Theoretical Background of Consumer Satisfaction
Theoretical Background of Consumer Satisfaction
Theoretical Background of Consumer Satisfaction
INTRODUCTION
Then the CEO found out that its leading competitors attended a 90% customer satisfaction score.
He was further dismayed when he learned that this competitor was aiming to reach a 95%
satisfaction score.Although the customer centered firm seeks to create high customer
satisfaction, its main goal is not to maximize customer satisfaction. If the company increases
customer satisfaction by lowering its prices 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 example, by improving manufacturing processes are investing more in R & B),
also the company has many stake holders including employers, 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 philosophy that it is
trying to deliver faction to other stake holders within the constraints of its total resources.
When we talk about customer satisfaction, we talk about creativity. Creativity allows us to
handle or diffuse problems at hand or later on in the process of conducting the everyday
business. We talk about how, or rather what, does the organization have to do to gain not
only the sale but also the loyalty of the customer. We want to know the payoff of the transaction both in the short and long term. We want to know what our customers want.
We want to know if our customers are satisfied. Satisfaction, of course, means that what we
delivered to a customer met the customers approval. We want to know if customers are
delighted and willing to comeback, and so on.
Fleiss and Feldman present examples of that delightful-ness in their writings. Fleiss has written
about Ben and Jerrys ice cream and Feldman has discussed excellence in a cab ride. As
important as delightfulness is, some of us minimize it, or even totally disregard it. At this point,
we fail. Some of the issues that will guarantee failure in sales, satisfaction, and loyalty are:
Level 1.
Expectations are very simple and take the form of assumptions, must have, or take it for
granted
Level 2.
Expectations are a step higher than that of level 1 and they require some form of satisfaction
through meeting the requirements and/or specifications
Level 3.
Expectations are much higher than for levels 1 and 2.Level 3 requires some kind of
delightfulness or a service that is so good that it attracts me to it
Brand image
Hide links within definitions Show links within definitions. Impression in the consumers' mind
of a brand's total personality (real and imaginary qualities and shortcomings). Brand image is
developed over time through advertising campaigns with a consistent theme, and is authenticated
through the consumers' direct experience. See also corporate image
at
the
individual
consumer
level.
This
acknowledges
the
highly
individual nature of the evaluation of products and services in many categories. Furthermore,
it permits an exploration of value structures across existing consumer segments or the
development of new segments based on the components of the value equation.
4
composed
identifiable
tangible
of
three
(and
parts.
replicable)
benefits
to
the
One
part
features
purchaser,
is
due
of
the
thus
to
the
brand
impacting
physical
and
that
delivers
purchase
choice.
readily
specific,
We
call
these the tangible product features. The second part is due to some perceived
intrinsic
image
value
associated
transferred
responsibility,
impacting
to
the
consistent
purchase
with
the
brand
name
purchaser,
trust,
longevity
performance,
choice.
We refer
and
to
so
this
due
in
forth
as
to
the
(i.e.
the
such
things
as
marketplace,
the
brand's
the
social
intangibles),
and
equity. The
third
component is the price/cost of the product. Thus, the total value (or utility) of
a product or service is a function of
features,
In
addition,
loyalty.
we
That
believe
is,
if
that
a
brand's
particular
value
brand
is
directly
maintains
related
to
customer
significantly
higher
perception of value to a consumer than any other brand in the category, that
consumer
will
consistently
purchase
that
brand
and
consistently
recommend
differentiated
in
terms
of
both
tangible
and
intrinsic
features,
price
becomes
Brand
Purchase /repurchase
Value
Recommend
Product
Bran
d
Price
Featured
We observe that people tend to trade off price against the combined bundle of tangible product
features and brand equity in order to optimize total utility or total value.
We also note that the intrinsic part of a brand's value, brand equity, may be positive or negative,
meaning that a brand name can be used to increase overall utility of a choice, or may detract from
the overall utility of a choice.
The estimate of brand equity is relative to the other brands in the measured
competitive
often
set. Therefore,
recommend
brand,
category.
or
a
This
that
to
the
obtain
study
dummy
brand
provides
the
include
name,
base
an
estimate
of
either
an
whichever
is
price
point
for
absolute
unbranded
most
brand
product,
appropriate
estimating
equity we
brand
store
for
the
equity
in
Over 35 years above PETER DRUCKER observed that a companys first task is to create
customers. But todays customers faces a vast vary of product and brand choices, prices and
suppliers.
2. Buys more as the company introduces new products and upgrade existing products.
4. Pays less attention to competing brands and advertising and is less sensitive to price.
6. Costs less to serve than new customers because transactions are reutilized.
Thus a company would be wise to measure customer satisfaction regularly. The company could
phone recent buyers and inquire how many are highly satisfied, satisfied, indifferent and
dissatisfied.
Consumer Satisfaction
Today in the consumer driven economy, all firms are engaged in a rat race to attract customers
and build a long-term relationship with their loyal customers. The key to customers loyalty is
through customer satisfaction. A satisfied customer will act as a spoke person of the companys
product, and bring in more buyers. There is the Pareto principle or the 80/20 rules; it says 80
percent of one thing comes from 20 percent of another. That is to say a small percentage of loyal
customers will lend a large weight to the companys sales.
So marketers have to ensure customers value satisfaction. For this they have to ensure:
Relationships are built to offer lifetime customer value to enable the consumer to
All the efforts of the marketers at trying to understand buying motives, organizing buying
behavior and working out suitable promotional strategy to suit the consumer behavior are to
ensure consumer satisfaction. In todays competitive environment, where companies are adopting
various methods to whom the prospective consumers, marketers have to make all
efforts to understand all the complexities which go into the buying behavior and frame marketing
programs suitable to the target market.When we talk about customer satisfaction, we talk about
creativity. Creativity allows us to handle or diffuse problems at hand or later on in the process of
conducting the everyday business. We talk about how, or rather what, does the organization have
to do to gain not only the sale but also the loyalty of the customer. We want to know the payoff
of the trans-action both in the short and long term. We want to know what our customers want.
We want to know if our customers are satisfied. Satisfaction, of course, means that what we
delivered to a customer met the customers approval. We want to know if customers are
delighted and willing to comeback, and so on.
Here are the top six reasons why customer satisfaction is so important:
10
2.This study help Micromax to recognize the factor which is most satisfied and which factor
have more dissatisfaction influencing the consumes to buy the Micromax Mobile
11
CHAPTER 2
Background
Micromax Informatics Limited is one of the leading consumer electronics company in India, and
the 10th largest mobile phone player in the world. Over the past decade, Micromax has pioneered
the democratisation of technology in India - by offering affordable innovations through their
product offerings and removing barriers for large scale adoption of advanced technologies.
Micromax is currently the 2nd largest smartphone company in India. Micromax is a brand which
is close to the heart of the youth, and celebrates the vibrancies of life and empowerment.
Products
Micromax products have become an extension of the Indian youth's lifestyle and dynamism. The
company has many firsts to its credit when it comes to the mobile handset market; including the
30-day battery backup, Dual SIM Dual Standby phones, QWERTY keypads, universal remote
control mobile phones & first quad-core budget smart phone. The brand's product portfolio
embraces more than 60 models today, ranging from feature rich, dual-SIM phones, 3G Android
smartphones, tablets, LED televisions and data cards.
Micromax sells around 2.3 million Mobility Devices every month, with a presence in more than
560 districts through 1, 25,000 retail outlets in India.
12
In 2010, Micromax entered the tablet computer market with the Funbook series.Micromax
launched its first eight-core flagship smartphone, Canvas Knight A350, in January 2014 in
Russia. In the same year, Micromax launched the Android One smartphone, Canvas A1. In
November 2014, Micromax partnered with Cyanogen Inc. to provide Cyanogen-based
smartphones in India, under the brand name YU.
On June 17, 2015, Micromax launched Micromax Canvas Sliver 5, which it claimed was the
slimmest telephone in the world. While most of Micromax's smartphones run the Android OS,
the company also markets smartphones that operate Microsoft's Windows Phone 8.1. The
company is an official Windows Phone 8.1 hardware partner; it launched two Windows Phone
handsets, the Micromax Canvas Win W092 and the Micromax Canvas Win W121, in June 2014.
Network
With sales presence across India and global presence in Russia and SAARC markets, the Indian
brand is reaching out to the global frontier, with innovative products that challenge the status
quo.
Vision
To be amongst the top 5 mobile device brands in the world.
Mission
We will adapt and innovate to provide unique consumer experiences, based on:
13
Insightful analytics
Win-win partnerships
World-class capabilities
Core values
Customer-firstPutting
the
customer
first
when
taking
decisions
youth and celebrates the vibrancies of life and empowerment. Products: Micromax products have
become an extension of the Indian youths lifestyle and dynamism. The company has many firsts
to its credit when it comes to the mobile handset market including the 30-day battery backup,
Dual SIM Dual Standby phones, QWERTY keypads, universal remote control mobile phones,
first quad-core budget smart phone etc. The brands product portfolio embraces more than 60
models today, ranging from feature rich, dual SIM phones, 3G Android smartphones, tablets,
LED televisions and data cards. Micromax sells around 2.3 million Mobility Devices every
month, with a presence in more than 560 districts through 1, 25,000 retail outlets in India.
Network & reach: With sales presence across India and global presence in Russia and SAARC
markets, the Indian brand is reaching out to the global frontier with innovative products that
challenge the status quo that Innovation comes with a price.
History
Micromax was incorporated as Micromax Informatics Ltd. on 29 March 2000. It started selling
mobile telephones in 2008, focusing on low pricing to compete with international brands.
Micromax's co-founder Rahul Sharma once saw a public call office being powered by a truck
battery because of freqent power cuts in its locale. It prompted him to launch a feature telephone
with an extended battery life. Micromax launched X1i, its first telephone with a month-long
battery back-up. In 2014, Micromax's sales exceeded those of Samsung to become the mobile
telephone manufacturer shipping the most telephones in one quarter in India. On 24 January
2014, Micromax became the first Indian mobile company to start sales in Russia.
15
Promotion:
With a 360 degree advertising (media, internet, TV and print media)and marketing strategy
sketched out, the company has an optimistic outlook for the telecom consumer space. Currently
present in more than40,000 stores across the country, the company plans to have an aggressive
market incursion to reach out to its customers through70,000 operational store in the coming year.
After building a strong presence in the rural market, where the prominence of both subscribers
and operators is rapidly increasing, Micromax is now progressively moving towards establishing
its foothold in the competitive urban towns as well. With young enthusiasts as its anchor,
Micromax Informatics Limited has created a niche for itself in the telecommunication industry.
Micromax ventured into the telecommunication industry with an end-to-end solution of Fixed
Wireless Devices and Wireless Data Cards
.In the year 2008, after delivering upon the technology of fixed wireless- powering desired
products, the company forayed into one of the most predominant genres of telecommunication
Mobile handsets. Since then Micromax has received commendable response for its unique and
interesting handsets.
Retaining customers
Micromax considers 'After Sales Service' as a key differentiator for Micromax products. In order
to deliver prompt and easily accessible service, Micromax India has set up a wide spread network
of company owned as well as Authorized Service Centers to serviceits customers. The Micromax
Service Plazas, as the Company owned Service Centres are called, are a first in the industry.
16
To satisfy the needs of its Home Appliance customers, Micromax has set up state-of-the-art Home
Appliance Service Centres in 19 cities that are equipped with latest testing andmeasuring
equipments for servicing only Home Appliance products.Speed, Smile, Sure is the motto for
Micromax Service, as the Company seeks to satisfymore and more of its customers with prompt
and accurate service. The company adheresto a turnaround time of 24 hours within the city where
the Micromax Service Centre is
located. A Service Helpline number 30308282 gives access to Micromax Servicethroughout
the country. Micromax India organizes a Free Service Camp on an All India basis, every year, for
proactively reaching out to customers and servicing their Micromax products
CHAPTER 3
RESEARCH METHODOLOGY
17
experimental
research
that
is
essential
in
most
medical
trial
studies (a) are not feasible for many political and marketing purposes and (b) would be of limited
value in such cases even if they were feasible
RESEARCH VARIABLES:
Variables are things that we measure, control, or manipulate in research. They differ in many
respects, most notably in the role they are given in our research and in the type of measures that can
be applied to them. Independent variables are those that are manipulated whereas dependent
variables are only measured or registered. The terms dependent and independent variable apply
mostly to experimental research, where some variables are manipulated, and in this sense they are
independent from the initial reaction patterns, features, intentions, etc. of the subjects. Some other
18
RESEARCH DESIGN
Problem Formulation:
This
refer
to
transferring
of
the
management
management problem into a research problem. The management was to gauge the behavior of
consumer in respect of mobile marke
Research Method:
19
It involves choosing either experimental or non-experimental research. This research was nonexperimental
Research Design:
It is the specification of the methods and procedures for acquiring he information needed. It is
overall operational pattern or framework of the project that stimulates what information is to be
collected,
from
which
sourceand by what procedure. The three types of design used are exploratory,descriptive
and
causal for this research the descriptive design was used. This is because it is marked by the prior
formulation of specific research questions. It hasa preplanned and structure design. For
descriptive study proposed data analysis and project output are critical aspects. It was decided
that the users of various mobile companies would be used as the primary source of data
ADVANTAGES
The
subject
is
being
observed
in
completely
natural
and
unchanged
natural
worth testing quantitatively. Quantitative experiments are often expensive and timeconsuming so it is often good sense to get an idea of what hypotheses are worth testing.
Limitations
DATA COLLECTION
As the data collection has two phases
a) Primary data
b) Secondary data
PRIMARY DATA
Primary data will be collected by using QUESTIONNAIRS because it is effective and useful . A
questionnaire consists of a number of questions in definite order . It will be given to respondents and
they will fill it.
SECONDARY DATA
Some related data for research will be get some other sources like book and internet . This data is being
used to conceptualize the research.
21
In the present research study primary data collection method has been used .
SAMPLE DESIGN
It refers to a well knit for obtaining a sample from the area under the study known as Universe or
Population . it refers to the technique that the researcher adopts the modest operandi of taking the
sample.
SAMPLE UNIT
In the present study , the samples has been taken from the various units :
Near by locality.
MDU Campus
SAMPLING TECHNIQUES
In this project of research , the units from above mentioned sub areas were selected on the
basis of random sampling method.
Random sampling is also known as probability sampling. Under this sampling design every item
of the universe has an eqyal chance of inclusion in the sample.
SAMPLE SIZE
22
Sample size means the number of sampling unit selected from the population for the purpose of
investigation. The citizens of kalyan city are taken up as the universe in which the research will
be conducted.
CHAPTER 4
DATA ANALYSIS
Percentage test
23
11%
22%
44%
priority outlet
dealer
grey market
others
22%
24
16
14
12
10
8
6
4
2
0
60
50
40
30
20
10
0
Series 1
25
5
4.5
4
3.5
3
2.5
Series 1
2
1.5
1
0.5
0
highly satisfied
satisfied
not satisfied
Q.5. Are you satisfied with Audio output of micromax mobile Phone
5
4.5
4
3.5
3
2.5
Series 1
2
1.5
1
0.5
0
High satisfied
Satisfied
Not satisfied
12
10
Series 1
0
high satisfied
satisfied
Not satisified
12
10
8
6
Series 1
4
2
0
high satisfied
satisfied
Not satisfied
Q.8. Are you satisfied with Camera/video quality micromax mobile Phone
27
5
4.5
4
3.5
3
2.5
Series 1
2
1.5
1
0.5
0
High satisfied
satisfied
Not satisfied
Series 1
2
1.5
1
0.5
0
highly satisfied
satisfied
not satisfied
5
4.5
4
3.5
3
2.5
Series 1
2
1.5
1
0.5
0
highly satisfied
satisfied
not satisfied
Q.11. Are you satisfied with Battery backup of micromax mobile Phone
5
4.5
4
3.5
3
2.5
Series 1
2
1.5
1
0.5
0
highly satisfied
satisfied
Not satisfied
29
Q .12. Are you satisfied with services provided by micromax mobile Phone
5
4.5
4
3.5
3
2.5
Series 1
2
1.5
1
0.5
0
Highly satisfied
satisfied
Not satisfied
Q.13. Are you satisfied with Brand image of micromax mobile Phone
30
4.5
3.5
2.5
Series 1
1.5
0.5
0
High satisfied
satisfied
31
Not satisfied
5
4.5
4
3.5
3
2.5
Series 1
2
1.5
1
0.5
0
high satisfied
satisfied
not satisfied
Q.15. Are you fully aware all the Features of micromax mobile Phone
32
28%
YES
NO
72%
CHAPTER 5
1. Among the total 50 respondents, 75% percent of the respondents were male while remaining
25% percent of the respondents were female.
2. From the study undertaken, out of the total number of respondents are falling under the age
group of 17-50+ years.
3. From the study undertaken, majority of the respondents, (40 Percent) are graduates and (40
Percent) are post graduate.
4. From the survey undertaken, 24 percent of the respondents are falling under the income level
Rs. below 10000 and 26% more than 40000.
33
5. From the survey undertaken, between the educational qualification and the purchase decision
of the respondent, it has been found that 40 respondents are graduates, of
these, 38%
respondents are depending upon the advertisements for their purchase decision.
6. From the study undertaken, between the age and purchase decision of the
respondents, out of 100 respondents, 20 of them are depending upon advertisement
for their purchase decision, and 36% respondents are falling under the age groupof
21-30 years.
7. From the survey undertaken 36% are highly satisfied with its brand image
Features:1.Audio Output:- In the above analysis, 26% of respondents are highly satisfied with the audio
output, 54% of the respondent are satisfied, and 20% of respondents are not satisfied with this
attribute.
2.Camera/video:- In the above analysis, 28% of the respondent gave their opinion as highly
satisfied with the features of the software compatiblity,52% of the respondents gave their opinion
as satisfied,20% of the respondents were not satisfied.
3.Software Capability:- In the above analysis, 37% of the respondent gave their
opinion as highly satisfied with the features of the software compatiblity,48% of the
respondents gave their opinion as satisfied,15% of the respondents were not satisfied.
34
4.Built in memory:- In the above analysis, 21% of the respondent gave their opinion as highly
satisfied with the features of the built in memory,55% of the respondents gave their opinion as
satisfied,24% of the respondents were not satisfied.
5.Accessories:-In the above analysis, 24% of the respondent gave their opinion as
highly satisfied with the features of the accesories,56% of the respondents gave their
opinion as satisfied,20% of the respondents were not satisfied.
SUGGESTIONS
1. Most of the respondents were satisfied with the price, company image and Battery
backup of Micromax. So it is suggested that the same standard is to the maintained.
2. Factors like after service, audio output, software compatibility and special features
are admired the respondents, hence this features has to be continued.
3. To attract customers situated in all areas, advertisement can be given through all
media to attract customers in rural areas.
4. The sales promotion offers are not impressive. Hence, the company should work
towards
providing
more
sales
promotion
offers
to
attract
the
customers
.The
customers are not satisfied with the price level, so they can better consider the price
level.
35
CONCLUSIONS
Mobile has become an important part of peoples life and it is no more aluxury.
There is a good scope for new entrants in this circle as the service provided bythe existing
players are not up to the mark and subscribers want to try out new ones provided
they stand up to the customers expectations
It
commands high respect and favorable image amongst the mobile users.
Micromax should give high priority to customer service and satisfaction as your satisfied
customers do the best advertisement
36
BIBLIOGRAPHY
website used-
1. www.in.Micromaxmobile.com
2. wap.in.Micromaxmobile.com
3. www.Micromax.org4
Books
KOTHARI C.R. (1999) Research Methodology, Wishwa Prakashan, New Delhi, 2nd
Edition
37
QUESTIONNAIRE
2. Dealers ( )
3.Gray market ( )
4. Others ( )
2. Satisfied ( )
4. Dissatisfied ( )
5. Highly dissatisfied ()
Q3. Are you satisfied with Advertisements of Micromax phone?
1. High satisfied ( )
2. Satisfied ( )
4. Dissatisfied ( )
5. Highly dissatisfied ( )
Q4. Are you satisfied with Features of Micromax phone?
1. High satisfied ( )
2. S atisfied ( )
3.Not satisfied ( )
2. Satisfied ( )
()
38
3.Not satisfied
2. Satisfied ( )
3.Not satisfied
2. Satisfied ( )
3.Not satisfied
()
Q7. Are you satisfied with Built in memory?
1. High satisfied ( )
()
Q8. Are you satisfied with Camera/video quality?
1. High satisfied ( )
2. Satisfied ( )
3.Not satisfied
2. Satisfied ( )
3.Not satisfied
2. Satisfied ( )
3.Not satisfied
()
2. Satisfied ( )
39
3.Not satisfied (
Q12. Are you satisfied with its services provided by micromax service center?
1. High satisfied ( )
2. Satisfied ( )
3.Not satisfied
()
Q13. Are you satisfied with its Brand image?
1. High satisfied ( )
2. Satisfied ( )
3.Not satisfied ( )
2. Satisfied ( )
Q15. Are you fully aware all the Features of Nokia phone?
1. Yes ( )
2. No ( )
40
3.Not satisfied ( )
41