Customer Satisfaction of Toyota
Customer Satisfaction of Toyota
Customer Satisfaction of Toyota
INTRODUCTION
RATIONALE OF 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
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.
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
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:
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 growths 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.
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
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.
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 larger and enter the top five passenger car markets in the
world in the next decade.
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.
In terms of Car dealer networks and authorized service stations, Maruti Suzuki leads
the pack with Dealer networks and workshops across the country. The other leading
automobile manufacturers 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 rat
Toyota Motors
Maruti Udyog Ltd.
General Motors India
Ford India Ltd.
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.
Automobile Export Numbers
OBJECTIVES OF THE STUDY
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 customers regarding its features like mileage, price etc.
To study the effect of advertisement on the customers.
RESEARCH METHODOLOGY
The Research Methodology used was Convenience Sampling. As time and cost was
the factor so, the researcher used Convenience Sampling because Convenience
samples provide vital contributions to individual case records, qualitative summaries
and etc.
Data Sources:
The data is collected directly from each customer who visited the showroom.
The biggest advantage to a convenience sample is that we get a pretty good unbiased
sample fairly easily. The biggest downside is that we may not get all elements of the
population that are of interest.
Review Of literature
CUSTOMER SATISFACTION
Concept Identification
CUSTOMER SATISFACTION
AN INSIGHT
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.
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.
With the increase in customer’s 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.
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 reduce the likelihood of dissatisfaction (Grewal and
Sharma, 1991). .
A Harvard Business Review article outlines the internal process required to drive
growth and increase profitability. The article describes the ways in which service
quality contributes to success, outlining the steps in the “Service-profit chain”:
Profitability / Growth
Customer Loyalty
Customer Satisfaction
Value
Employee Productivity
Employee Loyalty
Internal Quality
Leadership
Limitations of the study
Due to constraint of time only city of Lucknow is selected and so it cannot claim to
be a comprehensive study of the population.
The sample size is restricted to 100 respondents.
CHAPTER-2
PROFILE OF A
COMPANY
About Toyota Kirloskar Motor Pvt Ltd
Toyota Motor Corporation entered India in 1997 in a joint venture with the Kirloskar
Group.
TKMPL's current plant at Bidadi, Karnataka is spread across 432 acres and has a
capacity of 80,000 vehicles per annum.
TKMPL's second manufacturing plant on the outskirts of Bangalore, Karnataka has a
capacity of 70,000 vehicles per annum. Both plants have a combined capacity of
150,000 vehicles per annum.
On 16 March 2011, it announced that it was increasing production to 210,000
vehicles per annum due to increase in demand for its models especially
the Etios and Fortuner.
With effect from June 1, 2012, Toyota Kirloskar Motor will be increasing the prices
of Etios diesel and Innova by 1 per cent and Fortuner and Etios Liva diesel by 0.5 per
cent. The price hike is on account of the weakening of Rupee. Toyota announced that
Etios sedan and the Liva hatchback has posted sales of over one lakh units, hence
Toyota is all set for giving its production a big boost.Toyota Kirloskar Motor (TKM)
plans to hike the production capacity of its Etios series models by 75% by early
2013. Toyota Kirloskar Motors would launch its motor racing series in 3 cities in
India next year.
Vision
“To be the most respected and successful enterprise, delight customers with a wide
range of products and solutions in the automobile industry with the best people and
best technology.”
Mission
Mission of Toyota is to provide safe & sound journey. Toyota is developing various
new technologies from the perspective of energy saving and diversifying energy
sources. Environment has been first and most important issue in priorities of Toyota
and working toward creating a prosperous society and clean world.
Awards
25
20
20-30years
15 30-40years
40-50years
10
above 50
5
INTERPRETATION:
From the above table shows that the respondents of the age group of years above 50 i.e. 22,
the next group is 40-50 years i.e.25, the remaining age groups are 30-40 and 20-30 years
having 25 and 9 respectively.
2) Occupation
35
30
25 employee
20 business
15 NRI
10 others
5
0
INTERPRETATION:
From the above table shows that the respondents of the occupation are mostly employees
numbered 35, business people numbering 20, NRI’s 15 and others 8 people.
3) Which model of Toyota car do you own?
Altis
D, 12
Innova
B, 18
INTERPRETATION:-
The following graph shows the number of cars in the total of 75 persons Liva Cross is
owned by 35 people, and Innova owned by 18 and Fortuner owned by 10 people and
Altis by 12 people.
4) Which feature is the best one in Hyundai car?
20 16 18
18
16 14
14 13
12
10 8 Series1
8
6 4
4
2
0
Mileage Price Brand Style Engine Mileage
& Style
A B C D E F
INTERPRETATION:-
The following graph shows the number of what features you consider while you
purchase in the total persons Mileage by 14, and Price by 4 and Brand by 16, Style by
18, Engine by 13 and Mileage and Style by 8.
5) How do you feel when you drive Toyota car?
40
35
30
good
25
better
20
best
15
poor
10
5
0
INTERPRETATION:
From the above table shows that the respondents of the experience of people while driving
Toyota cars is good i.e. 25, the next group is better i.e.20, the remaining people who feel best
is 40 and others who feel poor experience are 5 respectively.
6) Are you satisfied with your vehicle’s mileage?
B No 14
No
B, 14
A Yes
B No
Yes
A, 61
INTERPRETATION:-
The following graph shows the number of people who satisfied with mileage of the
vehicle in the total respondent’s response given by persons Yes by 61 and No by 14.
7) Will you recommend Toyota product to anybody?
A Yes 45
B No 30
No
B, 30
Yes
A, 45
INTERPRETATION-
The following graph shows the number of people who recommend Toyota cars in
the total persons yes by 45 and No by 30.
8) What do you think about Toyota’s customer service?
40
35
30
25
20
15
10
5
0
excellent 40
good 20
better 30
poor 5
INTERPRETATION:
From the above table shows that the respondents of the people about Toyota’s customer
service is excellent i.e. 40, the next group is good i.e.20, the remaining people who feel better
is 30 and others who feel poor experience are 5 respectively.
9) How do you feel about company’s response towards customers?
D Poor 7
C Better 10
B Excellent 38
A Good 17
0 5 10 15 20 25 30 35 40
Series1
INTERPRETATION:-
The following graph shows the number of response of customers towards the products
from the total number of 100 people good are good 17, Excellent 38, better 10 and
poor are 7.
10. Did you receive the product on delivery time?
A Yes 55
B No 20
No
B, 20
A Yes
B No
Yes
A, 55
INTERPRETATION:-
the following graph shows the number of customers who receive the product on
delivery time is yes by 55 customers and no by 20 customers.
11. Are you satisfied with companies after sales service?
A Satisfied 75
B Not satisfied 5
80
70
60
50
satisfied
40
not satisfied
30
20
10
0
INTERPRETATION:
The number of customers who satisfy/not satisfied with the after sales service of the
company from a number of 100 customers is satisfied 75 and not satisfied 5.
12. How do you feel the experience at show room?
A Satisfied
Series1
B Not satisfied
INTERPRETATION:-
The following graph shows the consumer’s experience at show room the number of
customers who satisfy is 55 and who does not satisfy are 29
CHAPTER-4
FINDINGS AND
RECOMMENDATIONS
FINDINGS
More than 80% of the customers had a good experience of shopping at Galaxy
Toyota.
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 Toyota.
The sale satisfaction index of Galaxy Toyota 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. The industry SSI
(2003) is 104 out of 126 according to J D Power Asia pacific. And Hyundai
scores 105 out of 125.
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.
This is the only area of concern that has emerged from the city.
Toyota is one of the ten largest companies in the world.
It is currently as profitable as all the other car companies combined and
became the largest car manufacturer in 2007.
Enhanced the development of environmentally friendly products
Developed a new product line-up which responds to the customers’
requirements in each region
Friendly vehicles, such as hybrid vehicles
Strengthen product line-up in
Resource-rich and emerging co
RECOMMENDATIONS:
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.
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 the complaints are minor, the
showroom needs to resolve the customer after purchase service issues in order
to achieve the customer satisfaction.
ANNEXURE
Details:
Model: ___________________________________________________________
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
_______________________________________________________________
Attachment – 2
Experience at Showroom
EXECELLE POOR
NT 5%
20%
SATISFACT GOOD
ORY 60%
15%
GOOD
SATISFACTORY
EXECELLENT
POOR
Attachment – 3
Recommendation to Friends
DEFINITEL MAY NOT
Y NOT 8%
7%
DEFINITEL
Y MAY
25% 60%
MAY
DEFINITELY
DEFINITELY NOT
MAY NOT
Attachment - 4
REPEAT PURCHASE
DEFINITEL
Y
DEFINITEL 16%
Y NOT
5%
MIGHT
14% PROBABL
Y
65%
PROBABLY
MIGHT
DEFINITELY NOT
DEFINITELY
BIBLIOGRAPHY
Websites:
http://galaxytoyota.com/facilities.html#
http://en.wikipedia.org/wiki/Toyota_Kirloskar_Motor
http://www.priceindia.org/auto/wp-content/uploads/2014/15/Toyota-price-list.jpg
http://www.toyotabharat.com/inen/about/toyota_awards.aspx
http://www.toyota-global.com/
http://www.toyota.com/awards.html
http://www.toyota-global.com