A Study on Customer Satisfaction towards KTM Bikes in Erode

18 8-28 © MANTECH PUBLICATIONS 2020. All Rights Reserved

Journal of Human Resource and Customer Relationship Management

Volume 4 Issue 1

A Study on Customer Satisfaction towards KTM Bikes in

Erode

K.V. Shanmugavadivu , G. Kalaimani

Assistant Professor/ Research Scholar,Assistant professor

Department of Business Adminstration

Kongu Arts and Science College (Autonomous), Sri Vasavi College Erode

Corresponding Author’s email id: [email protected]

DOI:- http://doi.org/10.5281/zenodo.3756626

Abstract

Customer satisfaction is defined as a measurement that determines how happy

customers are with a company's products, services, and capabilities. Customer

satisfaction information, including surveys and ratings, can help a company

determine how to best improve or changes its products and services. It is a

measure of how products and services supplied by a company meet or surpass

customer expectation. Consumer preference is defined as the subjective tastes

of individual consumers, measured by their satisfaction with those items after

they’ve purchased them. Customer satisfaction provides a leading indicator of

consumer purchase intentions and loyalty. Customer satisfaction data are

among the most frequently collected indicators of market perceptions.

Keywords:- Customer expectations, consumer preference, customer

satisfaction, customer loyalty and customer perception

INTRODUCTION

Consumer preference is defined as the

subjective tastes of individual consumers,

measured by their satisfaction with those

items after they’ve purchased them. This

satisfaction is often referred to as utility.

Consumer value can be determined by

how consumer utility compares between

different items.

Consumer preferences can be measured by

their satisfaction with a specific item,

compared to the opportunity cost of that

item since whenever you buy one item,

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Volume 4 Issue 1

you forfeit the opportunity to buy a

competing item.

WHY CONSUMER PREFERENCE IS

IMPORTANT?

Because consumer preference determines

what products people will buy within their

budget, understanding consumer

preference will give you an indication of

consumer demand. This information will

help to ensure that you have enough

products to meet demand and will help you

determine the price for your product.

Consumer Preference Examples

When it comes to consumer products,

change is always a constant. Before smart

phones arrived on the market, for example,

most people preferred small cell phones

that they could put in their pockets over

larger handsets.

A Growing Taste for Activity

As the American population ages, a

growing number of people are turning

towards products that are geared towards

activity and longevity, which represents a

$7.6 trillion opportunity for the right

products.

Younger Influencers

Years ago, a child's influence on a parent's

purchasing decisions was limited to toys

and children's wear. Today, however,

parents are asking their children for

opinions more than ever, including what

kind of car would best suit the family,

where to go to dinner and even what

clothing the parents should buy for

themselves. As a result, clothing retailers

are putting more emphasis on their

children's departments.

Preferences for Larger Selections

In addition to getting older, Americans are

also getting larger. In 2017, more than

one-third of adults and one-in-six children

were obese, a trend that is only expected to

increase. These consumers know that just

because they are larger, wider or thicker

than the average customer, it doesn't mean

they shouldn't have well-fitting clothes.

A Need for Speed

Regarding the online shopping experience,

one-week delivery times are now passé.

More consumers are developing a

preference for nearly instant gratification.

Supermarkets are now offering same-day

delivery, while Amazon is developing an

army of drones that will be able to deliver

online purchases just as quickly.

Preference Tests

Preference testing is useful when you want

to compare one product to another. The



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consumers are given two or more products

and asked which they prefer. Once their

preferences, or lack of preference, are

recorded, you can then analyze the results

to determine which product is preferred.

You cannot, however, determine how

much each product was liked using this

method.

Acceptance Tests

Acceptance testing can determine how

much a product is liked. Instead of stating

which product is preferred compared to

others, the consumers are asked to give a

score to each product based on their like or

dislike for it. This test is also called

hedonic ranking. Usually, the scoring

system is based on a nine-point scale,

ranging from extreme like to extreme

dislike, with neither dislike or like in the

middle.

Ranking Tests

A third way of determining consumer

preferences is to use a ranking test.

Ranking tests are usually best for

comparing consumer preference between

three or more products, which the panel

ranks according to their preference. A

ranking test does not reveal how much

more consumers like one product over

another.

Difference Tests

As its name suggests, difference testing

measures how well consumers can tell the

difference between two products. For

example, if your company has developed a

new soda, you could ask consumers to

compare it to a previous version you sold,

as well as to similar competitors’ sodas,

for aspects like sweetness. While this test

itself doesn’t reveal preferences, it can

provide insight into products when used

with any of the other tests.

STATEMENT OF THE PROBLEM

Two wheelers play a vital role in human

life. The best mode of transport for middle

class family is a two wheeler and is a need

for everyone in the family. As people want

to increase their standard of living, the

production and usage of two wheelers

have also substantially increased. The

customer’s preference for two wheeler is

based on his taste and priorities. In a

market oriented economy the consumer

expect the right type and the right quality

of goods at the right time and at the right

price.

This study is to find out the factors which

influence the customers to buy the KTM

bike and also to find out the improvements

that can be made in the KTM bike in order

to attract the customers.



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OBJECTIVES OF THE STUDY

To study the socio - economic

characteristics of the respondents.

To identify the factors that influences

the respondents to purchase KTM

bikes.

To measure the level of satisfaction

towards KTM bikes.

To find out the problems faced by the

respondents towards KTM bikes.

SCOPE OF THE STUDY:

This study highlights the preference of

the customers towards the KTM bikes.

The scope of the study was extended

only to the respondents of erode.

It does not cover all the consumer

using KTM vehicles.

The result of the study are use full to

assess customers response and let us

know what exactly customers are

looking for when they buy a two-

wheeler.

It gives the idea of the sectors need to

improve, to stabilize the market and to

provide customer relationship.

It helps in getting feedback about the

product quality. The project helps to

put in to practice the theoretical

aspects of the study into reality.

RESEARCH METHODOLOGY

Research is an out of scientific

investigation and research methodology is

a way to systematically solve the research

problem. Hence the methodologies for

each research problem need to be designed

by the researcher through a research.

RESEARCH DESIGN

It is a conceptual structure within which

research should be conducted. Thus the

preparation of such a design facilities

research to be as efficient as possible and

will yield max information

.

DESCRIPTIVE RESEARCH DESIGN

Descriptive research design includes

surveys and fact findings, enquires of

different kinds. The major purpose of

Descriptive research is description of state

of affairs, as it exists at present.

The main characteristic of this method is

that the researcher has no control over the

variable he can only report what had

happened or what is happening.



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Nature of Data

The data can be collected in the form of

primary and secondary data.

Primary Data

The primary data which are collected

freshly for the first time and they are

collected through questionnaire.

Secondary Data

The secondary data which have been

already collected by someone else. The

data was collected from the files of the

company, document, records, magazines

and books.

Sampling

The sampling means a definite plan for

obtaining a sample from given population.

Sample Size

The sample size for the survey is 100

questionnaires taken from the customers.

Sample Design

Convenient sampling method was used in

this research.

Tabulation and Analysis

With the help of filled questionnaire a

master table is prepared with all the data of

the respondents, then it is converted into

necessary tables based on different factors

of Titan Watches. The finding, suggestion

and conclusion are based on analysis and

suggestions given by the respondents.

Tools for Analysis

For this research the following tools

were used;

1. Simple percentage analysis

2. Rank method – Weighted average

method

3. Chi-square test

Simple Percentage

The data gathered for the study is also

presented in terms of percentages. The

percentages are calculated to the total of

the subject. The processed data was

analysed and interpreted in the chapter

‘Analysis and interpretation’.

Rank method – Weighted average method

Under this method of comparative the

respondents are asked to rank their

choices. This method is easier and faster

than the method of paired comparisons.

Weighted average = ∑Wo/∑w

Chi-square (x2) Test

Chi-square analysis has been used to test

the hypothesis regarding consumer

satisfactions in preferring particular

courier service. Chi-square, a non-



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parametric test, is symbolically written as

x2

x

2 = ∑(O-E)

2/E

Degree of freedom = (R-1) (C-1) Where,

O - Observed Frequencies

E - Expected Frequencies

R - Number of rows

C - Number of columns

REVIEW OF LITERATURE

A.PriyankaDr.B. PonnuthaiA Study on

Customers Perception Towards The

Usage of KTM Bikes

India is emerging as one of the fastest

developing nation in the world with the

economic liberalization in full swing;

automobile plays an important role in the

development of it. Marketing mainly

focuses on the customers. The marketing

philosophy of business assumes that an

organization can best serve, prosper and

attain profit by identifying and satisfying

the needs of its customers.

KTM and Bajaj: An Austrian-Indian

Partnership in the Motorcycle Industry

Austria-based motorcycle manufacturer

KTM has managed to become the number

one European seller of motorcycles. To

achieve this goal, the company has chosen

to engage in a joint venture with Indian

motorcycle manufacturer Bajaj Auto

Limited (BAL). The present case study

provides an overview of KTM’s

internationalization path and highlights the

main motives, objectives and outcomes of

the Austrian-Indian partnership. The case

study outlines the internationalization of

KTM in the context of an overview of

India’s economy, the Indian motorcycle

industry and India’s key players in the

industry.

Two-Wheeler Consumer Behavior

towards Perceived Quality

This original exploratory research study

was to examine the impact of Select

independent and demographic variables on

Perceived Quality. The data was analyzed

with descriptive statistics and non-

parametric tests, and found no impact of

independent variables and demographic

variables on Perceived Quality, further

given various research and managerial

implications.

COMPANY PROFILE

KTM AG (the former KTM Sport

motorcycle AG) is an Austrian motorcycle

and sports car manufacturer owned by

KTM Industries AG and Indian

manufacturer Bajaj Auto. It was formed in

1992 but traces its foundation to as early

as 1934. Today, KTM AG is the parent

company of the KTM Group.



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KTM is known for its off-road

motorcycles (enduro, motocross and

supermoto). Since the late 1990s, it has

expanded into street motorcycle

production and developing sports cars –

namely the X-Bow. In 2015, KTM sold

almost as many street as off-road bikes.

Production of the KTM X-Bow started in

2007.

Since 2012, KTM has been the largest

motorcycle manufacturer in Europe for

four consecutive years Globally, the

company is among the leading off-road

motorcycle manufacturers. In 2016, KTM

sold 203,423 motor vehicles worldwide.

CHI-SQUARE ANALYSIS

AGE AND LEVEL OF

SATISFACTION TOWARDS KTM

BIKES

Null hypothesis:

There is no significant relationship

between age and level of satisfaction

towards KTM bikes.

Alternative hypothesis:

There is significant relationship between

age and level of satisfaction towards KTM

bikes.

AGE AND LEVEL OF SATISFACTION TOWARDS KTM BIKES

CROSS TABULATION

Age

Level of satisfaction towards KTM bikes

Satisfied Highly

satisfied Dissatisfied

Highly

dissatisfied

Total

Below 20 1 8 2 1 12

21-30 12 32 4 1 49

31-40 8 17 8 3 36

Above 41 0 2 1 0 3

Total 21 59 15 5 100

CHI SQUARE TEST

Factor Calculated

value Table value

Degree of

freedom

Level of

significance

Age 8.73 16.92 9 5%



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RESULT

It could be observed from the above table

that the calculated value is less than the

table value. Hence, the null hypothesis is

accepted and it is concluded that there is

no significant relationship between age

and level of satisfaction towards KTM

bikes.

EDUCATION AND LEVEL OF

SATISFACTION TOWARDS KTM

BIKES

Null hypothesis:

There is no significant relationship

between education and level of satisfaction

towards KTM bikes.

Alternative hypothesis:

There is significant relationship between

education and level of satisfaction towards

KTM bikes.

RESULT

It could be observed from the above table

that the calculated value is less than the

table value. Hence, the null hypothesis is

accepted and it is concluded that there is

no significant relationship between

education and level of satisfaction towards

KTM bikes.

EDUCATION AND LEVEL OF SATISFACTION TOWARDS KTM BIKES

CROSS TABULATION

Education

Level of satisfaction towards KTM bikes

Satisfied Highly

satisfied Dissatisfied

Highly

dissatisfied

Total

School level 8 11 5 1 25

College level 6 24 4 3 37

No formal

education 2 12 3 1 18

Others 5 12 3 0 20

Total 21 59 15 5 100



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SUMMARY OF FINDINGS,

SUGGESTIONS & CONCLUSION

FINDINGS

PERCENTAGE ANALYSIS

Majority (98%) of the respondents are

male.

Majority (49%) of the respondents

belong to the age group of 21-30.


college level students.


unmarried.


students.


earning rs.20000-rs.30000.


getting awareness about the KTM

bikes through their friends.


owned KTM duke 200.


satisfied with the advertisement.


selecting KTM for brand image.


purchased the KTM vehicles before 2-

4 years.

Majority (64%) of the respondents will

recommend KTM vehicles to others.


purchased new vehicle.


paid through cash.


traveled 21-40km as average distance

per day.


highly satisfied with the price.


satisfied with the brand.


highly satisfied with the performance.


satisfied with the mileage.


satisfied with the spare parts

availability.


satisfied with the service.


highly satisfied with the speed.


satisfied with the resale value.


purchased orange colour bike.


highly satisfied with the maintenance

charge.


selecting authorized mechanics for

delivery in time.



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Majority (61%) of the respondents

would not intend to buy another

vehicle.


highly satisfied towards using KTM

bike.

From the analysis it is stated that

majority of the respondents are

preferred KTM for its brand which

ranked as first.

From the analysis it is stated that

majority of the respondents are ranked

long travel as first problem.

CHI-SQUARE TEST

o It could be observed from the

above table that the calculated value is less

than the table value. Hence, the null

hypothesis is accepted and it is concluded

that there is no significant relationship

between age and level of satisfaction

towards KTM bikes.

It could be observed from the above

table that the calculated value is less

than the table value. Hence, the null

hypothesis is accepted and it is

concluded that there is no significant

relationship between education and

level of satisfaction towards KTM

bikes.

SUGGESTION

From this study, suggesting that to

provide more mileage.

From this study, suggesting that to

have much more service to the

customers.

Through this study, customers are

interested in KTM suggesting to

improve the spare parts availability.

From this study, suggesting to improve

the overall performance.

From this study, customers are

satisfied and suggesting to improve to

the next level.

CONCLUSION

This study is based on the customer

response for KTM. Finding and suggestion

has been found through data collected with

customers by preparing structured

questionnaire, the questions contains in the

questionnaire is based on the observation

done in the organization. I hope this study

will help the organization in general to

improve the customer response in the

company for longer period. I conclude this

report as been prepared completely based

on my own knowledge.



Volume 4 Issue 1

BIBLIOGRAPHY

REFERENCES FROM BOOKS

I. Kothari, C.R, Research

Methodology- Methods and

techniques, Second Revised

Edition New Age

International (P) Ltd., New Delhi.

II. Kotler Philip, Marketing

Management, 15th Edition, PHI

pvt ltd, New Delhi.

III. Prasad, V, Consumer Behaviour,

Gyan Publishing House, New

Delhi.

Web sites:

www.consumer satisfaction.com

www.ktmbikes.com

Cite this Article as

K.V.Shanmugavadivu , G.Kalaimani

(2020) “A Study on Customer

Satisfaction towards KTM Bikes In

Erode” Journal of Human Resource and

Customer Relationship Management, 4

(1) 18-28

http://doi.org/10.5281/zenodo.3756626

A Study on Customer Satisfaction towards KTM Bikes in Erode

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