MOVING FROM PRODUCT TO SERVICES WITH CUSTOMER SATISFACTION: A CASE STUDY OF UMW TOYOTA MOTOR SDN. BHD.

PRESENTER
MOHD

SOFIE B. AZMI 2009201088 MUHAMAD HAFIZ BIN MOHD JAMEL 2009627284 SARAH HANIM BINTI HAJI A. MAJID 2009312309

PRESENTATION CONTENTS
Chapter

1 2 3

Introduction Literature Review Research Method Finding and Analysis Conclusion and Recommendation

4
5

CHAPTER 1: INTRODUCTION
Introduction Background of industry Problem statement Research objective Scope of study Limitation of study Definition of terms

Emphasizing services to sustain profitability. Offers exclusive customer experience. Manufacturing company moves to a serviceoriented business strategy. Service quality, accenting customer satisfaction. Serve the customers needs and retain them. Understanding customers expectations and perceptions of service quality. Provide comprehensive services.

Jjoint venture enterprise. listed on the main board of the Kuala Lumpur Stock exchange (KLSE) 1902 - United Motor Works. 1926 - Sakichi Toyoda 1935 - The first Toyoda car was completed. (Toyoda to Toyota) One of the largest company in Malaysia Four strategic business units: Automotive, Equipment, Manufacturing & Engineering, and Oil & Gas. Partnership with well-known multinational corporations.

Diagram 2 : Total Industry Volume(TIV) (Source : Malaysia Automotive Association, 19972012)

Diagram 3: TIV by body type (Source : Malaysia Automotive Association, 2001-2012)

Diagram 3 : UMW Toyota Position in the market (Source : Malaysia Automotive Association, 2002-2012)

Figure 1 : UMW Toyota current sales and service network (Source : www.toyota.com.my, 2012)

Malaysia is the largest passenger car market in ASEAN Significant impact on the economic development, technologies and standard of living in Malaysia. Competition became fiercer. After sales service is important. UMW Toyota implemented new strategy apart from focusing on product-based marketing. Strengthen its competitiveness through greater emphasis on service quality.

To examine the nature of relationship among service quality dimension, customer satisfaction and customer loyalty. To identify factor that influence customer loyalty To provide recommendation to the company on the service quality practices based on the findings of the study.

This research will mainly focus on three (3) UMW Toyota Motor service center in the Klang Valley. The study covers 62 customers of UMW Toyota Motor customers and Toyota cars model. Questionnaire was distributed at three (3) outlets, which are:

Toyota Service Center Seksyen 19 , Petaling Jaya. UMW Toyotsu Service Center Seksyen 15, Shah Alam. UMW Toyota Service Center, Subang Jaya.

Theory development This study hopefully will shed new findings. If none at least the study is able to confirm previous findings.

Practical Implication This study hopefully will provide some insights to UMW Toyota in crafting and providing the required service to increase customer loyalty and customer satisfaction. Furthermore, this research outcome can be a guidance principle to other carmakers in Malaysia to enhance the after sales environment practices in order to achieve best standard of customer satisfaction.

This study only examines three (3) service outlets in Klang Valley, Malaysia. The non-existence of customer data at the related locations, and the focus of the study on one car maker extremely limit the generality of the findings and recommendation given.

CHAPTER 2: LITERATURE REVIEW

Service

Quality Dimensions Customer Satisfaction Customer Loyalty

Service Quality is determined by the customer satisfaction, and also affected by the consumers whose past experiences and subjective recognition that the service performance of the service providers are lacking of practical assessment criteria and is not easy to assess objectively. Parasuraman (1985)

Tangible Physical evidence of the service Assurance Knowledge and courtesy of employees and their ability to inspire trust and confidence Responsiveness willingness of employees to help customers and to provide a prompt timely service

Empathy
Caring and individualized attention that the company provides to its customers. Reliability Ability to perform the promised service in a dependable and accurate manner.

A persons feeling of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectation
Kotler (2000)

A situation when repeat purchase behavior is accompanied by a psychological bond Peter and Olson, (1990)

THEORETICAL FRAMEWORK
Service Quality Dimensions

Customer Loyalty

Tangible

b Customer Satisfaction

Assurance

Responsiveness

Empathy

Reliability

CHAPTER 3: METHODOLOGY
Sampling

and sample size Research instrument Data collection method

Customers at three service outlets

From 70 questionnaires - only 62 questionnaires are complete

Convenience Sampling

CHAPTER 4: FINDING & ANALYSIS

Data

Analysis

Reliability

Analysis Descriptive Analysis Correlation Analysis Frequency Analysis Regression Analysis Cross Tabulation Analysis ANOVAs Analysis

RELIABILITY ANALYSIS
No. 1. 2. 3. 4. 5.

Variables
Tangible Empathy Responsiveness Reliability Assurance Customer Satisfaction Customer Loyalty

N of Items
9 8 9 9 8 6 2

Cronbachs Alpha
0.870 0.811 0.822 0.891 0.885 0.918 0.904

6.
7.

DESCRIPTIVE ANALYSIS
Measurement indicator

Mean 1.00 2.99 3.00 3.99 4.00 5.00

Tangible Weak Moderate Strong

DESCRIPTIVE ANALYSIS
DIMENSIONS MEAN STANDARD DEVIATION a. b. Tangible Empathy Responsiveness Reliability Assurance 3.71 3.74 0.776 0.599

c.
d. e.

3.56
3.92 3.68

0.562
0.708 0.719

f.
g.

Customer Satisfaction
Customer Loyalty

3.97
3.82

0.809
1.194

CORRELATION ANALYSIS
Measurement indicator Range of Correlation Coefficient (r) .91 to1.00 or- .91 to -1.00 .71 to.90 or - .71 to - .90 .51 to.70 or - .51 to - .70 .31 to .50 or -.31 to - .50 .01 to.30 or - .01 to - .30 .00 Correlation Coefficient Very Strong Strong Moderate Weak Very Weak No correlation

CORRELATION ANALYSIS
Tangible Empathy Responsivene ss Reliabil Assuranc ity e Customer Satisfaction Customer Loyalty

Tangible
Empathy Responsiveness Reliability Assurance Customer Satisfaction Customer Loyalty

.718**
1

.683**
.587** 1

.613**
.646** .528** 1

.622**
.565** .539** .721** 1

.715**
.727** .654** .682** .714** 1

.721**
.714** .640** .700** .657** .825**

Correlation is significant at the 0.01 level (2-tailed).

FREQUENCY ANALYSIS

REGRESSION ANALYSIS

CROSS-TABULATION ANALYSIS

ANOVAS ANALYSIS

CHAPTER 5: CONCLUSION & RECOMMENDATION

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