Dissertation: Enhancing Customer Loyalty via After Sales at Dell Inc.
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Thesis and Dissertation
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This dissertation investigates the impact of after sales service on customer loyalty, focusing on Dell Inc. The research aims to identify and analyze effective methods for resolving after sales service issues and enhancing customer satisfaction. It includes a literature review covering after sales service concepts, objectives, key elements, and techniques, as well as customer loyalty factors, models (SERVQUAL), and theories (Gap Theory). The study employs a positivism philosophy, deductive approach, and descriptive research design, utilizing both primary (survey of 100 Dell customers analyzed with SPSS) and secondary data collection techniques. The findings suggest that effective after sales services significantly contribute to increased customer loyalty by addressing technical issues and information needs post-purchase. The dissertation concludes with recommendations for Dell Inc. to improve their after sales service strategies and maximize customer loyalty.
Running head: DISSERTATION
How after sales service enhances customer loyalty: A case study of Dell
Name of the Student:
Name of the University:
Author’s Note:
How after sales service enhances customer loyalty: A case study of Dell
Name of the Student:
Name of the University:
Author’s Note:
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1DISSERTATION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.
2DISSERTATION
Abstract
Extensive research has been conducted on the significance of effective after sales service and
customer loyalty. The impact of after sales service has been conducted for various business
organizations has been conducted but less research has been done for Dell Inc. Thus, the impact
of after sales service on customer loyalty for Dell Inc. is briefly studied. The research is
significant as this helps in understanding the concept of after sales service in achieving customer
satisfaction and loyalty. The research sheds light on the strategies that can be undertaken by the
business organizations to understand the problems encountered by the customers in terms of after
sale service. Additionally, the research also helps in understanding the various factors that helps
in providing effective after sales in order to mitigate the issues faced by the customers and
mitigating them effectively
The literature review identifies the independent and dependent variables along with the support
of various theories and models. Various debates exists shedding light on the fact that after sales
service does improve customer loyalty. However, some areas of customer loyalty and after sales
service still needs further investigation. In this chapter, the researcher investigates the areas of
customer loyalty and after sales service for developing further knowledge. The researcher has
been successful in identifying the potential gap that exist in the research and aim towards
conducting further research for gathering in-depth analysis. The researcher has used model and
theory of customer loyalty in order to support the findings and understandings.
In order to complete the research successfully, the researcher has implemented positivism
philosophy, deductive approach and descriptive research design. In accordance with the research
aim and objectives, the researcher has used both primary and secondary data collection
Abstract
Extensive research has been conducted on the significance of effective after sales service and
customer loyalty. The impact of after sales service has been conducted for various business
organizations has been conducted but less research has been done for Dell Inc. Thus, the impact
of after sales service on customer loyalty for Dell Inc. is briefly studied. The research is
significant as this helps in understanding the concept of after sales service in achieving customer
satisfaction and loyalty. The research sheds light on the strategies that can be undertaken by the
business organizations to understand the problems encountered by the customers in terms of after
sale service. Additionally, the research also helps in understanding the various factors that helps
in providing effective after sales in order to mitigate the issues faced by the customers and
mitigating them effectively
The literature review identifies the independent and dependent variables along with the support
of various theories and models. Various debates exists shedding light on the fact that after sales
service does improve customer loyalty. However, some areas of customer loyalty and after sales
service still needs further investigation. In this chapter, the researcher investigates the areas of
customer loyalty and after sales service for developing further knowledge. The researcher has
been successful in identifying the potential gap that exist in the research and aim towards
conducting further research for gathering in-depth analysis. The researcher has used model and
theory of customer loyalty in order to support the findings and understandings.
In order to complete the research successfully, the researcher has implemented positivism
philosophy, deductive approach and descriptive research design. In accordance with the research
aim and objectives, the researcher has used both primary and secondary data collection
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technique. The researcher while carrying out the literature review whereas primary data
collection technique has been used for gathering data for the survey has used secondary
resources. The researcher used random probability sampling technique and selected 100
customers of Dell Inc. for collecting data. The collected data has been analyzed using SPSS
technique in order to verify and validate the data findings.
From the above chapters, it can be concluded that effective after sales services helps in
enhancing the customer loyalty. From the information gathered in the literature review, it can be
said that the concept of after sales service highlights prompt and instant reply to the customers
who has purchased products from the business organizations. The duty of the business
organizations does not end after they have sold their product. In fact, the duty or responsibility of
the business organizations begins after they have sold the product to the target customers. This is
because after purchasing the product, the customers face problems both in terms of technical
aspects and required information. Based on the type of product and services Dell Inc. offers, it is
evident that the customers face technical issues after purchasing the electronic products.
technique. The researcher while carrying out the literature review whereas primary data
collection technique has been used for gathering data for the survey has used secondary
resources. The researcher used random probability sampling technique and selected 100
customers of Dell Inc. for collecting data. The collected data has been analyzed using SPSS
technique in order to verify and validate the data findings.
From the above chapters, it can be concluded that effective after sales services helps in
enhancing the customer loyalty. From the information gathered in the literature review, it can be
said that the concept of after sales service highlights prompt and instant reply to the customers
who has purchased products from the business organizations. The duty of the business
organizations does not end after they have sold their product. In fact, the duty or responsibility of
the business organizations begins after they have sold the product to the target customers. This is
because after purchasing the product, the customers face problems both in terms of technical
aspects and required information. Based on the type of product and services Dell Inc. offers, it is
evident that the customers face technical issues after purchasing the electronic products.
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4DISSERTATION
Table of Contents
Chapter 1: Introduction....................................................................................................................9
1.0 Overview...........................................................................................................................9
1.1 Background of the research...................................................................................................9
1.2 Background of company........................................................................................................9
1.3 Significance of the research.................................................................................................10
1.4 Problem statement...............................................................................................................10
1.5 Rationale of the research.....................................................................................................11
1.6 Research aim........................................................................................................................12
1.7 Research objectives.............................................................................................................12
1.8 Research questions...............................................................................................................12
1.9 Structure of the dissertation.................................................................................................13
1.10 Summary............................................................................................................................14
Chapter 2: Literature Review.........................................................................................................15
2.0 Overview.........................................................................................................................15
2.1 Conceptual framework.........................................................................................................15
2.2 Concept of after sales service..............................................................................................16
2.3 Objectives of after sales service..........................................................................................17
2.4 Key elements of after sales service......................................................................................18
Table of Contents
Chapter 1: Introduction....................................................................................................................9
1.0 Overview...........................................................................................................................9
1.1 Background of the research...................................................................................................9
1.2 Background of company........................................................................................................9
1.3 Significance of the research.................................................................................................10
1.4 Problem statement...............................................................................................................10
1.5 Rationale of the research.....................................................................................................11
1.6 Research aim........................................................................................................................12
1.7 Research objectives.............................................................................................................12
1.8 Research questions...............................................................................................................12
1.9 Structure of the dissertation.................................................................................................13
1.10 Summary............................................................................................................................14
Chapter 2: Literature Review.........................................................................................................15
2.0 Overview.........................................................................................................................15
2.1 Conceptual framework.........................................................................................................15
2.2 Concept of after sales service..............................................................................................16
2.3 Objectives of after sales service..........................................................................................17
2.4 Key elements of after sales service......................................................................................18
5DISSERTATION
2.5 Techniques of after sales service.........................................................................................19
2.6 Concept of customer loyalty................................................................................................20
2.7 Factors affecting customer loyalty.......................................................................................21
2.8 Model of customer loyalty...................................................................................................22
2.8.1 SERVQUAL model..........................................................................................................22
2.9 Theory of customer loyalty..................................................................................................24
2.9.1 Gap theory........................................................................................................................24
2.10 Factors influencing decision-making in terms of sales service.........................................25
2.11 Customer relationship management..................................................................................26
2.12 Effect of after sales service on customer loyalty...............................................................27
2.13 Challenges faced in providing effective after sales service...............................................28
2.14 Summary............................................................................................................................28
Chapter 3: Research Methodology................................................................................................30
3.0 Overview..............................................................................................................................30
3.1 Research outline...................................................................................................................30
3.2 Research philosophy............................................................................................................31
3.2.1 Explaining the use of positivism philosophy....................................................................31
3.3 Research approach...............................................................................................................32
3.3.1 Explaining the use of the deductive approach..................................................................32
3.4 Research design...................................................................................................................32
2.5 Techniques of after sales service.........................................................................................19
2.6 Concept of customer loyalty................................................................................................20
2.7 Factors affecting customer loyalty.......................................................................................21
2.8 Model of customer loyalty...................................................................................................22
2.8.1 SERVQUAL model..........................................................................................................22
2.9 Theory of customer loyalty..................................................................................................24
2.9.1 Gap theory........................................................................................................................24
2.10 Factors influencing decision-making in terms of sales service.........................................25
2.11 Customer relationship management..................................................................................26
2.12 Effect of after sales service on customer loyalty...............................................................27
2.13 Challenges faced in providing effective after sales service...............................................28
2.14 Summary............................................................................................................................28
Chapter 3: Research Methodology................................................................................................30
3.0 Overview..............................................................................................................................30
3.1 Research outline...................................................................................................................30
3.2 Research philosophy............................................................................................................31
3.2.1 Explaining the use of positivism philosophy....................................................................31
3.3 Research approach...............................................................................................................32
3.3.1 Explaining the use of the deductive approach..................................................................32
3.4 Research design...................................................................................................................32
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3.4.1 Explaining the use of descriptive research design............................................................33
3.5 Research strategy.................................................................................................................33
3.5.1 Explaining the use of survey research strategy.................................................................34
3.6 Sampling technique and sampling size................................................................................34
3.6.1 Explaining the use of random probability sampling technique........................................35
3.7 Data collection technique....................................................................................................35
3.7.1 Explaining the use of primary quantitative data collection technique..............................35
3.8 Data analysis technique.......................................................................................................35
3.8.1 Explaining the use of SPSS..............................................................................................36
3.9 Ethical considerations..........................................................................................................36
3.10 Research limitations...........................................................................................................37
3.11 Summary............................................................................................................................37
Chapter 4: Data Analysis...............................................................................................................38
Chapter 5: Conclusion and recommendations...............................................................................63
5.0 Conclusion...........................................................................................................................63
5.1 Linking with objectives.......................................................................................................64
5.2 Recommendations................................................................................................................66
References......................................................................................................................................67
Appendix 1.....................................................................................................................................74
Survey questionnaire.................................................................................................................74
3.4.1 Explaining the use of descriptive research design............................................................33
3.5 Research strategy.................................................................................................................33
3.5.1 Explaining the use of survey research strategy.................................................................34
3.6 Sampling technique and sampling size................................................................................34
3.6.1 Explaining the use of random probability sampling technique........................................35
3.7 Data collection technique....................................................................................................35
3.7.1 Explaining the use of primary quantitative data collection technique..............................35
3.8 Data analysis technique.......................................................................................................35
3.8.1 Explaining the use of SPSS..............................................................................................36
3.9 Ethical considerations..........................................................................................................36
3.10 Research limitations...........................................................................................................37
3.11 Summary............................................................................................................................37
Chapter 4: Data Analysis...............................................................................................................38
Chapter 5: Conclusion and recommendations...............................................................................63
5.0 Conclusion...........................................................................................................................63
5.1 Linking with objectives.......................................................................................................64
5.2 Recommendations................................................................................................................66
References......................................................................................................................................67
Appendix 1.....................................................................................................................................74
Survey questionnaire.................................................................................................................74
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7DISSERTATION
List of Figures
Figure 1: Conceptual framework...................................................................................................14
Figure 2: SERVQUAL model.......................................................................................................23
List of Figures
Figure 1: Conceptual framework...................................................................................................14
Figure 2: SERVQUAL model.......................................................................................................23
8DISSERTATION
Chapter 1: Introduction
1.0 Overview
The primary of the business organizations is to ensure customer satisfaction thereby, building
long-term positive and healthy relationship with the customers. This provides an opportunity for
the business organizations to ensure that the customers will come back to them in future for
purchasing similar type of products. Customer satisfaction is highly influenced by the service
provided by the company after the purchase (Toufaily, Ricard and Perrien 2013). It is evident
that lack of effective after service can make the customers highly dissatisfied thereby, creating
issues in customer retention and customer loyalty. Therefore, the business organizations develop
integrated and comprehensive plans to ensure effective after sales service for the customers
thereby, ensuring customer satisfaction.
1.1 Background of the research
Extensive research has been conducted on the significance of effective after sales service
and customer loyalty. The impact of after sales service has been conducted for various business
organizations has been conducted but less research has been done for Dell Inc. Thus, the impact
of after sales service on customer loyalty for Dell Inc. is briefly studied.
1.2 Background of company
Dell Inc. is a multinational company that was established 34 years ago in 1984. It is one
of the largest technological companies in the world with 138,000 employees worldwide. The
company manufactured, sold, repaired and supported desktop or personal computers.
Additionally, the company also provides servers, data storage devices, network switches, camera
and printers. Dell Inc. is well known for its innovations in terms of supply chain management
Chapter 1: Introduction
1.0 Overview
The primary of the business organizations is to ensure customer satisfaction thereby, building
long-term positive and healthy relationship with the customers. This provides an opportunity for
the business organizations to ensure that the customers will come back to them in future for
purchasing similar type of products. Customer satisfaction is highly influenced by the service
provided by the company after the purchase (Toufaily, Ricard and Perrien 2013). It is evident
that lack of effective after service can make the customers highly dissatisfied thereby, creating
issues in customer retention and customer loyalty. Therefore, the business organizations develop
integrated and comprehensive plans to ensure effective after sales service for the customers
thereby, ensuring customer satisfaction.
1.1 Background of the research
Extensive research has been conducted on the significance of effective after sales service
and customer loyalty. The impact of after sales service has been conducted for various business
organizations has been conducted but less research has been done for Dell Inc. Thus, the impact
of after sales service on customer loyalty for Dell Inc. is briefly studied.
1.2 Background of company
Dell Inc. is a multinational company that was established 34 years ago in 1984. It is one
of the largest technological companies in the world with 138,000 employees worldwide. The
company manufactured, sold, repaired and supported desktop or personal computers.
Additionally, the company also provides servers, data storage devices, network switches, camera
and printers. Dell Inc. is well known for its innovations in terms of supply chain management
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and e-commerce. The company has a market share of 15.9% thereby, making it the third largest
PC manufacturer in the world after Lenovo and HP Inc. Thus, in order to sustain in the
competitive market, it is essential for Dell Inc. to maintain their customer base by ensuring
customer satisfaction (US, 2018).
1.3 Significance of the research
The research is significant as this helps in understanding the concept of after sales service
in achieving customer satisfaction and loyalty. The research sheds light on the strategies that can
be undertaken by the business organizations to understand the problems encountered by the
customers in terms of after sale service. Additionally, the research also helps in understanding
the various factors that helps in providing effective after sales in order to mitigate the issues
faced by the customers and mitigating them effectively (Zhang, Van Doom and Leeflang 2014).
1.4 Problem statement
It has been seen that the customers purchasing products from Dell Inc. encounters issues
and troubles. This is because distinctive perspectives exeunt in terms of achieving customer
loyalty within the company. Additionally, the customers have complained regarding the
ineffective after sales service provided by Dell Inc. The company refuses to entertain the issues
faced by the customers after purchasing the products (Kumar and Srivastava 2013). The
company lacks prompt response to the complaint of the customers thereby, creating a huge
communication gap for between the customers and the company. Thus, Dell Inc. is lacking
effective after sales customer service that is hampering customer loyalty, as the customers are
not satisfied with the service provided by the company (Ramaseshan,, Rabbanee and Tan Hsin
Hui 2013).
and e-commerce. The company has a market share of 15.9% thereby, making it the third largest
PC manufacturer in the world after Lenovo and HP Inc. Thus, in order to sustain in the
competitive market, it is essential for Dell Inc. to maintain their customer base by ensuring
customer satisfaction (US, 2018).
1.3 Significance of the research
The research is significant as this helps in understanding the concept of after sales service
in achieving customer satisfaction and loyalty. The research sheds light on the strategies that can
be undertaken by the business organizations to understand the problems encountered by the
customers in terms of after sale service. Additionally, the research also helps in understanding
the various factors that helps in providing effective after sales in order to mitigate the issues
faced by the customers and mitigating them effectively (Zhang, Van Doom and Leeflang 2014).
1.4 Problem statement
It has been seen that the customers purchasing products from Dell Inc. encounters issues
and troubles. This is because distinctive perspectives exeunt in terms of achieving customer
loyalty within the company. Additionally, the customers have complained regarding the
ineffective after sales service provided by Dell Inc. The company refuses to entertain the issues
faced by the customers after purchasing the products (Kumar and Srivastava 2013). The
company lacks prompt response to the complaint of the customers thereby, creating a huge
communication gap for between the customers and the company. Thus, Dell Inc. is lacking
effective after sales customer service that is hampering customer loyalty, as the customers are
not satisfied with the service provided by the company (Ramaseshan,, Rabbanee and Tan Hsin
Hui 2013).
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1.5 Rationale of the research
What is the issue?
The issue lies in providing effective after sale service to the customers. The business
organizations use different methods and techniques in order to develop a deeper understanding
about the problems of the target market customers. Effective after sales service allows the
business organizations to maintain a balance between the prompt service and the poor
performance of the company (Abd-El-Salam, Shawky and El-Nahas 2013).
Why is it an issue?
It is an issue because the problems encountered by the customers after purchasing the
products are not attended effectively by the respective business organizations. As mentioned by
Bowen and Chen McCain (2015), the existing gap between the expectations of the customers and
the service received by them is the major issue.
Why is it an issue now?
It is an issue now, as Dell Inc. is facing a number of problems while dealing with the
target customers. This is because the product and the quality of the product fail to match or
surpass the expectation of the standard of the customers. Lack of immediate service after
purchase is creating problem in terms of customer retention and customer loyalty for Dell Inc
(Orel and Kara 2014).
What this research sheds light on?
This research sheds light on the potential challenges and problems encountered by Dell
Inc. in terms of customer loyalty due to their ineffective after sales service (Malik et al. 2013).
1.5 Rationale of the research
What is the issue?
The issue lies in providing effective after sale service to the customers. The business
organizations use different methods and techniques in order to develop a deeper understanding
about the problems of the target market customers. Effective after sales service allows the
business organizations to maintain a balance between the prompt service and the poor
performance of the company (Abd-El-Salam, Shawky and El-Nahas 2013).
Why is it an issue?
It is an issue because the problems encountered by the customers after purchasing the
products are not attended effectively by the respective business organizations. As mentioned by
Bowen and Chen McCain (2015), the existing gap between the expectations of the customers and
the service received by them is the major issue.
Why is it an issue now?
It is an issue now, as Dell Inc. is facing a number of problems while dealing with the
target customers. This is because the product and the quality of the product fail to match or
surpass the expectation of the standard of the customers. Lack of immediate service after
purchase is creating problem in terms of customer retention and customer loyalty for Dell Inc
(Orel and Kara 2014).
What this research sheds light on?
This research sheds light on the potential challenges and problems encountered by Dell
Inc. in terms of customer loyalty due to their ineffective after sales service (Malik et al. 2013).
11DISSERTATION
1.6 Research aim
The aim of the research is to identify and analyze the best possible methods of resolving
problem that is related to the after sales service in Dell Inc and to understand customer loyalty
that helps in customer satisfaction.
1.7 Research objectives
The research objectives include:
To understand the concept of after sales service
To investigate the effectiveness of after sales service and its impact on customer loyalty
To evaluate critically the problems encountered while assessing after sales service and
understand customer loyalty for Dell Inc.
To provide suitable recommendations for improving after sales service and maximizing
customer loyalty for Dell Inc
1.8 Research questions
The research questions include:
What do you mean by after sales service?
What is the effect of after sales service and its impact in customer loyalty?
What are the potential issues encountered while assessing after sales service and
understand customer loyalty for Dell Inc.?
What are the suitable recommendations for improving after sales service and maximizing
customer loyalty for Dell Inc.?
1.6 Research aim
The aim of the research is to identify and analyze the best possible methods of resolving
problem that is related to the after sales service in Dell Inc and to understand customer loyalty
that helps in customer satisfaction.
1.7 Research objectives
The research objectives include:
To understand the concept of after sales service
To investigate the effectiveness of after sales service and its impact on customer loyalty
To evaluate critically the problems encountered while assessing after sales service and
understand customer loyalty for Dell Inc.
To provide suitable recommendations for improving after sales service and maximizing
customer loyalty for Dell Inc
1.8 Research questions
The research questions include:
What do you mean by after sales service?
What is the effect of after sales service and its impact in customer loyalty?
What are the potential issues encountered while assessing after sales service and
understand customer loyalty for Dell Inc.?
What are the suitable recommendations for improving after sales service and maximizing
customer loyalty for Dell Inc.?
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