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Proceedings of 12th International Conference on Business Management

http://ssrn.com/link/12th-ICBM-2015.html
7th and 8th December 2015 | Colombo, Sri Lanka

The Impact of After Sales Services on Customer Satisfaction


Special references to LG electronics products, Sri Lanka.

V.Nivethika
Student
Vavuniya Campus of the University of Jaffna
Nivethiha90@gmail.com

D. Yoganathan
Lecturer (Prob)
Department of Economics and Management.
Faculty of Business studies.
Vavuniya Campus of the University of Jaffna.
Dhanu1780@yahoo.com

Abstract
Customer plays an important role in every business. The main purpose of every business is to
satisfy their existing customers and to attract new customers. Customer satisfaction is a basic
one and it cannot be considered as a separate function in business. On the other hand After
Sales service plays an important role in customer satisfaction and customer retention. It
generates loyal customers. In that way After Sales service plays a pivotal role in
strengthening the bond between the organization and its customers. Based on that, this study
examined the research problem of whether After Sales services have an impact on the
customer satisfaction in LG electronics products, Sri Lanka. This research was carried out
with the objectives of evaluating the impact of After Sales services on customer satisfaction
in LG electronics products, Sri Lanka. Furthermore, a conceptual model has been developed
to link the After Sales services and customer satisfaction. Quantitative methodology has been
applied and questionnaires were used to collect data.150 household customers have been
selected from the service centers in Jaffna District on a non probability sampling method.
Simple regressions have been used for the analysis. Findings revealed that there is a positive
and significant impact of After Sales services on customer satisfaction in LG electronics
products, Sri Lanka.

Keywords: After sales service, Customer satisfaction, LG electronics products, Sri Lanka.

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Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
WEB: www.icbmusjp.org, mgt.sjp.ac.lk

Electroniccopy
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Proceedings of 12th International Conference on Business Management
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7th and 8th December 2015 | Colombo, Sri Lanka

JEL Classification: M31, M39

Introduction
Customer is considered as a king in every business. The main purpose of every business is to
satisfy their existing customers and to attract new customers. Customer satisfaction is a basic
priority and it cannot be considered as a separate function in business and it is considered
very important, it shows how firms are committed to provide quality product or services to
their customers that eventually increase customer loyalty. Satisfying the customer is one of
the basic objectives of the organization, as it is often said that customer is boss and boss is
always right, so it means customer is right when he demands for After Sale services. After
Sales service is an emerging concept in the business community.
Based on that, every organization has to provide better After Sale services to retain and
satisfy its customer. Making and retaining a valuable relationship with customer while using
every aspect of taking, retaining and enhancing the customer is known as Customer
Relationship Management (Kotler and Armstrong, 2010). Through customer relationship
management, organizations can achieve their objective of retaining and satisfying customers.
Customer satisfaction, results in increased demand of product/ service and the organization or
brand reputation increases. When organizations sell products effectively it has to make
effective planning for services products after sale, such planning is a part of customer
relationship management. After sale service is important for organizations to compete in the
market by using such extended services (Vitasek, 2005).
In Sale Services, After Sale Delivery and Iinstallation is very important for customer
satisfaction (Irini R., 2008). Different customers have different needs some want the product
to be delivered to their destination at the right time and at the right price, others give value to
customer needs and wants, on the other hand poor distribution results in a negative
impression (Kotler and Armstrong, 2010). Such negative impressions results in a poor seller
relationship with the consumer. Organizations need to improve relations with customers for
effectiveness and to improve their sales turnover. Installation of a product without any error,
results in improved satisfaction of the customer, this can reduce the chance of damage, error
and assures the customer that the product is valuable, errorless and reliable. Installation
process must be handled by an experienced professional; it should also provide a delightful
post sale service to the consumer from the organization. Properly managed feedback is
important for organization as they would then come to know what the customer needs from
2
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
WEB: www.icbmusjp.org, mgt.sjp.ac.lk

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Proceedings of 12th International Conference on Business Management
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7th and 8th December 2015 | Colombo, Sri Lanka

the organization, for example the types of changes the organization should be into the product
or service line, so that they give more value to the customers. Therefore, services given to
consumer After Sales are more valuable to satisfy customer needs, after sale service is very
important for organizations to retain customers for a long time and it willgenerate high
profitable relationship with organizations.
Further, After Sales Service involves a continuous interaction between the service provider
and the customer throughout the post-purchase product life cycle. At the time, the product is
sold to the customer, this interaction is formalized by a mutually agreed warranty or service
contract. The exact terms of the warranty or service contract, the characteristics of the
customer base, and the nature of the sold product influence the After Sales service strategy of
the service provider (Cohen et al., 2006; Oliva and Kallenberg, 2003) as cited in
Muhammed,et al (2011). Goffin and New, (2001) discovered that after-sales services
maximized the value extracted by customers over the entire product life cycle. Kurata and
Nam, 2010; and Ahn and Sohn, (2009) agreed that after-sales services can create sustainable
relationships with customers and contribute significantly to customer satisfaction by offering
different after-sales services during the various stages of the primary product lifecycle, the
provider can ensure product functionality and thereby customer satisfaction. This may lead to
a fruitful relationship between the provider and the customer over time, allowing for more
transactions.
On the other hand, in Sri Lanka especially in the Jaffna District, there are number of
electronics companies like Abans LG electronics, Singer, Samsung, Soft Logic, PC House
which provide the After Sales services. Among these companies LG electronics is one of the
leading Electronics Company in the Jaffna District. Compared with the other competitors, LG
electronics in the Jaffna District has been having a high sales turnover for the last ten years
(Abans LG annual report 2013-2014). Further, LG electronics provides a lot of customer
services like call center, online support services, spare parts availability, quick repairing, on
time services, on lone products for service customers for the repairing period, After Sales
customer relations and After Sales service to its customers. Among these services, LG gives
more priority to deliver the quality After Sales services to their customers. According to the
Abans LG Annual Report 2013-2014, there is a high sales turnover for the LG Electronics
Products and the Management of the LG electronics, are very proud about their sales and
After Sales services.
3
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
WEB: www.icbmusjp.org, mgt.sjp.ac.lk

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available at:
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Proceedings of 12th International Conference on Business Management
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7th and 8th December 2015 | Colombo, Sri Lanka

Even though customers have made complaints in LG electronics service centers in several
Districts, the top level management of the LG Company mentioned, that Jaffna District has a
high customer complain rate in aftersales services. Their complaints are delay of repairing,
high price of spare parts, shortage of spare parts, delay in delivery, disrespectful staff and low
quality of their services. These complaints are identified by the “After Sales Service Center”
of the LG electronics company in the Jaffna District.
Based on these complaints, researcher did a pilot study in the Jaffna district to study about
the customer satisfaction of the LG electronics regarding the After Sales services. To
undertake the pilot study, Researcher selected 25 customers who experienced the After Sales
services in LG electronics in order to identify the satisfaction towards the After Sales services
of the LG electronics products. From the pilot study Researcher was able to identify
following information: most of the customers were dissatisfied with the LG electronics After
Sales services. For example when the customers give their products for repairing, the service
centers of LG electronics takes a considerable time to return, staff do not responding properly
to the customer complaints and the service centers of LG electronics take more time to repair
the products. However there were also some customers who were satisfied with the LG
electronics products and their services regarding their quick response and availability of the
information and other services. Based on the pilot study subsequently the Researcher was
able to find that most of the customers were not satisfied with the services provided by the
LG electronics in Jaffna District.
Researcher conducted an interview with the head office people of the LG electronics.
Through the interview researcher collected the following information :LG Electronics is a
global leader and technology innovator in consumer electronics, mobile communications and
home appliances, employing more than 84,000 people working in 115 operations including
84 subsidiaries around the world. With 2008 global sales of $44.7 billion, LG comprises of
five business units – Home Entertainment, Mobile Communications, Home Appliance, Air
Conditioning and Business Solutions. LG is one of the world’s leading producers of flat panel
TVs, audio and video products, mobile handsets, air conditioners and washing machines and
during the interview, the top level management emphasized that they provide a high quality
of the After Sales service to their customers.
So, there is a contradiction between the customer’s perception of the LG electronics
products and the top level management opinion about the LG electronics products especially
4
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
WEB: www.icbmusjp.org, mgt.sjp.ac.lk

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Proceedings of 12th International Conference on Business Management
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7th and 8th December 2015 | Colombo, Sri Lanka

in required to the After Sales services. Hence, the researcher was able to identify their gap
between After Sales services and customer satisfaction in LG electronics products in the
Jaffna district

Problem statement.
Several researches have been undertaken in the perspectives of After Sales service
perspective and customer satisfaction, in many countries and they applied these two concepts
in different service sectors as well as contexts. In Sri Lanka also, many researchers have
studied the After Sales services and customer satisfaction in different contexts. But one
hardly finds researches which were undertaken pertaining to the After Sales services and
customer satisfaction in LG electronics in Sri Lanka .Thus this study focuses on the empirical
gap in the application of After Sales services and customer satisfaction in LG electronics in
Sri Lanka. Based on that, this study focuses on the research question of whether there “Is
there any impact of After Sales services on customer satisfaction in LG electronics products
in Jaffna district”.

Research objective
Based on the research problem, the following objective is identified:
“To examine the impact of After Sales services on customer satisfaction in LG
electronics, in the Jaffna district”.

Literature Review, conceptual frame work and hypotheses


Customer satisfaction
Customer satisfaction is a compelling issue because in the service industry customer retention
is more important than attracting new customers. Retaining customers has a stronger impact
on company profit than does attracting new customers. Therefore, companies, so as to
maximize profits in the long term, should strive for zero defection through customer
satisfaction.
Customer satisfaction is an ambiguous state of satisfaction expressed differently in every
personality to every product/service. Customers experience their conscious perception of
products/services in many degrees of satisfaction. If companies provide products which
mismatch with the customer’s expectations and desires, customers will be disappointed. If

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Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
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companies supply a 20 product meeting their desires, customers will be satisfied. If


companies give a product surpassing their desires, customers will feel highly delighted and
satisfied (Recklies, 2006).
In that way, customers are necessary for the continuous existence of an organization. Since
the survival of any business is dependent on the customer, the main purpose of every business
should be in satisfying its existing customers and attracting a new customer. Hence, in order
to be successful, organizations have to continuously measure satisfaction level of their
customers in order to assure their existence in the market. Now a day’s many organizations
measure the satisfaction of their customer on the service they offer after they sell the product.
Further customer satisfaction is the determination of the degree to which a company’s
products or services meet the requirements of the end user. “customer satisfaction is the
customer’s evaluation of a product or a service in terms of whether that product or service has
met their needs and expectations.” Customers’ expectations are continuously increasing.
Brand Loyalty is a thing of the past. Customers seek out products and producers that are best
able to satisfy their requirement. It is not enough if the product meet customer expectations
like the behavior or attitude of the person. Customer Satisfaction is the combination of both
technical features and human behavioral aspects. Customer Satisfaction can be represented as
follow: Performance features address the issues on conformance to the standards and
variability. Behavior aspects deal with the following component of services:

• Responsiveness - Readiness of employee to provide service.


• Courtesy - Respect, friendliness of contact personnel.
• Complete Resolution - Listening to customers.
• Communication - Speaking to the customers in their language.
• Credibility – Taking ownership in resolving the complaints.

If customer experience matches customer expectation, it leads to customer satisfaction and


if customer experience doesn’t match with ‘Customer Expectation’, leads to ‘Customer
Dissatisfaction’. On similar lines if it exceeds expectation, then thet leads to ‘Customer
Delight’.

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University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
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Further according to Rizaimy et al. (2009), customer satisfaction measures should depend
on the five following parameters.
• Quality: - If defects are detected during the warranty period, the customer is happy.
However, what is important is whether the defects fall into an acceptable range.
Sometimes, customers specify what an acceptable defect is.
• On-time delivery: - Nothing is more frustrating than not receiving a delivery on an
agreed-upon day. This frustration may be eased if somebody calls to tell you that the
delivery is going to be delayed, but the frustration is there just the same.
• Money: - Obviously, no vendor can bill the customer for an amount that was not agreed to
by the customer that is if the vendor expects his invoice to be respected in full and
without issue. Whenever the customer has to pay more than the purchase order value, the
customer is dissatisfied.
• Issue factor: - Issues crop up during project execution mainly because of unclear
specifications or a lack of understanding the specs. Issues may also occur because of a
conflict or an error in the requirements. When the vendor raises an issue whose origin is
attributable to the customer, the customer’s satisfaction is not usually affected. However,
the customer’s satisfaction does become affected if the issues raised are due to the
vendor’s improper understanding of the requirements.
• Accommodation and cooperation: - Most projects would not be complete without a few
change requests from the customer software maintenance projects run on these. But since
change requests are commonly implemented before delivery and it cause additional work
for the vendor. Customer will be happy when change requests are accepted without
impacting the price or the delivery schedule, but it is rare to happen.

According to Rizaimy et al. (2009), classify the major tasks related to customer
satisfaction of fixed line as provision of quality, on-time delivery, money, issue factor,
accommodation and cooperation. Most companies incorporate the quality, on-time delivery,
money, issue factor, accommodation and cooperation as an element of customer satisfaction.
In 2011, Attafar who developed a model of customer satisfaction and incorporate the
following elements: quality, on-time delivery, accommodation and cooperation. Based on
that this research also adopted the Attafar (2011) model. In that way, this research considered

7
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University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
WEB: www.icbmusjp.org, mgt.sjp.ac.lk

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the quality, on-time delivery, accommodation and cooperation as the elements of customer
satisfaction in the LG electronics, Sri Lanka.

After sales services


After-sales service has emerged as a major source of competitive maneuvering, so firms
strive for competitive advantages with their after-sales service portfolio to differentiate offers
from competitors (Goffin, 1994; Slater, 1996; as cited in Ruben, 2012). After-sales services
are an important marketplace differentiator because primary products are often physically
comparable (Ruben, 2012). Saccani, et al. (2007) defined After Sales service for
manufactured goods as the set of activities taking place after the purchase of the product,
devoted to supporting customers in the usage and disposal of goods. Rigopoulou, et al. (2008)
described After Sales services as services that are provided to the customer after the products
have been delivered. Cavalieri, et al. (2007) viewed after-sales service as those activities
occurring after the purchase of the product and devoted to supporting the customer in the
usage and disposal of the goods. Urbaniak, (2001) defined After Sales service as those
activities that enhance or facilitate the role and use of the product. Asugman, et al., 1997
defined After Sales service as those activities in which a firm engages after purchase of its
product that minimize potential problems related to product use, and maximize the value of
the consumption experience. Ehinlanwo and Zairi, (1996) also defined After Sales service as
“all activities geared towards maintaining the quality and reliability of the car carried out
after the customer has taken delivery with the goal of ensuring customer satisfaction.’
According to Ruben, (2012) after-sales services is the sum of activities taking place after the
purchase of a product which:
• ensure that a product is available for trouble-free use over its useful life span andguarantee
the continuous availability of goods (preventive maintenance)
• replace failed products in a timely and cost-effective manner (reactive maintenance)
• Create competitive advantage for the customer (value added services).

Raddats, (2011) is of opinion that customers are no longer demand just for a product but
one which has a comprehensive solution for their problem; they are increasingly moving
away from requesting for a specific product to requesting for a certain service package

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(including the original purchase and all aftermarket needs) instead. Chien, (2005) also agreed
that free basic after-sales service plays an important role in attracting more customer attention
in a market with severe brand competition. Offering adequate after-sales service to customers
has become a major generator of revenue, profit, and competency in modern industries
(Cohen et al., 2006; Cohen and Kunreuther, 2007) as cited in Alirezaet al, (2011). Shaharudin
et al. (2009) examined the factors of After Sales service, which affect customer satisfaction in
the electronic market of Malaysia. After Sales service was determined through delivery,
installation and warranty. Results showed that delivery, installation and warranty has
significant positive impact on the customer satisfaction. Ruben, (2012) also agreed that After
Sales service significantly enhance the value of the product to its users. He noted that
customers may decide to purchase a product based upon service and after market
considerations.
However, most of the business organizations are not aware about the after-sales service
factors and its impact towards the customer satisfaction. Failing to realize the importance of
the factors can lead to a disastrous and threatening business relationship. Dissatisfied
customers will turn to competitors who can offer better after-sales services. Profitable
business relationship is not something that a company can take easily as it requires enormous
effort and cost to build it. According to Irini (2008) installation and delivery are the keys to
the after-sales service that have an influence on the customer. Buyers of product want
assurance that the product will perform satisfactorily over its useful life when operated
properly. This is achieved through post-sale support such as installation, warranties, extended
warranties, maintenance service contracts, provision of spares, training programs, product
upgrades and etc (Murthy et. al, 2004).
Several researchers have developed the dimensions of After Sales services in different
contexts. In that manner, Goffin (1999) stated in his research installation, user training,
documentation, maintenance and repair, online support, warranty and upgrades are the
elements of the After Sales services. Further, Hawariat (2010) in Ethiopia, applied the above
to the telecommunication sector and classified that the major tasks related to After Sales
services are: fixed line provision of information, service delivery, maintenance and repair
service, billing service and customer complaint handling. More over many researches
incorporated the following as the elements of After Sales services: maintenance, repair,
online service, warranty, training. In 2011, Attafar who developed a model of After Sales
9
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University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
WEB: www.icbmusjp.org, mgt.sjp.ac.lk

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Proceedings of 12th International Conference on Business Management
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7th and 8th December 2015 | Colombo, Sri Lanka

services and it incorporates the following elements: repair, spare parts supply, online
(telephone) service, warranty services. Based on that, this research also adopted the Attafar
(2011) model. In that way, this research considers repair, spare parts supply, online
(telephone) service, warranty services as the elements of After Sales services in the LG
electronics, Sri Lank

After Sales services and customer satisfaction


Understanding the causal relationship between After Sales services and customer satisfaction
has captured the interest of marketing for well over a decade now. Evolving out of the drive
to increase product quality (Deming, 1986, Hauser and Clausing 1988) customer satisfaction
became the battle cry of companies trying to compete in a newly globalized marketplace.
In that way, Rigopoulou et al, (2008) examined the consequences of After Sales services
on customer satisfaction in Greece. The results show that After Sales service has significant
and positive impact on customer satisfaction. They suggest that service marketing managers
should understand the impact of After Sales service on customer satisfaction and behavioral
intentions.
Further, Gupta and Lehmann, (2007 studied the impact of After Sales service on customer
satisfaction and they discovered that after-sales service is regarded as an important factor that
has an impact on establishing good relationships with customers. Then Alexander et al.,
(2002) also accepted the claim that returning customers are the most profitable ones, as they
require less marketing effort and relationship building and they agreed that after-sales service
acquires a critical role as a means to achieve customer satisfaction.
In that manner, Rosen and Surprenant (1998) studied whether After Sales service is
enough for the long relationship with customers. Their findings showed the After Sales
service is a marketing tool that create and establish a relationship with customers through
good communication and flexibility. In long term, it leads to customer satisfaction. Finally,
Cohen et al., (2006) and Cohen and Whang, (1997) believed that large number of extra after-
sales service plans to consumers will lead to customer satisfaction and retention as well as
higher profitability.

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Conceptual framework
Moreover a theoretical argument for the relationship between After Sales services and
customer satisfaction is explained based on the comparison level theory. Thus this theory
provides the theoretical base for the After Sales services as well as customer satisfaction. The
above justification through literature paved the way for developing the following conceptual
model.

After Sales services

• Repair
• Spare parts supply
• On line services Customer Satisfaction
• Warranty services

Figure 1- Conceptual model for the relationship between After Sales services and customer
satisfaction

Hypotheses
H1: There is an impact of After Sales services on customer satisfaction in the LG
electronics products, in Jaffna district.
Ha: There is an impact of repairs on customer satisfaction in the LG electronics
products in Jaffna district.
Hb: There is an impact of spare parts supply on customer satisfaction in the LG
electronics products in Jaffna district.
Hc: There is an impact of on-line support on customer satisfaction in the LG electronics
products in Jaffna district.
Hd: There is an impact of Warranty on customer satisfaction in the LG electronics
products in Jaffna district.

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Methodology
Quantitative methodology has been applied and a questionnaire was used to collect data. In
Sri Lanka, among the 1268 showrooms, this study was restricted only to the Jaffna district,
Based on that, all 11 showrooms in the Jaffna district were selected. In that way, customers
who consumed the After Sales services in LG electronics showrooms in the Jaffna district
was considered as the population of this study. Based on the customer complains, 110
customers were selected from the 11 showrooms based on the convenience sampling method.
Before the final data collection, a pilot study was undertaken. In this study, a questionnaire
was developed with the support of previous studies carried out by experts in the relevant
subject areas. As a result, the statements on After Sales services are adopted from Mustofa
(2011) with slight changes based on the pilot study. On the other hand a questionnaire on
customer satisfaction were also extracted from Mustofa (2011) and used the extracted
questionnaire with necessary modifications based on the pilot study.
Prior to data analysis, a data purification process was conducted to ensure the suitability
of measures (Churchill, 1979). For ensuring the reliability of scale, Cronbach’s alpha was
computed. According to Nunnally (1978) the alpha of a scale should be greater than 0.70.
Results of the study show that the scales are sufficiently reliable for the present study context.
Further content validity and construct validity had been applied, under the construct validity
convergent validity, discriminant validity and nomological validity also had been tested.
Before the data analysis, the appropriateness of data distribution was tested. In that manner,
normality test and multicollinearity test were undertaken. Finally simple regression analysis
had been used as a data analysis tool and used to test the hypotheses: Hypothesis one (H1)
and sub hypotheses (Ha,Hb, Hc, Hd).

Data Analysis
Table 1- Dimensions of After Sales services and customer satisfaction

Hypo Independent Dependent β Sig. Adjust


th variable variable ed
es R2
es
Ha Customer
Repair satisfaction 0.750 0.000 0.623

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Hb Spare parts supply Customer


satisfaction 0.710 0.000 0.606
Hc On line services Customer
satisfaction 0.205 0.002 0.269
Hd Warranty services Customer
satisfaction 0.620 0.001 0.418
H1 Constant 0.729

Repair Customer 0.679 0.000


Spare parts supply satisfaction 0.507 0.000
On line services 0.152 0.000
Warranty services 0.329 0.000
Source: Survey data

Ha: There is a positive impact on repairs on customer satisfaction in LG electronics, in the


Jaffna district - According to the regression results in the Table 1, repairs have taken a
positive regression coefficient value (β = 0.750) and it had been significant at P-value of less
5% (P <0.05). Meantime R2 (0.623) was high, the regressed model was satisfactorily fited to
the data; accuracy of predictability of the fitted model was high and residuals also followed a
normal distribution.
Hb: There is a positive impact of spare parts supply on customer satisfaction in LG
electronics, in the Jaffna district - As per the regression results shown in the Table 1, it had
been noted that fitted model revealed positive impact of spare parts supply on customer
satisfaction ( ß=0.710 p<0.05). Since R2 was high (0.606), the regression model was
satisfactorily fit to the data, accuracy of the predictability of the fitted model is high and
residuals also followed a normal distribution.
Hc: There is a positive impact of on-line services on customer satisfaction in LG
electronics, in the Jaffna district - Based on the table 1, on-line services has taken a positive
regression coefficient value (β = 0.205) which has been significant at P-value of less 5%
(P<0.05). It implied that on-line services to customers were a positive influence on customer
satisfaction. At the same time R2 (0.269) is low, the regressed model fits to the data; accuracy
of predictability of the fitted model is low and the residuals followed a normal distribution.
Hd: There is a positive impact of warranty services on customer satisfaction in LG
electronics Jaffna district - As per the regression results shown in the Table 1, it has been
noted that the fitted model revealed the positive impact of warranty services on customer

13
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
WEB: www.icbmusjp.org, mgt.sjp.ac.lk

Electronic copy available at: https://ssrn.com/abstract=2699838


Proceedings of 12th International Conference on Business Management
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7th and 8th December 2015 | Colombo, Sri Lanka

satisfaction ( ß=0.620, p <0.05). Since R2 was medium (0.418), the regression model was
satisfactorily fitted to the data, accuracy of the predictability of the fitted model is sufficient
and residuals also followed a normal distribution.
H1: There is a positive impact of After Sales services on customer satisfaction in LG
electronics Jaffna district - According to the table 1, the fitted model encountered that the
After Sales services has strong positive effects on the customer satisfaction (R2 =0.729).
These predictions had been significant at the P-value of less than 5% (p< 0.05) and the
regressed model was satisfactorily fitted the data and the predictability power of the fitted
model was high and residuals also followed a normal distribution.

Discussion, conclusion and recommendation


The ultimate objective of the research is to examine the impact of After Sales services on
customer satisfaction in LG electronics Jaffna district. The regression result shows that there
is a strong positive impact of After Sales services on customer satisfaction. It means that the
After Sales services has strong positive effects on the customer satisfaction in LG
electronics, Sri Lanka and 72.9% of change in customer satisfaction is explained by After
Sales services in Sri Lankan LG electronics. These findings are in the line with Choudhary et
al. (2011) and Isaac et al. (2013), who stated that there is an impact of After Sales services on
customer satisfaction. Based on that, the first hypothesis (H1) has been accepted.
Further, repairs had the highest regression coefficient value. It means repairs have a strong
positive impact on customer satisfaction and this has a higher impact than other dimensions
of After Sales services. This is in line with Mustofa (2011) who identified that repairs is the
most popular measure for After Sales services meantime providing the repair services a core
as element of customer satisfaction. Therefore the first sub hypothesis (Ha) has been
accepted.
Furthermore spare parts supply also had a higher regression coefficient value. It shows, the
availability of spare parts in the LG showrooms has strong positive influences on customer
satisfaction. This finding is supported by Mustofa (2011). Through that the second sub
hypothesis (Hb) has been accepted. It explains that the availability of spare parts in the LG
showrooms has positive influences on customer satisfaction.
Moreover customer satisfaction can be developed through providing warranty periods to
customers, this is in line with Isaac et al., (2013) they discovered that customers rate warranty
14
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
WEB: www.icbmusjp.org, mgt.sjp.ac.lk

Electronic copy available at: https://ssrn.com/abstract=2699838


Proceedings of 12th International Conference on Business Management
http://ssrn.com/link/12th-ICBM-2015.html
7th and 8th December 2015 | Colombo, Sri Lanka

contracts as highest among After Sales service dimensions followed by delivery and
installation respectively. Through that the fourth sub hypotheses (Hd) has been accepted.
Further more, on-line services to customers also had a low regression coefficient value. It
shows, customer on-line services in the LG showrooms have positive influences on customer
satisfaction, though it is not strong. This finding is not fully supported with Mustofa (2011).
Through that the third sub hypothesis (Hc) has been accepted. But partly. because, the on-line
services to customers does not have a significant impact on customer satisfaction.
This study tried to integrate the relationship between After Sales services on customer
satisfaction in LG electronics Jaffna district and found that “there is a strong positive impact
of After Sales services on customer satisfaction in LG electronics Jaffna district”. Thus, it
filled the empirical gap between After Sales services on customer satisfaction in LG
electronics Jaffna district. During this study, Researcher encountered the following
recommendations. This research has only been confined to the LG electronics. Therefore
same research can be extended to other sectors like retail stores, household products etc.
Furthermore this research has been undertaken in different perspective in different context (B
to B) context. Moreover the influence of moderating and mediating variables between After
Sales services on customer satisfaction also can be studied. Recently many researchers
studied the After Sales service and they considered the different dimensions as well. Thus
other dimensions of After Sales services also can be considered in future.

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15
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
WEB: www.icbmusjp.org, mgt.sjp.ac.lk

Electronic copy available at: https://ssrn.com/abstract=2699838


Proceedings of 12th International Conference on Business Management
http://ssrn.com/link/12th-ICBM-2015.html
7th and 8th December 2015 | Colombo, Sri Lanka

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16
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
WEB: www.icbmusjp.org, mgt.sjp.ac.lk

Electronic copy available at: https://ssrn.com/abstract=2699838


Proceedings of 12th International Conference on Business Management
http://ssrn.com/link/12th-ICBM-2015.html
7th and 8th December 2015 | Colombo, Sri Lanka

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17
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
Gangodawilla, Nugegoda
E-Mail: icbm@sjp.ac.lk
WEB: www.icbmusjp.org, mgt.sjp.ac.lk

Electronic copy available at: https://ssrn.com/abstract=2699838

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