An empirical evidence of factors affecting customer retention after sales in the luxury car industry: case of India

Rakesh Naru, Arvind Kumar Jain and Sushil K. Rai

International Journal of Business Excellence, 2024, vol. 33, issue 2, 254-276

Abstract: After sales service is as important as sales operations in the car industry and enables a strong platform of customer retention. To avail the after sales services, the customer relationship management (CRM) mostly uses customer-calling system for getting the cars, which are due for periodic maintenance service (PMS) in the workshop. The present study addresses this issue by examining the factors that influence the appointment system and affect the customer retention for aftersales luxury car industry in India. The data was collected through a structured questionnaire and distributed among the employees who are directly responsible for the appointment system. Factor analysis has been applied to extract the factors that affect customer retention. The study found that awareness about online-booking system and cost of the services are crucial factor for increasing the appointment or vehicle inflow to a workshop. Further, the study revealed the movement from generic marketing to customer-focused program and development of close loop online booking system.

Keywords: customer retention; after sales; luxury car industry; factor analysis; India. (search for similar items in EconPapers)
Date: 2024
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