EXECUTIVE SUMMARY
"Experience is the best teacher". The saying play is very pivotal role in our
Curriculum wherein we try to understand the nuance of the theoretical world with the
blend of practical experience. It is important to understand how where to implement
what we have studies. Knowledge in itself is a continuous process. Getting practiced
knowledge is an important thing for existence for any business concern in the
competition prevailing in an industry a total awareness is the first and foremost things
necessary from all aspects, working smarter seems to be as important as working harder
and longer.
We completed this project on "QUALITY PERCEPTION OF DOMESTIC LPG"
in fulfillment of our MBA curriculum.
The knowledge we garnered through this exposure with the outside world will help us in
taking a giant leap towards understanding employee's behavior and preferences.
5
Table of Content
Serial no. Content
1. About IOCL
2. Introduction
3. Historical background
4. Service Quality
5. Element of customer service
6. Component of service quality
7. LPG
8. History of LPG
6
9. Scope and importance of the
study
10. Statement of the problem
11. Objective of the study
12. Research methodology
13. S.W.O.T analysis of domestic
LPG
14. Limitation of the study
15. Results and Findings
16. Suggestions
17. Conclusion
18. Bibliography
7
ABOUT IOCL:
Indian oil corporation Ltd :
In an impressive leap, Indian oil has ascended 48 place to secure the 94th rank in
the prestigious fortune 500 list for [Link] this surge, Indian oil becomes one
of only two Indian corporations and the only PSU to have been listed the top 100
[Link] is remarkable that Indian oil has consistently featured in the list since
1995. This is a validation of the company’s unbroken record of excellence for over
two decades.
The fortune Global 500 list ranks corporation globally based on their total
revenues for their respective fiscal years.
Welcome to Indian oil, the Energy of indian
Welcome to the world of indian, a diversified, integrated
energy major with presence in almost all the streams of oil,
gas, petrochemicals and alternative energy sources; a world of
high-calibre people, state-of-the-art technologies and cutting-
edge R&D; a world of the best pratices, quality-consciousness
and transparency; and a world where energy in all its form is
tapped most responsibly and delivered to the consumer most
affordably.
8
Energising the Nation’s Ascent
India’s highest ranked Energy PSU in Fortune-500 list of 2023 (Rank
94), Indian oil recorded Revenue from Opertions of Rs 9,34,953 Crores
and a net profits of Rs 8,242 crores for the financial year 2022-23
As a brand with one of the largest customer interface in india, Indian oil
reaches precious petroleum fuels to every nook and corner of the country
through its network of over 60,000 plus customer touch-point,
surmounting the challenges of tough terrain, climate and accessibility.
The marketing network is bolstered by 70.05 MMTPA of refining
Capacity and more than 17,000 KM of cross-country pipelines.
Moreover, Indian oil R&D
Centre at Faridabad, one of asia’s finest in downstream petroleum
R&D, offers a competitive advantage to the corporation through world-
class technology and process solution and innovations products. Indian
oil R&D has also been instrumental in pioneering path-breaking
research to leverage the potectial of Hydrogen and other cleaner fuels for
the sustainable progress of the nation.
One of India’s most socially responsive brands, Indian oil, has
successfully combined its corporate social responsibility agenda with its
business offerings. The corporation has been partnering with
communities in which it operates by supporting numerous initiatives
connected with health, family welfare, educations, environment
protection potable water, sanitation, empowerment of women and other
marginalized groups.
9
Our Glorious Journey
Indian Oil – In Every Part, In Every Heart
•Indian oil reaches precious petroleum fuels to every nook and corner of
the country through its network of over 60,000 plus customer touch-
points.
•The marketing network is bolstered by 70.05 MMTPA of reining
Capacity and more than 17,000 KM of cross- country pipelines.
•Over 36,445 fuel stations spread across India, fuelling the dreams
and aspirations of around 30millions Indian every day.
•Indian oil’s LPG brand indane caters to more than 140millions
customers.
•One of the leading Petrochemical players in India with a petrochemical
production capacity of nearly 3200 KTA.
•Undertaking research in all facets of hydrogen, including
production,storage and applications like fuel [Link] set up Green
Hydrogen Plant at indian oil also forging crucial partnerships to
strenghthen the Green Hydrogen eco system in the country.
•Indian oil has established itself as a leading CGD (city Gas
Distribution ) players in the country.
•The leading promoter of the Govt of India’s SATAT
(Sustainable Alernative Towards affordable Transportation) scheme.
First Indian company to start CBG marketing under the brand name
“IndiGreen”.
10
•Indian oil has a Solar PV capacity of around 71.10 MW & Wind
Capacity of 167.6 MW, with a total renewable energy capacity of
nearly 238.70 MW.
•Collaborated with Israeli company Phinergy Limited to form
‘IOC Phinergy Private Limited’ (IOP) to commercialise the
Aluminium-Air battery technology in india.
•Achieved the milestone of installing over 5,461 EV charging station
at Indian oil Fuel Stations across the country.
•Spent nearly Rs 1,800 Crore on CSR endeavours during the last four
year across healthcare, education, sanitation ,skill development ,
women empowerment and environment sustainability.
Reaching out to a Billion Hearts
Indian oil has one of the largest petroleum marketing and distribution
network in asia, with over 58,000 marketing touch points. Its ubiquitous
fuel station are located across different terrains and regions of the sub-
continent. From the icy heights of the Himalays to the Sun-Soaked
shores of kerala, from kutch on India Western tip tp Kohima in the
verdant North East, Indian oil is truly ‘in every heart, in every part’.
Indian oil vast marketing infrastructure of petrol/diesel
stations Indane (LPG)
Distributorship, SERVO lubricant & greases outlet and large volume
consumer pumps are backed by bulk storage terminals and installations,
inland depost, aviation fuel stations, LPG bottling plants and lube
blending plants amoungst others. The countrywide marketing operations
are coordinated by 16 state offices and over 100 decentralised
administrative offices.
11
Several landmark surveys continue to rate Indian oil as the dominant
energy brand in the country and an enduring symbol for high-quality
petroleum products and services. The heritage and iconic association that
the brand invokes has been built over four decades of commitment to an
uninterrupted supply line of petroleum products to every part of the
country and unique products that cater not only to the functional
requirements but also the aspirational need of millions of customers.
Indian oil has been adjudged as one of India’s top brands by UK- based
Brand Finance, an independent consultancy that deals with
valuation of brands. It was aslo listed as India’s ‘Most Trusted Brand’ in
the ‘Gasoline’ category in a reader’ digest AC Nielsen
survey. However, the value of the Indian oil brand is not just limited to
its commercial role as an energy provider but straddles the entire value
chain of gamut of exploration & production, refining, transportation &
marketing, petrochemicals & natural gas and downstream marketing
operation abroad. Indian oil is a national brand owned by over a billion
Indian and that is a priceless value.
Enriched customer experience over time convert into customer’s
loyalty. Automation, modernization of the dispensing units improving
visual identity of fuel station, imparting training to dealers and customer
attendants are key steps being taken by Indian oil to enhance customer
experience. As the industry leader in retail sales, Indian oil has
completed automation of its countrywide fuel statin to enchance Q&Q
Quality & quantity assurance to its customers. Our corporation business
strategy has always been in tune with technology and innovation. We
have installed the best of automation processes and the latest safety
systems atour [Link] and logistics
12
smart terminals, automated fuel supply points and a dedicated field force
are helping us lead the competition. We have now embarked on digital
transformation of the organization to serve and sustain the trust of our
billion plus customers across the country.
Our Vision with Value
13
Our leadership
Mr. Shrikant Madhav Vaidya is a chemical engineer from the national
institute of technology, Rourkela. He has over 36 years of extensive
experience in refining & petrochemical operation. He has had a decade-
long association with india’s largest cracker plant – the panipat naphtha
cracker complex, a major driver of indian oil petrochemical business –
right from the drawing broad stage. He is among the slect technocrats in
the indian oil & gas industry who are proficient in all facets of refinery-
petrochemicals integration, desirable for the sustainability of the oil &
gas industry in the long-term.
Mr. Vaidya is also a Non-excutive chairman on the board of Chennai
petroleum corporation Ltd. A subsidiary of indian oil, Ratnagiri refinery
& petrochemicals Ltd (a joint venture of indian oil). He as also a non-
excutive Director on the board of petronet LNG Ltd. ( a joint venture of
indian oil ) and President of World LPG Association, Paris.
14
Some leadership of indian oil corporation
Current
•V Satish Kumar Director ( Marketing ) •Ms.
Sukla Mistry Director ( Refineries)
•Sujoy Choudhury Director ( Planning & Business
Development)
•N. Senthil Kumar Director ( Pipelines )
•Sunil Kumar (Government Nominee Director)
•Dillip Gogoi Lalung ( Independent Director )
•Dr. Ashutosh Pant ( Independent Director)
•Dr. Dattatreya Rao Sirpurker ( Independent Director )
•Prasenjit Biswas ( Independent Director )
•Sudipta Kumar Ray ( Independent Director )
•Krishnan Sadagopan ( Independent Director )
•Dr. Ram Naresh Singh ( Independent Director )
•Sanjay Kaushal ( CFO )
•Anant Kumar Singh ( CVO )
•Kamal Kumar Gwalani ( Company Secretary )
15
Our Business
Indian oil is indias flagship Maharatna national oil company with
business interests stradding the entire hydrocarbon value chain from
refining , pipeline transportation & marketing to exploration &
production of crude oil & gas , petrochemicals ,gas marketing ,
alternative energy sources and globalization of downstream operations.
It also has global aspiration, fulfilled to an extent by the formation of
subsidiaries in Sri Lanka, Mauritius, the UAE, Sweden, USA and the
Netherlands. It is pursuing diverse business interests with the setting up
of over 15 joint ventures with reputed business partners from india and
abroad to explore global opportunities.
Some Business of Indian oil Corporation
are:
•Refining
•Pipelines
•Research & development
•Marketing
•Petrochemicals
•Natural gas
•City gas distribution ( CGD)
•E & P
•Explosives
•Cryogenics
16
Refining
Born from the vision of achieving self-reliance in oil refining and
marketing for the nation, IndianOil has gathered a luminous legacy of
more than 100 years of accumulated experiences in all areas of
petroleum refining by taking into its fold, the Digboi Refinery
commissioned in 1901.
The refining capacity is 70.05 million metric tonnes per annum
(MMTPA) - the largest share among refining companies in India. It
accounts for approx 32% share of the national refining capacity.
The strength of IndianOil springs from its experience of operating the
largest number of refineries in India and adapting to a variety of
refining processes along the way. The basket of technologies, which are
in operation in IndianOil refineries include Atmospheric/Vacuum
Distillation; Distillate FCC/Resid FCC; Hydrocracking; Catalytic
Reforming, Hydrogen Generation; Delayed Coking; Lube Processing
Units; Visbreaking; Merox Treatment; Hydro-Desulphirisation of
Kerosene Gasoil streams; Sulphur recovery; Dewaxing, Wax Hydro
finishing; Coke Calcining, etc.
The Corporation has commissioned several grassroots refineries and
modern process units. Procedures for the commissioning and start-up
of individual units and the refinery have been well laid out and
enshrined in various customised operating manuals, which are
continually updated.
17
IndianOil refineries have an ambitious growth plan for capacity
augmentation, de-bottlenecking, bottom upgradation and quality
upgradation.
On the environment front, all IndianOil refineries fully comply
with the statutory requirements. Several Clean Development
Mechanism projects have also been initiated. To address
concerns on safety at the workplace, a number of steps were
taken during the year, resulting in the reduction of the frequency
of accidents.
INDIAN OIL REFINING - INSTALLED
CAPACITY
REFINERIES MMTPA
Digboi 0.65
Guwahati 1.00
Barauni 6.00
Gujarat 13.70
Haldia 8.00
Bongaigaon 2.70
Mathura 8.00
Panipat 15.00
Paradip 15.00
Total 70.05
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REFINERIES MMTPA
CPCL, Chennai 10.50
Group Total (including CPCL) 80.55
NATIONAL REF. CAPACITY 249.4
SHARE % Approx. 32%
Pipeline
IndianOil operates a network of more than 15,000 km long crude oil,
petroleum product and gas pipelines with a throughput capacity of
94.56 million metric tonnes per annum of oil and 21.69 million metric
standard cubic meters per day of gas. Cross- country pipelines are
globally recognized as the safest, cost- effective, energy-efficient and
environment-friendly mode for transportation of crude oil and
petroleum products.
As a pioneer in oil pipelines in the country, managing one of the world's
largest oil pipeline networks, Indian Oil achieved a throughput of
76.019 million metric tonnes during the year 2020- 21.
Indian Oil added 337 km of additional pipeline length during the year
2020-21, as part of its plans to continuously expand the network in line
with growth in business. Projects currently under implementation
would further increase the length of the
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pipelines network to about 21,000 km, and throughput capacity to 102
million tonnes per annum.
With due emphasis being given to scaling up of natural gas pipelines,
IndianOil is planning to lay a 1,244 km pipeline to reach LNG imported
at Ennore to Nagapattinam, Tuticorin, Madurai and Bengaluru. This
pipeline, along with three other upcoming gas pipelines - Mallavaram-
Vijaipur, Mehsana-Bhatinda and Bhatinda-Srinagar pipelines would
ensure a significant presence of IndianOil in gas transmission business.
Adding another feather to its cap, IndianOil commissioned Motihari-
Amlekhganj Pipeline, the first transnational pipeline of the country in
July 2019, 8 months ahead of the scheduled completion. The pipeline
was jointly dedicated to nation by Hon'ble Prime Ministers of India and
Nepal.
20
Our location:
•Corporate office ( New Delhi )
•Registered office ( Mumbai )
•Refineries division head office quarter ( New Delhi)
21
•Pipeline division head office ( Noida Uttar Pradesh)
•Marketing division office ( Mumbai )
Indian For You Provide:
Indian oil for motorists:
•XP95
Indian Oil, keeping its promise of catering to the ever-evolving energy
demands of the country, launched XP95, India’s first 95 Octane petrol –
– on May 1 2021, XP95 has been indigenously developed by Indian Oil’s
R&D team and has been accredited by the third parties.
Depending on the vehicle model, XP95 gives an additional 3.95% fuel
economy, reduces carbon monoxide emissions by up to 44%,
hydrocarbon emissions by up to 13%, increases power by 4%, and
ability to accelerate by 20.15%. Additionally, XP95 keeps engines clean
and makes them more corrosion resistant.
22
While the current market offering for branded gasoline comes with
91RON, XP95 imbues 95RON within it. The higher octane lowers down
the knocking tendency of the fuel, which in turn increases thermal
efficiency & superior clean combustion of fuel. XP95 is fast emerging as
a popular fuel choice for the Indians on the move. The popularity of
XP95 is a testimony to IndianOil’s commitment to providing best-in-
class service to its customers.
•Xtra Green
IndianOil expanded its bouquet of differentiated offerings with the
introduction of its all-new high-performance diesel brand – XtraGreen.
One of the cleanest diesel fuels across the globe, XtraGreen offers
higher fuel economy and reduced noise.
The higher cetane number of XtraGreen has led to better combustion
& longer durability as compared to conventional fuel, while Particulate
matter (PM) emissions have decreased by about 7% (under simulated
road load driving conditions). PAH content in particulate matter is
estimated to plummet by nearly 3%,
considerably reducing carcinogenicity of diesel exhaust
emissions.
The Diesel Multi-Functional Additive (DMFA) added in XtraGreen
reduces carbon monoxide emissions by 12%, while a 5% decline has
been observed in emission of nitrogen oxides.
23
Third -party testing agencies have also reported a nearly 6% increase in
fuel economy. A new age eco-friendly fuel, XtraGreen has been critical
to driving the Nation with sustainable and eco- friendly energy
solutions.
•XP100
To fulfill the aspirations of the well-heeled car aficionados, who drive
the modern machines that reflect the engineering marvels of the
automobile revolution and to match their high- performance beasts,
IndianOil is leading the path to launch a high performing and the 'best-
in-class' premium fuel.
Adding a feather in the crown of Atmanirbhar Bharat, IndianOil
empowers India to join the league of select advanced Nations like
Germany and the USA that offer 100 Octane high-performance
fuel to demanding customers across the country.
IndianOil's XP100 is the first such fuel being launched in India. It is an
innovative achievement of IndianOil through intense and sustained
efforts of its world-class R&D, harnessing indigenously developed
technology that uses an interface of multiple production streams and
quality systems.
Dream vehicles with higher compression ratio engines require high
octane gasoline for inspiring, superior performance.
24
IndianOil's XP100 with superior antiknock properties improves
engine power with faster acceleration, enhances fuel economy
and offers better drivability with increased engine life. It also
helps contribute towards a healthy and cleaner environment with
reduced carbon emissions. The low Benzene content in XP100
reduces carcinogenic emissions, while the low aromatic content
reduces suspended particulate matter, thus improving air quality.
•Servo
The lubes and greases market is a complex amalgam of commercial and
passenger vehicles, 2 and 3 wheelers, agricultural equipments,
stationary engines, marine and industries that range from steel,
cement, power, mining, railroads, textiles, automobiles and glass.
In this market of opportunities, it is a heated race between brands to
capture the imagination of the stakeholders. But with one of Asia’s
finest research and development facilities
supporting SERVO is the brand to look out for.
With a turnover of nearly Rs.8000 crores, it is India’s biggest
lubricant brand and enjoys a market share of more than 27% in
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the finished lubes segment. SERVO has more than 5200 formulations
and 1600 grades of lubricants available in more than 1700 active
SKUs that markets in the country.
Indian for households:
•Indane cooking gas
IndianOil has played a major role in India’s transition to cleaner fuels
from the time it started marketing Liquified Petroleum Gas (LPG) in
1965. Brand Indane was conceived in 1964 to bring modern cooking to
Indian kitchens and the first Indane LPG connection was released on
22nd October 1965 in Kolkata. From a humble beginning of a consumer
base of around 2,000 in 1965, the brand has grown into a super brand
that rules nearly 16 crore kitchens. As a matter of fact, every second
cooking gas connection in India is an Indane.
26
Indane has now become one of the largest packed-LPG brands in the
world, with IndianOil as the second-largest marketer of LPG globally.
Indane is a Consumer Superbrand as conferred by the Superbrands
Council of India. It is a brand synonymous with safety, reliability, and
convenience.
Today, Indane LPG is sold and delivered in six different pack sizes. The 5
kg and 14.2 kg cylinders are largely meant for domestic use and
comprise almost half of all gas distributed, while the 19 kg, 47.5 kg and
425 kg Jumbo cylinders are marketed for industrial and commercial
consumption. The recently launched 5 kg and 10 kg cylinders made of
fiber composite with a trendy and translucent look are the latest
addition to the domestic category. Indane LPG is also supplied in bulk to
large-volume consumers in the manufacturing and engineering sectors.
To improve LPG penetration in the country and help better the lives of
rural masses, IndianOil undertook the task of achieving 100% LPG
penetration in the country in December 2015. Vyachakurahalli in
Chikkaballapur district in Karnataka became the country’s first
smokeless village, entering into the Limca Book
of Records-2017, after all households switched from
conventional fuel to LPG.
At IndianOil, we continuously strive for customer delight through our
value-added products and services. Indane has leveraged the strength of
digital technology to provide numerous initiatives for greater customer
convenience viz.
•SMS/IVRS Refill Booking
27
•Missed Call Refill Booking
•WhatsApp Booking
•LPG Emergency Helpline Number - 1906
•Preferred Time Delivery
•Online Portability of Connections
•Sahaj - Online payments for New Connections and Refill Delivery•Refill
Booking Portability
Customers are at the center of our business. Hence, we always look
forward to receive feedback from our customers and in this direction, a
unique toll-free number 1800-2333-555 has been made available to
customers for registering their feedback, suggestions and complaints.
For us safety is paramount hence we keep our customers informed
about safety measures to be undertaken while using LPG as fuel.
Suraksha LPG hose, flame retardant aprons and energy efficient devices
are recommended to enhance safety measures.
Indane is available in every nook and corner of the country, be it
Ladakh or the border areas of Northeast or Andaman, we are there.
Brand Indane holds the world record of selling domestic LPG at the
highest place in the world in Komic (a small village in Spiti, Himachal
Pradesh), besides operating the world’s highest bottling plant at Leh.
28
NON-FUEL PRODUCT FOR INDANE
PRODUCTS ARE :
LPG Stove
•
29
Suraksha hose
•
Kitchen Apron
•
30
Gas lighter
•
Cylinder trolley
•
31
Chhotu 5Kg FTL cylinder:
Having launched LPG (Liquified Petroleum Gas) marketing in the mid-
60s, IndianOil has been credited with bringing about a kitchen
revolution, spreading warmth and cheer in millions of households with
the introduction of the clean and efficient cooking gas. It has led to a
substantial improvement in the health of women, especially in rural
areas, by replacing smoky and unhealthy chulha with clean cooking gas.
Indane is today an ideal cooking gas for modern kitchens, synonymous
with safety, reliability, and convenience.
To cater to the evolving demands of the LPG (Liquified Petroleum Gas)
users and improve customer convenience, Indian Oil Corporation
Limited launched a small cooking gas cylinder also known as Chhotu, 5
Kg FTL (Free trade LPG) cylinder, thus becoming the first PSU Oil
Company in the country to replicate the international model of making
available cooking gas cylinders from corner stores for the convenience
of its customers.
Chhotu, a mini cooking gas cylinder, has been launched especially for
catering to migrant population in urban and semi-urban areas who do
not have local address proof, people with lower gas consumption, and
commercial establishments with limited space.
Customers can avail their Chhotu gas cylinder through our extensive
network of Indane distributorships and other points of sales like
IndianOil Retail Outlets, select Kirana stores, and select local
supermarkets.
32
Customers can avail a new Chhotu gas connection by submission of
identity proof only. Refill can be obtained by visiting any Point of Sale or
Distributorships across the country.
Customer can use the Chhotu gas cylinder in any city as per their
convenience. If the cylinders are bought from the point of sales,
customers will also have the option to buy back with a fixed amount of
Rs 500/- per cylinder, irrespective of duration of use.
33
A STUDY ON SERVICE QUALITY
PERCEPTION OF DOMESTIC LPG
INTRODUCTION
In this digital era, the service sector has been growing at a
lighting speed across the global. Competition and
advancement in technology have brought about radical change in
customer service. India is no exception to the current global trend. In
our country, the service sector contributes largely to the national
economy. It is imperative to trigger the growth of industrial sector,
particularly manufacturing sector in the medium and long term and
it is also equally important to maintain a decent and constant
development of agricultural sector, which still depends on the
vagaries of nature in the short and even medium term, but the sure
indicator for higher growth of the Indian economy is anticipated in
giving further fillip to the growth of the services sector, which can be
achieved with considerable ease compared to other sectors.
34
Historical Background
Quality came to the service literature at the beginning of the 1980s.
This is quite in contrast to the manufacturing sector where in quality
management has a long and rich history. In the twentieth century,
especially the second half, increasing global competition has forced
many manufacturing companies to develop and adopt quality
management practice aimed at increasing competitiveness by
eliminating waste, increasing efficiencies, reducing costs, improving
customer satisfaction and involving every member of the
organisation in doing so. However, from 1980s the interest in service
quality has increased tremendously. One reason why service quality
is becoming an important issue is that all the developed countries as
well as number of developing countries have become service
economies. In India also services sector is the largest contributor to
GDP, ahead of agriculture as well as industry sector. Another reason
for the rising importance of service quality is that it is proving to be a
winning competitive strategy. More and more companies are
emphasizing on providing excellent service quality in order to have a
distinctive competitive advantage over their competitors in a world
where establishing a long term technology based competitive
advantage is becoming increasingly difficult.
35
Service Quality
The service quality has become the success mantra in all sectors
ranging from health care to retailing. The need for understanding the
service dimension of each sector is extremely essential as it forms
the basis of evaluation of service itself. If the service provider is able
to comprehend customer’s evaluation criteria and design its service
strategy accordingly and executes it, then the efficiency level is
enhanced, resulting in customer’s satisfaction. This is the ultimate
objective of all the service providers as it is proved by earlier
researchers that getting new customers is time consuming and
involves higher costs then retaining the existing customer.
36
Elements of Customer Service
Customer service is the set of activities an organisation uses to
win and retain customer’s satisfaction. It can be provided
before, during and after the sale of the product. The following
are termed as elements of customer service:
1. Organisation
i. Identify each market segment
ii. Write down the requirements
iii. Communicate the requirements
iv. Organize processes
v. Organize physical spaces
2. Customer Care
i. Meet the customer’s expectations
ii. Get the customer’s point of view
iii. Deliver what is promised
iv. Make the customer feel valued
v. Respond to all complaints
vi. Over-respond to the customer
37
vii. Provide a clean and comfortable customer reception
area
3. Communication
i. Optimize the trade-off between time and personal
attention
ii. Minimize the number of contact points
iii. Provide pleasant, knowledgeable and enthusiastic
employees
iv. Write document in custom-friendly language
4. Front-line People
i. Hire people who like people
ii. Challenge them to develop better methods
38
iii. Give them the authority to solve the problems
iv. Serve them as internal customers
v. Be sure they are adequate trained
vi. Recognize and reward performance
5. Leadership
i. Lead by example
ii. Listen to the front-line people
iii. Strive for continuous process improvement
The organisation must record and then communicate to its
employees the direction for all tasks. A service quality hand
book should be created with description of each service quality
standards. Communication of each service quality standard for
each task can be resorted to through videos, personal coaching
and meetings. Website can also serve as an effective medium
of communication between the organisation and its customers
for asking questions and getting replies.
Customer satisfaction does occur after the sale of the product.
The various characteristics and expectation of the customers
are quite to read. Let us look into it.
[Link] - Delivered on schedule in undamaged condition
[Link] - Proper instruction on set up, or technicians
supplied for complicatedproducts.
[Link] - Clearly-written training manuals or instruction
39
provided on proper use.
[Link] Repair - Properly trained technicians to promptly make
quality repairs
[Link] Services - Friendly service representatives to
answer questions
F. Warranty - Clearly stated with prompt service on claims
Components of Service Quality
There are two components of service quality:
[Link] Service Quality
[Link] Service Quality
40
[Link] Service Quality
External Service Quality, which refers to the quality of service
delivered to the customers, has gained much promise in the context
of increasing customers’ expectations and changing customer
preference. External service quality offered to customers is generally
referred to as service quality. Providing high quality services
enhances customer retention rates, helps to attract new customers
through positive word of mouth advertising, increases productivity,
leads to higher market share, financial performance and profitability.
Different researchers have identified different dimensions to
measure external service quality. Garnin (1984) measured the ESQ
with the help of performance, features, reliability, conformance,
durability, serviceability, aesthetics and prestige. Driver and Johnson
(2001) estimated the ESQ with different dimensions namely
alternativeness, care, courtesy, flexibility, reliability, competence,
integrity, access, availability and functionality.
[Link] Service Quality
In service organisations, the employees come in to contact
41
with the customer in the process of production and consumption of
services. The inseparable nature of services stresses the point that
the human factor forms a key element in service sector in service
businesses, the service personnel reflect the organizational realities.
It is through the interaction with the staff that the customers form
an opinion about the organisation. Therefore it becomes essential
for the service marketers to motivate the employees to serve the
customers better. The main prerequisite for motivating employees
to deliver quality service to customers is delivering quality service to
internal customers.
Internal service quality is defined as the feeling that employees have
towards their job, colleagues and company. It refers to the quality of
work life among the employees. Internal service quality has been
measured by the employees attitude on pay, benefits, opportunities,
job security pride in the work, openness, fairness and friendliness in
the organisation.
LPG - Liquefied Petroleum Gas
LPG is the abbreviation or short form for liquefied petroleum gas.
Like all fossil fuels, it is a non-renewable source of energy.
[Link]
42
composition of LPG are hydrocarbons containing three or four
carbon atoms. The normal components of LPG thus, are propane
(C3H8) and butane (C4H10). Small concentrations of other
hydrocarbons may also be present. Depending on the source of the
LPG and how it has been produced, components other than
hydrocarbons may also be present.
LPG is a gas at atmospheric pressure and normal ambient
temperatures, but it can be liquefied when moderate pressure is
applied or when the temperature is sufficiently reduced. It can be
easily condensed, packaged, stored and utilized, which makes it an
ideal energy source for a wide range of applications.
Normally, the gas is stored in liquid form under pressure in a steel
container, cylinder or tank. The pressure inside the container will
depend on the type of LPG (commercial butane or commercial
propane) and the outside temperature.
When you start using LPG, some of the pressure in the container is
released. Some of the liquid LPG then boils to produce vapour. Heat
is needed to convert the liquid to vapour (known as the latent heat
of vaporization). As the liquid boils, it draws the heat energy from its
surroundings. This explains why containers feel cold to touch and
why, if there is a heavy off-take, water or ice may appear on the
container. When you stop using LPG, the pressure will return to the
equilibrium value for the surrounding temperature. The pressure of
the
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LPG in the container varies with the surrounding temperature. It is
also much higher than is needed by the appliances that use it; it
needs to be controlled to ensure a steady supply at constant
pressure. This is done by a regulator, which limits the pressure to suit
the appliance that is being fuelled. It is a colourless and odourless gas
to which foul-smelling mercaptan is added so that leak can be easily
detected.
LPG is highly inflammable and must therefore be stored away from
sources of ignition and in a well-ventilated area, so that any leak can
disperse safely. Another reason why care should be taken during
storage is that LPG vapour is heavier than air, so any leakage will sink
to the ground and accumulate in low lying areas and may be difficult
to disperse. LPG expands rapidly when its temperature rises. So
whenever a container is filled, sufficient space is left to allow for such
expansion. LPG will cause natural rubber and some plastics to
deteriorate. This is why only hoses and other equipment specifically
designed for LPG should be used.
Although LPG is non-toxic, its abuse – (like that of solvents) – is highly
dangerous. LPG should always be treated with respect and kept
away from children whenever possible.
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History of LPG
Liquid petroleum gases were discovered in 1912 when Dr.
Walter Snelling, an American scientist, realized that these gases
could be changed into liquids and stored under
moderate pressure. From 1912 and 1920, LP-gas uses were
developed. The first LPG cook stove was made in 1912, and the first
LPG -fueled car was developed in 1913. The LPG industry
begansometime shortly before World War I. At that time, a problem
in the natural gas distribution process popped up. Gradually facilities
were built to cool and compress natural gas, and to separate the
gases that could be turned into liquids (including propane and
butane). LPG was sold commercially by 1920.
45
SCOPE AND IMPORTANCE OF THE STUDY
Previous research studies have focused on customers’ perception
and expectation of service quality dimensions in different sector and
no research study has focused on Indan gas. And the problems of
the customers services provided by the employee of the company.
Hence the current study explores service quality of domestic LPG
from customer point of view in Salem city.
STATEMENT OF THE PROBLEM
extent. It has become necessary to design and execute the best
customer oriented practices and to internalize them for providing
enhanced satisfaction to the customer through the employees.
Customers’ service is not merely the compliance with the
government’s policies or the mechanical adherence to the time
frame of services. It is a philosophy and an attitude In the
competitive era, the Indane gas company reforms have
deregulated the market to a great of professional
commitment, which believes in the ultimate satisfaction or each
customer ‘wants’.
Service marketers have really understood that competition can be
well managed by differentiating through quality.
Significance of service lies in customer service management.
46
OBJECTIVES OF THE STUDY
The objectives of the study are as follows
[Link] identify the service quality of Indane LPG’s in Salem city.
[Link] enumerate level of satisfaction of customers in LPG’s
service.
[Link] analysis the respondents opinion about the Indane gas
company.
[Link] examine the quality of service provided by the Indane gas
company.
[Link] offer suggestions for improvement of service quality in
domestic LPG
47
RESEARCH METHODOLOGY
The validity of research mainly depends on the proper method of
data collection and suitabletechniques analysis.
In the present study, both primary and secondary data have been
used to conduct the study. Questionnaire have been prepared, and
tested for their validity and reliability by a pilot study and finally the
structured questionnaire have been used for collecting data. The
questionnaires are distributed to the customer directly and filled in
questionnaires are collected. Convenient sampling method is used
for selection of sample customers. The sample size of the customer
is 100.
SWOT ANALYSIS OF Domestic LPG
A SWOT analysis of domestic LPG (Liquefied Petroleum Gas)
usage might look like this:
Strengths:
Clean Cooking Fuel: Domestic LPG is a cleaner alternative to
traditional solid fuels like wood or coal, reducing indoor air
pollution and associated health risks.
Convenience: LPG is easy to use, providing a reliable and
efficient energy source for cooking and heating in homes.
48
Safety Features: LPG cylinders and stoves come with safety
features, making them relatively safe for household use.
Energy Efficiency: LPG offers consistent and efficient heat
output for cooking.
Weaknesses:
Affordability: The initial cost of LPG cylinders and stoves can
be a barrier for low-income households.
Price Fluctuations: The price of domestic LPG can vary due to
global oil price changes, affecting household budgets.
Limited Access: In some remote or underserved areas,
access to LPG infrastructure may be limited.
Carbon Emissions: While cleaner than solid fuels, LPG still emits
carbon dioxide when burned.
Opportunities:
Subsidy Programs: Governments can implement subsidy
programs to make domestic LPG more affordable for low-
income households.
Expansion of Distribution: Expanding the distribution network to
reach underserved areas can increase access.
Awareness and Education: Promoting the benefits of LPG and
safety measures can encourage adoption.
Green Initiatives: Promoting the use of biogas or other
renewable sources for domestic LPG can reduce carbon
49
emissions.
Threats:
Energy Transition: Shift towards electric or renewable energy
sources for cooking may pose a threat to domestic LPG use.
Supply Disruptions: Interruptions in the supply chain can lead
to shortages and affect consumers.
Regulatory Changes: Changes in safety regulations or
environmental policies can impact the LPG industry.
Safety Risks: Accidents related to domestic LPG usage can lead
to stricter regulations and public concern.
LIMITATIONS OF THE STUDY
The present study has the following limitations.
[Link] study has focused on service quality of domestic LPG of in
Indane GasCompany only.
[Link] study was conducted in Salem city only.
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RESULTS AND FINDINGS
[Link] clearly denotes that majority of respondents are females.
Because most of the female is buying domestic gas.
[Link] clearly denotes that Majority 69% of the respondents are
between in the age groupof 21- 40 years.
[Link] clearly denotes that Majority 41% of the respondents are
completed school leveleducation.
[Link] clearly denotes that Majority 43% of the respondents are
belongs to rural area.
[Link] clearly denotes that Majority 46% of the respondents are
other occupations.
[Link] clearly denotes that Majority 53% of the respondents are
earned monthly incomeof below Rs.10,000.
7.A maximum of 39 of the customers are satisfied in this aspect
followed by 15 whoare moderate in this aspect of satisfaction.
[Link] is concluded that there is no association between the age
level of the respondentsand Level of satisfaction.
[Link] level of safety given by the company opinion among the
customers belonging toall five groups of Indane gas is
‘satisfied’.
[Link] is concluded that there is no association between the
51
education level of the respondents and Level of opinion about
safety measures given by the company.
[Link] most important level of occupation among the customers
belonging to all five groups of Indane Gas Company is
‘satisfied’.
[Link] is concluded that there is no association between the
occupation of the respondents and Level of Satisfaction of
maintenance of record.
[Link] significantly influencing the factor influencing to
determine the service quality.
[Link] is concluded that there is no significant difference between
mean scores of opinion about the complaint and sex of
respondents.
[Link] concluded that there is no significant difference between
mean scores of opinion about the Changes of the Company
and Marital status of respondents.
[Link] concluded there is no significant difference residential area
of respondents hassame know about the IOC (Indane).
[Link] is concluded there is no significant difference Income group of
respondents hassame preference Indane gas.
[Link] concluded there is no significant difference age group of
respondents has sameresponse to respondent’s queries.
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SUGGESTIONS
The following suggestions were given on the basis of the findings of
the study.
[Link] should be one more dealer in Salem so as to distribute gas
cylinder quickly.
[Link] cylinder godowns may be installed in few more places
as the study area is vast.
[Link] should be a periodical checking up of the cylinder. If any
defect is found in any place, the dealer should send
immediately a mechanic to rectify the defect in the gas
cylinder.
[Link] of the customers are of the opinion that there is a delay in
providing cylinder, so reduce the time delay providing gas.
[Link] the irregularity of increasing price of the gas.
[Link] awareness among the consumers and make use less
consumption limit.
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CONCLUSION
In this the completive environment, service quality has become the
success mantra in all service sector. Keeping this in mind, this study
has been conducted at Salem city to identify the service quality of
Indane gas. The result indicates that customers are not highly
satisfied with the service provided by the Indane gas. So the
company took some serious action to improve the service quality.
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Questionnaire:
Q.1Who is your current LPG provider?
[Link]
[Link]
[Link]
Q.2Are you satisfied with your current LPG providers services?
[Link]
[Link]
Q.3How do you usually receive your LPG refills?
[Link] delivery
[Link] from supplier
Q.4Are the pricing and billing details easy to understand? [Link]
[Link]
Q.5Would you recommend your current LPG supplier to other?
[Link]
[Link]
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BIBLIOGRAPHY
[Link]://[Link]/wiki/Indian_Oil_Corporation
[Link]://[Link]/company/Indian-Oil-Corporation-
Limited/[Link]
[Link]://[Link]/2009/12/definition- of-
[Link]
[Link]://[Link]/[Link]?articleid=1
509186&show=abstract
[Link]://[Link]/[Link]?ct=jnl&st1=S
ervice+quality&fd1=kwd&mm 1=all#
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