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THE EFFECT OF Customer
Services on Customer Satisfaction and Loyalty in Honda Atlas Cars Pakistan
Limited

 

By

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Danial Ali (BBA HONS)

 

Department of Management Sciences
Hazara University

 

This report is submitted to Maam
Rizwana.

 

 

 

 

 

December, 2017

 

 

 

 

 

 

 

 

ACKNOWLEDGEMENT

My gratitude
goes to the Almighty God for granting me good health, guidance, and helping me
this far in my education.

I wish to
express my gratitude to my teacher Maam Rizwana lecturear at Hazara University
Mansehra for her support, directions, encouragement and guidance which helped me
to complete this work.

I am also to
may group members they supported me throughout this work and encouraged me to
present this report.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEDICATION

This work is
dedicated to the Almighty God for His protection and guidance, and my entire
family.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

                                                                                                                       
  Page

Title
page                                                                                                            i  Acknowledgements                                                                                         
ii  Dedication                                                   
                                                      iii

 

CHAPTER ONE: INTRODUCTION       

Background
of the study          

Statement of
the problem          

Objectives
of the study          

Research
questions        

Significance
of the study                   

Limitations
of the study          

Organization
of the study        

 

 

 

 

 

 

 

CHAPTER TWO: LITERATURE REVIEW   

Introduction

Definition of customer services

Customer satisfaction

Customer loyalty

Relationship of customer services and customer
satisfaction

Relationship of customer services with
loyalty

Effects of customer services on customer
satisfaction and loyalty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER ONE:

                                                          
INTRODUCTION                                               

Background of the study

The impact
of customer services is huge on customer satisfaction and loyalty. In

order to
understand these factors we need to explain the key words and their

 meanings. Customer satisfaction in other words
emphasis on the high quality

relationship
with the customer, which in turn determines the satisfaction and

loyalty of
customer for services provider .The most important goal and objective

 of any organization is customer satisfaction
and retention in long  term

attainment
of the goal. Customer retention cost less than that of attracting new

 customer. A famous marketing theory of (Reichheld and Sasser) (1990) which

suggested that new buyers  cost more to serve than repeat customer,
which

 means that repeat customers are benefiting  a
firm’s cost structure.

 

Today,
constant progress in customer services from Honda Atlas Cars Pakistan

 limited and customer satisfaction and loyalty
due to increase in awareness of the

 customers and immense competition by other
organizations in this field

particularly.
This research intends to test
whether the Honda Atlas Cars Pakistan

 Limited customers are satisfied with the
services provided to them, which will

 eventually lead to satisfaction & loyalty.

Keywords:
customer services, customer satisfaction, customer loyalty.

 

Statement of the problem:

As customer
services affect the customer behavior about the product provided to

 them especially in this field where
competition is at its peak and buyers has so

many options
and alternatives to fulfill their need and with luxury. Customer

services,
therefore plays an important role for satisfaction, retention & loyalty.

 With the passage of time customer not only
wants the comfort but style and

luxury too,
here comes the role of customer services which helps in

understanding
the needs of the customers and new styles and comforts as per

 their demand. Therefore, the purpose of this
study is to identify these needs and

 steps taken to solve these challenges faced by
the organization.

The  purpose of the study is to determine the
Effect of the customer services on

 customer satisfaction and loyalty in Honda
Atlas Cars Pakistan limited . 

Objectives of the study :

The
objective of the study is to determine the effect of customer services on

 customer satisfaction and loyalty in Honda
Atlas Cars Pakistan Limited and

factors
associated with the customer satisfaction and loyalty.To access the effect

 of customer services on customer loyalty and
satisfaction. To identify the factors

 the creates dissatisfaction among the
customers.

 

 

 

 

 Research Questions:

This section
deals with the formulation of the research question that will help to

 achieve the objectives of the study. These
are:

1-      What are the effect of customer
services on customer satisfaction and loyalty?

2-       How customer services effects the customer
satisfaction and loyalty?

3-      How customer services can be
improved?

4-      What customer services help to
increase the customer satisfaction and loyalty?

5-       How customer services determines the customer
satisfaction and loyalty?

 

Significance of the study:

    
   This study examines the effects of customer services on
customer satisfaction

 and loyalty Honda Atlas Cars Pakistan Limited.
This study helps us to understand

the impact
of customer services in Honda Atlas as compare to the other

organizations
of the same field .This study will provide us the bases for the

 increasing of the customer services and their
impact on customer satisfaction

 and loyalty.

         The findings of the study will help in
better policy making and management

in Honda
Atlas Cars Limited Pakistan . This study will provide Honda Atlas Cars

Pakistan
Limited with valuable information for their customer satisfaction and

loyalty.

 

 

Limitation of the study:

This research has certain limitation that is why it is
confined to the Honda Atlas

Cars Pakistan Limited due to lack of time and in adequate
financial resources.

Furthermore, the non-co-operative attitude of some of the
respondents reduced

the number of people interviewed than the researcher had
originally intended.

Finally, inadequate financial resources and lack of organized
data was a limiting

factor,However, despite of these hurdles all efforts were
made to come out with

thorough research and complete findings to reach close to
problems faced by this

organization and give quality services to their employees .

 

Organization of the
study:

Chapter
One
Introduction
Ø 
Background of
the study
Ø 
Statement of
the problem
Ø 
Objectives of
the study
Ø 
Research
questions
Ø 
Significance of
the study
Ø
Limitation of
the study

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chapter Two: Literature
Review

Introduction

This chapter includes the definition
of customer services, customer satisfaction, customer loyalty, relationship of
customer services and customer satisfaction, customer services with loyalty and
effects of customer services on customer satisfaction and loyalty in
perspective of literature review.

 

Definition of Customer services:

”Customer service is all of the
retailer activities that increase the value received by consumers when shopping
(Levy, Weitz; 599)”.

According to this definition the
customer services are those activities of retailers that are undertaken for
purpose of increasing the value and in turn increasing the loyalty of customer.

 

According to another definition,
customer service is the sum total of what an organization does to meet customer
expectations and produce customer satisfaction (Institute of Customer Service).
Customer satisfaction can be provided by meeting customer expectations. To meet
these expectations, retailers must provide excellent customer service.

 

Product and service quality:

Refers to the all features and
characteristics of the product and service quality that can satisfy the stated
and implied need of the customer.

 

Customer satisfaction:

A person’s feeling pleasure or
disappointment from comparing a product’s perceived performance (to outcome) or
his expectation.

How customers do perceived their
expectation?

v By learning, past experiences, this
is direct learning.

v Indirect learning by friends
competitor’s information.

 

It is generally
accepted that satisfaction is a psychological state that results from consumer
experiences after consumption (Pleshko, & Heiens, 1996). According to this definition customer satisfaction is
result of pas experiences after disposing of that product. Not just feeling but
expectation about the product also influences the buying behavior and
satisfaction of product.

 

According to a
widely accepted conceptualization, customer satisfaction is “a

Customer’s
post-consumption evaluation of a product or service” (Mittal & Frennea).
Post evaluation of any product gives us three behaviors about the product

these are:

v Excited customer:
That type of customer who expected less but the product gave him
more satisfaction.t5his type of customer will purchase the same product more
than once and prefers it to others too.

 

v  Satisfied
customer: when expectation meet the product performance the customer is
said to be satisfied. This type of customer will think to repurchase the
product .

 

v  Unsatisfied customer: When
customer expectation are not met the product’s performance then customer is un
satisfied customer.

 

 

Customer loyalty:

(Palmatier et al.,
2006). Defined loyalty as ”Customer loyalty broadly refers to customer
behaviors that indicate a desire to better an ongoing relationship with a
company” The customer’s willingness to purchase again from the company,
having a preference for the company, or recommending the company to others
could be indications to customers’ desire to remain in a relationship with a
company that demonstrate how much a customer is related to a company. Loyal
customers are often worth the marketing effort, owing to their willingness to
buy additional products and spread positive word of mouth.

     Loyalty of customer deeply depend on the
life time value of product and relationship with customers.

 

Behavioral Approach,

 Loyalty is defined as a way of behavior. The frequent
purchases indicate the positive behavior of the customer, which refers to the
loyalty

 (Hartmann, Ibanez; 2662). The problem with
behavioral approach is that steady and repeat purchases do not always arise as
a result of the psychological loyalty toward a product, service or retailer.
The factors such as the price and the proximity may be influence the buying
decision of the consumer. Therefore not every buying is a loyalty.

Attitudinal Approach is the psychological sensation or
behavior of the customer. According to this approach the loyalty is personal
behaviors of the person this behavior varies from person to person. Customers
have different expectation and emotions about the product. These emotions can
determine the loyalty of customer and its behavior about the product.

Composite Approach

    
       Is a synthesis of the
attitudinal and the behavioral approach that measures loyalty through the
customer’s product preferences and time in which he/she switches brand, power
of purchasing, and total amount of purchase. This sort of approach increases
the loyalty of the customer.

 

 

 

Relationship
of customer services and customer satisfaction:

Customer satisfaction and customer satisfaction are deeply
related to each as satisfaction is the post behavior of the customer for the
product.Quallity customer services can increase the behavior of the customer
for our product and vice versa. By this we can say there is a direct relation
with the customer service and satisfaction of the customer.

Relationship
of customer services with loyalty:

Customer services have huge impact on
loyalty of the customer. Customer services can enhance the behavior of customer
to re buy the product like satisfaction the loyalty is also a post behavior of
the customer. Loyal customer will be the one who has trust and full satisfaction
about the product so both have positive relation.

 

Effects
of customer services on customer satisfaction and loyalty:

As both the variables has positive
relation with customer services so customer services have huge impact on the
satisfaction and  loyalty both
satisfaction and loyalty are post behavior of the customer if quality customer
services are provided like warrantee, 
repairs insurance etc can attract the customer to re buy the same
product his/her loyalty will definitely increase.

 

 

 

 

 

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