After sale services, customer satisfaction and loyalty In automotive industry of Kenya

Abstract

To be successful, organizations must look into the needs and wants of their customers. Customer satisfaction is important because many researchers have shown that it has a positive effect on organization's profitability. Customer satisfaction can not only be derived from the product purchased but also from the after sale services offered by the organization. The main objective of this study was to assess whether after sale services offered to customers just after the sales stage have an effect on customer satisfaction and loyalty in the automotive industry. Data was collected from 235 after sale service customers using questionnaires, 3 after sale service technician coordinators ,3 foremen and 1 after sale service manager at Toyota Kenya, General Motors, DT Dobie, Simba Colt and Cooper Motors Corporation respectively through interview. The techniques of analysis used in this study are descriptive and regression analysis. Customer satisfaction coefficient formulae were used to measure and quantify the relationship between customer satisfaction and customer requirements as depicted in Kano's model. Results indicate that after sale services such as maintenance, spare parts supply, telephone services, warranty, car washing and documentation services have an effect on customer satisfaction and loyalty. Another indication is that after sale service satisfaction and loyalty have a positive relationship. In addition different companies provide same after sale services differently to their customers which gives a significant disparity on customer satisfaction