Sullivan Ford Case Study

3624 Words Jan 29th, 2012 15 Pages
Introduction

This case details the position of Carol Sullivan-Diaz, the 28-year-old daughter of Walter Sullivan who died at the age of 56. Walter had bought a Ford dealership in 1983 that eventually grew into what is now Sullivan Ford Auto World. The business sells cars but also services them. Carol is disappointed by current turnover in car sales and sees that the service revenues are below average for this size of dealership. Carol’s now has to decide what way to tackle the future. She can sell the business but will probably only return a value below what it might be worth if profitable or she can look at the operation and see if she can turn it around herself. While she has a bachelor’s degree in economics, an MBA degree and a
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Also, as it takes time to service the car and doing without the car may inconvenience the customer, they may have a negative perception before the process starts. There is need to be aware of the difference between the car service and the customer service. The service may be good but the customer service can be bad at the same time.

Customer Behaviours

a) A search quality is a characteristic that can be easily accessed before purchase.[1] In the case of the car, the customer will be able to research qualities like colour, performance. He can get a feel for the car by looking around the interior, the boot, see what the engine looks like and sounds like. These are qualities he can use his five senses to evaluate. They are tangible. Ford’s reputation should eliminate risk when purchasing. However, this is not the case for the service. He cannot have a pre-purchase experience. There is no tangibility. For this, his behaviour will change. He may seek testimonials from others and depend more on word of mouth. He will seek advice on the reputation of Sullivan’s service. From the case, we see that there are problems with the service. Delays at processing, inconvenient scheduling, availability of parts etc. There is a risk here as the service may not be satisfactory so Sullivan must reassure the customer. Sullivan must

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