服务营销第八版英文教辅Case_.pdf

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1、People,Technology,Strategy (8th edition,2016)Page 1 of 13 CASE 1 SULLIVAN FORD AUTO WORLD OVERVIEW The owner of a Ford car dealer dies unexpectedly.His 28-year-old daughter,a healthcare manager who has completed her MBA,temporarily assumes command.She is shocked to find that the once-thriving dealer

2、ship is running at a loss and realizes that she must choose between selling the business at an unfavorable price,or working towards turning it around.She suspects that improving the performance of the service department will become the key to saving the business.TEACHING OBJECTIVES Demonstrate both

3、the differences and interdependencies between marketing a consumer durable good and marketing after-sales services for the same product.(Optional,if using case in conjunction with Chapter 2 or Chapter 8)Flowchart(Chapter 2),Blueprint(Chapter 8),the process that customers go through in obtaining serv

4、ice for their cars.Introduce the notion of service quality with reference to an industry that many students can relate to personally.Highlight similarities across seemingly different service industries(e.g.,car repair and healthcare).STUDY QUESTIONS 1.How does marketing cars differ from marketing se

5、rvices for those same vehicles?2.Compare the sales and service departments at Auto World(AW).3.From a consumers perspective,what useful parallels do you see between operating a car sales and service dealership,and operating healthcare services?4.What advice would you give to Carol Sullivan-Diaz?5.Pr

6、epare a flowchart/blueprint of the servicing of a car that requires repair or maintenance,and bring this to class.Show potential fail points.(Additional question,not on p.615 of textbook.)2009 Christopher H.Lovelock People,Technology,Strategy (8th edition,2016)Page 2 of 13 ANALYSIS 1.How does market

7、ing cars differ from marketing services for cars?Marketing Cars Big-ticket item Prospective customers may debate purchase of a new car for months in advance.Decision process may involve other family members,requests for advice from friends,opinion leaders,and intensive information gathering.Purchase

8、 may involve exchange of existing vehicle.Purchase frequently requires credit financing over several years.Generally an exciting and positive activity(but some people find it stressful and do not trust car salespeople).Creation of the product takes place in a distant factory,often reflecting years o

9、f R&D efforts.Much of the advertising effort is undertaken by the manufacturer.Distribution takes place through franchised dealers who take responsibility for personal selling,and participate in promotional programs with manufacturers.Unless the customer buys a“lemon”,initial experiences with a new

10、car will tend to be positive and the benefits should be readily apparent.Service Need for service tends to increase in frequency and cost as the car ages.Service price is hard to predict but much lower than new purchaseoften less than$40 for routine preventive work(e.g.,oil change,lubrication,etc.)a

11、nd rarely exceeds$1,000 for major repairs,unless the car has been through an accident(when the cost is often largely covered by insurance).Service is a nuisance,involving trips to the garage for drop-off and pickup,as well as absence of the car for a day or more.Some service problems(e.g.,water leak

12、,electrical failures)are hard to detect and often not fixed when it occurs the first time.Service is provided by the dealer(or another garage)and not by the manufacturer,whose role is limited to warranties on the service.Decision to obtain service may be based upon periodic,predictable determinants(

13、e.g.,time since last service,mileage covered,need to prepare car for winter,preventive maintenance before a big trip),or by occurrence of problems that need to be fixed.Customer will tend to go for service to dealer from which vehicle was purchased,unless service proves unsatisfactory,in which case

14、she/he may seek advice from alternative suppliers.People,Technology,Strategy (8th edition,2016)Page 3 of 13 It is not always easy to determine whether service problems result from fault of the manufacturer or the service providerin absence of knowledge of widespread problems with that model,customer

15、 will probably blame the dealer.Hard to determine if service is done right and whether the cost paid for service is justified.2.Compare and contrast the sales and service departments at Auto World.Car Sales(“Front End”)Service/Parts(“Back End”)-Extensive advertising and promotions to attract car buy

16、ers -No mention of advertising,reminders,special offers to generate service business-Eye-catching site in(apparently)convenient location-Same location,but service building is hidden behind showroom-Customers can walk in-Customers must ask for appointments-Attractive,modern facility-30-year-old greas

17、y facility-Flowerbeds outside the customer entrance-Customers enter by side door-Salespeople work in an attractive,high-ceilinged showroom-Service writers work in cramped room with paint peeling from the ceiling-High-polished new cars on display(customers cannot miss them)-Modern,well-maintained equ

18、ipment in service bays(but do customers notice?)-Can reasonably infer that salespeople are smartly dressed and speak in a smooth,friendly manner-Manager can be gruff and argumentative;service writers may respond rudely to abusive customers-Customers can examine the cars(and sit inside them if they w

19、ish)while they wait for a salesperson-Customers wait in line for service writers,can look at file-cabinets and listen to telephones ringing-Can choose between new or late-model“pre-owned”cars,different colors,extras,etc.-Choose how much of the problem to fix during each visit.Car not always ready on

20、 schedule,may not be fixed right-“Lets make a deal!”Chance to bargain for discounts,free accessories-Price of parts is fixed(if not under warranty),labor costs$40 per hour-“Everybody is happy”-“Customers always seem to be miserable”People,Technology,Strategy (8th edition,2016)Page 4 of 13 Walter Sul

21、livans view of the auto dealership appears to have been firmly centered on car sales.He seems to have seen the parts and service business simply as a necessary evil.Sullivan loved sales,was disinterested in service.It is not surprising that the two departments comparison is so unfavorable.Sullivans

22、undoubted communication skills clearly did not extend to handling unhappy customers he made the office his hideout and left it to his staff to get rid of the problem as best they could.A financial analysis of the dealership appears in Exhibit 1.Key conclusions to be drawn are as follows:a)Service re

23、venues are dropping faster(-19.6%)than car sales revenues(-12.8%)in the most recent year.b)The split between“front end”and“back end”departmental gross is more weighted towards car sales than in most dealerships(63.8%versus 60%).Analysis of market research data(Exhibit 2)shows that customer satisfact

24、ion is above average compared to other dealerships within 30 days of purchasing a new car.Although,AW receives higher than average customer satisfaction ratings at this point,the picture changes for the worse after nine months,by which time satisfaction with the selling dealer is below average.AWs s

25、ervice ratings are generally bad in the areas of promptness,convenience,and appearance of the service facility,poor in terms of attitudes,politeness,and understanding of customer problems,but close to average on actual work execution.The negative ratings on service appear to have the following serio

26、us consequences for AW:A high proportion of customers will use another supplier for service in future(thus costing AW significant service revenues).Those customers who are likely to buy another Ford in the future are a lot less likely to buy it from AW,thus costing the dealership significant sales l

27、osses on new cars.People,Technology,Strategy (8th edition,2016)Page 5 of 13 3.What parallels exist between a car dealership and health care services?Car Dealers Health care A.New Car Sales A.New Babies -Happy department in a car dealership-Happy department in a hospital-Usually a planned activity wi

28、th some anxiety but high potential for satisfaction-Usually a planned and eagerly anticipated event,although not without some anxiety-Often a family affair-Usually a family affair B.Treating Cars Problems B.Treating Sick People -Owners hate to be without cars-Customers are worried and uncomfortable.

29、-Outcome not certain,owners worried about costs-Outcome not always certain-Worried about dislocation due to lack of car-Concerned about personal dislocation-Incidence of car problems rises with vehicles age-Incidence of health problems usually rises with age-Preventive maintenance and checkups are a

30、 good idea-Regular checkups are usually a good idea-Can get initial warranties,may be able to obtain service contracts(but outside warranty or contract period must pay personally)-Can insure against illness to avoid risk of high hospital payments-Can choose which service supplier(although will gener

31、ally start with service department of selling dealer)-Can choose which health plan/insurance plan(this gives some control over choice of doctors,hospitals)-Outside warranty restrictions can switch service suppliers whenever they want-Some shopping around is possible,but switching plans may be diffic

32、ult-Customers generally prefer to have a regular service garage they trust-Customers generally prefer to have a regular doctor whom they trust-Word-of-mouth recommendations often influence choice-Word-of-mouth recommendations play an important role in influencing choice of a health plan and doctor P

33、eople,Technology,Strategy (8th edition,2016)Page 6 of 13 4.What advice would you give to Carol Sullivan-Diaz?a)Improving Service Quality Exhibit 2 provides some good insights into areas needing improvement,especially items rated“bad”or“poor”by the nine-month survey as it relates to service satisfact

34、ion.A poor working environment,bad attitudes,and lack of concern for customer needs require attention.Computerization of customer records will help,but physical renovation of the area in which service workers meet with customers,efforts to recruit and train better service workers,and more careful mo

35、nitoring and motivation efforts are also required.The manager,Rick Ebert,could use training in customer relations skills.b)Marketing the Service Department Physical renovation of the facility.Customers introduced to service department personnel when new cars are purchased.Reminders to customers when

36、 cars are due for service.Promotional incentives to bring cars in for service(e.g.,free oil change).c)Marketing the Dealership Promote car sales and service as a package to build relationship.Unless Carol or Larry Winters has a“Showbiz”personality,develop a new style for advertising the dealership.R

37、econsider appropriateness of price-based promotions(i.e.,a promotion featuring an extended service contract).d)Sell versus Turnaround On the face of things,this seems like a very poor time to sell the dealershiprising interest rates,rising fuel prices,declining new car sales,narrower margins,sudden

38、demise of the owner,and problems in the service department.If Carol is willing to take time out from her health career,she could introduce a number of important innovations and improvements in time to catch-up with the next upturn in the economy.Three things favoring this approach are:(1)the dealers

39、hip has some surplus funds left from Walter Sullivans insurance policy,(2)Carol seems confident about her own ability to reenter the health care field later,and(3)as a partner in a dual-career marriage(her husband is a surgeon),Carol may be able to People,Technology,Strategy (8th edition,2016)Page 7

40、 of 13 afford to reinvest much of her general managers salary in the business rather than drawing it out to cover immediate personal needs.e)Handling the Angry Customer Carols instincts seem good onesget the complainer away from other customers,calm him down,and find out what is bothering him.She ma

41、y have the advantage of surprise on her side in this instance,since the customer will probably not expect to find himself facing a young woman.Carols health care experience should stand her in good stead,because it has probably taught her to be calm and sympathetic when confronted by agitated people

42、.Her best bet probably is to introduce herself as the new owner of the business,invite the complainer up to her office to discuss his difficulties,offer him a cup of coffee or a soft drink,and simply listen to him.Depending on the nature of the problem with the car and the validity of his complaints

43、,she may wish to consider such steps as offering him a standby car until his own is fixed,reimbursing certain charges incurred by him,or inviting the service manager to review the situation and determine what can realistically be done to achieve a greater measure of satisfaction to the customer.5.Ho

44、w would you flowchart/blueprint the servicing of a car?The simple flowchart in Exhibit 3 shows the basic activities involved in car repair and a distinction between those that are visible to the customer(“front stage”)and those that are invisible in a typical service garage(“backstage”).You may wish

45、 to invite a student to put his/her flowchart/blueprint up on the board and then ask other students to critique this chart and discuss what can go wrong(opportunity to screw up OTSU)at each point in the process.When preparation of this case is linked to reading Chapter 8,“Designing Service Processes

46、”,you should consider students required to prepare a detailed blueprint of the car service process plus responses to the other questions in the case as the basis for a graded written exercise.You can assign this as an individual exercise or as a two-person exercise.People,Technology,Strategy (8th ed

47、ition,2016)Page 8 of 13 TEACHING SUGGESTIONS This case can either be positioned early in the course to introduce differences between goods and services marketing,or it can be used later in conjunction with readings on service quality issues.Most students should be able to relate readily to this case

48、,reflecting their own familiarity with the industry as consumers and also the relative youth of the chief protagonist.Two alternative ways to start this case are suggested.One is to begin with question 1 and then follow the sequence of questions listed at the beginning of this note.The other is to b

49、egin with question 5 and ask a student to present his/her flowchart to the class(they can either draw it on the chalkboard or show it on an overhead projector/PPT);the instructor can then ask if anyone else has a significantly different flowchart.The flowchart approach should only be used if the stu

50、dents have already had a chance to read and discuss flowcharting(presented in Chapter 2 in simple words and Chapter 8 in detail as formal blueprinting).If you assign this exercise,ensure that the exercise is handed in at the beginning of the class.As an alternative to asking students to present thei

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