CHAPTER I

INTRODUCTION

1
INTRODUCTION ABOUT THE INDUSTRY

India is the second largest producer and manufacturer of two-wheelers in the world. It stands
next only to Japan and China in terms of the number of two-wheelers produced and domestic
sales respectively. Indian two-wheeler industry has got spectacular growth in the last few
years. Indian two-wheeler industry had a small beginning in the early 50's. The Automobile
Products of India (API) started manufacturing scooters in the country. Bikes are a major
segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian
companies are among the largest two-wheeler manufacturers in the world. In the initial
stages, the scooter segment was dominated by API; it was later overtaken by Bajaj Auto.
Although various government and private enterprises entered the fray for scooters, the only
new player that has lasted till today is LML. The motorcycle segment was initially dominated
by Enfield 350cc bikes and Escorts 175cc bike. The two-wheeler market was opened to
foreign competition in the mid-80s. And the then market leaders - Escorts and Enfield - were
caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures.
With the availability of fuel efficient low power bikes, demand swelled, resulting in Hero
Honda - then the only producer of four stroke bikes (100cc category), gaining a top slot. The
first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero
Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. These
two players initially started with assembly of CKD kits, and later on progressed to indigenous
manufacturing. In the 90s the major growth for motorcycle segment was brought in by
Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years. The
industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new
entries and strictly controlled capacity expansion. The industry saw a sudden growth in the
80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn
vehicles in 1990. In 1990, the entire automobile industry saw a drastic fall in demand. This
resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn
vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and
FY94. Hero Honda showed a marginal decline in 1992.The reasons for recession in the sector
were the incessant rise in fuel prices, high input costs and reduced purchasing power due to
significant rise in general price level and credit crunch in consumer financing. Factors like
increased production in 1992, due to new entrants coupled with the recession in the industry
resulted in company either reporting losses or a fall in profits.

2
 Key players in the Two-wheeler Industry: There are many two-wheeler manufacturers in
India. Major players in the 2- wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj
Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS). The other key players in the
two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd
(KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic
Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Evolution of two wheeler in India

Two-wheeler segment is one of the most important components of the automobile sector that
has undergone significant changes due to shift in policy environment. The two-wheeler
industry has been in existence in the country since 1955. It consists of three segments viz.
scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of
two-wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-
04. This high figure itself is suggestive of the importance of the sector. In the initial years,
entry of firms, capacity expansion, choice of products including capacity mix and technology,
all critical areas of functioning of an industry, were effectively controlled by the State
machinery. The lapses in the system had invited fresh policy options that came into being in
late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices and Foreign
Exchange Regulation Act were aimed at regulating monopoly and foreign investment
respectively. This controlling mechanism over the industry resulted in: (a) several firms
operating below minimum scale of efficiency; (b) underutilization of capacity; and (c) usage
of outdated technology. Recognition of the damaging effects of licensing and fettering
policies led to initiation of reforms, which ultimately took a more prominent shape with the
introduction of the New Economic Policy(NEP)in1985.
However, the major set of reforms was launched in the year 1991 in response to the major
macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of
regulation and tight control to a more liberalized and competitive era. Two major results of
policy changes during these years in two-wheeler industry were that the, weaker players died
outgiving way to the new entrants and superior products and a sizeable increase in number of
brands entered the market that compelled the firms to compete on the basis of product
attributes. Finally, the two- wheeler industry in the country has been able to witness a
proliferation of brands with introduction of new technology as well as increase in number of
players. However, with various policy measures undertaken in order to increase the

3
competition, though the degree of concentration has been lessened over time, deregulation of
the industry has not really resulted in higher level of competition. There is a large untapped
market in semi-urban and rural areas of the country. Any strategic planning for the two-
wheeler industry needs to identify these markets with the help of available statistical
techniques. Potential markets can be identified as well as prioritized using these techniques
with the help of secondary data on socioeconomic parameters. For the two-wheeler industry,
it is also important to identify the target groups for various categories of motorcycles and
scooters. With the formal introduction of secondhand car market by the reputed car
manufacturers and easy loan availability for new as well as used cars, the two-wheeler
industry needs to upgrade its market information system to capture the new market and to
maintain its already existing markets. Availability of easy credit for two-wheelers in rural and
smaller urban areas also requires more focused attention. It is also imperative to initiate
measures to make the presence of Indian two-wheeler industry felt in the global market.
Adequate incentives for promoting exports and setting up of institutional mechanism such as
Automobile Export Promotion Council would be of great help for further surge in demand for
the Indian two-wheeler industry. National Council of Applied Economic Research (NCAER)
had forecast two-wheeler demand during the period 2002-03 through 2011-12. The forecasts
had been made using econometric technique along with inputs obtained from a primary
survey conducted at 14 prime cities in the country. Estimations were based on Panel
Regression, which takes into account both time series and cross section variation in data. A
panel data of 16 major states over a period of 5 years ending 1999 was used for the estimation
of parameters. The models considered a large number of macroeconomic, demographic and
socio-economic variables to arrive at the best estimations for different two-wheeler segments.
The projections have been made at all India and regional levels. Different scenarios have
been presented based on different assumptions regarding the demand drivers of the two-
wheeler industry. The most likely scenario assumed annual growth rate of Gross Domestic
Product (GDP) to be 5.5 per cent during 2002-03 and was anticipated to increase gradually to
7.5 per cent during 2012-13.

4
 CHAPTER II

COMPANY PROFILE

5
COMPANY PROFILE

Bajaj Auto is one of the largest manufacturers and exporters of two wheeler and three
wheelers in India. Bajaj is a very old Indian company and enjoys a traditional goodwill in the
market. Bajaj bikes and scooters have their own fan following. Bajaj bikes cover the market
with Bajaj Motor Cycles & Bajaj Scooters. Bajaj bikes address the market across these two
categories motorbikes & scooters. All Bajaj two wheelers run on petrol and have a decent
mileage. Bajaj motorbikes are popularly called, give great mileage & are fancied by the
young and speedy.

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation
Private Limited. It started off by selling imported two- and three wheelers in India. In 1959, it
obtained license from the Government of India to manufacture two- and three-wheelers and it
went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to
produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at
Waluj in Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single
financial year. In 1995, it rolled out its ten millionth vehicles and produced and sold 1 million
vehicles in a year.
Bajaj Auto is ranked as the world's fourth largest two- and three- wheeler manufacturer & the
Bajaj brand is well-known across several countries. Bajaj Auto has smartly introduced new
segments in the motorcycle market to take on its arch rival.

Bajaj bikes in India are real value for money, the best of service and quality at economic rate.
Bajaj bikes are great for its pleasure driving and mileage. On the other hand Bajaj scooter is
an economy vehicle, in the reach of common man, more so, anybody youngsters, adult, old
even ladies can safely ride this.

Bajaj Auto Limited

The Groups' principal activity is to manufacture two and three wheeler vehicles. Other
activities of the group include insurance and investment business. The Group operates in
three segments, which are Automotive, Insurance and Investment and Others. It has a
network of 498 dealers and over 1,500 service dealers and 162 exclusive three-wheeler
dealers spread across the country.

6
About Bajaj
The Bajaj Group is amongst the top 10 business houses in India. 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 groups flagship
company, Bajaj Auto, is ranked as the worlds fourth largest two- and three- wheeler
manufacturer and the Bajaj brand is well-known in over a dozen countries in Europe, Latin
America, the US and Asia. Founded in 1926, at the height of India's movement for
independence from the British, the group has an illustrious history. The integrity, dedication,
resourcefulness and determination to succeed which are characteristic of the group today, are
often traced back to its birth during those days of relentless devotion to a common cause.
Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi.
In fact, Gandhiji had adopted him as his son. This close relationship and his deep
involvement in the independence movement did not leave Jamnalal Bajaj with much time to
spend on his newly launched business venture. His son, Kamalnayan Bajaj, then 27, took
over the reins of business in 1942. He too was close to Gandhiji and it was only after
Independence in 1947, that he was able to give his full attention to the business. Kamalnayan
Bajaj not only consolidated the group, but also diversified into various manufacturing
activities. The present Chairman and Managing Director of the group, Rahul Bajaj, took
charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the
flagship company has gone up from Rs.72 million to Rs.46.16 billion (USD5 936 million), its
roduct portfolio has expanded from one to and the brand has found a global market. He is one
of Indias most distinguished business leaders and internationally respected for his business
acumen and entrepreneurial spirit.
Bajaj Pulsar is a motorcycle brand owned by Bajaj Auto in India. The two wheeler was
developed by the product engineering division of Bajaj Auto in association with motorcycle
designer Glynn Kerr Tokyo R&D. Currently there are four variants available -with engine
capacities of 135 cc, 150cc, 180cc and 220 cc. More than a million units of Pulsar were sold
by November 2005. With monthly sales of more than 48,000 units in June 2009, Pulsar is the
leader in the 150 cc segment in India with a market share of 43% Before the introduction of
the Pulsar, the Indian motorcycle market trend was towards fuel efficient, small capacity
motorcycles (that formed the 80-125 cc class). Bigger motorcycles with higher capacity
virtually did not exist (except for Enfield Bullet). The launch and success of Hero Honda
CBZ in 1999 showed that there was demand for performance bikes. Bajaj took the cue from
there on and launched the Pulsar twins in India on November 24, 2001. Since the introduction

7
and success of Bajaj Pulsar, Indian youth began expecting high power and other features from
affordable motorcycles. The project was faced with internal resistance, reservations by
Mckinsey and doubts on its effects on Bajaj's relation with Kawasaki. The project required
approximately 36 months for completion and cost Bajaj Rs 1 billion.
DTSi DTSi stands for Digital Twin Spark Ignition, a Bajaj Auto trademark. Bajaj Auto holds
an Indian patent for the DTSi technology. The Alfa Romeo Twin-Spark engines, the BMW
F650 Funduro which was sold in India from 1995 to 1997 also had a twin-spark plug
technology, and the Rotax motorcycle engines more recently Honda's iDSI Vehicle engines
use a similar arrangement of two spark-plugs. However very few small capacity engines did
eventually implement such a scheme in their production prototype.

Sangam Auto Sales, Thakurdwara - Palampur, Kangra H.P.

Sangam Auto Sales, a motorbike dealer is located at Thakurdwara Palampur in district

Kangra. Sangam Auto Sales is dealer of Bajaj Auto manufacturers which is one of the biggest
Motor Cycle manufacturers and have an excellent network of dealers throughout India in
general and also in Himachal Pradesh.

Bajaj Auto has committed to fulfil the needs of customers; as such an extensive network of
dealerships and authorized service centers to get top-notch sales and service experience. Bajaj
Auto has also recognized the different needs of the customers of high end bikes. Hence, to
cater these needs Bajaj Auto have established separate stores called as "Bajaj Probiking
Showrooms" at in the major cities across the country. The Kawasaki Bajaj Ninja is available
exclusively through Probiking Showrooms.

There are many Bajaj Dealers in Himachal Pradesh and the Sangam Auto Sales is one among
them and is equipped with a trained and dedicated team of sales and service staff to aims at
addressing the customer's needs quickly and conveniently.

Products:
1. Avenger
2. Discover
3. Pulsar
4. Platina
5. Ninja
Contact details:
Sangam Auto Sales Thakurdwara, Tehsil Palampur, District Kangra, Himachal Pradesh
176102, India. Phone No: 01894 -239238, 9817017038 E mail: d10331@baldealer.com

8
Timeline of new releases

1971 - three-wheeler goods carrier

1972 - Bajaj Chetek

1976 - Bajaj Super

1977 - Rear engine Auto rickshaw

1981 - Bajaj M-50

1986 - Bajaj M-80, Kawasaki Bajaj KB100

1990 - Bajaj Sunny

1994 - Bajaj Classic

1995 - Bajaj Super Excel

1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Auto rickshaw

1998 - Kawasaki Bajaj Caliber, Legend (India's first four-stroke scooter)

2000 - Bajaj Safire

2001 - Eliminator, Pulsar

2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar

2004 - Bajaj CT 100, New Bajaj Chetek 4-stroke with Wonder Gear, Bajaj Discover DTS-i

2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover

2006 - Bajaj Platina

2007 - Bajaj Pulsar-200

Scooters
Bajaj Sunny
Bajaj Chetak
Bajaj Cub
Bajaj Super
Bajaj Wave
Bajaj Legend

9
Motorcycles
Kawasaki Eliminator

Bajaj Pulsar

Bajaj Kawasaki Wind 125

Bajaj Boxer

Bajaj CT 100

Bajaj Platina

Bajaj Caliber

Bajaj Discover

Bajaj Avenger

Bajaj Pulsar 220 DTS-Fi

Upcoming Models
Bajaj Krystal

Bajaj Blade

Bajaj Sonic

Bajaj XCD String

New Image
The company, over the last decade has successfully changed its image from a scooter
manufacturer to a two wheeler manufacturer, product range ranging from Scooterettes to
Scooters to Motorcycle. Its real growth in numbers has come in the last 4 years after
successful introduction of a few models in the motorcycle segment. The company is headed
by Rahul Bajaj who is worth more than US$1.5 billion.

Company Details:

Founder Jamnalal Bajaj

Type Public

Year of Establishment 1926

Industry Automotive - Two & Three Wheelers

Business Group The Bajaj Group

Listings & its codes BSE Code: 500490; NSE - Code: BAJAJAUTO

10
Presence Distribution network covers 50 countries.
Dominant presence in Sri Lanka, Bangladesh, Columbia,
Guatemala, Peru, Egypt, Iran and Indonesia.

Joint Venture Kawasaki Heavy Industries of Japan

Registered & Head Office Akurdi , Pune 411035, India

Tel.: +(91)-(20)-27472851
Fax: +(91)-(20)-27473398

Works
Akurdi, Pune 411035

Bajaj Nagar, Waluj Aurangabad 431136

Chakan Industrial Area, Chakan, Pune 411501

E-mail rahulbajaj@bajajauto.co.in

Website www.bajajauto.com

KEY PERSONS:
Board of Directors
Rahul Bajaj Chairman

Madhur Bajaj Vice Chairman & Whole-Time Director

Rajiv Bajaj Managing Director

Sanjiv Bajaj Executive Director

D.S. Mehta Whole-Time Director

Kantikumar R. Podar, Shekhar Bajaj, D.J. Balaji Rao, Directors

J.N. Godrej, S.H. Khan, Mrs. Suman Kirloskar, Naresh
Chandra, Nanoo Pamnani, Manish Kejriwal, Niraj Bajaj

11
ABOUT THE STUDY
Customer satisfaction
Customer satisfaction, a business term, is a measure of how products and services supplied
by a company meet or surpass customer expectation. It is seen as a key performance indicator
within business and is part of the four of a Scorecard. In a competitive marketplace where
businesses compete for customers, customer satisfaction is seen as a key differentiator and
increasingly has become a key element of business strategy. There is a substantial body of
empirical literature that establishes the benefits of customer satisfaction for firms.
Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a
products perceived performance (or outcome) in relation to his or 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
dissatisfied. If the performance matches 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
favourably about the company and its products, pays less attention to competing brands and
is less sensitive to price, offers product or service 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 its 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 (for

12
example, by improving manufacturing processes or investing more on R&D). Also, the
company has many stakeholders, including employees, dealers, suppliers and stock holders.
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
it is trying to deliver a high level of customer satisfaction subject to delivering acceptable
levels of satisfaction to the other stakeholders, given its total resources.

Measuring customer satisfaction

Organizations need to retain existing customers while targeting non-customers. Measuring
customer satisfaction provides an indication of how successful the organization is at
providing products and/or services to the marketplace.Customer satisfaction is an abstract
concept and the actual manifestation of the state of satisfaction will vary from person to
person and product/service to product/service. The state of satisfaction depends on a number
of both psychological and physical variables which correlate with satisfaction behaviors such
as return and recommend rate. The level of satisfaction can also vary depending on other
factors the customer, such as other products against which the customer can compare the
organization's
products.
Improving Customer Satisfaction
Published standards exist to help organizations develop their current levels of customer
satisfaction. The International Customer Service Institute (TICSI) has released The
International Customer Service Standard (TICSS). TICSS enables organizations to focus their
attention on delivering excellence in the management of customer service, whilst at the same
time providing recognition of success through a 3rd Party registration scheme. TICSS focuses
an organizations attention on delivering increased customer satisfaction by helping the
organization through a Service Quality Model. TICSS Service Quality Model uses the 5 P's -
Policy, Processes, People, Premises, Product/Services, as well as performance measurement.
The implementation of a customer service standard should lead to higher levels of customer
satisfaction, which in turn influences customer retention and customer loyalty.

Customer Satisfaction a Critical Component of Profitability

Exceptional customer service results in greater customer retention, which in turn results in
higher profitability. Customer loyalty is a major contributor to sustainable profit growth. To
achieve success, you must make superior service second nature of your organization. A

13
seamless integration of all components in the service-profit chain employee satisfaction,
value creation, customer satisfaction, customer loyalty, and profit and growth links all the
critical dynamics of top customer service.
Customer Expectations
Customer is defined as anyone who receives that which is produced by the individual or
organization that has value. Customer expectations are continuously increasing. Brand loyalty
is a thing of the past. Customers seek out products and producers that are best able to satisfy
their requirements. A product does not need to be rated highest by customers on all
dimensions, only on those they think are important.

14
 CHAPTER III

REVIEW OF THE LITERATURE

15
Paula et-al(2006): Objective. To find out the satisfaction of clinical units with laboratory
services in a university hospital, to point out the most important problems and defects in
services, to carry out corrective actions, and thereafter to identify the possible changes in
satisfaction.

Setting and study participants. Senior physicians and nurses-in-charge of the clinical units
at Oulu University Hospital, Finland.

Design. Customer satisfaction survey using a questionnaire was carried out in 2001,
indicating the essential aspects of laboratory services. Customer-specific problems were
clarified, corrective actions were performed, and the survey was repeated in 2004.

Results. In 2001, the highest dissatisfaction rates were recorded for computerized test
requesting and reporting, turnaround times of tests, and the schedule of phlebotomy rounds.
The old laboratory information system was not amenable to major improvements, and it was
renewed in 200405. Several clinical units perceived turnaround times to be long, because
the tests were ordered as routine despite emergency needs. Instructions about stat requesting
were given to these units. However, no changes were evident in the satisfaction level in the
2004 survey.

Following negotiations with the clinics, phlebotomy rounds were re-scheduled. This resulted
in a distinct increase in satisfaction in 2004.

Conclusions. Satisfaction survey is a screening tool that identifies topics of dissatisfaction.

Without further clarifications, it is not possible to find out the specific problems of customers
and to undertake targeted corrective actions. Customer-specific corrections are rarely seen as
improvements in overall satisfaction rates.

Andaleeb et-al(2007): Concern over the quality of health care services in Bangladesh has led
to loss of faith in public and private hospitals, low utilization of public health facilities, and
increasing outflow of Bangladeshi patients to hospitals in neighbouring countries. Under the
circumstances, assessment of the country's quality of health care service has become
imperative, in which the patient's voice must begin to play a greater role. This study attempts
to identify the determinants of patient satisfaction with public, private and foreign hospitals.
A survey was conducted involving inpatients in public and private hospitals in Dhaka City

16
and patients who have experienced hospital services in a foreign country. Their views were
obtained through exit polls using probability and non-probability (for foreign hospital
patients) sampling procedures. Regression models were derived to identify key factors
influencing patient satisfaction in the different types of hospitals. Doctors service orientation,
a composite of 13 measures, is the most important factor explaining patient satisfaction.
Policy implications are discussed.

Geitonaa et-al(2008): Objective. This cross-sectional national survey aimed to examine

satisfaction of Greek households with specific aspects of medication use and their correlates.

Methods. Between November 2004 and February 2005, telephone interviews were used for
collecting information about socio-demographic and health-related characteristics in a
systematic sample of 1000 Greek households. Respondents were classified into three
categories: chronic or short-term prescribed medication use, occasional medication use and
no medication use during the 3 months preceding the survey. Satisfaction was assessed
through various aspects of medication use like physician's consultation, physician's response
to adverse events, consultation and advice by pharmacists, symptoms' resolution, route of
drug administration, drug tolerability and drug cost.

Results. The prescribed drugs' use in the 3 months preceding the survey interview was
36.9%; 28.6% for subjects under chronic treatment and 8.3% under short-term treatment.
During the same time period, 52.8% of the respondents reported the occasional self-use of
over the counter drugs for minor symptoms. A high prevalence of hypertension,
cardiovascular, musculoskeletal and endocrine disorders has been observed. In general,
respondents expressed a high degree of satisfaction with all aspects of medication use
examined, the only exception being costs. Age, area of residence, social insurance scheme
and self-reported health status were associated with specific aspects of patient satisfaction.

Conclusions. Patient satisfaction with the aspects of medication use examined seems to be
influenced by demographic and social factors; this points out to the necessity of taking into
account socio-cultural variations and the structure of the health-care system in policymaking.

Luis et-al(2009): Using panel data for 12 EU countries, we analyze the relationship between
self-reported housing satisfaction and residential mobility. Our results indicate the existence

17
of a positive link between the two variables and that housing satisfaction exerts a mediating
effect between residential characteristics and dwellers' mobility propensities. Some
interesting cross-country differences regarding the effect of other variables on mobility are
also observed.

Peter(2010): This paper provides a case study of the Tata Nano, a low-price car designed
primarily in and for the Indian market, and its implications for the developed industrial
markets. While the Nano is a classic disruptive innovation in an Indian context, this paper
argues that the car and its emulators have the potential to undermine the viability of the
European automotive industry whose business is premised on technological sophistication,
premium branding and high price. In an era of greater austerity, the value for money
segment is the one with global growth potential in emergent markets as well. The paper
concludes that policy makers in Europe will need to decide how to react to the rather different
vision of automobility offered by the Nano.

Miguel et-al(2012): The survival of agricultural marketing co-operatives depends on their

capability of satisfying and maintaining their base of farmer members. Hypotheses regarding
these two success factors are developed in neoclassical economics and transaction cost
economics. They are tested with a survey of 321 members of marketing co-operatives
specialising in fresh fruits and vegetables. Our results show support for both perspectives.
Price paid to farmers is important for their satisfaction with the co-operative. Farmers'
perceptions of transaction costs are even more important.

18
 CHAPTER IV

RESEARCH METHODOLOGY

19
OBJECTIVES OF THE STUDY
To measure the customer satisfaction towards Bajaj Pulsar with special reference to
Sangam Bajaj.
To find out the factors influencing customer to purchase Bajaj pulsar.
To find out the customer satisfaction towards free service given by the company.
To determine the company image on sales.

NEED OF THE STUDY

Customer is one for whom you satisfy a want or need for some of payment. The payment
may be money, time or goowill but there is some form of payment. Satisfaction is the level of
person felt state by comparing products perceived in relation to the persons expectations.
Satisfaction is the function of the difference between perceived performance and expectation.
If the performance falls short of expectation, the customer is not satisfied. If the performance
matches the expectation the customers are highly satisfied. If the performance is beyond his
expectations the customer is thrilled. Customer satisfaction is customers positive or negative
feeling about the value that was perceived as a result of using perticuler organisations
offering in specific used reaction to a series of use situation experience.

SCOPE OF THE STUDY

Scope of the study is limited to Palampur city only.

20
RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. The Research
Methodology includes the various methods and techniques for conducting a Research.
Marketing Research is the systematic design, collection, analysis and reporting of data and
finding relevant solution to a specific marketing situation or problem. D. Slesinger and
M.Stephenson in the encylopedia of Social Sciences define Research as the manipulation of
things, concepts or symbols for the purpose of generalizing to extend, correct or verify
knowledge, whether that knowledge aids in construction of theory or in the practice of an
art.

Research is, thus, an original contribution to the existing stock of knowledge making for its
advancement. The purpose of Research is to discover answers to the Questions through the
application of scientific procedures. Our project has a specified framework for collecting data
in an effective manner. Such framework is called Research Design. The research process
followed by us consists of following steps:

Research Design:-

Exploratory Research:-

1. Descriptive Research:-A type of conclusive research which has as its major objective
the description of something-usually market characteristics or functions. In other
words descriptive research is a research where in researcher has no control over
variable. He just presents the picture which has already studied.
2. Conclusion Oriented Research:-Research designed to assist the decision maker in
the situation. In other words it is a research when we give our own views about the
research.

Sample Design-Sampling can be defined as the section of some part of an aggregate or

totality on the basis of which judgement or an inference about aggregate or totality is made.
The sampling design helps in decision making in the following areas:-

a) Universe of the study-The universe comprises of two parts as theoretical universe

and accessible universe.

Theoretical universe- It includes all the people throughout the universe.

21
 I. Accessible universe- It includes people in Palampur region.

b) Sample frame-Sample frame refers from where the questionnaires are to be filled.
Our sample frame consists people of Palampur.
c) Sample size- Sample size is the number of elements to be included in a study.
Keeping in mind all the constraints 100 respondents were selected.
d) Sample unit- Sampling unit is the basic unit containing the elements of the universe
to be sampled. The sampling unit of our study is customers of Bajaj Pulsur.

Sampling Techniques- The sampling technique used is simple random sampling.

Methods of Data Collection- Research work is exploratory in nature. Information has been
collected from both Primary and Secondary data.

1. Primary sources- Primary data are those, which are collected are fresh and for the
first time, and thus happen to be original in character. Primary data has been collected
by conducting surveys through questionnaire, which include both open- ended and
close-ended questions and personal and telephonic interview.
2. Secondary sources- Secondary data are those which have already been collected by
someone else which already had been passed through the statistical process.
Secondary data has been collected through magazines, websites, newspapers and
journals.

Tools of Analysis-
To analyse the data obtained with the help of questionnaire, following tools were used.
1. Likert Scale : These consist of a number of statements which express either a
favourable or unfavourable attitude towards the given object to which the respondents
are asked to react. The respondent responds to in terms of several degrees of
satisfaction or dissatisfaction.
2. Weighted Average Score: This tool is used to calculate highest and lowest rank.
3. Tables: This is a tool to present the data in tabular form.
4. Percentage, Bar Graphs and Pie Charts: These tools were used for analysis of data.

22
LIMITATIONS OF THE STUDY

Due to constraints of time and resources, the study is likely to suffer from certain limitations.
Some of these are mentioned here under so that the findings of the study may be understood
in a proper perspective.

The limitations of the study are:

1. The research was carried out in a short period. Therefore the sample size and the
parameters were selected accordingly so as to finish the work within the given time
frame.
2. The information given by the respondents might be biased some of them might not be
interested to give correct information.
3. Study was limited to Palampur city.
4. The sample size limited to 100 customers of Bajaj Pulsur in Palampur City.
5. During the survey most of the respondents contacted had newly purchased the
motorcycle thus they could not respond accurately.
6. Some of the respondents of the survey were unwilling to share information.

23
 CHAPTER V

DATA ANALYSIS AND

INTERPRETATION

24
 Q1. Are you aware about the various series of bajaj pulsur motorbike do you own?

TABLE 5.1

Awareness level of various series of bajaj pulsur motorbyke

Response Total Number % of Response

Yes 51 85

No 9 15

Total 60 100

FIGURE 5.1

Awareness level of various series of bajaj pulsar motorbike

% of Response

15

Yes
No
85

Interpretation: Out of the 60 respondents, 85% respondents are aware of various series
of Bajaj pulsar motorbike and 15% of the respondents are not aware of various series of Bajaj
pulsar.

25
 Q2. If yes mention the series which you are aware?

TABLE 5.2

Awareness level of product series

Response Total Number % of Response

150cc 12 20

180cc 22 40

200cc 11 18.33

220cc 13 21.67

Total 60 100

FIGURE 5.2

Awareness level of product series

% of Response

21.67 20
150cc
180cc
18.33 200cc
40 220cc

Interpretation: Out of the 60 respondents, there are 20% respondents are aware about
150cc, 40% respondents are aware about 180cc, 18.33% are aware about 200cc and 21.67%
respondents are aware about 220cc of Bajaj series.

26
Q3. What was the source of information for the purchase of Bajaj pulsar?

TABLE 5.3

source of information for the purchase of Bajaj pulsar

Response Total Number % of Response

Family 9 15

Friends 29 48.33

Media 14 23.33

Dealers 8 13.34

Total 60 100

FIGURE 5.3

source of information for the purchase of Bajaj pulsar

% of Response

Dealers
13.34

Media
23.33
% of Response
Friends
48.33

Family
15

0 10 20 30 40 50 60

Interpretation: The above graph shows that 15% of the respondents got information from
their family, 48.33% from their friends, 23.33% from the media and 13.34% from the
dealers.

Q4. How long are you using Bajaj pulsar?

27
 TABLE 5.4

Duration of using the product

Response Total Number % of Response

Below 1 year 16 27.50

1 to 3 years 24 40

3 to 5 years 14 23.33

Above 5 years 6 9.17

Total 60 100

FIGURE 5.4

Duration of using the product

% of Response

9.17
Below 1 year 1 to 3 years 27.53 to 5 years
23.33

Above 5 years 40

Interpretation: It was found that 27.5% of the respondents using the product less than 1
year, 40% of the respondents using 1 to 3years, 23.33% of the respondent are using 3 to 5
years and 9.17% of the respondents are using more than 5 years.

28
Q5. Are you satisfied with the brand image?

TABLE 5.5

Brand image satisfaction level

Response Total Number % of Response

Satisfied 13 22.50

Neutral 5 7.50

Highly satisfied 34 56.67

Dissatisfied 8 13.33

Total 60 100

FIGURE 5.5

Brand image satisfaction level

Chart Title
56.67
60
50
40 22.5
30 13.33
20 7.5
% of Response
10
0

Interpretation: The above chart shows that 22.5% of the respondents are satisfied with the
brand image of the product, 7.5% respondents have no idea about brand image, 56.67% are
highly satisfied with the brand image and 13.33% of the respondents are dissatisfied with the
brand image.

29
Q6. Are you satisfied with the price?

TABLE 5.6

Price satisfaction level

Response Total Number % of Response

Highly satisfied 14 24.17

Satisfied 12 20.83

Neutral 7 10.83

Dissatisfied 27 44.17

Total 60 100

FIGURE 5.6

Price satisfaction level

% of Response

24.17

44.17
Highly satisfied Satisfied Neutral Dissatisfied
20.83

10.83

Interpretation: Out of the 60 respondents, 24.17% respondents are highly satisfied with the
price of the product, 20.83% respondents are satisfied with the price, 10.83% respondents
are neutral about price and 44.17% respondents are dissatisfied with the price.

Q7. Are you satisfied with the mileage?

TABLE 5.7

30
 Mileage satisfaction level

Response Total Number % of Response

Highly satisfied 23 39.17

Satisfied 18 29.17

Neutral 8 13.33

Dissatisfied 11 18.33

Total 60 100

FIGURE 5.7

Mileage satisfaction level

% of Response

40
35
30
25 39.17
20 29.17
15 18.33
10 13.33
5 % of Response
0

Interpretation: The above chart shows that 39.17% of the respondents are highly satisfied
with the mileage of the product, 29.17% respondents are satisfied, 13.33% respondents are
neutral about mileage and 18.33% respondents are dissatisfied with the mileage of the
product.

Q8. Are you satisfied with the popularity?

TABLE 5.8

31
 Popularity satisfaction level

Response Total Number % of Response

Highly satisfied 48 80

Satisfied 8 13.33

Neutral 0 0

Dissatisfied 4 6.67

Total 60 100

FIGURE 5.8

Popularity satisfaction level

% of Response

6.67 Highly satisfied

13.33
Satisfied
Neutral
80 Dissatisfied

Interpretation: The above chart shows that 80% of the respondents are highly satisfied with
the popularity of the product, 13.33% respondents are satisfied and 6.67% respondents are
dissatisfied with the popularity of the product.

Q9. Are you satisfied with the maintenance?

TABLE 5.9

Maintenance satisfaction level

32
 Response Total Number % of Response

Highly satisfied 21 35

Satisfied 17 28.33

Neutral 6 10

Dissatisfied 16 26.67

Total 60 100

FIGURE 5.9

Maintenance satisfaction level

% of Response

Dissatisfied 26.67

Neutral 10
% of Response
Satisfied 28.33

Highly satisfied 35

0 5 10 15 20 25 30 35 40

Interpretation: The graph shows that 35% of the respondents are highly satisfied with the
maintenance of the product, 28.33% of the respondents are satisfied, 10% are neutral and
26.67% are dissatisfied with the maintenance of the product.

Q10. Are you satisfied with the comfort?

TABLE 5.10

Comfort satisfaction level

33
 Response Total Number % of Response

Highly satisfied 44 73.33

Satisfied 7 10.83

Neutral 4 4.17

Dissatisfied 7 11.67

Total 60 100

FIGURE 5.10

Comfort satisfaction level

% of Response

11.67
4.17
10.83
Highly satisfied Satisfied Neutral Dissatisfied
73.33

Interpretation: It was found that 73.33% respondents are highly satisfied with the
comfortness of the product, 10.83% of the respondents are satisfied, 4.17% of the
respondents are neutral about comfortness and 11.67% of the respondents are dissatisfied
with the comfortness of the product.

Q11. Are you aware about providing the free services of your motorbike to the showroom?

TABLE 5.11

Awareness level of free services providing by the showroom

Response Total Number % of Response

34
 Yes 55 90.83

No 5 9.17

Total 60 100

FIGURE 5.11

Awareness level of free services providing by the showroom

% of Response

9.17

Yes
No

90.83

Interpretation: It was found that 90.83% of the customers are aware about free services
providing by the showroom and 9.17% of the respondents are unaware about the free
services.

35
 Q12. If yes how many services you can get?

TABLE 5.12

Services provided by the company

Response Total Number % of Response

Below 3 24 40

4 19 31.67

5 11 18.33

Above 5 6 10

Total 60 100

FIGURE 5.12

Services provided by the company

% of Response

10
Below 3
18.33 40
4
5
Above 5
31.67

Interpretation: 40% of the respondents said that they can get less than 3 services 31.67%
said 4 times, 18.33% said 5 times and 10% said more than 5 times they can get free services.

36
Q13. How much you satisfied with the free services given by them?
TABLE 5.13

Satisfaction level of free services

Response Total Number % of Response

Highly satisfied 34 57.50

Satisfied 15 30

Neutral 0 0

Dissatisfied 11 12.50

Total 60 100

FIGURE 5.13

Satisfaction level of free services

% of Response

12.5

Highly satisfied
30 Satisfied Neutral 57.5 Dissatisfied

Interpretation: It was found that 57.5% of the respondents are highly satisfied with the free
services given by them, 30% of the respondents are satisfied and 12.5% are dissatisfied with
the free services.

37
 CHAPTER VI

FINDINGS, CONCLUSION &

RECOMMENDATIONS

38
Findings

1. Majority of the respondents are aware about the various series of Bajaj pulsar
motorcycle.
2. Majority of the respondents are aware about the 180cc Bajaj pulsar.
3. Majority of the respondents have the sources of information are from their friends to
purchase the product.
4. Majority of the respondents are using the bike 1 to 3 years.
5. Majority of the respondents are highly satisfied with the brand image of the product.
6. Majority of the respondents are dissatisfied with the price.
7. Majority of the respondents are satisfied with the mileage.
8. Majority of the respondents are highly satisfied with the popularity of the product.
9. Majority of the respondents are highly satisfied with the maintenance of the product.
10. Majority of the respondents are highly satisfied with the comfortness.
11. Majority of the respondents are aware about the free services providing by the
showroom.
12. Majority of the respondents provided services less than 3 times.
13. Majority of the respondents are highly satisfied with the free services given by them.

Conclusion

From this research work done in Bajaj pulsar in, Palampur city. The respondents are highly
satisfied with the present Bajaj pulsar bike. The reason is because of their brand image and
style of the bike and the comfort and also the free services provided by them. But there are
few respondents who are not satisfied with the price. So the company should look on the
price also. When compared to all Bajaj bikes, Bajaj Pulsar is sold many. Because, the main
thing is, it is very familiar to all the people when compared with all other Bajaj bikes.

39
Recommendations
Respondents feel that the price is high and suggested that it should be brought down,
so that more people can purchase it.
Majority of the respondents are highly satisfied in driving the bike, so the company
shall maintain the same strategy.
Most of the respondents are very much aware of giving free services, so the company
should increase free services as much as possible.
Few respondents are much worried about the maintenance, because the cost of giving
it to service is very high when compared with the other bikes.
Respondents suggest that the company should take initiative in selling up more
number of authorized services centers in different locality of the city.
Few respondents feel that the free services should be done properly and it should not
be for namesake.

40