anshul narula-2

DISSERTATIONS REPORT

STUDY OF READINESS OF AFTER SALES SERVICE OF LUXURY CARS TO ALIGN WITH ITS 2020 PERSPECTIVE IN DELHI

Submitted by

Anshul NarulaA0102214102

MBA Class of 2016

Under the Supervision of

Dr. Sumeet Singh Jasial

Assistant Professor

Department (Operations)

In Partial Fulfillment of the Requirements for the Degree of Master of Business Administration (Marketing & Sales)

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

DECLARATION

The title of Dissertation Report is study of readiness of after sales service of luxury cars

to align with its 2020 perspective in Delhi.

I declare that (a) the work presented for assessment in this Dissertation Report is my

original work, that it has not previously been presented for any other assessment and that

my debts (for words, data, arguments and ideas) have been appropriately acknowledged;

(b) work conforms to the guidelines laid by the University, and (c) Plagiarism for this

report has been checked using turnitin software and is 9 %. The summary of report is

attached along with for reference.

Date: …………… Anshul Narula

A0102214102

MBA – M&S

(Class of 2016)

ii

CERTIFICATE

This is to certify that Anshul Narula student of Masters of Business Administration –

M&S at Amity Business School, Amity University Uttar Pradesh has completed the

Dissertation Report on “study of readiness of after sales service of luxury cars to align

with its 2020 perspective in Delhi”, in Partial Fulfillment of the Requirements for the

Degree of Master of Business Administration – Marketing & Sales under my guidance.

The report has been checked for the plagiarism and it is acceptable.

Dr. Sumeet Singh Jasial

Assistant Professor

Department (Operations)

LETTER OF ACKNOWLEDGEMENT

iii

Dear Readers,

I am extremely thankful to my mentor and guide Dr. Sumeet Singh Jasial for her constant support, encouragement and guidance, without which I could not have successfully completed my project on the subject of ‘Study off readiness of after sales service of luxury cars to align with its 2020 perspective in Delhi’. I would also like to thank all the participants of the research, my family& friends and of course fellows who spared their valuable time to help me and provided us the guidance to finally come up with this report. I will seek my continuous assistance and support in future.

Sincerely,

Anshul Narula

MBA-Marketing & sales (2014-2016)

A0102214102

Table of Contents

iv

ContentsChapter 1: Introduction........................................................................................................1

1.1 Introduction................................................................................................................1

1.2 After Sales Service in the Automobile Industry........................................................2

1.2.1 Suppliers of the automobile.................................................................................2

1.2.2 Producers of the automobiles..............................................................................3

1.2.3 Dealers of the automobiles..................................................................................3

1.2.4 Buyers of the automobile....................................................................................3

1.3 Problem Statement.....................................................................................................4

Chapter 2: Literature Review...............................................................................................4

Chapter 3 : Research Methodology.....................................................................................6

3.1 Research Design.........................................................................................................6

3.2 Objectives of study.....................................................................................................9

3.3 Limitations.................................................................................................................9

Chapter 4: Data Analysis.....................................................................................................9

4.1 Statistical analysis......................................................................................................9

4.2 Response charts........................................................................................................10

4.3 Cross Tabs................................................................................................................47

4.4 Factor Analysis........................................................................................................52

Chapter 5: Findings............................................................................................................60

Chapter 6: Recommendation & Conclusion......................................................................61

Conclusion.........................................................................................................................62

References..........................................................................................................................62

LIST OF TABLES

v

Table no. Name Page no.

Table 4.1Responses of ownership of luxury car

brands.11

Table 4.2 Companies’ efficiency in after sales. 13

Table 4.3 Difficulty in maintenance of luxury car. 15

Table 4.4 Difficulty in maintenance of luxury car. 17

Table 4.5 Preference of service stations 19

Table 4.6 Affect on brand choice due to after sales 21

Table 4.7 Company having enough service stations 23

Table 4.8 Company providing on road assistance 25

Table 4.9 Justification of service costs. 27

Table 4.10 Responses on notification by the company 29

Table 4.11Responses on appropriation of service

duration31

Table 4.12 Responses on cost of service 33

Table 4.13Responses on security during servicing of

car35

Table 4.14 responses on duration of service 37

Table 4.15 Responses on location of service centre 39

Table 4.16Responses on communication between

company & customers41

Table4.17 Responses on quality of service 43

Table 4.18Responses on authorization of service

centers.45

Table 4.3.1 Cross table 4.3.1 47



vi













Table 4.4.1 KMO and Bartlett's Test 52

Table 4.4.2 Communalities 52

Table 4.4.3 Total Variance Explained 53

Table 4.4.4 Total Variance Explained 54

Table 4.4.5 Component Matrixa 54

Table 4.4.6 Component Transformation Matrix 55

Table 4.4.7 Rotated Component Matrixa 56

Table 4.4.8 Factors Extracted 57

Table 4.5 Representation of different responses. 58

LIST OF FIGURES

Figure no. Name Page no.

Figure 4.1 Responses of ownership of luxury car 12

vii

brands.

Figure 4.2 Companies’ efficiency in after sales. 14

Figure 4.3 Difficulty in maintenance of luxury car. 16

Figure 4.4 Difficulty in maintenance of luxury car. 18

Figure 4.5 Preference of service stations 20

Figure 4.6 Affect on brand choice due to after sales 22

Figure 4.7 Company having enough service stations 24

Figure 4.8 Company providing on road assistance 26

Figure 4.9 Justification of service costs. 28

Figure 4.10 Responses on notification by the company 30

Figure 4.11Responses on appropriation of service

duration32

Figure 4.12 Responses on cost of service 34

Figure 4.13Responses on security during servicing of

car36

Figure 4.14 responses on duration of service 38

Figure 4.15 Responses on location of service centre 40

Figure 4.16Responses on communication between

company & customers42

Figure 4.17 Responses on quality of service 44

Figure 4.18Responses on authorization of service

centers.46

viii

ABSTRACT

Purpose of this study is to Study off readiness of after sales service of luxury cars to align

with its 2020 perspective in Delhi’. This study examines the relation of satisfaction level

of luxury cars owners with after sales service. In February 2016, questionnaires were

sent out to a sample of people comprising of luxury car owners; mostly businessmen and

employees working in high end companies. It included 18 questions, relevant to the topic

of the study. A Total of 70 usable replies were received. The respondents belong to

different localities of Delhi. The statistics of each question of all 70 respondents was

taken on list and then categorized according to 18 different questions.

The score of each question was then averaged by the respondents and then the percentage

responses were determined.

ix

1

Chapter 1: Introduction

1.1 IntroductionAfter-sales service is one of the most deliberated facets of the Indian automobile industry.

Urban customers, with increasing regularity, are demanding an improvement in services

offered by car manufacturers. Companies themselves are aware of this changing trend,

with a consumers’ loyalty proportionate to the quality of after-sales service.

A collective term for attention to a transaction that normally takes place after the sale

(and often after delivery) is accomplished. Typical after sale service functions include:

installation, training, warranty-related repair and replacement part support. After-sale

service is an extremely important consideration because of the normally greater distances

between sellers and buyers in international trade. Some international contracts as

distribution contracts include a clause of after-sales services and maintenance: The

Distributor undertakes to carry out with its own staff and means, and assume the costs of,

and adequate after-sales and maintenance service for all Products sold within the

Territory. The Supplier shall provide the Distributor with the spare parts and other means

required to service the warranty conditions of the Products.

Lele and Karmarkar, 1983 said, "After-sales services" are often referred to as "product

support activities", means that all activities that support the product-centric transaction.

Vitasek, 2005, Elaborated the statement that "After-sales services" has been used the

most, to describe services that are provided to the customer after the products have been

delivered to the customer and It also being explained as "customer support" elements,

where all activities that ensure that a product is available to consumers "over its useful

lifespan for trouble-free use" said by Loomba, 1998. Profit margins can be turned high by

delivering the after sale service in comparison with product sale without it stated by

According to Alexander (2002) and Baumgarter (1999).

2

Saccani , 2006 ,Various authors have told and pointed that the after sale service play

valid key roles in supporting the marketing activities for the enhancement of customer

retention and loyalty, which will further fetch more profits in the long run.

The generation may be at least 3 times the turnover when compared to the original

purchase in a given lifecycle of a product. There are many ways in which the customer is

connected to a brand and one of the major one is after sale services. it can also be taken in

a way that after sale service is a way to recover profits which were lost due to high

competition on the selling prices of the equipment,at the same time it’s a way of forming

constant connection with the brand (Gallagher 2005). While on the other hand lewis

(2004) stated how it affects the brand image of the firm and gets affected due to same. So

after sale is a potential source of gaining competitive advantage over your competitors.

Armistead and Clark 1992; Goffin 1999 have stated after sales in a simpler terms , it can

be defined as periodically repairing and maintaining of the equipments by the

manufacturer or the supplier during and after the warranty period of the same.

In the automobile industry, after-sales service are commonly defined 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".

1.2 After Sales Service in the Automobile IndustryAfter sale of the products and the services cannot be considered as independent factors of

the product when talked about the market share and the profit generated , as the products

are being used to enter the market but the margins are charged on the aftermarket which

is the market of spare parts. the resent study of General Motors corporation states that

company made profits of $150 billion profit with the sale of cars but made more profit of

$9 billion with the after sales. In any car manufacturing company the value system is the

combination of four major attributes , which are buyer who buys the product , seller who

is selling the product or making it available ,part suppliers and the procedures of the car.

All of these are affected by the change or movement in the car industry.

Some major factors affecting the four main players of the market are:-

3

1.2.1 Suppliers of the automobileThe tendency of globalization and internationalization which increases the competition

among companies globally and the product sourcing strategy followed globally. There

has been change which makes a component supplier to a partner in the system and

integrates him in the system. The quality management process is the bases of the

integration into the system of the producer.

1.2.2 Producers of the automobilesThere are various factors affecting automobile producers such as Concentration of

corporate strategies on product, innovation of co operations and processes, Emphasizing

on the customer development and loyalty of repeatedly buying at the points of sale. The

choice manufacturing place and the cost cutting and minimizing strategies have become

the key focus of the corporate strategies , this is because the profits have decreased so to

maintain the margins and turnovers the same is done. Thinking across the global

boundaries ,which states that not only think about the customer in your country but the

customers who are potential buyer from all over the globe. There have been high

concentrations on the returns to be made on investments. Increasing the use of trading

tactics.

1.2.3 Dealers of the automobilesIn the European markets there has been situations in which the industries are not being

able to sell as much they are producing , in simpler words the production in way higher

then the sales , so the dealers are forced to move out and do business in other countries.

There has been reduction in the profits and returns , underutilization od the resources ,

loss in business of after sale car market which includes the second hand cars and the

spare part market, high producers are being put by the producer to sell more, difficulty

levels have increased in telling the differences in the available models. So it can be said

the dealers of the automobile market are not in the state they desire for.

4

1.2.4 Buyers of the automobileAs being one of the major automobile buyers there are various factors influencing them

such as, the buyer is now highly aware about the price and quality, the requirement of the

services and the importance being given to the same have increased drastically, the

demand is for a tottaly new concepts.

The after sales when thinking of a producer can consist of 3 major departments : the

accessories , parts , and pure services ehich are technical in most number of cases. The

division was required partly because of the huge differences in the profits margins which

were made on the parts and other common accessories ,but also because of the imported

car segments whose accessories were imported from the international markets. this

actually made after sale somewhat service oriented rather than completely product

oriented. In the current scenario it has become product plus service oriented. The

products are defined as the parts and pieces that are to be fitted in the car to meet the

demands of the customers and on the other hand services are defined as interaction

required to be done with the car owner to know customers requirements with the purpose

of completely satisfying him.

.

1.3 Problem StatementLuxury car segment being one of the rapid growing markets in India, which is affecting

GDP to NNP on a grand scale. And the fact that after sales service is one of the major

factors in this growing segment. So, it makes it very important to know about the

readiness of India on the perspective of coming future. As after-sales service is a segment

which generates some great revenue for the companies.

5

Chapter 2: Literature Review

Many studies have been or are being conducted in the area of after sales services

especially when we talk about automobile industry. These studies have revealed the

important role played by after sales service in the automotive industry. Over the period

studies conducted has show how companies can take advantage over others by adapting

to the change of modern times. i.e., providing customer the best quality of after sales

services to maintain a loyal customer and generating revenue from that loyalty.

With a satisfaction level of 80-100% Nissan has ranked their after-sales service of

distribution policy a very effective process. While its after-sales services were ranked

partly effective with only 45-59% of the satisfaction level.

With the satisfaction level of their distribution and service policies 60-79%which are

effective, Fiat has ranked their after-sales promotion but with 40-59% satisfaction level.

Their after-sales price policy was only ranked as effective in partly manner.

An Empirical Analysis conducted by Dirlenbach, Automotive After-Sales-Service

Innovations has revealed that, the link between long term success of a service and the

customer orientation innovation was both calculative in the quantitative as well as the

qualitative analysis. from the results of the defined qualitative interviews, It was also

deduced that, taking up customer needs by actually connecting forces in the

improvement of such features would increase the chance of a victorious service

innovation or by either actively attaining feedback of the new characters of after-sales

services. A further finding of the project showed the positive impact of the IT-

professionalism on short term of success.

Jain of "Honda Motors" conducted A report on Effect of After-Sales Services on

Consumer Satisfaction and preferences to find if there is a strong link between after-sales

service offered by the company with customer patronage and satisfaction. After-sales

services offerings was studied in expression of reliability of warranties and guarantees,

car insurances, free service and customer education provided for driving the car.

6

Bain and Co conducted a Automotive survey which had results like Improving the after-

sales service help in retention of the customers and an beholden article written by

Lamoure, Hoffmann, and Flees interpreted the results of surveys which were conducted

by, a popular consulting firm. Asserting that the way of winning new customers requires

the car manufacturer to develop more hi tech, joyful, and good millage vehicles, a task

that could take lot of months and years of professional and expertise investment. But the

study suggests that companies have had the chance to improve performance of their

business in short term by putting focus on the customers to whom they already have been

doing by offering the really good after-sales service.

When the vehicle gets aged and the warranty period ends at that time commonly the

attachment of the owner towards the brand ends. But the same happens only about a

period of about four five years from the time the vehicle was purchased. The company

should try to take advantage on the lolayty part by making regular visits and being in

touch with the customer.this will create a win win situation for both the parties. This

basically tells how important is ti be in touch with the customer in a critical time period

when the customers are looking to buy a new vehicle. This is the actual meaning of

customer retention.

There was a report written by Verma and Sarkar which was published in The Economic

Times. the same was regarding the dissatisfaction level of Indian consumers with after

sale services being offered by the dealers of luxury car dealers , the luxury car companies

had to do lot of efforts and hard work and had to develop themselves in a huge way

before they could promise a service support fitting they were planning for their image in

India. Concluding that the luxury in India had some limitations , among which after sale

servicing was one.

7

Chapter 3: Research Methodology

3.1 Research DesignDescriptive research methodology has been used for conducting this study. Instruments

like questionnaire and interviews were used for surveying and data collection. Surveys

were used for obtaining data from the individuals reading their own experiences with

after sales services in the luxury car segment. There were two types of research which I

used as my major tools for collecting information, which follows:

Qualitative research

Asking broad questions and collecting data in the form of words, images, etc. that is

analyzed and searching for themes .Qualitative research was used for conducting

exploratory research for later analysis to be done in the study. The same was in the

context of theoretical ad philosophical issue of social development This type of research

in layman’s language can be stated as analyzing the only the qualitative parameters of

respondents. In this research, I measured the satisfactory level of the dealers by asking

them few questions regarding the benefits provided to them which showed an amazing

result.

Quantitative research

In quantitative research I basically collected information by conducting interviews and

making them fill the questionnaire. All the information collected and analyzed are to be

presented in the form of pie charts and graphical figures. Quantitative research is linked

with the philosophical and theoretical stance of positivism. This is the research includes a

survey to be conducted with the help of a questionnaire which I have added as an

annexure in this report.

By using both quantitative and qualitative research tools, I was able to conduct a survey

including 70 respondents including various luxury car owners. While conducting this

8

survey I was able to establish a great contact with each one of them and was able to

collect valid responses. Which later I summarized and presented in an efficient manner

with the help pie charts and tables, and I was able to state all the major finding and give

some recommendations and in the end I concluded my result explaining what my

research has been all about.

When I started conducting this research the statement of objectives were lower in

numbers but when once I started a in detailed analysis I realized that there are various

variables which could be included in the questionnaire , which should be included in my

report. Before conducting the research i had a strong encounter with various sales

employees from different luxury brands which helped me gather some in depth

information which could be used as some important statement or the basis of analysis

regarding my research. After this I constructed a questionnaire including all the variables

affecting my research subject which I gathered from my mentor mr. sumit singh and

other sources. I faced some real hard problems conducting this research as fir I was

thinking to go for 100 respondents but due to the subject being limited to the luxury cars

owners I had to decrease the sample size to 70 respondents. And after this the information

I was really seeking for was still really difficult as the respondents didn’t had the time or

interest to fill up my questionnaire. I had to exercise these questionnaire by performing a

interpersonal communication channel to get the respondents show interest in m y research

and all the hard work came in handy I was able to gather some real crude information.

Which I analyzed by using cross tabs method and represented this analyzed data in an

organized way with help of some pie charts tabular figures and charts as featured in

chapter IV of my research.

9

3.2 Objectives of study To study and analyze the readiness of after sales service of luxury cars to align with its

2020 perspective in Delhi, So survey has been conducted on the sample of 70 luxury cars

owners.

To understand effectiveness of after sales service among luxury car owners.

To elaborate the importance of after sales service in the automotive industry.

Factors that influence decision-making for getting a luxury car services.

To understand satisfaction level of the luxury cars owners with respect to

comparison of perception between BMW, Audi and Mercedes.

3.3 Limitations1. As project being Time constraint, it acts as a limitation for conducting my

research.

2. It’s only a developing segment so speculations made can never be accurate.

3. Survey findings were limited as scope of sample was only 70 luxury cars owners.

4. As being Informatory project information was to be collected from internet which

was limited.

10

Chapter 4: Data Analysis

4.1 Statistical analysisThe analysis of the report has been done on the people answering the concerned

questions. The categorization was done by taking statistics of different questions

answered by all the 70 respondents. The score gathered from each question was then

divided by the number of respondents and percentage responses were determined and

using those figures, the tables and charts were made which are discussed further. Based

on these percentages, various findings were determined.

4.2 Response chartsPresented below are the different percentage responses of the participants to the different

questions of the survey questionnaire.

11

1. What luxury brand's car you own?

BMW: 25.61% Audi: 24.39% Mercedes: 21.95% JLR: 8.54% others: 19.51%

Answer Count Percent 20% 40% 60% 80% 100%

BMW 21 25.61%

Audi 20 24.39%

Mercedes 18 21.95%

JLR 7 8.54%

Others 16 19.51%

Total 82 100 %

Table 4.1. Responses of ownership of luxury car brands.

http://www.questionpro.com/a/showResponseEditor.do?mode=execute&questionID=46031929&answerID=236632906





12

25.61%

24.39%21.95%

8.54%

19.51%

BMWAudiMercedesJLRothers

Figure 4.1 Responses of ownership of luxury car brands.

Interpretation

As most of the respondents has answered BMW (25%) , and the second best answer was

Audi (24%) , and other respondents have chose Mercedes (22%) , and then JLR (8%) as

their car owned. BMW has emerged as a brand most owned which could be because of

their goodwill in the market.

13

2. Which company provides the most cost efficient after sales service?

BMW: 13.16% Audi: 26.32% Mercedes: 36.84% JLR: 6.58% others: 17.11%


BMW 10 13.16%

Audi 20 26.32%

Mercedes 28 36.84%

JLR 5 6.58%

Others 13 17.11%

Total 76 100 %

Table 4.2 Companies efficiency in after sales.


14

13.16%

26.32%

36.84%

6.58%

17.11%

BMWAudiMercedesJLRothers

Figure 4.2 Companies efficiency in after sales.

Interpretation:

According to respondents Mercede36.4% can be considered as most cost efficient after

sales provider as the company’s loyalty and their responsibility can easily be comprehend

by their product and their services. The second most cost efficient company could be

derived as Audi with 26% result in their favor.

15

3) Which company provides the best quality after sales services?

BMW : 21.52%Audi : 30.38%Mercedes : 29.11%JLR : 7.59%others : 11.39% Audi :

30.38%

Count Percent20% 40% 60% 80% 100%

BMW 17 21.52%

Audi 24 30.38%

Mercedes 23 29.11%

JLR 6 7.59%

others 9 11.39%

Total 79 100 %

Table 4.3 Companies quality in after sales.






16

BMW Audi Mercedes JLR others0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Figure 4.3 Companies quality in after sales.

Interpretation:

With the result of 30% in their favor, Audi can be considered as the best quality after

sales service provider and as being the holder of 29% votes by the respondents Mercedes

is the second best quality after sales service provider.

17

4) Do you agree that It is difficult to maintain a luxury car.

Strongly Disagree : 4.29%Disagree : 18.57%Neutral : 30.00%Agree : 32.86%Strongly agree : 14.29% Agree : 32.86%

Count Percent20% 40% 60% 80% 100%

Strongly Disagree 3 4.29%

Disagree 13 18.57%

Neutral 21 30%

Agree 23 32.86%

Strongly agree 10 14.29%

Total 70 100 %

Table 4.4 Difficulty in maintenance of luxury car.






18

Strongly Disagree Disagree Neutral Agree0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Figure 4.4 Difficulty in maintenance of luxury car.

Interpretation:

When asked about the difficulty of maintenance then the measurity of people agreed to

the same , 32% people agreed to it and then 30 % were neutral. This states that when it

comes to difficulty in maintenance then in spite having the power to buy expensive cars

they find it difficult to maintain.

5) Luxury car owners only prefer company authorized service centers.

19

Strongly Disagree : 1.43%Disagree : 14.29%Neutral : 11.43%Agree : 51.42%Strongly agree : 21.43% Agree : 51.42%



Disagree 10 14.29%

Neutral 8 11.43%

Agree 36 51.43%


Total 70 100 %

Table 4.5 Preference of service stations






20

1.43%14.29%

11.43%

51.43%

Strongly Disagree Disagree Neutral Agree

Figure 4.5 Preference of service stations

Interpretation:

With the huge percentage of 51% , owners of luxury cars only prefer getting their cars

serviced at the company authorized service centre , then only 21 % of the luxury cars

owners don’t prefer the same due to miscellaneous reasons

21

6) After sales services affects one's brand choice.

Strongly Disagree : 2.86%Disagree : 10.00%Neutral : 31.43%Agree : 38.57%Strongly agree : 17.14%

Count Percent

20% 40% 60% 80% 100%


Disagree 7 10%

Neutral 22 31.43%

Agree 27 38.57%


Total 70 100 %

Table 4.6 affect on brand choice due to after sales .

22

3% 10%

31%

39%

17%

Strongly Disagree Disagree Neutral Agree Strongly agree

Figure 4.6 affect on brand choice due to after sales .

Interpretations:

When asked about that does your brand choice gets affected due to after sale services ,

then 38% of the luxury car owners agreed to the same while 31% of the owners were

neutral with the same.

23

7) Do you agree with the statement that, A company has enough number of service

centers to satisfy their every customer.

Strongly Disagree: 2.86% Disagree: 17.14% Neutral : 24.29% Agree : 44.29% Strongly agree : 11.43%

Count Percent 20% 40% 60% 80% 100%


Disagree 12 17.14%

Neutral 17 24.29%

Agree 31 44.29%


Total 70 100 %

Table 4.7 Company having enough service stations.






24

Strongly Disagree Disagree Neutral Agree0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Figure 4.7 Company having enough service stations.

Interpretation:

As our research was mainly conducted in Delhi where there are huge number of luxury

car owners as compared to other states. So 42% of the luxury car owners were satisfied

with the same , followed by 24% who were neutral with the same. In Delhi there are lot

of service stations of various luxury car brands.

.

25

8) Do you agree with the statement that : Company always provides on-road assists.


Answer Count Percent20% 40% 60% 80% 100%


Disagree 13 18.57%

Neutral 24 34.29%

Agree 23 32.86%

Strongly agree 7 10%

Total 70 100 %

Table 4.8 Company providing on road assistance.






26

4.29%

18.57%

34.29%

32.86%

10.00%


Figure 4.8 Company providing on road assistance.

Interpretation:

There were huge number of customers, 34% who were not aware about the such services

so they also answered with neutral but also on the other hand there were customers who

agreed and disagreed to the same with 32% and 18% respectively.

27

9) Do you agree with the statement that: All service costs are completely justified.



Strongly Disagree 14 20%

Disagree 17 24.29%

Neutral 18 25.71%

Agree 17 24.29%


Total 70 100 %

Table 4.9 Justification of service costs.






28

Strongly Disagree Disagree Neutral Agree Strongly agree0%

5%

10%

15%

20%

25%

30%

Figure 4.9 Justification of service costs.

Interpretation:

When asked about the justifications of the service cost there were mixed responses

gathered as 25% of the luxury car owners were neutral with the same , 24% agreed and

disagreed , 20% strongly disagreed. Some owners feel that if they can buy expensive cars

then they can also pay the service costs , on the other hand some feel that the company

charges bit extra.

29

10) Do you agree with the statement that, Company always notifies when your car

service is due.


Count Percent20% 40% 60% 80% 100%


Disagree 4 5.71%

Neutral 16 22.86%

Agree 30 42.86%


Total 70 100 %

Table 4.10 Responses on notification by the company






30

Strongly Disagree Disagree Neutral Agree Strongly agree0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

Figure 4.10 Responses on notification by the company

Interpretation:

When asked about that does the company gives you reminder when your service is due,

then 42% of the luxury car owners agreed to it while 24% and 22% strongly agreed and

were neutral respectively. These responses were as almost all the companies luxury or not

but are putting huge emphasis on the communication part.

31

11) Is the Service duration is appropriate.




Disagree 5 7.14%

Neutral 21 30%

Agree 31 44.29%


Total 70 100 %

Table 4.11 Responses on appropriation of service duration.






32


5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Figure 4.11 Responses on appropriation of service duration.

Interpretation:

The service according to the customers takes appropriate time as 44% of the luxury car

owners agreed to the same followed by the 30% who were neutral. the customers are not

considering the time too much but had emphasis on cost and quality.

12) Rate the factor influencing your car service: cost of service

33

Strongly Disagree: 7.14% Disagree: 10.00% Neutral :38.57% Agree :: 31.43% Strongly agree: 12.86%



Disagree 7 10%

Neutral 27 38.57%

Agree 22 31.43%


Total 70 100 %

Table 4.12 Responses on cost of service.






34

7% 10%

39%

31%

13%


Figure 4.12 Responses on cost of service.

Interpretations:

Majority 38% of the luxury car owners did not give much emphasis on the cost

factor ,but still a good number of 31% agreed on the factor and gave importance to the

same.

35

13) Rate the factor influencing your car service: security

Strongly Disagree: 0.00% Disagree: 5.71% Neutral: 22.86% Agree: 48.57% Strongly agree: 22.86%

Count Percent 20% 40% 60% 80% 100%

Strongly Disagree 0 0%

Disagree 4 5.71%

Neutral 16 22.86%

Agree 34 48.57%


Total 70 100 %

Table 4.13 Responses on security during servicing of car.






36

Strongly Disagree Disagree Neutral Agree Strongly agree0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Figure 4.13 Responses on security during servicing of car.

Interpretation:

48% agreed to the point when asked about the security of their cars, as they buy these

expensive cars and also want them to be safe when given to the company for services and

other jobs.

37

14) Rate the factor influencing your car service: duration of service

Strongly Disagree:: 5.71% Disagree : 7.14% Neutral: 35.71% Agree: 40.00% Strongly agree: 11.43%

Count Percent20% 40% 60% 80% 100%


Disagree 5 7.14%

Neutral 25 35.71%

Agree 28 40%


Total 70 100 %

Table 4.14 responses on duration of service .






38

5.71%

7.14%

35.71%40.00%

11.43%

Disagree Neutral Agree Strongly agreeTotal

Figure 4.14 responses on duration of service .

Interpretation:

Luxury car owners are also very much concerned when it comes to duration of service as

maximum of them rated 4.

39

15) Rate the factor influencing your car service: location of service centre

Strongly Disagree :: 5.71%2 Disagree: 12.86% Neutral: 32.86% Agree: 31.43% Strongly agree: 17.14%



Disagree 9 12.86%

Neutral 23 32.86%

Agree 22 31.43%


Total 70 100 %

Table 4.15 Responses on location of service centre.






40


5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

5.71%

12.86%

32.86%31.43%

17.14%

Figure 4.15 Responses on location of service centre.

Interpretation:

Location is not such a important point in the minds of luxury cars owners as there is pick

and drop facilities provided by all the companies.

16) Rate the factor influencing your car service: communication

41




Disagree 5 7.14%

Neutral 20 28.57%

Agree 28 40%


Total 70 100 %

Table 4.16 Responses on communication between company & customers.






42

5.71%

7.14%

28.57%

40.00%

18.57%


Figure 4.16 Responses on communication between company & customers.

Interpretation:

The luxury car owners like to be communicated and informed about their cars and so they

have put emphasis on the same by rating it agree to the statement.

43

17) Rate the factor influencing your car service: quality of service

Strongly Disagree: 2.86% Disagree: 7.14% Neutral: 11.43% Agree: 42.86% Strongly agree : 35.71%

Count Percent20% 40% 60% 80% 100%


Disagree 5 7.14%

Neutral 8 11.43%

Agree 30 42.86%


Total 70 1.

Table 4.17 Responses on quality of service.






44


5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

2.86%

7.14%

11.43%

42.86%

35.71%

Figure 4.17 Responses on quality of service.

Interpretations:

The quality is at the end of the day what matters , the cost and time does not put huge

impact on the customer but the quality is the point which remains on the top of the luxury

car owner.

18) Rate the factor influencing your car service: authorization

45


Count Percent20% 40% 60% 80% 100%


Disagree 7 10%

Neutral 16 22.86%

Agree 23 32.86%


Total 70 100 %

Table 4.18 Responses on authorization of service centers.






46


5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

6%

10%

23%

33%

29%

Figure 4.18 Responses on authorization of service centers.

Interpretations:

Authorization is also an important point when it comes to after sales service as 32% and

28% have agreed and strongly agreed to the same respectively.

47

4.3 Cross Tabs4.3.1 What luxury brands car you own ? * it is difficult to maintain a luxury car .cross tabulation

It is difficult to maintain a luxury car .

TotalWhat luxury brands car you own?

Strongly Disagree

Disagree Neutral Agree Strongly Agree

Others. 3 7 15 17 8 50

BMW 1 0 7 7 7 2 23

Total 3 14 22 24 10 73

4.3.2 What luxury brands car you own ? * it is difficult to maintain a luxury car .cross tabulation

It is difficult to maintain a luxury car . Total

What luxury brands car you own?

Strongly Disagree


Others. 2 10 14 20 7 53

Audi 1 1 4 8 4 3 20

Total 3 14 22 24 10 73

4.3.3 What luxury brands car you own ? * it is difficult to maintain a luxury car .cross tabulation

It is difficult to maintain a luxury car . Total


Strongly Disagree


Others. 2 9 15 20 8 54

Mercedes 1 1 5 7 4 2 19

Total 3 14 22 24 10 73

Interpretation: We here get the perception regarding difficulty of maintain a luxury car , which comes ot to be BMW customers don’t have a single opinion , Audi and Mercedes customers are neutral to the same.

48

4.3.4 What luxury brands car you own? After sale services affects ones brand choice. Cross tabulation.

After sales services affects ones brand choice. Total


Strongly Disagree


Others. 2 5 13 23 7 50

BMW 1 0 2 9 5 7 23

Total 2 7 22 28 14 73




Strongly Disagree


Others. 0 3 16 21 13 53

Audi 1 2 4 6 7 1 20

Total 2 7 22 28 14 73




Strongly Disagree


Others. 2 3 17 20 12 54

Mercedes 1 0 4 6 8 2 19

Total 2 7 22 28 14 73

Interpretation: Here the perception found regarding after sales affecting once brand choice is, BMW customers are neutral, Audi and Mercedes customers agree to the sam

49

4.3.7 What luxury brands car you own? A company has enough number of service centers. Cross tabulation.

A company has enough number of service centers. Total


Strongly Disagree Disagree Neutral Agree Strongly Agree

Others. 1 8 9 26 6 50

BMW 1 1 5 9 5 3 23

Total 2 13 18 31 9 73




Strongly Disagree


Others. 2 10 16 18 7 53

Audi 1 0 3 2 13 2 20

Total 2 13 18 31 9 73




Strongly Disagree


Others. 2 11 12 21 8 54

Mercedes 1 0 2 6 10 1 19

Total 2 13 18 31 9 73

Interpretation: The perception found by the statement “company has enough no of service centers” is, BMW, Audi and Mercedes customers are satisfied with the same.

50

4.3.10 What luxury brands car you own? Company always provides on road assists. Cross tabulation.

Company always provides on road assists. Total


Strongly Disagree


Others. 2 6 19 18 5 50

BMW 1 1 8 5 6 3 6

Total 3 14 24 24 8 73




Strongly Disagree Disagree Neutral Agree Strongly Agree

Others. 2 11 15 18 7 53

Audi 1 1 3 9 6 1 20

Total 3 14 24 24 8 73




Strongly Disagree


Others. 2 10 20 16 6 54

Mercedes 1 1 4 4 8 2 19

Total 3 14 24 24 8 73

Interpretation: The perception found by the statement “company provides on road assist” is BMW customers did not agree, Audi customers were neutral and Mercedes customers agreed to the same.

51

4.3.13 What luxury brands car you own? All service costs are completely justified. Cross tabulation.

All service costs are completely justified. Total


Strongly Disagree


Others. 7 13 16 10 4 50

BMW 1 7 6 3 7 0 23

Total 14 19 19 17 4 73

4.3.14 What luxury brands car you own?All service costs are completely justified. Cross tabulation.



Strongly Disagree


Others. 13 12 13 12 3 53

Audi 1 1 7 6 5 1 20

Total 14 19 19 17 4 73

4.3.15 What luxury brands car you own?All service costs are completely justified. Cross tabulation.



Strongly Disagree


Others. 8 16 15 13 2 54

Mercedes 1 6 3 4 4 2 19

Total 14 19 19 17 4 73

Interpretation: The perception found with the statement “all cost are completely justified” were, BMW Audi and Mercedes customers disagreed to the same .

52

4.4 Factor Analysis

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

.652

Bartlett's Test of Sphericity

Approx. Chi-Square 83.313

Df 28

Sig. .000

Table 4.4.1

Hence all these standards indicate that the data is suitable for the factor analysis. For extracting factors we have employed principal component analysis. Rotation methods, Kaiser Normalization with equamax were also applied. As per the latent root criterion, only the factor having latent roots or Eigen values greater than considered significant; and all the factor with latent root less than considered insignificant and disregarded.

Communalities

Initial Extraction

It is difficult to maintain a luxury car.

1.000 .525

luxury car owners only prefer company authorized service centres.

1.000 .437

After sales services affects one's brand choice.

1.000 .278

53

A company has enough number of service centres to satisfy Their every customer.

1.000 .562

Company always provides on-road assists.

1.000 .620

All service costs are completely justified.

1.000 .553

Company always notifies when your car service is due.

1.000 .486

Service duration is appropriate.

1.000 .428

Table 4.4.2

Extraction Method: Principal Component Analysis.

Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance

Cumulative %

Total % of Variance

1 2.315 28.933 28.933 2.315 28.933

2 1.574 19.676 48.609 1.574 19.676

3 .925 11.560 60.169

4 .857 10.711 70.880

54

5 .748 9.355 80.235

6 .681 8.518 88.753

7 .484 6.047 94.799

8 .416 5.201 100.000

Table 4.4.3

Total Variance Explained

Component Extraction Sums of Squared Loadings

Rotation Sums of Squared Loadings

Cumulative % Total % of Variance Cumulative %

1 28.933 2.248 28.103 28.103

2 48.609 1.640 20.506 48.609

3

4

5

Table 4.4.4

Component Matrixa

Component

1 2


-.465 .555


.308 .585

55


-.060 .524


.749 -.037


.785 .059


.368 -.646


.527 .456


.639 .139

Table 4.4.5


Large communalities in table indicate that a large number of variance has been accounted by the factor solution. They are bigger than 0.5 for all the questions. This is the indicator of suitability of the questions.

On the behalf of the data reduction in the following research the method applied is component matrix method in which various statements given a special trend for this. Component matrix has get with the help of SPSS.

Component Transformation Matrix

Component 1 2

1 .954 -.299

2 .299 .954

56

Table 4.4.6

Rotated Component Matrixa

Component

1 2


-.278 .669


.469 .466


.099 .518


.703 -.259


.767 -.179


.158 -.726


.640 .277


.651 -.059

Table 4.4.7

57


Factors Extracted

S.No Factor Name Name of Dimension Factor Factor Loading

1 F1 Customer Care S4 0.703

S5 0.767

S8 0.651

2 F2 Price Predicament S1 0.669

S6 -0.726

Table 4.4.8

There are 2 factors which are extracted from the analysis and are named the following customer care and price predicament which were clubbed from analyzed statements.

Mean of 1st factor customer care is 3.45 and mean of 2nd factor price predicament is 3.015. So we can say that Customer care is the most important factor extracted from the analysis.

58

Representation of different responses.

S.No Questions Responses

1.What luxury brands car

you own?

BMW Audi Mercedes JLR Others

25.61% 24.39% 21.95% 8.54% 19.51%

2.Which company provides

you the most efficient after sale service?


13.16% 26.32% 36.84% 6.58% 17.11%

3.Which company provides you the best quality after

sale services?


21.52% 30.38% 29.11% 7.59% 11.39%

4.Is it difficult to maintain a

luxury car.

Strongly Disagree

Disagree Neutral AgreeStrongly

Agree

4.29% 18.57% 30% 32.86% 14.29%

5.Luxury car owners only

prefer company authorized service centre

Strongly Disagree


Agree

1.43% 14.29% 11.53% 51.43% 21.43%

6.After sales service affects

once brand choice

Strongly Disagree


Agree

2.86% 10% 31.43% 38.57% 17.14%

7.A company has enough no

of service centers.

Strongly Disagree


Agree

2.86% 17.14% 24.29% 44.29% 11.45%

8.Company always provides

on road assistance.

Strongly Disagree


Agree

4.29% 18.57% 34.29% 32.286% 10%

59

9.All service costs are completely justifies.

Strongly Disagree


Agree

20% 24.29% 25.71% 24.29% 5.71%

10.Company always notifies when your car service is

due

Strongly Disagree


Agree

4.29% 5.71% 22.86% 42.86% 24.29%

11.Is the service duration is

appropriate.

Strongly Disagree


Agree

2.86% 7.14% 305 44.29% 15.71%

Table 4.5

There were various types of luxury car owners found during the collection of primary

data, some were very oriented towards price as they had bought their first luxury car and

were concerned about the budget part. On the other hand some were who primarily focus

on the quality and time as they had luxury cars for quite some time and money was not an

issue to them.

There are almost all types of luxury cars sold in the market buy the common brands were

Audi , BMW ,and Mercedes. All of them are known for their built quality but still

Mercedes had an edge over others when asked about the efficiency of after sales. On the

other hand Audi took over when asked about the quality of the same. As we have noticed

earlier that customers had different experiences and had different perception so fair

number of luxury car owners said they find it difficult to maintain a luxury car, but only

prefer authorized service centers. After sale was a factor known which affected the brand

choice of the customer .the research was mainly conducted in Delhi so it was found that

the company had enough no of service stations. it was surprising to know that many

customers did not know that their company provides on road assist .the cost of service is

not justified was said by major number of owners . at last when asked about the service

duration then majority of customers were satisfied with the same.

60

Chapter 5: Findings

With this research one of the major findings is that most of the people in Delhi owns

BMW (25%) , Audi (24%) , Mercedes (22%) , and then JLR (8%) .

Mercedes is the company which provides most cost efficient after sale service and

Audi tops the list when it comes to best quality of after sale service.

There is a huge no of customers of luxury cars but they have an perception that it is

difficult to maintain a luxury cars, but they also have a mind set of only getting their

cars serviced at the authorized service center. Even the choice of the customer is

influenced due to same.

The maximum numbers of customers are satisfied with the number of service centers

for their car. This is the situation when we talk of Delhi NCR area.

When we talk of on road assists, then the customers are somewhat not aware about

the same . as they don’t emphasize on the same till the time they don’t have a

requirement.

The customers are fine with the amount they are paying for the services in maximum

no of cases.

The customers are happy with the notifications they receive from the company and

also satisfied with the time taken for their services.

Cost of services , location of service centers , are not the major factors which

influence the customer while getting their car serviced ,but on the other hand

authorization , security , duration of service , communication and quality of service

play a vital role in getting their car services.

61

Chapter 6: Recommendation & Conclusion

Companies like JLR and BMW need to reposition themselves in customers head

as around, only 6% respondents feel that JLR provides the most cost efficient,

after sales service.

BMW and JLR need to start up building up a better quality management system

regarding after sales service as only around 6% respondents feel that JLR

provides best quality of after sales services.

Companies to change perception about the maintained of luxury cars as 46% of

respondents agree with the statement that it is difficult to maintain a luxury car

Companies need to try and build up more service centers as 20% respondents

disagrees with the statement that there’re enough service stations in there city.

Around 22 % of respondents still feel that companies doesn’t provide an efficient

on-road assist. So companies need to start focusing on the segment of on road

assistance.

As cost is one of the major reason owners consider while going for the service,

companies need to start justifying all cost related details to the customer.

As cost of service is a factor influencing the most among other factors companies

need to try and reduce or maintain a par service cost. So that a customer won’t

feel the burden of getting it over budget.

Most of the respondents feel that their expensive luxurious cars should be in a

secured facility. So, companies need to provide a safer environment.

Around 40% of respondents feel that the duration of getting their car serviced is a

key factor affecting their decisions companies need to try and provide more

effective and efficient services to their customers.

As communication, authorization and location of service centers are other major

factors affecting customer’s decision considering car service companies need to

build up a strong communication bridge towards their customers.

62

Conclusion

As Delhi is becoming a hub of luxury car companies, which is provide a growing market

and after sales servicing being one the most crucial factors coming in customers head

while going for a luxury cars it makes really important for companies to cope up with the

customers demand not only the product segment but also in after sales services. &

considering today’s position to cope up with the customer’s needs of after sales service,

and mind state of customer going for the luxury cars segment and the increasing numbers

of luxury cars owners Companies are taking some enduring initiatives to match up a

secured level keeping after sales services in consideration but there are various factors

which companies can look over to increase their efficiency and effectiveness in the case

of after sales service.i.e., that there is always a chance of improvement. So, we can

conclude that luxury car market in Delhi is ready in the perspective of year 2020.

63

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64

Appendix

Questionnaire

1.What luxury brands car you own ?


2.Which company provides the most cost efficient after sale service?


3.Which company provides the best quality after sale service?


4.Do you agree or disagree with the following statements.

S.No

Statements Strongly Agree

Agree Neutral Disagree

Strongly Disagree

1

It is difficult to maintain a luxury car .

2 Luxury car owners only prefer company authorized service

65

centers.

3 After sale services affects ones brand choice.

4 A company has enough no of service centers to satisfy their customers.

5 Company always provides on road assistance.

6 All service costs are completely justified

7 Company always notifies when your car service is dew

8 Service duration is appropriate.

5..Rate the following factors influencing your car service .

Cost of service Security Duration of Service Location of service centre Communication Quality Authorization

66

6.Contact information:

First Name Last Name Phone No. E-mail Id.

anshul narula-2

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