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INDUSTRIAL PROFILE
ELECTRONICS INDUSTRY IN INDIA
India is the fifth largest economy in the world and has the second largest gross domestic
product among the emerging economies. Owing to its large population, the potential
consumer demand is ever increasing and consequently under appropriate conditions,
strong growth performance can be expected. The liberalization of the Indian economy
that began in 1991 has started changing regulatory, financial, and monetary policies
leading to a higher pace of growth. The software industry in India is already a world
leader. The electronics industry is likely to follow.
Following rapid development in the 1990s growth of 30% per annum driven byconsumer electronics growth in the Indian electronics industry slowed in the 1990s
with low single digit growth in real terms (excluding inflation) in the later part of the
decade. After holding up well in 2001 whilst most other countries experienced a serious
downturn, electronics output increased by 15%, 17%, 7.8%, 7.4% and 22.4% in 2002,
2003, 2004, 2005 and 2006, respectively. Growth is forecast to be 16.8% in 2007 and
13.6% in 2008. More importantly the country is setting itself for a period of rapid growth
driven by a large, fast growing domestic market, significant foreign investment and an
improving regulatory environment.
Indias consumer electronics industry, which has grown on the back of a massive and
expanding market, still dominates the electronics sector, accounting for just under 27%
of electronics output in 2006. The sector however continues to lose overall share of
production as output of computing and in 2006 communications ramps up.
INDIAN ELECTRONICS AND IT INDUSTRY PRODUCTION PROFILE: 2007
The export driven software and services industry continues to be the dominating factor in
the overall growth of the Indian Electronics and IT industry. In 2006-07, the Indian
software and services industry exports witnessed a healthy growth, its total exports
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reaching Rs. 141,000 crore (US$ 31.4 billion), an increase of 34.8 per cent in rupee terms
and 33.0 per cent in dollar terms over the previous financial year.
In 2007-08, the total value of software and services export is estimated at Rs. 1,63,000
crore (US$ 40.3 billion), an increase of 15.6 per cent in rupee terms and 28.3 per cent
indollar terms. The production and growth trend of the Indian Electronics and IT/ITeS
industry since 2002-03 has been as follows:
Year Production
(Rs. Crore)
Growth (%)
2002-03 97000 21.1
2003-04 118290 21.9
2004-05 152420 28.9
2005-06 190300 24.9
2006-07 244000 28.3
2007-08 291100 19.3
PRODUCTION OF ELECTRONIC COMPONENTS
The total production of electronic components was Rs.8,800 crore during 2006-07, which
is expected to grow to Rs.9,500 crore during 2007-08, a growth of 8.0 per cent. The
components with major share in production were CD-R, Colour Picture Tubes (CPT),
PCBs, DVD-R, connectors, semiconductor devices, ferrites, and resistors.
The developments in components industry have been driven mainly by growth in
consumer electronics sector. The share of 14" CPT has increased due to procurement of
2.5 million 14"CTV sets by the Government of Tamil Nadu. The share of 20" & 21"
conventional CPTs have been declining whereas the share of full flat 21" tubes has been
on the rise.
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Further, 15" flat, 21" & 29" slim CPTs have been introduced by the domestic
manufacturers. In view of introduction of Flat Panel colour TVs, the market for
LCD/PDP panels has been rising fast. The prices of CPTs are on the decline. Following
the trends in CPTs, the colour glass parts manufacturer has taken steps to keep pace with
the market requirements.
One of the manufacturers has introduced new range of Single Mode Optical Fibers that
meet and exceed the newly introduced ITU-T G.655 D & E International Standards. The
manufacturer has announced plans to double its optical fibre manufacturing capacity.
The serviceable market for professional grade components such as PCBs, semiconductor
devices, connectors, wound components, antennas, etc. is likely to go up due to
indigenous manufacture of mobile phones, set top boxes, DVD players, etc.
Most of the top global semiconductor companies have set up their chip design centres in
India. With the introduction of SIPS, it is expected that chip manufacturing may start in
the near future. This would lead to the establishment of complete eco system in this area
in the country.
STRATEGIC ELECTRONICS
It has become one of the important areas today because of the criticality of the
technology development targeting two aspects, the technology applicable to the strategic
sector for Defence purposes and the emerging state-of-the-art technology, which is not
available off-the-shelf, and which is denied due to its critical applications. The
technology which is denied has both civilian as well as Defence applications. Henceforth,
it is desirable to develop technology in this sector catering to the critical applications as
well as it is important to productionize the technology. The technology can payback
much faster because of its critical nature and needs to be commercialized after
appropriately safeguarding in terms of patents.
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At the national level, various research institutions are developing strategic systems and
the public sector undertaking and some of the private agencies are mainly contributing
the production.
There has been consistent growth in production annually. However, it is difficult to make
an estimation but during the year 2007-08, production is expected to be about Rs.6,100
crore, showing a dip in the growth rate, from 40.6 per cent (Rs. 4,500 crore) in 2006-07
to 35.6 per cent now.
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ORGANIZATIONAL PROFILE
History
O/E/N was initiated in the year 1968. It is a company ownership Public Limited which
has a share capital of 1,00,00,000 equity shares of Rs. 10/- each.
O/E/N India Limited was formed as joint venture with OAK Electro / Netics
Corporation, USA under the leadership of founder MD, Late Mr. K. A. Mathew. At the
inception, 45% of the equity shares were held by OAK Industries Inc., USA and 25% by
Kerala State industrial Development Corporation and the balance primarily by directors
and their associates. The abbreviation O/E/N was derived out of the name of the
collaborator.
The Company was born out of the desire and ambition of the founder MD to be
an entrepreneur in the field of precision products such as manufacture of
electronic components, measuring instruments etc. He was senior executive in a
company located at the suburbs of Cochin before establishing the Company.
The OAK group was a pioneer in the field of professional grade rotary switches,
keyboards and push button switches; miniature and power relays; miniature
trimmer potentiometers; controls and control systems etc., serving many segments of
electronics industries appliances manufacturing, industrial, aerospace, military and
other related fields.
Until O/E/N India went into production, the entire requirements of the country for these
products were being imported a substantial portion from the collaborating companys
plants in USA and UK. The major customers for these products were Indian PSUs like
Bharat Electronics Umited, 1-lindustan Aeronautics Limited, Indian TelephoneIndustries, Electronics Corporation of India, Defense Laboratories, Indian Space
Research Organizations and Hindustan Machine Tools Limited etc. The Company started
with OAK designs and in due course the Company has incorporated many changes in
these designs to suit the Indian conditions. The Company was built on Quality,
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Dependability and Long Life. The Company had reached the break even point just in two
years after inception in 1970 and declared its first dividend in 1973. The Company
crossed an annual turn over of Rs.10 million in 1974. The Company had added a captive
tool room in 1976 and a separate R&D building in 1977.
Inspired by experience and driven by excellence the Company had developed rocker
switches, reed relays, linear solenoid, snipe switch and toggle switches.
In 1980, the Company had launched a new sister company by name, O/E/N Micro
Systems to take up manufacture of computer peripherals. The Company had developed
computer peripherals like Alpha numeric, Hexadecimal keyboards, video terminals, from
dummy to intelligent versions and prom programmer.
In 1984, the Company had launched another sister concern by name O/E/N Connectors
India Limited in collaboration with FCI Connectors, France. The Company was
diversifying its activities into similar arenas by launching these two new ventures.
By 1985, the Company established a new manufacturing plant at Peenya, Bangalore,
Karnataka for manufacturing relays. Till 1990s the Company was enjoying a monopolyin the market with meager or no competition from the local business establishments. The
company truly enjoyed the status of a leader and innovator with comfortable financial
gains.
However, with the liberalization policy in 90s, the Company was forced to face severe
competition from the global brands. It took some time for the Company to react and
change itself from a slow pace culture generated by the monopolistic leadership to that of
a flexible innovative leadership culture needed in the midst of a competitive market. The
growth of the Company was dampened to a very low levels though the Company
managed to avoid any losses.
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Since the Company was unable to respond swiftly to a fast changing domain of computer
peripherals, O/E/N Microsystems miserably failed to find its existence after an enviable
growth exhibited during the initial years. The technology was changing from dump
terminals to PCs and networking. O/E/N Microsystems was not able to compete in the
changed environment. The company was closed in the year 2001 and was subsequently
merged to parent Company in the year 2003. With a changed environment, FCI had
increased its stake in O/E/N Connectors India Limited to 51% in 1993 and subsequently
to 65% in 1996.
The Company realized the faults and could reinstate its position as a market leader by the
late 90s and early years of 21 Century. Over those turbulent years, the Company had
acquired enough skills and capability to face the competition in a better way.
The Company had entered into technical tie-ups and technology transfer agreement with
major global players to bridge the technological gap. The Company had worked hard to
acquire and adapt to all the major quality systems in the industry. In the year 2002,
O/E/N India Limited became the first Company in India in its segment to get ISO
9001:2000 certification. In the year 2003, the company has secured approval under
ISO/TS 16949 quality management system certification for its automotive products. Inthe succeeding year the Company had obtained approval to ISO 14001 for the
environmental management system and for occupational health and safety management
system. The Company implemented ERP (enterprise resource planning) system by the
end of year 2003.
Vision
To be a centre of technological excellence for electro-mechanical components.
To be the market leader for electro-mechanical components in India.
Mission
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Attain leadership position.
Create wealth.
Be the best in the business.
Quality Policy
Quality is their technology to attain most preferred manufacturer and supplier
status through strong commitment and continual improvement.
Quality Objective
To pursue a respectable organizational presence in the market.
To improve upon existing process, procedures and performance.
To make our products more reliable and cost effective.
They have manufacturing plants such as:
Electrogiry, Mulanthuruthy, Cochin
Peenya, Bangalore
Poonithura, Thripunithura, Cochin
Their quality standards are:
ISO 9001: 2000 (Quality Management System)
ISO/TS 16949 (Quality Management System for Automotive Products)
ISO 14001 (Environmental management System)
OHSAS 18001 (Occupational Health and safety management system)
Types of products manufactured
The current manufacturing range consists of electro-mechanical relays, rotary wafer
switches and trimmer potentiometers.
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Electro-mechanical relays
Relays are electromagnetically operated switches. An actuating current on a coil operates
one or more galvanically separated contacts or load circuits. Typical applications of
relays include telecommunication systems, air conditioning and heating, automotive
electronics, traffic control, lighting control, automation and industrial panel controls etc.
Rotary wafer switches
Rotary wafer switches are mechanically operated on-oft devices. A rotary switch is often
used as a selector switch having one common input and a number of alternative outputs.
It is a custom made part designed against the requirement of the customer. Typical
applications of rotary wafer switches are in measuring instruments, medical equipments,
CNC machines, communication devices, control panels etc.
Trimmer potentiometers:
Potentiometer is a variable resister. Trimmer potentiometers are used in electronic
circuits for adjusting the current and voltage.
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MAJOR MARKET SEGMENTS
Figure showing O/E/N Market Segments
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DEPARTMENTS
Figure showing O/E/N Departments
Regional officesThe regional offices are located at:
Bangalore
Chennai
Hyderabad
Bombay
Pune
New Delhi
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TURN OVER IN LAST YEARS
Figure showing O/E/N Sales Trend
Strength of the Company
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The strength of this company is the brand name O/E/N. They have more than three
decades of experience and expertise in designing, manufacturing and marketing electro-
mechanical components. They have a Market leadership in domestic markets and
extensive data and knowledge on Indian market trends. The global outlook of the
management is with a vision to be a global player. They have skilled and specialized
work force. The manufacturing and infrastructure with in-house tool room, fabrication
and molding facilities are excellent. They have a good employee employer
relationship and a very low overall employee turn over. It is cheap labor compared to
global standards and hence has an edge over global competitors. It is a global monopoly
in few products (due to cessation of production of these products by other competitors.
The main market is replacement markets). They have a loyal employee culture with long
years of service. Their strategic location is at Cochin and so it is easy access to air port
and sea port. The implementation and extensive usage of IT for functional activities is
used.
But they have their own limitations also as the out dated technology in production and
process depends too much on manual labor with very old machines. There is lack of
innovative products where a number of new products introduced per year are very low.
They have a very long product development time. They depend more on import sources
for raw material leading to a very fluctuating raw material cots. They have a highly
functional departmental organizational structure with limited horizontal integration. They
have a limited scalability due to over dependence on manual labor and meager
automation. No lateral entry to induct skilled and specialists to top slots. The top posts
are filled by promotion only. Very high raw material cost leading to meager profits. The
product range is insufficient and is incomprehensive. They have not entered into the
highly growing next-GEN technology Relay market (like SSR). They have a very high
and alarming attrition rates among younger generations in the low and middle level
management.
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Opportunities:
The present economic vigor in the market opens an opportunity for O/E/N to expand and
diversify. A highly growing market for the core product - relays. The emergence of India
as a technological hub for design and development offers immense scope for O/E/N to
enter into these arenas for electro-mechanical components and sub- assemblies. The
lower labor costs in comparison to western and US competitors provides an opportunity
for O/E/N as a subcontractor for assembly of relays. The opportunity gives the Company
to get acquainted with latest global manufacturing and management practices.
O/E/N can utilize its extensive knowledge about Indian market and its highly networked
distribution network to enter into technological tie-up with global brands manufacturing
products of similar kind to fetch new customers and additional revenue.
Experience and expertise in core competency of design, manufacturing and marketing of
electro-mechanical components can be used for indigenization of custom built electro-
mechanical sub-assemblies. With a competitive pricing, the
Company can enter into focused export markets.
O/E/N has the potential to attract any major global players for a take over. The synergy
will help O/E/N to get a wider global market reach in addition to changing the culture toadapt to global practices and standards of manufacturing and management. O/E/N can
increase scalability and production efficiency by introducing partial automation in key
production lines for significant operations. The next-SEN relays will be using Solid State
Relay technology. O/E/N can gradually enter into this market since Indian markets and
technology is matured to accept this technology. The possibility to enter into value added
products and services rather than concentrating only on component business. The
Company can enter to panel building and wiring harness by acquiring competent talents
from external sources.
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O/E/N is a tier supplier to almost all the major automotive O/E/Ns in India. All the next-
O/E/N passenger vehicles will be having a variety of automotive sensors for various
applications. The opportunity is immense if the Company can tap these markets either
through technical collaboration or through representation.
Threats
Rapid change and obsolesce of product and process technology.
Drain in market share in sensitive segments with the entry of Chinese brands
with highly competitive and cheap pricing strategies.
Change in relay technology from electro-mechanical to solid state relays.
Stiff competition from imported relays available through grey markets in lower
segments.
Direct entry of competing global brands into the domestic market through
synergies, market channels and manufacturing facilities.
Steep rise in raw material costs leading to a vertical cost increase.
Overall economic progress and salary hikes declared by Government and other
agencies leading to an unavoidable salary hike to Company employees.
Entry of more and more local players with specialized products and market
focus. Their limited product line gives them an upper hand in quality levels and
the small size offers lower over heads, making their price highly competitive.
Quality level standards insisted by major customer segment, automotive, is
adding to high over heads.
Highly competitive market with quality conscious customers and eroding
product prices.
Loosing the leadership position due to lack of innovation and new products.
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Repositioning in the global market
The Company repositioned itself as a market follower in the global market, retaining its
position as a market leader in the domestic market. More attention was diverted on
reengineering the technologically upgraded products as and when the domestic market
matures to absorb the technology.
The Company had invested in enriching its core competency in electro-mechanical sub-
system development and had entered into contract manufacturing. The policy changes
reflected more emphasis on value addition and value creation. The company could
achieve a turn over of Rs.59.00 crores in the last fiscal (2007 08) and targets to be a
Rs.100 crore company by 2011.
The initial collaborator OAK Electro / Netics Corporation was subsequently renamed as
OAK Industries Inc. The Company had subsequently diversified into communications
field and had undergone many mergers and acquisitions. The brand OAK is no more
under manufacturing. The equity held by OAK was bought back by the Company in a
phased manner
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Customer satisfaction
Customer satisfaction refers to the extent to which customers are happy with the products
and services provided by a business. Customer satisfaction levels can be measured using
survey techniques and questionnaires.
Gaining high levels of customer satisfaction is very important to a business because
satisfied customers are most likely to be loyal and to make repeat orders and to use a
wide range of services offered by a business.
Customer- focused
Knowing what your customer wants makes it possible to tailor everything you do to
please the customers, e.g. providing the goods that customers want, in the package that
they want, in retail outlets which are convenient to use and well placed.
There are many factors which lead to high levels of customer satisfaction including:
Products and services, which are customer focused and hence provide high levels of
value for money.
Customer service giving personal attention to the needs of individual customers.
Aftersales service - following up the original purchase with after sales support such
as maintenance and updating (for example, in the updating of computer packages).
What is clear about customer satisfaction is that customers are most likely to appreciate
the goods and services that they buy if they are made to feel special. This occurs when
they feel that the goods and services that they buy have been specially produced for them
or for people like them. This relates to a wide range of products such as razors that are
designed for ease of use and good quality finish, petrol products that are environmentally
friendly and customized to meet the needs of particular types of engines, etc.
Why Measure Customer Satisfaction?
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Organizations are increasingly interested in retaining 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 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 have and other products against which the customer can compare the
organization's products.
Because satisfaction is basically a psychological state, care should be taken in the effort
of quantitative measurement, although a large quantity of research in this area has
recently been developed.
Customer satisfaction is tied directly to profitability. If your customers are happy, they
tend to be loyal. And if theyre loyal they not only buy more, they refer other customers.
Well-established research by Bain & Company found that, for many companies, an
increase of 5% in customer retention could increase profits by 25% to 95%. The samestudy found that it costs six to seven times more to gain a new customer than to keep an
existing one.
Moreover, one bad experience can outweigh a whole lot of good experiences. Because of
e-mail and instant messaging, that bad experience can quickly be broadcast to dozens,
hundreds, or thousands of other customers, magnifying its impact. So if your business is
doing something that frustrates customers, you need to know right away. It is critical to
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give customers the opportunity to provide feedback about their overall satisfaction level
and specific likes and dislikes. It is equally important to consistently measure and
monitor that input. Without an effective customer satisfaction research program in place,
your company will be losing business, missing opportunities, and putting itself at a
competitive disadvantage.
Why is customer satisfaction so important today?
Satisfying customers is the only way to stay competitive in todays market. Customers
have an expectation of service and product performance that must be met.
The balancing act between what customer want and what your company can provide
must be optimized in order to maximize the firms long-term profits. This occurs in two
ways. With precise information, companies can focus on issues that truly drive customersatisfaction. And a directed focus leads to cost reductions because companies can
emphasize improvements in areas of customer concern and de-emphasize focus in other
areas. Focusing on motivators of customer satisfaction leads to more loyal customers,
who tend to be the most profitable customers (i.e., repeat business is usually the most
profitable).
Customer satisfaction is becoming an important area of competition. A high level of
satisfaction can deliver many benefits, including:
Loyalty: a highly satisfied customer is a loyal customer.
Repeat purchase: a highly satisfied customer buys more products.
Referrals: a highly satisfied customer tells their family and friends about the product
or service.
Retention: a highly satisfied customer is less likely to switch brands.
Reduced costs: a highly satisfied customer costs less to serve than a new customer.
Premium prices: a highly satisfied customer is willing to pay more for the product or
service.
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Quite often the difference between those that simply survive in business and those that
thrive is keeping abreast of, and adjusting to, the ever-changing attitudes and
expectations of the market place. One such change has been the significant change in
attitudes of customers over the last 10 years. There was a time when customers were less
critical and vocal if not totally satisfied when dealing with a business. This is not the case
today.
Today, customers are becoming increasingly more demanding, less tolerant and very
critical when not having their expectations met. There was a time when the choices
available on where and who to deal with was limited.
The power belonged to the business owner, customers had nowhere else to go and
therefore customer satisfaction was not so important. Today, customers have lots of
choice on where and who to deal with. As a result the power has now shifted to the
customer. If they feel you cannot satisfy their expectations they will simply vote with
their feet and deal with someone who will. Customer satisfaction can help your business
achieve a sustainable competitive advantage. It is about understanding the way a
customer feels after purchasing a product or service and, in particular, whether or not thatproduct or service met the customer's expectations. Customers primarily form their
expectations through past purchasing experiences, word-of-mouth from family, friends
and colleagues and information delivered through marketing activities, such as
advertising or public relations. If the customer's expectation is not met, they will be
dissatisfied and it is very likely that they will tell others about their experience.
The Importance of Customer Service and Satisfaction
Business has always been about competing for markets, territories and most of all,
customers. Today, customers expectations are higher than ever before, and the range of
choices open to them is wider than ever before (Brown, 1991, PI). Companies should
provide better customer service and satisfaction, to give buyers a reason to use their
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product over their competitors. Organizations also use service differentiation techniques
to tailor to various customers needs and expectations. This makes customers feel valued
and leads to mass customization. This is a great way for companies to increase demand
of their products or service and gain more market share. In short, lucrative corporations
use different principles and techniques to provide better customer service and
satisfaction, in order to run a healthy and successful organization.
Customer satisfaction- A Critical Component of Profitability
Exceptional customer service results in greatercustomer retention, which in turn results
in higher profitability. Customer loyalty is a major contributor to sustainable profit
growth. To achieve success, you must make superior service second nature of your
organization. A seamless integration of all components in the service-profit chain
employee satisfaction,value creation, customer satisfaction, customer loyalty, and profit
and growth links all the critical dynamics of top customer service.
Sadly, mature companies often forget or forsake the thing that made them successful in
the first place: a customer-centric business model. They lose focus on the customerandstart focusing on the bottom line and quarterly results. They look for ways to cut costs or
increase revenues, often at the expense of the customer. They forget that satisfying
customer needs and continuous value innovation is the only path to sustainable growth.
This creates opportunities for new, smaller companies to emulate and improve upon what
made their bigger competitors successful in the first place and steal their customers.
To execute a successful client satisfaction survey, build one that the customers have the
time and inclination to respond to, and that delves into the types of information that will
truly help enhance your performance. By carefully constructing a brief, yet strong,
survey, you can discover what your customers believe your strengths and weaknesses are
and what makes the customers loyal to the company.
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What do Customers Want?
Customer is defined as anyone who receives that which is produced by the individual ororganization, which has value. Customer expectations are continuously increasing.
Customers seek out products and producers that are best able to satisfy their
requirements. A product does not need to be rated highest by customers on all
dimensions, only on those they think are important.
Before beginning to create tools to measure the level of satisfaction, it is important to
develop a clear understanding of what exactly the customer wants. We need to know
what our customers expect from the products and services we provide.
Customer expectations are the customer-defined attributes of your product or service you
must meet or exceed to achieve customer satisfaction. Customer Expectations are of two
types:
Expressed Customer Expectations- They are those requirements that are written
down in the contract and agreed upon by both parties, for example, product
specifications and delivery requirements. Supplier's performance against these
requirements is most of the times directly measurable.
Implied Customer Expectations are not written or spoken but are the ones the
customer would 'expect' the supplier to meet nevertheless. For example, a customer would
expect the service representative who calls on him to be knowledgeable and competent to
solve a problem on the spot.
There are many reasons why customer expectations are likely to change over time.
Process improvements, advent of new technology, changes in customer's priorities,
improved quality of service provided by competitors are just a few examples.
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The customer is always right. Supplier's job is to provide the Customer what he wants,
when he wants it. Customer Satisfaction is customers' perception that a supplier has met
or exceeded their expectations. It is therefore important to periodically update our
knowledge of customer expectations.
Six Tips to Build Customer Loyalty
As your customer base grows it is imperative that you maintain the same level of service
that you provided when you first earned your customer's business. You have to anticipate
their needs before they announce them, and put those actions in place. Meeting these
expectations will cement your relationships, increase their satisfaction, and retain their
business. Here are six customer expectations that are the basis of outstandingservice and
increased sales:
1. Customers Expect Solid Information
Providing your customers with tangible information lets them know that you value them
and respect their ability to make sound decisions. When they feel that they are respected,
they are more open and willing to do more business with your company. One way to
ensure they receive beneficial information is to ask interesting questions during your
conversations to uncover needs they may not have voiced. For instance, ask about the
objectives they have set for their company, and the problems associated with attaining
them.
2. Customers Expect Options
Customers don't want to be told that there is only one way or one solution. They will
respond positively when they are given options. Options are essential because they createdialogue and discussion. Open dialogue can lead to more sales.
3. Customers Expect Single Source Service
Customers do not want to be transferred to every unit of your business to have their
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problems solved. They want to be able to do business with you with the slightest amount
of discomfort. You must be easy to do business with. This means taking ownership of
your customers requests, problem, etc., and ensuring that their needs are met to their
satisfaction.
4.Customers Expect Superior Communication
They may not be the best communicators, but they expect communication excellence
from you. So, if you tell them that you will call them back at a certain time, make sure
that you do. Your responsiveness will create a bond of trust, and a communication
comfort level.
5. Customers Expect Consultancy
As the expert on your business' products and services, your customers expect to be
contacted in determining how to use the product or service to get the best return on
investment (ROI). You must take the time to ask relevant questions aimed at finding how
your customer is using your product and/or service. This will demonstrate your ability
and knowledge as well as your intent to spend the necessary time with them to meet theirspecific needs.
6. Customers Expect a Faultless Relationship
The best businesses are those that believe in going the extra mile for their customers.
They know that they have to reinforce why it's in the customers best interest to continue
doing business with them. Building a relationship with your customers built on mutual
trust and respect, takes time and effort, but retention is the best method of building profit.
Stay in touch with your customers by keeping them informed of new events, product
updates, passing on information that may be of interest, calling to say hello, etc
Meeting these six customer expectations will help you gain customer loyalty, and
customer loyalty will keep you in business.
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The Link between Customer Service and Customer Loyalty
It seems natural that customer loyalty would follow good service. If you get what you
want and you are treated right, why would you not return to a business? But sometimes
it's useful to have more than an instinctive argument. There is a clear link connecting
customer service and customer loyalty.
What constitutes Satisfaction? We cannot create customer satisfaction just by meeting
customer's requirements fully because these have to be met in any case. However falling
short is certain to create dissatisfaction.
Major attributes of customer satisfaction can be summarized as:
Product Quality
Product Packaging
Keeping delivery commitments
Price
Responsiveness and ability to resolve complaints and reject reports
Overall communication, accessibility and attitude
It may be easier to track supplier's performance against stated requirements of quality
and timeliness because there is documentary evidence. Some indication of whether a
supplier is meeting the requirements can also be obtained from data on scrap rates,
complaints database, sales improvements, repeat orders, customer audit reports etc. It is
far more difficult to measure the level of performance and satisfaction when it comes to
the intangible expectations.
What are the Tools?
Customer expectations can be identified using various methods such as :
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Periodic Contract Reviews
Market research
Telephonic Interviews
Personal visits
Warranty records
Informal discussions
Satisfaction Surveys
Depending upon the customer base and available resources, we can choose a method that
is most effective in measuring the customers' perceptions. The purpose of the exercise is
to identify priorities for improvement. We must develop a method or combination of
methods that helps to continually improve service.
TO SATISFY CUSTOMERS
To win customers hearts, a service business needs engaged employees who actively
transmit their enthusiasm to customers.
The assertion that happy workers equal happy customers pops up in the marketing and
mission statements of a lot of service providers, from big government agencies to small
start-ups. It has been advocated by high-profile chief executives, including Gordon
Bethune, the former CEO of Continental, an airline that has won numerous best-
employer awards. Many managers they have interviewed believe in the causal link or feel
obliged by their bosses to accept it.
But they have not seen any hard data supporting the idea. Their own surveys of the
customers and staffs of 49 business units of 13 service organizations in the UK, in fields
ranging from financial services to retailing, failed to confirm that service businesses with
more-contented staff also have more-satisfied customers. In fact, they found a positive
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correlation between the two at only one firm, where the business units with happier
customers had higher employee satisfaction. At two other firms, they found a negative
correlation that factors that increased customer satisfaction decreased employee
happiness. Satisfying customers is crucial to a businesstheres a great deal of evidence
for a causal link between happy customers and higher profits. And satisfying employees
is a worthwhile aim in itself for many reasons. To link the two, engage employees by
giving them both reasons and ways to please customers; then acknowledge and reward
appropriate behavior. Simply being served by a satisfied employee isnt enough to win
customers loyalty.
Customer Satisfaction Research
Satisfaction surveys are an important method for collecting information about how your
customers think and feel about your brand, product or service. A satisfaction survey can
help you to understand the expectations of your customers, determine whether your
customers believe you are meeting those expectations, identify new customer
requirements or trends in the market and determine what areas of your business need
investment.
A good customer satisfaction survey will also help you to understand the causes of
dissatisfaction among your customers. Once you've identified these issues, you'll be able
to implement new practices to improve customer satisfaction.
Many businesses systematically measure customer satisfaction through independent
surveys, feedback forms, mystery shopping and focus groups. Some third party surveysalso compare the customer satisfaction of major competitors, which allows companies to
benchmark themselves in their relevant sector.
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Measuring customer satisfaction doesn't have to be expensive. It can be as simple as
preparing a short feedback form or conducting a brief telephone interview that asks the
customer to rate the product or service on a number of criteria.
Customer Satisfaction Surveys:
Measuring and Tracking Customer Satisfaction:
The first steps in establishing a customer satisfaction program are determining when to
distribute the survey, how many customers will be invited to respond, and how to deliver
the survey to them.
1. When to Conduct Customer Satisfaction Research
Many managers wonder how frequently they should conduct customer satisfaction
surveys. The answer depends on the size of the customer base and the purpose of the
research. There are two key types of surveys, and they serve very different purposes:
Transactional surveys- Solicit feedback directly from the product or service user
about that particular encounter. They are conducted immediately after each
customer transaction. For example, a survey may be administered after a call center
experience.
Relationship surveys- Collect input from people who have an ongoing relationship
with the company and have had multiple transactions. They are regularly scheduled
surveys often quarterly. The respondents typically are responsible for deciding
whether to continue the working relationship.
Transactional surveys are sent out at the discretion of whoever has contact with
customers but the data should be collected immediately after the interaction while the
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experience is still fresh in the customers mind. Relationship surveys should be spread
out over the course of a year. Here are a couple of points to keep in mind:
If there is only one data point for each year, a single event could have a large impact
on results.
Research in the industry reveals that satisfaction ratings are consistently higher in the
spring than in the fall.
For companies with a sufficiently large customer base at least 10,000 relationship
surveys can be conducted on a continuous basis but reported on a monthly basis to
address the effects of seasonality or single events.
In many cases conducting both transactional and relationship surveys may be
appropriate. For example, a company may conduct transactional research for customer
service purposes and relationship research for routine checkups on the health of the
business.
2. How Many Customers to Survey
For companies with a small customer base for example, 2,000 or fewer interview as
many customers as possible. If the budget allows it, offer an incentive such as company
merchandise or a small gift certificate to compensate respondents for their time. If the
company has more than 2,000 customers and it is not economically feasible to survey all
of them, a subset is surveyed . In this case there is need to consider the following
concepts relating to sample selection and accuracy of results:
Random selection- First, it is essential that a random selection of customers
be contacted to avoid introducing bias into how the customers were selected and to
help ensure that the sample of customers is representative of the entire customer
base. For example, if a company surveyed only customers who contacted customer
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service, those individuals may be very different from customers who have not
contacted customer service.
Margin of error-Next there is a need to establish the level of precision you want to
have in the accuracy of the results. The margin of error(also known as a confidence
interval) is an indicator of sample accuracy for random samples. It is the plus-or-
minus figure that is commonly reported with news polls, such as plus or minus
four points.
Confidence level- Then you need to determine how certain you want to be that the
survey results are within the margin of error. The confidence level indicates the
level of certainty that the survey results are within the confidence interval for
random samples. Typically, researchers use the 95% confidence level.
3. How to Distribute Your Survey
The best means of distributing a survey depends on whether it is a transactional or
relationship survey. A transactional survey is conducted at the point of customer contact.
Depending on the nature of the customer contact, an in-person, telephone, or onlinesurvey may be appropriate. Relationship surveys, on the other hand, are most cost-
effectively conducted online. Online data collection offers significant advantages over
other modes of interviewing customers, and you should use it whenever possible. The
advantages include:
Speed. The Internet offers instantaneous distribution of survey and real-time
accumulation and tabulation of results. This allows for immediate data analysis, even
while the survey is still in progress. Because customer satisfaction results are used to
identify problems and fix them, the faster responses arrive, the faster they can be
addressed. In contrast, mail surveys suffer from long lag times and low response rates, as
low as 5%. Telephone surveys take longer because of declining response rates. Refusal
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rates for phone interviews have reached 60% (AC Nielsen, 2004). With the ease of
answering online surveys, they can be completed faster and
a broader segment of the customer base can be reached. Depending on a number of
variablesthe relationship with the survey recipients, the length of the survey, whether a
reminder is sent, and whether an incentive is offeredresponse rates for online surveys
can be upward of 35%.
Indicators of customer satisfaction
An important indicator of customer satisfaction is the customer retention rate. To
calculate your customer retention rate, you will need to capture data about the total
number of customers and the number of customers switching brands. If you track this
information over time, you will be able to see whether you are improving your customer
retention and satisfaction.
Another tool that has been introduced in Australia is the Net Promoter Scores, whichprovide a new metric for measuring customer loyalty. The Net Promoter Scores ask one
simple question about whether a customer would recommend a product or service to a
friend or colleague. This question has been identified as the ultimate determinant of
customer satisfaction or loyalty. Research in the UK and the US has found a clear
correlation between the Net Promoter Scores and revenue growth, illustrating the
importance of customer satisfaction to future growth potential.
Customers for Life
The purpose of a business is to create and keep a customer. If a business successfully
creates and keeps customers in a cost-effective way, it will make a profit while
continuing to survive and thrive. If, for any reason, a business fails to attract or sustain a
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sufficient number of customers, it will experience losses. Too many losses will lead to
the demise of the enterprise.
According to Dun and Bradstreet, the single, most important reason for the failure of
businesses in America is lack ofsales. And, of course, this refers to resales as well as
initial sales. So the companys job is to create and keep a customer.
Developing Marketing Strategies to Satisfy Customers
Overview: Consumer behavior refers to the behavioral patterns displayed by the
consumer in arriving at a purchase decision. The steps involved in the buyers decision
process include need recognition, information search, evaluation of alternatives, and
purchase. It is imperative for an organization to develop its marketing strategy to
complement the buyer behavior. The paper examines this issue.
Buyer Behaviour - Decision-Making Process
Overview: Research suggests that customers go through a five-stage decision-making
process in any purchase, for this purpose the model diagram is given in this paper. This
model is important for anyone making marketing decisions. It forces the marketer to
consider the whole buying process rather than just the purchase decision (when it may be
too late for a business to influence the choice.)
Understanding And Influencing Organizational Buyer Behavior
Overview: A buyer in the market goes through complex analysis and decision-making
process before making a purchase. The organization needs to comprehensively
understand and appreciate the subtle nuances of the buyer behavior to precisely target the
prospects and hence increase the sales. The analysis of the buyer behavior begins with
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the communication of customized product message to the target audience. It is also
imperative to identify the main decision-maker in the purchasing process. The target
market approach calls for targeting different customers with different kinds of products.
This approach is based on the premise that different individuals have different tastes and
preferences. The paper examines dynamics of buyer behavior.
Understanding Buyer Behavior: Primary Demand vs. Selective Demand
Overview: The article provides the information on primary demand and selective
demand. If you are generating leads or interest in your business, but are struggling with
making sales or deals happen, you may be mistaking the type of demand your prospects
are showing. The solution is to know the detailed information about types of demands.
Primary demand It is has identified a need for the first time, often using your help. To
sell and market your solution use education, exploration of problems, and explain and
demonstrate how you have the solution. Selective demand- It has identified the need or
problem of their own and is already seeking a solution before you came along. To sell
and market to someone with selective demand, first determine how you can better serve
your prospect's needs and communicating this clearly to him, before he goes to someone
else.
Satisfy customer need- Keys to good customer service
The demand of customer service is very important in our business. Customers or clients
are an integral aspect of any business enterprise. The market forces of demand and
supply is dependent on this tandem between the manufacturers' goods that are supplied
and allocated in the market through appropriate channels in order to reach out to the
consumers that demand them. When there is no demand, there will be no supply.
Therefore, in order to balance a harmonious confluence of the two forces of demand and
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supply, the manufacturers believe that the customer is always right and cater them with
extraordinary service skills which help them to further their business better. Hence, the
importance of customer service has seen a phenomenal rise as the fiscal scales have
escalated even before.
The very first step to good customer care is politeness on the part of the customer care
executive. It may not be easy to deal in numerous customers all round the clock;
however, as a service care provider, you must keep in mind that your customers do not
know, and often do not care about the number of people you have catered to before him.
As a customer he demands your full attention and service. Therefore, the golden rule to
excellent customer care is to make your customer feel like the most important person
when you interact with him.
Most customer service providers make the costly mistake of not acknowledging their
lack of knowledge about a particular aspect that the customer may want to know about.
The importance of customer service lies in the honest and candid attitude of the
executives so that the customers are satisfied with their service. So, if you get stuck with
any customer query and feel that you may not be able to tackle it, ask around for help.
As a service provider, if you do not enjoy your work, you may never be able to improve
upon it. Therefore, when you meet customers, make sure you make the most out of your
interactions. Enjoy talking to them, as these will add new color to your ways of providing
customer service. This will not just improve your skills as a customer care executive, but
also help you to become a better communicator.
As an employer, when you hire customer service providers, make sure that youremployees have an aptitude to serve people and are aware of the businesses customer
service goals. If your employee enjoys his work, you will have to work less hard on him
and concentrate better on the other facets of the business.
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As an employer it is also important to make sure that your communication skills and
catering abilities are competent enough to inspire your employers to strive harder at
achieving an optimal quality of customer service. If you think that your executives need
to improve the ways of providing customer service you may help them do better by
organizing interactive sessions or even making orientations. Your customers may be
right, but to help your service providers do better, you must have faith in the abilities of
work force.
The key to good customer service depend on the creation of an environment of
excellence, which in turn needs immense patience and training of the staff. All of the
customer service tips above are important, but the most basic tip is that as the service
provider you will need not just tact, but a sense of empathy for your customers. If you
think it is humanly not possible to cater to your customers even after implementing all
good customer service training tips, remember that they are humans too, and with care
and affection, every human can be won over.
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TITLE OF THE STUDY
A study on satisfaction of the customers with reference to O/E/N Company.
STATEMENT OF THE PROBLEM
Organizations are increasingly interested in retaining 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.
O/E/N company is the manufacturer of quality assured electronic products marketed all
throughout India. The aim of this project is to find out customers satisfaction level of the
products sold.
SIGNIFICANCE OF THE STUDY
The success of O/E/N will depend upon the satisfaction the customers get from its wide
range of products and their quality. Recognizing the contemporary importance of
customer satisfaction, the present study seeks to analyze the level of customer
satisfaction with reference to O/E/N.
OBJECTIVES OF THE STUDY
GENERAL OBJECTIVE
To evaluate the consumer satisfaction based on their responses.
SPECIFIC OBJECTIVES
To analyze the range and quality of products.
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To make a comparison with the past services.
To analyze the purchasing behaviour of customers.
To analyze whether O/E/N is successful in meeting the customer needs
RESEARCH DESIGNS
TYPE OF RESEARCH
The research design is descriptive in nature. This design helps to describe characteristics
of a particular population or phenomenon, and to study in depth the characteristics
concerning individuals, groups and situations.
Thus a descriptive research is concerned with the detailed description of certain
functional variables and characteristics of a problem situation. Since it is concerned with
the explanation of the problem situation and allied variables, it is rather called as
explanatory research. The major purposes for which descriptive research designs are
commonly used include the following:
To disclose in detail the characteristics of target groups.
To assess the proportionate behaviour of respondents within their identical or
homogenous groups.
To help in precise predictions.
To determine the association of different variables.
METHODS OF DATA COLLECTION
PRIMARY DATA
Primary data refers to the first hand information that an investigator himself collects from
the respondents. It is direct and original in nature. The different types of data that can be
classified as primary data are attitudes and opinions, awareness and knowledge,
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motivation of the consumer, intention behaviour and tenacity and the demographic and
social features like age, sex etc. Primary data can be collected by adopting one or more of
the following methods:
Observation method: Here the events are recorded as and when they occur. There is
hardly any scope for biased or wrong data as the events per actions of the
respondents are recorded on time. The different types may be Controlled and
Uncontrolled, Disguised and Undisguised and Organized and Mechanical
observations.
Survey method: This method calls for gathering data by interviewing a number of
people. This method also has the advantage of getting to the original source of
information. The different methods of data collection under survey method are
Personal interview method, including direct personal observation and indirect oral
interview; the mail questionnaire method and the telephone survey.
SECONDARY DATA
Secondary data is the information collected from those data which have already been
obtained by some other researcher or author. It is the second hand information. Such data
can be collected from the following sources:
Internal accounting records and reports of the organization.
Libraries both physical and virtual.
Publications and institutions and research firm.
Official reports of committees and commissions.
Journals, magazines and newspapers.
Though secondary data are easily accessible, some precautions shall be taken before
adopting the same for the research work. They are:
Reliability of the information
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Adequacy of the information
Suitability of the information
SAMPLING TECHNIQUE
Different sampling methods are available from which the appropriate one needs to be
selected based on the nature and relevance of the study, the information need to be dealt
with and the purpose of the study.
Convenience sampling technique has been chosen for the sampling and for the
determination of sample size.
POPULATION
The population for this study consists of the customers of O/E/N.
SAMPLE SIZE
The sample size taken is 30 respondents.
TOOLS FOR DATA COLLECTION
The major tools that are popular and widely used for primary data collection are:
Questionnaire
Schedule
The questionnaire is the medium for maintaining information by a list of well framed
questions deemed to be answered by the respondents. The general qualities of a purpose
serving questionnaire are brevity, simplicity, logical sequence of questions, ease of
answering, use of proper language, attractiveness, supportive instructions shall be
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provided, unambiguous questions, accuracy and questions shall be confined to the project
theme.
An interview schedule is a structure list of questions prepared to retrieve desired
information from the respondents. Here the investigator directly interviews the
informant. He himself records the answers to the queries as expressed by the respondent.
Questionnaire method is used to attain the required information from the inmates.
Simultaneously general details about the organization and its functioning are obtained
from the officials and members concerned through interview method.
STATISTICAL TOOLS USED FOR ANALYSIS
Questionnaires yield data, facts and figures that need to be represented for easy
understanding through Pie charts and Bar graphs, before which simple percentage
method is used.
LIMITATIONS: Time constraint.
Behavioural constraints of people.
Limited number of respondents.
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Table 3.1 showing whether O/E/N provides good quality products
PARTICULARS FREQUENCY PERCENTAGE
Strongly Agree 19 63
Agree 2 7
Neither agree nor disagree 7 23
Disagree 2 7
Strongly Disagree 0 0
TOTAL 30 100
41
0
10
20
30
40
50
60
70
Strongly
Agree
Agree Neither agree
nor disagree
Disagree Strongly
Disagree
Percentage
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Figure 3.1 showing whether O/E/N provides good quality products
Inference
The above figure shows that 63% of the customers strongly agree that O/E/N provides
good quality products, 7% agree to it, 23% neither agree nor disagrees and 7% disagree
to it.
Table 3.2 showing whether the quality of most products has improved over the past years
PARTICULARS FREQUENCY PERCENTAGE
Strongly Agree 8 27
Agree 5 17
Neither agree nor disagree 16 53
Disagree 1 3
Strongly Disagree 0 0
TOTAL 30 100
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Figure 3.2 showing whether the quality of most products has improved over the pastyears
Inference
The above figure shows that 27% of the customers strongly agree that quality of most
products has improved over the past years, 17% agree to it, 53% neither agree nor
disagree and 3% disagree to it.
Table 3.3 showing whether customers usually prefer improvement in the product
quality to style change
PARTICULARS FREQUENCY PERCENTAGE
Strongly Agree 3 10
Agree 18 60
Neither agree nor disagree 6 20Disagree 3 10
Strongly Disagree 0 0
TOTAL 30 100
43
27%
17%
53%
3%Strongly Agree
Agree
Neither agree nor
disagree
Disagree
Strongly Disagree
10%
60%
20%
10% Strongly Agree
Agree
Neither agree nor
disagree
Disagree
Strongly Disagree
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Figure 3.3 showing whether customers usually prefer improvement in the product
quality to style change
Inference
The above figure shows that 10% of the customers strongly agree that customers usually
prefer improvement in the product quality to style change, 60% agree to it, 20% neither
agree nor disagree and 10% disagree to it.
Table 3.4 showing whether manufactures do not intentionally design products which
wear out quickly
PARTICULARS FREQUENCY PERCENTAGE
Strongly Agree 2 7
Agree22 74
Neither agree nor disagree 4 13Disagree
1 3
Strongly Disagree 1 3
TOTAL 30 100
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Figure 3.4showing whether manufactures do not intentionally design products which
wear out quickly
Inference
The above figure shows that 7% of the customers strongly agree that manufactures do not
deliberately design products which wear out quickly, 74% agree to it, 13% neither agree
nor disagree, 3% disagree and 3% strongly disagree to it.
Table 3.5 showing whether differences among competing brands affect the O/E/N
customers
PARTICULARS FREQUENCY PERCENTAGE
45
7
74
13
3
3
0 10 20 30 40 50 60 70 80
Percentage
Strongly Agree
Agree
Neither agree nor disagree
Disagree
Strongly Disagree
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Strongly Agree 2 7
Agree 5 17
Neither agree nor disagree7 23
Disagree 11 36
Strongly Disagree 5 17TOTAL 30 100
Figure 3.5 showing whether differences among competing brands affect the O/E/N
customers
Inference
The above figure shows that 7% of the customers strongly agree that differences among
competing brands affect the O/E/N customers, 17% agree to it, 23% neither agree nor
disagree, 36% disagree and 17% strongly disagree to it.
Table 3.6 showing whether the problems of customers are less serious now than in thepast
PARTICULARSFREQUENCY PERCENTAGE
Strongly Agree 20 67
Agree 3 10
Neither agree nor disagree6 20
Disagree 1 3
Strongly Disagree 0 0TOTAL 30 100
46
Strongly Agree
7%
Agree
17%
Neither agreenor disagree
23%
Disagree36%
Strongly
Disagree
17%
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Figure 3.6 showing whether the problems of customers are less serious now than in the
past
Inference
The above figure shows that 67% of the customers strongly agree that the problems of
customers are less serious now than in the past, 10% agree to it, 20% neither agree nor
disagree and 3% disagree to it.
Table 3.7 showing whether manufacturers seem to be more sensitive to customer
complaints now than they were in the past
PARTICULARSFREQUENCY PERCENTAGE
47
67
10
20
30
0
10
20
30
40
50
60
70
Percentage
Strongly
Agree
Agree Neither
agree nor
disagree
Disagree Strongly
Disagree
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Strongly Agree 1 3
Agree 20 67
Neither agree nor disagree8 27
Disagree 1 3
Strongly Disagree 0 0TOTAL 30 100
Figure 3.7 showing whether manufacturers seem to be more sensitive to customer
complaints now than they were in the past
Inference
The above figure shows that 3% of the customers strongly agree that manufacturers seem
to be more sensitive to customer complaints now than they were in the past, 67% agree to
it, 27% neither agree nor disagree and 3% disagree to it.
Table3.8 showing whether advertised products are sold more than unadvertised ones.
48
3
67
27
3
0
Strongly Agree
Agree
Neither agree
nor disagree
Disagree
Strongly
Disagree
Percentage
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Figure 3.8 showing whether advertised products are sold more than unadvertised ones.
Inference
PARTICULARS FREQUENCY PERCENTAGE
Strongly Agree 28 93
Agree 0 0
Neither agree nor disagree 2 7
Disagree 0 0
Strongly Disagree0 0
TOTAL 30 100
49
0
10
20
30
40
5060
70
80
90
100
Percenta
ge
Strongly
Agree
Agree Neither
agree nor
disagree
Disagree Strongly
Disagree
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The above figure shows that 93% of the customers strongly agree that advertised
products are sold more than unadvertised ones and 7% neither agree nor disagree with it.
Table 3.9 showing whether the wide variety of competing products makes intelligent
buying decisions more difficult.
PARTICULARS FREQUENCY PERCENTAGE
Strongly Agree 30 100
Agree 0 0
Neither agree nor disagree 0 0
Disagree 0 0
Strongly Disagree0 0
TOTAL 0 100
50
100
0 0 0 0
0
10
20
3040
50
6070
8090
100
Percentage
Strongly
Agree
Agree Neither
agree nor
disagree
Disagree Strongly
Disagree
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Figure 3.9 showing whether the wide variety of competing products makes intelligentbuying decisions more difficult
Inference
The above figure shows that 100% of the customers strongly agree that the wide variety
of competing products makes intelligent buying decisions more difficult.
Table 3.10 showing whether many of the mistakes made by customers while buying
products are a result of their own carelessness or ignorance
PARTICULARSFREQUENCY PERCENTAGE
Strongly Agree 2 7
Agree 3 10
Neither agree nor disagree 8 27Disagree 10 33
Strongly Disagree 7 23
TOTAL 30 100
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7%10%
27%
33%
23%
Strongly Agree
Agree
Neither agree nordisagree
Disagree
Strongly Disagree
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Figure 3.10 showing whether many of the mistakes made by customers while buying
products are a result of their own carelessness or ignorance
Inference
The above figure shows that 7% of the customers strongly agree that many of the
customers while buying products are a result of their own carelessness or ignorance, 10%
agree to it, 27% neither agree nor disagree, 33% disagree and 23% strongly disagree to it.
Table 3.11 showing whether the service staff is very helpful.
PARTICULARS FREQUENCY PERCENTAGE
Strongly Agree 24 80
Agree 4 13
Neither agree nor disagree 2 7
Disagree0 0
Strongly Disagree 0 0
TOTAL 30 100
Figure 3.11 showing whether the service staff is very helpful.
52
80
137
0 0
0
10
20
30
40
50
60
70
80
Percentage
Strongly
Agree
Agree Neither
agree nor
disagree
Disagree Strongly
Disagree
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Inference
The above figure shows that 80% of the customers strongly agree that the service staff is
very helpful, 13% agree to it and 7% neither agree nor disagree with it.
Table 3.12 showing whether manufacturers make an effort to design the products to fit
the needs of customers
PARTICULARS FREQUENCY PERCENTAGE
Strongly Agree 3 10
Agree 22 73
Neither agree nor disagree 5 17
Disagree 0 0
Strongly Disagree0 0
TOTAL 30 100
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Figure 3.12 showing whether manufacturers make an effort to design the products to fit
the needs of customers.
InferenceThe above figure shows that 10% of the customers strongly agree that manufacturers
make an effort to design the products to fit the needs of customers, 73% agree to it and
17% neither agree nor disagree with it.
FINDINGS
To a great extent, the customers agree that O/E/N provides good quality products.
More than half of the customers usually prefer improvement in the product quality to
style change.
A greater part of the customers agree that manufactures do not intentionally design
products which wear out quickly.
Most of the customers did not have the opinion that the differences among
competing brands affect them.
More than 70% of the customers agree that the problems of customers are less
serious now than in the past.
A good number of the customers agree that the manufacturers seem to be more
sensitive to customer complaints now than they were in the past.
Almost every customer agrees that they prefer advertised products.
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All customers have the same opinion that the wide variety of competing products
makes intelligent buying decisions more difficult.
Most of the customers disagree that many of the mistakes made by customers while
buying products are a result of their own carelessness or ignorance.
Majority of the population strongly agree that the service staff is very helpful.
To a great extent, the customers agree that manufacturers make an effort to design
the products to fit the needs of customers.
SUGGESTIONS
O/E/N could increase their sales if they improve the quality of their products to a
certain extent.
Since most of the customers prefer advertised products, O/E/N could advertise
their products in a better way.
All the customers strongly agree that wide variety of competing products makes
their buying decisions more difficult, hence O/E/N could highlight their special
features and quality.
O/E/N could also make an effort to improve the working of their service staff.
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CONCLUSION
The research was conducted in O/E/N India Ltd. situated at Vytilla to study the customer
satisfaction level. It is found that they offer a wide variety of electronic products of
different ranges.
The study helped in analyzing the purchasing behavior of the customers. It was found
that they prefer improvement in product quality to style changes. Hence, O/E/N may take
necessary measures as mentioned earlier to increase their sales. Almost every customer
refers advertised products and so O/E/N could take steps to improve their advertisements.
To conclude, O/E/N always try their best to meet the needs of their customers to a great
extent.
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