Beruflich Dokumente
Kultur Dokumente
LOYALTY
By
Waqar Ahmad
2013-15
Certificate of Approval
Supervisor
Name: Ms. Sonia Asmat
Designation: Lecturer
Signature: _________________
Declaration
Dedication
This Research is dedicated to my Parents, Friends and respected teachers for their
patience and support.
Abstract
Satisfaction of customer is the main goal of every company to make them their loyal
customers and retain them for a longer period. Today due to increase in competition
the focus of organizational leaders shifted from profit to satisfaction of customers.
The main focus of this research is to study the influence of post purchase services on
the Customer's loyalty. The total number of the selected sample size was one hundred
and fifty in which one hundred and twenty seven respondents took active part in the
research study. The data was collected through convenient sampling technique from
the potential respondents were the citizens of Peshawar. The data for this research
study was gathered by using five point likert scale questionnaire which was personally
distributed among the selected sample size to know about their understandings and
views related to the Customers Loyalty and After Sales Services. The results of the
analysis conclude that After Sales Services of a company plays crucial role in
increasing the brand loyalty of customers to repurchase their products and services as
there is positive relationship and significant positive impact of the After Sales
Services and Brand Loyalty. During the collection of data it has been observed that
the customers are more attracted towards those products on which most of the
customers rely and are also willing to pay premium prices for those products with
which they were getting after sales services.
Acknowledgement
Waqar Ahmad
Table of Contents
Declaration......................................................................................................................i
Dedication......................................................................................................................ii
Abstract.........................................................................................................................iii
Acknowledgement........................................................................................................iv
Table of Contents...........................................................................................................v
Chapter-1 Introduction...................................................................................................1
1.1 Background..........................................................................................................1
1.2 Identification of Problem:....................................................................................2
1.3 Problem Statement:..............................................................................................2
1.4 Research Question:...............................................................................................3
1.5 Rationale of the Study:.........................................................................................3
1.6 Objectives of the Study:.......................................................................................3
1.7 Scope of the Study:..............................................................................................4
Chapter- 2: Literature Review........................................................................................5
2.1 After Sale Service:................................................................................................5
2.1.2 Objectives of A.S.S.......................................................................................5
2.1.3 Important Components:.................................................................................7
2.1.4 Problems in the Outsourcing of after Sale Services....................................10
2.2
Customer Loyalty:.........................................................................................11
Chapter-1 Introduction
1.1 Background
Satisfaction of customer is the main goal of every company to make them their loyal
customers and retain them for a longer period. Today due to increase in competition
the focus of organizational leaders shifted from profit to satisfaction of customers
because every organizational leaders accept that when they will become able to satisfy
their existing customers they will be also able to attract other potential customers in
market. the organizational leaders also accept that for the survival in market and to
compete rivals maintaining loyal customers become very important because only
loyal customers can help them out in maintaining their market position by promoting
a products and services through positive word of mouth advertisements which force
them to also use such brands. Due to this way organizations may also decreases their
cost on advertisement and other un necessary expenses. Pakistan has developing
economy and every business leader consider it as an important location for growing
their business orperations. For this purpose from the past few years many
multinationals have started their operations and bring dramatic change and boost in
the competition of every industry by introducing new and techniques of customers
satisfaction. It also shift the main focus of beurocrates and business leaders from
profit maximization to customers satisfaction and retention. Every company is in
search such ways which enable them to build and maintain good relationships with
customers. Companies are continuously customizing their offerings through adopting
different marketing strategies according the needs and required standards of
customers. Increase in compaction and market saturation for every single need there
are a lot of products which make the purchase decision of customers more complex
therefore they usually go for such products in which they feel more ease. After sale
services is an innovative and unique marketing strategy and has a great potential to
attract more customers toward products.
can help out the organizations to increase the loyalty of their potential
customers and also attract secondary customers towards their products to
maximize their sales.
Brand image.
Trust and
Credibility.
The author also discussed that through these three pillars companies become able to
build long lasting relationships with their customers and want to make them their
loyal customers to hold their market position. Moreover when once an organization
become successful in building and maintain good relationships with their customers
they become able to continuously increase their sales and market shares (Murthy,
2004). The author also argued that through building good relationships with
customers also help out an organization to efficiently cut down their costs i.e on
advertisement.
Forooz, (2006) also found that by providing after sales services enhances:
Competitive Edge.
Customers Satisfaction.
Retention of Customers.
Cost minimization.
Meeting the expectations and required standards of customers enhances their level of
satisfaction and also streamline the management of services (Gaiardelli, 2007). The
author also explained that providing post purchase services to customers enable an
organization to increase their sales maximize their profit. Ladokun, (2013) also states
that when a customer purchase a product of a company and services are provided to
them they feel more satisfied and their intentions to use their other brands also
increases. As Alireza, (2011) also identified that providing services after the sales of
products or services decreases the chances of customers dissatisfaction because after
the purchase of the products when they face any problem in its operations or if there
comes any defect and receive late or no response from a company their level of
dissatisfaction tends to be increased .
By providing after sales services to customers their loyalty towards particular brand
increases (Hallowell, 1996). Furthermore for building good relationships with
customers and for gaining their loyalty it is very important to provide after sales
services to customers (Martisiute, 2010). The author also found that when a company
fails to provide efficient services after the purchase of a product their level of
dissatisfaction tends to be increased and they start search for other possible alternate
solutions and also promote the products of company through bad word of mouth
which becomes the cause of company failure.
2.1.3 Important Components:
The following important components of post purchase services are: (Goffin, 1999)
2.1.3.1 Installation:
because they increase the durability of the products which can be also a significant
source of revenue. Providing the up gradation option the manufacturers of original
equipment have the competitive advantage because they have the complete records
that where the equipment has been sold.
Instead of the above factors of after sales services of Goffin, (1999), Potluri, (2010)
also identified that there are the also following major tasks or factors that are related
to the after sales services:
2.1.3.6 Provision of Information:
It refers to the
Its Availability.
Time of Delivery.
Cost.
Repair and maintenance is also one among the important factors after sales service
which is provided to customers in response of their problems faced in products.
Providing the repair and maintenance facility to customers increases their satisfaction
level and also increases their intentions to purchase a product or services.
incompetent database and a very poor quality of customer data because they usually
do not have frequent interaction with their customers (Irini, 2008).
2.2
Customer Loyalty:
The loyalty of a customer with a brand refers to the level at which a customer want to
repurchase and recommend same product or service for a same need again and again.
Oliver, (1999) also defined the loyalty of customers with a brand as it representation
customers indentations to re purchase a product or service in future despite there are
situational influence and marketing efforts having the potential to cause
switching behaviour. Kotler define the term loyalty as it refers to the lasting
commitment of an individual to their friends, family or their country while in the
literature of marketing it usually refers to the most preferred brand of an individual
which they are willing to re purchase again and again (Tavana, 2013). Furthermore
the author also argued that in the relationship marketing it has often been found that
the loyal customers are more profitable and also attract other customers towards their
favourite brands. Vazifehdust, (2012) argued that good relationships with customers
usually make a chain that starts from their perceived value which they have in their
mind regarding the product or services. The author also argued that when a product or
services have an ability to efficiently meet that perceived value customers are willing
to re purchase and use companys offerings in a longer run. While in contrast when a
product or service do not have ability to meet the perceived level of customers the
customers are not willing to re purchase a product or services, therefore it is very
important for every company to build a brand trust by making good relationships with
them to efficiently analyze the needs and wants of their customers to make them loyal
customers to their brands. Palmer, (2005) also argued that the customer loyalty with
brand is the main key towards the success and failure of every company which can be
only achieved by providing the desired level of quality products and services to them
that have an ability to efficiently satisfy their needs and wants. The author also argued
that when once a company increase a number of their potential customers their cost
continuously decreasing and they are able to increase their sales volume, revenue and
profit margin. Oliver, (1999) states that loyalty is a continuous process that starts from
some cognitive beliefs and ends on the final purchase. Increasing customers
satisfaction level helps in making them loyal to specific brands is the main important
objective of relationship marketing (Kumar, 1999). Initially in the literature the main
focal point of marketing researchers were to understand customers to become able to
efficiently satisfy their needs and wants to compete their competitors while in recent
literature it has been observed that relationship marketing is the main key of
increasing the customer loyalty and found as an important determinant of long term
profitability (Akrofi, 2013). Aggarwal, (2013) found that in todays highly
competitive and highly turbulent environment only those companies can survive who
have an ability of making their customers more loyal by providing them quality
products and services. As Afzal, (2010) also found that according to customers quality
of a product or service is high when it have an ability to efficiently satisfy their needs
for which they have purchase it. The organizations strengthen their relationship with
the customers by satisfying their needs and wants efficiently make them the loyal and
primary customers of the company who then influence the secondary customers to
purchase the product of the company which increase their sales and revenue (Chen,
2007). Furthermore he also argued that maintaining a good interactive relationship
with the satisfied customers by offering them such type of products or services which
have the ability to efficiently satisfy their needs and wants which build good image of
the companys products and services in the mind of other customers which can
efficiently maximize their sales and profit margin. Through relationship marketing
when the once the company becomes successful in building good relationship with
their customers their number of potential customers increases (Gilaninia, 2012).
Because when the customer use the product or avail the services of their company and
their need has been efficiently satisfied they becomes the loyal customers of the
company and also promote their products and services through word of mouth and
also attract other customers towards their offerings. As (Gommans, 2001) argued that
in todays era the customer satisfaction helps an organization to remain in market for a
longer period and also helps them to increase their shareholders wealth. Furthermore
he also argued that customers are willing to use a product for a longer period of time
when the quality of products and services is according to perception. Every company
want to increase their number of potential customers and maximize their shareholders
equity (Parvatiyar, 2001). When once a company becomes successful in building good
brand trust their number of potential customers increases (Haq, 2012). As Verhoef,
(2003) argued that in todays era the customers loyalty helps an organization to
remain in market for a longer period and also helps them to increase their
shareholders wealth. Furthermore he also argued that a customer will use a product
for a longer period of time when quality products and services are provided to them.
2.2.1 Types of Customers Brand Loyalty
2.2.1.1 Attitudinal Loyalty
It refers to the psychological commitment of a customer (Odin, 2001). Furthermore
the attitudinal loyalty of a brand usually increases after the efficient solution of a
problem that cause after the usage of a product or services. Means when a customer
face any problem and for the solution of that specific problem when they use any
specific product and their need satisfied they are willing to use that product in future.
Mao, (2010) also study attitudinal loyalty and concluded that it is the analysis of
consumers attitude that develops due to their psychological loyalty with the brand.
2.2.1.2 Behavioural Loyalty
It is the representation of the results that can be easily observed due to the attitudinal
loyalty of a customer (Mahmud, 2012). Akhter, (2011) define the term behavioural
loyalty of a customer as it is the repurchase behaviour of a customer and also known
as the purchase loyalty of a customer. Means when a customer purchases a same
brand for a specific need again and again. It is the representation of the behaviour of a
customer that which brand they prefer and why they are using a specific product or
services for a same need (Nawaz, 2012).
2.4 Hypothesis
H1: Significant relationship exists between After Sales Services & Customers
Loyalty with brand.
Chapter-3: Methodology
3.1 Sample:
The total number of the selected sample size was one hundred and fifty in which one
hundred and twenty seven respondents took active part in the research study. The data
was collected through convenient sampling technique from the potential respondents
were the citizens of Peshawar because it will become very difficult to gather and
compile data in other sampling techniques i.e random sampling technique.
3.3 Procedures:
From the secondary sources five point lickert scale questionnaire was designed and
distributed among the selected sample size to understand their concern related to after
sales Services and also its influence on Customers Loyalty. After receiving the
response of potential respondents through questionnaires the collected qualitative data
has been converted to quantitative data through SPSS to further analyze the responses
of responses and reach to final conclusion.
Male
Female
Total
Cumulative.
Percentage
Percentage
Percentage
84
66.1
66.1
66.1
43
33.9
33.9
100.0
127
100.0
100.0
Valid.
F
Valid.
Fig 4.1.1
The above table and figure shows the frequencies related to the gender of respondents
that the total number of respondents were One Hundred & Twenty seven respondents
.
in which 84% respondents were male and 33.9% were female respondents.
.
Table 4.1.2
Age
F
.
Valid
.
Percentage
Valid
Percentage
Cumulative
Percentage
Below__25
13
10.2
10.2
10.2
25__30
17
13.4
13.4
23.6
31__35
43
33.9
33.9
57.5
36__40
35
27.6
27.6
85.0
41 & Above
19
15.0
15.0
100.0
Total
127
100.0
100.0
Fig 4.1.2
The above table and related pie chart is showing the frequencies related to the age
group of respondents. From the above table it has been concluded that out of total one
hundred and twenty seven respondents 10.2% were in the age group of below 25
years, 13.4% were from 25__30, 33.9% were from 21__35, 27.6% were from 36__40
and 15.0% were from 41 and above.
Table 4.1.3
Education Level
Valid
Percentage
.
Valid.
Graduation
Masters
Others
Total
Percentage
Cumulative
Percentage
.
22
17.3
17.3
17.3
68
53.5
53.5
70.9
37
29.1
29.1
100.0
127
100.0
100.0
Fig 4.1.3
The frequencies and pie chart is related to the level of education of respondents which
shows that out of total one hundred and twenty seven respondents 17.3% have
completed their bachelors degree while 53.5% respondents have completed their
master degrees and 29.1% respondents have done diplomas and other studies.
Variable
Cronbach's Alpha
N of Items
0.824
13
Customers. Loyalty
0.750
10
Overall
0.887
23
The reliability analysis is used for the checking significance level of the questionnaire
that either the elements that was adopted for the questionnaire were relevant to the
variables or not? From the results it is concluded that all the items of the questionnaire
are relevant because the cronbachs alpha is 0.887>0.6.
4.3 Correlations:
Table 4.3.1
(CORRELATIONS)
A.S.S
A.S.S
C.L
.814**
Pearson Correlation
Sig. (2-tailed)
N.
C.L
Pearson Correlation
Sig (2-tailed)
N.
.000
.
127
.814**
.
127
.000
.
127
127
4.4 Regression:
Table 4.4.1
(MODEL SUMMARY)
.
Model
R Square
.814a
.
.662
.
Adjusted R
.
Square
.659
.
Estimate
.32380
.
Table 4.4.2
(ANOVAb)
.
Sum Of
.
(Model)
Squares
1. (Regression)
.
(Residual)
(Total)
Mean
df
Square
Sig.
25.647
244.620
.000a
13.106
125
.105
38.753
126
25.647
.
Table:4.4.3
(COEFFICIENTSa)
Unstandardized
Coefficients
Model
Std. Error
(Constant)
.907
.195
A.S.S
.773
.049
1.
Standardized
Coefficients
Beta
.814
.
4.654
.000
15.640
.000
Sig.
the number of their loyal customers efficiently compete their competitors and
becomes a market leader.
5.2 Recommendations:
As there is a strong impact of the After Sales Services on the Brand Loyalty of
customers therefore, the companies should focus more on the strategy of post
purchase Services to customers to attract other potential customers in market towards
their offerings to make them their loyal customers more efficiently.
With the implementation of this research study manufacturing companies of Pakistan
will be able to efficiently attract maximum customers. Furthermore with the help of
this research organizations and companies will become able to keenly focus on their
primary customers because when the needs and wants of the primary customers are
satisfied in an effective manner they advertise the company products and services
through positive word of mouth. It will intern enable them to decrease their extra
costs and increase their sales and revenue which will also help them in maximizing
their shareholders wealth.
5.3 Limitations:
The size of the sample for this study was very small and only one variable has been
studied, however there are a lot of other variables such as customers relationship
management which may also influences on the customers loyalty with brands. The
data was collected from only one city of Pakistan.
References
Investigation
in
Life
Insurance
Context.
Journal
of
Appendix
Name: _____________________________
Gender:
Age:
Male
Female
Education Level:
Graduation
Others
Belo
w 25
36-40
25-30
41
&
Above
31-35
Masters
1 2 3 4 5
Statements
The company has sufficient range of electronic products.
Customers Loyalty
Company never fails to fulfil expectations.
Company has never disappointed so far.
Decision to choose this company for electronic products was wise.
The company always point out the best alternatives.
The company provide appropriate response when I face any problem in purchased
product.
Company deserves repeat purchasing and recommendations.
I have a strong sense of belongingness to the company.
I am willing to stay with the company because it provides greater benefits in
comparison of other available options.
Company can be trusted in what it says and does.
1 2 3 4 5