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After Sales Service Demerits

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After Sales Service Demerits

Question

Identify four limitations of after-sale service as a method of sales promotion.

Answer

(i) The cost of after sale services is finally passed on to the buyer.
(ii) It may be inconveniencing / unnecessary where the dealer requires the goods to be bought from his premise.
(iii) The dealer may create monopoly hence exploit the buyer / the buyer is tied down to one trader.
(iv) The dealer can run out of spare parts hence cause delays in operations.
(v) The service may be given when the product is still new and has few problems.
(vi) The service charge can be unrelated to the actual work done and usually too high.
(vii) A lot of time / money will be spent if the customer and supplier are far apart.