Amanze Donatus Project 2_2

8/2/2019 Amanze Donatus Project 2_2

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AN EVALUATION OF THE IMPACT OF AFTER

SALE SERVICES ON CONSUMER'S BRAND

LOYALTY ON A PRODUCT

(A Study of Coscharis Motors Limited).

BY

AMANZE DONATUS UCHECHUKWUREG NO: 2007/DEGR/DL/4115

A RESEARCH PROJECT SUBMITTED TO THE

DEPARTMENT OF MARKETING

FACULTY OF BUSINESS ADMINISTRATIONUNIVERSITY OF NIGERIA NSUKKA

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF BARCHELOR OF SCIENCE (Bsc)

DEGREE IN MARKETING

DECEMBER 2012


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CERTIFICATION

I certify that this project was written and presented by AMANZE DONATUS UCHECHUKWU . It

has been read and approved as having satisfied the requirements for the Award of barchelor of

science (bsc) in Marketing in the Faculty of business administration. university of nigeria nsukka.

_____________________________

Mr. abugu

Supervisor.

____________________________ifediora (Ph.D)

Associate ProfessorAssistant Director (Academics)


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DEDICATION

This project is dedicated to Almighty God.

And to my dear parent, Mr and mrs amanze, brothers and sisters for their love.


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ACKNOWLEDGEMENT

Firstly, I express my gratitude to the Almighty God for giving me the strength and grace to

complete my studies successfully.

My sincere appreciation goes to the following respectful men and women: my able Supervisor,, Mr

A. Ogbechi for his patience, understanding and encouragement during the course of this project.

I wish to express my sincere gratitude to my Parents Mr. And Mrs. P. A Uwazulike who made it

possible for me to have the initial interest in

education.

I wish to thank all my Church Members for their understanding and patience during the period of

this study.

I wish to thank all my brothers and sisters / nephews and nieces l-or their encouragement during

the period of my study.

My gratitude goes to all lecturers and students of LASU, Isolo Campus.

My gratitude goes to all staff of Coscharis Motors LTD for their Help in the Course of this

research work.

1 wish to thank Mr. Ben Okoye, Mr. John Ugweneme, Marcel Okoro and Mr. Remi Babatunde for

helping me when I needed their assistance.

My gratitude goes to my elder Sister, Mrs. Magdaline Duru for her motherly role and always being

there for me.

Finally, I thank all my friends for their encouragement.

May God Almighty bless you all, Amen.

ABSTRACT


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This project is on "the impact of after sale service on consumer's brand loyalty: A case study of

Coscharis Motors in Lagos Metropolis.

The purpose of this study is to highlight the impact, which after sale services has on consumers.

The study also investigates how after sale service can have impact on consumer's brand loyalty, it

also identifies some problems, which will arise and offered solutions to these problems.

A sample of 40 customers and staff of Coscharis Motors were taken. Questionnaires were

administered to the respondents and 38 out of 40 were returned which helped in the analysis of the

problems.

Conclusion arrived were based on information and analysis of data gathered front the

questionnaire. Recommendation will help change the 'deficiencies and strengthen tile use of after

sale services, which will uphold consumer loyalty over the product.


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TABLES OF CONTENTS

Title Page i

Certification iii

Dedication iv

Acknowledgement vAbstract vi

Table of Contents vii

List of Tables viii

Chapter One Introduction

1.1. Introduction

1.2 Statement of Problems

1.3 Objectives of the study

1.4 Research Questions

1.5 Statement of Hypothesis

1.6 Background of the study

1.7 Significance of the Study

1.8 Scope and Limitation of the Study

1.9 Definitions of Terms

References

Chapter Two

2.1 Introduction

2.2 Definition of marketing, Marketing Strategy and After sale Service

2.3 Marketing Mix

2.4 Product

2.5 Marketing Segmentatlo

2.6 After sale Service as a winning tool to consumers brand loyalty

2.7 Where Service Matters Most

2.8 The Follow Up

2.9 After Sales Absorption

2.10 How to Maintain Service Customer Loyalty

2.11 Consumer Behaviour

2.12 Customer AnalysisReferences

Chapter Three

Research Methodology

3.1 Introduction

3.2 Restatement of the Research Question 1


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3.3 Population of the Study

3.4 Sources of Data

3.5 Sample size and Sampling Techniques

3.6 Data Collection Instrument

3.7 Method of Data Collection

3.8 Method of Data Presentation And Analysis

3.9 Coding

References

Chapter Four

4.1 Data Presentation and Analysis

4.2 Presentation

4.3 The Study

4.4 Analysis of the Questionnaire

4.5 Hypothesis Testing 1

Chapter Five

Summary of Major Findings, Recommendations and Conclusions

5.1. Introduction

5.2 Summary of Major Findings

5.3 Recommendation

5.4 Conclusion

Bibliography

Appendixes


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LIST OF TABLES

4.1 Distribution of Respondents according to demography

4.2 Distribution of Respondents According to Demographic Data of Educational

Qualification, Income Bracket (P.A) And Organisational Status

4.3 Mean and Standard Deviation of the Respondents in the Questionnaire

(Questions 7-11)

4.4 Mean and Standard deviation of the respondents in the questionnaire

(Questions 12-15)

4.5 Mean and standard deviation of the respondents in the questionnaire (16-20)

4.6 Mean and standard deviation of the respondents in the questionnaire

(Questions'-? 1-25)

4.7 Mean and standard deviation of the respondents in the questionnaire

(Questions 26-31)

4.8 Hypothesis testes using the Z-Score test at 0.01 level of significance


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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Looking at a brief history of after sale services, we can establish that there was no specific

time after sale services was introduced, this implies that after sale service had been in

existence since the early introduction of the product but some organisations refused to

implement it in their marketing plan.

Davidow and Uttal (1990) have the view that it was in 4970's that some organisations

started having the negative effects of not including after sale services in the marketing

programme. In 1970, Burroughs a computer industry and about the only company to

compete effectively against IBM lost its competitive advantage to Macdonald who

considered after sale service very important.

Treacy and Wiersema (1995) is of the opinion that differernt customers buy different kinds

of valee, those custor11ers that buy product because of services attached, must be given

solution when the need arises.

In 1991, Vistakon sales topped $225 million worldwide and it had captured a 25 percent

share of US contact lens market, which was as a result of their direct marketing effort to

eye care professionals to explain how they would profit in using the product due to the

product quality, and the services attached. Treacy and Wiersema (1990)

Treacy and Wiersema (1990).believe that it was after sale services and good product

quality that earned IBM the competitive advantage in the 1960's and 1970s. IBM did not

stop at technological aspect of the product, it also had a high water mark for, customer's

service and give 18 months guarantee to its customers and at the same time solve

any.problein that tnay arise in the course of using the product.

Davidow and Uttal (1990) is of the opinion that marketing has marketing has-reached thefourth stage where the kind of services rendered after sale matters, unlike 1960s when

marketing was the watchword for achieving competitive advantage, 1980s quality was

what gives competitive advantage and now competition Iias arrived

at the fourth hattle field - customer service.


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In January 1997. Mr. Cosmas MaCluka founded Maduka Brothers Company as Sole

Proprietorship in Nnewi, Anambra State of Nigeria. This company, which engaged in the

importation of Motorcycle and motor Vehicle Spare parts, was taken over by the

partnership of COSDAV MOTORS.

August 1983 COSDAV Motors was dissolved and Mr. Maduka incorporated Coscharis

Motors Ltd., which continued with the importation end distribution of high quality motor

vehicle spare parts and motorcycles. Given its aim of satisfying -its customers, Coscharis

Motors ltd. Sources its products mainly from U. S. A, U. K, Germany and Japan and has

become the parent company of the now diversified Coscharis Group.

However, its scope of business has now increased to include Auto - care, Suspension parts,

used engines and Generators, Air conditioners (split / window units).

SUBSIDIARIES AND DIVISIONS OF COSCHARIS GROUP

In September, 1983, Coscharis Finance and Investment Limited (CHL) was incorporated

which continued to be a major player in the financial sector of the Nigerian Economy

notwithstanding the crisis in the industry since 1993. CFIL, focuses on financial

intermediation, project financing, vehicle leasing, money market and Consultancy services

A manufacturing outfit known as Coscharis Auto Industries Limited (CAIL) was

incorporated in June 1985 to pioneer the production of roller chains in West Africa. The

first set of roller chains was produced by this company in September 1988 and has

continued to be a leading product in the market.

In March 1993, the Group diversified into Computer Technology and

"Telecommunications by incorporating Coscharis Technologies Limited (CTI-), a full-

blown Information Technology (IT) company engaged in marketing computer and

telecommunication equipment. CTL also undertakes the development and maintenance of'

nodern software applications. Furthermore, CTL has been appointed distributors and


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representatives if Information Technology giants like MICROSOFT, COMPAQ, APC, L-

PSON, MINOLTA and MERCURN in Nigeria.

September 1993, Coscharis Ghana was incorporated to extend the business frontiers of the

Group across the West African Sub - region.

Coscharis Exports Limited was set up in February 1995, which focuses mainly on

exportation of Cocoa and Wood at present. Other export trade items include Palm Kernel

cake, Cashew Nuts etc.

Coscharis Gabon was also established to further extend business frontiers of the Group.

February 1996 Coscharis Securities Limited was incorporated as a Stock Broking Firm.

Coscharis Motors Limited secured exclusive franchise for marketing BMW / Land Rover

vehicles - defender, Discovery, Freelander and Range Rover in Nigeria. Consequently, the

company inveo-ted Heavily in Automobiles and marketing of the above brands. The

company has its international standard workshop located at Coscharis Street in 1Cirikiri

Industrial Estate, Lagos.

April 2001, Coscharis Motors Limited expanded its automobile range by introducing Ford

to the Nigerian market. After sale services are also available to customers at the standard

Ford service Centre located at Coscharis Street, Kirikiri Industrial Estate, Lagos.

COSCHARIS OPERATIONAL LANDMARKS

In June, 1986 Coscharis Motors Limited acquired G.S Motors distributorship exclusively to

market G.S Piston kits as well as TP Motorcycle Rings in Nigeria and the west Afi-ican'sub

- region.

January 1989 Coscharis moved its head Office to 1 - 7 Coscharis Street off Kirikiri

Industrial Estate, Lagos.


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March, 1990 Coscharis Motors Limited secured authority to solely represent Nippon piston

Rings, Japan in Nigeria and West African for the Marketing of their range of NPR Rings.

In January 1992 Coscharis Motors Liinited was appointed sole agent to Abro Industries

Inc. U. S.A for marketing abro range of products in Nigeria and West Africa.

January, 1994 Coscharis Motors Limited won representative distributionship for marketing

AKZ0 Sikkens. Kombi Putty in Nigeria other AKZO Sikkens, ranges marketed by the

company include auto base, Auto flex and synthetic Enamel Paints.

In January 1998 Coscharis Motors acquired exclusive representation status for marketing

GENERAL Air conditioners in Nigeria.

October 1999 Coscharis completed and put in use the BMW / Land Rover Ultra- Modern

service Centre for the purpose of after sales service to its esteemed customers.

May 2000 the Ultra - modern after sales service Centre in Lagos was opened by the Vice

President, Atilcu Abubakar of the federal republic of Nigeria.

July 2000, Coscharis Group opened a standard BMW Sales / Service Centre at Abuja to

offer both sales and after sales service to Ilex customers in the federal Capital Territory,

Abuja.

In June, 2001 Coscharis Group received the. "TIMES INDL!STRIAIJ AWARD" froln the

Daily Times of Nigeria PLC in recognition for her contributions to the growth and

development of Nigeria.

In July 2001 Coscharis Motors launched the "Quality Life Scheme" for Nigerian workers.

The Scheme enables them to own their dream cars within $MW, Land Rover and Ford

range by making at least 25% down payment and spreading the balance over 18 to 24


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months. This scheme is to reach out to the Nigerian middle class, which has been reduced

by economic circumstances.

Every organisation competing in an industry has a competitive strategy whether explicit

or implicit. This strategy may have been originated explicitly or implicitly through a well

articulated planning process or it may have developed implicitly through the activities of

the various functional arms of the organisation.

Each arm on its own will inevitably pursue its own approaches dictated by its professional

orientation and the incentives that to along with their Acliurnba, (2000).

Today's customers want more of those things they value. If they want value low cost, they

want it lower, if they value convenience or speed when they buy, they want it easier and

faster. If they look for state - of -- the - art design, they want to see they are pushed

forward. If they need expert advice, they want companies to give them more depth, more

time and the feeling that they are only customer Treacy and Wiersema. (1995).

Though there are different definitions of marketing according to author's background,

Adeleye (2003), defined marketing as consisting of all activities aimed at identifying and

satisfying customer needs through beneficial exchanges with target markets.

Marketing requires the following:

a. Finding out what customers need,

b. Developing a product or service to satisfy the needs of customers,

c. Positioning the product or service to satisfy customer's needs.

d. Determining the appropriate marketing mix decisions to price, promote and

distribute the product or service.
http://want.it/http://want.it/


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The existing economic depression in Nigeria, over the years has imposed an increased

economic pressure on the consumer and a corresponding increase pressure on the

consumer's disposable income. Due to this pressure, consumers have decided to be more

careful and rational in their purchase decisions and the only way to relief them of this

pressure is by offering a good after sale service to these consumers by organisations like

Coscharis Motors Limited.

1.2 STATEMENT OF PROBLEMS

The tendency in the franchised car dealer sector has been to adjust service capacity to

demand in the market defined by each dealer's new car buyers.

Much potential aftermarket business has accordingly been surrendered to the independent

and fast fit sector. The argument is that a declining after sale contribution will soon

threaten the traditional sales / service link. Although some people still ask if after sale

service is all that supports the saying that after sale is instrumental to customer loyalty

which is characterie3d by repeat purchase. Therefore, the study identified the following

problems.

i. Investigation of the impact of after sale services in consumer brand loyalty on a

product is a problem because some marketing managers felt it is a waste of time

and resources instead ofthe benefits it claims to deliver.

ii. Ascertain if after sale service is truly instrumental Ha securing

and maintaining the customer's brand loyalty, which manufacturers are targeting in

the market. This is a problem because if after sale service is insturmental to brand

lovalty., if not taken into consideration by some organisation it might pose a threat

to the future growth of the industry.

iii. Determine of alternative ways of maintaining customers brand loyalty apart from

after sale service in an industry is a problem because the alternative ways might

require less resorce thereby saving resources for the industry and at the same time

increasing profit margin.


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iv. Highlighting the possible problem facing an organisation in using after sale service

to secure the brand loyalty of a customer is a problem because where the

organisation could not continue with after sale service due to some problems; the

organisation is likely to loose their brand loyalists.

v. Proffering solutions to the possible problems facing the organisation in keeping the

brand loyalty of their consumers is a problem because without the organisation

knowing the possible solution to their problem makes their work difficult

1.3 OBJECTIVES OF THE STUDY

In order to prevent further decline in service retention, which is the key to customers

loyalty and also create awareness of the importance of after sale service to the consumer

and the organisation, this study was therefore undertaken with the following objectives.

i. To investigate the impact of after sale service on consumers brand loyalty on a

product.

ii. To ascertain if after sale service is truly instrumental in securing and maintaining

customer brand loyalty, which manufacturers are targeting in the market.

iii. To determine alternative ways of maintaining customers brand loyalty apart from

after sale service in an industry.

iv. To highlight the possible problem facing an organisation in using after sale service

to secure the brand loyalty of a customer.

v. Profer solution to the possible problems facing the organisation in keeping the

brand loyalty of their consumers.

1.4 RESEARCH QUESTIONS

i. Does after sale service have impact on consumer's brand loyalty?

ii. Is there any relationship between after sale and consumer's brand loyalty?iii. In which other ways can a manufacturer use in maintaining consumer's brand

loyalty of a product?

iv. What are the possible- problems facing an organisation in using after sale services

to secure and keep the consumer's brand loyalty?

v. What are the possible solutions to the problems facing an


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organisation in keeping the braijd loyalty of their consumers?

1.5 STATEMENT OF HYPOTHESIS

H1: After sale services have impact on consumer's brand loyalty.

Ho: After sale services do not have impact on consumer's brand loyalty

H1: There is a relationship between after sale service and consumer's brand

loyalty.

Ho: There is no relationship between after sale service and consumer's

brand loyalty.

1.6 SIGNIFICANCE OF THE STUDY

This study is very important to marketing Managers or Directors who so much believe in

technological aspect of the product and neglect the after sale service that lack of it, could

cause decline in product sales.

It also create awareness to organisations whom their top management feel that sending

technicians for training is a waste that it is not waste of resources because their services

would be needed in after sale product services.

This study will make the sales representative to be on alert so as to lmow the difficulty

their brand loyalist is having in using their product and give solution to the probleiil in

order to keep the customer's brand loyalty.

It gives room for further research on after sale service if it is truly instrumental to

consumer's brand loyalty.

This study exposes the consumer to some level of choice to what brand of product he is to

consume.

It also open door for more research work among competitors to know who wins the market.


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1.7 SCOPE AND LIMITATION OF THE STUDY

This study is directed to cover the impact of after sales services on consumer's brand

loyalty of a product, a study of Coscharis Motors in Lagos Metropolis.

The limitations envisaged are time constraints, logistic, cost of the work and other

constraints. Furthermore, any inference to be drawn from the analysis of data to be

collected.from the sample subjects of customers of Coscharis motors will only be

applicable to them, hence, its findings may not necessarily be generalised to all other

similar organisations.

1.8 DEFINITIONS OF TERMS

Alter sale Service The job you do for your customers after buying your product.

Advertisement - A notice; picture or film telling people about a product, job or service.

Articulated - Of a vehicle, with two or more sections joined together in a way that it makes

it easier to turn corners.

Brand Loyalty - They are consumers who are friendly with a product made by a particular

company.

Buttress - to support or give strength to somebody or something.

Brand - A type of product made by a particular company.

Customer Service - This is the vvork you render to people who buy your product

Competitor - A person or air organisation that competes with others, especially in business.

Declining-To become smaller, fewer. weakeretc.

Explicit of a statement or piece of writing, that is clear and easy to understand.
http://cakcr/http://cakcr/


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Four Wheel Drive Common with cars that their four-wheel move at the same timw

when in motion.

Inferior It is not as good as something else.

Inevitable that which you cannot avoid or prevent.

Incentives something that encourages you to do something.

Instrumental important in making something happen.

Implicit Suggested without being directly expressed.

Manufacturing The business or industry of producing goods in large quantities in

factories.

Marketing The activity of presenting, advertising, and selling a companys products in

the best possible way.

Objective - Something that you are trying to achieve.

Profitability - To run a business profitably.

Patronage - The support especially financial, that is given to a person or an organisation by

a patron.

Purchasing - The activity of buying things especially for a company.

Product - A thing that is grown or produced, usually for sale.

Post purchase - After buying an organisation's product.


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Roominess --- having a lot of space inside usually, with a car.

Representative - A person Who has been chosen to speak or vote for somebody else or on

behalf of a group.

Sales man -- Men whose Job is to sell goods.

Service leaders - The organisations that are known to be above others in terms of rendering

good services.

Sterling - the money system of Britain based on the pound.

Strategy - A plan that is intended to achieve a particular purpose.

Value - how much something is worth in money or other goods for which it can be

exchanged.

Professionals - People who work in their atta of specialisation.


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REFERENCES

AChumba, c. I (2001) Strategic marketing management in the 21st Century Charlotte U. S. A, Mac

- Williams and Capital Publishers Inc., PP1

Treacy M. and Wiersema F. (1995) Discipline of Market Leaders Cambridge, Massachusettes,

Perseus Books PP4

Adeleye, S.A (2003) Marketing Principles and practice .(Revised Edition)

Musliin, Lagos. Concept Publication Limited, PP63.


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CHAPTER TWO

LITERATURE REVIEW

2.1. INTRODUCTION

Presently, the Nigerian economic situation is forcing companies to operate under persistent

high inflation, bad infrastructural facilities, new technological requirements, harsh

government regulations, high interest rate and presence of international competitors. The

question becomes how can organisations carry on with their planning and activities in era

of inconsistency.

Under this dispensation, the major challenge facing firms is how to develop a flexible and

adaptable structure so that they can survive in an environment with hostile and turbulent

socio - economic climate.

After sale service is becoming increasingly important in marketing because it serves as a

way of maintaining good customer's relatiotlship which will increase demand, enhance

repeat purchase which is the dream of every manufacturer. It serves as a price competition

substitute and consumer's closeness to the organisation will also enhance product

differentiation from other similar product.

From the beginning, marketing situation or environments are dynamic with ever -

increasing pressures of change, which calls for innovation and prompt marketing responses

as they occur. This is achieved by marketing research and building of customer's

confidence through after sale services.

Therefore, this study seeks to examine tire impact of after sale service in relation to

marketing strategy of firms in the economy.


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2.2 DEFINTION OF MARKETING, MARKETING STRATEGY AND AFTERSALE

Since marketing is central to any business organisation, the ultimate goal of any business

organisation is to identify and satisfy customers which can only be achieved by

organisation embarking oil effective marketing activities.

The term after sale Service can be better apprcciated if one look at it from a larger

perspective of what marketing as a discipline comprises of. There is no single universally

accepted definition of marketing but a whole spectrum, which shows the diversity of

perspectives adopted by different writers from different academic backgrounds or areas of

employment.

These are some of the definitions of inarketiilg:

Risley, (1972) defined marketing as including all business activities that make possible, the

determination of what should be produced and control that which is produced from its

creation to ultimate consumption.

Schewe and Smith (1983) defined marketing as managing human and organisational

exchange activities directed at satisfying human wants and needs.

Kotler (1988) defined marketing as a social and managerial process by which individuals

and groups obtain what they need and want through creating and exchanging products and

value with others.

American marketing Association (1969) defined marketing as, a performance of business

activities that direct the flow of good and services from producer to consumer or user.

Holloway and Hancock (1973) defined marketing as a set of activities necessary and

incidental to bringing about exchange relationship in our economic system.

Mazur (1947) defined marketing as the delivery of a standard of living to society.


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The word Strategy itself comes from the Greek word strategia, which means the art or

science of being a general.

Anao (1979) defined strategy as schemes, methods, manoeuvres which management hopes

to deploy in order to move the organisation from its present position to arrive its target goal

by end of a specified period recognising that during the intervening period a host of

changes are going to take place in the environments.

Aclluniba (2003) cited Fred R. David (1995) defining Strategic Marketing management as

the art and science of formulating , implementing, and evaluating cross - futictiorial

decisions that enable an organisation to achieve It's objectives.

Borden (1964) defined marketing mix as a schematic plan to guide analysis of marketing

problems through utilisation of:

a. A list of the important forces emanating from the marketing, which bear up the

marketing operations of an enterprise.

b. A list of the elements (procedures and policies) of marketing programmes.

Besides Bordens definition of marketing mix, many authors described marketing mix as

being synomous with another term known as 4Ps (Product, Price, Place and Promotion)

of marketing, thus, ignoring the marketing forces that exert different types of influence on

the marketing operations of an enterprise.

Adeleye 2003 cites McCarthy (1978), Stanton (1981), Schewe and Smith (1983), Assael

(1985), and Lovelock and Weinberg (1989), among others as using a four fold

classification, namely, Product, Price, Place and Promotion.

Handscombe (1989) uses an eight way classification, the principal elements of which are

Product package, place, physical distribution, promotion, price, paternalistic finance,

partnerships and politics.


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Baker (1992) cites Borden (1975) as highlighting twelve principal elements that make up

marketing programmes with most elements leave several sub - elements viz:

1. Merchandising - Product Planning

a. Determination of product or service to be sold.

b. Determination of new product programme

c. Determination of marketing research programme

2. Pricing

a. Determination of level of prices

b. Determination of psychological aspects of price.

c. Determination of pricing policy

3. Branding

a. Determination of brand policy.

4. Channels of Distribution

a. Determination of channels to use

b. Determination of degree of selectivity among dealers.

c. Devising of programmes to secure channel co-operation.

5. Personal Selling

a. Dertemination of burden to be placed on advertising

b. Determination of copy policy

c. Determination of mix of advertsing

d. Determination of media

6. Promotions

a. Determination of burdern to place on special selling plans or devices and

formulations of promotions:

i. To trade

ii. To consumers

7. Packaging


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a. Determination of the importance of packaging and formulation of packages.

8. Display

a. Determination of the importance of display and devising of procedures.

9. Servicing

a. Determination of the importance of service and devising of procedures to meet

consumer needs and desires.

10. Physical Handling

Warehousing / Transportation - stock policy

11. fact - finding and Analysis: Market research.

2.4 PRODUCT

The relatiornship between after sale and product cannot be ignored. Alter sale service comes in

place after sale of product.

For a consuner to tale tiny purchase decision. Iie must consider the product first before purchase

follows.

Adeleye (2003) defined product as a bundle of benefits offered to satisfy customer's needs. It can

also be regarded as a solution to a problem that confronts a customer.

The product is the first and the most important ingredient of the 3 marketing mix.

Levitt (1980) identifies three classes of product components: generic, expected, and augmented.

The generic product includes the physical item or service being offered to the customer. The

augmented product includes components that differentiate the product by providing more benefits.

The refrigerator might be augented by rendering after sale service and providing a toll - free

complaint lie to contact the manufacturers.

The expected components of the product include other items considered necessary to a purchase of

the product.


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PRODUCT CLASSIFICATION

Products can be classified into two groups viz:

a. Consumer goods

b. Industrial goods

The ultimate buyers purchase consumer goods while the companies

in the manufacturing chain procure industrial goods.

Consumer goods can be divided into four classes:

i. Convenience goods

ii. Shopping goods

iii. Specialty goods

iv. Unsought goods

i. Convenience Goods: Consumers needs little shophing efforts to purchase convenience

goods, are easy to buy, usually low in costs, frequently purchased and familiar.

The three types of convetuence ooods are staples, impulse goods and Emergency goods.

ii. Shopping Goods: This type of goods consumers visits many stores to compare prices

and features before purchasing. The consumer will be willing to embark on extensive

shopping for these goods because they are complex, expensive, unfamiliar and

perceived as risky purchases. Shopping goods can be divided into groups, Homogenous

and heterogeneous shopping goods.

iii. Specialty Goods: These are products for which there are no acceptable substitutes in the

customer's, mind. In other words, the consumer has strong preference for the brand.

iv. Unsought Goods: These are goods that consumers will not actively seek out, whose

existence in the market place. they may be unaware of and are reluctant to buy.

STANDARDIZATION AND GRADING

Most product are planned to confirm to specific industry and governmental criteria.

Standardization is the process that establishes, guarantees, and maintain products, quality,

qantity size, colour, service and price of materials and manufactured goods. It applies to both


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industrial and consumer goods and is required by Government and sometimes by industries

themselves.

Grading is the sorting of materials and manufactured products into categories according, to

established standards. For the manufacturer, Standardisation assures him that the materials he

purchases are of the proper quality, it also subjects him to compliance with standardisation in

the products he manufactures. For the ultimate consumer and industrial user, standardisation

guarantees true product representation.' Thus a reputable manufacturer must consider the

specifications to which his goods must confirm if his product is to be successful on the market.

Hampton and Zabin (1970).

2.5 MARKET SEGMENTATION

Weber (1994) defined market segmentation as identification and aggregation of

individual consumers coming from a heterogeneous population into groups or segments

where the population into groups or segments are relatively alike, yet. different from

other groups.

Market Segmentation Strategy is the opposite of mass marketing, in which a marketing

firm offers one basic product without distinguishing among various consumer needs,

wants and characteristics. Adeleye (2003).

Market Segmentation is ali important component of marketing strategy; this is because

market segmentation requires identifying a target group for a company's product or

service.

MACRO SEGMENTATION

This refers to a firm's selection of customers to be served. It is a creative act of

management in order to effectively serve their customers or. market targets. Consumers

tastes and preferences, shopping habits, income levels and other demographic

characteristics should be fully considered since they play much role in shaping the price

decisions of` a firm. Achumba and Osuagwu, (1994).

BENEFITS OF SEGMENTATION


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The marketing firms segment market according to the benefits that consumers seek in their

products. Benefits Segmentation is predicated on the belief that consumers buy solutions to

problems, rather than mere physical products. Adeleye (2003)

The demographic and lifestyle characteristics of each segment would then be determined by.

marketers and appropriate marketing strategies will be employed to satisfy the needs of each

market segment. Furthermore, in behavioural segmentation, markets can be segmented by

identifying Users of a product category and usage situations.

2.6 AFTERSALE SERVICE AS A WINNING TOOL TO CONSUMERS BRAND

LOYALTY

The business war has shifted onto a new battleground. In the 1960s, marketing was the

watchword for achieving competitive advantage but in 1970s, manufacturing became

tile hot topic and in the 1980s, quality. Now competition has arrived at the fourth

battlefield ... customer service. Davldow and Uttal (1_989).

When competition is generally mature, as it is in consumer!" packaged goods automobiles,

even the most artful advertising fails to convince customers that real differences exists. It is not

because the adverts are any worse that they used to be but because consumers are more

indifferent: "People believe more and more that all brands are basically the same, so they

figure, `why watch commercials?' Davidow and Uttal (1989).

Another battleground, onto which most companies have moved without knowing it, is service

to customers. Lacking meaningful ways to distinguish among core products and services,

people decide to do business based on how they expect to be treated. They start scrutinising the

efforts that competing sellers make to ensure buyers will get all the value a purchase promises.

Davidow and Uttal (1989)

As a competitive weapon, customer service may be less effective during the early phases of

highly innovative industries like consumer electronics. But when the sparkle of a new products,

low and high quality dims, as it quickly does, the that company has built a reputation for

service retains a nearly insurmountalble lead. Davidow and Uttat (1989).


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In the most routine, commonplace businesses, outstanding service offers great leverage. Take

Pest Control as an example. A $21.8 billion industry with small, shaky operators who do a

shoddy job.

Exterminators typically "control" roaches and rodents but never really eliminate them so

customers are hardened to mediocre performance and tend to buy on price, sharing

exterminators' margins. One company stands out. The only excellent exterminator in the United

States, say competitors and customers are "bugs".

Burger Bug Killers, a Miami - based company that Johnson Wax recently bought, BBBK

charges at least four timers what competitors do and brings 9 to 12 cents of each sales dollar to

the bottom line, a remarkably healthy performance for its industry.

The main reason for BBBK's, success is the extra value customers get in the form of service

guarantees. They don't have to pay fees for initial clean - out and monthly service until they

agree that BBBK's swat team has destroyed all nesting and breeding places on their premises. If

the bug killers can't keep up the good work, customers get a refund for their last twelve months

of service, plus free service from another exterminator for a year.

Most managers don't. invest heavily in service because they can't see the bottom - line effects,

the seeming conflict between good financial performance and good service is so clear to certain

management writers that they classify all companies into on of two categories: the small group

of service leaders that never count the cost of satisfying customers, and the huge majority of

businesses that seek to maximise profits by ininimisirig costs, which means they can not

produce superior service. The implication is that managers can focus either on customer's

service or on profits but not on both Davidow and Uttal, (1989).

Yet outstanding customer service is essential to long-term profits. It's, benefits come both in

"soft dollars" -- or cost avoidance - and in the "hard dollars" of higher margins and larger

market shares.

On the other hand, retaining customers is cheaper than acquiring new ones, which may not

matter much in mass markets for low priced goods such laundry soap.


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There, the cost of acquring a customer is relatively low, buyers switch brands pretty freely, and

most competent suppliers can expect a share of the business over time. Even in these markets,

even in these markets, customer service can pay off. By building brand loyalty, it dramatically

improves the returns to advertising and promotion.

2.7 WHERE SERVICE MATTERS MOST

The impact of outstanding customer's service is almost positive, but it does vary. Service rnay

not be crucial for monopolies, or in dictatorship, or when poverty forces customers to buy

strictly on price. Even in those cases, though, indifference to service is dangerous. When

customer dissatisfaction gets bad enough, monopolies can be broken. Dictatorships can be

forced to admit competition, as the Soviet Union has done by condoning private enterprises that

have taken up the slack left by incompetent state - tilanagcd businesses. Lacking adequate

service, impoverished price buyers will switch brands at first opportunity. Hampton and Zabin

(1970).

AFTER SALE ACTIVITIES

'The specific procedure to be followed after the sale will vary with the circumstances. If a sale

has been closed, the salesman should exercise good manners always and thank the customers.

He should not be so effusive that the customer wonders if he has ever made a sale before. His

voice should be well modulated, his manner, sincere but not obsequious. He may say

something like this:

"I appreciate your order very much, our merchandise (or ser ice) will do everything I've said it

will do. This Catalogue (or price of literature) may remind you of what you've ordered. I will

check hack in a week to be certain that the delivery (or installation)_ has been properly made. If

there is anything I can do in the mean time

- if you have any question - here is my card. Please don't hesitate to call me. I look forward to

doing business with you for a long time Hampton and Zabin (1970).

Particularly on the first order, a letter thanking the customer for his business is a good way to

cement the relationship. Many salesmen write customers after each call. If the sale involves a

guarantee or warranty, the salesman should give the customer a copy, possibly reminding him

of its highlights or terms.


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If the product or service requires someone to use it, the salesman should ask who is to be

trained and arrange an appointment for the training. A dictating machine salesman, for

instance, may ask the names of all those who will be dictating as well as those transcribing. An

industrial salesman may ask will be responsible for operating apiece of equipment, or what

engineers will most likely use the new strainers. A store buyer may be offered assistance in

setting up displays, or training clerks in demonstrating and selling. A wholesaler or jobber may

appreciate the offer of a sales training seminar for his salesmen. Unless a customer has made a

once - in - a - lifetime purchase like a house, or a once - in - a - long - time purchase, like an

automobile, he should be asked when he would like the salesman to make his next call.

Hampton and Zabin, (1970).

2.8 THE FOLLOW UP

After he has closed a sale, what a salesman does in terms of ensuring customer satisfaction is

termed the follow up. Follow up activities run the gamut as to type and extent of services

provided and the number of follow - up visits or calls to be made. The product deternnines all

or service sold, the price involved, and the number of times such a product or service will be

bought by the same customer. Some products, by their complexity, require a series of follow up

visits to be sure the product is being used correctly. There is a two - fold purpose. Hampton and

Zabin,

(1970).

1. It benefits the salesman to ensure the product is being handled and is working properly

and thus is providing the maximum service and benefits to the customer.

2. It can provide the salesman with an additiotial selling opportunity either to that

particular customer, or in soliciting naives of prospects.

Follow - up activities can take forms such as visits to the customer, a telephone call, or a letter

to enquire how the product is working. Sometimes follow - up may be carried out without the

customer knowing about it. For example, some salesman go to the plant and actually pick out

which items are to be shipped, particularly if each item represents a large sum of money. If they

know there i s a chance the shipment will be delayed, other salesman tactfully "prod'' the

warehouse or factory into pushing the deliveries.


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Deliveries are important to customer satisfaction. Customers seldom complain when shipment

of goods arrive early, but they always complain if the are late Hampton and Zabin, (1970).

SERVING THE CUSTOMER PROPERLY

The regular customer who is satisfied with salesman's product is usually as much satisfied with

the salesman as a person as with the services he provides.

Serving a customer properly can be time consuming, but the salesman must learn how to

combine serving with selling. Such services as helping the customer maintain a proper

inventory level or setting up a special point - of - purchase problem always pays off in

cementing good customer relations and results in more sales. Hampton and Zabin, (1970).

2.9 AFTERSA.LES ABSORPTION

Cross - subsidy of sales operations has long been the kingpin of the standard dealership

structure, and acknowledged in the widespread use of `after sales absorptiotn in the monitoring

of dealerships' financial health. The principle, now historic, was that profits from the sale of

after market parts and service / repair labour should be sufficient to cover- the total overheads

of the franchised dealership, including its generally economically - inefficient new vehicle sales

operations. Cross - subsidy also occurs between used car sales and new car sales, with slender

margins on the latter being offset with potentially better margins on the retailing of part

exchange and other used cars., Procter, (2003).

The standard approach to management accounting in franchised networks monitors a

diversified stream of revenues from inter -dependent dealership operations. No matter that

managers of individual departments are given targets that may encourage them towards inter -

departmental competition rather that co - operation.

Essentially, volume in one area of a dealership is dependent on volume in another. Logically,

since the great majority of new vehicle sales in a mature market involve the exchange of old

ve11icles, the used car market should drive demand in the new car market. In practice, the

market - priming activities and incentive programmes of manufacturers tend to put new car

sales -first among the dealership's immediate priorities. Procter, (2003) internet news.

However, assessing the case for cross - subsidy in franchised dealership is more that a matter of

how a complex operational mix may be best managed in a small business. The problem now


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faced by many dealerships is a real one - the after sales absorption formula no longer applies as

it was intended. What was still in the early 1990s an achievable 100% absorption of general

overheads by after sales in volume franchises is now declining towards 80%. Why? Partly

because increasing reliability are allowing zrianufacturers to use low servicing costs as a

competitive pricing weapon.

HOW AFETIZSALE WORKS

The principal. touch points between the car brand and the customer are the car itself and the

dealer service department. It is simply in these contexts that the owner or has the most frequent

and intensive experiences of interacting with the brands, products and its human

representatives. This being so, it is not surprising that some consumer research suggests that

experience of the car, and a good, Friendly relationship with the dealer, are instrurllental

factors, in Influencing customers to buy the same brand o1' car again, a prune aim of both

manufacturer and dealer alike (Procter, 2003).

CUSTOMER INTIMACY

A Company that delivers value through customer's intimacy builds bond with customers like

those between good neighbours.

Customer - intimate companies don't deliver what the market wants, but what specific customer

wants. Treacy and Wiersema (1990). The company makes a business of knowing the people it

sells to and the product and services they need. It continually tailors its product and services,

and does s at reasonable prices.

Customers don't have to be resold through expensive advertising and promotion, customer

intimate companies adapt giving the custorner more than he or she expects by constantly

upgrading their offerings, their by staying ahead of customers' expectation.

2.10 HOW TO MAINTAIN SERVICE CUSTOMER LOYALTY

For one thing, that securing service customer loyalty is worthwhile in itself, regardless

of making repurchase more likely. The separation of service from sales contracts by the

new block exemption is intended to improve new car buyer's acces to competitive

delivery of goods and service. By the same token, it frees service providers to offer

their services to more motorists, including drivers of different brands. In a declining but

still important after sales market still have the scope to build loyalty. Dealership should


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focus on building service business for its own sake, not using service as a loyalty tool

for repeat purchase. Davidow and Uttal, (1989).

QUALITY OF PRODUCT AS A TOOL TO AFTERSALE SERVICE

Yet another component of value is quality. In years past, quality was something you could add

to a product as an extra. Now it's given in all products and high quality is the cost of admission

to the market. Without it, you are not even in the ballpark.

For many people, quality means new features; it is used to be that you could add a bell or

whistle to an old product and call it improved. Now, if you don't revamp the product to reflect

the latest technology, nobody wants it. In the first half of this century, German cameras and

lenses were unequalled in workmanship and popularity, prized by all serious photographers,

professional and amateur.

Suddenly, in the 1950's -Japanese Company named Nikon introduced lenses made from rare-

earth glasses and Nikon new products astonished photographers everywhere and spurred the

company's sales. The ability to generate high - quality, low - cost products that the market has

never seen before is the lynchpin of Japan's corporate growth. Treacy and Wiersema (1995).

2.11 CONSUMER BEHAVIOUR

The term "consumer behaviour" is defined as those acts individuals directly involved in

obtaining and using economic goods and services, including the decision processes that

precede and determine these acts. Engel, Blaclcwell and Kollat, (1978).

One of the objectives of a company's marketing activities is to influence customers

select its product or service instead of other merchandise when they enter into the

marketplace. It becomes necessary for marketing mangers to understand the reasons

that underscore the behaviours of buyers so that they can do a better- job of planning,

developing, pricing, promoting and distributing products to consumers. A through

analysis of consumer bellaVIOltl' must provide insights into why individuals buy goods

and services, how they make their purchase decisions, and the variables that affect their

decision - making process. Adeleye (2003).


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It means that for any company to succeed in the marketplaces, the organisation must

have adequate knowledge and understanding of their consumers desired products or

services.

2.12 CUSTOMER ANALYSIS

The customer analysis is the first logical step in strategic market planning, Kotler

(1994) has described the heart of modern strategic marketing as segmenting, targeting

and positioning (STP). Since one marketer cannot satisfactorily satisfy the whole

market or industry, therefore it is imperative that the market is segmented.

Marketing response to the market needs over time according to Kotler (1994) has

passed through three stages.

Mass Marketing where the seller engages in the mass production of one product for all

buyers. The assumption was that it would lead to the lowest costs and prices.

Product variety marketing is where the producer produces different varieties of different

features, styles, qualities, sizes and so on of several products variety to buyers rather

than appeal to different market groups.

Target Marketing is where the seller identifies the major segments of the market and

targets the most attractive one or more of these segments and develops products and

marketing programmes tailored to each selected segment.

Therefore, customer analysis must address the following questions:

Who are the biggest customers?

What motivates customer behaviour?

Are there unmet needs?

These strategic questions will lead to other strategic sub - questions before any strategic

decision could be taken Achumba, C I (2000)


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INTRA INTERPERSONAL INFLUENCES ON CONSUMER BEHAVIOUR

Matching product offers to maerket depends on demonstrating to market targets (through

product design, promorional appeals, sevice value, location convinience, and so forth) that a

companys brand provides a better solution to needs, wants or problems that does another brand

or other products types Achumba and Osuagwu, (1994). Marketing managers can gain valuable

insight into how to attain this match by analysing how people decide what to buy. The stimulus

response model somewhat similar to the system paradigm.

The stimulus response model shows marketing information and other stimuli entering the

buyers black box and producing certain responses.

THE BUYER'S BLACK BOX

Outside Stimuli Buyers

Black Box

Buyers Responses

Marketing Others Buyers

characteristics

Buyers

decision

process

- Product

choice

- Brand

Choice

- Dealer

choice

- Purchase

choice

- Timing

choice- Purchase

Amounts

Product

PricePlace

Promotional

Economics

TechnologicalPolitical

Cultural

The buyer's black box has two parts: the buyer's characteristics and the buyer's decision

process. So, a consumer's buying decision is highly influenced by his personal predisposition,

which includes learning process, evaluative criteria, attitudes, personality, motivation, and

central control unit.


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REFERENCES

Procter, T. (2003) More about After sales issues. Internet news October 07, 2003.

Procter,T (2003) Retail regulation and the aftermarket, Automotive online, January 8,2002.

Adeleye A.S (2003) Marketing Principle and Practice ( Revised Edition)

Mushin, Concept publication Limited pp 56, 101 and 274.

Achumba; I . C (2000) Strategic Marketing Management in the 21st century. Charlotte

U.S.A, Mac-williams and capital pp 197.

Achuma 1. C and osuagwu (1994) Marketing Fundamentals and practice.

Rock hill U.S.A, AI-Marks Educational Research Inc. pp 148 and 236.

Treacy, M and Wiersema, F (1995) Discipline of market leaders. Cambridge,

Massachisettes, Perseus Book. PP8 and 40.

Kotler Philip (1994) Marketing Management Analysis Planning Implementation and

Control 8th Edition PP 204.

Kotler, P (1988), Marketing Management: Analysis. PlanningImplementation and

Control (6"' Edn) hyentice- I--klICU.S.A, PP 1 .


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Holloway, R.J and Hancock, R.S.(1973), Marketing in a changing Environment, Wiley, New

York, U.S.A PP 10.

American Marketing Association (AMA) (1960), Committee on Definitions, Marketing

Definitions: A Glossary of Marketing Terms, Chicago, U. S. A, PP 15

Schewe, C. D and Smith, R. M. (1983) Marketing Concepts and Applications, Mc Graw -

Hill. Pp4

Risley, G. (1972) Modern Industrial Marketing

Mc G raw - Hill Inc. New York, U. S. A, pp 11.

Mazur, P. (1947), "Does Distribution Cost Enough?" Fortune, (November), pp 138

Baker, M. J (1992), Marketing Strategy and Management (2nd Edn) Macmillan Britain, pp262

Handscombe, R. S (1989) The Product Management Handbook, Mc Graw Hill.

Hampton, R. E and Zabin B. J (1970) College Salesmanship. Gregg Division /Mc Graw -

Hill Book Company U. S. A pp39, 129,332

Davidow H. W and Uttal B (1990) Total Customer Service. The Ultimate Weapon . Harper

Colins Publishers, New York pp245, 25, 20, 27.


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CHAPTER THREE

RESEARCH METHODOLOGY

3.1 INTRODUCTION

This chapter is the preliminary sketch of the research work that is to be carried out. It

is the vase a researcher uses. The appropriate sampling method will be used in the

selection of subjects for the study.

The population of study, sampling technique, sample, and size, sources of data,

method of data collection, data collection instrument and method of data presentation,

analysis and interpretation shall be discussed.

3.2 RESTATEMENT OF THE RESEARCH QUESTION

i. Does after sale service have impact on consumers brand loyalty?

ii. Is there any relationship between after sale services and consumer's

brand loyalty?

iii. In which other ways can a manufacturer use in securing and

maintaining consumers brand loyalty on a product?

iv. What are the possible problems facing an organization in using after

sale services to secure and keep the consumer's brand loyalty?

v. What are the possible solutions to the problems facing an organization

in keeping the brand loyalty of their consumers?

3.3 POPULATION OF THE STUDY

This includes the staff of Coscharis Motors in Lagos.

3.4 SOURCES OF DATA

For the purpose of this study the researcher will make use of the most appropriate

source of statistical data, which are primary and secondary data.

Therefore, the sources of data shall be the primary and secondary data.

Primary Sources of data is where data are collected from original source of

information or acquired raw. In this type of data collection, Questionnaire will be

used in obtaining the data.

Secondary Sources of data are usually extracted from periodical, textbooks, journals,

published works etc. and most of a time from the Federal Office of Statistics.


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3.5 SAMPLE SIZE AND SAMPLING TECHNIQUES

A sample size of 40 will be used for the purpose of this research work and the sample

subjects shall include the individuals from the population of study in the appropriate

proportion.

However, the stratified random sampling technique will be used to select the sample

of staff in Coscharis Motors in Lagos metropolis while judgmental and convince

sampling technique will be used to select the appropriate individuals to whom the

questionnaire shall be administered to in each stratum.

3.6 DATA COLLECTION INSTRUMENT

The data collection instrument to be used in this study shall be questionnaire, which

would be given to the respondents.

The choice of questionnaire is that it guarantees a higher level of anonymity of the

individual, which most respondents will prefer. It also enhances the use of

standardized questions.

3.7 METHOD OF DATA COLLECTION

For the purpose of this research work, both primary and secondary data will be used.

Primary data are drawn from their original sources while secondary data are taken

from journals, books, periodicals. Federal Office of Statistics etc. as the case may be.

For the purpose of this study, primary data will be obtained through questionnaire

while the secondary data will be obtained from periodicals, office gazette, textbooks,

journal etc.

3.8 METHOD OF DATA PRESENTATION AND ANALYSIS

The completed questionnaire will be collected, serialized, coded and analyzed

sequentially according to the research question to facilitate analysis. Sample

percentage, means, standard deviation and frequency distribution shall be used to

analyze the data. Also Z score test of difference of two means will be used to test the

hypothesis.
http://etc.as/http://etc.as/


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3.9 CODING

The responses to the Likert type of statement are on a five (5) points scale that ranges

from Strongly Agree - Strongly Disagree. Below are the points awarded to each:

Strongly Agree - 5 points

Agree - 4 points

Undecided - 3 points

Disagree - 2 points

Strongly Disagree - 1 point


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REFERENCES

Asika, N. M. (1991) Research Methodology in Behavioural Science, Ikeja

Longman, PP 79 - 100

Dixon - Ogbechi, B. N. (2002) Research Methods and Elementary Statistics in Practice,

Lagos, Philglad Nigeria Ltd. PP 46 - 56

Nworgu, B. G. (1991) Educational Research Basic Issues and Methodology, Owerri,

Wisdom Publishers limited. PP 115, 116 and 117.


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CHAPTER FOUR

4.1 DATA PRESENTATION AND ANALYSIS

The purpose of this chapter is to show and interpret the results of the field survey

being carried out and to use them to answer the questions, which the researcher has

planned to solve in, the courseof this study.

4.2 PRESENTATION

The analysis of data collected from the customers and staff of Coscharis Motors shall

be treated into sections, demographic data of the respondents and the questionnaire as

section A and B respectively. The statistical methods of measurement, in this work

shall be: frequency distribution, percentages, means (x) and standard deviation. The Z

- score test will be use to test hypothesis.

4.3 THE STUDY

In the study, the impact of after sale service on consumer's brand loyalty on a

product, a case study of Coscharis Motors after sale services to their respective

customers is being studied and several factors considered. The responses to these

factors are shown in the tables to be presented. The responses to these factors are

given in a 5 -point's Likert type scale.

The responses Strongly Agree and Agree have five (5) and four (4) points

respectively and are categorized as high, Undecided has a score of three (3) points

and is categorized as medium. The responses Disagree and Strongly Disagree

have two (2) and one (1) point respectively and are categorized as low. The high

category means that the respondent has a moderate view on the statement while low

category means that the respondents disagree with the statement.

4.4 ANALYSIS OF THE QUESTIONNAIRE

4.4.1 Administration of the questionnaire


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The administration of the questionnaire had not been an easy task since the

sample subject targeted are not easy to reach because of their tight schedule

because of this, returning, the completed questionnaire were some how low.

Meanwhile, the entire questionnaires were not returned, giving me 95% returned

rate of the exercise.

4.4.2 Analysis of Demographic Data

The demographic data section A of the questionnaire is analyzed using frequency

distribution and simple percentages. They are shown on the table.

Table 4.1.

Distribution of Respondents according to demography

Age, Sex, Marital Status

Age (years) Sex Marital

Status

No. % No. % No. %

Under 20 yrs - - Male 25 66 Single 10 26

21 yrs 30 yrs 6 16 Married 27 71

31 yrs 40 yrs 24 63

Female

13 34 Divorced 1 3

41 yrs and above 8 21 Widower - -

Total 38 100 38 100 38 100

Source: Survey Research 2003

From Table 4.1 above, shows, that 24 (63%) of the respondents are between the

ages of 31 years and 40 years old, 8 (21%) are 41 years old and above while 6

(16%) of the respondents are between the ages of 21 years and 30 years old.

It can also be observed that 27 (71%) of the respondents are married, 10 (26%) ofthe respondents are single while 1 (3%) of the respondents is divorced and no

widow/widower participated in the survey.

Table 4.2

Distribution of Respondents according to Demographic Data of Educational

Qualification, Income Bracket (P.A.) And Organizational Status.

Educational No. % Income Bracket No % Organizational No %


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Qualification . Status .

Primary Education - 60,000 70,000 8 21 Junior Officer

Grade

2 5

GCE/SSCE 1 3 80,000 90,000 - - Middle Officer

Grade

8 12

NCE/OND 5 13 100,000 110,000 - - Senior Officer

Grade

19 50

BSC/HND 19 50 120,000

ABOVE

30 79 Executive Officer

Grade

9 24

M. Sc/MBA/ph.D. 13 34 38 100

Total 38 100 38 100 38 100


Table 4.2 above, shows that 1 (3%) of the respondents is a GCE / SSCE holder, 5 (13%) are

NCE/OND holder and 19 (50%) of the respondents are B.Sc/HND holders while:, 13 (34%)

of the remaining respondents are MSc/MBA/Ph.D. holder. No holder of primary education

certificate participated in the survey.

Meanwhile, it is observed that 8 (21%) of the respondents are having Income Bracket of

60,000 70, 000, 30 (79%) of the respondents have Income bracket of 120,000 and above

while none of the remaining Income Bracket used during the survey took part in the exercise.

On the other hand, it is observed that 2 (5%) of the respondents are made up of Junior Officer

Grade, 8 (21%) are made of Middle Officer Grade while 19 (50%) of the respondents are

made up of senior officer grade, which means the remaining 9(245) of the respondents are of

the Executive Officer grade.

SECTION B OF THE QUESTIONNAIRE

4.4.3 Analysis of other Data

Section B part of the questionnaire will he analyzed using the coding, mean,

standard deviation and the test of hypothesis shall be by the Z - score test of

difference of two means (X) of the sample.

4.4.3.1 Does after-sale service have impact on consumers Brand loyalty?

Table 4.3

Mean and Standard Deviation of the respondents in the Questionnaire.


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(Questions 7 11)

Supportive Views X SD

Good will results out of after-sale service which enhances consumers brand

loyalty.

4.1 0.9

After-sale Service builds consumer's brand loyalty which enhances a repeat

purchase.

4.3 0.8

After-sale Service strategy helps an organization to have an edge over its

competitors.

4.5 0.7

After-sale Service makes the customer to have confidence on the organization's

products.

4.1 0.8

After-sale service enhances consumers brand loyalty which increases sales

volume.

4.0 0.9

increases sales volume

Source: Survey research 2003

Table 4.3 above, shows that the respondents agrees with the statement that After-Sale service

have impact on consumer which enhances consumers brand loyalty, it gives room for a

repeat purchase, it also helps an organization to have an edge over it's competitors,

encourages confidence on the organizations products and increases sales volume.

Meanwhile, with the mean 4.1, 4.3, 4.5, 4.1, 4.0 and standard deviation of 0.9, 0.8, 0.7, 0.8,

0.9, after-sale service will help to catch the potential consumers of the brand.

4.4.3.2 Is there any relationship between after sales services and consumers

brand loyalty?

Table 4.4

Mean and Standard deviation of the respondents in the questionnaire.

(Questions 12 15).


The relationship between after-sales service and consumers brand loyalty is

directly correlated.

3.7 1.0

The relationship between after-sale services and consumers brand loyalty is

positively correlated.

3.9 1.0

The relationship between after-sale services and consumers brand loyalty is not

significant.

1.8 0.9

The relationship between after-sale services and consumers brand loyalty is 2.5 0.9


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moderately correlated

Source: Survey research 2003

Table 4.4 above, it is observed that respondents with mean value 3.7, 3.9 and standard

deviation 1.0 respectively have moderate views on the statement that the relationship

between after-sale services and consumers brand loyalty is directly correlated, positively

correlated while respondents with mean value 1.8 and standard deviation 0.9 strongly

disagree that the relationship between after-sale service and consumers brand loyalty is not

significant and the respondents with mean value 2.5 and standard deviation 0.9 disagree that

the relationship between after-sale services and consumers brand loyalty is moderately

correlated.

4.4.3.3 In which other ways can a manufacturer use in securing and maintaining

consumers brand loyalty on a product?

Table 4.5

Mean and standard deviation of the respondents in the questionnaire.

(Questions 16 - 20)


Table 4.5, shows that the respondents agree with the statement that sales promotion can be

used in securing and maintaining consumers brand loyalty on a product and it has a mean

value of 4.0 and standard deviation 0.6 while others have a moderate view on the statement

that inter-personal relationship can be used in securing and maintaining consumer's loyalty

on a product, gifts/incentives can be used in securing and maintaining consumers brand

loyalty on a product, seminars and missionary selling can be used in securing and


Inter-personal relationship can be used in securing and maintaining consumers

brand loyalty on a product.

3.9 0.9

Sales promotion can be used in securing and maintaining consumers brand

loyalty on a product.

4.0 0.6

Gifts/incentives can be used in securing and maintaining consumer's brand loyalty

on a product.

3.7 0.9

Seminars and missionary selling can be used in securing and maintaining

consumers brand loyalty on a product.

3.6 1.1

Trade exhibitions can be used in securing and maintaining consumers brand


3.6 1.0


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maintaining consumer's brand loyalty on a product and trade exhibition can also be used in

securing and maintaining brand loyalty with the mean value 3.9, 3.7, 3.6, and standard

deviation 0.9, 0.9, 1.1 and 1.0 respectively.

4.4.3.4 What are the possible problems facing an organization in using

after sale services to secure and keep the consumer's brand loyalty?

Table 4.6

Mean and standard deviation of the respondents in the questionnaire.

(Questions 21 - 25)

SUPPORTIVE VIEWS X SD

Lack of adequate information on the product is a problem facing an organization in using

after sale services to secure and keep the consumer's brand loyalty 4.0 0.8The presence of competitor's is a problem facing an organization in using after sale

services to secure and keep the consumer's brand loyalty 3.1 1.1

Government policies and environmental policies are problems facing an organization in

using after sale service to secure and keep the consumer's brand loyalty 3.0 1.1

Lack of adequate marketing strategies is a problem facing an organization in using after

sale service to Secure and keep the consumer's brand loyalty 4.0 0.8

Poor product quality is a problem facing an organization in using after sale service to

secure keep the consumer's brand loyalty 4.5 0.8Source: Survey Research 2003

Table 4.6 above, shows that respondents with mean 4.5, 4.0, 4.0 and standard deviation of

0.6, 0.8, 0.8 respectively agree that inadequate information on the product is a problem,

inadequate marketing strategies is a problem facing an organization in using after sale service

to secure and keep the consumer's brand loyalty. Respondents with mean 3.1; 3.0 and

standard deviation of 1.1 respectively have a moderate view to the statement that presence of

competitors is a problem and government policies/environmental policies are problems

facing an organization in using after sale service to secure and keep the consumer's bland

loyalty.

4.4.3.5 What are the possible solutions to the problems facing an

organization?

Table 4.7

Mean and standard deviation of the respondents in the questionnaire.(Questions 26-31)


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SUPPORTIVE VIEWS X SD

Adequate information available to consumers is a possible solution to the problems

facing an organization in keeping the brand loyalty of their consumers 4.0 0.8

Adequate marketing Strategy is a possible solution to the problem facing an

organization in keeping the brand loyalty of their consumers' 4.1 0.9High product quality is a possible solution to the problem facing an

organization in keeping the brand loyalty of their consumers. 4.4 0.8

Consistent Government policies and environmental policies are possible solutions to the

problems facing an organization in keeping the brand loyalty of their consumers. 3.3 1.1

Constant research and development is a possible solution to the problem facing an

organization in keeping the brand loyalty of their consumers4.1 0.9

The creation of customer services department is a solution to the problem facing the

organization in securing and maintaining the consumers brand loyalty on a product.4.0 1.0


From Table 4.7 above, it is observed that the respondents with mean 4.0, 4.1, 4.4, 4.1, 4.0

and standard deviation of 0.8, 0.9, 0.8, 0.9, 1.0 agree that some of the solutions given which

are that adequate information available to consumers is a possible solution, adequate

marketing strategy is a possible solution, high product quality is a possible solution, constant

research and development is a possible solution and creation of customer service department

is another solution to the problem facing the organization in securing and maintaining the

consumers brand loyalty on a product. Respondent with mean 3.3 and standard deviation 1.1

has a moderate view to the statement that consistent Government policies/environmental

policies are possible solution to the problem facing an organization in keeping the brand

loyalty of their consumers.


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Table 4.8

Hypothesis tested using the Z - score test at 0.01 level of significance

VIEWS N X SD CAL.

VALUE

REMARK

There is a relationship between after-sale

service

38 3.9 1.0

0.87 S

There is no relationship between after-sale

service and consumers brand loyalty

38 3.7 1.0


4.5 HYPOTHESIS TESTING

The means and standard deviation derived in Appendix c will be used to test the

hypothesis is tested at 0.01 level of significance using the Z score test of two

differences of two means for the data gathered. The formula shown below will be

used to test the hypothesis.

X1 X2

Z =

S12 + s2

2

n1 n2

Where X1 = mean of the first item

X2 = mean of the second item

S1 = standard deviation of the first item

S2 = standard deviation of the second item

n1 = number of respondents of the first item

n2 = number of respondents of the second item

Z = difference between the mean of two samples

Key:

n1 = Number of Respondents

X = Mean

SD = Standard deviation

Calc. Value = Calculated Value


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N.S. = Not Significant

S = Significant

COMPUTATIONS

HYPOTHESIS (H0)

N1 = 38 N2 = 39

X1 = 39 X2 = 3.7

S1 = 1.0 S2 = 1.0

(3.9 3.7)

Z =

(1.0)2 + (1.0)2

38 38

0.2

Z =

(1.0) + (1.0)

38 38

0.2

Z =

0.0263 + 0.0263

0.2

Z =

0.5626

Z = 0.20

0.23

Z = 0.87


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Decision Rule: Accept H0 since the calculated value 0.87 falls within the critical

region which is + or 1.96 and this read from table since it is a two failed test, then

the level of significance i.e. = 0.01 will be divided by two.

Therefore, = 0.05 = 0.025

2 2

This implies that there is a relationship between after sale service and consumer's brand

loyalty

CONCLUSION

From the hypothesis tested, there is a relationship existing between after sale service and

consumer's brand loyalty, which has a positive effect in enhancing, repeat purchase. .


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CHAPTER FIVE

SUMMARY OF MAJOR FINDINGS,

RECOMMENDATIONS AND CONCLUSIONS

5.1 INTRODUCTION

This chapter is the final stage of the research work. It gives the summaries of the major

findings discovered in chapter four to which recommendations to solve the problems

are offered and conclusions drawn.

5.2 SUMMARY OF MAJOR FINDINGS

5.3 In chapter four (4), which is the preceding chapter-to-chapter five (5), attempts were made to

throw light on after-sale service having impact on consumers brand loyalty. In the course of

the study, it was discovered that:

a.Respondent's age range, which is between 21 years and above 41 years, shows

that the respondents are adults who know what they want at any given time.

b.It was also discovered that majority of the respondents are male with good

number of female representative.

c.Most of the respondents are married with significant number of respondents that

are single and a respondent representing divorcee.

d.The respondent between the ages of 31 years to 40 years has 24 (63%), which is

the highest percentage, which means the respondents in this category are gainfully

employed or they are doing a reasonable business.

e.The male respondent percentage is higher than the female which means men

buy goods and services that require after sale-services.

f. Majority of the respondents are learned with degree(s) but few are without

degrees.

g.Though majority of the respondents have a high-income bracket but few

minimum income earners are also represented.

h.Most of the respondents are of high-ranking officers grade but middle and

junior officers grade are also represented.

i. The respondents agreed on the following statements that good will result out of

after-sale service which enhances consumers brand loyalty.


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j. After-sale service builds consumer's brand loyalty which enhances a repeat

purchase.

k.After-sale service strategy helps an organization to have an edge over its

competitors.

l. After-sale services make the consumer to have confidence in the organization's

products.

m. After-sale service enhances consumers brand loyalty which increases

sales volume.

n.Sales promotion can be used in securing and maintaining consumers brand

loyalty on product.

o.Lack of adequate information on the product is a problem facing an

organization in using after-sale services to secure and keep their consumers

brand loyalty.

p.Lack of adequate marketing strategies is a problem facing an organization in

using after-sale brand loyalty.

q.Poor product quality is a problem facing an organization in using after-sale

service to secure and keep the consumers brand loyalty.

r. Adequate information available to consumers is a possible solution to the

problem facing an organization in keeping the brand loyalty of their consumers.

s.Adequate marketing strategy is a possible solution to the problem facing an

organization in keeping the brand loyalty of their consumers.

t. High product quality is a possible solution to the problem facing an organization

in keeping the brand loyalty of their consumers.

u.Constant research and development is a possible solution to the problem facing

an organization in keeping the brand loyalty of their consumers.

v.The creation of customer services department is a possible solution to the

problem facing an organization in securing and maintaining the consumer's brand


w. The hypothesis tested shows that there is a relationship between after-

sale service and consumer's brand loyalty.

5.3 RECOMMENDATION

The following recommendations are made based on the findings in Chapter Four (4):


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a. Since, after sale service builds consumers brand loyalty, which enhances a

repeat purchase, organizations that ignored after sale service are advised to

embark on it because repeat purchase is the dream of every manufacturer.

b. Goodwill which is also part of after sale service enhances consumer's brand

loyalty therefore, marketing managers should consider it as a very good tool

that can be used in keeping their consumer's brand loyalty

c. Since, after-sale service strategy helps an organization to have an edge over

its competitors; marketing managers are advised to take after sale service

serious in order to undermine their competitors.

d. Organizations are advised to have after-sale service, as one of the marketing

strategies because it is through this service that consumers loyalty is built.

e. After-sale service is a tool a manufacturer needs to enhance consumers brand

loyalty, which increases sales volume, which is the ultimate dream of every

organization.

f. Organizations are advised to include sales promotion as one of the tools that

will be used in securing and maintaining consumer's brand loyalty on a

product.

g. Since, lack of information on the product is a problem facing an organization

in using after sale services to secure and keep their consumer's brand loyalty,

provision of adequate information concerning the brand by the organization

will be of help to the consumer.

h. Lack of adequate marketing strategies is a problem facing an organization in

using after-sale service to secure and keep the consumers brand loyalty,

organizations marketing development are advised to go into research work so

that new marketing strategies will be achieved.

i. Poor product quality is a problem therefore: the department of Research and

Development of any organization should do more research work in order to

improve on the product.

j. Organizations are advised to create a customer service department to enhance

job specialization of labour and good productivity which consumer will enjoy.

5.4 CONCLUSIONS


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5.5 This study looked at the research questions discussed in chapter one (1) concerning the

impact of after sale service on consumer's brand loyalty on a product. From the findings of

the data analyzed, the following conclusions were drawn:

a. Effective after sale service builds consumer's brand Loyalty.

b. After-sale service builds consumer's confidence on the organizations

products.

c. After-sale service enhances consumer's brand loyalty, which leads to sales

volume increase.

d. Sales promotion is also a tool in securing and maintaining consumers brand

Amanze Donatus Project 2_2

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