Investigating The Impact Of After Sales Service In Enhancing Customer Loyalty: A Case Study Of Dell

Problem Statement

The customers are the pillars that determine the success of the business organization. The business organization considers the customers as the return of the investment they have made for launching and selling a product. Thus, it is important for the business organizations to retain the existing customers so they can always count on them. As mentioned by Murali, Pugazhendhi and Muralidharan (2016), the service provided by the business organizations results in customer satisfaction that ultimately results in customer loyalty. Therefore, it can be said that satisfied customers gives rise to loyal customers that never fails to prove their loyalty to the particular business organization. However, after purchasing attending the customers appropriately and promptly also results in customer loyalty. Effective after sales service is important in achieving customer loyalty, as this make the customers feel valued and significant for the business organizations. Such warm, empathetic and welcoming gesture towards the customers after purchasing helps in improving customer satisfaction (Kurata and Nam 2013). Thus, it is important for the business organization to establish a strong and loyal customer base for surviving in the competitive market.

For this study, the impact of after sales service on improving customer loyalty is studied by referring to Dell Inc. Dell Inc was established in 1984 and over the span of more than three decade, it has turned into a multinational company. It is one of the largest technological companies in the world with estimated employees of 138,000 globally. Dell Inc manufactures, sells, repaired and supported personal computers. In addition to, Dell Inc also sells printers, data storage devices, camera, servers and network switches. Dell Inc. has a market share of 15.9% and is known for its innovative e-commerce and supply chain management techniques. This makes the company third largest personal computer manufacturer globally after HP and Lenovo. Thus, for sustaining in the competitive market, it is important for Dell Inc to provide effective and efficient after sales service for enhancing customer loyalty (US 2018).

Potential issues in respect to after sales service for Dell Inc have been recognized that is having an impact on the customer loyalty of the company. Lack of effective after sales service in Dell Inc has hampered the customer loyalty because after purchase for the company the customers are not attended appropriately. Increased level of casualness has been encountered in Dell Inc when it comes to attending customer queries, providing service and prompt actions for resolving customer complaints due to which the customer loyalty of the company is hampered largely (Szwejczewski, Goffin and Anagnostopoulos 2015). In addition to, decreased number of customers has lowered the sales and profit of the company thereby, threatening the survival of the company in the tough and competitive business environment. Inadequate after sales service by Dell Inc is a result dwindling position of the company in the business environment and the company is lacking competitive advantage.

Research Aim

The aim of the research is to investigate the impact of after sales service in enhancing customer loyalty for Dell Inc.

Evaluating the impact of after sales service for the business organization for achieving and ensuring customer loyalty is important for Dell Inc because this offers the provision to identify the impact of the gap of after sales service and customer loyalty. The research is important because this will allow the researcher to address the probable reasons of ineffective after sales service for the customers of Dell Inc thereby, hampering the customer loyalty of the company. Addressing the probable reasons of in effective after sales service will also allow accessing the relationship between after sales service and customer loyalty (De Keyser, Schepers and Konus 2015). As a result, it will be easier to compare and contrast the customer loyalty with or without the presence of effective after sales service.

This research is significant as this will also help in identifying the main factors of after sales service that is required for Dell Inc for ensuring customer loyalty by critically analyzing the probable reasons why Dell Inc is lacking in providing effective after sale service (Bakshi, Kim and Savva 2015). Thus, after addressing the probable gaps in the study, this study will also help in suggesting ways for achieving customer loyalty by enhancing after sales service. Therefore, this study is significant because the impact of after sales service for enhancing customer loyalty for Dell Inc can be studied.

The objectives of the research include:

• To understand the concept of after sales service and customer loyalty
• To analyze critically the different factors that effect after sales service and customer loyalty
• To assess the relationship between after sales service and customer loyalty for Dell Inc.
• To provide suitable recommendations for improving after sale service techniques for achieving customer loyalty for Dell Inc.

The questions of the research are:

• What do you mean by after sales service and customer loyalty?
• What are the different factors that effect after sales service and customer loyalty?
• What is the relationship between after sales service and customer loyalty for Dell Inc.?
• What are the suitable recommendations for improving after sale service techniques for achieving customer loyalty for Dell Inc?

The hypotheses of the research are:

H₀: After sales service has no impact in enhancing customer loyalty for Dell Inc

H₁: After sales service has an impact in enhancing customer loyalty for Dell Inc

This chapter identifies the independent and the dependent variable as after sales service and customer loyalty respectively. Followed the identification of the variables, this chapter sheds light on the concept of the two two variables, factors affecting them individually and impact on each other.

It is crucial for the business organizations to consider effective after sales service to the target customers. As mentioned by Kastalli and Van Looy (2013), the concept of after sales service highlights support, help and information to the customers by the business organizations after they have purchased from the company. This helps in developing satisfied customer base that turns into customer loyalty with time. However, as criticized by Gebauer, Paiola and Saccani (2013), efficient after sales service does not always guarantee customer loyalty because quality and properties of the product also results in customer loyalty. The primary aim of the efficient after sales service is to ensure satisfaction for the customers by providing security, trust and credibility. In this case, Dell Inc is failing to implement the concept of after sales service efficiently that is hampering the customer loyalty.

Research Rationale

Various factors within the business organizations determine the effectiveness of the after sales service. As mentioned by Ulaga and Loveland (2014), being empathetic while communicating with the customers affects after sales service. Empathy results in warm, welcoming and polite approach by the employees to the customers when they visit the company with post purchase issues and complaints. As the customers feel satisfied while being attended by the employees, they tend to become loyal towards the company. However, as argued by Sands et al. (2016), apart from being empathetic, lack of team work also affects effective after sales service. Team work highlights positivity, support and friendliness within the work environment thereby, making it easy to attend and resolve customer complaints and queries quickly making the customers feel valued and significant. This helps in establishing customer loyalty for the business organization.

Other factors affecting after sales service are inefficient employees, non-availability of support and improper use of technology. Dell Inc fails to use their employees and the technology appropriately thereby, making after sales service an issue.  

Customer loyalty highlights the tendency of the customers of using a particular company for purchasing products and services. As commented by Martinez and Del Bosque (2013), customer loyalty is defined as tendency of the customers to use the same company for buying a product or service consistently. However, as argued by Toufaily, Ricard and Perrien (2013), the concept of customer loyalty highlights the willingness and eagerness of the customers for prioritizing a specific organization while purchasing. It has been seen that customer satisfaction has a significant impact on customer loyalty and drastic customer loyalty is noticed when the business organizations have satisfied customers. For this study, Dell Inc is failing to implement the concept of customer loyalty that is threatening their survival.

Satisfied customer results in customer loyalty that facilitates repetitive purchasing from the same business organizations. As commented by Amin, Isa and Fontaine (2013), effective customer service results in customer loyalty, as the queries, complaints and support needed by the customers are provided by the employees. The customers can rely on the employees with any issues and solving them promptly ensures effective customer service. However, as criticized by Kandampully, Zhang and Bilgihan (2015), personal relationship is more important in achieving customer loyalty. Effective communication between the customers and the employees is facilitated by positive personal relationship thereby, making sharing of information easy. Other factors affecting customer loyalty includes convenience, expectation and reputation that draws the employees towards the specific business organizations. Dell Inc is failing to identify the essential factors that determine customer loyalty that is challenging for the company.

Research Objectives and Questions

The customers show increased interest of purchasing from the business organization that is able to fulfill their pre and post purchase requirements. According to Prentice (2013), the business organizations are able to retain customers by providing excellent customer service. It might be that the customers encounter issues in the product and the service they have purchased. This is where after sales service comes into action where the employees of the company need to act promptly in attaining the customers and solving their queries. However, as argued by Gamboa and Goncalves (2014), apart from retaining customers, effective after sales service helps in attracting new customers. As the existing customers spread positive word of mouth for the business organization in terms of their efficiency in handling customer queries and complaints, new customers are attracted easily thinking they will receive similar after sales service. Dell Inc is failing to provide effective after sales service to the customers that are creating issue for the company.

Effective and efficient after sales service is difficult to achieve due to various reasons. According to Yoo and Bai (2013), availability is one of the major issues in providing effortless after sales service. This is because help might not be available for the customers whenever they need it. This creates a negative impression of the company on the customers, as they feel that they are not being valued and given required attention. The customers fail to consider the viewpoint of the business organizations if they fail to fulfill the expectation of the customers any time. However, argued by Rafiq, Fulford and Lu (2013), the processes involved hinder effective after sales service. Some of the service centers are process driven due to which the employees are divided in accordance with their specialization. Under such circumstances, the complaints and queries of the customers are not handled appropriately by the employees. Dell Inc is facing some of the aforementioned challenges in providing effective after sales service.

This chapter sheds light on the different methodological tools that are considered while progressing on a research. This section mentions and justifies the particular methodologies that have been used for analyzing the impact of after sales service in enhancing customer loyalty for Dell Inc.

Out of three philosophies, positivism, interpertivism and pragmatism, positivism philosophy will be used for this study. The application of positivism philosophy will be suitable because this will offer the provision for the researcher to refer to factual knowledge about after sales service and customer loyalty followed by making quantifiable observations thereby, using statistical approach for analyzing data. As a result, the reliable and valid data in terms of after sales service and customer loyalty for Dell Inc can be obtained (Saunders, Lewis and Thornhill 2016).

Literature Review

Out of the two approaches, inductive and deductive, deductive approach will be used for this study. The application of deductive approach will be suitable for this study because this will allow the researcher to refer to concepts and theories of after sales service and customer loyally. Suitable observations will be made by emphasizing on the areas Dell Inc is lacking in respect to after sales service that is hampering the customer loyalty of the company (Denzin and Lincoln 2005). In addition to, the use of deductive approach will mitigate the chances of making incorrect observations thereby, fulfilling the research aim and objectives of this study.  

Explanatory, exploratory and descriptive are the types of research designs out of which descriptive design will be used for this study. The application of descriptive research design is suitable because this will allow the researcher to explore the problems Dell Inc is facing in providing effective after sales service and the probable reasons that will lead to such issues. As a result, exploring and explaining the issues of after sales service for Dell Inc will help in determining its impact on the customer loyalty for the company (Neuman 2013).

Out of the four research strategies, action research, case study, survey and interview, interview will be applied for this study. The application of survey research strategy will be suitable because this will allow the researcher to collect data from the large population of the Dell Inc customers and take into account their feedbacks and opinions in terms of the after sales service issues they encounter upon their visit to the store after purchase (Mackey and Gass 2015). As Dell Inc is the third largest company after Lenovo and HP, survey strategy will help to collect data from a large population.

Random probability sampling technique will be used for this study out of non-probability sampling technique and random probability sampling technique. The application of random probability sampling technique will be suitable for this study because this will offer equal chances for all the customers of Dell Inc to be a part of the data collection process. This will also save a lot of time, as the researcher will not have to select the participants individually (Taylor, Bogdan and DeVault 2015). Out of the entire customer population of Dell Inc, 100 customers will be selected as the sample size for this study.

Out of primary and secondary data collection process, primary data collection process will be applied for this study. The application of primary data collection method will be suitable for this research, as this will facilitate collecting data from the customers who have purchased recently from Dell Inc and have faced issues in terms of after sales service. Additionally, primary data collection process will help in gathering raw data in respect to the issues of after sales service and customer loyalty (Burrell and Morgan 1979).

Out of qualitative and quantitative data analysis process, quantitative data analysis process will be used for this study. The application of quantitative data analysis process is justified because this will facilitate the researcher to emphasize on the numerical aspect in terms of the opinion provided by the customers about after sales services and customer loyalty in Dell Inc (Bryman 2006).

One of the significant research ethics is data confidentiality. While commencing with the research work, the researcher needs to keep the information gathered from the respondents as well as their identity confidential. Disclosure of identity and information gathered without individual consent is against research ethics (Ardichvili and Jondle 2009). Forcing the individuals to be a part of the data collection process is also against the research ethics. The individuals have to participate in the research with full consent. Thus, signing the consent forms prior initiation of the research is important. Other significant research ethics that must be followed are no data manipulation, collecting information from authentic resources and using the information only for academic purposes (Callahan 2014).

One of the limitations of this study is lack of recent data and information in terms of the impact of after sales service in enhancing customer loyalty. The concept of after sales service and its impact on customer loyalty is comparatively new and lacks adequate information. Another limitation the research has encountered is collecting data based on close-ended questions only. As a result, the customers of Dell Inc were unable to share the issues and problems they encounter in terms of after sales service but had to answer from the options provided.

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