You are on page 1of 7

SYNOPSIS REPORT ON

THE CUSTOMER SATISFACTIONONSERVICE

IN THE HERO HONDA COMPANY

1.INTRODUCTION TO CUSTOMER SATISFACTION:


Customer satisfaction, a term frequently used in marketing, is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."

PURPOSE:
Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty.
Customer satisfaction data are among the most frequently collected indicators of market
perceptions. Their principal use is twofold[1]:

1. Within organizations, the collection, analysis and dissemination of these data send a
message about the importance of tending to customers and ensuring that they have a
positive experience with the company’s goods and services

2. Although sales or market share can indicate how well a firm is performing currently,
satisfaction is an indicator of how likely it is that the firm’s customers will make further
purchases in the future.

American customer satisfaction index is the scientific method to measurer customer


satisfaction. Academic research has shown that the national ACSI score is a strong predictor
of Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal
Consumption Expenditure (PCE) growth. On the microeconomic level, academic studies
have shown that ACSI data is related to a firm's financial performance in terms of return on
investment (ROI), sales, long-term firm value (Tobin's q), cash flow cash flow volatility,
human capitalperformance, portfolio returns, debt financing, risk, and consumer spending.[12]
Increasing ACSI scores has been shown to predict loyalty, word-of-mouth recommendations,
and purchase behavior .

CUSTOMERT SERVICE:
Customer service is the provision of service to customers before, during and after a purchase.

According to Turban et al. “Customer service is a series of activities designed to enhance the
level of customer satisfaction – that is, the feeling that a product or service has met the customer
expectation." Its importance varies by product, industry and customer; defective or broken
merchandise can be exchanged, often only with a receipt and within a specified time frame.

Customer definition:
The services A customer (also known as a client, buyer, or purchaser) is usually used to refer
to a current or potential buyer or user of the productss of an individual or organizationn, called
the supplier, seller, or vendor. This is typically through purchasing or renting goods or services.
However, in certain contexts, the term customer also includes by extension any entity that uses
or experiences of another.

2. OBJECTIVES:
1.To check the response level of the service centre.

2.To check how far they are maintaining the customer relationship.

3. Tocheck the level of satisfaction of customers.

4.To know the various factors motivated to go to HeroHonda service centre.

5.To know about service schemes and activities(warranties ).

6. To know the customer rating of the service facility.

7.To know the opinion of the customer about the company and the service.

8. To know that how far that the company providing quality service.

3.SCOPE OF THE SERVICE SECTOR:

India’s services sector has matured considerably during the last few years and has been globally
recognized for its high growth and development. This sector has been growing at an annual
growth rate of about 28% during the last 5 years. Services exports amounted to a meager US$
8.9 billion in 1997 but over the years services exports havegrown substantially. There has been
rapid growth in the services exports from the year 2002. The exports have grown up from US $
19.1 billion to US $ 73 billion in 2006. Presently services sector account for about 55%of India’s
GDP.

India's service sector contributes more than 55 per cent of GDP, making it the most formidable
component of the country's economy. An extrapolation of Reserve Bank data by India Brand
Equity Foundation in fact shows that service exports could topple merchandise exports in the
medium term. The Government of India is taking up most care to uplift this potential sector
which contributes heavily in India’s Foreign exchange.

DECISION ABOUT CHOOSING –


1)EXPORT MARKET visa-vis Local Market
2)Services Sector exportvisa-vis – Merchandise export

First of all one should evaluate whether to go for export or concentrate in local market. If an
Individual or a company is planning to explore themselves and encash opportunities in the
International market. It should decide that in which direction and area to establish itself. Like it
has to decide whether it should establish itself in the export of goods or services. Export of goods
means physical exports of merchandise and all non-physical export comes under export of
services. So, it is advisable that critical research may be done by the individual or the company
whether to export goods or services.

Searching a buyer for your services or product is very critical job as no one is waiting for you to
come and buy your products or services.Some major means adopted these days are for searching
buyers through internet, participating in Trade Fairs abroad, participating in BSM’s, interacting
regularly with Trade and Commerce organizations abroad or having membership of a council as
they are the gateway of country’s trade. one should also enroll himself with some trade
magazines which regularly publish trade and tender enquiries. Apart from that, the most effective
means these days are hosting one’s profile and product/services on the Internet.

4.METHODOLOGY

After defining aims and objectives, the next stage of marketing study needs the
development of an efficient planned for gathering the needed information.

“To collect the information, marketing research is taken in to consideration. Marketing research
has been defined as the systematic gathering and analyzing of data about problems relating to
marketing and services from producer to the consumer.”

-American Marketing Association

DATA SOURCES

There are two sources of collection data

• Primary source
• Secondary source

In the survey being both primary and secondary source of data have been used in
the collection of relevant information.

PRIMARY SOURCE:

Primary source is the data collected specifically by or for the data users. It is gathered for a
specific purpose or for a specific research report. A questionnaire is used as tool for the
systematic collection of relevant information.

SECONDARY SOURCE:

Secondary source data is the data that is collected from the already existing sources
like the company’s website and company’s catalogues.

The company profile gives a detailed report on history and the various products
being manufactured by it.

APPROACH SURVEY:

Survey is the best suited for the descriptive research they are under to learn about
people’s knowledge, beliefs, preferences and satisfaction.

QUESTIONAIRE:

This consists of a questions presented to respondents of their answers. Questionnaire needs to be


carefully developed and tested before using it for data collection.

FORM OF INSTRUMENT CLOSED ENDED QUESTIONS:


The form used here is ended questions with all the possible answer to make the respondents
feel comfortable.

Opened –ended questions are useful in knowing the ideas of the respondents in their
onwards.

TYPES OF QUESTIONS ASKED

Questions offering two answer choices.

Multiple choices: a questions offering three or more choices.

RATING SCALE:

A scale rates some attributes form excellent to poor . Sample : the sample size selected is 49

Sampling procedure:

The procedure is sample random sampling. Every member of the population has
an equal chance of selection.

CONTACT METHOD:

Personal interview The contact method used is personal interview the respondents were
asked the questions in questionnaire and were explained in full detail.

RESEARCH METHODOLOGY

Method of sampling used for the survey was random sampling method this was adopted because
of flexibility.

The survey was done through questionnaire .the sample size selected was 100.Questionnaires
were distributed to the respondents living in different areas of Kurnool city. The questionnaire
consists of about 15 simple easy and simple questions.
The first section of questionnaire was prepared to know the personal details of respondents like
name page occupation and so on.The second of questionnaire is related to actual study asking the
respondents about details of the dairy milk they have used.

The data regarding the company was collected through the secondary source i.e., the company’s
website.

5.INDUSTRY PROFILE:
“Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles
Ltd. A joint venture between the Hero Group and Honda Motor Company was established in
1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group
both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its
stake in the venture to the Munjal family.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel
economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it -
Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-
digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years
(1984–2010) has come from the Japanese counterpart Honda.

Hero Honda has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at
Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per
year.[7] Hero Honda has a large sales and service network with over 3,000 dealerships and service
points across India. Hero Honda has a customer loyalty program since 2000called the Hero
Honda Passport Program.

HERO HONDA COMPANY PROFILE:

The joint venture between India's Hero Group and Honda Motor Company, Japan has not only
created the world's single largest two wheeler company but also one of the most successful joint
ventures worldwide.

During the 80s, Hero Honda became the first company in India to prove that it was possible to drive
a vehicle without polluting the roads. The company introduced new generation motorcycles that set
industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it'
campaign captured the imagination of commuters across India, and Hero Honda sold millions of
bikes purely on the commitment of increased mileage.

Over 20 million Hero Honda two wheelers tread Indian roads today. These are almost as many as
the number of people in Finland, Ireland and Sweden put together!

Hero Honda has consistently grown at double digits since inception; and today, every second
motorcycle sold in the country is a Hero Honda.Every 30 seconds, someone in India buys Hero
Honda's top -selling motorcycle – Splendor. This festive season, the company sold half a million
two wheelers i n a single month—a feat unparalleled in global automotive history.

Hero Honda bikes currently roll out from its three globally benchmarked manufacturing facilities.
Two of these are based at Diarrhea and Gorgon in Haryana and the third state of the art
manufacturing facility was inaugurated at Hardware, Astrakhan in April this year. These plants
together are capable of producing out 4.4 million units per year.

Hero Honda's extensive sales and service network now spans over 3000 customer touch points.
These comprise a mix of dealerships, service and spare points, spare parts stockiest and authorized
representatives of dealers located across different geographies.

Hero Honda values its relationship with customers. Its unique CRM initiative - Hero Honda Passport
Program, one of the largest programs of this kind in the world, has over 3 million members on its
roster. The program has not only helped Hero Honda understand its customers and deliver value at
different price points, but has also created a loyal community of brand ambassadors.

Having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is
constantly working towards consolidating its position in the market place.

The company believes that changing demographic profile of India, increasing urbanization and the
empowerment of rural India will add millions of new families to the economic mainstream.

This would provide the growth ballast that would sustain Hero Honda in the years to come.industry
to the next level. We'll do all it takes to reach there.'' products with cutting edge technology from
Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level
of customer satisfaction, and this goes a long way towards reinforcing its leadership status.