Customer Satisfaction on Post-Sales Service with Reference to Two-Wheeler Automobile Industry

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Customer Satisfaction on Post-Sales
Service with Reference to Two-Wheeler
Automobile Industry
S Saraswathi*

The key to success of automobile industry lies not only in having good products but also in being able to provide the customer with the level of service they desire. Because of increasing competitiveness in the Indian automobile industry, almost all automobile manufacturers have invested valuable resources on customer satisfaction as a tool to understand the needs and expectations of their customers. Increased presence of two-wheeler vehicles throughout the country has created a growing need for providing service infrastructures closer to the customers’ homes or offices. A study on customer satisfaction on post-sales service with reference to two-wheeler automobile industry was conducted in the twin cities of Hyderabad and Secunderabad. Primary data was collected from 100 customers who purchased the motorbikes of various two-wheeler companies. The study is presented under two heads: a) Part I and b) Part II. Part I outlines the perception of customers on post-sales service and Part II gives a ranking of respondents and satisfactory index on post-sales service of two-wheeler automobile industry.

Introduction
The automobile industry, which is one of the largest industries in India, is one of the key sectors of the Indian economy. This industry comprises automobile and auto component sectors and encompasses commercial vehicles, multi-utility vehicles, passenger two-wheelers, three-wheelers, tractors and related auto components. India is also being looked upon as the prime business destination for many global auto players. India is the world’s largest motorcycle manufacturer, the second largest two-wheeler and tractor manufacturer, the fifth largest commercial vehicle manufacturer and the fourth largest car market in Asia (the estimate was one million plus vehicles in 2004-05). The automobile industry maintained a steady annual growth rate of over 15% in the last four years. With the gradual liberalization of the automobile sector since 1991, the number of manufacturing facilities in India has grown progressively to 15 manufacturers of passenger cars and multi-utility vehicles, nine manufacturers of commercial vehicles, 14 manufacturers of two/three wheelers and 14 manufacturers of tractors. The automobile industry performance in the year 2005-06 showed encouraging results for all segments of the automobile industry.

Two-wheeler segment posted a steady growth of around 14% during 2005-06. The two-wheeler segment witnessed excellent sales with three leading players *

Senior Assistant Professor, Chaitanya Bharathi Institute of Technology (CBIT), Gandipet, Hyderabad, India. E-mail: Singisaraswathi@yahoo.co.uk

©
32 2008 The Icfai University Press.University Journal of Consumer Behavior, Vol. III, No. 2, 2008 The Icfai All Rights Reserved.

[Hero Honda Motors Ltd. (HHML), Bajaj Auto Ltd. (BAL) and TVS Motors Ltd. (TVS)] accounting for more than 90% of the total sales for the financial year 2006. Bajaj auto closed the year with an impressive 32% growth (y-o-y) growth. Hero Honda managed a reasonably good 14% growth while TVS motors clocked a decent growth of 19%. The demand continued to be strong and the analysts estimated that motorcycle sales would see a growth of 15 to 16% for the financial year 2007.

Post-Sales Service: Key to Growth
According to the many business gurus and many more successful companies, the key to success lies not only in having a good product, but also in being able to provide the customer with the level of service they desire. Customer service is defined as “a function of how well an organization meets the needs of its customers”. Post-sales service is a concern area for customers as their expectations on the overall quality continue to go higher. Moreover, the increasingly growing demand for after sales support and better services has compelled the manufacturers to focus and...
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