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A Study to Analyze the Level of Satisfaction towards the After Sales Services provided by

developers in RAK

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Table of Contents
Growth of Property Development in the United Arab Emirates (UAE)..................................3

A Step up in RAK Property Prices since 2014............................................................................5

Property Development in Ras Al Khaimah (UAE) from 2008 till 2020....................................7

Increased Confidence in Foreign investors in property development market in UAE...7

RAK rising as Property Development in Destination................................................................8

Tourism;.....................................................................................................................................8

Investors......................................................................................................................................9

Ras Al Khaimah Investment Authority (RAKIA)................................................................10

Foreign Direct Investment policy in UAE.............................................................................10

Ras Al Khaimah Property Customers.......................................................................................10

Customers Satisfaction................................................................................................................11

Advantages of customer satisfaction......................................................................................12

Defects of Customers Satisfaction..........................................................................................13

Disadvantages of Customers Dissatisfaction.............................................................................15

Why should RAK Property developers satisfy their Customers?...........................................15

Models and theories of Customers Satisfaction........................................................................16

The IS Success Model..............................................................................................................16

The Thomassen Customer Satisfaction Model......................................................................17

Need of this Study........................................................................................................................18


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A Study to Analyze the Level of Satisfaction towards the After Sales Services provided by

developers in RAK

1. Introduction

Since the development of Ras Al Khaima (RAK) on February 10, 1972, under Sheikh Saqr bin

Mohammad al Qasimi in the United Arab Emirates, RAK has been on a journey to ensure

adequate services afterward reviews from their customers. The business developers in RAK have

put forward different satisfactory strategies and policies to cater to the customers' needs,

referrals, and after-sales services (Masoudinezhad, 2018). Today, for any successful organization

at every business level, satisfaction and customers' loyalty to the after-sales is important and

seriously essential in any business organization's marketing, recognition, extension, and success

(Masoudinezhad, 2018). Satisfaction of the after-sales services provided by an organization is

essential to the extent that it leads to the triumph or failure of the organization. One of the ways

many organizations apply to satisfy their customers and attain loyalty and trust is by having

developers who put in strategies on the same. This study's main objective was to evaluate the

effects of RAK developers on satisfactory after-sales services in the UAE. In this regard,

theoretical foundation and analysis show after-sales benefits.

Growth of Property Development in the United Arab Emirates (UAE)

The residential property development market in the United Arabs Emirates is guaranteed to

propagate at a CAGR of 12.36% by the next 5years of economic development. In the recent

years of business in UEA, transaction volumes are set to remain robust over the year, but with
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payment plans strategized by developers, the tightening and mortgage rates are likely to edge up

(Bodolica et al., 2021). In 2021, and the peak of the Coronavirus, the market was likely to halt

due to the pandemic and lockdown implemented by the government. Nevertheless, the property

development market is expected to face some headwinds in 2022, an improvement compared to

2021.

According to Lalaine (2021), the property and sales market in UAE proves a message of a strong

rebound in demand from the downfall during the Corona Pandemic, determined by rising oil

prices, refining economic settings, and a resilient foreign interest in the field (Lalaine, 2021).

UAE's all-residential property price index (RPPI) fell by 2.1% (a 2% increase accustomed to

previous rates). This improvement drifted from the 6.1% year to fall and the lowest deterioration

since September 2017. The change was recorded in the Reidin property report of May 2021

(Lalaine, 2021).

Fig. 1.1

Nominal house price changes= the figures circulated by utmost official numerical

foundations

Real house price changes=property price changes after the inflation adjustment
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According to the analysis in the report above, Ras Al Khaimah's property development progress

shows that the apartment prices clear-cut by 3.8% (-3.9% inflation-adjusted) through the year in

May. Most agents experience overstate fees since their figures are nominal and not adjusted for

inflation. From the graph, nominal house prices change so is the real. According to research, a

predictable time series in property investors' portfolios is given. Study and analysis show the

ways investors and property managers provide satisfactory returns on the after-sale services in

the market (Krishna, 2021).

A Step up in RAK Property Prices since 2014

From early 2003 to 2015, property development in the United Arab Emirates showed a tripling

trend, and the prices almost quadrupled. Billions of dollars were expended on mega-projects,

Jumeirah Garden City being one of the projects estimated to cost (US$95 billion), The Lagoons

(US dollars 25 Billion), and the World (US$14 billion). From these estimations, it is evident that

UAE investors emphasized property development to bring it to the prestige and grace it serves

now (Lalaine, 2021). As the economy was back to growth, the paused construction projects in

the UAE were resumed. From January 2012 to 2015, Ras Al Khaimah rapidly increased house

prices, averaging 21.5% annually.

Consequently, other aspects that led to the deterioration of the housing market in the recent years

of UAE property development include; Federal Mortgage Cap, a policy presented in 2012 that

slowed residential price rise in Dubai and Abu Dhabi, employment of the 5% value-added tax

(VAT) in 2018 which applies to home sales after completion of the project in three years and the

doublement of property registration fees by RAK-LD from 2% to 4% (Al Qatawneh, 2020).

Conclusively, even though in the previous years, the UAE real market had traces of a down drop
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on the property development and failure of customer satisfaction in the after sale-services, there

has been a significant development in the market of property and real estate.

Previously, the UAE real market has seen substantial upgrading, showcasing the current

expansion in the other emirates, including Dubai and Abu Dhabi property flea markets. It has

been proven to Crompton that UAE is the world's 9th largest region experiencing a grace of

natural resources. Due to this reason, globalization has imposed the area to come up with

strategies linked to the increased trend towards property development (Al Qatawneh, 2020). In

addition, in the last two decades, the movements have instigated a continuous intercontinental

inflow to the upraising economies and improved growth opportunities (Al Qatawneh, 2020).

Concerning UAE real estate development, research shows that extraneous investors have now

amplified predisposition to make their investments and subsidize the region's financial growth

and practical service providence in the RAK emirate (Al Qatawneh, 2020). A justification for

this is other past studies from various scholars that have provided Business and Management

analysis on the importance of the real estate market in a nation's economy.

The multi-faceted deliberation of the significant transformation in UAE for over 60years shows

the undertakings in the developmental areas of the country's economy, for instance, GDP,

housing, building sector, and literacy.

Property Development in Ras Al Khaimah (UAE) from 2008 till 2020

Agreeing with Elsheshtawy (2019), before the world financial recession in 2008, the UAE real

estate bazaar was bourgeoning in the worldwide market. Nevertheless, it considerably

transformed due to the substantial decline in foreign direct investment from 2008, posing 1.76%

in 2009. Subsequently, the hope raised in the global financial market from 2012 onwards. The

continuing increase in property development has been seen in the UAE real estate sector,
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especially the RAK emirate (Elsheshtawy, 2019). This development was triggered by the

implementation of the UAE Expo 2020, and DCG 2019 attracted the attention of foreign

investors and other customers gained from the UAE's regional economy, which started

investments in Ras Al Khaimah, now developing to its present.

Increased Confidence in Foreign investors in property development market in RAK (UAE)

The study reveals that foreigners are now achieving copious in investing in the RAK-UAE's real

estate sector. This led to the development of its Property sector growth. Foreigners have been

being granted leeway to acquisitions of freehold properties in RAK. According to the world

property context, the Gross rental offerings in UAE is better since it creates advanced returns

even on the smaller property, for instance, 90 sq. m (Elsheshtawy, 2019). On the same, the

technological implementations in the UAE have imposed real estate investors to increase their

investment in the property development sector. For example, the Real Estate Self-Transaction

platform and the Tagyimee are perfect examples of digitalization that has rendered it easier and

more effective for the property developers to access their property information on tenders and

calculate the value of property in the UAE (Elsheshtawy, 2019). Conclusively, on the

perpetuation of Property development in UAE, Gateway 2 Residence and the New Addition to

Hayat Island 2019 has been the main entryway for foreign investors and other new customers in

the market to invest in RAK real estate. From the endowment of the newfangled protocols,

flexibilities, and improvement in the property segment, UAE has encountered a flourishing

tendency in its inclusive economy which led to its development and attraction of tourists.

RAK rising as Property Development in Destination

The property sector in Ras Al Khaimah has displayed robust growth and resilience to the

volatility found in other emirates in the UAE. Statistics show that Ras Al Khaimah is set to
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benefit from a new injection of investment from international Real Estate investors and inherent

customers. More than $1.1bn is being expended on the new scheme that RAK has taken towards

Property Development and a vision of achieving an excellent area outlook. In addition, federal

funds have been disbursed to ensure that the RAK housing market is developing at a favorable

rate.

RAK's Property sector is a significant constituent in the Emirate's economy. Concerning RAK's

2016 Statistical Yearbook, the property and business services have contributed to an

approximation of Dh1.7bn ($487.2m), adding up to almost 6.9% of the total GDP of UAE.

Consequently, this is 42% more than its ratings in 2009. To show that the gross capital from real

estate and business in RAK has grown, the GDP grew by almost 10% from Dh1.63bn ($443.7m)

in 2012. The ratings are worth around 15% of the total GDP that RAK contributes towards the

UAE economy, making it the third-most-significant sector after mining, manufacturing, and

quarrying. In addition, its growth has primarily influenced employment, employing a total of

4899 people in 2013 and increased to almost 23,442 by 2018.

The Middle East as a whole fascinates moderately few visitors, and political proceedings in the

current century have spawned new uncertainties and pressures, which seem likely to additional

discourage tourists and investors (Hunderson, 2006). Supplementary barriers re-count to

unfortunate accessibility, a perceived absence of conventional attractions, and restricted

promotion. Despite these seemingly unfavorable situations, intercontinental tourism has been

embraced by the RAK authorities as a fundamental component in a program of economic

diversification (Hunderson, 2006). They have financed heavily in luxurious facilities and

undertaken extensive and all-around marketing. On the same, the outcome has been substantial

growth in tourism. In addition are great expectations of the future, which is predicated from the
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current position of the RAK Real Estate market and investors, reflected in the set of very high

arrival goals (Hunderson, 2006). However, numerous restrictions might impede development,

with a need to review stratagems. The involvement of Ras Al Khaimah in UAE thus obliges to

exemplify factors that are acute to destination development, significant impediments, and

approaches to overcoming these.

 Tourism;

According to Yas et al. (2020), a variety of research has been steered regarding the Ras Al

Khaimah tourism industry. However, less information has been published to indicate the role of

real estate as a significant factor that perpetuates the growth and development of tourism in the

UAE (Yas et al., 2020). Purposely, my study is to examine the growth of tourism in Ras Al

Khaimah as a result of Property development. The development of Ras Al Khaima has

dramatically influenced the tourism industry in UAE as a whole. The number of tourists and

visitors entering RAK has increased significantly over the last few years, creating a public

demand for hotels and accommodation facilities (Jenkins, 2021).

Consequently, investments in tourism in RAK have been accompanied by a vast expenditure on

infrastructure, which helps boost the Property development market (Yas et al., 2020) as

incorporation between the Emirate and the entire UAE has improved. Similarly, several GCC

Citizens and other nationals are investing in holiday homes in RAK. This contributes mainly to

tourism and, in return, boosts the economy.

 Investors

Ras Al Khaimah (RAK) has experienced a series of shifts in the last few years since it joined the

UAE as its 7th Emirate in 1972. There have been ultimate and significant changes to the
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investment policies, which has facilitated an environment conducive for worldwide business to

locate their investments and operations in RAK (Murphy, 2021). In addition, there has been an

unprecedented growth surge with the impending implementation of ambitious development,

including considerable investments in real estate, manufacturing, and services, and mainly in

infrastructures (Murphy, 2021). RAK has been a landmark and evidence of an important

destination of foreign investments. As a result, there have been different ways through which

property providers and the government of the UAE have influenced these investments (Murphy,

2021). In addition, the influences towards investors have significantly impacted the reviews of

the customers in the real estate, the investors, and the business organizations. RAK has

implemented the following strategies to ensure certainty in both foreign and local investors.

 Ras Al Khaimah Investment Authority (RAKIA)

This organization is responsible for providing and promoting economic development and

investment in RAK and the UAE. During its development, the authority was established to put

up a "business and industrial arena offering competitive free zone and a non-free zone" in the

area (Al-Tamimi, 2009). The business setup also caused some privileges. It allowed free trade

zones (exemption from all taxes, complete repatriation of profits and capital, and a high

concessional rate on land leases) (Al-Tamimi, 2009). On these authorities, investors were given

100% ownership of their property.

 Foreign Direct Investment policy in RAK

According to Mosteanu & Alghaddaf (2021), the UNCTAD World Investment Report of 2021

shows that the value of foreign direct investments inflows to the RAK in UAE increased in 2020

by 2.01 billion US Dollars, which is equivalent to (AED 7.38 billion) at a growth rate of 11.28%.
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In 2020, RAK made UAE advance nine ranks, becoming the 15th globally. The study shows that

the inflow of FDI in the UAE increases annually. This results from political stability, well-

developed infrastructure, stable currency, and the different global attractive event of Expo 2020

(Alshamlan et al., 2021). Among other policies, this was an investor-friendly authority from the

UAE government.

Ras Al Khaimah Property Customers

One of the significant strengths of the RAK property market from 2010 to 2018 has been the

transparency of its ownership, openness in international investments, and property possession

rule in RAK. In addition, the customers of the RAK property market have benefited and all-time

privileged with a guarantee of freehold property titles, which is not found in other emirates. In

the annual report of UAE property published in 2016, Asteco Property Management showed that

RAK

Property business in RAK often has leaders who fail to manage and sustain modest advantage to

increase profitability during unstable and deteriorating market proficiencies (Alfaraj, 2019). In

August 2013, RAK put up a customer service center equipped with friendly and conducive

world-class communication facilities and information services. The newly set up Centre

demonstrates that RAK's real estate market is driven towards worldwide best practices. Even

though many perceive the property development industry as critical, it has several investors and

customers whose loyalty depends on different factors (Alfaraj, 2019). The main customers of the

RAK property industry are popular tourists. In addition, it has an incredible landscape with large

natural beaches, deserts, and mountains (Alfaraj, 2019). Besides having investors as the primary

customers, RAK tourists have also mainly contributed.


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Customers Satisfaction

Customer satisfaction is a tendency that determines how happy customers are with specific

services and products. According to business and management, customer satisfaction is how well

a product or service provider fulfills your customer's expectations, influencing satisfaction

towards the after-sales services (Mahpour & Akabri, 2021). According to research, customers'

satisfaction results from the technology and the services offered by the provider. In many cases,

customers base their good sentiment on feeling good and happy about a property or a service

(Mahpour and Akabri, 2021). Recently, in technology, investors have ventured into Artificial

intelligence technology (AIT) and the use of Virtual Reality (VR) technology to attract and

satisfy the needs of all customers.

Customer satisfaction is measured and influenced by;

 Perceived product quality

 Convenience

 Communication

 Customers expectation

 Complaint handling

Advantages of customer satisfaction

Customer satisfaction can be the dissimilarity between your business succeeding or failing,

especially in uncertain times and economic recessions where organizations have to maintain a

higher satisfaction level throughout the customers' expedition. According to Brinci et al. (2018),

customer satisfaction is dependable on the authenticity and risk impressions which greatly

influences customer satisfaction and repurchase intentions for the property market and the after-
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sales services (Brinci et al., 2018). For an investor to establish a loyal customer, they should have

a great deal of effort on the matters of consideration (Brinci et al., 2018). The following are some

of the advantages that result from Customer satisfaction

 It is essential in keeping your customers and retaining other ones (discontented

customers are a withholding risk)

 Customer satisfaction is the primary factor to making a competitive differentiator

on the kind of services and products produced

 Customer loyalty- when the customers are satisfied, they believe in your property

and market

 Support pillar- in many occasions, satisfied customers are more likely to support

and stand by you for times of recession as they always want to see it thrive

 Reduce marketing expenses- satisfied clients in every business tend to be the most

prominent advocates. From their positive word of mouth, your organization

attains credibility, popularity, and hence new customers

Defects of Customers Satisfaction

Even though customer satisfaction and contentment are paramount in a business of high

expectation on returns and referrals, sometimes it is a very poor predictor of the customers'

behavior in the future. Research has not proven whether 'if a customer says he/she is contented

with the organization services and it does not mean that they will come back for the same

company's services and product's (Market Study Guide, 2022).' Many benefit customers'

satisfaction, and organizations strive to maximize their CSAT scores. As RAK Organization has

prioritized maximizing their score, many other policy defects exist.


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Fig 1.2 Limitations of CSAT

In property markets, for instance, the Ras Al Khaima Organization has majorly used lenient

policies to satisfy its customers. The most crucial marketing metric is regularly traced and

assessed (Market Study Guide, 2022). The main limitations of customer satisfaction as per the

above presentation include;

 Expected versus delivered values are measured- CSAT is not necessarily a perfect

measure of general value or quality of the organization and its service offering

 At times, there might exist a high CSAT score and a low outcome hence a standard

expectation from the customers for the future services

 Prevailing customers will adjust their expectations to the value regularly being

delivered, ensuing to most customers to be "just satisfied," reflecting an average after-

sales service score. For this reason, it won't be easy to maintain a high satisfaction

score.
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 In addition, some more engaged and involved customers are likely to participate in

discretionary market studies, such as online surveys, potentially leading to

overestimating CSAT levels.

 High Customer Satisfaction may probably not deliver increased profitability as more

interest will be focused on catching the trust of the customer (over-deliverance of

increased customer value)

Disadvantages of Customers Dissatisfaction

According to research, it is evident that 75% of the customers who change their brand or market

organization result from dissatisfaction. This occurs when the product does not meet the

customers' expectations. According to Dash et al. (2021), customers dissatisfaction impacts the

business negatively, creates a bad reputation, and loses customer loyalty. Appreciating customer

dissatisfaction is essential because customers are more likely to recall negative experiences than

affirmative encounters (Dash et al., 2021). Consequently, customers' dissatisfaction imposes a

series of effects that are disadvantageous to the mark since customers will not patronize the

service they do not lay their trust on. Disappointed customers will set lousy reviews on the

organization's assistance. For example, social media brand websites organizations will receive

poor ratings (Dash et al., 2021). This, in return, will lead to a loss of customers since there will

be poor lead generation and conversion to buy your property (Dash et al., 2021). Similarly, there

will be a loss in employees. One may be wondering how employees are associated with the

dissatisfaction of customers; well, no employee would wish to work with an organization that

lacks customers' loyalty.


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Why should RAK Property developers satisfy their Customers?

Reflecting on Rachmawati et al. (2019) research on Management science in Malaysia, Ras Al

Khaima has several factors that propel their urge of customer satisfaction on the after-sale

services. From their study, quality, price, location, promotion, and corporate image of the

property significantly influence customers' purchase decisions (Rachmawati et al., 2019). From

my study, I have discussed the results of satisfied customers and given a constructive suggestion

for promoting sales scores and customers ratings at the end of services. Customers should be

satisfied to maintain and keep the existing customers happy and as your priority always. In the

same way, it increases the chances of the customer coming back to do more business with your

organization. On the other hand, customer satisfaction helps identify strengths that are assessed

to facilitate the organization's growth.

Models and theories of Customers Satisfaction.

Different scholars have assessed how Ras Al Khaimah could implement policies and models to

improve their satisfaction with the after-sale services. The following models are used to

determine customers' loyalty and satisfaction to enhance future returns (Fang et al., 2011). This

Study model aims to extend the DeLone and McLean's IS success model of 1992 through

introducing justice and good services received from the exchanging party. In addition, the trust

of the customers towards the Real Estate Market and the repurchase of an organization's services

are determined.

The IS Success Model

The IS Success model mainly pinpoints and describes the interrelations between six critical

dimensions, which are the central pillars for the justification of this model (Fang et al., 2011).

The vital dimensions include; System Quality, Information Quality, Usage Intentions, User
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Satisfaction, net system benefits, and Service Quality (Fang et al., 2011). In this model, the

arrows demonstrate projected associations between the success dimensions. The system is

construed as follows;

 A system can be analyzed in the form of information, service quality, and strategy-

these quantities affect the proceeding use and intention to use the service offered by

the RAK market industry and user satisfaction.

 Resulting from the system, benefits are achieved, either positive or negative,

influencing the customers' satisfaction and further use of the system.

From the above evaluation, customers' satisfaction is met in the after-sale services. The actual

and expected outcomes of success will eventually be attained at the end of the implementation of

IS Success Model (Fang et al., 2011).

Schematic of the theory

Fig 1.3. Information Systems Success Model (DeLone & McLean, 2003)
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The Thomassen Customer Satisfaction Model

The Thomassen Customer Satisfaction theory perceives customers' contentment as a result of

consciously or unconsciously compared to their experiences with their expectations. For

example, in this theory, a different Company is from RAK Property Company. Let us say

Company X with a problem of customers not returning to make the subsequent purchase of the

property. Management needs to maximize the loyalty of the customers to improve customers'

satisfaction. To investigate this problem, the schematic model below is used to show the

interrelation between the two Property Companies (RAK and Company X)

Fig. 1.4; Customer Satisfaction Creation Model (Thomassen, 2007)

According to Thomassen, value proposition and other influences like experiences, achievements,

customer contentment, and marketing relations impact absolute customer satisfaction.

Comparison between; word-of-mouth, knowledge, public relations and marketing, and


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experiences, expectations, and outcomes to determine the extent to which Company X's

Customers are satisfied compared to RAK Property Company.

Need of this Study

In the growing business world, customer satisfaction is vital in Human Resource Management

and Organization Marketing. From the above evaluation, it is evident that Customer Satisfaction

results from several factors. In addition, this study is set to help Organizations in the Real Estate

Market in RAK retain their customers, increase their trust, and have a positive review of the

Company's reputation. Many other factors determine customers' experience with any

organization, Company, or market. In this research paper, there is a complete definition of

customer satisfaction and its improvement. This model of satisfaction is linked with the RAK

Property Market. Consequently, in this research, customers should be assured of the following

entities to secure their trust and contentment towards the RAK Real Estate Market;

 Transparency

 Good price

 Choice

 Convenience of product

 Information

 Time

Conclusively, the main aim of picking on this topic is because, in the Real Estate industry, many

Organizations have lost their customers due to dissatisfaction with the after-sale services in the

Emirate of Ras Al Khaimah; therefore, in my project, I will put forward several strategies that
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will contribute to the Customers' Satisfaction in the after-sale services. For future use, this

research is essential for any Real Estate organization that at any point might have experienced

negative reviews and zero returns from customers after their services. This research will create a

platform for the growth of the Property Market and competitive advantage.

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