Abstract

Nowadays, good products are not sufficient. Market competition requires a good after-sales service. After-sales service quality has been identified as a source of revenue and competitive advantage. While other industry sectors have readily paid attention to after-sales service quality, little study has been done on the effectiveness of after-sales service quality in the field of real estate. This study aims to explore the relationship among after-sales service quality, customer satisfaction, and customer loyalty. Especially, we want to confirm the impact of after-sales service quality on customer satisfaction and customer loyalty of middle-upper class real estate in Surabaya. This research was conducted by survey on 170 respondents from four housing complexes in Surabaya, i.e. Pakuwon City, Citraland, Bukit Darmo Golf, and Graha Family. The data was examined by using structural equation modeling (SEM). Through data analysis we confirm the positive correlation between after-sales service quality and customer satisfaction, the positive correlation between customer satisfaction and customer loyalty, and the direct and indirect relationships between after-sales service quality and customer loyalty. The practical implication of this study provides assurance to real estate management on the effectiveness of after-sales service quality in maintaining old customers and encouraging new consumers.

Highlights

  • The importance of after-sales service quality has been widely recognized in all industry sectors, in pure service sectors and in sectors where service is considered as a part of an augmented product (Rigopoulou et al [1])

  • This study aims to investigate whether the after-sales service quality provides advantages as it is claimed in other industry sectors

  • Based on the above discussion, we developed the following hypotheses: H1: After-sales service quality is positively correlated with customer satisfaction of middle-upper class landed housing companies in Surabaya

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Summary

Introduction

The importance of after-sales service quality has been widely recognized in all industry sectors, in pure service sectors and in sectors where service is considered as a part of an augmented product (Rigopoulou et al [1]). Rigopoulou et al [1] identify the ever-increasing relative significance of the after-sales service quality to the core products/services as a part of differentiation strategy. Several studies claim the relationship between after-sales service quality, customer satisfaction, customer loyalty, and profitability (Anderson and Mittal [2]). Existing studies find a significant influence of after-sales service quality on customer satisfaction and customer loyalty. Excellent after-sales service quality affects the retention of existing customers and and increases the number of new customers (Anderson et al [4])

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