Certificate

This is to certify that Name Fathers name student of B.B.A-III, Rollno. has
completed her project report on the topic customer satisfaction towards Honda two
wheelers under my supervision during the academic year 2013-2014 in the partial
fulfillment of requirement for awarding the degree of Bachelors of Business
Administration by the University of Jammu.

To the best of my knowledge the work done by the student is original and will be of
valuable source for the scholars and organizations to carry advance research work.

5
 TABLE OF CONTENTS

Serial Chapter No Title Page No.

No
1 Chapter-1 Introduction

1.1 Topic
1.2 Company
2 Chapter-2

2.1 Objectives of Study

2.2 Scope of Study

3 Chapter-3 Research Methodology

3.1 Research Design

3.2 Sample Design

3.3 Research Instrument

3.4 Data Collection Techniques

3.5 Data Presentation

4 Chapter-4 Data Analysis & Interpretation

5 Chapter-5 Findings

6 Chapter-6 Limitations

7 Chapter-7 Conclusions & Recommendations

8 Chapter-8 Bibliography

9 Chapter-9 Annexure

6
CHAPTER 1
INTRODUCTION

7
 1.1 TOPIC
Satisfaction is a persons feelings of pleasure or disappointment resulting from
comparing a products perceived performance in relation to his/her expectations.
Whether the buyer is satisfied after purchase depends on the offers performance
in relation to the buyers expectations. If the performance falls short of the
expectations, the customer is satisfied. If the performance exceeds expectations
the customer is highly satisfied or delighted. A company would be wise to
measure customer satisfaction regularly because one key to customer retention is
customer satisfaction. A highly satisfied customer generally stays loyal longer,
buys more as the company introduces new products and upgrades existing
products, talks favorably about the company and its products, pays less attention
to competing brands and is less sensitive to price, offers product or services ideas
to the company, and costs less to serve than new customers because transactions
are routine. When customers rate their satisfaction with an element of the
companys performance- say delivery. It could mean early delivery on-time
delivery order completeness and so on .The company must also realize that two
customers can report being highly satisfied for different reasons One may be
easily satisfied most of the time and the other might be hard to please but was
pleased on this occasion. A number of methods exist to measure customer
satisfaction. Periodic surveys can track customer satisfaction directly.
Respondents can also be asked additional questions to measure repurchase
intention and the likelihood or willingness to recommend the company and brand
to others Companies that do achieve high customer satisfaction ratings make sure
their target market knows it. For customer centered companies, customer
satisfaction is both a goal and a marketing tool. Although the customer-centered
firm seeks to create high customer satisfaction, that is not ultimate goal. If the
company increases customer satisfaction by lowering its price or increasing its
services, the result may be lower profits. The company might be able to increase
its profitability by means other than increased satisfaction. Also, the company
has many stake holders, including employees, dealers, suppliers, and
stockholders. Spending more to increase customer satisfaction might divert funds
from increasing the satisfaction of other partners. Ultimately, the company must
operate on the philosophy that is trying to deliver a high level of customer

8
 satisfaction subject to delivering acceptable level of satisfaction to the other
stakeholder, given its total resources.
1.2 COMPANY

The two wheeler industry has been going steadily over the years all over the world.
India is not an exception for that. Today India is the second largest manufactures of
two wheelers in the world. It stands next only to Japan and China in terms of number
of two wheelers produced and sold. Until 1990 geared scooters dominated the two
wheelers market so much so that their sales equaled the combined sales of Motor
cycles and Mopeds. Today the customer preferences have shifted from geared
scooters to motorcycles and also to an extent to the premium end scooters. With rising
fuel cost and more recently stringent emission norms imposed by the government,
there is a distinct consumer preference for high efficiency. The Honda story is the
story of one man, Soichiro Honda, and his unparalleled achievement of bringing
motor cycles to the masses. Soichiro Honda was a racer, a businessman, and a
manufacturer. But most of all he was a dreamer. He dreamed of a better way of
making piston rings, founded a small company, and began production. He dreamed of
giving people everywhere an economical form of transportation, and began producing
small motorcycles, including one built in 1949 called the D-Type Dream. He also
loved racing too. So his company built bigger and faster machines, two, four, five and
six-cylinder race bikes and won the Isle of Man. Honda Motor Company is by far the
world's biggest motorcycle maker. Honda's first motorcycle was born out of necessity
in immediate post World War II Japan, where public transportation was desperately
overcrowded and gasoline severely restricted. Unique practices create unique
organizations.

Honda was established upon the fundamental belief in the value of each
individual. Based on our philosophy, we respect independent spirit and freedom,
equality and mutual trust of human beings who work for or come in contact with our
company. As such our management policies focus on developing and enhancing the
essential characteristics that every individual possesses - capacity to think, reason, and
most importantly - the ability to dream. Being the largest producer of 2-wheelers and
one of the most admired companies in the world definitely thrills us. But what thrills
our associates most is the 'Joy of Creating', one of our missions at Honda, which

9
promotes working for our own happiness. If you have a passion for 2-wheelers and
possess a challenging spirit, your abilities are more important to us rather than which
university you passed from.

India will be the biggest global market for Honda's two-wheeler business by 2015
before eventually accounting for 30 per cent of its overall market share. At present,
this is 13 per cent but the company is going flat out with new product launches as part
of an aggressive growth strategy. The 110cc Dream Yuga motorcycle, unveiled at the
Auto Expo here on Thursday, will roll out this year for the mass market, a segment in
which Honda's former partner, the Hero group, rules the roost with the Splendour and
Passion brands.

Philosophy

HMSI operates on a principle, which is followed worldwide by all Honda companies.

Maintaining a global viewpoint, we are dedicated to supplying products of the highest
quality, yet at a reasonable price for worldwide customer satisfaction. Honda's
philosophy is based on the company's guiding principle and advocates 2 fundamental
beliefs:

Respect for the Individual

Honda recognizes and respects individual differences. The respect for individual
stems from thefollowing three points:

Initiative

Equality

Trusts

It is the contribution from each individual in the company that has made our company
what it is today and that, which will take us into the future.

The Three Joys

The joy of manufacturing high quality products.

The joy of selling high quality products.

10
The joy of buying high quality products.

Mass market pricing

The Yuga is expected to be priced competitively at around Rs 45,000, which could
give the company the much needed momentum in its motorcycle business. The other
launches included a new 110cc Dio scooter as well as the larger CBR150R and 250R
bikes. Officials said Honda R&D would now work closely with the Manesar
operations of HMSI (Honda Motorcycle & Scooter India), which would facilitate
faster product launches in the coming years. In addition, the company will increase
the number of its zonal offices and training centres keeping in mind the growing
demand from smaller towns and the need to be closer to this critical buyer base.
Clearly, Honda is determined to make up the lost numbers ceded to the Hero group,
which works out to over five million units annually. The revised strategy will call for
an aggressive play in the pricing segment while offering top quality products.

Global share
India will, in the process, take over from Indonesia and Vietnam as Honda's
biggest two-wheeler market over the next five years. As for the bigger goal of 30 per
cent share in its global business, Honda's annual two-wheeler volumes here would
have to be in the region of 10 million units annually. Observers believe this could
become a reality by 2020. At present, over four million units are in place from its
three units in Manesar (the largest with 1.6 million), the recently commissioned
Rajasthan plant and the newly identified site in Karnataka (with capacities of 1.2
million units each). The balance six million bikes and scooters, in that case, will have
to be generated from new facilities even as reports are already doing the rounds that
Honda is looking at options in the western and southern regions post-2014.

Honda Motorcycle and Scooter India, Private Limited (HMSI) is the wholly
owned Indian subsidiary of Honda Motor Company, Limited, Japan. Founded in
1999, it was the fourth Honda automotive venture in India, after Kinetic Honda Motor
Ltd and Hero Honda Honda Siel Cars India.

Honda is the worlds largest manufacturer of two Wheelers, Recognized the world
over as the symbol of Honda two wheelers, the Wings arrived in India as Honda

11
Motorcycle and Scooter India Pvt. Ltd. (HMSI ), a 100% subsidiary of Honda Motor
Company Ltd., Japan, in 1999. Since its establishment in 1999 at Manesar, District
Gurgaon, Haryana.

Vehicles

Motorcycles Scooters

Unicorn 160 Aviator

Shine Activa

CBF125 Stunner Dio

CB Twister Honda CD110

Dream.

Dream Yuga

CBR250R

CBR150R

CB Shine

Dream NEO

CB Trigger

Honda Livo

12
PROFILE OF DIAMOND HONDA

HISTORY

Diamond Honda motors Authorised dealer of Honda Company in Jammu. Operation

in april 2010 which is now popularly known as Diamond Honda. From Monthly Sale
of 25 Two wheelers initially it has reached a monthly sales volume 45nos. (540 per
annum). This spectacular growth is mainly due to aggressive, clear headed
management and with sheer hard work of every staff member and above all-out
standing customer support Diamond Honda captured 25% of Jammu two and
wheelers market successfully standing with the challenges from competition. As of
now Diamond Honda.has a work force of 54 members, with an annual turnover of
Rs.3.2 crores. They have also opened a separate service station for better customer
care.

PROMOTIONAL ACTIVITIES OF DIAMOND HONDA

The promotional activities adopted by Diamond Honda motors are:

1.TestRides

2.Exchange Melas

3.Mileage Contest

4.Loan Melas

5.Harding & Wall Paintings

6.Sponsoring youth Events.

7.Financing in the spot

8.Distributing pamphlets

13
9.Advertising in newspaper

HONDA SWOT ANALYSIS

Below mentioned is the SWOT analysis of Honda company.

STRENGHTS

High and powerful research and development R&D

Innovation

Best market share leadership

Strong and powerful brand equity

One major strength is the revolutionary

engine technology with the help of which Honda is gaining success day by day

WEAKNESSES

Cost structure of Honda is high as compare to other automobile manufactures

Apart from Nissan & Toyota, Honda requires privileged purchase deposit

In truck line, Honda company is not offering strong products and proposals

Honda focus more on international deposits as compare to other manufactures

OPPORTUNITIES

Honda has the best opportunity to use its R&D in producing cars according to
the needs and demands of their customer.

Emerging market is one of the opportunity for this company

Fuel efficiency is now a days termed as one of the best opportunity which can
results in the best productivity for the company.

Alliances are the best opportunities for Honda company.

Honda can increase its production by focusing on sales and research

They can gain more popularity by doing better research and development

THREATS

14
 One of the major threat is the economic slowdown

All the external changes for instances taxes, politics as well as government are
the major threats for Honda company

Another threats is the lower cost competitors

Oil prices are contributing a lot towards the loss of Honda company

Substitute products are the major threats for the Honda company

CHAPTER 2
15
 OBJECTIVES AND SCOPE

NEED FOR STUDY

There is a need to study to efforts put in by the Company, Dealers and Service
network to study the extent to which customers are satisfied with the product, service
and allied services etc. Hence it is proposed to study the Customer Satisfaction levels

16
of Honda Customers with respect to the product performance, after sales service and
other allied services like finance facility, availability of spares and accessories etc.

2.1 OBJECTIVES OF STUDY

To understand customer attitude towards Honda.

To study the marketing activities of Honda Motors.

To study the Dealership profile of Diamond Honda.

To study the customer handling practices prior to sale, during sale and after sale and
assesses the satisfaction levels of customers.

To offer suggestion for improving the customer satisfaction

2.2 SCOPE OF THE STUDY:

The scope is confirmed only to examine the Customer Satisfaction with reference to
Honda two-wheelers and to find possible remedies to counteract their competition.

17
 CHAPTER 3

RESEARCH METHODOLOGY

18
Research Methodology is an essential aspect of any project or research. It enables the
researches look at the problem in a systematic, meaningful and orderly way.
Methodology comprises the sources of data, selection of data, various designs and
techniques used for analyzing the data.

3.1 DATA COLLECTION TECHNIQUES

Primary Data Collection: -The primary data are collected through survey method.
Survey method is undertaken to find the customer satisfaction and opinion. A survey
was conducted among the people of Jammu City by the aid of well-structured
questionnaire. The population for the study consists of people who are riding Honda
two wheelers in Jammu City.

Secondary Data Collection: - Secondary data will consist of different literatures like
books which are published, articles, internet, and the companys websites.

Research approach: Survey method

Research instrument: Questionnaire
Contact method: Personal contact
Data analysis: percentage analysis
Sampling unit: Customers of Honda two wheelers.
Sample size: 60
Sampling method: Convenience sampling method

19
 3.2 SAMPLE DESIGN

Sample Size:

The sampling size includes male and female users from different occupation, age. The
sampling size was restricted to 60 because of the time constrains.

Sampling Area:

The sampling area for the study is Gangyal, Jammu

Sample Frame

1. Customers visiting showrooms for servicing their motocycles

2. College parking and markets

Sampling technique:

Here, convenient sampling technique has been adopted for collecting the primary
data.

Statistical tools
I have used some charts (Pie chart, column chart, cylinder chart, cone chart)

CHAPTER 4
20
 DATA ANALYSES AND
INTERPRETATION

Q1) To which age group do you belong?

Age group No of respondents Percentage

18-25 37 61.67%

26-35 18 30%

21
 36-45 3 5%

46 and above 2 3.33%

Total 60 100

Percentage

30% 18-25
62%
26-35
36-45
46 and above
5%

3%

It shows the age wise classification of all respondents i.e 61.67% are between 18-25,

30% are between 26-35,

5% are between 36-45 and 3.33% are above 45 years of age

Q2) what is your occupation?

Occupation No of respondents Percentage

Students 31 51.67%

Business men 13 21.67%

Professionals 1 1.67%

22
Working professionals 5 8.33%

Employees 8 13.33

Others b 2 3.33

Total 60 100%

Percentage

3%
13%
students
8%
bussiness men
2% 52%
professionals
working professionals
22%
employees
others

It reveals the occupation of wise classification of all respondents.

With 52% being students, 22% belong to business class, 13% are employees, 8%
working professionals, 3% others

Q3).what is your monthly income?

Monthly income No of respondents Percentage

Less than 5000 4 6.67%

5000-10000 14 23.33%

10000-15000 20 33.33%

Above 15000 22 36.67%

Total 60 100%

23
 Percentage

7%

37% 23% less than 5000

5001-10000
10001-15000
above 15000

33%

It reveals the monthly income of all the respondents those owing and not owing a
two-wheeler.

With 37% earning above 15000, 33% earn between 10000-15000,

23% have monthly income between 5000-10000 and 7 % earn less than 5000

Q4) How do you come to know about the Hondas?

Medium No. of respondents Percentage

Television 10 16.67%

Newspaper 10 16.67%

Family 12 20%

Friends 20 33.33%

Dealers 8 13.33%

Total 60 100%

24
 25

20

existing users
15
friends
print
10 20
newspaper

12 television
5 10 10
8

0
television newspaper family friends dealers

It reveals the main source of information to purchase Honda two-wheelers

33% came to know from their friends,

20% from their family,

16% read it in the newspapers, and 16% saw the adv on television while 13% came to
know about the product from the dealers

Q5) which one product of Honda you like the most?

Product No of respondents Percentage

Not any 2 3.33%

Bikes 17 28.33%

Scooty 41 68.33%

total 60 100

25
 45
40
35
30 scooty
25 bikes
41
20 not any
15
10 17

5
2
0
not any bikes scooty

It reveals the interest of respondents in two main categories of hondas two wheelers

With 68% showing their liking in scooties

While the remaining 28% liked bikes

And 3% cant decide

Q6) What do you feel about the quality of the Hondas products?

Opinion No of respondents Percentage

Very poor 0 0%

Poor 0 0%

Average 5 8.33%

Good 30 50%

Excellent 25 41.67%

Total 60 100%

26
 35

30

25
excellent
20 good
average
15 30
poor
25
10 very poor

5
5
0
very poor poor average good excellent

It reveals how the Honda users rate the overall quality of their product

25% rate the quality as excellent

50% rating the quality as good, 8% are rating the quality as average and no one could
find the quality of their two-wheeler poor or very poor

Q7) How much you are willing to spend on Hondas two-wheelers?

Amount No of respondents percentage

Upto 70,000 38 63.33%

10,000 to 1,50,000 15 25%

1,50,000 and above 7 11.66%

Total 60 100%

27
 40

35

30

25 1,50,000 and above

20 38 1,00,000 to 1,50,000

15 upto 70,000

10 15
5 7

0
upto 70,000 1,00,000 to 1,50,000 and
1,50,000 above

It reveals the overall expenditure of the Honda two-wheelers users

With 63% are willing the spend upto 70000

25% would spend between 100000 to 150000

And 12% will spend above 150000

Q8) How much comfortable you feel while driving Hondas two-
wheelers?
Opinion No of respondents Percentage

uncomfortable 3 5%

Comfortable 34 56.66%

Highly comfortable 23 38.33

total 60 100%

28
 percentage

5%

38%
uncomfortable
comfortable
highly comfortable
57%

It reveals the comfort levels of riders

57% feel riding the two-wheeler is comfortable

38% rate the riding experience as highly comfortable

And 5% find it uncomfortable

Q9) Does Diamond Hondas provide you with test ride services?

Opinion No of respondents Percentage

No 15 25%

Cant say 8 13.33%

Yes 37 61.66%

Total 60 100%

29
 percentage

25%

no
can't say
yes
62% 13%

It reveals the test ride services provided by the Diamonds Honda

With 62% of the respondents being aware

25% denying any such service exists, while 13% are not sure if they opt for a test ride
service

Q10) Have you been provided, the after sale services from Diamonds
Honda?
Opinion No of respondents Percentage

No 5 8.33%

Cant say 0 0%

Yes 55 91.66

Total 60 100%

30
 percentage
0%
8%

no
can't say
yes
92%

It reveals the after sale services provided by the Diamonds Honda

92% respondents have been provided with the after sale services

And 8% said no

11) Are you satisfied with customer care services?

Opinion No of respondents Percentage

Dissatisfied 11 18.33%

Partially satisfied 31 51.66%

Satisfied 18 30%

Total 60 100%

31
 percentage

18%
30%

dissatisfied
partially satisfied
satisfied

52%

It reveals the satisfaction level towards the customer care services at Diamond
Hondas

30% of the respondents seem satisfied with the customer care services

52% of the respondents are partially satisfied

And remaining 18% seem somewhat unsatisfied

Q12) What would you like to rate the Hondas in comparison with Hero,
Bajaj, Yamaha, TVS etc?
Opinion No of respondents Percentage

Very poor 0 0%

Poor 0 0%

Average 5 8.33%

Good 30 50%

Excellent 25 41.67%

Total 60 100%

32
 35

30

25
excellent
20 good

15 30 average
25 poor
10
very poor

5
5
0
very poor poor average good excellent

It reveals the overall comparison of Hondas with other competitors as narrated by the
current users

42% rated the Hondas excellent, 50% rated with good,

And 8% found with average when asked to compare

Q13) Did the current product give you enough reason to say with it?

Opinion No of respondents Percentage

No 9 15%

Cant say 3 5%

Yes 48 80%

Total 60 100%

33
 percentage

15%

5%
no
can't say
yes

80%

It reveals the satisfaction of the respondents towards their current two-wheeler

As 80% seemed satisfied and would stay with their product

While 15% are looking for a change and rest 5% cant decide and need more time.

Q14) Would you recommend others to purchase the Honda products from
Diamond Hondas?
Opinion No of respondents Percentage

No 8 13.33%

Maybe 15 25%

Yes 37 61.66%

Total 60 100%

34
 percentage

13%

no

25% maybe
yes
62%

It reveals the no of respondents willing to recommend Hondas to others

When asked 62% of the respondents said yes

And 13% said no while the remaining 25% could not decide

Q15).Are you satisfied with the after sale service done in Diamonds
Honda?

Opinion No of respondents percentage

No 9 15%
Cant say 6 10%

Yes 45 75%
Total 60 100%

35
 percentage

15%

10% no
can't say
yes

75%

It reveals the customer satisfaction towards the services provided by the Diamond
Hondas

With 75% satisfied customers

And 10% unsatisfied ones also 15% of the respondents are not still sure

CHAPTER 5
FINDINGS

36
 Majority of the Honda customers are in the age group of 18 to 25 years.
Majority of them are under graduates.
Honda two wheeler customers are middle class and upper middle class.
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa, Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage, easy
maintenance, superior technology etc
Customers buy Honda influenced by their friends.
Customers normally prefer local dealers and service dealers for buying a
vehicle.

37
 The dealer at Jammu Diamond Honda motors is rated high by the customers
for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high.

38
CHAPTER 6
LIMITATIONS

LIMITATIONS OF THE STUDY

39
 During the survey most of the respondents contacted, had newly purchased
Honda two wheeler, thus they could not responds accurately.
The study is limited to Honda Motors Customers who have purchased or come
for service to Diamond Honda at Jammu.
Since a convenient sampling method is adopted, the sample may not be
representing all types of customers.
As the study is conducted for a limited period and hence it may not be
exhaustive
Many of the respondents may not have given the correct information due to
personal bias.

The time period of the study was not sufficient to measure the consumers
response effectively and reach to a more valid conclusion.

Chapter7

40
 Conclusions and Recommendations

Conclusions

Honda is a major player in Two wheeler market. In India almost every second motor
cycle sold is from Honda. It is has many award to its credit. How strong the brand
may be, every organization has to strive to improve customer satisfaction. With

41
increasing competition and customer expectations, Customer Satisfaction is the key to
success of any organization. Dealers play a very important role in the marketing of
any product. Their role is vital mainly in the case of consumer durables in general and
automobiles in particular. Unlike majority of consumer durables, automobiles need
periodic maintenance. Two wheelers have a peculiar feature as they are used by
common man who hardly has any knowledge of the functioning or repairing of the
vehicle, dealers role is very important. Dealers can enhance the image of the
company and the product however good it may be. The strength of Honda motors is
its channel partners, and service availability every where

42
 Recommendations

Regular availability of all models should be ensured. Efforts have to be taken to

ensure no stock outs for Activa, Unicorn and Shine. Dealer has to put efforts to
improve quality of after sales service as majority opined that they would not prefer the
dealer after free services. Dealer and Company should ensure availability of flagship
brand Activa. Due to non availability, majority of the prospective customers are
shifting to other company brands. Customers are suspecting the dealers role in
sticking to booking schedule. Efforts should be taken to ensure transparency in
booking. Customer feedback system after sale and service would improve the image
of the dealer. Dealer has to tie up with banks to provide finance at competitive interest
rates. Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer i.e., Regancy Honda Dealer as well as the
company has to put all efforts to enhance the image of the brand as well as the
dealership.

43
BIBLIOGRAPHY

44
45
ANNEXURE

46