Contribution of Customer Satisfaction of After-Sale Service - Dissertation Example

?The contribution satisfaction of after sale service Table of Contents Rationale and context 3 2. Research questions 4 3. Research Ethics 4 4. Literature Review 5 5. Research plan 8 6. Personal learning statement 10 Reference 11 Bibliography 12 1. Rationale and context The main objective of this project is to identify what services Audi provide after sale service, and which areas of the services could be improved in the opinion of the customers. Audi is a premium car brand from the stable of Volkswagen. Volkswagen is a German automobile manufacturing company and is one of the largest car manufacturing companies in the world. The stated vision of Audi is “Audi – the number one premium brand”. As per a strategy document released by Audi named Strategy 2020, Audi aims to achieve the leadership position in premium segment, and wants to consolidate its leadership position in that segment (Audi USA, 2009, p.27). After sales service is one of the most important factors influencing brand loyalty. According to a survey conducted by Bain and Co, “one of the most powerful techniques for converting buyers into die-hard fans is providing exceptional after-sales service” (Flees & Senturia, 2008). This report will aim to evaluate the existing customer satisfaction level of Audi customers, identify how critical is after sale service towards overall satisfaction, and identify possible areas in after sale service where there is a scope of improvement. These will be evaluated by analysing data collected by administering a questionnaire to the customers who come to the Audi dealer for after sale service. This questionnaire will capture both qualitative and quantitative data. The data collection process will also include interviewing customer facing staff in the dealership and the service manager of the dealer shop. I will be able to have access to Audi Company through my friend who holds a position as a service manager. I will be able to provide a confirmation letter from the company with their approval, in order to carry out the project research proposal. 2. Research questions Explanatory Objectives RQ1: Investigate levels of customer satisfaction with Audi? (This objective will assess and quantify the level of satisfaction that an Audi customer has.) RQ2: Which specific factors in the provision of after sales service affect customer satisfaction? Explanatory Objectives RQ3: identify main reasons for low customer satisfaction of after sales service RQ4: identify the factors that influence customer service from after sales service Developmental Objectives RQ5: evaluate methods that can potentially improve customer satisfaction 3. Research Ethics “Ethical issues are present in any kind of research. The research process creates tension between the aims of research to make generalizations for the good of others, and the rights of participants to maintain privacy” (Orb, Eisenhauer & Wynaden, 2001, p.1). The entire data collection process will be voluntary in nature where all respondents, including customers, dealer staff and the service manager, will share their responses after explicitly agreeing to participate in the survey. Before the survey is conducted, each respondent will be informed about the nature and goal of the survey. Each respondent will be informed about their nature of involvement in the survey process. Additionally, each respondent will have the right not to participate further at any point of time. Individual responses as well as the final results of the survey will kept strictly confidential, and all response forms as well as stored data will be destroyed once the analysis is completed to ensure complete privacy of participants. 4. Literature Review RQ1: Investigate levels of customer satisfaction with Audi? There are a multitude of factors that influence the levels of customer satisfaction for a premium, life style brand like Audi. Audi, as discussed above, is a premium car brand that sells high value cars. Till the late 1990s after sale service had been viewed by manufacturing companies primarily as a “necessarily evil”. However, companies have increasingly realized that after sale service market can be 2 or 3 times bigger than original product market itself. This has lead to a dramatic shift in the orientation of manufacturing companies. Additionally, companies have evolved from being internal facing, product centric organisation to external facing, consumer facing companies (Lele, 1997). RQ2 which specific factors in the provision of after sales service affect customer satisfaction? Some of the major factors in after sales service that affect customer satisfaction are delivery, installation and warranty. These factors constitute an important component of the after sales services in organisations which keeps the customer satisfied and delighted. Delivery of services at the right time, right place and right price are some of the factors of importance to the customers. It is seen that customers greatly rely on the prompt delivery of the services. Their level of satisfaction is also influenced by the installation response to be made according to requirements and specifications. Also, the services provided should be of good quality and provide guarantee for a certain time period. It is crucial for an organisation to look at these factors efficiently and professionally as it helps in enhancing the company’s goodwill and reputation. Enhanced level of satisfaction among the customers results in making the company most talked about among competitors and consumers. The above three factors in after sales service is of utmost importance for the manufacturers as well. This is because it helps to gain customer loyalty which consequently influences their relationship with the customers. This helps to strengthen the customer base and create a long lasting and profitable relationship with them (Shaharudin, Yusof, Elias & Mansor, 2009, p.6). RQ3 identify main reasons for low customer satisfaction of after sales service Customer satisfaction is said to be transitory, i.e. it tends to ebb and flow based on its latest experience with the organisation. Untimely delivery of services or improper service deliveries are some of major factors which can leave the customers dissatisfied. Customer satisfaction or dissatisfaction is a state of the mind and not regarded as an action. Dissatisfaction generally results in decreased purchases, decreased loyalty and ill word-of-mouth recommendations (Larreche, 2008, p.156). RQ4 identify the factors that influence customer service from after sales service Customer service remains confined to providing the information and education to the customer. This requires showing professionalism and expertise in making the transaction easy and fast. It also includes taking the ownership of the promises made by the organisation. Customer service plays special role in meeting the demands of the customer when the need arises. It is different from after sales services on the ground that it ends as soon as the transaction is over. On the other hand, after sales service begins from where the customer service ends. It is primarily important for organisations selling physical products like cars, mobiles, televisions, etc (Andrews, 2007, p.215). RQ5 evaluate methods that can potentially improve customer satisfaction Customers perceive an organisation through the way they respond to the service requests. One way of gaining their confidence is to rectify the unfavourable feelings that the customer might have towards the company’s product. This is especially applicable for the service industry. An example may be provided in this regard. Very often, hairdressers are found to be calling up the customer to find out if he or she was satisfied with the last service that was provided. He proposes to make modifications in case the customer is not satisfied. The computer engineer might call up the customer to find out if the machine was functioning and performing to his satisfaction. The same holds true for the guest relations executives who call up the guest to find out if he or she was satisfied with the service. Another way of gaining customer loyalty would be to ask him for his views or suggestions to improve their service. The customer feels free to provide his opinion and feel satisfied with the response (Andrews, 2007, p.215). 5. Research plan 5.1 Research Approach The research approach will involve a combination of quantitative as well as qualitative research methods. The qualitative data required for this project will be sourced from three sources – open ended questions in the survey questionnaire and interviews with client facing service staff and the service manager. There will be a pre defined set of topics that will be covered in each interview, thereby giving a structured approach to the interview. However, the respondents will also be free to comment and discuss on any topic relevant to the research topic. The consent for interview is given in Annexure 1. Data for Quantitative research will be captured through filled up questionnaires. Apart from the interview and open ended questions, the respondents will be administered questionnaires containing multiple choice questions, list questions and scale questions. Having a limited array of questions will help respondents structure their responses and will result in more homogenous data. 5.2 Data Collection Procedures The planned respondent set for filling out the questionnaire includes existing buyers of Audi car from the given dealer. Audi being a premium, life style product, it is expected that the customers will be people who have been professionally successful in life and have a busy schedule. As such, a highly courteous approach would be adopted while interacting with then and recording their responses. The data collection methods for the open ended questionnaire would consist of a focused group interview technique. Use of an open ended questionnaire would help in a better analysis as it would not limit the respondent with regards to the degree of information to be provided by the chosen respondent. The use of the focus group interview technique would help in better interactions with the respondent and the researcher as well as the researchers themselves. This would help in gathering more comprehensive information about the chosen research question (Vaughn, Schumm & Sinagub, 1996, p.18). The closed ended questionnaire would have questions that would help in quantitative analysis of the data. The closed ended questionnaire would have multiple choice questions that would help to quantify the given set of data or information (Kumar, 2010, p.170). This would help in undertaking a statistical analysis from software packages like SPSS and Microsoft Excel. It would also enable a hypothesis testing that would help in a better analysis of research question. 5.3 Sampling Methods and Methods of Analysis The sampling process constitutes the techniques used to select the respondents for the research question. In the research study a probability based sampling technique would be used. A simple random sampling technique would be used to conduct the sampling process. This technique is based on the fact that every sample has an equal probability of getting selected for the study. In this particular case this would imply that every individual in the population has an equal probability of getting selected for the study (Babbie, 2010, p.211). 5.4Draft questionnaire and interview discussion The draft questionnaire has been shown in the annexure. Two sets of questionnaires would be prepared. The first would have open ended questions that would be used in analyzing the data qualitatively. The second questionnaire would have closed ended questions that would be used to undertake a quantitative analysis. Use of a mixed research methodology would help in generating a better set of responses which would be beneficial to analyze the research question. 6. Personal learning statement The project helped in the practical analysis of one of the most important dimension in service marketing i.e., after sales service. The literature review helped in gathering valuable information about the topic of the study. Hence it was possible to correlate the theoretical aspects with a practical business scenario. Moreover the use of a primary research methodology also provided a good understanding of the research question and how to analysis data that is available directly from the market. This also helped in the learning process as it helped in practical implementation of various tools and models. The amalgamation of primary and secondary research techniques helped to learn the technique of analyzing a potentially important aspect of service marketing which is essential for business organizations to remain profitable in the business markets and to attain long term sustainable competitive advantage in a turbulent business environment. 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