Research Report of College
Research Report of College
Research Report of College
PROJECT TITLE:-
“A Study on Analysis of Customer Satisfaction in metal industries ”
1) To study the customer satisfaction level for the company Kohinoor Mech. Elect & Engineering Works.
2) To understand various problems faced by customer of Kohinoor Mech. Elect & Engineering Works.
3) To understand the awareness about the company’s products among the customers.
b) SECONDARY OBJECTIVES
3. This survey helps the company to find its loophole in overall services which is provided by them.
5. It is helpful to understand and analyze the factors that influence the customers.
THEORETICAL BACKGROUND
5 Steps of Customer’s Buying Process:-
The Customer Buying Process (also called a Buying Decision Process) describes the process your
customer goes through before they buy your product. Understanding your customer’s buying
process is not only very important for your Salespeople, it will also enable you to align your sales
strategy accordingly. The process has been interpreted by many scholars over the years; however, the
five stages framework remains a good way to evaluate the customer’s buying process. John Dewey first
introduced the following five stages in 1910:
1. Problem/Need Recognition: This is often identified as the first and most important step in the
Customer’s Decision Process. A purchase cannot take place without the recognition of the need. The
need may have been triggered by internal stimuli (such as hunger or thirst) or external stimuli (such
as advertising or word of mouth).
2. Information Search: Having recognised a problem or need, the next step a customer may take is
the Information Search stage, in order to find out what they feel is the best solution. This is the
buyer’s effort to search internal and external business environments, in order to identify and evaluate
information sources related to the central buying decision. Your customer may rely on print,
visual, online media or word of mouth for obtaining information.
3. Evaluation of Alternatives As you might expect, customers will evaluate different products or
brands at this stage on the basis of alternative product attributes – those which have the ability to
deliver the benefits the customer is seeking. A factor that heavily influences this stage is the
customer’s attitude. Involvement is another factor that influences the evaluation process.
4. Purchase Decision: The penultimate stage is where the purchase takes place. Philip Kotler
(2009) states that the final purchase decision may be ‘disrupted’ by two factors: negative feedback from
other customers and the level of motivation to accept the feedback. For example, having gone
through the previous three stages, a customer chooses to buy a new telescope. However, because his
very good friend, a keen astronomer, gives him negative feedback, he will then be bound to change
his preference. Furthermore, the decision may be disrupted due to unforeseen situations such as a
sudden job loss or relocation.
5. Post-Purchase Behaviour: In brief, customers will compare products with their previous
expectations and will be either satisfied or dissatisfied. Therefore, these stages are critical in
retaining customers. This can greatly affect the decision process for similar purchases from the
same company in the future, having a knock-on effect at the Information Search stage and
Evaluation of Alternatives stage. If your customer is satisfied, this will result in brand loyalty, and
the Information Search and Evaluation of Alternative stages will often be fast-tracked or skipped
altogether.
Customer satisfaction:-Is a term frequently used in marketing. It is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported experience
with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."In a survey of
nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction
metric very useful in managing and monitoring their businesses.
1. "Within organizations, the collection, analysis and dissemination of these data send a message about the
importance of tending to customers and ensuring that they have a positive experience with the company's
goods and services.
2. "Although sales or market share can indicate how well a firm is performing currently, satisfaction is
perhaps the best indicator of how likely it is that the firm’s customers will make further purchases
in the future. Much research has focused on the relationship between customer satisfaction and
retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the
extremes."
On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become return
customers and might even evangelize for the firm. (A second important metric related to
satisfaction is willingness to recommend. This metric is defined as "The percentage of surveyed
customers who indicate that they would recommend a brand to friends." When a customer is satisfied
with a product, he or she might recommend it to friends, relatives and colleagues. This can be a
powerful marketing advantage.) "Individuals who rate their satisfaction level as '1,' by contrast, are
unlikely to return. Further, they can hurt the firm by making negative comments about it to prospective.
CUSTOMER DELIGHT:-
Customer delight is surprising a customer by exceeding his/her expectations and thus creating a
positive emotional reaction. This emotional reaction leads to Word of Mouth. Customer Delight
directly affects sales and profitability of a company as it helps to distinguish the company and its
products and services from the competition. In the past customer satisfaction has been seen as a key
performance indicator. Customer satisfaction measures the extent to which the expectations of a
customer are met (compared to expectations being exceeded). However, it has been discovered
that mere customer satisfaction does not create brand loyalty nor does it encourage positive word of
mouth.
Customer Delight can be created by the product itself, by accompanied standard services and by
interaction with people at the front line. The interaction is the greatest source of opportunities to
create delight as it can be personalized and tailored to the specific needs and wishes of the customer.
During contacts with touch points in the company, more than just customer service can be delivered.
The person at the front line can surprise by showing a sincere personal interest in the customer,
offer small attentions that might please or find a solution specific to particular needs. Those front line
employees are able to develop a relationship between the customer and the brand. Elements in
creating motivated staff are: recruiting the right people, motivating them continuously and leading them
in a clear way.
PURPOSE OF CUSTOMER DELIGHT:-
First, make customers loyal. As described by Sewell, that finding new customers costs 4 to 9 times
more time and money than reselling to an existing client. It is thus commercially intelligent to
retain as many clients as possible.
A second objective is to have customers that are more profitable. Average delighted customers spend
more with less hassle. As can be seen with the list of Van Setten, when all other elements are
correct, clients accord less importance to price (as long as their perception of price remains
reasonable).
The last objective of Customer Delight is to have clients talk positively about your product, brand or
shop, the so-called Word of Mouth. In a world of well informed customers, 92% of customers consider
word of mouth as the most reliable source of information. Delighted clients are a valuable source of
advertisement for your company.
Consumption is the possession and/or use of goods and services and the benefits they deliver.
Consumption situation
Physical context: time and place of consumption
Social context: the presence of others
Consumption episode: the set of items belonging to the same event and occurring in temporal
proximity
Consumption system: a bundle of goods and services that are consumed over time in
multiple episodes
The level of satisfaction or dissatisfaction we experience depends upon how well the product’s
performance meets our expectations.
A finite time period of possession is necessary to determine satisfaction.
Satisfaction is not easily measured because:
It means different things to different people
The level of satisfaction can change over time
Satisfaction can change when consumer needs and preferences change
Satisfaction includes a social dimension (the experience of others may add or subtract from our
own satisfaction)
Product experiences can be classified into three types based on the degree to which consumer
expectations are fulfilled (confirmation) or not (expectancy disconfirmation):
Simple confirmation: the purchase performs as expected (satisfaction)
Positive disconfirmation: when performance is better than expected (much higher satisfaction)
Negative disconfirmation: when the purchase falls short of expectations (dissatisfaction)
If the negative disparity is wide it may lead to the contrast effect (poor performance is magnified by
the customers).
PRODUCT
In case of services, the ‘product’ is intangible, heterogeneous and perishable. Moreover, its production
and consumption are inseparable. Hence, there is scope for customizing the offering as per
customer requirements and the actual customer encounter therefore assumes particular significance.
However, too much customization would compromise the standard delivery of the service and
adversely affect its quality. Hence particular care has to be taken in designing the service offering.
PRICING
Pricing of services is tougher than pricing of goods. While the latter can be priced easily by taking
into account the raw material costs, in case of services attendant costs - such as labor and overhead
costs - also need to be factored in. The final price for the service is then arrived at by including a
mark up for an adequate profit margin.
PLACE
Since service delivery is concurrent with its production and cannot be stored or transported, the
location of the service product assumes importance. Service providers have to give special
thought to where the service would be provided. Thus, a fine dine restaurant is better
located in a busy, upscale market as against on the outskirts of a city. Similarly, a holiday resort is
better situated in the countryside away from the rush and noise of a city.
PROMOTION
Since a service offering can be easily replicated promotion becomes crucial in differentiating a
service offering in the mind of the customer. Thus, service providers offering identical services such
as airlines or banks and insurance companies invest heavily in advertising their services. This is crucial
in attracting customers in a segment where the services providers have nearly identical offerings.
The final three elements of the services marketing mix - people, process and physical evidence -
are unique to the marketing of services.
PEOPLE
People are a defining factor in a service delivery process, since a service is inseparable from the
person providing it. Thus, a restaurant is known as much for its food as for the service provided by its
staff. The same is true of banks and department stores. Consequently, customer service training for
staff has become a top priority for many organizations today.
PROCESS
The process of service delivery is crucial since it ensures that the same standard of service is repeatedly
delivered to the customers. Therefore, most companies have a service blueprint which provides
the details of the service delivery process, often going down to even defining the service script and the
greeting phrases to be used by the service staff.
PHYSICAL EVIDENCE
Since services are intangible in nature, most service providers strive to incorporate certain tangible
elements into their offering to enhance customer experience. Many hair salons invest in
comfortable and stylish sitting areas with magazines and plush sofas for patrons to read and relax
while they wait. Similarly, many restaurants invest heavily in their interior design and decorations to
offer a tangible and unique experience to their guests.
CHAPTER-2
LITERATURE REVIEW
2.1 INTRODUCTION
This chapter deals with the assessment of literature which related to the topic of customer
satisfaction practices of organization . This chapter attempts to highlight the meaning of
consumer satisfaction & behavior, consumer characteristics, the theory of reasoned action,
consumer decision-making process, and purchasing decision process.
2.2CONSUMER BEHAVIOR
Since consumers are the most important factor for business continuation, the
understanding of consumer behavior is one of key elements in preparing marketing strategy.
Consumer behavior is the study of what to buy, how to buy, where to buy, and when to buy in
what quantity. Apart from the decision of to buy and not to buy,
there is also a decision regarding which source to buy. Consumer behavior is also the
study of factors that affect the behavior both internal and external such as, self-concept, social
and cultural background, age, family, attitudes, personality and social class. In wealthier
societies, the consumers can afford to buy in greater quantity at shorter intervals. On the other
hand, in less wealthy societies, the consumers tend to only retort to their basic needs.
Recently, consumers are better educated and well informed and consumers own discriminating
knowledge in choosing of goods and services. Consequently, manufacturers and retailers have to
explore and understand consumers’ needs and preferences14. Consumer behavior is partially
described and understood in terms of economic theory. However, other influences on consumer
such as social and psychological,
CHAPTER-3
RESEARCH METHODOLOGY
3.1INTRODUCTION
Method is the systematic ,theoretical analysis of the methods applied to a field of study . It comprise
to identify and analyses the customer satisfaction. To improve the efficiency and effectiveness of the
CRN strategies in the present day world.
Research is required and a methodology applied for the solution can be found out. Research was
carried out at Vinticon industries to find customer satisfaction & behavior analysis process.
3.3RESEARCH DESIGN
Research design of study is descriptive .
Questionnaire
Observation
Informal interviews
Secondary data –Secondary data are those which are already in existence. Data was collected from
books, magazines, web sites, going through the records of the organization, etc. It is the data which
has been collected by individual or someone else for the purpose of other than those of our particular
research study. Or in other words we can say that secondary data is the data used previously for the
analysis and the results are undertaken for the next process.
Websites
Books
Magazines
Earlier research on similar topic
3.5 SAMPLE SIZE
The sample size taken is 20 employees.
DATA ANALYSIS
Every day 4
Every Week 13
Every Month 33
Every 4-6 Months 8
Once or Twice a Year 2
Total 60
Table 5.1
Every 4-6 Months Every Week Every Month Every 4-6 Months
13% Every Week
22% Once or Twice a Year
Every Month
55%
Figure 5.1
Interpretation
Strongly Agree 39
Agree 16
Neither Agree nor Disagree 4
Disagree 1
Strongly Disagree 0
Total 60
Table 5.2
Strongly Disagree
Figure 5.2
Interpretation
Strongly Agree 38
Agree 19
Neither Agree nor Disagree 3
Disagree 0
Strongly Disagree 0
Total 60
Table 5.3
Figure 5.3
Interpretation
Strongly Agree 18
Agree 27
Neither Agree nor Disagree 13
Disagree 2
Strongly Disagree 0
Total 60
Table 5.4
Agree 45%
Figure 5.4
Interpretation
Strongly Agree 36
Agree 19
Disagree 1
Strongly Disagree 0
Total 60
Table 5.5
Strongly Agree
Agree
Agree
32% Neither Agree nor Disagree
Strongly Agree 60%
Disagree
Strongly Disagree
Figure 5.5
Interpretation
Strongly Agree 26
Agree 19
Neither Agree nor Disagree 6
Disagree 6
Strongly Disagree 3
Total 60
Table 5.6
Agree 32%
Figure 5.6
Interpretation
Strongly Agree 13
Agree 23
Neither Agree nor Disagree 21
Disagree 2
Strongly Disagree 1
Total 60
Table 5.7
Strongly Agree
15%
Strongly Agree
Agree
Figure 5.7
Interpretation
Out of the 60 responses taken from the customers of VINTICON INDUSTRY
43% of customers neither agreed nor disagreed that the packaging provides detailed
information about the product.
37% of customers agreed that the packaging provides detailed information about the product.
15% of customers strongly agreed that the packaging provides detailed information about the
product.
3% of customers disagreed that the packaging provides detailed information about the
product.
2% of customers strongly disagreed that the packaging provides detailed information about
the product.
Question 8- It is convenient to place an order with vinticon industry-
Strongly Agree 38
Agree 16
Neither Agree nor Disagree 6
Disagree 0
Strongly Disagree 0
Total 60
Table 5.8
Strongly Agree
Agree
Agree
Neither Agree nor Disagree Disagree
27%
Strongly Disagree
Strongly Agree
63%
Figure 5.8
Interpretation
63% of customers strongly agreed that it’s convenient to place an order with Vinticon industry.
27% of customers agreed that it’s convenient to place an order with Vinticon industry.
10% of customers neither agreed nor disagreed that it’s convenient to place an order with
Vinticon industry.
Question 9- The discounts/offers given by vinticon industry are satisfactory-
Strongly Agree 14
Agree 37
Neither Agree nor Disagree 7
Disagree 2
Strongly Disagree 0
Total 60
Table 5.8
Strongly Agree
23%
Strongly Agree
Agree
Neither Agree nor Disagree Disagree
Strongly Disagree
Agree 62%
Figure 5.9
Interpretation
Most Likely 46
Somewhat Likely 9
Neutral 3
Somewhat Unlikely 2
Most Unlikely 0
Total 60
Table 5.10
Most Unlikely
0%
Most Likely
Somewhat Likely
Somewhat Likely
15%
Neutral
Somewhat Unlikely Most Unlikely
Most Likely
77%
Figure 5.10
Interpretation
Out of the 60 responses taken from the customers of Vinticon industry.
77% of customers most likely recommend our products to others.
15% of customers somewhat likely recommend our products to others.
5% of customers neutrally recommend our products to others.
3% of customers somewhat unlikely recommend our products to others.
Question 11- How likely are you to use/purchase the product again-
Most Likely 36
Somewhat likely 19
Neutral 4
Somewhat Unlikely 1
Most Unlikely 0
Total 60
Table 5.11
Somewhat Unlikely
1% Most Unlikely 0%
Neutral
7%
Most Likely
Somewhat likely
Somewhat likely Neutral
32%
Most Likely Somewhat Unlikely
60% Most Unlikely
Figure 5.11
Interpretation
Most Likely 36
Somewhat Likely 21
Neutral 3
Somewhat Unlikely 0
Most Unlikely 0
Total 60
Table 5.12
Somewhat Unlikely
0%
Neutral Most Unlikely
5% 0%
Figure 5.12
Interpretation
Question 13- How many times did you have to contact the head office before the
problem was corrected-
Once 39
Twice 13
Three Times 6
More Than Three Times 2
Problem is still Unsolved 0
Total 60
Table 5.13
TIMES DID YOU HAVE TO CONTACT THE HEAD OFFICE BEFORE PROBLEM WAS CORRECTED
Once
Twice
Twice
22%
Figure 5.13
Interpretation
Out of the 60 responses taken from the customers of Vinticon industry.
65% of customers had to contact only once to the head office before the problem was
corrected.
22% of customers had to contact twice to the head office before the problem was corrected.
10% of customers had to contact three times to the head office before the problem was
corrected.
3% of customers had to contact more than three times to the head office before the problem
was corrected.
Question 14- How satisfied you are with the product-
Very Satisfied 42
Somewhat Satisfied 14
Neutral 4
Somewhat Dissatisfied 0
Very Dissatisfied 0
Total 60
Table 5.14
Figure 5.14
Interpretation
Very Satisfied 39
Somewhat Satisfied 17
Neutral 4
Somewhat Dissatisfied 0
Very Dissatisfied 0
Total 60
Table 5.15
Very Dissatisfied
Neutral 0%
7%
Figure 5.15
Interpretation
FINDINGS
The following are the findings of this project-
65% of customers had to contact only once to the head office before the problem
was corrected.
22% of customers had to contact twice to the head office before the problem was
corrected. 10% of customers had to contact three times to the head office before the
problem was corrected.
3% of customers had to contact more than three times to the head office before the problem
was corrected.
70% of customers are very satisfied with the products offered by Vinticon industry.
23% of customers are somewhat satisfied with the products offered by Vinticon
industry.
7% of customers are neither satisfied nor dissatisfied with the products offered by
Vinticon industry.
65% of customers rated their overall satisfaction as very satisfied.
28% of customers rated their overall satisfaction as somewhat satisfied.
7% of customers rated their overall satisfaction as neither satisfied nor dissatisfied.
60% of customers most likely want to purchase the product again.
32% of customers somewhat likely want to purchase the product
again. 7% of customers neutrally want to purchase the product
again.
1% of customers somewhat unlikely want to purchase the product again.
CHAPTER-6
CONCLUSION
As from the entire study we came to know that, customers rely heavily on quality and
if not provided with good quality to them they can shift to the other company.
Also reasonable price affects the buying process of Indian customers, as they want
good quality in lesser price and Vinticon industry success is enviable.
As the packaging of Vinticon industry is average, but still maximum customers got
satisfied as they were providing the customers with good quality, reasonable price,
discount/offers, and also solving their problem very rapidly.
Also from the customer’s perspective, most of the customers were in a dilemma that
they want to recommend the company’s product to others because they do not want to
raise their competitor.
Customer Satisfaction depends heavily on the services that are offered to them.
CHAPTER-7
RECOMMENDATIONS
Company should give more effort on product quality to increase the customers and to
enhance the order.
Company should introduce some new products so that the customer will get more
range of variety to select while purchasing.
Company should make their order processes more convenient for customers so that
customer feels more convenient.
Company needs to improve upon their Packaging also because maximum customers
neither agreed nor disagreed when we asked about the packaging of the company was
up to the mark.
Company should also provide the detailed information about the product on
packaging as maximum customers were mentioned this while doing the survey.
Company can also improve their services in terms of delivering the products and also
make it more convenient to customers.
The customer problem should be solved on time as that would add more value to their
assets.
REFERENCES
Web Sites-
www.kohinoormechanical.com
http://en.wikipedia.org/wiki/L'Or%C3%A9al
www.Strategex.com
We get high range of variety of products to select while purchasing froms vinticion
industry -
Have you faced any problem while placing an order/receiving products/regarding quality, if
yes then-
How many times did you have to contact the head office before the problem was
corrected-
1. Once
2. Twice
3. Three times
4. More than three times
5. Problem is still unsolved
How would you rate your overall satisfaction towards vinticion industry -
Any Suggestion-
Name-
Email id-
Conta
ct No- Organization Name-
Date-