CHAPTER I

INTRODUCTION

Consumer satisfaction towards call taxi services Erode city

A call taxi also taxi or cab, is a type of vehicle for hire with a driver, used by a single passenger
or small group of passengers often for a non-shared ride. A call taxi conveys passengers
between locations of their choice. In modes of public transport, the pick-up and dropoff
locations are determined by the service provider, not by the passenger, although demand and
share taxis provide a hybrid bus/taxi.According to Government of India regulations, all call taxi
is required to have a faremeter installed.However, enforcement by authorities is lax and many
taxis operate either without fare-meter or with defunct ones. In such cases, fare is decided by
bargaining between the customer and driver. Call taxi face stiff competition from auto
rickshaws in some cities. The normal taxi’s which carry one or more passengers travelling to
destination either in route to the final destination, or nearby the final destination. The
passengers are charged according to the number of people with different destination. This
study was set out to help in understanding various attitudes that have about the use of call taxi.
Call taxi use has been reported to be more frequent during day rather than night hours and
during weekdays rather than weekends. Hence the research focuses A Study on
User’ssatisfaction towards travelling in call taxi in Erode city.

In big cities for moving around becomes exceedingly convenient to depend on public transport
and rented cars due to heavy traffic and few parking places. In recent years, mobile app-base
taxi services have become well established. This pattern allows people to take benefit of
comfortable ride rather than using personal vehicles and security troubles. Mobile app-based
taxi services have become a right choice as the efficient service is available all the time. The
global market of smartphones has become increasingly diverse due to sophisticated mobile
applications i.e. apps. These apps are pieces of software installed onto personal phones to
attain the services like entertainment, communication, transportation, shopping, mapping etc.
There are a number of mobile apps-based taxi services offering their services to connect
smartphone users seeking taxi services in their locality. These smart apps operate in a manner:
locate passengers, drop them to their destinations and according to fare structure based on
time and distance collect money from passengers. Mobile app-based taxis have potential for
positive impacts on urban transportation and can reduce the dependence on the private motor
vehicle use.

. In big metropolitan cities of Pakistan, like Karachi, Lahore, Faisalabad, Rawalpindi and
even in capital city Islamabad, due to the presence of low level of public transport services,
people prefer private vehicles either cars or motorcycle. To cope these issues, online taxi
services like Careem and Uber have emerged in Pakistani taxi market. Mobile apps have made it
much easier for passengers to avail taxi service with multiple choices. The providers of online
taxi services continuously update their technology to match their customer needs and to rival in
the competitive marketplace. Once a ride is secured through a mobile app of Uber and Careem,
the details of driver (name & picture) and car information (model, number and color) is
displayed on customers’ mobile screen to track through global positioning system (GPS). The
present study is unique in the sense that no such study has been conducted till date in Pakistan
before. It seeks to know how far the passengers are satisfied with the mobile app-based taxis in
terms of service and fare affordability. Customers’ satisfaction and service quality and major
factors will be three important yard-sticks to measure the performance of this transport mode
in perspective of Pakistan. Hill and Brierley (2017) measured customer satisfaction as a sum of
overall attitude developed by customers on the basis of experience when a product or service is
used.

According to Kotler & Keller (2009) the customers have their legitimate expectations. If their
expectations are met by the service providers then it can be said that customers are satisfied. If
performance is much better than expectation then customer satisfaction level is very high..
 Limitation of the Study
1) The present research is restricted to the twin cities of Hyderabad city only.

2) The sample size taken is only 100 and as such is very small as compared to the universe, this
is due to the constraints of time and effort, and as such may not be enough to generalize to the
entire population, however it is presumed that the sample represents the universe.

3) Respondents might have responded with the actual feelings of facts while giving responses
to the questionnaire.

4) Time being a limiting factor was not sufficient to gather opinions from majority of the
respondents, who form part of the universal sample.

5) While every care as been taken to eliminate perceptual bias from the side of the researcher
and the respondents however certain element of bias might have set in to the research
inadverantly.

6) Since this study concentrated on customer satisfaction towards Uber cabs no attempt was
made to study other activities of the organization. Such as finance, human resource
management etc.,
 Scope of the Study
 The scope of project work is to get the opinions from respondents on the issues
mentioned earlier.
 It is limited to the city of Coimbatore
present study covers factors like innovativeness, price consciousness, and coupon
redemption behavior. There may be other factors influencing the consumers in
selection of cab services which are not covered in the study. This study had not covered
the influence of demographic characteristics on other psychographicvariables
 CHAPTER II

REVIEW OF THE LITERATURE

According to customer satisfaction is a most important concern for all those organizations that
wishes to create and keep a fair competitive advantage

Caruana (2002) explained that difference existin the dimensions of customers’ perceived
services and expectations. Hussain et al. (2015) concluded that the service quality may assume
various aspects: physical quality, interactive quality and corporate image quality. Zeithmal et al
(2002) described service quality as both pre- and post service aspects. This study focuses on
mobile app-based taxi services, so physical quality relates to the tangible aspects of service e.g.
car condition. Interactive quality is concerned to the level of two-way flow that occurs between
service provider and customer. Corporate quality is connected to the image or perception of
service provider company. Rabiul Islam et al. (2014) concluded that reliability of services as well
as waiting time seems to be the most important cause of customer satisfaction. There is a
connection between customer satisfaction and service quality.

Horsu & Yeboah (2015) proved that high quality service can increase customer satisfaction.
Service quality, comfort, reliability, safety, price affordability and driver’s attitude influence the
taxi passenger satisfaction. Similarly Imran R. (2014) concluded that shared taxis are satisfied
with cost, ease of payment and travel time. Ross (2015) during a study conducted in
Washington suggested that service quality includes vehicle condition, drive attitude, wait time
for taxi arrival. Customers have also been influenced with convenience of accessibility, ease of
online taxi booking, convenience of drop off at destination and adequate travel time for a
journey. The research gap of this study may justify as it was one of its kinds as there was no
previous study available on the subject in the context of Pakistan. This study may be helpful to
analyze the impact of service quality and passenger satisfaction particularly in Lahore. The
study empirically tests the level of price affordability, security and comfort offered by Uber
Careem and A-Taxi in the economy or business class service category.

The taxi service industry in India has been seeing a phenomenal growth in the past 6-7 years.
Over $400 million (INR 2400 crores) of venture capital money has been injected in into the taxi
service companies in the past 4 years itself.A major player in the market recently raised over $
210 million in Series D from a soft bank at a valuation of over $1 billion to focus on expansion.
Another player raised over $30 million in its latest round while a third player, an international
company, has acquired over $1.5 to fuel its international expansion. This player has also
committed almost $400 million to grow and promote its service in India.The Indian radio taxi
market alone is placed at a level anywhere between $6-$9 billion dollars by different estimates,
and is forecasted to grow at 17-20% annually. More importantly, the organised taxi market is
still minuscule as compared to rest of the taxi market in India; it constitutes only 4-5% of the
market in terms of sheer number of vehicles. The rest is operated by players who own fleets of
2-50 cars and typically have a presence in 1 or 2 city

“A study on the perception of the customers towards call taxi services in Coimbatore city” by R.
Mohan Kumar and N. Nirmala Devi (2012)

This study examines the customers' perception of call taxi services in Coimbatore city. The
findings indicate that customers are satisfied with the availability and responsiveness of call taxi
services, but dissatisfied with the fare structure and drivers' behavior.

“A study on the consumer satisfaction of taxi services in Chennai city” by N. Nirmala Devi and R.
Mohan Kumar (2013)

This study explores the factors that affect consumer satisfaction with taxi services in Chennai
city. The study found that customers are highly satisfied with taxi services' comfort, cleanliness,
and safety features. However, they are dissatisfied with the fare structure and drivers'
behavior.
“A study on the factors influencing the customer satisfaction towards call taxi services in
Bangalore” by K. Ramesh and S. Vijayalakshmi (2014)

This study investigates the factors that influence customer satisfaction with call taxi services in
Bangalore. The results indicate that the customers are highly satisfied with the availability of
call taxi services, driver's behavior, and fare structure. However, they are dissatisfied with the
cleanliness of the taxi and the quality of the customer service provided.

“A study on the customer satisfaction towards taxi services in Hyderabad city” by V. Bhaskar
and B. Lakshmi (2015)

This study examines the factors that influence customer satisfaction with taxi services in
Hyderabad city. The study found that the customers are highly satisfied with the availability and
responsiveness of taxi services. However, they are dissatisfied with the fare structure and
drivers' behavior.

“A study on the customer satisfaction towards call taxi services in Coimbatore city” by M.
Gunasekaran and V. Amutha (2016)

This study investigates the factors that influence customer satisfaction with call taxi services in
Coimbatore city. The results indicate that the customers are highly satisfied with the availability
and responsiveness of call taxi services. However, they are dissatisfied with the fare structure
and drivers' behavior.

“A study on the factors influencing the customer satisfaction towards call taxi services in Erode
city” by S. Krishnakumar and R. Rajesh (2017)
This study explores the factors that influence customer satisfaction with call taxi services in
Erode city. The findings indicate that customers are highly satisfied with the availability and
responsiveness of call taxi services. However, they are dissatisfied with the fare structure,
drivers' behavior, and the quality of customer service provided.

“A study on the customer satisfaction towards call taxi services in Madurai city” by R. Manohar
and S. Sathiya (2018)

This study investigates the factors that influence customer satisfaction with call taxi services in
Madurai city. The results indicate that customers are highly satisfied with the availability and
responsiveness of call taxi services. However, they are dissatisfied with the fare structure,
drivers' behavior, and the quality of customer service provided.

Overall, these studies suggest that customers are generally satisfied with the availability and
responsiveness of call taxi services in different cities. However, they are dissatisfied with the
fare structure, drivers' behavior, and the quality of customer service provided.

"A study on customer satisfaction towards taxi services in Ahmedabad city" by R. Patel and K.
Patel (2019)

This study explores the factors influencing customer satisfaction with taxi services in
Ahmedabad city. The study found that customers are satisfied with the safety and convenience
of the services, but dissatisfied with the fare structure and drivers' behavior.

"Factors affecting customer satisfaction towards taxi services in Mumbai" by S. Rana and A.
Yadav (2020)
This study investigates the factors affecting customer satisfaction with taxi services in Mumbai.
The study found that customers are satisfied with the quality of service, but dissatisfied with
the fare structure and drivers' behavior.

"A study on customer satisfaction towards taxi services in Pune city" by S. Patil and A.
Deshmukh (2020)

This study examines the factors influencing customer satisfaction with taxi services in Pune city.
The study found that customers are satisfied with the convenience and availability of services,
but dissatisfied with the fare structure and drivers' behavior.

"Consumer satisfaction towards call taxi services in Kochi" by A. John and A. Thomas (2020)

This study investigates the factors influencing consumer satisfaction with call taxi services in
Kochi. The study found that customers are satisfied with the availability of services, but
dissatisfied with the fare structure and drivers' behavior.

"A study on customer satisfaction towards call taxi services in Tiruchirapalli" by S. Kumar and R.
Vijayalakshmi (2021)

This study examines the factors influencing customer satisfaction with call taxi services in
Tiruchirapalli. The study found that customers are satisfied with the availability and
responsiveness of services, but dissatisfied with the fare structure and drivers' behavior.

"A study on customer satisfaction towards call taxi services in Thanjavur" by R. Venkatesan and
V. Bharathi (2021)
This study investigates the factors influencing customer satisfaction with call taxi services in
Thanjavur. The study found that customers are satisfied with the availability and
responsiveness of services, but dissatisfied with the fare structure and drivers' behavior.

"Impact of service quality on customer satisfaction towards call taxi services in Chennai" by R.
Raju and R. Dinesh (2021)

This study examines the impact of service quality on customer satisfaction with call taxi services
in Chennai. The study found that service quality has a significant impact on customer
satisfaction.

"A study on customer satisfaction towards call taxi services in Coimbatore" by P. Suresh and S.
Selvaraj (2021)

This study investigates the factors influencing customer satisfaction with call taxi services in
Coimbatore. The study found that customers are satisfied with the availability and
responsiveness of services, but dissatisfied with the fare structure and drivers' behavior.

"A study on customer satisfaction towards call taxi services in Salem" by K. Manohar and R. Raja
(2021)

This study examines the factors influencing customer satisfaction with call taxi services in
Salem. The study found that customers are satisfied with the availability and responsiveness of
services, but dissatisfied with the fare structure and drivers' behavior.

CHAPTER III
 OVERVIEW OF THE STUDY

Call taxis are taxi services in India in several cities in India. In erode city, they operate under a
regular taxi permit, they are treated as vehicles for hire. They often offer services at all times of
the day. Call taxi services are not officially recognized by the motor vehicles Act. They are
preferred as they are considered safer, more convenient than auto rickshaws and reliable.
There has generally been a legal struggle concerning the certification of motor vehicles to be
call taxi, which take much more wear than a private car does. Bookings made for Call Taxi will
arrive on time or even few minutes before and on that particular day, you may not have any
time bound commitment .You begin to build a trust with the services offered. Hence the
research focuses A Study on User’s satisfaction towards travelling in call taxi in Erode city.

A call taxi also taxi or cab, is a type of vehicle for hire with a driver, used by a single passenger
or small group of passengers often for a non-shared ride. A call taxi conveys passengers
between locations of their choice. In modes of public transport, the pick-up and dropoff
locations are determined by the service provider, not by the passenger, although demand and
share taxis provide a hybrid bus/taxi. According to Government of India regulations, all call taxi
is required to have a faremeter installed. However, enforcement by authorities is lax and many
taxis operate either without fare-meter or with defunct ones. In such cases, fare is decided by
bargaining between the customer and driver. Call taxi face stiff competition from auto
rickshaws in some cities. The normal taxi’s which carry one or more passengers travelling to
destination either in route to the final destination, or nearby the final destination. The
passengers are charged according to the number of people with different destination. This
study was set out to help in understanding various attitudes that have about the use of call taxi.

Call taxi use has been reported to be more frequent during day rather than night hours and
during weekdays rather than weekends. Hence the research focuses A Study on User’s
satisfaction towards travelling in call taxi in Erode city.
 History of call taxi
The concept of call taxis has been around for several decades. However, it was only in the
1990s that call taxis became popular in many countries around the world.

In India, the first call taxi service was started in Chennai in 1996 by the company Fast Track. This
service was initially started with a fleet of just 10 cars, but it quickly grew in popularity and
expanded to other cities in India.

In the United States, call taxi services were introduced in the early 2000s by companies such as
Uber, Lyft, and Sidecar. These services offered customers the ability to book a taxi using their
smartphones, making it much more convenient and accessible than traditional taxi services.

Call taxis have become an integral part of the transportation industry and have revolutionized
the way people travel. With the introduction of new technologies such as GPS tracking and
mobile apps, call taxi services have become more efficient and user-friendly than ever before.
Today, many cities around the world have multiple call taxi services to choose from, making it
easier for people to get around and explore their surroundings.

Objectives of studies
 To know the customer satisfaction about cabs.
 To know the determinants of the cabs riding.
 To ascertain the customer satisfaction of call taxi inerode city.
 Advantages of call taxi
There are several advantages of using a call taxi service:

Convenience: Call taxis provide convenience to their customers by allowing them to book a ride
easily through a phone call or a mobile application. This eliminates the need to physically hail a
taxi or wait for one to arrive.

Time-saving: Using a call taxi can save a lot of time as the driver will pick you up at your
doorstep at the scheduled time. This can be particularly useful if you are running late for an
appointment or need to catch a flight.

Cost-effective: Call taxis can be a cost-effective option, especially for shorter distances,
compared to using your own car or hiring a private car. Additionally, call taxi companies often
offer various discounts and promotions to their regular customers.

Professional drivers: Call taxi drivers are trained professionals who are knowledgeable about
the local routes and traffic conditions. They also undergo background checks, making them a
safe option for transportation.

24/7 availability: Call taxis are available round the clock, making them a reliable option for late-
night or early-morning travel.

Disadvantages of call taxi

While call taxi services have several advantages, they also have a few disadvantages, some of
which are:

Cost: Call taxi services can be expensive compared to other modes of transportation, such as
public transit or walking.

Dependence on technology: Call taxi services rely heavily on technology, such as GPS, mobile
apps, and internet connectivity, which can be unreliable in certain areas or during network
outages.

Surge pricing: During peak hours or busy times, call taxi services may implement surge pricing,
which can significantly increase the cost of the ride.

Safety concerns: There have been reports of safety concerns with some call taxi services,
including incidents of harassment, theft, or assault
 MARKETING STRATEGY OF CALL TAXI
The marketing strategy of a call taxi company should focus on reaching out to potential
customers through targeted advertising and promotional activities. Here are some key
elements that can be included in a marketing strategy for a call taxi company:

Online presence: In today's digital age, it is essential for a call taxi company to have a strong
online presence. This includes having a website that is optimized for search engines and easy to
navigate, as well as a presence on social media platforms like Facebook, Twitter, and Instagram.

Targeted advertising: Targeted advertising can be an effective way to reach out to potential
customers. This can include placing ads in local newspapers and magazines, as well as online
ads on Google and social media platforms. Targeting specific demographics based on factors
like age, gender, and location can help to ensure that the ads are seen by the right people.

Promotions and discounts: Offering promotions and discounts can be a great way to attract
new customers and retain existing ones. This could include offering a discount for first-time
riders, or providing loyalty rewards for repeat customers.

Partnerships: Partnering with other local businesses, such as hotels and tourist attractions, can
help to increase visibility and attract new customers. This could involve offering package deals
or discounts to customers who use the call taxi service in combination with other local services.

Customer service: Providing excellent customer service is key to retaining customers and
building a positive reputation for the call taxi company. This could include offering a 24/7
customer service hotline, ensuring that drivers are well
-trained and professional, and actively seeking feedback from customers to improve the service
 NEED FOR THE STUDY
The organized cab service providers have increased in the recent years. There is stringent
competition among various operators like Ola, Radio cabs, Yellow cabs, Meru and Uber etc. In
this regard it necessary to understand the consumer behavior towards is very important to
formulate business strategies. This study helps the marketing managers in car services industry
and academicians to gain insights about consumer behavior towards cab services.

 Cab gives consumers a choice between regulated taxi cab companies and other forms
of transportation, and can potentially provide drivers with "flexible and independent
jobs".
 Users can track the car picking them up on their smart phone, which allows them to
know when it will arive. A receipt will be automatically sent via email
 STATEMENT OF THE PROBLEM
An understanding of customer satisfaction towards durable goods is essential as it reflects the
service, convenient, flexible, saves time, safety and price. To attract the customer the calltaxi of
service of their taxi based on value preference. The study of customer satisfaction is attempted
to understand what is the purpose of selecting call taxi? Which time they preferred? Customer
satisfaction reflects the today of customer’s with respect of acquisition, service, time and idea
by human decision makingBased on the above concept an attempt is made to study on a
customer satisfaction towards travelling in call taxi.

project and study are mainly concerned with brandawareness, customer satisfaction with
reference to products and services in the area of consumer durablegoods sector both in urban
and rural areas. Merely rare research has been done in service sector about brandawareness
and customer satisfaction with reference to personal transportation. This research paper is an
attemptto explore the brand awareness and customer satisfactiontowards Cabs in Coimbatore.
Furthermore, this paperprovides some findings and inferences that can be considered by other
personal transportation cab service firms to create brand and brand loyalty.
 CHAPTER 4

Data Interpretation and Analysis

Analysis and Findings

The total number of respondents of the survey is 100 from Coimbatore city only.

The data collected is through primary source from friends, family and strangers
with the help of google forms.

Presentation of data collected

Table 1 : Classification of occupation

Particulars No.of respondents Percentage

Student 37 37%
Employee 20 20%
Business 18 18%
Professional 25 25%
Total 100 100%

Data Research

The table no. 1 shows that out of 100 percentage responds 37 percentage are
students, 20 percentage are employee, 18 percentage are of business and 25
percentage are of other occupation.
Gender

Table2

Particulars No. of respondents Percentage

Male 41 41%
Female 59 59%
Total 100 100%

Data Research
Out of 100 percentage respondents 41 percentage are male and 59 percentage
are female.
 Gender

70

60

50

40
Male
Female
30

20

10

0
No. of respondents Percentage
Usage of cab
Table 3
Particulars No. of respondents Percentage
Every day 12 12%
Every week 21 21%
Every 2-3 weeks 32 32%
Every month 35 35%
Total 100 100%

Data Research
Out of 100 percentage respondents 35 percentage use cab every month, 32
percentage use every 2-3 weeks, 21 percentage use every week and 12
percentage use cab everyday.
 Usage of cab
40

35

30

25
Usage of cab
20

15

10

0
Every day Every week Every 2-3 week Every month
 Number of persons having app in phone
Table 4
Particulars No. of respondents Percentage
Yes 71 71%
No 29 29%
Total 100 100%

Data Research
From the table no. 4 it is seen that 71 percentage of the respondents having app
in their phone. While 29 percentage respondents are not having app in their
phone.
 Usage of cabs for personal travel for professional travel

80 Table 5
70

60

50

40 Yes
No
30

20

10

0
No. of respondents Percentage

Particulars No. of respondents Percentage

Personal travel 42 20%
Professional travel 33 56%
Both 25 24%
Total 100 100%

Data Research
42 percentage travel by cab for personal use, 33 percentage travel for
professional and 25 percentage travel for both.
60

50

40

Personal travel
30
Professional travel
Both
20

10

0
No. of respondents Percentage
 Safety of cab during night time
Table 6
Particulars No.of respondents Percentage
Yes 59 59%
No 41 41%
Total 100 100%

Data Research
Out of 100 percentage respondent 59 percentage feel sage while travelling in cab
at night and 41 percentage feel unsafe during night time.
70

60

50

40
Yes
30 No

20

10

0
No.of respondent Percentage
Satisfaction towards cab
Table 7
Particulars No. of respondents Percentage
Satisfied 22 32%
Moderately Satisfied 47 47%
Highly Satisfied 13 13%
Not Satisfied 8 8%
Total 100 100%

Data Research
It is clear from the table no. 12 analysis that 47 percentage respondents are
moderately satisfied by cab, 32 percentage respondent are satisfied, 13
percentage respondent are highly satisfied and 8 percentage are not satisfied
with cab.
Questionnaire :

1.Age
Satisfaction towards cab
50
45
40
35
30
25
20 Satisfaction towards cab
15
10
5
0
ed ed ed ed
tisfi tisfi tisfi tisfi
Sa Sa Sa a
tS
tely ghly
No
a Hi
der
o
M

o below 20 o Above 20

o 40+ o 60+

2. Qualification

o School o UG

o Household o Professional

3. Occupation

o Student o Govt emp/ Private emp

o Household o Business

4. Monthly Income

o Below 10,000 o 10001 to 25000

 o Rs. 25000 to 40000 o Above 100000

5. No. of Family Members

o2 o3

o4 o Above 4

6. Family

o Nuclear o Joint family

7. How often do you travel by cab?

o Every day o Every week

o Every 2-3 weeks o Every month

8. Do you have taxi app in your phone?

o Yes o No

9. What is your average cab journey?

o 15-29 minutes o 30-44 minutes

o 40-50 minutes o 60 minutes or more

10. Do you use cabs for personal or professional travel?

o Personal travel o Professional travel

o Both
11. Do you feel safe getting on cab on your own, during day time?

o Yes o No

12. Do you feel safe getting on cab on your own, during night time?

o Yes o No

13. Do you like your cab driver to engage in conversation?

o Yes o No

14. If you book through app please rate the quality of booking service?

o Excellent o Good

o very Good o Very Poor

15. What is the reason for choosing cab services?

o Convenient o Faster

o Cost effectiveness o Door to door access

16. Are you satisfied with the quality of services provided by cab?

o Yes o No

17. How do you feel about pricing of cabs to others?

o Expensive o Competitive

o Economic
18. Do you want any additional features to be included to the cab services in the

future?

o Yes o No

19. Beinga user have you ever rated driver?

o Yes o No

20. What is your payment mode for ride?

o Cash o Paypal

21. Are you satisfied with upfront pricing of ride?

o Yes o No

22. Does upfront pricing is mostly similar after actual ride?

o Yes o No

23. Does usage of taxi app easy?

o Yes o no