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Asian Journal of Managerial Science

Volume 4 Number 1 January - June 2015

Contents
Sl. No. Title Page No.

1 Effectiveness of Human Resource Information Systems: A Study with Reference 1


to Greaves Cotton Limited
Patcha Bhujanga Rao

2 Job Satisfaction: A Case Study with Special Reference to Employees in 6


Tirumala Milk Products Private Limited
Patcha Bhujanga Rao

3 A Study of Consumer Attitude towards Private Bus Transport Services 12


in Aruppukottai
M.Selvakumar, K.Jegatheesan and C.Meena

4 A Study on Internet Marketing and its Impact on Buying Behaviour 18


of Traders in Sivakasi, Tamil Nadu
R. Sunderaraj and M. Loheswari

5 Servqual Model: An Analysis of Hospitality Sector in Goa 23


Renji George Amballoor

6 Customer Responsiveness on Banking Technology Products in Rural South India 27


P.Vidyapriya and M.Mohanasundari

7 Emerging Prospective of Indian Livestock: A Study on Poultry Industry 33


Mohd Mujahed Ali
Asian Journal of Managerial Science
ISSN: 2249-6300 Vol. 4 No. 1, 2015, pp.1-5
© The Research Publication, www.trp.org.in

Effectiveness of Human Resource Information Systems: A Study with


Reference to Greaves Cotton Limited
Patcha Bhujanga Rao
Associate Professor, Department of MBA, SITAMS, Chittoor, Andra Pradesh, India
E-mail: prof.pbr@gmail.com

Abstract - A key issue in the management of information able to compete in the competitive environment, the study
system in the 1980s is the growing sophistication of specialized seeks to have an in depth analysis of the issue at hand.
information systems within the traditional functional areas of
the organization. The human resource information systems II. REVIEW OF LITERATURE
(HRIS) is one such system which in recent years has become
critical to the operation of the personnel departments of the
companies. Information systems in personnel have evolved Khushbu Arora in his study importance of HRIS a
from the automated employee record keeping in the 1960s into critical study on service sector identified that HRIS has
complex reporting and decision systems today. The HRIS is many advantage it can easily serve as a data base for various
designed to support the planning, administration, decision- HR functions like human resource planning, Training &
making and control of human resources management. The development performance appraisal, etc. the overall
purpose of the article is to present the status of HRIS, to trace contribution of HRIS is that it helps in managing various
its development as an entity independent of the centralized strategic activities of HR department very efficiently and
MIS, to assess its current operation and technological base and effectively.
to project its future role in the firm, especially its relationship
to human resource department.
Keywords: HRIS, Management, Employees Human Resource Kovach and Cathcart in their study does HRIS matter for
Department HRM today identified that an HRIS can be used first, for
administrative purpose in organization. It is related to
I. INTRODUCTION administrative and operational efficiency, which reduce
costs and time. Martinsons (1994) categorizes two types of
The use of human resource information system has been HRIS usage according to their degree of sophistication he
advocated as an opportunity for human resource suggests that payroll and benefits administration and
professionals to become strategic partners with top employee absence records were electronically
management (Lengnick-Hall and Moritz 2003). The idea unsophisticated because of their electronic replication of the
has been that HRIS would allow for the HR function to contents for a HR department.
become more efficient and to provide better information for
decision-making. III. OBJECTIVES OF THE STUDY

Organizations have become more complex and the 1. To study how Human Resource Information
amount of information they need increased the need for Systems(HRIS) contributes to the effectiveness of
automated information systems. The organization strategic human resource management;
determines the kind of information it needs by deciding 2. To examine and assess the difference of perceptions of
what kind of decision it is making based on the HRIS HRIS and the importance of using HRIS at the work
information. HRIS is more than a simple aggregation place;
mechanism for inventory control and accounting; it is the 3. To examine the effectiveness of in human resource
foundation for a set of management tools enabling managers information systems (HRIS) at work place; and
to establish objectives for the use of their organizations 4. To suggest measures to minimize data loss and human
human resources and to measure the extent to which those errors reducing the office paper work that may produce
objectives have been achieved. wastage of time and papers.

A significant problem with deciding whether HRIS IV. DATA COLLECTION


benefits the organization in measuring the effect of HR and
more particularly HRIS. While it is difficult to measure Primary source
precisely the return on investment and specific Responses collected with the help of questionnaire
improvements in productivity within the HR, there is a link administered to the employee and management of GREVES
between human resource information systems (HRIS) and COTTON LIMITED, is the main primary source of data for
strategic human resources. To gain vital information to be this research work. The primary data are collected in three
phase In the first phase, the purpose and objective of study

1 AJMS Vol. 4 No. 1 Jan - June 2015


Patcha Bhujanga Rao

are explained to them and requested to go through the


schedule thoroughly. In the second phase, doubts of the The secondary source of data are collected from the
respondents about the content of the schedule, if any are magazines, journals, bulletins, web sites and annual reports,
clarified. In the third phase, the filled in schedules are etc. , published by the organization. In addition to these,
collected from the respondents by holding further several structured interviews, have also been conducted with
discussions to elicit additional information. exports on the subject and also a number of persons who are
connected in one way or other, either directly or indirectly
to know about the HRIS.
Secondary source

V. DATA ANALYSIS

TABLE I HUMAN RESOURCE INFORMATION SYSTEM (HRIS) MEETS THE CURRENT NEEDS
S. No. Opinion Respondents Percentage
1 Strongly agree 70 63%
2 Agree 20 18%
3 Moderately agree 10 9%
4 Disagree 5 5%
5 Strongly disagree 5 5%
Total 110 100%

The above table depicts that 90% of employees expressed their opinions where 5% disagreed and 5%strongly
satisfaction with regard the HRIS in meeting the current disagreed in their opinion stating that the system does not
needs where 63% strongly agreed, 18% agreed, 9% meet the current needs of the employees.
moderately agreed in their opinions and 10% disagreed in

TABLE II COMPANY MAINTAINS HRIS VIA SPREADSHEETS OR OTHER ELECTRONIC DOCUMENTS


S.No. Opinion Respondents Percentage
1 Strongly agree 20 18%
2 Agree 65 59%
Moderately
3
agree 15 14%
4 Disagree 7 6%
Strongly
5
disagree 3 3%
Total 110 100%

The above table depicts that 91% of employees 6% disagree in their opinion and only 3%strongly disagree
satisfaction with regard to the company receives and enters in their opinion.
HRIS via spreadsheets or other electronic document where
59% agree, 18% strongly agree, 14% moderately agree, and

TABLE III HRIS PLAYING A VITAL ROLE IN EMPLOYEE DEVELOPMENT


S. No. Opinion Respondents Percentage
1 Strongly agree 20 18%
2 Agree 60 55%
3 Moderately agree 10 9%
4 Disagree 10 9%
5 Strongly disagree 10 9%
Total 110 100%

The above table depicts that 82% of employees expressed 55% agree, 18% strongly agree, 9% moderately agree, 9%
satisfaction with regard to the organization gives much disagree and 9% strongly disagree in their opinion.
attention for employee development based on HRIS where

AJMS Vol. 4 No. 1 Jan - June 2015 2


Effectiveness of Human Resource Information Systems: A Study with Reference to Greaves Cotton Limited

TABLE IV MAINTAINING STANDARD SET OF DATA AND REPORTS THAT ARE PROVIDED BY THE EMPLOYEES REGULARLY
S.No. Opinion Respondents Percentage
1 Strongly agree 8 7%
2 Agree 75 68%
3 Moderately agree 18 16%
4 Disagree 4 4%
5 strongly disagree 5 5%
Total 110 100%

The above table depicts that 91% employee expressed moderately agree, 7% strongly agree, 5% strongly disagree,
satisfaction with regard to have a standard set of data or set 4% disagree in their opinion.
reports that you provide regularly where 68% agree, 16%

TABLE V HRIS IN OBTAINING AND PROVIDING OPPORTUNITY FOR PRACTICAL DECISION MAKING
S.No. Opinion Respondents Percentage
1 Strongly agree 16 15%
2 Agree 20 18%
3 Moderately agree 44 40%
4 Disagree 11 10%
5 Strongly disagree 19 17%
Total 110 100%

The above table depicts that 73% employee expressed 18% agree, 17%strongly disagree, 15% strongly agree and
satisfaction with regard to the company if data ware easier 10% disagree in their opinion.
to obtain and provide is there opportunity for additional use
in practical decision making where 40% moderately agree,

TABLE VI HRIS IN PROVIDING ROUTINE REVIEW OF ALL THE EMPLOYEES IN THE ORGANIZATION
S.No. Opinion Respondents Percentage
1 Strongly agree 7 6%
2 Agree 56 51%
3 Moderately agree 30 27%
4 Disagree 3 3%
5 Strongly disagree 14 13%
Total 110 100%

The above table depicts that 84% of employees satisfaction Hence, it can concluded that most of employees express
with regard to the company is there routine review of the satisfied with regard to the company there a routine review
HRIS for all employees in your department where 51% of HRIS for all employees in your department.
agree, 27% moderately agree, 13% strongly disagree, 6%
strongly agree and only 3% disagree in their opinion.

TABLE VII COMPANY HAVING TECHNICAL SUPPORT TEAM FOR EXECUTING HRIS

S. No. Opinion Respondents Percentage


1 Strongly agree 35 32%
2 Agree 40 36%
3 Moderately agree 16 15%
4 Disagree 15 14%
5 Strongly disagree 4 3%
Total 110 100%

The above table depicts that 83% of employees are moderately agree, 14% disagree, 3% strongly disagree in
satisfied with the technical support person/team for their opinion.
executing HRIS where 36% agree 32% strongly agree, 15%

3 AJMS Vol. 4 No. 1 Jan - June 2015


Patcha Bhujanga Rao
TABLE VIII IMPROVEMENT IN HRIS APPLICATION IN THE ORGANIZATION

S. No. Opinion Respondents Percentage


1 Strongly agree 35 31%
2 Agree 25 18%
3 Moderately agree 40 36%
4 Disagree 10 9%
5 Strongly disagree 0 0%
Total 110 100%

The above table depicts that 85% of employees feel that agree, 18%agree, 9%disagree, 0% strongly disagree in their
there must be still improvement in HRIS application in the opinion.
organization where 36% moderately agree, 31% strongly

TABLE IX COMPANY UPDATES REGULARLY THE FEEDBACK AND THE PERFORMANCE OF THE EMPLOYEES THROUGH HRIS
S. No. Opinion Respondents Percentage
1 Strongly agree 10 9%
2 Agree 34 31%
3 Moderately agree 51 46%
4 Disagree 10 9%
5 Strongly disagree 5 5%
Total 110 100%

The above table depicts that 86% of employees agree moderately agree, 31% agree, 9% strongly agree, 9%
that the company updates regularly employees feed back disagree, 5% strongly disagree in their opinion.
and their performance with the help of HRIS where 46%

TABLE X HRIS IS BEING TAKEN AS A BASE IN RECOMMENDING THE TRAINING PROGRAM

S. No. Opinion Respondents Percentage


1 Strongly agree 15 14%
2 Agree 60 55%
3 Moderately agree 18 16%
4 Disagree 13 12%
5 Strongly disagree 4 3%
Total 110 100%

The above table depicts that 85% of employees agreed 7. All the employees opined that there needs improvement
that the company recommends training to its employees in HRIS application in the organization
based on HRIS where 55% agree, 16% moderately agree, 8. 95% of the employees opined that the company updates
14% strongly agree, 12% disagree, 3% strongly agree in regularly the feedback and the performance of the
their opinion. Employees
9. 85% of employees agree that HRIS is being taken as a
VI. FINDINGS base in recommending the training program
10. 85% of employees satisfaction with regard to the
1. 90% of employees expressed satisfaction with regard company regarding improvement in HRIS application
the HRIS in meeting the current needs in the organization
2. 82% of employees expressed satisfaction with regard to 11. All the employees opined that the company receives
the HRIS playing a vital role in employee development and enters HRIS via spreadsheets and also other
3. 91% employee expressed satisfaction with regard to the electronic document.
company maintaining standard set of data or set reports
that are provide by employees regularly VII. CONCLUSION
4. 73% employee expressed satisfaction with regarding on
HRIS in obtain and providing opportunity for practical The concept of human resource information systems is
decision making fast becoming a reality and the role of human resources in
5. 84% of employee opined that the present HRIS information systems has been gaining sustained competitive
provides routine review of all the employees in the advantage and has been proved empirically by numerous
organization studies.
6. 83% of employees agree that the company has technical
support team for executing HRIS The company’s are heavily people driven and hence
requires proper management of its human resources. The

AJMS Vol. 4 No. 1 Jan - June 2015 4


Effectiveness of Human Resource Information Systems: A Study with Reference to Greaves Cotton Limited

present study in this regard attempts to understand the REFERENCES


dynamics of human resource management and the role in
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The results of the study show that the current levels of [2] Becker’s, A.M, & Bsat, M.Z. (2002) A DSS classification
model for research in human resource information system
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services provided to the employees and HR staff through and knowledge for competitive advantage. Human Resource
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[4] Nagi, E W T. & Wat, F.K. T (2004). Human resource
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[5] Becker, B.E Huselid, M.A, & Ulrich, D (2001) the HR
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Harvard Business schools press.
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quality of services provided by the HR department. It will Cincinnati , OH : South-Western College.
also be of great help for organization to align and involve [7] Fitz-Enz j. how to measure human resource management (3rd
ed) New York: McGraw-Hill.
the HR function in the process of strategy formulation and [8] Roberts. B, (1999). Calculating return on investment for HRIS,
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[9] Global Journal of management and studies ISSN
2248-9878 volume 3 Number 9 (2013), pp 971-976.
@research India publications, http:// www:republication.com/
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[10] Kovach, K.A & Cathcart, C.E (1999). “HRIS: providing
Business with rapid data access, information exchange and
strategic advantage” public personnel management, 28(2),
275-282.
[11] Martinsons,M.G. (1994). Benchmarking HRIS in Canada and
HongKong information and management, 26, pp. 305-316.

5 AJMS Vol. 4 No. 1 Jan - June 2015


Asian Journal of Managerial Science
ISSN: 2249-6300 Vol. 4 No. 1, 2011, pp.6-11
© The Research Publication, www.trp.org.in

Job Satisfaction: A Case Study with Special Reference to Employees in


Tirumala Milk Products Private Limited
Patcha Bhujanga Rao
Associate Professor, Department of MBA, SITAMS, Chittoor, Andra Pradesh, India
E-mail: prof.pbr@gmail.com

Abstract - Research has been conducted in order to critically Thus, job satisfaction is the most important and frequently
evaluate and examine the level of employees’ satisfaction studied attitude. It is positive attitude towards ones job. It is
among the employees of Tirumala Milk Products Private important to mention that an individual may off different
Limited. The purpose of this study is also to observe and attitudes towards various aspects of job.
analyze the factors which create job satisfaction especially
among the hardworking employees, and to find out the reasons
of dissatisfaction if any. The primary data for this study was II. NEED FOR THE STUDY
compiled through questionnaire filled in on a one-to-one basis
by 125 respondents from a representative sample of employees The job satisfaction is psychological feeling of person. It
of Tirumala Milk Products Private Limited. The results have is a personal feeling of an employee towards his job. It is
shown that working environment, compensation, growth difficult to evaluate the satisfaction level of an employee.
opportunities and training & development are the most Because it is intangible and complex assemble of cognitions
important significant factors which directly influences in and emotional and also differs from one person to another
affecting Job Satisfaction. According to a number of literatures person. From the available tools, an attempt is made to
studied, lack of job satisfaction is a serious issue in various
evaluate the satisfaction level among the employee of
organizations and job dissatisfaction has become a major
obstacle in employees’ productivity and organization’s growth. Tirumala Private Limited to possible extent.
There are numbers of factors which can create job
dissatisfaction among employees but in this study the very III. OBJECTIVES
critical factors are discussed upon which the Tirumala Milk
Products Private Limited management should really work on 1. To know the job satisfaction level of employees of
the job satisfaction of its employees. Tirumala Milk Product Private Limited.
Keywords: Job Satisfaction, Employees, Motivation 2. To study the work environment in Tirumala Milk
Product Private, Limited.
I. INTRODUCTION 3. To suggest the factors that makes an employees to
satisfy are their job.
Job satisfaction refers to a person’s feeling of satisfaction
on the job, which acts as motivation to work. It is not the IV. DATA COLLECTION
self satisfaction, happiness or self contentment but the
satisfaction on the job. Job satisfaction, a workers sense Primary Sources
achievement and success, is generally perceived to be
directly linked to productivity as well as to personal well Responses collected with the help of the schedule
being. Job satisfaction occurs when an employee feels he administered to the employees and management of Tirumala
has accomplished something having importance and value Milk Product Private Limited is the main primary source of
worthy of recognition sense of joy. data for this research work. The primary data are collected
in three phases. In the first phase, the purpose and objectives
The term relates to the total relationship between an of study are explained to them and requested to go through
individual and the employer for which he is paid. the schedule thoroughly. In the second phase, doubts of the
Satisfaction does mean the simple feeling state respondents about the contents of the schedules are
accompanying the attainment of any goal. The end state is collected from the respondents by holding further
feeling accompanying the attainment by an impulse of its discussions to elicit additional information.
objective job satisfaction. Does mean absence of motivation
at work. Research works differentially describe the factors Secondary Sources
contributing to job satisfaction and job dissatisfaction.
Hoppock describes job satisfaction as,” any combination of The secondary sources of data are collected from the
psychological, Physiological and environment magazines, journals, bulletins, web sites and annual reports,
circumstances that causes and person truthfully to say etc., published by the organization .In addition to these,
satisfied with my job. several structured interviews, and unstructured interviews,

AJMS Vol. 4 No. 1 Jan - June 2015 6


Job Satisfaction: A Case Study with Special Reference to Employees in Tirumala Milk Products Private Limited

have also been conducted with experts on the subject and Tools for Data Collection
also a number of persons who are connected in one way or
other, either directly to know about job satisfaction of the A questionnaire with a set of questions was constructed
employees. and administered to the sample employees of the
organizations to elicit first hand information relating to the
Sample Frame job satisfaction of employees at Tirumala Milk Product
Private Limited.
The sample size was put 125 chosen from various
functional areas of the organization. Stratified random Tool for Analysis
sampling system has been followed to select employees of
Tirumala Milk Product Private Limited , The interview schedule method is used for gathering data
which are relevant for the study conducted among various
categories of employees Tirumala Milk Product Private
Limited. The data collected through the schedules from
primary sources have been processed and the results are
analyzed using the percentiles.

V. DATA ANALYSIS

TABLE I OPINION OF EMPLOYEES WITH REGARD TO PROFESSIONALISM OF CO WORKERS WITH WHOM THEY WORK
S.No. Opinion Respondents Percentage
1 Very satisfied 68 56%
2 Satisfied 32 25%
3 Dissatisfied 19 15%
4 Strongly satisfied 6 4%
Total 125 100%

The above table depicts that 81% of employees are very are dissatisfied with their professionalism of work with
much satisfied it the professionalism of their co workers it whom they work where 15% of employees are dissatisfied
whom they work where 56% of employees are very satisfied and 4% of employees are strongly dissatisfied.
and 25% of employees are satisfied and 19% of employees

TABLE II OPINION OF EMPLOYEES WITH REGARD TO THE PRESENT JOB


S.No. Opinion Respondents Percentage
1 Routine 51 40%
2 Fascinating 38 32%
3 Exciting 36 28%
Total 125 100%

The above table depicts that 40% of employees opined that fascinating. And 28% of employees expressed that their job
their job is routine.32% of employees opined the job as is exciting.

TABLE III OPINION OF EMPLOYEES WITH REGARD TO THE WORK ENVIRONMENT PROVIDED BY THE ORGANIZATION
S.No. Opinion Respondents Percentage
1 Strongly satisfied 38 33%
2 Satisfied 28 22%
3 Dissatisfied 22 17%
4 Strongly dissatisfied 37 28%
Total 125 100%

The above table that 55% of employees are very much organization.45% of employees are dissatisfied with the
satisfied with work environment where .33% of employees work environment provided by the organization where
are strongly satisfied and 22% of employees are satisfied .17% of employees are dissatisfied and.16% of employees
with regard to the work environment provided by are strongly dissatisfied.12% of employees are neutral.

7 AJMS Vol. 4 No. 1 Jan - June 2015


Patcha Bhujanga Rao

TABLE IV OPINIONS OF THE EMPLOYEES WITH REGARD TO LEADERS


BEING POSITIVE ROLE MODELS IN THE ORGANIZATION.
S. No. Opinion Respondents Percentages
1 Yes 85 68%
2 No 40 32%
Total 125 100%

The above table depict that 68% of employees opined that their leaders is positive role models .32% of employees opined that
their leaders are not positive role models.

TABLE V OPINION OF EMPLOYEES WITH REGARD INCREASES IN MOTIVATIONAL LEVELS FROM JOB SATISFACTION
S.No. Opinion Respondents Percentages
1 Yes 90 72%
2 No 35 28%
Total 125 100%

The above table depicts that 72% of employees’ opined that job satisfaction increases the motivational levels of the
employees.28% of employees with their opinion contradicted.

TABLE VI OPINION OF EMPLOYEES WITH REGARD TO SPECIFICATION OF


THEIR JOB ROLES IN THE WORK ENVIRONMENT.

S.No. Opinion Respondents Percentages


1 Yes 87 72%
2 No 38 28%
Total 125 100%

The above table depicts that 69% of employees are satisfied with their job roles specified to them and. 30 % of employees
are not satisfied with their roles specified to them.

TABLE VII OPINION OF EMPLOYEES WITH REGARD TO FRINGE BENEFITS PROVIDED IN THE ORGANIZATION
S.No. Opinion Respondents Percentage
1 Very satisfied 68 56%
2 Satisfied 32 25%
3 Dissatisfied 19 15%
4 Strongly satisfied 6 4%
Total 125 100%

The above table depicts that 81% of employees opined that contradictory to the above statement where in their opinions
the organization provides fringe benefits to the employees. .15% of employees are dissatisfied and .14% of employees
Where 56% of employees are very satisfied .and 25% of are strongly satisfied in their opinion.
employees are satisfied. 19% of employees opined

TABLE VIII OPINION OF EMPLOYEES WITH REGARD TO ROLE OF


PERFORMANCE APPRAISAL IN ACHIEVING JOB SATISFACTION
S.No. Opinion Respondents Percentage
1 Strongly agree 59 47%
2 Agree 44 36%
3 Disagree 12 9%
4 Strongly disagree 10 8%
Total 125 100%

The above table depicts that 83% of employees opined that employees are disagreed that the performance appraisal has
performance appraisal plays a major role in job satisfaction no role to play in job satisfaction.9% of employees are
where 47% of employees are strongly agree.36% of strongly disagreed. Where 8% of employees are disagree.
employees are agreed in their opinions . Where 9% of

AJMS Vol. 4 No. 1 Jan - June 2015 8


Job Satisfaction: A Case Study with Special Reference to Employees in Tirumala Milk Products Private Limited

TABLE IX OPINION OF EMPLOYEES WITH REGARD TO ROLE OF


TRAINING PROGRAM RESULTING TO JOB SATISFACTION

S.No. Opinion Respondents Percentage


1 Understanding job 62 49%
2 Renewed confidence 38 30%
3 No benefit 25 21%
Total 125 100%

The above table depicts 21% of employees training expressed that training programe gives there renewed
programmes results to job satisfaction.49% of employees confidence.20% of employees that training programmes
could understand better of the job 30% of employees doesn’t make them feel satisfied with the job.
TABLE X OPINION OF EMPLOYEES WITH REGARD TO
WORKING CONDITIONS AND WORKING ENVIRONMENT IN THE ORGANISATION
S.No. Opinion Respondents Percentage
1 Highly satisfied 59 47%
2 Satisfied 36 28%
3 Dissatisfied 16 14%
4 Highly dissatisfied 14 11%
Total 125 100%

The above table depicts that 75% of employees are satisfied employees dissatisfied with the working conditions and
with the working conditions and work environment in the work environment in the organization.13% of employees are
organization. Where 47% of employees are highly satisfied highlydissatisfied.11% of employees is dissatisfied .
and 28% of the employees are satisfied. Only 14% of

TABLE XI OPINION OF EMPLOYEE WITH REGARD TO


COMPENSATION PROVIDED BY THE ORGANIZATION.
S.No. Opinion Respondents Percentage
1 Strongly agree 56 44%
2 Agree 31 25%
3 Disagree 22 17%
4 Highly disagree 16 14%
Total 125 100%

The above table depicts that 69% of employees expressed disagree with regard to pay provided by the
satisfaction with regard to the compensation paid by the organization.17% of employees is disagree.14% of
organization.44% of employees are stronglyagred.25% of employees are strongly disagreed.
employees are agreed. 29% of employees expressed their

TABLE XII OPINION OF EMPLOYEES WITH REGARD TO


PARTICIPATION IN MANAGEMENT DECISION MAKING PROCESS.
S.No. Opinion Respondents Percentage
1 Satisfied 43 34%
2 Highly satisfied 37 29%
3 Dissatisfied 27 23%
4 Highly dissatisfied 18 14%
Total 125 100%

The above table depicts that 63% of employees are satisfied decision making process.23% of employees
management decision making process. 34% of employees aredissatisfied.14% of employees are highly dissatisfied
are satisfied.29% of employees are highly satisfied.37%of with regard to participation in decision making process
employees are dissatisfied on participating in management

TABLE XIII OPINION OF EMPLOYEES WITH REGARD TO COMMUNICATION AND INFORMATION FLOW IN THE ORGANIZATION
S.No. Opinion Respondents Percentage
1 Highly satisfied 42 33%
2 Satisfied 38 32%
3 Dissatisfied 27 21%
4 Highly dissatisfied 18 14%
Total 125 100%

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Patcha Bhujanga Rao

The above table depicts that 65% of employees are satisfied dissatisfied with the communication flow in the
with the communication and information flow in the organizaton.21% of employees are dissatisfied.14% of
organization.where33% of employees are highly satisfied, employees are highly dissatisfied.
and 32% of employees are satisfied.35% of employees are
TABLE XIV OPINION OF EMPLOYEES ON THEIR COMPENSATION
MATCHES THEIR RESPONSIBILITIES IN THE ORGANISATION
S.No. Opinion Respondents Percentage
1 Strongly agree 75 60%
2 Agree 37 29%
3 Disagree 9 8%
4 Highly disagree 4 3%
Total 125 100%

The above table depicts that 89% of employees are agree employees are disagreed that the compensation matches in
that compensation matches their responsibilities in the the organization.8% of employees are disagreed.3% of
organization .31% of employees are strongly agree.10% of employees are strongly disagree.

TABLE XV OPINION OF EMPLOYEES WITH REGARD TO AMOUNT AND FREQUENCY OF


INFORMAL PRICE AND RECEIVE FROM THEIR SUPERIORS
S.No. Opinion Respondents Percentage
1 Highly satisfied 47 37%
2 Satisfied 41 32%
3 Dissatisfied 24 19%
Highly
4 13 12%
dissatisfied
Total 125 100%

The above table depicts that 69% of employees are satisfied with amount and informal price receive theirsuperior.19%
with amount and frequency of informal price receive their of employees are dissatisfied.12% of employees are highly
superiors.37% of employees is highly satisfied.32% of dissatisfied.
employees are satisfied.31% of employees are dissatisfied

TABLE XVI OPINION OF EMPLOYEES WITH REGARD TO THE ENCOURAGEMENT FOR THEIR INNOVATIVE IDEAS
S.No. Opinion Respondents Percentages
1 Yes 85 68%
2 No 40 32%
Total 125 100%

The above table depicts that 68% of employees are satisfied with their superior encourages their innovative ideas.32% of
employees are not satisfied with their superiors.

TABLE XVII OPINION OF EMPLOYEES WITH REGARDS TO THE RECOGNITION THEIR CONTRIBUTION
S.No. Opinion Respondents Percentage
Strongly
1 75 60%
agree
2 Agree 37 29%
3 Disagree 9 8%
Highly
4 4 3%
disagree
Total 125 100%

The above table depicts that 89% of employees are agree agree.11% of employees are disagree with the appropriate
that they are recognized for their contribution.60% of recognition for contribution.8% of employees are strongly
employees are strongly agree.29% of employees are disagree.3% of employees are disagree.

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Job Satisfaction: A Case Study with Special Reference to Employees in Tirumala Milk Products Private Limited

TABLE XVIII OPINION OF EMPLOYEES WITH REGARD TO THE INFORMATION PROVIDED TO PERFORM JOB WELL.
S.No. Opinion Respondents Percentage
1 Strongly agree 75 60%
2 Agree 37 29%
3 Disagree 9 8%
4 Highly disagree 4 3%
Total 125 100%

The above table depicts that 60% of employees are agree employees are agreed in their opinion to then to do job
that adequate information available to them to do job well.20% of employees are strongly disagree.19% of
well.36% of employees are strongly agree.24% of employees are disagreed in their opinions .

TABLE XIX OPINION OF EMPLOYEES WITH REGARD TO THE BOUNDARIES OF JOB SATISFACTION.
S.No. Opinion Respondents Percentages
1 Yes 85 68%
2 No 40 32%
Total 125 100%

The above table depicts that 68% of employees are satisfied VII. CONCLUSION
with their boundaries of job satisfaction.32% of employees
are not satisfied with boundaries of job satisfaction. Job satisfaction of its workers means a work force
motivated and committed to high quality performance.
VI. FINDINGS Increase productivity the quantity and quality of output per
hour worked seems to be a byproduct of improved quality of
89% of employees are satisfied with the compensation working life. From the findings it can be concluded that
matches their responsibilities, 82% of employees satisfied employees are satisfied about working conditions , work
with that the performance appraisal helps to achieve Job environment ,fringe benefits, training programs, solving the
satisfaction, 79% of employees are satisfied with the problems of the employees. Finally, I would like to
professionalism of employees work With Whom their conclude that Tirumala Mild Products Private Limited is
work, 75% of employees satisfies with the working taking good care to the employee’s .The management
conditions and work environment, 72% of employees attitude towards employees is appreciable.
satisfies that the job satisfaction really motivates them, 72%
of employees satisfies with the conflicts resolution REFERENCES
techniques 69% of employees satisfies that the roles
specified by the organization, 69% of employees satisfies [1] Ayantee ( Mukherjee) Saha, Management and Organisational
Behavior, Excel Books New Delhi, First Edition 2006.
with the amount and frequency of informal price that
[2] Davis Keith, Human Behavior at Work / Organisational
receives from their superior, 68% of employees satisfies Behavior, TATA Mc Graw Hill Publications, New Delhi 1981.
that the employer encourages their innovative ideas, 68% of [3] Uma Sekaran, Organisational Behavior Text and Cases, TATA
employees satisfies with the pay provided by the Mc Graw Hill Publications 1994.
[4] Danial C Feldmen and Hugh J Arnold, Managing Individuals
organization, 68% of employees satisfies with the work and Group Behavior in Organisation,TATA Mc Graw Hill
environment are positive role models, 68% of employees Publications 1983.
satisfies with the boundaries of job satisfaction, 64% of [5] Jayantee ( Mukherjee) Saha, Management and Organisational
employees satisfies with the fringe benefits provided by Behavior, Exel Books New Delhi, First Edition 2006.
[6] Davis Keith,Human Behavior at Work / Organisational
the organization, 63% of employees satisfies with the
Behavior, TATA Mc Graw Hill Publications, New Delhi 1981.
communication and information flow in the organization, [7] Uma Sekaran, Organisational Behavior Text and Cases, TATA
60% of employees satisfies with the recognition for their Mc Graw Hill Publications 1994.
contribution, 60% of employees satisfies that the adequate [8] Danial C Feldmen and Hugh J Arnold, Managing Individuals
and Group Behavior in Organisation,TATA Mc Graw Hill
information available to them to do job well, 55% of
Publications 1983.
employees satisfies with the participation in the [9] John W Newstroam and Keith Davis, Organisational Behavior /
management decision making process,52% of employees Human Behavior at Work, Prentice Hall Publications New
satisfies the company and place work, 49% of employees Jersy.
[10] John W Newstrom and Keith Davis, Organisational Behavior,
satisfies with the training program to job satisfaction, and TATA Mc Graw Hill Publications, New Delhi 2004.
40% of employees satisfies with the present job. [11] Fred Luthans, Organisational Behavior, Mc Graw Hill-Higher
Education Publications 2002.
[12] Aswatappa, Organisational Behavior Text and Cases, Himalaya
Publishing House, New Delhi, Fourth Edition.

11 AJMS Vol. 4 No. 1 Jan - June 2015


Asian Journal of Managerial Science
ISSN: 2249-6300 Vol. 4 No. 1, 2015, pp.12-17
© The Research Publication, www.trp.org.in

A Study of Consumer Attitude towards Private Bus Transport Services in


Aruppukottai
M.Selvakumar1, K.Jegatheesan2 and C.Meena3
1&2
Assistant Professor, 3Research Scholar
Post Graduate and Research Department of Commerce, Ayya Nadar Janaki Ammal College, Sivakasi, Tamil Nadu, India
E-mail: jegaapril3@gmail.com

Abstract-The transport system provides the basic II. STATEMENT OF THE PROBLEM
infrastructure on which the other economic activities grow and
flourish. Neither the process of industrialization nor the The main aim of private bus is to render services to the
modernization of agriculture is possible without a well co- rural people effectively and efficiently. Aruppukottai town
ordinate, adequate and economic transport system. In the
is famous for Agriculture ,cotton mills and weaving .It is
dynamic world, private bus has played an important role. The
private bus service is being used by the people for their located 49 km south of Madurai. This town belongs to
comfortable and convenient journey. The main features of the Virudhunagar District. Town is very good for school level
private bus service are that, it provides a better service to the education. Lovely place to live your life. Best known for
public. This chapter helps the researcher to analyze the Pure Hand Loom SAREES. The small villages & towns
services offered by the private bus transport services.Therefore surrounding Aruppukottai are famous for production of
a brief study has been made by the researcher to bring out the Jasmine flowers. So, there are large number of passengers
passengers behavior of private bus transport services in who are coming into the town from rural areas at the same
Aruppukottai. time many passengers can go out of Aruppukottai for the
reason of studies and employment. Private buses are in fact
I. INTRODUCTION connecting Aruppukottai town with the nearby villages and
other places. The services of private bus are commendable
A well unit transport system is a basic necessity for all by the passengers also have some grievances with the
round and sound development of the country. It combines operations of private buses like maintenance of bus, driving
different components and different sectors of the company speed of drivers, attitude of drivers and conductors, and
at all points of development. It is the basic ground on which facilities of private bus etc.Hence the researcher aims to
the edifice of economic development is created. Infect, a bring out the services that which the private buses are
well developed transport system has become a symbol of rendering best services to the Aruppukottai people. Also the
civilization “if agriculture and industry are the body and researcher makes an attempt to analyze the problems faced
bones of national organism, transport and communication by the passengers and private bus operators like
are its nerves. In the dynamic world, private bus has competitors, government bus operators, also students,
played an important role. The private bus service is being drunkards, village peoples etc,.
used by the people for their comfortable and convenient
journey. The main features of the private bus service are
III. SCOPE OF STUDY
that, it provides a better service to the public. Hence the
selected this topic for his research. The importance of The researcher attempts to study the passenger’s attitude
transport is increasing everyday with the new developments towards the services of the transportation. The study also
in the fields of ways, means, motive power, engineering, deals with the problems of private bus transport from the
techniques, organizations, legal enactments and social, point of view of passengers like drunkards, students to
economic and political factors. In those olden days roads did private bus operators.
not exist and people used to walk along the tracks. As a
result of progress in trade and commerce, pack animals IV. METHODOLOGY
began to be used. Even the stage of economic development
roads was not found; but wide tracks were automatically For the purpose of this study both primary data and
made due to the movement of hundreds of animals together. secondary data have been used.
Dogs, horses, camels etc., were used as beasts to bar den;
and even today in some parts of world their importance has Sampling design
not been diminished.
The universe of the study is the public at large, as
now a day there is no one who does not use the
transportation system. Hence, sample study is only feasible.

AJMS Vol. 4 No. 1 Jan - June 2015 12


A Study of Consumer Attitude towards Private Bus Transport Services in Aruppukottai

Therefore judgment random sampling technique has been Chi-square test (χ2)= (0-E) 2 / E
adopted to select the respondents. Hence the researcher has
contacted 80 for her research. The investigator has
interviewed each and every respondents individually. The respondents have been classified into three
categories like high, medium, low level of opinion on the
Statistical tools basis of total scores obtained by each respondent.
The information collected from various respondents
have been analyses, by using the statistical tools Chi-square Hypothesis
Test and scaling.
In order to test the influences of socio-economic
Hypotheses of study conditions on factors consider before taking the purchase
The study to test the following hypothesis in line decision the following null hypothesis has been frame.
with the objectives of the study: “There is no association between the Literacy Level of
1. There is no significance difference between income respondents and purchase decision of the respondents“.
level of the respondents and frequency of travel in
private bus. For testing the above hypothesis χ2 value was calculated.
2. There is no significant association between The calculated value of χ2 was compared with the Table
monthly income level of respondents and spending value of χ2, located from χ2 Table for the desired level of
amount of travel cost per month in private bus. significance on the given degrees of freedom. If the
3. There is no significant association between the calculated value of χ2 is less than the Table value of χ2, it
different age group of respondents and opinion conforms to the hypothesis. In case the calculated value
about the mode of private bus driving. exceeds the Table value the null hypothesis is rejected. For
the purpose of this analysis, 95 per cent level of confidence
V. RESULTS AND DISCUSSION has been adopted. The Table value of χ2 is denoted as χ2
0.05 at 95 per cent level of confidence (or) 5 per cent level
Out of 80 repondents majority (51%) of the respondents of significance. The calculated value is denoted as χ2
are male, (37.50%) of the respondent belongs to the age
group of less than 25 years, (35.72 %) of the respondents Test of Hypothesis
has completed post graduate degree,(50 %) of the
respondents lives in rural areas, (25 %) of the respondents “There is no significant association between the income
are students. level of the respondents and the frequency of travel in
private bus”
Chi-Square Test
Hence an attempt has been made to analyses whether
Chi-square test is applied to know the influences of there is no significant association between the income level
socio-economic conditions of respondents on the factors of the respondents and the frequency of travel in private
considering before taking purchase decision. The following bus. For this purpose a Chi-square Table has been prepared.
formula has been used. Table 1 shows the income level of the respondents and
frequency of travel.

TABLE I OBSERVED FREQUENCY (O)


Frequency of travel
S. No. Income level Daily Frequently Occasionally Rarely Total

1 Less than Rs.10,000 6 2 5 5 18


2 Rs. 10000 to Rs.20,000 14 1 2 2 19
3 Rs.20,000 to Rs. 6 1 7 9 23
30,000
4 Above Rs.30,000 10 1 2 7 20
Total 36 5 16 23 80
Source: Primary Data

In order to test income level of the respondents and the frequency of travel in private bus, Chi-square test is applied. Table
3 shows the workings of the chi-square test

13 AJMS Vol. 4 No. 1 Jan - June 2015


M.Selvakumar, K.Jegatheesan and C.Meena

TABLE II EXPECTED FREQUENCY (E)


Frequency of travel
S. No. Total
Income level Daily Frequently Occasionally Rarely
1 Less than Rs.10,000 8 1 4 5 18
2 Rs. 10000 to Rs.20,000 9 1 4 6 20
3 Rs.20,000 to Rs. 30,000 10 1 5 6 22
4 Above Rs.30,000 9 1 4 6 20

TABLE III CHI-SQUARE TABLE


O E (O – E) (O – E)2 (O – E)2 / E
6 8 2 4 0.5
2 1 1 1 1.00
5 4 1 1 0.25
5 5 0 0 0
14 9 5 25 2.78
1 1 0 0 0
2 4 2 4 2.00
2 6 4 16 2.67
6 10 4 16 1.60
1 1 0 0 0
7 5 2 4 0.80
9 6 3 9 1.50
10 9 1 1 0.11
1 1 0 0 0
2 4 2 4 2.00
7 6 1 1 1.67
Total 80 15.37
χ2 = (0-E) 2 / E = 15.37
Degree of freedom (V) = (r-1) c-1)
= (4-1) (4-1)
V=9
Table value 5% level = 16.9

VI. RESULTS services are available in their area, (45%) of the respondents
has travelled in the bus daily, (36.25%) of the respondents
Since the calculate value (15.37) is less than Table value has traveled in private buses for going to the college,
at 5% level of (16.9).The null hypothesis is accepted. Here (33.75%) of the respondent travel daily due to traveling in
it is concluded that there is no significant relationship limited stop, (40 %) of the respondents has traveled
between income level of the respondents and frequency of occasionally due to over rush in their buses,(37.50%) of the
travel. respondents have opined that private buses are rush during
morning hours.
Further the researcher has analysed and revealed that
majority (95%) of the respondents say that the private bus

TABLE IV OBSERVED FREQUENCY (O)


Spending amount of travel cost in private bus transport
Rs.500 to Rs.1000 to Rs.
Less than Above Rs.
S. No. Income level Rs.1000 1,500 Total
Rs.500 1,500
1 Below Rs. 10,000 7 2 6 3 18
2 Rs.10,000 Rs.20,000 6 5 2 6 20
3 Rs.20,000- Rs. 30,000 20 5 2 5 23
4 Above Rs. 30,000 9 3 2 5 19
Total 34 15 12 19 80
Source: Primary Data

AJMS Vol. 4 No. 1 Jan - June 2015 14


A Study of Consumer Attitude towards Private Bus Transport Services in Aruppukottai

Test of Hypothesis purpose a Chi-square Table has been prepared. Table 4


shows the monthly income level of respondents and
“There is no significance difference between the Income spending amount of travel cost per month.
level of respondents and spending amount of travel cost per
month” In order to test whether there is no significant association
between monthly income level of respondents and spending
Hence an attempt has been made to analyses whether amount of travel cost per month in private bus transport
there is no significant association between the monthly service Chi-square test is applied. Table 5 shows the
income level of respondents and spending amount of travel workings of the chi-square test.
cost per month in private bus transport services. For this

TABLE V CHI-SQUARE TABLE


O E (O – E) (O – E) 2 (O – E) 2/ E
7 7.65 0.65 0.42 0.055
2 3.38 1.38 1.90 0.563
6 2.7 3.3 10.89 4.033
3 4.28 1.28 1.64 0.383
6 8.5 2.5 6.25 0.735
5 3.75 1.25 1.56 0.417
2 3 1 1 0.333
6 4.75 1.25 1.56 0.329
12 9.78 2.22 4.93 0.504
5 4.31 0.69 0.48 0.110
2 3.45 1.45 2.10 0.609
5 5.46 0.46 0.21 0.039
9 8.08 0.92 0.85 0.105
3 3.56 0.56 0.31 0.088
2 2.85 0.85 0.72 0.254
5 4.51 0.49 0.24 0.053
Total 80 8.61
χ2 = (0-E) 2 / E = 8.61
Degree of freedom (V) = (r-1) c-1)
= (4-1) (4-1)
V=9
Table value 5% level = 16.9

Since the calculate value (8.67) is less than Table value at number of private buses running in their area,(55%) of
5% level of (16.9). If the null hypothesis where accepted. respondents feel that private bus driving speed is very high.
Here it is concluded that there is no significant relationship
between income level of respondents and spending amount Test of Hypothesis
of travel cost in private bus transport service.
“There is no significance difference between the Different
Out of 80 respondents majority (66.25 %) of respondents age group of respondents and opinion about the mode of
feel that private bus fare is medium, (91.25%) of private bus driving”
respondents opine that the present width of bus entrance is
convenient, (57.14%) of the respondents say that the steps The opinion about the mode of private bus driving can be
are inconvenient, (95%) of the respondents say that the differing from one another among different age group of
window, shelter and roofing facilities are good, (75%) of the respondents. Hence an attempt has been made to analyses
respondents have complained that there is no entrance whether there is no significant association between the
curtain in the buses, (95%) have opined that the lighting different age group of respondents and opinion about the
facility is sufficient, (50%) of the respondents say that mode of private bus driving. For this purpose a Chi-square
Audio/ video facilities are available in the buses, (72.50 %) Table has been prepared. Table 6 shows the age group of
of the respondents opinion is private bus facilities are respondents and mode of driving speed.
good,(86.25%) of the respondents are satisfied with the

15 AJMS Vol. 4 No. 1 Jan - June 2015


M.Selvakumar, K.Jegatheesan and C.Meena

TABLE VI OBSERVED FREQUENCY (O)


Opinion about the mode of private bus driving
S. High Total
Age Careful Careless Cautious
No. speed
1. Below 25 years 10 1 6 2 19
2. 25 – 35 years 6 4 7 2 19
3. 35 – 45 years 6 1 3 3 13
4. 45 – 55 years 7 4 7 2 20
5. Above 55 years 2 4 1 2 9
Total 31 14 24 11 80
Source: Primary Data

In order to test whether there is no significant association between different age group of respondents and opinion about
the mode of private bus driving, Chi-square test is applied. Table VII shows the workings of the chi-square test.

TABLE VII CHI-SQUARE TABLE


O E (O-E) (O-E)2 (O-
E)2/ E
10 7.36 2.64 6.97 0.95
1 3.33 2.33 5.43 1.63
6 5.7 0.3 0.09 0.02
2 2.61 0.61 0.37 0.14
6 7.36 1.36 1.85 0.25
4 3.33 0.67 0.45 0.16
7 5.7 1.3 1.69 0.30
2 2.61 0.61 0.37 0.14
6 5.04 0.96 0.92 0.18
1 2.28 1.28 1.64 0.72
3 3.9 0.9 0.81 0.21
3 1.79 1.21 1.46 0.82
7 1.75 0.75 0.56 0.07
4 3.5 0.5 0.25 0.07
7 6 1 1 0.17
2 2.75 0.75 0.56 0.20
2 3.49 1.49 2.22 0.64
4 1.58 2.42 5.86 3.71
1 2.7 1.7 2.89 1.07
2 1.24 0.76 0.58 0.47
Total 80 11.92
χ2 = (0-E) 2 / E = 11.92
Degree of freedom (V) = (r-1) c-1)
= (5-1) (4-1)
V=4×3
V = 12
Table value 5% level =21

Since the calculate value (11.92) is less than Table value at buses, (47.62%) of the respondents say that breakdown is
5% level of (16.9). If the null hypothesis where accepted. due to rush driving, (53.75%) of respondents feel that bus
Here it is concluded that there is no significant relationship maintenance is good, (75%) of the respondents opine that
between different age group of respondents and opinion the operation is good, (67.50%) of the respondents have
about the mode of private bus driving. suggested that to avoid careless driving, (86.25%) of the
respondents say that private bus is stopped correctly at all
Out of 80 respondents majority (78.75%) of the the bus stops, (45.45%) of the respondents say that the bus
respondents feel that private bus services are very good, is not stopped because of overcrowding.
(88.75%) of the respondents opine the buses are arriving
into bus stand at exact time, (44.44%) of the respondents The researcher has collected overall opinion of private
say that the buses are late due do coercion of TNSTC or bus transport services. The opinion is given in the Table
other private buses, (73.75%) of the respondents say that VIII.
private bus condition is good, (73.75%) of the respondents
feel that there is no any breakdown during their journey in

AJMS Vol. 4 No. 1 Jan - June 2015 16


A Study of Consumer Attitude towards Private Bus Transport Services in Aruppukottai

Scaling method

The respondents are supplied with 10 factors with 5 degree of ranking namely Highly satisfied, Satisfied, No opinion,
Dissatisfied, Highly dissatisfied.

TABLE VIII OVERALL OPINION OF PRIVATE TRANSPORT SERVICES


S. Opinion HS S NO DS HDS No. Of
No RES
1 Bus fare 21 59 0 0 0 80
2 Bus time 23 56 1 0 0 80
3 Audio/video 34 45 0 1 0 80
4 Cleanness 30 46 4 0 0 80
5 Driving speed 20 49 3 8 0 80
6 Care / convince 14 59 6 1 0 80
7 Seating arrangement 18 54 4 4 0 80
8 Spare bus 10 57 9 2 2 80
9 Attitude of driver/ 16 46 8 8 2 80
conductor
10 First Aid box 10 50 17 3 0 80
The value the overall opinion in private bus transport services. The opinions are done on the following 5 point scale.

TABLE IX RANKING OF OVERALL OPINION ABOUT THE PRIVATE BUS TRANSPORT SERVICES
S. Opinion Hs S NO DS HDS Total Rank
No.
1 Bus fare 105 236 0 0 0 341 IV
2 Bus time 115 224 3 0 0 342 III
3 Audio/video 170 180 0 2 0 352 I
4 Cleanness 150 184 12 0 0 346 II
5 Driving speed 100 196 9 24 0 329 VI
6 Care / convince 70 236 18 2 0 326 VII
7 Seating 90 216 12 16 0 334 V
arrangement
8 Spare bus 50 228 27 4 2 311 VIII
9 Attitude of driver/ 80 184 24 16 2 306 X
conductor
10 First Aid box 50 200 51 6 0 307 IX
Source: Primary Data

After the priority assignment by the respondents it is find REFERENCES


that Audio/ Video arrangement to top the Table and very
low priority is attitude of drivers and conductors. All the [1] Agarwal, M.K : Urban Transportation in India”, Allied
publishers Limited, 1996.
other data provided in Table 3.44. Audio/ Video facilities is
[2] Mahesh chand, “current issues in public road transport
given top most priority by the commuters. management”, Lokudyok, Augest 1986.
[3] Pillai, R.N.N., “Marketing sultan & Co., Ltd., New Delhi, 1994.
VII. CONCLUSION [4] PS. Hameed, “Road transport units in puplic sector”, loyudyok,
Oxford publication June 1979
[5] Srivastava, S.K., “Transport Development in India”, S. Chand
At present transport services are vital for the company (P) Ltd., New Delhi, 1990.
development of the people. Their importance in the mobility [6] Attred Marshall, “Transport – the magic carpet of industry, “A
of labour is a contributing factor to the economic Journal of industry and trade July – 1991.
[7] Commerce year book Road transport – Nationalised Road
development of the country. From the above analysis, it is
transport – 11991
clear that the private bus operators are able to render [8] Prabhadas Reddy, M., Rural Road, Transport system, Economic
efficient services to the utmost satisfaction of the traveling Times, January 1991.
public. Further, it is also observed that the passengers and [9] Indian Journals of Transport Management.
[10] http://en.wikipedia.org/wiki/History of the Aruppukottai
the crew members are confronted with many problems. [11] http://en.wikipedia.org/wiki/ overview of transport service
Private bus operators must try and implement the above [12] http://en.wikipedia.org/wiki/ features of private transport
suggestions, so that they would be in a position to render services
efficient services to the traveling public.

17 AJMS Vol. 4 No. 1 Jan - June 2015


Asian Journal of Managerial Science
ISSN: 2249-6300 Vol. 4 No. 1, 2015, pp.18-22
© The Research Publication, www.trp.org.in

A Study on Internet Marketing and its Impact on Buying Behaviour of


Traders in Sivakasi, Tamil Nadu
R. Sunderaraj1 and M. Loheswari2
1 2
Assistant Professor, Research Scholar, Department of Commerce, Ayya Nadar Janaki Ammal College, Sivakasi – 626 123,
Tamil Nadu, India
E-mail: r.sunderaraj@gmail.com

Abstract - Marketing provides services in order to satisfy the


customers. Internet marketing refers to advertising and II.MATERIAL AND METHODS
marketing efforts that use the web and e-mail to drive direct
sales via e-commerce as well as sales leads from websites or e- Objectives of the Study
mails. Internet marketing is a growing business, mainly
because more and more people use the internet every day.
Internet marketing is the marketing of products or services 1. To evaluate the impact of internet marketing.
over the internet. The internet has brought many unique 2. To know the perception of traders using the Online
benefits to marketing included low cost in distributing Marketing.
information and media to a global audience. E-Commerce is 3. To analyze the trend of internet marketing.
fundamentally changing the way consumers shop and buy
goods and services. Consumers have begin to learn how to act Methodology
in an ever-changing electronic marketing environment. Like
any diffusion of innovation, there is a learning curve for most Methodology is an essential aspect of any research or
consumers to behave in e-commerce in a way they feel the most
investigation. It enables the investigator to look at the
comfortable. Some of the most popular web sites for online
shopping are Myntra.com, flipkart, jabong, eBay etc., problem in a systematic meaningful and orderly way. The
Keywords: E-Commerce, Marketing, Internet, Online study is based on both primary and secondary data. The
Marketing. primary data has been collected from Sivakasi on simple
random sampling. Through this technique 200 respondents
I. INTRODUCTION are selected from various industries. Questionnaire method
is used to collect primary data from the respondents.
Marketing efforts done solely over the Internet uses Secondary data is collected from Magazines, Journals,
various online advertisements to drive traffic to an Websites etc. Statistical method is used to analyse the
advertiser's website. Banner advertisements, pay per click collected data are Chi-square, percentage analysis and
(PPC), and targeted email lists, are popular methods used in Multiple regression analysis. The following hypotheses
Internet marketing to bring the most value to the advertiser. were framed:
Internet marketing is a growing business mainly because
more and more people use the internet every day. Popular 1. H 0 - 1: there is no significant relationship between
search engines such as Google and Yahoo have been able to income and buying behaviour.
capitalize on this new wave of advertising. It is a set of 2. H 0 - 2: there is no significant relationship between
powerful tools and methodologies used for promoting experience and buying behaviour.
products and services through the Internet. Online 3. H 0 - 3: there is no significant relationship between
marketing includes a wider range of marketing elements educational qualification and buying behaviour.
than traditional business marketing due to the extra channels 4. H 0 - 4: there is no significant relationship between
and marketing mechanisms available on the Internet. frequencies of using online shopping and buying
behaviour of customer.
5. H 0 - 5: there is no significant relationship between
impacts of buying behaviour on purchasing trends of
customers.

AJMS Vol. 4 No. 1 Jan - June 2015 18


A Study on Internet Marketing and its Impact on Buying Behaviour of Traders in Sivakasi, Tamil Nadu

III.RESULTS AND DISCUSSION

The primary data is analyzed and interpreted below:

TABLE I PERSONAL PROFILE OF THE RESPONDENTS

S.No. Particulars No. of Percentage


Respondents (%)
1 Between 20 – 25 52 26
Between 25– 30 46 23
Between 30 – 35 42 21
Age
Between 35 – 40 46 23
Above 40 14 7
Total 200 100
2 Married 70 35
Marital status Unmarried 130 65
Total 200 100
3 Below Rs.10000 12 6
Between Rs.10001 – Rs.20000 64 32
Between Rs.20001 – Rs.30000 68 34
Income
Between Rs.30001 – Rs.40000 42 21
Above Rs.40000 14 7
Total 200 100
4 School Level 10 5
Diploma 8 4
Educational Under Graduate 88 44
Qualification Post Graduate 38 19
Professionals 56 28
Total 200 100
5 Less than 3 Years 56 28
Work Between 3 – 5 Years 84 42
Experience More than 5 Years 60 30
Total 200 100
6 Daily 4 2
Weekly 10 5
Frequency in Fortnightly 52 26
using Monthly 54 27
Rarely 80 40
Total 200 100
Source: Primary data

Table I clearly pictures that from the sample size of 200, remaining 4% are have diploma level. With regard with
26% are in the age group of 20 – 25 years, 23% are in the work experience 42% are between 3 – 5 years, 30% are
age group of 25 -30 years and another 23% are in the age more than 5 years and remaining 28% are less than 3 years
group of 35 – 40 year, 21% are in the age group of 30 – 35 experience. About frequency in using 40% are use online
years and remaining 7% of the respondents are in the age shopping rarely, 27% are use online shopping as monthly
group is above 40. Regarding marital status 65% are once, 26% are use online shopping fortnightly, 5% are use
Unmarried and 35% are Married. With regard to income online shopping weekly and remaining 2% are use online
34% are earning between Rs.20,001 – Rs.30,000, 32% are shopping as daily.
earning between Rs.10,001 – Rs.20,000, 21% are earning
between Rs.30,001 – Rs.40,000, 7% are earning above It is identified that the p-value is less than the 0.05, and
Rs.40,000 and remaining 6% are earning below Rs.10,000. hence the null hypothesis is rejected and results are
Regarding educational qualification 44% are have Under significant at 1 percent level. Hence it is concluded that
Graduate level, 28% are have Professionals level, 19% are “There is a relationship between income and buying
have Post Graduate level, 5% are have school level and behaviour.” The null hypothesis is disproved.

Hypothesis 1: There is no significant relationship between income and buying behaviour.

19 AJMS Vol. 4 No. 1 Jan - June 2015


R. Sunderaraj and M. Loheswari

TABLE II IMPACT OF BUYING BEHAVIOUR AND INCOME


Income (Rs.)
Buying behavior
Below Rs.10,001 - Rs.20,001 - Rs.30,001 - Above Total
Scale
Rs.10,000 Rs.20,000 Rs.30,000 Rs.40,000 Rs.40,000
Highly Satisfied 10 4 16 6 4 40
Satisfied 0 8 8 14 6 36
Neutral 2 24 8 8 2 44
Dissatisfied 0 14 20 8 0 42
Highly Dissatisfied 0 14 16 6 2 38
Total 12 64 68 42 14 200
Source: Primary Data

TABLE III CHI - SQUARE TEST INCOME AND BUYING BEHAVIOUR


Factors Value D.F. p- Value
Income 69.462 16 0.000*
*P<0.01

Hypothesis 2: There is no significant relationship between experience and buying behaviour

TABLE IV IMPACT OF BUYING BEHAVIOUR AND EXPERIENCE

Buying behavior Work Experience


Scale Less than 3-5 More than Total
3 Years years 5 Years
Highly Satisfied 16 18 6 40
Satisfied 6 6 24 36
Neutral 8 26 10 44
Dissatisfied 16 16 10 42
Highly Dissatisfied 10 18 10 38
Total 56 84 60 200
Source : Primary data

TABLE V CHI-SQUARE TEST BUYING BEHAVIOR AND EXPERIENCE


Factors Value D.F. p-Value
Work Experience 36.468 8 0.000*
*P<0.01

It is inferred that the p-value is less than the 0.05, and relationship between work experience and overall impact of
hence the null hypothesis is rejected and results are buying behaviour.
significant at 1 percent level. Hence, the hypothesis “There Hypothesis 3: There is no significant relationship between
is no significant relationship between experience and buying educational qualification and buying behaviour.
behaviour” is disproved. This shows that there is

TABLE VI IMPACT OF BUYING BEHAVIOUR AND EDUCATIONAL QUALIFICATION


Buying behavior Educational Qualification
Scale School Diploma Under Post Professionals Total
Level Graduate Graduate
Highly Satisfied 8 8 16 8 0 40
Satisfied 0 18 12 16 0 36
Neutral 0 30 2 12 0 44
Dissatisfied 0 24 8 10 0 42
Highly Dissatisfied 2 18 0 10 8 38
Total 10 88 38 56 8 200
Source : Primary data

TABLE VII CHI – SQUARE TEST – BUYING BEHAVIOR AND EDUCATIONAL QUALIFICATION
Factors Value D.F. p- Value
Educational 104.858 16 0.000*
Qualification
*P<0.01

AJMS Vol. 4 No. 1 Jan - June 2015 20


A Study on Internet Marketing and its Impact on Buying Behaviour of Traders in Sivakasi, Tamil Nadu

It is identified that the p-value is less than 0.05, and no relationship between qualification and buying behaviour”
hence the null hypothesis is rejected and results are is disproved. This show that there is relationship between
significant at 1 percent level. Hence, the hypothesis “there is educational qualification.

Hypothesis 4: There is no significant relationship between frequency of using online shopping on and buying behaviour.

TABLE VIII IMPACT OF BUYING BEHAVIOUR AND FREQUENCY OF USING ONLINE SHOPPING
Buying behavior Frequency of using online shopping
Scale Daily Weekly Fortnightly Monthly Rarely Total
Highly Satisfied 2 10 10 10 8 40
Satisfied 0 0 6 12 18 36
Neutral 0 0 10 6 28 36
Dissatisfied 0 0 16 12 14 42
Highly 2 0 10 14 12 38
Dissatisfied
Total 4 10 52 54 80 200
Source : Primary data
TABLE IX CHI-SQUARE TEST – BUYING BEHAVIOR AND FREQUENCY OF USING ONLINE SHOPPING
Factors Value D.F. p- Value
Frequency of 67.123 16 0.000*
using online
shopping
*P<0.01

It is identified that the p-value is less than 0.05, and hence between frequency of using online shopping and buying
the null hypothesis is rejected and results are significant at 1 behaviour” is disproved. This shows that there is
percent level. Hence, the hypothesis “there is no relationship relationship between frequency of using online shopping.

TABLE X ONLINE BUYING BEHAVIOR – TREND


Purchase of new fashion

Use debit / credit cards

Not necessary to spend


Avoid going to general
and trendy products

Shopping expense is
Buying behaviour

It is a new way to

Usage of internet
Lifestyle change
Social status

more money

increased
shopping

market

Factors

Buying behavior 1.000


It is a new way to
0.317 1.000
shopping
Purchase of new fashion
.447 .313
and trendy products 1.000
Use debit / credit cards .310 -.182 .101 1.000
Social status .243 -.169 -.028 .310 1.000
Avoid going to general
.245 -.091 .014 -.030 .345
market 1.000
Lifestyle change .382 .059 .131 .071 .035 .138 1.000
Not necessary to spend
.060* .013 -.079 .066 .131 .101 -.128 1.000
more money
Usage of internet .407 -.140 .099 .269 .178 .338 .312 .022 1000
Shopping expense is
.619 .444 .324 .127 .032 .021 .215 -.119 .022 1000
increased
Not Significant

Above Table X, shows that correlation analysis is internet, shopping expense is increased. It was found
done to show the existing relation among the study that impact of buying behaviour is significantly
variables namely new way of shopping, new fashion correlated with new way shopping (r = .317, p < 0.01),
and trendy of products, use of debit or credit cards, new fashion of products (r = .243, p , 0.05), avoid go to
social status, avoid going to general markets, life style general markets (r = .245, p , 0.01) life style changed
changed, not necessary to spend more money, uses of (r =.382, p < 0.01), not necessary to spend more money

21 AJMS Vol. 4 No. 1 Jan - June 2015


R. Sunderaraj and M. Loheswari

(r = .060, p < 0.01), usage of internet (r = .407, p < in the market. Spending more money in purchasing things
0.01) and shopping expense is increased (r = .619, p< which is not necessary may increase expenses of individuals
0.01). and their monthly budgets.

IV. FINDINGS VI. CONCLUSION

1. Most of the respondents (26 percent) are between Technology, advancement and innovation bring lot of
the age group of 20 – 25 Years. changes in the way of living on such change observed in
2. Majority of the respondents (65 percent) are present scenario is the new way of purchasing through
unmarried. online as internet marketing. It is a fast growing concept,
3. Most of the respondents (34 percent) monthly because people, feel convenient as it can save lot of time
income is between Rs.20,001 – Rs.30,000. and energy even though there is no physical feel of the
4. Most of the respondents are (44 percent) Under product, but still online markets attracts because of variety
Graduate. of products available. Traders using online markets should
5. Most of the respondents (42 percent) work be planed and determined and they should also be aware of
experience is 2 – 5 Years. possible online threats.
6. Most of the respondents (40 percent) are rarely
use online shopping. REFERENCES
7. There is a significant relationship between
income and buying behaviour. [1] Dr.Gurmeet Sing and Mr. Harish Gautam (2002) Consumer
Attitude towards Web Advertising in Urban Panjab, Indian
8. There is a significant relationship between
Journal of Marketing, pp 27-29.
educational qualification and buying behaviour. [2] Dr. Hatem El-Gohary (2010) E-Marketing – A literature Review
9. There is a significant relationship between work from a Small Businesses perspective, International Journal of
experience and buying behaviour. Business and Social Science, Vol.1 (1) pp 214-244.
[3] Efthymios Constan tin ides, (2004) Influencing the online
10. There is a significant relationship between consumer’s behavior: the web experience, Internet Research,
frequencies of using online and buying Vol.14 (2) pp. 111-126.
behaviour. [4] George N.Lodorfos and Tom A. Trosterud (2006) E-
11. Factor like way of shopping, use debit/ credit Consumers’ Attitude and Behaviour in the online commodities
market, Innovative Marketing, vol.2 (3) pp. 77-96
cards, fashion and trendy products, social status, [5] Anders Hasslinger (2007) Consumer Behaviour in Online
use of internet, lifestyle changes are have impact Shopping, Retrieved from:
with the buying behaviour of traders. http://www.cimaglobal.com/Documents/ImportedDocuments/Te
ch_MAG_Evaluating_Internet_Marketing_April06.pdf.
[6] Bianca Lizelle Nothnagel (2006), Internet Marketing
V. SUGGESTIONS Communications: A Content Analysis of the Web Sites of
Graded South African Lodges, Retrieved from:
It is observed that respondents in the younger age are file:///C:/Users/pgcommerce(r)/Downloads/dissertation.pdf.
more attracted towards internet marketing, the fashion and [7] Olivier Furrer and D.Sudharshan (2001), Internet marketing
research: Opportunities and Problems, Qualitative Market
trendy product over online markets attracts them and also
Research: An International Journal, Vol. 4 (3) pp. 123-129.
results in change of life styles, hence it is suggested that [8] http://www.businessdictionary.com/definition/internet-
online markets may be used for convenience and for marketing.html#ixzz3ObEGkdjz.
purchasing things which is expensive or not easily available

AJMS Vol. 4 No. 1 Jan - June 2015 22


Asian Journal of Managerial Science
ISSN: 2249-6300 Vol. 4 No. 1, 2015, pp.23-26
© The Research Publication, www.trp.org.in

Servqual Model: An Analysis of Hospitality Sector in Goa


Renji George Amballoor
Associate Professor, Government College of Commerce, Borda, Margao, Goa - 403601, India
E-mail: amballoor@yahoo.com, amballoor@gmail.com

Abstract - Brand Goa is known in every nook and corner of the demonstration effect acted as a catalyst in speeding up
global economy as a wonderful tourist destination. The tourism consumerism.
induced hype has equipped the hospital sector to emerge as
one of the important contributors of state gross domestic The regulating mechanism to ensure quality and
product. In the era of competition, the very survival of the
standardization is either not in place or too many regulators
hospitality sector depends on the extent to which variables
associated with quality dimensions / parameters can be are present with no actual regulating taking place. The
enhanced against international benchmarks. The study uses consumerist spirit, middle- class status enhancing spending,
the SERVQUAL model to understand how the domestic & influence of brand image, the band-wagon effect, etc. has
foreign tourists rank the quality dimensions / parameters of empowered the consumer by discarding quality and various
the hospitality sector in Goa. Further the study also makes other standards. Similar concerns were expressed in the
suggestions for improving the quality dimensions /parameters background paper outlining the consumer welfare strategy
for making the hospitality sector more vibrant, dynamic & for the 11th five year plan. What is said about India in
sustainable. general is also very true of Goa.
Keywords: Service Quality, Quality Dimensions/ Parameters,
SERVQUAL model/ Perception
Tourism is one of the dominant sectors with atleast 30%
I. INTRODUCTION of the state domestic product emerging from it. Goa is
preferred as an outstanding tourist destination nationally and
The endeavor of the Department of Civil Supplies and internationally. This brand image ensures that, of late, the
Consumer Affairs, Government of Goa, and the inputs of total tourist inflow is either equal to or more than the total
civil society organizations - especially, the Goa Civic & population of Goa. Such tourist inflows have raised the
Consumer Action Network (GOACAN) - has contributed question of Goa’s optimum ‘carrying capacity’.
towards the expansion in the public awareness about the
Consumer Protection Act and the redressal mechanism in The relatively inelastic demand for the different facets of
Goa. This has contributed towards the empowerment of the Goa’s tourism has prompted various economic participants
various stake-holders both in urban and rural Goa -about in the tourism sector, especially the hospitality sector, to
their consumer rights and duties. But there are many ignore the need for ensuring quality & universally accepted
emerging concerns in optimizing the consumer welfare in quality standards. The money power of the hospitality sector
the state. has also induced various regulating agencies to play hide
and seek with quality and standards. Such an approach has
The ‘liberalization-privatization-globalization’ (LPG) put the tourist- the consumers of the hospitality sector- into
propelled ‘market-economy model’ & ‘efficient market difficulties thereby contributing towards the decline in
hypothesis’ based on the neo-classical paradigm has opened consumer welfare.
the economy to the global market for goods and services
which were previously unheard of.
II. OBJECTIVES
The market-economy, guided by the profit margin, has
induced manufacturers and service providers to introduce 1. To understand how domestic and international
new products and services. On the other hand, the high rate tourists ranked the hotels in which they stayed on
of growth witnessed in the economy in mid 2000 along with five different ‘quality dimensions/ parameters’.
the hefty rise in the pay scales of government staff & 2. To suggest policy measures for reducing the gap in
teachers - due to the implementation of the 6th pay scales & ‘quality dimensions/parameters’.
UGC revised scales has led to amoebic expansion of a
middle class with a large disposable income. This class
ignited the emergence of a consumerist society and the

23 AJMS Vol. 4 No. 1 Jan - June 2015


Renji George Amballoor

III. REVIEW OF LITERATURE credibility, communication, security and knowledge of the


customer. Subsequently in 1991, Parasuraman et.al., refined
Despite some recent studies in customer satisfaction and and modified the quality dimensions/parameters into
service quality, similar investigations into the star hotel assurance, reliability, tangibles, responsiveness and
segment for Goa has remained insignificant. In the research empathy. In the rating scale, 7 represented the highest rating
article ‘Customer based Equity: Evidence from the Hotel and 1 the lowest.
Industry’ (2007), Kayaman & Arasli argue that maintaining
high quality standards can enhance the brand equity of the The SERVQUAL model was used in the study as the
hospitality industry especially star hotels. conceptual framework for service quality measurement in
the service sector. The service quality gap (SERVQUAL
Jasmina Gržinić (2007), in his article has employed the GAP) as developed by Parasuraman et.al.,( 1991) was
SERVQUAL (Services Quality Model) (Parasuraman, measured using the following parameters – ‘reliability,
Zeithaml & Berry(1985). The SERVQUAL model offers a assurance, tangibles, responsiveness and empathy’.
suitable conceptual frame for the research and service
quality measurement in the service sector. Jasmina has used V. DATA ANALYSIS
this model to find the deviations between the expected and
perceived quality standards of guests in 16 hotels and The international tourists who were interviewed for the
different measures to bridge the gap. primary survey were mainly from USA, UK, Russia,
Germany & Israel. The domestic tourists were from the
Manav Thadani ( 2009) in the article titled ‘Critical states of Delhi, Maharashtra, Kerala, Tamil Nadu and
Issues Facing Indian Hospitality: An HVS White Paper”, Karnataka.
lists the critical issues facing the hospitality industry. About
40 different agencies have to be approached for obtaining As far as international tourists were concerned, seventy
70-110 quality standard licenses. The study also highlights nine percentage of them stayed in Goa for a period of two
the drawbacks of the present classification/ rating system in to three weeks whereas, 11% for one to two weeks and the
India. remaining 10 % for less than one week. In the case of
domestic tourists, 93% stayed in Goa for a maximum period
IV. METHODOLOGY of five to seven days and the balance 7% for three days &
less.
The study was based on primary and secondary data.
Primary data was collected from the tourists. About 300 There was a marked difference in the preference of the
tourists each were personally interviewed from North and tourists with respect to the category of hotels chosen by
South Goa. them. Four star & above categories were preferred by two-
third of the American, British & German tourists. Whereas
The term tourist included both the domestic as well as two star, one star hotels & cottages were preferred by all the
the international tourists visiting Goa with their immediate tourists from Russian & Israel. The difference in preference
family members atleast for two days & two nights. The pattern reflects the divergence in the disposal incomes of the
hospitality sector will be graded according to their rankings tourist.
given by the tourism department. The sample population
will have tourist staying in different segments with different More than 60% of the domestic tourists preferred 3, 2 & 1
rankings. Secondary data was collected from various star hotels. In the study , none of the domestic tourists
published sources. preferred serviced rooms & cottages.

According to the study, service quality ( Parasuraman, The number of family members of a tourist visiting Goa
1985) is the difference between the customers’ expectations also reflected marked difference between domestic and
before the service is experienced and the perception about international tourists. In the case of international tourists,
the service after it is rendered. The service quality is said to 93% of them were two member contingent especially in the
be high if the perceived quality is very close to the expected age group 25-35 years. Only 7% visited Goa with 3 or more
quality of the service. family members.In the case of domestic tourists, 60%
visited with a 4, 30% with 3, 8 % with 5 and 2% with 2
The domestic and international tourists ranked the hotels members respectively.
in which they stayed, on five different ‘quality dimensions/
parameters’ (Parasuraman et. al. 1985 &1988) in on a seven The domestic and international tourists ranked the hotels
point ‘Likert scale’. Parasuraman et.al., initially in 1985 in which they stayed, on five different ‘quality dimensions/
identified 10 service quality determinants like tangibles, parameters’ (Parasuraman et al. 1985 &1988) in on a seven
reliability, responsiveness, competence, courtesy, access, point ‘Likert scale’. In the rating scale, 7 represented the

AJMS Vol. 4 No. 1 Jan - June 2015 24


Servqual Model: An Analysis of Hospitality Sector in Goa

highest rating and 1 the lowest. In the survey, the SERVQUAL Gap for international tourists who were
expectation (SERVEXP Scale) was assumed to be 7 for the residing in four star hotels and above.
entire sample population. The Table 1 shows the

TABLE I SERVQUAL GAP ( INTERNATIONAL TOURIST IN FOUR STAR HOTELS & ABOVE)
SERVQUAL Gap
Quality Expectation Quotient Perception Quotient
( Perception-
Parameters/Dimensions ( SERVEXP Scale) ( SERVPERC Scale)
Expectation)
Assurance 7 6.6 -0.40
Reliability 7 6.57 -0.43
Tangibles 7 6.8 -0.20
Responsiveness 7 6.4 -0.60
Empathy 7 6.8 -0.20
Total SERVQUAL Gap 7 6.63 -0.37

The widest gaps were in the dimensions of responsiveness (-0.6), reliability (-0.43) and assurance (-0,4). The gap in the
dimensions of empathy and tangibles was the minimum (-0.2).

The Table II shows the SERVQUAL Gap for domestic tourists who were residing in four star hotels and above.

TABLE II SERVQUAL GAP ( DOMESTIC TOURIST IN FOUR STAR HOTELS & ABOVE)
SERVQUAL
Quality Parameters/ Expectation Perception Quotient Gap
Dimensions ( SERVEXP Scale) ( SERVPERC Scale) ( Perception-
Expectation)
Assurance 7 6.8 -0.20
Reliability 7 6.7 -0.3
Tangibles 7 6.8 -0.20
Responsiveness 7 6.6 -0.40
Empathy 7 6.8 -0.20
Total SERVQUAL Gap 7 6.74 -0.26

The widest gaps were in responsiveness (-0.4) and reliability (-0.3). The gap in the dimensions of assurance and empathy
was at the minimum of -0.2 respectively.

The Table III shows the SERVQUAL Gap for international tourists who were residing in three star hotels and below.

TABLE III SERVQUAL GAP ( INTERNATIONAL TOURIST IN THREE STAR HOTELS & BELOW)

Expectation Perception SERVQUAL Gap


Quality Dimensions
( SERVEXP Scale) ( SERVPERC Scale) ( Perception- Expectation)
Reliability 7 6.4 -0.6
Assurance 7 6.3 -0.7
Tangibles 7 6.4 -0.6
Responsiveness 7 6.5 -0.5
Empathy 7 6.8 -0.2
Total SERVQUAL Gap 7 6.48 -0.52

The widest gaps were in the dimensions of assurance (-0.7), reliability (-0.6) and tangibles (0.6). The gap in the dimension
of empathy was at the minimum of -0.2.

The widest gaps were in the dimensions of assurance (-0.7), reliability (-0.6) and tangibles (0.6). The gap in the dimension of
empathy was minimum (-0.2).

The Table IV shows the SERVQUAL Gap for domestic tourists who were residing in three star hotels and below.

25 AJMS Vol. 4 No. 1 Jan - June 2015


Renji George Amballoor

TABLE IV SERVQUAL GAP ( DOMESTIC TOURIST IN THREE STAR HOTELS & BELOW)

SERVQUAL Gap
Quality Parameters/ Expectation Quotient Perception Quotient ( Perception-
Dimensions ( SERVEXP Scale) ( SERVPERC Scale) Expectation)
Assurance 7 6.3 -0.70
Reliability 7 6.4 -0.6
Tangibles 7 6.4 -0.6
Responsiveness 7 6.5 -0.5
Empathy 7 6.8 -0.2
Total SERVQUAL Gap 7 6.48 -0.52

VI. CONCLUSION months before the peak tourist of the region. Every hotel
should have an elaborate system for training its staff on
From the SERVQUAL gap analysis, it is clear that the different aspects of quality standards & on maintaining it.
hotels can improve their quality standards by concentrating The trade associations can hold similar training for all those
on responsiveness & reliability dimensions. At the time of hotels in 1,2 & 3 star categories.
booking, the service provider can collect information on the
individual needs & expectations of the customer. The data Most of the serviced cottages & rooms in which the
so collected can be used to provide personalized services tourists were staying were not listed, classified and ranked.
according to customer expectations. Efforts should be made to bring them into mainstream by
rating the quality standards. A separate set of quality
VII. SUGGESTIONS standards needs to be worked for this category. They should
be eligible for all local licenses and permits only on the
More information should be disseminated to the basis of their rankings.
customers on HRACC quality requirements for star rating
and what a consumer can expect from each level of ratings. REFERENCES
It should be made mandatory for all hotels to display in the
lobby the quality requirements available to customers with [1] Angle, Prabhakar S. (2001). Goa-An Economic Update. The
Goa Hindu Association, Mumbai.
the respective star ratings. The HRACC should have a
[2] Chen, F.P., Chen, C.K.N., and Chen, K.S. (2001). The
monitoring mechanism to evaluate the quality claims of Integrated Evaluation Model for Administration Quality based
hospitality sector on the net. The HRACC should have a on Service Time. Managing Service Quality, 11.
dedicated website for the customers to upload their reviews [3] I S S. (1989) Tourism in Goa: A Socio- Economic Impact.
Institute of Social Sciences, New Delhi.
about a hotel. Every hotel should have a grievance redressal [4] Jasmina Gržinić (2007). Concept of Service Quality
officer. His/ her name with contact mobile number & email Measurement in Hotel Industry. Ekon Misao Praksa DBK God
id should be prominently displayed on the lobby of the XVI BR. 1.
hotel. The service of the officer should be available [5] Mill, R.C. (1986). Managing the Service Encounter, The
Cornell HRA Quarterly, February.
throughout the day during the peak seasons
[6] Noronha Ligia. (2000). The Development-Environment
Interface in Goa. In Peter R De Souza( Eds.) Contemporary
Usually hotels are selected not always on the basis of India: Transitions, Sage Publications India, New Delhi.
quality standards and ratings’, but on the basis of the [7] Parasuraman, A., Zeithaml, A. V., Berry, L. L.,(1991).
Refinement & Reassessment of the SERVQUAL Scale, Journal
availability especially on weekends and during peak
of Retailing , 67(4).
seasons. Hence a code of quality standards to be offered to [8] Parasuraman, A., Berry, L. L., Zeithaml, A. V (1988).
different segments should be published by the website of the SERVQUAL: A Multiple Item Scale for Measuring Consumer
State Tourism Department, Goa State Tourism Perception, Journal of Retailing , 64(1) Spring.
[9] Parasuraman, A., Zeithaml, A. V., Berry, L. L.,(1985). A
Development Corporation, the hotel website. The Conceptual Model of Service Quality and Its Implications for
hospitality sector in collaboration with their trade Future Research, Journal of Marketing , 49, Fall.
association should regularly update the criteria & code for [10] Saunders, Ian W., Graham, Mary Ann (1992), Total Quality
the convenience of the customers. Management in the Hospitality Industry, Total Quality
Management, Vol. 3, Issue 3.
[11] Shahin, A. (2006). SERVQUAL and model of service quality
Since the hotels located in the state are using the local gaps: A framework for determining and Prioritizing Critical
resources & infrastructure, the Department of Civil Factors in Delivering Quality Services. In Partha Sarathy V.
Supplies, Government of Goa should become proactive and (Eds.). Service Quality – An Introduction, ICFAI University
Press Andhra Pradesh .
continuously check and monitor, and prescribe new quality [12] Zinnerman, C.D. & Knell, J.W. (1988) Service Industries, in:
standards especially for hotels in 3 star & lower categories. J.M. Juran & F.M. Gryna (Eds.) Juran's Quality Control
The star ratings given to a hotel should be reviewed every Handbook, 4th edition, McGraw-Hill, New York.
two years. The ratings should be reviewed at least 3 to 4

AJMS Vol. 4 No. 1 Jan - June 2015 26


Asian Journal of Managerial Science
ISSN: 2249-6300 Vol. 4 No. 1, 2015, pp.27-32
© The Research Publication, www.trp.org.in

Customer Responsiveness on Banking Technology Products in Rural


South India
P.Vidyapriya1 and M.Mohanasundari2
1
Associate Professor, 2Assistant Professor
Department of Management Studies, Kongu Engineering College, Erode District, Tamil Nadu, India
E-mail: vidhpi@gmail.com

Abstract - This project is about “customer responsiveness on I. INTRODUCTION


banking technology products in rural south india”. This study
is mainly done to measure the customer responsiveness Technology has opened up new markets, new products,
towards the technology products of banks in rural Tamilnadu. new services and efficient delivery channels for the banking
Indian banks today are as technology-savvy as their
industry. With the growing Internet awareness among
counterparts in developed countries. Branch networking
coupled with ATM networks has resulted in expansion of customers, increase in role of banks in e-business and
banking services across the country. Introduction of new growing reach of the internet, e-banking would become an
technology based products and services have put the banking important part of the Indian banking sector in the years to
industry on a new growth trajectory. The purpose of this come. The use of most modern and advance methods of
research is to study the extent of usage of various banking equipments in banking industries is called ‘E-BANKING’.
products and services by customers. Field surveys with The E-Banking is changing the banking industry and is
structured questionnaires (interview schedule) were used to having the major effects on banking relationships.
collect primary data from the customers on random sample Technology is then essential in providing faster and more
basis in Branches in rural Tamilnadu. Indian Banks have
efficient services to customers. Technology acquisition must
effectively leveraged technology and introduced several
variants of traditional products and new e-based services. be based on actual needs and the proven ability to deliver
While ATM has become popular for cash withdrawals, other customer – friendly solutions. Technological innovation not
services like mobile banking and internet banking are sub- only enables a broader reach for consumer banking and
optimally used. Customers are still not using the full range of financial services, but also enhances its capacity for
services available in ATMs. This research would surely help continued and inclusive growth.
the bank branches to know about the responsiveness level of
rural customers towards technology products and helps them The banking industry has shown tremendous growth in
to take necessary steps to improve. volume and complexity during the last few decades. Despite
Keywords: Customer responsiveness, Customer Awareness,
making significant improvements in the areas relating to
Technology-Savvy, Internet and Mobile banking, ATM
network. financial viability, profitability and competitiveness, there
are concerns that banks have not been able to reach and
bring vast segment of the population, especially the
underprivileged sections of the society, into the fold of basic
banking services.

TABLE I RURAL & URBAN BANKING AT GLANCE


Population Branches Per Branch Share of Share of
Group
(Crore) (in ‘000) Population Deposits Advances
Rural 83 (68) 34 (37) 24 9% 8%
Urban 38 (32) 59 (63) 6 91% 92%
Total 121 93 13 100 100
Source: Census 2011 & RBI Banking Statistics – Handout Dec`11 () denotes percent

II. OBJECTIVES OF THE STUDY 3. To know the purpose of using technology products
in rural areas
The Objectives of the research are as follows: 4. To understand the factors affecting the usage of
1. To measure the customer responiveness level of technology products in rural areas.
technological products offered by banks in rural
South India III. LITERATURE REVIEW
2. To know the customer perception of technology
products in rural areas. R. Seranmadevi, M. G. Saravanaraj (2012), from their
study on “Technology on Indian Banking Sector”, observed

27 AJMS Vol. 4 No. 1 Jan - June 2015


P.Vidyapriya and M.Mohanasundari

the role of information technology (IT) in the Indian become popular for cash withdrawals, other services like
banking industry. Indian banks are investing heavily in the mobile banking and internet banking are sub-optimally
technologies such as automated teller machine (ATMs), net used. Banks must aggressively promote e-banking services
banking, mobile banking, tele -banking, credit cards, debit so as to reduce footfalls in branches.
cards, smart cards, call centers, CRM, data warehousing etc.
It is essential to evaluate the impact of information Khalil Mohammed Khalil (2011), in his study on “Online
technology on the performance of Indian banks in terms of Service Quality and Customer Satisfaction”, examined the
extended value added services and customer satisfaction impact of E-SERVQUAL model on customer satisfaction.
thereby. Four service quality dimensions namely tangibles,
reliability, responsiveness, assurance, and empathy have
Andrew Musiime, Malinga Ramadhan (2011), from their been established based on the SERVQUAL model. These
study on “Internet banking, consumer adoption and variables have been tested to explore the relationship
customer satisfaction”, examined the factors that influence between online service quality and the customer
consumer adoption of Internet banking service as well as satisfaction. The study shows that these dimensions are
examine the relationship between Internet banking service, good to measure the relationship between online service and
customer adoption and customer satisfaction. The study customer satisfaction.
established that there was a significantly positive
relationship between Internet banking and customer K.T. Geetha & V.Malarvizhi (2010), in their study on
satisfaction. “Acceptance of E-Banking among customers”, observed the
factors which are affecting the acceptance of e-banking
Shirshendu Ganguli, Sanjit Kumar Roy (2011), from services among the customers and also indicates level of
their study on “Generic technology-based service quality concern regarding security and privacy issues in Indian
dimensions in banking”, identified four generic service context .The finding depicts many factors like security and
quality dimensions in the technology-based banking privacy and awareness level increased the acceptance of e-
services – customer service, technology security and banking services among Indian customers and it shows that
information quality, technology convenience, and if banks provide them necessary guidance and ensure safety
technology usage easiness and reliability. It was found that of their accounts, customers are willing to adopt e-banking.
customer service and technology usage easiness and
reliability have positive and significant impact on customer Alhaji Abubakar Aliyu , Sayf M.D Younus, Rosmaini
satisfaction and customer loyalty. Bin HJ Tasmin (2012),in their study on “An Exploratory
Study on Adoption of Electronic Banking-Underlying
Alabar, T. Timothy (2012), in their study on “Electronic Consumer Behaviour and Critical Success Factors”,
Banking Services and Customer Satisfaction in the Nigerian observed the relationship between Electronic banking
Banking Industry”, identified that the Electronic banking adoption and the determining factors for critical success of
services (EBS) are a recent invention that has come to stay Electronic Banking. The factors like awareness, ease of use,
in the Nigerian banking industry. One wonders whether security, cost, reluctance to change and accessibility
these services as recent as they are create optimum determines the adoption of Electronic banking.
satisfaction to teeming customers. It is against this backdrop
that the paper is set to examine the relationship between Dr. Nasim Z. Hosein (2011), in his study on “Internet
these services and customer satisfaction in the industry. banking: Understanding consumer adoption rates among
community banks”, observed that the success of internet
Nouman Anwar Dar (2011), in his study on “Awareness banking is determined not only by banks or government
of Electronic Banking in Pakistan”, observed that the support, but also by customers' acceptance of it. The
Electronic Banking is an essential sector of banking business benefit of the internet banking is to generate
industry. This research paper focuses on growth and additional revenue, improve customer service, extend
awareness of electronic banking in Pakistan. Electronic marketing, and increase cost saving. The results from the
banking is today’s need as it provides easy way to monitor survey indicated that customers who have some level of
an account. Most of the commercial banks in the country Internet usage and some degree of Internet experience have
switched to the convenience ways in accessing the accounts led to an increase in the adoption of internet banking.
of the customers and giving them the freedom for the easy
access. IV. NEED FOR THE PRESENT STUDY

Dr. Mahalaxmi Krishnan, Darshana Kadwadkar (2009), Indian banks have leveraged technology and have
in their study on “Emerging Challenges of Technology introduced an array of products and services.
Based Banking Services in the New Millennium”, observed This study examines the extent of use of these products and
that Indian banks today are as technology-savvy as their services by rural customers and the issues emerging for
counterparts in developed countries. The purpose of this banks for enhancing customer service.
research is to study the extent of usage of various banking
products and services by customers. While ATM has

AJMS Vol. 4 No. 1 Jan - June 2015 28


Customer Responsiveness on Banking Technology Products in Rural South India

Research Gap covering bank customers on random sample basis in rural


bank Branches and from secondary published sources.
Despite of growing interest and importance of usage of Primary sources included personal interviews,
technology products among customers in many financial questionnaires and visits to branches. While the bank staffs
institutions, still there have remained lower adoption rates were interviewed at branches, customers were met at ATMs,
among rural customers. Its usage has not brought significant branches and at bus stops. Secondary sources included
outputs in the way rural customers become happy with the books, journals, newspapers, websites, and research studies.
services offered, and indeed extant literature indicates that
despite such growing interest, no significant studies that Sample Size
have focused on “Customer responsiveness level on The total sample size selected for the study from the 5 banks
Technology Products in rural south India”. in rural Tamilnadu is 610. Out of which, 122 Samples were
selected from a each bank. Sample size is determined using
The present study intends to know the factors for the N = ( Z 2 * σ2 ) / E
=
awareness level of technology products by the rural (1.96)2* ((5-1)/1)2 / 0.5
customers and also indicates level of concern regarding Sample Size = 122 (for a Single Branch)
security and privacy issues in Indian context. So the total sample size taken for the study is 610
that is 122 separately from 5 banks .
V. RESEARCH METHODOLOGY
Sampling Method
Coverage of the Study Stratified sampling technique has been chosen for this study
This research covers 15 branches of 5 different banks in the and the samples are collected in a random lottery method.
rural branches of Chennai, Madurai, Erode, Coimbatore and
salem districts in Tamilnadu and their bank customers. Data Analysis
Critical analysis of the data and information collected from
Sources of Data primary sources as well as from published sources were
Data and information were gathered from primary source by made keeping the objectives of the study in mind.
means of field survey using structured questionnaires

VI. RESEARCH FINDINGS

TABLE II DISTRIBUTION OF RESPONDENTS ON THE BASIS OF DEMOGRAPHIC FACTORS

S.No. Variables No. of Percentage


Respondents
GENDER
1 Male 355 58
2 Female 255 42
AGE
1 Below 25 Years 190 31
2 26 – 40 Years 255 42
3 41 – 50 Years 85 14
4 51 – 60 Years 43 7
5 Above 60 Years 37 6
ANNUAL INCOME
1 < 50000 140 24
2 > 50000 – 1 Lakh 210 34
3 > 1 Lakh – 3 Lakhs 180 29
4 > 3 Lakhs – 5 Lakhs 45 7.3
5 > 5 Lakhs 35 5.7
EDUCATIONAL QUALIFICATION
1 SSLC 45 8
2 HSC 110 18
3 Under Graduate 275 45
4 Post Graduate 125 20
5 Others 55 9
Source: Field Survey, 2013

Table II represents the demographic characteristics of the majority (58%) of the respondents is Male and 42% are
610 respondents. It is inferred from the analysis that Female. It is also inferred from the analysis that majority

29 AJMS Vol. 4 No. 1 Jan - June 2015


P.Vidyapriya and M.Mohanasundari

(42%) of the respondents are from the age group of 26 – 40 age group of above 60 Years. It is inferred from the analysis
Years and 31% are from the age group of Below 25 Years that the majority (34%) of the respondents is with the annual
and 14% are from the age group of 41 -50 Years and 7% are income level of > 50000 – 1 Lakh and the majority (45%) of
from the age group of 51 – 60 Years and 6% are from the the respondents is Under Graduates.

TABLE III TYPE OF ACCOUNT OPERATED BY CUSTOMERS


S.No. Variables No. of Percentage
Respondents
1 Current Account 55 9
2 Fixed Deposit 120 20
3 Savings Account 195 32
4 Recurring Deposit 240 39
Source: Field Survey, 2013

It is inferred from the analysis that the majority (39%) of influencing factors which will determine the awareness
the respondents is operating the recurring account and level of the customers.
32%of the respondents are operating the savings account
and 20% of the respondents are operating the fixed deposit These factors are analyzed using principle component
and 9% of the respondents are operating the current account. extraction method with Varimax rotation. The numbers of
factors were unconstrained. Pure variables have loading of
Assessment of the Degree of Association of Factors 0.5 and greater or only one factor. Complex variables may
have high loading on more than one factor and they make
The 13 different factors are taken for the study and they the interpretation of the output difficulty. Then rotated the
are analyzed through the factor analysis to predict the most components 7 times to get the significant variables under
four factors.

TABLE IV RELIABILITY STATISTICS-FACTOR ANALYSIS


No.of
Cronbach's Alpha
Items
0.752 13

Table IV shows the reliability statistics and proves the data could support 75.2 percentage reliable to do this analysis.
TABLE V KMO AND BARTLETT’S TEST
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.721
Approx. Chi-Square 325.87
Bartlett's Test of Sphericity Df 78
Sig. 0

Table V indicates that the Kaiser-Meyer-Olkin (KMO) measures of sampling adequacy in the study is 0.721, which was
higher than the recommended minimum of 0.6 indicating that the sample size was adequate for applying factor analysis.
TABLE VI TOTAL VARIANCE EXPLAINED
Extraction Rotation
Comp. Initial Eigenvalues Sums of Sums of
Squared Squared
Loadings Loadings
Total % of Cumulative Total % of Cumulative Total % of Cumulative
Variance % Variance % Variance %
1 3.329 25.605 25.605 3.329 25.605 25.605 2.262 17.398 17.398
2 1.721 13.236 38.840 1.721 13.236 38.84 1.917 14.747 32.145
3 1.307 10.054 48.894 1.307 10.054 48.894 1.833 14.102 46.247
4 1.037 7.973 56.868 1.037 7.974 56.868 1.381 10.621 56.868
5 3.329 25.605 25.605
6 0.843 6.482 70.611
7 0.748 5.757 76.368
8 0.732 5.632 82.001
9 0.605 4.656 86.657
10 0.513 3.949 90.605
11 0.500 3.848 94.453
12 0.447 3.436 97.889
13 0.274 2.110 100.000
Extraction Method: Principal Component Analysis.

AJMS Vol. 4 No. 1 Jan - June 2015 30


Customer Responsiveness on Banking Technology Products in Rural South India

Table VI depicts the total variance explained. Total variance for factors 1,2,3 and 4 are 25.605, 13.236, 10.054 and 7.974
is explained with rotation, the Eigen values are different for respectively. It indicates that four factors extract from 13
factor 1,2,3 and 4 The eigen values for factor 1,2,3 and 4 factors have cumulative percentage upto 56.868% of the
are 3.329 , 1.721, 1.307 and 1.037.Percentage of variance total variance.

TABLE VII ROTATED COMPONENT MATRIX


COMPONENT
No. Factors F1 F2 F3 F4
1 X_9 0.806
2 X_12 0.699
3 X_8 0.569
4 X_13 0.536
5 X_5 0.525
6 X_7 0.869
7 X_6 0.864
8 X_1 0.773
9 X_3 0.707
10 X_2 0.58
11 X_11 0.377
12 X_4 0.712
13 X_10 0.597

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.
Rotation converged in 7 iterations.

Factor 1 is the most important factor which explained Factor 3 is the next factor explained 14.102% of the
17.398% of the variation. The factors as X9 (0.806), X12 variation. The factors as X1 (0.773), X3 (0.707), X2 (0.58)
(0.699), X8 (0.569), X13 (0.536) and X5 (0.525) are highly and X11 (0.377) are highly correlated with each other. The
correlated with each other. The factor named as ‘Awareness factor named as ‘Secured Transactions’. In this factor
of Products among Customers’. In this factor Awareness in Secured Transaction in the bank is an important and has the
the bank is an important and has the highest correlated value highest correlated value of 0.773.
of 0.806.
Factor 4 is the next factor explained 10.621% of the
Factor 2 is the next factor explained 14.747% of the variation. The factors as X4 (0.712) and X10 (0.597) are
variation. The factors as X7 (0.869) and X6 (0.864) are highly correlated with each other. The factor named as
highly correlated with each other. The factor named as ‘Convenience of Services’. In this factor Convenience of
‘Online Payments’. In this factor Online Payments in the Services in the bank is an important and has the highest
bank is an important and has the highest correlated value of correlated value of 0.712.
0.869.

TABLE VIII FACTORS AS THE RESULT OF FACTOR ANALYSIS


Factor No. Factor Renamed
Awareness of Products
Factor 1
among Customers
Factor 2 Online Payments
Factor 3 Secured Transactions
Factor 4 Convenience of Services

VII. CONCLUSION AND RECOMMENDATIONS services to their customers. On the basis of the analysis, it
can be concluded that usage of banking services by rural
Today in India almost every private as well as customer is still not open wide. It is found that only
nationalized banks are providing IT based products and educated, well to do persons and male forms the majority of
services to their customers and co-operative banks have the users. Housewives, small businessmen and persons from
recently entered into the same. Services and Products like unorganized sector feel shy and keep themselves away from
“Anywhere Banking” , “Tele-Banking” , “Internet Banking” banking the banking services. It can be concluded that there
, “Web Banking” ,”E-Banking” , “E-Commerce” , “E- is an urgent need of spreading the awareness among the
Business” etc.. have become the buzzwords of the day and common people. The small business men, the housewives,
the bank are trying to cope with the competition by offering the person’s working in unorganized sector be convinced to
innovative and attractive packaged technology-based

31 AJMS Vol. 4 No. 1 Jan - June 2015


P.Vidyapriya and M.Mohanasundari

use banking and e-banking services. They should feel that REFERENCES
their money is more safe and secure with the bank.
[1] C.R.Kothari(2012),“Research Methodology”,New Age
International Ltd, 2ndedition, New Delhi.
1. The rural customers are more reluctant to join new
[2] Darren George and Paul Mallery (2011),”SPSS for Windows
technologies or methods because they feel that might Step by Step: A Sample Study Guide and Reference”,17.0
contain little risk. Hence, the bank can design the Update,10th edition, New Delhi.
website to address security and trust issues. [3] Comrey, Andrew L.;& Lee, Howard B. (1992),”A first course in
Factor Analysis”, Hillsdale, NJ: Lawrence Erlbaum Associates.
2. The bank can organize seminar and conference to
[4] Sen,Ashish;& Srivastava, Muni.(1997),”Regression Analysis”:
educate the rural customer regarding uses of online Theory, Methods and Applications, Newyork: Springer-Verlag.
banking as well as security and privacy of their [5] Prof.G.C.Beri (2009), “Business Statistics”, Tata McGraw-Hill
accounts. Publishing, 3rd edition, New Delhi.
[6] Clover, Vernon T.,and Balsley Howard L.,(1974),“Business
3. The bank can make their rural customers aware and
Research Methods”, Columbus,O.:Grid,Inc.
educate them regarding the possible risks associated [7] Mckinsey & Co., “India Banking 2010 Towards a High
while going online for banking services, so that the Performing Sector”.
customers will be benefited. [8] Akinci, S., Aksoy, S. and Atılgan, E. (2004), Adoption of
internet banking among sophisticated consumer segments in an
4. Awareness about the technology products can be
advanced developing country, International Journal of Bank
created among the rural customers through certain Marketing, Vol.22 (3), pp. 212-32.
measures such as creating a separate department which
deals with issues related with educational promotion of
technological products.
5. Majority of the rural customers feel that holding of
shares and securities are risky. This feel among
customers should have to be removed by taking
necessary steps.

AJMS Vol. 4 No. 1 Jan - June 2015 32


Asian Journal of Managerial Science
ISSN: 2249-6300 Vol. 4 No. 1, 2015, pp.33-39
© The Research Publication, www.trp.org.in

Emerging Prospective of Indian Livestock: A Study on Poultry Industry


Mohd Mujahed Ali
Assistant Professor of Finance and Accounting, Madanapalle Institute of Technology and Sciences, Angallu,
Madanapalle – 517325, Chittoor Dist., Andhra Pradesh, India
E-Mail: mubarak_mujahed@yahoo.co.in, muhammedmujahedali@gmail.com

Abstract - India’s poultry industry represents a major success II. JOURNEY OF INDIAN POULTRY INDUSTRY
story. Mounting at about 20 per cent annually the domestic
poultry market is currently estimated at about Rs 49,000 crore, The poultry industry in India was mainly a backyard
and production reaching a record 3.2 million tons of broiler venture before the 1960s and has been changed into an
meat and about 2.86 million tonnes of eggs. Layer production
exciting agribusiness with an annual turnover of Rs 49000
growth is estimated at 6 per cent annually. Indian processed
poultry production is not expanding at the rate of the live-bird crores. India is the third largest egg producer in the world
market due to cold chain capacity issues and meat retailing (after China and the United States of America), and the fifth
constraints. The processed poultry market is thus mainly largest broiler producer. Definitely, this remarkable growth
oriented to serving hotel, restaurant and institutional is a result of several factors, such as active developmental
consumers. Thus an emphasis is made to capture the support from the central and state government, research and
potentiality of Poultry industry and its opportunities in Indian development experiences from research institutes, high per
market. capita income growth and international collaboration in
Keywords: Poultry, eggs, layers, potentiality, live-bird private sector. Indian poultry is self-reliant, supported by
extensive and strong genetic base in which the productivity
levels of broilers and layers are equal to those achieved
I.INTRODUCTION elsewhere.
Indian Poultry Industry is 5,000 years old; recently it However, globalization is posing greater challenges by
began to witness remarkable growth from backyard to making the industry globally competitive and viable and
poultry industry. Nearly 70 per cent of the total output of creating enormous potential for growth by changing food
poultry industry is contributed by organised sector and habits and preferences. Poultry meat has outpaced its two
remaining 30 per cent by unorganized sector. There are chief competitors – beef and veal and buffalo meat. Another
about 1000 hatcheries operating in the country. India’s major development in Indian poultry production is the
poultry industry represents a major success story, growing emergence of integration, which is occurring very rapidly,
at about 20 per cent annually and the domestic poultry especially in broiler production, both in southern and
market is currently estimated at about Rs 49,000 crore, with western parts of India.
2012 production reaching a record 3.2 million tons of
broiler meat and about 2.86 million tonnes of eggs. Layer “Driven by rising purchasing power, changing food habits,
production growth is estimated at 6 per cent per annum. contract poultry farming and rapid urbanisation are certain
Indian processed poultry production is not mounting at the key reasons for this constant upswing in this niche poultry
rate of the live-bird market due to cold chain capacity issues sector,” said ASSOCHAM Secretary General D.S. Rawat.”
and meat retailing constraints. The processed poultry market But sporadic bird flu outbreaks in different parts of the
is mainly concentrating in serving hotel, restaurant and country along with lack of storage and processing facilities
institutional consumers. Indian poultry and egg and rising prices of feed stocks including soya meal and
consumption continues to grow up and is expected to double maze have severely hit the poultry exports.
by 2015. While agricultural production was rising at the rate
around 2 per cent per annum over the past two to three Maize accounts for above half of total production cost of
decades, whereas poultry production has been rising at the poultry feed and the poultry sector consumes about 50 per
rate of around 8 per cent per annum, with an annual cent of total maze production in the country. Broiler meat
turnover of US$ 7500 million. Livestock population of India and table eggs account for the domestic poultry market.
is among the highest in the world, it contributes Moreover, the Indian poultry sector has shifted from a live-
approximately 4 % to GDP and 27 % to agricultural GDP. bird market to a chilled/frozen-product market. Nearly three
Poultry Industry is providing nutritional security to the poor million tonnes of broiler meat and about 2.86 million tonnes
and also offering employment to millions of people in rural of eggs are produced annually in India, said the
and urban areas. The future for Indian poultry Industry ASSOCHAM study.
appears to be very favourable. The most conservative
estimates predict a two- to three-fold increase in poultry
production over the next ten or fifteen years.

33 AJMS Vol. 4 No. 1 Jan - June 2015


Mohd Mujahed Ali

Southern India accounts for majority of total poultry The poultry sector has evolved through three distinct
production and consumption in the country. Andhra phase’s namely traditional, semi-commercial and
Pradesh, Kerala, Karnataka, Tamil Nadu and Maharashtra in commercial system.
the west and Punjab and Haryana, in north are key regions a) The traditional system of farming was regarded as
in this aspect. Significant breakthrough in poultry science backyard business, where small-scale farmers
and technology helped in breeding of genetically superior raised the chicken (poultry birds) for self
birds capable of high production. Manufacture of high-tech consumption and occasionally sold the excess at
poultry equipments are also key reasons for growth in egg neighborhood/local markets. Farmers were
and meat production. disappointed with agriculture due to irregular
(uncertain) income, inadequate irrigation facilities,
There are more opportunities for foreign direct erratic climate conditions, limited credit sources
investment (FDI) in the poultry sector in areas like breeding, and increased debt burden. Thus, farmers were
medication, feedstock, vertical integration and processing, unhappy with the agriculture produce for the late
but lack of infrastructure like power and transportation are monsoons, as a result the farmers took active
major turn off in this aspect. Nearly two crore farmers interest in non crop sector (poultry and dairy).
(including agrarian farmers) are employed in poultry Although unorganized poultry farming did not
industry. Currently, there are about 1,000 hatcheries follow any organised form of production, it played
operating across India. an important role in the rural environment, as it
was a source of income as well as employment.
India is attracting attention by setting itself as the world’s The traditional system, though faced several
largest food "factory", currently; its processed food market limitations like unawareness of veterinary services,
is growing at a phenomenal rate. It offers surprising poor quality of inputs, limited/inadequate
opportunities to overseas entrepreneurs who wish to expand infrastructure, high incidence of disease, etc. which
their foreign markets by using India as a sourcing centre for did not enable farmers/cultivators to achieve
regional exports, transfer technology or sign joint ventures. optimum level of productivity.
Indian exporters and entrepreneurs would also largely b) The semi – commercial and commercial system of
benefit from poultry industry. The world poultry-meat farming adopted more sophisticated and
industry is growing fastest among all the meat categories specialized techniques on bulk production and
due to rising concerns for health, safety, convenience and required low levels of labour. By adopting modern
variety, and price competitiveness. Issues related to technology, farmers were able to produce poultry
poultry-meat supply chains include, among others, for specific uses viz: layers for eggs, broiler for
perishability of the product, environmental regulations and meat etc. Further to encourage them, the
globalization. The world poultry-meat industry derives its government offered several incentive schemes. For
significance from the fact that among all the meat instance, incentives were given to players who
categories, poultry meat is the fastest growing. Due to the adopted modern technologies and achieved higher
high consciousness towards protection of the environment, productivity. In addition, many research
poultry farms today are increasingly required to adhere to institutions were setup and other facilities like
the environmental regulations stipulated by the training, veterinary care, insurance schemes and
governments, particularly with regard to water purity, technical support were provided, which helped the
manure removal and dead carcass disposal. growth of commercial farmers/integrators

III. EVOLUTIONARY PHASES OF POULTRY IV. STRUCTURE OF POULTRY PRODUCTION


SECTOR
Poultry farming involves breeding, raising chicks, Layer
Over the years, the poultry industry has undergone farms and Integrators for various purposes.
tremendous changes in its structure and its operations. In
four decades, the industry has grown from a subsistence 1. Breeding farms: They hatch and raise poultry for
activity into an organised, scientifically-oriented and sale to other farms.
technologically-driven industry. The structure of the poultry 2. Broiler farms: They rear chickens for their meat,
industry, however, is not consistent and differ’s region wise procuring day-old chicks and keeping them for
within the country. Broadly, the poultry industry in India around six weeks.
consists of two groups – organised and unorganized sectors. 3. Layer farms: They keep hens to produce eggs.
The organised sector contributes 70 percent and the 4. Integrators keep breeding stock and also operate
remaining 30 percent is contributed by the unorganized hatcheries and commercial broiler farms.
sector. The organised sector uses intensive farming,
sophisticated breeding systems, and modern technology to It is estimated to be roughly one lakh layer farmers and
generate greater productivity. The unorganized sector, on an equal number of broiler farmers. About 70 percent of
the other hand, has no promotion for brands. in fact most of these are small-scale (3000 – 10000 birds) and medium-
them do not sell under any brand. scale (10000 – 50000 birds) farmers.10 Only 10 percent are

AJMS Vol. 4 No. 1 Jan - June 2015 34


Emerging Prospective of Indian Livestock: A Study on Poultry Industry

large-scale farmers with units varying from 50 000 to 4 lakh etc are prominent in India and the meat of this species is
birds. taken as food in this country. To know the growth rate of
these species from 1951 to 2012 the data is collected in the
India is habitation for all species of animals in the form table 1 and been analysed.
world. Various species like cattle, buffaloes, sheep, poultry

TABLE I GROWTH OF LIVESTOCK POPULATION IN INDIA BY SPECIES


(In Millions)
Years Cattle Indices Buffaloes Indices Sheep Indices Poultry Indices
1951 153.3 100 43.4 100 39.1 100 73.5 100
1961 175.6 115 51.2 118 40.2 103 114.2 155
1972 178.3 116 57.4 132 40 102 138.5 188
1982 192.5 126 69.8 161 48.8 125 207.7 283
1992 204.6 134 84.2 194 50.8 130 307.1 418
2003 185.2 121 97.9 226 61.5 157 489 665
2007 199.1 130 105.3 243 71.6 183 648.8 883
Source: Livestock Censuses Department of Animal Husbandry Dairying & Fisheries, Ministry of Agriculture GOI

The table 1 clearly depicts the growth of various species in The health consciousness of the customers has made
seven decades of its journey; cattle have grown from 100 them to switch from red meat to poultry. Thus poultry
Index to 129.88 Indices; buffaloes have grown from 100 to industry has a very good potentiality in the Indian Market.
242.63; sheep has grown from 100 to 183.12 and poultry
has grown from 100 to 882.72 Indices points. It is clearly Livestock in India has a significant contribution in Gross
indicating that poultry industry is the fastest growing domestic product. Cattle, buffaloe, chicken, goat, sheep etc
industry at very high rate. When we compare with other are used as meat in domestic as well as exports to various
cattle, buffaloe and sheep growth rates has nearly reached to other countries across the globe. The production of
200 indices only from 1951 to 2007. livestock of different species is presented in table – 2.

TABLE II PRODUCTION OF LIVESTOCK IN INDIA


(In Tonnes)
Years Cattle Index Buffaloe Index Chicken Index Goat Index Sheep Indx
1961 505680 100 551172 100 68998 100 235000 100 122400 100
1971 640000 127 682824 124 82998 120 244000 104 138000 113
1981 863456 171 847320 154 120150 174 312600 133 158760 130
1991 1041180 206 1099720 200 542700 787 434000 185 184800 151
2001 969753 192 1273880 231 923000 1338 470000 200 223200 182
2010 1086500 215 1462660 265 2300000 3333 586500 250 289200 236
Source: Food and Agriculture organisation of the United Nations FAOSTAT.

Table II indicates the growth of production levels from 1961 grown from 100 to 3333.4 indices. It clearly depicts that the
-2007 of cattle, buffaloe, chicken, goat and sheep meat. other species were only grown to 2.65 times and chicken
Among all the various species chicken has tremendously has grown to 33 times.

TABLE III VALUE OF OUTPUT FROM LIVESTOCK SECTOR


(Rupees in Crores)
Years Poultry Index Mutton Index Beef Index Pork Index
2004-05 12118 100 9969 100 2893 100 1634 100
2005-06 13144 109 10721 108 3113 108 1827 112
2006-07 16176 134 11957 120 3863 134 2131 130
2007-08 18205 150 14855 149 4705 163 2389 146
2008-09 21316 176 16553 166 5072 175 2878 176
2009-10 24759 204 21787 219 6276 217 3228 198
Source: National Accounts Statistics 2011, Central Statistical Organisation GOI

The Table III indicates that the value of output generated growth of 204 per cent. The value of output generated from
from the poultry meat has increased from Rs 12118 crores mutton is Rs 9969 crores in 2004-05 and it raised upto Rs
in 2004-05 to Rs 24,759 crores in 2009-10, registering a 21,789 crores by the end of 2009-10 registering 219 per

35 AJMS Vol. 4 No. 1 Jan - June 2015


Mohd Mujahed Ali

cent. Similarly the value of output generated from beef is Rs clearly indicates the preference of the consumers of Indian
2893 crores in 2004-05 and it increased to 6276 crores by marker.
the end of 2009-10 marking a growth of 217 per cent. The
value of output generated by Pork is 1634 crores in 2004-05 Poultry is highly preferred for meat and by the same time
and increased to 3228 crores by 2009-10 listing a growth of Eggs also have a huge demand due to its rich nutrients.
198 per cent. From the above tables it is understood how poultry meat is
contributing in the GDP at the same time Eggs produced
It is observed that in value of output of Poultry meat is from poultry industry has a high contribution in the GDP of
highest in comparision with other types of Livestock and India. The income generated from the egg sector is
presented in Table 2.4 given below:

TABLE IV VALUE OF OUTPUT FROM EGG SECTOR


(Rupees in Crores)
YEARS EGGS PER CENT
2004-05 5850 100.00
2005-06 6276 107.28
2006-07 7418 126.80
2007-08 8900 152.14
2008-09 10315 176.32
2009-10 12470 213.16
Source: National Accounts Statistics 2011, Central Statistical Organisation GOI

The table IV reveals the income generated from egg sector. operations in south and west India working with 1000
In the year 2004-05 the value of output generated from egg farmers.
sector is 5850c crores. It has followed a increasing trend and
reached 12470 crores by the year ended 2009-10 registering Suguna Poultry Farm Ltd: The Rs 1400-crore Suguna
a 213 per cent growth rate. Poultry Farm produces over 55 lakh broiler chickens
Thus, Egg a bye product of Poultry industry has also through a large network of contract farmers across the
dominating as the contributing factor in the growth of GDP country (except in the Kerala). They are marketed as live
birds, dressed whole birds, and processed and branded parts.
V. MAJOR PLAYERS IN THE POULTRY INDUSTRY It has launched its branded eggs, “Sumegga Pro” sourced
from its own high-tech layer farm in Namakkal. The farm
Venkateshwara Hatcheries (VH): It is one of the leading has a capacity to produce 6000 to 8000 eggs a day. The
company in the poultry industry in India, It has played a company is implementing a Rs 950-crore long-term
major role in distributing the latest techniques in poultry programme for setting up hatcheries and feed mills across
raring and animal health care. It undertakes activities such the country. It is seeking a US$20 million (Rs 100 crore)
as pure-line breeding, supply of grandparent and parent IFC (International Finance Corporation) loan for the
stock, chicken processing, egg processing, feed projects. IFC has already invested Rs 50 crore (US$11
manufacturing, SPF production, poultry vaccine production, million) as equity in Suguna Poultry Farm. Work is under
diagnostic services, human-resource training and production way to build four hatcheries, two in Andhra Pradesh and
of pet foods. It is the first Indian company selling processed one each in Tamil Nadu and Maharashtra. They will be
chickens under the “Venky’s” brand name. It supplies to completed this year (2007). Suguna has a tie-up with Ross
number of large international fast-food companies. The Breeders, United Kingdom, for the supply of grandparent
product range caters to retail as well as institutional markets, chicks. The company is also setting up four feed mills, two
and includes fresh chilled chicken, frozen chicken (whole, in Pradesh, and one each in Karnataka and Maharashtra.
boneless and portions), and several economy products. Suguna is also experimenting with contract farming in
Venky’s Minto mein, an array of ready-to-cook products maize, the main ingredient of chicken feed, in Karnataka. It
(freezer-to-fryer, microwaveable and cold cuts) has wide has tied up with farmers for the cultivation of 16 000 acres
appeal among homemakers. Although, the company has (6 474 hectares) of maize this season. If the experiment is
operations in all parts of India, it is particularly concentrated found to be successful it will be replicated in all other
in the south and west. Despite the liberalized trade regime, maize-growing states in the country. Suguna, which
the conglomerates constitute around 80 per cent of the layer revolutionized the way chickens are grown and marketed in
market and 65 per cent of the broiler market. India, has established itself in the market for a variety of
chicken products. The Indian market is still a live-bird
Godrej Agrovet: It has set up its integrated poultry business market, and Suguna has a very large network for retailing
in 1999. Godrej Agrovet covers the whole spectrum of the live birds. It caters to the high-end market, and branded
poultry industry, from breeding, hatching and rearing of restaurant chains from its high-tech processing plant
broilers to processing and marketing of its branded chicken Supreme Suguna Food Co. ltd, a joint venture with Supreme
“Godrej Real Good Chicken”. It also has contract farming Foods Co. ltd in the Gulf. a small portion of the products are

AJMS Vol. 4 No. 1 Jan - June 2015 36


Emerging Prospective of Indian Livestock: A Study on Poultry Industry

exported. Suguna is a major supplier to McDonald’s in In the broiler sector, there is no national organization that
India. Suguna owns the “Sugies” brand of ready-to-cook look after the producers’ interests. No doubt, there are some
preferred chicken parts sold through high-end retail stores. regional organizations (e.g. the Broiler Growers’
The next stage in chicken marketing would be the Association) have emerged and are trying to organize
introduction of ready-to-eat products such as sausages and farmers, but the broiler marketing is largely in the hands of
nuggets. big traders and commission agents in mandis (wholesale
markets) like Ghazipur in Delhi and Crawford market in
Producers’ Association Mumbai. In general, intermediaries are vital links between
producers and consumers. The margin between the farm
The National Egg Coordination Committee (NECC), which gate price for broilers and the price paid by the consumer is
has a membership of more than 25 000 farmers, is the about 20 to 25 per cent.
largest association of poultry farmers in the world. Its origin
goes back to 1981. At this time, the Indian poultry industry There are also efforts by a southern-based consortium of
was going through an unprecedented crisis. The broiler producers and marketers (the National Broiler
intermediaries controlled the trade and forced the prices Coordination Council) to promote the consumption of
down. As a result, farmers were being paid less than their poultry meat and to stabilize wholesale prices of poultry
production costs. The scenario looked quite miserable. Over meat.
40 per cent of farmers had stopped operations because the
business had become economically unviable where feed VI. GOVERNMENT-SUPPORTED
costs was more than doubled, but egg prices remained static INFRASTRUCTURE
at 35 paisa. Determined to do something, the late Dr B.V.
Rao, along with a group of farmers, started a mass Infrastructure is in place at the government level to
movement and they travelled across the country holding encourage the poultry industry through financing by the
meetings with farmers and traders. Their objective was to National Bank for Agriculture and Rural Development
unite poultry farmers from all over India, and see that they (NABARD). As banks and the National Cooperative
get better prices by eliminating intermediaries from the Development Cooperation (NCDC) have started financing
trade. Thus, NECC was born. Since then, NECC has played small and marginal farmers in villages, poultry insurance
a significant role in the betterment of poultry farmers, and has also been introduced under the Indian Rural
the egg industry in general, through its various programmes Development Programme (IRDP). The General Insurance
such as market intervention, egg promotion campaigns, Corporation (GIC) of India has introduced poultry insurance
price-support operations, and consumer education. which covers the following:
The manifold activities of NECC include price a. Comprehensive cover for poultry farmers;
declaration, deciding a reasonable price for eggs that b. Epidemic poultry insurance through hatcheries; and
guarantee a reasonable return for the farmer, decent margins c. Poultry insurance schemes for parent stock through
for the intermediary and a fair price for the customer, hatcheries.
monitoring the egg stock levels in different production
centres, managing stock levels and regulating the movement VII. AGRICULTURE AND PROCESSED FOOD
of stocks from surplus to deficit regions so as to maintain a PRODUCTS EXPORT DEVELOPMENT
balance between demand and supply. Market intervention AUTHORITY (APEDA)
through Agro Corpex India Ltd, helped in organizing and
uniting poultry farmers across the country, creating a The Agriculture and Processed Food Products Export
dependable distribution network so that eggs can reach Development Authority (APEDA) came into existence in
every household in every village, generating employment by 1986 in order to promote exports of agricultural
encouraging people to take up egg farming and egg trading, commodities and processed food products. Promotion of
promoting exports and develop export markets, making processed farm produce, in turn, benefits farmers through:
available technology and information for increased (a) higher returns for products sold in the export market; and
production of eggs, obtaining governmental support and (b) creation of employment opportunities in rural areas
financial aid from banks for various schemes in rural India. through various kinds of processing activities. The main
The other activities like creating awareness among function of APEDA is to build links between Indian
customers, undertaking egg promotion campaigns to producers and global markets; to achieve this, APEDA
increase the consumption of eggs, conducting market seeks to identify new markets, provide better support
research, identify potential market and develop new systems for exporters and manufacturers, and introduce new
markets; and preparing and submitting position papers to the products into the international market. The main activities
government on issues affecting the poultry industry were of APEDA include the following:
also taken by NECC. 1. Development of a database of products, markets,
NECC is a totally a voluntary body created by farmers, and and services;
runs on cooperative spirit. It makes no profits and subsists 2. Publicity and dissemination of information;
mainly on contributions from its members. Most of today’s 3. Receiving official and business delegation from
egg production comes from NECC members. abroad;

37 AJMS Vol. 4 No. 1 Jan - June 2015


Mohd Mujahed Ali

4. Organization of product promotions abroad and requirements for poultry products are available on DADF’s
arranging visits abroad for official and trade website.
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