DISSERTATIONS REPORT

STUDY OF READINESS OF AFTER SALES SERVICE OF LUXURY CARS TO

ALIGN WITH ITS 2020 PERSPECTIVE IN DELHI
Submitted by
Anshul Narula
A0102214102
MBA Class of 2016
Under the Supervision of
Dr. Sumeet Singh Jasial
Assistant Professor
Department (Operations)
In Partial Fulfillment of the Requirements for the Degree of
Master of Business Administration (Marketing & Sales)
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

DECLARATION

The title of Dissertation Report is study of readiness of after sales service of luxury cars
to align with its 2020 perspective in Delhi.
I declare that (a) the work presented for assessment in this Dissertation Report is my
original work, that it has not previously been presented for any other assessment and that
my debts (for words, data, arguments and ideas) have been appropriately acknowledged;
(b) work conforms to the guidelines laid by the University, and (c) Plagiarism for this
report has been checked using turnitin software and is 9 %. The summary of report is
attached along with for reference.

Date:

Anshul Narula
A0102214102
MBA M&S
(Class of 2016)

CERTIFICATE

This is to certify that Anshul Narula student of Masters of Business Administration

M&S at Amity Business School, Amity University Uttar Pradesh has completed the
Dissertation Report on study of readiness of after sales service of luxury cars to align
with its 2020 perspective in Delhi, in Partial Fulfillment of the Requirements for the
Degree of Master of Business Administration Marketing & Sales under my guidance.
The report has been checked for the plagiarism and it is acceptable.

Dr. Sumeet Singh Jasial

Assistant Professor
Department (Operations)

LETTER OF ACKNOWLEDGEMENT

Dear Readers,
I am extremely thankful to my mentor and guide Dr. Sumeet Singh Jasial
for her constant support, encouragement and guidance, without which I
could not have successfully completed my project on the subject of Study
off readiness of after sales service of luxury cars to align with its 2020
perspective in Delhi. I would also like to thank all the participants of the
research, my family& friends and of course fellows who spared their
valuable time to help me and provided us the guidance to finally come up
with this report. I will seek my continuous assistance and support in future.

Sincerely,
Anshul Narula
MBA-Marketing & sales (2014-2016)
A0102214102

Table of Contents
Contents
Chapter 1: Introduction........................................................................................................1
1.1 Introduction................................................................................................................1
1.2 After Sales Service in the Automobile Industry.........................................................2
1.2.1 Suppliers of the automobile.................................................................................2
1.2.2 Producers of the automobiles..............................................................................3
1.2.3 Dealers of the automobiles..................................................................................3
1.2.4 Buyers of the automobile....................................................................................3
1.3 Problem Statement.....................................................................................................4
Chapter 2: Literature Review...............................................................................................4
Chapter 3 : Research Methodology.....................................................................................6
3.1 Research Design.........................................................................................................6
3.2 Objectives of study.....................................................................................................9
3.3 Limitations.................................................................................................................9
Chapter 4: Data Analysis.....................................................................................................9
4.1 Statistical analysis......................................................................................................9
4.2 Response charts........................................................................................................10
4.3 Cross Tabs................................................................................................................47
4.4 Factor Analysis.........................................................................................................52
Chapter 5: Findings............................................................................................................60
Chapter 6: Recommendation & Conclusion......................................................................61
Conclusion.........................................................................................................................62
References..........................................................................................................................62

LIST OF TABLES

LIST OF FIGURES
Figure no.
Figure 4.1
Figure 4.2
Figure 4.3
Figure 4.4
Figure 4.5
Figure 4.6
Figure 4.7
Figure 4.8
Figure 4.9
Figure 4.10
Figure 4.11
Figure 4.12
Figure 4.13
Figure 4.14
Figure 4.15
Figure 4.16
Figure 4.17
Figure 4.18

Name
Responses of ownership of luxury car
brands.
Companies efficiency in after sales.
Difficulty in maintenance of luxury car.
Difficulty in maintenance of luxury car.
Preference of service stations
Affect on brand choice due to after sales
Company having enough service stations
Company providing on road assistance
Justification of service costs.
Responses on notification by the company
Responses on appropriation of service
duration
Responses on cost of service
Responses on security during servicing of
car
responses on duration of service
Responses on location of service centre
Responses on communication between
company & customers
Responses on quality of service
Responses on authorization of service
centers.

Page no.
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46

ABSTRACT
Purpose of this study is to Study off readiness of after sales service of luxury cars to align
with its 2020 perspective in Delhi. This study examines the relation of satisfaction level
of luxury cars owners with after sales service. In February 2016, questionnaires were
sent out to a sample of people comprising of luxury car owners; mostly businessmen and
employees working in high end companies. It included 18 questions, relevant to the topic
of the study. A Total of 70 usable replies were received. The respondents belong to
different localities of Delhi. The statistics of each question of all 70 respondents was
taken on list and then categorized according to 18 different questions.
The score of each question was then averaged by the respondents and then the percentage
responses were determined.

Chapter 1: Introduction
1.1 Introduction
After-sales service is one of the most deliberated facets of the Indian automobile industry.
Urban customers, with increasing regularity, are demanding an improvement in services
offered by car manufacturers. Companies themselves are aware of this changing trend,
with a consumers loyalty proportionate to the quality of after-sales service.
A collective term for attention to a transaction that normally takes place after the sale
(and often after delivery) is accomplished. Typical after sale service functions include:
installation, training, warranty-related repair and replacement part support. After-sale
service is an extremely important consideration because of the normally greater distances
between sellers and buyers in international trade. Some international contracts as
distribution contracts include a clause of after-sales services and maintenance: The
Distributor undertakes to carry out with its own staff and means, and assume the costs of,
and adequate after-sales and maintenance service for all Products sold within the
Territory. The Supplier shall provide the Distributor with the spare parts and other means
required to service the warranty conditions of the Products.
Lele and Karmarkar, 1983 said, "After-sales services" are often referred to as "product
support activities", means that all activities that support the product-centric transaction.
Vitasek, 2005,

Elaborated the statement that "After-sales services" has been used the

most, to describe services that are provided to the customer after the products have been
delivered to the customer and It also being explained as "customer support" elements,
where all activities that ensure that a product is available to consumers "over its useful
lifespan for trouble-free use" said by Loomba, 1998. Profit margins can be turned high by
delivering the after sale service in comparison with product sale without it stated by
According to Alexander (2002) and Baumgarter (1999).
Saccani , 2006 ,Various authors have told and pointed that the after sale service play valid
key roles in supporting the marketing activities for the enhancement of customer
retention and loyalty, which will further fetch more profits in the long run.
1

The generation may be at least 3 times the turnover when compared to the original
purchase in a given lifecycle of a product. There are many ways in which the customer is
connected to a brand and one of the major one is after sale services. it can also be taken in
a way that after sale service is a way to recover profits which were lost due to high
competition on the selling prices of the equipment,at the same time its a way of forming
constant connection with the brand (Gallagher 2005). While on the other hand lewis
(2004) stated how it affects the brand image of the firm and gets affected due to same. So
after sale is a potential source of gaining competitive advantage over your competitors.
Armistead and Clark 1992; Goffin 1999 have stated after sales in a simpler terms , it can
be defined as periodically repairing and maintaining of the equipments by the
manufacturer or the supplier during and after the warranty period of the same.
In the automobile industry, after-sales service are commonly defined as "all activities
geared towards maintaining the quality and reliability of the car carried out after the
customer has taken delivery with the goal of ensuring customer satisfaction".

1.2 After Sales Service in the Automobile Industry

After sale of the products and the services cannot be considered as independent factors of
the product when talked about the market share and the profit generated , as the products
are being used to enter the market but the margins are charged on the aftermarket which
is the market of spare parts. the resent study of General Motors corporation states that
company made profits of $150 billion profit with the sale of cars but made more profit of
$9 billion with the after sales. In any car manufacturing company the value system is the
combination of four major attributes , which are buyer who buys the product , seller who
is selling the product or making it available ,part suppliers and the procedures of the car.
All of these are affected by the change or movement in the car industry.
Some major factors affecting the four main players of the market are:1.2.1 Suppliers of the automobile
The tendency of globalization and internationalization which increases the competition
among companies globally and the product sourcing strategy followed globally. There
has been change which makes a component supplier to a partner in the system and
2

integrates him in the system. The quality management process is the bases of the
integration into the system of the producer.
1.2.2 Producers of the automobiles

There are various factors affecting automobile producers such as Concentration of

corporate strategies on product, innovation of co operations and processes, Emphasizing
on the customer development and loyalty of repeatedly buying at the points of sale. The
choice manufacturing place and the cost cutting and minimizing strategies have become
the key focus of the corporate strategies , this is because the profits have decreased so to
maintain the margins and turnovers the same is done. Thinking across the global
boundaries ,which states that not only think about the customer in your country but the
customers who are potential buyer from all over the globe. There have been high
concentrations on the returns to be made on investments. Increasing the use of trading
tactics.
1.2.3 Dealers of the automobiles
In the European markets there has been situations in which the industries are not being
able to sell as much they are producing , in simpler words the production in way higher
then the sales , so the dealers are forced to move out and do business in other countries.
There has been reduction in the profits and returns , underutilization od the resources ,
loss in business of after sale car market which includes the second hand cars and the
spare part market, high producers are being put by the producer to sell more, difficulty
levels have increased in telling the differences in the available models. So it can be said
the dealers of the automobile market are not in the state they desire for.

1.2.4 Buyers of the automobile

As being one of the major automobile buyers there are various factors influencing them
such as, the buyer is now highly aware about the price and quality, the requirement of the
services and the importance being given to the same have increased drastically, the
demand is for a tottaly new concepts.

The after sales when thinking of a producer can consist of 3 major departments : the
accessories , parts , and pure services ehich are technical in most number of cases. The
division was required partly because of the huge differences in the profits margins which
were made on the parts and other common accessories ,but also because of the imported
car segments whose accessories were imported from the international markets. this
actually made after sale somewhat service oriented rather than completely product
oriented. In the current scenario it has become product plus service oriented. The
products are defined as the parts and pieces that are to be fitted in the car to meet the
demands of the customers and on the other hand services are defined as interaction
required to be done with the car owner to know customers requirements with the purpose
of completely satisfying him.
.

1.3 Problem Statement

Luxury car segment being one of the rapid growing markets in India, which is affecting
GDP to NNP on a grand scale. And the fact that after sales service is one of the major
factors in this growing segment. So, it makes it very important to know about the
readiness of India on the perspective of coming future. As after-sales service is a segment
which generates some great revenue for the companies.

Chapter 2: Literature Review

Many studies have been or are being conducted in the area of after sales services
especially when we talk about automobile industry. These studies have revealed the
important role played by after sales service in the automotive industry. Over the period
4

studies conducted has show how companies can take advantage over others by adapting
to the change of modern times. i.e., providing customer the best quality of after sales
services to maintain a loyal customer and generating revenue from that loyalty.
With a satisfaction level of 80-100% Nissan has ranked their after-sales service of
distribution policy a very effective process. While its after-sales services were ranked
partly effective with only 45-59% of the satisfaction level.
With the satisfaction level of their distribution and service policies 60-79%which are
effective, Fiat has ranked their after-sales promotion but with 40-59% satisfaction level.
Their after-sales price policy was only ranked as effective in partly manner.
An Empirical Analysis conducted by Dirlenbach, Automotive After-Sales-Service
Innovations has revealed that, the link between long term success of a service and the
customer orientation innovation was both calculative in the quantitative as well as the
qualitative analysis. from the results of the defined qualitative interviews, It was also
deduced that, taking up customer needs by actually connecting

forces in the

improvement of such features would increase the chance of a victorious service

innovation or by either actively attaining feedback of the new characters of after-sales
services. A further finding of the project showed the positive impact of the ITprofessionalism on short term of success.
Jain of "Honda Motors" conducted A report on Effect of After-Sales Services on
Consumer Satisfaction and preferences to find if there is a strong link between after-sales
service offered by the company with customer patronage and satisfaction. After-sales
services offerings was studied in expression of reliability of warranties and guarantees,
car insurances, free service and customer education provided for driving the car.
Bain and Co conducted a Automotive survey which had results like Improving the aftersales service help in retention of the customers and an beholden article written by
Lamoure, Hoffmann, and Flees interpreted the results of surveys which were conducted
by, a popular consulting firm. Asserting that the way of winning new customers requires
the car manufacturer to develop more hi tech, joyful, and good millage vehicles, a task
that could take lot of months and years of professional and expertise investment. But the
5

study suggests that companies have had the chance to improve performance of their
business in short term by putting focus on the customers to whom they already have been
doing by offering the really good after-sales service.
When the vehicle gets aged and the warranty period ends at that time commonly the
attachment of the owner towards the brand ends. But the same happens only about a
period of about four five years from the time the vehicle was purchased. The company
should try to take advantage on the lolayty part by making regular visits and being in
touch with the customer.this will create a win win situation for both the parties. This
basically tells how important is ti be in touch with the customer in a critical time period
when the customers are looking to buy a new vehicle. This is the actual meaning of
customer retention.
There was a report written by Verma and Sarkar which was published in The Economic
Times. the same was regarding the dissatisfaction level of Indian consumers with after
sale services being offered by the dealers of luxury car dealers , the luxury car companies
had to do lot of efforts and hard work and had to develop themselves in a huge way
before they could promise a service support fitting they were planning for their image in
India. Concluding that the luxury in India had some limitations , among which after sale
servicing was one.

Chapter 3: Research Methodology

3.1 Research Design
Descriptive research methodology has been used for conducting this study. Instruments
like questionnaire and interviews were used for surveying and data collection. Surveys
were used for obtaining data from the individuals reading their own experiences with
6

after sales services in the luxury car segment. There were two types of research which I
used as my major tools for collecting information, which follows:

Qualitative research

Asking broad questions and collecting data in the form of words, images, etc. that is
analyzed and searching for themes .Qualitative research was used for conducting
exploratory research for later analysis to be done in the study. The same was in the
context of theoretical ad philosophical issue of social development This type of research
in laymans language can be stated as analyzing the only the qualitative parameters of
respondents. In this research, I measured the satisfactory level of the dealers by asking
them few questions regarding the benefits provided to them which showed an amazing
result.

Quantitative research

In quantitative research I basically collected information by conducting interviews and

making them fill the questionnaire. All the information collected and analyzed are to be
presented in the form of pie charts and graphical figures. Quantitative research is linked
with the philosophical and theoretical stance of positivism. This is the research includes a
survey to be conducted with the help of a questionnaire which I have added as an
annexure in this report.
By using both quantitative and qualitative research tools, I was able to conduct a survey
including 70 respondents including various luxury car owners. While conducting this
survey I was able to establish a great contact with each one of them and was able to
collect valid responses. Which later I summarized and presented in an efficient manner
with the help pie charts and tables, and I was able to state all the major finding and give
some recommendations and in the end I concluded my result explaining what my
research has been all about.

When I started conducting this research the statement of objectives were lower in
numbers but when once I started a in detailed analysis I realized that there are various
variables which could be included in the questionnaire , which should be included in my
report. Before conducting the research i had a strong encounter with various sales
employees from different luxury brands which helped me gather some in depth
information which could be used as some important statement or the basis of analysis
regarding my research. After this I constructed a questionnaire including all the variables
affecting my research subject which I gathered from my mentor mr. sumit singh and other
sources. I faced some real hard problems conducting this research as fir I was thinking to
go for 100 respondents but due to the subject being limited to the luxury cars owners I
had to decrease the sample size to 70 respondents. And after this the information I was
really seeking for was still really difficult as the respondents didnt had the time or
interest to fill up my questionnaire. I had to exercise these questionnaire by performing a
interpersonal communication channel to get the respondents show interest in m y research
and all the hard work came in handy I was able to gather some real crude information.
Which I analyzed by using cross tabs method and represented this analyzed data in an
organized way with help of some pie charts tabular figures and charts as featured in
chapter IV of my research.

3.2 Objectives of study

To study and analyze the readiness of after sales service of luxury cars to align with its
2020 perspective in Delhi, So survey has been conducted on the sample of 70 luxury cars
owners.

To understand effectiveness of after sales service among luxury car owners.

To elaborate the importance of after sales service in the automotive industry.
Factors that influence decision-making for getting a luxury car services.
To understand satisfaction level of the luxury cars owners with respect to
comparison of perception between BMW, Audi and Mercedes.

3.3 Limitations
1. As project being Time constraint, it acts as a limitation for conducting my
research.
2. Its only a developing segment so speculations made can never be accurate.
3. Survey findings were limited as scope of sample was only 70 luxury cars owners.
4. As being Informatory project information was to be collected from internet which
was limited.

Chapter 4: Data Analysis

4.1 Statistical analysis
The analysis of the report has been done on the people answering the concerned
questions. The categorization was done by taking statistics of different questions
answered by all the 70 respondents. The score gathered from each question was then
9

divided by the number of respondents and percentage responses were determined and
using those figures, the tables and charts were made which are discussed further. Based
on these percentages, various findings were determined.
4.2 Response charts
Presented below are the different percentage responses of the participants to the different
questions of the survey questionnaire.

1. What luxury brand's car you own?

BMW: 25.61% Audi: 24.39% Mercedes: 21.95% JLR: 8.54% others: 19.51%

10

Answer

Count

Percent

BMW

21

25.61%

Audi

20

24.39%

Mercedes

18

21.95%

JLR

8.54%

Others

16

19.51%

Total

82

100 %

20%

40%

Table 4.1. Responses of ownership of luxury car brands.

11

60%

80%

100%

20%

26%
BMW

9%

Audi
Mercedes
24%

22%

JLR
others

Figure 4.1 Responses of ownership of luxury car brands.

Interpretation
As most of the respondents has answered BMW (25%) , and the second best answer was
Audi (24%) , and other respondents have chose Mercedes (22%) , and then JLR (8%) as
their car owned. BMW has emerged as a brand most owned which could be because of
their goodwill in the market.

12

2. Which company provides the most cost efficient after sales service?

BMW: 13.16% Audi: 26.32% Mercedes: 36.84% JLR: 6.58% others: 17.11%

Answer

Count

Percent

BMW

10

13.16%

Audi

20

26.32%

Mercedes

28

36.84%

JLR

6.58%

Others

13

17.11%

Total

76

100 %

20%

40%

60%

Table 4.2 Companies efficiency in after sales.

13

80%

100%

13%

17%
7%

26%

BMW
Audi
Mercedes
JLR

37%

others

Figure 4.2 Companies efficiency in after sales.

Interpretation:
According to respondents Mercede36.4% can be considered as most cost efficient after
sales provider as the companys loyalty and their responsibility can easily be comprehend
by their product and their services. The second most cost efficient company could be
derived as Audi with 26% result in their favor.

14

3) Which company provides the best quality after sales services?

BMW : 21.52%Audi : 30.38%Mercedes : 29.11%JLR : 7.59%others : 11.39% Audi :

30.38%

20%
Count

BMW

17

21.52%

Audi

24

30.38%

Mercedes

23

29.11%

JLR

7.59%

others

11.39%

79

100 %

Total

40%

Percent

Table 4.3 Companies quality in after sales.

15

60%

80%

100%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
BMW

Audi

Mercedes

JLR

others

Figure 4.3 Companies quality in after sales.

Interpretation:
With the result of 30% in their favor, Audi can be considered as the best quality after
sales service provider and as being the holder of 29% votes by the respondents Mercedes
is the second best quality after sales service provider.

16

4) Do you agree that It is difficult to maintain a luxury car.

Strongly Disagree : 4.29%Disagree : 18.57%Neutral : 30.00%Agree : 32.86%Strongly agree : 14.29% Agree : 32.86%

20%
Count

Strongly Disagree

4.29%

Disagree

13

18.57%

Neutral

21

30%

Agree

23

32.86%

Strongly agree

10

14.29%

70

100 %

Total

40%

Percent

Table 4.4 Difficulty in maintenance of luxury car.

17

60%

80%

100%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
Strongly Disagree

Disagree

Neutral

Agree

Figure 4.4 Difficulty in maintenance of luxury car.

Interpretation:
When asked about the difficulty of maintenance then the measurity of people agreed to
the same , 32% people agreed to it and then 30 % were neutral. This states that when it
comes to difficulty in maintenance then in spite having the power to buy expensive cars
they find it difficult to maintain.

5) Luxury car owners only prefer company authorized service centers.

18

Strongly Disagree : 1.43%Disagree : 14.29%Neutral : 11.43%Agree : 51.42%Strongly agree : 21.43% Agree : 51.42%

Answer

Strongly Disagree

Count

1.43%

Disagree

10

14.29%

Neutral

11.43%

Agree

36

51.43%

Strongly agree

15

21.43%

70

100 %

Total

20%

Percent

Table 4.5 Preference of service stations

19

40%

60%

80%

100%

2%

18%
15%

65%

Strongly Disagree
Disagree
Neutral
Agree

Figure 4.5 Preference of service stations

Interpretation:
With the huge percentage of 51% , owners of luxury cars only prefer getting their cars
serviced at the company authorized service centre , then only 21 % of the luxury cars
owners dont prefer the same due to miscellaneous reasons

20

6) After sales services affects one's brand choice.

Strongly Disagree : 2.86%Disagree : 10.00%Neutral : 31.43%Agree : 38.57%Strongly agree : 17.14%

20%
Count

Percent

Strongly Disagree

2.86%

Disagree

10%

Neutral

22

31.43%

Agree

27

38.57%

Strongly agree

12

17.14%

70

100 %

Total

Table 4.6 affect on brand choice due to after sales .

21

40%

60%

80%

100%

17%

3% 10%
Strongly Disagree
31%

Disagree
Neutral

39%

Agree
Strongly agree

Figure 4.6 affect on brand choice due to after sales .

Interpretations:
When asked about that does your brand choice gets affected due to after sale services ,
then 38% of the luxury car owners agreed to the same while 31% of the owners were
neutral with the same.

22

7) Do you agree with the statement that, A company has enough number of service
centers to satisfy their every customer.

Strongly Disagree: 2.86% Disagree: 17.14% Neutral : 24.29% Agree : 44.29% Strongly agree : 11.43%

Count

Strongly Disagree

2.86%

Disagree

12

17.14%

Neutral

17

24.29%

Agree

31

44.29%

11.43%

70

100 %

Strongly agree

Total

20%

Percent

40%

Table 4.7 Company having enough service stations.

23

60%

80%

100%

50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Strongly Disagree

Disagree

Neutral

Figure 4.7 Company having enough service stations.

Interpretation:
24

Agree

As our research was mainly conducted in Delhi where there are huge number of luxury
car owners as compared to other states. So 42% of the luxury car owners were satisfied
with the same , followed by 24% who were neutral with the same. In Delhi there are lot
of service stations of various luxury car brands.
.

8) Do you agree with the statement that : Company always provides on-road assists.

Strongly Disagree : 4.29%Disagree : 18.57%Neutral : 34.29%Agree : 32.86%Strongly agree : 10.00%

Answer

Strongly Disagree

Count

4.29%

Disagree

13

18.57%

Neutral

24

34.29%

Agree

23

32.86%

10%

70

100 %

Strongly agree

Total

20%

Percent

25

40%

60%

80%

100%

Table 4.8 Company providing on road assistance.

10%

4%
19%
Strongly Disagree
Disagree
Neutral

33%

Agree
Strongly agree

34%

Figure 4.8 Company providing on road assistance.

Interpretation:
There were huge number of customers, 34% who were not aware about the such services
so they also answered with neutral but also on the other hand there were customers who
agreed and disagreed to the same with 32% and 18% respectively.

26

9) Do you agree with the statement that: All service costs are completely justified.

Strongly Disagree : 20.00%Disagree : 24.29%Neutral : 25.71%Agree : 24.29%Strongly agree : 5.71%

20%
Answer

Count

Strongly Disagree

14

20%

Disagree

17

24.29%

Neutral

18

25.71%

Agree

17

24.29%

5.71%

70

100 %

Strongly agree

Total

40%

Percent

Table 4.9 Justification of service costs.

27

60%

80%

100%

30%

25%

20%

15%

10%

5%

0%
Strongly Disagree

Disagree

Neutral

Agree

Strongly agree

Figure 4.9 Justification of service costs.

Interpretation:
When asked about the justifications of the service cost there were mixed responses
gathered as 25% of the luxury car owners were neutral with the same , 24% agreed and
disagreed , 20% strongly disagreed. Some owners feel that if they can buy expensive cars
then they can also pay the service costs , on the other hand some feel that the company
charges bit extra.

28

10) Do you agree with the statement that, Company always notifies when your car
service is due.
Strongly Disagree : 4.29%Disagree : 5.71%Neutral : 22.86%Agree : 42.86%Strongly agree : 24.29%

20%
Count

Strongly Disagree

4.29%

Disagree

5.71%

Neutral

16

22.86%

Agree

30

42.86%

Strongly agree

17

24.29%

70

100 %

Total

40%

Percent

Table 4.10 Responses on notification by the company

29

60%

80%

100%

45.00%

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
Strongly Disagree Disagree

Neutral

Agree

Strongly agree

Figure 4.10 Responses on notification by the company

Interpretation:
When asked about that does the company gives you reminder when your service is due,
then 42% of the luxury car owners agreed to it while 24% and 22% strongly agreed and
were neutral respectively. These responses were as almost all the companies luxury or not
but are putting huge emphasis on the communication part.

30

11) Is the Service duration is appropriate.

Strongly Disagree : 2.86%Disagree : 7.14%Neutral : 30.00%Agree : 44.29%Strongly agree : 15.71%

Answer

Count

Strongly Disagree

2.86%

Disagree

7.14%

Neutral

21

30%

Agree

31

44.29%

Strongly agree

11

15.71%

70

100 %

Total

20%

Percent

40%

Table 4.11 Responses on appropriation of service duration.

31

60%

80%

100%

50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Strongly Disagree

Disagree

Neutral

Agree

Strongly agree

Figure 4.11 Responses on appropriation of service duration.

Interpretation:
The service according to the customers takes appropriate time as 44% of the luxury car
owners agreed to the same followed by the 30% who were neutral. the customers are not
considering the time too much but had emphasis on cost and quality.

12) Rate the factor influencing your car service: cost of service

32

Strongly Disagree: 7.14% Disagree: 10.00% Neutral :38.57% Agree :: 31.43% Strongly agree: 12.86%

Answer

Count

Strongly Disagree

7.14%

Disagree

10%

Neutral

27

38.57%

Agree

22

31.43%

12.86%

70

100 %

Strongly agree

Total

20%

Percent

40%

Table 4.12 Responses on cost of service.

33

60%

80%

100%

13%

7%

10%
Strongly Disagree
Disagree

31%
39%

Neutral
Agree
Strongly agree

Figure 4.12 Responses on cost of service.

Interpretations:
Majority 38% of the luxury car owners did not give much emphasis on the cost factor
,but still a good number of 31% agreed on the factor and gave importance to the same.

34

13) Rate the factor influencing your car service: security

Strongly Disagree: 0.00% Disagree: 5.71% Neutral: 22.86% Agree: 48.57% Strongly agree: 22.86%

Count

Strongly Disagree

0%

Disagree

5.71%

Neutral

16

22.86%

Agree

34

48.57%

Strongly agree

16

22.86%

70

100 %

Total

20%

Percent

40%

Table 4.13 Responses on security during servicing of car.

35

60%

80%

100%

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Strongly Disagree Disagree

Neutral

Agree

Strongly agree

Figure 4.13 Responses on security during servicing of car.

Interpretation:
48% agreed to the point when asked about the security of their cars, as they buy these
expensive cars and also want them to be safe when given to the company for services and
other jobs.

36

14) Rate the factor influencing your car service: duration of service

Strongly Disagree:: 5.71% Disagree : 7.14% Neutral: 35.71% Agree: 40.00% Strongly agree: 11.43%

Count

Strongly Disagree

5.71%

Disagree

7.14%

Neutral

25

35.71%

Agree

28

40%

11.43%

70

100 %

Strongly agree

Total

20%

Percent

40%

Table 4.14 responses on duration of service .

37

60%

80%

100%

11%

6%

7%
Disagree
Neutral
Agree
36%

40%

Strongly agree
Total

Figure 4.14 responses on duration of service .

Interpretation:
Luxury car owners are also very much concerned when it comes to duration of service as
maximum of them rated 4.

38

15) Rate the factor influencing your car service: location of service centre

Strongly Disagree :: 5.71%2 Disagree: 12.86% Neutral: 32.86% Agree: 31.43% Strongly agree: 17.14%

20%
Answer

Count

Strongly Disagree

5.71%

Disagree

12.86%

Neutral

23

32.86%

Agree

22

31.43%

Strongly agree

12

17.14%

70

100 %

Total

40%

Percent

Table 4.15 Responses on location of service centre.

39

60%

80%

100%

35.00%

32.86%
31.43%

30.00%

25.00%

20.00%
17.14%
15.00%

12.86%

10.00%
5.71%
5.00%

0.00%
Strongly Disagree

Disagree

Neutral

Agree

Strongly agree

Figure 4.15 Responses on location of service centre.

Interpretation:
Location is not such a important point in the minds of luxury cars owners as there is pick
and drop facilities provided by all the companies.

40

16) Rate the factor influencing your car service: communication

Strongly Disagree: 5.71% Disagree: 7.14% Neutral: 28.57% Agree: 40.00% Strongly agree: 18.57%

20%
Answer

Count

Strongly Disagree

5.71%

Disagree

7.14%

Neutral

20

28.57%

Agree

28

40%

Strongly agree

13

18.57%

70

100 %

Total

40%

60%

Percent

Table 4.16 Responses on communication between company & customers.

41

80%

100%

6%
7%

19%

Strongly Disagree
Disagree
Neutral
29%

Agree
Strongly agree

40%

Figure 4.16 Responses on communication between company & customers.

Interpretation:
The luxury car owners like to be communicated and informed about their cars and so they
have put emphasis on the same by rating it agree to the statement.

42

17) Rate the factor influencing your car service: quality of service

Strongly Disagree: 2.86% Disagree: 7.14% Neutral: 11.43% Agree: 42.86% Strongly agree : 35.71%

Count

Strongly Disagree

2.86%

Disagree

7.14%

Neutral

11.43%

Agree

30

42.86%

Strongly agree

25

35.71%

70

1.

Total

20%

Percent

40%

Table 4.17 Responses on quality of service.

43

60%

80%

100%

50.00%
45.00%

42.86%

40.00%
35.71%
35.00%
30.00%
25.00%
20.00%
15.00%
11.43%
10.00%

7.14%

5.00%

2.86%

0.00%
Strongly Disagree

Disagree

Neutral

Agree

Strongly agree

Figure 4.17 Responses on quality of service.

Interpretations:
The quality is at the end of the day what matters , the cost and time does not put huge
impact on the customer but the quality is the point which remains on the top of the luxury
car owner.

18) Rate the factor influencing your car service: authorization

44

Strongly Disagree: 5.71% Disagree: 10.00% Neutral: 22.86% Agree: 32.86% Strongly agree: 28.57%

Count

Strongly Disagree

5.71%

Disagree

10%

Neutral

16

22.86%

Agree

23

32.86%

Strongly agree

20

28.57%

70

100 %

Total

20%

Percent

40%

60%

Table 4.18 Responses on authorization of service centers.

45

80%

100%

35.00%
33%

30.00%

29%

25.00%
23%

20.00%

15.00%

10%

10.00%
6%
5.00%

0.00%
Strongly Disagree

Disagree

Neutral

Agree

Strongly agree

Figure 4.18 Responses on authorization of service centers.

Interpretations:
Authorization is also an important point when it comes to after sales service as 32% and
28% have agreed and strongly agreed to the same respectively.

46

4.3 Cross Tabs

4.3.1 What luxury brands car you own ? * it is difficult to maintain a luxury car .cross tabulation
It is difficult to maintain a luxury car .
What luxury brands car you
own?
Others.
BMW

Total

Total

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

15

17

50

23

14

22

24

10

73

4.3.2 What luxury brands car you own ? * it is difficult to maintain a luxury car .cross tabulation
It is difficult to maintain a luxury car .

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

10

14

20

53

20

14

22

24

10

73

Audi

Total

4.3.3 What luxury brands car you own ? * it is difficult to maintain a luxury car .cross tabulation
It is difficult to maintain a luxury car .

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

15

20

54

19

14

22

24

10

73

Mercedes
Total

Interpretation: We here get the perception regarding difficulty of maintain a luxury car ,
which comes ot to be BMW customers dont have a single opinion , Audi and Mercedes
customers are neutral to the same.

47

4.3.4 What luxury brands car you own? After sale services affects ones brand choice. Cross
tabulation.
After sales services affects ones brand choice.

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

13

23

50

23

22

28

14

73

BMW

Total

4.3.5 What luxury brands car you own? After sale services affects ones brand choice. Cross
tabulation.
After sales services affects ones brand choice.

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

16

21

13

53

20

22

28

14

73

Audi

Total

4.3.6 What luxury brands car you own? After sale services affects ones brand choice. Cross
tabulation.
After sales services affects ones brand choice.

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

17

20

12

54

19

22

28

14

73

Mercedes
Total

Interpretation: Here the perception found regarding after sales affecting once brand
choice is, BMW customers are neutral, Audi and Mercedes customers agree to the sam
4.3.7 What luxury brands car you own? A company has enough number of service centers. Cross
tabulation.

48

A company has enough number of service centers.

Total

What luxury brands car you

own?

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

26

50

23

13

18

31

73

BMW

Total

4.3.8 What luxury brands car you own? A company has enough number of service centers. Cross
tabulation.
A company has enough number of service centers.

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

10

16

18

53

13

20

13

18

31

73

Audi

Total

4.3.9 What luxury brands car you own? A company has enough number of service centers. Cross
tabulation.
A company has enough number of service centers.

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

11

12

21

54

10

19

13

18

31

73

Mercedes
Total

Interpretation: The perception found by the statement company has enough no of

service centers is, BMW, Audi and Mercedes customers are satisfied with the same.

4.3.10 What luxury brands car you own? Company always provides on road assists. Cross tabulation.
Company always provides on road assists.
What luxury brands car you

Strongly

Disagree

49

Neutral

Total
Agree

Strongly Agree

own?

Disagree

Others.

19

18

50

14

24

24

73

BMW

Total

4.3.11 What luxury brands car you own? Company always provides on road assists. Cross tabulation.
Company always provides on road assists.

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

11

15

18

53

20

14

24

24

73

Audi

Total

4.3.12 What luxury brands car you own? Company always provides on road assists. Cross tabulation.
Company always provides on road assists.

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

10

20

16

54

19

14

24

24

73

Mercedes

Total

Interpretation: The perception found by the statement company provides on road

assist is BMW customers did not agree, Audi customers were neutral and Mercedes
customers agreed to the same.

4.3.13 What luxury brands car you own? All service costs are completely justified. Cross tabulation.
All service costs are completely justified.

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

13

16

10

50

23

BMW

50

Total

14

19

19

17

73

4.3.14 What luxury brands car you own?All service costs are completely justified. Cross tabulation.
All service costs are completely justified.

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

13

12

13

12

53

20

14

19

19

17

73

Audi

Total

4.3.15 What luxury brands car you own?All service costs are completely justified. Cross tabulation.
All service costs are completely justified.

Total

What luxury brands car you

own?

Strongly
Disagree

Disagree

Neutral

Agree

Strongly Agree

Others.

16

15

13

54

19

14

19

19

17

73

Mercedes

Total

Interpretation: The perception found with the statement all cost are completely
justified were, BMW Audi and Mercedes customers disagreed to the same .

4.4 Factor Analysis

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.

.652
51

Approx. Chi-Square
Bartlett's Test of
Sphericity

Df

83.313
28

Sig.

.000

Table 4.4.1
Hence all these standards indicate that the data is suitable for the factor analysis. For
extracting factors we have employed principal component analysis. Rotation methods,
Kaiser Normalization with equamax were also applied. As per the latent root criterion,
only the factor having latent roots or Eigen values greater than considered significant;
and all the factor with latent root less than considered insignificant and disregarded.

Communalities

Initial

Extractio
n

It is difficult to
maintain a luxury car.

1.000

.525

luxury car owners only

prefer company
authorized service
centres.

1.000

.437

After sales services

affects one's brand
choice.

1.000

.278

A company has enough

number of service
centres to satisfy Their
every customer.

1.000

.562

Company always
provides on-road
assists.

1.000

.620

52

All service costs are

completely justified.

1.000

.553

Company always
notifies when your car
service is due.

1.000

.486

Service duration is
appropriate.

1.000

.428

Table 4.4.2
Extraction Method: Principal Component
Analysis.

Total Variance Explained

Component

Initial Eigenvalues
Total

% of
Variance

Extraction Sums of
Squared Loadings

Cumulative
%

Total

% of
Variance

2.315

28.933

28.933

2.315

28.933

1.574

19.676

48.609

1.574

19.676

.925

11.560

60.169

.857

10.711

70.880

.748

9.355

80.235

.681

8.518

88.753

.484

6.047

94.799

.416

5.201

100.000
Table 4.4.3

53

Total Variance Explained

Component

Extraction Sums
of Squared
Loadings

Rotation Sums of Squared Loadings

Cumulative %

Total

% of Variance

Cumulative %

28.933

2.248

28.103

28.103

48.609

1.640

20.506

48.609

3
4
5

Table 4.4.4
Component Matrixa
Component
1

It is difficult to maintain
a luxury car.

-.465

.555

luxury car owners only

prefer company
authorized service
centres.

.308

.585

-.060

.524

.749

-.037

After sales services

affects one's brand
choice.
A company has enough
number of service
centres to satisfy Their
every customer.

54

Company always
provides on-road
assists.

.785

.059

All service costs are

completely justified.

.368

-.646

Company always
notifies when your car
service is due.

.527

.456

Service duration is
appropriate.

.639

.139

Table 4.4.5
Extraction Method: Principal Component Analysis.
Large communalities in table indicate that a large number of variance has been accounted
by the factor solution. They are bigger than 0.5 for all the questions. This is the indicator
of suitability of the questions.
On the behalf of the data reduction in the following research the method applied is
component matrix method in which various statements given a special trend for this.
Component matrix has get with the help of SPSS.
Component Transformation
Matrix
Component

.954

-.299

.299

.954

Table 4.4.6
Rotated Component Matrixa
Component
1

55

It is difficult to maintain
a luxury car.

-.278

.669

luxury car owners only

prefer company
authorized service
centres.

.469

.466

After sales services

affects one's brand
choice.

.099

.518

A company has enough

number of service
centres to satisfy Their
every customer.

.703

-.259

Company always
provides on-road
assists.

.767

-.179

All service costs are

completely justified.

.158

-.726

Company always
notifies when your car
service is due.

.640

.277

Service duration is
appropriate.

.651

-.059

Table 4.4.7
Extraction Method: Principal Component
Analysis.

Factors Extracted

S.No

Factor Name

Name of Dimension
56

Factor

Factor Loading

F1

Customer Care

F2

Price Predicament

S4

0.703

S5

0.767

S8

0.651

S1

0.669

S6

-0.726

Table 4.4.8
There are 2 factors which are extracted from the analysis and are named the following
customer care and price predicament which were clubbed from analyzed statements.
Mean of 1st factor customer care is 3.45 and mean of 2 nd factor price predicament is
3.015. So we can say that Customer care is the most important factor extracted from the
analysis.

Representation of different responses.

S.No

Questions

1.

What luxury brands car

you own?

Responses
BMW

Audi

Mercedes

JLR

Others

25.61%

24.39%

21.95%

8.54%

19.51%

57

2.

3.

4.

5.

6.

7.

8.

9.

10.

Which company provides

you the most efficient after
sale service?
Which company provides
you the best quality after
sale services?
Is it difficult to maintain a
luxury car.
Luxury car owners only
prefer company authorized
service centre
After sales service affects
once brand choice

A company has enough no

of service centers.

Company always provides

on road assistance.

All service costs are

completely justifies.

Company always notifies

when your car service is
due

BMW

Audi

Mercedes

JLR

Others

13.16%

26.32%

36.84%

6.58%

17.11%

BMW

Audi

Mercedes

JLR

Others

21.52%

30.38%

29.11%

7.59%

11.39%

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

4.29%

18.57%

30%

32.86%

14.29%

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

1.43%

14.29%

11.53%

51.43%

21.43%

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

2.86%

10%

31.43%

38.57%

17.14%

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

2.86%

17.14%

24.29%

44.29%

11.45%

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

4.29%

18.57%

34.29%

32.286%

10%

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

20%

24.29%

25.71%

24.29%

5.71%

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

4.29%

5.71%

22.86%

42.86%

24.29%

58

11.

Is the service duration is

appropriate.

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

2.86%

7.14%

305

44.29%

15.71%

Table 4.5
There were various types of luxury car owners found during the collection of primary
data, some were very oriented towards price as they had bought their first luxury car and
were concerned about the budget part. On the other hand some were who primarily focus
on the quality and time as they had luxury cars for quite some time and money was not an
issue to them.
There are almost all types of luxury cars sold in the market buy the common brands were
Audi , BMW ,and Mercedes. All of them are known for their built quality but still
Mercedes had an edge over others when asked about the efficiency of after sales. On the
other hand Audi took over when asked about the quality of the same. As we have noticed
earlier that customers had different experiences and had different perception so fair
number of luxury car owners said they find it difficult to maintain a luxury car, but only
prefer authorized service centers. After sale was a factor known which affected the brand
choice of the customer .the research was mainly conducted in Delhi so it was found that
the company had enough no of service stations. it was surprising to know that many
customers did not know that their company provides on road assist .the cost of service is
not justified was said by major number of owners . at last when asked about the service
duration then majority of customers were satisfied with the same.

Chapter 5: Findings

With this research one of the major findings is that most of the people in Delhi owns
BMW (25%) , Audi (24%) , Mercedes (22%) , and then JLR (8%) .

59

Mercedes is the company which provides most cost efficient after sale service and

Audi tops the list when it comes to best quality of after sale service.
There is a huge no of customers of luxury cars but they have an perception that it is
difficult to maintain a luxury cars, but they also have a mind set of only getting their
cars serviced at the authorized service center. Even the choice of the customer is

influenced due to same.

The maximum numbers of customers are satisfied with the number of service centers

for their car. This is the situation when we talk of Delhi NCR area.
When we talk of on road assists, then the customers are somewhat not aware about
the same . as they dont emphasize on the same till the time they dont have a

requirement.
The customers are fine with the amount they are paying for the services in maximum

no of cases.
The customers are happy with the notifications they receive from the company and

also satisfied with the time taken for their services.

Cost of services , location of service centers , are not the major factors which
influence the customer while getting their car serviced ,but on the other hand
authorization , security , duration of service , communication and quality of service
play a vital role in getting their car services.

Chapter 6: Recommendation & Conclusion

Companies like JLR and BMW need to reposition themselves in customers head
as around, only 6% respondents feel that JLR provides the most cost efficient,
after sales service.

60

BMW and JLR need to start up building up a better quality management system
regarding after sales service as only around 6% respondents feel that JLR

provides best quality of after sales services.

Companies to change perception about the maintained of luxury cars as 46% of

respondents agree with the statement that it is difficult to maintain a luxury car
Companies need to try and build up more service centers as 20% respondents

disagrees with the statement that therere enough service stations in there city.
Around 22 % of respondents still feel that companies doesnt provide an efficient
on-road assist. So companies need to start focusing on the segment of on road

assistance.
As cost is one of the major reason owners consider while going for the service,

companies need to start justifying all cost related details to the customer.
As cost of service is a factor influencing the most among other factors companies
need to try and reduce or maintain a par service cost. So that a customer wont

feel the burden of getting it over budget.

Most of the respondents feel that their expensive luxurious cars should be in a

secured facility. So, companies need to provide a safer environment.

Around 40% of respondents feel that the duration of getting their car serviced is a
key factor affecting their decisions companies need to try and provide more

effective and efficient services to their customers.

As communication, authorization and location of service centers are other major
factors affecting customers decision considering car service companies need to
build up a strong communication bridge towards their customers.

Conclusion
As Delhi is becoming a hub of luxury car companies, which is provide a growing market
and after sales servicing being one the most crucial factors coming in customers head
while going for a luxury cars it makes really important for companies to cope up with the
customers demand not only the product segment but also in after sales services. &
considering todays position to cope up with the customers needs of after sales service,
61

and mind state of customer going for the luxury cars segment and the increasing numbers
of luxury cars owners Companies are taking some enduring initiatives to match up a
secured level keeping after sales services in consideration but there are various factors
which companies can look over to increase their efficiency and effectiveness in the case
of after sales service.i.e., that there is always a chance of improvement. So, we can
conclude that luxury car market in Delhi is ready in the perspective of year 2020.

References
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Appendix
Questionnaire

1.What luxury brands car you own ?

BMW
Audi
Mercedes
JLR
Others

2.Which company provides the most cost efficient after sale service?

63

BMW
Audi
Mercedes
JLR
Others

3.Which company provides the best quality after sale service?

BMW
Audi
Mercedes
JLR
Others

4.Do you agree or disagree with the following statements.

S.No

Statements

Strongly
Agree

Agree

It is difficult to
maintain a luxury
car .

Luxury car owners

only prefer
company
authorized service
centers.

After sale
services affects
ones brand
choice.

A company has
enough no of
service centers to
satisfy their
customers.

Company always
provides on road
64

Neutral

Disagree

Strongly
Disagree

assistance.
6

All service costs

are completely
justified

Company always
notifies when
your car service
is dew

Service duration is
appropriate.

5..Rate the following factors influencing your car service .

Cost of service
Security
Duration of Service
Location of service centre
Communication
Quality
Authorization

6.Contact information:

First Name
Last Name
Phone No.
E-mail Id.

65