2023-24

Project Report on
“A Study of Consumer Behavior and Satisfaction
Regarding
Bajaj Electrical Ltd.”

Submitted by -- UNDER GUIDANCE OF--

Nitin Rai Miss. Simran Upadhyay
2214070010025
CERTIFICATE BY COMPANY
 CERTIFICATE

This is to certify that project report entitled “A Study of

Consumer Behavior and Satisfaction Regarding Bajaj Electrical
Ltd.” has been written by Nitin Rai student of BBA, 6th Semester
Deen Dayal Upadhyaya Gorakhpur University, Gorakhpur affiliated
under my guidance and supervision. This is his own work and the
project is fit for submission in partial fulfillment of degree of BBA.
(Academic year-2023-24)

(Project Guide) (Internal Examiner) (External Examiner)

 DECLARATION BY THE CANDIDATE

I hereby declare that this project report is based on summer training undergone

by me at Pie on the titled “A Study of Consumer Behavior

and Satisfaction Regarding Bajaj Electrical Ltd.” This is my original work and

no part thereof has been submitted anywhere else for any other academic

purpose.

I also declare that no chapter of this manuscript in whole or in part has been

incorporated in this report from any earlier work done by other or byme. However,

extracts of any literature which has been used for this report has been duly

acknowledged providing details of such literature in these references.

NAME – Nitin Rai

ROLL NO. – 2214070010025

 ACKNOWLEDGEMENT

I, Mr. Nitin Rai take this opportunity to express my gratitude toall the people who

have guided and helped me directly or indirectly in the course of completion of

my project. I feel immense pleasure to express a deep sense of gratitude to

Company Guide and resources to work on thisproject.

I am also very thankful to Professor Shrivardhan Pathak, HOD, Departmentof

Business Administration, Deen Dayal Upadhyaya. Gorakhpur University for

his cooperation in providing me all the necessary information for doing this

project.
Table of Content

[Link] Content Page No.

1. Introduction 1
2. Company Profile 52
3. Objective Of the Study 67
4. Review of Literature 68
5. Research Methodology 73
6. Data Analysis and Interpretation 77
7. Conclusion 92

8. Suggestion And Recommendation 94

9. Limitation 95
10. Bibliography 96

5|Page
Chapter-1 INTRODUCTION

Page 1
 INTRODUCTION TO THE TOPIC

Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It

blends elements from psychology, sociology, social anthropology and economics. It attempts to understand

the buyer decision making process, both individually and in groups. It studies characteristics of individual

consumers such as demographics and behavioral variables in an attempt to understand people's wants. It

also tries to assess influences on the consumer from groups such as family, friends, reference groups, and

society in general.

Customer behavior study is based on consumer buying behavior, with the customer playing the three

distinct roles of user, payer and buyer. Research has shown that consumer behavior is difficult to predict,

even for experts in the field. Relationship marketing is an influential asset for customer behavior analysis

as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of

the importance of the customer or buyer. A greater importance is also placed on consumer retention,

customer relationship management, personalization, customization and one-to-one marketing. Social

functions can be categorized into social choice and welfare functions.

Who is a Consumer?

Any individual who purchases goods and services from the market for his/her end-useis called a consumer.

A consumer is one who consumes goods and services available inthe market.

Example - Tom might purchase a tricycle for his son or Mike might buy a shirt for himself. In the above

examples, both Tom and Mike are consumers

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 WHAT IS CONSUMER INTEREST?

Every customer shows inclination towards particular products and services. Consumer interest is nothing

but willingness of consumers to purchase products and services as per their taste, need and of course

pocket.

What is Consumer Behavior?

Consumer Behavior is a branch which deals with the various stages a consumer goes through before

purchasing products or services for his end use.

Why do you think an individual buys a product?

 Need

 Social Status

 Gifting Purpose

Why do you think an individual does not buy a product?

 No requirement

 Income/Budget/Financial constraints

 Taste

When do you think consumers purchase products?

 Festive season

 Birthday

 Anniversary

Marriage or other special occasions

The study of consumer behavior explains as to:

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 Why and why not a consumer buys a product?

 When a consumer buys a product?

 How a consumer buys a product?

According to Belch and Belch, whenever need arises; a consumer searches for several information which

would help him in his purchase.

Following are the sources of information:

 Personal Sources

 Commercial Sources

 Public Sources

 Personal Experience

Buying decisions of consumers also depend on the following factors:

 Messages, advertisements, promotional materials, a consumer goes through also called selective exposure.

 Not all promotional materials and advertisements excite a consumer. A consumer does not pay attention

to everything he sees. He is interested in only what he wants to see. Such behavior is called selective

attention.

Consumer interpretation refers to how an individual perceives a particular message

 A consumer would certainly buy something which appeals him the most. He

would remember the most relevant and meaningful message also called as selective retention. He would

obviously not remember something which has nothing to do with his need.

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 Factors Affecting Consumer Behavior

Consumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction

of their wants. There are different processes involved in the consumer behavior. Initially the consumer tries to

find what commodities he would like to consume, then he selects only those commodities that promise greater

utility. Meanwhile, there are various other factors influencing the purchases of consumer such as social,

cultural, personal and psychological. The explanation of these factors is given below.

1. Cultural Factors

Consumer behavior is deeply influenced by cultural factors such as: buyer culture,subculture, and social

class.

Buyer Culture

Basically, culture is the part of every society and is the important cause of person wants and behavior. The

influence of culture on buying behavior varies from country

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to country therefore marketers have to be very careful in analyzing the culture ofdifferent groups,

regions or even countries.

Subculture

Each culture contains different subcultures such as religions, nationalities, geographic regions, racial

groups etc. Marketers can use these groups by segmenting the market into various small portions. For

example, marketers can design products according to the needs of a particular geographic group.

Social Class

Every society possesses some form of social class which is important to the marketers because the buying

behavior of people in a given social class is similar. In this way marketing activities could be tailored

according to different social classes. Here we should note that social class is not only determined by

income but there are various other factors as well such as: wealth, education, occupation etc.

Social Factors

Social factors also impact the buying behavior of consumers. The important socialfactors are: reference

groups, family, role and status.

Reference Groups

Reference groups have potential in forming a person attitude or behavior. The impact of reference groups

varies across products and brands. Reference groups also include opinion leader (a person who influences

other because of his special skill, knowledge or other characteristics)

Page 6
Family

Buyer behavior is strongly influenced by the member of a family. Therefore, marketers are trying to find

the roles and influence of the husband, wife and children. If the buying decision of a particular product is

influenced by wife, then the marketers will try to target the women in their advertisement. Here we should

note that buying roles change with change in consumer lifestyles.

Roles and Status

Each person possesses different roles and status in the society depending upon the groups, clubs, family,

organization etc. to which he belongs. For example, a woman is working in an organization as finance

manager. Now she is playing two roles, one of finance manager and other of mother. Therefore, her

buying decisions will be influenced by her role and status.

Personal Factors

Personal factors can also affect the consumer behavior. Some of the important personal factors that

influence the buying behavior are: lifestyle, economic situation, occupation, age, personality and self-

concept.

Age

Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that the

consumers change the purchase of goods and services with the passageof time. Family life-cycle consists of

different stages such young singles, married couples, unmarried couples etc. which help marketers to

develop appropriate productsfor each stage.

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Occupation

The occupation of a person has significant impact on his buying behavior. For example,a marketing manager

of an organization will try to purchase business suits,

whereas a low- l e v e l worker in the same organization will purchase rugged workclothes.

Economic Situation

Consumer economic situation has great influence on his buying behavior. If the income and savings of a

customer is high then he will purchase more expensive products. On the other hand, a person with low

income and savings will purchase inexpensive products.

Lifestyle

Lifestyle of customers is another import factor affecting the consumer buying

behavior. Lifestyle refers to the way a person lives in a society and is expressed by

the things in his/her surroundings. It is determined by customer interests, opinions,

activities etc. and shapes his whole pattern of acting and interacting in the world.

Personality

Personality changes from person to person, time to time and place to place. Therefore,it can greatly influence

the buying behavior of customers. Actually, Personality is not what one wears; rather it is the totality of

behavior of a man in different circumstances. It has different characteristics such as: dominance,

aggressiveness, self-confidence etc. which can be useful to determine the consumer behavior for particular

product or service.

Page 8
Psychological Factors

There are four important psychological factors affecting the consumer buying [Link] are:

perception, motivation, learning, beliefs and attitudes

Motivation

The level of motivation also affects the buying behavior of customers. Every person has different needs

such as physiological needs, biological needs, social needs etc. The nature of the needs is that, some of

them are most pressing while others are leastpressing. Therefore, a need becomes a motive when it is more

pressing to direct the person to seek satisfaction.

Perception

Selecting, organizing and interpreting information in a way to produce a meaningful experience of the

world is called perception. There are three different perceptual processes which are selective attention,

selective distortion and selective retention. In case of selective attention, marketers try to attract the

customer attention. Whereas, in case of selective distortion, customers try to interpret the information in a

way that will support what the customers already believe. Similarly, in case of selective retention,

marketers try to retain information that supports their beliefs.

Beliefs and Attitudes

Customer possesses specific belief and attitude towards various products. Since suchbeliefs and attitudes

make up brand image and affect consumer buying behavior therefore marketers are interested in them.

Marketers can change the beliefs and attitudes of customers by launching special campaigns in this regard.

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IDENTIFICATION OF PROBLEM

Consumer behavior involves the psychological processes that consumers go through in recognizing needs,

finding ways to solve these needs, making purchase decisions (e.g., whether or not to purchase a product

and, if so, which brand and where), interpret information, make plans, and implement these plans (e.g., by

engaging in comparisonshopping or actually purchasing a product).

Consumer behavior is the important part of the organization without consumer satisfaction, they

don’t achieve the goal of the company. I am choosing this topic and analysis the consumer behavior and

who to motivate the consumer easily. Which things customer do like more and not like the product. Every

company to analysis the consumer Buying Behavior because the consumer purchases the product and give

theadvice the other customer to purchase the product. Consumer is the main mode of theadvertising.

Consumer behavior is such a thing which depicts consumer's attitude towards a product. It shows consumer's

likeness or this likeness towards the product. Consumer behavior plays a very important role in the success

or failure of a product. If a consumer is satisfied from the product, then his behavior would be positive

towards the product and if he is not satisfied from the product then his behavior would be negative

towards the product. A company's success largely depends upon the consumer's positive behavior. Today's

consumer is very well aware about the products available inthe market. He knows what a good product is and

what is a bad product. He is well educated and decides to purchase goods on merit. He will never go for

such products which do not meet the quality standards. He will buy only those things which will truly

satisfy his needs and expectations

The final observation that is made that consumer behavior is affected by a host of

Page 10
 variables ranging from personal, professional needs, attitudes and values, personality characteristics,

social economic and cultural back ground, age gender professional status to social influences of various

kinds exerted a family, friends, colleagues, and society as a whole. The combination of these factors helps

the consumer in decision making further psychological factors that as individual consumer needs,

motivation, perceptions, attitudes, the learning process, personality characteristics are the similarities

which operates across the different types of people and influence their behavior.

WHY DO WE STUDY CONSUMER BEHAVIOR?

Basic objective of the studying consumer behavior is that the firm needs to know whobuys their product.


How they buy?
 When and where they buy?

Why they buy?

How they respond to marketing stimuli. Because they study consumer behavior what is Consumer

Behavior about? How, why, where and when consumers make purchase decisions? Considers who

influences the decisions? What is Consumer Behavior about? All these are important questions, which are

to be known to the companies so that they can design, and implement marketing strategies to satisfy the

customers. Consumers determine the sales and profits of a firm by their purchase decisions, thus the

economic viability of the firm. What is Disposable income and what is Discretionary income what is the

stage of family life cycle stage because these all these factors influence the consumer behaviors which are

very important to the marketers

Consumer behavior is the procedure throughout the final purchaser makes buy

Page 11
assessments. This can be defined as Consumer Behavior Defined as of the processes involved when

individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to

satisfy needs and desires. Those actions directly involved in obtaining, consuming and disposing of

products and services, including the decision processes that precede and follow those actions. Consumer

behavior examinesmental and emotional processes in addition to the physical activities.

The main role of marketing manager is to satisfy needs and wants of the Customers. This can only be

done by the study of Consumer Behavior. Consumer is the most important person to the marketer because

the marketer takes in to consideration on the liking and disliking of the consumer and he produces the

goods and services accordingly. The more the Consumer Behavior is learnt the more the needs and wants

of the Customers are fulfilled. The Study of consumer behavior helps us;
 To design the optimal product or service for customers.
 To determine where the product or Service should be available that would easy
 for the customers to buy.
 To determine what price will the customers give up purchasing product or
 service?
 To determine which method of Promotion would be most effective for getting
 the customers to buy a product.
 It helps in changing the behavior of the consumers.
 To improve performance of the organization.
 To achieve the organizational objectives

Page 12
MARKETING STRATEGIES AND CUSTOMERSATISFACTION

OF BAJAJ ELECTRICAL
CONSUMER BUYING BEHAVIOR AND SATISFACTION

Today's consumers demand choice and convenience. They "mix and match" channels

according to their needs for product research, purchase and delivery. As cross-channel shopping

behavior grows main stream, the best way to evaluate and compare retail channels is to gauge their

relative impact increasing customer satisfaction and loyalty.

Customer satisfaction presents a versatile cross-channel metric to gauge the retailer's strengths

and weaknesses from the customer's viewpoint. Because satisfaction drives behavior, a more thorough

understanding of what drives multichannel shoppers' satisfaction will give retailers the insights to

influence customer behavior in the short and long term. In this way, customer satisfaction is

harnessed to become a driving force in sales growth and increasing loyalty where each channel is

optimized to meet the customer's needs and exceed their expectations.

The core function of the marketing department is to understand and satisfy consumer need,

wants and desire. Consumer behavior captures all the aspect of purchase, utility and disposal

of products and services. In groups and organization are considered within the framework of

consumer. Failing to understand consumer behavior is the recipe for disaster as some companies have

found it the hard way. For example, Wal-Mart launched

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operations in Latin-America with store design replicating that of US markets. However,

Latin America consumer differs to US consumer in every aspect. Wal- Mart suffered

consequences and failed to create impact.

Social, cultural, individual and emotional forces play a big part in defining consumer buying

behavior. Cultural, sub-culture and social class play an important is finalizing consumer behavior. For

example, consumer growing up in US is exposed to individualism, freedom, achievement, choice, etc.

On sub-culture level influence of religion, race, geographic location and ethnicity define consumer

behavior. Social class consists of consumer with the same level of income, education, taste,

feeling of superiority and inferiority. Over time consumer can move from one social level to

another.

Culture alone cannot define consumer behavior; social forces also play an important role.

Social forces consist of family, friends, peer groups, status and role in society. Groups which have

direct or indirect influence on consumer are referred to as reference groups. Primary groups consist

of friends, family and peers with whom consumer has direct contact for considerable time. Secondary

groups are association where interaction is at formal level and time devoted is less.

Consumer buying behavior is influenced by individuals own personality traits. These

personality traits do not remain the same but change with the life cycle. The choice of occupation

and corresponding income level also play part in determining consumer behavior. A doctor and

software

Page 14
engineer both would have different buying pattern in apparel, food automobileetc.

Consumers from similar background, occupation and income levels may show a different

lifestyle pattern.

An individual buying behavior is influenced by motivation, perception, learning, beliefs and

attitude. These factors affect consumer at a psychological level and determine her overall buying

behavior. Maslow’s hierarchy,

Herzberg Theory and Freud Theory try and explain people different motivational level in

undertaking a buying decision. Perception is what consumer understands about a product through

their senses. Marketers have to pay attention to consumers perception about a brand rather than true

offering of the product. Learning comes from experience; consumer may respond to stimuli and

purchase a product. A favorable purchase will generate positive experience resulting in pleasant

learning. Belief is the pre-conceived notion a consumer has towards a brand. It is kind of influence a

brand exerts on consumer. For example, there is a strong belief product coming through German

engineering are quality products. Companies may take advantage of this belief and route their

production through Germany.

Companies need to think beyond buying behavior and analyze the actual buying process.

Complex buying behavior requires high involvement of buyers, as it is infrequent in nature,

expensive, and they are significant differences among the available choice e.g. automobile. Grocery

buying is referred to as habitual buying, which requires less involvement as few

Page 15
differences among brands, frequent and inexpensive. Buying process involves purchase need, decision

makers, information search, alternatives evaluation, purchase decision and post purchase behavior.

Companies try hard to understand consumer experience and expectation at every stage of buying

process. Marketers need to figure the right combinations which will initiate purchase need e.g.

marketing programs. Companies should ensure consumer have readily available information to take

the decision e.g. internet, friends. Consumers evaluate alternatives based on their brand perception

and belief. Companies need to work hard to develop products, which match this perception and belief

every time. Final purchase decision is taken looking others perception of the brand. Post purchase if

expectations meet actual performance consumer is satisfied and more likely to repurchase or

recommend the brand to others.

Consumer markets are defined by various geographical, social and cultural factors.

Furthermore, consumer behavior is influenced by psychological, personality, reference groups and

demographic reasons. Finally actual buying process involves complex process and cycle. Companies

have to keep a tab on all three factors in formulating strategy

Page 16
BAJAJ ELECTRICALS DEVISES NEW MARKETINGSTRATEGY
BAJAJ Electricals Ltd is working out a marketing strategy, which includes launching new

brands at different price points and a campaign through print and electronic media for its fans and

cooler segments.

The company's TV commercial is expected to roll out in March, with an advertisement budget

of Rs 4 crore. The campaign will see 20-second films with different creatives to highlight the

company's marketing pitch — `Bajaj fanssabs Tez' and Bajaj coolers, `ek dump solid Thanda'.

"Our products can be seen only in the last few seconds in these ads. For example, one

campaign will open with a scene of papers flying around in a room, and only towards the end, we

show our fan is the reason for that," says Mr.

R. Ramakrishnan, President and Chief Operating Officer.

Also, the company will use a series of five-second shots that will seek to highlight its claim

that Bajaj fans have the largest RPM (rotation per minute). "The average RPM of our fans is

about 400, while those of our competitors range from 330-340," Mr. Ramakrishnan told Business

Line.

As part of its marketing strategy, Bajaj Electricals plans to come out with new products at

different price points. "We will be sharpening our focus on the two new products in the fans

segment, Bahar and Maxima, which are priced at Rs 800 and Rs 900, respectively. This is just a

little over the prices offered by the unorganized sector. The idea is to get a slice of the

unorganized market

Page 17
based on our brand equity. At the other end, we will be introducing new brands such as Bajaj Regal

Gold and Bajaj Crown, which are priced at about Rs 1,250," he said, adding that the company's

objective was to offer products in a wider price band.

India's fan market is growing at a steady clip. It is estimated at three lakh- four lakh pieces a

year in the organized sector. In the previous financial year, the company had sold about 52,000 pieces

and this year its fan sales are likely to cross 65,000. "We are at present No. 3 in the industry and we

would like to move up to the second position, after Ken star, shortly," according to Mr.

Ramakrishnan.

In the cooler segment, the company plans to come out with a new product, Bajaj Coolest,

which will be at the top end, in March.

Apart from launching new products, the company is also strengthening its distribution

network, with more focus on having new dealers. "We had some 6,000 retailers about three years

ago, today we have more than 10,000. New dealers accounted for about 20 per cent of our growth in

sales last year," Mr. Ramakrishnan said.

Bajaj Electricals reported a net profit of Rs 5.51 crore in the first nine months of the current

fiscal, against a loss of Rs 6.31 crore during the corresponding period of the previous fiscal. A five-

pronged turnaround strategy, envisaging a

15 per cent increase in topline growth, focus on products that yield higher margins such as

luminaries and appliances, reduction of working capital, cutting

Page 18
fixed costs and increasing consumer pull through brand building exercises.

BAJAJ ELECTRICALS TO EXPAND GLOBAL REACH,LEVERAGE BRAND

In a strategic move, the Rs 503-crore Bajaj Electricals Ltd—part of the Bajaj Group—plans to

establish the Bajaj‗ brand in 15 to 20 countries in thenext few years.

According to Bajaj Electricals Ltd chairman and managing director Shekhar

Bajaj: ―As part of the strategy, we are planning to spread our wings in the international

market for lighting products such as lamps and tubes—from countries such as South Africa and the

Middle-East to other parts of Africa such as Nigeria, Kenya, Libya, Morocco, Tunisia and Algeria in

2004.

On the company’s new plans, said Bajaj Electricals Ltd president and chief operating officer R

Ramakrishnan: ― ‗Bajaj‗ fans are being sold in Iraq and the

Middle-East and the company has recently started exports of the product to

Nigeria as well. The company now wants to leverage ‗Bajaj‗ fans in other parts of Africa,

the UAE, Jordan, Kuwait, Saudi Arabia and Iran more aggressively.

Similarly, Bajaj‗ room coolers are going to the UK and now the companyaims to export the

product to Egypt and Europe too Besides, we are now planning to export our high mast lighting and

galvanized poles to the Middle- East, Saudi Arabia and UAE in 2004, ‖ he added.

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 The company recently started exports of high mast lighting and galvanized poles to

Mauritius and the products have taken off well there. Till date, the engineering and projects

business unit has executed the largest numberof turnkey projects in lighting and associated electricals

with a market share of above 70 per cent in India, explained Mr. Bajaj.

Export activities of Bajaj Electricals is being handled by group company Bajaj International.

Bajaj Electricals Ltd is now eyeing Thailand to enter into outsourcing arrangements with

companies based there. This is because of certain strategic advantages in terms of cost and product

features. The move is in line with the company’s on-going China sourcing strategy for components

used in domestic appliances in India, Mr. Bajaj added.

After having entered into brand licensing and strategic sourcing agreement with UK-based

home appliance company, Morphy Richards Ltd, we are now in the process of manufacturing dry

irons, oven toaster grillers and mixer grinders. Plans are on the anvil to implement manufacture of

food processors for Morphy Richards in 2004. With the move, Bajaj Electricals plans to become a

global supplier of select domestic home appliances to Morphy

As part of the marketing strategy, Bajaj Electricals is planning to introduce a concept of in-

shop branding for Morphy Richards‗ brand within 100 premium retail outlets across the country. At

present, Bajaj Electricals is in the process of marketing ‗Morphy Richards‗ products through 2,000

retail outlets,he added.

Page 20
 On the company’s new customer relationship management initiatives, planning to promote

Morphy Richards‗ products through appropriate ground- level activities which will include product

demonstration, among others, in 25 towns, during Diwali 2004.

Bajaj Electricals is planning to expand its number of retail outlets from

1.25 lakh to 2 lakh within a year. Besides, in the next two years, the company is also planning to beef

up its network from 22,000 retailers to 30,000 retailers, Mr. Ramakrishnan said.

Toolbox for measuring customer satisfaction

In spite of various standpoints and theories of consumerism, different disciplines generally

employ similar sets of approaches and tools for studying consumer satisfaction. The approaches can

be exploratory, descriptive, comparative or interpretative, and the most common tools are consumer

surveys/polls, interviews and focus group discussion.

Exploratory and descriptive approaches are usually employed for evaluating attitudes,

opinions, and public understanding of various issues, i.e. health and environment, consumer attitudes

towards specific instruments or coercive measures.

 Comparative and explanatory approaches are involved in studying particular consumer behaviors, i.e.

recycling; and for development ofpredictions of specific factors that may affect values and attitudes,

whichin their turn may lead to cha nags in behavior.

 Interpretative methods and envisioning are used for predicting the consequences of particular

consumption patterns, i.e. dematerialized lifestyles.

Page 21
Bajaj Electrical StrategiesMarket Leadership

To provide quality, reliability and good value in the products we sell and services we offer. To

be sensitive and responsive to changing customer needs right from product development stage to

after-sales-service. To aim to become market leaders in whatever we take up for marketing –

whether in restrictedareas for certain products or on an All-India basis for others.

Price Competitiveness

To improve our competitiveness by constantly enhancing the performance of our

manufacturing, development, marketing and administrative functions. We would like to improve our

profits by higher market share rather than by higher margin.

Consumer Satisfaction

To develop the right relationship between the Company and all its customers, so that the

customers’ needs are met simply and effectively. Services should not just be a slogan; it should be our

‗Dharma‗. We have already established a consumer cell to take care of consumer complaints as also

desiredby the council for FAIR Business Practices.

Ethical Dealings

To conduct the company’s affairs with honesty and integrity. People at every level will be

expected to adhere to high standards of business ethics.

Social Responsibility

To discharge our responsibility to people. We are committed to five groups of people and we

cannot reduce the emphasis of obligations and responsibilities on any of them.

Our Suppliers

They are our backbone. We have to see that they earn reasonable profits from dealings with us.

Page 22
We should also assure them satisfactory growth so that they also prosper with the prosperity of the

company.

Our Dealers

To motivate them by offering quality products at reasonable prices. We must create conditions for

them in which they would like to establish long term relationship with us. We must make such

policies that will improve the profits of our dealers.

Our People

To offer growth and encourage promotion from within by proper training and motivation. To

create an atmosphere that will encourage best of talent talent to join our company. To see that the

fruits of prosperity are shared by those who have contributed in the prosperity of the company.

Our Shareholders

To assure them proper growth and return for their trust in us by investing their money in our

company.

Our Consumers

To ensure that our customers are kept satisfied through good quality products at reasonable

price and proper after-sales-services.

Profit awareness

To earn reasonable profit is extremely essential for discharging our obligation to any of the

above five groups of people. Awareness to profit has to be strengthened and percolated at all levels,

since each person is expected to and must contribute to increasing the profitability of the Company.

Quality Consciousness

To perpetually strive to improve the quality where there is to be no compromise. People at all

levels-whether they are employees or vendors, or dealers – should be made to consider ―quality as a

Page 23
 way of life‖. The emphasis on quality is not to be restricted to our products and our services only, but

to all spheres of our activities.

Technical Superiority

 To develop our Company in technical orientation so that we sell our productson the basis of

technical superiority.

Action Orientation

 To be on our toes and always dynamic whether markets are good or bad.
There should be no place for demoralization and frustration if the markets are bad or for

complacency or lethargy when they are good. We should not be satisfied with our past achievement

but strive for higher and better performance like a real ―Karma yogi‖.

Excellence Culture

To develop a culture where mediocrity is neither accepted nor tolerated. To create conditions

where each person is striving to surpass his earlier best; where each person is motivated and assisted

to give out his best

Page 24
 THE RELATIONSHIP BETWEEN SERVICE QUALITY AND

CUSTOMER SATISFACTION
The relationship between service quality and customer satisfaction has received considerable

academic attention in the past few years. But the nature of the exact relationship between service

quality and customer satisfaction (especially in the way the two constructs have been operationalized)

is still shrouded with uncertainty. Many researchers have operationalized customer satisfaction by

using a single item scale and many others have used multiple item scales. The present study adopts

a different approach and views customer satisfaction as a multi- dimensional construct just as

service quality, but arguesthat customer satisfaction should be operationalized along the same factors

(and the corresponding items) on which service quality is operationalized. Based on this approach,

the link between service quality and customer satisfaction has been investigated. The results have

indicated that the two constructs are indeed independent but are closely related, implying that an

increase in one is likely to lead to an increase in another.

The crux of marketing theory

Service quality and customer satisfaction are inarguably the two core concepts that are at the

crux of the marketing theory and practice (Spreng and Mackey, 1996). In today’s world of intense

competition, the key to sustainable competitive advantage lies in delivering high quality service that

will in turn result in satisfied customers (Shemwell et al., 1998). The prominence of these

Page 25
two concepts are further manifested by the cornucopia of theoretical and empirical studies on the

topic that have emanated over the past few years. Therefore, there is not even an iota of doubt

concerning the importance of service quality and customer satisfaction as the ultimate goals of

service providers.

Perceived service quality is one of the highly debated and researched topics in marketing

theory, the prima facie evidence for which is exhibited by the considerable academic attention that it

has got from researchers across the world (for a detailed discussion see Buttle, 1996; Asubonteng et

al., 1996).

Economic success

Similarly, the need for striving for customer satisfaction lies in its ability to result in

economic success. Customer satisfaction is considered a prerequisite for customer retention and

loyalty, and obviously helps in realizing economic goals like profitability, market share, return on

investment, etc. (Scheuing, 1995; Reichheld, 1996; Hackl and Westlund, 2000).

Service quality has been described as a form of attitude – a long-runoverall evaluation, and the

two constructs (service quality and attitude) are viewed as similar (Parasuraman et al., 1988;

Zeithaml, 1988; Bitner et al., 1990; Bolton and Drew, 1991a, b; Cronin and Taylor, 1992; Bitner and

Hubert, 1994).

Allport (1935) defined attitude as ―a learned predisposition to respond to an object in a

consistently favorable or unfavorable way‖. As perceived service quality portrays a general, overall

appraisal of service, i.e. a global value

judgement on the superiority of the overall service, it is viewed as similar to

Page 26
attitude. Perceptions of service quality could occur at multiple levels in an organization – e.g. with the

core service, physical environment, interaction with the service providers, etc. (Bitner and Hubert,

1994). On the other hand, the customers overall satisfaction with the services of the organization is

based on (or a function of) all the encounters/experiences of the customers with that organization.

Similar to service quality, customer satisfaction can occur at multiple levels in an organization, e.g.

satisfaction with the contact person, satisfaction with the core service and satisfaction with the

organization as awhole.

Closely related constructs

A basic agreement emanating from the wide range of literature on service quality and customer

satisfaction is that service quality and customer satisfaction are conceptually distinct but closely

related constructs (Parasuraman et al., 1994; Dabholkar, 1995; Shemwell et al., 1998). An attempt

is being made in the current study to further accentuate the above-pronounced premise. The effort

adopts a different approach (from the earlier works on service quality and customer satisfaction) to

operationalize customer satisfaction. In order to investigate the link between service quality and

customer satisfaction, operating elements of service quality and customer satisfaction are required.

The subsequent sections briefly deal with the various

factors of customer-perceived service quality and customer satisfaction that are used as the basis in the

present study for examining the relationship between service quality and customer satisfaction.

Page 27
2. Determinants of customer-perceived service quality

The research literature on service quality has identified numerous models by different

researchers across the world. However, the SERVQUAL instrument (Parasuraman et al., 1988), a 22-

item scale that measures service quality along five factors, namely reliability, responsiveness,

assurance, empathy and tangibles, forms the foundation on which all other works have been built.

Interestingly, the conceptualization, dimensionality, operationalization, measurement and applications

of SERVQUAL have been subjected to some severe criticisms as well (see Buttle, 1996). In spite of

such reprehension on the efficacy of SERVQUAL across different service settings, there is a general

agreement that the 22 items are reasonably good predictors of service quality inits wholeness. But a

careful scrutiny of the 22 items implies that the items at large deal with the element of human

interaction/intervention in the service delivery and the rest on the tangible facets of service (such as

the effect of atmospherics, design and décor elements, appearance of equipment, employee

appearance, etc.). Therefore, the SERVQUAL instrument seems to have overlooked some other

important factors of service quality, namely the service product or the core service,

systematization/standardization of service delivery (the non-human element), and the social

responsibility of the service organization.

Five critical aspects of service quality

In an effort to conceptualize service quality (by taking in to account all the aspects of

customer perceived service quality, including those already addressed in the existing instruments and

those that are left out in the empirical

Page 28
 service quality literature), Sarachchandra al. (2001) identified five factors of service quality as critical

from the customers‗ point of view. These factors are:

(1) core service or service product;

(2) human element of service delivery;

(3) systematization of service delivery: non-human element;

(4) tangibles of service – services capes;

(5) social responsibility.

Empirically validated factors

Summarizes the different factors of service quality. In another research work Sarachchandra

(2000) empirically validated the proposed service quality factors by developing a survey instrument

consisting of 41 items. A seven-point Likert scale, with 1 denoting very poor and 7 denoting very

good, has been used to measure the levels of service quality with respect to the 41 items. Data have

been collected from 277 customers belonging to 43 banks in India. The different operating elements

of service quality with respect to the five

factors are presented in the Appendix [1]. The standardization of the instrument has been carried out

by tests of one-dimensionality, reliability, convergent validity, discriminant validity and criterion-

related validities using a confirmatory factor analysis (CFA) approach. The service quality factors

thus arrived at form the basis for the analysis reported in the present study.

3. Determinants of customer satisfaction

Although there is a general conformity on the distinctiveness of service

Page 29
quality and customer satisfaction from a conceptual point of view, the operationalization of customer

satisfaction is somewhat hazy. For instance, Cronin and Taylor (1992) defined and measured

customer satisfaction as a one- item scale that asks for the customers‗ overall feeling towards an

organization.

By using a single item scale to measure customer satisfaction, Cronin and Taylors approach

fails to do justice to the richness of the construct, as it has failed to acknowledge that, like service

quality, customer satisfaction is also likely to be multidimensional in nature. Bitner and Hubert

(1994) used four items to measure the customers‗ overall satisfaction with the service provider.

The authors introduced the concept of encounter satisfaction, and devised a nine-item scale to

measure the same (i.e. the customers‗ satisfaction with a discrete service encounter).

Customer satisfaction is multi-faceted

Other works have emphasized the multi-faceted nature of customer satisfaction and have used

multiple item scales to measure customer satisfaction (Westbrook and Oliver,1981; Crosby and

Stephens,1987; Suprenant and Solomon, 1987; Oliver and Swan, 1989; Oliva et al., 1992). In a recent

effort, Shemwell et al. (1998) used a five-item scale to model customer satisfaction. Price et al.

(1995) measured service satisfaction by using a six-item scale, while studying the structural model of

the relationships among the service provider performance, affective response and service satisfaction.

From the growing body of literature on customer satisfaction, one can easily observe that there has

been some research works on specific encounters, known as transaction-

Page 30
 specific/encounter-specific customer satisfaction. Researchers have also acknowledged the multi-

dimensional nature of customer satisfaction and have come out with global measures (capturing the

satisfaction at multiple levels in the organization), that view overall satisfaction as a function of

satisfaction with multiple experiences or encounters with the service providers.

The present study takes a slightly different approach and views customer satisfaction as a

multi-dimensional construct, but the underlying factors/items of customer satisfaction are the same as

the ones by which service quality is measured. In other words, the current work argues that customer

satisfaction should be operationalized along the same dimensions that constitute service quality and

by the same items that span the different dimensions

Such an approach was also pronounced by Bitner and Hubert (1994) who argued that although

the SERVQUAL items of Parasuraman al. (1988), when measured at the level of the firms’ services,

appear to be good predictors of service quality, it is also possible that the 22 items of SERVQUAL,

when measured as a function of multiple experiences with the firm, may be good predictors of overall

service satisfaction.

Five factors of customer satisfaction

By this factor/item specific approach, it is posited that a more meaningful comparison/relationships of

the service quality and customer satisfaction constructs can be made. Therefore, it is postulated

that customer satisfactionalso comprises of the following five factors:

(1) core service or service product;

Page 31
(2) human element of service delivery;

(3) systematization of service delivery: non-human element;

(4) tangibles of service – service scopes;

(5) social responsibility.

Seven-point scale

In order to measure customer satisfaction, the same 41 operating elements of service quality have

been used. The respondents have been asked to give their responses regarding their level of

satisfaction on a seven-point scale (ranging from –3 (indicating very high dissatisfaction) to +3

(indicating very high satisfaction)) for all the items. Data have been collected from the same

customers (i.e. 277 customers) who responded to the survey on service quality.

Service quality is more abstract

The investigation of the relationship between service quality and customer satisfaction has showed

that although there is a strong correlation between service quality and customer satisfaction, the two

constructs are indeed different which means that it becomes imperative for the service providers

to view the two constructs separately. Previous research has shown that while customer satisfaction

reflects the customers feelings about multiple encounters and experiences with the service

organization, service quality may be tempered by perceptions of value or by the experiences of others

that may not be as good. Service quality is more abstract than customer satisfaction and is likely to be

influenced by variables such as advertising, other forms of communication and

Page 32
the experience of others (Bitner and Hubert, 1994).

Management initiatives

Therefore, quality-improvement initiatives by the management should not just focus on

improving customer satisfaction but also target on improving the customer perceptions of overall

service quality by taking the above variables into consideration. In other words, the service

providers should try to continuously improve both service quality and customer satisfaction. In

this era of intense competition, satisfying customers may not be sufficient. The veritable gains of a

quality revolution come only from customer delight, which again to a very great extent depends on the

customers perceptions of overall service quality.

Over the past few years there has been a heightened accentuation on service quality and

customer satisfaction in business and academia alike. Superior service quality and high levels of

customer satisfaction are seen as two major goals by service provides in order to enhance their

business performance. But the relationship between the two constructs has been a subject of major

controversy, with several researchers proclaiming different theories on the same.

Implications for further research

The present study is an attempt to throw some more light on the distinctiveness of the

constructs of service quality and customer satisfaction, and the relationships between them. The study

adopts a different approach by operationalizing customer satisfaction on the same grounds

(factors and them

corresponding items) as done for service quality. The results reveal that service

Page 33
 quality and customer satisfaction do exhibit independence and are indeed different constructs from

the customers point of view. It is also observed that these two are closely related as can be seen from

the high correlations between them with respect to the five factors. This is also re-emphasized by the

cross- tabulation analysis. The study is just a small step in unearthing and understanding the two

constructs of service quality and customer satisfaction and their implications on competitive

fruition. The causal relationships between the two have not been investigated as it is outside the

purview of the present research work. Continued study of research models that portray the causal link

between service quality and customer satisfaction and their effect on such desired later outcomes

such as purchase intentions, fewer complaints, emotional bonding, word of mouth, etc. would help to

further illuminate the subject.

Relationship between service quality and customer satisfaction

In the modern, highly competitive business world, the key to sustainable competitive

advantage lies in delivering high quality service that will, in turn, lead to satisfied customers.

Customer satisfaction is considered a prerequisite of customer retention and loyalty, and can help to

boost profitability, market share and return on investment. Sarachchandra et al. examine in detail the

relationship between service quality and customer satisfaction.

Five factors of service quality

The authors identify five factors of service quality as critical from a customerpoint of view:

(1) core service or service product – the content of a service;

Page 34
 (2) human element of service delivery aspects such as reliability, responsiveness,assurance,

empathy and service recovery, that are part of the human element in service delivery

(3) systematization of service delivery – the processes, procedures, systems andtechnology

that make a service seamless;

(4) tangibles of service – the equipment, signage, appearance of employees, and the man-made

physical environment surrounding the service, which is commonly known as the ―services cape‖;

(5) social responsibility – the ethical behavior of the service provider.

The five factors cover a total of 41 items, from convenient operating hours and days to equal

treatment of all customers and from providing service right first time to having effective customer

grievance procedures.

Assessing customer satisfaction

The authors point out that customer satisfaction cannot be assessed by simply asking for the

customers overall feeling towards the service provider.

Customer satisfaction, like service quality, is likely to be multidimensional in nature. The

authors argue that customer satisfaction should be operationalized along the same five factors and 41

items as service quality.

Service quality and customer satisfaction are different constructs

By analyzing information collected from customers of different banks in India, Sarachchandra

et al. are able to show that service quality and customer satisfaction are two different constructs,

which customers are capable of

Page 35
distinguishing. Drawing on previous research, they argue that, while customer satisfaction reflects the

customers feelings about multiple encounters and experiences with the service organization, service

quality may be tempered by perceptions of value or by the experiences of others that may not be as

good. Service quality is more abstract than customer satisfaction and likely to be influenced by

variables such as advertising and other forms of communication. Service providers must therefore

view service quality and customer satisfaction separately. Managers should not simply focus on

improving customer satisfaction, but also seek to improve customer perceptions of overall service

quality.

Service quality and customer satisfaction are closely related

The research by Sarachchandra et al. also shows, however, that service quality and customer

satisfaction are closely related, and that an increase in one is likely to lead to a rise in the other.

Satisfying customers may not be sufficient to remain ahead of the competition. The true gains of a

quality revolution come only from delighting the customer. This, to a great extent, depends on his or

her perceptions of overall service quality.

(A précis of the article ―The relationship between service quality and customer satisfaction –

a factor specific approach‖. Supplied by Marketing Consultants for Emerald.)

Page 36
Chapter-2 COMPANY PROFILE

Page 37
 COMPANY PROFILE
Bajaj Electricals Ltd (BEL) is Indian consumer electrical equipment manufacturing

company based in Mumbai, Maharashtra. It is a part of the 30,000 crore (US$5.43 billion) Bajaj

Group. It has diversified with interests in lighting, luminaries, appliances, fans, LPG based

Generators, engineering and projects. Its main domains are lighting, consumer durables, engineering

and projects. Lighting includes lamps, tubes and Luminaries. Consumer durables include appliances

and fans. Engineering and projects include transmission line towers, telecommunications towers, high

mast, poles and special projects, and others include die casting, Wind energy & Solar energy. Some

notable project includes lighting works at the Commonwealth Games stadium and the Bandra Worli

Sea Link

It has 19 branch offices spread in different parts of the country with a chain of about 1000

distributors, 4000 authorized dealers, over 4,00,000 retail outlets and over 282 Customer Care centers.

Bajaj Electricals (BEL) incorporated in 1938 is engaged in business appliances, fans, lighting,

luminaries and engineering and projects. BEL is a part of the Rs. 20000 crore Bajaj Group.

In India company has 19 branch offices spread across in Ahmedabad, Bangalore,

Bhubaneshwar, Chandigarh, Chennai, Cochin, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kolkata,

Lucknow, Mumbai, Nagpur, Noida, Patna, Pune and Raipur.

Page 38
 Company’s depots are located at Daman, Dehradun, Faridabad, Goa, Paramo, Ranchi and

Sitapur.

In India, Bajaj Electricals has network of 600 distributors, 3000 authorized dealers, over

2,50,000 retail outlets and over 230 service franchises.

Company also operates 2.8 MW Wind Farm situated at Village Bankside in Maharashtra.

In 2003, Bajaj Electricals entered into a licensing and sourcing agreement with UK-based

home appliance company Morphy Richards. This agreement makes the Bajaj Electricals a global

supplier of select domestic home appliances.

Products

Appliances- Under this company manufactures products such as water heaters, mixers, micro-ovens,

room air coolers, irons, room heaters, gas stoves and electric kettles.

Company manufactures a wide range of electric fans.

Lighting- Under this company manufactures lamps, torches, tubes and wide range of luminaries.

Engineering and Projects- The company has been awarded with majors lighting projects from NTPC,

Reliance Infocom, Sports Authority of Andhra Pradesh, Tamil Nadu State Electricity Board / Power

Grid Corporation, Jaipur Vidyut Vitrand Nigam to name few.

In order to expand its product portfolio, the company has tie up with Nardi Elettrodomestici Spa of

Italy for Gas Appliances, Secretion of Switzerland for

Page 39
fire alarms and Security Products and Delta Controls of Canada for BMS andHVAC.

Awards and Recognition

Bajaj Electricals received Mera Brand‗ Awards for water heaters and fans atConsumer World

Awards held by FMCG Federation of India in 2008.

Company’s manufacturing unit have accredited with ISO 9001 / 9002 and ISO14001 certifications

for its quality management.

Morphy Richards Irons and Blenders print Ads are awarded with the SilverAbby held at Goa Fest

2008.

Bajaj Group (Parent Company)

Bajaj Group started its journey in 1931 by establishing sugar manufacturing factory. Today it has

grown to be major conglomerate that owns 25 companies and has a workforce of over 25000

employees. Besides Bajaj Electricals the group owns companies namely Mukand International, Bajaj

Auto, Mukand Engineers, Mukand, Mukand Global Finance, Bajaj Hindustan, Bahram Factories,

Maharashtra Scooters, Bajaj Consumer Care, Bajaj Auto Finance, Bajaj Auto Holdings, Bajaj Auto

Finance, Hercules Hoists, Bajaj Allianz General Insurance Company, Bombay Forgings and many

more.

New Development

Bajaj Electricals is implementing Oracle ERP-an IT platform for

financial, supply chain and various others business processes which will complete in coming future

Page 40
 Bajaj Electoral

Industry Electrical equipment

Founded 14 July 1938

Headquarters Mumbai, Maharashtra, India
Key people Shekhar Bajaj, Chairman &MD, Mr. Anant Bajaj
Executive Director
Products CFL Bulbs, Fans, Poles & Tubes
Revenue 2,770 crore (US$501.37 million) (2011)
Parent Bajaj Group
Subsidiaries Starlite Lighting
Website Official Website

Page 41
History

It was incorporated in July 14, 1938 as Radio Lamp Works Limited under the Indian Companies Act,

1913 as a public company limited. On October 1, 1960 it was renamed to Bajaj Electrical Limited. In

1964, company took overMatch well Electricals (India) Limited, a manufacturer of electric fans.

APPLIANCES

When it comes to small appliances, no other company in India offers as wide

Page 42
 and modern a range as Bajaj Electricals does. Bajaj Appliances is the market leader in small

appliances category offering a wide range of domestic appliances under the ‗brown goods‗ category.

The range includes Microwave Ovens, Room Coolers, Water Heaters, Room Heaters, Oven-Toaster-

Grillers, Toasters, Juicers & Mixer Grinders, Food Processors, Steam & Dry Irons and Water

Purifiers. All of these have found favor in the Indian kitchens and homes for decades. The trust

placed by the millions of consumers have fueled the company into introducing the premium range of

home appliances called

Bajaj Platini - designed as a fitting accessory to new age Indians global aspirations.

3. Bajaj Appliances are moving to a more aspirational, futuristic brand. In the near future, this brand

might be the only Indian small appliances brand to be available across internationally.

4. It’s no surprise that our consumers have voted us as the most trusted brand ensuring the Gold Award

in the Readers Digest Trusted Brand 2009 Survey India.

Choose one from our vast range.

Mixer Grinders Food Processor

Page 43
 JMGs and Juicers Hand Blenders

Electric Kettles Electric Tea Maker

Coffee Makers Induction Cookers

Page 44
 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

Chimneys

Nardi Hobs Pressure Cookers

Water Heaters Room Coolers

Page 45
 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

FANS

Bajaj Fans is the third largest player in India. Bajaj Fans offers attractive range of ceiling, table,

pedestal, wall mounted, exhaust and fresh air fans. The company has also recently launched air

circulators, heavy duty exhaust fans for industrial use, as well as pumps and motors for domestic use.

We also have a new range for Kids with Disney characters called ―BajajDisney Fans‖. These fans

have the Mickey and Friends series as well as the Little Mermaid series.

To choose the fan that meets your need, browse through our range below.

Ceiling Fan Disney Fan

Table Fan Wall Fan

Page 46
Background of the company:

The ' Bajaj ' group of India owes immense gratitude to their founding fathers whose vision and dedication over the

years has greatly helped to build a business house that can set standards in Indian Industry.

Jamaal Bajaj was the founding father of the Bajaj Group. The adopted ‗fifth‗ son of Mahatma Gandhi,

and the 'merchant prince' who held the wealth he created in trust for the people of his country. Trust - a

simple word that contains a whole philosophy handed down by Jamaal Bajaj to his successors. He valued

honesty overprofit, actions over words and common good over individual gain.

Kamalnayan Bajaj, elder son of Jamaal Bajaj, followed footsteps of his illustrious father and consolidated

the Bajaj foundation. With characteristic foresight and pragmatic vision, he launched a steady

diversification programmed which gave the current name "Bajaj" both its shape and size. His unique

management style created a work culture that matched well with the national spirit he had inherited.

Ramakrishna Bajaj, took over the reins of the "Bajaj group" in1972 after Kamalnayan Bajaj and

steered the Group from strengthto strength for over 22 years. He had also actively participated in the

freedom struggle of the country. In post independent India, he

Page 47
had led the youth movement. All along, he actively strengthened the foundations of business through ethics

and practices both withinthe group and amongst the business community as well.

Shekhar Bajaj, Chairman & Managing Director of Bajaj Electricals Ltd., started his career with Bajaj

Sevashram after which he worked at Bajaj International, the group's export company. Mr. Shekhar Bajaj

joined Bajaj Electricals in 1980, became the Managing Director in 1987 and took over as the Chairman

and Managing Director in 1994.

Mr. Bajaj is the Chairman of Bajaj Group companies Bajaj International and Hercules Hoist Pvt. Ltd. and

on the Board of Directors of Bajaj Auto and IDBI Bank. He was the President of ASSOCHAM, former

President of Indian Merchant Chambers(IMC) and Council for Fair Business Practices (CFBP)

Groups export company. Mr. Shekhar Bajaj joined Bajaj Electrical Ltd. In 1980, become the

Managing Director in 1987 and took over as Chairman & Managing Director in 1999

Page 48
 BRIEF HISTORY OF BAJAJ ELECTRICALS

Our Company was incorporated as Radio Lamp Works Limited under the Indian Companies Act,

1913 as a public company limited by shares, pursuant to a certificate of incorporation dated July 14, 1938.

Subsequently the name of our Company was changed to Bajaj Electricals Limited, pursuant to a fresh

certificate of incorporation dated October 1, 1960.

In 1964, Match well Electricals (India) Limited, ("Match well"), a manufacturer of electric fans

became a subsidiary of our Company and subsequently, with effect from July 1, 1984, the business and

undertaking of Match well was amalgamated withour Company.

In the financial year 1993-1994, our Company entered into a joint venture with Black & Decker

Corporation, United States, for the manufacture and marketing of power tools, household appliances, and

related accessories, through a separate company named Black & Decker Bajaj Private Limited, ("Black &

Decker Bajaj"). During the financial year 1999-2000 Black & Decker Bajaj became a 100% subsidiary of

our Company upon our Company acquiring a further 50% of the shareholding thereof from Black &

Decker Corporation, pursuant to which Black & Decker Bajaj was renamed as Bajaj Ventures Limited.

However, in the financial year 2002-2003, our Company divested 50% of its shareholding in Bajaj

Ventures Limited and Bajaj Ventures Limited ceased to be a subsidiary of our Company.

Page 49
 In January 1998, our Company established a new manufacturing unit at Chakan near Pune and

commenced operations of manufacturing of fans and die- cast components.

The production of fans at our manufacturing activities of the Match well unit also was gradually

shifted to our Chakan unit.

In September 1999, our Company established and commissioned a wind energy generation unit with

an installed capacity of 2.8 megawatts at Village Bankside, Tal. Patan, District Satara, Maharashtra. The

facility continues to run profitably till date.

In the year 2000-2001 our Company set-up our manufacturing facilities including a fabrication

unit and a galvanizing plant at Anangeon, near Pune for the manufacture of high masts, lattice towers, and

related products, and the said manufacturing facilities commenced commercial production with effect

from April 1,2001.

In November 2002, our Company entered into a technical collaboration and brand licensing

agreement with Morphy Richards, United Kingdom, for the sales and marketing of electrical

appliances under the brand name of Morphy Richards" in India.

In the financial year 2002-2003 our Company discontinued manufacturing die-cast components.

In the year 2005 our company entered into a Distribution agreement with Tri lux Lenze of Germany

for high end technical lighting.

In the year 2007, we acquired 32% of the share capital of Starlite Lighting Limited, a company

engaged in the manufacture of Compact Fluorescent Lamps("CFLs").

In 2012-2013, we have completely divested our stake and association withBlack & Decker

Corporation, USA.

Page 50
 OBJECTIVES OF THE STUDY
 To analyses the consumer satisfaction for Bajaj Electrical Appliance.

 To analyses the key factors which plays an important role in consumer buyingbehavior or decision making

 To study whether customers are satisfied with staff and services or not?

 Identifying possible areas of Improvement.

Chapter-4
Research Methodology Data Analysis
and Interpretation
Findings

Page 51
 RESEARCH METHODOLOGY
The research methodology is the way which systematically solves the research

problems. The main objective of the project was to know the market condition of

Bajaj Electricals.

For this, right at the beginning the research plan was prepared. This includes all the

detail of how to go about research work of Bajaj Electricals.

RESEARCH PLAN

Definition of research plan: -The research plan can be defined as follows: -1. What is

the Solar Equipment being used by various customer in the region of Gorakhpur and

what are their expectation from the Bajaj Electricals What is the market condition of

Solar Equipment in Whole North India?

DATA COLLECTION

The descriptive nature of research necessitates collection of primary data

from site managers/builders throughmarket survey

technique which were conducted throughstructured questionnaire.

The questions were asked in pre-arranged manner. The market research was

conducted over a period of 30-35 days. Data was tabulated,

analyzed andsuggestions were given.

Page 52
 RESEARCH INSTRUMENTS

The Research instrument chosen for conducting the survey was structured

questionnaire, which was prepared as shown earlier. The questionnaire designed

and a pilot survey was made with the questionnaire and then changes were made

accordingly with the questionnaire.

SAMPLE PLAN

 A sampling technique was chosen for the study wasRandom Sampling Technique.

 This is the most common method of selecting thesample.

 This is because the building sites are l o c a l i z e d in differentarea of

Gorakhpur.

 A group of organizations and customers are chosen

are random from group. It gives all builders in a group and equal chance of being

selected for the purpose of the survey.

SAMPLE SIZE

50 r e s p o n d e n t s

Page 53
CONTACT METHOD

Personal interview is used for conducting the market survey. Pers Onal interview

was conducted with the structured questionnaire. P personal interview had the

benefit of one-to-one communication between the researcher andthe respondent.

If the respondent is having any doubt or queries in their mind, they can get

their doubts clarified from the researcher on the spot and so superior data were

collected from the survey.

ANALYSIS AND INFORMATION

Detailed information was collected for the project through the market survey to

know the Bajaj Electricals condition in the region of Gorakhpur. The

information was collected by visiting thesite present in Gorakhpur Region.

The interview of builders/site managers were taken in a friendly atmosphere so as

to encourage them to give right information,without any hesitation.

ANALYSIS

The analysis of the collected information was made in scientificmanner.

Page 54
 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

DATA ANALYSIS AND INTERPRETATION

What is your Age Group?

AGE NO. OF RESPONDENT SHARE %

Below 15 years 5 5
15-20 year 15 15
20-25 year 32 32
25-30 year 28 28
Above 30 years 20 20
Total 100 100

INTERPRETATION

5% of the respondents are Below 15 years.

15 % of the Respondents are 15-20 year.

32% of the Respondents are 20-25year.28%of the Respondents are 25-30 year.

□20% of the Respondents are Above 30 years.

Page 55
 A Study of Consumer Behavior and Satisfaction
Regarding Bajaj Electrical Ltd.
What is your occupation?

OCCUPATION NO. OF RESPONDENT SHARE %

Business Man 19 19
Serviceman 45 45
Student 23 23
Housewife 13 13
Total 100 100

Serviceman

INTERPRETATION

19% of the Respondents are Business Man.

45 % of the Respondents are Serviceman.
 23% of the Respondents are Student. 13% of the Respondents are Housewife.


Page 78
 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.
Are you aware about the product of Bajaj Electrical Ltd.

RESPONSE NO. OF RESPONDENT SHARE %

Yes 87 87
No 13 13
Total 100 100

Yes No

13%

87%

INTERPRETATION

87 of Respondents are aware the Bajaj Electrical Ltd. but 13% of the Respondentsare
not Aware the Bajaj Electrical Ltd.

Page 79
 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

.4 Do you always purchase the products of Bajaj Electricals?

RESPONSE NO. OF RESPONDENT SHARE %

Yes 55 55
No 20 20
Rarely 15 15
Can’t Say 10 10
Total 100 100

Yes No
Rarely Can’t Say

10%

15%

55%
20%

INTERPRETATION
55% of the respondents agreed that they purchase the product of Bajaj Electrical Ltd,
20% of respondents are not purchase this product and 15% says rarely and 10% can’tsay.

Page 80
 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

Are you satisfying with the Bajaj Electrical Ltd. products Price?

SATISY NO. OF SHARE %

LEVEL RESPONDENT

Full satisfy 36 36
Satisfy 42 42
Can’t Say 10 10
Dissatisfy 12 12
Total 100 100

INTERPRETATION

36% of the Consumers are full Satisfy with the Bajaj Electrical Ltd. Price, 42 % of the consumers are Satisfy,
10% of the Consumers are Can’t Say and 12 % are Dissatisfyfor Bajaj Electrical Ltd. Price.

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 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.
Are you satisfying with quality and quantity of Bajaj Electrical Ltd. products.

SATISY NO. OF RESPONDENT SHARE %

LEVEL

Full satisfy 32 32
Satisfy 50 50
Can’t Say 12 12
Dissatisfy 6 6

INTERPRETATION

32% of the Consumers are satisfied with the quantity and quality for Bajaj ElectricalLtd., 50 % of the

consumers are Satisfy, 12% of the Consumers are Can’t Say and

6 % are dissatisfied with the Quantity and Quality of Bajaj Electrical Ltd.

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 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

Are you satisfying with the design & color of Bajaj Electrical Ltd. products?

SATISY NO. OF RESPONDENT SHARE %

LEVEL

Full satisfy 35 35
Satisfy 40 40
Can’t Say 16 16
Dissatisfy 9 9
Total 100 100

INTERPRETATION

35 % 0f the respondents are full Satisfy.

40 % 0f the respondents are Satisfy.

16% 0f the respondents are Can’t Say.

9% 0f the respondents are Dissatisfy.

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 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

Will you purchase Bajaj Electrical Ltd. products in future?

RESPONSE NO. OF RESPONDENT SHARE %

Yes 92 92
No 8 8
Total 100 100

Yes No

8%

92%

INTERPRETATION

92% of the respondents said that, they will purchase products of Bajaj ElectricalLtd. in future Next time but
8% of the respondents are not purchase in next time

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 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

While purchasing products which feature influence you?

RESPONSE NO. OF RESPONDENT SHARE %

Product Feature 40 40
Brand 20 20
Service 25 25
Durability 15 15
Total 100 100

Product feature Brand Service

Durability

15%

40%

25%

20%

INTERPRETATION:

On the basis of diagram 40% respondents says product feature, 20% says Brandfeature and 25% says

service feature and 15% says durability feature influence the

customer.

Page 85
 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

Which product you like most of Bajaj Electrical?

RESPONSE NO. OF RESPONDENT SHARE %

CFL 60 60
Fans 10 10
Cooler 15 15
Kitchen products 15 15
Total 100 100

15%

15%

60%
10%

CFL Fans CoolerKitchen Products

INTERPRETATION:

In the above graph we show that 60% respondents like CFL, 10% respondents like fans, 15% of

respondents like cooler and remaining 15% ofrespondent like kitchen products.

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 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

Are you aware about new products of Bajaj Electrical?

RESPONSE NO. OF RESPONDENT SHARE %

Yes 50 50
No 20 20
Can’t say 30 30
Total 100 100

20%

50%
30%

Yes, No Cant’ say

INTERPRETATION:

In the above graph we show that 50% respondents aware about new products, 30% respondents not

aware about new products and remaining 20% respondents can’t say about this.

Page 87
 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

Is Bajaj Electrical products easily available in the market?

RESPONSE NO. OF RESPONDENT SHARE %

Yes 70 70
No 20 20
Can’t say 10 10
Total 100 100

10%

20%

70%

Yes No Can’t say

INTERPRETATION:

In the above graph we show that 70% respondents says that this product easily available, 20%

respondents say that this product not available easily and remaining 10% respondents cannot say about

them.

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 A Study of Consumer Behavior and Satisfaction Regarding
Bajaj Electrical Ltd.

Q.13 Are you satisfy with Bajaj Electrical Service Centers?

RESPONSE NO. OF RESPONDENT SHARE %

Yes 60 60
No 30 30
Can’t say 10 10
Total 100 100

10%

30%
60%

Yes No Can’t say

INTERPRETATION:

In the above graph we show that 60% respondents satisfy with this product, 30% respondents not satisfy with
this product and remaining 10% respondents Can’t sayabout them.

Page 89
 FINDINGS


Minimum numbers of the respondents are below 15 year and maximumnumbers of the respondents

are 20–25 year.


Maximum numbers of the respondents are satisfied with the quantity and qualityof Bajaj Electrical Ltd.


Maximum numbers of the respondents are satisfying the Design and color butminimum numbers of

respondents are Dissatisfy of Bajaj Electrical Products.


Maximum number of the respondents likes CFL but Minimum number ofrespondents likes kitchen

products.


Form analysis we found out that most of the people are not aware the BajajElectrical new Products.


Lot of consumers are satisfied with the Bajaj Electrical Products and someonenot fully Satisfied.

 Features of the products is the main factor to attractive the customer of

purchase the product.

Page 90
 Chapter-5 CONCLUSION
SUGGESTION AND LIMITATIONLIMITATION

Page 91
 CONCLUSION

The study of consumer behavior remains a corner stone to successful marketing strategy. The discussion

centers on defining consumer behavior and describing different perspectives of consumer behavior that

include consumers influence perspective, Wholistic perspective and Intercultural perspectives.

Since the consumer behavior is the important factor to forecast the sale so any product on a Particular

area. So, company should keep close eye on the market situation. yet, customer was price sensitive, but

the changing market trend and customer view and preference shown that customer are now quality

sensitive. Theywant quality product, good services, easy availability of product and better performance by

the product. Consumer is a vital part of the marketing strategy of company because it can be directly

affected the profit criteria of the company. The consumer of Bajaj Electrical are satisfy with the product

quality and rates. Company should try to create brand image or position of new product in the mind of

consumer products feature is main factor which can be attract to the consumer orcustomer.

Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that the

consumers change the purchase of goods and services with the passage of time. Family life-cycle consists

of different stages such young singles, married couples, unmarried couples etc. which help marketers to

develop appropriateproducts for each stage.

Page 92
This present study concluded that, he consumer behavior have a great impact on the home appliance

products of the clusters. In a consumption environment, a person chooses a product or a brand, which

seems to possess a maximum possibility of the definition or elaboration of his life style identity.

Alternatively, a person makes a choice in a consumption environment in order to define or actualize his

life style, identify it through the products or brands chosen. It can be assumed that the individual's

consumption behavior can be predicted from an understanding of how he represents his world to himself, if

the details of his life style system are known.

Page 93
 SUGGESTIONS

 You can change the Design and to make good finishing and improve thepackaging of the product

and to make attractive of the customer

 Improve the condition of service center

 Customer can’t aware the Bajaj Electrical new Products so you can domore advertise and to aware

the product.

 Many customers purchase the product in next time when the productprice is not high or satisfied to

him.

 Improve the technology regarding the product.

 Introduce the innovative products in market comparative to the Chineseproducts.

Page 94
 LIMITATIONS

Every Study suffers from certain limitations and so does this project.

So, the applicability of the findings and recommendations is subjected to thefollowing mentioned

constraints/limitations

Respondents were reluctant to give their views on data or open to

other

Shortage of time duration for the research work
 Hiding of some true facts by the respondents due to the fear of the

management

Though care has been taken, judgement errors may have occurred


Consumer being very busy did not get enough time to give responses
whole-heartedly

Some of the responses given by the respondents were not legible and clear

Page 95
 BIBLIOGRAPHY
 "Bajaj Offices". [Link]. Retrieved 2011-01-28.

 Special Correspondent (2010-02-08). "Business News: Bajaj Electricals tostep up output in

Starlite". The Hindu. Retrieved 2011-01-28.

 "Business Line: Today's Paper / CORPORATE: Bajaj Electricals upbeaton egg, projects
business". [Link]. 2010-10-
18. Retrieved 2011-01-28.

 "BSE Plus". [Link]. Retrieved 2011-01-28.

 "Bajaj Electricals expresses interest in solar energy segment | Top News".[Link]. 2010-01-
24. Retrieved 2011-01-28.

 "Bajaj Electricals launches LPG-based generators". [Link].2011-01-11. Retrieved

2011-01-28.

 Gaurav Tikyani (2010-01-24). "Bajaj Electrical | India's CleantechEconomy".

[Link]. Retrieved 2011-01-28.

 "History of Bajaj Electricals". [Link]. Retrieved 2011-01-

Page 96