Thesis-Mbs - GP
Thesis-Mbs - GP
A THESIS
SUBMITTED BY:
GAYATRIBHATTARAI
REGD. NO.: 2015_67_3_1001_0166
CENTRAL CAMPUS OF MANAGEMENT
MID-WESTERN UNIVERSITY (MU)
BIRENDRANAGAR, SURKHET.
SUBMITTED TO:
2018
Table of Contents
Table of Contents.................................................................................................................1
LIST OF TABLES...............................................................................................................6
LIST OF FIGURES.............................................................................................................8
ABBREVIATIONS.............................................................................................................9
Abstract..............................................................................................................................10
CHAPTER- I: INTRODUCTION.....................................................................................11
2
2.1. As a Review: Motorcycle in Nepal.....................................................................25
Primary Source..........................................................................................................54
Secondary Source......................................................................................................55
3
3.8. Data Analysis and Presentation...........................................................................56
3.11. Validity............................................................................................................57
3.12. Reliability........................................................................................................57
4
4.3.4. Respondents views on price of branded spare parts....................................69
4.8.1. Regression analysis for Repair and maintenance service and customer
satisfaction.................................................................................................................83
4.8.2. Regression analysis for Spare parts supply and customer satisfaction........85
4.8.3. Regression analysis for the Warranty service and customer satisfaction....87
4.8.4. Regression analysis for relationship between Exchange offer and customer
satisfaction.................................................................................................................88
4.8.5. Regression analysis for relationship between overall after sales service and
customer satisfaction.................................................................................................90
5
CHAPTER-V: SUMMARY, CONCLUSION AND RECOMMENDATIONS...............92
5.3. Conclusions.........................................................................................................96
5.4. Recommendations...............................................................................................97
Bibliography......................................................................................................................98
6
LIST OF TABLES
TABLE 1: GENDER OF THE RESPONDENTS..........................................................................................58
TABLE 2: CAST OF THE RESPONDENTS................................................................................................59
TABLE 3: RELIGION OF THE RESPONDENTS.......................................................................................59
TABLE 4: AGE OF THE RESPONDENT....................................................................................................60
TABLE 5: MARITAL STATUS OF THE RESPONDENTS........................................................................60
TABLE 6: EDUCATION OF THE RESPONDENTS...................................................................................61
TABLE 7: OCCUPATION OF THE RESPONDENTS................................................................................61
TABLE 8: MONTHLY INCOME OF RESPONDENTS..............................................................................62
TABLE 9: BRAND OF THE MOTORCYCLE OF RESPONDENTS.........................................................62
TABLE 10: RMSS GETS BY THE RESPONDENTS..................................................................................63
TABLE 11: COST OF COMPANY’S RMSS................................................................................................64
TABLE 12: NO. OF RMSS TAKES BY RESPONDENTS..........................................................................64
TABLE 13: ACCESSIBILITY OF RMSS.....................................................................................................65
TABLE 14: QUALITY OF COMPANY’S RMSS........................................................................................66
TABLE 15: PERFORMANCE OF COMPANY’S RMS STAFFS...............................................................66
TABLE 16: RESPONDENTS CHANGES THE SPARE PARTS OR NOT.................................................67
TABLE 17: NO. OF CHANGES OF THE SPARE PARTS..........................................................................68
TABLE 18: RESPONDENTS CHANGES THE COMPANY’S SPARE PARTS........................................68
TABLE 19: RESPONDENTS VIEWS ON PRICE OF BRANDED SPARE PARTS..................................69
TABLE 20: WARRANTY ON THE BRANDED SPARE PARTS..............................................................70
TABLE 21: AVAILABILITY OF SPARE PARTS.......................................................................................70
TABLE 22: QUALITY OF THE BRANDED SPARE PARTS....................................................................71
TABLE 23: SPARE PARTS SUPPLY MANAGEMENT............................................................................71
TABLE 24: WARRANTY GETS OR NOT..................................................................................................72
TABLE 25: WARRANTY PERIOD..............................................................................................................73
TABLE 26: ACCESSIBILITY TO CLAIM WARRANTY..........................................................................74
TABLE 27: FLEXIBILITY ON PROCEDURES AND TERMS & CONDITIONS TO CLAIM
WARRANTY.......................................................................................................................................74
TABLE 28: RESPONSES OF THE COMPANY ON WARRANTY CLAIM.............................................75
TABLE 29: RESPONDENTS EXCHANGES MOTORCYCLE OR NOT..................................................76
TABLE 30: PLAN OF RESPONDENTS TO EXCHANGE MOTORCYCLE IN FUTURE.......................76
TABLE 31: ACCESSIBILITY TO EXCHANGE POINT............................................................................77
TABLE 32: VALUATION OF OLD MOTORCYCLE.................................................................................77
TABLE 33: COMPANY’S MANAGEMENT FOR EXCHANGE OFFER.................................................78
TABLE 34: RESPONDENTS VIEWS ON OVERALL AFTER SALES SERVICES.................................79
7
TABLE 35: DESCRIPTIVE STATISTICS OF REPAIR AND MAINTENANCE SERVICE....................79
TABLE 36: DESCRIPTIVE STATISTICS OF REPAIR AND MAINTENANCE SERVICE....................80
TABLE 37: DESCRIPTIVE STATISTICS OF WARRANTY SERVICE...................................................81
TABLE 38: DESCRIPTIVE STATISTICS OF EXCHANGE OFFER.........................................................82
TABLE 39: REGRESSION ANALYSIS MODEL SUMMERY OF REPAIR AND MAINTENANCE
SERVICE AND CUSTOMER SATISFACTION................................................................................83
TABLE 40: REGRESSION ANALYSIS ANOVA RESULTS OF REPAIR AND MAINTENANCE
SERVICE AND CUSTOMER SATISFACTION................................................................................84
TABLE 41: REGRESSION ANALYSIS COEFFICIENTS FOR REPAIR AND MAINTENANCE
SERVICE AND CUSTOMER SATISFACTION................................................................................84
TABLE 42: REGRESSION ANALYSIS MODEL SUMMERY OF SPARE PARTS SUPPLY AND
CUSTOMER SATISFACTION...........................................................................................................85
TABLE 43: REGRESSION ANALYSIS ANOVA RESULTS OF SPARE PARTS SUPPLY AND
CUSTOMER SATISFACTION...........................................................................................................86
TABLE 44: REGRESSION ANALYSIS COEFFICIENTS FOR SPARE PARTS SUPPLY AND
CUSTOMER SATISFACTION...........................................................................................................86
TABLE 45: REGRESSION ANALYSIS MODEL SUMMERY OF WARRANTY SERVICE AND
CUSTOMER SATISFACTION...........................................................................................................87
TABLE 46: REGRESSION ANALYSIS ANOVA RESULTS OF WARRANTY SERVICE AND
CUSTOMER SATISFACTION...........................................................................................................87
TABLE 47: REGRESSION ANALYSIS COEFFICIENTS FOR WARRANTY SERVICE AND
CUSTOMER SATISFACTION...........................................................................................................88
TABLE 48: REGRESSION ANALYSIS MODEL SUMMERY OF EXCHANGE OFFER AND
CUSTOMER SATISFACTION...........................................................................................................88
TABLE 49: REGRESSION ANALYSIS ANOVA RESULTS OF EXCHANGE OFFER AND
CUSTOMER SATISFACTION...........................................................................................................89
TABLE 50: REGRESSION ANALYSIS COEFFICIENTS FOR EXCHANGE OFFER AND CUSTOMER
SATISFACTION..................................................................................................................................89
TABLE 51: REGRESSION ANALYSIS MODEL SUMMERY OF RELATIONSHIP BETWEEN
OVERALL AFTER SALES SERVICE AND CUSTOMER SATISFACTION.................................90
TABLE 52: REGRESSION ANALYSIS ANOVA RESULTS OF RELATIONSHIP BETWEEN
OVERALL AFTER SALES SERVICE AND CUSTOMER SATISFACTION.................................90
TABLE 53: REGRESSION ANALYSIS COEFFICIENTS FOR RELATIONSHIP BETWEEN OVERALL
AFTER SALES SERVICE AND CUSTOMER SATISFACTION.....................................................91
8
LIST OF FIGURES
FIGURE 1 CONCEPTUAL FRAMEWORK OF AFTER-SALES-SERVICES AND CUSTOMER
SATISFACTION...............................................................................................................................................21
9
ABBREVIATIONS
GON = Government of Nepal
FY = Financial Year
CS = Customer Satisfaction
MU = Mid-western University
VG = Very Good
G = Good
B = BAD
VB = Very Bad
10
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 assess either after sale services that are offered to
customers just after the sales stage have an effect on customer satisfaction in the
motorcycle industry.To complete this research, authors have chosen a Quantitative, non-
experimental and Descriptive research design. The research was conducted on
Birendranagar Surkhet, Nepal. The population of the study was all customers of
motorcycle who lives in Birendranagar Surkhet. The researcher has used a Simple
random sampling method to selecting the sample respondents. The Quantitative data
were collected from 108 sample respondents through using self-administrated
questionnaire. And some background and literature review related secondary data were
collected through website, books, journals, magazines, reports and articles. Data
analysis was done using SPSS software version 20. The frequency, percentage were used
to describe the nature of data. Mean and standard deviation were used to measure the
experience of customers on after sales service variables. And regression analysis was
used to the describe relationship between after sales service and customer satisfaction.
The hypotheses were tested through the regression analysis ANOVA results. The result
shows that, the customers are satisfied with all after sales service variables. Hypotheses
proves that the repair and maintenance service, warranty service and exchange offers
have an impact on customer satisfaction significantly and spare parts supply have a no
significant impact on customer satisfaction. Likewise, the regression analysis showed the
good relationship between after sales service and customer satisfaction. Finally, the
researcher concluded on the good after sales service is tool to strong bonds and loyalty
among the customers which help companies to create positive word of mouth for
companies.
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CHAPTER-I: INTRODUCTION
This chapter contains the background, conceptual as well as theoretical
framework on which the thesis is embodied. It presents the objectives,
hypothesis, research questions and significance of the study. At the end, it
also explains the limitations and overview of the remaining chapters of the
thesis.
Motorcycles are most popular especially among the people belonging to middle level
group in Nepal. Due to wide choice of brands there is stiff competition among the
manufacturers and marketers to get attention of the buyers. People favor a specific model
of motor cycle among different brands for numerous reasons like maintenance, price,
appearance, fuel efficiency, durability and resale value. The most of Nepalese motorcycle
market was captured by Indian company. One of the most important features of economic
development is the transformation of luxury goods into necessary goods. In recent times
12
one such goods, which has been greatly demanded by the consumers, is the motor cycle
possessing a mechanical device for conveyance is an indicator of good standard of living.
The better part of life cycle costs of industrial goods and industrial plants emerge from
maintenance, distribution of spare parts, etc.[ CITATION DrT06 \l 1033 ],Maintenance
and repair are an important element of product support, which has required companies to
invest significant resource. Preventive maintenance is undertaken to clean, refurbish or
replace parts of equipment which otherwise would be liable to fail. Mechanical parts, for
example, normally require regular maintenance as in the case of cars[ CITATION KGo99
\l 1033 ].Maintenance is the day to day problem of keeping the physical plant in good
generating condition”. They also added that it is necessary to ensure that availability of
machine, building and service needed by other units of the organization for the
performance of their organization for the performance of their function, at an optimum
returns investment is generated[ CITATION OBE16 \l 1033 ]. Another, the spare part
management is the foundation for sustain reliability and is crucial to the success. The
quality of spare parts depends on original and genuine spare parts. It is important to make
sure that, buy genuine parts for the machinery. Under the warranty service, customer gets
the free replacement of parts. But under the non-warranty service customer should pay
the price of parts including replacement cost[ CITATION Gee14 \l 1033 ]. Next, the
warranties are formal statements of expected product performance by the manufacturer.
Products under warranty can be returned to the manufacturer or designed repair,
replacement, or refund. Whether expressed or implied, warranties are legally enforceable[
CITATION Kot12 \l 1033 ]. The Fast response towards the warranty claim will give an
indication of good quality and value product[ CITATION Moh09 \l 1033 ]. Likewise,
another, on the case of motorcycles’ after sales service, the exchange offer is another
important factor which assists the make customers more satisfied.
13
manufacturers. After-sales services can create sustainable relationships with customers
and contribute significantly to customer satisfaction by offering different after-sales
services during the various stages of the primary product lifecycle, the provider can
ensure product functionality and thereby customer satisfaction.
Motorcycle dealers in Birendranagar Surkhet want to give the best services to satisfy
their customers in the midst of having multi-competitors. For this reason, the researcher
came up with this study to help motorcycle dealers identify satisfactory after-sale services
and best strategies to continue satisfy their customers.
Manufacturers and retailers of capital and consumer goods cannot consider their active
role ends with the sale, but rather must provide their customers with a set of supporting
1
www.collinsdictionary.com/dictionary/english/after-sales-services
2
www.businessdictionary.com/definition/after-sales-service.html
14
after-sales services, such as installation packages, technical advice for use,
maintenance/repair, spare parts delivery, product upgrading, etc. The rationale for such
needs and in general for integrating services into the core product offering is based on
three main reasons, they concerning the after-sales economics, customer requirements,
and competitive arguments[ CITATION NSa06 \l 1033 ].
There has been dramatic modification in transportation industry people use different
types of two wheelers & four wheelers for their different preferences like safety, speed,
reliability, average, outlook etc. Companies are now faced with an increasing number of
tactical options that must be efficiently and effectively applied to an increasing number of
product variations for the other company. Companies can outperform competition only if
they can go about winning customer by meeting & satisfying customer needs. So,
15
customer's satisfaction after sales & before sales is become important for any particular
two-wheelers and four-wheeler company [ CITATION PRA06 \l 1033 ].
ABB Company produce and sells the product of Stressometer Flatness Control, Millmate
Thickness Gauges, Millmate Roll Force systems, Millmate Strip Tensiometers, Millmate
Strip Scanners and Pillow Block Tensiometers for rolling mills, Pillow Block
Tensiometers, Mini Pillow Block Tensiometers and Pressductor Radial Tensiometers for
converting and paper mills as well as Cyclamate Systems for large diesel engines. And it
continually develops After Sales Service for globally supporting to customers and
ensuring the long-term commitment and secure the production them. It support to
customer by providing Engineering & Consulting, Optimization, Training, Spare parts,
Repair and other necessary support[ CITATION ABB09 \l 1033 ].
Once the customer has zeroed in on the right choice, he purchases the product. The
product can be purchased from retail stores, online, ordered by telephone or purchased
directly from the company. The purchase process itself involves several more decisions.
It involves decisions about the place and mode of purchase, payment terms and
conditions, delivery of the product, installment, training for usage of the product, etc.
[ CITATION Aru13 \l 1033 ].Getting the after-sales service right in the short term will be
easier than delivering a longer-term strategy that truly delights customers and builds
strong relationships. However, we’ve seen that brands must bridge the polarized
approach of treating sales and service differently if they are to maximize the
16
opportunities offered by a truly customer centric organization[ CITATION GfK15 \l
1033 ].
After-sales services has been proven to be a need for securing an organizations future
business, as it helps to ensure value for the customer through the products lifetime. This
indicates that After-sales-services is an important way of creating business for
organizations, and has leads to the creation of dedicated departments and strategies with
the goal of ensuring this part of their business. After-sales-services gives these following
benefits:
As [ CITATION Yaz \l 1033 ]shows, the challenges of implementing after sale service
mostly happens if services deals with dried lubricant found in movement , possible dirt
and dust in watch, normal wear & tear, possible damage from previous repair, spare part
quality control , staff training.
17
[ CITATION BFo \l 1033 ] Shows the following challenges faced in implementing after
sale service.
According to[ CITATION PGa07 \l 1033 ] the challenge of after sale service exists when
the company gives after sale service to the third party by outsourcing.
Increased chances of pilferage- While outsourcing your after-sales may help you
reduce the operational issues relating to managing the service centers; it also
increases the chances of pilferage on the flip side.
Risk of non-compliance of regulatory terms and conditions-Since the service
centers work on their own models and regulations, it may be difficult to
streamline your business processes with theirs.
Discontent with the automation solution used by your service partner- Some
service providers use a service management solution that may not offer the results
that you seek from your after-sales process; while some service providers may not
use any automation technique at all.
Customer satisfied by the product they purchased and by the service they got from sellers
during and after they purchase the product. After-sales service and product guarantees are
very important for customers, especially for durable products. Given long shipping times
to Nepal, concerns about after-sales service and availability of spare parts affect product
choice. It is therefore preferable to make arrangements with a local agent/distributor for
reliable customer service and support. Providing local after-sales services is mandatory
for any supplies under government procurement. Foreign companies selling vehicles,
high-value machinery items, electrical appliances, and electronics in Nepal have
arrangements in place for such services with their local agents or distributors. Often the
18
parent company provides the technical assistance and machinery for such services while
the local company provides the actual services.3
Leading automobile dealers have been increasingly focusing on providing superior pre
and after sales service to their customer. As a part of this effort, international standard
service center and showroom with sophisticated equipment help desk, ambient
environment, beverage offerings and high quality interior décor have become priority.
Nepali company CG Automobile provided a pleasant environment, top notch equipment
and efficient service to increase customer satisfaction. It also aimed to boost the customer
satisfaction level to 100 percent. Likewise, Sipradi Trading, the authorized distributor of
TATA vehicles, maintains showrooms and service centers fitted advanced equipment that
provides high quality sales services. It uses forklifts and computerized systems to reduce
maintenance time. Also, its showrooms are equipped with coffee bars, internet facilities
and TVs. The company planned to increase customer satisfaction 85 percent to 90
percent. So, it provides offers of 90-minute and 48-hour services and pledge to complete
the job within that deadline. Likewise, Laxmi Intercontinental, the authorized distributor
of Hyundai in Nepal, has followed international guidelines to add quality to its service
delivery. Its service centers are all equipped with international standard machinery as per
the global guidelines followed by all Hyundai outlets. It also aimed to increase the
monthly satisfaction level up to around 88 percent. Its main priority is to increase market
presence by providing the complete 3s_sales, spares and service-solution from one-stop
center [ CITATION Kat16 \l 1033 ].
If one views the historical advent of ‘customer satisfaction’ as a concept, it has been
prevalent in the study of marketing since 1950’s, and still today it keeps up as the most
important and relevant topic and raises an unending interest from the practitioners and
academicians in marketing area. Hence, from the outlook it can be stated that customer
satisfaction is the prime domain of marketing. The processes of customer satisfaction
involves in purchase and consumption. It also links post-purchase attitude of the
3
Nepal Country Commercial Guide Template:
www.photos.state.gov/libraries/nepal/391216/2016/2016CountryCommercialGuideNepal%20.pdf
19
customer such as attitudinal change, repeat purchases, and brand loyalty [ CITATION
Kav16 \l 1033 ]. The [ CITATION HMa90 \l 1033 ] define the customer satisfaction as, a
short-term emotional reaction to a specific service performance. Customers may be
satisfied with a product or service, an experience, a purchase decision, a salesperson,
store, service provider, or an attribute or any of these.
The only value your company will ever create is the value that comes from customers the
ones you have now and the ones you will have in future. Businesses succeed by getting,
keeping, and growing customers. Customers are the only reason you build factories, hire
employees, schedule meetings, lay fiber-optic lines, or engage any business activity.
Without customers, you don't have a business [ CITATION Kot12 \l 1033 ].Satisfaction
means a comparison between customer's expectation and actual perceived value of goods
and services. If the performance falls short of expectations, the customer is dissatisfied. If
it matches expectations, the customer is satisfied. If it exceeds expectations, the customer
is highly satisfied or delighted [ CITATION PHI12 \l 1033 ].
After-sales services can create sustainable relationships with customers and contribute
significantly to customer satisfaction and loyalty. By offering different after-sales
services during the various stages of the primary product lifecycle, the provider can
ensure product functionality and thereby customer satisfaction. This may lead to a fruitful
relationship between the provider and the customer over time, allowing for more
transactions. Returning customers are the most profitable ones as they require less
marketing effort and relationship building. Therefore, after-sales services have acquired a
critical role as a means to satisfy and retain customers. Especially in a time when firms
are experiencing increased pressure to downsize operations and to become more highly
specialized in their core competencies, they demand more tailored services [ CITATION
Rub12 \l 1033 ].
By managing a superior value chain that delivers a high level of product quality, service,
and speed. They achieve profitable growth by expanding customer share, building
customer loyalty, and capturing customer lifetime value [ CITATION PHI12 \l 1033 ].
The importance of after-sales service or service in general can be seen and experienced
by customers every day with industrial as well as other non-industrial services or
products [ CITATION And14 \l 1033 ]. Customer satisfaction is a strategic goal of any
organization: since a satisfied customer is the core concern of any organization, they pay
close attention to the factors that influence customers’ satisfaction. After sales service is
one of the important factor that influence customer satisfaction in case of durable goods.
After sales service is needed to prevent dissatisfaction, frustration and it will among
present customers against the product and its manufacturers [ CITATION Raj161 \l
1033 ].
21
Do the proper delivery or supply management of spare parts has impacts on the
customer satisfaction?
Does the offering for exchange to customer, have impacts on their satisfaction?
Does the overall after sales service of motorcycle have a relationship with
customer satisfaction?
Today's' world is dynamic. Everything existing here are of limited characters. Every
principle, role, formula and conditions are applied within limitations. This study is for
partial fulfillment of Masters in Business Studies course of Mid-Western University
(MU), so it may not be useful for other aspects. The time and resources constraints
are common limitation of the all-academic research. Likewise, this study cannot
escape from limitations. Therefore, the other separate limitations of this study are as
follow:
23
1. This study is limited to only on Motorcycle Manufacturer and Distributor, thus the
result will not be applicable for all types of organizations.
2. The respondents are limited up to 108 only.
3. The data are collected from the Motorcycle customers located on Birendranagar
Surkhet and nearby places.
Therefore, this study helps to improve the customer satisfaction with the After-Sales-
services provided by Motorcycle Manufacturer and Distributor. Hence, this study
provides the guidelines for those researchers who would like to pursue their research on
after sale service in Nepal. In addition, this research provides the technique to provide the
maximum satisfaction to the customers.
24
Chapter One: Introduction
This is the introductory chapter, which has covered the Background of the study,
Significance of the research, Conceptual framework, Objectives of the study, Research
question, Hypothesis of the study, Limitation of the study etc.
25
2.1. As a Review: Motorcycle in Nepal
According to economic survey-GON, from FY 2046/047 B.S. till FY 2069/070 B.S.,
1,207,261 motorcycles are registered in all over the Nepal. On FY 2070/071, additional
163,945motorcycles are registered. And on FY 2071/072 – 196,383, on FY 2072/073 –
267,439 and on first 8 months of FY 2073/074 – 199,908 motorcycles are registered all
over Nepal.
As on end of 2017; 32 brand of motorcycle are used in Nepal. They are HONDA, HERO,
BAJAJ, TVS, YAMAHA, KAWASAKI, ROYAL ENFIELD, VESPA, DUCATI,
BENELLI, ACE BRITISH, APOLO, APRILA, BELA, CF MOTO, CROSSFIRE,
CROSSX, HYOSUNG, KTM, MAHINDRA, MOTRAC, MV AGUSTA, SACHS,
SCOMADI, SUZUKI, TERRA, UM, HARTFORD, HUSQVARNA, ITALJET,
PIAGGIO and RUNNER. But the some brands of them are covered 80 percent market of
motorcycle in Nepal. The HONDA, BAJAJ, HERO, TVS, YAMAHA, KTM, ROYAL
ENFIELD, SUZUKI, KAWASAKI, MAHINDRA, VESPA are most popular motorcycle
brand in Nepal.
The Syakar Honda Nepal is an authorized distributor of Honda bikes in Nepal. It has
sales the 24 models of Honda motorcycle and popular four-wheeler in all across the
Nepal. Another, the NGM Hero is Nepal’s distributor of Hero motorcycles. It sales the
three above brands of Hero bikes in all over the Nepal. Next, Hansaraj Hulaschand it is
also named HH Bajaj; it is authorized distributor of Bajaj Auto in Nepal. It sales the top
more than seven models of Bajaj bike in all the country. Another, the Morang Auto-
works is authorized distributor of Yamaha motorcycle in Nepal. It sales the more than 9
models of Yamaha motorcycle in Nepal. The Hansaraj Hulaschand-KTM is a distributor
of Kawasaki and KTM bikes in Nepal. The Jagadamba motors Pvt. Ltd. Sales the TVS
motorcycle in Nepal. Likewise, The ANNA Business group sales the Vespa bike, Ganesh
Enterprises and V. G. automobiles Pvt. Ltd. sales the Suzuki bikes, VIVEK automobiles
Pvt. Ltd. Sales the Royal Enfield motorcycles.4
4
Adopted from www.tradenepal.com.np
26
Recently, the Rai Motors introduce the Hunter bikes in Nepali market. Another, the
Raman motors entered the Bangali motorcycle brand ‘Runner’ with popular seven
models in Nepali market. The Raman Motors focused the after sales service and
availability of spare parts throughout the country. It also plans to add another 20
showrooms and service centers all across Nepal within six month.5
The Bajaj Auto and Hulas Auto Craft open the first motorcycle assembly plant in Nepal.
The plant’s location has Ramgram, Nawalparasi. Capacity of the plant is 300 bikes per
shift. At present, Bajaj Auto is selling around 48000motorcycles in Nepal annually with a
46 percent market share. With assembly plant and various other initiatives in place, the
business is expected to increase 45-50 percent in next 2 years.6
The Yamaha is one of the leading motorcycle brands in the auto industry, having
demonstrated its passion for innovation since 1955. Morang Auto-works (MAW), the
authorized distributor of Yamaha in Nepal began its partnership with Yamaha in 1975,
importing Rajdoot and Escorts models for a single showroom. Today Yamaha enjoys one
of the highest market shares in the motorcycle sector and their sales network spreads all
across Nepal. They have over 80 outlets and more than hundred authorized service points
(ASPs). With most of the automotive industry turning towards electric vehicles, Yamaha
plans to introduce electric motorcycles within a period of 10-20 years.7
Honda two-wheelers which arrived in Nepal in 1968 AD, the Jyoti group of companies
initiated the distribution of Honda motorcycles by importing 11 units. The Syakar trading
company Pvt. Ltd. (STC), one of the companies under Jyoti group of organization which
was formally known as syakar company Ltd (established in 1976 ) is now the sole
authorized distributor of Honda motorcycles and scooters, Honda cars, and Honda power
products in Nepal. The company officially changed its name to Syakar trading company
Pvt. Ltd. On June 7, 2011 (jestha 24, 2068 BS) and became a 100% subsidiary of
Honda.From importing 11 units of Honda Motorcycles at the beginning till now, Syaker
Trading company has lived up to its reputation of offering highest quality motorcycles
5
Retrieved from www.enepsters.com/2017/12/runner_motorcycle-price-in-nepal
6
Information were received from www.globalbajaj.com.np
7
Source https://thehimalayantimes.com/automobile/celebs_cornor/yamaha-shift-focus-scooters-nepal/
27
and scooters and imports almost 60000 Honda motorcycles and scooters every year. The
Syakar Trading now has more than 70 Honda two-wheeler outlets all over Nepal. On
March 23, 2010, Syakar Trading company Pvt. Ltd. Inaugurated ‘Syakar safety riding
training center’. The first and largest motorcycle training institute with an area of 10200
square meter at Gwarla, Lalitpur. The motorcycle training institute has been developed
under Honda motors Japan training standards and well equipped with well-trained male
and female safety riding instructors and sufficient amount of safety gears. The Syakar
trading newly generated trial for also been implemented at Syakar safety riding training
center.
Customer satisfaction is the main concern of business sectors of today, their researchers
are always conducting research about the customers especially on what relates to their
satisfaction. In this highly competitive world customers plays a very important role.
Thus, if a company wants to survive then it should look forward to the determinants of
customer satisfaction. Though it is a very subjective issue that differs from individual to
individual yet, identifying some basic parameters of customer satisfaction is important.
The customers will not only buy the product again later (in case that their expectations
concerning the satisfaction with the product are met) but will also recommend other
(prospective) customers to buy it [ CITATION Pet14 \l 1033 ]. Improved customer
satisfaction will lead to improved customer loyalty, which will eventually improve profit.
In order to satisfy our customers, we have to focus on effective customer services to meet
their needs [ CITATION LPo05 \l 1033 ].
According to,[ CITATION AMe18 \l 1033 ] at least 7 times more to get a new customer
than it does to retain an existing customer a satisfied customer tells 5-7 people in a year
whilst a dissatisfied customer will tell 14-15 people.
Companies can boost profits anywhere from 25%to 125% by retaining a mere 5%
more of their exciting customers.
29
Totally satisfied customer is 6 times more likely to use that service and commend
it than satisfied customers.
Customers who have a bad experience with you and do not complain are only
37% likely to still do business with you.
Customers who have an opportunity to complain and the complaint is achieved
are 95% likely to still do business with you.
The [ CITATION Tri14 \l 1033 ] Suggest the five measures for customer satisfaction.
These are: Product quality, Facilities, Staff performance, Customer service and Value of
money. The product quality focused on perceived quality, the Facilities focused on
environmental factor, another Staff performance Focused on behavior of employee,
Customer service focused on product support service and Value of money focused on
Price of goods.
The [ CITATION Pet14 \l 1033 ] Cited (Zamazalová, 2008) and mentions the key factors
that affect customer satisfaction and which can be used to measure customer satisfaction.
These factors are: product, price, services, distribution and image of product. That study
focused, the main factor (measure) of product quality is customer satisfaction itself. To
30
achieve high customer satisfaction, it is crucial for companies to make a product that
fulfills the customer’s requirements.
The [ CITATION Jia13 \l 1033 ] Mention the major two factors that impacts on the
measuring satisfaction of customer. The first factor is perceived value which depends on
image and price products. And another factor is perceived quality which depends on
Reliability, Tangibles, Empathy, Responsiveness and Assurance.
According to [ CITATION JGG00 \l 1033 ], Presented the four applicable models for the
measuring customer satisfaction. These are: The disconfirmation of expectations model,
the performance model, the rational expectations model and the expectations-artifact
model
According to [ CITATION VuM18 \l 1033 ], Mention the various models for measuring
customer satisfaction which are applicable for further research. These are: National
Customer Satisfaction Index (NCSI), Service quality (SERVQUAL), Multi-criteria
Satisfaction Analysis (MUSA), the Ordered Probit and Ordered Logit model, Important-
Performance Analysis (IPA), Cluster Analysis and Data Envelopment Analysis (DEA).
31
sale service advantages like Competitive advantage, Customer satisfaction, Long- term
customer relationship, customer retention and loyalty, New product success and
development, High profit, Differentiation, Branding, etc. The[ CITATION PGa07 \l 1033
] said an effective after-sales service protocol is essential to streamline service
management and meet customer's expectations, it can let you experience customer
delight, while also saving on your bottom-line and it generates profit.
However, most of the business organizations are not aware about the after-sales service
factors and its impact towards the customer satisfaction. Failing to realize the importance
of the factors can lead to a disastrous and threatening business relationship. This may
lead dissatisfied customers switch to a competitor or the company lose potential for new
customers due to negative word-of-mouth effect. Hence, every business should know the
objective and importance of having after sale service and implement it to satisfy
customers and make them loyal.
The study made by [ CITATION Sey11 \l 1033 ] on ‘the relation between after-sales
services and entrepreneurial opportunities: Case study of Iran-Khodro Company.’ The
population of that study was 27000 people who bought cars of Iran-Khodro Company in
2009. The sample size was 379 people based on Morgan’s table. The study was a
descriptive research that typically uses the data derived from questionnaires using a five
point likert scale. For analyzing the data derived from the questionnaire, Structural
Equation Modeling / Path Analysis, Tests of Fit and Regression Test were conducted,
while LISREL 8.5 and SPSS 16 software were used for analyzing the data. The main
purpose of the paper was to study the effect of technical and electronic after-sales
services on entrepreneurial opportunities. They concluded that after-sales services play a
key role in supporting marketing activities to enhance customer loyalty, and thus to
increase profitability in the long term. Therefore, many huge companies including car
manufacturers also utilized it as an entrepreneurial opportunity for more profitability. The
results of the study show that technical after sales services in Iran-Khodro Company is
effective on entrepreneurial opportunities based on market and product.
32
Accessibility of After Sales Services
Accessibility means the physical availability of products to customers which were
managed by the company. The accessibility is also known the availability or delivery of
after-sales-services. Delivery refers to how well the product or service is brought to the
customer. It includes speed, accuracy, and care throughout the process [ CITATION
Kot12 \l 1033 ].Delivery is the setting up, by the service provider, of all the components
required for the operation and maintenance of a service as defined in the service
specification and to be used by the customers.
33
customers. Also, the efficiency of after sale service had a direct and positive relationship
with customers’ satisfaction level.
The most common definition of quality is the comparison customers make between their
expectations and perceptions of the received product or service. Quality is a multi-
dimensional concept[ CITATION Iva10 \l 1033 ].Researchers have identified five
principal dimensions, namely reliability, responsiveness, empathy, assurance and tangible
to judge service quality[ CITATION SMu15 \l 1033 ].
Quality is clearly the key to value creation and customer satisfaction. Product and service
quality, customer satisfaction, and company profitability are intimately connected. Higher
levels of quality result in higher levels of customer satisfaction, which support higher
prices and (often) lower costs. The quality of customer service departments varies
greatly. At one extreme are departments that simply transfer customer calls to the
appropriate person or department for action with little follow-up. At the other extreme are
departments eager to receive customer requests, suggestions, and even complaints and
handle them expeditiously. Some firms even proactively contact customers to provide
service after the sale is complete [ CITATION Kot12 \l 1033 ].
The increasing importance of the After-sales service provision calls for proper
management of the existing processes and activities to encourage a continuous
improvement of service quality, which will help to secure the satisfaction of customers
and future business. But as customers demand often are different, the AS business has to
be managed in an agile and responsive manner to be capable of delivering customer
value, in the attempt to stay competitive. This is unfortunately a cost and resources heavy
issue [ CITATION Hvi12 \l 1033 ].
34
According to [ CITATION Ali11 \l 1033 ] the quality of After-Sales-Services divided
into two variables. The first is Delivery service quality which is focused on Reliability in
delivery times, Quality of the product packaging when delivered, Transfer of product to
your place, Quality of the product itself when delivered, and Reception of the proper
invoice/delivery papers, Kindness and friendliness of the delivery personnel, Appearance
of the delivery personnel are the components which can applied to maintain delivery
service quality by the business. And another is Installation service quality which focused
on Accurate information about time of installation, Time elapsed between delivery and
installation, Attentiveness of installation personnel in order to avoid damages, Flawless
of the installation, Kindness and friendliness of the installation personnel, Advice and
instructions given by the technicians are the components which can apply to maintain
installation service quality.
35
For having well-performing After-sales Service involves collaboration between function
and department as to solve the problem rising for customers. This requires a process
overview, which enables the participants of a value stream to identify other stakeholders
and enablers, so these can be contact quickly and start improve the areas of focus
[ CITATION Hvi12 \l 1033 ].
36
in considering the growing competition of the market and increasing profitability and
better access to the market, as well as increasing the customer satisfaction level.
Maintenance and repair (servicing), spare parts supply, warranty, hotline service,
roadside repair, home to home repairing, etc. are the forms of after sales service of
motorcycles.
A research named ‘The Effect of Price, Brand, and After-Sales Service to the Purchasing
Decision Motorcycles Yamaha Matic at PT. Hasjrat Abadi Branch Kendari’ conducted by
37
[ CITATION 1Dz18 \l 1033 ]. The research aims to determine and describe the effects of
price, brand and after sales service on purchase decision of Yamaha Matic motor cycle in
PT. Hasjrat Abadi Branch of Kendari. Research populations are all of the customers in
PT. Hasjrat Abadi Branch of Kendari. The sample size was 93 customers. The research
used multiple linear regression analysis. Results of the research determine that (1)
simultaneously, there are significant effects of price, brand and after sales service
variables on purchase decision. (2) The price variable affects significantly on the
purchase decision. (3) The brand variable affects significantly on the purchase decision.
(4) The after sales service variable affects significantly on the purchase decision. Better
after sales service given will lead to higher purchase decision.
38
square Test and Factor analysis. Data were collected through questionnaire using likert
scale. The study basically focuses on after sales service offered by “TVS Motors Ltd”.
The study concluded on Customer satisfaction is a strategic goal of any organization,
since a satisfied customer is the core concern of any organization; they pay close
attention to the factors that influence customers’ satisfaction. After sales service is one of
the important factor that influence customer satisfaction in case of durable goods. After
sales service is needed to prevent dissatisfaction, frustration and it will among present
customers against the product and its manufacturers.
Though these theories are used to know customer satisfaction, the researcher used
disconfirmation theory because this theory considers factors like expectation, desire and
actual performance on the product or service are clearly used to know the satisfaction of
customers that has been stated in the rest theories.
39
2.5. Customer satisfaction on after sales service
Customers are necessary for the continuous existence of an organization. Since the
survival of any business is dependent on customer, the main purpose of every business
should be satisfying its existing customers and attract a new customer. Hence, in order to
be successful, organizations have to continuously measure satisfaction level of their
customers in order to assure their existence in the market. Now a day’s many
organizations measure the satisfaction and loyalty of their customer on service they offer
after they sold the product.
After-sales services can create sustainable relationships with customers and contribute
significantly to customer satisfaction by offering different after-sales services during the
various stages of the primary product lifecycle, the provider can ensure product
functionality and thereby customer satisfaction [ CITATION DrM17 \l 1033 ].This may
lead to a fruitful relationship between the provider and the customer over time, allowing
for more transactions.
There was a study made by [ CITATION Zei14 \l 1033 ] on ‘The Role of After-Sales
Service in Customer Satisfaction: Case Study (Samsung House Appliances).’ The
research method of the study was descriptive and correlation method. The population of
40
the research included individuals who used after sales services of Samsung house
appliances in Golestan Province. Sampling method is stratified sampling. After-Sales
Service Questionnaire and Customer Satisfaction Questionnaire were used for data
collection and 384 Questionnaire were collected from respondents. Descriptive and
inferential statistics methods were used for data analysis. The findings showed that
between After-Sales Service and Customer Satisfaction, there is significant positive
correlation.
41
A study made by [ CITATION Ali111 \l 1033 ] on ‘Impact of after Sale Service
Characteristics on Customer Satisfaction’. The Researcher examines the impact of after
sale service on customer satisfaction in home appliance industry of Pakistan. The
research totally based on secondary data from previous researches. And researcher
concluded on that the company to adopt a good after–sales service management to
enhance the effectiveness and efficiency to serve the customer is important.
42
service needed by other units of the organization for the performance of their
organization for the performance of their function, at an optimum returns investment is
generated.It is a combination of actions carried out to retain an item/machine
equipment/system/plant in Order to restore it to an acceptable working
condition[ CITATION OBE16 \l 1033 ].
Maintenance and repair are an important element of product support, which has required
companies to invest significant resource. Preventive maintenance is undertaken to clean,
refurbish or replace parts of equipment which otherwise would be liable to fail.
Mechanical parts, for example, normally require regular maintenance as in the case of
automotive vehicle[ CITATION KGo99 \l 1033 ].According to [ CITATION MUH11 \l
1033 ], Described the repair and maintenance on two forms. One is reactive maintenance
policies which may be described as a firefighting approach to maintenance service.
Equipment is allowed to run until failure. Then the failed equipment is repaired or
replaced. Another is proactive maintenance policies which is a strategy to perform
maintenance actions before the actual failure occurs. Various classifications of proactive
maintenance include usage based maintenance, condition based maintenance, and
opportunity based maintenance. Maintenance and repair programs help customers keep
purchased products in good working order. According to [ CITATION RPo10 \l 1033 ],
the repair and maintenance service function includes all activities associated with repair
from the instant a service does not offer one or more of the specified features to the
instant these features are restored for use by the customer. The process must also be
consistent from the customer’s perspective, irrespective of which product or service is
being repaired.
Generally, the maintenance will be in different forms, such as: Routine maintenance
which includes washing, cleaning, etc., Schedules maintenance which covers the
inspection, adjustment repair, replacement pre-determined from past failure pattern, etc.,
Repair maintenance this involves the disassembling of the equipment, to locate the fault,
to find out that part needed to replace it to reassemble, then to check the equipment to
ensure that it has restored its function capacity. And another is Breakdown maintenance a
field component or system is repaired and put back to operating condition.
43
The four elements are the most important for the repair and maintenance service, which
impacts on customer satisfaction. The first is availability of the repair services or
accessibility to reach service center, second is quality of the services or effectiveness on
repairing, third is competency of the service staff or capacity of well serving and fourth is
repair and maintenance cost which paid by customers.
Maintenance, in general, has three objectives: care for property, customer satisfaction,
and profitability, care for property, customer satisfaction, and profitability. Customer
satisfaction can primarily be obtained by means of equipment that is available, capable,
and dependable. Many customers are willing to take care of as much of their maintenance
themselves as possible. This kind of behavior should be welcomed by the supplier, as it
quickly takes equipment back into use and it satisfies the customer. Money and time are
perhaps the two most easily quantifiable criteria for maintainability and maintenance.
Money should be the most important; even military programs use money as the principal
measure[ CITATION Hei02 \l 1033 ].
So, In general perception, the repair and maintenance have positive impact on customer
satisfaction. By providing best effective repair and maintenance service, the companies
can made their customers more satisfied. In the case of motorcycle it is most important
for satisfying the customer. The motorcycle companies were provides efficient repair and
maintenance service and some of them were included in warranty and some was not
included in warranty.
A research conducted by [ CITATION Asg11 \l 1033 ]on ‘Study the Effects of Customer
Service and Product Quality on Customer Satisfaction and Loyalty.’ Statistical
population of the study consists of “all Tata Indica Car owners, product of Tata Motors”
which has bought their cars in 2008-2010 (Apr '08-Jan '10) in Pune. The data required for
study is collected through a structural questionnaire using seven-point likert scale and
234 respondents are selected for the sample. For analyzing data derived from
questionnaire regression and ANOVA test has been used and the software which have
been used for analyzing the data is SPSS 16. Results of the study show that there are high
positive correlation between the constructs of customer service and product quality with
customer satisfaction and loyalty.
45
According to [ CITATION Gee14 \l 1033 ]cited (Driessen et al., 2013), the spare parts
industry is about high-value capital assets, e.g. air planes, trains, large ships and
expensive production machines. For these high-value capital assets, the financial risks are
high if an asset is not available to provide their services or to manufacture their products.
Therefore, the maintenance organizations want to guarantee a certain up-time for an asset
and an important component is the availability of the right spare parts at the right place
and at the right time[ CITATION Gee14 \l 1033 ].
Within spare parts inventories, there are two types of spare parts: [ CITATION Gee14 \l
1033 ]1. Repairable spare parts: parts that are repaired rather than procured, i.e. parts
that are technically and economically repairable. After repair the part becomes ready-for-
use again. 2. Non-repairable spare parts or consumables: parts which are scrapped after
replacement.
Practical spare part management is the foundation for sustain reliability and is crucial to
the success. The some elements are very important for the spare parts logistic
management. These are: delivery of spare parts, quality of spare parts, price of spare parts
and warranty for the spare parts.
Besides the repair centers, larger markets also have authorized service agents and dealers.
The main warehouse receives orders for parts from the sub-dealers who service the end
customers. The orders can be under warranty free replacement or sale of part. Warehouse
accordingly services orders and delivers parts locally to the dealers and collects the
defectives back. Critical and high value spare parts have to be made available in a nearby
warehousing location and logistical arrangements are required to be made to reach it to
the site in a fastest and quickest reach time, which are a few hours in most of the cases.
Spare parts are delivered in two modes. One is under warranty service where the
customer has bought a warranty contract with the company including free replacement of
spare parts. In such situation, the good part is issued by the warehouse instead of a
defective spare part. The other mode is sale of part where the customer pays for a spare
part and makes the purchase. The price of spare parts depends on the cost of spare parts
logistic management. The cost of purchasing department, transportation costs, handling
46
costs and administration costs are the logistics management costs that have impact on
price of spare parts. The proper management of delivery has helps the reduce price of
spare parts. Another, the quality of spare parts depends on original and genuine spare
parts. It is important to make sure that, buy genuine parts for the machinery. One thing
that most admit, the original spare parts is the fact that they are durable. And need to
make sure that, to getting value for money, should purchase original spare parts for the
machinery.
According to[ CITATION Jos11 \l 1033 ], Spare parts inventory are needed for
maintenance and repair of final products, vehicles, industrial machines and equipment,
frequently requiring high investments and significantly affecting customer satisfaction.
Inventory management is complex due to the large number of different items and low
demands.
The proper management of spare parts supply have consists the higher level customer
satisfaction and that also helps the make them loyal. So, another important factor of after
sales service was a spare parts supply management. For having repaired of vehicle the
spare parts is essential. By proper management of spare parts supply, the repair and
maintenance service can be quick and efficient. So it is significantly concerned on
customer’s satisfaction. In the case of motorcycle, most of the companies were supplies
the spare and parts of the vehicle to support the repair service. And another thing, by
supplying genuine parts customer can be more satisfied.
The [ CITATION Jos11 \l 1033 ] made a study on ‘Spare parts inventory control: a
literature review’. The researcher study previous researches and studies related on spare
parts management and presents the result that the choice of the inventory control model
for each given spare part is a critical activity into the general process of inventories
management with multiple items. The dynamic classification of items according to its
stage in the life cycle should help managers in the choice and calibration of models for
each item. In this context, the term “model” is applied not only to procedures of
inventory control, but also to the decisions on initial orders, final orders and disposal,
including the demand forecasting methods.
47
A study made by [ CITATION Naz11 \l 1033 ] on ‘AN EMPIRICAL ANALYSIS OF
AFTER SALES SERVICE AND CUSTOMER SATISFACTION.’ The data was
collected using through questionnaire and measured on the 5 point Likert scale by
dividing the questionnaire in independent and dependent variables. The research
measured the quality of service by using the SERVQUAL method. The main variables
effecting customer satisfaction are product quality and social responsibility. The study
concluded, in today’s ever changing competitive environment, business cannot survive
unless they satisfy their customers. The delivery of after sales service by a company is
critical in satisfying customer needs and perceptions. In order to have quality after sales
service a proper delivery system has to be in place. The results reveal that customer
satisfaction increases with better service delivery.
A study made by [ CITATION DrJ13 \l 1033 ] on after sales services for Honda Motors:
an evaluative study. Researcher has used structured questionnaire to collect information
and 63 respondents are selected for the sample. Simple table method is followed to
analyze the data. The main aim of that study has to know the perception of the customers
towards the service quality provided by the Honda automobiles. And it also aimed to
explain the role of after-sales service on customer satisfaction. Much number of questions
relating to the service quality was posed to the customers and obtained valuable
information. The result shows that Honda Company is providing considerable quality of
service to the customers. Most of the respondents are satisfied with the service quality,
knowledge of the service personnel, delivery time and prices for services and finally
delivery time of the vehicle. Sign boards, infrastructure and availability of spare parts are
very convenient in Honda Automobiles.
48
provide free maintenance and repair services for a specified period of time at a specified
contract price, may diminish in importance. Most of motorcycle manufacturer warranties
for free servicing and maintenance within one year and two to four years warranties on
engine. According to [ CITATION Phi01 \l 1033 ], the increase in disposable or never-
fail equipment makes customers less inclined to pay from 2 percent to 10 percent of the
purchase price every year for a service.
Fast response towards the warranty claim will give an indication of good quality and
value product[ CITATION Moh09 \l 1033 ].The manufacturers of most products offer
warranty in some markets such as automobiles. Manufacturers try to gain a competitive
advantage by offering longer warranty periods. Warranty reduces the financial risk of
owning products and therefore it is an important element of customer
support[ CITATION KGo99 \l 1033 ].
A product warranty has three uses. The first is to act as a competitive tool by increasing
the customers’ perception on the product reliability which could eventually lead to the
higher confidence level in making the purchasing decision. The second factor is to gain
the market share. And the third is to limit the cost of after sales especially in the situation
where the products have defects or failed to perform according to its function in the
market. Consumers always believe that a superior warranty will be associated with
greater quality and less risk. Customers are satisfied when their purchasing risks are
getting lower due to the benefits of warranty. Customer dissatisfaction can arise due to
poor performance of the purchase item and/or the quality of warranty service provided by
the manufacturer. The customer dissatisfaction can be minimized due to its effective
warranty logistics such as the response time to warranty claim, the time to rectify a failed
item, delay resulting from lack of spares, workshop resources and so on. This implies that
product warranty is very important from the customer satisfaction as well as from the
manufacturer’s profitability point of view [ CITATION Moh11 \l 1033 ].
The some elements have a most concern with warranty services of the motorcycle. They
are; warranty of the vehicle, warranty of the spare parts, terms of the warranty claim and
responses of authorized distributor, and the duration of the warranty.
49
With a Better warranty terms a customer can attain improved benefit of purchasing cost
for repair or technical damage of the product this results in greater sale and profit. Long
warranty time is also one of the bundles of satisfaction the consumer. A warranty is
assumed an obligation for seller; it is a responsibility for seller and a satisfaction for the
buyer that the product will run in long term. Many weak organizations offer better
warranty terms than their competitors to gain competitive advantage. Organizations
consider brand loyalty is result of customer satisfaction. Therefore, credibility gap can be
filled through offering better warranty terms. Valuable warranty terms and time increases
satisfaction of customer [ CITATION Ali111 \l 1033 ].
To increase the goodwill of company and gain the customer’s belief the warranty service
has play most essential role. The most of motorcycle manufacturer was provides warranty
for their customer to increase the assurance. The satisfaction of customers on the
warranty has depends on the duration of time. The long warranty period makes the
customer more satisfied. So we can easily predict that, the warranty service has
significant impacts on customer satisfaction.
The [ CITATION Moh11 \l 1033 ] conduct a study on ‘Warranty and its Effect towards
Customer Satisfaction in Malaysia’s Electronic Industry.’ The research is a quantitative
research where information was gathered from the self-administered questionnaire. The
population decided was 329 from the total of 47 customers around Peninsular Malaysia
multiply by 7 respondents for each PESB customer. Out of the total population, 100
respondents were expected to respond to the research survey. Pre-testing of the
questionnaire was made during the pilot study. The questionnaire are developed using
likert scale For the purpose of the study, the researcher used the Statistical Software
Package for Social Sciences (SPSS) Version 17to compute all the data gathered from the
questionnaire. The techniques of analysis used in the study were descriptive (mean,
standard deviation) and inferential analysis (regression) to sum up the data collected.
Results indicated to confirm on the earlier literature that there was a strong relationship
between warranty and customer satisfaction in either the consumer or the business market
environment.
50
A study conducted by [ CITATION MSh13 \l 1033 ]on ‘Consumer Attitude towards after
Sales Service.’ The sample size was 100 consumers in four super markets in Mysore city.
The primary data was collected through questionnaire using four-point scale. Simple
percentages methods were used to analyze the data. The study focuses on an analysis of
customer attitude towards after sales services. In order to make a comparative study, four
super markets established in Mysore city were selected. They are Big Bazaar, More,
Loyal World and Easy Day. The research shows the customers are deal oriented, they do
not want just products but they expect something more. As a result of which more and
more companies are strengthening their after sales service department. That helps them to
ensure that customers are happy even after they have purchased the product. After sale
service is a marketing strategy designed to create brand image which ultimately results in
Brand loyalty.
51
A study conducted by [ CITATION OLa13 \l 1033 ]on Impact of After-Sales-Service on
consumer satisfaction and retention: A study of LG electronics in Ibadan, Nigeria. The
study examined the impact of after sales service on customer satisfaction and retention
with special reference to LG electronics in Ibadan, Nigeria. The population of the study
covered selected distributors and customers of LG Electronics in Ibadan. The sample size
for that study was sixty (60) respondents who were randomly selected from ten (10) LG
electronics distributors and fifty (50) of their customers respectively. The instrument used
in that study is a close-ended questionnaire that was designed by the researchers.
Ordinary least squares multiple regression analysis was used to analyze the data. The
result showed that the predictor variables (i.e. Product delivery, installation and warranty)
were significantly joint predictors of customer satisfaction and retention with (F (3, 57) =
123.32; R2 = 0.875; P<.05). The predictor variables jointly explained 87.5% of customer
satisfaction and retention, while the remaining 12.5 % could be due to the effect of
extraneous variables.
The important considerations of exchange offer of motorcycles are valuation of the old
vehicle, exchange of spare parts and other terms and conditions for exchange.
Exchange offer isn’t necessary for companies. But they offer for exchange because it
helps the increasing customer satisfaction. The most of the motorcycle companies
provides this service to retain customer as a long time. The companies offer this service
seasonally or regularly. It is important way of satisfying customer than other components
of after sales service.
52
A study conducted by [ CITATION Sat14 \l 1033 ] on ‘A Study of Sales Promotion Mix
on Customer Satisfaction with Reference to Shopping Malls in Indore’. The independent
variables of the study are Lucky and Bumper offers, Frequent and Warranty Offers,
Monetary and Quantity Benefit Offers, Gift and Exchange offers and Discount offers.
The sample size of the study is 175 respondents. The data were collected through
structured questionnaires. Various statistical tools were used for analyzing the data. The
SPPS 17 and MS-Excel were also used for analysis. The simple variance analysis
(ANOVA) model was used for measuring customer satisfaction. The result shows that,
the Lucky and Bumper offers, Frequent and Warranty Offers, Monetary and Quantity
Benefit Offers, Gift and Exchange offers and Discount offers have significant impacts
on customer satisfaction.
53
CHAPTER-III: METHODOLOGY OF THE STUDY
This chapter includes the detail of research methodology that has been used
in this thesis. It is concerned with formulating the plans and procedures,
measurement instrument development, methods for data collection, analysis
and interpretation. The chapter deals with justification the methodology
used for finding solutions to the research problems. The strategy of
sampling design (i.e. universe of population, sampling frame, and sample
selection technique and sample size) has also been discussed in this chapter.
It also describes the participating organization and outlines the methods
gathering the data, characteristics of data and statistical tools to be used to
analyze the data.
54
In the first phase of the study, the after sales related information was collected from
Website of Motorcycle Company. The researcher has Identifies the after sale services
offered, to understand how it is offered and to identify challenges in implementing after
sale service in motorcycle industry. In the second phase, the survey was conducted on
customers through questionnaire. In third phase, the researcher has analysis the data using
various tools and interprets the result.
For qualitative and quantitative data collection, sampling was executed using the
probability sampling technique. In this research, the simple random sampling method was
used to select the sample. The information was collected from the customers of
motorcycle. The sample size was 108respondents form the motorcycle customers.
55
3.5. Sources of Data
The data that have been employed includes detailed information on after sale service
components and satisfaction of customers in the Motorcycle industry using both primary
and secondary sources.
Primary Source
The primary source of data was collected from sample respondents relating to the
variables of after sale services, how after sale service is offered, challenges faced in
implementing after sale service, and the satisfaction of customers in the after sale
services.
Secondary Source
The secondary source of data has collected from literatures found related to the topic and
from company profiles and documents. The major sources of this purpose were website,
books, journals, and articles.
57
3.8. Data Analysis and Presentation
Data analysis was done using SPSS software version 20. The frequency, percentage were
used to describe the nature of data. Mean and standard deviation were used to measure
the experience of customers on after sales service variables. And regression analysis was
used to the describe relationship between after sales service and customer satisfaction.
The hypotheses were tested through the regression analysis ANOVA results.
3.11. Validity
The questionnaires were distributed to respondents after the checked validity by guide
teachers. This study also addresses content validity through the review of literature and
adapting analysis instruments used in SPSS software and regression analysis.
58
3.12. Reliability
Reliability is defined as the proportion of the variability in the responses to the survey
that is the result of differences in the respondents. That is, answers to a reliable survey
will differ because respondents have different opinions, not because the survey is
confusing nor has multiple interpretations. To check the reliability of variables used in
the study, the researcher employed reliability analysis on SPSS 20 version.
59
CHAPTER-IV: DATAPRESENTATION AND
ANALYSIS
This chapter includes the demographic information of respondents and
presentation of data using descriptive as well as inferential statistics. The
data were analyzed in SPSS (Statistical Package for Social Science) version
20. All the variables were measured and analyzed using regression analysis.
The result of the analysis based on the hypothesis has been also described in
this chapter. This study used the primary data collected by the questionnaire
provided at 108the respondents were user of Motorcycle.
60
4.1.2. Cast of the Respondents
This was designed to showing the information about the respondents by the cast. To
collect the information from respondent five options was used. These were Brahmin,
Chhetri, Janajati, Dalit and other casts. The following table shows the detail information
of the respondent based on the cast.
Table 2 shows the information about respondents based on the cast. From the total 108
respondents, 63 percent are Brahmin, 23.1 percent are Chhetri, 9.3 Percent are Janajati
and 4.6 Percent are Dalit.
61
25 years, 26 to 40 years, 41 to 55 years and above 55 year. The following table shows the
detail information of the respondent based on the age.
Table 4 shows the information about respondents based on the age. From total 108
respondents, 16.7 percent were below 25, 65.7 percent were 26 to 40, 15.7 percent were
41 to 55 and 1.9 percent were above 55 years.
62
Education Level Up to SLC 10+2 Bachelo Above Total
r bachelor
Valid Frequency 20 22 26 39 107
Valid Percent 18.7 20.6 24.3 36.4 100
Source: Own survey data 2018
Table 6 shows the information about respondents based on the education level. From the
total respondents 107 respondents attain this option and one respondent missing this
option. From the 107 respondents, 18.7 percent are up to SLC, 20.6 percent are 10+2,
24.3 percent are bachelor and 36.4 percent are above bachelor.
64
4.2. Repair and Maintenance service
Under this variable four questions were asked to the respondents. The first question was
designed to know about the respondents who use the repair and maintenance service or
not. Another question designed to knowing the experience of respondents on cost of
repair and maintenance service. The third question designed to know how many times
respondents gets the repair and maintenance service within a year. The fourth question
designed to the measuring satisfaction of respondents on repair and maintenance service.
66
4.2.4.1. Accessibility of RMSs
This question has five options to collect the information about accessibility of RMSs
from the sample respondents. The options were, ‘Very Good’, ‘Good’, ‘Neither Good nor
Bad’, ‘Bad’ and ‘Very Bad’. The following table shows the detail information based on
the respondents’ answers under this question.
70
Measures Valid Frequency Valid Percent
Yes 50 47.6
No 55 52.4
Total 105 100
Source: Own survey data 2018
Table 19 shows the,3 respondents did not attain this question. From the105 respondents
47.6 percent was says the price of the branded spare parts is satisfactory and 52.4 percent
said the price was expensive.
71
4.3.6.1. Availability of spare parts
This question has includes five options to collect the information about availability of
spare parts from the sample respondents. The options were, ‘Very Good’, ‘Good’,
‘Neither Good nor Bad’, ‘Bad’ and ‘Very Bad’. The following table shows the detail
information based on the respondents’ answers under this question.
73
4.4.1. Warranty gets or not
The question ‘Did you get the warranty service on your motorcycle as on time of
purchase?’ was designed on ‘yes/no’ model. The respondents can gave the answer ‘yes’ if
he/she gets the warranty or ‘no’ if he/she don’t gets the warranty as on time of purchase.
The following table shows the detail information based on the respondents’ answers
under this question.
76
4.5. Exchange offer
Under this variable three questions were asked to the respondents. The first question was
designed to know about the respondents who exchange or not exchange his/her
motorcycle. Another second question designed to know the plan of respondents to
exchange motorcycle in future. The third question designed to the measuring perception
of respondents on the exchange offer.
77
From total 108 respondents, 2 respondents missing this option. The table 30 shows the,
from 106 respondents, 67.9 percent respondents wants to exchange motorcycle and 32.2
percent respondents was not wants to exchange motorcycle in future. The result shows
that, the most of motorcycle user interested towards exchange.
78
‘Neither Good nor Bad’, ‘Bad’ and ‘Very Bad’. The following table shows the detail
information based on the respondents’ answers under this question.
79
4.6. Respondents views on impact of overall after sales service
The question 'In your view, does the after sales service have changes the level of
satisfaction?' was designed to know the respondents view on relationship between after
sales service and customer satisfaction. The question was asked on the 'yes/no' Model.
The following table shows the detail information based on the respondents’ answers
under this question.
80
Performance of Repair and 107 2.5981 0.83395
maintenance service staffs'
Source: Own survey data analysis 2018
The table 35 shows the mean and standard deviation of Repair and maintenance service
variables. Satisfaction measurement started from 'very good' to 'very bad' and scale
started from 1 to 5. The average point of satisfaction measurement scale was 3.
According to above table, mean of the all repair and maintenance variables were between
the 1 (highest point of satisfaction) and 3 (average point of satisfaction and
dissatisfaction). Thus, the result provides information that, the motorcycle users has
satisfied with accessibility, quality and performance of repair and maintenance services.
The mean of the accessibility of repair and maintenance service was closest with
1(highest point of satisfaction)and mean of Performance of Repair and maintenance
service staffs was closest with 3(average point of satisfaction and dissatisfaction) among
the variables. So, the motorcycle users have more satisfied with accessibility of repair
and maintenance service and less satisfied with performance of staffs among the
variables.
Another, the performances of repair and maintenance service staffs have a highest
standard deviation and accessibility of repair and maintenance services have a lowest
standard deviation among the variables. It is sufficient to notice that, the satisfaction on
the accessibility of the repair and maintenance service was more stable and satisfaction
on the staffs' performance was more unstable among the variables.
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Spare parts supply management 107 2.3645 0.86212
system
Source: Own survey data analysis 2018
Table 36 shows the mean and standard deviation of the spare parts supply variables.
Satisfaction measurement started from 'very good' to 'very bad' and scale started from 1 to
5. The average point of satisfaction measurement scale was 3. According to above table,
mean of the all repair and maintenance variables were between the 1(highest point of
satisfaction) and 3(average point of satisfaction and dissatisfaction).Thus, the result
provides the sufficient notice that, the motorcycle users satisfied with availability, quality
and management system of spare parts supply. And the availability of spare parts has a
closest mean with 1(highest point of satisfaction) and spare parts supply management
system has closest mean with 3(average point of satisfaction and dissatisfaction) among
the variables. So, the motorcycle users have more satisfied with availability of spare parts
and lowest satisfied with spare parts supply management system of company among the
variables.
The standard deviation on availability of spare parts was lowest and on spare parts supply
management was highest among the variables. Thus, it is sufficient to notice that, the
satisfaction level on availability of spare parts have more stability and satisfaction on
spare parts supply management system of company have more instability among the
variables.
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The responses of the company for the 107 3.5421 1.10982
warranty claim
Source: Own survey data analysis 2018
Table 37 shows the mean and standard deviation of the warranty service variables.
Satisfaction measurement started from 'very good' to 'very bad' and scale started from 1 to
5. The average point of satisfaction measurement scale was 3. According to above table,
the mean of the accessibility to warranty claim was between 1(highest point of
satisfaction) and 3(average point of satisfaction and dissatisfaction). So the customers of
motorcycle were satisfied with accessibility of warranty claim. And mean of the
flexibility to claim and mean of there sponses of company for warranty claim were
between 3(average point of satisfaction and dissatisfaction) and 5(Highest points of
dissatisfaction). So, the motorcycle customers were dissatisfied with flexibility on the
terms & conditions and procedures of the company for the warranty claim and with the
responses of the company for the warranty claim. The responses of the company for
warranty claim have closest mean with 5 (Highest points of dissatisfaction) than
flexibility to claim. So, the dissatisfaction level of customers on flexibility to claim
warranty was low and on responses of company for warranty claim was high among the
each other. Thus, the result provides sufficient notice that, as on overall, the customers
has dissatisfied with warranty service of motorcycles.
Another, responses of the company on warranty claims have highest standard deviation
and accessibility to warranty claim have lowest standard deviation among the variables. It
is sufficient to notice that, the satisfaction level on responses of the company on warranty
claim was more stable and the satisfaction level on accessibility to claim warranty was
more unstable among the variables.
83
Accessibility to reach exchange 106 2.4434 0.73134
center of the company
Another, exchange offer managing procedure has higher standard deviation and
accessibility to reach exchange center have lowest standard deviation among the
variables. It is sufficient to notice that, the satisfaction level on exchange offer managing
procedure more unstable and satisfaction level on accessibility to reach exchange center
was more stable among the variables.
84
4.8. Analysis impact of After-sales service on Customer
satisfaction
Table 39: Regression analysis model summery of repair and maintenance service and
customer satisfaction
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 0.530a 0.281 0.274 1.79541
a. Predictors: (Constant), Repair and maintenance service
Source: Own survey data analysis 2018
The table 39 shows, the value of R = 0.530 indicates a good relationship between repair
and maintenance service and customer satisfaction.
The value of R² = 0.281 explains that 28.1 percent of the variation in satisfaction is
explained, while 71.9 percent remain unexplained by the after sale service components.
Thus, the predictive ability of the model is Low.
Table 40: Regression analysis ANOVA results of repair and maintenance service and
customer satisfaction
ANOVAa
Model Sum of Squares d. f. Mean F Sig.
Square
1 Regression 129.981 1 129.981 40.32 0.000b
3
Residual 332.019 103 3.223
Total 462.000 104
a. Dependent Variable: Customer Satisfaction
b. Predictors: (Constant), Repair and maintenance service
Source: Own survey data analysis 2018
85
The table 40 shows, the ANOVA output table describes the variance accounted for in the
model. The F value was (40.323) at 5 percent level of significance. The significance
value (0.000) is less than 0.05.Thus, the hypothesis 'there is no significant impact of
repair and maintenance services on customer satisfaction' was rejected. Therefore, the
stated repair and maintenance service have an effect on customer satisfaction, as is
indicated by the F statistics.
Table 41: Regression analysis coefficients for repair and maintenance service and customer
satisfaction
Coefficientsa
Model Unstandardized Standardize t Sig.
Coefficients d
Coefficients
B Std. Beta
Error
1 (Constant) 5.309 0.759 6.993 0.000
Repair and maintenance 0.622 0.098 0.530 6.350 0.000
service
a. Dependent Variable: Customer Satisfaction
Source: Own survey data analysis 2018
Table 41 shows the repair and maintenance service components are found significantly
related to overall satisfaction level of repair and maintenance service customers, as is
seen in the standardized coefficient column. The standardized coefficient beta values
indicated shown above indicates the (0.530) unit change in repair and maintenance
service has a unit change in overall satisfaction of customers. This shows that repair and
maintenance service has an effect on customer satisfaction.
The value of R² = 0.006 explains that 0.6 percent of the variation in satisfaction is
explained, while 99.6 percent remain unexplained by the spare parts supply. Thus, the
predictive ability of the model is very Low.
Table 43: Regression analysis ANOVA results of spare parts supply and customer
satisfaction
ANOVAa
Model Sum of Squares d. f. Mean F Sig.
Square
1 Regression 2.449 1 2.449 0.637 0.427b
Residual 388.463 101 3.846
Total 390.913 102
a. Dependent Variable: Customer Satisfaction
b. Predictors: (Constant), Spare Parts Supply
Source: Own survey data analysis 2018
The table 43 shows, the ANOVA output table describes the variance accounted for in the
model. The F value was (0.637) at 5 percent level of significance. The significance value
(0.427) is more than 0.05. Thus, the hypothesis 'there is no significant impact of spare
parts supply on customer satisfaction' was accepted. Therefore, the stated spare parts
supply has a no effect on customer satisfaction, as is indicated by the F statistics.
Table 44: Regression analysis coefficients for spare parts supply and customer satisfaction
Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
87
B Std. Beta
Error
1 (Constant) 9.338 0.816 11.448 0.000
Spare parts 0.092 0.115 0.079 0.798 0.427
supply
a. Dependent Variable: Customer Satisfaction
Source: Own survey data analysis 2018
The table 44 shows Table 41 shows the spare parts supply components are found no
significantly related to overall satisfaction level of customers, as is seen in the
standardized coefficient column. The standardized coefficient beta values indicated
shown above indicates the (0.079) unit change in spare parts supply has a unit change in
overall satisfaction of customers. This shows that spare parts supply has a few effects on
customer satisfaction.
Table 45: Regression analysis model summery of warranty service and customer
satisfaction
Model Summary
Model R R Square Adjusted R Std. Error of the
Square Estimate
a
1 0.312 0.098 0.089 1.93286
a. Predictors: (Constant), Warranty Service
Source: Own survey data analysis 2018
The table 45shows, the value of R = 0.312 indicates a positive relationship between
warranty service and customer satisfaction.
The value of R² = 0.098 explains that 9.8 percent of the variation in satisfaction is
explained, while 90.2 percent remain unexplained by the warranty service. Thus, the
predictive ability of the model is Low.
Table 46: Regression analysis ANOVA results of Warranty service and customer
satisfaction
88
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regressi 42.001 1 42.001 11.242 0.001b
on
Residual 388.537 104 3.736
Total 430.538 105
a. Dependent Variable: Customer Satisfaction
b. Predictors: (Constant), Warranty Service
Source: Own survey data analysis 2018
The table 46 shows, the ANOVA output table describes the variance accounted for in the
model. The F value was (11.242) at 5 percent level of significance. The significance
value (0.001) is less than 0.05. Thus, the hypothesis 'there is no significant impact of
warranty services on customer satisfaction' was rejected. Therefore, the stated warranty
service has an effect on customer satisfaction, as is indicated by the F statistics.
Table 47: Regression analysis coefficients for Warranty service and customer satisfaction
Coefficientsa
Model Unstandardized Standardiz t Sig.
Coefficients ed
Coefficient
s
B Std. Beta
Error
1 (Constant) 7.161 0.848 8.443 0.000
Warranty Service .297 0.089 0.312 3.353 0.001
a. Dependent Variable: Customer Satisfaction
Source: Own survey data analysis 2018
The table 47 shows, the warranty service is found related to overall satisfaction level of
after sales service customers, as is seen in the standardized coefficient column. The
standardized coefficient beta values indicated shown above indicates the (0.312) unit
change in warranty service has a unit change in overall satisfaction of customers. This
shows that warranty service has an effect on customer satisfaction.
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4.8.4. Regression analysis for relationship between Exchange offer and
customer satisfaction
Table 48: Regression analysis model summery of exchange offer and customer satisfaction
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 0.334a 0.111 0.103 1.98871
a. Predictors: (Constant), Exchange offer
Source: Own survey data analysis 2018
The table 48shows, the value of R = 0.334 indicates a positive relationship between
exchange offer and customer satisfaction.
The value of R² = 0.111 explains that 11.1 percent of the variation in satisfaction is
explained, while 88.9 percent remain unexplained by the exchange offer. Thus, the
predictive ability of the model is Low.
Table 49: Regression analysis ANOVA results of exchange offer and customer satisfaction
ANOVAa
Model Sum of d. f. Mean Square F Sig.
Squares
` Regression 50.556 1 50.556 12.78 0.001b
1 3
Residual 403.406 102 3.955
Total 453.962 103
a. Dependent Variable: Customer Satisfaction
b. Predictors: (Constant), Exchange offer
Source: Own survey data analysis 2018
The table 49 shows, the ANOVA output table describes the variance accounted for in the
model. The F value was (11.242) at 5 percent level of significance. The significance
value (0.001) is less than 0.05. Thus, the hypothesis 'there is no significant impact of
exchange offer on customer satisfaction' was rejected. Therefore, the stated warranty
service has an effect on customer satisfaction, as is indicated by the F statistics.
90
Table 50: Regression analysis coefficients for exchange offer and customer satisfaction
Coefficientsa
Model Unstandardized Standardize t Sig.
Coefficients d
Coefficients
B Std. Beta
Error
1 (Constant) 6.917 0.879 7.870 0.000
Exchange offer 0.364 0.102 0.334 3.575 0.001
a. Dependent Variable: Customer Satisfaction
Source: Own survey data analysis 2018
The table 50 shows, the exchange offer is found related to overall satisfaction level of
after sales service customers, as is seen in the standardized coefficient column. The
standardized coefficient beta values indicated shown above indicates the (0.334) unit
change in exchange offer has a unit change in overall satisfaction of customers. This
shows that exchange offer has an effect on customer satisfaction.
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
a
1 0.540 0.292 0.262 1.68487
a. Predictors: (Constant), Exchange offer, Spare parts supply, Warranty service,
Repair and Maintenance Service
Source: Own survey data analysis 2018
Table 51 shows, the value of R= 0.540 indicates a good relationship between after sale
service components and overall satisfaction of customers in the after sale service.
91
The value of R²= 0.292 explains that 29.2 % of the variation in satisfaction is explained,
while 70.8 % remain unexplained by the after sale service components. Thus, the
predictive ability of the model is not satisfactory.
Table 52: Regression analysis ANOVA results of relationship between overall after sales
service and customer satisfaction
ANOVAa
Model Sum of d. f. Mean Square F Sig.
Squares
1 Regression 108.902 4 27.226 9.591 0.000b
Residual 264.006 93 2.839
Total 372.908 97
a. Dependent Variable: Customer Satisfaction
b. Predictors: (Constant), Exchange offer, Spare parts supply, Warranty service,
Repair and maintenance service
Table 53: Regression analysis coefficients for relationship between overall after sales service
and customer satisfaction
Coefficientsa
Unstandardized Standardize t Sig.
Model Coefficients d
Coefficients
B Std. Beta
Error
1 (Constant) 4.149 1.214 3.419 0.001
Repair and 0.551 0.113 0.482 4.858 0.000
maintenance
service
Spare parts supply -0.094 0.113 -0.080 -0.829 0.409
Warranty service 0.083 0.093 0.086 0.895 0.373
Exchange offer 0.182 0.098 0.172 1.862 0.066
a. Dependent Variable: Customer Satisfaction
Source: Own survey data analysis 2018
Table 53 Shows, the after sale service components like repair and maintenance service,
spare parts supply, warranty service, and exchange offer are found significantly related to
overall satisfaction level of after sale service customers and they have no equal
92
contribution to overall satisfaction levels, as is seen in the standardized coefficient
column.
The standardized coefficient beta values indicated shown above indicates the change in
each after sale service has a unit change in overall satisfaction of customers. For example,
from the table above, a 0.482 change in repair and maintenance service has a unit effect
on overall satisfaction; a change in -0.080 in spare parts supply has a negative unit
change in overall satisfaction of customers. And a change in 0.086 and 0.172 units in
warranty service and exchange offer respectively has a unit change in overall satisfaction.
This shows that after sale service has an effect on customer satisfaction.
93
The main purpose of this study is to find out the impact of after sales service on
satisfaction level of motorcycle users. The topic 'After sales service of motorcycle and its
impact on customer satisfaction' lights the theme of purpose of this study. The variables
repair and maintenance service, spare parts supply, warranty service and exchange offer
are selected to fulfilling the objective of this study.
The motorcycle is popular two wheeler transportation vehicle in the world. It is also more
popular in the Nepal. More than thirty brands of motorcycle are uses in Nepal at now.
The motorcycle manufacturer companies are not incorporated till now but the
multinational companies have doing the exports and marketing activities. Nepalese
traders also involved in distributing motorcycles all over the Nepal as an associated
authorized distributor. They are uses different marketing tools and fighting each other to
gaining more market share and competency.
In this survey, the researcher have used a Quantitative, non-experimental, Descriptive and
cross sectional research design. The population of the study was all customers of
motorcycle who lives in Surkhet. Simple random sampling method was used to select the
sample. The sample size was 108 respondent form customers. Quantitative data were
collected from customers. And some background and literature review related secondary
data were collected through website, books, journals, magazines, reports and articles.
To collect the information the researcher used the self-administrated questionnaire. The
questionnaire divided into six segments. The first segment was related to personal
94
information. It includes seven questions relating to respondents' personal matter. The
second segment was related to repair and maintenance service of the after sales service. It
includes four questions. The third segment of questionnaire was related to spare parts
supply. It includes six questions. Fourth segment was related to warranty service of after
sales service. It includes three questions. The fifth segment was related to exchange offer
of customer satisfaction. It includes three questions. And sixth segment was designed to
measure customer satisfaction on after sales service variables. It includes two questions.
To measuring customer's experience and satisfaction the five point likert scale was used.
During the survey work, some questionnaire were distributed through the researcher
himself and requests the respondents to manage proper time for the fill up the
questionnaire and some of were distributed through friends help and support. All the
questionnaires were collected through friends and researcher himself. The researcher
distributed 110 questionnaires. Out of 110 questionnaires, 108 questionnaires were
returned to the researcher.
Data analysis was done using SPSS software version 20. The frequency, percentage were
used to describe the nature of data. Mean and standard deviation were used to measure
the experience of customers on after sales service variables. And regression analysis was
used to the describe relationship between after sales service and customer satisfaction.
The hypotheses were tested through the regression analysis ANOVA results.
Finally, this study succeeded to find the impact of after sales services on level of
customers’ satisfaction. The main theme of the thesis is satisfaction of the motorcycle
customers towards after sales services. It can be seen that all after sales service variables
have positive impact on customer satisfaction.
95
The total numbers of respondents have a majority of male respondents. (i. e. male
is 92.6 percent.)
The most of the respondents are Hindu and behind the Chhetri, Janajati and Dalit
are as respectively. (i. e. Bramhin 63 percent, Chhetri 23.1 percent, Janajati 9.3
percent and Dalit 4.6 percent)
The sample respondents have a majority of Hindu religion 99 percent and except
Hindu only one religion was found from other religion among the respondents. (i.
e. Christian 1 %)
The majority sample respondents are as on '26 to 40 year' age group and behind
the 'below 25year', '41 to 55 year' and 'above 55 year' are as respectively. (i. e.
65.7%, 16.7%, 15.7% and 1.9%)
From the sample data found that the maximum respondents are married. (i. e.
married 84.3% and unmarried 15.7%)
From the sample respondents, 36.4 percent have an education is 'above bachelor',
24.3 percent have a 'bachelor', 20.6 percent have a '+2' and 18.7 percent have a 'up
to SLC'.
From the total respondents, 65.7 percent are employee, 13.9 percent are
businessman, 10.2 percent are student, 8.3 percent are farmer and and remaining
1.9 percent respondents are involved in other occupations.
From the total sample respondents except missing 12, maximum 35.4 percent
earns Rs. 20,000 to 30,000 monthly and 32.3 Percent, 21.9 percent, 10.4 percent
earns in a month up to Rs 20,000, Rs. 30,000 to Rs 40,000, above Rs 40,000
respectively.
Among the total respondents, 35.2 percent uses the BAJAJ motorcycles, 31.5
percent uses the HONDA, 11 percent uses the YAMAHA, 9.3 percent uses the
HERO, 5.6 percent uses the TVS and remaining 7.4 percent respondents uses the
other brands of motorcycles.
According to finding of this study, as percent and frequency analysis found that,
the most of the respondents feels the very good, good and neutral on repair and
96
maintenance service components. Likewise, the results of mean and standard
deviation shows the customers are satisfied with repair and maintenance service
components. Another, the regression analysis shows the repair and maintenance
service have a positive relationship with customer satisfaction. And pre-
established null hypothesis 'there is no significant impact of repair and
maintenance service on customer satisfaction' was rejectedand proved that repair
and maintenance service significantly impacts on customer satisfaction.
The analysis of frequency percent, mean and standard deviation shows that, the
customers are more satisfied with spare parts supply components than other
variables of after sales service. Likewise, regression analysis shows the lower
relationship with customer satisfaction. And pre-established null hypothesis 'there
is no significant impact of spare parts supply on customer satisfaction' was
accepted and proved that spare parts supply does not impacts on customer
satisfaction.
The analysis of frequency percent, mean and standard deviation shows that, the
customers are dissatisfied with warranty service components. Likewise,
regression analysis shows the moderate positive relationship with customer
satisfaction. And pre-established null hypothesis 'there is no significant impact of
warranty service on customer satisfaction' was rejected and proved that spare
parts supply has impacts significantly on customer satisfaction.
The analysis of frequency percent, mean and standard deviation shows that, the
customers are satisfied with exchange offers components. Likewise, regression
analysis shows the moderate positive relationship with customer satisfaction. And
pre-established null hypothesis 'there is no significant impact of exchange offer on
customer satisfaction' was rejected and proved that exchange offerhas impacts
significantly on customer satisfaction.
The regression analysis on relationship between overall after sales services and
customer satisfaction found that, the good relationship between after sales service
and customer satisfaction.
97
5.3. Conclusions
In this competing world, it is really important to retain old customers because it is more
expensive to attract new customers. To retain old and attract new customers, it is
important for the companies to have good after sales service. Good after sales service
helps companies to build strong relationship with their customers. It is important to focus
on the actual needs and demands of customers before designing an after sales service.
Good after sales Service management is vital to cope with changing perceptions of the
customers.
From the research author think that a good after sales service can help the companies to
fill the gap between customer expectations and actual experience. A good after
salesservice is tool to strong bonds and loyalty among the customers which help
companies to create positive word of mouth for companies.
5.4. Recommendations
The researchers will present recommendations to different service providers based on the
findings from the research.According to the finding of the research companies should
more focus on the actual needs of the customers and they should follow the customer
dominate logic approach. Whenever customer approaches to the after sales service, he or
she has many past experiences which influence on the behavior.
Finally, the researcher wants to recommends to those researchers who have an interest on
after sale service to conduct a study on after sale and its impact on customer satisfaction.
Because after sale service is essential for customer to get service after they purchase the
product as well as for the sellers as one means of customer loyalty, repeat purchase and
profitability.
98
interesting to investigate more deeply to know about the customer perceptions regarding
after sales service and how this after sales service can be improved.
This research measures the customer satisfaction depending only impact of after sales
services of Motorcycles Company. Thus, the result and the suggestions of this study may
not be applicable for other product, companies, other different services and other
different purposes. The further researcher may study on this topic depends on other
products after sales services by taking more large sample, more variables and using
different analysis tolls and different places.The further study also can be conducted other
aspects of motorcycle companies' services considering the different variables with
different tools and methodology and on same or different places.
99
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