Impact of After-Sales Service on Customer Loyalty: Dell Case Study

This project proposal investigates the impact of after-sales service on customer loyalty, using Dell Inc. as a case study. The introduction highlights the importance of customer retention and the role of after-sales service in achieving customer satisfaction and loyalty. The problem statement identifies potential issues with Dell's after-sales service and its effect on customer loyalty, citing casualness in addressing customer queries and complaints. The research aims to evaluate the impact of after-sales service on customer loyalty for Dell, with objectives including understanding the concepts of after-sales service and customer loyalty, analyzing factors influencing them, assessing the relationship between the two, and providing recommendations for improvement. The literature review explores the concepts of after-sales service and customer loyalty, factors affecting them, and their impact on each other. The conceptual framework illustrates the relationship between after-sales service, customer loyalty, and influencing factors. The research methodology outlines the research philosophy, approach, design, strategy, sampling technique, data collection, and analysis processes. The proposal concludes by emphasizing the significance of the study in identifying gaps in Dell's after-sales service and suggesting ways to enhance customer loyalty.

Running head: PROPOSAL
Investigating the impact of after sales service in enhancing customer loyalty: A Case Study of
Dell
Name of the Student:
Name of the University:
Author’s Note:

1PROPOSAL
Table of Contents
1.0 Introduction................................................................................................................................3
1.1 Overview................................................................................................................................3
1.2 Problem statement.................................................................................................................4
1.3 Research aim..........................................................................................................................4
1.4 Research rationale..................................................................................................................4
1.5 Summary................................................................................................................................5
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

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4.1 Overview..............................................................................................................................12
4.2 Research philosophy............................................................................................................12
4.3 Research approach...............................................................................................................12
4.4 Research design...................................................................................................................13
4.5 Research strategy.................................................................................................................13
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

3PROPOSAL
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 gives 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, repaired and supported 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%

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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).
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

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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 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 do you mean by after sales service and customer loyalty?
 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.?
 What are the suitable recommendations for improving after sale service techniques for
achieving 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

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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
3.0 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 two variables, factors affecting them individually and impact on
each other.
3.2 Conceptual framework
Figure 1: Conceptual framework
(Source: Created by Author)

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3.3 Concept of after sales service
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 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. 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 Factors affecting after sales service
Various factors within the business organizations determine the effectiveness of the after
sales service. As mentioned by Ulaga and Loveland (2014), being empathetic while
communicating with the customers affects after sales service. Empathy results in warm,
welcoming and polite approach by the employees to the customers when they visit the company
with post purchase issues and complaints. As the customers feel satisfied while being attended
by the employees, they tend to become loyal towards the company. However, as argued by Sands
et al. (2016), apart from being empathetic, lack of team work also affects effective after sales
service. Team work highlights positivity, support and friendliness within the work environment
thereby, making it easy to attend and resolve customer complaints and queries quickly making
the customers feel valued and significant. This helps in establishing customer loyalty for the
business organization.

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Other factors affecting after sales service are inefficient employees, non-availability of
support and improper use of technology. Dell Inc fails to use their employees and the technology
appropriately thereby, making after sales service an issue.
3.5 Concept of customer loyalty
Customer loyalty highlights the tendency of the customers of using a particular company
for purchasing products and services. As commented by Martinez and Del Bosque (2013),
customer loyalty is defined as tendency of the customers to use the same company for buying a
product or service consistently. However, as argued by Toufaily, Ricard and Perrien (2013), the
concept of customer loyalty highlights the willingness and eagerness of the customers for
prioritizing a specific organization while purchasing. It has been seen that customer satisfaction
has a significant impact on customer loyalty and drastic customer loyalty is noticed when the
business organizations have satisfied customers. For this study, Dell Inc is failing to implement
the concept of customer loyalty that is threatening their survival.
3.6 Factors affecting customer loyalty
Satisfied customer results in customer loyalty that facilitates repetitive purchasing from
the same business organizations. As commented by Amin, Isa and Fontaine (2013), effective
customer service results in customer loyalty, as the queries, complaints and support needed by
the customers are provided by the employees. The customers can rely on the employees with any
issues and solving them promptly ensures effective customer service. However, as criticized by
Kandampully, Zhang and Bilgihan (2015), personal relationship is more important in achieving
customer loyalty. Effective communication between the customers and the employees is
facilitated by positive personal relationship thereby, making sharing of information easy. Other
factors affecting customer loyalty includes convenience, expectation and reputation that draws

10PROPOSAL
the employees towards the specific business organizations. Dell Inc is failing to identify the
essential factors that determine customer loyalty that is challenging for the company.
3.7 Impact of after sales service on customer loyalty
The customers show increased interest of purchasing from the business organization that
is able to fulfill their pre and post purchase requirements. According to Prentice (2013), the
business organizations are able to retain customers by providing excellent customer service. It
might be that the customers encounter issues in the product and the service they have purchased.
This is where after sales service comes into action where the employees of the company need to
act promptly in attaining the customers and solving their queries. However, as argued by
Gamboa and Goncalves (2014), apart from retaining customers, effective after sales service helps
in attracting new customers. As the existing customers spread positive word of mouth for the
business organization in terms of their efficiency in handling customer queries and complaints,
new customers are attracted easily thinking they will receive similar after sales service. Dell Inc
is failing to provide effective after sales service to the customers that are creating issue for the
company.
3.8 Challenges encountered in providing efficient after sales service
Effective and efficient after sales service is difficult to achieve due to various reasons.
According to Yoo and Bai (2013), availability is one of the major issues in providing effortless
after sales service. This is because help might not be available for the customers whenever they
need it. This creates a negative impression of the company on the customers, as they feel that
they are not being valued and given required attention. The customers fail to consider the
viewpoint of the business organizations if they fail to fulfill the expectation of the customers any
time. However, argued by Rafiq, Fulford and Lu (2013), the processes involved hinder effective

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after sales service. Some of the service centers are process driven due to which the employees
are divided in accordance with their specialization. Under such circumstances, the complaints
and queries of the customers are not handled appropriately by the employees. Dell Inc is facing
some of the aforementioned challenges in providing effective after sales service.
3.9 Summary
Thus, it can be summarized that after sales service is of utmost significance for the
business organization for achieving and improving customer loyalty. In doing so, Dell Inc needs
to make the target customers feel important and valued after they have purchased from them.
This will help in developing satisfaction followed by customer loyalty towards the company that
is essential or surviving in the competitive market.