A Study On Customer Satisfaction Towards Honda Two Wheelers

A Study On Customer Satisfaction Towards Honda Two Wheelers
CONTENTS
Sl.No Chapter Page No
1 INTRODUCTION
2 COMPANY PROFILE
3 ORGNISTION STRUCTURE
4 SWOT ANALYSIS AND

INTERPRETATIONS
5 SUMMARY AND SUGGESTIONS
ANNEXURE:
 QUESTIONNAIRE
 BIBLIOGRAPHY
Sahyadri commercial management College Shimoga Page 1


CHAPTER – I
INTRODUCTION
INTRODUCTION
The two wheeler industry has been expanding rapidly. Gone are the days when
processing a two wheeler was seen as a luxury. Now a day it is viewed as a mere
necessity. Prior, sale of two wheelers was mainly confined to urban areas but lately in
rural areas the bicycles are being replaced by power driven two wheelers such as
scooters and motorcycles. Not only this, the industry has also customers ranging from
all demographic segments. It has been common that even school going children are
driving two wheelers. The women customers are also increasing due to increase in
women literacy and employment.
If getting a new customer is difficult, then retaining a current customer is more

difficult one and not only that it is estimated that the cost of attracting a new customer
is five times retaining the current customer. It requires a great deal of effort to induce
satisfied customer to switch away from their current preference. Thus customer
attitude is been given top priority in today‟s competitive world.
NEED FOR THE STUDY:
After globalizations, number of two wheeler markets have entered Indian Market.
New companies have been set up with foreign, specially Japanese Collaboration by
already established companies. Honda motors Japan has set up subsidiary company at
Gurgaon , India to offer state of the art Honda two wheelers to Indian makes Honda
motors with its wide product range has achieved a respectful market shone with
strong dealer network and excellent after sales services.
Even though there is waiting period for some products, some are available across the
shelf dealerships are upon not only at metros, but also at urban and semi urban areas.
This is to provide prompt after sales services .it has opened class of art show rooms
and work shops at all the places.

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
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.
OBJECTIVES OF THE STUDY
 To study the profile of Two wheeler Industry in India.

 To study the marketing activities of Honda Motors.
 To study the Dealership profile of Nagarahalli 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.
LIMITATIONS OF THE STUDY:
- The study is limited to Honda Motors Customers who have purchased or come
for service to M/s Sri Nagarahalli Hondaat Shimoga
- 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.

METHODOLOGY:
The study is conducted basing on Primary and Secondary Data
Primary data is collected by administering a structured questionnaire to customers

who visit the dealer for purchase and service. Data is also collected through personal
discussions with the dealer, sales and service staff and personal observation made
during sale and service.
Secondary data is obtained from company records, web site, published articles etc.
SAMPLING:
Convenient Sampling method is adopted for selecting the respondents. Care is taken
to cover customers of all types of products and age groups etc.


CHAPTER II
COMPANY PROFILE
HONDA MOTOR COMPANY LTD.
Honda has been the world's largest motorcycle manufacturer since 1959 as well as the
world's largest manufacturer of internal combustion engines measured by volume,
producing more than 14 million internal combustion engines each year. Honda
surpassed Nissan in 2001 to become the second-largest Japanese automobile
manufacturer As of August 2008, Honda surpassed Chrysler as the fourth largest
automobile manufacturer in the United States Honda is the sixth largest automobile
manufacturer in the world.
Honda was the first Japanese automobile manufacturer to release a dedicated luxury
brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses,
Honda also manufactures garden equipment, marine engines, personal watercraft and
power generators, amongst others. Since 1986, Honda has been involved with
artificial intelligence/robotics research and released their ASIMO robot in 2000. They
have also ventured into Aero space with the establishment of GE Honda Aero Engines
in 2004 and the Honda HA-420HondaJet, scheduled to be released in 2011. Honda
spends about 5% of its revenues into R&D.
History
From a young age, Honda's founder, Soichiro Honda (November 17, 1906 -August 5,
1991) had a great interest in automobiles. He then established the Honda Technical
Research Institute in Hamamatsu, Japan, to develop and produce small 2-cycle
motorbike engines. Calling upon 18,000 bicycle shop owners across Japan to take part
in revitalizing a nation torn apart bywar, Soichiro received enough capital to engineer
his first motorcycle, the Honda Cub. This marked the beginning of Honda Motor
Company, which would grow a short time later to be the world's largest manufacturer
of motorcycles by 1964.
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 the following 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.
 The joy of buying high quality products.
Motorcycles
Honda is the largest motorcycle manufacturer in Japan and has been since it started
production in 1955 At its peak in 1982, Honda manufactured almost 3 million
motorcycles annually. By 2006 this figure had reduced to around 550,000 but was still
higher than its three domestic competitors

During the 1960s, when it was a small manufacturer, Honda broke out of the Japanese
motorcycle market and began exporting to the U.S. Taking Honda‟s story as an
archetype of the smaller manufacturer entering a new market already occupied by
highly dominant competitors, the story of their market entry, and their subsequent
huge success in the U.S. and around the world, has been the subject of some academic
controversy. Competing explanations have been advanced to explain Honda‟s
strategy and the reasons for their success.
The first of these explanations was put forward when, in 1975, Boston Consulting
Group (BCG) was commissioned by the UK government to write a report explaining
why and how the British motorcycle industry had been out-competed by its Japanese
competitors. The report concluded that the Japanese firms, including Honda, had
sought a very high scale of production (they had made a large number of motorbikes)
in order to benefit from economies of scale and learning curve effects. It blamed the
decline of the British motorcycle industry on the failure of British managers to invest
enough in their businesses to profit from economies of scale and scope.
The second explanation was offered in 1984 by Richard Pascale, who had interviewed
the Honda executives responsible for the firm‟s entry into the U.S. market. As
opposed to the tightly focused strategy of low cost and high scale that BCG accredited
to Honda, Pascale found that their entry into the U.S. market was a story of
“miscalculation, serendipity, and organizational learning” – in other words, Hondas
success was due to the adaptability and hard work of its staff, rather than any long
term strategy. For example, Honda�s initial plan on entering the U.S. was to compete
in large motorcycles, around 300 cc. It was only when the team found that the
scooters they were using to get themselves around their U.S. base of San Francisco
attracted positive interest from consumers that they came up with the idea of selling
the Super cub.
Awards
2021
Hornet 2.0 : Bike of the year (upto 200cc) (Bike India Awards 2021)
Activa 6G: Best Innovation and Integrated Campaign- 2 Wheeler (CarAndBike
Awards 2021)

Activa 6G: Scooter of the Year (Jagran HiTech Awards)

Brand Honda : OEM of the year (Droom Pre-Owned Auto awards)
Activa 125 BSVI : Best Scooter of the Year (Jagran Hi-Tech)
Best Scooter of the Year (Exhibit Auto Tech Awards)
Best Scooter of the Year (Motorbeam)
Activa : Buyer‟s Choice Pre-Owned Scooter of the Year (Droom Pre-
Owned Auto awards)
Jury‟s choice Pre-Owned Scooter of the year (Droom Pre-
Owned Auto awards)
2020
Honda Joy Club: Best Loyalty Program (Customer fest award 2020)
CSR : Best CSR (Road Safety initiatives) (AutoCar)
Social Impact Award (Kalam Livable Planet Conclave)
2019
Africa Twin : Adventure Motorcycle of the year (
2018
GRAZIA : Viewer's choice scooter of the year (CNBC TV18 Overdrive Awards)
Scooter of the year (Motoring Awards 2018)
2011
"Indian Motorcycle of the Year 2011 (IMOTY)
Jury:BS Motoring , Bike India , BBC Top Gear , Overdrive , AutoBild India ."
Bike of the Year – CNBC TV18 Overdrive Awards 2011
Bike of the Year - Bloomberg/UTV Autocar Award 2011
Viewer‟s Choice Award: Bike of the Year - Bloomberg / UTV Autocar Awards 2011.
CB Twister
"The Most Awarded Motorcycle of the Year - 2011"
Bike of the Year - BS Motoring Award 2011 .

Bike of the Year upto 110CC – Bike India .
Motorcycle upto 110CC - NDTV Car & Bike Awards 2011.
Premium 100CC Motorcycle - Zigwheels Awards.
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards.
CB Unicorn Dazzler
Motorcycle upto 160CC – NDTV Car & Bike Awards 2011.
Sporty Motorcycle upto 180CC – Zigwheels Awards .
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards.
VFR 1200F
Superbike of the Year – TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
" Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011"
Motorsport
Honoured for 'Promoting 2Wheeler racing in India'
2010
Brand
" Most Reliable Brand
- Advance Technology

- Quality
By Apollo Auto India Best Brand Awards 2010"
Trusted Brand Award (Gold) for Two-wheeler: Readers' Digest.
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car & Bike Awards 2010.
CB1000R
Import Bike of the Year - AutoCar Awards 2010.
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award.
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheels.com
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheels.com
Activa Scooter Customers Satisfaction No.1 - CNBC TV18 - Auto Car "Auto
Awards 2008.
Brand

-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India "Best Brand Survey Awards 2008.
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (B.S. Motoring & auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (B.S. Motoring & Overdrive)
2004
Enter no Best Scootes of the Year (B S. Motoring & ICICI Bank, Overdrive
Magazine)
Fourth Quarter Results

Honda‟s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal
fourth quarter ended March 31, 2010 amounted to JPY 72.1 billion (USD 776
million), an increase of JPY 252.1 billion from the same period in 2009. Basic net
income attributable to Honda
Motor Co., Ltd. per common share for the quarter amounted to JPY 39.78 (USD
0.43), an increase of JPY 138.95 from the corresponding period last year. One Honda
American Depository Share represents one common share.
Consolidated net sales and other operating revenue (herein referred to as “revenue”)
for the quarter amounted to JPY 2,279.5 billion (USD 24,501 million), an increase of
27.8% from the same period in 2009, due primarily to increased revenue in all of the
business segments and currency translation effects. Honda estimates that had the
exchange rates remained the same from the corresponding period in 2009, revenue for
the quarter would have increased by approximately 25.4%.
Consolidated operating income for the quarter amounted to JPY 96.0 billion (USD
1,033million), an increase of JPY368.2 billion from the same period in 2009, due
primarily to increased profit attributable to increased revenue, reduction in vehicle
costs as a result of increased production and decreased SG&A expenses.
Consolidated income before income taxes and equity in income of affiliates for the
quarter amounted to JPY 93.5 billion (USD 1,006 million), an increase of JPY 392.2
billion from the same period in 2009.
Equity in income of affiliates amounted to JPY 23.8 billion (USD 257 million) for the
quarter, an increase of JPY 21.1 billion from the corresponding period last year.
Fiscal Year Results
Honda‟s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal
year ended March 31, 2010 totaled JPY 268.4 billion (USD 2,885 million), an
increase of 95.9%from the previous fiscal year. Basic net income attributable to
Honda Motor Co., Ltd. Per common share for the period amounted to JPY 147.91
(USD 1.59), an increase of JPY 72.41from the previous fiscal year.

Consolidated revenue for the period amounted to JPY 8,579.1 billion (USD 92,210
million), a decrease of 14.3% from the previous fiscal year, primarily due to
unfavorable currency translation effects and decreased revenue in the automobile
business. Honda estimates that had the exchange rate remained the same as the
previous fiscal year, revenue for the period would have decreased by approximately
7.5%.
Consolidated operating income for the period totaled JPY 363.7 billion (USD 3,910
million),an increase of 91.8%, due primarily to decreased SG&A expenses and R&D
expenses and continuing cost reduction efforts, despite decreased profit attributable to
decreased revenue ,the unfavorable impact of currency effects and the increase in
fixed costs per vehicle as a result of reduced production.
Racing
Honda has always played an important role in motor sports, believing it to be the
springboard for technological advancement.
It has also been an aggressive force in the endurance, motocross and trial races held
around the world. We, at Honda, are not allowing this momentum to let up, as we
pursue even greater achievements.
Honda has always loved racing, ever since Sochiro Honda took his company into
motorcycle competition, sometime in the 1950s. Hondas engineers have tested
themselves on the international stage, proving their technology to be the best in the
world. These technologies are tested in the extreme conditions of motorcycle racing,
to adapt them for use in vehicles that ply on roads today.
In the past, Honda has powered some of the all time great racers, including Redman,
Hail wood, Spencer, Gardner, Capirossi and Doohan, to 39 riders titles. Even today,
some of the greatest motorcycle racers, like Alex Baros, Max Biaggi, Nicky Hayden
ride on Honda bikes, at the races.

PRODUCT PROFILE
HONDA SP 125 DRUM CBS BS VI
Mileage 65 kmpl
Displacement 124 cc
Max Power 10.72 bhp @ 7,500 rpm
Max Torque 10.9 Nm @ 6,000 rpm
Braking Type Combined Braking System
Starting Kick and Self Start
ABS No
Speedometer Digital
HONDA ACTIVA 6G STD BS VI

Mileage 48 kmpl
Displacement 110 cc
Max Torque 8.84 Nm @ 5,500 rpm
ABS No
Speedometer Digital

HONDA DIO STD BS VI

Mileage 48 kmpl
Displacement 110 cc
Max Torque 9 Nm @ 4,750 rpm
ABS No
Speedometer Digital
HONDA H'NESS CB350 DLX PRO

Mileage 35 kmpl
Displacement 350 cc
Max Power 20.78 bhp @ 5500 rpm
Max Torque 30 Nm @ 3000 rpm
Braking Type Dual Channel ABS
ABS Yes
Speedometer Semi Digital
Range None Km/Charge Km/Charge
Charging Time None Kmph Hours
Top Speed None Hours Kmph

HONDA HORNET ABS STD
Mileage 42.3 kmpl

Displacement 191 cc
Max Torque 16.1 Nm @ 6000 rpm
Braking Type Single Channel ABS
ABS Yes
Speedometer Digital
HONDA CD 110 DREAM DLX

Mileage 76 kmpl
Displacement 109 cc

Braking Type Combi Braking System

Starting Self and Kick Start
ABS No
Speedometer Analogue
OVERVIEW OF
HONDA X BLADE STD
Mileage 50 kmpl
Displacement 163 cc
Braking Type Single Channel ABS
ABS Yes
Speedometer Digital

HONDA UNICORN 160 CC NEW STRIPES STD

Mileage 50 kmpl
Displacement 162 cc
Max Power None
Max Torque None
Braking Type None
ABS Yes
HONDA CB SHINE DRUM CBS (SP ED)

Mileage 60 kmpl
Displacement 124 cc


ABS Yes
HONDA ACTIVA 125 OBD 2 DRUM

Mileage 55 kmpl
Displacement 124 cc
Max Power 8.30 PS @ 6250 rpm
Braking Type Combi Braking System
Starting Self Start Only
ABS No
Speedometer Digital


CHAPTER III
ORGNISTION STRUCTURE
Organizational Structure
As is typical in publicly traded companies, Honda has both a Board
of Directors and a senior leadership team composed of several key
executives.
The head of Honda‟s Board of Directors is CEO & Director Toshihiro
Mibe. Under Mibe are eight members of the board who are responsible
for representing Honda‟s stockholders and ensuring the company meets
its legal obligations.
Junior to Honda‟s Board of Directors is the senior leadership team. These
people are responsible for managing certain aspects of the business. At
the time of writing, there are eight executive-level positions within
Honda. These are:
 CEO & Director
 Chief Financial Officer & Compliance Officer
 Chief Operating Officer & Director of Strategy
 Executive Officer for Electrification
 Executive Officer for Motorcycle Operations
 Executive Officer for Automobile Operations
 Head of China Operations
 Head of America Operations


INTRODUCTION
Satisfaction is a person‟s feelings of pleasure (or) is appointment resulting from

comparing a products, perceived performance in relation to his (or) her expectation.
Satisfaction is a function of perceived performance and expectations. If the

performance falls short of expectation, the customer is dissatisfied. If the
performance matches the expectations, the customer is satisfied. If the performance
exceeds expectations, the customer is highly satisfied (or) delighted.
Customer satisfaction is both a goal and a marketing tool. Companies that achieve
high customer satisfaction ratings make sure that their target market knows it.
Actual performance by the firm
Customer Satisfaction = ---------------------------------
Customer Expectations
1. CUSTOMER & HIS IMPORTANCE :-
The essence of the marketing concept is that organizations must adopt customer
oriented features and focus their attention of building programs, offering and
strategies that satisfy customer needs and wants. Many organizations maintain their
focus on operations or product or sales efforts and thereby ; get dislocated by
mistaking the means for the end. Successful marketing involves companywide
transformations in attitude beliefs and perceptions of the people in how they view
the customer. Deep commitment to the customer is what distinguishes successful
marketers from Laggards.
The excellent companies really close to their customers, other companies top about it,
excellent companies really close to their customers, other companies to about it,
excellent companies do it‟. The companies, which show extra ordinary concern for
the customer, include. American express, Mc donalds, Citibank, IBM who go to the
smallest dealers also “Never forget the customer‟s attitude is the hull mark of their
service strategy.

Hence Customers are :-
1. The most important people in any business.

2. They are not dependent of a business, But business is dependent on them.
3. They are not an interruption to own work, they are the purpose of it.
4. They are doing us favor when they come in, we are not doing them favor by
serving them.
5. They are part of our business, they are not outsiders.
6. They are not just statistic. The customers are human beings with flesh and
blood having feelings and emotions.
7. People come to us with their needs and wants. It is our job to fulfill them.
8. They are the lifeblood of every business without whom the door of the
business would have been closed.
9. Non customer functions in particular must be made customer oriented.
Customer needs and requirements should be tracked on regular basis.
2. CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends upon the offer performance in
relation to the buyer‟s expectations. Customer satisfaction can be defined as :-
Satisfaction is the level of a person‟s felt state resulting from comparing a product‟s
perceived performance in relation to the person‟s expectation‟s satisfaction level is a
function of the different between perceived performance and expectations some of the
successful business firms are aiming for total Customer Satisfaction which increase
customer loyalty towards the product or service offered by the firm.
3. IMPORTANCE OF CUSTOMER SATISFACTION
MISSION AND PURPOSE OF BUSINESS:
The need to satisfy customer for achieving success in any commercial enterprise is so
obvious, one wonder if there is any need to establish the importance of customer
satisfaction. However one often finds that what should be obvious everyone also
needs to be explained and establish.

The income of commercial enterprise is derived from the payment received for the
products and services supplied to its external customers. If there are no customers,
there is no income, there is no business. In other words, customers are the sole
reason for the existence of commercial establishments, as the function is extremely
important for the success of the organization, the senior management as well as the
leaders of other departments or Divisions should also realize the importance of
customers to the organization and for its growth. It is therefore no surprise that Peter
Drucket, the renowned management guru said “ to satisfy the customer is the mission
and purpose of every business :.
4. CUSTOMER SATISFACTION PROCESS
Companies seeking to win in today‟s market must track their customer‟s expectations
perceived company performance and customer satisfaction not only for them but for
their competitions as well.
Brand loyalty and Customers satisfaction on the other hand are almost synonymous
and their impact on market share is statistically varifiable. The relationship between
market share profitability as well as profitability and share holder value creation have
been the subject of considerable research over the years and the linkages have been
proven many times.
It has been found that some customers are, by native tendency, more likely to move
while others are not. Therefore even for some level of satisfaction or dissatisfaction,
some customer will remain with the brand they are loyal to while others will switch.
Simply because they are more prone to taking risks and more easily susceptible to the
blandishments of competitors and inherently more fickle. This can be represented in
four way matrix as given below.
Customer Classification by Satisfaction and Mobility
1. The Safe Customers are those who are satisfied and not likely to move.
2. The habitual switches are happy and still likely to switch.

3. The patient ones will stay on regardless but should not be taken for
granted. Their satisfaction can be improved profitably as they are
inherently less likely to switch..
Today‟s customers are global and have high degree of need for congrition,
recognition, approval and respect. So many companies believe that customer
satisfaction can make the company more profitable to some extent as
 It as a more process aimed at enhancing customer share.

 It builds goodwill in the market, which in turn generates additional traffic to
the outlet.
 It is a real experience and a rich insight is to customer‟s min to hit the bull‟s
eye with carefully designed marketing strategies
 A highly effective technique is to keep of buying habits, intentions, self image,
spending patterns, customer develops a sense of belonging in then and a soft
corner for the company itself.
 Higher customer retention index, customer lifetime value, loyalty and
satisfaction level increase transactions with the same customers again and
again.
 A highly effective system of communication helps in developing positive
attitude in customer mind about the company its offerings.
WHAT MARKETING SHOULD DO
 Companies should establish a separate relationship market to prepare,

implement and monitor their relationship marketing program.
 Company should not rely totally on technical people but employ relationship
managers who well equipped with marketing Communication and
interpersonal skills.
 An integrated marketing system is a pre-requisite for building relationship
with customers.
 Companies should continuously search for value building approaches through
a system of quality management review process, etc., because only by
exceeding customer expectations, marketers can build a value laden
relationship with customers.

 As said before to satisfy a customer and to retain customer relationship

marketing is important.
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction are :
a) Complaint & Suggestion system

b) Customer satisfaction survey
c) Ghost Shopping
d) Lost Customer analysis
a) Complaint & Suggestion system
A Customer‟ centered organization would make it easy for its Customers to deliver
suggestion and complaints. Some customer centered companies – P & G, General
Electric, Whirlpool established “Customer hot lines” with toll free 800 telephone
numbers to maximize the ease with which customers can enquire make suggestion, or
complaints. Their information flows provides these companies with many good ideas
and enable them to act more rapidly to resolve problems.
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction
and dissatisfaction by simply relaying on a complaint and suggestion system. Studies
show that customer are dissatisfied with one out of every four purchases and less than
5% of dissatisfied customers will complaint customer may feel that their complaints
are minor, and they will be made to feel stupid or that no remedy will be offered.
Most customers will by less or switch the supplier than complaint. The result is that
the company has needlessly lost customers.
Therefore, companies can‟t use complaint level as a measure of customer

satisfaction. Responsive companies obtain a direct measure of customer satisfaction
by conducting periodic surveys. They send questionnaire or make telephone calls to
random sample of their recent customers to find out how they feel about various
aspects of the company‟s performance.

Customer satisfaction can be measure in a number of ways. It can be measured

directly by asking “indicate how satisfied you are with service” on the following
scale, highly dissatisfied, indifferent satisfied, highly satisfied (Directly reported
satisfaction). Respondents can be asked as well as to rate how much they expected of
a certain attribute and also much. They experienced (desired dissatisfaction) still
another method to ask respondents to list any problems they had with the offer and to
list any improvements they could suggest (Problem analysis) finally, companies could
ask respondents to rate various elements of the offer in items of the importance of the
each of and how were the organization performed each element (important
performance ratings). Its last method helps the company to know if it is under
performing on important elements and over performing on relatively unimportant
elements.
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to

pose as potential buyers to report their finds on strong and weak points they
experienced in buying the company‟s and competitors products.
d). Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another
supplier to learn why this happened. When IBM loses a customer, they amount
through effort or learn where they failed is their price too high, their service deficient
their products unreliable and so on. Not only it is important to conduct exit interviews
but also to monitor the customer loss rate, which if its increasing clearly indicated
that the company is failing to satisfy customers.
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the company‟s performance
say delivery, we need to recognize that customers will vary in how they define food
delivery ; it could mean early delivery on time ; delivery order completeness, and so
on. Yet if the company had to sell out every element in detail customers would face
huge questionnaire.

Companies should also note that managers and sales persons could manipulate their
ratings on customer satisfaction. They can be especially nice to customers just before
the survey. They can also try excluding unhappy customer form being included in the
survey.
Some customers may want to express high dissatisfaction in order to receive more
concession.
E. Lost Customer Analysis.
Companies should contact who stopped buying or who have switch to other supplier
to learn why this happened. When IBM loses a customer, they amount through effort
or learn where they failed is their price too high, their service deficient their products
unreliable and so on. Not only it is important to conduct exit interviews but also to
monitor the customer loss rate, which if its increasing clearly indicated that the
company is failing to satisfy customer.
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the company‟s performance
say delivery, we need to recognize that customers will vary in how they define food
delivery; it could mean early delivery on time; delivery order completeness and so on.
Yet if the company had to sell out very element in detail customers would face huge
questionnaire.
Companies should also note that managers and sales persons could manipulate their
ratings on customer satisfaction. They can be especially nice to customers just before
the survey. They can also try excluding unhappy customers from being included in
the survey. Some customers may want to express high dissatisfaction in order to
receive more concession.
Observation on customer satisfaction
1. Customer satisfaction will be lower in industries where the industry offers

a homogenous product to a heterogeneous market. On the other hand.

Industries that supply a high quality homogenous product to homogenous

market will register high satisfaction.
2. Customer satisfaction is lower an industries where repeal buyer faces high
switching costs. They have to but from the supplier even through their
satisfaction is low.
3. Industries which depend upon repeat business generally, create a higher
level of customer satisfaction.
4. As the company increase its market share customer satisfaction call fall.
This is because more customers with heterogeneous demands are drawn
into buying a fairly homogenous product.
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction
or dissatisfaction. The customer will engage in post purchase actions and product
uses of interest to the marketers. The marketers job does not end when the product is
bought but continue into the post purchase period. The buyer‟s satisfaction is
function of the closeness between the buyer‟s product expectations the customer buts
the product again and talks favorably or unfavorably about the product to others.
Customers from their expectations on the basis of received. Messages from sellers,
friends and other information sources. If the seller exaggerates the benefits,
consumers will experience disconfirmed expectations, which lead to dissatisfaction.
The larger the gap between expectations and performance, the greater the consumer‟s
dissatisfaction.
Post Purchase Action
The Customer‟s satisfaction or dissatisfaction with the product will influence

subsequent behavior. If the customer is satisfied, he or she will exhibit a higher
probability of purchasing the product main. The satisfied customer will also tend to
say good things about the brand to others. Marketers lay „or best advertisements is
the satisfied customer :.

A dissatisfied consumer responds differently. The dissatisfied consumer will try to

reduce the dissolvance because a human being strives to establish internal harmony “
consistency or congruity among his opinions, knowledge and values.
Marketers should be aware of the full range of ways consumers handle

dissatisfaction. Consumers have a choice between taking and not taking any action.
If the former, they can take public action or private action. If the former, they can
take public action or private action. If the former, they can take public action or
private action. Public action includes complaining to the company going to lawyer or
complaining to other groups that might help the buyer gets satisfaction. Such as a
business private or government agencies or the buyer might simply stop buying the
product or warn friends. In all these cases the seller losses in having done a poor job
of satisfaction to the customer.
System for complaints handling & service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their
purchases about 25% of the time. But surprising finding is that only about 5%
complain. The other 95% either feels that it is not worth the effort to complain or that
they don‟t know how to whom to complain.
Of the 5% of customers who complain, only about 50% report a satisfactory problem
resolution. Yet they need to resolve a customer problem in a satisfactory manner is
critical where as on average a satisfied customers tells three people about a good
product experience dissatisfied customer groups to people. If each of them tells still
other people the number of exposed to bad work of mouth may grow exponentially.
PROFILE OF NAGARAHALLI HONDA
HISTORY :
SRI Nagarahalli Honda motors Authorised dealer of Honda Company in Shimoga

Operation in October 2007. which is now popularly known as Vishnu Honda?
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales
volume 250nos. (3000 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.
Nagarahalli Honda captured 25% of Visakhapatnam two and wheelers market

successfully standing with the challenges from competition. As of now Nagarahalli
Honda has a work force of 70 members, with an annual turnover of Rs. 12 crores.
They have also opened a separate service station for better customer care.
PROMOTIONAL ACTIVITIES OF NAGARAHALLI HONDA
The promotional activities adopted by Nagarahalli Hondamotors are:
1. Test Rides
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
9. Advertising in news paper
SERVICE DEPARTMENT
Head : Shiva
1.. 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc.
2. 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles.
3. Extended warranty also giving to all models. except twister
4. Free Checkup Camp. For every.sunday
5. Engine over hauling for all Post Warranty Vehicle.
6. We are giving warranty for fuel adultration for single time.

7. Total Workers are 42 members.
8 After Free Services 200 rupees Charged.
Spare Parts
Spare Parts Incharge – SIVA
Input : Every Month Purchase of of Spare Parts Company of Honda Motor

(Delhi)
Out put: Sols of Spare parts – work shop of Honda Show Room out side
Mechanics and Customers .
Total Spare Parts above 11,000 Parts.
Finance Level
1. The NAGARAHALLI HONDA Provides sum finance facility to the

customers. The finance facility Banks are
a. HDFC
b. Family Credit (Pvt)
c. Sriram Finance
d. fulletron
The finance lever provides interest rate Rs. 1per 100. The customer paid minimum
30% of the Vehicle Amount. The finance facility taken by the above 6000 people of
them.
Sales Team
Sales Manager :S.K..V CHANDARA SEKHAR There are four executives

monthly they are sold 400 vehicle. They provide 12% Interest rate. Incentive given
by company per vehicle 1000 to 1500 Rupees of them.
The demand is very more for Honda Bikes there are 50% of Bikes Purchase by spot
cash 50% Vehicle side Finance Purchase.
They are not giving any offer to vehicle some times company giving insurance offer.
More sales for shine.unicorn


CHAPTER - IV
SWOT ANALYSIS AND INTERPRETATIONS
SWOT Analysis
Strengths Weaknesses
1. Competence in engine manufacturing 1. Dependence on North America to

– company‟s core product generate most of the revenue
2. Diversified product portfolio 2. Low investments in research and
3. Dominance in motorcycle and engine development (R&D) leading to
industries leading to a high brand innovative products
awareness
4. Strong position in Asia‟s motorcycle
markets
Opportunities Threats
1. Increasing government regulations 1. Increased competition

2. Improving U.S. economy 2. Rising Japanese Yen exchange rates
3. Timing and frequency of new model 3. Natural disasters
releases
4. Low fuel prices are increasing the
demand for pickup trucks and SUVs

AGE
Number of
Age Group Respondents %
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table, we can infer that 43% of the two wheeler users are between 18 to 25
years of age and another 14% are between 36 to 45 years of age. 15% of the bike
users are between 26 to 45 years of age. 26%users are above 46 years of age.
Age Group Respondents
26
43 18-25
26-35
36-45
46 and above
14
15

EDUCATION
Number of
Qualification Respondents %
School Education. 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17% of the respondents are Graduates and 50% are Under Graduates. From this we
can infer that 67% of the bike users are under graduates or Graduates. 11% have only
school education. Only 22% are post graduates.
Education
11
22
School Education.
Under Graduate
Graduates
17 Post Graduates
50

FAMILY ANNUAL INCOME
Number of
Income Respondents %
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95% of the bike owners are having annual income less than
2 lakhs. In this 5% are having income between 2 lakhs to 5lakhs. Though this looks
un reliable, generally respondents do not reveal their real incomes. They have quoted
their incomes as per the Ration Cards they possess.
family annual income
0 0
34
Below 50 K
51 K - 1 Lakh
61 - 2 Lakhs
1 Lakh
2 Lakhs - 5 Lakhs
above 5 Lakhs

OCCUPATION
Number of
OCCUPATION Respondents %
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80% of the bike owners are students and 17% are buiness people. Only 3% are any
other.
Occupation
3
17
0
Student
Employee
Business
80 Any other

Duration of Usage of the Vehicle

Number of
Duration Respondents %
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37% of the vehicle owners are using the vehicle from less than a year. 17% are using
the vehicle since 5 years. 46% of the users are using a vehicle for a maximum of 5
years.
duration of usage of the vehicle
37
46
Less than 1 year
1 year to 2 years
2 years to 5 years
5 years to 10 years
17 abvoe 10 years

BRAND PATRONAGE
Number of
BRAND Respondents %
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
Activa and shine are the most popular models of Honda each contributing 23%. Next
popular is unicorn with 22%.67% of the two wheelers sold are either Activa Shine or
Unicorn.
Brand2Patronage
3 9
2 23 Activa
Dio
Aviator
Shine
Unicorn
22
Dazzler
13
Twister
Stunner
CBR
3
23

REASONS FOR CHOSING HONDA

Number of
REASON Respondents %
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model, the customers are influenced by the
price of the bike. Limited importance is given to Appearance of the vehicle.
Reasons for choosing honda

0 0
18
0
Price
Promotion
Appearance
Technology
Any other
82

INFLUENCER
Number of
Person Respondents %
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92% of the customers have decided to buy Honda Vehicle influenced by their friends.
4% are influenced by their family members and Self.
Influencer
0
4
4
Self
Family members
Friends
Any other
92

REASON FOR CHOSING THE DEALER

Number of
REASON Respondents %
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58% of the customers have brought the vehicle from the particular dealers because he
is alone dealer. 42% have preferred because the dealer is also a service dealer.
Schemes and finance facility have no impact on dealer choice.
Reasons for choosing the dealr respondents

0
0
0
42
Local Dealer
Service Dealer
58
Schemes
Finance Facility
Any other

SERVICE RATING
Number of
Rating Respondents %
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41% of the customers are not satisfied services of the dealer Sree Nagarahalli
Hondamotors. 30% as Good and 29% are average.
service rating
0
30
41 Excellent
Good
Average
Not Satisfied
29

COST OF SPARES & SERVICE

Number of
Rating Respondents %
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79% of the customers perceive the cost of service and spares slightly high. Only 6%
and 14% are felt that it is high and reasonable.
cost of spares &service respondents
14 6
High
Slightly high
Reasonable
Cheap
79

LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75%of the customers not satisfied with service of Vishnu Honda. They do not want to
get service from this dealers after free services.
25
Yes
No
75


CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
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 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 or tarnish the image of the company and the product
how ever good it may be.
The strength of Honda motors is its channel partners, and service availability every
where.
The findings of the study are summarized below:
 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.
 The dealer at Shimoga Nagarahalli Honda motors is rated high by the customers
for service and are not loyal to them for after free services are ove
 Cost of spares and service is slightly high.
SUGGESTIONS
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 to
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., Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership.

 Questionnaire
 Bibliography

Questionnaire
Name :
Town/Village:
1. Age ( Years) : a. 18-25 c. 35-45
b. 25-35 d.45 above
2. Qualification : a. Under Graduate
b. Graduate C. Post Graduate
d. Any Other
3.Family annual Income : a. below 50,000 b. 50,000 to 1,00,000
c. 1-2lakhs. d. 2-5lakhs. e. above five lakhs.
4.Occupation : a. Student b. Government Employee
C. Private Employee. d.Business e. Any Other (Specify)
5. What type of two wheeler do you own?
a. Scooter b. Motorbike c. Any Other(specify)…………………….
6. Since how long are you using the particular two wheeler ?
a. Less than 1 year b. 1-2 years c. 2-5years
d 5-10years e. Above 10 years
7. Specify the brand of two wheeler do you own ?
a. Activa b. Dio c. aviator d. shine
e.Dnicorn f.Dazzler g. twister h. Stunner i. CBR250

8. You preferred the particular brand because of
a. Price b. Promotion c. Appearance d. Technical Factors
e. Any Other (Specify)…………………………………..
9. Who influenced you to purchase the two wheeler ?
a.Self b.Family c. Friends d.Advertisement e. Any Other (Specify)
10. Why did you choose „Nagarahalli Honda.
a. Local dealer. b. Service dealer. c. Schemes
d. Finance availability. e. Any Other (Specify)………………………
11. Are you satisfied with the Vehicle ? a. Yes b. No
12. If No. The reason is
a. More petrol consumption/less Mileage. b. Less Pick Up
c. Non availability of spares d. Any other (Specify)………………………………..
13. How would you rate service offered by „Vishnu Honda., for your two wheeler ?
a. Excellent b. Good c. Average d. Not satisfied
14. How do you rate the cost of spares and service charges charged by „Nagarahalli
Honda
a. High b. Reasonable c .Competitive
15. Do you prefers to get your Vehicle serviced at Nagarahalli Honda, after free
services also.
a. Yes b. No.

BIBLIOGRAPHY
BIBLIOGRAPHY
Philip kotler- Principels of Marketing ,Prention-Hall of India. Pvt ltd New

Delhi(1999).
Jagdish N.Sheth Atul Parvatiyar –Relationship Marketing-A division of stage

publication New Delhi.(2000).
Philip Kotler- Marketing Management-– (In India, Bangladesh, Nepal).
Pearl , Jack & Robyn. Marketing Channels A Division of Holt, Rinehart &
Wiston(1978).
V.V.Rama Swamy,S.Namakumari – Marketing Management(Planning &

Implementation & Control)- Rajiv Beri for Macmillan Indian ltd .New Delhi(2002).
www.Honda2wheelers India,com.

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Sl.No Chapter Page No

4 SWOT ANALYSIS AND

Sahyadri commercial management College Shimoga Page 1

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If getting a new customer is difficult, then retaining a current customer is more

NEED FOR THE STUDY:

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OBJECTIVES OF THE STUDY

 To study the profile of Two wheeler Industry in India.

LIMITATIONS OF THE STUDY:

- Since a convenient sampling method is adopted, the sample may not be

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The study is conducted basing on Primary and Secondary Data

Primary data is collected by administering a structured questionnaire to customers

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HONDA MOTOR COMPANY LTD.

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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

Respect for the Individual

today and that, which will take us into the future.

The Three Joys

 The joy of manufacturing high quality products.

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Sahyadri commercial management College Shimoga Page 9

Activa 6G: Scooter of the Year (Jagran HiTech Awards)

"Indian Motorcycle of the Year 2011 (IMOTY)

Bike of the Year – CNBC TV18 Overdrive Awards 2011

Bike of the Year - Bloomberg/UTV Autocar Award 2011

"The Most Awarded Motorcycle of the Year - 2011"

Bike of the Year - BS Motoring Award 2011 .

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Bike of the Year upto 110CC – Bike India .

Motorcycle upto 110CC - NDTV Car & Bike Awards 2011.

Premium 100CC Motorcycle - Zigwheels Awards.

Motorcycle upto 160CC – NDTV Car & Bike Awards 2011.

Sporty Motorcycle upto 180CC – Zigwheels Awards .

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards.

Superbike of the Year – TopGear

Automotive Technology of the Year - Zigwheels Awards

" Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011"

Honoured for 'Promoting 2Wheeler racing in India'

" Most Reliable Brand

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By Apollo Auto India Best Brand Awards 2010"

Trusted Brand Award (Gold) for Two-wheeler: Readers' Digest.

Import Bike of the Year - AutoCar Awards 2010.

Performance Bike of the Year - CNBC TV 18 Overdrive Award.

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

Aviator Scooter of the Year - Zigwheels.com

CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheels.com

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-Well Made Bike 2008

-Advanced Technology 2008