The intergration of RFID technology in connection with after-sales service strategies in a rapidly emerging vehicle market

Abstract

The automotive industry's core business today is not just about producing and selling vehicles, since a large source of revenue in the vehicle market is based on the after-sales services that customer’s need. The overall trend in the vehicle market is that customer services and customer focus have become increasingly more central to the automotive industry and its customers in recent years. This has meant that the focus has moved away from only production activities to also include service activities for the dealerships in the car market. The main problem for the after-sales department at Gargash Enterprises L.L.C is the loss of customer retention in the workshops due to when the customer´s car warranty ends after three years. The loss of retention is partly based on a historical high price strategy that has made customers more reluctant to service their vehicles at Gargash Enterprises L.L.C. The loss of retention is also based on the high amount of workshop competitors that attracts customers with lower prices. To counteract this trend, Gargash Enterprises L.L.C is currently using different after-sales service strategies to increase the customer retention rate i.e. they offer the Mercedes-Benz ”24 hour service en route”. The purpose of this thesis is to evaluate in what ways Gargash Enterprises L.L.C can increase its customer retention rate using the after-sales service strategy Mercedes-Benz “24 hour service en route” and RFID technology in the workshops. The methodology that is used in the thesis is based on a deductive scientific approach and qualitative primary data that is obtained through interviews and a field study of the Mercedes-Benz “24 hour service en route”. There is also secondary data in the thesis that originates from scientific literature. The theory chapter starts with a theoretical review of what customer value and satisfaction are, and describes the possibility of using the SERVQUAL model. The chapter also reviews the straits and benefits of a RFID implementation within service based organizations. The empirical chapter is based on the interviews in conducted in the United Arab Emirates (UAE) which describes the vehicle market in that region. The chapter is also based on our field test and shows how the “24 hour service en route” is conducted in theory and reality. The analysis shows the reader the types of challenges Gargash Enterprises L.L.C has when it comes to adapting their after sales service strategies to different types of customers and Emirates and how the “24 hour service en route” performs in real life. The chapter also discusses the current opportunities and difficulties that are linked to an implementation of RFID technology in the company's various workshops. The conclusion chapter shows that Gargash Enterprises L.L.C has the possibility to increase its customer retention level by the development of its roadside assistance service “24 hour service en route”. Through the development of the call center and the service technicians social, language, and technical skills, the customer’s perceived value and satisfaction in the offered service can be increased. Regarding the implementation of RFID technology in the workshops it could contribute to faster repairs, less human errors and real time tracking and tracing of the customer´s vehicles. This could enable customers to perceive the repair or service offered with a greater satisfaction. Unfortunately, it's hard to see the monetary gain in such effected customer satisfaction and to calculate the investment's net profit is unfortunately very complex.