Free Management Dissertations - Do The Motor Industry's 'customer Satisfaction Programmes' And 'customer
Do the motor industry's 'customer satisfaction programmes' and 'customer relationship management programmes' build stronger bonds with the customer and help sell more cars?
Executive Summary
Many academic theorists view customer satisfaction as being undoubtedly one of the top strategic issues in the new decade, and customer relationship management (CRM) receives even more interest in academic literature. However both of these concepts are often misunderstood, with very few pieces of literature able to define them, or give concise and coherent summaries of the benefits which they can transfer to organisations, a problem that appears increasingly important given how much money, time and resources have been devoted by numerous firms to implementing equally numerous programmes. The importance of both CRM and customer satisfaction programmes to the motor industry are as important as they are to any other industry: with the global car market exerting pressures on car prices, due to competitiveness and low interest rates, and the UK market showing only 0.6% growth from 2002 to 2003, the pressures on manufacturers and dealers to find new ways to sell more cars without further reducing prices is at an all time high. Equally, there is evidence to show that customers are increasingly valuing attempts by dealers and manufacturers to personally address their concerns, and develop relationships, rather than simply sell a car, MOT, servicing and other support.
Unfortunately, the literature proves quite thin when providing specific examples of CRM and customer satisfaction programmes in the motor industry, however several examples have been found of CRM and customer satisfaction programmes in other industries, which offer useful information and advice to any firms looking to implement, assess or improve programmes. Equally, several pieces of literature have highlighted potential neglect of customers in the motor industry, and have highlighted the need for manufacturers and dealers to find better ways of marketing themselves and interacting with customers, a need that CRM and customer service programmes could potentially fulfil. However, the majority of the literature is filled with often contradictory views on the respective concepts, including the debate on the value of technological advances, such as database management and e-mail, to CRM programmes, and whether they are replacing, hindering, or helping to support the more traditional, people based aspects of CRM.
This paper’s main contribution to the study of CRM and customer satisfaction in the motor industry takes the form of a survey of five Ford dealers in the south of England, conducted in late 2004.
Dissertations - Free Management Dissertations
