Effect Of After Sale Services on Customer Satisfaction and Loyalty in Automotive Industry of Ethiopia
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Date
2011-08
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Addis Ababa University
Abstract
To be successful, organizations must look into the needs and wants of their customers. Customer satisfaction is important because many researches have shown that customer satisfaction has a positive effect on organization’s profitability. Not only the product they purchase can satisfy customers, but also by the service they got from the organization. The main objective of this study is to asses either after sale services that are offered to customers just after the sales stage have an effect on customer satisfaction and loyalty in the automotive industry.
Data was collected from 167 after sale service customers through questionnaire, 3 after sale service technician coordinators and 3 foremen at Holland Car PLC and MOENCO respectively, and 1 after sale service manager in each company through interview. The techniques of analysis used in this study are descriptive (frequency, percentage, and mean) and inferential analysis (regression correlation and Chi-square test). Customer satisfaction coefficient formulae were used to measure and quantify the relationships between customer satisfaction and customer requirements as depicted in Kano’s model.
Results indicate that discovered after sale services (maintenance, spare parts supply, telephone service, warranty, car washing, , and documentation services) has effect on customer satisfaction and loyalty, and after sale service satisfaction and loyalty has positive relationship. In addition different companies provide same after sale service in different way, and the way their offer the service for their customer has a significant difference on the satisfaction of customers.
Key words: After sale service; Customer satisfaction; Customer loyalty; Kano model.
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Keywords
After sale service, Customer satisfaction, Customer loyalty, Kano model.