DISSERTATIONS REPORT STUDY OF READINESS OF AFTER SALES SERVICE OF LUXURY CARS TO ALIGN WITH ITS 2020 PERSPECTIVE IN DELHI Submitted by Anshul Narula A0102214102 MBA Class of 2016 Under the Supervision of Dr. Sumeet Singh Jasial Assistant Professor Department (Operations) In Partial Fulfillment of the Requirements for the Degree of Master of Business Administration (Marketing & Sales) AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
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DISSERTATIONS REPORT
STUDY OF READINESS OF AFTER SALES SERVICE OF LUXURY CARS TO ALIGN WITH ITS 2020 PERSPECTIVE IN DELHI
Submitted by
Anshul NarulaA0102214102
MBA Class of 2016
Under the Supervision of
Dr. Sumeet Singh Jasial
Assistant Professor
Department (Operations)
In Partial Fulfillment of the Requirements for the Degree of Master of Business Administration (Marketing & Sales)
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
DECLARATION
The title of Dissertation Report is study of readiness of after sales service of luxury cars
to align with its 2020 perspective in Delhi.
I declare that (a) the work presented for assessment in this Dissertation Report is my
original work, that it has not previously been presented for any other assessment and that
my debts (for words, data, arguments and ideas) have been appropriately acknowledged;
(b) work conforms to the guidelines laid by the University, and (c) Plagiarism for this
report has been checked using turnitin software and is 9 %. The summary of report is
attached along with for reference.
Date: …………… Anshul Narula
A0102214102
MBA – M&S
(Class of 2016)
ii
CERTIFICATE
This is to certify that Anshul Narula student of Masters of Business Administration –
M&S at Amity Business School, Amity University Uttar Pradesh has completed the
Dissertation Report on “study of readiness of after sales service of luxury cars to align
with its 2020 perspective in Delhi”, in Partial Fulfillment of the Requirements for the
Degree of Master of Business Administration – Marketing & Sales under my guidance.
The report has been checked for the plagiarism and it is acceptable.
Dr. Sumeet Singh Jasial
Assistant Professor
Department (Operations)
LETTER OF ACKNOWLEDGEMENT
iii
Dear Readers,
I am extremely thankful to my mentor and guide Dr. Sumeet Singh Jasial for her constant support, encouragement and guidance, without which I could not have successfully completed my project on the subject of ‘Study off readiness of after sales service of luxury cars to align with its 2020 perspective in Delhi’. I would also like to thank all the participants of the research, my family& friends and of course fellows who spared their valuable time to help me and provided us the guidance to finally come up with this report. I will seek my continuous assistance and support in future.
Figure 4.18 Responses on authorization of service centers.
Interpretations:
Authorization is also an important point when it comes to after sales service as 32% and
28% have agreed and strongly agreed to the same respectively.
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4.3 Cross Tabs4.3.1 What luxury brands car you own ? * it is difficult to maintain a luxury car .cross tabulation
It is difficult to maintain a luxury car .
TotalWhat luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 3 7 15 17 8 50
BMW 1 0 7 7 7 2 23
Total 3 14 22 24 10 73
4.3.2 What luxury brands car you own ? * it is difficult to maintain a luxury car .cross tabulation
It is difficult to maintain a luxury car . Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 2 10 14 20 7 53
Audi 1 1 4 8 4 3 20
Total 3 14 22 24 10 73
4.3.3 What luxury brands car you own ? * it is difficult to maintain a luxury car .cross tabulation
It is difficult to maintain a luxury car . Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 2 9 15 20 8 54
Mercedes 1 1 5 7 4 2 19
Total 3 14 22 24 10 73
Interpretation: We here get the perception regarding difficulty of maintain a luxury car , which comes ot to be BMW customers don’t have a single opinion , Audi and Mercedes customers are neutral to the same.
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4.3.4 What luxury brands car you own? After sale services affects ones brand choice. Cross tabulation.
After sales services affects ones brand choice. Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 2 5 13 23 7 50
BMW 1 0 2 9 5 7 23
Total 2 7 22 28 14 73
4.3.5 What luxury brands car you own? After sale services affects ones brand choice. Cross tabulation.
After sales services affects ones brand choice. Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 0 3 16 21 13 53
Audi 1 2 4 6 7 1 20
Total 2 7 22 28 14 73
4.3.6 What luxury brands car you own? After sale services affects ones brand choice. Cross tabulation.
After sales services affects ones brand choice. Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 2 3 17 20 12 54
Mercedes 1 0 4 6 8 2 19
Total 2 7 22 28 14 73
Interpretation: Here the perception found regarding after sales affecting once brand choice is, BMW customers are neutral, Audi and Mercedes customers agree to the sam
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4.3.7 What luxury brands car you own? A company has enough number of service centers. Cross tabulation.
A company has enough number of service centers. Total
4.3.8 What luxury brands car you own? A company has enough number of service centers. Cross tabulation.
A company has enough number of service centers. Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 2 10 16 18 7 53
Audi 1 0 3 2 13 2 20
Total 2 13 18 31 9 73
4.3.9 What luxury brands car you own? A company has enough number of service centers. Cross tabulation.
A company has enough number of service centers. Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 2 11 12 21 8 54
Mercedes 1 0 2 6 10 1 19
Total 2 13 18 31 9 73
Interpretation: The perception found by the statement “company has enough no of service centers” is, BMW, Audi and Mercedes customers are satisfied with the same.
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4.3.10 What luxury brands car you own? Company always provides on road assists. Cross tabulation.
Company always provides on road assists. Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 2 6 19 18 5 50
BMW 1 1 8 5 6 3 6
Total 3 14 24 24 8 73
4.3.11 What luxury brands car you own? Company always provides on road assists. Cross tabulation.
4.3.12 What luxury brands car you own? Company always provides on road assists. Cross tabulation.
Company always provides on road assists. Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 2 10 20 16 6 54
Mercedes 1 1 4 4 8 2 19
Total 3 14 24 24 8 73
Interpretation: The perception found by the statement “company provides on road assist” is BMW customers did not agree, Audi customers were neutral and Mercedes customers agreed to the same.
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4.3.13 What luxury brands car you own? All service costs are completely justified. Cross tabulation.
All service costs are completely justified. Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 7 13 16 10 4 50
BMW 1 7 6 3 7 0 23
Total 14 19 19 17 4 73
4.3.14 What luxury brands car you own?All service costs are completely justified. Cross tabulation.
All service costs are completely justified. Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 13 12 13 12 3 53
Audi 1 1 7 6 5 1 20
Total 14 19 19 17 4 73
4.3.15 What luxury brands car you own?All service costs are completely justified. Cross tabulation.
All service costs are completely justified. Total
What luxury brands car you own?
Strongly Disagree
Disagree Neutral Agree Strongly Agree
Others. 8 16 15 13 2 54
Mercedes 1 6 3 4 4 2 19
Total 14 19 19 17 4 73
Interpretation: The perception found with the statement “all cost are completely justified” were, BMW Audi and Mercedes customers disagreed to the same .
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4.4 Factor Analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.652
Bartlett's Test of Sphericity
Approx. Chi-Square 83.313
Df 28
Sig. .000
Table 4.4.1
Hence all these standards indicate that the data is suitable for the factor analysis. For extracting factors we have employed principal component analysis. Rotation methods, Kaiser Normalization with equamax were also applied. As per the latent root criterion, only the factor having latent roots or Eigen values greater than considered significant; and all the factor with latent root less than considered insignificant and disregarded.
Communalities
Initial Extraction
It is difficult to maintain a luxury car.
1.000 .525
luxury car owners only prefer company authorized service centres.
1.000 .437
After sales services affects one's brand choice.
1.000 .278
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A company has enough number of service centres to satisfy Their every customer.
1.000 .562
Company always provides on-road assists.
1.000 .620
All service costs are completely justified.
1.000 .553
Company always notifies when your car service is due.
1.000 .486
Service duration is appropriate.
1.000 .428
Table 4.4.2
Extraction Method: Principal Component Analysis.
Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance
Cumulative %
Total % of Variance
1 2.315 28.933 28.933 2.315 28.933
2 1.574 19.676 48.609 1.574 19.676
3 .925 11.560 60.169
4 .857 10.711 70.880
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5 .748 9.355 80.235
6 .681 8.518 88.753
7 .484 6.047 94.799
8 .416 5.201 100.000
Table 4.4.3
Total Variance Explained
Component Extraction Sums of Squared Loadings
Rotation Sums of Squared Loadings
Cumulative % Total % of Variance Cumulative %
1 28.933 2.248 28.103 28.103
2 48.609 1.640 20.506 48.609
3
4
5
Table 4.4.4
Component Matrixa
Component
1 2
It is difficult to maintain a luxury car.
-.465 .555
luxury car owners only prefer company authorized service centres.
.308 .585
55
After sales services affects one's brand choice.
-.060 .524
A company has enough number of service centres to satisfy Their every customer.
.749 -.037
Company always provides on-road assists.
.785 .059
All service costs are completely justified.
.368 -.646
Company always notifies when your car service is due.
.527 .456
Service duration is appropriate.
.639 .139
Table 4.4.5
Extraction Method: Principal Component Analysis.
Large communalities in table indicate that a large number of variance has been accounted by the factor solution. They are bigger than 0.5 for all the questions. This is the indicator of suitability of the questions.
On the behalf of the data reduction in the following research the method applied is component matrix method in which various statements given a special trend for this. Component matrix has get with the help of SPSS.
Component Transformation Matrix
Component 1 2
1 .954 -.299
2 .299 .954
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Table 4.4.6
Rotated Component Matrixa
Component
1 2
It is difficult to maintain a luxury car.
-.278 .669
luxury car owners only prefer company authorized service centres.
.469 .466
After sales services affects one's brand choice.
.099 .518
A company has enough number of service centres to satisfy Their every customer.
.703 -.259
Company always provides on-road assists.
.767 -.179
All service costs are completely justified.
.158 -.726
Company always notifies when your car service is due.
.640 .277
Service duration is appropriate.
.651 -.059
Table 4.4.7
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Extraction Method: Principal Component Analysis.
Factors Extracted
S.No Factor Name Name of Dimension Factor Factor Loading
1 F1 Customer Care S4 0.703
S5 0.767
S8 0.651
2 F2 Price Predicament S1 0.669
S6 -0.726
Table 4.4.8
There are 2 factors which are extracted from the analysis and are named the following customer care and price predicament which were clubbed from analyzed statements.
Mean of 1st factor customer care is 3.45 and mean of 2nd factor price predicament is 3.015. So we can say that Customer care is the most important factor extracted from the analysis.
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Representation of different responses.
S.No Questions Responses
1.What luxury brands car
you own?
BMW Audi Mercedes JLR Others
25.61% 24.39% 21.95% 8.54% 19.51%
2.Which company provides
you the most efficient after sale service?
BMW Audi Mercedes JLR Others
13.16% 26.32% 36.84% 6.58% 17.11%
3.Which company provides you the best quality after
sale services?
BMW Audi Mercedes JLR Others
21.52% 30.38% 29.11% 7.59% 11.39%
4.Is it difficult to maintain a
luxury car.
Strongly Disagree
Disagree Neutral AgreeStrongly
Agree
4.29% 18.57% 30% 32.86% 14.29%
5.Luxury car owners only
prefer company authorized service centre
Strongly Disagree
Disagree Neutral AgreeStrongly
Agree
1.43% 14.29% 11.53% 51.43% 21.43%
6.After sales service affects
once brand choice
Strongly Disagree
Disagree Neutral AgreeStrongly
Agree
2.86% 10% 31.43% 38.57% 17.14%
7.A company has enough no
of service centers.
Strongly Disagree
Disagree Neutral AgreeStrongly
Agree
2.86% 17.14% 24.29% 44.29% 11.45%
8.Company always provides
on road assistance.
Strongly Disagree
Disagree Neutral AgreeStrongly
Agree
4.29% 18.57% 34.29% 32.286% 10%
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9.All service costs are completely justifies.
Strongly Disagree
Disagree Neutral AgreeStrongly
Agree
20% 24.29% 25.71% 24.29% 5.71%
10.Company always notifies when your car service is
due
Strongly Disagree
Disagree Neutral AgreeStrongly
Agree
4.29% 5.71% 22.86% 42.86% 24.29%
11.Is the service duration is
appropriate.
Strongly Disagree
Disagree Neutral AgreeStrongly
Agree
2.86% 7.14% 305 44.29% 15.71%
Table 4.5
There were various types of luxury car owners found during the collection of primary
data, some were very oriented towards price as they had bought their first luxury car and
were concerned about the budget part. On the other hand some were who primarily focus
on the quality and time as they had luxury cars for quite some time and money was not an
issue to them.
There are almost all types of luxury cars sold in the market buy the common brands were
Audi , BMW ,and Mercedes. All of them are known for their built quality but still
Mercedes had an edge over others when asked about the efficiency of after sales. On the
other hand Audi took over when asked about the quality of the same. As we have noticed
earlier that customers had different experiences and had different perception so fair
number of luxury car owners said they find it difficult to maintain a luxury car, but only
prefer authorized service centers. After sale was a factor known which affected the brand
choice of the customer .the research was mainly conducted in Delhi so it was found that
the company had enough no of service stations. it was surprising to know that many
customers did not know that their company provides on road assist .the cost of service is
not justified was said by major number of owners . at last when asked about the service
duration then majority of customers were satisfied with the same.
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Chapter 5: Findings
With this research one of the major findings is that most of the people in Delhi owns
BMW (25%) , Audi (24%) , Mercedes (22%) , and then JLR (8%) .
Mercedes is the company which provides most cost efficient after sale service and
Audi tops the list when it comes to best quality of after sale service.
There is a huge no of customers of luxury cars but they have an perception that it is
difficult to maintain a luxury cars, but they also have a mind set of only getting their
cars serviced at the authorized service center. Even the choice of the customer is
influenced due to same.
The maximum numbers of customers are satisfied with the number of service centers
for their car. This is the situation when we talk of Delhi NCR area.
When we talk of on road assists, then the customers are somewhat not aware about
the same . as they don’t emphasize on the same till the time they don’t have a
requirement.
The customers are fine with the amount they are paying for the services in maximum
no of cases.
The customers are happy with the notifications they receive from the company and
also satisfied with the time taken for their services.
Cost of services , location of service centers , are not the major factors which
influence the customer while getting their car serviced ,but on the other hand
authorization , security , duration of service , communication and quality of service
play a vital role in getting their car services.
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Chapter 6: Recommendation & Conclusion
Companies like JLR and BMW need to reposition themselves in customers head
as around, only 6% respondents feel that JLR provides the most cost efficient,
after sales service.
BMW and JLR need to start up building up a better quality management system
regarding after sales service as only around 6% respondents feel that JLR
provides best quality of after sales services.
Companies to change perception about the maintained of luxury cars as 46% of
respondents agree with the statement that it is difficult to maintain a luxury car
Companies need to try and build up more service centers as 20% respondents
disagrees with the statement that there’re enough service stations in there city.
Around 22 % of respondents still feel that companies doesn’t provide an efficient
on-road assist. So companies need to start focusing on the segment of on road
assistance.
As cost is one of the major reason owners consider while going for the service,
companies need to start justifying all cost related details to the customer.
As cost of service is a factor influencing the most among other factors companies
need to try and reduce or maintain a par service cost. So that a customer won’t
feel the burden of getting it over budget.
Most of the respondents feel that their expensive luxurious cars should be in a
secured facility. So, companies need to provide a safer environment.
Around 40% of respondents feel that the duration of getting their car serviced is a
key factor affecting their decisions companies need to try and provide more
effective and efficient services to their customers.
As communication, authorization and location of service centers are other major
factors affecting customer’s decision considering car service companies need to
build up a strong communication bridge towards their customers.
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Conclusion
As Delhi is becoming a hub of luxury car companies, which is provide a growing market
and after sales servicing being one the most crucial factors coming in customers head
while going for a luxury cars it makes really important for companies to cope up with the
customers demand not only the product segment but also in after sales services. &
considering today’s position to cope up with the customer’s needs of after sales service,
and mind state of customer going for the luxury cars segment and the increasing numbers
of luxury cars owners Companies are taking some enduring initiatives to match up a
secured level keeping after sales services in consideration but there are various factors
which companies can look over to increase their efficiency and effectiveness in the case
of after sales service.i.e., that there is always a chance of improvement. So, we can
conclude that luxury car market in Delhi is ready in the perspective of year 2020.
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References
.Armistead,c and Clark , G (1992). Customer service and support :implementing
effective strategies FT Books London.
Gallagher T. Mitchke M.D and Rogers,M.C (2005).Profiting from spare parts.