Evaluating the service quality within the aftermarket components industry in South Africa

M.Comm.Previously the engine components industry relied on being in the game by competing on product availability, product quality and pricing. The cost of not having customer driven strategic plans created certain drawbacks. These include: the use of crisis management (companies being reactive rather than proactive), diverse directions being taken and redundancy, loss of competitive edge and openness to outside influences. Local component manufacturers have to reduce their dependence on OEM manufacturing alone. This means that they will have to move into the after market, locally and overseas, and export more to foreign OEMs and component producers. Those who do not make the transition will have to diversify or close their doors. The result is that South African engine component companies do not only have to adapt to the reality of pricing pressure of intense competition, but also have to adapt to the increased service expectations of customers on all levels. Service quality can be defined as the extent of discrepancy between customers' expectations and their perceptions (Zeithaml, et al, 1990: 19). The question arises whether engine component companies in the current climate are basing their competitive advantage on a customer-orientated culture with an inner driving force. Service quality is an abstract and elusive concept, because it is intangible, heterogeneous and inseparable from production and consumption. In the process of growing towards customer retention and moving away from the initial concept of just providing customer satisfaction through product availability, product quality, basic service and pricing, superior service quality must be obtained. The measurement of perceived service quality within the engine component industry has not received much attention up till now. This dissertation addresses the problem of measuring the current quality of service (in the engine component industry), and provides guidelines on closing existing gaps. The objectives of the study can be summarised as follows: To assess the service expectations of engine component suppliers' customers. To assess customer perceptions of the performance of the engine component suppliers. To assess which customer - orientated strategies are perceived to be employed by engine component suppliers. To assess how engine component suppliers can narrow or eliminate the customerprovider gaps that exist