Impact of Connected Remote Services on Car Servicing Loyalty

Abstract

This paper aims to study the effect of connected remote services (CRS) and its key factors on car servicing loyalty within the automotive aftersales business. The definition of CRS as service innovation captures the special particularity of connectedness as attribute, providing simultaneous connectivity to a service object (e.g. car), manufacturer (brand) and a car dealership. Relevant key factors of CRS and its individual consequences were identified by an exploratory qualitative study using the means-end chain method. The derived research model was measured using partial least-squares (PLS) path modelling. It was empirically tested by an online survey among 331 German automobile customers considering six different brands. The results show evidence of a relationship between CRS and car servicing loyalty. Mediated by customer value, trust and CRS reuse intention, the key factors convenience, safety, reliability and connectedness positively influence car servicing loyalty. However, the influence of comfort, identified as relevant key factor within the exploration of CRS, is empirically not supported. This research adds new knowledge to the present body of customer retention management literature by providing a definition of CRS and a model to describe the influence towards car servicing loyalty, which hasn´t been subject to research yet. It explores the characteristics of CRS and explains how to increase car servicing loyalty and economic success resulting from it. The findings of this research help managers of car dealerships and vehicle manufacturers to enhance existing beneficiary and, trust building functions of CRS and the development of new features.

Keywords: Automotive aftersales, car servicing loyalty, connected remote services, service innovation.