1.Determine the role of Hyundai’s 10-year, 100,000-mile warranty in its turnaround and how it relates to post purchase dissonance.
In 1998, Hyundai was at a crossroads in the U.S. market. After a decade of dwindling sales and nagging quality concerns, Hyundai needed to do something to turn their brand around. And one of their bold moves included a 10-year, 100,000 mile warranty (Hawkins & Mothersbaugh, 2011). With these changes, Hyundai experienced profitable results. Their sales started to jump and they tied with Honda for second place in the J.D. power Initial Quality Survey. The car company; Hyundai has been did very well for itself in 2011, even in the down falling economy. Hyundai sold 50,765 vehicles in December of 2011, which were
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Even with all the changes and the profit increases Hyundai still struggles with their perception. Hyundai has great warranties, good values, they are affordable and a perception that Hyundai is probably better than its reputation. On the minus side, their brand still remains somewhat unfamiliar, cheap, low quality and boring (Hawkins & Mothersbaugh, 2011). The success that Hyundai has been having is especially remarkable considering Hyundai’s reputation for quality problems when it entered the U.S. market in 1986. But starting 10 years ago, following its acquisition of Kia, Hyundai not only addressed those problems but also backed them up with extraordinary 10-year, 100,000-mile warranties (Molitor, 2009). This wasn’t just a publicity stunt either, because Hyundai’s quality improved dramatically and now tops the J.D. Power rankings for non-luxury cars. In 2009, during the depths of the recession, Hyundai also introduced an “Assurance Program,” which allows its customers to return their cars if they lose their jobs within a year of purchase. “So far, only 50 cars have been returned, but the message is clear: We care” (Molitor, 2009). This all helps play a role in consumers’ ongoing mixed perceptions about Hyundai’s quality.
3. Assume that Hyundai successfully upgrades its quality image among all U.S. consumers so that they are universally recognized for high quality. Discuss whether this could result in greater
Ford has improved overall quality and enhanced their brand reputation/recognition. In a 2011 Consumer Reports Survey, Ford scored 144 points, taking 2nd to Toyota with 147 points, which analysts call a “dead heat” score. The survey was based on “safety, quality, value, performance, design/style, technology/innovation, and environmentally friendly/green” (Associated Press 2011). Ford is on the right track and is gaining customer loyalty while increasing market share, which is a winning economic equation.
6. Once completing your analysis, what is the opportunity represented by addressing the problem? What is the cost of poor quality? What is the impact on customer satisfaction, retention, and loyalty? How could this help increase revenues? How could this help increase our capacity? How could this improve our ability to improve our process controls?
General Motors is faced with a dilemma. In the face of economic depression, competition from foreign players was driving down profits and the market’s preference was changing to efficient cars due to
For years people have thought that Americans were buying more American-made cars than other brands. But now the truth has come up, Americans are buying more foreign-built cars than ever. For example, more people prefer a Toyota or a Honda over a Chevy or Ford now. According to the American Consumer Satisfaction Index, Lexus, Toyota and Cadillac shared the top spot in consumer satisfaction (“U.S. buyers prefer” 1). Still, many Americans prefer foreign-built cars over American made cars because foreign-built cars offer better reliability and longevity, better fuel mileage, and better performance on the roads.
Evaluate the diversity of vehicle types and sizes that are sold under the Chevrolet brand name. What strengths and weaknesses are evident in Chevy’s product mix?
For our initial strategy we wanted to choose a product line that would be most intriguing to customers in this poor economy. To initiate this we focused our products around better gas mileage, safety, and quality. In order to do this we needed to evaluate consumers’ needs and desires when making a high involvement purchase such as a car. We believe the best target market for this type of car would be a middle class family that does not have as much disposable income due to the recession in our economy.
m. How is the firm’s current brand positioned relative to the competition? (i.e. How is their image/reputation different than their competition’s image/reputation? Is it different?).
Ever since the 2008 recession US automobile companies have been on a steady downhill slide, but actually you can trace this downward trend even further back than 2008. US car companies have been feeling the heat since as early as the late 1980s when Japanese car companies laid claim to American manufacturing plants . Despite a shot in the arm in sales over the past five years, American firms are still on the decline. This case analysis aims to diagnosis the problem, provide analysis of the problem, and propose a viable solution to the problem from the perspective of the US automobile market share leader, General Motors.
The chosen business is Audi which there the Customers demands a high quality service which means before sale of the car, the actual process in the sale, and after sale service this helps the company retain their client. In this report you’ll see the writer has use some underpinning theories such as the Servqual Model, and Loyalty Ladder.
A mutual fund manager is a person who actively buys or sells and sometimes both funds. They are experienced in implementing a funds strategy used for investing and manages its trading activities as well as the portfolio. Choosing whether or not to invest in Ford Motor Company will take the use of a SWOT analysis and learning about the stakeholders of the company.
Vehicles are a part of a person’s everyday life these days. You see them everywhere, no matter if it’s a big city, or a little country town. People use cars to travel to all sorts of places, whether it is a school or work. We push our vehicles to the maximum so they seem to wear out really fast. It seems like every five to six years you have to purchase a new one. People have so many causes to by a new car these days but owning a car also comes with a lot of effects. New cars come with a lot of benefits like reliability and warranties. The biggest downfall with buying that brand-new car is the car payment and that expensive car insurance. A new car might look good, and you might get more attention, but you pay for that attention. You must ask yourself is the cost worth the award?
The United States has been experiencing a weak economy, which has dramatically affected sales within the automotive industry. The industry as a whole has been struggling, but the U.S. companies have had the worst results. Also, the desired product mix has recently changed to more fuel efficient vehicles instead of large SUV’s and trucks (S&P, 2008, p.1). The following analysis will discuss in detail the external environment of the auto industry and then transition to examining the internal environment of the U.S. firm, General Motors. GM is a large and well known domestic auto manufacturer that was the leader in U.S. auto sales for many years and at one time possessed a 47.4% market share. However, GM is now more
Faced with an overwhelmingly complex situation, Alan Mulally has been brought in as Ford Motor Company's new president and CEO. As diverse global dynamics confront the company and competitive pressures continue to build, he has the challenging task of improving Ford's brand image and returning the company to profitability. Mulally has invited your consulting firm to advise his management team on restoring the company's reputation and viability. Assigned to the project, you have been asked to evaluate Ford's situation and prepare a report with the following content:
In 1913, Henry Ford revolutionized product manufacturing by introducing the first assembly line to the automotive industry. Ford’s hallmark of achievement proved to be a key competence for the motor company as the low cost of the Model T attracted a broader, new range of prospective car-owners. However, after many decades of success, customers have become harder to find. Due to relatively new threats to the industry, increasing numbers of cars and trucks are parked in dealer lots and showrooms creating an alarming trend of stagnation and profit erosion. Foreign-based automakers, such as Toyota and Honda, have expanded operations onto domestic shores and, in turn, have wrestled
1) The buyer decision process of traditional Porsche customers relies on the motivations that determine these people to select this brand. Their purchasing decision process is based on the exclusivity of the brand that is connected with the car owner. In their opinion, by purchasing a Porsche, traditional customers purchase the exclusivity and luxury associated with the brand. These customers want to purchase a car that reflects their social status and their financial power. In addition to this, they are not interested in the utility of the car, but in the characteristics that differentiate it from utility cars. These traditional buyers are rather interested in their feeling while driving a Porsche in comparison with the size, price, or fuel economy of the car.