A

Marketing Research Project

on
Customer Satisfaction towards
Bajaj Bikes

Submitted by:
Submitted To:
Dr. Jayashree Raveendran Deba Prasad Tripathy
Assistant Professor PGDM-A
Faculty in MR Roll no:016
Batch: 2010-12

Institute of Public Enterprises

Hyderabad
 Acknowledgement

I would like to thank Dr.Jayasree Ravindran, for her guidance in

successful completion of the project. Also I thank all my friends for
assisting me in doing this project and for their valuable information in
doing this research.I also thank IPE(Institute of Public Enterprise) for
providing me the opportunity to do this research and providing all the
facilities required to do the research and to give the project a final shape. I
finally thank all my friends who directly or indirectly helped through the
project.

Yours faithfully

Deba Prasad Tripathy

PGDM-016
Batch-2010-12
 CONTENTS
1. Acknowledgement

2. Introduction

3. Research Objectives

4. Literature Review

5. Research Approach

Research Design

Problem Identification

Conceptual Model

6. Data collection

7. Respondents Profile

8. Selling Techniques

9. Hypothesis

10. Quantitative Analysis

Reliability Test

Correlation

ANOVA

Regression

10. Finding & Managerial Implementation

11. Reference
 Introduction

The Automotive industry in India is one of the largest in the world and
one of the fastest growing globally. India manufactures over 11 million vehicles
(including 2 wheeled and 4 wheeled) and exports about 1.5 million every year. It is
the world's second largest manufacturer of motorcycles, with annual sales
exceeding 8.5 million in 2009. Purely from a transportation aspect, the significant
and increasingly urban population in India has created a large demand for the
Indian auto industry. Motorcycles are one of the most affordable forms of
motorised transport in many parts of the world and, for most of the world's
population, they are also the most common type of motor vehicle. There are
around 200 million motorcycles (including mopeds, motor scooters and other
powered two and three-wheelers) in use worldwide or about 33 motorcycles per
1000 people. This compares to around 590 million cars, or about 91 per 1000
people. Most of the motorcycles, 58%, are in the developing countries of Asia
Southern and Eastern Asia, and the Asia Pacific countries, excluding Japan. As of
2009, India with an estimated 45 million motorcycles/mopeds was home to the
largest number of motorized two wheelers in the world. China came a close second
with 40 million motorcycles/mopeds.
Bajaj Auto Ltd. is one among India's top ten companies in terms of
market capitalization and among the top five in terms of annual turnover. Its
footprint stretches over a wide range of industries, spanning automobiles (two-
wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance,
travel and finance. The group's flagship company, Bajaj Auto, is ranked as the
world's fourth largest two- and three- wheeler manufacturer and the Bajaj brand is
well-known across several countries in Latin America, Africa, Middle East, South
and South East Asia.
Bajaj Auto limited is one of the largest two wheeler manufacturing
company in India apart from producing two wheelers they also manufacture three
wheelers. The company had started way back in 1945. Initially it used to import
the two wheelers from outside, but from 1959 it started manufacturing of two
wheelers in the country. By the year 1970 Bajaj Auto had rolled out their
100,000th vehicle. Bajaj scooters and motor cycles have become an integral part of
the Indian milieu and over the years have come to represent the aspirations of
modern India. Bajaj Auto also has a technical tie up with Kawasaki heavy
industries of Japan to produce the latest motorcycles in India which are of world
class quality The Bajaj Kawasaki eliminator has emerged straight out of the
drawing board of Kawasaki heavy industries. The core brand values of Bajaj Auto
limited includes Learning, Innovation, Perfection, Speed and Transparency.
Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj and
Chakan in Maharashtra, western India, which produced 2,314,787 vehicles
in2005-06. The sales are backed by a network of after sales service and
maintenance Work shops all over the country.
Bajaj Auto has products which cater to every segment of the Indian two wheeler
market Bajaj CT 100 Dlx offers a great value for money at the entry level.
Similarly Bajaj Discover 125 offers the consumer a great performance without
making a big hole in the pocket.
Today, the company has become a market leader with annual production in
excess of 1.35 million units which was about 4000 units in 1961. These days,
Bajaj Auto Ltd. has started offering products in all segments (mopeds & scooters,
scooters, motorcycles, three wheelers).

Customer Satisfaction:

Marketing strategy shows that one dissatisfied customer reduce ten customer
and also capturing a new customer is five time more expensive than the cost of
retention of existing customer. So maintaining customer satisfaction is the aim of
every organization by providing the maximum value to customer. A customer
always measure the benefit what he get from a product. In case of automobile
sector also same behavior observe.
Satisfaction of a customer is depend on both pre and post service offered by
the company .The study finds that that vehicle pickup and delivery before and
service has a strong impact on customer satisfaction. In particular, customer who
say that their vehicle was picked up from their doorstep before service and
delivered to the same point after service are notable more delighted with their
after-sales service experience, compared with the customer who dont receive this
service. Although this value added service is utilized more frequently over the past
two years, fevers than one of 10 customer report receiving it.
This level of satisfaction also varies largely in accordance with the
performance of his vehicle of a customer. Also a customer compare his own
vehicle performance with other that influence his satisfaction level.
With increasing in traffic congestion also forcing people to use bikes rather
than use a car. Normally people travelling less than 10 kilometer prefer using bikes
for their daily transport.
 Research Objective

Primary Research Objective:

To study the satisfaction level of Bajaj bikes customers with
respect to their age, sex, occupation, time they have been using the bike
etc.

Secondary Research objective

To study the impact of various cost like purchasing cost, spare parts
cost etc of Bajaj bikes on satisfaction level of its customer
Service provided by the Bajaj impacting the level of satisfaction
To measure satisfaction of Bajaj Customers by measuring the
efficiency, mileage of its bikes.
To find the degree of dependency of satisfaction level due to the
performance and longevity of Bajaj bikes
To study the attractiveness of a customer towards Bajaj Bikes due to
available of wide range of Bajaj bike model.
 Literature Review

1. The influence of price fairness on customer satisfaction: an empirical test in the

context of automobilepurchases.

Authors: Herrmann,Andreas, Lan Xia, Monroe, Kent B, Huber, Frank

Purpose - This paper aims to link conceptually the concepts of price fairness and
customer satisfaction and empirically demonstrate the influence of perceived price
fairness on satisfaction judgments. Further, it seeks to examine specific factors that
influence fairness perceptions including price perception and consumer vulnerability.
Design/methodology/approach - The study is conducted in the context
of automobile purchases in major German car dealerships. Based on a theoretical
conceptualization of the constructs and an empirical pretest, 246 car buyers were
surveyed and their fairness perceptions and satisfaction judgments with the car
buying process measured.
Findings - The research shows that price perceptions directly
influence satisfaction judgments as well as indirectly through perceptions of price
fairness. Results also indicated that consumers' vulnerability, which is induced by a
perceived demand-supply relationship and the urgency of need from the consumers'
side, had a negative effect on perceived price offer fairness.
Research limitations/implications - The research demonstrated the influence of
perceived price fairness on satisfaction judgments empirically.

2.http://www.academon.com/db/search?KEYW=Customer%20satisfaction%20depe
nding%20cost%20of%20a%20product
Customer Satisfaction Research
An anlysis of customer satisfaction in health care organizations.

This paper examines three articles on measuring customer satisfaction in health care
organizations. The paper examines the methods used, the reasons for using these
methods, and the types of data to be gathered. The paper further examines
why customer satisfaction is important in health care and what a level
of customer satisfaction actually means and what might reduce those levels."With
reference to the issue of measuring customer satisfaction for medical services,
numerous ways of achieving this have been offered and tested in different studies of
the same basic question. Patient satisfaction is seen as a measure of the effectiveness
of treatment and also of the viability of a particular medical facility as a business
venture. Any business that fails to provide customer satisfaction will eventually fail.
Much research has been conducted on the satisfaction levels of certain products, and
a different approach is taken to ascertain the satisfaction levels with services and
specifically with customer contacts for any type of enterprise."
3. Pricing that influence the Customer satisfaction

Source: European Journal of Marketing; 1979, Vol. 13 Issue 4, p143, 4p

Authors: Gabor, Adre
This article focuses on the centrality of price in the marketing mix. It is of course
perfectly true that there is no pricing trick that could save a product if it completely
fails to meet the customers' requirements. However, having a product that is
capable of satisfying some or even the majority of potential customers is by far not
the end of the matter, because both profitability and
consumer satisfaction heavily depend on the price, especially if the product is sold
in acompetitive market. In other words, success demands that both the product and
the price should be right. That much is generally accepted, as also the obvious fact
that with any given volume of sales the producer would
prefer a higher price to a lower price. The apparent corollary that the customer will
invariably prefer a lower price to a higher price is not, however, invariably the case
because, in addition to representing a measure of the cost of acquisition to the
customer, price also has two other functions, it is an indicator of quality and
remains a permanent attribute of the product also after the purchase.

4. How to Measure Customer Satisfaction

Source:
http://www.academon.com/db/search?KEYW=Customer%20satisfaction%20depend
ing%20cost%20of%20a%20product
A look at various methods for evaluating customer satisfaction.

This paper discusses the various ways to measure customer satisfaction.

Customer service satisfaction measurement is seen as the way companies can gain
competitive advantage, as they can target customers better by finding out their
preferences and level of satisfaction with existing products and services. The idea is
that what is not measured can subsequently not be managed. Various measurement
techniques are evaluated also.

"Most emerging approaches to the measurement of overall productivity and

management results agree on the importance of customer capital, as expressed in
sales, satisfaction and reputation. The higher the innovative and service component,
the more the customer becomes part of the performance equation. Customer feedback
helps continuously to improve product and performance, with the peripheral benefit
of inspiring employees to increased efforts toward better results."
5. Service Quality From the Customer's Perspective: An Empirical Investigation.
By: Saravanan, R.; RAO, K. S. P.. Quality Management Journal, 2007, Vol. 14 Issue
3, p15-24, 10p, 5 Charts;
Service organizations in India are facing tough competition in the global market
because of the liberalization and globalization of the Indian economy. Hence, it is
helpful for service firms to know the customer's perceptions of service quality in
order to overcome their competitors and attract and retain customers. Even though
many quality management studies have been conducted in manufacturing industries
there is insufficient knowledge in the service sector on the issues to be addressed by
the service organizations. Hence, this study examined the service quality issues in the
Indian automobile service sector from the customer's perspective. The research
studied the overall service quality of the automobile service stations in India with
respect to the critical factors of service quality. Further, the work computes and
analyzes the service quality indices with respect to the six critical factors as a whole
in order to ascertain the level of service quality in the
Indian automobile service sector.
6. Performance Measurement
This paper looks at the importance of performance measurement to a project.
In this article, the writer discusses the importance of performance management
in project management, emphasizing the three measures of schedule, quality, and
customer satisfaction and explaining why performance measurement is important in a
project.

"One of the key facets of project management is performance measurement.

The three prime objectives of project management are to meet specified performance
within cost and on schedule. The importance of performance measurement cannot be
overstated. Other project management values such as rapid project completion are not
valuable if performance quality is sacrificed to attain them. In addition without
performance measurement it is difficult to evaluate the success of a project. By
linking measures to the company's strategy and ensuring that they ..."
7. Study of the Canadian Automobile Industry
A discussion regarding the nature of the Canadian automobile industry.
 This study of the Canadian automobile industry reveals how this industry
reflects, in many ways, the complex contradictions of economic development of
Canada. While the automobile industry is one of Canada's major industries in terms
of revenues and employees, it is not only geographically concentrated in Ontario
(and, to a lesser extent, Quebec), but it is also almost entirely dependent upon and
external market: the United States. The paper goes on to discuss how much like the
Canadian economy as a whole, the Canadian automobile industry developed in a state
of dynamic tension with the economic and political forces shaping the economic giant
to the south. "
8. Analysis of product efficiency in the Korean automobile market from a
consumers perspective.
By: Inha Oh; Jeong-Dong Lee; Seogwon Hwang; Heshmati, Almas. Empirical
Economics, Feb2010,
In this study we develop and describe a conceptual and methodological framework
to measure technical and allocative efficiency at the product level considering
consumer choice, which encompasses overall efficiency. Empirically, we combined
data envelopment analysis and a discrete choice modelin order to
measure efficiency levels. The suggested framework is applied to the
Korean automobile market. The relationship between the level of efficiency and
market performance is discussed in terms of market share.
9. The inconvenient truth about improving vehicle fuel efficiency: A multi-attributes
analysis of the technology efficient frontier of the US automobile industry.
By: Chen, Chialin; Zhang, Jun. Transportation Research: Part D, Jan2009, Vol. 14
Issue 1,
Vehicle fuel efficiency has taken on more economic and environmental
significance due to the rise in gasoline prices in 2007/2008. We examine adoption of
fuel efficiency technologies by the US automobile industry between 1985 and 2002
and consider the environmental implications. The technology efficient frontier
between vehicle weight and fuel efficiency of the US automobile fleet did not move
outward significantly for an extended period in the 1980s and 1990s indicating a lack
of company- or industry-wide adoption of new fuel efficiency technologies. While
the firm with inferior technology capability did push its efficient frontier outward to
close the technology gap, the two leading firms efficient frontiers first showed signs
of possible regression in the early 1990s, and did not move outward significantly until
the mid 1990s. Several managerial and policy options are examined for improving
vehicle fuel efficiency.
10. http://www.accessmylibrary.com/article-1G1-148178111/effects-modeling -
automobile-likeability-10.html

Smith, Edith G, Van Meurs, Lex, Neijens, Peter C (March 01, 2006), Effects of
advertising likeability: a 10-year perspective, Journal of Advertising Research
In this journal author has researched on the great effects of the modeling that is
the designing of automobile on the consumers. If a consumer has a liking towards a
particular design then he will attract towards the particular brand of that brand .
Therefore, liking will be closely related to the designing that a automobile
manufacture provide to the market & which in turn results in a higher purchase
intention.

11.http://www.marketresearchworld.net/index.php?option=com_content&task=view
&id=454&Itemid=74 -

Thats where its at: implicit effects of millage in automobile

In this research carried out by the researcher, the implicit assessment test(IAT)
is used on the respondents which to assesses major effects of millage, rather than the
design. Moreover, the IAT revealed that older participants (35 years and older) liked
the posh and good value for money banners more than younger participants (20
and younger). In sum, it appears that consumers may have more preference towards
the efficiency and millage found in a automobile vehicle over the design in case of
older people.

12. Determining customer satisfaction through perceived service quality.

A STUDY OF ETHIOPIAN BIKE USERS

By: Rakshit Negi

Worldwide maturity of the telecommunications industry bike sector is well

witnessed in most developed economies. However, untapped market opportunity can
be seen in the African continent and Ethiopia in particular. Associating customer
satisfaction with the quality of bike services and their providers can be seen as one of
the factors contributing notably to this situation. This study is designed to identify the
role of service quality as perceived by bike users while determining their overall
satisfaction. Structured questionnaires were used to collect primary data from 250
bike subscribers of Ethiopian Telecommunication Corporation (ETC). Service uality
gaps (Perception-Expectation), were computed and found to be negative for all the
service quality dimensions ranging from as low as -2.02 for Tangibles to as high as -
3.23 for the added dimension of Network Quality. Overall service quality was found
to be significantly associated with and contributed significantly to the overall
satisfaction of bike subscribers.

14. Customer Satisfaction through Design, Manufacture and Supply Networks:

Introduction to the special issue
PRODUCTION AND OPERATIONS MANAGEMENT
Vol. 11, No. 3, Fall 2002 ,Printed in U.S.A.
By AMIYA K. CHAKRAVARTY AND K. RAVI KUMAR
Innovations in technology and management practices have produced a distinct
paradigm shift since the days of Henry Ford. The cornerstone of competition has been
cost-minimization and affordability, to increase product sales. Operational strategies
have primarily been based on ways to lower cost structures. The key tactics towards
this goal have been pursuing scale economies, high vertical integration, and high
product standardization. Today, customer satisfaction is the mission of most
companies. Companies like Dell have made make-to-order products and direct sales
their differential advantage in increasing customer satisfaction. Operational strategies
can now be structured for attaining high levels of customer satisfaction at relatively
low costs. Innovations in online information access, creative product design,
flexibility, outsourcing, postponement, dynamic pricing, and reactive-capacity have
been the major enablers of managing manufacturing-supply networks.
15. The "Value for Price" Concept: Relationships to Customer Satisfaction
By Michelle A. Morganosky, University of Illinois at Urbana-Champaign
A national telephone survey of 604 consumers was conducted to assess
satisfaction with the "value for price" of apparel brand types, store types, and brand
types in association with store types. Utilizing a congruity theory approach, results
revealed that consumer satisfaction with the value for price of name brands is
significantly lowered when associated with certain store types, satisfaction with the
value for price of store types is significantly lowered by association with designer
brands, and that satisfaction with the value for price of store brands is significantly
lowered when associated with certain store types. Implications for manufacturers,
retailers, and consumer behavior researchers are discussed.
 Research Approach
Research design
The research design chosen for study was exploratory. I intended to study
the customer satisfaction towards Bajaj Bikes. To analyses the problem I
have taken one dependent variable and five independent variables. Every
variable is individually measured by four different items and these items
are measured through questionnaires filled by the respondents.
Problem identification:
Customer satisfaction towards Bajaj Bikes
Dependent variable:
Customer Satisfaction (DV)
Independent variable:
Cost (IV1)
Service (IV2)
Efficiency (IV3)
Style and Comfort (IV4)
Performance (IV5)
 Conceptual Model
The conceptual model gives the relationship between the independent and dependent
variables.

Service

Style and Comfort

Perfermance

Customer
Satisfaction

Efficiency

Cost

Data collection method:

For this project the data collection method used is primary data & not the
secondary. Questionnaire was used to collect data from respondents. Questionnaire
was given to the respondents directly or emailed to them. Direct Response attitude
scales is used to understand about customer preference about various products.
Sampling Technique:
The sampling technique used for this project is a random sampling
method as there is no bias for any one particular respondent (sample).
Sample Size:
A sample size of 35 was used for the purpose in this Research. Because of time
constraints & some other factors. Mainly students from all the batches of Institute of
Public Enterprises, were surveyed to obtain a representative sample.

Respondent profile
Primary Research was conducted in online. The questionnaire was created using
Google forms and hard copies of questionnaire are distributed to respondents. This is
to get the data from respondent which varied demographically and geographically. A
total of 35 respondents filled in the questionnaire.

The respondents are Bajaj Bike users who are already a customer of Bajaj Auto Ltd.

The data collected mainly from the Institute of Public enterprise campus. And few
data collected from outside of campus also and the bellow chat shows the percentage
of that

Out side IPE

campus
29%

IPE campus
71%

The respondent are mainly 18-50 age group which latter divided into 5 subgroup.
Scaling Technique:
Likert scale was used to measure the variables both dependent and independent.

Rating was given on the five point scale.

Strongly Agree-1

Agree-2

Neutral-3

Disagree-4

Strongly Disagree- 5
Questionnaire: Customer satisfaction towards Bajaj Bike
Dear Friends,
I am doing a market research on Customer Satisfaction towards Bajaj Bikes. If you are a user of
Bajaj bike,please spare some of your valuable time to fill this with your valid opinion.
SD: Strongly Disagree, D: Disagree, N: Neutral, A: Agree, SA: Strongly Agree
S.N Items SD D N A SA
1 I feel attracted towards a Bajaj Bike.
2 I am satisfied with my bikes performance.
3 I recommend Bajaj bike for other to buy.
4 My next bike will be from Bajaj only.
5 I bought Bajaj bike because of its affordable price.
6 Bajaj price is cheaper/equivalent to other companies
bikes
7 Bajaj Bikes vehicles have good resale value.
8 Bajaj bike spear parts are cheaper.
9 I am happy with the service qualities of Bajaj.
10 Bajaj has good number of service centers.
11 Bajaj bike has a long warranty period/more number of
free servicing.
12 In Bajaj servicing centers the service is quick.
13 Bajaj bikes give more millage.
14 I can drive my Bajaj bike with good speed.
15 My Bajaj bike has good pick-up.
16 Bajaj bike performs well due to its DTS-i engine.
17 Bajaj bikes modeling is nice & attractive.
18 Bajaj provide a wide range of model.
19 Rider feels comfortable during driving a Bajaj bike.
20 It is easy to control while driving the Bajaj bike.
21 I faced a very few problem with my present Bajaj bike.
22 The longevity of this bike is high.
Name: How long you are using your Bajaj
Bike
Gender: M/ F Less than 1year
Age: 18-30/30-40/40-50/ >50 1year - 2 year
Occupation: 2 year 4 years
More than 4 years
 Hypothesis
a. Cost:

NULL HYPOTHESIS:
Cost does not have a significant on customer satisfaction for Bajaj bike.
ALTERNATIVE HYPOTHESIS:
Cost does have a significant impact on customer satisfaction for Bajaj bike

b. Service:

NULL HYPOTHESIS:
Service does not have a significant on customer satisfaction for Bajaj bike.
ALTERNATIVE HYPOTHESIS:
Service does have a significant impact on customer satisfaction for Bajaj bike

c. Efficiency:

NULL HYPOTHESIS:
Efficiency does not have a significant on customer satisfaction for Bajaj bike.
ALTERNATIVE HYPOTHESIS:
Efficiency does have a significant impact on customer satisfaction for Bajaj bike

d. Style & Comfort:

NULL HYPOTHESIS:
Style & Comfort does not have a significant on customer satisfaction for Bajaj bike.
ALTERNATIVE HYPOTHESIS:
Style & Comfort does have a significant impact on customer satisfaction for Bajaj
bike

e. Performance:

NULL HYPOTHESIS:
Performance does not have a significant on customer satisfaction for Bajaj bike.
ALTERNATIVE HYPOTHESIS:
Performance does have a significant impact on customer satisfaction for Bajaj bike
 Data Analysis

Data Analysis Technique:

SPSS Software package was used to analyse the raw data. Reliability test was
used to test the reliability of the data collected.

Correlation and Regression techniques in SPSS software were used to analyses the
data.

Reliability Test:
Reliability tells to what extent the data is reliable. It tells the number of valid
answers to the total answer present.

Cronbachs alpha which tells to what extent the data is reliable on a ten point
scale. If the value should be greater than 0.5 that shows data is reliable. If the value is
0.5 or more the data is excellent.

Dependent variable reliability test: Customer Satisfaction

Scale: ALL VARIABLES

Case Processing Summary

N %

Cases Valid 35 100.0

Excludeda 0 .0

Total 35 100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's Alpha
Based on
Cronbach's Alpha Standardized Items N of Items
 Reliability Statistics

Cronbach's Alpha
Based on
Cronbach's Alpha Standardized Items N of Items

.794 .790 4

Here the cronbachs alpha is 0.794,so the data collected for the dependent variable
customer satisfaction towards Bajaj Bikes is reliable. So the information is reliable
input for the further research and data analysis.

Independent variable reliability test: Cost

Scale: ALL VARIABLES

Case Processing Summary

N %

Cases Valid 35 100.0

Excludeda 0 .0

Total 35 100.0

a. Listwise deletion based on all variables in

the procedure.

Reliability Statistics

Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items

.548 .553 4

Here the cronbachs alpha is .548 and the data collected for independent variable
Cost of Bike is reliable.

Independent variable reliability test: Service

Scale: ALL VARIABLES
 Case Processing Summary

N %

Cases Valid 35 100.0

Excludeda 0 .0

Total 35 100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items

.715 .737 4

Here the cronbachs alpha is .715 and the data collected for independent
variable Service of Bike is reliable.
Independent variable reliability test: Efficiency
Scale: ALL VARIABLES

Case Processing Summary

N %

Cases Valid 35 100.0

Excludeda 0 .0

Total 35 100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items

.753 .758 4

Here the cronbachs alpha is .753 and the data collected for independent variable
Efficiency of Bike is reliable.
Independent variable reliability test: Style and Comfort
Scale: ALL VARIABLES

Case Processing Summary

N %

Cases Valid 35 100.0

Excludeda 0 .0

Total 35 100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics

Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items

.719 .718 4

Here the cronbachs alpha is .719 and the data collected for independent variable
Style and Comfort of Bajaj bikes is reliable.

Independent variable reliability test: Style and Comfort

Scale: ALL VARIABLES

Case Processing Summary

N %

Cases Valid 35 100.0

Excludeda 0 .0

Total 35 100.0

a. Listwise deletion based on all variables in the

procedure.
 Reliability Statistics

Cronbach's Alpha
Based on
Cronbach's Alphaa Standardized Itemsa N of Items

-.319 -.319 2

a. The value is negative due to a negative average covariance

among items. This violates reliability model assumptions. You
may want to check item codings.
Here the cronbachs alpha is -.319 and the data collected for independent variable
Perfermance of Bajaj bikes is not reliable.

Correlation:
Correlation is a statistical technique that can show whether and how strongly
two variable are related to each other. It measure through the Pearson coefficient of
correlation (r). The value of r varies from -1 to +1.The strength of the relation is
depend on the r where the positive or negative sign represent whether the two
variable related positively or negatively. The closer r is to +1 or -1, the more closely
the two variables are related.

Descriptive Statistics

Mean Std. Deviation N

SATISFACTION 3.6857 2.10509 35

COST 3.1643 .78343 35

SERVICE 3.4429 .74776 35

Efficiency 3.7643 .83345 35

Style and Comfort 3.6000 .84714 35

Perfermance 3.3143 .70800 35

 Correlations

SATISFACTI Style and

ON COST SERVICE Efficiency Comfort Perfermance

SATISFACTION Pearson Correlation 1 .390* .481** .512** .594** .072

Sig. (2-tailed) .021 .003 .002 .000 .681

N 35 35 35 35 35 35

COST Pearson Correlation .390* 1 .252 .202 .177 .070

Sig. (2-tailed) .021 .144 .245 .310 .690

N 35 35 35 35 35 35

SERVICE Pearson Correlation .481** .252 1 .633** .624** .382*

Sig. (2-tailed) .003 .144 .000 .000 .023

N 35 35 35 35 35 35

Efficiency Pearson Correlation .512** .202 .633** 1 .743** .160

Sig. (2-tailed) .002 .245 .000 .000 .357

N 35 35 35 35 35 35

Style and Comfort Pearson Correlation .594** .177 .624** .743** 1 .222

Sig. (2-tailed) .000 .310 .000 .000 .200

N 35 35 35 35 35 35

Perfermance Pearson Correlation .072 .070 .382* .160 .222 1

Sig. (2-tailed) .681 .690 .023 .357 .200

N 35 35 35 35 35 35

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation: The correlation analysis is performed on all the variables D.V &
I.Vs by using the mean Values. From the correlation output we can see there is a
term called Pearson Correlation which gives the correlation value.
Cost: cost has positive and low correlation of 0.390 with customer satisfaction

Service: service has positive moderate correlation of 0.481 with customer

satisfaction.

Efficiency: efficiency also has positive moderate correlation of 0.512 with customer
satisfaction.

Style & comfort: style & comfort has strong positive correlation of 0.594 with
customer satisfaction.

Performance: performance has a positive low correlation of 0.074 with customer

satisfaction.

Regression:
Regression analysis is a statistical technique which measures the impact of the
dependent variable on independent variables and also measure the extend of the
impact. More specifically, regression analysis helps one understand how the typical
value of the dependent variable changes when any one of the independent variables is
varied, while the other independent variables are held fixed.

Variables Entered/Removed

Variables Variables
Model Entered Removed Method

1 Perfermance, . Enter
COST,
Efficiency,
SERVICE, Style
and Comforta

a. All requested variables entered.

Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .676a .457 .363 .69594

a. Predictors: (Constant), Perfermance, COST, Efficiency, SERVICE,

Style and Comfort
 ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 11.801 5 2.360 4.873 .002a

Residual 14.046 29 .484

Total 25.846 34

a. Predictors: (Constant), Perfermance, COST, Efficiency, SERVICE, Style and Comfort

b. Dependent Variable: SATISFACTION

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .386 .819 .471 .641

COST .303 .158 .272 1.919 .065

SERVICE .167 .233 .144 .720 .477

Efficiency .063 .228 .060 .277 .784

Style and Comfort .448 .221 .435 2.030 .052

Perfermance -.133 .184 -.108 -.724 .475

a. Dependent Variable: SATISFACTION

Interpretation:
From the regression analysis output we found that the adjusted R-square value is
0.363 and the R2 is 0.457 means 45.7% of the variation in dependant variable is
explained by the independent variable & also the standard error was also found to be
0.69594.This could be because the data points collected around the best fit line could
be scattered more & so the residual error is also large.

Another table of ANOVA in which F value is 4.873 which shows a good fit of the
model. The significance value is 0.002 which indicate the confidence level of the
entire project is around 99.8% which is also indicate a very good explanation of
dependent variables by independent variables.
1. The significant level pertaining to the cost is 0.065. This is low and so we can say
that cost of Bajaj bikes have a significant impact on customer satisfaction. Here hence
alternate hypothesis is accepted and null hypothesis is rejected.

2. The significant level pertaining to the cost is 0.477. This is high and so we can say
that service of Bajaj bikes have not a significant impact on customer satisfaction.
Here hence alternate hypothesis is rejected and null hypothesis is accepted.

3. The significant level pertaining to the cost is 0.784. This is high and so we can say
that efficiency of Bajaj bikes have not a significant impact on customer satisfaction.
Here hence alternate hypothesis is rejected and null hypothesis is accepted.

4. The significant level pertaining to the cost is 0.052. This is low and so we can say
that style & comfort of Bajaj bikes have a significant impact on customer satisfaction.
Here hence alternate hypothesis is accepted and null hypothesis is rejected.

5. The significant level pertaining to the cost is 0.475. This is high and so we can say
that performance of Bajaj bikes have not a significant impact on customer
satisfaction. Here hence alternate hypothesis is rejected and null hypothesis is
accepted.
 Findings & Managerial implications
The Automotive industry in India is one of the largest in the world and one of
the fastest growing globally and in that field Bajaj Auto ltd is a strongest player
who has 34% market share. So as like as all other industry it has to provide the
maximum satisfaction to its customer. The research carried for this shown that cost
and designing (style & comfort) are two major thing that provide maximum
satisfaction to the customer. The resale value and the service has the least
preference given by the customer for their satisfaction. It may due to lots of
unauthorized service centre that abundantly available in each part of a city. The
fuel efficiency of a Bajaj bike also has a great impedance on its customer
satisfaction. For this effect we may conclude our statement by mentioning the
increasing the crude oil price in global market. The research shows that price
perceptions directly influence satisfaction judgments as well as indirectly through
perceptions of price fairness. Results also indicated that consumers' vulnerability,
which is induced by a perceived demand-supply relationship and the urgency of need
from the consumers' side, had a negative effect on perceived price offer fairness.

Any business that fails to provide customer satisfaction will eventually fail. Much
research has been conducted on the satisfaction levels of certain products, and a
different approach is taken to ascertain the satisfaction levels with services and
specifically with customer contacts for any type of enterprise." Also Innovations in
technology and management practices have produced a distinct paradigm shift since
the days of Henry Ford.
Some suggestion from the above research that can improve the customer
satisfaction towards Bajaj Bikes:

1. Bajaj should introduce some more models having more engine power.
2. Bajaj should think about fuel efficiency in case of upper segment bikes.
3. Bajaj should give more importance towards the designing part of its motor bikes.
4. Maintenance cost and the availability of the spare parts should also be given due
importance.
5. Cheaper products(Motorcycles)should be introduced by the company so that it can
reach the middle class public.
 References

1. www.bajajauto.com

2. EBSCOhost

3. Indian Auto Industry, Indian Automobile Industry, Indian Car Industry, Indian Car
Manufacturer, Automobile Manufacturers In India

4. Term Papers on Customer satisfaction depending cost of product | Customer

satisfaction depending cost of product essays | AcaDemon