Chapter 1
INTRODUCTION
1|Page
Service Quality and Customer Satisfaction of Nitol Motors Limited
, CHAPTER 1
INTRODUCTION
1.1 Background of the study:
Today’s fast paced and increasingly competitive global market requires effective and
efficient strategies to survive and to make profits which can contribute toward the growth of
the organization. Service quality and customer satisfaction and customer retention are global
issues that affect all organizations whether private or business, small or large, global or local.
Literature available showed that organizations are interested in studying, evaluating, and
implementing marketing strategies that aim to improve customer satisfaction and retention
with an intention to maximize the financial performance of the firm. International literature
showed that there has been a strong advocacy for the adoption of customer retention as one of
the key performance indicators as noted by Kaplan and Norton (2001). Service quality and
customer satisfaction have long been recognized as playing a crucial role towards the
organizational success and survival in today’s global competitive market.
It is obvious that the customers are more important stakeholders in many organizations and
their satisfaction is a priority in marketing management. Customer satisfaction and service
quality has been a subject of interest to researchers and organizations as it has been proven by
some researchers that service quality is related to customer satisfaction. Profit maximization
can be achieved through increase in sales with lesser costs and one of the ways of achieving
that is through exceeding customer satisfaction (Wilson et al, 2008).
Customers are constantly aiming to get the highest satisfaction from products or services that
they buy from various organizations across the globe. Thus, it must be noted that winning in
today’s competitive marketplace demands that organizations need to build profitable and
lasting customer relationship. (Kotler, et al,.2002).
The main thrust of Nitol Motors Limited comes from, marketing TATA brand of commercial
vehicles in Bangladesh including buses, trucks, passenger version pickup trucks, Maxi and
construction equipment. Since 1991, it commenced assembly and building body of TATA
vehicles, popular in the country for its economy and excellent value for money and complete
after sales service.
2|Page
Service Quality and Customer Satisfaction of Nitol Motors Limited
,Though TATA brand is in the leading position in Bangladesh for Nitol Motors Limited’s
quality service but still now few gaps is present in service. In this thesis paper, I analyzed
service quality and customer satisfaction of Nitol Motors Limited As customer satisfaction
measures the service quality so I analyzed the service quality gap as well. From the analysis I
identified five major gaps in service quality. So, I also discussed the methods or steps for
solving those gaps for achieving excellence in service quality.
The focus on customer-centric marketing philosophies has received considerable attention in
the marketing literature by scholars and practitioners. Both practitioners and scholars are
increasingly looking for ways to comprehend, exert a pull on, preserve and build cherished
long-term relationships with profitable customers (Kotler, 2006). One of the key areas in the
customer-centered marketing concept is ensuring that existing customers are satisfied for the
purposes of repeat business in the future. As a result, organizations have been studying and
developing strategies to satisfy customers and achieve customer delight.
1.2 Significance of the Study:
This section reports on the significance of the study. The major importance of this study, was
to explore and understand the relationship, if any, between Nitol Motors Limited’s quality of
services and the satisfaction of its customers, whose outcome would help in strategically
resolving the problems that this research would unfold, and thus help increase the company’s
profitability. This research will also uncover the dimensions of service quality that customers
considered as significant. This will provide empirical support for management strategic
decisions in several critical areas of their operations.
1.3 Problem Statement:
The automobile has given many people incredible freedom of movement. It helps wherever
want to go. For making people’s life easier Tata Motors introduces commercial vehicles and
private car and they ensure that their products and processes are environmentally sound in a
variety of ways. Tata Motors has grown to be one of the leading automobile brands in
Bangladesh. Nitol Motors Limited, (NML), the flagship company of the Nitol-Niloy Group,
3|Page
Service Quality and Customer Satisfaction of Nitol Motors Limited
, has been a Tata Motors’ partner since 1988 and it is the largest distributor of Tata Motors in
Bangladesh, and the most dominant player in the country’s commercial vehicle market with
over 70 percent market share. NML offers customers the largest sales, service and spare parts
network in the country.
The purpose of this paper is to highlight the service quality and customer satisfaction of Nitol
Motors Limited Customers are highly satisfied with the service quality of Nitol Motors
Limited but Now a day’s competition is very high so Nitol Motors Limited need to upgraded
their service quality to hold the market position. There are five major gaps which I identified
in service quality and they are:
Gap between consumer expectation and management perception
Gap between management perception and service quality specification
Gap between service quality specification and service delivery
Gap between service delivery and external communication
Gap between expected service and experienced service
There are few top-level management people who sometimes can’t make prudent decisions as
they follow the conventional approaches and don’t feel comfortable embracing new different
approaches while considering factors to make decisions. This is what leads management to
take incorrect decisions.
Customer satisfaction is given the large priority in Nitol Motors Limited As such the Service
Department has been organized with utmost care. Although Nitol Motors Limited has some
limitations in service quality still the organization is running its operation successfully and
that indicates that the system is adequate enough to maintain the efficiency so, we can
conclude that Nitol Motors Limited practices at is good enough, though not a perfect one.
Management has taken action before for service quality improvement by survey report from
service center but the report is not authentic or accurate. So, management come up with a
new idea as like customer meet program and taking customer feedback.
4|Page
Service Quality and Customer Satisfaction of Nitol Motors Limited
INTRODUCTION
1|Page
Service Quality and Customer Satisfaction of Nitol Motors Limited
, CHAPTER 1
INTRODUCTION
1.1 Background of the study:
Today’s fast paced and increasingly competitive global market requires effective and
efficient strategies to survive and to make profits which can contribute toward the growth of
the organization. Service quality and customer satisfaction and customer retention are global
issues that affect all organizations whether private or business, small or large, global or local.
Literature available showed that organizations are interested in studying, evaluating, and
implementing marketing strategies that aim to improve customer satisfaction and retention
with an intention to maximize the financial performance of the firm. International literature
showed that there has been a strong advocacy for the adoption of customer retention as one of
the key performance indicators as noted by Kaplan and Norton (2001). Service quality and
customer satisfaction have long been recognized as playing a crucial role towards the
organizational success and survival in today’s global competitive market.
It is obvious that the customers are more important stakeholders in many organizations and
their satisfaction is a priority in marketing management. Customer satisfaction and service
quality has been a subject of interest to researchers and organizations as it has been proven by
some researchers that service quality is related to customer satisfaction. Profit maximization
can be achieved through increase in sales with lesser costs and one of the ways of achieving
that is through exceeding customer satisfaction (Wilson et al, 2008).
Customers are constantly aiming to get the highest satisfaction from products or services that
they buy from various organizations across the globe. Thus, it must be noted that winning in
today’s competitive marketplace demands that organizations need to build profitable and
lasting customer relationship. (Kotler, et al,.2002).
The main thrust of Nitol Motors Limited comes from, marketing TATA brand of commercial
vehicles in Bangladesh including buses, trucks, passenger version pickup trucks, Maxi and
construction equipment. Since 1991, it commenced assembly and building body of TATA
vehicles, popular in the country for its economy and excellent value for money and complete
after sales service.
2|Page
Service Quality and Customer Satisfaction of Nitol Motors Limited
,Though TATA brand is in the leading position in Bangladesh for Nitol Motors Limited’s
quality service but still now few gaps is present in service. In this thesis paper, I analyzed
service quality and customer satisfaction of Nitol Motors Limited As customer satisfaction
measures the service quality so I analyzed the service quality gap as well. From the analysis I
identified five major gaps in service quality. So, I also discussed the methods or steps for
solving those gaps for achieving excellence in service quality.
The focus on customer-centric marketing philosophies has received considerable attention in
the marketing literature by scholars and practitioners. Both practitioners and scholars are
increasingly looking for ways to comprehend, exert a pull on, preserve and build cherished
long-term relationships with profitable customers (Kotler, 2006). One of the key areas in the
customer-centered marketing concept is ensuring that existing customers are satisfied for the
purposes of repeat business in the future. As a result, organizations have been studying and
developing strategies to satisfy customers and achieve customer delight.
1.2 Significance of the Study:
This section reports on the significance of the study. The major importance of this study, was
to explore and understand the relationship, if any, between Nitol Motors Limited’s quality of
services and the satisfaction of its customers, whose outcome would help in strategically
resolving the problems that this research would unfold, and thus help increase the company’s
profitability. This research will also uncover the dimensions of service quality that customers
considered as significant. This will provide empirical support for management strategic
decisions in several critical areas of their operations.
1.3 Problem Statement:
The automobile has given many people incredible freedom of movement. It helps wherever
want to go. For making people’s life easier Tata Motors introduces commercial vehicles and
private car and they ensure that their products and processes are environmentally sound in a
variety of ways. Tata Motors has grown to be one of the leading automobile brands in
Bangladesh. Nitol Motors Limited, (NML), the flagship company of the Nitol-Niloy Group,
3|Page
Service Quality and Customer Satisfaction of Nitol Motors Limited
, has been a Tata Motors’ partner since 1988 and it is the largest distributor of Tata Motors in
Bangladesh, and the most dominant player in the country’s commercial vehicle market with
over 70 percent market share. NML offers customers the largest sales, service and spare parts
network in the country.
The purpose of this paper is to highlight the service quality and customer satisfaction of Nitol
Motors Limited Customers are highly satisfied with the service quality of Nitol Motors
Limited but Now a day’s competition is very high so Nitol Motors Limited need to upgraded
their service quality to hold the market position. There are five major gaps which I identified
in service quality and they are:
Gap between consumer expectation and management perception
Gap between management perception and service quality specification
Gap between service quality specification and service delivery
Gap between service delivery and external communication
Gap between expected service and experienced service
There are few top-level management people who sometimes can’t make prudent decisions as
they follow the conventional approaches and don’t feel comfortable embracing new different
approaches while considering factors to make decisions. This is what leads management to
take incorrect decisions.
Customer satisfaction is given the large priority in Nitol Motors Limited As such the Service
Department has been organized with utmost care. Although Nitol Motors Limited has some
limitations in service quality still the organization is running its operation successfully and
that indicates that the system is adequate enough to maintain the efficiency so, we can
conclude that Nitol Motors Limited practices at is good enough, though not a perfect one.
Management has taken action before for service quality improvement by survey report from
service center but the report is not authentic or accurate. So, management come up with a
new idea as like customer meet program and taking customer feedback.
4|Page
Service Quality and Customer Satisfaction of Nitol Motors Limited
