Abstract

 To be successful, organizations must look into the needs and wants of their customers. Customer satisfaction is important because many researches have shown that customer satisfaction has a positive effect on organization’s profitability. Not only the product they purchase can satisfy customers, but also by the service they got from the organization.

The main objective of this study is to asses either after sale services that are offered to customers just after the sales stage have an effect on customer satisfaction and loyalty in COGENI Buea. Data was collected from 24 after sale service customers through questionnaire, 2 after sale service technician coordinators and 5workers or staff at COGENI and 1 manager through questionnaires.

The technique of analysis used in this study is descriptive (frequency). Results indicate that discovered after sale services (maintenance, installation and delivery) has effect on customer satisfaction and loyalty, and after sale service satisfaction and loyalty has positive relationship. In addition, different companies provide same after sale service in different way, and the way their offer the service for their customer has a significant difference on the satisfaction of customers.

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

Customers play an important role in every business. The main purpose of every business is to satisfy its existing customers and to attract new customers. Satisfaction of customer is so basic that, it cannot be considered as a separate function in business.

According to Posselt and Eitan (2005), improved customer satisfaction will lead to improved customers satisfaction and loyalty which will eventually improve profit. In order to satisfy our customers, we have to focus on effective customer services to meet their needs.

Customers satisfied by the product they purchased and by the service they got from sellers during and after they purchase the product. In Cameroon, it is common to hear and read words like “goods not refundable after purchase or payment before service” from small shops and supermarkets to big companies. This shows that the relationship between buyers and sellers cease after the delivery of goods or services and after the payment of the goods. As Kotler (2002) stated, selling process should go beyond the delivery of goods and services and there should be “follow – up” step that a company should apply to ensure customer satisfaction and repeat business to make sure that there was proper installation, instruction and service. Many companies in Ethiopia have no after sale service and they do not understand benefit of giving after sale service.

According to Ehinlanwo and Zairi (1996), delivery of after-sales service is becoming increasingly critical as businesses do everything in their power to be more cost effective, boost profit margins, and meet customer demand for a product or service. In addition, Potluri and Hawariat (2010) shows that the offerings in product design, technology and price are becoming increasingly difficult to differentiate products as a result, companies have to provide after sale service for their customers.

As a result, the building material company provides after sale services for their customers in order to satisfy those customers and to make them loyal. Hence, the researcher wants to assess the role of aftersales services in fulfilling customer’s satisfaction and loyalty in COGENI Buea.

1.2. Statement of The Problem

Customer satisfaction is the priority of every organisation or company. Prior to that, their satisfaction to some extend will lead to their loyalty. However, quality after sales services in some companies will lead to more customers being satisfied. As such customers are not being satisfied as expected. According to the 80/20 Pareto (the Italian economist Pareto) rule, 80 per cent of a company’s profit comes from 20 per cent of the customers.

A further dimension to this would be that, 80 per cent of the total cost to service would be generated from 20 per cent of the customers. Smith (2007) shows customer satisfaction is critical to any product or service, because it is a strong predictor of customer retention, customer loyalty and product repurchase.

As the nature of the products (electrical appliances and generators) in the building material company is highly vulnerable to technical and mechanical problems, effective after sale service is very essential in order to attract new customers and retain existing customers.

Based on that the researcher have examined that the after sales services offered by Cogeni (delivery service and installation and maintenance) is not enough to make their customers to be satisfied and also boost their loyalty as such, other aftersales services need to be applied to ensure their satisfaction and loyalty for example, warranty conditions, repairs, online support and user training.

Thus, it was appropriate for the researcher to study the role of after sale service on customer satisfaction and loyalty. As a result, the researcher wants to assess the role of after sale services on customer satisfaction and loyalty in COGENI COMPANY BUEA.

1.3 Research questions

To achieve the intended purpose as well as the research problem stated above, the researcher has designed the following research questions.

1. Do the after sales services offered by COGENI companies have a role on customer satisfaction and loyalty?
2. Does each after sale service offered by COGENI reliable and responsive?
3. What aftersales services are highly desired by customers?

1.4 Objectives Of The Study

Main objectives:

To assess the role of after sales services on customers’ satisfaction and loyalty in COGENI COMPANY.

Specific objectives

1. To assess the role of after sales services on customers’ satisfaction and loyalty.
2. To examine the reliability and responsiveness of aftersales service in COGENI.
3. To assess the aftersales services that is highly desired by the customers.