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Index Method for Calculating Customer Service

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INTRODUCTION

1.1 ABOUT THE INDUSTRY
The geotextile industry is gaining importance due to rapid infrastructural development taking place on a global level. There are a large number of projects which are being developed currently with the emerging economy. The countries like China, India, and various other Asian economies are considered to be the growing markets for the geotextile industry. The Asian market dominates the global textile industry and is expected to be the highest among all the regions which is estimated to reach $2.5 billion by 2017. Economic stability in the country has increased the demand for more roads, highways, bridges, railways, dams and canals.
Geotextile enhance design, cost effectiveness, durability, and aesthetics of the infrastructure projects. The geotextile industry produces products that perform several functions which include reinforcement, filtration, draining, protection, and separation. The major applications for geotextiles are pavement repair, road industry, erosion control, and waste management.
1.2 ABOUT THE COMPANY
Maruti Rub Plast Pvt. Ltd was established in 2008, a group company of Maruti Techno Rubber Private Ltd., which is a renowned brand in the Infrastructure and Construction Sector. It has set up its state-of-the-art manufacturing facility at Greater Noida and installed with World’s best and automated Technical Textile Machine to manufacture Warp- Knitted Geogrids and other Geosynthetic Products.
The Flagship Company, Maruti Techno Rubber Private Ltd., are the market leaders in manufacturing Rubber & PVC Products, Water Stop Seals, Rubber Sheets, Shuttering Rubbers, ĵElastomeric Bearing Pads, Hydrophilic Rubber Gaskets, LDPE & HDPE Membranes, Expansion Joints, etc., that are well established in Indian and Middle East & European Markets for the last 25 years.
1.3 ABOUT THE PRODUCTS MANUFACTURED
Maruti RubPlast Pvt. Ltd. manufactures a wide range of products. The main products include geogrids, geotextiles, geo membranes, PVC rigid profiles, and shuttering rubbers. A brief description of the products is given below.
Geogrids are high strength oriented polymer grid structures used to reinforce soils & are made from high Tenacity polyester yarns, when coated with Poly Vinyl Chloride they make a strong, durable & dimensionally stable geogrid. Our product is highly recommended for reinforcement of soils & other granular materials for a wide variety of applications including soil retaining walls. Geotextiles are permeable fabrics used in conjugation with foundation, soil, rock, earth, or any other geotechnical engineering-related material and have ability to separate, filter, reinforce, protect, or drain. PVC is a low cost low cost membrane suitable for some short life applications in 'plain' form or special applications in nylon cloth reinforced form. 'PVC' sheets can be produced in a wide variety of specifications in a range of thicknesses, from 0.20mm to 3.00mm in plain (foil) form and 0.50mm to 2.00mm in reinforced form. Some PVCs, like our 'PW' range, are approved for drinking water use.
1.4 CUSTOMER SATISFACTION INDEX
Customer satisfaction and customer retention are the key issues for any organization in today’s competitive market. It is very important for an organization to implement a metric for tracking customer satisfaction. To implement such a satisfaction metric the organization should measure the customer satisfaction for every function and service that the company provides. Customer Satisfaction Index is based upon how satisfied the customer/client is with the company’s products and services. It also helps in identifying what are the most important services that the company provides to the clients in order to maintain customer loyalty. It is calculated based on total user base and refers to the proportion of satisfied customers that a business has. It is simply an average of all the attributes that are believed to contribute to customer satisfaction. Since different attributes can contribute differently to the overall customer satisfaction, the individual attributes are weighted to reflect this reality. This is the essence of a customer satisfaction index.
REVIEW OF LITERATURE

1. A study by David C. Swaddling and Charles Miller, May 2002, lays focus on customer perceived value as compared to customer satisfaction. Customer satisfaction is based on the feedback provided by the existing customers through surveys and other methods. These surveys might include questions that are not relevant to a specific customer, i.e. the services or products that a customer didn’t use. This will lead to incorrect results and interpretation. Whereas on the other hand customer perceived value focuses on the existing as well as perceived customers. If the management focuses on customer perceived value, there will profit maximization as compared to focusing on customer satisfaction only. The literature also highlights that customer satisfaction doesn’t bring customer loyalty. Unlike customer satisfaction measures, customer perceived value provides the management with information that will improve its ability to make effective decisions and reduce the uncertainty of business.
2. The authors Claes Fornell, Michael Johnson, Eugene Anderson, and Barabara Bryantt discuss in the journal the nature and purpose of American Customer Satisfaction Index and illustrate the use of the index in conduction studies for benchmarking purposes, overtime and cross-sectionally. The authors developed a model to justify the findings that customer satisfaction is greater for good than services, and in turn greater for services than government agencies. With these findings, they also followed up on reasons why the customer satisfaction is declining. The reason behind that is decreasing satisfaction of the services. The findings highlight three major issues i.e. customization is more important for customer satisfaction than reliability. The sectors in which variance in production and consumption is low, customer expectations play a greater role. Last but not the least, customer satisfaction is more quality driven than price driven.
3. A research paper written by Ingrid Fecikova, titled, an index method for measurement of customer satisfaction, tells us about customer satisfaction as an important issue for commercial and public service organizations. The retention of customers depend upon customer satisfaction. To measure the quality of product and service, it can be related to the measure of quality of customer behavior. There are various ways that companies adopt to measure customer satisfaction for example customer complaints, non-systematic surveys, and a few companies do not measure customer satisfaction at all as it considered time consuming and would not add anything useful. In this report the author has considered various factors that account for customer satisfaction. To do that a general formula is developed to make quantitative measurement of customer satisfaction.
4. Application of Customer Satisfaction Index by Adela Poliakova, defines customer satisfaction as “an overall evaluation of a firm’s post-purchase performance or utilization of a service.” Customer satisfaction index can be considered as the voice of the customer. In the report, the author has used various logical steps for calculating the CSI. These include to know the view of the customers, to identify the services that the customers are interested in, which helps in identifying the CSI. After the CSI is understaff the characteristics features of service quality and then define the actual level of defined criteria of service quality. The last step is identifying elements in the existing management system, which will be used to resolve a customer satisfaction index.
5. A thorough study by Ganga Bhardwaj was conducted to understand the customer satisfaction has the following dimensions. Upon research the author listed the dimensions as reliability, assurance, tangibility, empathy, responsiveness. These elements sum up to total customer satisfaction. He conducted a survey for the customers of an automobile company and the factors listed above are the main factors that contribute to customer satisfaction.
6. According to a report by Ashish Bhave, Product Executive, Symphony Technologies major attributes of customer satisfaction can be summarized as product quality, delivery commitments, price, responsiveness, overall communication, accessibility, and attitude. Customer expectations can be identified using various methods such as periodic contract reviews, market research, warranty records, satisfaction surveys, and personal visits.
7. A report by authors Tuomas J. Ahola and Jaakko Kujala, titled, “Measuring customer satisfaction in the context of a project based organization,” focuses on the lack of research of the concept of customer satisfaction and the current methods used for measuring it in organizations operating in business-to-business markets. These markets typically provide customized products and services to customer base. There is an argument on survey based methods that do not suffice for B2B context. However, customer satisfaction measurements results can be used to discover important strengths and weaknesses in an organization. They also help in estimating customer loyalty towards the company. They can be used as a symbolic activity for demonstrating customer oriented behavior.
8. A project report titled, “Customer satisfaction index for the mass transit industry” is a study do that uses customer satisfaction index methodology and apply this technique to five diverse transit districts. To construct the CSI, attributes are rated and put through a factor analysis (to group attributes). Then, a regression analysis is performed to determine which factors are most closely associated with overall customer satisfaction. Beyond measuring satisfaction, CSI research provides actionable data with which companies can design products and programs that most effectively match customer’s desires and monitor the impact their strategies ultimately have on sales.

3.1 RESEARCH OBJECTIVE
The objectives of this project are:
1. To study the factors contributing to customer satisfaction at Maruti RubPlast Pvt Ltd for B to B markets.
2. To develop the customer satisfaction index for measuring the customer satisfaction.
3.2 RESEARCH INSTRUMENT
In this project, a structured questionnaire is used to analyze the factors that contribute to customer satisfaction. The questionnaire consists of 36 questions covering almost all the aspects of customer satisfaction. A set of closed ended questions are asked to the respondents where the respondents’ answers are limited to a fixed set of responses. With the help of the responses, an equation is developed to calculate satisfaction using customer satisfaction index. This is quantitative method of research which includes high contribution of the respondents and low contribution from the researcher.
3.3 SAMPLING PLAN
The type of sampling used in this research project is judgmental sampling. The organization follows a business to business marketing, i.e. between a manufacturer and wholesaler, or between a wholesaler and a retailer. Therefore, the company’s’ 18 clients, spread all over the country were chosen as the respondents.
3.4 LIMITATIONS
There are a few methodological limitations involved in this research project. A few of them are listed below:
a) Lack of available and/or reliable data which limits the scope of the analysis.
b) Inclusion of a specific question in the survey that could have helped address a particular issue that might have emerged later in the study.
c) Respondents can be biased while filling the questionnaire.

4.1 DATA ANALYSIS AND INTERPRETATION
For the data analysis of this research project, SPSS software was used. Under SPSS, multiple regression analysis was conducted which is used when the researcher is trying to develop a model for predicting a wide variety of outcomes. Multiple regression allows you to examine how multiple independent variables are related to a dependent variable. The research design the data is given below:
Maruti RubPlast Pvt. Ltd. has 18 clients all over the country, that were surveyed about various parameters like product quality, services, delivery, ordering, billing, shipping, quotations and overall satisfaction. With the help of the outcome, a model equation was developed to know the overall satisfaction.
The names of the companies are mentioned in the table below:
NAME OF CLIENTS ADDRESS
1. SAF Yeast Company Pvt Ltd Sandila, Dist Hardoi, U.P.
2. SABZ INFRA SOLUTION PVT LTD - DELHI Delhi
3. Earthcon Systems (India) Pvt. Ltd. Sohna (H.R.)
4. GEO SOL ASSOCIATES Silicon Vally Image Garden Lane, Hyderabad
5. Bala Bharti Infrastructure Pvt Ltd Vaishali Nagar, Jaipur
6. Shree Sun Associates Ahmedabad
7. Geo Sys India Infrastructures Pvt Ltd Auraiya, U.P.
8. Enviro Infradevelopers Pvt Ltd Gomti Nagar, Lucknow
9. Sachi Geosynthetics Pvt Ltd Nagpur
10. Maccaferri Enviornmental Solutions Pvt Ltd Gomti Nagar, Lucknow
11. Earthcon Systems (India) Pvt. Ltd. Delhi
12. Jyoti Polyvinyl Ltd Vadodara, Gujrat
13. GORANTLA GEOSYNTHETICS PVT LTD Chennai
14. Earthcon Systems (India) Pvt. Ltd. Kota, Rajasthan
15. C.P.Systems Pvt Ltd Noida (U.P.)
16. Virat Construction Company Ahmedabad
17. Bala Bharti Infrastructure Pvt Ltd (Noida) Varansi, U.P.
18. Earthcon Systems (India) Pvt. Ltd. (Patna) Patna (Bihar)
4.2 INTERPRETATION OF THE OUTPUT

Table 1 Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .948a .899 .785 .58352
a. Predictors: (Constant), Quotations, Billing, Product_Quality, Quality_Service, Website, Ordering, Shipping_Packing, Product_Value, Delivery

From the above table it can be seen that the value of R square is 0.899. Thus the percentage of deviation that can be explained by this relationship is quite good and a successful model can be developed.

Table 2 ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 24.221 9 2.691 7.904 .004b Residual 2.724 8 .340 Total 26.944 17
a. Dependent Variable: Overall_Satisfaction
b. Predictors: (Constant), Quotations, Billing, Product_Quality, Quality_Service, Website, Ordering, Shipping_Packing, Product_Value, Delivery

Hypothesis:
Ho: There is no significant predictor of the dependent variable
Ha: There is at least one significant predictor of the independent variable

If p < 0.05 then reject the Null hypothesis and only then we can proceed further to develop the model. Thus from the above table we can see that p(sig.) value is less than 0.05. Hence we reject the null hypothesis.

Table 3 Coefficientsa

Model Unstandardized Coefficients Standardized Coefficients t Sig. 95.0% Confidence Interval for B B Std. Error Beta Lower Bound Upper Bound
1 (Constant) .407 2.078 .196 .850 4.384 5.198 Product_Quality 1.383 .290 .287 -1.319 .224 1.053 .287 Quality_Service .717 .185 .526 -3.867 .005 1.144 -.289 Product_Value .520 .451 .291 -1.153 .282 1.560 .520 Delivery .246 .288 1.133 4.331 .003 .583 1.910 Shipping_Packing .660 .197 .576 3.360 .010 .207 1.114 Ordering -.080 .173 -.090 -.463 .656 -.479 .319 Website -.134 .181 -.123 -.743 .479 -.551 .283 Billing -.059 .240 -.047 -.247 .811 -.612 .493 Quotations .757 .396 .389 1.913 .092 -.155 1.669
a. Dependent Variable: Overall_Satisfaction

Hypothesis:-
Ho:- This independent variable is not a significant predictor of dependent variable
Ha:- This independent variable is a significant predictor of dependent variable

(if p

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