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Project Report on Internal Customer Satisfaction

INTRODUCTION

Customer is the king, this is all the more apt for today's

business environment where, all other factors remaining more or less

constant, it is the value addition to the customer that is making all

the difference.

Customer satisfaction depends on the performance relative to a

expectations.

A key premise in customer satisfaction is understanding the needs

and meeting or exceeding the expectations of customers. Further

more, this is done while optimally using resources. While most

companies have developed strategies to improve quality and externalcustomer service, internal customer satisfaction is a much neglectedcomponent of quality improvement. To this end, it is important to

emphasize that total customer satisfaction can be attained only if all

employees devoted to external customer satisfaction can work

together and assist each other to achieve the common objective,

when the internal customer isn't satisfied, Relationships with the

external customer suffer. So, it is suggested to adopt customeroriented approach to keep the internal customer satisfied and

motivated, who in turn will focus their attention and energy upon

meeting the requirements of their customers, thereby maximizing the
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It decreases the turnover.

Reduced overheads, and increase customer satisfaction level's

inter departmental.

It enhance communication and hence helped in team building,

hence there is less wasted effort caused by lack of common

purpose and poor communication.

A good employee feedback survey improves employee attitude

and boosts morals.

INTERNAL CUSTOMER-SUPPLIER RELATIONSHIP

In an organization, from procuring an order to delivering the

final product, a series of activities takes place. There are different

deptts. To which these activities are assigned eg. Raw material for

production is purchased by one deptt. And supplied to other deptt.

Where the production initiates. Thus every deptt. play an important

role of a customer and supplier as well.

The importance of a customer is well known from the maxim,

Customer is the king. Earlier, organizational administrators

concentrated only on the satisfaction of external customers i.e. the

target market. But now it is being realized that if the internal

customer is satisfied the quality as well as the quantity is also

appreciable. Higher the customer satisfaction index, higher will be

the quality of the production. This results in the satisfaction of

external customers and ultimately brings profits & prosperity to the


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organization. It can benefit the organization in following ways:-

1) There will be less employee turnover.

2) Optimum utilization of available resources will take place.

3) High job satisfaction and feeling of belongingness in

employees.

4) Qualitative product.

5) Least conflicts in the departments.

6) Good reputation in the market and many more benefits can

be accrued.

Thus, every deptt. should ensure that the customer deptt. is satisfied

with the product and services provided by it as it will result into anoverall improvement of the organization.

To serve a final customer first of all a company has to satisfy

his employees. If employees are satisfied then they will ultimately

satisfy the final customer. Three types of marketing arises. These are

a follows:-


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1) Internal marketing:

It is defined as when company communicates its policies

to the employees. In this understands their employees &

provides good working condition, compensation and

incentives so as to satisfy their employees. Company satisfy

their employees because they are the person in touch with the

final users.

2) External marketing:

When company communicates with its final end user

regarding the product complaints & suggestions so as to

satisfy them.

3) Interactive marketing:

In this employees communicate company product to its

final end users.

INTRODUCTION TO CUSTOMER SATISFACTION

Todays companies are facing their toughest competition ever.

These companies can outdo their competition if they can move from

product and sales philosophy to a marketing philosophy. We spell

out in detail how companies can go about winning customers and

outperforming competitors. The answer lies in doing a better job of

meeting and satisfying customers needs. Only customer-centered

companies are adept at building customers, not just building product.


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They are skilled in market engineering, not just product engineering.

Too many companies think that it is the marketing/sales

departments job to procure customers. If that department cannot, the

company draws the conclusion that its marketing people arent very

good . but in fact, marketing is only one factor in attracting and

keeping customers. The best marketing department in the world

cannot spell products that are poorly made or fail to meet anyones

need. The marketing department can be effective only in companies

whose various departments and employees have designed and

implemented a competitively superior customer value-delivery

system.

Although the customer oriented firms seek to create high

customer satisfaction, its main goal is to maximize customer

satisfaction ,first the company can increase customer satisfaction by

lowering its prices, but results may be lower profits second the

company might be able to increase prices. Third the company has

many stake-holders including employees, dealers, suppliers and

stock holders spending more to increase customer satisfaction might

divert funds from increasing the satisfaction of other partner.

Estimate the company must operate on the philosophy that it is

trying to deliver a high level of satisfaction to the other stake-holder

within the constrains of its resources. From the past studies of last

three decades we observed that the companys first task is to create

and satisfy customers. But todays customers face a vast array of

product and brand choice prices and suppliers.

It is generally believed that customers estimate which offer


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will deliver the most value customers are like value maximizes,

within the bounds of search costs and limited knowledge, mobility

income, they form an expectation of value and act on it, whether or

not the offer lives up to the value expectations affects customers

satisfaction and their repurchase probability.

CUSTOMER VALUE

Customer delivered value is the difference between the total

customer value and total consumer cost. Consumer value is thebundle of benefits customers expect from a given product or service.

Total consumer cost it the bundle of costs consumer expect to incur

in evaluating, obtaining and using the product.

That two customers can report being highly satisfied for

different reasons. one may be easily satisfied most of the time and

other might be hard to please but was pleased on this occasion.

Companies should also note that managers and salespeople can

manipulate their ratings on customer satisfaction. They can be

especially nice just before the survey. They can also try to exclude

unhappy customers from the survey. Another danger is that if

customers will know that the company will go out of its way to

please customers, some customers may express high dissatisfaction

(even if satisfied) in order to receive more concession.

DELIVERING CUSTOMER VALUE AND SATISFACTION:

The value chain is a tool for identifying ways to create more

customer value. every firm is a collection of activities that are

performed to design, produce, market, deliver and support its

product. The value chain identifies nine strategically relevant

activities that create value and cost in a specific business. These nine

value-creating activities consist of five primary activities and four


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support activities.

INTERNAL RECORD SYSTEM

Marketing managers rely on internal reports on orders, sales,

prices, cost, inventory levels, receivables, payables, and so on. By

analyzing this information, they can spot important opportunities and

problems.

THE MARKETING INTELLIGENCE SYSTEM

A marketing intelligence system is a set of procedures and

sources used by managers to obtain everyday information about

developments in the marketing environment. Marketing managers

collect marketing intelligence by reading books, newspapers and

trade publications; talking to customers, suppliers and distributors;

meeting with other company mangers.

First, it can train and motivate the sales force to spot and

report new developments. Sales representatives are positioned to

pick up information missed by other means.

Second, the company can motivate the distributors, retailers,

and other intermediaries to pass along important intelligence.

Third, companies can collect competitive intelligence by

purchasing competitors products; attending open houses and trade

shows; reading competitors publishing reports; attending

stockholders meeting; talking to employees, dealers, distributors,

suppliers, and freight agents; collecting competitors ads; and


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looking up news stories about competitors on the internet.

SOURCES OF INTERNAL DATA

Sources of internal data are of two types:

1. Internal or primary data

2. External or secondary data.

Internal Sources

Company profit-loss statements, balance sheets, sales figures,

sales call reports, invoices, inventory reports and prior research

reports.

External Sources

A) Government publications

B) Periodicals and books

C) Commercial data

Find the Next Chapter -Objectives, research, limitations,

suggestions, bibliography, questionnaire ...........
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CONSUMER BUYING BEHAVIOUR - INTRODUCTION

The job of marketer is to meet and satisfy target customers needs and

wants but knowing customer" is not a simple task. Understanding the

buying behavior of the target market for its company products is the

essential task for the marketing dept. The job of the marketers is to

think customer and to guide the company into developing offers,

which are meaningful and attractive to target customers and creating

solutions that deliver satisfaction to the customers, profits to customer

and benefits to the stakeholders.

Marketers must study the customer taste, preferences, wants, shopping

and buying behavior because such study provides the clues for

developing the new products, price, product changes, messages and

other marketing mix elements. In understand the concept of buying we

have the some of the key questions. They are: -

Why does the market buying? Objective

Who does the market buying? Organization

What does the market buying? Objects

When does the market buying? Occasions

Where does the market buying? Outlets
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How does the market buying? Operations

Along with that there are two more questions that are also related with

above. They are: -

How do the buyers characteristics influence the buying

behavior?

How does the buyer make purchasing decisions?

These are some of questions that solutions help to predict the buying

behavior.

WAYS OF BUYING BEHAVIOR

According to the concept of marketing the buying behavior can be

divided in two ways :-

1. Consumer Behavior: - It includes that user who buys the product for

the direct consumption, not to use for further sale purpose. Like as home

users.

2. Business Behavior: - It includes those users who buy the product for

the further sale purpose. Like as shopkeepers, dealers, and retailers.

BUYING ROLES IN BUYING BEHAVIOR

In the buying behavior there are different roles played in each of

consumer and business. Those are involved in the buying decisions.

CONSUMER BUYING ROLES

In the consumer buying there are different buying roles; i.e.

Initiator: -- A Person who first suggest the idea of buying.

Influencer: - A Person who influence the buying decision.

Decider: - A Person who takes decisions regarding buying


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Buyer: - A Person who actually buys the products.

User: - A Person who is the user of the product.

BUSINESS BUYING ROLES

In the business buying there are different buying roles; i.e.

Approver: -- A Person who approves the idea of buying.

influencer: -- A Person who influence the buying decision.

Decider: -- A Person who takes decisions regarding buying

Buyer: -- A Person who actually buys the products.

User: -- A Person who is the user of the product.

TYPES OF BUYING BEHAVIOR

There is a great difference between the purchasing of a computer and a

car. Buying decisions making varies with the type of buying decision.

The types of buying behavior divided are separately divided as per of

consumer and business buying.

TYPES OF CONSUMER BUYING BEHAVIOR

This is to be extensively divided in four types: -

1. Complex Buying Behavior: -- when the consumer are highly involved

in the purchase and aware of significant differences among brands.

2. Dissonance Reducing Buying Behavior: -- when the consumer are

highly involved in the purchase but sees little differences among brands.

3. Habitual Buying Behavior: -- when the consumer are low involved in

the purchase but sees absence of aware of differences among brands.

4. Variety Seeking Buying Behavior: -- when the consumer are low

involved in the purchase but sees significant of differences among

brands.


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TYPES OF BUSINESS BUYING BEHAVIOR

This is to be extensively divided in four types: -

1. Straight Rebuy: -- In this buyer approves the purchasing on the basis

of the past buying records and satisfaction with suppliers.

2. Modified Rebuy: -- where the buyer wants to modify product

specifications. Prices, delivery requirements.

3. New Task: -- when the buyer approves the purchasing of product for

the first time by consisting of the good and efficient salesperson.

So, that its the types of the buying behavior of consumer as well as

business buyer.

FACTOR AFFECTING THE BUYING BEHAVIOR

There are various factors that affect the buying behavior on both

consumer as well as business buying.

FACTOR AFFECTING CONSUMER BUYING BEHAVIOR

Cultural Factors

Culture

Sub Culture

Social Class

Personal factors

Age

Occupation

Life Styles

Personality

Social Factors

References Group

Family

Roles and Statues

Psychological

Motivation

Perception

Learning

BUYER

FACTOR AFFECTING BUSINESS BUYING BEHAVIOR


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Environmental

Economic

Political

Cost of Money

Competition

Technological

Organizational

Objective

Policies

Procedures

Structure

Inter Personal

Authority

Status

Empathy

Individual

Age

Education

Income

BUSINESS

BUYER

So, these are the factors that affect the consumer as well as business

buying behavior.

BUYING DECISION MAKING

Consumers make the decision on the different brands available in the

market. They will give the choice over the different brands. So there is a

model that describes how the consumers make the choice and

preferences over the different brands.

The Following is the model of buying decision-making: -

1. Total Set: - In this they used to maintain the list of the all-leading

brand to those particular products, that are available in the market.

2. Awareness Set: - After that they used to make the list of those

selected brands with that they are something knows and aware about

their products.

3. Consideration Set: - After that they used to make the list from the list

of known brands, about those they know something better than other

brands.

4. Choice Set: - After the consideration of some brands, a list of choice

brands those having the greater chances of acceptance over others.

5. Decision Set: - After the all of the process in last most preferred, mostacceptable during the buying decision process.


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So that its a process, which defines that, how a buying decisions are

made among the number of brands available In the market.

So that its all about the general buying behavior of cons, and business buying according to marketing concept, because to understand and

making study over buying behavior first its necessary to aware with

concept of buying behavior.

BUYING BEHAVIOR - INTRODUCTION OF STUDY

INTRODUCTION

Understanding the buying behavior of the target market for its company

products is the essential task for the marketing dept. The job of the

marketers is to think customer and to guide the company into

developing offers, which are meaningful and attractive to target

customers and creating solutions that deliver satisfaction to the

customers, profits to customer and benefits to the stakeholders.

The computer processor company divides its buying behavior in both

way i.e. Consumer and Business. The both of term have same meaning

as to define in the chapter of buying behavior. The both consumer and

business are divided further as SMB Small Medium Big - to identify

the type of client according to their sales and SMB have their own group

of clients.

CONSUMER BUYING BEHAVIOR:-

It includes all those person who are the direct user of the computers and

their processors or for their employees and family member use. They

are not indulging in the sale activity of the computer and other Products.

i.e. home users, companies for their employees.

BUSINESS BUYING BEHAVIOR: -

It includes all those person who are not the direct user of the computers

and their processors or for their employees and family member use.They are indulging in the sale activity of the computer and other


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Products. They can also be authorized from companies i.e. Intel. i.e. hp,

HCL, Assemblers.

There is model of the both of behavior as suggested by companies with

the dividing in the SMB, the both of the buying behavior. The models

are below for both behaviors: -

CONSUMER BUYING

S M B

SMALL MEDIUM BIG

Home PC users

Doctors

Chemists

Shop Keepers

And Self-Employed

Departmental Stores

Small Industries

Small Software Companies

Banks, Insurance

Laptop Users

Big Industries

Software Comp.

Scientists

MODEL OF CONSUMER BUYING BEHAVIOR

BUSINESS BUYING

S M B

SMALL MEDIUM BIG


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Retailers

Small Traders

Small Assemblers

Whole Sellers

Big Assemblers

Intel Agents

Auth. Assemblers

e.g. HP, HCL, ACER

Super Store Retailers

MODEL OF BUSINESS BUYING BEHAVIOR

So thats all about the category of computer processors buying behavior

as to each divided in SMB as to their use and sales point. Now we will

be discuss with the concept of the from the point our study and discuss

how these companies make it possible.

PROBLEM FORMULATION

In this report we are making a study report for the buying behavior of

Processors in order to know the position of different sets Processors

brands of different companies in the market. So that we divide the

problem in sub parts to make the good and result oriented study report.

Problem defined as: -

What is the Position of the computer processors all

companies in the Indian market?

Different players in the processor market.

Perception of dealers and consumer about these

companies.

Physical distribution of these companies competing with

others.

Taste and preferences of dealer and consumer towards

computer.

Price effect over consumer and dealer between

competitions. Marketing and sales promotion activity of


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these companies.

Competition in terms of price, technology and after sale

service.

Find out the consumer and business target groups.

So as to study the buying behavior we divide the problem overstated

parts, so that it can be easily formulate and solved.

SIGNIFICANCE OF PROBLEM

Every one knows the time of manual working and now we have

different set of machines for the different work, it makes our work very

easy and fast. In these machines computer is one and buying of a

computes is not a simple task. In that buying behavior for the computer

processors has Its own significance. For that we divide the problem as

stated in above sect and each problem has its own significance to

answer the following questions: -

Why, When, How, What, where and who is buying the

Computer?

Why, When, How, What, where and who is buying

processors and which one?

Why, When, How, What, where and who is buying only

INTEL processors?

Why, When, How, What, where and who is buying other

than INTEL processors?

In the, context of the solving these questions, problem has significance


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in the form of the over stated questions?

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