Achieving better revenue and customers’ satisfaction with after-sales services: How do the best branded car dealerships get it?

Abstract

Purpose

Branded car dealerships with best revenue by serviced car also have the best after-sales customers’ satisfaction level. The purpose of this paper is to present the analysis of the after-sales quality management practices adopted by dealerships with the best performance in terms of customer’s satisfaction and revenue and how such practices contribute to these results.

Design/methodology/approach

A multiple case study was performed with nine leader branded car dealerships in an emerging country, considering the entrance car. The performance indicators to evaluate customers’ satisfaction, revenue and operational indicators related to product support, brand manifestation and relationship with customers were identified. Quality management practices that support the best results achievement were analyzed.

Findings

The three dealerships that represent Asiatic brands have best customers’ satisfaction and revenue performance. These dealerships typically have different processes comparing with dealerships that represent European and American brands concerning to: continuous improvement management; warranties and stock management; services scheduling; offer bonuses to customers; and customers service that emphasizes focus on technical and commercial expertise.

Originality/value

This research considered indicators performance and, based on that, analyzed the dealerships’ practices that support the best performance. Such aspect has room for academic literature since the quality management research related to car industry focuses mainly on manufacturer and generates managerial insights to the car industry and its dealerships.

Citation

Borchardt, M., Souza, M., Pereira, G.M. and Viegas, C.V. (2018), "Achieving better revenue and customers’ satisfaction with after-sales services: How do the best branded car dealerships get it?", International Journal of Quality & Reliability Management, Vol. 35 No. 9, pp. 1686-1708. https://doi.org/10.1108/IJQRM-01-2017-0016