 20 %

Good 32 40 %

Fair 16 20 %

Poor 0 0%

Total 80 100 %

Table - 1

Interpretation:

20 % of the customers responded that their overall experience to accessibility

and responses through Telephone is Excellent. Next 20 % says it is very good. Good being

awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the service

is fair

43
 Figure - 2

(Chart showing Customers overall experience to accessibility and responses of

Volkswagen Haldwani representative through Telephone)

44
Customers overall experience to accessibility and responses of Volkswagen Haldwani
representative through E-mail.

Options Respondents Percentage

Excellent 16 20 %

Very Good 16 20 %

Good 32 40 %

Fair 16 20 %

Poor 0 0%

Total 80 100 %

Table - 2

Interpretation:

20 % of the customers responded that their overall experience to accessibility

and responses through E-mail is Excellent. Next 20 % says it is very good. Good being

awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the service

is fair

45
 Figure - 3

(Chart showing Customers overall experience to accessibility and responses of

Volkswagen Haldwani representative through E-mail)

46
Clearance representative ability to help customer issue/need

Options Respondents Percentage

Excellent 15 19 %
Very Good 17 21 %
Good 22 28 %
Fair 19 24 %
Poor 7 9%
Total 80 100 %

Table - 3

Interpretation:

` 19 % of the customers responded that their overall experience to ability to help

resolve issue or need is Excellent. Next 21 % says it is very good. Good being awarded by 28

% of the customer. 24 % is somewhat satisfied so they said that the service is fair. 9 % is not

satisfied with the service.

47
 Figure - 4

(Chart showing Clearance representative ability to help customer issue/need)

48
Customers Overall experience with Volkswagen Haldwani
Clearance Department

Options Respondents Percentage

Excellent 17 21%
Very Good 15 19%
Good 14 18%
Fair 30 38%
Poor 4 5%
Total 80 100 %

Table - 4

Interpretation:

21 % of the customers responded that their overall experience with clearance

department is Excellent. Next 19 % says it is very good. Good being awarded by 18 % of the

customer. 38% is somewhat satisfied so they said that the service is fair. 5 % is not satisfied

with the service.

49
 Figure - 5

(Chart showing Customers Overall experience with Clearance Department)

50
Customer Satisfaction level with Volkswagen Haldwani

Options Respondents Percentage

Extremely Satisfied 15 19%
Satisfied 20 25%
Neutral 22 28%
Dissatisfied 18 23%
Extremely Dissatisfied 5 6%
Total 80 100 %

Table - 6

Interpretation:

19 % of the customers responded they are Extremely Satisfied with the

service. Next 25 % they are satisfied. Neutral is 22 % of the customer. 23 % is somewhat

satisfied so they said that the service is fair. 3 % is not satisfied with the service.

51
 Figure - 7

(Chart showing Customer Satisfaction level)

52
Customer Responses or Reasons for satisfaction

 Less transit time

 Advance furnishing of documents

 Keeping customer fully informed

 Timely clearance

 Good after Sales service.

Interpretation:

Various reasons are given by customers for satisfaction like less transit time, Clear

tracking, Advance furnishing of documents, keeping customer fully informed, Timely

clearance, Good after sales service etc.

53
Customer Responses or Reasons for Dissatisfaction

 Delay in delivery period

 High cost of spares.

Interpretation:

Various reasons are given by customers for dissatisfaction. The company need more

focused approach for satisfying the customers

54
Over the past years loyalty towards Volkswagen Haldwani has grown stronger

Options Respondents Percentage

Yes 55 69%
No 25 31%
Total 80 100 %

Table - 8

Interpretation:

69 % of the customer responded in favour that loyalty towards Volkswagen

Haldwani has grown stronger. On the other hand 31 % of the people say No that loyalty

towards Volkswagen Haldwani has not grown stronger.

55
 Figure - 9

(Chart showing status of loyalty towards Volkswagen Haldwani has grown stronger)

56
 FINDINGS

 20 % of the customers responded that their overall experience to accessibility and

responses through Telephone is Excellent. Next 20 % says it is very good. Good being

awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the

service is fair

 20 % of the customers responded that their overall experience to accessibility and

responses through E-mail is Excellent. Next 20 % says it is very good. Good being

awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the

service is fair

 19 % of the customers responded that their overall experience to ability to help

resolve issue or need is Excellent. Next 21 % says it is very good. Good being

awarded by 28 % of the customer. 24 % is somewhat satisfied so they said that the

service is fair. 9 % is not satisfied with the service.

 21 % of the customers responded that their overall experience with Volkswagen

Haldwani clearance department is Excellent. Next 19 % says it is very good. Good

57
 being awarded by 18 % of the customer. 38% is somewhat satisfied so they said that

the service is fair. 5 % is not satisfied with the service.

 11 % of the customers responded that their overall experience with Volkswagen

Haldwani clearance department is Excellent. Next 31 % says it is very good. Good

being awarded by 50 % of the customer. 5 % is somewhat satisfied so they said that

the service is fair. 3 % is not satisfied with the service.

 19 % of the customers responded they are Extremely Satisfied with the service. Next

25 % they are satisfied. Neutral is 22 % of the customer. 23 % is somewhat satisfied

so they said that the service is fair. 3 % is not satisfied with the service.

 69 % of the customer responded in favour that loyalty towards Volkswagen

Haldwani has grown stronger. On the other hand 31 % of the people say No that

loyalty towards Volkswagen Haldwani has not grown stronger.

58
 CHAPTER -5
CONCLUSIONS

59
 CONCLUSIONS

In addition to suggestions and findings, this study also provides several scopes for

further research, which will be addressed in the following paragraphs:

(1) While the customer loyalty model validated in this study possesses good power for

explaining repurchase intentions and referral behavior, only partial explanation of the

construct of additional purchase intentions is achieved For this reason, future studies

should explore additional determinants of this loyalty dimension.

(2) Measurement model assessment revealed that the operationalization of fairness in

this study does not achieve sufficient discriminance from other constructs, especially

from trust and relational satisfaction. As there is a strong theoretical indication that fairness

is important in customer loyalty considerations, further studies should modify fair-ness’

measurement model, e.g. by more strongly recurring to the concept of inequity.

60
 CHAPTER -6
RECOMMENDATIONS
& SUGGESTIONS

61
 RECOMMENDATIONS & SUGGESTIONS

 Communicate. Whether it is an email newsletter, monthly flier, a reminder card for a

tune up, or a holiday greeting card, reach out to your steady customers.

 Customer Service. Go the extra distance and meet customer needs. Train the staff to

do the same. Customers remember being treated well.

 Employee Loyalty. Loyalty works from the top down. If you are loyal to your

employees, they will feel positively about their jobs and pass that loyalty along to

your customers.

 Employee Training. Train employees in the manner that you want them to interact

with customers. Empower employees to make decisions that benefit the customer.

 Customer Incentives. Give customers a reason to return to your business. For

instance, because children outgrow shoes quickly, the owner of a children’s shoe store

might offer a card that makes the tenth pair of shoes half price. Likewise, a dentist

may give a free cleaning to anyone who has seen him regularly for five years.

 Product Awareness. Know what your steady patrons purchase and keep these items in

stock. Add other products and/or services that accompany or compliment the products

62
 that your regular customers buy regularly. And make sure that your staff understands

everything they can about your products.

 Reliability. If you say a purchase will arrive on Wednesday, deliver it on Wednesday.

Be reliable. If something goes wrong, let customers know immediately and

compensate them for their inconvenience.

 Be Flexible. Try to solve customer problems or complaints to the best of your ability.

Excuses — such as "That's our policy" — will lose more customers then setting the

store on fire..

 People over Technology. The harder it is for a customer to speak to a human being

when he or she has a problem, the less likely it is that you will see that customer

again.

 Know Their Names. Remember the theme song to the television show Cheers? Get to

know the names of regular customers or at least recognize their faces.

63
ANNEXURE

64
 Volkswagen Customer Satisfaction & Loyalty Survey

EXCELLENT VERY GOOD GOOD FAIR POOR

Making you confident that this was

the right vehicle

Handling your purchase in a

professional and timely manner

65
 YES NO
Were all your questions answered at
the time of delivery?

Was enough time spent with you at

the delivery time?

Was the delivery of your vehicle a

pleasant experience?

Was the exterior clean and

undamaged?

Was it delivered with all the features

promised?

Did they have you throughly inspect

the vehicle?

Was the vehicle's maintenance

schedule explained to you?

Were all operating controls explained

to you?

Were all the terms of the warranty

explained to you?

Was the Owner's Manual explained

to you?

66
 YES NO
Were you introduced to someone in
the service department?

Did the car come with a full tank of

gas?

Has the dealer contacted you

regarding your satisfaction?

When you received your new vehicle

was it problem free?

TOTALLY VERY SOMEWHAT SOMEWHAT VERY

SATISFIED SATISFIED SATISFIED DISSATISFIED DISSATISFIED
Your salesperson

Your finance person

The way your new vehicle was

delivered to you

Your overall purchase experience

Your new vehicle

67
Were you offered a test drive?

Yes, offered and taken

Yes, offered but not taken

No, not offered

Overall, how would you rate the thoroughness of your test drive.

Excellent

Very Good

Good

Fair

Poor

68
How satisfied are you with the actions taken by the dealership to resolve your problem?

Totally Satisfied

Very Satisfied

Somewhat Satisfied

Somewhat Dissatisfied

Very Dissatisfied

We would appreciate your completing the following information to help us classify your responses:

Sex:

69
Male

Female

Age

Under 25

25-34

35-44

45-54

55-64

65 or over

If you would like to tell us something about your purchase or ownership experience that has
not been covered in this survey, please type your comments in the box provided. Thank you
for your patronage and for helping us to better serve you.

Thank you for your feedback. We sincerely appreciate your honest opinion and will take your input into consideration while
providing products and services in the future.

If you have any comments or concerns about this survey please Contact: -

Company Name

70
Address 1

Address 2

City, State, ZipCode

71
BIBLIOGRAPHY

72
 BIBLIOGRAPHY

Books:

 The Loyalty Guide report series - Peter Clark

 Marketing Management 12 e – Philip Kotler

 Improving customer satisfaction loyalty and profit – Michael D. Johnson

 Measuring customer satisfaction – Bob E. Hayes

Websites:

 www.google.com

 www.wikipedia.com

 www.Volkswagen.com

 www.kansascity.com

 www.northtownevw.com

 www.vwleessummit.com

 www.consumeraffairs.com

 www.irishtimes.com

 www.csmonitor.com

Magazine:

73
 VWBUS
 KOMBILIFE
 SUPER VW NATIONAL
 Performance VW
 volks America
 ULTRA VW KUSTOM

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