CHAPTER 3

THERATICAL FRAME WORK

CUSTOMER SATISFACTION

INTRODUCTION

Customer or buyer is the central figure of all marketing activities. It is the

consumer who determines the growth, prosperity and even existence of a
business Enterprise. Hence the marketer should always feel the pulses of
consumers "The mind decides and the body acts". But what goes on in the mind
of a consumer is difficult to understand. His mind is black, box were in several
influences operating to decide his buying patterns with regard to product or
service. The marketers need to understand fully the working of buyers" mind
and use suitable strategies to create a favorable orientation in the mind or
consumers. He must plan his production and distribution to meet the needs and
convenience of consumers rather than his own. He must have a clear
understanding of consumer behavior.

MEANING OF A CUSTOMER

"Customer is a person who buys goods or services for his own

consumption for the satisfaction of his needs". Thus "customer is an ultimate
user of a product". But buyer or customer is a person who buys goods either for
resale or for production or for the use of somebody else/for e.g.: if a man buys
mango and is used by him to satisfy his I hunger, he is called a consumer. But if
a man buys a sari and his wife uses it, he is called a buyer. Therefore the two
terms 'consumer and buyer' are different in the true sense. However in the
"Consumer Protection Act 1986" defines the term consumer includes buyers
also.
CUSTOMER SATISFACTION

Consumers are the largest of the activities of marketing department of a

company. Today business world recognize that consumer is the king. The
primary reason for producing quality product delivery quality services is
customer satisfaction. Without customer satisfaction organization are unlikely to
measure their sales and revenue. Customer satisfaction is the result of delivery a
product of service that meets customer's requirements

According to the journal advertising research customer satisfaction

services is one of the faster growing areas to of market research. This is
understandable even in the context of the Indian market where we are moving
toward s market economy with customer on the central focus. here are
alternative definition for customer satisfaction or dissatisfaction it is comparison
of customer expectations with perception regarding the service encounter

The satisfaction of customer is perhaps the most sensible objectives of

business firm. Until recently importance of consumption was over looked taut
new. Business men are trying to ascertain the preferences tastes attitudes sis of
the customers. These business activities must be turned in such a way it's in
secure maximum satisfaction of the customers or the purpose all is necessary
information should be collected from the consumers

In order to satisfy his needs and wants the customer purchases certain
goods on the impression that it would satiety his needs and wants. If the
product; satisfies him. He will buy more and more of the same product. He will
also advertise about the product to others. If is dissatisfied he will stop consult-
ling the product. Measuring customer's satisfaction is important, because 26% of
customers dissatisfied would be enough to stop doing business.
 Peter Ducker observed that a company's first task is to "create customers".
Satisfaction is the person's feelings of pleasure or disappointment resulting from
comparing a product's perceived performance (outcome) in relation to his I her
expectation. If the performance falls short of expectation, the customer is
dissatisfied.

If the performances exceed expectation the customer is highly satisfied or

delighted. "Customer satisfaction is the level of persons tells slate resulting from
comparing a product perceived performance in relation to the person's
expectations."

DEFENITIONS OF CUSTOMER SATISFACTION

Philip kotler defines customer satisfaction as a “Persons feeling of pleasure or

disappointment, which resulted from comparing a products perceived
performance or outcome against his/her expectations

METHODS TO MEASURE CUSTOMER SATISFACTION.

1. Complaint and Suggestion System: - A customer centered organization

would make it easy for its customer to deliver suggestions and complaint.
Complaint boxes are popular nowadays.

2. Customer Satisfaction Survey: - Responsive companies obtain direct

measures of customer satisfaction by periodic surveys. They sent

questionnaires to a random sample of the customers to find out how they
feel about various aspects of the company's performance and also solicit
views on the competitors' performance. It is useful to measure the
customers' willingness to recommend the company brand to other
persons. A high positive word of mouth score indicates the company is
producing his Customer satisfaction.
 3. Ghost Shopping- Another useful way to gather a picture of customer

satisfaction is to hire persons to pose as potential buyers to report their

findings on strong and weak points they experienced in buying the
company's and competitors products. These Ghost shoppers - can even
pose certain problems to list whether the company's sales personnel
handle the situation well.

4. lost customer analysis: - Companies should contact customers who have

stopped buying or who have switched on to another supplier to learn why

that happened.

FEATURES

Business people who work with customers or client should exhibit

professionalism, patience, respect and good communication. Also going the
extra mile for your customers is a good way to enhance customer satisfaction
because it increases your chance of exchanging their expectations.

Factors affecting customer satisfaction

Several factors like psychological, personal, social and cultural factors influence
the purchasing behavior of the consumer.

 Psychological Factors

Many psychological factors like motivation, perception, learning, attitudes and

beliefs play a crucial role in purchasing a particular product and services. To
increase sales and encourage the consumer to purchase the service. organization
should try to create a conscious need in the consumer & mind which develops
an interest in buying the service. Similarly, depending on the experiences of the
experiences, beliefs, and personal characteristics of the consumer, each
individual has a different perception from one another. Hence, the study of
consumer buying behavior is a gateway to success in the market.Overall the
result shows that the brand image, value, price, health concern and quality
influences customer satisfaction.

1. Personal Factors

This consumer behavior includes personal factors such as age, occupation.

economic situation, and lifestyle. Consumer changes the purchase of goods
and services with the passage of time. Occupation and the economic
situation also have a significant impact on buying behavior. A person with
high income chooses to purchase expensive product and services. On the
other hand, a person with low income chooses to purchase inexpensive
product and services. The lifestyle of customers is another crucial factor
affecting the consumer buying behavior. Life style refers to the way a person
lives in a society and is expressed by the things in the surroundings.

2. Social Factors

Human beings live in an environment surrounded by several people who

have different buying behavior. A person's behavior is influenced by small
groups like family, friends, social networks, and surroundings who have
different buying behavior. These groups form an environment in which an
individual evolves and shape the personality. Hence, the social factors
influence the buying habit of a customer to great extends.
  Cultural Factors .

Culture is crucial when it comes to understanding the needs and behavior of an

individual. The values, perception, behavior and preference are the factors
basically learned at the very early stage of childhood from the people and the
common behaviors of the culture. Norms and values are carried forward by
generations from one entity to the other. Culture factors represent the learned
values and perceptions that define consumer wants and behaviors.
Consumersare first influenced by the groups they belong to but also by the
groups (inspirational groups) they wish to belong to.

CUSTOMER SATISFACTION OF TWO WHEELERS IN INDIA

Two-wheeler dealers in India face significant competitive pressure from

independent workshops, which are providing similar service work as the
original equipment (OE) authorized network, according to the J.D. Power 2016
India Two-Wheeler Customer Service Index (2WCSI) Study, SM released
today. More than one in five (22%) two-wheeler customers indicate visiting an
independent workshop during the warranty period.

The inaugural study measures customer satisfaction with the after-sales

service experience at original equipment (OE) authorized service center during
the first 12-24 months of ownership. The study focuses on what matters most to
customers when they take their two-wheeler in for service and also analyzes the
processes that define the service experience. The study measures overall
satisfaction in five factors (listed in order of importance): vehicle pick-up
(22%); service advisor (21%); service quality (20%); service facility (19%); and
service initiation (18%). Overall customer satisfaction is measured on a 1,000-
point scale, with a higher score indicating higher satisfaction. Satisfaction with
the service experience at an authorized network is driven by three after-sales
service- related activities, including the charges incurred, quality of work done
and on-time delivery after service. According to the study, 25% of customers
are dissatisfied with these activities, creating the need to improve on these
services since there is significant correlation between customers visiting an
independent - workshop and the quality of experience at the authorized network.

"Given the high propensity of customers visiting independent workshops,

it is critical for manufacturers and their authorized network to develop a
differentiated service experience, thus providing a compelling reason for
customers to revisit," said Mohit Arora, executive director at J.D. Power.
"Significant opportunities for improvement exist related to key customer
expectations of quality, cost and time. Dealerships that are able to address these
efficiently and engage customers are likely to benefit from increased service
business."