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1 – 10 of 437David J. Urban and George E. Hoffer
The decade of the 1990s has seen unparalleled innovation in the retailing of new and used motor vehicles. Most recently the Internet has become the facilitator of change in auto…
Abstract
The decade of the 1990s has seen unparalleled innovation in the retailing of new and used motor vehicles. Most recently the Internet has become the facilitator of change in auto retailing. After reviewing the current state of automotive Internet services, this article develops a model whereby a new entrant could introduce a vehicle line and market that line directly to the consumer via the Internet – “the virtual dealership”. Consummation of the transaction, vehicle delivery, warranty work, after‐market parts and service, and used car trade‐ins would be handled by existing players in the automotive infrastructure. Includes a discussion of potential problems, concentrating on legal restrictions imposed by state franchise laws.
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Kym Fraser, Bill Tseng and Hans‐Henrik Hvolby
New car dealerships play an integral role in the initial and on‐going relationship between the purchaser and vehicle manufacturer. Evidence, mostly anecdotal, suggests that the…
Abstract
Purpose
New car dealerships play an integral role in the initial and on‐going relationship between the purchaser and vehicle manufacturer. Evidence, mostly anecdotal, suggests that the buying and servicing experience of the paying public in regards to new car dealerships is far from ideal. With continuous improvement systems such as total quality management (TQM) firmly embedded into the manufacturing and supply side of the car industry, questions still exist surrounding the level of quality being adopted by automotive dealerships. The purpose of this paper is to empirically investigate if a quality culture is being developed within the dealership network in South Australia by testing a number of key principles of TQM such as: the support and commitment from top management, customer focus and satisfaction, process management, and employee involvement.
Design/methodology/approach
A questionnaire survey was designed and all 105 new car dealerships in the greater Adelaide region were targeted. The service manager from each dealership was advised of the pending posted questionnaire and an excellent response rate of 66 percent was achieved.
Findings
Results indicated a reasonably high level of commitment to quality within dealerships, including the important success factors of TQM. Questions still remain about quality endorsement, the type of quality systems being used and the depth of penetration of quality at the ground level.
Research limitations/implications
The limiting features of this study surround the descriptive nature of the data analysis and the fact that the study was only conducted in one major city in Australia.
Practical implications
The findings of this paper can give some implications for senior managers to consider when developing firm's policies.
Originality/value
Empirical studies on quality in automotive dealerships are very scarce in the literature. Therefore, this paper provides an insight into the quality culture of new car dealerships and examines if key TQM principles such as top management support, customer focus, process management, and employee involvement are in fact practised.
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David J. Urban and George E. Hoffer
Examines how the use of the World Wide Web has evolved in relation to automotive retailing. Reviews the authors’ model of virtual automotive dealership developed in an earlier…
Abstract
Examines how the use of the World Wide Web has evolved in relation to automotive retailing. Reviews the authors’ model of virtual automotive dealership developed in an earlier article in this journal and discusses analytically the current state and future of virtual automotive distribution. Concludes that the element contributing most to the viability of the virtual dealership concept is the willingness of a manufacturer to establish a new line‐make in the US market.
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Miriam Borchardt, Marcelo Souza, Giancarlo M. Pereira and Claudia V. Viegas
Branded car dealerships with best revenue by serviced car also have the best after-sales customers’ satisfaction level. The purpose of this paper is to present the analysis of the…
Abstract
Purpose
Branded car dealerships with best revenue by serviced car also have the best after-sales customers’ satisfaction level. The purpose of this paper is to present the analysis of the after-sales quality management practices adopted by dealerships with the best performance in terms of customer’s satisfaction and revenue and how such practices contribute to these results.
Design/methodology/approach
A multiple case study was performed with nine leader branded car dealerships in an emerging country, considering the entrance car. The performance indicators to evaluate customers’ satisfaction, revenue and operational indicators related to product support, brand manifestation and relationship with customers were identified. Quality management practices that support the best results achievement were analyzed.
Findings
The three dealerships that represent Asiatic brands have best customers’ satisfaction and revenue performance. These dealerships typically have different processes comparing with dealerships that represent European and American brands concerning to: continuous improvement management; warranties and stock management; services scheduling; offer bonuses to customers; and customers service that emphasizes focus on technical and commercial expertise.
Originality/value
This research considered indicators performance and, based on that, analyzed the dealerships’ practices that support the best performance. Such aspect has room for academic literature since the quality management research related to car industry focuses mainly on manufacturer and generates managerial insights to the car industry and its dealerships.
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The purpose of this paper is to provide practitioners of management and information technology a sense of how the automobile industry uses the internet to market its products.
Abstract
Purpose
The purpose of this paper is to provide practitioners of management and information technology a sense of how the automobile industry uses the internet to market its products.
Design/methodology/approach
A review of the applied literature on practices and actual examples of companies' practices (obtained through personal interviews and basic empirical analysis of managers located in Pittsburgh, PA) was conducted. An analysis of data derived from web‐enabled and highly educated professionals from the metropolitan area of Pittsburgh, PA, resulted in 60 interviews from an initial sample of over 155 professionals from three area firms. Techniques reviewed include online advertising, data mining from web sites, other conventional advertising of the company web site and positioning their vehicles among the various search engines.
Findings
The statistical findings lead to the general conclusion that people are using the internet with greater regularity to gain information about vehicle purchases. However, the vast majority of those surveyed still preferred to ultimately complete the purchase in person.
Practical implications
The findings show that while dealers are forced to be more competitive in terms of financing and pricing, dealerships are not in danger of being cut from the vehicle purchase model, at least not in the short‐term.
Originality/value
The internet has proven to be an invaluable tool for consumers who are either considering the purchase of a new car or actually in the process of doing so. In today's market, automotive manufacturers must have a significant market presence to compete and, in many cases, just to survive in a business environment where several of the major automotive manufacturers must find new markets overseas.
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In contrast to rents which are prescribed by contract to remain fixed or constant during the term of a lease, the expression variable rents simply implies that the rent to be paid…
Abstract
In contrast to rents which are prescribed by contract to remain fixed or constant during the term of a lease, the expression variable rents simply implies that the rent to be paid during the tenure of occupancy will be subject to change with the passage of time.
Nasrollah Ahadiat and Misty Wright
Has two general objectives: to evaluate auto dealers′ current cashbudgeting practices, and to make an assessment of the potential forusing a computerized cash budgeting model – a…
Abstract
Has two general objectives: to evaluate auto dealers′ current cash budgeting practices, and to make an assessment of the potential for using a computerized cash budgeting model – a model which can have a great impact on the financial management of auto dealerships. However, a decision to utilize a computerized model is directly affected by the dealers′ current financial management practices, as well as attitudes and perceptions concerning computers and budgets. Analyses a sample of 500 automobile dealerships located throughout the USA using multiple regression and discriminant analysis. Results indicate that several specific variables are significant in auto dealerships′ cash planning and budgeting processes, including the level of used car inventory, dealers′ attitudes towards sales forecasts and the ability to predict economic conditions.
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This paper aims at understanding how automotive firms integrate customer relationship management (CRM) tools and big data analytics (BDA) into their marketing strategies to…
Abstract
Purpose
This paper aims at understanding how automotive firms integrate customer relationship management (CRM) tools and big data analytics (BDA) into their marketing strategies to enhance total quality management (TQM) after the coronavirus disease (COVID-19).
Design/methodology/approach
A qualitative methodology based on a multiple-case study was adopted, involving the collection of 18 interviews with eight leading automotive firms and other companies responsible for their marketing and CRM activities.
Findings
Results highlight that, through the adoption of CRM technology, automotive firms have developed best practices that positively impact business performance and TQM, thereby strengthening their digital culture. The challenges in the implementation of CRM and BDA are also discussed.
Research limitations/implications
The study suffers from limitations related to the findings' generalizability due to the restricted number of firms operating in a single industry involved in the sample.
Practical implications
Findings suggest new relational approaches and opportunities for automotive companies deriving from the use of CRM and BDA under an overall customer-oriented approach.
Originality/value
This research analyzes how CRM and BDA improve the marketing and TQM processes in the automotive industry, which is undergoing deep transformation in the current context of digital transformation.
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Edwin Joetan and Brian H. Kleiner
Automobile salespersons have long been viewed by the general public as cunning and cold. They only fare better than murderers. The bad perception that the public has can be traced…
Abstract
Automobile salespersons have long been viewed by the general public as cunning and cold. They only fare better than murderers. The bad perception that the public has can be traced to the compensation system in the industry. This compensation system has also contributed to the high turnover rates of salespersons in dealerships. High turnover rates are costing the dealerships training cost and lost sales from returning customers. Dealerships have to start changing how they compensate their sales force. Replacing the at risk pay with salary and bonus will greatly change the salespeople’s selling attitude for the better. Salary based will also reduce the turnover rate especially during a lean period. It will also give a chance for a novice to enter the industry without them downgrading their lifestyle. Financial hardship during the learning period has been the main deterrent for newcomers to enter the industry. Other non‐cash incentives, such as free demonstrator, profit sharing and pension plans will help to retain the sales force. Another important factor is to hire the right salespeople from the beginning.
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Allard C.R. van Riel, Veronica Liljander, Janjaap Semeijn and Pia Polsa
The automotive industry in the European Union (EU) faces a sharply reduced regulatory environment, with Block Exemption (1400/2002). Economists have predicted fundamental changes…
Abstract
Purpose
The automotive industry in the European Union (EU) faces a sharply reduced regulatory environment, with Block Exemption (1400/2002). Economists have predicted fundamental changes in the market as a result of the modified Block Exemption. In this article, the aim is to investigate how the relationship between a car dealer and its main supplier (i.e. an OEM or its national representative), affects how the dealer perceives threats and opportunities in this more competitive environment.
Design/methodology/approach
Based on relationship marketing theory, propositions about antecedents and consequences of commitment to a supplier are formulated for the changing automotive market. Data were collected from 413 car dealerships in Belgium, The Netherlands and Finland, countries without domestic automobile brands.
Findings
Commitment to the main supplier is mainly driven by satisfaction and trust. The more car dealers are committed to their main supplier, the lower the threat they perceive from new intermediaries, and the lower their intention to expand their business beyond the current relationship. Commitment to their main suppliers also reinforces their confidence in the future. This confidence in the future spurs dealers' expansion plans within their current relationship.
Research limitations/implications
Longitudinal research would allow better inferences about market evolution and causal sequences.
Practical implications
Satisfied and committed dealers seem reluctant to make radical changes in their relationships and marketing strategy, apparently being entrenched in traditional channel structures. The modified Block Exemption could increase the average size of dealerships, improve the competitive position of large dealers, accelerate consolidation in the automotive distribution sector, and decrease competition between traditional dealerships. Opportunities have been created by the modified Block Exemption for new entrants to capitalize on new market niches and customer categories. Multi‐brand dealers could use these opportunities to create a purchasing experience that differentiates them from the traditional dealers.
Originality/value
Contributing to scarce research on complex channel relationships within a captive distribution structure, this is the first empirical study of the European car industry in the context of the modified Block Exemption. It is also one of the few studies that takes the perspective of the dealership.
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