Impact of Service Quality of ORIX Leasing Pakistan on Customer's Satisfaction

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1. INTRODUCTION
ORIX Corporation is a group of financial services providers, it is
based in Tokyo, Japan. They provide innovative value added products and
services to both corporate and retail customers.
With operations in 26 countries and regions worldwide, ORIX's
activities include corporate financial services, such as leases and loans, as
well as automobile operations, rental operations, real estate related finance,
real estate development, life insurance and investment banking.
ORIX is listed on TOKYO and NEW YORK Stock Exchanges.
ORIX has expertise its leasing services with specialized capabilities in
various kinds of financial transactions as well as managing its tangible
assets.
The main focus of ORIX is to get new business opportunities by
keeping themselves a step ahead from competition, which is their ability and
strength as well.
ORIX has achieved sustained growth in earnings over the years by
setting new profit-earning opportunities by their specialized leasing
capabilities.

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2. VISION:
“ORIX aims to maximize shareholders' value by drawing on its
extensive array of specialized capabilities to continuously provide their
customers with value added financial solutions.”
3. MISSION:
ORIX seeks its development through domestic and international
presence by constantly anticipating and monitoring emerging trends and
offering new and innovative products that create real and lasting value for
their customers.
ORIX pioneers, introduces and offers value-added products which are
not only competitive in terms of desirability and price, but also fulfill the
needs of their customers by consistently increasing their value to them as an
efficient source of financial services.
ORIX makes all efforts in enhancing superior professional
competencies by creating a culture that fosters openness and innovation,
promotes individual growth and at the same time rewards initiative and
performance.
ORIX contributes to society through participation in poverty
alleviation programmes, provision of financial assistance at grass roots level
and assistance to charitable causes.

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4. ORGANIZATIONAL STRUCTURE:

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5. EXPANSION STRATEGY:
“A growth strategy in which an organization targets existing products
to new markets, market development by targeting new geographic markets,
new demographic or psychographic segments, or totally new users.”
ORIX expanded itself in new market by the means of Orient Leasing
(PVT) Limited in 1986 from Pakistan. At that time they had 14 staff
members and paid up capital of Rs. 10 million. They quoted themselves as a
public limited company in Karachi, Lahore and Islamabad Stock Exchanges.
Now they have more than 30 offices countrywide and 5 associated
companies in Middle East, North Africa and Central Asia Region. This is a
unique position ever attained by a Non-Banking Finance Company in
Pakistan.
6. ADVERTISING STRATEGY:
“A campaign developed by a business to encourage potential
customers to purchase a good or service. An advertising strategy is generally
tailored to a target audience perceived to be most likely out of the population
to purchase the product. Advertising strategies include elements such as
geographic location, perceived demographics of the audience, price points,
special offers, and what advertising media, such as billboards, websites, or
television, will be used to present the product.”
The ways of advertising of ORIX is internet and social media and
different banners in different companies associated with them and lease their
products.

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7. SERVICES OF ORIX
Orix is involved is providing following services:
Certificate of Deposit
Astute savers invest in ORIX Certificates of Deposit (CODs). Service,
Security and Stability are the hallmarks of ORIX CODs. Competitive
returns, reliable service and firm commitment provide the investors peace of
mind throughout their tenure of deposits with us.
ORIX’s AA+ long term entity rating and A1+ short term entity rating
from (updated in January 2015) is an endorsement of our financial stability.
ORIX CODs offer flexible investment options with maturity terms
ranging from 30 days to ten years and profit payments can be periodic or
accumulated till maturity.
Innovation and value addition are regularly made to our deposit
schemes to provide our investors best value for their money.
Another value added service provided to our investors, is
complementary accidental hospitalization and accidental life insurance cover
for the investors.
Micro Finance
ORIX provides reliable short to medium term financial products for
the establishment and growth of micro businesses and enterprises. The
microfinance programme is targeted to strengthen the economic base of

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urban and rural poor by increasing income earning members of a
community.
Agri. Lease
It is time to cultivate your potentials and reap the harvest of your
profits. With ORIX Agri Lease, mobilise the benefits of modern technology
and move towards greater productivity.
ORIX’s Agri Lease makes tractors and harvesters affordable for
farmers through easy instalments and simple paperwork. At a time when
increasing agricultural output is a national priority, ORIX aims to be your
partner in this green revolution.
Corporate Lease
The cornerstone of ORIX business activities, the finance lease, offers
one of the most cost effective tailor made financial packages available in the
market. ORIX Corporate Lease Division offers lease financing options on
both medium and long terms basis for plant and machinery, vehicles and
office automation products. We approach each prospective lessee with
individualized care and provide personal service to structure a lease
according to the lessee’s requirements.
The finance lease is founded on the truism that profits are earned
through usage and not through the ownership of an asset. It was this very
concept that fuelled modern lease financing as an alternate method of
financing. The corporate lease at ORIX is designed to give your business an
opportunity to acquire movable and immovable assets without putting a
strain on your cash flows.

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Commercial Vehicle Leasing
As part of ORIX Corporation Japan, we have the worldwide
experience combined with local expertise and the wide spread national
network of ORIX branches, in most of the major cities and towns of
Pakistan. We offer instant access to the highly personalized service of our
professionally qualified and trained staff.
To meet growing demands of logistics and transportation in Pakistan,
ORIX has established a separate specialized Commercial Vehicle Division.
Our Commercial Leasing facility has set the highest standards of
quality, offering easy and flexible terms that can be structured to suit
specific requirements of SME's (Sole Proprietorship, Partnership and
Corporate entities). We are focusing on leasing of all types of commercial
vehicles and are providing growth opportunities to transport and logistics
business in Pakistan.
Consumer Auto Lease
ORIX Consumer Auto Division offers flexible product range tailored
to suit the specific requirements and financial needs of individual customers.
We make sure that our product portfolio is in compliance with the cash flow
requirements and the changing individual needs of our customers. Our
dedicated professional executives ensure that we not only respond quickly to
our customers’ requirements but also provide customized innovation. Our
staff has absorbed the spirit of challenge and learning, a trait that contributes
to our continuing leadership in this field.

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There is a lot of wisdom in being with ORIX. Our plans are as easy to
understand as road signs.
Operating Lease
ORIX Operating Lease Division offers the facility of renting the
equipment for the duration it is needed. The operating lease solutions
provide full use of an asset while avoid many risks associated with the
ownership of equipment such as depreciation, obsolescence and asset
disposal. An operating lease acts as a true hiring arrangement where the
rental is treated as an expense and allows equipment off balance sheet for
accounting purposes.
Islamic Financing
ORIX leasing Pakistan Limited (OLP) has established Islamic Finance
Division on April 1, 2011. OLP over the years has introduced a number of
products that cater to almost all sectors of the economy.
Our vision is to provide you with the best of both worlds by offering
you a full range of Islamic products designed for you "The Islamic Way".
OLP's Shariah Advisor Mufti Ibrahim Essa holds TAKHASSUS FIL
FIQH qualification from Jamia Darul Uloom, Karachi, under his supervision
all transactions of Islamic Division are being carried-out and he approves the
entire documentation to ensure that our valued customers receive fully
Shariah compliant products.

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8. CUSTOMER SATISFACTION
Customer satisfaction is now becoming a corporate level strategy.
Customers’ satisfaction is the base for business success. Customers’
satisfaction is corner stone for relationship between marketing and
management, and the source of competitive advantage for organizations.
There is a positive relationship between customers’ satisfaction and financial
performance.
9. SERVICE QUALITY
Quality has been defined as fitness for use, or the extent to which a
product successfully serves the purposes of consumers. Customer service is
one of the organizational processes which companies perform considering
the growing competition and for attracting entrepreneurial opportunities for
increasing profitability and better access to the market and increasing the
customer satisfaction and loyalty level. Customer service has importance
because it ends in increasing product quality, gaining competitive advantage,
gaining profitable opportunities, and as a result increasing sales and income.
Excellent quality of customer services is based upon not just the knowledge
and skills of the individual but also upon the way that the organization as a
whole, from top management downwards, pulls in the same direction and
presents a clear, positive message to customers.
The domain of the activities related to customer service is vast.
Startup services, training, maintain and repair, documentation, providing
logistic and spare parts, improving products, software services, warranty and
call center service. Presenting informational services is in the line of
informing customers about new products, information regarding service

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centers. Presenting suitable training services create possibility for increasing
the level of customer service and hence the customer satisfaction.
10. IMPACT OF SERVICE QUALITY ON CUSTOMER
SATISFACTION
Service quality holds much importance in leasing industry. The
leasing industry has evolved over the past few decades from merely the
services providing facility to an augmented combination of service
associated features. These features are emphasized to satisfy the
complementary needs of its customers. This notion of satisfaction is mainly
attributed to the quality of service. Hence a lot of probing has been going on
for the past few decades to rationalize and prove a direct relationship
between the two.
M-commerce marketing is a good idea to get the customer feedback
and expand business. Hence leasing businesses should adopt new strategies
which may help to overcome the lacking in their marketing activities in
general and customer satisfaction in particular. Indeed it has an overall
impact on firm’s performance.
Banks have their own significant role to play in the leasing system.
Various types of banks perform various functions according to their
prescribed roles defined by their memorandums and articles of association.
Central bank is the bank of the government and is required to monitor and
supervise the banking activities in a politically defined and specified
geographical region. Agricultural and industrial banks cater for the needs of

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farmers and industrialists. Commercial banks have maximum interaction
with the general public and that is why, central banks are always keen to
improve their service quality and productivity. Leasing companies like
ORIX have the affiliation and links with the all kinds of banks, so that it will
become easy for such companies to lease the variety of the products to their
ultimate customers.
The most important factor that matters a lot in today’s modern and
successful leasing business is the quality of services. Due to uniform
policies, all the leasing companies are required to offer almost same
services. Customer satisfaction is always taken as a central point in almost
all business ventures. The power of buyers matters a lot in this perspective.
Currently there are challenging times in South Asia and this also applies to
the Pakistani leasing industry. As a consequence, the profit margins of these
businesses are under pressure. Managers of these businesses do not matter
anymore how to buy their products. Loyalty to specific leasing agents is
decreasing, because these managers are always looking for low prices (with
an acceptable quality). Managers try to increase their own margin by this
strategy. Therefore the Internet technology provides a lot of transparency.
So, in general the power of buyers is increasing.
There is competitive rivalry within the industry. Inherent to the
establishment of an enormously amount of product specialized trade
companies on the Internet, the competitive rivalry is growing. The relatively
small leasing companies used the Internet to market their services. They
often have no personnel. Therefore they can use the price mechanism to
increase their customer base. And in economic challenging times, managers
of these businesses are sensitive for this.

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Customer loyalty is used among almost every profit organization. In a
normal situation each company wants to have loyal customers. ‘Loyal
customers have a high repeat purchase behavior and a positive attitude
towards a company’. A transactional marketing strategy is a business
strategy that focuses on “single point of sale” transactions. The emphasis is
on maximizing the efficiency and volume of each individual sale.
Developing a relationship with buyer was less important. This strategy
is used by almost every organization during the ‘60s till the ‘80s. In the ‘90s
researchers show that it was more profitable to retain current customers than
recruit for new customers. A reduction in customer churn with 5% will
increase the profit between 25 and 80 percent. Due the results of their study
a lot of organizations changed their strategy.
Customer retention became an important goal. The new way of
marketing strategies was called Customer Relationship Management. CRM
is a relative new marketing strategy. The strategy seeks to establish long
term relationship with its customers rather than focusing on single economic
transaction. Often the main goal in this strategy is adding value to services in
order to keep customers satisfied and loyal to the company. The underlying
thought is that the customer is the determining factor of a profitable
organization rather than a critical success factor.

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11. CONCLUSION
The links between quality, customer satisfaction and loyalty are one
of the most popular research topics among service researchers. The
importance of quality of products and services on customer satisfaction and
found out that loyal customers mostly lie in category of customers who have
used higher quality products. This implies that better quality of products
tends to increase customers‟ loyalty. Researches show that quality of
services to a customer is one of the most important factors in identifying
new customer needs and as we all know, the key to customer satisfaction
and loyalty is providing the customers with their undiscovered needs. In a
setting where companies do not depend on others to serve customers, the
customer is aware to whom his/her perception is dedicated, and the direct
link between perceived quality, customer satisfaction and loyalty is naturally
expected.