Government Of Karnataka

Department of Collegiate Education

SHAH SOGMAL PEERAJI OSWAL

GOVT FIRST GRADE COLLEGE
MUDDEBIHAL -586212

PROJECT REPORT ON

" CUSTOMER SATISFACTION REGARDING AFTER

SALES SERVICE OF VESPA SCOOTERS AT RETRO
MOTORS MUDDEBIHAL "

BACHELOR OF COMMERCE
Academic Year 2023-24

SUBMITTED BY

BHIMANAGOUDA VANDALI
B.COM VITH SEMESTER (NEP)
REG NO : U15NS21C0079

UNDER THE GUIDANCE OF

INTERNAL GUIDE EXTERNAL GUIDE

Prof.S.B.BELLIHAL Chetan Satihalar
Faculty H.R Manager
Govt First Grade College Retro Motors
Muddebihal -586212 Muddebihal -586212
 Government of Karnataka
Department of Collegiate Education
SHAH SOGMAL PEERAJI OSWAL
GOVT FIRST GRADE COLLEGE MUDDEBIHAL
DIST: VIJAYAPUR, KARNATAKA - 586212
Email: sspogfgc.muddebihal@gmail Website: https://gfgc.kar.nic/muddebihal
Ref. No :SSPOGFGCM/B.COM/PROJECT:2023-24 DATE: /0 /2024

CERTIFICATE
This is to certify that, Mr. BHIMANAGOUDA VANDALI has
completed a project "CUSTOMER SATISFACTION REGARDING AFTER
SALESSERVICE OF VESPA SCOOTERS AT RETRO MOTORS
MUDDEBIHAL." as part his curriculum for Final Year B.COM, Under RANI
CHANNAMMA UNIVERSITY, BELAGAVI for the Academic Year 2023-24.

Reg No. U15NS21C0079

Internal Guide H.O.D Principal

Prof. S.B.BELLIHAL Prof. Deepa.M Prof ; Sikandar.H.Dhannur
. SSPO Govt First Grade SSPO Govt First Grade SSPO GOVT first Grade
College Muddebihal College Muddebhihal College Muddebihal
 RETRO MOTORS
Authorised Distributors and Dealers for Vespa India
Opp: Police Station, Muddebihal, Dist: Vijayapur, Karnataka 586212
Ph: 9980449000, Email: [email protected]

Ref No: Date:

CERTIFICATE

This is to certify that Mr. BHIMANAGOUDA VANDALI of B.COM

final year student Govt. First Grade college Muddebihal has successfully carried
out the project work entitled "CUSTOMER SATISFACTION REGARDING
AFTER SALES SERVICE OF VESPA SCOOTERS AT
RETRO MOTORS MUDDEBIHAL." At our esteemed Organization, under the
guidance, during the period from 01/07/2024 to 30/07/2024.

He has completed the project work, which is impressive and useful.

Chetan Satihalar, H.R

Disrtibutors & Dealers
Retro Motors.
Muddebihal - 586212

Vespa India
Marketing & Sales Office: Piaggio Vehicle Pvt Ltd. Sky One Corporate Park, Survey no. 239/02, Airport
road, Viman Nagar, Pune 411032, Maharastra India.
 ACKNOWLEDGEMENT

It gives me immense pleasure to present this report on " CUSTOMER

SATISFACTION REGARDING AFTER SALES SERVICE OF VESPA
SCOOTERS AT RETRO MOTORS MUDDEBIHAL.".

First of all, I wish to express my Profoundness, Gratitude to Mr. Chetan Satihalar,

HR, Distributors & Dealers, Vespa India in Muddebihal for providing me an
opportunity to undertake this project at "Retro Motors, Muddebihal".

I wish to avail myself of this opportunity to express our deep sense of gratitude to our
principal Prof. Sikandar Dhannur and Head of Department of B.COM Mrs Deepa.M.

My special thanks to Prof. Mr. S.B.BELLIHAL . (Internal Guide) for his valuable
guidance in carrying out this project.

I am also thankful to the Staff of Retro Motors, Muddebihal for their valuable support.

I am thankful to all my Teachers and family members for all their physical and
emotional support rendered in completion of this project A Special Mention of thanks
to all my beloved classmates and friends, Mr. Moulanasab , Mr.Peerapasha and Mr.
Ninganagowda who have directly and indirectly helped me in this endeavor.
 DECLARATION

I, Mr. BHIMANAGOUDA VANDALI student of B.COM VIth semester (NEP),

Government First Grade College Muddebihal, thank my institution for giving me an
opportunity to undergo my project work.

I had been for my project work at Retro Motors, Muddebihal. I here by affirm that
customer satisfaction towards the firm which has been undertaken by me during the said
period as of my academic curriculum.

Place : MUDDEBIHAL

DATE:
 EXECUTIVE SUMMARY

An executive summary shows important point or highlights of the full report.

This report contains a study on Customer Preference and Satisfaction level Towards
Vespa India. It is having adequate information about the Customer preference towards
Vespa India and adequete study of customer satisfaction level towards Vespa India,
Retro Motors at Muddebihal City.

This report contains company profile of the Vespa India, it includes Industry
profile, Company History, Products & future growth of the Company. It also includes
area of operation and strategies and organization chart.

It also having Theoretical background and Literature review of the study, it

consist research methodology, scope and need of the study, statement of problem,
objective of the study and research tool used in the data collection.

This report mainly analysis the data, which are collected from the customers and
analysis and interpretation of the data. It included findings of the analysis and give
suggestions to improve the services.

The report reveals the opinions of the customers and their expectation towards
the Vespa India, Retro Motors at Muddebihal City and its opinion among the
customers.
 TABLE OF CONTENTS

SR.NO CONTENTS PAGE NO

01 01
INTRODUCTION

02 COMPANY PROFILE /INDUSTRY PROFILE 13

Industry Profile, Company Profile, Overview,

Company History, Production & Products, Sales &
Distribution, Vision & Mission, Milestones,
Research & Development etc

03 RESEARCH STUDY 28

Objectives of the Study, Scope of the study,

Research Methodology, Research Design, Methods
of Data Collection, Limitations of the
Study etc

04 DATA ANALYSIS & INTERPRETATION 34

05 FINDINGS & SUGGESTIONS 51

06 CONCLUSION 54

07 BIBLIOGRAPHY 56
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INTRODUCTION

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INTRODUCTION

Customer satisfaction is a term frequently used in marketing to evaluate

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

Expectancy Disconfirmation Theory is the most widely accepted

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

The Marketing Accountability Standards Board endorses the definitions,

purposes, and measures that appear in Marketing Metrics as part of its ongoing
Common Language in Marketing Project. In a survey of nearly 200 senior
marketing managers, 71 percent responded that they found a customer
satisfaction metric very useful in managing and monitoring their businesses.
Customer satisfaction is viewed as a key performance indicator within
business and is often part of a Balanced Scorecard. In a competitive marketplace
where businesses compete for customers, customer

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satisfaction is seen as a major differentiator and increasingly has become an

important element of business strategy.
PURPOSE

Customer satisfaction provides a leading indicator of consumer purchase

intentions and loyalty. The authors also wrote that "customer satisfaction data are
among the most frequently collected indicators of market perceptions. Their
principal use is twofold:"

1. "Within organizations, the collection, analysis and dissemination of these

data send a message about the importance of tending to customers and
ensuring that they have a positive experience with the company's goods
and services."
2. "Although sales or market share can indicate how well a firm is performing
currently, satisfaction is perhaps the best indicator of how likely it is that
the firm’s customers will make further purchases in the future. Much
research has focused on the relationship between customer satisfaction and
retention. Studies indicate that the ramifications of satisfaction are most
strongly realized at the extremes."

On a five-point

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scale, "individuals who rate their satisfaction level as '5' are likely to become
return customers and might even evangelize for the firm. A second important
metric related to satisfaction is willingness to recommend. This metric is defined
as "[t]he percentage of surveyed customers who indicate that they would
recommend a brand to friends." A previous study about customer satisfaction
stated that when a customer is satisfied with a product, he or she might
recommend it to friends, relatives and colleagues. This can be a powerful
marketing advantage. According to Faris et al., "[i]ndividuals who rate their
satisfaction level as '1,' by contrast, are unlikely to return. Further, they can hurt
the firm by making negative comments about it to prospective customers.
Willingness to recommend is a key metric relating to customer satisfaction."

THEORETICAL GROUND

In the research literature, the antecedents of customer satisfaction are

studied from different perspectives. These perspectives extend from the
psychological to the physical as well as from the normative perspective.
However, in much of the literature, research has been focused on two basic
constructs,

a) expectations prior to purchase or use of a product and

b) customer perception of the performance of that product after using it.

A customer's expectations about a product bear on how the customer thinks

the product will perform. Consumers are thought to have various "types" of
expectations when forming opinions about a product's anticipated performance.
Miller (1977) described four types of expectations: ideal, expected, minimum
tolerable, and desirable. Day (1977) underlined different

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types of expectations, including ones about costs, the nature of the product,
benefits, and social value.

It is considered that customers judge products on a limited set of norms and

attributes. Olshavsky and Miller (1972) and Olson and Dover (1976) designed
their researches as to manipulate actual product performance, and their aim was
to find out how perceived performance ratings were influenced by expectations.
These studies took out the discussions about explaining the differences between
expectations and perceived performance."

In some research studies, scholars have been able to establish that customer
satisfaction has a strong emotional, i.e., affective, component.[12] Still others show
that the cognitive and affective components of customersatisfaction reciprocally
influence each other over time to determine overall satisfaction.

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

"The Disconfirmation Model is based on the comparison of customers’

[expectations] and their [perceived performance] ratings. Specifically, an
individual’s expectations are confirmed when a product performs as expected. It
is negatively confirmed when a product performs more poorly than expected. The
disconfirmation is positive when a product performs over the expectations
(Churchill & Suprenant 1982). There are four constructs to describe the
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traditional disconfirmation paradigm mentioned as expectations, performance,

disconfirmation and satisfaction."

"Satisfaction is considered as an outcome of purchase and use, resulting

from the buyers’ comparison of expected rewards and incurred costs of the
purchase in relation to the anticipated consequences. In operation, satisfaction is
somehow similar to attitude as it can be evaluated as the sum of satisfactions with
some features of a product."

"In the literature, cognitive and affective models of satisfaction are also
developed and considered as alternatives (Pfaff, 1977). Churchill and Suprenant
in 1982, evaluated various studies in the literature and formed an overview of
Disconfirmation process in the following figure:"

Construction[

Organizations need to retain existing customers while targeting non-

customers. Measuring customer satisfaction provides an indication of how
successful the organization is at providing products and/or services to the
marketplace.

"Customer satisfaction is measured at the individual level, but it is almost

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

As research on consumption experiences grows, evidence suggests that

consumers purchase goods and services for a combination of two types of
benefits: hedonic and utilitarian. Hedonic benefits are associated with the sensory
and experiential attributes of the product. Utilitarian benefits of a

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product are associated with the more instrumental and functional attributes ofthe
product (Batra and Athola 1990).

Customer satisfaction is an ambiguous and abstract concept and the actual

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

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between

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

The usual measures of customer satisfaction involve a survey usinga

Likert scale. The customer is asked to evaluate each statement in terms of their
perceptions and expectations of performance of the organization being measured.

Good quality measures need to have high satisfaction loading, good

reliability, and low error variances. In an empirical study comparing commonly
used satisfaction measures it was found that two multi-item semantic differential
scales performed best across both hedonic and utilitarian service

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consumption contexts. A study by Wirtz & Lee (2003), found that a six-item 7-
point semantic differential scale (for example, Oliver and Swan 1983), which is
a six-item 7-point bipolar scale, consistently performed best across both hedonic
and utilitarian services. It loaded most highly on satisfaction, had the highest item
reliability, and had by far the lowest error variance across both studies. In the
study, the six items asked respondents’ evaluation of their most recentexperience
with ATM services and ice cream restaurant, along seven points within these
six items: “pleased me to displeased me”, “contented with to disgusted
with”, “very satisfied with to very dissatisfied with”, “did a good job for me to did
a poor job for me”, “wise choice to poor choice” and “happy with to unhappy
with”.

A semantic differential (4 items) scale (e.g., Eroglu and Machleit1990),

which is a four-item 7-point bipolar scale, was the second best performing
measure, which was again consistent across both contexts. In the study,
respondents were asked to evaluate their experience with both products, along
seven points within these four items: “satisfied to dissatisfied”, “favorable to
unfavorable”, “pleasant to unpleasant” and “I like it very much to I didn’t
like it at all”. The third best scale was single-item percentage measure, a one-item
7-point bipolar scale (e.g., Westbrook 1980). Again, the respondents were asked
to evaluate their experience on both ATM services and ice cream restaurants,
along seven points within “delighted to terrible”.

Finally, all measures captured both affective and cognitive aspects of

satisfaction, independent of their scale anchors. Affective measures capture a
consumer’s attitude (liking/disliking) towards a product, which can result from
any product information or experience. On the other hand, cognitive element is
defined as an appraisal or conclusion on how the product’s performance
compared against expectations (or exceeded or fell short of expectations), was

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useful (or not useful), fit the situation (or did not fit), exceeded the requirements
of the situation (or did not exceed).

Recent research shows that in most commercial applications, such as firms

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

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Methodologies

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

customer satisfaction. Academic research has shown that the national ACSI score
is a strong predictor of Gross Domestic Product (GDP) growth, and an even
stronger predictor of Personal Consumption Expenditure (PCE) growth. On
the microeconomic level, academic studies have shown that ACSI data is related
to a firm's financial performance in terms of return on investment (ROI), sales,
long-term firm value (Tobin's q), cash flow, cash flow volatility, human capital
performance, portfolio returns, debt financing, risk, and consumer spending.
Increasing ACSI scores have been shown to predict loyalty, word-of-mouth
recommendations, and purchase behavior. The ACSI measures customer
satisfaction annually for more than 200 companies in 43 industries and 10
economic sectors. In addition to quarterly reports, the ACSI methodology can be
applied to private sector companies and government agencies in order to improve
loyalty and purchase intent.

The Kano model is a theory of product development and customer

satisfaction developed in the 1980s by Professor Noriaki Kano that classifies
customer preferences into five categories: Attractive, One-Dimensional, Must-
Be, Indifferent, Reverse. The Kano model offers some insight into the product
attributes which are perceived to be important to customers.

SERVQUAL or RATER is a service-quality framework that has been

incorporated into customer-satisfaction surveys (e.g., the revised Norwegian
Customer Satisfaction Barometer) to indicate the gap between customer
expectations and experience.

J.D. Power and Associates provides another measure of customer

satisfaction, known for its top-box approach and automotive industry rankings.

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J.D. Power and Associates' marketing research consists primarily of consumer

surveys and is publicly known for the value of its product awards.

Other research and consulting firms have customer satisfaction solutions

as well. These include A.T. Kearney's Customer Satisfaction Auditprocess,
which incorporates the Stages of Excellence framework and which helps define
a company’s status against eight critically identified dimensions.

The Net Promoter Score (NPS) is also used to measure customer

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

For B2B customer satisfaction surveys, where there is a small customer

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

In the European Union member states, many methods for measuringimpact

and satisfaction of e-government services are in use, which the
eGovMoNet project sought to compare and harmonize.

These customer satisfaction methodologies have not been independently

audited by the Marketing Accountability Standards Board according to MMAP
(Marketing Metric Audit Protocol).

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There are many operational strategies for improving customer satisfaction

but at the most fundamental level you need to understand customer expectations.

Recently there has been a growing interest in predicting customer

satisfaction using big data and machine learning methods (with behavioral and
demographic features as predictors) to take targeted preventive actions aimed at
avoiding churn, complaints and dissatisfaction.
Prevalence

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

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COMPANY / INDUSTRY
PROFILE

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COMPANY/INDUSTRY PROFILE

INDUSTRY PROFILE

Two-Wheeler industry is one of the largest industries in the automobile

sector of global market. Being the leader in product and process technologies in
the manufacturing sector, it has been recognized as one of the drivers of economic
growth. During the last decade, well directed efforts have been made to provide
a new look to the automobile policy for realizing the sector's full potential for the
economy. The liberalization policies have led to continuous increase in
competition which has ultimately resulted in modernization in line with the global
standards as well as in substantial cut in prices. Aggressive marketing by the auto
finance companies have also played a significant role in boosting automobile
demand, especially from the population in the middle income group.

India is the second largest manufacturer and producer of two-wheelers in

the world. It stands next only to Japan and China in terms of the number of two-
wheelers produced and the domestic sales respectively. This distinction was
achieved due to variety of reasons like restrictive policy followed by the
Government of India towards the passenger car industry, rising demand for
personal transport, inefficiency in the public transportation system etc.

The Indian two-wheeler industry made a small beginning in the early 50s
when Automobile Products of India (API) started manufacturing scooters in the
country. Until 1958, API and Enfield were the sole producers.

In 1948, Bajaj Auto began trading in imported Vespa scooters and three-
wheelers. Finally, in 1960, it set up a shop to manufacture them in technical
collaboration with Piaggio of Italy. The agreement expired in 1971.

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In the initial stages, the scooter segment was dominated by API; it was later
overtaken by Bajaj Auto. Although various government and private enterprises
entered the fray for scooters, the only new player that has lasted till today is LML.

Under the regulated regime, foreign companies were not allowed to operate
in India. It was a complete seller market with the waiting period for getting a
scooter from Bajaj Auto being as high as 12 years.

However, the major set of reforms was launched in the year 1991 in
response to the major macroeconomic crisis faced by the economy. The industrial
policies shifted from a regime of regulation and tight control to a more liberalized
and competitive era. Two major results of policy changes during these years in
two--‐wheeler industry were that the, weaker players died out giving way to the
new entrants and superior products and a sizeable increase in number of brands
entered the market that compelled the firms to compete on the basis of product
attributes.

Finally, the two-wheeler industry in the country has been able to witness
a proliferation of brands with introduction of new technology as well as increase
in number of players. However, with various policy measures undertaken in order
to increase the competition, though the degree of concentration has been lessened
over time, deregulation of the industry has not really resulted in higher level of
competition.

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COMPANY PROFILE

Founded in 1884,Piaggio & C. s.p.a is today one of the leading

manufacturers of 2-wheeler and small commercial vehicles in the world. With
its registered office in Pontedera (Pisa), Piaggio is the market leader in Europe
and has expanded its operations to 24 countries, including a major presence in
Asian Markets.

The product range includes Scooters, mopeds and motorcycles starting

from 50 to 1200cc under the piaggio, Vespa, Gileria, Aprilia, Moto Guzzi, Derbi
and Scarabeo brands.The 3 and 4 wheeled light transportation vehicles are
marketed under the Ape, Porter and Quargo brands.

Piaggio Vehicles Private Limited (PVPL), the pioneer of 3-wheeler goods

transportation in India, is today the no. 1 in its class. By setting global standards
in vehicle performance and customer service, it has revolutionized the 3 wheeler
cargo segment in India. Today the company offers a range of passenger and cargo
vehicles for many customized applications.

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Piaggio vehicles are engineered for higher fuel efficiency, rugged

performance and outstanding load carrying capability. Living up to Piaggio’s core
philosophy, all its vehicles conform to the most stringent emission norms.

PVPL has now firmly established its position as an undisputed leader in

the diesel 3w market. This impressive growth trajectory would not be possible
without PVPL’s advanced R&D center, modern manufacturing unit and stellar
network. In the past 10 years, over 1.5 million Indian transporters have trusted
apé for total dependability, reliability and profitability.

Today, lakhs of tonnes of cargo and millions of passengers are transported

daily across the country on the apé. Piaggio India has successfully introduced
state-of-the-art products with world class technology in India. Its reputation is
built on its efficient network spread across India, providing world class customer
care.

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VISION

 To be the no.1 and the most profitable global player with world class
quality and technology leadership in the light commercial vehicle category
offering transportation solutions for specific customer needs.

 To be perceived as a unique, high-impact, fast response, innovative and

growth oriented company which is known around the world for its
unmatched level of excellence.

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MISSION

To become market leader in the light transportation vehicle segment, and

achieve the status of world-class company which manufactures & markets a wide
range of high quality product to the total satisfaction of customer in the domestic
and overseas market by ensuring:

 Low cost of manufacture

 High profiable growth

 Sustainable domestic & global competition

 Maximised stake holder’s satisfaction and pride

 Business Ethics

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CORPORATE SOCIAL RESPONSIBILITY

In order to improve and facilitate public hygiene, PVPL has donated apé
3-wheeler Special Purpose Vehicles for Garbage Collection & Transportation.
With a view to encourage greater participation from students as well as
institutions, some of our initiatives in this realm are:

 PVPL sponsored the National Level Science Exhibition, organized by

Vidya Pratisthan, Vidya Nagari, MIDC, Baramati, attracted illustrious

visitors such as the then Hon. President of India, Mr. APJ Abdul Kalam.

 PVPL has sponsored the ‘Interschool Science Quiz Competition’, anevent

organized by Vidya Pratisthan’s D. Ed College (English & Marathi

medium), MIDC, Baramati.

 PVPL has donated Personal Computers to schools at Baramati.

 As a move to promote disciplined driving, PVPL has sponsored one of

the Traffic Signals at Baramati.

 PVPL has also sponsored the Baton Rally at Baramati for Commonwealth

Youth Games.

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PRODUCT PROFILE - VESPA

PVPL is proud to launch the iconic Vespa in India. Vespa is a unique

example of immortal design that has gone beyond a mere commuting product to
become a part of social history andway of life.

The Vespa is an ageless brand that is now a symbol of a distinctive lifestyle

in market after market around the world. Invented by Piaggio in 1946 as the
world's first scooter, the Vespa rose rapidly in popularity to become a loved and
revered emblem of 'made in Italy' and 'a new, unique way of enjoying mobility'.
The Vespa is present in more than 100 countries with over 17 million units being
sold since its inception.

With its Indian foray, Piaggio intends to create an exclusive, premium

segment for the brand. The Vespa will be positioned as a lifestyle, iconic, timeless
and ageless product that goes beyond mobility and leverages its heritage and
unique values. Vespa in India will meet the aspirational needs of the fashion,
style and brand conscious individuals who would like to be a breed apart.
Predominantly aimed all over the world at a premium segment of consumers who
are looking to own nothing but the best.

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The Vespa production plant opened today is the third factory set up by
the Piaggio Group in Baramati, a city in the Pune district of the State of
Maharashtra. The area is home to the manufacturing complex of Piaggio Vehicles
Private Ltd., a wholly owned Piaggio Group subsidiary which already produces
three-wheel goods and passenger vehicles (and is the market leader in India, with
annul sales of more than 220,000 vehicles) and, in an adjoining facility, scooter
engines for the Vespa and diesel and turbo diesel engines for the commercial
vehicle ranges produced by Piaggio in India and in Italy, in Pontedera. With the
opening of the Vespa production plant, the Piaggio Group industrial complex in
Baramati now provides jobs for approximately 3,000 workers.

The new Vespa factory is located on an area of more than 150,000 square
metres, including a covered surface area of 32,000 square metres. It handles the
full Vespa machining cycle, from welding of the monocoques to varnishing and
final assembly. The initial production capacity of the plant, which was built in
just 14 months, is 150,000 scooters/year; capacity will be raised to 300,000 during
2013 as part of the Piaggio group industrial and commercial program.

Marketing of the Vespa, at 66,600 Indian rupees (equivalent to

approximately 1,000 euro/1,260 USD at the current exchange rates), is currently
beginning in India’s 35 largest cities, through a distribution network already
comprising 50 exclusive dealers, on the basis of a coordinated image system
dedicated entirely to the Vespa brand.

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PRODUCT SPECIFICATION

What it costs:

 Ex-showroom - Rs 66,000 (Maharashtra)

Engine :

 Fuel – Petrol
 Installation - Inclined from vertical
 Type - 125cc Single-cylinder, 3- valve air-cooled, four- stroke
 Compression ratio - 10:1
 Power - 10.06bhp at 7500rpm
 Torque - 1.08kgm at 6000rpm
 Power to weight - 88.2bhp per tonne
 Transmission Type - CVT

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Dimensions :

 Length - 1770mm
 Width - 690mm
 Height - 1140mm
 Wheel base - 1290mm

Chassis & Body :

 Weight - 114kg
 Wheels - 3-spoke alloy
 Tyres - 90x100x10 inches (Front and rear)

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MODELS

LX125

The Vespa LX 125 is a scooter currently made by Piaggio. The LX 125

uses the same frame as the LX 50 but features a 125 cc engine capable of a listed
maximum speed of 59 mph (95 km/h). The LX 125, like all modern Vespa
scooters features a 4-stroke single overhead camshaft and steel frame

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construction. Vespa claims 70–75 mpg - US (3.4–3.1 L/100 km; 84–90 mpg-)
fuel efficiency.

The LX models feature an automatic torque slave transmission and front

disc and rear drum brakes.

VX125

The Vespa VX 125 is the second premium scooter from Piaggio.

Cosmetically and mechanically, the scooter is similar to the LX 125 but there
are few improvements; most important of them is the 200mm front disc brake
setup. The Vespa VX 125 features the MRF Zapper tubeless tyres and the
instrument cluster has been updated to give a fresh look.

The Vespa VX is powered by the same 125cc single-cylinder air cooled

engine which powers its lower version. The engine develops 10.06bhp of power
at 7500 rpm which is transmitted to the rear wheel via a CVT transmission.

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SWOT ANALYSIS

Strength:

 Brand itself speaks

 Pick up
 World wide market
 Potential Parent Brand

Weakness:

 Price
 Reluctant to change
 No scope for semi urban places
 Lack of celebrity marketing
 Limited Models

Opportunities:

 Introducing more models

 Expansion Of territory in semi urban areas

Threats:

 Compeitators
 Political Factors
 Licensing/Legal Factors

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RESEARCH STUDY

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RESEARCH STUDY

Customer satisfaction, a business term, is a measure of how products and

services supplied by a company meet customer expectation. It is seen as a key
performance indicator within business and is part of the four perspectives of a
Balanced Scorecard.

In a competitive marketplace where businesses compete for customers,

customer satisfaction is seen as a key differentiator and increasingly has become
a key element of business strategy.

There is a substantial body of empirical literature that establishes the

benefits of customer satisfaction for firms.

"Customer satisfaction" is the important statement of the problem in this

project.

MEASURING CUSTOMER SATISFACTION

Customer satisfaction refers to the extent to which customers are happy

with the products and services provided by a business. Customer satisfaction
levels can be measured using survey techniques and questionnaires. Gaining high
levels of customer satisfaction is very important to a business because satisfied
customers are most likely to be loyal and to make repeat orders and to use a wide
range of services offered by a business.

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STATEMENT OF PROBLEM

To understand and identify what the consumer feels or perceives about Piaggio
motor bikes.

This will help the marketer to identify which all are the factors that a
consumer looks in to when he selects a particular bike. And also explains how a
consumer selects and interprets the qualities of bike that Piaggio offers.

OBJECTIVES OF THE STUDY

1. The objective of the study is “Measure customer satisfaction towards

Vespa”.

2. To measure customer satisfaction of Piaggio Vespa scooter owners.

3. To know the tastes and preferences of people of when it comes to Piaggio

Scooters.

4. To find the reasons for buying vespa motorcycle.

THEORETICAL BACKGROUND OF STUDY

Market

The term market may be considered as a convenient meeting place where

buyers and sellers gather together for the exchange of goods and services. Market
means a group of people having unmet wants, purchasing power to make their
demand effective and the will to spend their income to fulfill those wants.

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Marketing

Marketing is a comprehensive term and it includes all resources and set of

activities necessary to direct and facilitate the flow of goods and services form
the producer to the consumer through the process of distribution. Businessmen
regards marketing as a management function to plan promote and deliver
products to the clients or customers.

Marketing Management

Marketing management represents an important functional area of business

management efforts for the flow of goods and services from the producer to the
consumers. It looks after the marketing system of the enterprise. It has to plan and
develop the product on the basis of known customer demand.

Marketing Mix

Marketing mix is the set of marketing tools the firm uses to pursue its
marketing objectives in the target market.

There are four elements or variables that make a marketing mix, they are:

 Decisions on product or service.

 Decisions on promotion

 Decisions on price

 Decesion on Distribution

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RESEARCH METHODOLOGY

Survey research is the systematic gathering of information from

respondents for the purpose of understanding and/or predicting some aspects of
the behaviour of the population of interest. It is the most common method of
collecting primary data for marketing decisions. Survey research is concerned
with administration of questionnaires (interviewing). The survey research must
be concerned with sampling, questionnaire design, questionnaire administration
and data analysis. The administration of questionnaire to an individual or group
of individuals is called an interview. A questionnaire is simply a formalized set
of questions for eliciting information. As such, its function is measurement and
it represents the most common form of measurement in marketing research.

The report has been prepared as per the information obtained from two
sources. They are:

1. Primary data :

Primary data consists of original information for the specific purpose at

hand. It is first hand information for the direct users of respondents. The tools
used to collect the data may vary and can be collected through various methods
like questionnaire, personal interview

2. Secondary data :

Secondary data is the data which is already been collected and assembled.
This data is available with the companies or firms and it can be collected from
newspapers, periodicals, magazines, websites etc.

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Primary data:

 Structured questionnaire

Secondary data:

 Data from various magazines especially bike magazines.

 Internet.

Sampling plan :

Data collected has been analyzed and interpreted by percentage system

and presented in pie charts.

Sampling frame :

Customers visiting showrooms for servicing their Vespa motorcycles.

Sampling unit:

Motorcycles owners esp. Piaggio Vespa motorcycle owners

LIMITATIONS OF THE STUDY

1. The responses given by the respondents may not be true.

2. The respondents may be careless in responding to the questionnaire.
3. The respondents may be illiterate.

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DATA ANALYSIS
&
INTERPRETATION

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DATA ANALYSIS & INTERPRETATION

Analyzing data is a process of looking for patterns in data that has been
collected through inquiry and figuring out about what the patterns might mean.
Interpreting the data is a process of trying to explain the patterns that were
discovered. Analyzing and interpreting data may not always be a simple linear
process. Sometimes, more data is needed or the data needs to be recorded and
displayed in a different way to discover the patterns.

Analyzing & Interpreting are important because it…

 Supports the development of understanding about the relationship between

parts and the whole (e.g., graphic displays of data are more than a
collection of individual parts but represent a whole picture of some kind of
information)
 Provides opportunities for students to interpret and synthesize information
gained through observations 
 Supports student's ability to make inferences, draw conclusions and
develop theories 

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ANALYSIS & INTERPRETATION

1. The age group in which respondents lie under :

Interpretation / Analysis:

Most of the respondents lie in the age group of 18-25 i.e 30%.Followed
by 33% of which lies under the group of 26-35, 29% of the respondents are from
the age group of 36-50 and 08% of people were lying under age group of 50 &
above.

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2. Respondents Work Status/Employment Status:

Interpretation / Analysis:

In the above graph we can see the work status in which 33 % are
professionals, 12% are from business category,12% are students and remaining
28% aquired by others( Non-Professionals).

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3. Respondents Source of Awareness with regard to Piaggio Vespa

Scooter :

Interpretation/Analysis:

In the above graph it is shown that 60% of people come to know about
Vespa through Tv advertisement, 22% of people come to know through
newspaper followed by Friends & peer i.e, 14% and remaining 04% through
Radio.

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4. Respondents Satisfaction towards price of vespa :

Interpretation/Analysis:

In the above graph it is shown that 45% of respondents are satisfied

towards Vespa scooter price and remaining 55% of people are unsatisfied.

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5. Respondents rating towards Body style, Design & Look of Vespa

Scooter :

Interpretation/Analysis:

In the above graph it is shown that 36% of people rated Good,30% of

people rated it as average and 24% of people rated as Excellent and remaining
20% of people rated it as Poor.

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6. Respondents Satisfaction Towards Driving comfort of Vespa?

Interpretation/Analysis:

In the above graph it is showed that 36% of people expressed it as

Excellent,28% of people said it as good,22% of people said it as average,&
remaining 14% of people rated it as poor.

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7. Respondents Preference towards colour of vespa?

Interpretation/Analysis:

In the above graph it is showed that 38% of respondents prefer yellow

colour,28% of people prefer white,20% of people prefer for black & remaining
14% for Orange.

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8. Satisfaction towards pickup and Performance?

Interpretation/Analysis:

In the above graph it is showed that 78% of people are satisfied towards
pickup & performance and 22 % people are unsatisfied.

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9. Response Towards the Quality of Vespa scooter :

Interpretaion/Analysis:

With respect to quality in the above graph it is showed that 40% of people
rated it as good,26% of people rated it as Excellent,20% of people rated it as
Average and 14 % people rated it as Poor.

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10. Response towards various attributes Of Vespa?

Interpretation/Analysis:

In the above graph it is showed that 44% of people like its storage
capacity, 26% towards its safety & 30% people like its breaking system.

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11. Response towards Features of Vespa :

Interpretation/Analysis:

In the above graph it is demonstrated that 36% of respondents choose its

acceleration,28% people choose its riding comfort,22%people prefer to style &
mileage and remaining 14% people referred it for mileage.

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12. Response towards co-operation by showroom people?

Interpretation/Analysis:

In the above graph it is demonstrated that 88% of people are satisfied

with the co-operation towards showroom people & 12% people are not satisfied.

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13. Response towards availability of accessories and spare parts :

Interpretation/Analysis:

In the above graph it is showed that 60% respondents are satisfied

towards availability of spare parts & accessories & 40% people are unsatisfied.

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14. Response towards survivallence of Vespa in existing market?

Interpretation/Analysis:

In the above graph it is demonstrated that 78% of people say positively

regarding survival of the vehicle in market & remaining 22% of people reacted
negatively.

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15. Response Towards Recommendation Of Vespa To others:

Interpretation/Analysis:

In the above graph 82% of people respond positively towards

recommending the scooter to others and remaining 18% reacted negatively.

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FINDINGS
&
SUGGESTIONS

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FINDINGS & SUGGESTIONS

FINDINGS :

 More focus was towards Urban Area.

 Relaunch of outdated model lead to dis-intrest in youth to purchase.

 It succeeded in attracting professional but failed to reach business people

 Lot of dis-satisfaction towards price as because of price skimming

strategy used by Vespa.

 Storage & Pickup considered to be major attributes of the vehicle .

 Mileage acted as a loophole in sales of a scooter.

 Lack of service centers in semi-urban places.

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SUGGESTIONS :

 Need to expand the territory for semi urban areas.

 Modification or Updation generates interest in youth.

 Need to improve the boot space of the vehicle so that it acts major

advantage to business people.

 Need to reduce the price as to beat the competition.

 Improvement in Mileage.

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CONCLUSION

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CONCLUSION

During the live project we found that so many people and officials use
Vespa bikes because of pickup. Some of the office going people and
students(Male) prefer Vespa because of its easy handling too.

People preference to Vespa scooters is rapidly increasing because ofPickup

and satisfactory after-sale service.

LEARNING EXPERIENCE

This study made us to understand the demand and factors which affect the
buying preference of a consumer. They always take care of customer taste out
of the 4 ‘P’s of marketing price, product plays very important role though
promotion doesn’t play that much important role because in our survey we found
that the least factor which affects the consumer to Vespa bikes was promotion,
but another fact is that consumers preference is always quality and Nprices of the
bike.

This company is majorly influenced by price factor as in this field too many
competitors are ready to occupy the market share as consumer taste and
preference vary according to various factor so by understanding the consumer
need we must fix the competitive price. The pie chart creates a visual model,
which people can use when comparing different data sets. Using different colors,
pie charts divide information into sections resembling pie slices which is
accompanied by a number of percentages, and its size changes accordingly.
Graphs and charts condense large amounts of information into easy-to-
understand formats that clearly and effectively communicate important points.

In the near future consumers desires more and more bikes to be introduced
in the market and at the same time they should maintain quality because most of
the consumers prefer Vespa scooter by quality .
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BIBLIOGRAPHY

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BIBLIOGRAPHY

Websites :

 www.google.com
 https://en.wikipedia.org/wiki/Vespa
 https://en.wikipedia.org/wiki/Customer_satisfaction
 https://vespaindia.com/
 https://www.vespa.com/us_EN/

Articles :

 https://letstalkscience.ca/educational-resources/teaching-stem/analyzing-
interpreting#:~:text=Definition,the%20patterns%20that%20were%20disc
overed.
 https://web.archive.org/web/20090115110528/http://www.ridermagazine.
com/output.cfm?id=956269
 https://www.timesnownews.com/auto/bike-news/vespa-special-edition-
introduced-to-celebrate-piaggios-140th-anniversary-article-109394529
 https://www.bikesure.co.uk/bikesureblog/2021/07/vespa-scooter-75th-
anniversary/
 https://www.piaggiogroup.com/en/archive/press/piaggio-group-vespa-
elettrica-go-production-september

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