Service Quality and After-Sales Service on IoT-Based Car User Satisfaction and Repeat Purchases Services in Indonesia

Abstract

This study aims to determine the effect of service quality and after-sales service on the customer satisfaction of car users using IoT (Internet of Things) technology provided with their car purchase. Digital disruption has made manufacturers turn to digital services and marketing systems to discover and understand customer behavior. Using the Isaac and Michael formula a sample size 155 respondents was determined, and data were accordingly collected for processing via non-probability sampling techniques. Data were obtained from respondents matching the unique criteria of Indonesian users of cars with IoT innovation technology. Such cars now account for 10% of total new car sales. This study utilizes path analysis, revealing that customer satisfaction encourages loyal customers to buy new units. The main finding of the research is that a service system connected to the internet or smartphones makes users comfortable and can determine the future choice for product repurchases. Therefore, it is necessary to develop continuous emotional closeness with customers for future success.

Consumer’s Automobile Purchase: A Concept

“…The key variables which are in-focus of the researchers are particularly the price, after-sales service, brand loyalty, brand quality, reputation, and the income of the purchaser (Madani et al, 2023;Ekasari et al, 2023;Chen & Hung, 2016;Altaf et al, 2016). In supplication, Khan (2019), Khan (2019), Lee and Govindan (2014) were found busy locating fuel economy and environmental issues, brand's market credibility, horsepower, appearance, comfort, interior design and cost of maintenance as the core determinants of car purchase decision.…”

“…SEM is incorporated by the researchers to get a multivariate estimation of the variables (Mao et al, 2023;Dwithama & Rizky, 2023;Ekasari et al, 2023). SEM is embedded with factor and multiple regression analyses, thus allowing the researchers to examine the complex relationships among the variables.…”