Question

5. CarPoint is a comprehensive consumer-oriented automotive web site offering users complete car-buying and care information on all makes and models. It provides fast, convenient access to detailed specifications and pricing information on both new and used cars. It also provides reviews and advice from leading automotive writers, and personalized maintenance and recall information. Ford Motor Company was CarPoint’s first partner. Ford’s concept is to allow consumers to order any model car to their exact specifications and receive immediate feedback on availability. Consumers are able to schedule delivery and service at their local dealership, making it easier for consumers to buy cars over the Internet. Once a consumer decides what car she wants to buy, CarPoint locates an existing car, regardless of where in the country it is, or they place an order for a new custom car to be built at the factory and delivered to the consumer’s local dealership. During the process, both the manufacturer and the dealer will get instant, online status reports on the order from the time the order is placed until it is delivered to the customer. Ford sees its advantage in better managing its order-fulfillment process. It streamlines production and allows better inventory management through its supply chain. Required: a. Think about a typical car-buying experience where a consumer visits dealership and buys a car. List the steps in that value chain, and discuss the time, quality, and cost of the experience to the consumer.

Answer 1

The above Para describes the Online ordering of a car as per Customer requirement, but the requirement of this question is a car buying experience where a consumer visits a dealership. Below are the steps in value chain.

Visit to a Dealership for enquiry:

Here Consumer visit the Dealership for enquiry of the models available and check whether the requirement meets his needs. Here the point is the dealership is for a particular brand and consumer can choose only cars of a particular brand. So Consumer need to visit different dealership to enquire and check different brands manufactured by different car companies. Consumer will not have a advantage of choosing any brand in single visit irrespective of models. Consumer will end up spending plenty of time on visit to dealerships and enquiry and check the models and availability and choosing his models. Time taken is too long and quality is checked first hand and cost involved by conumer is too much as he needs to visit different dealership. Cost of maintaining the dealership from company point of view is also heavy.

First Hand feel of the car:

Here the consumenr visiting a dealership will have the feel and look of the company and also choose to test drive the car, where as online will only give details about the car but look, feel and checking the car by a test drive is key point in making a decision. For a consumer satisfaction will come with these key apects and online order will only show the details. Here the customer experience is much higher and allows making the decision quickly and consumenr will be satisfied. Online orders can change from actual delivery of the car and consuemenr will not have look and feel of the car and possibility of return adding to the cost to car campany.

Actual Purchase of car:

The actual purchase after choosing a car is quick and here the visiting dealership will have a slight advantage as he meets people and becomes easy for after sales services. But the online purchse will have a steps to follow and standards as per policies of company and lacks a personal touch.

After sales services:

The after sales services can be ordered online and car will be picked up and delivered after service. A dealership visit will have satisfaction to customer and creates confidance as he knows people there and in online scenario consumer will not be knowiing anyone.

Happy with answer? Then comment.