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UNIVERSITY OF STOCKHOLM Department of Business Administration Minor Field Study, Final Thesis, 10p Tutor: Birgitta Wadell Date: April, 1998 SERVICE QUALITY IN A MALAYSIAN RETAIL CHANNEL SYSTEM A CASE STUDY OF ELECTROLUX
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UNIVERSITY OF STOCKHOLMDepartment of Business AdministrationMinor Field Study,Final Thesis, 10pTutor: Birgitta WadellDate: April, 1998

SERVICE QUALITY IN A

MALAYSIAN RETAIL CHANNEL SYSTEM

A CASE STUDY OF ELECTROLUX

Authors:Patrik AntoniRichard Nordin

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The authors would like to thank Electrolux in Singapore and Malaysia for their outstanding support. Without their co-operation it would not have been possible to carry out this paper. We would also like to thank SIDA for giving a scholarship, which together with funding from Electrolux, made the project financially possible.

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1. Summary

This study was done in Kuala Lumpur, Malaysia, during May and June 1997. The area studied is the interface between Electrolux and its local Malaysian dealers. The objectives of the study were to find; (1) what a manufacturing company could gain from delivering superior service quality, (2) what the dealers saw as superior service quality and (3) the dealers perception of the service quality delivered by Electrolux.

Since the nature of this study is explorative, we choose a qualitative method and had a second order perspective. We sought to find what the interviewed persons thought of the studied phenomena. The study was conducted in two phases; (I) interviews with Electrolux’ management in Singapore and Malaysia, observation of and interviews with two of Electrolux’ sales representatives and a pilot interview with a dealer, and (II) six interviews with Electrolux’ dealers and two interviews with managerial staff at Electrolux. Before leaving Malaysia we had a presentation of our preliminary findings for the management of Electrolux in Malaysia and after the presentation we had a discussion about the findings and what the causes of the results could be.

During phase-one we identified six dimensions of the interaction between Electrolux and the dealers; the sales representative, the order and payment system, the promotions, the delivery, the technical service and the education. These six dimensions represent, as we see it, the entire interaction between Electrolux and the dealers. Each of these interactions were further examined in phase-two and later compared with findings from the literature.

We found that a manufacturing company can increase the display space and also affect how actively the dealers push a product by delivering superior service quality. The display space and how actively a dealer pushes a product were seen by both Electrolux management and the dealers as important factors affecting sales. We found some new service quality attributes not found by the reference literature, here called technical service and education. We also identified several gaps in the dealers expectations and perception of the service delivered by Electrolux. Mostly the gaps stemmed from internal communication problems in the organisation of Electrolux. Often the management was aware of the dealers expectations but either failed to communicate this to the service deliverers or was not aware of the actual service delivered.

To be able to conduct this study we received a Minor Field Study scholarship from SIDA and funding from Electrolux ASEAN.

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2. Table of content

1. SUMMARY

2. TABLE OF CONTENT

3. TABLE OF FIGURES

4. TABLE OF TABLES

5. INTRODUCTION

5.1. BACKGROUND

5.2. PROBLEM AREA

5.3. OBJECTIVES

5.4. LIMITATIONS

5.5. ELECTROLUX IN MALAYSIA

6. METHODOLOGY

6.1. INTRODUCTION

6.2. METHOD

6.2.1. POSITIVISM VERSUS HERMENEUTICS AND PHENOMENOLOGY

6.2.2. QUALITATIVE VERSUS QUANTITATIVE METHOD

6.3. METHOD OF THIS STUDY

6.3.1. PERSPECTIVE AND METHOD

6.3.2. PRODUCTION OF THE DATA

6.3.3. DISCUSSION OF RESULTS

7. THEORETICAL FRAMEWORK

7.1. INTRODUCTION

7.2. DEFINITIONS AND MODELS

7.2.1. PRODUCT QUALITY

7.2.2. SERVICE

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7.2.3. SERVICE QUALITY

8. EMPIRICAL MATERIAL

8.1. INTRODUCTION TO THE EMPIRICAL MATERIAL

8.2. ROLE OF THE SALES REPRESENTATIVE

8.2.1. THE DEALERS’ PERCEPTION OF THE ROLE OF THE SALES REPRESENTATIVE

8.2.2. ELECTROLUX’ PERCEPTION OF THE ROLE OF THE SALES REPRESENTATIVES

8.3. ORDER AND PAYMENT SYSTEM

8.3.1. THE DEALERS’ PERCEPTION OF THE ORDER AND PAYMENT

8.3.2. ELECTROLUX’ PERCEPTION OF THE ORDER AND PAYMENT SYSTEM

8.4. PROMOTIONS

8.4.1. THE DEALERS’ PERCEPTIONS ON THE PROMOTIONS

8.4.2. ELECTROLUX’ PERCEPTION OF THE PROMOTIONS

8.5. DELIVERY

8.5.1. THE DEALERS’ PERCEPTION OF THE DELIVERY

8.5.2. ELECTROLUX’ AND TIONG NAM’S PERCEPTION OF THE DELIVERY

8.6. TECHNICAL SERVICE

8.6.1. THE DEALERS’ PERCEPTION OF THE TECHNICAL SERVICE

8.6.2. ELECTROLUX’ PERCEPTION OF THE TECHNICAL SERVICE

8.7. EDUCATION

8.7.1. THE DEALERS’ PERCEPTION OF THE EDUCATION

8.7.2. ELECTROLUX’ PERCEPTION OF THE EDUCATION

9. DISCUSSION OF FINDINGS

9.1. INTRODUCTION TO THE DISCUSSION OF FINDINGS

9.2. WHAT CAN A SUPPLIER GAIN FROM DELIVERING GOOD SERVICE QUALITY?9.3. WHICH ATTRIBUTES AFFECT THE DEALERS’ PERCEPTION OF THE DELIVERED SERVICE?9.3.1. (1) THE ROLE OF THE SALES REPRESENTATIVE

9.3.2. (2) ORDER AND PAYMENT SYSTEM

9.3.3. (3) PROMOTIONS

9.3.4. (4) DELIVERY

9.3.5. (5) TECHNICAL SERVICE

9.3.6. (6) EDUCATION

9.4. THE DEALERS’ PERCEPTION OF THE SERVICE DELIVERED BY ELECTROLUX.9.4.1. (1) THE ROLE OF THE SALES REPRESENTATIVE.

9.4.2. (2) ORDER AND PAYMENT SYSTEM.

9.4.3. (3) PROMOTIONS

9.4.4. (4) DELIVERY.

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9.4.5. (5) TECHNICAL SERVICE.

9.4.6. (6) EDUCATION.

10. CONCLUSIONS

10.1. WHAT CAN A SUPPLIER GAIN FROM DELIVERING GOOD SERVICE QUALITY?10.2. WHICH ATTRIBUTES AFFECT THE DEALERS’ PERCEPTION OF THE DELIVERED SERVICE ?10.3. THE DEALERS’ PERCEPTION OF THE SERVICE DELIVERED BY ELECTROLUX.

11. APPENDIX 1

11.1. INTERVIEW GUIDE

12. APPENDIX 2

12.1. PRESENTATION OF THE DEALERS

13. REFERENCES

13.1. LITERATURE

13.2. INTERVIEWEES

3. Table of figures

FIGURE 7-1, THE GAPS MODEL, (ZEITHAML, PARASURAMAN, BERRY, 1990).

FIGURE 7-2, THE BUSINESS-TO-BUSINESS GAP MODEL (KONG AND MAYO, 1993).

FIGURE 8-1, THE SIX DIMENSIONS OF SERVICE INTERACTION (ANTONI AND NORDIN, 1997).

FIGURE 8-2, IMPACT OF RELATIONS WHEN INTRODUCING A PRODUCT ON A NEW MARKET

(STEFAN SCHLYTER, 1997)

FIGURE 9-1, MODEL OF FACTORS AFFECTING SALES (ANTONI AND NORDIN, 1997)

FIGURE 9-2, THE SIX DIMENSIONAL GAPS MODEL (ANTONI AND NORDIN1997)

4. Table of tables TABLE 6-1, THE RESEARCHER'S SCIENTIFIC PERSPECTIVE (ANTONI, NORDIN, 1997).

TABLE 7-2, 13 SERVICE QUALITY ATTRIBUTES (MANGOLD AND FAULDS, 1993 P9).

TABLE 8-1, DESCRIPTION OF THE SIX SERVICE DIMENSIONS (ANTONI AND NORDIN, 1997).

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5. Introduction

5.1. Background

”Being a premium brand, means giving premium service !”

This statement was made during one of our interviews with Mr Soo, the general manager of Electrolux Household Appliances in Malaysia. What does he mean by service, and why is it so important? In this study of the relationship between a manufacturer, Electrolux, and its dealers in Kuala Lumpur, we will try to answer these and other questions related to service delivery in a retail channel system.

At present date many European companies such as SAAB, Nokia and Electrolux, operating on the Asian consumer markets are manufacturers. They are manufacturers in the sense that they are selling products, not services, to the end user. The companies normally operate in a channel with suppliers and retailers as their closest business partners. In a channel, the relation is long term and has a repetitive nature. Successful business-to-business relationships are based on regular constructive and innovative interaction. These close relationships become sources of mutual power and contribute to a competitive advantage for the channel members. (Kong and Mayo,1993). The product is only one part of the relation, the other part is service, for example delivery, technical service and promotional material which the manufacturer supports the dealer with.

The extensive international work on standardisation, which helps to create better quality, greater productivity and lower prices, also results in products becoming more and more similar. As a result buyers are starting to take quality for granted. To gain competitive advantage over its competitors the industry has to differentiate its offering. Services are a tool in this differentiation and the quality of services will improve the manufacturers chances of gaining access to a market. (Kong and Mayo,1993). Glynn Mangold and David Faulds find that ”…distributors who provide good service are rewarded with more shelf and/or display space” (Mangold and Faulds, 1993, p 6). In the same article the authors argue that ”superior service quality may enhance channel co-operation, reduce channel conflict and increase sales levels and profitability”. (Mangold and Faulds, 1993, p 4).

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In the service-industry the quality of relations between service producer and end user has been thoroughly examined by researchers such as Grönroos (1990), Gummesson (1987, 1993) and Zeithaml et al (1990), researchers who today are closely connected to the concept of service quality and service marketing. Numerous models, for example Grönroos ”Total Perceived Quality Model” (Grönroos, 1990), have been developed, describing what service the consumer expects and how the consumer perceives the quality of services. But so far the issues relating to service quality in retail channel systems have been largely overlooked. Only a few articles were found when we searched the University of Stockholm’s library.

In an article, Mangold and Faulds (1993) suggested that future research could include a generalisation of their findings of what American dealers perceive as service attributes and also an extension to utilise Zeithaml et al’s tool for comparing service quality expectations, the gaps model (Zeithaml et al, 1990). This paper will be in line with their suggestions and deals with dealer satisfaction on the Malaysian white-goods market.

5.2. Problem area

Companies working on the business-to-business market have relationships which are characterised by closer and deeper interactions than companies working on the consumer market. The interactions, although revolving around a product, can all be classified as services. To gain a competitive advantage over its competitors the supplier can use the quality of the services as a tool.

In their study ”Service Quality in a Retail Channel System” Mangold and Faulds (1993) find that there is a discrepancy between what the dealer perceive as important service quality attributes, and what the suppliers perceive as important service quality attributes for the dealers. They also find a difference in what service quality the supplier perceives is being delivered and what the dealer perceives as being delivered. If a company wants to deliver superior service quality it has to know the dealers’ expectations and then use this knowledge as a reference in the development of its service offer. To be successful in a channel relation the supplier has to understand the importance of the dealer. Once the supplier accepts the need to monitor dealer satisfaction, a process of identifying the dealers expectations and perceptions of service quality can start.

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To be able to improve the quality of services a supplier has two dominating tasks to accomplish:

(1) Find and interpret the dealers perception of service quality. (2) Let the dealers preferences guide the design of the relation between the supplier and the dealers.

This study is concentrated on the first problem, which was to find and interpret the dealers perception of service quality.

5.3. Objectives

The main objective of this study was to focus on service quality issues as they relate to retail channel systems. Specifically we sought to:

1. find what a Electrolux can gain from delivering good service quality,2. find the attributes that affect the dealers’ perception of the delivered service, and3. find out how the dealers perceive the service delivered by Electrolux.

These objectives are in line with the suggestions of future research made by Mangold and Faulds in their study ”Service Quality in a retail channel system” (1993). We hope that Electrolux, but also other companies working in similar dealer interfaces, can gain from the results of this study.

5.4. Limitations

The study is, due to the restrictions of time, limited to only one part of the ASEAN market, the Kuala Lumpur market in Malaysia. The reason for choosing an ASEAN market is the regions economic boom which has opened up new markets for multinational companies. Malaysia was chosen due to the wishes of Electrolux.

The problem area is limited to the quality of services. The quality of the physical product is not studied. This limitation implies that the development of quality in the production of goods, which many times are linked or related to the quality of services, is described briefly and only with the purpose of providing the reader with an understanding of differences and similarities between the two areas.

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To be able to improve the delivered service quality, it may be needed to further educate the service-personnel. In this paper we have not studied which individual competence is needed to improve the service quality, and therefore this study is not contributing with any theories or recommendations on methods to improve competence.

5.5. Electrolux in Malaysia

Electrolux was established in Malaysia 1974 under the name Electrolux Homesales, as a direct selling company. Homesales worked through direct selling (door to door sales) and the brand Electrolux was introduced as a top quality brand, with a very high price and excellent service. In 1988 Electrolux started to prepare to enter the retail market. A problem Electrolux faced was the big price difference between the highly priced direct sales and the retail market. To overcome this price difference the concept of Homecenters was established. A Homecenter is a shop selling only Electrolux goods or a part of a department store only selling Electrolux goods. The Homecenters were started to give Electrolux ”a linkage to the mass market” (Mr Soo, general manager of Electrolux Household Appliances in Malaysia) the prices were lowered through the Homecenters and later again when entering the retail market. Through the Homecenters Electrolux learnt about the market and when the introduction on the retail market was made 1995 the products were already adapted to the Asian market (Stefan Schlyter, 1997, general manager of Electrolux Household Appliances, ASEAN).

At the same time as the launch on the retail market was made, direct sales was separated from Electrolux and a new company called Lux was established for the direct sales. The Homecenters are still in business and the idea is that they shall serve as a role model for the dealers and also keep up the image of Electrolux being a premium brand.

Electrolux has four different types of dealers; the family owned single outlets, family owned multiple outlet stores, departments stores and co-operatives. 80 % of the sales is generated in the family owned multiple outlets, but Mr Soo, the general manager of Electrolux Household Appliances Malaysia, expects the sales to move to department stores and hyper markets.

Electrolux uses a third party distributor, Tiong Nam, since they according to Mr Jeffrey Chang (general manager of Electrolux Homecenters, Malaysia) wants to concentrate on the core business. Tiong Nam handles all deliveries and is a large publicly listed transportation company.

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6. Methodology

6.1. Introduction

A method is a tool a researcher uses when doing a research. The choice of method is therefore depending on what kind of research that is being made. In this section we describe different types of methodology and explains why we have chosen the methodology used in this paper.

The information used in this study was gathered at:1. The library of the University of Stockholm (ABI-information system and books)2. The Internet3. Interviews with managers and staff at Electrolux in Singapore and Malaysia, May-June

1997.4. Interviews with dealers and third party contractors in Kuala Lumpur, May-June 1997.5. Market surveys done by Electrolux in ASEAN.

The study involved the following steps:

1. Theoretical studies of a) relationship marketing concepts, service marketing concepts and quality concepts, b) regional aspects such as culture, politics, business climate, rules and regulations.

c) Electrolux AB2. Data gathering through observation and interviews3. Construction and tests of interview guide. 4. Personal interviews - structured and unstructured5. Discussion about the gathered material.

6.2. Method

To be able to conduct research the researcher has to have a scientific perspective. According to Myrdal (1969) it is impossible for a social researcher to be objective as all research builds upon some kind of evaluation. To give the reader a possibility to evaluate the study’s trustworthiness we will in this part try to clarify for the reader which scientific perspective we have used in this study.

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A researchers scientific perspective is based upon the point of view he has of how the world is constituted, ontology, which type of knowledge he is looking for, epistemology, how the knowledge of reality can be found, methodology and the way the human being is working, the human nature. Burell and Morgan (1980) give these four conceptions an objective and a subjective dimension. One dimension does not exclude the other, they should be seen as endpoints on a scale where a researcher can choose to work more or less objectively or subjectively. Subjective Dimension Objective Dimension

Nominalism Ontology RealismAnti-positivism Epistemology PositivismVoluntarism Human Nature DeterminismIdiographic Methodology Nomothetic

Table 6-1, The Researcher's Scientific Perspective (Antoni, Nordin, 1997).

The endpoints of ontology are realism and nominalism. Realism stands for a perception that there is a reality which is the same for everyone. The opposite, nominalism, says that reality is a social construction, different for each individual.

Epistemology spans from positivism to anti-positivism (hermaneutics, authors remark), where positivism stands for the nature-scientific ideal and anti-positivism considers knowledge individual and personal and which can‘t be shared by others.

One of the extreme views of human nature is determinism, where man is considered to have no will of his own and being controlled by his surroundings. The other extreme is voluntarism which considers the human being as an independently thinking and acting creature.

The extremes of methodology lead to either nomothetic (quantitative, authors remark) or idiographic (qualitative, authors remark) knowledge. With a nomothetic view of knowledge the researcher strives to generalise and formulate common laws. The phenomena under study are to be described in an objective and neutral way and the study is repeatable. The idiographicly determined researcher on the other hand tries to describe an experienced, subjective reality.

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6.2.1. Positivism versus hermeneutics and phenomenology

Burell and Morgans subjective/objective dimensions show the span within social science (Burell and Morgans, 1980). Two mainstreams can be seen. (1) Positivism, which has its roots in nature-science and is based on that theories are tested through hypothesis which verifies the theories. This method is called deduction and mainly quantitative data is used. Researchers within social science have looked for an alternative way to study peoples interpretations and perceptions of studied phenomena. For this purpose qualitative data are mainly used. This qualitative approach can be represented by (2) hermeneutics and phenomenology which both work inductively. Inductive method means that the research studies situations in reality and from observations creates universally applicable concepts to describe the studied phenomena.

6.2.2. Qualitative versus quantitative method

Adherents of quantitative studies often criticise qualitative ones on the grounds that their methods have low reliability and do not contribute or contribute very little to the cumulative body of knowledge. In turn, qualitative researchers criticise quantitative researcher for not understanding the ”shades of meaning” behind statistical formulations.

In short, adherents of quantitative method, quantitative researchers, translate their observations into numbers. They assign numerical values to observation by counting and measuring. Adherents of qualitative method, qualitative researchers, rarely assign values to their observations. Instead they prefer to record their data in the language of their subjects.

Many researchers believe that qualitative and quantitative research are each others opposites, for example Eneroth (1984) and Rubenowitz (1980). Others do not see the methods as rivals but rather as complements of each other and are useful in different situations and purposes. Examples of researcher which are of this opinion are Glaser and Strauss (1980) and Kalleberg (1985).

Our view follows Glaser and Strauss and we think that one should not consider qualitative and quantitative methods as their opposites, either one has its place in research. Many studies can benefit from using the methods as complements of each other. For example, a study could begin with a qualitative study to find important issues and questions to later on quantify in a quantitative part of the study.

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6.3. Method of this study

6.3.1. Perspective and method

Due to the character of the problem and the objectives of this explorative study, we have chosen to use a qualitative (idiographic) method. We went out in the ”real world” and studied a phenomenon, this is a hermeneutic approach and our focus was on describing an experienced, subjective reality. We are using a second-order perspective, it is not about what is true or false, wrong or right; it is about how someone perceives something.

6.3.2. Production of the data

Secondary data, such as methods, theories and cultural knowledge was gathered through studies of articles and books found in the University of Stockholm’s library and via the Internet and was collected before we travelled to Malaysia.

The production of primary data can be divided into two phases. In phase-one we looked for information to produce an interview guide, in phase-two most of the data was gathered.

During phase-one we made unstructured in-depth interviews with managerial staff at Electrolux in Singapore, a group interview with the management in Malaysia, we observed and interviewed two sales representatives and we made an interview with Electrolux’ third party distributor Tiong Nam. Out of the gathered data we divided the interaction between Electrolux and the dealers into six dimensions and made an interview guide which we tested on a dealer (dealer No 1, see appendix 2). The interview guide was then revised before we started phase-two (see appendix 1).

In phase-two we made in-depth interviews with six of Electrolux’ 70 dealers in Kuala Lumpur, and managerial staff at Electrolux Malaysia, using the interview guide produced in phase-one. When we had conducted the interviews we presented the preliminary findings for Electrolux’ management. After the presentation we received feedback from them.

All interviews were done face to face with the interview guide as framework. The average interview lasted 1,5 hours. All but one were recorded on tape after approval of the interviewee. The interviews were later typed. All interviews were then “cut and pasted” into one document, dimension by dimension, for better view of a certain subject.

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Since our capability of doing an interview in Bahasa Malayo or in Chinese (the local languages) is limited, the dealers were chosen because of their ability to speak English. These dealers may therefore have a different background and perception than other dealers only speaking Chinese or Bahasa Malayo. We have during the interviews tried to understand what the dealers feel and how they perceive the situation. There are many factors that can, and probably have, affected the way the dealers have reacted and responded to our questions. Some examples of these factors are; (a) some dealers may have thought that we were sent by Electrolux. This may have affected the way they answered our questions since they probably would like to keep a good relation to Electrolux, (b) a Westerner interviewing a local and the Asians’ way of not wanting to cause any bad feelings. This may have affected the dealers to try and find answers they think we wanted to hear rather than what they actually thought. During the interviews we tried to take this into account, but still we never assumed that something a dealer said was false. However, Mr Schlyter (general manager Electrolux Household Appliances ASEAN) said that his experience of Malaysian dealers is that they are frank and not afraid of saying their opinion even if they know that the person they are speaking to is coming from Electrolux.

6.3.3. Discussion of results

During the discussion of results we looked for themes that hold throughout the material. We used the theoretical framework as reference when we analysed the data. In the part of the discussion where we look for service quality attributes, we compare our findings with results found on the American market by other researchers. In another part of the discussion we try to identify gaps in the expected and delivered service. To be able to do this we have adapted the gaps models presented in the theoretical framework.

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7. Theoretical framework

7.1. Introduction

The following part describes the theories which the study is based on and which the discussions will be built around.

7.2. Definitions and models

A central concept in this study is quality. Garvin describes quality as an unusually slippery concept that is easy to visualise but exasperatingly difficult to define (Garvin 1988). Gummesson has a similar opinion meaning that quality turns out to be an extremely difficult concept to define in a few words. It is rather a matter of creating a deeper insight into the many dimensions that form a fuzzy entity that is referred to as quality (Gummesson 1993).

7.2.1. Product quality

Efforts in defining and measuring quality have come largely from the goods sector, where for example Crosby (1979) defines it as conformance to requirements. Garvin (1988) has extracted 8 dimensions of product quality from an extensive case study and the literature. Garvin’s 8 quality dimensions commented by Gummesson (1993):

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1. Performance. Refers to the primary features of the product, such as picture and sound reproduction in video equipment.

2. Features. Refers to the secondary features of the product, such as powered windows in an automobile.

3. Reliability. How well the product performs its functions and how frequently faults occur.

4. Conformance. Does the automobile accelerate from 0-100 in 10,6 seconds as claimed? How great is the spread around the standard value?

5. Durability. How long will the product last?6. Serviceability. Refers to how easily the product can be repaired and maintained, but

also to the chances of getting a repair done quickly and in a pleasant way.7. Aesthetics. How fashionable is the sweater, how ”hot” is the design of the motorcycle.

in other words subjective, sensual assessments.8. Perceived quality. The personal total perception of the product.

In 1987 Gummesson presented a model based on a thorough analysis of Ericsson. The model primarily adopts a product perspective although services are given extensive scope in the study that the model builds upon. The purpose of the model was to provide a better overview of the factors that constitute quality. In the model four qualities, 4 Q’s, are identified as the sources of perceived quality and satisfaction; design quality, production quality, delivery quality and relational quality. In his study of Ericsson, Gummesson stresses that all the company’s employees, more or less, contributes to these 4 Q’s and that good results at all levels lead to good external quality. He uses the concept of the internal customer, which indicates the importance of quality within the company.

Before examining the definition of service quality, a closer look at the concept and definition of service follows in part 7.2.2.

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7.2.2. Service

In the literature there are many definitions of service. Below follows some examples of definitions which hardly are comprehensive enough to be considered general, but which can provide some guidance

The International Standard Organisation (ISO) has defined service as ”Supplier activities at the interface with a customer and the results of all supplier activities to meet customer needs” (Gummesson, 1993). Three notes are appended to this definition:1. The supplier or the customer may be represented at the interface by personnel or by

equipment.2. Customer activities at the interface with the supplier can be essential to the delivery of

the service.3. The delivery or use of tangible goods may form a part of the service.

Gummesson summarises the ISO definition and the notes as follows: service is produced in the interaction between suppliers and customers, and the customers’ activities may be important to the delivery of service and goods (Gummesson, 1993).

Zeithaml, Parasuraman and Berry surveyed the difference between services and goods as they have been described in the literature and found the following differences: (Zeithaml, Parasuraman, Berry, 1985):

1. Intangibility. Services are intangible and goods are tangible2. Heterogeneity. Services are non-standardised while goods are standardised.3. Inseparability. In services it is difficult to separate production from consumption.4. Perishability. Services are ’perishables’ since they cannot be stored.

7.2.3. Service quality

Defining quality in service is especially difficult because of the intangible nature of the service offering. Lewis and Booms (1983) used the following definition of service quality: ”Service Quality is a measure of how well the service level delivered matches customer expectations. Delivering quality service means conforming to customer expectations on a consistent basis”. In ”Relationship Marketing for Competitive Advantage”, Payne et al (1995) survey the literature and find the following themes:1 - Service quality is more difficult for the consumer to evaluate than goods quality.

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2 - Service quality perceptions result from a comparison of consumer expectations with actual service performance3 - Quality evaluations are not made solely on the outcome of a service; they also involve evaluations of the process of service delivery.

Both definitions imply that service quality involves a comparison of expectations and performance. In line with this thinking, Grönroos (1990) developed a model called ”Total Perceived Quality Model”. In this model technical quality, what the customer is actually receiving from the service, and functional quality, which involves the manner in which the service is delivered, constitute experienced quality. The experienced quality is then compared with the expected quality, formed by market communication, image, customer needs and word of mouth. The outcome is total perceived quality.

In an attempt by Zeithaml, Parasuraman and Berry (1990) to investigate the concept of service quality, in-depth interviews with executives and key consumers of organisations in several areas such as banking, credit card providers and product maintenance were conducted to gain insight in the following questions:

What do managers of service firms perceive to be key attributes of service quality ? What problems and tasks are involved in providing high quality service ? What do consumers perceive to be the key attributes of quality in services ? Do discrepancies exist between the perceptions of consumers and service marketers? Can consumer and marketer perceptions be combined in a general model that explains

service quality from the consumer’s standpoint?

The outcome of the study is the GAPS model (figure 5.1) and SERVQUAL. The GAPS model identifies the difference between expected and perceived service. SERVQUAL is a questionnaire and is their instrument for measuring customers’ perception of service quality.

The GAPS model presents one gap between the consumer and the service provider, and four gaps within the service provider’s organisation.

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Figure 7-1, The GAPS model, (Zeithaml, Parasuraman, Berry, 1990).

Zeithaml et al discuss which factors that constitute the consumers’ expectations, and find that the expectations are formed by word-of-mouth communication, personal needs, past experience and external communications from the service provider. The consumers’ perception of the delivered service is a function of: how well the service provider’s management has understood the consumers’

expectations, how well the management has designed routines for the service delivery, how these routines are followed when the service is delivered, and what service was promised to the consumers

These points are represented in the model above as Gaps one through four.

Gap 5 is where the consumer of the service compares his expectations with what is in fact delivered. Service quality, as perceived by the consumer, depends on the size and the direction of gap 5. Gap 5 depends on the nature of gap one through four which are associated with the design, marketing and delivery of services. In other words, Gap 5 could thereby be presented as the function below:

GAP 5 = f (GAP1, GAP2, GAP3, GAP4)

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Kong and Mayo further developed Zeithaml et al’s GAPS model to fit into a business-to-business context. In “Measuring Service Quality in the Business-to-business context” (Kong and Mayo, 1993), it is argued that the traditional GAPS model (Zeithaml et al, 1990) is insufficient in a business to business context, and therefore Kong and Mayo adapted and expanded the GAPS model to this environment. In the model, called “The Business-to-Business Gap Model”, the channel member’s expectations are formed by the channel member’s business strategy, performance objectives and existing relationships. Gap 5 in the Business-to-business Gap model is influenced by a more complex context than Gap 5 in the traditional model, since it is also influenced by the channel member’s customers’ expectations.

Channel communcationConsumer communication

Existing relationshipBusiness strategy

Expected service

Perceived service

Performance objectives

Expected service

Perceived service

Service delivery

Service q. specifications

Management perceptionsof customer expectations

Consumer

Channel member

Supplier

GAP 2

GAP 1

GAP 3

GAP 4

GAP 5

GAP 5

Figure 7-2, The Business-to-business Gap Model (Kong and Mayo, 1993).

In a study of service quality in a retail channel system Mangold and Faulds (1993) sought to:

1. provide insight into the determinants of service quality in retail channel system, and2. provide insight into the type of channel system rewards, if any, that are given to

distributors that produce superior service quality.

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They interviewed channel executives, both store owners and distributors/manufacturers, and the interviews led to the following list of items which the channel executives found to be essential attributes of service quality:

1. Number of times the distributor visits your store. 2. Weekend service.3. Communications of programs and promotions.4. Retrieving left-over products.5. Communicating with you when deliveries are going to be late6. Pick up and delivery at the time promised.7. Consistency of service while in store.8. How sales reps conduct themselves with customers while in store.9. How sales reps conduct themselves with you while in store.10. How sales reps conduct themselves with your employees while in store.11. A positive relationship with the sales representatives.12. Maintaining shelf stock.13. Maintaining acceptable back-room inventory.

Table 7-2, 13 Service Quality Attributes (Mangold and Faulds, 1993 p9).

When asked how the store managers rewarded the distributors who provided high levels of service quality ”28 of the 30 retailers/store owners indicated that distributors who provide good service are rewarded with more shelf and/or display space. Some of the managers indicated that shelf space decision for their stores were made at the central office. Those managers indicated that they normally reward high levels of service quality with display space such as end-of-aisle displays rather than shelf space. Five of the respondents indicated that the determining factor in allocating shelf space is product movement rather than good service. However two of these five respondents indicated that good service is rewarded with promotional opportunities” (Mangold and Faulds, 1993, p.6).

The conclusions of Mangold and Faulds investigation is that superior service quality is rewarded by the retailer with for example increased display space.

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8. Empirical material

8.1. Introduction to the empirical material

In this section the empirical material, divided into six dimensions, is presented. The material from phase-one (see 6.3.2) and phase-two is presented as a whole. The six dimensions are different interactions that we have identified during phase one of our study. The dimensions stem from Mangold and Faulds 13 attributes of quality (see table 7-1) and a group interview with the management of Electrolux, Malaysia, May 14 th, 1997. The interactions are; the role of the sales representative, the order and payment system, the promotions, the delivery, the technical service and the education, and is in our opinion representing Electrolux’ entire interaction with its dealers (see table 8-1). In appendix 2 each one of the interviewed Electrolux dealers are described briefly.

D E A L E R S

S a l e sr e p r e s e n -

t a t i v e s

O r d e r /P a y m e n t

D e l i v e r yP r o m o -t i o n s

E d u c a -t i o n

T e c h n i c a ls e r v i c e

E L E C T R O L U X

Figure 8-1, The six dimensions of service interaction (Antoni and Nordin, 1997).

In table 8-1 the six dimensions graphically described in figure 8-1 are explained.

-The sales representative dimension describes the role of the sales representative. It looks at the

importance of the relationship between the sales representative and the dealer and what kind of

information the dealers would like to get from the sales representative.

-The order and payment dimension describes the interaction between the dealer and Electrolux

upon order and payment.

-The promotion dimension describes the co-operation between the dealers and Electrolux when

doing promotional activities and what the dealers and Electrolux think about the promotional

material given to the dealers by Electrolux.

-The delivery dimension describes the interaction between Electrolux, Tiong Nam and the

dealers.

-The technical service dimension describes how the technical service (after sales service) such

as repair and service of products, is delivered.

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- The education dimensions describes how the product knowledge is transferred from Electrolux

to the dealers.

Table 8-1, Description of the six service dimensions (Antoni and Nordin, 1997).

We have looked at each dimension separately and have not taken into consideration that the answers may have been affected by synergy effects between the dimensions. For example if a dealer has a very good relation to a sales representative, the dealer may perceive the promotion as being of better quality than it actually is. The decision to not look at the synergy effects is in line with the second order perspective used in this study, outlined in the methodology (p 13).

8.2. Role of the sales representative

SalesRep-resentative SalesRep-resentative

SalesRepresentative

EducationTechnicalService

DeliveryOrder andPayments

Promotions

8.2.1. The dealers’ perception of the role of the sales representative

All the dealers thought it necessary to have a personal contact with the sales representatives, a telephone call once in a while is not good enough. They all perceive the relationship as being very important. No 3 says ”If I didn’t know the sales representative, I would not sell as much”. Many of the sales representatives had the interviewed dealers as sales accounts before they joined Electrolux. The dealer then started to work with Electrolux since he trusted the sales representative. Another example of the importance of good relations also comes from the interview with No 3 who continues ”When Stephen (the sales representative, the authors remark) switched to Electrolux 6 months ago I started to push Electrolux products harder as our relation is good and the sales representative lets me know more about the product. In fact I have doubled the amount of displayed (Electrolux) machines in the store”.

The sales representative visits the dealers two to four times a month. Of the dealers visited four times a month, all thought that four times was enough, of those visited two times some would appreciate if the sales representatives would come more often especially around festival season. The number of times the dealers want the sales representatives to visit the stores, depends on the amount of business which is done with Electrolux. No 6 says that if the sales representative comes only once a month he is either lazy or has too many dealers. If they come very often ”We feel their service is good” (No 6).

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The dealers want to have trustworthy sales representatives, who are honest, for example about telling which products that are moving. Many of the dealers feel that some of the sales representatives want to sell all models and therefore try to push slow moving models. An example of this is No 7 who says ”When we ask about which models that are moving the sales representatives say that all models sell well, they are obviously not honest” Some of the dealers seem to be hesitant to ask questions, for example No 6 who says, ”maybe some secret, maybe they do not want me to know about these things - If I am not told I am not supposed to know”. The dealers do not have any complaints about the honesty of Electrolux’ sales representatives.

The dealers would like to have the following kind of information from the sales representatives; product knowledge such as how to operate the product and performance of the products, market Information such as trends about moving products, future forecasts about market shares, pricing and promotions and company related information such as general information about Electrolux’ strategies and performance, both domestic and world-wide. No 2 says that he gets information about what products Electrolux has and if they are about to launch some new models. He would also like to get information about trends which he perceives as ”very important for my future forecasts”, what the problems are and pricing information on other dealers selling Electrolux products. No 3 wants to have more product knowledge, it has happened that a new product has arrived without any information. He also wants to have information about trends in product movements. No 5 says that he has to ask for market information he is not spontaneously given any by the sales representative. No 6 wants to have more information about the company, ”If I know more we can get more close” and ”If I know more about the company’s future plans, so I can decide if I want to do business with them in the future or not”.

8.2.2. Electrolux’ perception of the role of the sales representatives

Stefan Schlyter, General Manager of Household Appliances ASEAN, says that one of the things that Electrolux has succeeded in, on the Malaysian market, is building good relationships with the dealers. He also shows a matrix which shows the impact of relations when introducing a new product on an Asian market:

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Figure 8-2, Impact of relations when introducing a product on a new market (Schlyter, 1997)

To maintain a good relationship between the dealer and the sales representative the supplier has to provide good after sales service, otherwise the relation will break down (Mr Brandon Chin, sales manager, Retail, Electrolux Malaysia). Mr Chin also says that the customers behave differently depending on what type of store they buy their products from. In the larger chain stores the customers normally have a good idea of what they want to buy and are not so interested in the sales assistants advice. In the smaller shops ”the customers are many times regulars and listens and trusts the advice the dealer and his sales assistants give” (Mr Peter Lew Yong Keong, Marketing Executive - Retail, Electrolux, Malaysia) says Mr Lew Yong Keong and argues, ”this is why it is so important for the smaller dealer to have a good relation to the supplier - you do not want to sell a product which you do not trust to a regular customer”. Mr Chin said that the most important reason for a dealer to push a product is profit margins the second is how smoothly the co-operation with the manufacturer is. Mr Lew Yong Keong says that ”the better relation a sales representative has with a dealer the more and better space he can get in the store. Mr Lew Yong Keong and Mr Chin spends a lot of time socialising with the dealers to maintain the relation. Mr Chin shows us a display cabinet at a large chain store and says ”It took many dinners and pats on the back to get”.

”Basically I encourage my salesmen to visit the dealers at least once a week but since it is more efficient to visit the key accounts, there is not enough time to visit all the dealers that often”, says Mr Soo (general manager of Electrolux Household Appliances, Malaysia). According to Mr Lew Yong Keong, he visits his dealers twice a week.

Mr Soo says that Electrolux wants to sell the right model to the right segment, otherwise Electrolux can get a reputation of being difficult to sell. Therefore it is important that the sales representatives push the appropriate models, the saleable ones. ”This is a part of our training of the sales representatives to become conscientious sales representatives”.

Mr Lew Yong Keong and Mr Chin perceive that the management often looses contact with the market since they do not meet the dealers and the end users often enough. They also

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say that the Japanese managers more often visit their dealers and talk to the sales people. By doing this they get a good feeling for the market.

Mr Soo says that the kind of information the dealers want and in most cases get is: product knowledge, changes in price and promotions, the dealers performance in terms of sales, the competitors (other brands) movements and strategy changes, market information such as which models that are fast moving so the dealers can stock more of these machines and first hand information on what Electrolux is doing ”all this the sales representative has to be knowledgeable about”.

8.3. Order and payment system

SalesRepresentative

EducationTechnicalService

DeliveryOrder andPayments

Promotions

8.3.1. The dealers’ perception of the order and payment

The dealers order either directly through the sales person or over the phone. When ordering over phone it is normally an urgent order. They prefer ordering directly from the sales representative since they get information on new products and special offers. The payments are made by cheque the 25th every month, and five days ahead of the due date the dealer gets a statement on what products that will be invoiced.

Most of the dealers use Keep-In-View-stock (KIV, Stocks owned by the dealers stored at the suppliers warehouse for free) and like the system. The KIV-stock makes it possible for the dealers to by larger quantities and thus get a better price. No 2 says that he would like to have up-to-date information on Electrolux’ stocks, since he knows that it can take a long time for Electrolux to order if they run out of stock. The dealers are offered packages (a bundle of Electrolux products) and there are different opinions on this solution. No 2 likes the packages, since it gives him discount and says that he can change the content to fit his situation. According to the dealers all brands use the same type of order and payment system, for example No 6 says that ”Electrolux is no different to the other brands”.

8.3.2. Electrolux’ perception of the order and payment system

Jeffrey Chang, general manager of Electrolux Homecenters in Malaysia (later on referred to as Mr Jeffrey), says that orders are normally done when the sales representative visits

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the dealer store and in urgent cases over the phone. Electrolux perceives that the dealers are satisfied with the system which they say is used by all companies operating on the market.

Once the product is delivered to the dealer the dealer owns it. Electrolux does not buy back in unsold products unless there are damages done to the products by Electrolux’ staff.

8.4. Promotions

SalesRepresentative

EducationTechnicalService

DeliveryOrder andPayments

Promotions

8.4.1. The dealers’ perceptions on the promotions

The dealers think that it is important to get information on when and how the campaigns will be run on television or newspapers. All perceive TV-commercials as a good or a very good way of teaching the customers about a brand and its products. They are all pleased with the way Electrolux informs them on how and when a campaign will be on. The dealers think that Electrolux has good TV commercials which helps them to sell Electrolux’ products. No 2 says ”commercials on television are important and that the customers often mentions them when they come to the store”.

The dealers like getting new and up dated point-of-purchase (PoP) materials such as stickers and flags. No 6 says on the question if he would like to have more PoP material ”Of course, it is very good for the customer - It is very attractive”. No 2 says that he got some flags two years ago and he is still displaying them, ”It is the only one we have got”. Premiums are not perceived as important, No 5 says ” the customers like to get a gift, but the brand and the product is more important”, No 4 thinks that the premium gifts are more disturbing than efficient.

The dealers like to have nice brochures to show for the customers, they also use the brochures to educate themselves on the function and selling points of the products. Some of the dealers do not like to give a way brochures to the customers since they perceive that it may move the business to other stores. Others would prefer to have more brochures to give to the customers, No 3 argues that ”sometimes people like to take home (catalogues) and study”. The catalogues are perceived as up to date, but sometimes a new product arrives without any information. No 3 notices that Sony always times new catalogues to the launch of new products, something Electrolux does not do.

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All the dealers participate in different campaigns, No 2 looks at the sales target of the campaign, and if the target is not too high he tries to reach it. No 1 always tries to reach the targets of the campaigns and sees them as an extra incentive.

8.4.2. Electrolux’ perception of the promotions

According to the general managers of Homecenters and Household Appliances in Malaysia, Mr Jeffrey and Mr Soo, communication of promotions is ”a well functioning area”. The programs are given to the dealers, who then can use the promotions to inform the customer that ”this is a famous brand”.

Mr Chin and Mr Lew Yong Keong think that they do not have enough promotional material to use in the field. Mr Chin says ”We are like soldiers going to war without bullets”. The reason for this, they think, is that the marketing department at Electrolux is to small and that there is no time for the marketing manager or the executives to visit the market. Linda Chan, (marketing manager Electrolux Malaysia, later on referred to as Miss Linda), says that when she produces PoP material such as stickers and flags , the dealers only use it for a few weeks then they replace it with a competitor’s. ”PoP material helps the sales”, says Miss Linda, ”however we have realised by now that a lot of the sales in the shop is a result of the dealers pushing”.

Mr Lew Yong Keong also says that there is not enough co-ordination between launches of products and promotional material or with launches of big campaigns and PoP material. Sometimes he and the other sales representatives manually has to change the information in the catalogues. Miss Linda says ”Ideally we would like to time the catalogues with a new range...but since launches occurs all over the year...when a new model comes it takes some time for us to change the catalogue”. Mr Soo says that before the launch of a new product Electrolux always prepare a new brochure otherwise it would be difficult to communicate with the dealers. His opinion is that they are timing the PoP material with the campaigns. Electrolux gives the dealers as many brochures as they want and he says that the dealers are happy to get new PoP material. He continues by saying that Electrolux’ stickers (some selling points are written on the stickers) help the sales assistants with the sales points.

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8.5. Delivery

SalesRepresentative

EducationTechnicalService

DeliveryOrder andPayments

Promotions

8.5.1. The dealers’ perception of the delivery

The dealers do not know if there are any specific rules for the time of delivery, at the moment the products normally arrive within one or two days. The dealers are satisfied with this since they normally have products in stock when they order. No 7 says he never knows when a delivery is coming, ”Maybe tomorrow, but it does not matter because I normally still has some stocks when I order”. No 3 says ”I’m happy as long as it arrives within one or two days”.

The dealers perceive that if they ask the sales representative to mark an order urgent, the delivery will come faster. No 6 says ”If I call in the morning I will get it in the afternoon”. Some of the dealers, for example No 3 and No 7, will sometimes pick up the products themselves at Tiong Nam if the order is urgent.

To get damaged goods once in a while is seen by the dealers as normal, and when it happens with Electrolux products, the handling of the problems works well. If a product is damaged already on delivery it will be taken back by Electrolux. If the damage is done by the dealers themselves, they will sell the product at a discounted price.

The dealers perceive that it is very important that the boxes are unopened and not damaged. If the box is damaged the customer may not want to buy the product, since it could have been a showroom product. Damaged boxes are rarely delivered by Electrolux. No 6 tell us that he does not check the delivered products upon arrival since he trusts Electrolux, ”it would be a waste of time to check all the products”. If he experiences a problem he calls his sales representative who helps him to change the product.

The dealers are pleased with the service Tiong Nam provides. No 5 says ”The delivery system is not bad, in fact very fast”. No 4 says ”really not bad, the labour situation in Malaysia is bad but since Tiong Nam is a publicly listed company they have a driver and a helper in each car and they provide better service than many others”.

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8.5.2. Electrolux’ and Tiong Nam’s perception of the delivery

Electrolux uses a third party distributor, Tiong Nam, which handles all deliveries and is a large publicly listed transportation company.

Stefan Schlyter's (general manager of Electrolux Household Appliances ASEAN) perception of the delivery is that it works very well. Mr Jeffrey (general manager of Electrolux Homecenters in Malaysia) describes how Electrolux decided to out-source the delivery and concentrate on the core business. He says that this solution now has become a problem due to insufficient quality from the distributor. The problems include delays in delivery and damaged products. To minimise the impact of human error Electrolux has for example invested in tailgate lorries for Tiong Nam.

Mr Teo Lye Hock, (warehouse/distribution manager, Tiong Nam Trading & Transportat Tiong Nam) says that the contract between Tiong Nam and Electrolux stipulates that the deliveries to dealers within Kuala Lumpur./Selang area are to be made within 48 hours and within 72 hours for the rest of the country. He also says that when a sales representative marks an order urgent, Tiong Nam cannot take this marking into consideration since it would disrupt their matrix. Mr Soo says Electrolux has informed the retailers in the Kuala Lumpur. area Valley that if they order in the morning the products shall come the same day, and if they order in the evening it shall arrive the following morning. This is communicated to the dealers and he thinks that they are aware of this. For the rest of the country a delivery should come within 72 hours. Mr Soo says that he thinks it is important for the dealers that the products arrive on time. Mr Lew Yong Keong and Mr Chin says that delivery is to be made within 24 hours in the Kuala Lumpur. area and within 48 hours in the rest of the country. Mr Chin says that by marking an order urgent the order can be delivered faster, but he perceives that Tiong Nam is a bit disappointing at times. He says that he has been at two meetings with Tiong Nam and discussed the matter of urgent orders.

If a dealer needs a product urgently and wants to jump queue, Mr Soo has to authorise the dealer to go to Tiong Nam on their own and pick up the wanted product.

If a product is damaged by Electrolux or Tiong Nam, or if there is any doubt, Electrolux will take the damaged product back. ”It is important that Electrolux acts fast on these matters, since we do not want the dealers to get the impression Electrolux is slow in our action. Being a premium brand means giving premium service”.

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8.6. Technical Service

SalesRepresentative

EducationTechnicalService

DeliveryOrder andPayments

Promotions

8.6.1. The dealers’ perception of the technical service

The dealers perceive the after sales service such as technical service as very important. The customers expect good service, and ”the customers always go back to the shop for help, service and complaints” (No 6).The dealers have experienced very few, if any, problems with Electrolux’ products and the general opinion is that Electrolux’ quality is good. Two of the dealers had not had any complaints at all, and therefore has no experience of Electrolux’ technical service.

Most of the dealers have their own technicians, although some only for brown goods (i e hi-fi equipment, television sets and video). During the warranty period they use Electrolux’ service, but after the warranty they (dealers with own technicians) would like to take care of the service themselves. They perceive that they can offer faster and cheaper service than Electrolux. No 6 uses an external contractor when his own technicians are not able to attend to the problem, because Electrolux’ service is too expensive.

Three of the dealers, who had experiences of the technical service, had complaints on the response time. No 2 says ”National and Panasonic has the best service. They respond very fast, they come the day after the complaint. They make an appointment with the customer and is always punctual - No complaints !”. Electrolux’ response time is two to three days. No 2 complaints on the behaviour and the punctuality of the service men ”the service men are most of the time late, one hour or so....they are not friendly. They just come and take a look and the they leave without saying a word”.

The dealers that have their own technicians would like to have technical training in Electrolux’ products. No 1 says ”Let our service men know more about Electrolux’ machines....in the future we do not have to rely on the supplier we can do our own service...we must have our own power !”. No 6 says that technical training would be good since ”it would save time and manpower both for me and Electrolux”

They all perceive that weekend service would be a good service and a good selling point, since in most Malay families both husband and wife work. The dealers realise that it

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would be difficult for Electrolux to have this service, since it is very difficult to recruit skilled technicians on the tight Malaysian labour market. No other supplier has this service.

8.6.2. Electrolux’ perception of the technical service

Mr Chin and Mr Lew Yong Keong are of the opinion that after sales service is the second most important factor, after profit, when a dealer decides which brands to push. Bad service can break down the relation a sales representative has built with a dealer. Mr Chin thinks that Electrolux has ”a lot to learn considering technical service, sometimes I have to chase the service men before they do anything!”. ”Technical service is a problem” Mr Jeffrey argues ”There is room for improvement....the problem is a teething problem”. Mr Soo’s opinion is that the technical service outside the Kuala Lumpur area is at a good level, but within the Kuala Lumpur area ”it is below par”. This is due to lack of manpower (the labour market is very tight in Malaysia, especially for technicians) and that Electrolux still is young in the market and needs to further raise the in-house competence.

At the moment Electrolux does not offer any training for the dealers technicians, Electrolux has to train their own people first. ”It is within our program that as soon as we have settled our own technical level we will train the dealers’ [technicians] - because we believe at a later moment when the warranty period is over the service will be done by the dealers’ technicians” (Mr Soo).

Mr Soo says that being able to offer weekend service would be one-up in the market for Electrolux, but due to labour costs Electrolux will not provide this service.

8.7. Education Sales

RepresentativeEducationTechnical

ServiceDeliveryOrder and

PaymentsPromotions

8.7.1. The dealers’ perception of product education

”A healthy company should have continuous training. If we learn today - we gain tomorrow” (Dealer No 1),

Product knowledge is perceived by the dealers as being very important since they all think it is easier to sell a product which they know well and it is embarrassing if the customers know more than themselves. No 6 argues ”If one knows the features of a product it is easier to convince the consumer why to buy an expensive brand”. No 1 says

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that ”he does not want to sell products he does not know well” and continues ”I like to educate my staff - if they do not know everything and a customer walks in... they can not share the information - the customer walks out and say: No quality shop!”.

The dealers, for example No 2, would like to have more in-store training ” I would like the sales representative to explain more about the products, since sometimes I really do not understand some of them”. No 6 says ”it would be good if the sales representative knew about the selling points of the products and educate the sales assistants, now they know more about price and quantity”.

Only two of the seven dealers we interviewed had participated in any centrally organised training. These two dealers were very satisfied with the outcome of the course they had attended. In addition to the product knowledge acquired, No 6 said ”the relation improves, they treat us important - we treat them important ” he continues by saying ”the training at Electrolux’ head office was very good, my sales of Electrolux has increased since the training”. He also says that he would appreciate if the sales representative would follow up with in-store education. All the dealers would send their sales assistant to the courses arranged by Electrolux. No 1 says ”it is better for the sales assistants to learn from the supplier than from the boss, they will then be a better salesman for that brand”.

All of the dealers had been invited to Electrolux’ launch parties. Those who had had time to attend thought that they had got good information about new products, selling points and also information about Electrolux as a company. No 1 always attends or sends some of his management staff to the conventions. Not all brand has launch parties, according to No 1 only the Japanese white goods suppliers is doing it

The catalogues are seen by most dealers as a source of information on selling points and technical data. No 5 said that the catalogues is his most important source of information. On the other hand No 2 said that information from catalogues ”is not so important”, he perceives that training by the sales representative is better. The dealers were also interested in getting a leaflet with selling points, consumer benefits and possible problems on each of the products. The leaflet would only be for the dealer, not for giving to the customer.

8.7.2. Electrolux’ perception of product education

Jeffrey Chang says that Electrolux perceives product training and product knowledge to be important for sales. ”This is the moment of truth for Electrolux (the sales assistant meeting the customer) and the only way Electrolux can affect that moment is by educating

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the sales assistants” . He also says ”If we do not transmit the information to the moment of truth we do not interact with the customer”. Product knowledge is of mutual benefit for Electrolux and the dealer since good knowledge lead to better sales. Mr Lim, the National Service Manager says that product knowledge also reduces the cost for the service department since there will be less user faults if the customers are properly instructed by the sales assistants.

At their weekly visits the sales representatives conduct ad hoc training in the stores. ”It is logical for the sales representative to train the sales assistants”, Mr Soo argues and continues ”the sales assistants indirectly by selling Electrolux contributes to the sales representatives’ commission. Thus the sales representatives are eager to train the sales assistants”. Mr Lew Yong Keong, who visits his dealers about two times a week, has product training for the sales assistants once in a while ”when the situation is right”, but definitely when someone is new or when a new model is being introduced. Miss Linda Chan (marketing manager Electrolux Malaysia) says that the training made by the sales representatives is very important since this training many times is conducted in Chinese, the mother tongue of the dealers, whereas the catalogues and launch parties are written and conducted in English.

Mr Soo says that central training is organised once a month for the staff of one retailer at the time, since it is easier to train them in small groups. During these training sessions, product advantages translated into benefits for the customers and how to operate the products are being taught. He perceives that the number of training sessions is sufficient. Mr Jeffrey says that Electrolux has given a few larger training sessions at Electrolux’ head office in Shah Alam, and that these training sessions has been well received.

Mr Soo thinks that the dealers see the seminars and product launches as important sources of information. He also says that the launches are good for the communication of product information about Electrolux’ products.

Linda Chan believes that some of the dealers would appreciate catalogues and printed information in other languages than English.

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9. Discussion of findings

9.1. Introduction to the discussion of findings

In this section we are discussing what Electrolux can gain from delivering good service quality, what the dealers perceive to be attributes of service quality and what service quality they perceive Electrolux delivers.

The first part of the discussion looks at what Electrolux can gain from delivering good service quality. Secondly, we identify the service quality attributes which the dealers perceive are important in the interaction with Electrolux, and finally we examine if the service Electrolux delivers match the expectations of the dealers.

9.2. What can a supplier gain from delivering good service quality?

The dealers and Electrolux’ management perceive that the dealers can affect the sales by giving a product better display space and by the sales assistants pushing the product. The dealers say that the display space is important since the customer can see more models and it also gives the impression that a well displayed brand is an important brand. Whether or not the sales assistants or the dealer push a product is considered to be of great importance for the sales by both Electrolux and the dealers. All dealers are of the opinion that the customers listen to the dealers and the sales assistants advice *.

In their study, Mangold and Faulds (1993, p 6) found that ”Good service is rewarded with more shelf and/or display space”. What makes a Malaysian dealer increase the display space or/and push a product? It seems to be a combination of several factors. The dealers say that the display space is affected by the profit margin, the product quality, technical service, brand perception and relations with the supplier. The same factors in combination with product knowledge affect if a sales assistant actively pushes a product or not.

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All dealers believe that the customerslistens to the dealers’ and the sales

assistants advice

Brand perceptionProfit margins/Campaigns

Quality/aftersalesRelations

Display spaceSales assistants pushing a

certain product

Product knowledge

S A L E S !!!

Figure 9-1, Model of factors affecting sales (Antoni and Nordin, 1997)

Of the factors mentioned by the dealers, technical service, brand perception, relations and product knowledge are related to service quality and fall within the six service dimensions, presented above in the empirical part.

* Electrolux in Malaysia has the same perception of what the dealer can do to increase the sales. They believe that the customers follows the dealers advice. Linda Chan says that ”...however we have realised by now that a lot of the sales in the shop is a result of the dealers pushing”. An interesting point we found is that in a market survey (classified), done in Malaysia by Electrolux before the launch in retail, given to us in Singapore by Miss Lee Lee Yap (marketing manager Electrolux ASEAN), the consumers grade the importance of the dealers advice to 1 out of 100 points (by other words not significant at all).

9.3. Which attributes affect the dealers’ perception of the delivered service?

In this part of the discussion we are comparing the thirteen quality attributes found by Mangold and Faulds (see table 7-2) with our data to see if the same thirteen attributes exist on the market we studied. The thirteen attributes, marked (a) to (m), have been divided into the six dimensions of the dealer supplier relationship identified during phase-one of this study.

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9.3.1. (1) The role of the sales representative (a) Number of times the distributor visits your store. The Malaysian dealers thought that the personal contact with the sales representative was necessary. The number of times the sales representatives visits the stores depends on the amount of business made with Electrolux, but it was considered important that the number of times was sufficient.

(b)Consistency of service while in store, (c) How sales reps conduct themselves with customers while in store, (d) How sales reps conduct themselves with you while in store, (e) How sales reps conduct themselves with your employees while in store and (f) Positive relationship with the sales representatives. These attributes can all be gathered under the role of the sales representative. All the dealers thought it to be of great importance that the relationship between the dealer, his staff and the sales representative was good. The dealers want trustworthy sales representatives who give good service. The quality of the relationship can affect which brand the dealer push as well as how much display space a brand gets.

Within this dimension we found another attribute seen by the Malaysian dealers as important, information. The dealers wanted to have product information, market information and company related information.

9.3.2. (2) Order and payment system

We do not consider any of Mangold and Faulds thirteen attributes to fit under this title but we have identified two attributes from our data.

The dealers want to order directly from the sales representative and they want to pay by cheque directly to the sales representative. The latter attribute may not be important to the dealers in the USA since the American banking system is different from the Malaysian.

9.3.3. (3) Promotions

(g) Communications of programs and promotions.

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The dealers thought that it was important to know when and how a promotional campaign should be on, so that they could share the information with the customers.

We have found two other promotion related attributes to be of importance to the Malaysian dealers: The supplier shall have up-to-date point of purchase material and brochures available and should run continuous sales campaigns.

9.3.4. (4) Delivery

(h). Retrieving left-over products, (i) Maintaining shelf stock and (j) Maintaining acceptable back-room inventory. These three attributes are not applicable on the Malaysian white goods retail system since the dealers own the products in the KIV-stock, their own warehouse and in the store.

(i). Communicating with you when deliveries are going to be late, and (j). Pick up and delivery at the time promised. The dealers want the delivery to be made within one or two days. The exact time is not considered to be important since the dealers normally have some products in stock when they order.

(k). Weekend service. This would be interesting but none of the suppliers had this at the moment.

In addition to these attributes the dealers perceive the following three delivery related attributes important: If it is an urgent order they want to have the product delivered faster, a good recovery from the supplier if damaged products are delivered and the boxes have to be in good condition.

9.3.5. (5) Technical service

Mangold and Faulds have not identified any attributes which fall under this dimension. In our case we have identified three attributes perceived by the dealers as important: Fast response time, preferably the day after report, keeping promised time to the customer, and education for own technicians

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9.3.6. (6) Education

Mangold and Faulds have not identified any attributes which fall under this dimension. Education was, by the dealers interviewed in this case, seen as one of the most important ways for a supplier to increase the sales of the brand. A combination of centrally organised product training and in-store product training, written product information for the dealers to study and launch parties were seen by the dealers as good ways of obtaining knowledge.

9.4. The dealers’ perception of the service delivered by Electrolux.

In this part the dealers’ expected service is compared to what they perceive Electrolux is delivering. Each of the six dimensions of service quality will be examined. The tool we will use for our discussion is a six dimensional gaps model, which we have developed with the theoretical framework as our reference.

EXPECTED QUALITY

PERCEIVED QUALITY

SERVICE DELIVERY

ELECTROLUX MANAGEMENTELECTROLUX MANAGEMENT

The SalesRepresentative

The Order andPayments

ThePromotions

The Delivery The TechnicalService

The Education

The SalesRepresentative

The Order andPayments

ThePromotions

The Delivery The TechnicalService

The Education

The SalesRepresentative

The Order andPayments

ThePromotions

The Delivery The TechnicalService

The Education

SERVICE SPECIFICATION

The SalesRepresentative

The Order andPayments

ThePromotions

The Delivery The TechnicalService

The Education

GAP 3

GAP 2

GAP 1

DEALER

ELECTROLUX

Figure 9-2, The six dimensional gaps model (Antoni and Nordin, 1997)

The gaps in the six dimensional gaps model are:

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GAP 1: An internal gap in Electrolux’ organisation. It can either be the management that do not correctly specify the service they want performed by the company, or it is the front men, the ones conducting the moment of truth (in our case the sales representatives, the service technicians or the educators), that do not communicate their actual performance to the management.

GAP 2: An external gap where the management of Electrolux misinterprets the expectations of the dealers.

GAP 3: The dealers’ expectations of the service is not matched by the perceived service delivered by Electrolux

If a gap is found, where the expectations of the dealers are not met by Electrolux’ performance, the six dimensional gaps model (figure 9-2) will be used to try to pinpoint from where the gap stems from.

9.4.1. (1) The role of the sales representative.

”He gives us information about their offers, that’s all !”(Dealer No 4)

We have found a gap in the dealers expectations and the perception of information sharing. Although the management of Electrolux seems to be aware of what kind of information the dealers would like to have, the management is not aware of that the dealers perceive that they do not get this information. The dealers would like to have more market information such as trends and the behaviour of competitors and company information about Electrolux. This gap stems from an internal communication gap in Electrolux’ organisation (a gap 2 in the model, figure 9-2). Electrolux’ management is aware of what the dealers want but not what the dealers perceive they get. It is either the management’s specifications to the sales representatives that are wrong or it is the sales representatives that do not communicate to the management what they actually perform.

9.4.2. (2) Order and payment system.

We have not found any gaps in the perception of the order and payments routine. The routine seems to be a standard procedure which all the brands in the business are utilising.

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9.4.3. (3) Promotions

”Oh yes I want more (PoP), if there is something new !” (Dealer No 3)

We have identified a gap in the amount of PoP material given to the dealers. Electrolux’ management is not aware of that the dealers would appreciate some more and new PoP material The sales representatives also want more PoP materials to give to the dealers ”we are like soldiers going to war with out bullets”. It seems like the sales representatives have understood the expectations of the dealers. This gap in expected and delivered service stems from that the management has not understood the expectations of the dealers (a gap 3 in the model, figure 9-2), but also from that the sales representatives fail to communicate their perception of that the dealers would like more PoP material (a gap 2 in the model, figure 9-2). This second gap is an internal communication gap between the sales representative and the management.

The reason for not producing more PoP material may be that Electrolux’ strategy follows Linda Chan’s opinion that PoP material is not so effective. She says that most of the sales in the dealer’s shop is a result of the dealers pushing rather than PoP material affecting the customer, and that it could be a good idea to relocate the budget from PoP to dealer incentives.

9.4.4. (4) Delivery.

”Compared to other brands Electrolux is quite good”(Dealer No 2)

The dealers are very pleased with the way Electrolux and Tiong Nam conduct the delivery of goods. We have not identified any gaps in the delivery dimension

Note: The dealers expect and perceive that they can affect the speed of delivery by asking the sales representative to mark the order urgent. This is also the sales representatives perception. Tiong Nam and Electrolux’ management say that the only way a dealer can jump queue is to get the general manager’s (Mr Soo’s) authorisation and go to Tiong Nam and pick it up on their own. This is actually not a gap in expected perceived service since the dealers perceive they get what they want. But there is a gap within Electrolux’ organisation stemming from a misunderstanding between management and

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the sales representatives (a gap2 in the model, figure 9-2). We have also found that within Electrolux’ organisation the opinion on how long time normal delivery shall take differ. The sales representatives, the management and Tiong Nam all have their own opinion.

9.4.5. (5) Technical service.

We have identified two gaps in the expectations and perceptions of the technical service dimension, one in response time and one in training.

The first gap is in the response time of the delivery of technical service. Of the five dealers that had experiences of Electrolux’ technical service, three had complaints on the response time. Electrolux is aware of this problem, and explains it as a teething problem. The gap identified is within Electrolux’ organisation (a gap 2 in the model, figure 9-2) and stems from Electrolux’ inability, due to among other things a tight labour market in Malaysia, to employ and educate enough technical staff.

The second gap is in the training of the dealers’ technicians. All the dealers that have their own technical staff would like to get technical training in Electrolux’ products. This due to that they perceive that after the warranty period they can perform the service faster and cheaper than Electrolux. Electrolux is aware of the expectations and also thinks that the dealers will take care of the service after the warranty period. The gap we have identified is within Electrolux’ organisation (a gap 2 in the model, figure 9-2) and stems from that Electrolux does not have the capability to train external technicians, the organisation is still young and their priority is on training their own technicians.

We have not identified a gap in the expectations and perception of weekend service. Although all dealers would appreciate if Electrolux had this type of service, they realise that it would be very difficult to carry through due to the labour situation.

9.4.6. (6) Education.

”We were promised training at the HQ in Shah Alam six months ago, but up to now we have got nothing”

(Dealer No 5)

We have identified two gaps in what the dealers expect and perceive they get in the education dimension.

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The first gap is that the dealers would like to have more centrally organised training than what Electrolux’ management perceives that they want (a gap 1 in the model, figure 9-2).

The second is in the delivery of in store training. Electrolux’ management is aware of what the dealers expect and seems to be content that the training given by the sales representatives is comprehensive ” the sales representatives are eager to train the sales assistants” says Mr Soo. In fact all the dealers would like to have more in-store training. This gap in expected and perceived service stems from an internal communication gap in Electrolux’ organisation (a gap 2 in the model, figure 9-2). Electrolux’ management is aware of what the dealers want but not what dealers perceive they get. This is either the management’s specifications to the sales representatives that are wrong or it is the sales representatives that do not communicate to the management what they actually perform.

We did not identify any gap in the dealers expectations and perceptions of the language of the written material as suggested above by Linda Chan (see the education dimension in the empirical material, 8.7.2). But it may very well be because the dealers that we interviewed were selected for their ability to speak the English language (6.3.2).

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10. Conclusions

10.1. What can a supplier gain from delivering good service quality?

We have found that a supplier by delivering superior service quality to the dealers in a channel system can improve the sales. Both the dealers and the management of Electrolux were of the opinion that the display space and whether or not the dealers actively push a product affect the sales. If a supplier offers good service quality the dealers will give more and better display space and also reward the supplier by more actively pushing the supplier’s products. How much display space and how actively the dealers push a product depends on for example the technical service, the brand perception, the relation between sales representatives and dealers, and the dealers’ product knowledge. These factors are closely connected to service quality and by delivering good service quality, a supplier can affect the display space and the way the dealers push the product and thus increase the sales.

10.2. Which attributes affect the dealers’ perception of the delivered service ?

If we compare the attributes found by Mangold and Faulds (1993) to the ones found in this paper, we can see that many of the attributes are the same. However, maintaining shelf stock, maintaining acceptable back room inventory and retrieving left over products are not applicable on the studied market, since the dealer buy the product from the supplier and it is up to the dealer to order more when he is low on or out of stock. Communicating with the dealer when deliveries are going to be late, and pick up and delivery at the time promised is not considered to be important on the studied market since the dealers normally have some products in stock when they order.

On the studied market the technical service and education of dealers, sales assistants and technicians seem to be of high importance, whereas this is not found by Mangold and Faulds. It is not a too wide assumption to guess that some of the attributes in the technical service would have been found if Mangold and Faulds had looked at service quality in a retail channel with technical products instead of food and drinks. We can also understand that there is a greater need for product education in a technical industry, but are anyway surprised that these attribute did not surface in Mangold and Faulds research.

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Another attribute, which was not found by Mangold and Faulds, is that interviewed dealers want information about the products, the market and the supplying company.

10.3. The dealers’ perception of the service delivered by Electrolux.

We have applied the six dimensional gaps model, developed with the theoretical framework as our reference, on the interaction between Electrolux and its dealers. Gaps were identified in the following dimensions; the role of the sales representative, the promotions, the technical service and the education. Most of the gaps stem from lack of internal communication in Electrolux. For example the management or the sales representatives can be aware of the dealers’ expectations but fail to communicate this internally. The management’s lack of knowledge about what service the sales representatives deliver is also due to insufficient communication. In only one case the dealer’s expectations are not understood by Electrolux and it is in the expectations of centrally organised training.

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11. Appendix 1

This is the final version of the interview guide used during our interviews with the Electrolux’ dealers and Electrolux’ management. The guide is based on the six dimensions that we have used to characterise the relation between Electrolux and its dealers in Malaysia.

11.1. Interview guide

1. General company information- Tell us about your company, year of establishment, turnover, No of employees, No of branches, target groups- How did you hear about and why did you choose to use Electrolux as a supplier ?

2. Sales representative- Routine at sales representative’s visits, - What is the sales representative’s role (enough time, does he do what you think he should etc.)- What kind of information do you want to get from the sales representative ?- Importance of the number of times the sales representatives visits your store ?- How often does Electrolux’ sales representative visit your store ?- Does a good relationship increase the sales? Why?- Do you ever meet the sales representative in private ?- Which level of Electrolux’ staff have you met (managers etc.)- Behavior of SR’s from best other companies ?

3. Promotions- When Electrolux is running a campaign in TV or newspapers, do you get enough information about this to be able to plan your own activities?- What do you think about Electrolux’ promotional material (catalogues, PoP-stickers )- Do you get any support from Electrolux when running your own promotions (money/marketing aids) ?- Which factors decide the amount of space a certain brand is given in Your shop? - Do your customers listen to the advice on brands and models that you or your sales assistant give ? - Electrolux’ communications of promotions compared to best other brands.

4. Order and payments - Tell us about your ordering routines, do you know what happens on Electrolux’ side ? - Keep In View Stock (do you get status reports on KIV ?)- Best other brands order routine ?

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5. Delivery- How do you know when the delivery of products is about to come ? (Is the time promised by SR held, is delivery on time important ?) - How does the communication from Electrolux work, when deliveries are going to be late or if the product is not in stock?- What do you do if a product is needed urgent,? (are you aware of the time agreements on delivery between Electrolux and Tiong Nam)?-On delivery, has it happened that the goods delivered has been damaged ? If so what happens (retrieving and payment) - Does it happen that You sell damaged goods at a discounted price ?.-Is virgin packaging of importance to you , if so why ? -What is your perception of Tiong Nam Trading And Transport Company ? - Do you have to make any adjustments on Electrolux’ products before selling the product (rat nets/cords/warranty) - Best other brands delivery routine ?

6. Technical service (after sales service)- What is your routine like when technical service is needed ? - Which part of the technical service is done by your own technicians ?- How do you perceive Electrolux’ technical service (total - availability /time / quality)- Do you perceive weekend service as important.- Compare Electrolux to best other brand in technical service (total - availability /time / quality)

7. Education- What kind of education (training of store owner/sales assistants) does Electrolux provide? - Have you or your staff attended any?- What kind would you like to have?- Training of technicians. - Who is training your sales assistants, Does Electrolux provide in-store education of sales assistants, what is your perception of this ?- Does good product knowledge affect the sales of a certain product ?- Have you attended any of Electrolux’ launch parties, - Compare Electrolux’ education to best other brand ?

8. General-What could be improved with Electrolux?

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12. Appendix 2

12.1. Presentation of the dealers

Before the empirical material is showed the interviewed dealers will be shortly presented. They are coded 1-7 to keep them anonymous.

Dealer 1A family business with three outlets. Electrolux is sold in one of the outlets. In the three outlets he a 30 employees including 5 managers who are brothers of his. The three shops has a turnover for white goods of 2,4 million RM per year. Electrolux accounts for 6 % of the white goods turnover but 80 % of his washing machines.

Dealer 2The dealer has been in business for ten years and sold Electrolux the last three. The shop has a turnover of about 2 million RM per year and 3 sales assistants and 4 delivery men employed. Electrolux accounts for 50% (8-10 units per month) of his sales of washing machines. He estimates that 40% of his customers are regulars.

Dealer 3A family business run with two outlets. He has been in business for more than ten years and sold Electrolux the last two. The turnover for the two outlets is about 4 million RM per year. Electrolux accounts for 25% (8-10 units per month) of his sales of washing machines.

Dealer 4A family business with 5 outlets each headed by a family member. The dealer has been in business for seventeen ten years. This shop has 10 employees and a turnover of about 4,8 million RM per year. Electrolux accounts for 20% (10-12 units per month) of the sales of washing machines.

Dealer 5The dealer has been in business for more than 25 years and has two branches. In total he has 24 employees and a turnover for both outlets of about 12 RM per year. Electrolux accounts for 30% (20 units per month) of his sales of washing machines, and for more than 50% of the front loaders.

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Dealer 6The dealer has been in business for eighteen years and sold Electrolux the last two. The dealers has two branches and the turnover for both branches are about 1,2 million RM per year. and 3 sales assistants and 4 delivery men employed. Electrolux accounts for 25% (10 units per month) of his sales of washing machines. Most of his customers are regulars that lives in the neighbourhood.

Dealer 7A family business with two outlets, one which sells all brands and one that only Panasonic (How ever Panasonic does not have any front loaders, so they can sell Electrolux’ washing machines in that store as well). The two outlets have a turnover of about 3 million RM per year. Electrolux accounts for 25% (3-4 units per month) of his sales of washing machines.

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13. References

13.1. Literature

Alasuutari, (1995), “Qualitative method and cultural studies”, Sage Publication, London Burell and Morgan, (1980), “Sociological Paradigms and Organisational Analysis”,

Heinemann, London Eneroth, (1984) ”Hur mäter man ”vackert” ? Grundbok i kvalitativ metod”,

Akademilitteratur, Stockholm. Crosby (1979) ”Quality is free” , McGraw-Hill, New York. Garvin (1988), ”Managing Quality”, The Free Press, New York . Glaser and Strauss (1980), ”The discovery of Grounded theory: Strategies for

qualitative research”, Aldine Publishing Company, Haethorne, New York. Grönroos, C (1990), “Service Management ”, ISL Förlag, Göteborg Gummesson (1987), ”Quality - The Ericsson's Approach”, Ericsson, Stockholm Gummesson (1993), ”Quality Management in service organisations”, Karlstad, ISQA Kalleberg (1985), ”Kvalitative metoder i sosiologisk forskning”, Holter och

Kallebergt(red) Kvalitative metoder i samfunnsforskning, Universitetsforlaget, Oslo. Kong, R and Mayo, M, (1993), “Measuring Service Quality in the Business-to-business

context”, Journal of Business & Industrial Marketing, Vol. 8, No 2, MCB University Press, pp. 5-15.

Lewis and Booms, (1983), ”The Marketing aspects of service quality”, in Emerging Perspectives on Service Marketing, L Berry et al, eds. Chicago: American Marketing, pp. 99-107.

Lundahl-Skärvad, (1992), “Utredningsmetodik för samhällsvetare och ekonomer”, Studentliteratur, Lund.

Mangold, G and Faulds, D, (1993), ”Service Quality in a Retail Channel System”, Journal of Services Marketing, Vol 7, MCB University Press, pp. 4-10.

Myrdal, J, (1969), “Objectivity in Social Research” Pantheon Books, New York. Payne et al, (1995), ”Relationship Marketing for Competitive Advantage”, Butterworth-

Heinemann, Oxford. Rubenowitz, (1980), ”Utrednings och forskningsmetodik, Akademiförlaget, Göteborg.Wikström ,Normann, (1994), “Kunskap och värde”, CE Fritzes AB, Sockholm. Winter, (1973), “Problemformulering, undersökning, och rapport”, LIBER, Stockholm Zeithaml V.A., Parasuraman, A. and Berry, L, (1985), ”Problems and Strategies in

Service Marketing”, Journal of Marketing, Vol. 49, pp. 33-46.

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Zeithaml V.A., Parasuraman, A. and Berry, L(1990), “Delivering Quality Service”, Free Press, New York .

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13.2. Interviewees

Mr Stefan Schlyter, general manager Electrolux Household Appliances ASEANMiss Linda Chan, marketing manager Electrolux MalaysiaMr Jeffrey Chang, general manager of Electrolux Homecenters, MalaysiaMr Brandon Chin, sales manager, Retail, Electrolux MalaysiaMr Teo Lye Hock, warehouse/distribution manager, Tiong Nam Trading & TransportMr Lim Hee Phang, national service manager, Electrolux MalaysiaMr Soo, general manager of Electrolux Household Appliances, MalaysiaMr Peter Lew Yong Keong, Marketing Executive - Retail, Electrolux, MalaysiaMr Herbert Tang, sales manager, retail, Electrolux MalaysiaMrs Lee Lee Yap, vice president marketing, Electrolux ASEAN

See also description of interviewed retailers, appendix II.

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Richard Nordin, 03/01/-1,
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