IMPACT OF OPERATIONAL EFFICIENCY ON CUSTOMER SATISFACTION IN THE INDIAN AUTOMOBILE INDUSTRY
DOI:
https://doi.org/10.53555/hkag9240Keywords:
Customer satisfaction, Operational efficiency, Competitive advantage, Automobile industry, Indian marketAbstract
The paper shall explore relationship between the operational efficiency as well as customer satisfaction within Indian automobile sector with particular emphasis on the showroom level operation. The aim was to get insights into the effect of different operational determinants on overall customer happiness and long-term customer loyalty in a competitive and dynamic automotive market. An organized customer satisfaction questionnaire consisting of 25 statements was made as per the insights gained through the literature review. The tool was given to 75 participants who recently dealt with the employees in the showroom, which gave the opportunity to record the real-time impressions about the operational performance and the quality of services. These were investigated on the dependence between independent variables of operations and the satisfaction of customers using the descriptive statistics and regression analysis. The results showed that framework of proposed explanations (0.4429 percent) elucidated the variation in customer satisfaction, and the determinants (the selection) possess moderate explanatory strength. The operational aspects that were studied involved production lead time, quality of service after sales, efficiency of supply chain, inventory, reliability of the vehicle, its sustainability and green operations, and automation of technology and processes. Among these variables, production lead time has been found out to be the most significant factor in customer satisfaction. Although even post sales quality of service altered the customer loyalty and satisfaction only slightly and its contribution was insignificant as a statistical element, it is also a significant factor of customer loyalty and satisfaction. The results underline the significance of properly conveying the strengths of the operations to the customers. Better knowledge about efficiency-related programs will allow firms to achieve higher customer experience, enhance their competitive advantage, and develop a culture of operational excellence and long-term customer relationship in the automobile industry.
References
1.Abbas, H., & Tong, S. (2023). Green supply chain management practices of firms with competitive strategic alliances—a study of the automobile industry. Sustainability, 15(3), 2156.
2.Amineh, H., & Kosach, N. (2016). Assessment of Consumers' Satisfaction with the Automotive Product Quality. International Journal of Environmental and Science Education, 11(16), 8726–8739.
3.Anil, A. P., & Satish, K. P. (2016). Investigating the relationship between TQM practices and firm's performance: A conceptual framework for Indian organizations. Procedia Technology, 24, 554–561. https://doi.org/10.1016/j.protcy.2016.05.103
4.Balinado, J. R., Prasetyo, Y. T., Young, M. N., Persada, S. F., Miraja, B. A., & Redi, A. A. N. P. (2021). The effect of service quality on customer satisfaction in an automotive after-sales service. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 116.
5.Barcelona, A. H., Gungon, A. C., Laylo, J. G. C., Panganiban, J. M., Amanollah, M. S. S., & Altarejos, M. P. O. (2025). Assessing the extent and effectiveness of inventory management practices of auto supply businesses: A workbook for success. Journal of Interdisciplinary Perspectives, 3(1), 1–1.
6.Beamon, B. M. (1999). Measuring supply chain performance. International Journal of Operations & Production Management, 19(3), 275–292. https://doi.org/10.1108/01443579910249714
7.Blackburn, J. D., Elrod, T., Lindsley, W. B., & Zahorik, A. J. (1992). The strategic value of response time and product variety. In Manufacturing Strategy––Process and Content. Chapman and Hall.
8.Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision-making units. European Journal of Operational Research, 2(6), 429–444. https://doi.org/10.1016/0377-2217(78)90138-8
9.Christopher, M. (2016). Logistics and supply chain management. Pearson UK.
10.Chougule, R., Khare, V. R., & Pattada, K. (2013). A fuzzy logic-based approach for modeling quality and reliability related customer satisfaction in the automotive domain. Expert Systems with Applications, 40(2), 800–810.
11.Esteban-Lloret, N. N., Aragón-Sánchez, A., & Carrasco-Hernández, A. (2018). Determinants of employee training: Impact on organizational legitimacy and organizational performance. The International Journal of Human Resource Management, 29(6), 1208–1229.
12.Fakiruddin, N. A., Wagih, H. A. A., & Faris, W. F. (2010). A study of customer satisfaction of an automotive company in Malaysia. International Journal of Asian Business and Information Management (IJABIM), 1(2), 24–31.
13.Gažová, A., Papulová, Z., & Smolka, D. (2022). Effect of business process management on level of automation and technologies connected to industry 4.0. Procedia Computer Science, 200, 1498–1507.
14.Hara, T., & Arai, T. (2011). Simulation of product lead time in design customization service for better customer satisfaction. CIRP Annals, 60(1), 179–182. https://doi.org/10.1016/j.cirp.2011.03.092
15.Izogo, E. E., & Ogba, I. E. (2015). Service quality, customer satisfaction and loyalty in automobile repair services sector. International Journal of Quality & Reliability Management, 32(3), 250–269.
16.Kim, S. W., & Narasimhan, R. (2002). Information system utilization in supply chain integration efforts. International Journal of Production Research, 40(18), 4585–4609.
17.Kshetri, N. (2018). Blockchain’s roles in meeting key supply chain management objectives. International Journal of Information Management, 39, 80–89.
18.Kushwaha, G. S., & Sharma, N. K. (2016). Green initiatives: A step towards sustainable development and firm's performance in the automobile industry. Journal of Cleaner Production, 121, 116–129.
19.Lin, R. J., Chen, R. H., & Huang, F. H. (2014). Green innovation in the automobile industry. Industrial Management & Data Systems, 114(6), 886–903.
20.Miguel, P. M. D., De-Pablos-Heredero, C., Montes, J. L., & García, A. (2022). Impact of dynamic capabilities on customer satisfaction through digital transformation in the automotive sector. Sustainability, 14(8), 4772.
21.Nallusamy, S. (2021). Performance measurement on inventory management and logistics through various forecasting techniques. International Journal of Performability Engineering, 17(2), 216.
22.Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17, 460–469.
23.Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63(4_suppl1), 33–44.
24.Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12.
25.Poudel, S. (2019). Customer satisfaction in automobile industry: A case study on customer satisfaction on automobile industry in Nepal.
26.Rehman, A. U., & Shakeel Sadiq Jajja, M. (2025). Strategic adaptation in the electric vehicle supply chain: Navigating transformative trends in the automobile industry. Journal of Enterprise Information Management.
27.Saberi, S., Kouhizadeh, M., Sarkis, J., & Shen, L. (2019). Blockchain technology and its relationships to sustainable supply chain management. International Journal of Production Research, 57(7), 2117–2135.
28.Sharif, S., Lodhi, R. N., Ahmad, W., & Iqbal, K. (2021). Provider–recipient dyadic interactions: Impact of service quality on customer behaviours using a multi-modelling approach. Global Business Review.
29.Sharif, S., Lodhi, R. N., Ahmad, W., & Iqbal, K. (2025). Provider–recipient dyadic interactions: Impact of service quality on customer behaviours using a multi-modelling approach. Global Business Review, 26(4), 876–899.
30.Tsoukatos, E., & Rand, G. K. (2007). Cultural influences on service quality and customer satisfaction: Evidence from Greek insurance. Managing Service Quality: An International Journal, 17(4), 467–485.
31.Venkatasudhahar, M., Poornachandrika, V., Prakash, D. S., & Raja, N. D. (2023). Quality transformation to improve customer satisfaction: Using product, process, system, and behaviour model. International Journal of Quality Engineering and Technology, 9(2), 85–96.
32.Zygiaris, S., Hameed, Z., Ayidh Alsubaie, M., & Ur Rehman, S. (2022). Service quality and customer satisfaction in the post pandemic world: A study of Saudi auto care industry. Frontiers in Psychology, 13, 842141.


