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This document discusses a study examining customer satisfaction with after-sales service in Karachi's automobile industry. The study focuses on the availability of spare parts, technical support workshops, and specialized hybrid engine mechanics as factors affecting customer satisfaction. A questionnaire was administered to 70 respondents and multiple regression analysis was used to analyze relationships between variables. The results showed that easy availability of mechanics has the strongest relationship with customer satisfaction levels for after-sales service. Availability of spare parts and workshops also impact satisfaction but to a lesser extent. Therefore, importers should focus on increasing mechanic availability to better satisfy customers after sales.
This document discusses a study examining customer satisfaction with after-sales service in Karachi's automobile industry. The study focuses on the availability of spare parts, technical support workshops, and specialized hybrid engine mechanics as factors affecting customer satisfaction. A questionnaire was administered to 70 respondents and multiple regression analysis was used to analyze relationships between variables. The results showed that easy availability of mechanics has the strongest relationship with customer satisfaction levels for after-sales service. Availability of spare parts and workshops also impact satisfaction but to a lesser extent. Therefore, importers should focus on increasing mechanic availability to better satisfy customers after sales.
This document discusses a study examining customer satisfaction with after-sales service in Karachi's automobile industry. The study focuses on the availability of spare parts, technical support workshops, and specialized hybrid engine mechanics as factors affecting customer satisfaction. A questionnaire was administered to 70 respondents and multiple regression analysis was used to analyze relationships between variables. The results showed that easy availability of mechanics has the strongest relationship with customer satisfaction levels for after-sales service. Availability of spare parts and workshops also impact satisfaction but to a lesser extent. Therefore, importers should focus on increasing mechanic availability to better satisfy customers after sales.
Riaz H. Soomro (Corresponding Author) Assistant Professor and PhD Research scholar Hamdard Institute of Management Sciences Hamdard University, Karachi Email: ibneluqman@yahoo.com Cell: +923333344755
Muhammad Fahad Baig Pursuing BBA Hamdard Institute of Management Sciences Hamdard University, Karachi
Abstract This study examines the customer satisfaction level with respect to after sales service in automobiles industry of Karachi. Spare parts, technical support workshop, specialized hybrid engine mechanics has been taken as the factors which will affect the customer satisfaction level with respect to after sales and service. The data is collected through questionnaire and the questionnaire has been filled out from 70 respondents. Multiple regression analysis has been used to check the dependency of variables. Result shows that easy availability of mechanics have a strong relationship on the customer satisfaction level with respect to after sales services in automobile industry of Karachi while easy availability of spare parts and technical support workshop have also impact on customer satisfaction level but the impact is low as compared to easy availability of mechanics so that importers of hybrid mobiles and the firms should focus on the easy availability of mechanics in order to satisfy more customer in the perspective of customer satisfaction level with respect to after sales service in automobile industry of Karachi. Key Words: After sales service, spare parts, mechanics/technicians, workshops, hybrid technology engines, customer satisfaction level.
1. Introduction The Japanese automobile industry is being transmitted and controlled by Pakistan Automobile Association (PAMA) in Pakistan, and there are four key players in this industry, these are Suzuki, Honda, Indus engines, and Deewan Farooq engines. This industry employs around 150000 to 200000 persons directly and indirectly for the sale and purchase of such imported cars from Japan. From 2001, the automobiles industry started to grow very rapidly with the increasing pace of globalization, and production increases from 45000 vehicles, increased to 3000000 vehicles per annum in 2013 and there will be more chances to grow with greater rate in the year 2014.(Zaidi, 2013) Yet in the mid of this residency, in Pakistan when utilized autos was foreign made from Japan including new cross breed auto engineering like Toyota Prius, Aqua, BB, Honda Insight, Honda Accord and so on., which are computerized cars, and which were imported without computerized equipment for their tuning, services and supported spare parts and also without hybrid technology. This creates a disaster in the scenario of the automobile industry of Pakistan. Branded cars are relatively very cheap in price with attractive features and performances, why not it attract customers but relatively have zero accommodation regarding after sales and service. The offer of utilized autos and different vehicles to different nations is still productive because of the generally minimal effort and great state of the vehicles being acquired. Helping components to the practicality of such fare incorporate Japan's strict engine vehicle reviews and high devaluation which make such vehicles worth almost no in Japan following two years, and strict natural insurance regulations that make vehicle transfer exceptionally exorbitant in Japan. The criticalness of after bargains administration has been distinguished by solid products producers. Firms offering sturdy merchandise are fundamentally offering after deals administrations. In developing nations more accentuate put on after deals administrations, on the grounds that after bargains benefit not just demonstrating preference and aides in brand positioning additionally helps essentially in benefit era. Clients are exceptionally touchy in their buy choice, particularly in strong merchandise. The intention to lead this study is to assess the effect of after deals benefits on buyer purchasing conduct in car industry of Pakistan. (DAWN, 2013) What is the most important thing for the automobile industry that should be considered to satisfy the customers need after sale service when you are purchasing hybrid technology automobiles? This is very important to the automobile industry to determine the factors which play very important role to satisfy the need of the customers and drive their purchase decision. Time constraint is the only limitation in order to gather data from the hybrid technology automobile consumer. This study is useful for only the consumers of the hybrid technology automobiles and the imported car dealers in order to provide maximum customer satisfaction level with respect to after sales service. The objectives of the study is to reduce the gap in maximum delivery exchange between automobile`s customers and manufacturers due to insufficient or inconvenient after sale services in order to determine customer satisfaction level. Spare parts, technical support workshop, specialized hybrid engine mechanics are important factors which have significant effect on the customer satisfaction level with respect to after sales service or not. 2. Literature Review A research study is conducted on after sales services for those durable products which required further accommodations after purchases. Consumers of durable products like cars are not having expectations with the firms up to the purchases but they are also willing to be entertained after purchasing because some basic things are associated with the product which should be considered important in order to retain customers and hence influencing consumer buying behavior. For this research study structured questionnaire have been asked from the car dealers of the Coimbatore. The finding shows that consumers are highly willing to be severed with greater services after sale and their level of expectations after sales and services is continuously increasing and with high value care with latest technologies of the luxurious goods has been increased with the dealers and this is directly associated with the customer relationship management. A dealer must have to raised standards continuously for greater customer satisfaction level because it is now have been confirmed that firm`s success is not the increasing in sales but the customer retention and as the customer retention level is directly after affecting the sales. Therefore, after sales and services have been confirmed that it is the important aspect for luxurious products like cars. (Sathish, Balamurugan, Sharma, & Karthikeyan, 2013) A research is conducted on the facilities for the automobiles after sales and services. These facilities include the spare parts, mechanics and workshops are key element for the automobiles after sales and services. The data is collected through surveys in the sales and services market of the automobiles in Sahiwal and the total 150 respondents were asked to fill the questionnaire consisting of close-ended questions. This research study show that economic and cheap spare parts of the automobiles impacts a lot on the consumer buying behavior and also the availability of the specialized mechanics who are professionally skilled with all the technical problems in that vehicle and the consumer buying behavior are also looking up for the workshops available for their corresponding vehicle. For the purchase of such luxurious goods consumer conduct little market survey and have some know-how regarding vehicle as consumer are futuristic and optimistic regarding purchasing automobiles. Therefore, importers should work on the development of cheap and economic spare parts to bring an increase in the sales of automobile industry.(Saeed, Lodhi, Majid, Rana, Mahmood, & Ahmad, 2013) Hybrid engine car technology is recently introduced in the end of the year 2013 in Pakistan and the hybrid technology engine cars are likely to be well admired by the people as these cars are very much fuel efficient and are well enough for the controlling of the environmental health and safety issues. A research study on the hybrid engine is conducted for the awareness of benefits of the hybrid technology. This research is totally conducted in order to create awareness of the benefits and they describe some of the following important benefits of the hybrid engines that hybrid technology guarantee safety and provide better performance through tractable distributed algorithm. Hybrid cars are equipped with an electronic charging battery which helps to provide better performance and very efficient fuel consumption.(Kumar & Kumaresan, 2012) As for the after sales and service of the automobiles, a research study is conducted highlighting some of the important aspects of the automobiles and the problems which are faced by the consumers of imported automobiles. In this research study the impact of after sales and services on consumer buying behavior in the industry of automobiles has been carried out. And for this purpose researcher collected data through close-ended questionnaire filled from 250 respondents from the five selected sales and service centers of the genuine equipment manufacturers in Pakistan and the result study shows that genuine spare parts are not available and if available but are very much expensive, technician/mechanics are not easily available who are specialized to computerized Japanese imported cars, warranty associated parts replacement are not possible. On the other hand it is also identified in the research that economical spare parts, compatible spare parts, and service shops have significant effect on the consumer buying behavior. Further the author also recommended that importers and manufacturers should focus on easy availability of the spare part, mechanics, parts replacement warranties and customization services to change the consumer buying behavior in order to provide after sales and services. (Ahmed & Sanatullah, 2011) 3. Research Methodology This research is conducted in Karachi in such a way to identify the factors involved which will affect the customer satisfaction level with respect to after sales services from the consumers of hybrid engine technology automobiles, as this research is conducted to identify the association between factors therefore, it is fall in the category of applied research. The research is correlation in nature because the impact of the one dependent variable is taken in this study and their association with three independent variables. The primary data collection method technique is used in order to gather data through qualitative methods because no historic data is available and the responses from the individual are required which lead to this research. The universe of this study is Karachi as Karachi is the largest populated city of Pakistan. Therefore, the results can be implemented all over the Pakistan because the research is conducted on the automobiles hybrid technology which is directly imported from Japan and the results can be applied on the whole Pakistan as the problem faced by people of Karachi likely wise face by the people of Pakistan too. The estimated Population of Karachi is 13.38 million on 13 December, 2013. (Hussain, 2013) The sample size for the population of Karachi is calculated through sample size calculator. According to the sample size calculator the sample size would be 68 with the acceptance margin of 10% along with confidence level of 90% (RAOSOFT). Questionnaires are filled from 70 respondents. The respondents are only the user of hybrid technology automobiles and who are citizen of Karachi and are above age of 20 years in order to provide judgmental responses. The respondents are selected on a non-probability random sampling with a convenience based sampling that who is easily available and easily provide the information. The data is collected through questionnaire and the design of the Questionnaire is kept simple and short in order to save time of the respondent and can be easily understandable by the respondents. Close-ended questionnaires are designed in order to collect the responses and the questionnaire is consisting of two segments. One segment contains only the demographic variables and the other segment contains LIKERT scale questions because it provides results with higher variability. 3.1 Research Tools and Technique Statistical Package foe Social Sciences (SPSS) version 19.0.0 is used to analyze the data. Statistical methods are also used for the calculation of frequencies distribution of the demographic variables and the multi-regression is used for the calculation of significance of the variables. One dependent variable and three independent variables are used in this research following by the equation in order to check correlation.
Customer satisfaction level (CS) as dependent variable and three independent variables easy availability of spare parts (EASP), easy availability of hybrid mechanic (EAM), technical support workshop(TSW) is used to construct the above equation. Figure 1: Customer Satisfaction Level Model
Customer Satisfaction Level Easy Availibilty Of Spare Parts Easy Availibilty Of Mechanics Technical Support Workshop 4. Data Findings & Results Correlation test is used to make inference about the relationship between dependent and independent variables. The relationship between three independent variables i.e. easy availability of spare parts, easy availability of mechanics and technical support system and one dependent variable customer satisfaction level as constant is analyzed by using SPSS which provided with a coefficient table and summarizes the following results. Table 1: Correlation Analysis Test
Easy Availabilit y of Spare Parts Easy Availabilit y of Mechanic Technical Support Workshop Overall Satisfaction Easy Availability of Spare Parts Pearson Correlation 1 .531 ** .361 ** .441 **
N 70 70 70 70 **. Correlation is significant at the 0.01 level (2-tailed). The table above presents that easy availability of spare part has a moderate positive relationship with customer satisfaction level with respect to after sales service. Easy availability of mechanic has a strong positive relationship with consumer satisfaction level with respect to after sales service. Technical support workshop has also a moderate positive relationship with customer satisfaction level with respect to after sales service. Easy availability of mechanics is the key determinant in consumer purchase decision about a car as the after sales service is associated with the purchase decision of car. The significance level reveals the acceptance and rejection of the hypothesis so that the dependent and independent variable used in the analysis of Multiple regression analysis is applied on SPSS and the relationship is described as the acceptance of null hypothesis if the significance level is greater than 0.1 and the positive hypothesis is accepted if the significance level is less than 0.1.The table below shows that easy availability of spare part has a beta value of 0.170 that means customer satisfaction level with respect to after sales service is 17% dependent on easy availability of spare part. It also shows significance level of 0.149>0.1 so by this phenomena null hypothesis (There is no relationship between availability of spare parts and customer satisfaction level) do not reject but has very weak rejection. Table 2: Coefficient Analysis
Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta
(Constant) .469 .254
1.844 .070 easy availability of spare parts .183 .126 .170 1.459 .149 easy availability of mechanic .270 .101 .320 2.676 .009 technical support workshop .255 .099 .281 2.584 .012
The above table also shown that beta value of 0.320 for easy availability of mechanic that means customer satisfaction level with respect to after sales service is 32% dependent on easy availability of mechanics and significance level for this is 0.009<0.1 so null hypothesis (There is no relationship between availability of mechanic and customer satisfaction level) do reject and alternative hypothesis(There is relationship between availability of mechanics and customer satisfaction level) is accepted. Table also show that a beta value of 0.281 for technical support workshop that means customer satisfaction level is 28.1% dependent on technical support workshop. It also shows significance level of 0.12>0.1 so null hypothesis accepted and alternate hypothesis is rejected (There is a relationship between economic spare part and customer satisfaction level). Table 3: Model Summary
Mode l R R Square Adjusted R Square Std. Error of the Estimate 1 .616 a .380 .351 .69572
Regression analysis by using SPSS is used and computed the model summary which showed R square value .380 that mean 38 percent of customer satisfaction level with respect to after sales service is described with our three independent variables easy availability of spare part, easy availability of mechanic, and technical support workshop. 5. Conclusion This research study examines the impact of after sales service on customer satisfaction level in automobile industry of Karachi. Result clearly shows that easy availability of spare parts and technical support system has weak positive relationship while easy availability of mechanics have strong positive relationship with customer satisfaction level with respect to after sales service in automobile industry of Karachi. The implication of the study is that the automobiles industry should put more emphasis on the easy availability of mechanics and likely wise on the easy availability of spare parts and technical support workshop, so that they can influence the buying decision of more customers.
6. Bibliography Ahmed, D., & Sanatullah. (2011). After sales services and consumer buying behavior: An empirical investigation in automobiles industry of Pakistan. market forces , 7 (3), 5. DAWN. (2013, november 24). Saving Pakistan auto industry. Retrieved from www.dawn.com: http://www.dawn.com/news/1058234/saving-pakistan-auto-industry Hussain, M. G. (2013, december 13). Retrieved from www.maverickpakistan.com: http://www.maverickpakistanis.com/2010/06/karachi%E2%80%99s-population-growing-at-5pc- a-year/ Kumar, R., & Kumaresan. (2012). Systemwide Safety and Reliability for Intelligent Intersections in Hybrid Systems. International Journal of Recent Technology and Engineering (IJRTE) , 1 (3), 4. RAOSOFT. (n.d.). Retrieved December 15, 2013, from www.raosoft.com: http://www.raosoft.com/samplesize.html Saeed, R., Lodhi, R. N., Majid, M. B., Rana, M. I., Mahmood, Z., & Ahmad, M. (2013). Impact of After Sales Service on Consumer Buying Behavior in Sahiwal Pakistan. Management and Administrative Sciences Review , 2 (5), 8. Sathish, Balamurugan, Sharma, S. N., & Karthikeyan. (2013). Customer Relationship Management In Car Service Industry With Reference To Car Dealers In Coimbatore. Journal of Business Management & Social Sciences Research , 2 (6), 9. Zaidi, F. (2013, february 12). 1. Retrieved from www.pakwheels.com: https://www.pakwheels.com/blog/2013/02/12/a-view-on-pakistans-automotive-industry/
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