Question

In: Operations Management

Find an industry that is noted for consumer dissatisfaction. Using the concept of satisfaction, identify consumer...

Find an industry that is noted for consumer dissatisfaction. Using the concept of satisfaction, identify consumer expectations that aren’t being met along with describing their current experiences in this industry and how their experiences don’t meet their expectations. [Here, you want to first discuss the expectations and then, describe the actual experiences as a separate narrative.] Then, based upon what you have just characterized, how could you configure a business that would operate differently? Would it involve different expectations? If this is the case, how would your marketing be used in changing expectations? How would you change the consumer experience to be different based upon changing their expectations, etc.? How would you create a strategy involving a changing consumer?

Hint: Formally define the concept of satisfaction first by explaining the Expectancy Disconfirmation Model of Satisfaction and also, provide its graphic depiction.

Solutions

Expert Solution

Introduction

Customer expectations refers to the perceived benefits that the customers seek out when purchasing a product or a service.

While the customer satisfaction is the measure of how products and services supplied by a company meet the customer expectation. If the product or service meet the expectation then the customer is said to be satisfied. If the product or service availed in less than expected the customer will be dissatisfied. If the product or service rendered is above the expected level then the customer will be delighted or highly satisfied.

According to research conducted by Better Business Bureau, it is Auto repair and service industry number of dissatisfied customers. In below table depicted percentage of unresolved complaints in various industrial sectors.

1. What you have just characterized, how could you configure a business that would operate differently?

Based on study conducted by Career bright following are major problems found in Auto repair and service industry.

  • Slow Service

  • Slow Delivery

  • Limited payment options

  • Inability to contact

  • Poor Accessibility of service centers

  • Bad quality of products and services

  • Not valuing customer opinion and complaint

Hereby in order to tackle before stated problems, a business operation had to be configure itself by; Increasing skill set of the employee through continuous training, adopting technology for business operation, communication and transactions, providing toll service and increasing the number of service centers through franchising or licensing, using quality checked product and delivering products after confirming the customer opinion or complaint is resolved will provide an better edge to auto repair and service business.

2. Would it involve different expectations?

The study is conducted with 1870 customers in New York City by research agency. It was found that most customers have following expectation:

  • Free Service

  • General Check-Up at low cost

  • Genuine feedback about the product

  • Inducing Customer with appropriate knowledge

  • Service assistance whenever and wherever needed

Therefore the expectation isn’t different or unknown but it the poor service rendered causing high amount of unresolved problems.

3. How would your marketing be used in changing expectations?

In regards to marketing strategy, it advisable to make a business tie-up many auto companies to produce free service to customer and to fetch stable income for the Business. Furthermore, if i could make a tie-up following would be my Unique Selling Proportion:

  • 3×Free Service

  • 2×Free General Check-Up

  • Genuine Auto Parts with Minimum 1 Year Warranty

  • 24×7 Service Assistance

For Toyota, Ford, GMC, & Honda Vehicles [Example]

4. How would you change the consumer experience to be different based upon changing their expectations, etc.?

As Mentioned Before I would do the following to change the expectation and experience of the customer:

  • Try to tie-up with as many auto producing companies to increase the business product line.

  • Increasing skill set of the employee through continuous training.

  • Will adopt technology for business operation, communication and transactions.

  • Will try providing toll service and increasing the number of service centers through franchising or licensing.

  • Use only quality checked product.

  • Deliver products after confirming the customer opinion or complaint is resolved and

  • Make workers to work in shifts to provide 24×7 service.

5. How would you create a strategy involving a changing consumer?

  • Product line expansion according to changing market trend.

  • Dynamism in business operation and at workplace.

  • Potential workers and staffs

  • Capacity planning, demand forecasting and anticipating future need of the customer would be few strategies that would help business in this dynamic market.


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