A STUDY ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY AT VST MOTORS

A STUDY ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY AT VST MOTORS,

VELLORE.

A Project Report Submitted in partial fulfilment of the requirements for the degree of Bachelor of Commerce (Computer Applications)

[B.Com]

Major Project

Done by

V.Vijayasarathi

05BCC062

Under the Guidance of

Mrs. Shirley Light Inba Jeyakumar B.E, MBA

Lecturer

April 2008

VIT Business School

fostering innovation

VITU N I V E R S I T Y

(Estd. u/s 3 of UGC Act 1956)

Vellore - 632 014, Tamil Nadu, India

CERTIFICATE

This is to certify that the project titled ‘A STUDY ON CUSTOMER SATISFACTION

AND CUSTOMER LOYALTY’ is submitted by Mr. V.Vijayasarathi, 05BCC062 to

VIT Business School, VIT University, Vellore in partial fulfilment of the requirements

for the degree of Bachelor of Commerce (Computer Applications) is a bonafide record of

work carried out by him / her under my supervision. The contents of this project, in full

or in parts have not been submitted in any form to any other institute or university for the

award of any degree or diploma

Programme Manager Faculty Guide

Internal Examiner External Examiner

Declaration

I ,V.Vijayasarathi., a Bonafide student of the VIT Business School, VIT University,

Vellore, hereby declare that the project titled “A STUDY ON CUSTOMER

SATISFACTION AND CUSTOMER LOYALTY AT VST MOTORS, VELLORE” in

partial fulfillment of the requirements of the Degree of Bachelor of Commerce (CA), VIT

University, is my original work.

.

Date:

Place: Vellore

Name & Signature

INTRODUCTION

Tata Motors Limited is India's largest automobile company, with revenues of Rs.

32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial

vehicles in each segment, and the second largest in the passenger vehicles market with

winning products in the compact, midsize car and utility vehicle segments. The

company is the world's fifth largest medium and heavy commercial vehicle

manufacturer, and the world's second largest medium and heavy bus manufacturer.

The company's 22,000 employees are guided by the vision to be "best in the

manner in which we operate best in the products we deliver and best in our value

system and ethics." Tata Motors helps its employees realise their potential through

innovative HR practices. The company's goal is to empower and provide employees

with dynamic career paths in congruence with corporate objectives. All-round potential

development and performance improvement is ensured by regular in-house and external

training. The company has won several awards recognising its training programmes.

Established in 1945, Tata Motors' presence indeed cuts across the length and

breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled

out in 1954. The company's manufacturing base is spread across India - Jamshedpur

(Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow

(Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur

(close to Kolkata in West Bengal) to manufacture the company's small car. The nation-

wide dealership, sales, services and spare parts network comprises over 2,000 touch

points. The company also has a strong auto finance operation, TML Financial Services

Limited, supporting customers to purchase Tata Motors vehicles.

Tata Motors, the first company from India's engineering sector to be listed in the

New York Stock Exchange (September 2004), has also emerged as an international

automobile company. In 2004, it acquired the Daewoo Commercial Vehicles Company,

Korea's second largest truck maker. The rechristened Tata Daewoo Commercial

Vehicles Company has launched several new products in the Korean market, while also

exporting these products to several international markets.

Today two-thirds of heavy commercial vehicle exports out of South Korea are

from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a

reputed Spanish bus and coach manufacturer, with an option to acquire the remaining

stake as well. Hispano's presence is being expanded in other markets. In 2006, it formed

a joint venture with the Brazil-based Marcopolo, a global leader in body-building for

buses and coaches to manufacture fully-built buses and coaches for India and select

international markets. Tata Motors also entered into a joint venture in 2006 with

Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market

the company's pickup vehicles in Thailand. In 2006, Tata Motors and Fiat Auto formed

an industrial joint venture at Ranjangaon (near Pune in Maharashtra, India) to produce

both Fiat and Tata cars and Fiat powertrains for the Indian and overseas markets; Tata

Motors already distributes and markets Fiat branded cars in India. In 2007, Tata Motors

and Fiat Auto entered into an agreement for a Tata license to build a pick-up vehicle

bearing the Fiat nameplate at Fiat Group Automobiles' Plant at Córdoba, Argentina. The

pick-up will be sold in South and Central America and select European markets.

These linkages will further extend Tata Motors' international footprint,

established through exports since 1961. While currently about 18% of its revenues are

from international business, the company's objective is to expand its international

business, both through organic and inorganic growth routes. The company's commercial

and passenger vehicles are already being marketed in several countries in Europe,

Africa, the Middle East, Australia, South East Asia and South Asia. It has assembly

operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal.

The foundation of the company’s growth is a deep understanding of economic

stimuli and customer needs, and the ability to translate them into customer-desired

offerings through leading edge R&D. The R&D establishment includes a team of 1400

scientists and engineers. The company's Engineering Research Centre was established

in 1966, and has facilities in Pune, Jamshedpur and Lucknow. The ERC has enabled

pioneering technologies and products. It was Tata Motors, which developed the first

indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle

and, in 1998, the Tata Indica, India's first fully indigenous passenger car.

Within two years of launch, Tata Indica became India's largest selling car in its

segment. The ERC in Pune, among whose facilities are India's only certified crash-test

facility and hemi-anechoic chamber for testing of noise and vibration, has received

several awards from the Government of India. Some of the more prominent amongst

them are the National Award for Research and Development Efforts in Industry in the

Mechanical Engineering Industries sector in 1999, the National Award for Successful

Commercialisation of Indigenous Technology by an Industrial Concern in 2000, and the

CSIR Diamond Jubilee Technology Award in 2004.

The company set up the Tata Motors European Technical Centre (TMETC) in

2005 in the UK. TMETC is engaged in design engineering and development of

products, supporting Tata Motors' skill sets. Tata Daewoo Commercial Vehicle

Company and Hispano Carrocera also have R&D establishments at Gunsan in South

Korea and Zaragoza in Spain.

The pace of new product development has quickened through an organisation-

wide structured New Product Introduction (NPI) process. The process with its formal

structure for introducing new vehicles in the market, brings in greater discipline in

project execution. The NPI process helped Tata Motors create a new segment, in 2005,

by launching the Tata Ace, India’s first indigenously developed mini-truck. The years to

come will see the introduction of several other innovative vehicles, all rooted in

emerging customer needs. Besides product development, R&D is also focussing on

environment-friendly technologies in emissions and alternative fuels.

Through its subsidiaries, the company is engaged in engineering and automotive

solutions, construction equipment manufacturing, automotive vehicle components

manufacturing and supply chain activities, machine tools and factory automation

solutions, high-precision tooling and plastic and electronic components for automotive

and computer applications, and automotive retailing and service operations.

True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to

Corporate Social Responsibility. It is a signatory to the United Nations Global Compact,

and is engaged in community and social initiatives on labour and environment standards

in compliance with the principles of the Global Compact.

In accordance with this, it plays an active role in community development,

serving rural communities adjacent to its manufacturing locations. With the foundation

of its rich heritage, Tata Motors today is etching a refulgent future.

NEED OF THE STUDY:

1. TO KNOW WHY CUSTOMERS LIKE TATA TRUCKS.

2. TO STUDY ABOUT SATISFACTION LEVEL OF CUSTOMERS IN VELLORE CITY USING TATA TRUCKS.

3. TO KNOW BRAND PREFERENCE ABOUT TATA.

OBJECTIVES:

1. STUDY ABOUT THE LEVEL OF CUSTOMERS SATISFIED USING TATA TRUCKS.

2. TO KNOW WHY THE CUSTOMER HAD FEELINGS OF LOYALTY BY USING TATA TRUCKS.

3. HOW THE CUSTOMER FEELS THE TATA TRUCKS MAKE PROFITABILITY TO THEIR BUSINESS.

PROFILE OF VST MOTORS

The VST Motors has been established and began to function in the Year

1954, Thus, VST was borN due to modernization of Motor vehicle business. They

are exclusive dealers of TATA Motors.

The corporate is a Private body and has to run on sound business principles.

The company has been fully carrying out the role assigned to it and justifying the

confidence of the public by offering absolute security, better spare parts and policy

conditions, cheaper rates, dependable service, intelligent management and favourable

returns to the public at large.

The company’s central office is located at Chennai. There are 5 Branches in

Chennai, Cuddalore, Vellore, Salem and Trichy. At present the company has many

Divisional Offices and 5 Branch Offices spread across

Tamil Nadu.

The initial capital base of Rs.50 Crores was infused by the Company. Today it

has grown to gigantic proportion and is having a net asset base of over Rs.600

Crores. The turn over per month is Rs.250 Crores. It is a matter of pride that this

growth has enabled VST to emerge as the best automobile industry in the state.

The total work force of VST is over 1,800 employees, supported by over 10

Retail and Service Outlets. VST at present has a market share of 18 percent of the

Motor Vehicle business in India.

OBJECTIVES OF VST MOTORS

Spread automobile services widely and in particular to the rural areas and to

the socially and economically backward classes with a view to reaching all

the vehicle owned persons in the country and providing them adequate

financial cover against purchase of new or additional vehicles at a reasonable

cost.

Maximize mobilization of people’s savings by making insurance- linked

Motor vehicle purchase that is adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its

potential stockholders, whose money it holds in trust, without losing sight of

the interest of the community as a whole; the funds to be developed to the

best advantage of the investors as well as the community as a whole, keeping

in view company’s priorities and obligations of attractive return.

Conduct business with utmost economy and with the full realization that the

moneys belong to the stock holders.

Act as trustees of the public in their individual and collective capacities.

Meet the various needs of the community that would arise in the changing

social and economic environment.

Involve all people working in the company to the best of their capability in

furthering the interests of the public at large by providing efficient services

with courtesy.

Promote amongst all employees of the company a sense of participation ,

pride and job satisfaction through discharge of their duties with dedication

towards achievements of company objectives.

VISION OF VST MOTORS

To transform ourselves into a Trans-nationally competitive financial Conglomerate of

significance to societies and the pride of India.

MISSION OF VST MOTORS

To ensure and enhance the quality of life of people through financial security by

providing products and services of aspired attributes with competitive returns, and by

rendering resources for economic development.

VALUES OF VST MOTORS:

Caring and Courtesy

Initiative and Innovation

Integrity and Transparency

Quality and Returns

Participation and Relationship

Trustworthiness and Reliability

CULTURE OF VST MOTORS:

Agility

Adaptability

Collaboration

Commitment

Discipline

Empowerment

Sensitivity

Excellence

ACHIVEMENTS OF VST MOTORS:

Certified by M/S. Tata Motors as “Most Trusted Service Brand in India”.

Rated as “Best IT user.

PEOPLE’S MONEY FOR PEOPLE’S WELFARE:

The VST has been a nation-builder since its formation in1954. True to the

objectives of globalization, the VST has mobilised the funds invested by the people

for the benefit of the community at large. VST has, over the years been investing a

major part of it’s fund primarily in the socially oriented sectors.

The company has developed the funds to the best advantage of the

stockholder as well as community as a whole, true to the spirit of globalization.

BETTER HEALTH, MORE POWER AND HOUSES TO MASSES

The Company has been promoting social welfare through socially oriented

investments. These investments are regulated by the government’s social

interventation from time to time to benefit the people at large by providing basic

amenities like potable water, drainage, housing electrification and transport, besides

infrastructure projects.

The company also helps to boost the industrial growth in the country. The

company’s assistance to state level companies like

VST Service Station Pvt.Ltd

VST Auto Agencies

VST Govt. Finance and Investments Ltd.

by way of subscription to bonds / debentures indirectly from its customers helps

development of small scale and middle scale industries.

VST touches life, enriching the individual by providing financial assistance to

projects associated with power, water supply, transport, housing development,

infrastructure development and industrial growth.

OPERATIONS AND FUNCTIONS:

VST is one of the commercial establishments operating at present in the

Southern parts of India. Today it is widely accepted as one of the most attractive

financial instruments in an individual’s portfolio that provides an assurance of

security with attractive service returns.

Besides material supplies, its services offer, protection, aid to thrift, liquidity

and money when people need it. VST offers a basket of schemes to meet the various

needs of an individual and his family.

1. Basic Plans

2. Term Assured Plans

3. Plans for Sports persons

4. Plans for Women

5. Economic Plans

6. Plans for Hadicapped

7. Euro-clean Plans

8. Sales linked Plans

9. and Other Plans

GROUP SCHEMES

VST offers services under group schemes to various segments such as

employer- employee, professionals, Co-operatives, etc,. It also provides services to

people at sudsidised rates under social schemes. Besides, providing various schemes,

the company also offers group schemes to employers, employees of other

corporations which provide purchase of new or more vehicles. The mail features of

the schemes are low interest rates and simple insurability conditions.

INFORMATION TECHNOLOGY IN VST MOTORS

VST has been one of the pioneers among largest dealer in Tamil Nadu in

introducing Information Technology.VST introduced front office computerization.

Within the next 4 years all the Branch offices of VST shifted to the front-end format.

Now all the Branch Offices has shifted to the single window servicing concept, where

customers can avail themselves of almost all the services in single point.

VARIOUS DEPARTMENTS FUNCTIONING IN VST MOTORS

CENTRAL OFFICE:

1. Maintenance

2. Audit

3. Board Secretariat

4. Corporate Planning

5. Customer Relations Management

6. Engineering

7. Office Services

8. Finance and Accounts

9. HRD and OD

10. Information Technology

11. Inspection

12. Investment

13. Legal and Property Finance

14. Management Development Center

15. Marketing

16. Personnel Scheme

17. Public Relations

18. Corporate Communication

19. Research and Product Development

DIVISIONAL OFFICE

1. Claims

2. Customer Relations Management



5. Legal and property Finance

6. Marketing

7. New Business

8. Office Services

9. Sales

10. Personnel and Industrial Relations

11. Services

12. Secretarial Services

BRANCH OFFICE



3. New Business

4. Office Management and Office Services

5. Services and Claims

6. Sales

PERSONNEL POLICY OF VST MOTORS

OBJECTIVES:

VST is one of the premier service institutions in the state. It is said to be a

place for model employment giving efficient and courteous service to the customers,

promoting participation and consultative culture of working towards the fulfillment

of company objectives and with pride, giving their very best while performing

individual tasks and duties.

Create conditions to perform well and acquire more and more industry based

knowledge and skills.

Prepare them assiduously to assume positions of responsibility in the

company.

GOALS OF HUMAN RESOURCE AND PERSONNEL DEPARTMENT

(a) LONG TERM GOALS OF HRD/OD DEPARTMENT:

Comprehensive HR policies through various stages

Career path training needs

Competency mapping

OD initiative- managing change

(b) PERSONNEL ADMINISTRATION SECTION:

Career path and succession planning

Reward for extraordinary talent

Competency development

Restructuring the organisation

(c) EMPLOYEE RELATIONS:

Strengthening the grievance redressal machinery for effective redressal of

staff grievances. Tereby reducing industrial disputes.

Periodic review of benefits extended to the employees.

Improvement in health care system te\hereby ensuring quality of life.

Increasing participation of work force in management decision process.

STRATEGIC INTIATIVES

Harnessing Human Capital

Unlocking Structural Capital

Levaraging Relationships

Marshalling Information Technology

Mobilizing relavant competencies

PROFILE OF MDC

VST Development Center is a bureau of Indian Standards Certified ISO 9001:2000

management institution. VST MDC is an apex management training centre of VST Motors. Initially it

started the in-house training centre to provide comprehensive zonal training centers, the role of MDC

has changed. The MDC now caters to the training needs of middle and senior level officers of the

company on administrative and marketing side. MDC also conduct specialized sessions for Senior

Managers in conformity with the training policy of the company.

MOTTO OF MANAGEMENT DEVELOPMENT CENTER

Making the organization a learning organization

Integrating with general HR practices and aligning it with overall organisational strategy.

Encouraging employees to maintain their professional edge through training.

OBJECTIVES:

MDC Presently conduct four types of programmes which can be classified into four

categories :

1. Induction Programmes : Induction programmes are aimed at providing managerial and

technical inputs to the newly promoted staff in the various positions of the company.

2. Special Programmers : The basic objectives of the special programmers are to provide

information about importance of strategic initiatives taken by the organization and to

institutionalize these initiatives at all levels through management actions.

3. Workshops : The workshops are basically conducted for Top management in a more

interactive manner to discuss various critical conditions of corporate growth and to design

necessary strategies in the light of corporate vision, mission and goals.

4. Non VST Progammes : The Non-VST Programmes include conducting special programmes

for VST mutual fund, VST housing finance and jointly with other institutions.

PROFILE OF ZONAL TRAINING CENTRE

VST is divided into 5 branches Viz. Chennai, Cuddalore, Vellore, Salem and Trichy. The

Primary motive behind establishment of ZTC’s was all round

development – both behavioural and otherwise for every employee. ZTC conducts specialized

sessions for various employee. ZTC conducts specialized sessions for various employees in

conformity with the training policy of the company.

SALES TRAINING CENTER PROFILE

Sales Training Centres (STC) is established to spread the light of knowledge and wisdom to

equip field force with the wings of marketing skills and techniques.

VST MOTORS, VELLORE

Sales Executive

Junior OfficerSenior Sales Officer

SupervisorAsst. Sales Manager

Back Office Staff

Back Office Staff

Manager

Sales Trainee

Officer

Staff

Worker

Stenographer

Sales Manager Accounts Manager Works Manager

VST HEAD QUARTERS

Board of Directors

Chief Executive

DGM-SparesDGM-ServiceDGM-PersonalDGM-SalesDGM-Finance

Manager

Manager-personnel & IR Sales Manager Works Manager Spares In-charge Accounts Manager

Accounts OfficerAssistantsAsst.Works ManagerAsst.Sales ManagerAsst Manager

Junior OfficerStaffSupervisorSr.Sales OfficerHR Executives

StenographerStaffSales ExecutiveStaff

Sales Trainee

Back Office Staff

Back Office Staff

REVIEW OF LITERATURE

(Bateson and Hoffman 1999).

The time period between service production and consumption is considerably shorter than for products.

Most of the services are produced “on a spot” in an interactive process, in which customers and company

employees meet. Satisfaction with service quality depends on a large number of dimensions - both tangible

and intangible attributes of the product-service offer. The impact of intangible dimensions on consumer

satisfaction is of particular interest at this point

(Mathew W Augustine, 1999)

The quality of interaction between customer and service provider influences customers’ perception of

Service quality. In services, a single employee may affect service efficiency and consequent customer

satisfaction with the service.

(Barnard 2002).

Even customers own involvement and participation in the service delivery affect customer satisfaction. Due

to the differences in production and provision of products and services, customers evaluate quality and

attributes of material goods and services in different ways. This realization has initiated a discussion on the

need for special tools for evaluating more diverse and less tangible services. Responding to the growing

demands for developing specific and reliable ways to measure customer satisfaction in service industries, a

number of studies have been conducted that suggested methodological frameworks for measuring customer

satisfaction.

(Markovic and Horvat 1999).

Studies looked at what measures are used by service companies for measuring customer satisfaction.

Studying how financial sector measures customer satisfaction Edgett and Snow (1997) showed that even

though it is mostly traditional (financial) measures that are being used by the sector, they do not provide a

sufficient basis for innovation in services and multidimensional approaches need to be devised. The two

most often used types of measures in service companies are the increase in the number of customers and

increase in portfolio dollars. However, the most useful types were direct personal interviews with

customers and measure of customer expectations and perceptions. Surprisingly, companies use traditional

quantitative measures, but perceive qualitative measures as the most useful. Authors concluded that

financial institutions are not satisfied that the traditional accounting-type measures are presenting the full

performance picture for new products (Edgett and Snow 1997).

(Hayes 1998), CUSTOMER SATISFACTION SURVEY

Customer satisfaction surveys are a questionnaire based information collection tool to determine the level

of satisfaction with various product or service features. Developing a good questionnaire is the key to

collecting good quality information. Questions must be short and concise, well formulated, easy to interpret

and answer, and facilitate unbiased responses. Survey techniques and questionnaire designs are well known

to research community and multiple guidance from different disciplines exist.

Bobbin Rodregous, 1987, CUSTOMER INTERRCEPTS

Customer intercepts and exit surveys are two types of in-store information collection methods. They are

especially useful in probing customer in their shopping environment. These surveys aim to intercept

consumers in retail places and deliver a short structured questionnaire on their satisfaction with the

delivered service, preferences, or behaviour. The intercept surveys can also incorporate limited product

testing, which provides opportunity to appraise consumer opinion immediately after sampling a product.

Vance Christensen, Customer Satisfaction vs. Customer Loyalty

More executives and management teams are interested in customer satisfaction and loyalty metrics than

ever before. And, more recently, there has been specific interest in customer loyalty metrics and gaining

competitive advantage through loyalty as outlined in any of the several popular books authored by

Frederick F. Reichheld. Interestingly, very few executives and managers understand the critical difference,

requirements for measurement, or value to the business for actively improving both. Although both metrics

have a loose, interdependent relationship, they are two very different metrics with different business

implications.

Customer Satisfaction is VERY DIFFERENT from Customer Loyalty. One is a requirement to do business;

the other is the basis for sustained profitability and growth.

Customer Satisfaction

Customer satisfaction is just that, a customer’s sense of satisfaction. Speaking simply, customer

satisfaction is a measure of expectations being exceeded, met, or not met. That’s it. When thinking of

customer satisfaction measurement, want to know that are meeting or exceeding customer expectations,

want to believe that have satisfied customers and that this will lead to their loyalty and improve revenues.

Unfortunately, customer satisfaction has little to do with customer loyalty.

Spent time with several organizations who had invested considerable time and resources to survey the

satisfaction levels of their customers. The results were in and overall they were very positive aggregate

scores.

Satisfied customers will stay until there is a better alternative offered to them – even if there expectations

are exceeded! This is true for both external and internal customer groups. When ex-customers are surveyed

in exit interviews, they typically reveal that they left because they received a better deal or offer. They did

not feel committed to the prior company. No emotional investment or connection.

On the other hand, loyal customers are a different breed. Loyal customers will stay with a product or

service provider through thick and thin. The mistake make is confusing loyal customers with satisfied

customers. Much research over the years has indicated that there is no connection between customer loyalty

and customer satisfaction because a customer indicates a high level of satisfaction does not mean that they

are or will be loyal. Customer loyalty entails an emotional connection. Have embedded yourself in the heart

and mind of that customer.

Customer Loyalty

The difference between the customer satisfaction and loyalty is all on the emotional level. In order to gain

customer loyalty, need to engage mind and pierce heart.

Differentiate between satisfied customers and loyal customers by eight ways. They are equally relevant to

external customers as they are to internal employee customers.

1. Pricing- Negotiate prices with satisfied customers. Negotiate costs with loyal customers.

2. Payment- Satisfied customer pay at their discretion. Loyal customers pay on time.

3. Referrals. Satisfied customers become referrals of competitors. Loyal customers willingly provide

referrals.

4. Turnover- Generally, experience turnover rates of 15% or higher of satisfied customers. The turnover

rate of loyal customers will be less than 5% and will be for reasons out of control.

5. Competitive data- Your satisfied customers are seeking competitive data. Your loyal customers are

sharing competitive data.

6. Perception- Satisfied customers perceive as a commodity provider. Loyal customers perceive as a

partner.

7. Contract- Need a contract to keep many satisfied customers in place. Have a virtual lifetime contract

with your loyal customers.

8. Difficult times- Satisfied customers will leave. Loyal customers will stay by our side.

People, Products, and Processes Loyalty comes primarily from a customer’s emotional connection and experiences with an organization’s

people. Secondarily, Customer Loyalty is driven by customer experience with products and processes.

A company’s customer satisfaction metrics are a superset of customer perceptions regarding their people,

products, and processes. At aggregate levels, customer satisfaction metrics have no value. Understanding

the drivers of customer satisfaction at granular levels and taking timely action to improve them in a way

customers notice, creates and drives Customer Loyalty and markedly improved customer retention.

There are two important keys in that merit repeating:

1. Understanding drivers of customer satisfaction at granular levels – by agent,

by product, by process or transaction type, and

2. Taking timely action to improve them.

.

RESEARCH METHODOLOGY:

1. PRIMARY SOURCE –

QUESTIONNAIRES – SURVEY WITH TATA TRUCKS

CUSTOMERS.

2. SECONDARY SOURCE –

DETAILS FROM VST MOTORS, VELLORE.

3. OTHER SOURCES –

DETAILS FROM THE SOURCE OF SALES MANAGER,

VST MOTORS, VELLORE.

4. SAMPLING SIZE-

100

5. SAMPLING TECHNIQUE -

Convience

6. TYPE OF STUDY -

Descriptive

DATA ANALYSIS AND INTERPRETATION

TABLE NO-1

PURPOSE OF USING TATA TRUCKS

PURPOSE Frequency PercentCOURIER 4 4.0

PACKERS & MOVERS

27 27.0

OTHERS 69 69.0 Total 100 100.0

Inference:

69 percent of the customers use TATA Trucks for the purpose of Others,

27 percent of the customers use TATA Trucks for the purpose of Packers and Movers,

4 percent of the customers use TATA Trucks for the purpose of Courier.

.

Chart - 1

TABLE NO-2 YOUR TATA TRUCK SHOULD BE

TRUCK SHOULD BE Frequency PercentOWNED 81 81.0

RENTAL 19 19.0

Total 100 100.0

Inference:

81 percent of the customers Own TATA Trucks,

19 percent of the customers Rent TATA Trucks are Rental.

Chart - 2

TABLE NO - 3 MODE OF PURCHASE

MODE OF PURCHASE Frequency PercentFINANCE 18 18.0

NET CASH 47 47.0 EXCHANGE 8 8.0 OTHERS 27 27.0 Total 100 100.0

Inference:

47 percent of the customers purchase TATA Trucks by Net cash,

27 percent of the customers purchase TATA Trucks by Others,

18 percent of the customers purchase TATA Trucks by Finance,

8 percent of the customers purchase TATA Trucks by Exchange.

Chart - 3

TABLE NO - 4HOW YOU KNOW ABOUT THE TATA TRUCKS BY THE SOURCE OF

SOURCE OF Frequency PercentTV ADVERTISEMENT 5 5.0

EXISTING CUSTOMERS 26 26.0 BRAND IMAGE 30 30.0 SCHEMES 24 24.0 DEALERS 15 15.0 Total 100 100.0

Inference:

5 percent of customers are know TATA Trucks by TV Advertisement,0 percent of customers are know TATA Trucks by Internet Search,26 percent of customers are know TATA Trucks by Existing Customers,30 percent of customers are know TATA Trucks by Brand Image,24 percent of customers are know TATA Trucks by Schemes,15 percent of customers are know TATA Trucks by Dealers.

Chart - 4

TABLE NO - 5WHAT’S THE MILEAGE YOU WILL GET BY USING TATA TRUCKS FOR PER LITRE

MILEAGE Frequency Percent3 to 3.5 km 20 20.0

3.5 to 4 km 69 69.0 ABOVE 4 km 11 11.0 Total 100 100.0

Inference:

69 percent of the customers get a mileage of 3.5 to 4 km,

20 percent of the customers get a mileage of 3 to 3.5 km,

11 percent of the customers are get a mileage of more than 4 km.

Chart - 5

TABLE NO - 6HOW LONG PERIOD YOU USE THE TATA TRUCKS

PERIOD Frequency Percent1 YEAR 23 23.0

2 YEARS to 4 YEARS 59 59.0

ABOVE 4 YEARS 18 18.0

Total 100 100.0

Inference:

23 percent of the customers have used TATA trucks for a Year,59 percent of the customers have used TATA trucks period of 2 Years to 4Years,18 percent of the customers are used TATA trucks period of Above 4 Years.

Chart – 6

TABLE NO - 7WHAT IS THE LEVEL OF SATISFACTION BY USING TATA TRUCKS

LEVEL OF SATISFACTION Frequency PercentHIGHLY SATISFIED 45 45.0

SATISFIED 36 36.0 NORMAL 19 19.0 Total 100 100.0

Inference:

45 percent of TATA Trucks customers level of satisfaction are Highly Satisfied,36 percent of TATA Trucks customers level of satisfaction are Satisfied,19 percent of TATA Trucks customers level of satisfaction are Normal,0 percent of TATA Trucks customers level of satisfaction are Dissatisfied,0 percent of TATA Trucks customers level of satisfaction are Highly Dissatisfied.

Chart - 7

TABLE NO - 8IF GIVEN CHANCE TO PURCHASE ANOTHER TRUCK WILL YOU PREFER TATA

TRUCK AGAIN?

PREFER AGAIN Frequency PercentYES 85 85.0

NO 15 15.0 Total 100 100.0

Inference:

85 percent of TATA Trucks customers are prefer to purchase TATA Truck again saying Yes,15 percent of TATA Trucks customers are prefer to purchase TATA Truck again saying No.

Chart - 8

TABLE NO - 9I DON’T GET ANY PROBLEM IN MY TRUCK YET

NO PROBLEM Frequency PercentSTRONGLY AGREE 3 3.0

AGREE 24 24.0 NEITHER AGREE OR DISAGREE 52 52.0

DISAGREE 21 21.0 Total 100 100.0

Inference:

3 percent of TATA Trucks customers Not yet face any Problem they are Strongly Agree,24 percent of TATA Trucks customers Not yet face any Problem they are Agree,52 percent of TATA Trucks customers Not yet face any Problem they are Neither Agree or Disagree,21 percent of TATA Trucks customers Not yet face any Problem they are Disagree,0 percent of TATA Trucks customers Not yet face any Problem they are Strongly Disagree.

Chart - 9

TABLE NO - 10TATA TRUCKS ARE GIVING MORE MILEAGE COMPARED TO OTHER TRUCKS

MORE MILEAGE Frequency PercentSTRONGLY AGREE 10 10.0


DISAGREE 5 5.0 Total 100 100.0

Inference:

10 percent of TATA Trucks customers get good mileage they are Strongly Agree,35 percent of TATA Trucks customers get good mileage they are Agree,50 percent of TATA Trucks customers get good mileage they are Neither Agree or Disagree,5 percent of TATA Trucks customers get good mileage they are Disagree,0 percent of TATA Trucks customers get good mileage they are Strongly Disagree.

Chart - 10

TABLE NO - 11SPARE PARTS ARE EASILY AVAILABLE IN VST MOTORS

Frequency PercentSTRONGLY AGREE 57 57.0

AGREE 37 37.0 NEITHER AGREE OR DISAGREE 5 5.0 DISAGREE 1 1.0 Total 100 100.0

Inference:

57 percent of TATA Trucks customers get Spare Parts easily available in VST Motors they Strongly Agree,37 percent of TATA Trucks customers get Spare Parts easily available in VST Motors they Agree,5 percent of TATA Trucks customers get Spare Parts easily available in VST Motors theyNeither Agree or Disagree,0 percent of TATA Trucks customers get Spare Parts easily available in VST Motors they Disagree,0 percent of TATA Trucks customers get Spare Parts easily available in VST Motors they Strongly Disagree.

Chart - 11

TABLE NO - 12BANK LOANS ARE HELPFUL TO BUY TATA TRUCKS



DISAGREE 21 21.0 STRONGLY DISAGREE 9 9.0 Total 100 100.0

Inference:

5 percent of customers Bank Loans are helpful to buy TATA Trucks they Strongly Agree,9 percent of customers Bank Loans are helpful to buy TATA Trucks they Agree,56 percent of customers Bank Loans are helpful to buy TATA Trucks they Neither Agree or Disagree,21 percent of customers Bank Loans are helpful to buy TATA Trucks they Disagree,9 percent of customers Bank Loans are helpful to buy TATA Trucks they Strongly Disagree

Chart - 12

TABLE NO - 13TATA TRUCKS MAKE ME PROUD WHEN I AM USING


AGREE 22 22.0 NEITHER AGREE OR DISAGREE 67 67.0 DISAGREE 8 8.0 STRONGLY DISAGREE 1 1.0 Total 100 100.0

Inference:

2 percent of customers feel TATA Trucks make proud when use it they Strongly Agree,22 percent of customers feel TATA Trucks make proud when use it they Agree,67 percent of customers feel TATA Trucks make proud when use it they Neither Agree or Disagree,8 percent of customers feel TATA Trucks make proud when use it they Disagree,1percent of customers feel TATA Trucks make proud when use it they Strongly Disagree

Chart - 13

TABLE NO - 14DUE TO MY OWN INTEREST I PURCHASE TATA TRUCKS



Inference:

2 percent of customers buy TATA Trucks as their own interest they Strongly Agree,37 percent of customers buy TATA Trucks as their own interest they Agree,42 percent of customers buy TATA Trucks as their own interest they Neither Agree or Disagree,18 percent of customers buy TATA Trucks as their own interest they Disagree,1 percent of customers buy TATA Trucks as their own interest they Strongly Disagree

Chart - 14

TABLE NO - 15TATA TRUCKS ARE NOT MUCH THAN COSTLY THAN COMPARED TO OTHER

TRUCKS


AGREE 24 24.0 NEITHER AGREE OR DISAGREE 56 56.0 DISAGREE 19 19.0 Total 100 100.0

Inference:

1 percent of customers feel TATA Trucks is not costly than others they Strongly Agree,24 percent of customers feel TATA Trucks is not costly than others they Agree,56 percent of customers feel TATA Trucks is not costly than others they Neither Agree or Disagree,19 percent of customers feel TATA Trucks is not costly than others they Disagree,0 percent of customers feel TATA Trucks is not costly than others they Strongly Disagree

Chart - 15

TABLE NO - 16THE VEHICLE LOOK LIKE MAJESTIC

Frequen

cy PercentSTRONGLY AGREE 19 19.0


Inference:

19 percent of customers feel TATA Trucks is look as Majestic they Strongly Agree,23 percent of customers feel TATA Trucks is look as Majestic they Agree,39 percent of customers feel TATA Trucks is look as Majestic they Neither Agree or Disagree,18 percent of customers feel TATA Trucks is look as Majestic they Disagree,1 percent of customers feel TATA Trucks is look as Majestic they Strongly Disagree

Chart - 16

TABLE NO - 17THE SERVICE OFFERED BY VST MOTORS TO CUSTOMER IS EXCELLENT



Total 100 100.0

Inference:

68 percent of customers feel VST Motors provide best service for their TATA Trucks they Strongly Agree,30 percent of customers feel VST Motors provide best service for their TATA Trucks they Agree,2 percent of customers feel VST Motors provide best service for their TATA Trucks they Neither Agree or Disagree,0 percent of customers feel VST Motors provide best service for their TATA Trucks they Disagree,0 percent of customers feel VST Motors provide best service for their TATA Trucks they Strongly Disagree

Chart - 17

LEVEL OF SATISFACTION:

TABLE NO - 18

MILEAGE

Frequency PercentVERY GOOD 63 63.0

GOOD 36 36.0 NORMAL 1 1.0 Total 100 100.0

Inference:

63 percent of customers feel TATA Trucks give Mileage as Very Good,36 percent of customers feel TATA Trucks give Mileage as Good,1 percent of customers feel TATA Trucks give Mileage as Normal,0 percent of customers feel TATA Trucks give Mileage as Poor,0 percent of customers feel TATA Trucks give Mileage as Very Poor.

Chart - 18

TABLE NO – 19PRICE



Inference:

13 percent of customers feel TATA Trucks Price as Very Good,51 percent of customers feel TATA Trucks Price as Good,36 percent of customers feel TATA Trucks Price as Normal,0 percent of customers feel TATA Trucks Price as Poor,0 percent of customers feel TATA Trucks Price as Very Poor

Chart - 19

TABLE NO – 20LIFE PERIOD



Inference:

12 percent of customers feel TATA Trucks Life Period as Very Good,42 percent of customers feel TATA Trucks Life Period as Good,46 percent of customers feel TATA Trucks Life Period as Normal,0 percent of customers feel TATA Trucks Life Period as Poor,0 percent of customers feel TATA Trucks Life Period as Very Poor

Chart - 20

TABLE NO – 21RESALE VALUE


GOOD 7 7.0 NORMAL 49 49.0 POOR 34 34.0 VERY POOR 7 7.0 Total 100 100.0

Inference:

3 percent of customers feel TATA Trucks have Resale Value as Very Good,7 percent of customers feel TATA Trucks have Resale Value as Good,49 percent of customers feel TATA Trucks have Resale Value as Normal,34 percent of customers feel TATA Trucks have Resale Value as Poor,7 percent of customers feel TATA Trucks have Resale Value as Very Poor

Chart - 21

TABLE NO – 22SAFETY



Inference:

64 percent of customers feel TATA Trucks provide Safety as Very Good,94 percent of customers feel TATA Trucks provide Safety as Good,0 percent of customers feel TATA Trucks provide Safety as Normal,0 percent of customers feel TATA Trucks provide Safety as Poor,0 percent of customers feel TATA Trucks provide Safety as Very Poor

Chart - 22

CHI-SQUARE:

INFERENCE:

Here Chi square value is 0.229 which is above the hypothetical value of 0.05. Hence we can

accept. Ho. There is a relationship between the purpose and the choice of satisfaction. Also from the

contingency asymmetric value of 0.213. We conclude that there is high association between Purpose

and the choice of Satisfaction.

FINDINGS:

Most of the customers use TATA trucks for other purpose like Goods Carrier and Blue Metals.

Most of the customers are have the TATA trucks as their Own Vehicle.

Most of the customers purchase TATA trucks are purchase by full payment.

Most of the customers use their TATA trucks for 2 Years to 4 Years.

Most of the customers get mileage above 3.5 km to 4 km per liter in their TATA Trucks So by that the customers feel makes profitability to their business.

Most of the TATA trucks customers feel Highly Satisfied.

Most of the TATA trucks customers would prefer Yes for if again given a chance to buy TATA truck.

Most of the TATA trucks customers says spare parts are easily available in VST Motors.

Most of the TATA trucks customers say service offered by VST Motors is Excellent.

Most of the TATA trucks customers feel TATA Trucks are safe to drive.

SUGESSTIONS:

All the organisations in India increasingly face challenge of customer satisfaction. Thus, it is

important to gain more customers by satisfy them it leads to customer loyalty.

Customers expect more facilities and features like Digital Speed-O-Meter, Alarm while break

failure, Tubeless tyres for all their truck models.

Since customer got problems in their TATA trucks, to avoid that make full check their

vehicle in first service

To buy TATA trucks customers feel Bank Loans are not useful to purchase, for that dealers

facilitate to the customers and contact the bank make loan to customers in lower rate of

interest during purchase of TATA trucks.

.

And the dealers provide installment facility to the buyers with low installment amount and at

lower rate of interest.

The Company may concentrate on the vehicle while designing, inner and outer look, power

of engine, capacity of the vehicle as customer needs.

For the reason the trucks belong to TATA in that Brand Image and the dealers also prove full

information about the trucks as per customer needs, the customers get better recognization.

BIBLIOGRAPHY

The books used in study are:

MM. SISIR KUMAR BHATTACHARYYA- MARKETING MANAGEMENT

MM. PHILIP KOTLER – PRINCIPLES OF MARKETING

WEBSITES:

1. www.ebscohost.com

2. www.wikipedia.com

3. www.tatamotors.com

4. www.sciencedirect.com

http://www.tatamotors.com/

http://www.ebscohost.com/

CONCLUSION

This study helps to know the Customer Satisfaction and Customer Loyalty in Vellore with

reference to VST Motors in Vellore district. Suitable steps shold be taken to improve the Customer

Satisfaction of the product. TATA gets public opinion and suggestion once in a year to improve

Customer Satisfaction and product sales.

QUESTIONNAIRE

1. TRANSPORT NAME:

2. OWNER NAME:

3. AGE:

4. PURPOSE OF USING TATA TRUCKS

------

5. YOUR TATA TRUCK SHOULD BE

6. MODE OF PURCHASE

7. HOW YOU KNOW ABOUT THE TATA TRUCKS BY THE SOURCE OF

----------------

8. WHAT’S THE MILEAGE YOU WILL GET BY USING TATA TRUCKS FOR PER LITRE

9. HOW LONG PERIOD YOU USE THE TATA TRUCKS

10. WHAT IS THE LEVEL OF SATISFACTION BY USING TATA TRUCKS

11. IF GIVEN CHANCE TO PURCHASE ANOTHER TRUCK WILL YOU PREFER TATA TRUCK AGAIN?

NOYES

HIGHLY DISSATISFIEDDISSATISFIED

NORMALSATISFIEDHIGHLY SATISFIED

Above 4 Years2 Years to 4 Years1 Year

Above 4 km3.5 to 4 km3 to 3.5km

OTHERS(specify)DEALERSSCHEMES

BRAND IMAGEEXISTING CUSTOMERS

INTERNET SEARCHTV ADVERTISEMENT

OTHERSEXCHANGENET CASH

COURIERFINANCE

RENTALOWNED

OTHERS(specify)PACKERS & MOVERSCOURIER

12. ANSWER THE FOLLOWING AS: 1- STRONGLY AGREE 2- AGREE 3- NEITHER AGREE OR DISAGREE 4- DISAGREE 5- STRONGLY DISAGREE

i. I DON’T GET ANY PROBLEM IN MY TRUCK YET [1] [2] [3] [4] [5]

ii. TATA TRUCKS ARE GIVING MORE MILEAGE COMPARED TO OTHER TRUCKS

[1] [2] [3] [4] [5]

iii. SPARE PARTS ARE EASILY AVAILABLE IN VST MOTORS [1] [2] [3] [4] [5]

iv. BANK LOANS ARE HELPFUL TO BUY TATA TRUCKS [1] [2] [3] [4] [5]

v. TATA TRUCKS MAKE ME PROUD WHEN I AM USING [1] [2] [3] [4] [5]

vi. DUE TO MY OWN INTEREST I PURCHASE TATA TRUCKS [1] [2] [3] [4] [5]

vii. TATA TRUCKS ARE NOT MUCH THAN COSTLY THAN COMPARED TO OTHER TRUCKS

[1] [2] [3] [4] [5]

viii. THE VEHICLE LOOK LIKE MAJESTIC [1] [2] [3] [4] [5]

ix. THE SERVICE OFFERED BY VST MOTORS TO CUSTOMER IS EXCELLENT

[1] [2] [3] [4] [5]

13. LEVEL OF SATISFACTION- [√] in appropriate boxes:-

FACTOR/VALUE VERY GOOD GOOD NORMAL POOR VERY POOR

MILEAGEPRICELIFE PERIODRESALE VALUESAFETY

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A STUDY ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY AT VST MOTORS

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