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1 – 10 of over 1000Miriam 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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Bo Edvardsson, Anders Gustafsson and Lars‐Uno Roos
The paper aims primarily to describe and analyze how the strategic and operational relationship with independent dealers has been improved and controlled. The paper also aims to…
Abstract
Purpose
The paper aims primarily to describe and analyze how the strategic and operational relationship with independent dealers has been improved and controlled. The paper also aims to describe and analyze the improvement program that the dealerships have designed, adopted and implemented, and the improvements that have resulted from them.
Design/methodology/approach
The paper used an explorative, qualitative research approach using in‐depth interviews. In order to achieve a prior understanding of Volvo Trucks North America's (VTNA) quality improvements at the dealerships, three in‐depth interviews were conducted with dealers in the USA. One interview was held with a business manager responsible for five dealerships in the Chicago area, and another with the person in charge of the quality improvement program at the corporate level.
Findings
The key to success lies in the strategic and systematic implementation of the tools and programs with which VTNA has provided its dealerships. The following six factors were identified as key issues in VTNA's improvement program: customer focus, product quality, service experience, employees, information and communication technology, and customer satisfaction.
Originality/value
This paper illustrates how a large company such as Volvo is able to positively influence a large number of smaller companies using a small number of policies.
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Estelle Van Tonder, Daniël Johannes Petzer and Karlien van Zyl
The aim of this study is to determine whether customer satisfaction, trust and commitment as relationship quality factors can be valuable to a luxury motor vehicle dealership in…
Abstract
Purpose
The aim of this study is to determine whether customer satisfaction, trust and commitment as relationship quality factors can be valuable to a luxury motor vehicle dealership in generating favourable behavioural intentions concerning post-purchase service and repair offerings.
Design/methodology/approach
A descriptive research design was followed, and self-administered questionnaires were fielded among customers of the luxury motor vehicle dealership. A total of 301 questionnaires were returned and the interrelationships between the constructs were examined using structural equation modelling.
Findings
It was discovered that customers who trust the dealership may be more committed, and commitment may strengthen the relationship between customer satisfaction and a favourable behavioural intention towards the dealership.
Research limitations/implications
The findings of the study add to the developing body of empirical literature on relationship quality and behavioural intention.
Practical implications
The study indicates how relationship quality factors can influence behavioural intentions of customers, assist in building long-term relationships with customers and retain current customers where post-purchase service and repairs of luxury goods are concerned.
Originality/value
The study provides an emerging market perspective of the interrelationships between relationship quality factors affecting behavioural intention regarding service and repairs of luxury goods.
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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
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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Michael Calta and Brian H. Kleiner
Considers the mismanagement of car dealerships and looks at the institutional causes. Discusses the traditional management style and organization of car dealerships with their…
Abstract
Considers the mismanagement of car dealerships and looks at the institutional causes. Discusses the traditional management style and organization of car dealerships with their inefficiences and limited philosophies. Outlines a number of outside influences that are forcing dealerships to re‐evaluate the way they manage. Highlights the proactive approach used by one forward thinking company, showing how it has experienced more favourable results than its competitors.
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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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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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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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Gabriel Sperandio Milan, Eric Dorion and José Alberto da Rosa Matos
The purpose of this paper is to identify the mechanisms adopted by the distribution channel of a leading Brazilian truck manufacturing company, which generates various conflicts…
Abstract
Purpose
The purpose of this paper is to identify the mechanisms adopted by the distribution channel of a leading Brazilian truck manufacturing company, which generates various conflicts that have a negative impact on the performance of the channel operations, with a focus on the conflict causes. The study aims to expand the domain of distribution channel conflict management as a benchmark activity by exploring the potential sources of conflict occurring in a major Brazilian distribution channel.
Design/methodology/approach
The research method is exploratory, using a case study from a major company of the automotive sector of Serra Gaúcha, Brazil. The distribution processes are analyzed in a real and specific context, implemented by means of individual, in‐depth interviews, with the application of a basic script of questions.
Findings
The findings indicate the existence of seven potential sources of conflict and 23 conflicting issues, considered relevant and of negative impact on the distribution channel performance of the manufacturing company.
Research limitations/implications
The sample cannot be considered as representative but it is, to a certain point, reliable because it refers to one entity only.
Practical implications
The results of this research can serve as indicators for managers of a company to invest time and the necessary resources for the maintenance and consolidation of the relationships with its dealerships.
Originality/value
The present work shows its originality through the study of consumers' preference for determined products and services as a conflict management basis for Brazilian national distribution channels' stakeholders. In this context, a distribution channel conflict case study may constitute an important empirical source of data for a benchmark strategy.
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