TQM at car dealerships with better sales performance: a multiple case study

Abstract

The aim of this research is to analyse what practices concerning sales elements have been applied by the dealerships with better performance in new-car sales processes to support the TQM principles and how they do that. A multiple case study was performed with ten dealerships that represent the top ten branded cars in terms of market share. The TQM principles Strategic Plan and Partnership, Leadership and Employee Involvement, Customer Focus, and Continuous Improvement were considered as well as sales elements such as Structure, People, Process, and Performance. All dealerships believe that their practices support the TQM principles. However, the four dealerships that represent Asiatic brands have better sales indicators performance in comparison with European and American brands. How these dealerships deploy their goals to the managerial and operational levels, how they introduced kaizen leaders to support sales elements, how their car companies support the standards application and emphasise customer focus are the main points that contribute to reinforce the TQM principles at these dealerships. This research contributes with the academic literature unveiling how TQM permeates each sales element at dealerships with better sales performance. Managerial implications are presented through the practices identification performed by the dealerships with better performance.