Investigating After Sales Service Impact on Customer Loyalty: Dell

This dissertation explores the impact of after-sales service on customer loyalty, using Dell Inc. as a case study. It begins by outlining the importance of customer loyalty and the role of after-sales service in achieving it, particularly within a competitive market. The problem statement identifies issues within Dell's after-sales service that negatively affect customer loyalty, such as inadequate customer support and slow complaint resolution, leading to decreased sales and a weakened competitive position. The research aims to investigate this impact, addressing factors affecting both after-sales service and customer loyalty, and assessing their relationship. The literature review defines after-sales service, its effect on marketing activities, and its contribution to customer satisfaction and retention. The dissertation employs a research methodology that includes a conceptual framework, research objectives, questions, and hypotheses to guide the investigation. Ultimately, the study seeks to provide recommendations for improving Dell's after-sales service to enhance customer loyalty.

Submission Coversheet (All Programmes)
Student ID Number
(Do not include student
name as anonymous
marking is implemented)
HAR15403101
Programme Title Business Management
Module Title Business and Management Dissertation Part1
Module Code (listed on
Moodle and in LTAFP) QAB020X602A
Module Convenor Dr. Natalya Shiraz
Coursework Title
Investigating the impact of after sales service in
enhancing customer loyalty: A Case Study of Dell
Academic Declaration:
Students are reminded that the electronic copy of their essay may be checked, at any
point during their degree, with Turnitin or other plagiarism detection software for
plagiarised material.
Word Count 3060 Date
Submitted 20.12.2018

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Investigating the impact of after sales service in enhancing customer loyalty:
A Case Study of Dell

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Table of Contents
1.0 Introduction..................................................................................................................4
1.1 Overview..................................................................................................................4
1.2 Problem statement...................................................................................................5
1.3 Research aim...........................................................................................................5
1.4 Research rationale...................................................................................................5
1.5 Summary..................................................................................................................6
2.0 Research objectives and questions.............................................................................6
3.0 Literature review..........................................................................................................7
3.1 Overview..................................................................................................................7
3.2 Conceptual framework.............................................................................................7
3.3 Concept of after sales service..................................................................................8
3.4 Factors affecting after sales service........................................................................8
3.5 Concept of customer loyalty.....................................................................................9
3.6 Factors affecting customer loyalty...........................................................................9
3.7 Impact of after sales service on customer loyalty..................................................10
3.8 Challenges encountered in providing efficient after sales service.........................10
3.9 Summary................................................................................................................11
4.0 Research methodology..........................................................................................12
4.1 Overview................................................................................................................12
4.2 Research philosophy.............................................................................................12
4.3 Research approach................................................................................................12
4.4 Research design....................................................................................................13
4.5 Research strategy..................................................................................................13

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4.6 Sampling technique and sample size....................................................................13
4.7 Data collection process..........................................................................................14
4.8 Data analysis process............................................................................................14
4.9 Summary................................................................................................................14
5.0 Access to data and research ethics.......................................................................15
6.0 Limitations..............................................................................................................15
References.......................................................................................................................16

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1.0 Introduction
1.1 Overview
The customers are the pillars that determine the success of the business
organization. The business organization considers the customers as the return of the
investment they have made for launching and selling a product. Thus, it is important for
the business organizations to retain the existing customers, so they can always count
on them. As mentioned by Murali, Pugazhendhi and Muralidharan (2016), the service
provided by the business organizations results in customer satisfaction that ultimately
results in customer loyalty. Therefore, it can be said that satisfied customers give rise to
loyal customers that never fails to prove their loyalty to the particular business
organization. However, after purchasing attending the customers appropriately and
promptly also results in customer loyalty. Effective after sales service is important in
achieving customer loyalty, as this make the customers feel valued and significant for
the business organizations. Such warm, empathetic and welcoming gesture towards the
customers after purchasing helps in improving customer satisfaction (Kurata and Nam
2013). Thus, it is important for the business organization to establish a strong and loyal
customer base for surviving in the competitive market.
For this study, the impact of after sales service on improving customer loyalty is
studied by referring to Dell Inc. Dell Inc was established in 1984 and over the span of
more than three decade, it has turned into a multinational company. It is one of the
largest technological companies in the world with estimated employees of 138,000
globally. Dell Inc manufactures, sells, repairs and supports personal computers. In
addition to, Dell Inc also sells printers, data storage devices, camera, servers and
network switches. Dell Inc. has a market share of 15.9% and is known for its innovative
e-commerce and supply chain management techniques. This makes the company third
largest personal computer manufacturer globally after HP and Lenovo. Thus, for
sustaining in the competitive market, it is important for Dell Inc to provide effective and
efficient after sales service for enhancing customer loyalty (US 2018).

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1.2 Problem statement
Potential issues in respect to after sales service for Dell Inc have been
recognized that is having an impact on the customer loyalty of the company. Lack of
effective after sales service in Dell Inc has hampered the customer loyalty because after
purchase for the company the customers are not attended appropriately. Increased
level of casualness has been encountered in Dell Inc when it comes to attending
customer queries, providing service and prompt actions for resolving customer
complaints due to which the customer loyalty of the company is hampered largely
(Szwejczewski, Goffin and Anagnostopoulos 2015). In addition to, decreased number of
customers has lowered the sales and profit of the company thereby, threatening the
survival of the company in the tough and competitive business environment. Inadequate
after sales service by Dell Inc is a result dwindling position of the company in the
business environment and the company is lacking competitive advantage.
1.3 Research aim
The aim of the research is to investigate the impact of after sales service in
enhancing customer loyalty for Dell Inc.
1.4 Research rationale
Evaluating the impact of after sales service for the business organization for
achieving and ensuring customer loyalty is important for Dell Inc because this offers the
provision to identify the impact of the gap of after sales service and customer loyalty.
The research is important because this will allow the researcher to address the probable
reasons of ineffective after sales service for the customers of Dell Inc thereby,
hampering the customer loyalty of the company. Addressing the probable reasons of in
effective after sales service will also allow accessing the relationship between after
sales service and customer loyalty (De Keyser, Schepers and Konus 2015). As a result,
it will be easier to compare and contrast the customer loyalty with or without the
presence of effective after sales service.
This research is significant as this will also help in identifying the main factors of
after sales service that is required for Dell Inc for ensuring customer loyalty by critically
analyzing the probable reasons why Dell Inc is lacking in providing effective after sale

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service (Bakshi, Kim and Savva 2015). Thus, after addressing the probable gaps in the
study, this study will also help in suggesting ways for achieving customer loyalty by
enhancing after sales service. Therefore, this study is significant because the impact of
after sales service for enhancing customer loyalty for Dell Inc can be studied.
1.5 Summary
Thus, in this chapter, it can be summarized that one of the best methods of
ensuring customer loyalty is by providing effective and efficient after sales service to the
customers. Ensuring effective after sales service provides an opportunity for the
business organizations to develop customer satisfaction. Effective after sales service
makes the customer feel valued and significant for the business organization due to
which they come back to the same organization. Additionally, after sales service allows
the customers to solve their issue after purchasing and develop a healthy and positive
relationship. This study identifies fault in the after sales service of Dell Inc and aim
towards mitigating it in this research for ensuring customer loyalty.

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2.0 Research objectives and questions
The objectives of the research include:
 To understand the concept of after sales service and customer loyalty
 To analyze critically the different factors that effect after sales service and
customer loyalty
 To assess the relationship between after sales service and customer loyalty for
Dell Inc.
 To provide suitable recommendations for improving after sale service techniques
for achieving customer loyalty for Dell Inc.
The questions of the research are:
 What are the different factors that effect after sales service and customer loyalty?
 What is the relationship between after sales service and customer loyalty for Dell
Inc.?
The hypotheses of the research are:
H0: After sales service has no impact in enhancing customer loyalty for Dell Inc
H1: After sales service has an impact in enhancing customer loyalty for Dell Inc
3.0 Literature review
3.1 Overview
This chapter identifies the independent and the dependent variable as after sales
service and customer loyalty respectively. Followed the identification of the variables,
this chapter sheds light on the concept of the two variables, factors affecting them
individually and impact on each other.

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After sales service Customer loyalty
Empathy
Inefficient employees
Improper use of technology
Non-availability of agents
Lack of teamwork
Convenience
Expectation
Personal relationship
Reputation and rewards
Customer service
3.2 Conceptual framework
Figure 1: Conceptual framework
(Source: Created by Author)
3.3 Concept of after sales service
Altekin, Aylı and Şahin (2017) define after sales services as the services which
companies provide to their customers after purchase of products. After sales services cover a
variety of services like repairing and provision of new authentic parts. Lan, Liu and Niu (2017)
opine that after sales services enable the companies to retain customers because customers view
these services as loyalty towards them for purchasing products from them. Thus, it can be said
that in other words, lack of after sales services result in creating a negative perception about the
companies in the mind of customers. It is crucial for the business organizations to consider
effective after sales service to the target customers. As mentioned by Kastalli and Van
Looy (2013), the concept of after sales service highlights support, help and information
to the customers by the business organizations after they have purchased from the
company. This helps in developing satisfied customer base that turns into customer

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loyalty with time. However, as criticized by Gebauer, Paiola and Saccani (2013),
efficient after sales service does not always guarantee customer loyalty because quality
and properties of the product also results in customer loyalty. Sabbagha et al. (2016)
contradicts this opinion of the previous authors. They point out that quality and efficiency of the
products can be retained by replacing damaged components with authentic components. For
example, in case of technological goods like laptops and printers, authentic parts are required to
maintain proper functionality of these products. Thus, in it can be pointed out that after sales
services enable the consumers to retain the quality of the products they buy from companies. It is
also evident that after sales services enable the creation of value and satisfaction as they are able
to maintain the quality of their products and use them for a longer period of time. The primary
aim of the efficient after sales service is to ensure satisfaction for the customers by
providing security, trust and credibility. In this case, Dell Inc is failing to implement the
concept of after sales service efficiently that is hampering the customer loyalty.
3.4. Marketing aspect of after sales services:
After sales services which business organisations provide to existing customers have
strong impacts on their marketing activities. Minchin and Alpert (2017) I their work pay tribute
Peter Drucker and Philip Kotler reiterating their definition of marketing which is pertinent even
today. They define the term marketing as the entire process which goes into acquisition of
customers by offering appropriate products at appropriate prices and retaining them. They
mention that marketing of products result in acquisition of new customers, maintaining of
existing customers and generation of revenue. They also go on to mentioning that marketing has
emerged into a central organisational function which is closely related to other important
functions like financing, research and development and even investing functions. Thus, in this
respect it can be pointed out that after sales services which companies offer to customers create
value to the latter. It can be hence be pointed out that after sales services form important
components of the marketing activities of business organisations. Yu et al.(2018) in their work

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takes a closer look into the importance of after sales services as far as marketing is concerned.
They point out the sales personnel can use after sales services to showcase their selling
competence and focus on achievement of sales target. Sales employees can exploit the scope to
provide after sales services to showcase their initiatives to tackle sales challenges. Thus, it can be
proved on these grounds that after sales services have emerged as significant part of marketing
activities of multinational companies like Dell Inc. However, a report published on the very
official website of the company reflect that the sales teams of the company provide very low
grade sales services. The page mentions that a certain customer in India, one of the most
important Asian markets of Dell did not even receive the minimum support when he called up
the customer care of Dell. The customer further described that purchasing a laptop from the
company was a ‘Huge mistake’ (Dell.com. 2019). An analysis of this failure of Dell to serve the
customers in India shows that this failure would have strong after effects. This is failure would
have effect on the revenue generation, capital generation and market goodwill. This low
grade after sales services of Dell would attract competitive risks. These effects of failure of Dell
to quality after sales services would be explained in the upcoming sections.
3.6. After sales services and revenue generation:
After sales services and revenue generation are closely related in today’s competitive
business environment. Failure to provide timely after sales can actually result in opportunities to
generate revenue. Melero, Sese and Verhoef (2016) mention that customers today can access
large amount of data on the omnichannel. They obtain information about products and services
which companies offer using different resources available online like feedbacks and review input
by existing customers. The customers take these aspects while making purchase decisions. Porter
and Heppelmann (2015) throws more light into the matter and point out that the customers

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consider these reviews even more important while making purchase decisions to buy high
involvement products which include laptops. High involvement products like laptops are
expensive and require the customers to take more prudent decisions. It can also be pointed out
that high involvement products in order to function efficiently for longer span of time require
authentic parts to be installed. This need to install authentic parts necessitate the customers to
make use of after sales services provided by companies like Dell. Thus, it can be pointed out in
this respect that when prospective customers view negative reviews of existing customers of Dell
about the poor quality of the after sales services of the company, the former are less likely to buy
Dell products. Thus, it can be emphasised that after sales are actually drivers of revenue
generation. Failure to deliver after sales services actually lead to opportunity loss for the
companies like Dell. An article published in the Harvard Business Review in 2018 shows that the
after sales services can boost revenue generation of companies by using two tools namely, cross
selling and upselling (Antonio 2018). The articles mention that companies can use these two
tools to generate higher revenue. They mention that after sales executives while providing
services to customers can enquire about their new needs. For example, as far as Dell Inc is
concerned, the after sales service personnel while attending customers who have purchased
laptops from the company can showcase other products like pen drives and routers. The
customers may opt to buy these accessories besides getting their laptops serviced. Agnihotri et al.
(2017) mention that sales and services are inseparable business activities to generate revenue.
This is because providing efficient after sales services create high level of customer satisfaction
among existing customers. This high level of customer satisfaction among existing customers
encourage the existing customers to purchase more products from the same company. For
example, the customers in possession of Dell laptops may be encouraged to buy more products