PROJECT REPORT

ON
“A STUDY OF CUSTOMER RELATIONSHIP
MANAGEMENT WITH REFRENCE TO HONDA
COMPANY”

FOR

THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF

THE DEGREE OF BACHELORS OF BUSINESS

ADMINISTRATION

(2016-19)

FROM
FACULTY OF COMMERCE ABD BUSINESS MANAGEMENT
AMRAPALI GROUP OF INSTITUTES (HALDWANI)

SUBMITTED TO, SUBMITTED BY,

MR. Amanjeet Sethi Akansha Mehta
(H.O.D. FCBM) B.B.A. 6th SEM
AGI (Haldwani) Roll No. 1661250088

1
 STUDENT DECLARATION

I, Akansha Mehta, student of BBA 5th semester of Amrapali

Group of Institutes hereby declare that this project report
on “A STUDY OF CUSTOMER RELATIONSHIP
MANAGEMENT WITH REFRENCE TO HONDA
COMPANY.’’ written and submitted by me under the
guidance of Mr. Amanjeet Sethi is my original work. Entire
analysis and conclusion of this report are based on the
information which is collected by me during the training
period.

The empirical finding in the report are based on the data

collected myself while preparing this project. I have not copied
anything from any source or other project submitted for the
similar Purpose, if any.

Akansha Mehta

2
 ACKNOWLEDGEMENT

It is not a single man’s effort which is sufficient for the

accomplishment of a research. No task can be successfully by
a single individual. I acknowledge here the names of those
people who have been instrumental in preparation of my
project.

I readily acknowledge my indebted to my parents whose

support, dedication and honest efforts have given me an
immense help in doing this project.

It gives me immense pleasure to express my deep sense of

gratitude and appreciation to my Project Guide Mr. Amanjeet
Sethi, whose constant encouragement and valuable
suggestions gave back bone support in completing this project.

Last but not the least I record my sincere thanks to all beloved
and respectable persons who helped me and could find any
separate mention.

Akansha Mehta

3
 PREFACE

This Project Report has been prepared in partial fulfillment of

the requirement of the programme B.B.A in the academic year
2016-19. For preparing the project Report, I have visited the
Honda Company, to avail the necessary information. The blend
of learning and knowledge acquired during my studies at the
Honda Company is presented in this project Report.

The rationale behind visiting the Honda company and

preparing the Project Report is to study of analyzing the
consumer buying behavior with reference to Honda company.

4
 DECLARATION

I, Akansha Mehta hereby declare that the Research Work

entitled “Consumer buying behavior with special reference
to bikes customers in Haldwani” is an original piece of
research work carried out by me under the guidance and
supervision of Mr. Amanjeet Sethi.

The information has been collected from genuine & authentic

sources. I have put in all my efforts to make this project
successful and I would feel very much grateful for having such
projects in future also. I also declare that this Research Report
has not been submitted to any other university/Institute for the
award of any degree or any professional diploma. The work
has been submitted in partial fulfillment of Bachelor of
Business Administration (BBA)

Akansha Mehta
BBA 6th Semester

5
 TABLE OF CONTENT
TOPIC PAGE NO.

 CHAPTER-1 09-18
1.1 INTRODUCTION
1.2 OBJECTIVES OF THE STUDY
1.3 RESEARCH METHODOLOGY
(A) METHODS OF DATA COLLECTION
(B) POPULATION AND SAMPLING
(C) RESEARCH AREA AND DURATION
1.4 SCOPE AND LIMITATIONS OF THE STUDY
 CHAPTER-2 20-28
2.1. INDUSTRY AND COMPANY PROFILE

 CHAPTER-3 30-44
3.1 INTRODUCTION TO THE TOPIC
3.2 HOW SELECTED TOPIC APPLIED IN COMPANY

 CHAPTER-4 46-56
4.1 DATA ANALYSIS AND INTERPRETATION

 CHAPTER-5 58-62
5.1 FINDINGS
5.2 CONCLUSION
5.3 BIBLIOGRAPY
5.4 ANNEXURE

6
CHAPTER -1

7
INTRODUCTION
Selling of any product, there is needed to build relationship with
customer. For building a relationship there is need for knowing the
customer behavior and how will be they be satisfied? This project is
undertaken to know the customer behavior & satisfaction level for
Motorcycle in Haldwani (Also through this project get awareness that
which factors affect on the selling of bike mainly in the rural area.
Because the area where project was undergoing, it is urban area and
most population income depends on business activities or its products.
There were some limitations while doing the project. The data was
collected by personal interviews of the respondents. It was very
challenging to fill up the questionnaire as most of the population was so
busy. As it was the urban area we were supposed to explain each and
every question of the questionnaire. Also many of them did not show
any interest in filling questionnaires.

This study will help Honda to know the most popular way by which
they are providing services and quality to the customers and to know
various customers Perceptions. From the study, we found that, the
customers were highly satisfied with the products and service of Honda,
but there were some complaints regarding after sales service and staff of
Honda. It was found that Honda Motorcycle is having a good brand
image in the market. Most of the respondents considered Honda
showroom is one of the best places to purchase of Motorcycle. The
present is the era of customers. Customers are more knowledgeable than
ever before and because the customer is more knowledgeable,
companies must be faster, more agile and more creative than few years
8
ago. So companies should strive to enhance customer satisfaction
through knowing their expectations regarding products. Honda should
improve on their after sales support, and have knowledgeable support
staff. Also Hero Honda should increase the range of its targeted market.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:

1. To know the buying behavior of customers while purchasing bikes.

2. To know the market position of bike brands in the market.

3. To know costumer relationship

1.2 RESEARCH METHODOLOGY

MEANING OF RESEARCH METHODOLOGY

Research refers to the search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information
on a specific topic.
 Research is an art of scientific investigation.
 Systematized effort to gain new knowledge.
 It is a voyage of discovery

Methodology can be defined as

9
  “The analysis of the principles of methods rules and postulates
employed by a discipline”.
 “The systematic study of methods that are, can be or have been
applied within a discipline”.
 A particular procedure or set of procedures”.

Methodology includes a collection of theories, concepts or ideas as they

relate to a particular discipline or field of inquiry:
Methodology refers to more than a simple set of methods rather it refers
to the rationale and the philosophical assumptions that underline a
particular study relative to the scientific method. This is why scholarly
literature often includes a section on the methodology of the
researchers. This section does more than outline the researchers’
methods might explain what the researchers’ ontological views are.
Every project work is based on certain methodology, which is a way to
systematically solve the problem or attain its objectives. It is a very
important guideline and lead to completion of any project work through
observation, data collection and data analysis.
BENEFITS OF RESEARCH METHODOLOGY-
1. Advancement of wealth of human knowledge.
2. “Tools of the trade” to carry out research; Provides tools to
look at things in life objectively.
3. Develops special interests & skills.
4. Help to understand attitude of others.

(A) METHODS OF DATA COLLECTION

To determine the appropriate data for research mainly two kinds of data
was collected namely primary & secondary data as explained below:

PRIMARY DATA-

10
Primary data are those, which were collected afresh & for the first time
and thus happen to be original in character. However, there are many
methods of collecting the primary data; all have not been used for the
purpose of this project. The ones that have been used are:
 Questionnaire
 Informal Interviews
 Observation

SECONDARY DATA-
Secondary data is collected from previous researches and literature to
fill in the respective project. The secondary data was collected through:
 Text Books
 Articles
 Journals
 Websites
Since, the study, undertaken and information collected by me is
secondary data.

(B)POPULATION AND SAMPLING

POPULATION-
 It is a well- defined set of elements or cases whether individuals,
animals, objects, or events that conform to specific criteria and to
which one intend to generalize the results of the research
(McMillan, 1998; Wood and Haber, 1998).
 It is a well- defined set of all cases of interest (Shaughnessy et al.,
2000).

TYPES OF POPULATION-
 Finite population- Contains a countable limited number of
units.

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  Infinite population- Contains an endless number of units.

ROLE OF POPULATION-
 Topic population
Refers to the group or set about which generalizations will
be made.
 Respondent population
Refers to the group or set who might be interviewed to
obtain information about a topic population.
Example:- Suppose a researcher will undertake a study of
the attitudes and values of household heads towards
overseas employment.
 Target population
It is the group or set of items or individuals from which or
about which representative information is originally
desired.
 Sampling population
It is the population from which a sample is actually drawn.

SAMPLING
 Sampling refers to the processes whereby a sub-group (called a
sample) is picked out from a larger group (referred to as population)
and then use this sub-group as a basis for making judgements about
the larger group.

 Sample is a set of elements, or a single element from which data are

obtained (McMillan, 1992).

PROBABILITY SAMPLING-
 Probability sampling is based on the concept of random
selection. A controlled procedure that assumes that each

12
 population element is given a chance to be included s a
sample (Cooper and Emory, 1998).

TYPES OF PROBABILITY SAMPLING-

 Simple Random Sampling
Simple Random Sampling is a process of selecting a sample from
a set of all sampling units, giving each unit in the frame an equal
chance of being included in the sample.

Two ways of randomly selecting samples

1. Lottery of raffia.
2. Use of Table of Random Numbers.
 Systematic Sampling
Systematic Sampling refers to the process of selecting
every kth sampling unit of the population after the first
sampling unit is selected at random from the first
sampling.
 Stratified Sampling
Stratified Sampling involves during the population into
two or more strata and then taking either a simple random
(stratified random sampling) or a systematic sample
(stratified systematic sampling).
 Cluster Sampling
Cluster Sampling is a method of sampling a distinct of
clusters of smaller units called elements. A cluster refers to
any intact group of similar characteristics.

NON PROBABILITY SAMPLING:-

 Non- probability sampling represents a group of sampling
techniques that help researchers to select units from a population
that they are interested in studying.

TYPES OF NON PROBABILITY SAMPLING:-

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  Quota Sampling:-
With proportional quota sampling, the aim is to end up with a
sample where the strata (groups) being studied (e.g., males vs.
Females students) are proportional to the population being
studied.
 Convenience Sampling:-
A Convenience Sampling is simply one where the units are
selected for inclusions in the sample are the easiest to access.
 Purposive Sampling:-
This is also known as judgemental, selective or subjective
sampling, reflects a group of sampling techniques that rely on
the judgement of the researcher when it comes to selecting the
units that are to be studied.

1.4 SCOPE AND LIMITATIONS OF STUDY

 SCOPE
 It helps to know about the
 It is an interesting and significant area for conducting research.
 This report is useful to the management of the company to know
the about how recruitment and selection process is done by an
organization.
 This report may be useful to the management students for reading
and may be useful in preparing their report on the “recruitment
and selection. In business concerns, public Organization etc.

 LIMITATIONS
 The limited time period restricted an elaborate & comprehensive
project survey.
 Sample size was small to make broad generalization.

14
  Some of the employees were less informative about their
preference.
 Sample size has been restricted to 50.
 Few of the employees were on holiday, absent or busy.

SAMPLE DESIGN: A Sample design is a definite plan for obtaining

a sample From a given population. It refers to the techniques to the
procedure adopted in selecting items for sampling design A research
design is simply the framework or plan for a study that is used as a
guide in collecting and analyzing the data .It is a blueprint that is
followed in completing a study . A Research design ensures of the
study.

RESEARCH INSTRUMENTS
Structured well designed questionnaire is used to gather primary
information. In it
Questions are presented with exactly the same wording and in exactly
the same order, to all respondents.
SAMPLING: Sampling is necessary because it is almost impossible to
examine the entire population. Various factors such as time, efforts,
money, and purposes of study make it necessary for the research to
choose sample.
The sample should not be convenient in terms of size to large nor must
too small and sampling unit be true representatives of the universe.
Besides this, sample should be powerful; the selection process is done
keeping in view the objective of the problem.
The Total sample size unit for survey was 50.

LIMITATIONS OF THE STUDY

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Every possible efforts has been made to make the study complete in all
respects but due to a no. of uncontrollable factors, the study might have
some limitations. These can be as follows;
1. The sample size chosen may not enough to give a true representation
of the total population
2. Biasness on the part of respondents while answering the questions
cannot be rule out.
3. The questionnaire method has the limitations of providing the limited
information
4. Efforts, time, money factor were another limiting factors during the
course of project.

5. When the buyers are busy we can’t accurate data from customers

6. I have only covered the Bhopal customers because of less time.

7. During survey many of the respondents were not ready to fill

questionnaire.

16
CHAPTER-2

17
COMPANY PROFILE

Honda Motor Company Ltd. Is a Japanese public

multinational conglomerate corporation primarily known as a
manufacturer of automobiles, motorcycles, and power
equipment.

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 became the second-largest Japanese
automobile manufacturer in 2001. Honda was the eighth
largest automobile manufacturer in the world in 2015.

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, and other products. Since
1986, Honda has been involved with artificial
intelligence/robotics research and released their ASIMO robot
in 2000. They have also ventured into aerospace with the
establishment of GE Honda Aero Engines in 2004 and
the Honda HA-420 Honda Jet, which began production in
2012. Honda has three joint-ventures in China (Honda
China, Dongfeng Honda, and Guangqi Honda).
18
In 2013, Honda invested about 5.7% (US$6.8 billion) of its
revenues in research and development. Also in 2013, Honda
became the first Japanese automaker to be a net exporter from
the United States, exporting 108,705 Honda and Acura models,
while importing only 88,357.

Corporate profile and divisions

Honda is headquartered in Minato, Tokyo, Japan. Their shares
trade on the Tokyo Stock Exchange and the New York Stock
Exchange, as well as exchanges in Osaka, Nagoya, Sapporo,
Kyoto, Fukuoka, London, Paris and Switzerland.

The company has assembly plants around the globe. These

plants are located in China, the United States, Pakistan,
Canada, England, Japan, Belgium, Brazil, México, New
Zealand, Malaysia, Indonesia, India, Philippines, Thailand,
Vietnam, Turkey, Taiwan, Perú and Argentina. As of July 2010,
89 percent of Honda and Acura vehicles sold in the United
States were built in North American plants, up from 82.2
percent a year earlier. This shields profits from the yen's
advance to a 15-year high against the dollar.

19
 Honda's Net Sales and Other Operating Revenue by
Geographical Regions in 2007

Geographic Region Total revenue (in millions of ¥)

Japan 1,681,190

North America 5,980,876

Europe 1,236,757

Asia 1,283,154

Others 905,163

American Honda Motor Company is based in Torrance,

California. Honda Racing Corporation (HRC) is Honda's
motorcycle racing division. Honda Canada Inc. is
headquartered in Markham, Ontario, it was originally planned
to be located in Richmond Hill, Ontario, but delays led them to
look elsewhere. Their manufacturing division, Honda of
Canada Manufacturing, is based in Alliston, Ontario. Honda
has also created joint ventures around the world, such
as Honda Siel Cars and Hero Honda Motorcycles in
India, Guangzhou Honda and Dongfeng Honda in China, Boon
Siew Honda in Malaysia and Honda Atlas in Pakistan.

20
Following the Japanese earthquake and tsunami in March 2011
Honda announced plans to halve production at its UK
plants. The decision was made to put staff at the Swindon plant
on a 2-day week until the end of May as the manufacturer
struggled to source supplies from Japan. It's thought around
22,500 cars were produced during this period.

For the fiscal year 2018, Honda reported earnings of US$9.534

billion, with annual revenue of US$138.250 billion, an
increase of 6.2% over the previous fiscal cycle. Honda's shares
traded at over $32 per share, and its market capitalization was
valued at US$50.4 billion in October 2018.

Revenue Net income Total Assets

Year Employees
in mil. USD$ in mil. USD$ in mil. USD$

2005 77,851 4,376 83,853

2006 89,172 5,373 95,145

2007 99,784 5,331 108,329

2008 108,026 5,400 113,540

2009 100,112 1,370 118,189

2010 92,655 3,052 125,594

2011 107,242 6,762 138,851

21
 2012 100,941 2,820 149,616

2013 119,523 4,443 164,988 190,338

2014 118,425 5,741 156,220 198,561

2015 121,286 4,636 167,675 204,730

2016 121,190 2,860 151,303 208,399

2017 130,193 5,734 176,311 211,915

2018 138,250 9,534 174,143 215,638

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 three million motorcycles
annually. By 2006 this figure had reduced to around 550,000
but was still higher than its three domestic competitors.

In 2017, India became the largest motorcycle market of

Honda. In India, Honda is leading in the scooters segment,
with 59 percent market share.

During the 1960s, when it was a small manufacturer, Honda

broke out of the Japanese motorcycle market and began
exporting to the U.S. Working with the advertising
agency Grey Advertising, Honda created an innovative
22
marketing campaign, using the slogan "You meet the nicest
people on a Honda." In contrast to the prevailing negative
stereotypes of motorcyclists in America as tough, antisocial
rebels, this campaign suggested that Honda motorcycles were
made for the everyman. The campaign was hugely successful;
the ads ran for three years, and by the end of 1963 alone,
Honda had sold 90,000 motorcycles.

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.
23
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,
Honda's 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 US was to compete in large
motorcycles, around 300 cc. Honda's motorcycles in this class
suffered performance and reliability problems when ridden the
relatively long distances of the US highways. 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 fell back on selling the Super
Cubinstead.

The most recent school of thought on Honda's strategy was put

forward by Gary Hamel and C. K. Prahalad in 1989. Creating
the concept of core competencies with Honda as an example,
they argued that Honda's success was due to its focus on
leadership in the technology of internal combustion
engines. For example, the high power-to-weight ratio engines
Honda produced for its racing bikes provided technology and
expertise which was transferable into mopeds. Honda's entry

24
into the U.S. motorcycle market during the 1960s is used as
a case study for teaching introductory strategy at business
schools worldwide.

COMPITATERS OF HONDA COMPANY

 YAMAHA: Yamaha Motor Company Limited is a

Japanese motorized vehicle-producing company. Yamaha
Motor is part of Yamaha Corporation and its headquarter is
located in Iwata, Shizuoka. Along with expanding Yamaha
Corporation into the world's biggest piano maker, then
Yamaha CEO Genichi Kawakami took Yamaha into the
field of motorized vehicles on July 1, 1955. The company's
intensive research into metal alloys for use in acoustic
pianos had given Yamaha wide knowledge of the making of
lightweight, yet sturdy and reliable metal constructions.
This knowledge was easily applied to the making of metal
frames and motor parts for motorcycles. Yamaha Motor
produces motorcycles, all-terrain vehicles, boats, marine
engines including outboards, automobile engines, personal
watercraft and snowmobiles.
The Yamaha corporate logo is composed of three tuning
forks placed on top of each other in a triangular pattern.

In 2000, Toyota and Yamaha Corporation made a capital

alliance in which Toyota paid Yamaha Corporation ¥10.5

25
billion for a 5 per cent share in Yamaha Motor Company, while
Yamaha and Yamaha Motor each bought 500,000 shares of
Toyota stock in return. Yamaha Motor Company was founded
by Torakusu Yamaha (in Japanese Yamaha Torakusu);
Yamaha means "mountain leaf".

 HERO: Hero Motocorp Ltd., formerly Hero Honda, is

an Indian motorcycle and scooter manufacturer based
in New Delhi, India. Hero Honda started in 1984 as a joint
venture between Hero Cycles of India and Honda of
Japan. The company is the largest two wheeler
manufacturer in India. The 2006 Forbes 200 Most
Respected companies list has Hero Honda Motors ranked at
#108.

In 2010, when Honda decided to move out of the joint

venture, Hero Group bought the shares held by
Honda. Subsequently, in August 2011 the company was
renamed Hero MotoCorp with a new corporate identity. On
4 June 2012,Hero Motocorp approved a proposal to merge
the investment arm of its parent Hero Investment Pvt. Ltd.
into the automaker. The decision comes after 18 months of
its split from Honda Motors.

 BAJAJ: Bajaj Auto Limited is an Indian auothorized

vehicle-producing company. Bajaj Auto is a part of Bajaj
Group. It was founded by Jamnalal Bajaj at Rajasthan in the

26
1930s. It is based in Pune, Mumbai, with plants
inChakan (Pune), Waluj (near Aurangabad) and Pantnagarin
Uttarakhand. The oldest plant at Akurdi (Pune) now houses
the R&D centre Ahead. Bajaj Auto makes and
exports automobiles, scooters, motorcycles and auto
rickshaws.
Bajaj Auto is the world’s third-largest manufacturer of
motorcycles and the second-largest in India. The Forbes
Global 2000 list for the year 2005 ranked Bajaj Auto at
1,946. It features at 1639 in Forbes 2011 list.
The company has changed its image from a scooter
manufacturer to a two-wheeler manufacturer. Its product
range encompasses scooterettes, scooters and motorcycles.
Its growth has come in the last four years after successful
introduction of models in the motorcycle segment.

27
 CHAPTER-3

ABOUT THE TOPIC

Customer relationship management (CRM) is an approach to

manage a company's interaction with current and
potential customers. It uses data analysis about customers'
history with a company to improve business relationships with

28
customers, specifically focusing on customer retention and
ultimately driving sales growth.

One important aspect of the CRM approach is the systems of

CRM that compile data from a range of different
communication channels, including a company's website,
telephone, email, live chat, marketing materials and more
recently, social media. Through the CRM approach and the
systems used to facilitate it, businesses learn more about their
target audiences and how to best cater to their needs.

The concept of customer relationship management started in

the early 1970s, when customer satisfaction was evaluated
using annual surveys or by front-line asking. At that time,
businesses had to rely on standalone mainframe systems to
automate sales, but the extent of technology allowed them to
categorize customers in spreadsheets and lists. In 1982, Kate
and Robert D. Kestnbaum introduced the concept of Database
marketing, namely applying statistical methods to analyze and
gather customer data. By 1986, Pat Sullivan and Mike
Muhney released a customer evaluation system
called ACT! based on the principle of digital rolodex, which
offered a contact management service for the first time.

The trend was followed by numerous companies and

independent developers trying to maximize leads' potential,
including Tom Siebel, who designed the first CRM

29
product Siebel Systems in 1993. In order to compete with these
new and quickly growing stand-alone CRM solutions the
established enterprise resource planning (ERP) software
companies like Oracle, SAP, Peoplesoft and Navision started
extending their sales, distribution and customer service
capabilities with embedded CRM modules. This included
embedding sales force automation or extended customer
service (e.g. inquiry, activity management) as CRM features in
their ERP.

Customer relationship management was popularized in 1997,

due to the work of Siebel, Gartner, and IBM. Between 1997
and 2000, leading CRM products were enriched with shipping
and marketing capabilities. Siebel introduced the first mobile
CRM app called Siebel Sales Handheld in 1999. The idea of a
stand-alone, cloud-hosted and moveable customer bases was
soon adopted by other leading providers at the time,
including PeopleSoft, Oracle, SAP and Salesforce.com.

The first open-source CRM system was developed

by SugarCRM in 2004. During this period, CRM was rapidly
migrating to cloud, as a result of which it became accessible to
sole entrepreneurs and small teams. This increase in
accessibility generated a huge wave of price reduction. Around
2009, developers began considering the options to profit from
social media's momentum, and designed tools to help
companies become accessible on all users' favorite networks.
30
Many startups at the time benefited from this trend to provide
exclusively social CRM solutions,
including Base and Nutshell. The same year, Gartner organized
and held the first Customer Relationship Management Summit,
and summarized the features systems should offer to be
classified as CRM solutions. In 2013 and 2014, most of the
popular CRM products were linked to business intelligence
systems and communication software to improve corporate
communication and end-users' experience. The leading trend is
to replace standardized CRM solutions with industry-specific
ones, or to make them customizable enough to meet the needs
of every business. In November 2016, Forrester released a
report where it "identified the nine most significant CRM
suites from eight prominent vendors".

In an organization, sales representatives have the responsibility

of creating brand awareness and making products popular
among the end users. They are the ones who interact with the
customers, understand their requirements and fulfill their needs
and expectations.

The art of managing the organization’s relationship with the

customers and prospective clients refer to customer
relationship management.

31
Customer relationship management includes various strategies
and techniques to maintain healthy relationship with the
organization’s existing as well as potential customers.
Orgnaizations must ensure customers are satisfied with their
products and services for higher customer retention.
Remember one satisfied customer brings ten new customers
with him where as one dissatisfied customer takes away ten
customers along with him.

In simpler words, customer relationship management refers to

the study of needs and expectations of the customers and
providing them the right solution.

CRM systems include:

 Data warehouse technology, used to aggregate

transaction information, to merge the information with
CRM products, and to provide key performance indicators.
 Opportunity management which helps the company to
manage unpredictable growth and demand, and implement a
good forecasting model to integrate sales history with sales
projections.
 CRM systems that track and measure marketing
campaigns over multiple networks, tracking customer
analysis by customer clicks and sales.

32
 Some CRM software is available as a software as a
service (SaaS), delivered via the internet and accessed via a
web browser instead of being installed on a local computer.
Businesses using the software do not purchase it, but
typically pay a recurring subscription fee to the software
vendor.
 For small businesses a CRM system may consist of a
contact manager system that integrates emails, documents,
jobs, faxes, and scheduling for individual accounts. CRM
systems available for specific markets (legal, finance)
frequently focus on event management and relationship
tracking as opposed to financial return on investment (ROI).
 CRM systems for E-Commerce, focused on marketing
automation tasks, like: cart rescue, re-engage users with
email, personalization.
 Customer-centric relationship management (CCRM) is a
nascent sub-discipline that focuses on customer preferences
instead of customer leverage. CCRM aims to add value by
engaging customers in individual, interactive relationships.
 Systems for non-profit and membership-based
organizations help track constituents, fundraising, sponsors'
demographics, membership levels, membership directories,
volunteering and communication with individuals.

33
Effect on customer satisfaction

Customer satisfaction has important implications for the

economic performance of firms because it has the ability to
increase customer loyalty and usage behavior and reduce
customer complaints and the likelihood of customer defection.
The implementation of a CRM approach is likely to have an
effect on customer satisfaction and customer knowledge for a
variety of different reasons.

Firstly, firms are able to customize their offerings for each

customer. By accumulating information across customer
interactions and processing this information to discover hidden
patterns, CRM applications help firms customize their
offerings to suit the individual tastes of their customers. This
customization enhances the perceived quality of products and
services from a customer's viewpoint, and because perceived
quality is a determinant of customer satisfaction, it follows that
CRM applications indirectly affect customer satisfaction. CRM
applications also enable firms to provide timely, accurate
processing of customer orders and requests and the ongoing
management of customer accounts. For example, Piccoli and
Applegate discuss how Wyndham uses IT tools to deliver a
consistent service experience across its various properties to a
customer. Both an improved ability to customize and a reduced
variability of the consumption experience enhance perceived
quality, which in turn positively affects customer
34
satisfaction. Furthermore, CRM applications also help firms
manage customer relationships more effectively across the
stages of relationship initiation, maintenance, and termination.

Customer benefits

With Customer relationship management systems customers

are served better on day to day process and with more reliable
information their demand of self service from companies will
decrease. If there is less need to interact with the company for
different problems, customer satisfaction level increases.
[30]
These central benefits of CRM will be connected
hypothetically to the three kinds of equity that are relationship,
value and brand, and in the end to customer equity. Eight
benefits were recognized to provide value drivers.[31]

1. Enhanced ability to target profitable customers.

2. Integrated assistance across channels
3. Enhanced sales force efficiency and effectiveness
4. Improved pricing
5. Customized products and services
6. Improved customer service efficiency and effectiveness
7. Individualized marketing messages also called campaigns
8. Connect customers and all channels on a single platform.

35
In 2012, after reviewing the previous studies, someone selected
some of those benefits which are more significant in
customer's satisfaction and summarized them into the
following cases:[32]

1. Improve customer services: In general, customers would

have some questions, concerns or requests. CRM
services provide the ability to a company for producing,
allocating and managing requests or something made by
customers. For example, call center software, which
helps to connect a customer to the manager or person
who can best assist them with their existing problem, is
one of the CRM abilities that can be implemented to
increase efficiency.[33]
2. Increased personalized service or one-to-one
service: Personalizing customer service or one-to-one
service provides companies to improve understanding
and gaining knowledge of the customers and also to have
better knowledge about their customers' preferences,
requirements and demands.
3. Responsive to customer's needs: Customers' situations
and needs can be understood by the firms focusing on
customer needs and requirements.
4. Customer segmentation: In CRM, segmentation is used
to categorize customers, according to some similarity,
such as industry, job or some other characteristics, into
36
 similar groups. Although these characteristics, can be
one or more attributes. It can be defined as a subdividing
the customers based on already known good
discriminator.
5. Improve customization of marketing: Meaning of
customization of marketing is that, the firm or
organization adapt and change its services or products
based on presenting a different and unique product or
services for each customer. With the purpose of ensuring
that customer needs and requirements are met
Customization is used by the organization. Companies
can put investment in information from customers and
then customize their products or services to maintain
customer interests.
6. Multichannel integration: Multichannel integration shows
the point of co creation of customer value in CRM. On
the other hand, a company's skill to perform
multichannel integration successfully, is heavily
dependent on the organization's ability getting together
customer information from all channels and incorporate
it with other related information.[36]
7. Time saving: CRM will let companies to interact with
customers more frequently, by personalized message and
communication way which can be produced rapidly and
matched on a timely basis, and finally they can better

37
 understand their customers and therefore look forward to
their needs.
8. Improve customer knowledge: Firms can make and
improve products and services through the information
from tracking (e.g. via website tracking) customer
behavior to customer tastes and needs. CRM could
contribute to a competitive advantage in improving
firm's ability of customer information collecting to
customize products and services according to customer
needs.

Need for Customer Relationship Management

 Customer Relationship Management leads to satisfied

customers and eventually higher business everytime.

 Customer Relationship Management goes a long way in

retaining existing customers.

 Customer relationship management ensures customers

return back home with a smile.

 Customer relationship management improves the

relationship between the organization and customers. Such
activities strengthen the bond between the sales
representatives and customers.

38
Steps to Customer Relationship Management
 It is essential for the sales representatives to
understand the needs, interest as well as budget of the
customers. Don’t suggest anything which would burn a
hole in their pockets.
 Never tell lies to the customers. Convey them only what
your product offers. Don’t cook fake stories or ever try to
fool them.
 It is a sin to make customers waiting. Sales
professionals should reach meetings on or before time.
Make sure you are there at the venue before the customer
reaches.
 A sales professional should think from the customer’s
perspective. Don’t only think about your own targets and
incentives. Suggest only what is right for the customer.
Don’t sell an expensive mobile to a customer who earns
rupees five thousand per month. He would never come
back to you and your organization would lose one of its
esteemed customers.
 Don’t oversell. Being pushy does not work in sales. It a
customer needs something; he would definitely purchase
the same. Never irritate the customer or make his life
hell. Don’t call him more than twice in a single day.
 An individual needs time to develop trust in you and
your product. Give him time to think and decide.

39
  Never be rude to customers. Handle the customers with
patience and care. One should never ever get hyper with
the customers.
 Attend sales meeting with a cool mind. Greet the
customers with a smile and try to solve their queries at
the earliest.
 Keep in touch with the customers even after the deal.
Devise customer loyalty programs for them to return to
your organization. Give them bonus points or gifts on
every second purchase.
 The sales manager must provide necessary training to
the sales team to teach them how to interact with the
customers. Remember customers are the assets of every
business and it is important to keep them happy and
satisfied for successful functioning of organization.

CONSUMER BUYING BEHAVIOUR

The main aim of marketing is meet and satisfy target

customers need and wants. Buying behavior refers to the
peoples or organization conduct activities and together with

40
 the impact of various influences on them towards making
decision on purchase of product and service in a market.
The field of consumer buying behavior studies how
individuals groups and organization select ideas or
experience to satisfy their needs and desires understanding
consumer behavior and knowing customer are never
simple. The wealth of products and service produced in a
country make our economy strong. The behavior of human
being during the purchase is being termed as buyer
behavior. Customer says one thing but do another. They
may not be I touch with their deeper motivations. They are
responding to influences that change their mind at the last
minute. A buyer makes take a decision whether save or
spend the money.

DEFINITION OF BUYING BEHAVIOUR

Buying behavior is all psychological social an physical

behaviors of potential as they become aware of potential
customers as they become aware of evaluate, purchase,
consume and tell others about the product and service .

Consumer Buying Decision Process There are following five

stages in consumer buying decision process.
41
1. Problem identification:-
The buying process starts when the buyer recognizes a
problem or need. The need can be triggered by internal or
external stimuli.
Marketers need to identify the circumstances that trigger a part
icular need. By gathering information from a number of consu
mers, Marketers can identify the most frequent stimuli that
spark an interest in a product category. They can then develop
marketing strategies that trigger consumer interest.

2. Information Search:-
The consumer tries to collect information regarding various pr
oducts/service. Through gathering information, the consumer l
earns about completing brands and their features. Information
may be collected form magazines, catalogues, retailers,
friends,
familymembers, business association, commercial, chamber of
commerce, telephone directory, trade fair etc. Marketers should
findout the source of information and their relative degree of i
mportance to the consumers.

Personal Sources:
 Family
 friends
 neighbor
 quittances

42
Commercial Source:
 Advertising
 sales persons
 Dealers
 Packaging
 displays

Public sources
 Mass media
 consumer rating
 Organizations.

Experimental sources
 Handling
 Examine
 Using the product.

43
CHAPTER- 4

44
 Questionnaire and Data Interpretation

1. Which brand do you prefer for bikes?

Honda Bajaj Yamaha Hero

10 12 7 1

INTERPRETATION:

The above table shows that out of 30 people, 40% prefer Bajaj bikes,
33% prefer Honda, 20% will go for Yamaha and the remaining 7%
prefer hero bikes.

45
2. Which bike do you find comfortable?

Honda Bajaj Yamaha Hero

9 7 2 12

INTERPRETATION:

As given in the pie chart around 40% people will go for hero
while 30% like Honda. The other remaining prefers Bajaj and
Yamaha.

46
3. Which motor bike provides you with good after sale
service?

Honda Bajaj Yamaha Hero

15 5 6 4

INTERPRETATION:

The above table shows that in terms of after sales services

Honda is the best. Other brands like Bajaj, Yamaha and hero
gives almost the same satisfaction.

47
4. Which motor bike brand provides you with better
mileage?

Honda Bajaj Yamaha Hero

15 10 0 5

INTERPRETATION:

According to the chart 50% costumers says that Honda gives

you better mileage and 33% says that Bajaj gives better

48
mileage. No one voted for the Yamaha bikes in terms of
mileage and only 5 costumers voted for hero that is 17%.
5. Which brand provides you with more attributes or
characteristics (suspension, macwheels , horn )

Honda Bajaj Yamaha Hero

18 12 0 0

INTERPRETATION:

In terms of attributes Honda leads by 60% votes and

remaining 40% voted for Bajaj. It shows that Honda have
better characteristics than any other bike brands.

49
6. Which motor bike brand is more economical?

Honda Bajaj Yamaha Hero

10 3 17 0

INTERPRETATION:

According to the given Table Yamaha provides economic bike

with 17 votes out of 30 that is 57%. Honda bikes are also liked
by the costumers when asked for economical bikes.

50
7. Which bike brand do you think is more environment
friendly?

Honda Bajaj Yamaha Hero

5 17 3 5

INTERPRETATION:

When talk about eco-friendly bikes costumer prefer Bajaj

company bikes over other brands. Honda and hero are
preferred by 17% costumers. And only 10% are willing to go
for Yamaha.

51
 8. Kindly rate each of the brands as per your knowledge (1
to 4)?

Rating (from
1 to 4) Yamaha Hero Bajaj Honda

1 0 3 1 0

2 5 7 9 3

3 15 7 12 7

4 10 13 8 20

30 30 30 30

52
INTERPRETATION:

According to the chart and table given Honda Company is

outshining all other brands by getting highest number of
rating. Yamaha is also likes by the costumers by getting 33%
highest rating.

53
 9. Which bikes brand advertisement attracted you most?

Yamaha Hero Bajaj Honda

4 13 7 6

INTERPRETATION:

The advertisements of hero brand attract most of the

customers while Yamaha attracts the least number of
customers.

54
 10. Which brand you think provides you more stylish
bikes?

Yamaha Hero Bajaj Honda

11 5 6 8

INTERPRETATION:
According to the given table Yamaha bikes gives more stylish
look then the rest of the bike brands. Hero needs to improve
some models of the bikes to attract new generation.

55
CHAPTER-5

56
 SUGGESTIONS

1. Honda Company should implement a new strategy to reduce

the competition and lead into the bike market.

2. For the promotion, company should make road-show that

will Increase the sales.

3. The company should concentrate more on the advertisement.

4. Honda should introduce more economical bike.

5. As people expect more mileage per kilometer, company

should increase the mileage of the Honda bike.

6. Honda should make a sports bike like to Kawasaki Suzuki

Hyabusa bikes which can run with maximum speeds.

7. Honda should introduce more eco-friendly bikes in the

market to attract more customers as well as to serve the
environment.

BIBLIOGRAPHY

57
Books:

1. Marketing research, G.C.Beri, Third Edition, Tata McGraw

-Hill Publishing Company Limited, New Delhi, 2000

2.Marketing management, Philip Kotler, Twelth (Millennium)

edition, Prentice-Hall of India Private Limited, New
Delhi, 2003

Websites:

3.en.wikipedia.org

4.global.honda

5.www.honda.com

ANNEXUER
A STUDY ON CONSUMER BUYING BEHAVIOUR
58
 (WITH SPECIAL REFERENCE TO MOTORBIKE CUSTOMER
OF HALDWANI)

Questionnaire

NAME: AGE:

1. Which brand do you prefer for bikes ?

1 .Honda 2.Bajaj

3. Yamaha 4. Hero

2. Which bike do you find comfortable?

1. Hero 2.Honda

3. Bajaj 4.yamaha

3. Which motor bike provides you with good after sale service
?

1. Honda 2.Yamaha

3. Hero 4. Bajaj

4. Which motor bike brand provides you with better mileage?

1. Honda 2. Yamaha

3. Hero 4.bajaj

5. Which brand provides you with more attributes or

characteristics (suspension, macwheels and horn)?
59
1. Honda 2.Yamaha

3. Hero 4. Bajaj

6. Which motor bike brand is more economical?

1. Yamaha 2. Hero

3. Bajaj 4. Honda

7. Which bike brand do you think is more environment

friendly?

1. Bajaj 2. Hero

3. Honda 4. Yamaha

8. Kindly rate the brands as per your knowledge (1 to 4)?

1. Yamaha

2. Hero

3. Bajaj

4. Honda

9. Which bikes brand advertisement attracted you most ?

1. Yamaha 2. Hero

3. Bajaj 4. Honda

60
10. Which brand you think provides you more stylish bikes ?

1. Honda 2. Bajaj

3. Yamaha 4.Hero

61
62