Chapter One

Chapter 1
Introduction
1.1
  * Background
Nowadays, along with the booming developments of economies and society, more and more problems happened in organizations are brought to managers’ attention, two of which are organization’s customer loyalty and after—sale services of their products.
Customer loyalty and after—sale service, both elements are all the essential parts in every organization. However, customer loyalty can be defined as “a customer’s willingness to continue patronizing a firm over the long term by purchasing and using its goods and services on a repeated and preferably exclusive basis, and voluntarily recommending this firm’s products to friends and associates” (Lovelock et al 1999 in Ranchhod and Marandi 2007, p79). On the other hands, after—sale services also can be named as post—sale services and normally defined as periodic or as required maintenance or repair of equipment by its manufacturer or supplier, during and after a warranty period (Council of Europe, 1979. Business Dictionary, 2010)
When consider with the importance of both elements within organizations, as well as Young (2009, p2) states that customer loyalties are usually used by organizations to build its own brand loyalty, as well as possible to increasing the total number of customers, then in order to increase the total sales volume of products.
On the other hands, Herbig (1997, p239) expresses that after—sale service includes customer services (e.g. repair), training of employees, warranties of products, and also involves manuals instructions, installation, consultation services, delivery, and as full as include availability of spare parts. Additionally, Aykin (2005) mentions the importance of after—sale service which are after—sale service including the quick and effective response to service requests and prompt spare parts supply. As well as Herbig (1997) states after-sale services are a critical part of the total product package for consumer durables and industrial... [continues]

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