Measuring and improving customer retention at authorised automobile workshops after free services.
Journal article
Authors | Kumar, Anil, Luthra, Sunil, Khandelwal, Dinesh Kumar, Mehta, Rajneesh, Chaudhary, Nityanand and Bhatia, Sukhdev |
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Abstract | Customer retention is vital for businesses with much research literature now available. But nothing has been investigated regarding measuring and improving customer retention at authorised automobile workshops after free services. Even after providing extensive warranties and other free service benefits, customers don’t use authorised workshops although their vehicles are still under warranty. By not arranging regular maintenance services, customers lose warranty benefits, with product performance and safety related awareness undermined; companies lose huge business potential. Therefore, this study aims to measure and improve customer retention at authorized automobile workshops after free services. To achieve this, a four-phased study has been conducted. In phase one, a combination of a literature review and expert opinions is used to identify customers’ retention factors. The second and third phases describe how data is collected from industry experts and customers. Analytical Hierarchy Process (AHP) and Decision Making Trial & Evaluation Laboratory (DEMATEL) are used to prioritise and examine inter-relationships among factors. In the last phase, the study recommends three business strategies to help a company to improve customer retention and make their Annual Maintenance Contract (AMC) product more customer friendly. |
Customer retention is vital for businesses with much research literature now available. But nothing has been investigated regarding measuring and improving customer retention at authorised automobile workshops after free services. Even after providing extensive warranties and other free service benefits, customers don’t use authorised workshops although their vehicles are still under warranty. By not arranging regular maintenance services, customers lose warranty benefits, with product performance and safety related awareness undermined; companies lose huge business potential. Therefore, this study aims to measure and improve customer retention at authorized automobile workshops after free services. To achieve this, a four-phased study has been conducted. In phase one, a combination of a literature review and expert opinions is used to identify customers’ retention factors. The second and third phases describe how data is collected from industry experts and customers. Analytical Hierarchy Process (AHP) and Decision Making Trial & Evaluation Laboratory (DEMATEL) are used to prioritise and examine inter-relationships among factors. In the last phase, the study recommends three business strategies to help a company to improve customer retention and make their Annual Maintenance Contract (AMC) product more customer friendly. | |
Keywords | Customer retention; Preventive maintenance services; AHP; DEMATEL; Annual Maintenance Contract (AMC); Warranty benefits |
Year | 2017 |
Journal | Journal of Retailing and Consumer Services |
Publisher | Elsevier |
ISSN | 0969-6989 |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.jretconser.2017.07.007 |
Web address (URL) | http://hdl.handle.net/10545/623290 |
hdl:10545/623290 | |
Publication dates | 29 Jul 2017 |
Publication process dates | |
Deposited | 14 Jan 2019, 14:57 |
Accepted | 24 Jul 2019 |
Rights | Archived with thanks to Journal of Retailing and Consumer Services |
Contributors | BML Munjal University and Government Engineering College, Nilokheri, India |
File | File Access Level Open |
File | File Access Level Controlled |
https://repository.derby.ac.uk/item/9450x/measuring-and-improving-customer-retention-at-authorised-automobile-workshops-after-free-services
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