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Final Report on Customer Satisfaction @ Chennai Ford

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    CHAPTER-1

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    INTRODUCTION

    1.1. COMPANY PROFILE :

    Ford Motor Company (NYSE: F) is an American multinational automaker based in Dearborn, Michig

    suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In

    addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Asto M

    in the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India i

    March 2008. In 2010 Ford sold Volvo to Geely Automobile. Ford discontinued the Mercury brand af

    the 2011 model year.

    Ford introduced methods for large-scale manufacturing of cars and large-scale management of an

    industrial workforce using elaborately engineered manufacturing sequences typified by moving assemlines. Henry Ford's methods came to be known around the world as Fordism by 1914.

    Ford is the second largest automaker in the U.S. and the fifth-largest in the world based on annual ve

    sales in 2010. At the end of 2010, Ford was the fifth largest automaker in Europe. Ford is the eighth-

    ranked overall American-based company in the 2010 Fortune 50BNB0 list, based on global revenues

    2009 of $118.3 billion. In 2008, Ford produced 5.532 million automobiles and employed about 213,0

    employees at around 90 plants and facilities worldwide. During the automotive crisis, Ford's worldwi

    unit volume dropped to 4.817 million in 2009. In 2010, Ford earned a net profit of $6.6 billion and

    reduced its debt from $33.6 billion to $14.5 billion lowering interest payments by $1 billion followin

    2009 net profit of $2.7 billion. Starting in 2007, Ford received more initial quality survey awards from

    D. Power and Associates than any other automaker. Five of Ford's vehicles ranked at the top of their

    categories and fourteen vehicles ranked in the top three.

    HISTORY:

    The Ford Motor Company was launched in a converted factory in 1903 with $28,000 in cash from tw

    investors, most notably John and Horace Dodge (who would later found their own car company). Lat

    Ford realized it would be better if he manufactured all of his company's automotive parts himself ins

    of using parts from aftermarket sources which lead to the production of the assembly line 1908. Henr

    first attempt under his name was the Henry Ford Company on November 3, 1901, which became the

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    Cadillac Motor Company on August 22, 1902. In 1908 Ford During its early years, the company prod

    just a few cars a day at its factory on Mack Avenue in Detroit, Michigan. Groups of two or three men

    worked on each car from components made to order by other companies. Henry Ford was 40 years o

    when he founded the Ford Motor Company, which would go on to become one of the world's largest

    most profitable companies, as well as being one to survive the Great Depression. As one of the larges

    family-controlled companies in the world, the Ford Motor Company has been in continuous family c

    for over 100 years.

    CORPORATE GOVERNANCE :

    Members of the board as of early 2011 are: Richard A. Gephardt, Stephen Butler, Ellen

    Marram, Kimberly Casiano, Alan Mulally (President and CEO), Edsel Ford II, Homer

    Neal, William Clay Ford Jr. (Executive Chairman), Jorma Ollila, Irvine Hockaday Jr.,John L. Thornton, and William Clay Ford, Sr. (Director Emeritus).

    The main corporate officers are: Lewis Booth (Executive Vice President, Chairman

    (PAG) and Ford of Europe), Mark Fields (Executive Vice President, President of The

    Americas), Donat Leclair (Executive Vice President and CFO), Mark A. Schulz

    (Executive Vice President, President of International Operations), and Michael E.

    Bannister (Group Vice President; Chairman & CEO Ford Motor Credit).Paul Mascarenas

    (Vice President of Engineering, The Americas Product Development)

    MARKET DEVELOPERS:

    During the mid to late 1990s, Ford sold large numbers of vehicles, in a booming

    American economy with soaring stock market and low fuel prices. With the dawn of the

    new century, legacy healthcare costs, higher fuel prices, and a faltering economy led to

    falling market shares, declining sales, and sliding profit margins. Most of the corporate

    profits came from financing consumer automobile loans through Ford Motor Credit

    Company.

    By 2005, corporate bond rating agencies had downgraded the bonds of both Ford and GM to junk sta

    citing high U.S. health care costs for an aging workforce, soaring gasoline prices, eroding market sha

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    dependence on declining SUV sales for revenues. Profit margins decreased on large vehicles due to

    increased "incentives" (in the form of rebates or low interest financing) to offset declining demand.

    In the face of demand for higher fuel efficiency and falling sales of minivans, Ford moved to introduc

    range of new vehicles, including "Crossover SUVs built on unibody car platforms, rather than more

    on-frame chassis. In developing the hybrid electric powertrain technologies for the Ford Escape Hyb

    SUV, Ford licensed similar Toyota hybrid technologiesto avoid patent infringements. Ford announce

    it will team up with electricity supply company Southern California Edison (SCE) to examine the fut

    plug-in hybrids in terms of how home and vehicle energy systems will work with the electrical grid. U

    the multi-million-dollar, multi-year project, Ford will convert a demonstration fleet of Ford Escape H

    into plug-in hybrids, and SCE will evaluate how the vehicles might interact with the home and the ut

    electrical grid. Some of the vehicles will be evaluated "in typical customer settings", according to For

    In December 2006, the company raised its borrowing capacity to about $25 billion, placing substanti

    corporate assets as collateral to secure the line of credit. Chairman Bill Ford has stated that "bankrupt

    not an option" .In order to control its skyrocketing labor costs (the most expensive in the world), the

    company and the United Auto Workers , representing approximately 46,000 hourly workers in North

    America, agreed to a historic contract settlement in November 2007 giving the company a substantia

    in terms of its ongoing retiree health care costs and other economic issues. The agreement includes th

    establishment of a company-funded, independently run Voluntary Employee Beneficiary Association

    (VEBA) trust to shift the burden of retiree health care from the company's books, thereby improving

    balance sheet. This arrangement took effect on January 1, 2010. As a sign of its currently strong cash

    position, Ford contributed its entire current liability (estimated at approximately US$5.5 Billion as of

    December 31, 2009) to the VEBA in cash, and also pre-paid US$500 Million of its future liabilities t

    fund. The agreement also gives hourly workers the job security they were seeking by having the com

    commit to substantial investments in most of its factories.

    The automaker reported the largest annual loss in company history in 2006 of $12.7 billion, and estim

    that it would not return to profitability until 2009. However, Ford surprised Wall Street in the second

    of 2007 by posting a $750 million profit. Despite the gains, the company finished the year with a

    $2.7 billion loss, largely attributed to finance restructuring at Volvo.

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    On June 2, 2008, Ford sold its Jaguar and Land Rover operations to Tata Motors for $2.3 billion.

    In January 2008, Ford launched a website listing the tenBuilt Ford Tough rules as well as a series of

    webisodes that parodied the TV show COPS.During November 2008, Ford, together with Chrysler a

    General Motors, sought financial aid at Congressional hearings in Washington, D.C. in the face of

    worsening conditions caused by the automotive industry crisis. The three companies presented action

    for the sustainability of the industry. The Detroit based automakers were unsuccessful at obtaining

    assistance through Congressional legislation. GM and Chrysler later received assistance through the

    Executive Branch from the T.A.R.P. funding provisions.On December 19, the cost of credit default s

    insure the debt of Ford was 68 percent the sum insured for five years in addition to annual payments

    percent. That means it costs $6.8 million paid upfront to insure $10 million in debt, in addition to pay

    of $500,000 per year. In January 2009, Ford announced a $14.6 billion loss in the preceding year, ma2008 its worst year in history. Still, the company claimed to have sufficient liquidity to fund its busin

    plans and thus, did not ask for government aid. Through April 2009, Ford's strategy of debt for equity

    exchanges, erased $9.9 B in liabilities (28% of its total), in order to leverage its cash position. These

    yielded Ford a $2.7 billion profit in fiscal year 2009, the company's first full-year profit in four years

    THE WAY FORWARD:

    In the latter half of 2005, Chairman Bill Ford asked newly appointed Ford AmericasDivision President Mark Fields to develop a plan to return the company to profitability.

    Fields previewed the Plan, dubbed The Way Forward, at the December 7, 2005 board

    meeting of the company; and it was unveiled to the public on January 23, 2006. "The

    Way Forward" includes resizing the company to match current market realities, dropping

    some unprofitable and inefficient models, consolidating production lines, and shutting

    fourteen factories and cutting 30,000 jobs. These cutbacks are consistent with Ford's

    roughly 25% decline in U.S. automotive market share since the mid-late 1990s.

    In 2010, Ford earned a net profit of $6.6 billion and reduced its debt from $33.6 billion to

    $14.5 billion lowering interest payments by $1 billion following its 2009 net profit of

    $2.7 billion. In the U.S., the F-Series is the best selling vehicle for 2010. Ford sold

    528,349 F-Series trucks during the year, a 27.7% increase over 2009, out of a total sales

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    of 1.9 million vehicles, or every one out of four vehicles Ford sold. Trucks sales accounts

    for a big slice of Ford's profits, according to USA Today. Ford's realignment also

    includes the sale of its wholly owned subsidiary, Hertz Rent-a-Car to a private equity

    group for $15 billion in cash and debt acquisition. The sale was completed on December

    22, 2005. A 5050 joint venture with Mahindra & Mahindra Limited of India, called

    Mahindra Ford India, Limited (MIFL), ended with Ford buying out Mahindra's remaining

    stake in the company in 2005. Ford had previously upped its stake to 72% in 1998.

    Chairman and Chief Executive Officer Ford also became President of the company in

    April 2006, with the retirement of Jim Padilla. Five months later, in September, he

    stepped down as President and CEO, and naming Alan Mulally as his successor. Bill

    Ford continues as Executive Chairman, along with an executive operating committeemade up of Mulally, Mark Schulz, Lewis Booth, Don Leclair, and Mark Fields.

    The domainford.com attracted at least 11 million visitors annually by 2008 according to

    a Compete.com survey.

    BRANDS :

    Ford Motor Company manufactures automobiles under its own name and as Lincoln in

    the United States. In 1958, Ford introduced a new brand, the Edsel, but poor sales led to

    its discontinuation in 1960. In 1985, the Merkur brand was introduced to market Fords

    from Europe in the United States; it met a similar fate in 1989. The Mercury brand was

    also introduced by Ford in 1939 but poor sales also led to its discontinuation in 2010.

    Ford has major manufacturing operations in Canada, Mexico, the United Kingdom,

    Germany, Turkey, Brazil, Argentina, Australia, the People's Republic of China, and

    several other countries, including South Africa where, following divestment during

    apartheid, it once again has a wholly owned subsidiary. Ford also has a cooperative

    agreement with Russian automaker GAZ.

    Ford acquired British sports car maker Aston Martin in 1989, but sold it on March 12,

    2007,retaining a small minority stake, and bought Volvo Cars of Sweden in 1999,selling

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    it to Zhejiang Geely Holding Group in 2010. In November 2008 it reduced its 33.4%

    controlling interest in Mazda of Japan, to a 13.4% non-controlling interest. On November

    18, 2010, Ford reduced their stake further to just 3%, citing the reduction of ownership

    would allow greater flexibility to pursue growth in emerging markets. Ford and Mazda

    remain strategic partners through joint ventures and exchanges of technological

    information.It shares an American joint venture plant in Flat Rock, Michigan called Auto

    Alliance with Mazda. It has spun off its parts division under the name Visteon.

    Ford sold the United Kingdom-based Jaguar and Land Rover companies and brands to

    Tata Motors of India in March 2008.

    Ford'sFoMoCo parts division sells aftermarket parts under the Motorcraft brand name.

    Ford's non-manufacturing operations include organizations such as automotive finance

    operation Ford Motor Credit Company. Ford also sponsors numerous events and sports

    facilities around the US, most notably Ford Center (now Chesapeake Energy Arena) in

    downtown Oklahoma City and Ford Field in downtown Detroit.

    Overall the Ford Motor Company controls the Ford and Lincoln car brands.

    GLOBAL MARKETS:

    Initially, Ford Motor Company models sold outside the U.S. were essentially versions of

    those sold on the home market, but later on, models specific to Europe were developed

    and sold. Attempts to globalize the model line have often failed, with Europe's Ford

    Mondeo selling poorly in the United States as the Ford Contour, while U.S. models such

    as the Ford Taurus have fared poorly in Japan and Australia, even when produced in right

    hand drie. The small European model Ka, a hit in its home market, did not catch on in

    Japan, as it was not available as an automatic. The Mondeo was dropped by Ford

    Australia, because the segment of the market in which it competes had been in steady

    decline, with buyers preferring the larger local model, the Falcon. One recent exception is

    the European model of the Focus, which has sold strongly on both sides of the Atlantic.

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    In the first five months of 2010, auto sales in the U.S. rose to 4.6 million cars and light

    trucks, an increase of 17% from a year earlier. The rise was mainly caused by the return

    of commercial customers that had all but stopped buying in 2009 during the recession.

    Sales to individual customers at dealerships have increased 13%, while fleet sales have

    jumped 32%. Ford reported that 37% of its sales in May came from fleet sales when it

    announced its sales for the month increased 23%. In the first seven months of 2010,

    vehicle sales of Ford increased 24%, including retail and fleet sales. Fleet sales of Ford

    for the same period rose 35% to 386,000 units while retail sales increase 19%. Fleet sales

    account for 39 percent of Chrysler's sales and 31 percent for GM's.

    Europe

    A British Ford dealership in Wetherby , West Yorkshire.

    At first, Ford in Germany and Ford in Britain built different models from one another

    until the late 1960s, with the Ford Escort and then the Ford Capri being common to both

    companies. Later on, the Ford Taunus and Ford Cortina became identical, produced in

    left hand drivE and right hand drive respectively. Rationalisation of model ranges meant

    that production of many models in the UK switched to elsewhere in Europe, including

    Belgium and Spain as well as Germany. The Ford Sierra replaced the Taunus and Cortina

    in 1982, drawing criticism for its radical aerodynamic styling, which was soon given

    nicknames such as "Jellymould" and "The Salesman's Spaceship."

    Increasingly, the Ford Motor Company has looked to Ford of Europe for its "world cars",

    such as the Mondeo, Focus, and Fiesta, although sales of European-sourced Fords in the

    U.S. have been disappointing. The Focus has been one exception to this, which has

    become America's best selling compact car since its launch in 2000.

    In February 2002, Ford ended car production in the UK. It was the first time in 90 years

    that Ford cars had not been made in Britain, although production of the Transit van

    continues at the company's Southampton facility, engines at Bridgend and Dagenham,

    and transmissions at Halewood. Development of European Ford is broadly split between

    Dunton in Essex (powertrain, Fiesta/Ka, and commercial vehicles) and Cologne (body,

    chassis, electrical, Focus, Mondeo) in Germany. Ford also produced the Thames range of

    commercial vehicles, although the use of this brand name was discontinued circa 1965.

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    Elsewhere in continental Europe, Ford assembles the Mondeo range in Genk (Belgium),

    Fiesta in Valencia (Spain) and Cologne (Germany), Ka in Valencia, and Focus in

    Valencia, Saarlouis (Germany) and Vsevolozhsk (Russia). Transit production is in

    Kocaeli (Turkey), Southampton (UK), and Transit Connect in Kocael.

    Ford also owns a joint-venture production plant in Turkey. Ford-Otosan, established in

    the 1970s, manufactures the Transit Connect compact panel van as well as the "Jumbo"

    and long-wheelbase versions of the full-size Transit. This new production facility was set

    up near Kocaeli in 2002, and its opening marked the end of Transit assembly in Genk.

    Another joint venture plant near Setbalin Portugal, set up in collaboration with

    Volkswagen, formerly assembled the Galaxy people-carrier as well as its sister ships, the

    VW Sharan and SEAT Alhambra. With the introduction of the third generation of the

    Galaxy, Ford has moved the production of the people-carrier to the Genk plant, with

    Volkswagen taking over sole ownership of the Setbal facility.

    In 2008, Ford acquired a majority stake in Automobile Craiova, Romania. Starting 2009,

    Ford Transit Connect will be Ford's first model produced in Craiova, followed, in 2010,

    by low-capacity car engines and a new small class car.

    Ford Europe has broken new ground with a number of relatively futuristic car launches

    over the last 50 years.

    Its 1959 Anglia two-door saloon was one of the most quirky-looking small family cars in

    Europe at the time of its launch, but buyers soon became accustomed to its looks and it

    was hugely popular with British buyers in particular. It was still selling well when

    replaced by the more practical Escort in 1967.

    The third incarnation of the Ford Escort was launched in 1980 and marked the company's

    move from rear-wheel drive saloons to front-wheel drive hatchbacks in the small family

    car sector.

    The fourth generation Escort was produced from 1990 until 2000, although its successor

    the Focus had been on sale since 1998. On its launch, the Focus was arguably the

    most dramatic-looking and fine-handling small family cars on sale, and sold in huge

    volumes right up to the launch of the next generation Focus at the end of 2004.

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    The 1982 Ford Sierra replacement for the long-running and massively popular Cortina

    and Taunus models was a style-setter at the time of its launch. Its ultramodern

    aerodynamic design was a world away from a boxy, sharp-edged Cortina, and it was

    massively popular just about everywhere it was sold. A series of updates kept it looking

    relatively fresh until it was replaced by the front-wheel drive Mondeo at the start of 1993.

    The rise in popularity of small cars during the 1970s saw Ford enter the mini-car market

    in 1976 with its Fiesta hatchback. Most of its production was concentrated at Valencia in

    Spain, and the Fiesta sold in huge figures from the very start. An update in 1983 and the

    launch of an all-new model in 1989 strengthened its position in the small car market.

    Asia Pacific

    Ford dealership in Ho Chi Minh City, Vietnam (August 2005)

    In Australia and New Zealand, the popular Ford Falcon has long been considered the

    average family car and is considerably larger than the Mondeo, Ford's largest car sold in

    Europe. Between 1960 and 1972, the Falcon was based on a U.S. model of the same

    name, but since then has been entirely designed and manufactured in Australia,

    occasionlly being manufactured in New Zealand. Like its General Motors rival, the

    Holden Commodore, the Falcon uses a rear wheel drive layout. High performance

    variants of the Falcon running locally built engines produce up to 362 hp (270 kW). A ute

    (short for "utility", known in the US as pickup truck) version is also available with the

    same range of drivetrains. In addition, Ford Australia sells highly tuned limited-

    production Falcon sedans and utes through its performance car division, Ford

    Performance Vehicles.

    In Australia, the Commodore and Falcon have traditionally outsold all other cars and

    comprise over 20% of the new car market. In New Zealand, Ford was second in market

    share in the first eight months of 2006 with 14.4 per cent.More recently Ford has axed its

    Falcon-based LWB variant of its lineup the Fairlane and LTD ranges, and announced

    that their Geelong engine manufacturing plant may be shut down from 2013. They have

    also announced local manufacturing of the Focus small car starting from 2011.

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    However, with the acquisition of a stake in Japanese manufacturer Mazda in 1979, Ford

    began selling Mazda's Familia and Capella as the Ford Laser and TelstAr, replacing the

    European-sourced Escort and Cortina.

    In Australia, the Laser was one of Ford Australia's most successful models, and was

    manufactured in Ford's Homebush plant from 1981 until the plant's closure in September

    1994. It outsold the Mazda 323, despite being almost identical to it, due to the fact the

    Laser was manufactured in Australia and Ford was perceived as a local brand.

    In New Zealand, the Ford Laser and Telstar were assembled alongside the Mazda 323

    and 626 until 1997, at the Vehicle Assemblers of New Zealand (VANZ) plant in Wir,

    Auckland. The Sierra wagon was also assembled in New Zealand, owing to the

    popularity of station wagons in that market.

    Through its relationship with Mazda, Ford also acquired a stake in South Korean

    manufacturer Kia, which built the (Mazda-based) Ford Festiva from 19881993, and the

    Ford Aspire from 19941997 for export to the United States, but later sold their interest

    to Hyundai (which also manufactured the Ford Cortina until the 1980s). Kia continued to

    market the Aspire as the Kia Avella, later replaced by the Rio and once again sold in the

    US.

    Ford's presence in Asia has traditionally been much smaller, confined to Malaysia,

    Singapore, Hong Kong, the Philippines, and Taiwan, where Ford has had a joint venture

    with Lio Ho since the 1970s. Ford began assembly of cars in Thailand in 1960, but

    withdrew from the country in 1976, and did not return until 1995, when it formed a joint

    venture with Mazda called Auto Alliance.

    Ford India began production in 1998 with its Ford Escort model, which was later

    replaced by locally produced Ford Ikon in 2001. It has since added Fusion, Fiesta,

    Mondeo and Endeavour to its product line.

    On March 9, 2010, Ford Motor Co. launched its first made-for-India compact car.

    Starting at 349,900 ($7,690), the Figo is Ford's first car designed and priced for the mass

    Indian market.

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    On July 28, 2011 Ford India signs MoU with the State of Gujarat to build assembly and

    engine plant in Sanan and will invest approximately US$1 billion on a 460-acre site.

    South America

    In South America, Ford has had to face protectionist government measures in each

    country, with the result that it built different models in different countries, without

    particular regard to rationalization or economy of scale inherent to producing and sharing

    similar vehicles between the nations. In many cases, new vehicles in a country were

    based on those of the other manufacturers it had entered into production agreements with,

    or whose factories it had acquired. For example, the Corcel and Del Rey in Brazil were

    originally based on Renault vehicles.

    In 1987, Ford of Brasil and Ford of Argentina merged its operations with those of

    Volkswagen to form a company called Autolatina, with which it shared models. Sales

    figures and profitability were disappointing, and Autolatina was dissolved in 1995. With

    the advent of Mercosur, the regional common market, Ford was finally able to rationalize

    its product line-ups in those countries. Consequently, the Ford Fiesta and Ford EcoSport

    are only built in Brazil, and the Ford Focus only built in Argentina, with each plant

    exporting in large volumes to the neighboring countries. Models like the Ford Mondeo

    from Europe could now be imported completely built up. Ford of Brazil produces a pick-

    up truck version of the Fiesta, the Courier, which is also produced in South Africa as the

    Ford Bantam in right hand drive versions.

    Africa and Middle East.

    In Africa, Ford's market presence has traditionally been strongest in South Africa and

    neighbouring countries, with only trucks being sold elsewhere on the continent. in South

    Africa began by importing kits from Canada to be assembled at its Port Elizabeth facility.

    Later Ford sourced its models from the UK and Australia, with local versions of the Ford

    Cortina including the XR6, with a 3.0 V6 engine, and a Cortina-based 'bakkie' or pick-up,

    which was exported to the UK. In the mid-1980s Ford merged with a rival company,

    owned by Anglo American, to form the South African Motor Corporation (Samcor).

    Following international condemnation of apartheid, Ford divested from South Africa in

    1988, and sold its stake in Samcor, although it licensed the use of its brand name to the

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    company. Samcor began to assemble Mazdas as well, which affected its product line-up,

    and saw the European Fords like the Escort and Sierra replaced by the Mazda-based

    Laser and Telsta. Ford bought a 45 per cent stake in Samcor following the demise of

    apartheid in 1994, and this later became, once again, a wholly owned subsidiary, the Ford

    Motor Company of Southern Africa. Ford now sells a local sedan version of the Fiesta

    (also built in India and Mexico), and the Focus. The Falcon model from Australia was

    also sold in South Africa, but was dropped in 2003, while the Mondeo, after briefly being

    assembled locally, was dropped in 2005.

    Ford's market presence in the Middle East has traditionally been even smaller, partly due

    to previous Arab boycotts of companies dealing with Israel. Ford and Lincoln vehicles

    are currently marketed in ten countries in the region.Saudi Arabia, Kuwait, and the UAE

    are the biggest markets. Ford also established itself in Egypt in 1926, but faced an uphill

    battle during the 1950s due to the hostile nationalist business environment. Ford's

    distributor in Saudi Arabia announced in February 2003 that it had sold 100,000 Ford and

    Lincoln vehicles since commencing sales in November 1986. Half of the Ford/Lincoln

    vehicles sold in that country were Ford Crown Victorias. In 2004, Ford sold 30,000 units

    in the region, falling far short of General Motors' 88,852 units and Nissan Motors' 75,000

    units.

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    1.2. INDUSTRIAL PROFILE:

    Automobile Industry History

    In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first

    automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled,

    military tractor that made the use of a steam engine. The range of the automobile,

    however, was very brief and at the most, it could only run at a stretch for fifteen minutes.

    In addition, these automobiles were not fit for the roads as the steam engines made them

    very heavy and large, and required ample starting time. Oliver Evans was the first to

    design a steam engine driven automobileintheU.S.

    A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832

    and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson

    were amongst the first to invent more applicable automobiles, making use of non-

    rechargeable electric batteries in 1842. Development of roads made travelling

    comfortable and as a result, the short ranged, electric battery driven automobiles were no

    more the best option for travelling over longer distances.

    The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk

    production of cars. This lead to the development of the industry and it first begun in the

    assembly lines of his car factory. The several methods adopted by Ford, made the new

    invention (that is, the car) popular amongst the rich as well as the masses.

    According the History of Automobile Industry US, dominated the automobile markets

    around the globe with no notable competitors. However, after the end of the Second

    World War in 1945, the Automobile Industry of other technologically advanced nations

    such as Japan and certain European nations gained momentum and within a very short

    period, beginning in the early 1980s, the U.S Automobile Industry was flooded with

    foreign automobile companies, especially those of Japan and Germany.

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    The current trends of the Global Automobile Industry reveal that in the developed

    countries the Automobile Industries are stagnating as a result of the drooping car markets,

    whereas the Automobile Industry in the developing nations, such as, India and Brazil,

    have been consistently registering higher growth rates every passing year for their

    flourishing domestic automobile markets.

    Those who are interested in gathering more information about the Automobile Industry,

    may browse through the following links

    World Automobile Industry

    Automobile Industry Trends

    India Automobile Market India Automobile Industry

    The World Automobile Industry is turned to the developing markets.

    With the developed markets almost saturated, the World Automobile Industry is now

    focused on the developing markets of South America and Asia, and Eastern Europe with

    special emphasis on BRIC (Brazil, Russia, India, and China).

    As per the reports of the International Organization of Motor Vehicle Manufacturers or

    OICA(the association of the companies involved in World Automobile Industry), for the

    fiscal end in 2006, the automobile manufacturers in the U.S. have been overtaken by

    those in Japan, in terms of the total volume of automobile units manufactured worldwide.

    However, the struggling General Motors of the U.S. still remain the worldwide leaders of

    the World Automobile Industry, ahead of the rapidly growing Toyota Motor Corporation

    of Japan, by a substantial margin.

    Measures to be adopted by global leaders of the World Automobile Industry.

    Several significant economic measures are being considered by the major players of the

    World Automobile Industry in order to make a smooth entry into the markets of the

    developing countries, and to make a name for themselves. The effective measures include

    :

    http://www.economywatch.com/world-industries/automobile/world.htmlhttp://www.economywatch.com/world-industries/automobile/trends.htmlhttp://www.economywatch.com/world-industries/automobile/india.htmlhttp://www.economywatch.com/business-and-economy/automobile-industry.htmlhttp://www.economywatch.com/world-industries/automobile/trends.htmlhttp://www.economywatch.com/world-industries/automobile/india.htmlhttp://www.economywatch.com/business-and-economy/automobile-industry.htmlhttp://www.economywatch.com/world-industries/automobile/world.html
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    Reducing the selling prices of the automobiles manufactured in their factories

    Improving the levels of after-sales services to keep customers satisfied

    Opening manufacturing factories in the developing nations, to reduce effective

    costs of production as well as saving shipping charges, and enhancing prompt

    delivery of automobile units.

    Automobile Industry Trends

    In keeping with the Automobile Industry Trends, the leading automobile manufacturers

    are turning to the Asian markets that appear set to grow immensely over the next decade.

    The automobile markets in the U.S., Europe and the Japan have almost matured as a

    result of saturation and appear set to decline through the next decade. In contrast, theautomobile markets spread over the entire Asian continent (with the exception of Japan),

    are constantly increasing in size and will be the destination for most of the globally

    leading automobile manufacturers.

    The Automobile Industry Trends reveal that the emerging markets of the developing

    nations of Asia especially China, and India are backed by their huge population growth

    rate, to add to the growing national economy of these two nations.

    The rapid growth of the national economy of the BRIC countries (including Brazil,

    Russia, India, and China) have enabled a growing section of the population of these

    countries to purchase automobiles. Global surveys conducted recently reveal that within

    the next ten years, these emerging automobile markets will account for nearly a

    whooping 90 percent of the global automobile sales growth. As a result of this, leading

    Automobile manufacturers of the world are setting up factories in the emerging markets,

    in order to serve the potential consumers better as well as reduce manufacturing and

    shipping costs. In addition, these arrangements are enabling the leading global

    automobile manufacturers to compete with the local automobile manufacturers, that were

    flourishing in the absence of quality competition.

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    The prosperity of the national economy is reflected in the rising per capita income of the

    developing nations. Therefore, increasing Gross Domestic Product and per capita income

    have raised the purchasing ability of the population that constitutes these emerging

    markets

    As a growing percentage of the population in the developed nations age rapidly, in

    comparison to the rest of the world, these aging numbers necessitate automobiles to fit

    the physiological change of the world population.

    The Emerging India Automobile Market.

    The India Automobile Market is a promising industrial sector that is growing

    immensely every passing year. The passenger cars are referred to, through the use of the

    word "automobile." The whooping growth experienced by the Indian Automobile Market

    in the last financial year itself, that is the financial year end in February, 2007, was very

    close to a 18 percent over the previous fiscal. This statistical fact is a glittering example

    of the potential of the growing Automobile Industry in India.

    As per the survey conducted by the Society of Indian Automobile Manufacturers, the

    total number of automobiles manufactured by the Automobile Industry in India,

    throughout the financial year 2006-07, was very close to the 15.5 lakh (1.5 million)

    margin. The huge of number of automobiles manufactured by the Automobile Industry in

    India was an enormous growth upon the number of automobiles manufactured during the

    previous fiscal, that ended in 2006.

    The total number of cars that were exported from India were very close to the 2.0 lakh

    (2.0 hundred thousand) margin, an encouraging sign for the Automobile Industry in

    India. The export of cars manufactured in India comprised nearly 13 percent of the total

    number of cars manufactured domestically by the Automobile Industry in India.

    The India Automobile Market looks set to prosper, largely due to the growing market for

    automobiles that is developing in India. In the financial year that ended in February,

    2004, the Indian automobile markets were the fastest growing in the world, with the

    registered growth rate touching nearly 20 percent.

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    The Automobile Industry in India mainly comprises of the small car section, which

    enjoys nearly a 2/3rd market share of the entire market for automobiles in India. In this

    respect, the Indian markets are the largest in the world for small cars, behind Japan.

    The Indian passenger car market which ranks amongst the largest in the world, is poised

    to become even more larger and enter the top five passenger car markets in the world in

    the next decade.

    India Automobile Industry

    Following India's growing openness, the arrival of new and existing models, easy

    availability of finance at relatively low rate of interest and price discounts offered by the

    dealers and manufacturers all have stirred the demand for vehicles and a strong growth of

    the Indian automobile industry.

    The data obtained from ministry of commerce and industry, shows high growth obtained

    since 2001- 02 in automobile production continuing in the first three quarters of the 2004-

    05. Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-

    04 was 15.1 per cent The automobile industry grew at a compound annual growth rate

    (CAGR) of 22 per cent between 1992 and 1997.

    With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry

    exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector,

    the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is

    estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.

    Automobile Dealers Network in India

    In terms of Car dealer networks and authorized service stations, Maruti leads the pack

    with Dealer networks and workshops across the country. The other leading automobile

    manufactures are also trying to cope up and are opening their service stations and dealer

    workshops in all the metros and major cities of the country. Dealers offer varying kind of

    discount of finances who in tern pass it on to the customers in the form of reduced

    interest rates.

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    Major Manufacturers in Automobile Industry

    Maruti Udyog Ltd.

    General Motors India

    Ford India Ltd.

    Eicher Motors

    Bajaj Auto

    Daewoo Motors India

    Hero Motors

    Hindustan Motors

    Hyundai Motor India Ltd.

    Royal Enfield Motors Telco

    TVS Motors

    DC Designs

    Swaraj Mazda Ltd

    Government has liberalized the norms for foreign investment and import of

    technology and that appears to have benefited the automobile sector. The production

    of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is

    likely that the production of such vehicles will exceed 10 million in the next couple of

    years.

    The industry has adopted the global standards and this was manifested in the increasing

    exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports

    registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to

    exceed two and- a-half times the export figure for 2001-02.

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    Automobile Export Numbers

    Category 1998-99 2004-05 (Apr-Dec)

    Passenger Car 25468 121478Multi Utility Vehicles 2654 3892

    Commercial Vehicles 10108 19931

    Two Wheelers 100002 256765

    Three Wheelers 21138 51535

    Percentage Growth -16.6 32.8

    EVEN GROWTH

    Opposing the belief that the growth in mobile industry has catered only to the top

    income-stratum of society, Growth of exports of 32.8 % in the first three quarters of

    2004-05, the fastest growth in volumes has come from commercial vehicles as against

    passenger cars.

    Between 1998-99 and 2003-04, output of commercial vehicles has grown 2.8 times

    compared to the 2.2 times increase in passenger cars. Furthermore, two-wheeler outputcontinues to dominate the volume statistics of the sector. In 2003-04, for every passenger

    car turned out by the sector, there were 7 two-wheelers produced. In the two wheeler

    segment, there is a greater preference for motorcycles followed by scooters, with both

    production and domestic sales of motorcycles increasing at faster rates than for scooters

    in the current and previous years. However, mopeds have registered low or negative

    growth. Export growth rates have been high both for motorcycles and scooters.

    1.3. OVERALL STUDY OF ORGANIZATION:

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    ORGANIZATION STRUCTURE:

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    CHAPTER II

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    2.1STATEMENT OF THE PROBLEM:

    Customer satisfaction greatly affects the organization growth and

    development and there are several factors which effect the satisfaction level of an

    customer. The few factors which measures the satisfaction level of customers areservice, accessibility, facility, brand name, etc.. Measuring customer satisfaction provides

    an indication of how successful the organization is at providing products and/or services

    to the marketplace.

    2.2. OBJECTIVE OF THE STUDY:

    The objective of the project is

    To study and understand the key service parameters using Customer Satisfaction

    and reflect upon the low performing areas:

    To study about the customer satisfaction on the services provided by the dealers.

    To study the opinion of the customers regarding the availability and cost of spare

    parts.

    To study the opinion of the owners of cars regarding its features like mileage,

    price etc.

    To study the effect of advertisement on the customers to promote the product.

    To study the customer satisfaction with usage of their cars.

    2.3. LIMITATION OF THE STUDY:

    The survey is subjected to the bias and prejudices of the respondents. Hence

    100% accuracy cant be assured.

    The research was carried out in a short span of time, where in the researcher could

    not widen the study. The study could not be generalized due to the fact that researcher adapted

    personal interview method.

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    2.4 NEED FOR STUDY:

    Increasing competition, ever growing market, easy availability of the finances and

    increasing population of young executives, with huge disposable incomes, over the past

    few years has substantially increased the sales in the automobile industry. Also, the

    competition among the dealers of the products has increased with each trying to

    maximize their customer base. This makes it imperative for the dealers to provide the

    best of the services and exceed the customer expectations to achieve customer delight and

    loyalty.

    The study tries to understand the key service parameters and reflect upon the

    dysfunctional areas, thus providing the dealer with an insight into the level of customer

    satisfaction and changing trends of the customer expectations.

    2.5 SCOPE OF THE PROJECT

    The research measures the experiences of customers.

    Defines and analyses the experiences based on key deliverables.

    Gains insights into Customer expectations.

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    CHAPTER III

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    3.1. REVIEW OF LITERATURE:

    Concept Identification-

    As organizations become increasingly customer focused and driven by demand, the need

    to gain customer loyalty and retain their loyalty is critical. Customer satisfaction is the

    most effective way to achieve customer loyalty. Customer satisfaction and customer

    loyalty share many similar traits. Customer value is the customers perception of the ratio

    of benefits to what he or she gives to obtain those benefits. The customer Value Triad is a

    framework used to understand what it is that customers want. The framework consists of

    three parts:

    (1) perceived product quality,

    (2) value-based pricing, and

    (3) perceived service quality.

    Customers are satisfied, when value meets or exceeds expectations. If their expectations

    of value are not met, there is no chance of satisfying them. Figuring out what the

    customers want, however, is a difficult and complex process. To be able to create and

    deliver customer value is important to understand its components. On the most basic

    level, value from a customers perspective is the ratio of benefits to the risks being taken

    while buying the product.

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    CUSTOMER SATISFACTION

    AN INSIGHT :

    According to Harold E Edmondson Customer Satisfaction seems to appear in print

    more frequently than any other catch phrase used to describe a new found magic for

    industrial success. Before we proceed in to the study of the dynamics of Customer

    Satisfaction it is important to know about, who a customer is and what satisfaction really

    means.

    Who really is a Customer?

    The question of defining who your customers are seems fairly easy particularly if you

    have segmented your market properly and understand who you are trying to

    satisfy. However subtlety that frequently goes undetected by many firms is that is that

    customer set can be divided into two parts, the apparent customer and the user. The

    apparent customer is the person or group of people who decide what product to buy and

    basically have control over the purse strings. The user is a person or group who

    physically uses the product or is the direct recipient of a service.

    What does satisfaction really mean?

    As in defining customer above, defining satisfaction also appears simple. However as

    with customer there is a subtlety that needs addressing. Satisfaction by most definitions

    simply means meeting the customers requirement.

    Customer satisfaction is a concept that more and more companies are putting at the heartof their strategy, but for this to be successful theyre needs to be clarity about, what

    customer satisfaction means and what needs to happen to drive improvement. Without

    this, there is a risk that customer satisfaction becomes little more than a good intention,

    with confused objectives failing to address the real issues for customers, one helpful way

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    to look at the problem is to rephrase the objectives: set the sights on helping the

    customers meet their goals.

    Customer satisfaction can be defined in many different ways. Finding the right way for a

    company depends on understanding your customer and on having a clear vision of the

    role that customer satisfaction is to play in the strategy. For example,

    a focus on customer satisfaction can work alongside existing segmentations to support

    revenue generation from high value customers or it can be a company-wide objective

    rooted in the brand values. For the former, it may be sufficient to focus on improving

    customer service, but for the latter a broader definition of customer satisfaction is

    necessary, closer akin to corporate reputation.

    Whatever the strategy for customer satisfaction, it must at least include getting the basics

    right. Failing to achieve this can destroy the reputation as well as losing valuable

    customers. Every customer, regardless of their economic worth to the business, has the

    power to influence positively or negatively a companys reputation. Once the

    objectives for the customer satisfaction strategy are defined there are a number of steps

    we can take to make sure the focus on customer satisfaction is effective.

    Building a company around Customer Satisfaction :

    With the increase in customers demands and competition it has become a lot more

    important to base the entire company on customer service. When doing this one must first

    realize that every member of an organization plays an active role in customer

    service. This includes both external customers and internal customers within a company.

    Customer focused organizations focus both on customer satisfaction and

    profit. Achieving customer satisfaction generates the profit. In these organizations top

    management has frequent contacts with external customers. The top management uses

    consultative, participative, and supportive management styles to get through to the

    customer. The staff focuses all of its attention on satisfying the customers

    needs. However, the managements job is to provide the staff with support necessary to

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    achieve these goals. The other department and staff in the organization that do not have

    direct contact with the external customers deal exclusively with internal customer

    satisfaction.

    The Influence of the salesperson in Customer Satisfaction-

    In an article titled, The influence of salesperson selling behavior on customer

    satisfaction with products, Brent G.Goff and James S. Boles examine the effects of non-

    product related construct on customer satisfaction with major retail purchases such as

    automobiles. The article states that salespersons selling orientation- customer orientation

    (SOCO) will affect not only consumer satisfaction with the salesperson and dealer, but

    also indirectly, satisfaction with the product or manufacturer.

    In the perspectives of both the retailer and the manufacturer, customer satisfaction

    represents an important issue because it relates to several desirable outcomes. Customer

    satisfaction leads to future purchases, and repeated purchases of the same product from

    the same source. In other words, it helps a firm retain its present customers and build

    loyalty. By helping a buyer obtain product information and providing guidelines about

    what should be expected during the buying process and use of a product, a salesperson

    may influence customer expectations concerning the product. Thereby this may reducethe likelihood of dissatisfaction ( Grewal and Sharma, 1991). A successful salesperson

    tailors to the needs of each individual customer. By being customer-oriented, a

    salesperson is likely to identify with needs of the customer, enabling the salesperson to

    match his or her presentation to those requirements of the customer.

    Internal Marketing how it affects Customer Satisfaction

    Successful companies make every effort to ensure satisfaction to their customer by

    focusing all organizational efforts of the company on providing superior customer

    service. By doing this these companies hope to retain their existing customers and attract

    new ones. Only angle of customer satisfaction commonly overlooked is the internal

    aspect.

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    The internal customer or employee plays a vital role in achieving customer satisfaction

    and loyalty. Some firms do not understand that the treatment of internal customers

    becomes the external customers perception of the company. A firms employees or other

    departments within the organization make up its internal customers. Their job

    performance affects the firms ability to deliver superior product and customer service

    (Boone and Kurtz, 1999). When a firms employees are happy at work, their overall

    attitude and performance towards the customer enhances tremendously. Internal

    marketing helps members or employees of an organization understand and fulfill their

    roles in implementing its marketing strategy. Internal marketing not only keeps

    employees happy, it also shows them how their actions affect the firms ability to achieve

    customer satisfaction.

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    CHAPTER IV

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    4.1. RESEARCH METHODOLOGY:

    The type of research employed for this study was descriptive research .The descriptive

    study, the researchers discover causes even when they cannot control the variables .The

    tools used in descriptive research are survey methods of all kinds ,including comparative

    and co relational methods .It is both qualitative and quantitative in nature .It deals with

    determining frequency with which something occurs or how two variables vary

    together .Descriptive research Design is generally concern with narration of facts with

    specific prediction of concern group or situation .It describes as it exists at present.

    4.2. RESEARCH DESIGN:

    Descriptive type of research design is chosen for this research study.

    4.3. SAMPLING TECHNIQUE:

    The researcher has used Non-probability sampling in which convenience

    sampling is used.

    4.4. DETERMINATION OF SAMPLE SIZE:

    The study sample constitutes 50 respondents constituting in the research area.

    4.5. SOURCE OF DATA:

    Most of the data collected by the researcher is primary data and secondary data.

    Primary data is collected through personal interview, where the researcher and the

    respondent operate face to face and secondary data through the data and documentsobtained from the organization.

    The researcher has used a structured questionnaire as a research instrument tool

    which consists of open ended questions, multiple choice and dichotomous questions in

    order to get data. Thus, Questionnaire is the data collection instrument used in the study.

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    All the questions in the questionnaire are organized in such a way that obtain all the

    relevant information that is needed for the study.

    CHAPTER V

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    DATA ANALYSIS AND DATA INTERPRETATION

    5.1 TOOLS USED FOR ANALYSIS:

    The statistical tools used for analyzing the data collected are Chi- square test

    and correlation by using the SPSS software.

    5.2.ANALYSIS AND INTERPRETATION:

    Chi-Square Test

    Null Hypothesis: Observed and expected frequency have no change

    Frequencies

    Test drive offered

    Observed N Expected N Residual

    Yes 36 25.0 11.0

    No 14 25.0 -11.0

    Total 50

    Test Statistics

    Test drive offered

    Chi-Square 9.680a

    df 1

    Asymp. Sig. .002

    a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell

    frequency is 25.0.

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    Inference:

    From the above output the chisquare value is 9.680 and the Asymp. Sig. (P) is .002 which

    is less than the 0.05 therefore reject null hypothesis.

    Chi-Square TestNull Hypothesis: Observed and expected frequency have no change

    Frequencies

    Customer Experience

    Observed N Expected N Residual

    Satisfied 23 25.0 -2.0

    Not satisfied 27 25.0 2.0

    Total 50

    Test Statistics

    Customer Experience

    Chi-Square .320a

    df 1

    Asymp. Sig. .572

    a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is

    25.0.

    Inference:

    From the above output the chisquare value is .320 and the Asymp. Sig. (P) is .572 which

    is greater than the 0.05 therefore accept null hypothesis.

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    Correlations

    Satisfaction over

    usuage Age

    Satisfaction over usuage Pearson Correlation 1 -.064

    Sig. (2-tailed) .658

    N 50 50

    Age Pearson Correlation -.064 1

    Sig. (2-tailed) .658

    N 50 50

    Inference:

    The output shows that there is negative correlation between the two variables since the

    correlation coefficient is -.064. So if increase in one variable will simultaneously

    decrease the other variable.

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    Correlations

    Occupation

    Satisfaction over

    after sale service

    Occupation Pearson Correlation 1 .172

    Sig. (2-tailed) .233

    N 50 50

    Satisfaction over after sale

    service

    Pearson Correlation .172 1

    Sig. (2-tailed) .233

    N 50 50

    Inference:

    The output shows that there is positive correlation between the two variables since the

    correlation coefficient is 0.172. So if increase in one variable will simultaneously

    increase the other variable.

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    Chi-Square Test

    Null Hypothesis: Observed and expected frequency have no change

    Frequencies

    people thought

    Observed N Expected N Residual

    Excellent 28 25.0 3.0

    good 22 25.0 -3.0

    Total 50

    Test Statistics

    people thought

    Chi-Square .720a

    df 1

    Asymp. Sig. .396

    a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency

    is 25.0.

    Inference:

    From the above output the chisquare value is .720 and the Asymp. Sig. (P) is .396 which

    is greater than the 0.05 therefore accept null hypothesis.

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    Chi-Square TestNull Hypothesis: Observed and expected frequency have no change

    Frequencies

    Delivery on time

    Observed N Expected N Residual

    YES 34 25.0 9.0

    No 16 25.0 -9.0

    Total 50

    Test Statistics

    Delivery on time

    Chi-Square 6.480a

    df 1

    Asymp. Sig. .011

    a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is

    25.0.

    Inference:

    From the above output the chisquare value is 6.480 and the Asymp. Sig. (P) is .011 which

    is less than the 0.05 therefore reject null hypothesis.

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    Correlations

    Age Responsiveness

    Age Pearson Correlation 1 .125

    Sig. (2-tailed) .388

    N 50 50

    Responsiveness Pearson Correlation .125 1

    Sig. (2-tailed) .388

    N 50 50

    Inference:

    The output shows that there is positive correlation between the two variables since the

    correlation coefficient is 0.125. So if increase in one variable will simultaneously

    increase the other variable.

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    Chi-Square TestNull Hypothesis: Observed and expected frequency have no change

    Frequencies

    Recommendation

    Observed N Expected N Residual

    YES 23 25.0 -2.0

    No 27 25.0 2.0

    Total 50

    Test Statistics

    Recommendation

    Chi-Square .320a

    Df 1

    Asymp. Sig. .572

    a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 25.0.

    Inference:

    From the above output the chisquare value is .320 and the Asymp. Sig. (P) is .572 which

    is greater than the 0.05 therefore accept null hypothesis.

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    Chi-Square TestNull Hypothesis: Observed and expected frequency have no change

    Frequencies

    Best feature in ford car

    Observed N Expected N Residual

    price 45 25.0 20.0

    Style 5 25.0 -20.0

    Total 50

    Test Statistics

    Best feature in ford car

    Chi-Square 32.000a

    Df 1

    Asymp. Sig. .000

    a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is

    25.0.

    Inference:

    From the above output the chisquare value is 32.000 and the Asymp. Sig. (P) is .000

    which is less than the 0.05 therefore reject null hypothesis.

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    Correlations

    Occupation

    Satisfaction of

    mileage

    Occupation Pearson Correlation 1 -.024

    Sig. (2-tailed) .867

    N 50 50

    Satisfaction of mileage Pearson Correlation -.024 1

    Sig. (2-tailed) .867

    N 50 50

    Inference:

    The output shows that there is negative correlation between the two variables since the

    correlation coefficient is -.024. So if increase in one variable will simultaneously

    decrease the other variable.

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    Correlations

    Age Feel

    Age Pearson Correlation 1 -.049

    Sig. (2-tailed) .738

    N 50 50

    Feel Pearson Correlation -.049 1

    Sig. (2-tailed) .738

    N 50 50

    Inference:

    The output shows that there is negative correlation between the two variables since the

    correlation coefficient is -.049. So if increase in one variable will simultaneously

    decrease the other variable.

    Chi-Square Test

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    Null Hypothesis: Observed and expected frequency have no change

    Frequencies

    Model of the car

    Observed N Expected N Residual

    fiesta new 13 12.5 .5

    fiesta classic 11 12.5 -1.5

    figo 19 12.5 6.5

    endeavour 7 12.5 -5.5

    Total 50

    Test Statistics

    Model of the car

    Chi-Square 6.000a

    Df 3

    Asymp. Sig. .112

    a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell

    frequency is 12.5.

    Inference:

    From the above output the chisquare value is 6.000 and the Asymp. Sig. (P) is .112 which

    is greater than the 0.05 therefore accept null hypothesis.

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    CHAPTER: VI

    6.1. FINDINGS

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    CHENNAI FORD enjoys a high patronage from its customers.

    Most of the customers had a good experience of shopping at CHENNAIFORD.

    The satisfaction levels can also measured with the level of

    recommendations to friends and associates; It is evident that more than 80%

    customers are satisfied with the service offered at CHENNAI FORD.

    The probability that the customers would repeat that purchase at the sameshowroom is high, which is a good sign.

    The sale satisfaction index of CHENNAI FORD showroom is 8.4 on

    scale of ten, which is exceptionally good, the showroom should persist on

    high levels of commitment to maintain the good image it has created.

    In the interview it was found that the customers are happy about the training

    programs under taken by the showroom, which train the customers to negotiate

    minor breakdowns comfortably.

    It has been observed that 25% of customers have reported a slack in the delivery

    process.

    .

    6.2. SUGGESTIONS

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    The overall sales satisfaction index from the study reveals that the company is

    performing very well and customers buying are much satisfied with the service

    given to them.

    The only couple problem noticed are:

    Some of the customers have complained about the slack in

    the delivery process and timings. Therefore, this is the area

    which I recommend to the showroom to focus a little bit

    more. It needs to improve its delivery process and time. Need

    to become little quick and fast.

    Some of the customers have also complained about the after

    purchase services provided by the showroom. Even though

    complaints are minor, the showroom needs to resolve the

    customer after purchase service issues in order to achieve

    customer satisfaction .

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    BIBLIOGRAPHY

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    BIBLIOGRAPHY

    Books:Principles of marketing: KOTLER ARMSTRONG.

    Marketing Management: PHILIP KOTLER.

    (Analysis, Planning Implementation and Control)

    Services Marketing : TATA Mc GRAW HILL.

    Marketing Research: G.C. BERI.

    Research Methodology: KOTHARI. C.R.

    Websites:

    http://www.google.com

    http://www.citehr.com

    http://www.coolavenues.com

    http://www.google.com/http://www.citehr.com/http://www.coolavenues.com/http://www.google.com/http://www.citehr.com/http://www.coolavenues.com/
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    APPENDIX

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    CUSTOMER SATISFACTION INDEX

    Details:

    VehicleNo: _______________________________________________________

    Model: ___________________________________________________________

    CustomerName: __________________________________________________

    TelephoneNo: ______________________Mobile:________________________

    Date:__________________ Customer signature: ________________________

    1. Age group

    a) 20-30 b) 30-40 c) 40-50 d) Above 50

    2. Occupation?

    a) Employee b) business c) NRI d) others

    3. Which model of ford car do you own?

    a) fiesta new b) fiesta classic c) figo d) endeavour

    4. which feature is the best one in ford car?

    a) price b) style c) mileage d) quality e) mileage & quality

    e) mileage & style

    1. How do you feel when you drive ford car?

    a) Good B) better c) best d) Poor

    6. Are you satisfied with your vehicle mileage?

    a) Yes b) No

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    7. will you recommend ford product to anybody?

    a) Yes b) No

    1. what do you think about Chennai fords customer service?a) Excellent b) Good c) Better d) Poor

    9. How do you feel about companys response towards customers?

    a) Excellent b) Good c) Better d) Poor

    10. did you receive the product on delivery time?

    a) Yes b) No

    11. are you satisfied companys after sales service?

    a) Satisfied b) not satisfied

    12. How do you feel the experience at the showroom?

    a) Satisfied b) not satisfied

    13. were you offered test drive?

    a) Yes b) No

    14. Are you satisfy with their usage of the car?

    a) fully satisfied b) just satisfied c) not satisfied


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