Influence of Aftersales Service Strategies on the Competitive Advantage of Automotive Companies in Kenya

Abstract

Aftersales services contribute immensely to customer satisfaction, generating repeat business that can translate to repeat revenue generation and improved market share and competitive advantage. This study sought to assess the influence of aftersales service strategies on the competitive advantage of Kenya's automotive companies. The study used an explanatory research design. The target population was 400 members of the top management team, including CEOs, functional managers, and senior managers drawn from 63 companies in the automotive industry in Kenya. The study utilized a census to include all 400 top management team members in the 63 automotive companies. Questionnaires were used in data collection. The hypothesis was tested using multiple linear regression analyses. Results indicated a moderate correlation between the aftersales service strategies and the competitive advantage of automotive companies in Kenya (r = 0.556). The findings further indicated that 30.9% of automotive companies' competitive advantage change is explained by their aftersales service strategies (R squared = 0.309). The study concluded that automotive companies in Kenya engaged in aftersales service strategies that included utilization of customer feedback, promptly responding to customer demands using agile methodologies, provision of quality service, and inclusion of warranties.