CHAPTER-1

INTRODUCTION
NEED OF THE STUDY
OBJECTIVES OF THE STUDY
METHODOLOGY
LIMITATIONS OF THE STUDY
 INTRODUCTION

CUSTOMER SATISFACTION

Customer satisfaction is a business philosophy which tends to the creation of value for
customers, anticipating and managing their expectations, and demonstrating ability and
responsibility to satisfy their needs. Quality of service and customer satisfaction are critical
factors for success of any business. The key to achieve sustainable advantage lies in
delivering high quality service that results in satisfied customers. Service quality and
customer satisfaction are key factors in the battle to obtain competitive advantage and
customer retention.

Customer satisfaction is the outcome of customer’s perception of the value received in a

transaction or relationship, where value equals perceived service quality, compared to the
value expected from transactions or relationships with competing vendors. In order to
achieve customer satisfaction, it is important to recognize and to anticipate customers' needs
and to be able to satisfy them. Enterprises which are able to rapidly understand and satisfy
customers' needs, make greater profits than those which fail to understand and satisfy them.
Since the cost of attracting new customers is higher than the cost of retaining the existing
ones, in order to be successful managers must concentrate on retaining existing customers
implementing effective policies of customer satisfaction and loyalty.

This is especially true in the hotel industry. Nowadays one of the biggest challenges for
managers in the hotel industry is to provide and sustain customer satisfaction. Customer
requirements for quality products and service in the tourism industry has become
increasingly evident to professionals. Guest relationships are a strategic asset of the
organization and customer satisfaction is the starting point to define business objectives. In
this context, positive relationships can create customer’s higher commitment and increase
their return rate. Long-term and reciprocally advantageous relationships between customers
and the hotel is becoming progressively important because of the highly positive correlation
between guests' overall satisfaction levels and the probability of their return to the same

1
hotel. Hotels are increasing their investments to improve service quality and the perceived
value for guests so as to achieve better customer satisfaction and loyalty, thus resulting in
better relationships with each customer. Relationship quality has a remarkable positive
effect on hotel guests’ behavior: it creates positive word of mouth and increments repeated
guest rates.

Customer satisfaction vs. customer loyalty:

Customer satisfaction measures how happy a customer was with a support interaction or a
purchase. Customer loyalty, on the other hand, is an ongoing state. Loyal customers give a
company their repeat business over time. It's not a short-term measure, but rather a long-
term understanding of the health of your customer relationship.

When you create and maintain a customer experience that resonates with buyers, customers
return again and again. Ensuring high customer satisfaction in the short term is a key
component of gaining that long-term customer loyalty.

Why is customer satisfaction important?

Customer satisfaction is important because it means your customer base likes what you are
doing. Research shows that customer satisfaction leads to greater customer retention, higher
lifetime value and a stronger brand reputation.Recent definitions of marketing place more
emphasis on the consumer relationship, as opposed to a pure exchange process. For
instance, prolific marketing author and educator, Philip Kotler has evolved his definition
of marketing. In 1980, he defined marketing as "satisfying needs and wants through an
exchange process", and in 2018 defined it as "the process by which companies engage
customers, build strong customer relationships, and create customer value in order to
capture value from customers in return". A related definition, from the sales process
engineering perspective, defines marketing as "a set of processes that are interconnected and
interdependent with other functions of a business aimed at achieving customer interest and
satisfaction".

2
 NEED OF THE STUDY

To know the customer satisfaction at Manjeera Sarovar Hotel is essential for maintaining a
competitive edge in the hospitality industry. By understanding guests' perceptions,
preferences, and pain points, the hotel management can make informed decisions to enhance
service quality and guest experiences.

This research provides valuable insights into areas that require improvement, whether it's the
cleanliness of rooms, responsiveness of staff, or the variety of amenities offered. Addressing
these aspects not only fosters customer loyalty but also helps attract new guests through
positive word-of-mouth recommendations and online reviews.

To know the align its operations with evolving consumer expectations. In an increasingly
competitive market, where guest preferences and trends continuously change, staying
attuned to customer feedback is paramount for staying ahead of the curve. By investing in
research and actively seeking feedback from guests, the hotel demonstrates a commitment to
excellence and a willingness to adapt, ultimately driving long-term success and
sustainability.

3
 OBJECTIVES OF THE STUDY

• To know the factors influencing customer satisfaction.

• To know the key drivers of customer satisfaction.

• To know the areas where customers feel most satisfied or dissatisfied.

• To know how customers perceive the quality of products/services.

• To know if there are any gaps between customer expectations and actual experiences.

• To know the areas of improvement needed to enhance overall customer satisfaction.

• To know the impact of customer satisfaction on loyalty and repeat business.

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 METHODOLOGY

Research in common refers to a search for knowledge. Research methodology is a way to

systematically solve the research problem. It may be understood as science of studying how
research is done scientifically.

SOURCES OF DATA
The data is collected through in two ways:

PRIMARY DATA

The primary data was collected freshly and thus it was original in character. It has been
collected through questionnaire. The questionnaires were given to the respondents when they
visited respective hotels and consumers.

SECONDARY DATA

Secondary data are data which have already been collected by someone. Its main sources are
Journals, Newspapers, Magazines, and Internet etc.

AREA OF ANALYSIS

The study was conducted in Rajahmundry city.

RESEARCH DESIGN

Sample size – 50
Survey instrument: Questionnaire
Sample technique – Convenience sample technique

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 LIMITATIONS OF THE STUDY

• The time period that has been allotted for the study is critical for me as per my
experience so, regardless my condition and circumstances I have tried to give my
best.

• Most of the project information is the collection and extraction from the secondary
sources /secondary data from the world wide web.

• The above information maybe or may not be accurate as it has been collected from the
secondary sources of data.

• Extraction and execution or presentation of the data is from my filtration and

presentation skills so I request the examiner to analyze the data with patience and
consideration of efforts and skills.

• Some of the people are not interested to share the information.

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 CHAPTER-2
INDUSTRY PROFILE
 INDUSTRY PROFILE

HISTORY OF HOTEL INDUSTRY:

The hotel industry has a rich history dating back centuries. It evolved from ancient inns and
taverns to the luxurious accommodations we see today. One of the earliest recorded hotels
was the Nishiyama Onsen Keiunkan in Japan, founded in 705 AD and still operational
today. Throughout history, hotels played crucial roles in facilitating trade, providing shelter
for travelers, and serving as social hubs. The modern hotel industry began to take shape in
the 18th century with the opening of luxury establishments like the City Hotel in New York
City in 1794. The industrial revolution and advancements in transportation further fueled the
growth of hotels, leading to the emergence of iconic properties like The Ritz in London and
The Plaza in New York City. In the 20th century, chains like Hilton, Marriott, and
InterContinental revolutionized the industry with standardized services and global
expansion. Today, the hotel industry continues to evolve, embracing technology,
sustainability, and personalized experiences to meet the changing needs of travelers.

MARKET SIZE OF HOTEL INDUSTRY:

The hotel industry is a significant player in the global economy, with its market size varying
depending on factors such as region, market segment, and economic conditions. As of my
last update in January 2022, the global hotel industry was estimated to be worth over $600
billion annually. However, this figure can fluctuate due to various factors such as economic
downturns, natural disasters, and global events impacting travel and tourism. Despite
occasional challenges, the hotel industry generally maintains steady growth due to
increasing travel demand, globalization, and the rise of emerging markets.

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INDUSTRY OVERVIEW:

The information presented in this section has been extracted from publicly available
documents, which have not been prepared or independently verified by the Company, the
Lead Manager or any of their respective affiliates or advisors.

INDUSTRY GROWTH:

The hotel industry has experienced significant growth over the years, driven by factors such
as increasing globalization, rising disposable incomes, expanding travel and tourism, and
advancements in technology. Emerging markets, particularly in Asia-Pacific and Latin
America, have witnessed rapid growth in both domestic and international tourism, leading to
increased demand for hotel accommodations. Additionally, the proliferation of online
booking platforms has made it easier for travelers to find and book accommodations, further
fueling the industry's growth. Despite occasional setbacks due to factors like economic
downturns or global events, the long-term trend for the hotel industry has been one of
expansion and innovation. With evolving consumer preferences and technological
advancements, the industry continues to adapt and grow, offering a wide range of
accommodations and experiences to meet the diverse needs of travelers worldwide.

INDIAN HOTEL INDUSTRY:

The Indian hotel industry is a dynamic and diverse sector that has undergone significant
growth and transformation in recent decades. India's hotel industry has benefited from
various factors such as economic growth, increasing disposable incomes, a growing middle
class, and government initiatives to promote tourism.

Historically, India has been known for its rich hospitality traditions, with ancient inns,
guesthouses, and roadside lodges catering to travelers along trade routes. However, the
modern hotel industry in India began to take shape in the colonial era with the establishment
of iconic properties like the Taj Mahal Palace in Mumbai and the Imperial in Delhi.

8
In the post-independence era, the Indian hotel industry continued to evolve, with the
emergence of domestic hotel chains and international brands entering the market. The
industry experienced rapid expansion in the late 20th and early 21st centuries, driven by
factors such as increasing domestic and international tourism, growing business travel, and
the rise of online booking platforms.

Today, India's hotel industry encompasses a wide range of accommodations, from budget
hotels and mid-scale properties to luxury resorts and boutique hotels. Major hotel chains like
Taj, Oberoi, ITC, Marriott, and Accor have a strong presence across the country, serving
both leisure and business travelers.

Despite occasional challenges such as regulatory issues, infrastructure constraints, and

competition from alternative accommodations like Airbnb, the Indian hotel industry remains
resilient and continues to attract investment and innovation. With the government's focus on
tourism promotion, infrastructure development, and initiatives like the "Incredible India"
campaign, the future outlook for the Indian hotel industry appears promising.

BUSINESS ENVIRONMENT IN INDIA

High Growth Economy:

The current business environment in India features a strong economic growth, characterized
by increasing prominence of services and knowledge based industries and increasing FDI
flows. With an expected real GDP growth of over 89% for the current fiscal, India is one of
the high growth economies, ahead of its Asian counterparts such as Malaysia, Thailand, and
Philippines, and developed economies such as United States & United Kingdom. According
to the World Bank, India is now the fourth largest economy on the basis of its purchasing
power parity.

Global Services Hub:

The services sector is expected to be a major driver of economic growth. The share of
services in GDP has consistently grown from 43% in early nineties to about 56% in 2003-

9
2004. This rising contribution of the service industry is one of the most important growth
drivers for India's economy. India's competitive edge in services is its large educated
workforce with over 380 universities and 2.6 mn graduates (including 200,000 engineering
graduates and 300,000 post graduates produced every year). The significant manpower
advantage has resulted in India emerging as a major destination for outsourcing of R& D, IT
and BPO services.

Increasing Foreign Participation:

FDI has been recognized as one of the important drivers of economic growth of a country.
The Indian Government has therefore taken a number of steps to invite and facilitate FDI
investment, in many key sectors. As a result FDI inflows have increased significantly from
1994 to 2005. The government has decided to allow FDI of up to 100% under the automatic
route in townships, housing, built-up infrastructure and construction development projects
(which would include, but not be restricted to housing, commercial premises, hotels, resorts,
hospitals, educational institutions, recreational facilities), subject to fulfillment of certain
conditions.

The gradual opening up of the sector for FDI by the Government and support of state
governments to realty developments has further aided the sector by bringing in the much-
needed investment, apart from professional players equipped with expertise in real estate
development. The introduction of new technology and quality real estate assets is expected
to have demonstration effect on the local developers and lead to an improvement in the
quality of related infrastructure.

CONSTRUCTION INDUSTRY:

The construction sector plays a pivotal role in the economy of a nation. It is an integral part
and defines a country's infrastructural and industrial landscape. It includes hospitals,
schools, townships, offices, houses. and other buildings; industrial construction; urban
infrastructure (including water supply, sewerage, drainage); highways, roads, ports,
railways, airports; power systems; irrigation and agriculture systems; telecommunications
etc. Covering so wide a spectrum, construction forms a basic input for socio-economic
development.
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Role of the construction sector in the economy

The construction industry generates substantial employment and provides a growth impetus
to other sectors through multiple linkages. Hence it is regarded as one of the most important
nation building sectors in an economy.

The construction sector is the third largest employer in the country after agriculture and
retail. In 1999-2000, the sector employed 17.62 million workers, a rise of 6 million over
1993-94. It also recorded the highest growth rate in generation of jobs in the last two
decades, doubling its share in total employment.

COMPONENTS (SEGMENTS) OF THE CONSTRUCTION INDUSTRY:

The Indian construction industry can be broadly divided into three segments:

1. Infrastructure segment
2. Industrial segment
3. Housing segment

Overall, the construction industry is highly fragmented; the industry's low capital-intensity
and low entry barriers are primarily responsible for this. The fragmentation is, however,
limited in the infrastructure and industrial projects segments as compared to the housing
sector since the former require more specialized skill sets.

INFRASTRUCTURE SEGMENT:

Valued at Rs.2, 070 bn., the infrastructure segment is the largest within the construction
industry and can be broadly divided into environment and transport-related construction
activities. While the environment segment includes dams, water supply, sewerage and solid

waste treatment plants, the transport segment consists of roads, highways, bridges, ports and
railways, airports etc. The infrastructure segment is expected to witness rapid growth over

11
the next five to seven years as the central and state governments' thrust on the development
of urban and rural infrastructure intensifies. Factors like total infrastructure development
outlay of Rs. 1,738 billion between FY02-07 (Tenth Five Year Plan), high government
expenditure and increasing privatisation will continue to stimulate growth in the
construction industry. The sector is likely to receive prospective investments of Rs 3,000
billion over the next 2 years (2005-06 and 2006-07) an over 25 per cent increase from the
estimated investments in the last 2 years (2003-04 and 2004-05). Based on the proportion of
civil construction related expenses in each sector, it is estimated that these projects have a

potential to translate into orders worth Rs.1, 800 billion for the construction industry.

INDUSTRIAL CONSTRUCTION SEGMENT:

Industrial construction projects include construction of manufacturing facilities, civil and

structural activities for a number of capital-intensive industries like cement, fertilizers,
petroleum etc. The total outlay for the industrial segment in the Tenth Five Year Plan is
Rs.2560 billion, a growth of 103% from the outlay of Rs.1262.3 billion in the Ninth Five
Year Plan. The total investments in the key segments of the manufacturing sector are
projected to increase from Rs.220 billion per annum (1998-99 to 2004-05) to Rs.734 billion
per annum over the next 5 years (2005-06 to 2009-10), propelled by investments in oil and
gas, and metals. Other industries such as automobiles, petrochemicals, cement, paper and
fertilizers are also expected to record substantial investments during the forecasted period.
Assuming civil construction to account for nearly 15% of the total capital cost of the
projects, this huge investment is likely to generate construction demand of around Rs.550
billion from industrial projects.

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GROWTH DRIVERS OF HOUSING SEGMENT

The main growth drivers of the Housing segments are as follows:

1. Resurgent Indian Economy:

The Indian Economy has made great strides in the years since independence. Industry and
service sectors have been growing in importance and now account for 26% and 48% of GDP
respectively. Significant changes have taken place since the early nineties. These include
liberalized foreign investment and exchange regimes, significant reductions in tariffs and
other trade barriers, reform and modernization of the financial sector, and significant
adjustments in government's monetary and fiscal policies. These reforms have made India
among the fastest growing economies in the world. Today India is considered one of the
most preferred economies by the investors among the developing countries.

2. Changing Demographics:

The middleclass segment has been gradually increasing in the recent years, which are
having more disposable income to spend on consumer goods. Also, India has one of the
youngest populations in the world. The literacy levels of population particularly middle class
are going up. This implies that as the youth are getting better education; their adaptability to
few technologies is increasing as result of which continuous urbanization is taking place,
leading to increase in the consumption.

The Indian urban middle class (annual income Rs. 90,000 Rs. 500,000), who holds the key
to consumer spending, has seen its share in total urban households increase from about 45%
in 1998-99 to about 51% in 2001-02. Urban middle class households in India are expected to
account for about 63% of the total urban households by 2009-10. More importantly, the
average income of the urban middle class has increased from Rs. 163,000 in 1998-99 to
nearly Rs. 169,000 in 2001-02, and is expected to increase to Rs. 194,000 by 2009-10.
(Source: CRIS INFAC).

13
3. Increasing percentage of population in age group of 25-44:

Given the rising income levels and the decreasing age of those buying homes (currently 35-
36 years), the population in the 25-44 age group holds the key to the growth in housing
demand. At present, about 28% of India's population is in the 25-44 age brackets. This
figure is expected to increase to about 30.6% by 2025, an addition of approximately 5.5
million people each year, which could translate to a further 2.75 million new households per
year. (Source: CRIS INFAC).

4. Shrinking household size augments demand for houses:

The joint family system in India is gradually giving way to nuclear families. Consequently,
the average size of the Indian household has shrunk from about 5.59 persons in 1971 to
about 5.30 persons in 2001. Increasing urbanization and migration for employment
opportunities are expected to narrow down the size of the average household to about 4.97
persons by 2011. Given India's burgeoning population, the contraction in the size of the
average household offers a strong positive outlook for housing demand. (Source: CRIS
INFAC).

5. Increasing median home size:

Rising income levels have increased the aspirations of borrowers to live a better life. This,
coupled with easy availability of finance and steady real estate prices, has led to people shift
towards larger houses.

6. Increasing Participation by Banks/Housing Finance Companies (HFCs):

Banks and Housing Finance Companies have been offering housing loans with add on
benefits Viz. Individual Accident Cover, Loan Liability Repayment Insurance Cover in case
of death etc. They have also been simplifying their products making the borrowing least
hassle free.

14
7. Shift in consumer preference from rented houses to owned houses:

Over the years, there has been a significant decline in the proportion of households staying
in rented premises. This can, to some extent, be attributed to rising income levels. In
addition, the old Rent Control Act (State Act) offered greater protection to the tenant and
low rentals made returns on investments in rental property unattractive. But with fewer
properties available on rent today and a rise in rentals, consumers have found it more
prudent to invest in property for self occupancy. Rising aspirations levels and the easy
availability of finance besides income tax benefits available to house purchasers are
expected to fuel this trend. (Source: CRIS INFAC).

8. Changing Profile of Developers/Builders:

Real estate developers and builders are also changing their profiles. They have started
becoming more organized, with a clear focus on building superior infrastructure, using the
best quality and the most economic materials. They are emphasizing on newer and better
designs, with reliable construction management, employing trained professionals to help
them implement new projects faster and in a more efficient manner. Technology has evolved
in the construction business, so using them, as part of the process has been very vital in these
competitive environments. The banks have also played an important role in the process, by
increasing the availability of funds, which has helped evolve a new breed of developers.

9. Fiscal Incentives:

In order to induce demand, the government provides tax incentives to the borrowers that
reduce the cost of borrowing, making the option of availing of a loan to purchase/construct a
house more economical. Interest payments up to certain levels on housing loans can be
claimed as a deduction from the taxable income and annual principal repayment up to a
particular level is eligible for a rebate from the tax liability. An exemption of long-term
capital gains can be availed of in the case of re-investment in a second property.

15
MANJEERA HOTELS & RESORTS LIMITED

The company was incorporated on December 21, 1992. The Company is engaged in
Hospitality business
having its 3 star hotel in Hyderabad, namely, Aditya Park. The Board of Directors comprises
of five directors
namely, Mr. G.Yoganand, Mr.Kiran Kumar, Mr. M. V. Sudarsan, Mr. K Shiva Kumar and
Mr. Bhupinder
Singh.
This is to confirm that all the relevant provisions of the Companies Act, 1956 and the
guidelines issued by the Government have been complied with and no statement made in
this Information Memorandum is contrary to the provisions of the Companies Act, 1956 and
rules made there under. All the legal requirements connected with this said offer as also the
guidelines, instructions etc., issued by SEBI, the Government and any other competent
authority in this behalf have been duly complied with.

BUSINESS STRATEGY:

The key elements of our business strategy are as follows:

a. To increase presence in the real estate market of Hyderabad

Our residential development activities have been focused on Hyderabad as Hyderabad has
vast
potential in respect of real estate development in the areas of residential projects,
commercial projects, office complexes and other infrastructural facilities. As such the
company is aiming to penetrate in the real estate market of Hyderabad on the strength of
project execution expertise, stringent quality norms, cost effective projects and value added
amenities. With the help of these strengths, the company wishes to grab the opportunity for
any real estate project in Hyderabad and prove its competitive strengths. Thus, the strategy is
to become a major real estate development company with the highest standards
of professionalism, ethics and customer service and thereby to contribute to and benefit from
the growth of the Indian economy.

16
b. Diversify our portfolio of projects

The company intends to expand the portfolio of projects, thereby further diversifying the
revenue streams and enhancing the value and position of its brand. The company is engaged
in property development – Housing Segment and to some extent in to Commercial Segment
and intends to further develop business lines in which it has recently commenced activities,
such as the development of shopping malls, office complexes etc.

c. Maintain high standards of quality and continue to enhance our

brand andreputation by delivering value to our customers

The company intends to continue to promote and expand its brand. It will do so by
continuing to focus on quality and innovation in its property projects in order to deliver in a
timely manner and maximize client satisfaction. It also intends to continue to use
technologically advanced tools and processes to ensure quality construction. It also intends
to continue to further enhance its architectural, design, construction, and development
capabilities to enable it to provide innovative, modern and quality products and services to
its customers.

SALES:

The company’s sales efforts begin as soon as practicable after it enters into an agreement to
acquire land. It typically builds, furnish and landscape model units for each residential
project and maintain on-site sales offices. It generally opens an on-site sales office before
the construction of the model unit is completed. This on-site sales office is utilized to
commence the sales process to potential customers. The sales center is later generally moved
to one of the model units. The company generally sells its developments through sales
representatives who typically work from the sales offices located at respective sites. When
appropriate, the company also uses listing and cooperative brokers to sell its units. The
company is generally able to sell a portion of its land inventory on a pre- development basis,
thereby reducing the amount of external capital needed to complete improvements.

17
MARKETING AND POST – COMPLETION:

The company’s marketing department is responsible for procuring customers, for sales, for
the units in our developments and for conducting pre-sales. It market company’s units
through marketing techniques such as newspaper. The company is not, however, engage on
an exclusive basis the services of any real estate brokerage or mortgage lender in connection
with the sale or lease of its developments. A significant number of its residential
development units are pre-sold prior to completion of the development. In connection with
its pre-sales of residential units, the company requires that customers must pay advances on
the purchase price, which advances its residential customers are required to increase in
amount as it progresses through various milestones or stages of construction of its residential
unit. The company’s marketing department is responsible for the booking of sales once
customers are identified and collects all customer deposits. The company seeks to foster
good relations with our customers and to keep in touch with them by sending periodic
newsletters and mail pieces. In each of its developments the company will provide all of
its customers a pre-occupancy inspection with its site engineer as well as with a customer
survey encouraging constructive feedback on its developments. We actively follow up with
the collection of these surveys.
The company manages all of its commercial and retail properties and, in respect of its
residential developments it also provide property management services for a limited time,
until the formation of a co- operative residents association for each of its residential projects.

INSURANCE:

The company’s operations are subject to hazards inherent in the construction industry, such
as risk of equipment failure, work accidents, fire, earthquake, flood and other force majeure
events, acts of terrorism and explosions including hazards that may cause injury and loss of
life, severe damage to and the destruction of property and equipment and environmental
damage. It may also be subject to claims resulting from defects arising from engineering,
procurement or construction services provided by us within the warranty periods extended
by us, which can range from 12 months from the date of their delivery to the client. We
obtain specialized insurance for construction risks and third party liabilities for most projects

18
for the duration of the project. The company generally maintains insurance covering our
assets and operations at levels that it believes to be appropriate.

HEALTH, SAFETY AND ENVIRONMENT:

The company is committed to comply with applicable health, safety and environmental
regulations and other requirements in its operations and also have workmen’s compensation,
group medical insurance and a personal accident insurance policy in place. To help ensure
effective implementation of its practices, at the beginning of every project it identifies all
potential material hazards, evaluate all material risks and institute, implement and monitor
appropriate risk mitigation measures. The company believes that accidents and occupational
health hazards can be significantly reduced through the systematic analysis and control of
risks
and by providing appropriate training to management, employees and sub-contractors. The
company seeks to work proactively towards minimizing or eliminating the impact of hazards
to people and the environment. Project heads are principally responsible for ensuring that
safety standards are met at project sites.

OTHER REGULATORY AND STATUTORY DECLARATIONS:

PROHIBITION BY SEBI

The Company, its Promoters, its Directors or any of the Company’s associates or group
companies and companies with which the Directors of the Company are associated as
Directors or Promoters, or Directors or Promoters in control of, of the promoting Company,
are currently not prohibited from accessing or operating in the capital market under any
order or direction passed by SEBI. The listing of any securities of the Issuer has never been
refused at any time by any of the Stock Exchanges in India or abroad. Further the Promoters,
their relatives (as per Act), the Company, group companies,associate companies are not
detained as willful defaulters by RBI / Government authorities.

19
DECLARATION:

This is to confirm that all the relevant provisions of the Companies Act, 1956 and the
guidelines issued by the Government have been complied with and no statement made in
this Information Memorandum is contrary to the provisions of the Companies Act, 1956 and
rules made there under. All the legal requirements connected with this said offer as also the
guidelines, instructions etc., issued by SEBI, the Government and any other competent
authority in this behalf have been duly complied with.

20
 CHAPTER-3
COMPANY PROFILE
 COMPANY PROFILE

HISTORY OF THE COMPANY:

The Company was incorporated under the Companies Act, 1956 in the year 1987 under the
name and style of Manjeera Constructions Private Limited. It was incorporated with an
object of pursuing Real Estate and Construction Business. The company was converted into
a public limited company w.e.f. December 15, 1995.

The Registered Office and Corporate Headquarters of the Company are located at #304,
Aditya Trade Centre, Aditya Enclave Road, Ameerpet, Hyderabad 500 038, Andhra
Pradesh, India

The company made its maiden public issue of 20,00,000 equity shares of Rs. 10 each at par
in September 1996 and the issue was successful and the company's equity shares were listed
at BgSE, HSE, ASE and MSE Subsequently in the year 2007, the company has completed
Rights issue and as a result the paid up and listed capital of the company has gone up to
12508418 equity shares of Rs. 10 each.

Subsidiaries of the Company:

Manjeera Retail Holdings Private Limited is the only subsidiary of the Company with effect
from March 22, 2007.

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OUR MAIN OBJECTS:

The main objects of the Company as set forth in its Memorandum of Association, inter alia,
are:

1. Carry on the business of builders and contractors.

2. To purchase, acquire, buy, construct, sell take on lease for the purpose of investment or
resale or otherwise and to traffic of any kind, tenure and any interest there in and to acquire,
sell, speculate and deal in free holds and house holds and to make advances upon the
hypothecation mortgage or security of land or house, or other property of any description or
any interests therein and generally to deal in traffic and speculate by way of sale, lease,
exchange or otherwise with land and house property and any other property of any
description whether real or personal, movable or immovable.

3. To construct, let-out, furnish and carry on all or any of the functions of proprietors of flats
maisonettes, rooms, dwellings houses, shops offices and clubs and for this purpose of
purchase take on lease or other wise acquire and hold any lands and prepare layouts thereon
building of any tenure or description wherever situate, or rights or interests therein or
connected therewith, to layout, prepare building sites and to construct, reconstruct, repair,
pull down, alter, improve, decorate furnish and maintain flats, maisonettes, dwelling houses,
shops offices, buildings works and sanitary convenience of all kinds to lay out roads,
drainage pipes water pipes and or other wise improve the land or any part thereof.

4. To layout develop construct build erect demolish, re-erect, alter, repair, remodel, or do
any other work in connection with any building or scheme, roads, highways, docks, ships,
sewers, bridges, canals wells springs, serials, dams, power plants, ports, reservoirs,
embankments, or any other structural or architectural work of any kind whatsoever and for
such purpose prepare estimates, designs, plans, specifications of models.

5. To act as technical consultants, engineers, builders and architects.

22
Summary of the Industry and Business of the Company:

INDUSTRY:
The construction sector plays a pivotal role in the economy of a nation. It is an integral part
and defines a country's infrastructural and industrial landscape. It includes hospitals,
schools, townships, offices, houses and other buildings: industrial construction; urban
infrastructure (including water supply, sewerage, drainage); highways, roads, ports,
railways, airports; power systems; irrigation and agriculture systems; telecommunications
etc. Covering so wide a spectrum, construction forms a basic input for socio-economic
development. The construction industry generates substantial employment and provides a
growth impetus to other sectors through multiple linkages. Hence it is regarded as one of the
most important nation building sectors in an economy.

The Indian construction industry can be broadly divided into three segments:

1. Infrastructure segment
2. Industrial segment
3. Housing segment

Overall, the construction industry is highly fragmented; the industry's low capital-intensity
and low entry barriers are primarily responsible for this. The fragmentation is, however,
limited in the infrastructure and industrial projects segments as compared to the housing
sector since the former require more specialized skill sets.

Gol has been emphasizing on the growth of construction industry and with this view in mind
Gol has been allocating higher resources to the construction industry covering infrastructure,
industrial and housing segments which can be substantiated by the fact that the allocation to
the Tenth Plan (2002-07) was increased by 71% to Rs. 4529.50 bn from Rs. 2648.70 bn
(actually spent) for the Ninth Plan (1997-01).

MCL carry out its construction activities in the housing segment with a focal point of its
activities in and around Hyderabad, a mega city and Capital of Andhra Pradesh.
23
Consolidated Key Financials for the last two financial periods:

Since MRHPL was converted as subsidiary during the last financial year ended March 31,
2007 and there was no other subsidiary of the company prior to the conversion of MRHPL,
as a subsidiary.

Sarovar Hotels & Resorts

Pioneered in venturing into the mid-market segment in the Indian hospitality landscape. The
Company over a period of 18 years has successfully churned the demand in this segment,
and is now the third largest chain in India, with 56 hotels across the country and overseas. It
has a diverse portfolio encompassing hotels, resorts, restaurants and corporate hospitality.
The properties vary by type, size and the market niche they serve. It provides a consummate
and unmatched international hospitality experience at competitive price offerings

Vision:
To strengthen our position as a leading player in the hospitality landscape.

Mission:
To provide our guests a superior hospitality experience at excellent value in varied market
segments

To provide our employees a great work environment, continuous satisfaction and growth
opportunities while treating each other with respect and dignity

24
To recognize that profitability is essential to our future success and therefore provide our
property owners and investors the highest possible returns.

To focus on our growth and maintain consistency in product through warm, personalized
service and absolute transparency in all our dealings

To contribute positively to our communities and our environment

Ethos:

In the global communion, Sarovar Hotels has capitalized on the emerging business
opportunities by adopting a dynamic and performance driven approach, evolving constantly
and adapting swiftly.

A strong focus on the proverbial bottom line, continued development of staff and an intricate
understanding of the needs of the Indian market and consumer have catapulted the Company
to its present glory. Through experts and a comprehensive involvement it tries to make every
project a success.

The Company firmly believes that mutual respect, long term partnerships and strong ethics
and integrity are essential to achieve ultimate success. It follows the principle- collaboration
is the key word to mutual success and growth.

Experience:
The Company is managed by competent professionals endowed with a wealth of experience.
It is their keen understanding of the hospitality business and their experts in technical
knowledge that has propelled the Company to the forefront of the hotel industry.

Sarovar Hotels continues to enter into strategic tie-ups and excels through innovative
hospitality solutions. It has pioneered unique food and beverage concepts. Geoffrey'sT Pubs
are unanimously hailed as some of the finest in the country.
It has been associated with a number of prestigious projects from time share groups,
construction giants, premier educational institutes and other industry leaders.

25
Expertise:

Sarovar Hotels is one of the few hospitality groups that has access to a vast reservoir of
experienced professionals and technical experts.

The Company offers its partners:

• A team of thorough professionals with an exemplary track record, all of whom have held
senior management positions with the finest hotel companies in India and overseas.

• A strong team of corporate operating heads supported by senior specialists in Food and
Beverage, Kitchen, Housekeeping, Engineering, Finance and Sales and Marketing

• A strong sales network across India backed by the support of the global sales offices of
Carlson Hospitality Worldwide.

• A strong nationwide network with the ability to deliver business to hotels.

• Continuous training and upgrade opportunities.

• Young and very motivated team of mid-level managers.

• Strong adaptability, proactiveness and ability to predict and adjust to environmental

forces.

• Ability to identify market gaps/niches and expand rapidly to fill the same.

• Ability to attract retairs, train and develop a level of talent otherwise difficult to achieve
for a single unit property.

• Value for money marketing strategy.

26
Future:

Sarovar Hotels is continuously working towards developing world class systems and a
training culture to deliver customer delight by continuously raising the levels of customer
satisfaction. It aims to extend the same Sarovar Hotels hospitality experience in every city
across India.

There is a constant endeavour to evolve into a progressive organization, which extends equal
opportunities of growth and progress for all its employees and partners by providing them
continuous training and counselling at every stage.

As the Company takes on the challenges of exploring new opportunities in the hospitality
business, you are invited to be a part of this journey in achieving mutual goals and setting
quality benchmarks for others to follow

ARTICLES:
Sarovar sees religious destinations

According to the Business Standard, Sarovar Hotels & Resorts, a hotel management
company. in India, is planning to tie-up with a South Africa-based hospitality company to
open chain of properties at religious destinations in India.

Currently, the company manages, franchises and markets 42 hotels and resorts in 36
locations in India and overseas, with a total of 3,300 rooms. These hotels have been
launched under five major brands: Sarovar Premiere, Sarovar Portico, Hometel, Park Plaza
and Park Inn.

"We are now at the stage of fine-tuning the agreement with the South Africa's hospitality
company," said Anil Madhok, managing director, Sarovar Hotels & Resorts. "The brand will
be jointly owned by us and the African company. They will build six hotels at various
religious destinations as per our specifications. We will also be able to use this brand for
other hotels that we take over at religious locations for management."
The company is affiliated with Carlson Hospitality Worldwide.

27
Sarovar Hotels & Resorts ties up with Africa-based Marasa Hospitality
Wednesday, June 29, 2011, 11:00 Hrs

By HBI Staff Mumbai:

Sarovar Hotels & Resorts has signed a joint venture (JV) agreement with Marasa Hospitality
Pvt Ltd, part of the Africa-based Madhavani Group, to open hotels in religious destinations
across India. According to the company release, hotels will be opened in Rajkot, Tirupati,
Bodhgaya and Rishikesh. Apart from these, other locations, which are being explored, are
Varanasi, Dharamsala and Puri. As part of the tie-up, Sarovar Hotels will provide technical
assistance from start to finish to all these projects besides managing the hotel operations and
marketing them.

All four hotels will have well appointed rooms, restaurants, lounges, banquet halls and other
facilities conforming to three-star standards. In the next five years, Sarovar Hotels and
Marasa Hospitality plan to mark their foot prints across all religious and pilgrimage
destinations within India.

Commenting on the tie-up Anil Madhok, Managing Director, Sarovar Hotels & Resorts said,
"Our agreement with Marasa Hospitality will further strengthen our foray into the religious
destinations across India. We are committed to providing good quality accommodation
options in all important towns including religious centres of the country. It is our endeavour
to offer unmatched services and accommodation at very competitive prices."

Analysis:

According to this i analysis Sarovar hotels are using the market developing strategy and
opening hotels in religious places, like Rajkot, Tinapati, Bodhgaya and Rishikesh.. Apart

from these, other locations, which are being explored, are Varanasi, Dharamsala and Puri.for
this purpose they are become the joint venture of Africa-based Marasa Hospitality, Sarovar
Hotels will provide technical assistance from start to finish to all these projects besides

28
managing the hotel operations and marketing them. So we can see they want to set their
business in religious areas and want to capture all the religious places, Because in India there
are so many people and foreign tourist always go to religious places so sarovar hotels had

making strategies to capture these tourist and provide them good and quality residents
facility
by opening their hotels in that area For this purpose they are also becoming the joint venture
of African company.

Now we can say they are using two important strategies for succession our business

1) Market development.

Under this strategy they are opening new hotels in many religious place like Rajkot,
Bodhgaya & Rishikesh ete and now they are making plan to capture all the religious places
of India and want to provide the best and quality residential facility to their customer.

2) Joint venture with African company.

For this purpose they are making the joint venture strategy with African company and want
to expand their business like Sarovar Hotels & Resorts ties up with Africa-based Marasa
Hospitality.

KEY PERSONS

ANIL MADHOK
Executive Chairman

An avid reader, a connoisseur of gourmet food and a strong believer of God is in the Details.

The Man behind the pioneeing story of quality mid-market hospitality in Indis And set up
Sarovar Hotels in 1994 Using his vast experience and keen foresight, he introduced the
concept of professionally managed Value for money hotels in Inda. He built Sarovar from
29
the ground up with strong foundations and drew the blueprint for the massive growth story
of the group as it stands today.

AJAY K. BAKAYA
Managing Director

"A leader is one who knows the way goes the way, and shows the way."

A seasoned hotelier, a trailblazer in hospitality and instrumental in the growth of Sarovar

Hotels, he champions the mid-market, driving brand vision to reality. Ajay has played an
integral part in the phenomenal growth story of Sarovar since its early inception, with
beginnings from a shared office table and the leadership of a singe hotel He has seen Sarovar
achieve enormous growth to its plethora of Hotels today.

MANSOOR ADIL
Senior Executive Vice-President

A people's persan, veteran hotelier, thinker, Mansoor oversees group's development plans,
direct investments, joint ventures and hotel operations, A St. Stephen's College Delhi
graduate he joined the Oberoi Group in 1981 and thereafter headed Taj Bengal Kolkata. He
underwent programs on finance and banking at the Chartered Institute of Bankers and the
RBI. At the Bank of Credit and Commerce he was Group Manager Credits for Asia Pacific
Restion, He was part of the first GE Capital BРО establishment in India. Mansoor has
worked extensively in UK Hongkong and the Middle East and India.

S. RAJA
Chief Financial Officer

Raja is responsible for Corporate Finance, Accounts, MIS, Treasury, Taxation and Company
Secretarial and legal matters. He is a Chartered Accountant and has over 25 years'
expenence in Finance and Banking sector. On the operational front, he defines P&L
investment plans and assists the company's decision makers by stepping into the "bad cop"
30
role to hold them accountable for performarice targets and also collaborate with the them on
the medium and long-term planning.

RAJESH RANJAN
Vice President - Development

Rajesh is responsible for all business and project development activities including global
franchisee and management contractin He spearheads the design and development think tank
responsible for strategic alliances, business growth initiatives, planning and launch of all
new hotels.

An alumnus of IHM Bhubaneswar, Rajesh enjoys around three decades of experience in

hospitality industry with phenomenal drive for results, excellent networking expertise in
hotel operations. technical services, owner relations, administration and asset management.

VIJAY JAISWAL
Senior Vice President Sales and Marketing

A proficient target onented professional, Vijay is responsible for overseeing the planning
and implementation of sales, marketing and product development programs for each brand
targeted towards existing and new markets. He is responsible for developing the strategic
sales and marketing plans based on company's goals that promotes the brand's growth and
customer satisfaction for the organization.

SWARUP DATTA
Regional Director

Swarup oversees Sarovar Hotels in Southern India. He is also in charge of business and
project development for the Company in this region, With an experience of more than two
decades in the Hospitality Industry, he is a certified Hotel Administrator from the American
Hotel and Lodging Educational Institute. A graduate from the Oberoi School of Hotel
Management Swarup is also an alumnus of IHM, Mumbai.

31
NARENDRA SINGH
Corporate Chef

Narender Singh brings with him a stellar experience of 32 years in the industry. With an
unbeatable passion for all things culinary, he specializes in international cuisines,
banqueting & conventions, events and fine dining restaurants. As Corporate Chef, Narender
Singh handles food & beverage development, facility planning for all Sarovar Hotels and
corporate institutions. He has spent time with some of the best names in the industry where
he extended prompt, efficient and accurate service to all guests serving the finest food.

SHATABDI DUTTA
Senior Manager - Marketing & Communications

Shatabdi oversees the Corporate and Hotel specific Marketing Functions. With her keen
attention to detail and pin-point precision, she has successfully rolled out Sarovar's major
Marketing Campaigns - "Happiness @ Sarovar".

Her prior experience includes stints with Make My Trip and has implemented unique and
fresh creative ideas of marketing and advertising, delivering profitable solutions to drive
sales, attract and maintain customers and build a corporate brand. As the Senior Marketing
Manager for Sarovar, she also orchestrated a multi-pronged campaign to help the brand
reach out to a wider audience pan-India. She was awarded the coveted "Marketing Person of
the Year" Award by Hotelier India for her marketing genius increasing Sarovar's brand
visibility.

RECOMMENDATION:

After analysis this i want to give following recommendation to samovars hotels:

1) Sarovar has providing different budget rooms for different people. ie, They have also
providing the rooms facility at cheapest price for those people those belong from middle
class families because in India there are so many middle class people those always go to
religious places due to this they can also capture these people.
32
2) They also do the market penetration strategies (sale promotion activities) for success their
business, for this they have to providing the discount facility to their customer during
unseasonal
e.g. during the festival mostly Indian people go to religious places but in unfestival only
some people visit in religious places. So with the help of sales promotion actives they can
attract lots of tourist during the unfestival season. This strategy is similar to increasing the
usage rate of their product,

3) They should also do the promotion actives for their hotels; with the help of it many
people know about them and can easily contact them before visiting the religious places.

4) For success their business they have to making the famous religious personality the brand
ambsedor for their hotels, this can also make the faith in customers mind for hotels,

33
 CHAPTER-4
THEORITICAL FRAME WORK
 THEORITICAL FRAMEWORK

CUSTOMER SATISFACTION

customer satisfaction is a term frequently used in marketing to evaluate customer

experience. It is a measure of how products and services supplied by a company meet or
surpass customer expectation. Customer satisfaction is defined as "the number of customers,
or percentage of total customers, whose reported experience with a firm, its products, or its
services (ratings) exceeds specified satisfaction goals. Enhancing customer satisfaction and
fostering customer loyalty are pivotal for businesses, given the significant importance of
improving the balance between customer attitudes before and after the consumption process.

Expectancy Disconfirmation Theory is the most widely accepted theoretical framework for
explaining customer satisfaction. However, other frameworks, such as Equity Theory,
Attribution Theory, Contrast Theory, Assimilation Theory, and various others, are also used
to gain insights into customer satisfaction. However, traditionally applied satisfaction
surveys are influence by biases related to social desirability, availability heuristics, memory
limitations, respondents' mood while answering questions, as well as affective, unconscious,
and dynamic nature of customer experience.

The Marketing Accountability Standards Board endorses the definitions, purposes, and
measures that appear in Marketing Metrics as part of its ongoing Common Language in
Marketing Project. In a survey of nearly 200 senior marketing managers, 71 percent
responded that they found a customer satisfaction metric very useful in managing and
monitoring their businesses. Customer satisfaction is viewed as a key performance indicator
within business and is often part of a Balanced Scorecard. In a competitive marketplace
where businesses compete for customers, customer satisfaction is seen as a major
differentiator and increasingly has become an important element of business strategy.

Purpose:

A business ideally is continually seeking feedback to improve customer satisfaction.

34
Customer satisfaction provides a leading indicator of consumer purchase intentions and
loyalty. The authors also wrote that "customer satisfaction data are among the most
frequently collected indicators of market perceptions. Their principal use is twofold:"

1. "Within organizations, the collection, analysis and dissemination of these data send a
message about the importance of tending to customers and ensuring that they have a positive
experience with the company's goods and services."

2. "Although sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will
make further purchases in the future. Much research has focused on the relationship between
customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are
most strongly realized at the extremes."

On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become
return customers and might even evangelize for the firm. A second important metric related
to satisfaction is willingness to recommend. This metric is defined as "the percentage of
surveyed customers who indicate that they would recommend a brand to friends." A
previous study about customer satisfaction stated that when a customer is satisfied with a
product, he or she might recommend it to friends, relatives and colleagues. This can be a
powerful marketing advantage. According to Faris et al., "individuals who rate their
satisfaction level as '1,' by contrast, are unlikely to return. Further, they can hurt the firm by
making negative comments about it to prospective customers. Willingness to recommend is
a key metric relating to customer satisfaction."

Theoretical ground:

In the research literature, the antecedents of customer satisfaction are studied from different
perspectives. These perspectives extend from the psychological to the physical as well as
from the normative perspective. However, in much of the literature, research has been
focused on two basic constructs, (a) expectations prior to purchase or use of a product and
(b) customer perception of the performance of that product after using it.

35
A customer's expectations about a product bear on how the customer thinks the product will
perform. Consumers are thought to have various "types" of expectations when forming
opinions about a product's anticipated performance. Miller (1977) described four types of
expectations: ideal, expected, minimum tolerable, and desirable. Day (1977) underlined
different types of expectations, including ones about costs, the nature of the product,
benefits, and social value.

It is considered that customers judge products on a limited set of norms and attributes.
Olshavsky and Miller (1972) and Olson and Dover (1976) designed their researches as to
manipulate actual product performance, and their aim was to find out how perceived
performance ratings were influenced by expectations. These studies took out the discussions
about explaining the differences between expectations and perceived performance."

In some research studies, scholars have been able to establish that customer satisfaction has
a strong emotional, i.e., affective, component. Still others show that the cognitive and
affective components of customer satisfaction reciprocally influence each other over time to
determine overall satisfaction.

Especially for durable goods that are consumed over time, there is value to taking a dynamic
perspective on customer satisfaction. Within a dynamic perspective, customer satisfaction
can evolve over time as customers repeatedly use a product or interact with a service. The
satisfaction experienced with each interaction (transactional satisfaction) can influence the
overall, cumulative satisfaction. Scholars showed that it is not just overall customer
satisfaction, but also customer loyalty that evolves over time.

The Disconfirmation Model:

"The Disconfirmation Model is based on the comparison of customers’ [expectations] and

their [perceived performance] ratings. Specifically, an individual’s expectations are
confirmed when a product performs as expected. It is negatively confirmed when a product
performs more poorly than expected. The disconfirmation is positive when a product
performs over the expectations (Churchill & Suprenant 1982). There are four constructs to
describe the traditional disconfirmation paradigm mentioned as expectations, performance,
disconfirmation and
36
satisfaction. Satisfaction is considered as an outcome of purchase and use, resulting from the
buyers’ comparison of expected rewards and incurred costs of the purchase in relation to the
anticipated consequences. In operation, satisfaction is somehow similar to attitude as it can
be evaluated as the sum of satisfactions with some features of a product. In the literature,
cognitive and affective models of satisfaction are also developed and considered as
alternatives (Pfaff, 1977). Churchill and Suprenant in 1982, evaluated various studies in the
literature and formed an overview of Disconfirmation process in the following figure:"

Construction:

A four-item six-point customer service satisfaction form

Organizations need to retain existing customers while targeting non-customers. Measuring
customer satisfaction provides an indication of how successful the organization is at
providing products and/or services to the marketplace.

"Customer satisfaction is measured at the individual level, but it is almost always reported at
an aggregate level. It can be, and often is, measured along various dimensions. A hotel, for
example, might ask customers to rate their experience with its front desk and check-in
service, with the room, with the amenities in the room, with the restaurants, and so on.
Additionally, in a holistic sense, the hotel might ask about overall satisfaction 'with your
stay.'"

As research on consumption experiences grows, evidence suggests that consumers purchase

goods and services for a combination of two types of benefits: hedonic and utilitarian.
Hedonic benefits are associated with the sensory and experiential attributes of the product.
Utilitarian benefits of a product are associated with the more instrumental and functional
attributes of the product (Batra and Athola 1990).

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of
the state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and recommend
rate. The level of satisfaction can also vary depending on other options the customer may
37
have and other products against which the customer can compare the organization's
products.

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988
provides the basis for the measurement of customer satisfaction with a service by using the
gap between the customer's expectation of performance and their perceived experience of
performance. This provides the measurer with a satisfaction "gap" which is objective and
quantitative in nature. Work done by Cronin and Taylor propose the
"confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman,
Zeithaml and Berry as two different measures (perception and expectation of performance)
into a single measurement of performance according to expectation.

The usual measures of customer satisfaction involve a survey using a Likert scale. The
customer is asked to evaluate each statement in terms of their perceptions and expectations
of performance of the organization being measured.

Good quality measures need to have high satisfaction loading, good reliability, and low error
variances. In an empirical study comparing commonly used satisfaction measures it was
found that two multi-item semantic differential scales performed best across both hedonic
and utilitarian service consumption contexts. A study by Wirtz & Lee (2003), found that a
six-item 7-point semantic differential scale (for example, Oliver and Swan 1983), which is a
six-item 7-point bipolar scale, consistently performed best across both hedonic and
utilitarian services. It loaded most highly on satisfaction, had the highest item reliability, and
had by far the lowest error variance across both studies. In the study, the six items asked
respondents’ evaluation of their most recent experience with ATM services and ice cream
restaurant, along seven points within these six items: “pleased me to displeased me”,
“contented with to disgusted with”, “very satisfied with to very dissatisfied with”, “did a
good job for me to did a poor job for me”, “wise choice to poor choice” and “happy with to
unhappy with”. A semantic differential (4 items) scale (e.g., Eroglu and Machleit 1990),
which is a four-item 7-point bipolar scale, was the second best performing measure, which
was again consistent across both contexts. In the study, respondents were asked to evaluate
their experience with both products, along seven points within these four items: “satisfied to
dissatisfied”, “favorable to unfavorable”, “pleasant to unpleasant” and “I like it very much to
I didn’t like it at all”. The third best scale was single-item percentage measure, a one-item 7-
38
point bipolar scale (e.g., Westbrook 1980). Again, the respondents were asked to evaluate
their experience on both ATM services and ice cream restaurants, along seven points within
“delighted to terrible”.

Finally, all measures captured both affective and cognitive aspects of satisfaction,
independent of their scale anchors. Affective measures capture a consumer’s attitude
(liking/disliking) towards a product, which can result from any product information or
experience. On the other hand, cognitive element is defined as an appraisal or conclusion on
how the product’s performance compared against expectations (or exceeded or fell short of
expectations), was useful (or not useful), fit the situation (or did not fit), exceeded the
requirements of the situation (or did not exceed).

A single-item four-point Happy or Not customer satisfaction feedback terminal

Recent research shows that in most commercial applications, such as firms conducting
customer surveys, a single-item overall satisfaction scale performs just as well as a multi-
item scale. Especially in larger scale studies where a researcher needs to gather data from a
large number of customers, a single-item scale may be preferred because it can reduce total
survey error. An interesting recent finding from re-interviewing the same clients of a firm is
that only 50% of respondents give the same satisfaction rating when re-interviewed, even
when there has been no service encounter between the client and firm between surveys. The
study found a 'regression to the mean' effect in customer satisfaction responses, whereby the
respondent group who gave unduly low scores in the first survey regressed up toward the
mean level in the second, while the group who gave unduly high scores tended to regress
downward toward the overall mean level in the second survey.

Methodologies:

American Customer Satisfaction Index (ACSI) is a scientific standard of customer

satisfaction. Academic research has shown that the national ACSI score is a strong predictor
of Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal
Consumption Expenditure (PCE) growth. On the microeconomic level, academic studies
have shown that ACSI data is related to a firm's financial performance in terms of return on
investment (ROI), sales, long-term firm value (Tobin's q), cash flow, cash flow volatility,
39
human capital performance, portfolio returns, debt financing, consumer spending. Increasing
ACSI scores have been shown to predict loyalty, word-of-mouth recommendations, and
purchase behavior. The ACSI measures customer satisfaction annually for more than 200
companies in 43

industries and 10 economic sectors. In addition to quarterly reports, the ACSI methodology
can be applied to private sector companies and government agencies in order to improve
loyalty and purchase intent.
The Kano model is a theory of product development and customer satisfaction developed in
the 1980s by Professor Noriaki Kano that classifies customer preferences into five
categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model
offers some insight into the product attributes which are perceived to be important to
customers.
SERVQUAL or RATER is a service-quality framework that has been incorporated into
customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer
to indicate the gap between customer expectations and experience.

J.D. Power and Associates provides another measure of customer satisfaction, known for its
top-box approach and automotive industry rankings. J.D. Power and Associates' marketing
research consists primarily of consumer surveys and is publicly known for the value of its
product awards.

Other research and consulting firms have customer satisfaction solutions as well. These
include A.T. Kearney's Customer Satisfaction Audit process, which incorporates the Stages
of Excellence framework and which helps define a company’s status against eight critically
identified dimensions.

The Net Promoter Score (NPS) is also used to measure customer satisfaction. On a scale of 0
to 10, this score measures the willingness of customers to recommend a company to others.
Despite many points of criticism from a scientific point of view, the NPS is widely used in
practice. Its popularity and broad use have been attributed to its simplicity and its openly
available methodology.

40
For B2B customer satisfaction surveys, where there is a small customer base, a high
response rate to the survey is desirable. The American Customer Satisfaction Index (2012)
found that response rates for paper-based surveys were around 10% and the response rates
for e-surveys (web, wap and e-mail) were averaging between 5% and 15% - which can only
provide a straw poll of the customers' opinions.

In the European Union member states, many methods for measuring impact and satisfaction
of e-government services are in use, which the eGovMoNet project sought to compare and
harmonize.

These customer satisfaction methodologies have not been independently audited by the
Marketing Accountability Standards Board according to MMAP (Marketing Metric Audit
Protocol).

There are many operational strategies for improving customer satisfaction but at the most
fundamental level you need to understand customer expectations.
Recently there has been a growing interest in predicting customer satisfaction using big data
and machine learning methods (with behavioral and demographic features as predictors) to
take targeted preventive actions aimed at avoiding churn, complaints and dissatisfaction.

Prevalence:

A 2008 survey found that only 3.5% of Chinese consumers were satisfied with their online
shopping experience. A 2020 Arizona State University survey found that customer
satisfaction in the United States is deteriorating. Roughly two-thirds of survey participants
reported feeling "rage" over their experiences as consumers. A multi-decade decline in
consumer satisfaction since the 1970s was observed. A majority of respondents felt that their
customer service complaints were not sufficiently addressed by businesses. A 2022 report
found that consumer experiences in the United States had declined substantially in the 2
years since the beginning of the COVID-19 pandemic. In the United Kingdom in 2022,
customer service complaints were at record highs, owing to staffing shortages and the supply
crisis related to the COVID pandemic.

41
Net Promoter Score:

The Net Promoter Score (NPS) measures how likely it is that a customer will act as a brand
ambassador and promote the products/services/company. The NPS places customers into
three categories – promoters, passives, or detractors.
• Promoters are customers who are enthusiastic about the products/services and are likely
to recommend them to friends and family.
• Passives are those who are satisfied with the products/services but are unlikely to
recommend them to friends or family members. Passives do not have strong brand loyalty
and can easily be converted by competitors.
• Detractors are customers who are unsatisfied with the products/services and may damage
the company’s brand image and growth through bad word-of-mouth.

Customer Effort Score:

The Customer Effort Score (CES) measures how much work a customer must do to buy
from the company. In other words, the CES measures the effort exerted by a customer to
attain a company’s goods or services. If customers have to go through a lot of work to
purchase from a company, they may be likely take their business elsewhere. On the other
hand, if the customer is willing to go through some difficulty in order to purchase a
company’s products, that may indicate that they have strong brand loyalty.

Questions asked on the customer effort score include:

• The company made my purchase easy. (True/False or a rating scale)

• The service representatives handled my issue in a timely manner.
• How easy was it to get the help you wanted?

The CES rating scale typically consists of:

• Strongly disagree
• Disagree
• Somewhat disagree
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• Neutral
• Somewhat agree
• Agree
• Strongly agree

Example of Customer Satisfaction:

Jonathan is the marketing manager of a phone producing company – Calling Friends

Incorporated (CFI). Recently, the company launched a new product and tasked Jonathan
with conducting customer satisfaction reports.
Jonathan created a customer satisfaction survey and collected information from 500 of these
customer surveys. The questions asked in the survey were as follows:
• How satisfied are you with the product?
• How would you rate your experience with our sales representatives?
• The company made my purchase easy (Rate on a scale)
• How easily were the issues regarding your product handled?
• How likely are you to recommend this product to others?
In addition, Jonathan used a 1-10 scale for each question with 1 representing “very
unsatisfied” and/or “strongly disagree” and 10 being “very satisfied” and/or “strongly
agree.”

How does customer satisfaction impact your business?

Customer satisfaction plays a significant role in your business’s prosperity. Customers with
a positive experience are more inclined to return and tell others about the company. Your
company’s bottom line and expansion rate may benefit from this.
Picture a consumer entering a business and being immediately met with a welcoming smile
and helpful assistance. The worker shows exceptional effort and provides valuable advice to
ensure consumers find their needs. The client will have a positive and contented impression.
A satisfied customer is more likely to patronize the establishment again and recommend it to
their friends.

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Yet, if they had a bad experience due to unfriendly service, they might not return. They
could even tell others about their bad experience, which would be terrible for the company’s
standing. That’s why making customers happy should be your company’s top priority.

What does it take to satisfy customers?

It takes work to keep clients happy. The essential ingredients for high customer satisfaction
include a thorough understanding of their needs and a commitment to outstanding service. In
today’s competitive market, your business must go above and beyond to win consumer
loyalty.
This approach includes providing customized experiences for each client and enhancing
customer service. Your business must also value and incorporate client input into strategic
planning and daily operations.

Ultimately, satisfying consumers requires an enjoyable and memorable experience that

makes them feel like they matter. One way to do this is constantly being open and honest
with your consumers.
This method necessitates being forthright about problems or constraints and sincerely trying
to overcome them. When you put your client’s needs first, you strengthen your connections
and earn their loyalty.

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 CHAPTER-5
DATA ANALYSIS AND INTERPRETATION
 DATA ANALYSIS AND INTERPRETATION

QUESTION 1

How satisfied are you with your overall experience during stay at your hotel?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
VERY
48% BLUE
SATISFIED
SATISFIED 30% RED
AVERAGE 20% YELLOW
DISSATISFIED 2% GREEN

INTERPRETATION:

The above pie chart shows 48% of the customers are Very satisfied, 30% of the customers
are Satisfied, 20% of the customers are Average, 2% of the customers are Dissatisfied with
overall experience during stay at your hotel.

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QUESTION 2

How would you rate the cleanliness of your room?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
EXCELLENT 40% BLUE
GOOD 40% RED
AVERAGE 14% YELLOW
POOR 6% GREEN

INTERPRETATION:

The above pie chart shows 40% of the customers rated Excellent, 40% of the customers are
rated Good, 14% of the customers are rated Average, 6% of the customers are rated Poor
with the cleanliness of your room.

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QUESTION 3

Were the hotel staff friendly and helpful during stay?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
YES,
54% RED
FRIENDLY
YES, VERY
36% BLUE
FRIENDLY
NO, MUCH
NOT 10% YELLOW
FRIENDLY

INTERPRETATION:

The above pie chart shows 54% of the customers are said that Yes, Friendly, 36% of the
customers are said that Yes, Very friendly, 10% of the customers are said that the hotel staff
is not much friendly and helpful during stay.

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QUESTION 4

How satisfied were you with the check in /check out process?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
SATISFIED 40% RED
AVERAGE 38% YELLOW
VERY
16% BLUE
SATISFIED
DISSATISFIED 6% GREEN

INTERPRETATION:

The above pie chart shows 40% of the customers are Satisfied, 38% of the customers are
Average, 16% of the customers are Very Satisfied, 6% of the customers are Dissatisfied
with the check in /check out process.

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QUESTION 5

How likely are you to recommend our hotel to their friends and family?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
GOOD 50% RED
AVERAGE 30% YELLOW
EXCELLENT 16% BLUE
POOR 4% GREEN

INTERPRETATION:

The above pie chart shows 50% of the customers rated Good, 30% of the customers are
rated Average, 16% of the customers are rated Excellent, 4% of the customers are rated Poor
to recommend the hotel to their friends and family.

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QUESTION 6

How would you rate the quality of the food and beverages options at our hotel?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
GOOD 42% RED
AVERAGE 32% YELLOW
EXCELLENT 20% BLUE
POOR 6% GREEN

INTERPRETATION:

The above pie chart shows 42% of the customers rated Good, 32% of the customers are
rated Average, 20% of the customers are rated Excellent, 6% of the customers are rated Poor
to the quality of the food and beverages options at our hotel.

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QUESTION 7

Did you find the room tariff reasonable?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
YES, SOME
50% RED
WHAT
NO, NOT AT
30% YELLOW
ALL
YES, VERY
20% BLUE
REASONABLE

INTERPRETATION:

The above pie chart shows 50% of the customers are said that Yes, some what, 30% of the
customers are said that No, not at all, 20% of the customers are said Yes the room tariff is
very reasonable.

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QUESTION 8

How would rate the comfort of your bed and rooms?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
AVERAGE 54% RED
GOOD 30% BLUE
POOR 16% YELLOW

INTERPRETATION:

The above pie chart shows 54% of the customers rated Average, 30% of the customers are
rated Good, 16% of the customers are rated Poor with the comfort of your bed and rooms.

52
QUESTION 9

Did you make use of any recreational facilities [or] activities provided by hotel?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
NO 54% RED
YES 46% BLUE

INTERPRETATION:

The above pie chart shows 54% of the customers are said No, 46% of the customers are said
Yes that the hotel is providing activities and recreational facilities.

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QUESTION 10

How convenient was the location of hotel for your purpose (Eg:- business lesiure)?

OPTIONS (OUT
COLOUR
OF 50 PERCENTAGE
INDEX
CUSTOMERS)
AVERAGE 58.3% RED
NOT AT ALL 22.9% YELLOW
VERY
18.8% BLUE
CONVENIENCE

INTERPRETATION:

The above pie chart shows 58.3% of the customers rated Average, 22.9% of the customers
are rated Not at all, 18.8% of the customers are rated Very convenient to the location of
hotel for your purpose (Eg:- business leisure).

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QUESTION 11

How would you rate the parking facilities provided by the hotel?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
AVERAGE 49% RED
POOR 28.6% YELLOW
GOOD 22.4% BLUE

INTERPRETATION:

The above pie chart shows 49% of the customers rated Average, 28.6% of the customers are
rated Poor, 22.4% of the customers are rated Good with the parking facilities provided by
the hotel.

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QUESTION 12

How satisfied with variety and quality of breakfast options offered?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
SATISFIED 47.9% RED
NEUTRAL 29.2% YELLOW
DISSATISFIED 12.5% GREEN
VERY 10.4% BLUE
SATISFIED

INTERPRETATION:

The above pie chart shows 47.9% of the customers are satisfied, 29.2% of the customers are
Neutral, 12.5% of the customers are Dissatisfied, 10.4% of the customers are Very satisfied
with variety and quality of breakfast options offered.

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QUESTION 13

Would you like to revisit our hotel for future stay?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
YES 66% BLUE
NO 34% RED

INTERPRETATION:

The above pie chart shows 66% of the customers are said Yes, 34% of the customers are
said No to the revisit our hotel for future stay.

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QUESTION 14

How satisfied were you with the security measures in place at the hotel?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
AVERAGE 40.8% RED
SATISFIED 34.7% BLUE
DISSATISFIED 24.5% YELLOW

INTERPRETATION:

The above pie chart shows 40.8% of the customers are Average, 34.7% of the customers
are Satisfied, 24.5% of the customers are Dissatisfied with the security measures in place at
the hotel.

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QUESTION 15

How likely are you to leave a positive review for our hotel on platform?

OPTIONS
COLOUR
(OUT OF 50 PERCENTAGE
INDEX
CUSTOMERS)
LIKELY 61.7% BLUE
NEUTRAL 25.5% RED
UNLIKELY 12.8 YELLOW

INTERPRETATION:

The above pie chart shows 61.7% of the customers are likely, 25.5% of the customers
are Neutral, 12.8% of the customers are leave Unlikely review for our hotel on platform.

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 CHAPTER-6
FINDINGS
SUGGESTIONS
CONCLUSION
QUESSTIONNAIRE
BIBILOGRAPHY
 FINDINGS

• I found that the customers satisfied with the overall experience during stay at your
hotel.

• Most of the customers are recommend this hotel to their friends and family.

• The customers are satisfied with variety and quality of breakfast options offered.

• Most of the customers like to revisit our hotel for future stay.

• The customers are satisfied with the check in /check out process.

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 SUGGESTIONS

• The hotel should maintain the cleanliness in rooms.

• They should provide recreational facilities [or] activities to their hotel customers.

• The hotel should improve the comfort of the bed and rooms.

• They need to provide more amenties to the customers.

• They should make the hotel convenient for the purposes like business leisures.

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 CONCLUSION

Customer satisfaction at Manjeera Sarovar Hotel is paramount, ensuring guests' needs and
preferences are met to the highest standard. Through personalized services, attention to
detail, and a commitment to excellence, the hotel strives to exceed expectations at every
turn. With a range of amenities, including luxurious accommodations, fine dining options,
and recreational facilities, guests are provided with a memorable and fulfilling experience
tailored to their desires.

The hotel's dedication to customer satisfaction is evident in its meticulous attention to

feedback and continuous improvement efforts. By actively seeking input from guests and
promptly addressing any concerns or suggestions, Manjeera Sarovar Hotel fosters a culture
of responsiveness and genuine care. This commitment not only enhances the overall guest
experience but also fosters long-term loyalty and positive word-of-mouth recommendations.

In conclusion, customer satisfaction is at the heart of everything Manjeera Sarovar Hotel

does. By delivering exceptional service, anticipating and meeting guest needs, and
continually striving for excellence, the hotel ensures that every visitor leaves feeling valued,
appreciated, and eager to return.

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 QUESTIONNAIRE

1) How satisfied are you with your overall experience during stay at your hotel?
a) Very satisfied
b) Satisfied
c) Average
d) Dissatisfied

2) How would you rate the cleanliness of your room?

a) Excellent
b) Good
c) Average
d) Poor

3) Were the hotel staff friendly and helpful during stay?

a) Yes, very friendly
b) Yes, friendly
c) No, much not friendly

4) How satisfied were you with the check in /check out process?
a) Very satisfied
b) Satisfied
c)Average
d)Dissatisfied

5) How likely are you to recommend our hotel to their friends and family?
a) Excellent
b) Good
c) Average
d) Poor

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6) How would you rate the quality of the food and beverages options at our hotel?
a) Excellent
b) Good
c) Average
d) Poor

7) Did you find the room tariff reasonable?

a) Yes, very reasonable
b) Yes, somewhat reasonable
c) No, not at all

8) How would rate the comfort of your bed and rooms?

a) Good
b) Average
c) Poor

9) Did you make use of any recreational facilities [or] activities provided by hotel?
a) Yes
b) No

10) How convenient was the location of hotel for your purpose (Eg:- business lesiure)?
a) Very convenient
b) Average
c) Not at all

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11) How would you rate the parking facilities provided by the hotel?
a) Good
b) Average
c)Poor

12) How satisfied with variety and quality of breakfast options offered?
a) Very satisfied
b) Satisfied
c) Average
d) Dissatisfied

13) Would you like to revisit our hotel for future stay?
a) Yes
b) No

14) How satisfied were you with the security measures in place at the hotel?
a) Satisfied
b) Average
c) Dissatisfied

15) How likely are you to leave a positive review for our hotel on platform?
a) Very likely
b) Neutral
c) Unlikely

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 BIBLOGRAPHY

WEBSITES

• www.booking.com

• www.tripadvisor.com

• www.google.com/maps/ManjeeraSarovarHotel

• www.manjeerasarovarhotel.com

BOOKS

1. Marketing management by Philip Kotler.

2. Customer satisfaction by Michael D. Johnson.

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