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    Services Marketing Project:

    Studying the perceptions of customers about

    female chauffeurs and factors influencing the

    perceptions

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    Contents:

    1.Introduction and Context2.Review of literature and gaps in existing literature3.Research methodology (research design, data collection

    & analytical tools used)

    4.Research Findings and Managerial Implications5.Conclusion

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    Introduction:

    Our project is related to cab services with female chauffeurs. We know that different factors

    influence the consumer buying behavior; two of such factors are culture and demographic factor

    Gender. We studied the perceptions of consumers about cab services with female chauffeursand factors that are affecting the consumer perception. The consumer is influenced by a

    multitude of cultural factors which have an implication in their preference, this is evident in the

    choice they make while choosing a service. Virra cabs was selected for the research as it is one

    of the first cabs to offer such a service and because of it being geographically located in Mumbai

    and the feasibility in commuting and participate in the primary research.

    Context:

    Taxi services in India:

    Saraswathy, M. (2011) India has different taxis like auto rickshaw, traditional taxis like Premier

    Padmini orHindustan Ambassador Motorcycle taxis in Goa and the modern taxis like radio cabs.

    Different taxis are serving different customer segments. Shared taxis are serving the needs

    of low-income or price sensitive customers, auto rickshaws and traditional taxis are serving the

    customers who want more comfort ability and able to pay more fair than the shared taxis and for

    premium customers radio cabs are available which are comfortable, air-conditioned, responsive

    and professional, and can be accessed 24/7 on a single number. The companies are also

    integrating the latest innovations into their system for attracting customers. Cab services like

    Meru Cabs, Mega Cabs, Wings Radio Cabs are few examples of popular radio cabs in India.

    Cabs for female:

    DHNS, (2012) With the increasing concern of female passengers about their safety, cab services

    like Sakha Cabs and For-She Cabs are providing services with female chauffeurs and for female

    passengers. Cabs for female became more popular with the increasing cases of violence

    against women especially in cities like Delhi and Mumbai and as more women are working in

    BPO sector where they have to work in night shifts.

    Virra Cabs:

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    For she, (2009) As an initiative towards empowerment of women, For-She Travels and Logistics

    Private limited (FTL) was promoted in February 2008, FTL is committed to train and groom lady

    chauffeurs for commercial driving and guarantees suitable earning opportunities to those who

    complete their training successfully. OAIS, one of the shareholders of FTL runs an exclusive

    Ladies Taxi Service and absorbs lady chauffeurs graduating from FTL training academy. After

    some clashes with the management Revathy Roy started her own cab service called Virra Cabs

    The sole aim of these radio taxis is to offer clean, comfortable, safe, cost-effective and proficient

    transport for ladies and their families. These taxis have wonderful service features. Some of them

    are:

    They provide Tablets, magazines and nail cutters to keep the female customers busy

    while commuting

    Smart interiors with great comfort

    Unequaled safety

    Tamper-proof electronic fare meter for smooth and accurate billing

    Feeder service to several Metro Stations throughout the city

    Panic button in case of emergency

    Nicely groomed and skilled lady chauffeurs

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    Review of Literature:

    Shelly, T. (2012) With the new workplace temporalities, there is a demand for trusted allies to

    accompany women during the night travel. This demand is fulfilled by deploying the cab as aninterface of trust between parents and employers. However, the paper has found that these safety

    measures play twin-fold role. On the one hand, they play the function of providing some tangible

    security to their women employees. On the other hand, they also contributed in the production of

    respectability for the women employees during their travel in the night hours.

    Naysmith Scott, R. C. (2012) Although there is a dearth of literature on the experiences of

    women in skilled blue-collar work in South Africa, previous studies from the developed world

    have established certain expectations for the integration of women into traditionally male-

    dominated fields; the results of this study are discussed in relation to these expectations. Findings

    suggest that women are increasingly targeted for employment, beyond the requirements of

    affirmative action legislation, due to the perception that femaledrivers are safer, more

    conscientious, less likely to endanger public safety and company property, and less likely to

    engage in risky forms of behaviour including those associated with exposure to HIV/AIDS. This

    has led some employers to conclude that the femaledrivers they employ are not only equal but

    superior to their male colleagues. While femaledrivers note challenges in gaining entry and

    acceptance in the industry, they also report a near-unanimously positive experience with

    colleagues and supervisors

    Alluri (2012) When the car is stuck in one of Mumbai's notorious traffic jams, there is a

    magazine rack at the back for some light reading.To ensure time does not have to be wasted on

    the trip, a bottle of nail varnish remover is provided to get rid of the remnants of that month-old

    manicure and nail clippers to shape fingernails.And if you are a woman rushing from one

    important appointment to another, there are wet wipes and perfumed talcum powder, too, in case

    you need to freshen up.

    Pinklady members (2006) Pink Ladies is a cab service in Britain.All Pink Ladies Cab drivers are

    ladies and are uniformed (in pink of course).Each Pink Cab has the latest GPRS vehicle tracking

    and satellite navigation.Every cab will be pink with a pink leather interior.Every Pink Ladies

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    passenger will be rung twice when the Pink Cab is two minutes away.All Pink Ladies Cab

    drivers are trained in first aid, self-defence and customer care.

    RevathiRoy(2010) commented, The banks have refused me loans on the premise that girls who

    aspire to become taxi drivers are not economically viable. They cannot offer collateral because

    all of them are from below the poverty line. The irony is that the micro-credit movement carried

    my drivers to fame and made them commercially viable. But that very institution shut its doors

    on me later when I needed money to pump into the business. I need money to survive and fend

    for the family and my crew as well Banks shut door on India's all-women cab service

    Patel (2011) All drivers, whether part of the regular cab-service or whether hired by customers as

    personal chauffeurs, go through a training program of which the company ought to be proud. For

    Rs 10,000 and over a period of three months, women at Viiras motor training school undergo

    155 hours of driving in addition to classes on road knowledge, traffic signs, martial arts,

    customer relations, etiquette and grooming. Once trained, many of these women are recruited by

    large corporations and hotels. Today, some of them can be seen at the front of a BMW.

    Alluri (2012) A recent poll also ranked India as the worst G20 country for women and cited

    gender-based violence as a major reason. Delhi is not safe for women so there are multiple cab

    services started in support of women.Sakha Consulting Wings, the company that employees

    Gautam and a fleet of other women drivers, is doing just that by increasing the number of women

    behind the wheel as cab drivers or private chauffeurs. In Sakha cabs, men cannot ride unless a

    female passenger is also present.

    Berger(1986: pg.258) indicates that the introduction of the electric starter in 1912 and the First

    World War gave women the chance to learn to drive. From this opportunity, women proved that

    they were capable of driving and taking on the responsibilities of their male counterparts.

    In conclusion, I have come to understand one possibility of how women attained the stereotype

    of being poor drivers or lacking the ability to drive well. I found evidence through articles that

    support the idea that women are equal in ability, if not better than men in driving ability. Most of

    all, I realize that sexism is still evident in many different aspects of society today

    http://www.huffingtonpost.co.uk/katherine-baldwin/g20-women-survey_b_1592519.htmlhttp://sakhaconsultingwings.com/home.phphttp://sakhaconsultingwings.com/home.phphttp://www.huffingtonpost.co.uk/katherine-baldwin/g20-women-survey_b_1592519.html
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    Research Methodology:

    1. Introduction:

    Different factors play a role in making the perception of consumer about services he is receiving

    and about those offering the services. Our project is to study perception of consumers about

    female chauffeurs and factors influencing the consumers perception. We started our project with

    three null-hypotheses and tested the three hypotheses using the statistical tool Chi-Square

    Goodness of Fit (CSGF). Following are the three null-hypotheses:

    1. Customers are skeptical(about the capability) when they prefer a cab service with female

    Chauffeur (H1)

    2. Customers who prefer a cab service with female chauffeur are those who feel the need for

    it and who sympathize with women (H2)

    3. Cultural factors play a major role while customers selecting a cab service with

    female chauffeur (H3)

    2. Research Process Flow:

    1. Discussed and finalized the topic: How the gender and culture influence the perception of

    consumers

    2. Defined the context: Analyzing the influences in the context of cab services with female

    chauffeurs

    3. Reviewed the literature: Reviewed the literature from multiple sources like EBSCO and

    Emerald to better understand the factors related to the project

    4. Defined the null-hypotheses to be tested

    5. Defined the information needed to complete the project

    6. Defined the sample size and sample resources

    7. Prepared the questionnaire

    8. Collected and organized the data

    9. Analyzed the data using statistical tool Chi-Square Goodness of Fit (CSGF)

    10.Presented the findings and interpretations

    11.Conclusion

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    3. Information needed and research sample:

    For better analysis of this project it was required both quantitative and qualitative information.

    The questionnaire used had Yes or No and Open Ended questions to find both the

    quantitative and qualitative information. We conducted survey with customers and employees of

    Viira Cabs. The total sample size is 25(random sampling) and distribution of samples is: 20 and

    5 with the customers and employees of Viira Cabs respectively.

    4. Data Analyzing using CSGF:

    CSGF is one of the most used statistical tests commonly used to compare observed data with

    data we would expect to obtain according to a specific hypothesis. We used CSGF for our

    project as different parameters related to our project are meeting the requirements that make

    CSGF a suitable testing tool:

    1. The sampling method is simple random sampling (We used simple random sampling)

    2. The population is at least 10 times as large as the sample(Customer base of Viira Cabs is

    more than 200(10*20))

    3. The variable under study is categorical(Yes or No questions to test the hypotheses)

    4. The expected value of the number of sample observations in each level of the variable is

    at least 5 (expected number of both Yes and No is more than 5)

    Steps in CSGF test:

    4.1. State the hypotheses: Every hypothesis test requires the analyst to state a null hypothesis and

    an alternative hypothesis. The hypotheses are stated in such a way that they are mutually

    exclusive. That is, if one is true, the other must be false; and vice versa. For a CSGF test, the

    hypotheses take the following form.

    H0: The data are consistent with a specified distribution.

    Ha: The data are not consistent with a specified distribution.

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    4.2. Formulate an Analysis Plan: The analysis plan describes how to use sample data to accept or

    reject the null hypothesis. The plan should specify the following elements. Significance level:

    Often, researchers choose significance levels equal to 0.01, 0.05, or 0.10; but any value between

    0 and 1 can be used. We have used significant level of 0.05. Test method. Use the chi-square

    goodness of fit test to determine whether observed sample frequencies differ significantly from

    expected frequencies specified in the null hypothesis.

    4.3. Analyze Sample Data: It involves: using sample data, find the degrees of freedom, expected

    frequency counts, test statistic, and the P-value associated with the test statistic. Degrees of

    freedom: The degrees of freedom (DF) are equal to the number of levels (k) of the categorical

    variable minus 1: DF = k1. In our case as the levels of categorical variables (Yes or No) is 2,

    DF= 1(2-1).Expected frequency counts Ei: Ei is the expected frequency count for the ith level ofthe categorical variable. Test statistic: The test statistic is a chi-square random variable (2)

    defined by the equation 2 = [(Oi - Ei)^2 / Ei ], where Oi is the observed frequency count

    for the ith level of the categorical variable, and Ei is the expected frequency count for the ith

    level of the categorical variable-value: The P-value is the probability of observing a sample

    statistic as extreme as the test statistic. Since the test statistic is a chi-square, we used the Chi-

    Square Distribution Calculator to assess the probability associated with the test statistic.

    4.4 Interpret the results: If the sample findings are unlikely, given the null hypothesis, we should

    reject the null hypothesis. Typically, this involves comparing the P-value to the significance

    level, and rejecting the null hypothesis when the P-value is less than the significance level.

    5. Limitations of the project:

    As the project involves surveying different people and there are chances that the customers

    answers may not reflect their true thoughts of or opinions about the questions asked, the

    efficiency of hypotheses testing is relied on the answers of the surveyed people. However, we

    tried our best to eliminate this gap by further asking more open ended questions in addition to the

    close ended questions.

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    Research Findings and Managerial Implications:

    Research Findings:

    We have used the following three questions to test the three hypotheses along with other

    questions for more information.

    Question to test hypothesis 1:

    1. Whom do you prefer? Male or female chauffeur?

    Question to test hypothesis 2:

    Why do you use a cab service with female chauffeur? Is it your requirement for safety or do you

    sympathize with the female chauffeur?

    Question to test hypothesis 3:

    Cab service with female chauffeur is well accepted in other countries. Do you think cultural

    differences especially related to gender influencing the preference of male or female chauffeurs?

    Testing hypothesis 1:

    Male Chauffeurs Female Chauffeurs Total

    Observed (Oi) 17 3 20

    Expected (Ei) 15 5 20

    Total 32 8 40

    Test static 2 = [(Oi - Ei)^2 / Ei ] = [(17-15)^2/15] + [(3-5)^2/5] = 1.067

    Significant level chosen = 0.05 and Degree of Freedom = 1. Now we need to check the

    significant level corresponding to test static value of 1.067 using the following distribution table.

    Chi-Square distribution table:

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    The significant level corresponding to the test static value of 1.067 lies between 0.25and 0.50

    which is greater than the chosen significant level 0.05. So, the null-hypothesis H1 is accepted.

    Testing hypothesis 2:Safety requirement Sympathy Total

    Observed (Oi) 18 2 20

    Expected (Ei) 15 5 20

    Total 33 7 40

    Test static 2 = [(Oi - Ei)^2 / Ei ] = [(18-15)^2/15] + [(2-5)^2/5] = 2.4

    The significant level corresponding to the test static value of 2.4 lies between 0.1 and 0.25 which

    is greater than the chosen significant level 0.05. So, the null-hypothesis H2 is accepted.

    Testing Hypothesis 3:

    Yes No Total

    Observed (Oi) 16 4 20

    Expected (Ei) 15 5 20

    Total 31 9 40

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    Test static 2 = [(Oi - Ei)^2 / Ei ] = [(16-15)^2/15] + [(4-5)^2/5] = 0.267

    The significant level corresponding to the test static value of 0.267 lies between 0.5 and 0.75

    which is greater than the chosen significant level 0.05. So, the null-hypothesis H3 is accepted.

    Key findings:

    Based on the survey we conducted, we found the following key findings:

    Findings from survey of customers:

    1. Nearly 85% of respondents preferred male chauffeur over female chauffeur. Also, only 35%

    of respondents agreed that female chauffeur have equal driving capabilities as male chauffeurs.

    2. Nearly 90% of customers who prefer female chauffeur said that they prefer female chauffeurs

    for safety concerns and the remaining said that they prefer female chauffeur as the sympathizewith them.

    3. Based on the customers responses we found that 80% of the respondents agreed that cultural

    factor influences in preference for the male chauffeurs over female chauffeurs.

    4. Though 80% of the female customers preferred female chauffeurs for safety reasons, only

    65% of female customers felt they are secured with the cab services with female chauffeurs.

    5. Nearly 65% of respondents agreed that female chauffeurs can manage crisis.

    6. 70% of the respondents supported the need for special cab services with female chauffeurs

    after considering the recent violent incidences on women.

    Finding from survey of cab drivers of different companies:

    1. The cab drivers were of the view that female chauffeurs are not competent enough for

    managing crises and emergency situations.

    2. The local taxi drivers (kali-pilli taxi) were particularly insecure of the female chauffeurs as

    they believe that they are a major threat to their existence as they have started offering services

    even to the male customers.

    3. About 40% of the cab drivers felt that they sympathize with the female chauffeurs and but

    they recommended that they should provide services only during daytime for their safety.

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    4. Almost unanimously everybody supported that female cabs should be there after the recent

    incidents like the Delhi rape case and they were willing to accept that more of such services

    would be coming their way in the future.

    Findings from the survey of Viira Cabs management:

    Through the interview with the management of Virra cabs the findings were as follows.

    1.The organization mainly believes in the empowerment of the women and feel that there is a

    need to provide skills to women so that they can stand on their own and earn a living.

    2. Most of the employees working here are from below poverty line families for whom meeting

    their daily needs becomes a difficult task. They hire confident women who believe that they can

    overcome the paradigm and earn a living to support their families. The organization believes in

    the customer first approach, the chauffeur are trained to be customer centric and basic etiquettes.

    3.In a country like India they do not believe in bribing so it has become very difficult for them to

    get the driving licenses and the other clearance certificates from the local bureaucrats. They

    believe that the govt. norms should be lenient and incentivizing such organizations which work

    for women empowerment.

    4.The banks in turn are themselves not supportive to such organizations because they believe that

    such a business model cannot succeed for a long time.

    5. There is dearth of investments from both venture capitalist and other investments fundingagencies which has made it very difficult for the company to scale-up its business and make it

    profitable.

    6.They have used competitor based pricing strategy charging just Rs.1 higher than Meru Cabs.It

    charges Rs.28 for the first kilometer and then Rs.21 for the rest of the journey during the day and

    Rs.35 for the first kilometer and then Rs.21 for the rest of the journey. Virra cabs also offers 10%

    discount for the senior citizens who travel by their cabs.

    7.The main reason for their losses is due to the unwillingness of women to take-up such jobs

    which are mainly dominated by men, and the problems created by the local taxi (kali- pili taxi

    called commonly) drivers. .

    8.The conservative nature of women plays a huge role in the success of virra cabs. This services

    is not preferred by women because they believe it is too costly to go for such a cab instead they

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    can go in a normal cab during the day and use such services in case of emergencies or when their

    is a threat.

    Managerial Implications:

    It is well known that different factors like cultural, social, personal, and psychological factors

    play a major role in consumers pre and post buying behavior. In our context culture especially

    gender places a major role on perception of female chauffeurs. In a country like India with

    extreme patriarchical social system the capability of women in doing jobs which are considered

    as male jobs and acceptance of women in jobs which are considered as male jobs is always

    questioned. Common person both men and women in India think that female are not capable of

    doing certain jobs like driving and women are discouraged by their families to do such jobs.Influenced by these cultural factors, even unemployed women hesitate to do such jobs. When it

    comes to the driving capabilities and safe driving, most of us have a wrong perception that male

    drivers are more capable and safer than female drivers. According to University of New South

    Wales Transport and Road Safety research whether men were drivers, passengers, motorcyclists

    or pedestrians, they were 1.6 to 1.7 times more likely to be killed on the road. According to

    Russell White, a New South Wales based driving instructor with 22 years of experience, it is

    easy to train women than men and most men irrespective of age have worse driving habits than

    women. Cab service businesses based on female chauffeurs are facing many issues in running

    and scaling-up their businesses. Managers of such companies should be able to find solutions for

    changing the perceptions of customers about female chauffeurs which are obstacle to the

    businesses. The following are the key issues associated with such cab services and suggested

    solutions for the issues.

    Changing the misperception:

    1. Companies should try to change the misperceptions of customers about the female chauffeurs

    related to driving through every form of advertising. They should emphasize how capable are

    female drivers as male drivers and how more safer are female drivers than male drivers. The

    emphasizing should be supported with statistical data and other logical supporting information.

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    2. Few of the key factors that influence the misperceptions of female chauffeurs are their

    confidence and crisis managing capability. Companies should give training to female chauffeurs

    to improve their confidence in the male dominated society and teach defense driving to manage

    the crisis. For example, For-She Travels and Logistics Private limited (FTL) is giving above

    mentioned training to its employees.

    3. Customers values personal opinions about the quality of service than any other forms of

    information. So, Word-of-Mouth (WoM) plays a major role in changing the misperception of

    customers. The companies should create positive and memorable services experiences to get

    positive WoM.

    Attracting more female chauffeurs:

    Insufficient female chauffeurs are one of the major issues faced by the cab services companies

    based on female chauffeurs. Influenced by the cultural factors most of the women are

    discouraged by their families to join as a chauffeur and many women hesitate to join as

    chauffeurs. Companies should educate the families and women how suitable are chauffeur jobs

    to the women and how these jobs can financially help them while recruiting. As per our research,

    some women are quite positive about chauffeur jobs irrespective of discouragement from family

    members and others. Companies should use the stories of such self-motivated female chauffeurs

    to encourage women who are aversive to join as female chauffeurs.

    Attracting funds:

    From our study we found that companies like Viira Cabs and Forsche Cabs are finding it difficult

    to raise funds to run their businesses. The reason for this is that funding agencies in India like

    banks believe that such business models will not successful. Asian countries like Singapore,

    Indonesia and even Egypt now have female cab drivers. However, as in India, they are still a

    small number. Companies should cite the examples of successful similar business models inother Asian countries while requesting funds from agencies and they should be able to explain

    the agencies how are their business models going to work with supporting information.

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    Conclusion:

    Cab services with female chauffeurs are quite common in western countries unlike South-Asian

    countries like India, Myanmar and Srilanka. Though preference of a chauffeur based on gender is

    unbiased in western countries, there are mixed perceptions about safe driving capabilities of

    female chauffeurs. These perceptions are based mainly on gender differences. In case of India,

    along with the gender, cultural factors play a major role in creating the perception of customers

    about female chauffeurs. These gender and cultural factors are influencing the way the cab

    services companies doing their business and in most of the times these factors are obstacle to

    scale-up their business. This is evidence from the fact that most of customers prefer male

    chauffeurs which makes the companies difficult to gain more market share and most of the

    women are hesitate to joining as female chauffeurs which is creating scarcity of required female

    chauffeurs. All these factors together created an opinion that such business models are difficult

    to survive which in turn made the companies to attract funds from funding agencies. Managers of

    such companies should follow multi-staggered approach mentioned in this article to overcome

    the issues. As society like India which is deeply enrooted with such cultural factors, the process

    of change of perception about the female chauffeurs is gradual phenomenon irrespective of

    companies efforts to overcome those perceptions.

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