Influence of Aftersales Service Strategies on the Competitive Advantage of Automotive Companies in Kenya
Keywords:
Aftersales Services, Automotive Companies, Competitive Advantage, Supply Chain Strategies, KenyaAbstract
Aftersales services contribute immensely to customer satisfaction, generating repeat business that can translate to repeat revenue generation and improved market share and competitive advantage. This study sought to assess the influence of aftersales service strategies on the competitive advantage of Kenya's automotive companies. The study used an explanatory research design. The target population was 400 members of the top management team, including CEOs, functional managers, and senior managers drawn from 63 companies in the automotive industry in Kenya. The study utilized a census to include all 400 top management team members in the 63 automotive companies. Questionnaires were used in data collection. The hypothesis was tested using multiple linear regression analyses. Results indicated a moderate correlation between the aftersales service strategies and the competitive advantage of automotive companies in Kenya (r = 0.556). The findings further indicated that 30.9% of automotive companies' competitive advantage change is explained by their aftersales service strategies (R squared = 0.309). The study concluded that automotive companies in Kenya engaged in aftersales service strategies that included utilization of customer feedback, promptly responding to customer demands using agile methodologies, provision of quality service, and inclusion of warranties.
References
Aljabar, M. W. M., & Hasibuan, S. (2021). Performance evaluation of after-sales service partners in the power tools industry. Journal of Industrial Management, 5(2), 105114.
Balinado, J. R., Prasetyo, Y. T., Young, M. N., Persada, S. F., Miraja, B. A., & Redi. A. A. N. P. (2021). The Effect of Service Quality on Customer Satisfaction in an Automotive After-Sales Service. Journal of Open Innovation: Technology, Market and Complexity, 7(116).
Bayu, R., Noor, Y. L., & Diah, K. (2019). Analysis of the effect of brand image, product quality and after-sales service on repurchase decision of Samsung smartphones. Russian Journal of Agricultural and Socio-Economic Sciences, 92(8), 19-32.
Borchardt. M., Souza, M., Pereira, G. M. & Viegas, C. V. (2018). Achieving better revenue and customers’ satisfaction with after-sales services: How do the best branded car dealerships get it? International Journal of Quality & Reliability Management, 35(9), 1686-1708.
Cai, K., He, Z., Lou, Y., & He, S. (2020). Risk-aversion information in a supply chain with price and warranty competition. Annals of Operations Research, 287, 61–107.
Celucha, K., & Walzb, A, M. (2020). The Role of Active Identification in Driving Retail Customer Feedback. Services Marketing Quarterly, 41(2), 163–181.
Chaichinarat, P., Ratanaolarn, T., Kiddee, K., & Pimdee, P. (2018). Thailand's Automotive Service Quality Customer Satisfaction: A SERVQUAL Model CFA of Suzuki Motor. Asia-Pacific Social Science Review. 18(2), 99-113.
Chavosh, A., Halimi, A. B., Namdar, J., Choshalyc, S. H., & Abbaspour, B. (2011, February). The contribution of product and consumer characteristics to consumer’s impulse purchasing behaviour in Singapore. In Proceedings of 2011 international conference on social science and humanity, 1(1), 248-252).
Dan, B., Zhang, S., & Zhou, M. (2018). Strategies for warranty service in a dual-channel supply chain with value-added service competition. International Journal of Production Research, 56(17), 5677-5699.
Diaz, V. G., & Martinez, L. B. (2012). Contractual and quality aspects on warranty: best practices for the warranty management and its maturity assessment. International Journal of Quality & Reliability Management, 29(3), 320-348.
Gonzalez, A. G. (2015). Service Quality and Repurchase Behaviour in the Spanish Automotive After Sales Business. Journal of Relationship Marketing, 14, 239–267.
Goodhue, D. L., Thompson, R., & Lewis, W. (2013, January). Why you shouldn't use PLS: Four reasons to be uneasy about using PLS in analyzing path models. In 2013 46th Hawaii International Conference on System Sciences (pp. 4739-4748). IEEE.
Hanaysha, J. (2016). Testing the Effect of Service Quality on Brand Equity of Automotive Industry: Empirical Insights from Malaysia. Global Business Review, 17(5), 1060– 1072.
Haq, A. U. (2012). Satisfaction towards Customer Loyalty in Auto-Mobile Industry of Pakistan. International Journal of Management and Business Research, 2(4), 363371.
Jain, N. K., Singh, A. K., & Kaushik, K. (2020). Evaluating service quality in automobile maintenance and repair industry. Asia Pacific Journal of Marketing and Logistics, 32(1), 117-134.
Jermsittiparsert K., Sutduean J., Sriyakul T., & Khumboon R. (2019). The Role of Customer Responsiveness in Improving the External Performance of an Agile Supply Chain. Polish Journal of Management Studies, 19(2), 206-217.
KAM. (2020). Kenya automotive sector profile. Nairobi: KAM.
Naqvi, M. H., Asim, D. M., & Manzoor, S. (2020). Analysing the impact of supply chain agility on customer satisfaction through responsiveness and innovation. CenRaPS Journal of Social Sciences, 2(1), 26-40.
Nasr, L., Burton, J., & Gruber, T. (2018). Developing a deeper understanding of positive
customer feedback. Journal of Services Marketing, 32(2), 142–160.
Noorani, I. (2014). Service innovation and Competitive Advantage. European Journal of Business and Innovation Research, 2(1), 12-38.
Ongwae, E. (2020, August 19). Daily Nation: DN2 Motoring, pp. 4
Parasuraman, A. B. L. L., Zeithaml, V. A., & Berry, L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. 1988, 64(1), 12-40.
Pearce, J. & Robinson, R. (2013). Strategic Management: Strategy Formulation Implementation and Control. 13th Edition, McGraw-Hill/Irwin, New York.
Pehrsson, A. (2014). Firms’ customer responsiveness and performance: the moderating roles of dyadic competition and firm’s age. Journal of Business & Industrial Marketing, 29(1), 34–44.
Rashed, C., & Mouyiasis, G. (2013). Negative unintended consequences of innovation-a case study regarding innovation and sustainability: the new extended value creation mechanism for global sustainability, the SNE SFI GS-framework.
Salome, I. O., Ayotunde, O. A., & Samuel, O. O. (2022). From Service Quality to E-Service Quality: Measurement Dimensions and Model. Journal of Management Information and Decision Sciences, 25(1), 1-15.
Sangpikul A. (2022). Obtaining an In-Depth Understanding of the Assurance Dimension of Servqual in the Spa Industry: A Case of Spas in Bangkok. Tourism and Hospitality Management, 28(2), 381-396.
Sousa, C. M. P., Ruzo, E., & Losada, F. The Key Role of Managers’ Values in Exporting: Influence on Customer Responsiveness and Export Performance. Journal of International Marketing, 18(2), 1–19.
Trifonova, T. L., Stefanova, M. E., & Kalchev, S. D. (2018). Customer Feedback Text Analysis for Online Stores Reviews in Bulgarian: IAENG International Journal of Computer Science, 45(4), 45-48.
Veludo‐de‐Oliveira, M., Ikeda, A., A., & Campomar, C. (2006). Laddering in the practice of marketing research: barriers and solutions. Qualitative Market Research: An International Journal, 9(3), 297-306.
Wang, C. N., Day, J. D., & Farid, M. (2019). Service Innovation Model of the Automobile Service Industry. Journal of Applied Science, 9, 2403.
Yenipazarli, A. (2015). A road map to new product success: Warranty, advertisement and price. Annals of Operations Research, 226, 669-694.
Published
How to Cite
Issue
Section
Copyright (c) 2023 Moses Irungu Muchiri, Peter Kiriri, Veronicah Kaluyu

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.