IMPACT OF AFTER SALES SERVICES ON CUSTOMER RETENTION

[A STUDY OF THERMOCOOL PLC]

BY

FAYEMI BISOLA OLUWATOSIN

MATRIC NO: 2022410013

A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF NATIONAL DIPLOMA IN MARKETING

DEPARTMENT OF MARKETING

FACULTY OF MANAGEMENT SCIENCE

OSUN STATE COLLEGE OF TECHNOLOGY

ESA OKE

SEPTEMBER, 2022

i
 CERTIFICATION

This is to certify that this research work was carried out by FAYEMI BISOLA
OLUWATOSIN with Matriculation Number 2022410013 in the department of
Marketing in partial fulfillment of the requirement for the award of National Diploma (ND) in
Marketing.

-------------------------- ------------------------

MR. RAJI ALI TOBI DATE

Project Supervisor

-------------------------- -----------------------

MRS. O. T. ISHOLA DATE

Head of Department

------------------------- ------------------------

EXTERNAL MODERATOR DATE

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 DEDICATION

This project is dedicated to the Almighty GOD and my lovely parents Mr. and Mrs. Mutiu
for their parental role and support towards a successful completion of this project and my
programme as whole. I pray the Almighty God will give you the grace to reap the fruits of
your labour. (Amen).

ACKNOWLEDGEMENT

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My appreciation goes to Almighty GOD for sparing my life and also granting me the strength and all
it takes to complete this project successfully.

My appreciation goes also to my parents for their parental role and support towards the successful
completion of this project and my programme as a whole. I pray the Almighty God will give you the
grace to reap the fruits of your labour. (Amen).

I am equally grateful to my project supervisor MR. RAJI ALI TOBI for his support towards the
successful completion of this project work. I pray you will live long in good health and enjoy the
fruits of your labour. (Amen).

I also acknowledge the Head of Department of Marketing MRS. O. T. ISHOLA and also other
lecturers in the department for impacting a valuable knowledge on which I admit will be useful in
every facet of life in the nearest future.

Furthermore, appreciation goes to the Nigerian and foreign authors whose books have been of
immense contribution during the project write-up.

Finally,my profound gratitude goes to my big mummy Mrs. OmolaraAgbabiaka because without her,
it won’t have been possible for me to be a graduate. I pray the Almighty God will give you the grace
to reap the fruits of your labour. (Amen).

With full heart of thanks, I acknowledge the love, prayers and support of my siblings Adeyemi,
Adeyemo, Adeyele, Oluwaseun, Fatimoh, Oluwaseyi, Karimot, Oyindamola, Suleiman, Abike,
Zainab, Hannan, Far’hannah, Oluwalonimi, and Jason (J-Boy) &coursemates. I strongly admit I owe
you all debts of gratitude for your undaunted support, including those whose names could not be
mentioned for inevitable reasons that have contributed to this success of this project and my
programme too.

ABSTRACT

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The purpose of this study is to investigate the impact of after sales service on customer retention using

Thermocool Plc as a study. Chi square was used for descriptive analysis. For the purpose of this study, the

sample was chosen randomly and it consisted of hundred(100) employees of Thermocool Plc,. As for the

respondents of the sample, they were 100 employees who received 100 questionnaires, 100 questionnaires

were returned, which forms 100% of the sample. The main findings indicate that there the impact of after

sales in organizations.

TABLE OF CONTENTS
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Title Page i

Certification ii

Dedication iii

Acknowledgement iv

Abstract v

Table of Content vi-viii

CHAPTER ONE

INTRODUCTION

1.1 Background to the study 1

1.2 Statement of the problem 3

1.3 Objective of the study 3

1.4 Research Questions 3

1.5 Research Hypotheses 3

1.6 Significance of Study 4

1.7 Scope and limitation of the study 4

1.8 Historical Background of Thermocool Plc 4

1.9 Definition of Terms 6

References 10

CHAPTER TWO

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LITERATURE REVIEW

2.1 Conceptual Framework 9-18

2.2 Theoretical Framework 18-20

2.3 Empirical Framework 20-22

2.4 Summary of Chapter 22

References 23

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Restatement of Research Questions and Research Hypotheses 24

3.2 Research Design 24

3.3 Characteristics of the Study Population 25

3.4 Sampling Design and Procedure 25

3.5 Data Collection Methods 25

3.6 Description of Data Collection Instrument 26

3.8 Procedure for data analysis 26

CHAPTER FOUR

4.0 Data Analysis and Presentation 27

4.1 Respondents characteristics and classifications 27-30

4.3 Presentation and analysis of data according to research questions 30-34
4.4 Test of Hypotheses 35-38

CHAPTER FIVE

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5.0 Summary, Conclusion and Findings 39

5.1 Summary of Findings 39

5.2 Conclusion and recommendations 40

5.3 Limitations 40

5.4 Suggestions for Further Studies 40

Bibliography 41-42

Appendix I 43

Appendix II 44

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 CHAPTER ONE

INTRODUCTION
In this chapter, areas to be covered shall include, background of study, statement of problem,
objectives of the study, research questions, hypotheses, significance of the study, scope of the
study, limitation of the study, definition of terms and historical background of the company

1.1 BACKGROUND OF THE STUDY

After sales service has become an important marketing tool for the manufacturing industry
globally, Nigeria inclusive. A rapidly changing business environment, increased use of
technology, higher market competition, and higher potential profits in after sales service has
changed the way companies view after sales services (Mohammed, Mehmood & Mughal,
2011). It is no longer treated as a cost center, but instead, has become a major profit source
with profitability ranging up to 45% of corporaterevenues for many business environments
(Saccani, 2006).
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 the
customer, this interaction is formalized by a mutually agreed warranty orservice 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 maximize the value extracted by
customers over the entire product life cycle. Also in Kurata and Nam (2010), 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. It is on this note that this research

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paper wishes to investigate the impact of after sales service dimensions on customer satisfaction
and retention with special reference to Thermocool Plc.

The concept of services has been in practice since the nineteenth century. However, the
significance of quality after sales services, that is, delivery, installation, warranty and so on
(Hussain, Bhatti, Jilani 2011) are pertinent in almost every form of business organization. The
level of after sales activities employ by a business organization to a large extent determines
the level of profit margin to be made and the number of customer patronage. Koskela (2002)
is of the opinion that the importance of after sales service can be significant to customer
satisfaction, particularly in business-to-business environment leading to repeat customer
patronage. In other words, after sales services is an integral part of customer service and a key
determinant of customer satisfaction and also serves as a competitive tool in any industry
(Domingo, 2003).
Achieving organizational objectives requires that such organizational product meets the
required standard. That is, the better the quality of services rendered, the higher the numbers
of customer patronage. In today’s global village, after sales services continues to play
important role in products and services marketing. It is a pivot through which both the
customers and manufacturers achieve satisfaction. Manufacturers rely solely on consumer
satisfaction to maintain business and sales. Without a good after-sales support service, a
product can be difficult to sell.
Due to increased awareness of the strategic value of after sales services, firms are beginning
to shift focus to aftermarkets, where they can strive for competitive advantages with their
aftersales services offer (Jonke, 2012). In Thermocool plc, after sales services has also
witnessed vast change in Thermocoolproducts. ThermocoolCompany and Retail outlets
owners have all envisioned how after sales services tools such as delivery, installation and
warranty can be maximized positively to improve upon their businesses in the long run. By
definition, after sales services are services that are provided to customers after products have
been delivered (Vitasek,2005) as cited in (Fazlzadeh, Bagherzadeh &Mohamadi, 2011) In
other words, it maximizes the value experienced by customers over the entire product life

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 cycle (Gofin& New, 2001). It constitutes a means to uncover customer needs and a strategic
driver for customer retention (Fazlzadeh et al., 2011).

1.2 STATEMENT OF PROBLEM

Most manufacturers and distributors have neglected the important role of after sales services
despite the ever-increasing problems confronting them. Some of these problems include,
shrinking profit, stagnating revenues, and low customer patronage. Ladokun, Adeyemo, and
Ogunleye (2013), assert that in order to curb these problems after sales services delivery is
critical to satisfying customers’ needs and to ensure continual customers patronage and this
necessitated this research to determine direct effect of sales service on customer retention in
an electronic company.
1.3 OBJECTIVES OF THE STUDY.

The main objective of this study is to investigate the impact of after sales services on customer
retention with Thermocool plc. The following below are the specific objectives of this study;

1. To know the relationship between delivery and customer satisfaction.

2. To examine the effect of service and maintenance on Thermocoolprofitability index.
3. To know the relationship between warranty and guaranty on sales volume.

1.4 RESEARCH QUESTIONS

1. What is the relationship between delivery and customer satisfaction?
2. Is there any effect of service and maintenance on Thermocoolprofitability Index?
3. What is the relationship between warranty and guaranty on sales volume?

1.5 RESEARCH HYPOTHESES

H0: There is no relationship between delivery and customer satisfaction.
H1: There is a relationship between delivery and customer satisfaction.
H0: There is no effect of service and maintenance on Thermocool Plc Profitability Index.
H2: There is effect of service and maintenance on Thermocool Plc Profitability Index.

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 H0: There is no significant relationship between warranty and guaranty on sales volume.
H3: There is a significant relationship between warranty and guaranty on sales volume.

1.6 SIGNIFICANCE OF STUDY

This research work which focuses on impact of post sales services on customer patronagewill
be of great importance to marketers and other top level managers of the organisation who his
basically responsible for satisfaction of customers’ needs and organisational performance. It
will serve as an eye opener to firms on the related topic. The study will also be of great
importance to scholars who wants to further research on the impact of post sales service on
customer patronage

1.7 SCOPE OF THE STUDY

The study on the impact of post sales service on customer patronage is focused mainly on
manufacturing firms with reference to Thermocool plc as it does not engage other part of the
economy.

1.8 LIMITATION OF THE STUDY

Time and financial constraints are the major limitations to this research, more also; the world
pandemic (Covid -19) might be a barrier in retrieving adequate needed information from the
case study in view.

1.9 DEFINITION OF TERMS

 Customer Patronage: Customer patronage is defined as a person or thing that eats or uses
something or a person who buys goods and services for personal consumption or use
 Customers:A customer is an individual or business that purchases another company's goods
or services. Customers are important because they drive revenues; without them, businesses
have nothing to
 Delivery: To bring or transport to the proper place or recipient;
distribute: deliver groceries; deliver the mail.

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 Maintenance: The technical meaning of maintenance involves functional checks, servicing,
repairing or replacing of necessary devices, equipment, machinery, building infrastructure,
and supporting utilities in industrial, business, governmental, and residential installations
 Pratronage: is the support, encouragement, privilege, or financial aid that an organization or
individual bestows to another. The word "patron" derives from the Latin: patronus
("patron"), one who gives benefits to his clients (see Patronage in ancient Rome).
 Sales: encompasses all activities involved in selling a product or service to a consumer or
business. For businesses and their sales organizations, the goal of sales is to source prospects,
reach out and build a relationship with them, and provide a solution that will benefit the
prospect.
 Satisfaction: an act of satisfying; fulfilment; gratification. the state of being satisfied;
contentment the cause or means of being satisfied.
 Service:Service is defined as someone or something that is intended to provide help to those
providing assistance to others.

1.10 HISTORICAL BACKGROUND OF THERMOCOOL PLC.

The brand started out in Nigeria as Thermocool in 1971, they began the trading of fridges and
freezers from their retail shop in downtown Broad Street, Lagos. The brand became so
popular that almost every Nigerian home had a Thermocool fridge and freezer.In 1987,
Thermocool initiated the production of window air conditioners (whirlpool designs).
In 2001, there was a joint venture between PZ Cussons and Haier that gave birth to HPZ,
owner of Haier Thermocool, Nigeria's number 1 cooling appliance brand.
In 2002, they launched the supply of high-quality home entertainment products from Haier
Thermocool.
In 2005, Thermocool commenced the trading of affordable, reliable, small appliances
essential for the home including microwaves and cookers.
Year after year Haier Thermocool has been voted the Nigeria's number 1 and they refuse to
rest on their laurels and strive to bring their customers world class innovations and solutions
designed to challenge every known norm.

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For over 40 years, HaierThermocool history of making reliable and durable products is what
makes them stand out among other brands in Nigeria.
This brand produced high quality appliances that meets the daily needs of everyone. These
home appliances are designed to make everyday tasks easier and less time consuming giving
you peace of mind and more freedom to enjoy the important things in life.
Their award-winning products are now mainly in four categories which are home appliances,
sound and vision, energy and commercial products.
Their home appliance collection is the number one in the country built with superior high-
quality materials, innovative technology and also safe for the environment. They include air
conditioners, chest and upright Freezers, microwave, refrigerators, washing machine and
water dispensers.
Their high-quality water dispensers hygienically store drinking water and conveniently
provides you with instant hot for your morning coffee or chilled water during long hot days.
With amazing features like stainless steel hot water tank and ABS plastic materials that gives
you the assurance of drinking healthy water every day.
Haier Thermocool Water Dispensers.Their refrigerators come in various styles and design
that would accurately suit you and your specific needs in terms of size and features. Their
washing machines helps to relieve you of the physical effort of hand washing while giving
you perfectly cleaned clothes whenever you need them.
Their Sound and vision collection includes smart TVs with super-fast wireless connections,
USB and HDMI compatibility that would give your family the best of the entertainment
world. TVs with display sizes ranging from 32" to 75" with Full HD and Ultra 4K HD
resolutions that gives you the total cinematic experience.Their energy collection includes
super gas Generators that assure you of reliable and constant power supply and surge
protectors, voltage regulators and stabilizers that secure your electronic and electrical
equipment from damage.Haier Thermocool has a mission to enhance the lives of their
customers with quality, value and innovation and to bring peace of mind to the heart of your
home and so far in all their 40 years of existence they have kept true to their word.

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In the effort to help reduce power consumption and cut down the electricity bills of Nigerian
customers, HaierThermocool decided to introduce a new range of Refrigerators, Freezers and
Air conditioners to the Nigerian market.
These ranges of energy saving Refrigerators and Freezers have the ability to save up to 40%
on energy consumption while the Energy saving inverter DC technology Air Conditioner,
aptly named GENPAL can save up to 60% on energy consumption.
Reduced energy consumption would provide significant cost savings on electricity bills. You
get to enjoy high performance while saving so much money on maintenance and operational
cost.
This is one of the instances when you get to eat your cake and have it. High performance with
reduced power consumption at affordable prices. `
Haier Thermocool has a range of Environmentally Friendly Refrigerators that make of use of
CFC free refrigerants in the refrigeration cycle to cool the space.
These Environmentally Friendly Refrigerators and Freezer are not only beneficial to the
environment but also to you and your family.

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 REFERENCES
Adiele,K.C. Grend,M.D.& Chinedu, E.A. (2015), Physical evidence and customer patronage:
an empirical study of Nigeria Banking sector. British Journal of Economics,4(4)23-34.
Cohen MA, Agrawal N,& Agrawal V (2006), Winning in the aftermarket.Harv. Bus. Rev.,
84(5): 129–138.
Domingo, R.T. (2003), After sales service in banking. Business Management Articles.
Fazlzadeh, A., Bagherzadeh, F., & Mohamadi, P. (2011), How after-sales service quality
dimensions affect customer satisfaction. African Journal of Business Management,
5(17), 7658-7664.
Goffin, K., & New, C. (2001), Customer support and new product development. International
Journal of Operations & Production Management, 21(3), 275-301.
Hussain, N., Batti, W. A., & Jilani, A. (2011), An empirical analysis of after sales service and
customer satisfaction. Management & Marketing Challenges forthe Knowledge Society
6(4), 561-572.
Jonke, R. (2012), Managing after-sales services: Strategies and interfirm relationships
(Doctoral thesis). Retrieved from https://doi.org/10.3929/ethz-a-007307425
Koskela, H. (2002). Customer satisfaction and loyalty in after sales service: Modes of care in
telecommunications systems delivery (Doctoral thesis). Available from Helsinki
Kurata, H., & Nam, S.-H. (2010), After-sales service competition in a supply
chain:Optimization of customer satisfaction level or profit or both? International
Journal of Production Economics, 127(1), 136-146.
Muhammad, J.N (2011), Customer information driven after sales service management: Lesion
from spare parts logistics. PhD Thesis of Erasmus University Rotterdam.
Olive, R &Kallanberg R (2003).Managing the transaction from products to
service.International journal of service industry management, 14(2), 163 – 172.
Saccani, N., Johansson, P., & Perona, M. (2007). Configuring the after-sales service supply
chain: A multiple case study. International Journal of Production Economics, 110(1-
2), 52-69.

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 CHAPTER TWO

LITERATURE REVIEW

This chapter intends to systematically look deep into the impact of after sales services on
customer retention with the use of past literatures, journals, textbooks and internet relating to
the topic.

2.1 Conceptual Framework

2.1.1 Concept of after sales services

After sales services can be seen in different ways depending on one’s area of specialization.
For instance, it is referred to as after sales transaction (Domingo, 2014), customer support,
product support, technical support, and service (Jonke, 2015) irrespective of the synonyms,
aftersales continues to play vital role in every going concern business organization. The end
result of aftersales is that of rendering of services to customers after sales have been made.
Pettinger (2017) is of the opinion that after sales service refers to the treatment of customers
in the aftermath of a sale. It can be used to justify a higher price for a product. It also
influences the long-term reputation of the firm and also influences future sales. Vitasek
(2015) as cited in (Shaharudin, Omar, Hassan, & Anuar, 2014) asserts that after-sales service
is a service that has been given to the customer after products have been delivered. Kotler
(2014) as cited in Mustofa (2011) opine that selling process should go beyond the delivery of
goods and services and that there should be “follow – up”, step to ensure customers are
satisfied and which in turn will guarantee a repeat purchase to make sure that there was
proper delivery service, installation and so on. Fazlzadeh et al (2014) argued that after-sales
services appear to be exceptionally significant to the overall “product-mixture” provided by
manufacturers and retail companies, since they affect both the customers’ satisfaction and
their behavioural intentions.

Finally, (Pettinger, 2017) was of the opinion that after sales services add to the organization in
the following ways:

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(i) Helps improve firms long-term brand image and brand loyalty.
(ii) Helps to convince consumers to trust the firm and buy the service in the first place.
(iii) Good after sales service can make a difference in this era of social media i.e. (poor
after sales service can be damaging and subsequently bring down the reputation of
the organizations).

Hence, quality aftersales service among others is centred on installation, delivery time,
and warranty. It is a process that determines the overall quality customer service, which
leads to increase patronage.

Delivery and Customer patronage

Product delivery is essential for every enterprising organization. According to

Rigopoulou, Chaniotakis, Lymperopoulos &Siomkos (2018) as cited in Shaharudin,
Omar, Hassan, & Anuar (2017) delivery is a key to the after-sales service that has an
influence on the customer. It is often the first among the services offered after the sale. It
is the process where a company take upon itself to render a unique service of making a
customer products available in their door step. Choudhary, Akhter, Asif, Choudhary,
Siddique, & Mughal (2015) observe that delivery of the product, ensuring the right time,
and quantity is depended on factors, such as, speed and reliability. This simply means that
organizations should gear more effort towards timely after sales delivery in order to meet
up with set objectives.

In other words, without strategic organizational delivery plan, such an organization is

likened to a person who starts a journey without completing it (Rajesh & Uday, 2004) as
cited in Choudhary, Akhter, Asif, Choudhary, Siddique, & Mughal (2014).

In the words of Rigopoulou and Chaniotakis (2016) delivery service quality, is the quality
of all those activities that are related with the safe, reliable, timely correct transportation of
the goods from the store to customer’s premises. Activities which should be embodied
with delivery include; politeness, accuracy, flexibility and an overall customer-centred
behaviour.

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Installation and Customer patronage

Installation has been seen as one of the main components in after sales service that has a
strong hold on organizational buyers, little wonder did Rigopoulou, Chaniotakis,
Lymperopoulos &Siomkos (2008) as cited in Shaharudin, Omar, Hassan, & Anuar (2014)
observes that installation is a key to after-sales service which has the most influence on
customers. It is the process of fixing a newly bought product by a company. In other
words, it is the first component in the aftersales service Choudhary, Akhter, Asif,
Choudhary, Siddique, & Mughal (2014). The reason for this is not far-fetched, this is
because for any electrical product purchased the first thing a customer request is how to
install or coupled the product as the case may be. Rigopoulou and Chaniotakis (2016)
were of the opinion that installation as a service quality are those activities and behaviour
organization put in place to ensure proper phase of a product installation such as good
knowledge of the technical requirement, politeness, attention and so on.

Warranty and Customer patronage

The essence of product warranty is to provide safe landing for companies, especially given
the strict liability ‘‘held’’ rulings in the developed economies where manufacturers are
held liable for product defects, whether or not it follows reasonable research standard
(Berkowitz, Kerin, Hartley, &Rudelius 2000) as cited in (Oko & Eboh 2016). In other
words, warranty is shown to convince customers that the product is in good condition or
free from damage, a result of inaccuracy or used materials that are less well applicable for
a period of time (New Economics Education 2012). Warranty concept is also adopted by
companies to convinced customers of their product quality and their commitment to social
responsibilities which forms the basis for quality public relations campaign (Oko & Eboh
2013). A manufacturer or wholesaler pays more to ensure warranty objectives are carried
out effectively. That is, he tries by all means to ensure customers are satisfied throughout
the warranty period. Murthy, Solem, &Roren (2014) opine that a customer can be
dissatisfied when offered with a poor quality of warranty service, which may lead to
switching to a competitor brand or the organization losing potential customers. Ensuring
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that products gives required satisfaction is of essence to customers. A product that is
damage before the estimated warranty period, gives consumers highest form of
dissatisfaction. The idea behind warranty is that a firm is promising satisfaction, which
must be kept, and when this is not so, brings about dissatisfaction. Similarly, Jack &
Schouten (2000) as cited in (Shaharudin, Omar, Hassan, & Anuar, 2014) observes that
manufacturers should be willing to rectify all failures and damages occurring within the
warranty period. Hence, (Boulding & Kirmani, 1993), (Kotler & Keller, 2009) and (Stein,
2004) as cited in (Oko & Eboh, 2016) were also of the opinion that the longer and more
inclusive the warranty, the better the quality of product is assumed to be.

Direct Marketing

Brassington & Pettit (2019) opine that direct marketing is an interactive system of
marketing, using one or more advertising media to achieve measurable response
anywhere. Direct marketing is a form of advertising which allows businesses and
nonprofit organisations to communicate directly to customers through a variety of media
including cell phone text messaging, email, websites, online adverts, database marketing,
fliers, catalog distribution, promotional letters and television, newspaper and magazine
advertisements as well as outdoor advertising. .

Advertising

Kotler and Keller (2016) defined advertising as any paid form of non – personal
presentation and promotion of ideas, goods, or services by an identified sponsor.
Advertising can be a cost –effective way to disseminate message and to educate people.
(Salami, 2017). Siegel (2016) defines advertising as non personal persuasive marketing
communication mostly conveyed in the mass media and paid for by an identified sponsor
who controls the message.

Personal Selling

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Personal selling is a strategy that salespeople use to convince customers to purchase a
product. The salesman uses a personalized approach, tailored to meet the individual needs
of the customer is given the opportunity to ask questions, and the salespersons, and the
salesperson addresses any concerns he has about the product (Owomoyela et al, 2016).
Personal selling is where businesses use people (the sales force) to sell the product after
meeting face-to-face with customer.

After-sales service, satisfaction, and loyalty

Every organization is trying to differentiate itself in the market by providing value-added

services according to the customers’ needs and wants. After-sales services are essential to
satisfying and retaining the customers (Choudhary et al., 2014). The study of Rigopoulou,
Chaniotakis, Lymperopoulos, and Siomkos (2008) reported that quality of after-sales
service has a positive influence on perceived value, behavior intention, and customer
satisfaction. Aftersales service has discussed under two major perspectives in literature.
When it is referred to the service providing organizations, it is taken as one of the
supplementary services among some complementary services offered to the customer
(Oliva & Kallenberg, 2016). On the other hand;when it referred to the tangible goods, it is
treated as operative activities by a few or all distribution channels (Gaiardelli, Saccani,
&Songini, 2016). Such activities included; the product delivery, the installation, the
product warranty, the quick response of customer complaint, the product related help or
training, and the repairing service (Gaiardelli et al., 2006). After-Sales service is an
essential tool for winning customer loyalty (Nasir, Mushtaq, & Rizwan, 2014). A
company can create, maintain, and improve customer loyalty by providing excellent after-
sales services such as the quick response of customer complaint, replace the faulty good or
make a full refund in case of the customer is not happy with the products or service (Nasir
et al., 2014). Furthermore, Maintenance and repair are an essential element of after-sales
support or service (Loomba, 1996). One way to get quick customer response is to offer
loaner product, where possible, especially in the breakdown incident (Loomba, 2016).
Maintenance issues should be fixed before any fault take place (Fites, 1996). However, the

xxi
best approach for organizations is to have the facility of repair products (Lele &
Karmarkar, 2015). Upgradation is another crucial element of after-sales service or
customer support. It offers a chance for the customers to improve the performance of the
current product (Cespedes, 2015).

Online/telephone support is also the main characteristic of after-sales service in various

businesses nowadays. Product or service specialists give telephone/online support or
guideline to the customers (Armistead & Clark, 2014). Hence, whenever a problem
resolves online, the cost is too minor than the visit of a product or service specialist (i.e.,
an engineer or lineman) to the buyer location (Armistead & Clark, 2014).
Online/telephone help generally requires more in software-related-products (Armistead &
Clark, 2014).

For instance, many organizations have invested valuable assets in telephone/online centers
(i.e., Microsoft) (Dubashi, 2015). The primary objective of any firm is to satisfying its
existing customers and attracting potential customers. In this regard, after-sales service
activities are much contributed to customer satisfaction; it is given to the buyer by the
seller after selling the product or service (Murali et al., 2016).

The key to build a long-term relationship and enhance customer loyalty is to create
superior value for customers. It helps to improve customer loyalty (Yuen & Chan, 2010).

Aftersales service, personal interaction, problem-solving, and promotion activities have a

positive relationship with satisfaction and loyalty (Yuen & Chan, 2016). Also,
Maghsoudlou, Mehrani, and Azma (2014) found a significant correlation between after-
sales service and satisfaction. The quality of after-sales service is a crucial factor to
influence customer purchasing decision (Nemati, Khan, & Iftikhar, 2015). After sales
services are sometimes called “field service, “aftersales support,” “technical support,” or
only “service” (Agnihothri, Sivasubramaniam, & Simmons, 2002; Goffin & New, 2014;
Simmons, 2015).

The mediating role of customer satisfaction, and loyalty

xxii
Oliver (2017) proposed a customer satisfaction disconfirmation model, which is widely
used in marketing nowadays. It explains the difference between customer expectation and
real perception after consuming the product or service. Therefore, customer satisfaction is
considered one of the fundamental to enhance customer repurchase intention and to
establish a lifelong relationship with the customer in marketing. (Bai, Law, & Wen, 2018;
Erevelles& Leavitt, 2016; Kim, Ma, & Kim, 2016; Lee, Lee, Lee, & Babin, 2018;
McQuitty, Finn, & Wiley, 2014; Morgan, Attaway, & Griffin, 1996). In addition, after-
sales service also helps to build long-term relationship, to satisfy the customer, and get
loyalty (Yuen & Chan, 2016). Organizations can get many benefits from a satisfied
customer such as positive word-of-mouth (WOM) (Anderson, 1998). Zeithaml (2000)
identified superior quality service dimensions to improve the buyer-seller relationship and
their common objectives such as satisfaction, performance, and profit. Satisfaction is
considered antecedent of customer loyalty (Forgas, Moliner, Sánchez, & Palau, 2010).
Oliver (2017) has explained loyalty as “an extremely assurance of a liked product, brand,
or service to re-purchase, re-patronize, or continuously buy in the future.” Customers
perceived to be the most valuable asset of any organization and they play an important
role in organization success (Shahrouzifard& Faraji, 2016). If an organization wants to
enhance organization profit, customer retention, and loyalty, it should focus on to satisfy
their customers. Satisfaction will help to increase organization profit, customer retention,
and loyalty (Posselt & Gerstner, 2015). In order to maintain a steady growth and profit
level when the competition is exceptionally high, subscription level is too close to the
saturation point, and the market is mature, company should adopt a defensive strategy
rather than an aggressive to retain the existing customers, which help to expand the market
share (Ahmad & Buttle, 2002). Organizations that are struggling with loyalty should first
focus on satisfaction and perceived value (Yang & Peterson, 2004).

Customer satisfaction

Customer satisfaction largely depends on product features, price and aftermarket. Price,
mileage, pickup and design have significant effect on customer satisfaction of Honda at

xxiii
Tirupati (Yuvaraju and Rao, 2014, “Customer Satisfaction towards Honda Two Wheelers:
A case study in Tirupati”). Customers are satisfied with price, design, safety, mileage,
interior space, status, brand name, comfort level, spares and after sale service of Tata
motors passenger vehicles. Price was the most influencing and primary determinant,
mileage and interior space were considered to be secondary determinants. After sale
service were found to be less influencing (Dua and et.al, 2016). As per the research of
Ladokun, Adeyemo, and Ogunleye (2016), Product delivery; Installation and Warranty
were significantly joint predictors of customer satisfaction. Fuel Economy, Comfort, Spare
parts, Price, value for money, mileage, maintenance, radius and parking have significant
effect on customer satisfaction of Maruti Suzuki. Discounts, seasonal offers and delivery
period were considered

There are some factors of after sales services which influence consumer buying behaviour.
Economic spare parts have strong impact on consumer buying behaviour as compared to
easy availability of spare parts and easy availability of mechanic (Saeed and et.al, 2015,
“Impact of ‘After Sales Service’ on ‘Consumer Buying Behavior’ in Sahiwal Pakistan”).
Consumer buying decision also depends on demographic factor of the customer. Sales are
strongly correlated with age group and gender of the consumers whereas income level has
nothing to do with purchase decision of customers (Shaikh, 2014). Service dimensions are
one of the major determinants of customer satisfaction. In telecom sector of Pakistan,
service quality dimensions (like reliability, technical service, image, assurance etc) and
customer satisfaction have positive correlation (Sandhu and et.al, 2015), whereas in
China’s Auto industry fairness, empathy, reliability and convenience have significant
positive impact on satisfaction, but responsiveness has no significant positive impact on
satisfaction. However, trust has a significant positive impact on commitment (Gang and
Shuqin, 2012). Accepting attitude of the company, service personal attitude, increasing
processing speed, after sales service like maintenance, supply of spare parts, replacement
and most importantly, time to recover service etc will be helpful in after sales service
recovery (Fenghua, Xiaoye and Yuqing, 2017)SERVQUAL model is widely used in
measuring service quality. Five dimensions of SERVQUAL model: Tangibles, Reliability,
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Responsiveness, Assurance and Empathy, are analysed in terms of Expectation and
Perception and the gap range is analysed for the conclusion. In assessing the service
quality of bank in Lahore, Pakistan, it was found that banking institutions are exceeding
customer expectations in three dimensions i.e. “Tangibles”, “Reliability”
and“Responsiveness” and lacking in other two dimensions “Assurance” and “Empathy”
(Ilyas and et.al, 2018). Whereas survey in a local bank at Chittagong showed that it does
not have ability to exceed customer expectation in any of the SERVQUAL dimensions. In
fact, customers are highly dissatisfied in terms of Responsiveness (Tazreen, 2012).
Product quality and social responsibility are major variables affecting customer
satisfaction and customer satisfaction increases with better service delivery (Hussain, Batti
and Jilani, 2011) “An empirical analysis of after sales service and customer satisfaction”).
Service delivery is prime determinant of customer satisfaction. 50% vehicles were delayed
due to overload of service centre which causes customer dissatisfaction and that problem
can be solved by installing automated machines for washing and cleaning of vehicles and
working shift can also be managed Katarne and Sharma (2010).

Concept of customer patronage

Patronage delivers the foundation for an established and growing marketing share
(Simons, 2015). Customer can only patronize when expectation is equivalent to
performance. This is to say that, for a customer to patronize a product or service it must
possess certain qualities. Adiele, Grend, & Chinedu (2015) opine that an organization can
only relate well with its customers in order to achieve understanding and increased
patronage through service quality, service personnel and so on. Oumlil (2008) as cited in
(Shaharudin, Omar, Hassan, & Anuar, 2014) adds that consumers always believe that a
superior warranty will be associated with greater quality and less risk. That is, all warranty

xxv
 should be anchored on quality and not mere warranty. Lehtinen, Lehtinen, 1982; Bhatti,
Waris, Zaheer, Rehman (2014) as cited in (Hussain et al 2014) also observe that Service
quality is not a product manufactured in a plant which is delivered intact to the customers,
but involves human capital and the way the service staff delivers the service (Simons
2016).

2.3 THEORETICAL FRAMEWORK

2.3.1 Contingency Theory

According to Waiganjo (2012), in contingency theory, otherwise known as "best fit" human
resource management, there are no universal prescription of human resource policies and
practices. It is all contingent on the organization's context, culture and its business strategy.
Contingent scholars have argued that human resource strategy would be more effective only
when appropriately combined with a specific organizational and environment context. This
theory emphasized the relevance of ensuring that human resource strategies are appropriate to
the circumstances of the organization, including the culture, operational processes and
external environment. Human resource strategies have to take account of the particular needs
of both the organization and its people. It examines the close link between strategic
management and human resource management by assessing the extent to which there is
vertical integration between an organization's business strategy and its human resource
management policies and practices.

Wright, McMahan and McWilliams (2004), cited in Waiganjoet al. (2012), stated that vertical
integration between business or the objective of the business and individual behaviour and
ultimately individual, team and organizational performance is at the fore of core models of
human resource management. Inherent in most treatments of fit is the premise that
organizations are more efficient and effective when they achieve fit relative to when they
don't. This vertical integration or fit where leverage is achieved through policies, processes
and procedures is widely acknowledged to be a critical part of any approach to the
management of people. The beat fit therefore, ensures an explicit link of relationship between

xxvi
external market in business strategy and the internal people, processes and policies, and also
ensures that capabilities are created, which have a potential to be a key source of competitive
advantage (Wright, Gardner & Allen, 2005, cited in Waiganjoet al., 2012).

In contingency theory, resource management is not the ultimate factor that contributes to
improved performance; it has to be combined with other factors and the impact of human
resource practices in firm's performance is conditioned by an organization strategic structure.
A firm's approach to competitive depends on making use of talents and competence
organisational, then human resource practices would be more effective, otherwise the
connection between human resource and productivity might be reduced. According to Halim
and Alkhazali (2015), the criticism of contingency model is that, it tends to over simplify
organizational reality while trying to relate one dominant variable to the organization for
example, compete on innovation, quality or cost to another internal variable, they tend to
assume a linear, non-problematic relationship. Therefore, this theory is limited by the
impossibility of modeling all the contingent variables, the difficult of showing their
interconnection and the way in which changes in one variable have an effect on others. Boxal
and Purcell (2013), as cited in Halim and Alkhazali (2015) also emphasized the complexity of
mixing human resource and business strategy by stating the need to keep up with ongoing
environmental changes. Thus, model of external fit fails to recognize the needs of
organisational, more evident in highly competitive market, businesses cannot survive without
maintaining the pressures from social norms, labour laws and organisational’ interests.

Conclusively, an alignment of business and organisational needs is needed. The best fit
school also lacks emphasis on the internal context of individual businesses within the same
sector and the unique features and practices that may provide its main source of sustainable
competitive advantage.

2.3.2 Commitment-Trust Theory and the Nature of Commitment

Morgan and Hunt (1994) posit that business-to-business relationships require commitment
and trust. Their results imply that commitment and trust are key mediating variables to

xxvii
understanding the relationship development process between buyers and sellers.
According to the theory, consumer commitment to the vendor has been found to mediate
the effects of a number of variables such as quality, shared values, communication and
trust on a number of consumer behavioral intentions, including customer retention,
advocacy, and acquiescence. Trust serves as a governance mechanism that limits
opportunistic activities as well as a facilitating mechanism for developing commitment.
Commitment includes the desire to continue the relationship and work to ensure its term
orientation of a party toward a partner (Morgan and Hunt 1994). In this study, the theory
of commitment and trust is used to analyze business school and student patronage
relations in the universities, as this theory postulates a number of psychological factors
that may be important. Trust and shared values form the basis of scholl and students
relationships, especially in a competitive marketplace. Wilson (1994) suggest that
commitment and trust are central constructs in marketing relationships as they positively
influence cooperative behaviors.

2.3 EMPIRICAL FRAMEWORK

Ali, Syed, Asif,Choudhry, Siddique & Mughal(2014) Researcher examines the impact of
after sale service characteristics on customer satisfaction in home appliance industry of
Pakistan. To what extent does characteristics like delivery time, installation of product,
warranty time of product, feedback implementations and quality of service provided
satisfies customers? In this globalized market, organizations try to differentiate
themselves, so they tend to provide value added services to its customers; according their
needs and wants. After detail and extensive review of literature researcher found that after
sale service is essential in retaining and satisfying customers. Due to limited time,
quantitative study is not possible. Practically our study benefitted for the manager of the
organization that are mostly related to home appliances, so that they can check the
customers trend towards after sale services characteristics i.e. delivery, installation,
warranty, service quality and feedback.

xxviii
Enidom, Mojekeh&Nwaizugbo (2019) cited that The study examined the effect of
promotion strategies and customers patronage a study of business schools in south east
Nigeria. As a survey research design , a structured instrument developed by the researcher
to reflect such options as strongly agree, agree, disagree and strongly disagree popularly
refereed as four (4) point likert scale was used to obtained information from the
respondents. The population of the study comprised of 605 students of business school
from the selected universities. A sample size of 116 employees was drawn from the
population using Borg and gall’s formular of (1973) of which 98 copies of questionnaires
were duly completed and returned showing 96% response rate. Research hypotheses were
tested using Analysis of variance (ANOVA) which was carried out with the aid of
Statistical Package for Social Science (SPSS) version 23. Findings from the study show
that Sales promotion has significant effect on customer patronage in Business Schools in
south east. Direct marketing have significant effect on consumer’s patronage of Business
Schools in south east. Advertising does not have significant effect on students’ patronage
of Business Schools in south east In view of the findings, the study recommended that that
in order to achieve the objectives of developing favourable association as well as to
impress customers a suitable strategy should be designed to promote the image of the
particular business. Direct marketing as a tool of communication should be explore and
properly entrenched in all areas of operation of the business school to increase the
student’s enrolment. There is need to determine advertising spending through the
preparation of advertising budget. This can be based on advertising objectives which
include increasing sales volume, informing customers of a new product or creating
awareness of an old or new product in the mind of the consumers and customers.

Ibojo (2015) also said that this paper examined the impact of customer satisfaction on
customer retention. The objectives were: to determine the relationship between customer
satisfaction and customer retention, and to examine the impact of customer satisfaction on
customer retention. Survey research design was adopted for this study. Primary and
secondary sources of data were used. The primary data includes a structured questionnaire
used to elicit information from the target respondents who were customers of the reputable
xxix
bank in oyo while the secondary data encompass the use of related materials, journals and
periodicals. Anova and t-statistics were used to test the hypothesis while regression
analysis was used to analyzed the data. The findings show the R2 value of 0.717 which
reveals that customer satisfaction independently accounts for 71.7% of the variation in
customer retention. The f-statistics of 41.173 reveals that the model is statistically
significant at 0.05 significant level. It was concluded that the effective satisfaction of
customers will give room for customer retention. More so, there is a significant
relationship between customer satisfaction and customer retention.

Ladokun, Adeyemo & Ogunleye (2013) cited that This study examined the impact of after
sales service on customer satisfaction and retention with special reference to LG
electronics in Ibadan, Nigeria. The population of the study covered selected distributors
and customers of LG Electronics in Ibadan.The sample size for this study was sixty (60)
respondents who were randomly selected from ten (10) LG electronics distributors and
fifty (50) of their customers respectively. The instrument used in this study is a close-
ended questionnaire that was designed by the researchers.Ordinary least squares multiple
regression analysis was used to analyze the data. The result showed that the predictor
variables (i.e Product delivery, installation and warranty) were significantly joint
predictors of customer satisfaction and retentionwith( F( 3, 57) = 123.32; R2 = 0.875; P .

2.4 SUMMARY OF THE CHAPTER

This chapter contains the conceptual framework which explained more on the impact of
post sales service on customer patronage. Then i proceeded to the theoretical framework
where we discussed on some theories on post sales services. Then i proceeded to the
empirical framework were I discussed some past research works of some authors.

xxx
 REFERENCE

Brassington,P.,& Pettit A. (2019).Research Methods for Business Students. (2nd ed.). Essex:
Pearson Education Limited.

Choudhary, A.I., Akhter, S.A., Asif, M., Choudhary, R.M., Siddique, Z., & Mughal, A.
(2011). Impact of after sales service characteristics on customer satisfaction.
Information Management and Business Review, 3(6), 360-365.

Domingo, R.T. (2014). After sales service in banking. Business Management Articles.
Retrieved from: http://www.rtdonline.com/BMA/BSM/15.html

Fazlzadeh, A., Bagherzadeh, F., & Mohamadi, P. (2014). How after-sales service quality
dimensions affect customer satisfaction. African Journal of Business Management,
5(17), 7658-7664.

Goffin, K., & New, C. (2014).Customer support and new product development.
InternationalJournal of Operations & Production Management, 21(3), 275-301.

Hassan, N. Bhatti, W.A, Annuar, A. (2014). An empirical analysis of after sales service and
customer satisfaction. Journal of Management and Marketing, 6(4), 561-572.

Jonke, R. (2015). Managing after-sales services: Strategies and interfirm relationships

(Doctoral thesis). Retrieved from https://doi.org/10.3929/ethz-a-007307425

Kotler, P. (2016). Marketing management: Analysis, planning, implementation and control

(8th ed). Englewood Cliffs, NJ: Prentice-Hall Inc

Ladokun, I.O., Adeyemo, S.A., Ogunleye, P.O., (2016). Impact of after sales services on
customer satisfaction and retention: A study of LG electronics in Ibadan Nigeria.
Journal of Business and Management, 11 (4), 54-58.

Olive, R and Kallanberg R (2017).Managing the transaction from products to

service.International journal of service industry management. 14(2), 163 – 172.

Pettinger, T. (2017). After sales services [web log post]. Retrieved from
https://www.economicshelp.org/blog/glossary/after-sales-service/

Simons, M. (2016). The impact of customer service on customer patronage in banking- The
immediate effect if ICT adoption (Master of Science thesis). Available from Kwame
Nkrumah University of Science and Technology.

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Yuen, E. F., & Chan, S. S. (2014). The effect of retail service quality and product quality on
customer loyalty. Journal of Database Marketing & Customer Strategy Management,
17(3- 4), 222-240.

CHAPTER THREE

RESEARCH METHODOLOGY

This chapter details the research methodology with emphasis on research design,
characteristics of the study population, sampling design and procedure, description of
research instrument, validation of research instrument, statistical analysis and procedure,
limitation of methodology and coding procedure.

3.1 Re-statement of Research Questions and Hypothesis

3.1.1 Research Questions

i. What is the relationship between delivery and customer satisfaction?

ii. Is there any effect of service and maintenance on Thermocool profitability Index?
iii. What is the relationship between warranty and guaranty on sales volume?
3.1.2 Research Hypotheses
H0: There is no relationship between delivery and customer satisfaction.
H1: There is a relationship between delivery and customer satisfaction.
H0: There is no effect of service and maintenance on Thermocool Plc Profitability Index.
H2: There is effect of service and maintenance on Thermocool Plc Profitability Index.
H0: There is no significant relationship between warranty and guaranty on sales volume.
H3: There is a significant relationship between warranty and guaranty on sales volume.
3.2 Research Design

Research design is a systematic plan for collecting data in order to provide answers to specific
questions. It is a plan, structure and strategy of investigation which guides the collection and
xxxii
analysis of data in a piece of research (Fagbohungbe, 2006). The design for this study was a
survey method so as to uncover the impact of post sales service on customer patronage
through the administration of questionnaires, in order to provide this broad capability, which
ensures a more accurate sample to gather targeted results in which to draw conclusions and
make important decisions.

xxxiii
3.3 Characteristics of the Study Population

The study was centered on Thermocool Plc. as a study; in which the staffs of the
organisations are about (300) permanent staffs. However, the target population of the study
organization was hundred (100) respondents which were made of the staffs of Thermocool
Plc.

3.4 Sampling Design and Procedure

The target population for this research is the case study company under review which the
study focused on. From the organisation, a convenient random sample of 100 respondents
was drawn from various levels of staff, which includes the manager and other subordinates in
which the questionnaires were administered to gather adequate needed information.

3.5 Data Collection Methods

Well-structured questionnaires were used for the collection of data in this study. This was
employed by the researcher in order to minimize the problems associated with the collection
of data.

 Primary data
The primary data will be collected by use of a questionnaire whereby one
questionnaire will be given to staffs of Thermocool Plc to generate both qualitative and
quantitative data. A five-point Likert rating scale will be used to measure all variables.
The lowest rating of 1 will signify a low opinion by the respondents while a high rating
of 5 will signify a high rating by the respondent.

 Secondary data
These are the data that has been used elsewhere in other studies. The secondary data
includes the review of the organisation’s documents, books of accounts, reports and
manuals. It will also include information collected from Government reports, internet
and other forms of documented data whose source can be verified.

xxxiv
3.6 Description of Data Collection Instrument

The data for this paper work was collected by means of questionnaire administered by
respondents (staff) of Thermocool Plc.

A five point Likert rating scale was used to measure all variables. The lowest rating of (SD)
signified a low opinion by the respondents while a high rating of (SA) signified a
high rating by the respondent.

3.7 Procedure for Data Analysis

Responses from the questionnaires were analyzed using simple percentage method and
inferential statistics to explain the relationship between study variables. Specifically,
correlation coefficient was used to determine the relationship between variables x and y. The
formula for correlation(r) is presented below:

R = N∑XY-(∑X) (∑Y)

(N∑X2- (∑X)2) (N∑Y2- (∑Y)2)

3.8 Limitation of the Methodology

Research of its nature is bound to have some limitations; gathering data pose a lot of problem
to the researcher as a result of negative attitude of respondents towards answering the
designed questionnaire, yet the result was achieved through same process (questionnaire
administration).

xxxv
 CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
This chapter deals with the critical analysis and presentation of the data gathered in the course
of study.
In accordance with the sample size computed in chapter three, 100 questionnaires were
distributed to staff of Thermocool Plc. and all questionnaires were returned.

4.1 RESPONDENTS CHARACTERISTICS AND CLASSIFICATIONS

TABLE 4.2.1: SEX
Variables No of Response Percentage(%)
Male 40 40
Female 60 60
Total 100 100
Source: Field Survey, 2021
From the above table, 40 respondents representing (40%) were male, and 60 respondents
representing (60%) were female. Hence, majority of the respondents were male.
TABLE 4.1.2 AGE
Variables No of Response Percentage(%)
Below 20 22 22
20-30 64 64
31-40 10 10
41-50 2 2
51-60 0 0
61 % Above 2 2
Total 100 100
Source: Field Survey, 2021
From the above table, 22 respondents representing (22%) were below 20 years, 64 respondents
representing (64%) were between 20-30 years, 10 respondents representing (10%) were
between 31-40 years, 2 respondents representing (2%) were between 41-100 years, 0
respondents representing (0%) were between 51-60 years, and 2 respondents representing (2%)
were between 61 years and above. Hence, majority of the respondents were between 20-30
years.

xxxvi
xxxvii
TABLE 4.1.3: MARITAL STATUS
Variables No of Response Percentage(%)
Single 68 68
Married 26 26
Divorced 2 2
Others 4 4
Total 100 100
Source: Field Survey, 2021
From the above table, 68 respondents representing (68%) single, 26 respondents representing
(26%) were married, 2 respondents representing (2%) were divorced, 4 respondents
representing (4%) were others. Hence, majority of the respondents were single.

TABLE 4.1.4: EDUCATIONAL QUALIFICATION

Variables No of Response Percentage(%)
SSCE 34 34
NCE/ND 48 48
HND/ND 18 18
MA/MSC 0 0
Total 100 100
Source: Field Survey, 2021
From the above table, 34 respondents representing (34%) were SSCE holder, 48 respondents
representing (48%) were NCE/ND holder, 18 respondents representing (18%) were HND/ND
holder, 0 respondents representing (0%) and were MA/MSC holder. Hence, majority of the
respondents were NCE/ND holder.
TABLE 4.1.5: YEARS IN ORGANIZATION
Variables No of Response Percentage(%)
Less than 1 40 40
1-5 44 44
6-10 10 10
11-15 2 2
16 &Above 4 4
Total 100 100
Source: Field Survey, 2021
From the above table, 40 respondents representing (40%) were less than 1 year, 44 respondents
representing (44%) were between 1-5 years, 10 respondents representing (10%) were between

xxxviii
 6-10 years, 2 respondents representing (2%) were between 11-15 years, and 4 respondents
representing (4%) were 16 years and above. Hence, majority of the respondents were between
1-5 years.

4.2 PRESENTATION AND ANALYSIS OF DATA ACCORDING TO RESEARCH

QUESTIONS
TABLE 4.2.1:My organization do repair and maintenance of their product
Variables No of Response Percentage (%)
SA 78 78
A 18 18
U 0 0
D 0 0
SD 4 4
Total 100 100
Source: Field Survey, 2021
From the above table, 78 respondents representing (78%) strongly agreed, 18 respondents
representing (18%) agreed. 0 respondents representing (0%) undecided, 0 respondents
representing (0%) disagreed, and 4 respondents representing (4%) strongly disagreed. Hence,
majority of the respondents strongly agree on the above statement.

TABLE 4.2.2: We deliver our products to our customers doorsteps

Variables No of Response Percentage (%)
SA 44 44
A 44 44
U 4 4
D 4 4
SD 4 4
Total 100 100
Source: Field Survey, 2021
From the above table, 44 respondents representing (44%) strongly agreed, 44 respondents
representing (44%) agreed, 4 respondents representing (4%) undecided, 4 respondents
representing (4%) disagreed, and 4 respondents representing (4%) strongly disagreed on the
above statement

xxxix
TABLE 4.2.3: We attend to our customer even after sales
Variables No of Response Percentage (%)
SA 32 32
A 50 50
U 12 12
D 4 4
SD 2 2
Total 100 100
Source: Field Survey, 2021
From the above table, 32 respondents representing (32%) strongly agreed, 50 respondents
representing (100%) agreed, 12 respondents representing (12%) undecided, 4 respondents
representing (4) disagreed, and 2 respondents representing (2%) strongly disagree. Hence,
majority of the respondents strongly agree on the above statement.

TABLE 4.2.4: Our organization has warranty on our product.

Variables No of Response Percentage (%)
SA 46 46
A 40 40
U 8 8
D 2 2
SD 4 4
Total 100 100
Source: Field Survey, 2021
From the above table, 46 respondents representing (46%) strongly agreed, 40 respondents
representing (40%) agree, 8 respondents representing (8%) undecided, 2 respondents

xl
representing (2%) disagreed, and 4 respondents representing (4%) strongly disagree. Hence,
majority of the respondents strongly agreed on the above statement

TABLE 4.2.5: We have 24 hours mobile van to serve our customers.

Variables No of Response Percentage (%)
SA 34 34
A 44 44
U 12 12
D 6 6
SD 4 4
Total 100 100
Source: Field Survey, 2021
From the above table, 34 respondents representing (34%) strongly agreed, 44 respondents
representing (44%) agreed, 12 respondents representing (12%) undecided, 6 respondents
representing (6%) disagreed, and 4 respondents representing (4%) strongly disagreed. Hence,
majority of the respondents strongly agreed on the above statement.

TABLE 4.2.6: Our organization is highly concerned about customer feedback.

Variables No of Response Percentage (%)
SA 24 24
A 26 26
U 28 28
D 18 18
SD 4 4
Total 100 100
Source: Field Survey, 2021

xli
From the above table, 24 respondents representing (24%) strongly agreed, 26 respondents
representing (26%) agreed, 14 respondents representing (28%) undecided, 18 respondents
representing (18%) disagreed, and 4 respondents representing (4%) strongly disagree. Hence,
majority of the respondents strongly agreed on the above statement.

xlii
TABLE 4.2.7: We give hears to our customer complaints.

Variables No of Response Percentage (%)

SA 68 68
A 20 20
U 4 4
D 2 2
SD 6 6
Total 100 100

Source: Field Survey, 2021

From the above table, 68 respondents representing (68%) strongly agreed, 20 respondents
representing (20%) agreed, 4 respondents representing (4%) undecided, 2 respondents
representing (2%) disagree, and 4 respondents representing (4%) strongly disagree. Hence,
majority of the respondents strongly agreed on the above statement.

TABLE 4.2.8: Through post sales service we get customer loyalty.

Variables No of Response Percentage (%)
SA 42 42
A 40 40
U 2 2
D 10 10
SD 6 6
Total 100 100
Source: Field Survey, 2021
From the above table, 42 respondents representing (42%) strongly agreed, 40 respondents
representing (40%) agreed, 2 respondents representing (2%) undecided, 10 respondents
representing (10%) disagree, and 6 respondents representing (6%) strongly disagree. Hence,
majority of the respondents strongly agreed on the above statement.

xliii
TABLE 4.2.9:Post sales service has increase the reputation of our organization over the years.
Variables No of Response Percentage (%)
SA 52 52
A 30 30
U 8 8
D 6 6
SD 4 4
Total 100 100
Source: Field Survey, 2021
From the above table, 52 respondents representing (52%) strongly agreed, 30 respondents
representing (30%) agreed, 8 respondents representing (8%) undecided, 6 respondents
representing (6%) disagreed, and 4 respondents representing (4%) strongly disagreed. Hence,
majority of the respondents strongly agreed on the above statement.

TABLE 4.2.10: After sales service affects customer patronage in my organization.

Variables No of Response Percentage (%)
SA 24 24
A 36 36
U 30 30
D 4 4
SD 6 6
Total 100 100
Source: Field Survey, 2021
From the above table, 24 respondents representing (24%) strongly agreed, 36 respondents
representing (26%) agree, 30 respondents representing (30%) undecided, 4 respondents
representing (4%) disagreed, and 6 respondents representing (6%) strongly disagree. Hence,
majority of the respondents strongly agreed on the above statement.

xliv
4.3 TEST OF HYPOTHENSES
H0: There is no relationship between delivery and customer satisfaction.
H1: There is a relationship between delivery and customer satisfaction.
Using table 4.2.1: My organization do repair and maintenance of their product.
Variables No of Response Percentage (%)
SA 78 78
A 18 18
U 0 0
D 0 0
SD 4 4
Total 100 100

2 2
VARIABLE O E O-E (O−E) (O−E)
E
SA 78 20 58 3364 168.2
A 18 20 -2 4 0.2
U 0 20 -20 400 20
D 0 20 -20 400 20
SD 4 20 -16 256 12.8
Total 100 201.2

100
E(Expected Frequency) = = 20
5
2
X Calculated = 201.2
Degree of Freedom = (r-1)(c-1) = (5-1)(2-1)
DF = 4
At 5% level of significance
X 2 t (0.05) = 9.488

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DECISION RULE
Since the calculated value is higher than the table value (i.e, x 2 calculated > x 2 tabulated), reject
H0 which states that t there is no relationship between delivery and customer satisfaction and
accept Hi suggesting that there is a relationship between delivery and customer satisfaction.

Hypothesis 2
H0: There is no effect of service and maintenance on Thermocool Plc Profitability Index.
H2: There is effect of service and maintenance on ThermocoolPlc Profitability Index.

Using TABLE 4.2.5: We have 24 hours mobile van to serve our customers.
Variables No of Response Percentage (%)
SA 34 34
A 44 44
U 12 12
D 6 6
SD 4 4
Total 100 100
Source: Field Survey, 2021

2 2
VARIABLE O E O-E (O−E) (O−E)
E
SA 34 20 14 196 9.8
A 44 20 24 576 28.8
U 12 20 -8 64 3.2
D 6 20 -14 196 9.8
SD 4 20 -16 256 12.8
Total 100 64.4

100
E(Expected Frequency) = = 20
5

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 2
X Calculated = 64.4
Degree of Freedom = (r-1)(c-1) = (5-1)(2-1)
DF = 4
At 5% level of significance
2
X t (0.05) = 9.488

DECISION RULE
Since the calculated value is higher than the table value (i.e, x 2 calculated > x 2 tabulated), reject
H0 which states that there is no effect of service and maintenance on PZ Profitability Index
and accept Hi suggesting that there is effect of service and maintenance on PZ Profitability
Index.

HYPOTHESIS 3

H0: There is no significant relationship between warranty and guaranty on sales volume.
H3: There is a significant relationship between warranty and guaranty on sales volume.

Using TABLE 4.2.10: Post sales service affects customer patronage in my organization.
Variables No of Response Percentage (%)
SA 24 24
A 36 36
U 30 30
D 4 4
SD 6 6
Total 100 100
Source: Field Survey, 2021

2 2
VARIABLE O E O-E (O−E) (O−E)
E
SA 24 20 4 16 0.8
A 36 20 16 256 12.8
U 30 20 10 100 5

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 D 4 20 -16 256 12.8
SD 6 20 -14 196 9.8
Total 100 41.2

100
E(Expected Frequency) = = 20
5
2
X Calculated = 41.2
Degree of Freedom = (r-1)(c-1) = (5-1)(2-1)
DF = 4
At 5% level of significance
X 2 t (0.05) = 9.488

DECISION RULE
Since the calculated value is higher than the table value (i.e, x 2 calculated > x 2 tabulated),
reject H0 which states that there is no significant relationship between warranty and guaranty
on sales volume and accept Hi suggesting that there is a significant relationship between
warranty and guaranty on sales volume.

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 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 SUMMARY OF FINDINGS

This study on “The Impact of After Sales Services on Customer Retention .” has been able to give
an in depth analysis of the need and the impact of low job satisfaction on an organisation as a
whole.

However, chapter one of the study highlight the description of the study, statement of the
problem, objective of the study, research questions, research hypothesis, scope and limitation
of the study, significance of the study, definition of terms, and the historical background of
Thermocool Plc which was chosen as the case study for this project.

Meanwhile, chapter two of the study gives an empirical review of past literature on the topical
research that is “The Impact of after Sales Services on Customer Retention”.

More so, chapter three of the study is based on the research methodology which attempts to
determine the procedure used in conducting the research work. The procedures are to enable
the research and examine the research questions. The methods used in the study for obtaining
information are from primary and secondary sources as well as the administration of
questionnaire.

This chapter also examines the characteristics of the population, sampling design and
procedure, description of research instrument, validation of research instrument, statistical
analysis and procedure as well as the limitation of the methodology.

Furthermore, the chapter four of the study focuses on the data analysis and presentation. All
data gathered through the administered questionnaire was presented analysed. Also, this
chapter focuses on the characteristics of the respondents, the data analysis of individual
questions, testing of hypothesis and discussion of findings. During the course of the research,
the following findings were revealed.

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 i. There is a relationship between delivery and customer satisfaction.
ii. There is effect of service and maintenance on Thermocool Plc Profitability Index.
iii. There is a significant relationship between warranty and guaranty on sales volume.

5.2 CONCLUSIONS BASED ON FINDINGS

After sales service has become an important marketing tool for the manufacturing industry
globally, Nigeria inclusive. A rapidly changing business environment, increased use of
technology, higher market competition, and higher potential profits in after sales service has
changed the way companies view after sales services

5.3 RECOMMENDATIONS BASED ON CONCLUSIONS

 Organisations should develop a clear understanding of the trend of after sales services
to customers and also to enlighten its customers in adapting to the advancement.
 Marketers should learn how to please customers and learn customer behaviour on after
sales services.
 Marketers should study the behaviour of customers in order to know if there are other
problems with the customers in his buying life.

5.4 SUGGESTIONS FOR FURTHER STUDIES

This research work was limited to the use of journals and text-books only. It did not take into
consideration of using other sources i.e. internet

Another limitation was time constraint and financial and time constraint which delayed the
completion of this project work.

For further study of this research topic, I suggest that the researcher should put into
considerate on the following:

 The researcher should try as much as possible to avoid time constraint. He/she should
start early in gathering information needed from all relevant sources such as journals,
textbook, internet, etc. to aid his/her research.

l
 Avoid financial constraint that might limit the source of information and materials
needed such as journals, as well as transportation and incurable expenses toward
achieving quality research work. The researcher should source for financial assistance
as early as possible before embarking upon the project.

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 BIBLIOGRAPHY

Adiele,K.C. Grend,M.D.& Chinedu, E.A. (2015), Physical evidence and customer patronage:
an empirical study of Nigeria Banking sector. British Journal of Economics,4(4)23-34.
Brassington,P.,& Pettit A. (2019).Research Methods for Business Students. (2nd ed.). Essex:
Pearson Education Limited.

Choudhary, A.I., Akhter, S.A., Asif, M., Choudhary, R.M., Siddique, Z., & Mughal, A.
(2011). Impact of after sales service characteristics on customer satisfaction.
Information Management and Business Review, 3(6), 360-365.

Cohen MA, Agrawal N,& Agrawal V (2006), Winning in the aftermarket.Harv. Bus. Rev.,
84(5): 129–138.
Domingo, R.T. (2003), After sales service in banking. Business Management Articles.
Domingo, R.T. (2014). After sales service in banking. Business Management Articles.
Retrieved from: http://www.rtdonline.com/BMA/BSM/15.html

Fazlzadeh, A., Bagherzadeh, F., & Mohamadi, P. (2014). How after-sales service quality
dimensions affect customer satisfaction. African Journal of Business Management,
5(17), 7658-7664.

Goffin, K., & New, C. (2001), Customer support and new product development. International
Journal of Operations & Production Management, 21(3), 275-301.
Hassan, N. Bhatti, W.A, Annuar, A. (2014). An empirical analysis of after sales service and
customer satisfaction. Journal of Management and Marketing, 6(4), 561-572.

Hussain, N., Batti, W. A., & Jilani, A. (2011), An empirical analysis of after sales service and
customer satisfaction. Management & Marketing Challenges forthe Knowledge Society
6(4), 561-572.

Jonke, R. (2012), Managing after-sales services: Strategies and interfirm relationships

(Doctoral thesis). Retrieved from https://doi.org/10.3929/ethz-a-007307425
Koskela, H. (2002). Customer satisfaction and loyalty in after sales service: Modes of care in
telecommunications systems delivery (Doctoral thesis). Available from Helsinki
Kotler, P. (2016). Marketing management: Analysis, planning, implementation and control
(8th ed). Englewood Cliffs, NJ: Prentice-Hall Inc

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Kurata, H., & Nam, S.-H. (2010), After-sales service competition in a supply
chain:Optimization of customer satisfaction level or profit or both? International
Journal of Production Economics, 127(1), 136-146.
Ladokun, I.O., Adeyemo, S.A., Ogunleye, P.O., (2016). Impact of after sales services on
customer satisfaction and retention: A study of LG electronics in Ibadan Nigeria.
Journal of Business and Management, 11 (4), 54-58.

Muhammad, J.N (2011), Customer information driven after sales service management: Lesion
from spare parts logistics. PhD Thesis of Erasmus University Rotterdam.
Olive, R &Kallanberg R (2003).Managing the transaction from products to
service.International journal of service industry management, 14 (2), 163 – 172.
Pettinger, T. (2017). After sales services [web log post]. Retrieved from
https://www.economicshelp.org/blog/glossary/after-sales-service/

Saccani, N., Johansson, P., & Perona, M. (2007). Configuring the after-sales service supply
chain: A multiple case study. International Journal of Production Economics, 110(1-
2), 52-69.
Simons, M. (2016). The impact of customer service on customer patronage in banking- The
immediate effect if ICT adoption (Master of Science thesis). Available from Kwame
Nkrumah University of Science and Technology.

Yuen, E. F., & Chan, S. S. (2014). The effect of retail service quality and product quality on
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17(3- 4), 222-240.

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 APPENDIX I

DEPARTMENT OF MARKETING

FACULTY OF MANAGEMENT SCIENCE

OSUN STATE COLLEGE OF TECHNOLOGY

ESA OKE
.
Dear Respondent,

REQUEST TO COMPLETE QUESTIONNAIRE

I am a final year NATONAL DIPLOMA student of the above mentioned institution. In partial
fulfilment of the requirement for the award of National Diploma in Marketing, I am conducting a
research on “THE IMPACT OF AFTER SALES SERVICES ON CUSTOMER RETENTION”
(A STUDY OF THERMOCOOL PLC)

I will be very grateful if you could spare me a bit of your time to complete the questionnaire.

I hereby solicit for your cooperation in carrying out this exercise. Your responses shall be kept
confidential and used only for the research.

Thanks for your anticipated cooperation.

Yours Faithfully.

FAYEMI B. O.

2022410013
Researcher

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 APPENDIX II

SECTION A

1. Gender: Male ( ) Female ( )

2. Age: 18-20 ( ) 21-30 ( ) 31-40 ( ) 41-50 ( ) 51-60 ( )
61& above ( )
3. Marital Status: Single ( ) Married ( ) Divorced ( ) Others ( )
4. Educational qualification: SSCE ( ) NCE/ND ( )
HND/BSC ( ) MA/MSC ( )
5. Years in Organization: Less than 1 ( ) 1-5 ( ) 6-10 ( ) 11-15 ( ) 16
& above ( )
SECTION B
Indicate your level of agreement to the following statements below, kindly indicate if you
Strongly Agree (SA), Agree (A), Undecided (U), Disagree (D), Strongly Disagree (SD).

S/ Statement SA A U D SD
N

1 My organization do repair and maintenance of their

product
2 We deliver our products to our customers doorsteps

3 We attend to our customer even after sales

4 Our organization has warranty on our product

5 We have 24 hours mobile van to serve our

customers.
6 Our organization is highly concerned about customer
feedback.
7 We give hears to our customer complaints

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8 Through After sales service we get customer loyalty

9 After sales service has increase the reputation of our

organization over the years
10 After sales service affects customer patronage in my
organization.

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