Business plan Environment scanning The auto repair industry is very competitive. Every company in this field has high capital costs, high intensity of competition and low margins. Suppliers have influencing power in setting and negotiating the prices of their products and services to auto repair. This is because of the fact that the suppliers who take the greatest amounts of cash from repair shops are large auto part companies. The repair industry is so large, a large number of substitute customers are available, and finally they are the single most important supplier to auto repair industry. Therefore, these companies can set whatever price they want to. Labour is a supplier in this industry as well, and salaries for such individuals are well known and not very flexible. • Buyer power is very high since the customers see the services as undifferentiated. • The costs of services are not cheap, and buyers are willing to search for the most favourable combination of price and acceptable service. • The barriers to entry and exit are moderately low in this industry. • Switching costs are virtually non-existent and the costs to entry and exit in the …show more content…
The long-term profitability of a service firm of this type lies in the repeat customer that finds F & R's services an excellent experience, DESPITE the fact that they usually have suffered a inconvenient breakdown. The company will seek to examine ALL aspects of the service experience to seek ways to improve its customer satisfaction. In all employees will be rigorously trained and retrained to think about customer satisfaction in order to create a self-sustaining company culture that revolves around this
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
Chevrolet has a large diversity of vehicles, as stated by Farrell & Hartline (2014), “the company has developed large trucks and vans; the Silverado, Avalanche, Colorado and the Express, full-size; midsize, compact, and sub-compact automobiles; sports cars; and even race cars” (p.406-407). Chevrolet strengths are the large diversity of vehicles under the brand name. Moreover, Chevrolet has a unique product mix, that offers an arrangement of vehicles for all different types of consumers. Additionally, Chevrolet offers these various types of vehicles at different price points, a vehicle to fit every budget.
Their price must be one that is attainable and reasonable for the offerings. The Kotler & Keller text suggests that facilities analyze competitors and their offerings, estimate their own costs, and determine demand, in order to set the appropriate price.
In other words, the company cannot be good at everything. Moreover, to achieve Service Excellence it is needed to compromise some of the service attributes, mainly by reducing the ones that the targeted group of customers values less, in order to focus on the improvement of the service’s qualities that the customers want most.
At [company name], customer satisfaction is something that we take very seriously and would never compromise under any circumstances. Unfortunately, sometimes unavoidable mistakes happen. In such rare cases, a satisfactory solution is always in place and preventable measures are introduced.
Zeithaml, V., Parasuraman, A., & Berry, L. (1990). Delivering quality service: balancing customer perceptions and expectations. New York, New York: Simon and Schuster.
Providing great customer service and having the ability to retain customers require consistency in delivering the anticipated services. Customer service encompasses having the ability to provide a service or product to customers by means in which it was promised. However, there are times when unforeseen circumstances may occur, resulting in customer service breakdowns. Understanding the effectiveness of customer service relations provides the assurance needed to handle complicated service related issues. A well qualified customer service representative has the acquired skill to effectively defuse a potentially damaging service related matter. Service recovery influences customer retention and improves customer satisfaction.
Williams, P. & Naumann, E. 2011, "Customer satisfaction and business performance: a firm-level analysis", The Journal of Services Marketing, vol. 25, no. 1, pp. 20-32.
A very important factor in the marketing mix is the price. Since a service is not physical, its value must be carefully thought out. The price is sometimes the first thing which tourists look at. Depending on the type of service, perceptions of value differ. The price can act as an indicator of quality. A low price may seem as an attempt to cheat the customer in some way. People expect quality to cost and are willing to pay a higher price for it. That is why the service provider must be aware of how much people would pay for his service and why.
Strive to earn customers’ long-term loyalty by working to deliver more than promised, being honest and fair to provide exceptional personalized service that creates a pleasing business experience.
With the dilemma stated, the management question would be how do we increase customer satisfaction? Research questions, which are the objective of the research study, would include – what can management do to improve customer satisfaction, how is employee attitude and motivation connected to customer satisfaction, should we add employee incentives to reward increased customer service ratings, and should we modify hiring and training procedures?
It's very well known that a companies success is not only dependant on the possession of a good product or service, but the key aspect to a successful business is excellent customer service. As the market grows, now more then ever companies are emerging, they are offering very similar types of products and services. Successful customer service can be a way a business becomes original and unique, it can be the key to attracting and maintaining loyal customers. Good customer service can start-up a business while bad customer service can harm a company. An average customer that experiences an issue will complaint to 9-10 people about the problem. A customer that received support to their problem and a potential solution will tell at least five
...stomer service is essential in any organization. Its importance has positive implications on the business. Having an excellent customer service will motivate the organization’s employees. This will result in a win-win situation because a happy employee is a productive employee. When a motivated employee helps customers he/she will ensure that the customers are satisfied in a way that exceeds their expectations. These customers will then go out in to the public and share their experience with friends who will eventually patronize the business. In the long run the business gains more customers and increases its profits. Therefore, every organization should attempt to implement and preserve an excellent customer service strategy. This will give the organization a competitive edge above other organizations and establish a reputable image every business entity long for.
A service encounter is defined as a moment when a customer interacts with a service or product for the first time. It is the customer’s actual interaction with a service company. It is identified as a key component of the current agenda for service marketers. More than half of the world’s multinational corporations employ in providing services, thus the scrutiny of service encounters is becoming increasingly significant. Research evidence indicates that customers generally compare their expectations with the performance of service industries and they are influenced by the quality of service they receive. The scope of this essay is to discuss about the view that customers don’t buy products they focus on solutions and also about the consumer’s behaviour pattern regarding services provided. Further, it will be noted how businesses are trying to improve the service quality to attract customers leading to an increase in the economic competitiveness.