Dealer Satisfaction Research Articles

Impact of dealer profitability on dealer satisfaction: A context of Indian automobile industry

The purpose of this study is to explore critical factors that defines the level of satisfaction and bond of relationship between Automobiles companies and their dealerships. Indian Automobile Industry is one of the world’s fastest growing Industry and the success of Auto companies is largely depend on their robust and healthy dealer network. In this paper, we attempt to identify critical factors which can influence the relationship of Manufacturer and Dealers. The research is based on a survey carried out in Pune region of Maharashtra, where we focused on identified critical factors of mutual relationship. It was also noted that new age Auto dealerships owners are looking forward for relationships beyond just return on Investment. Using statistical data analysis, we also attempt to identify most critical factors that can influence Dealer-OEM relations. These factors were return on Investment, Future growth potential, Support from OEM team, Involvement in policy decision making and supply of quality product. The results also indicate the roles and responsibility of an OEM in building strong relationship with its dealers to improve the sales.

Enhancing Dealer Satisfaction: Assessing Durability and Business Support of LG Products in Ahmedabad

Enhancing Dealer Satisfaction: Assessing Durability and Business Support of LG Products in Ahmedabad

Customer perceived value and customer relationship marketing in B2B agribusinesses: A case of agrochemical market in Sri Lanka

This research examined the impact of customer’ perceived value on CRM in Business to Business (B2B) agrochemical agribusinesses in Sri Lanka. Customer perceived value was measured by economical value, emotional value and social value based on standard 36 attributes. A total of 110 respondents including distributors and direct dealers engaged in agrochemical marketing covering all island were interviewed. Results were obtained by both descriptive and inferential statistics. Two mediating variables; customer satisfaction and customer loyalty were used to find the impact of customer perceived value on relationship marketing attributes. Findings revealed that dealers perceived slightly higher economical values than emotional values and comparatively low social values. Weaker but positive correlations were found between dealer’s perceived emotional, economic and social values with their satisfaction and customer loyalty. Customer satisfaction and customer loyalty had mediating effects to the relationship of customer perceived value with CRM attributes hence with relationship marketing. The findings provide utilizable model for the agro chemical manufacturing companies to enhance dealer’s perceived value that contribute to higher dealer satisfaction, loyalty hence re-purchase behaviour and long term customer retention.

Strategic issues in marketing of consumer and technology products dealer satisfaction survey-Implications for enhancing channel relationship

Marketing literature shows that the main sequences of strategic marketing planning and control processes are based upon the point of sales management which means strong bonding with the Sales channel network i.e. dealers. Considering the fact that the way in which a dealer is treated by its manufacturer has decisive influence on the dealer's commitment to the brand as well as on the dealer's business success, an examination of dealer satisfaction or dissatisfaction has become strikingly important during the last few years. But equally important is how dealer rates the manufacturer company. On the above lines, the objective of the study is to evaluate a manufacturer company on overall product standing, product demand, quality consciousness, price sensitivity, providing optimal combination of price and quality, timely delivery and performance in order execution by its dealers. This in turn would provide an overall perspective on the Company's abilities in terms of Channel Management. The dealers also evaluated the company's responsiveness and dealing of front line office employees towards dealers. A complete Dealer Level survey performed to ascertain product and company standing in the market and dealer relationship strength. The consumer product considered for the study is Jyoti Tempcore (TMT bars) of Madhav Group of Industries, Mandi Gobindgarh, Punjab, India. This is among the top 10 steel producers of the region and commands a high position in construction and structural steel. The sample consists of all of its dealers in Punjab. There are 169 respondents. A structured questionnaire has been formulated. With reference to the survey, a varied set of outcomes appeared in a variety of segments. But, primarily the outcome was quite progressive. With just a few areas showing scope of major reforms-like company's interaction with dealers, distributor relationship with dealers and brand visibility at dealerships. The other factors showed promising

Product-Line Strategy at Porsche: The Effect of New Models on the Porsche Brand and the 911

The Porsche 911 has long been the face of the company's product line. Over the years, Porsche has added models priced either above or below the 911, but only the lower-priced models have sold well. Porsche seems to struggle between what an executive calls the pull of the market and the tug of brand equity. This case provides an opportunity for students to analyze the optimal breadth of a product line that will balance sales, profitability, dealer satisfaction, and long-term brand health and customer satisfaction. Excerpt UVA-M-0695 Rev. Jun. 30, 2011 Product-Line Strategy at Porsche: THE EFFECT OF NEW MODELS ON THE PORSCHE BRAND AND THE 911 The 911 is the most universally recognized car on the planet. From the very first bathtub 356 to the modern 911, the formula for a successful Porsche has never deviated. Put the engine in the rear, outrageous fender flares at each wheel (but especially in the rear), and make sure, damn sure, that the styling is predicated on styling cues established 40 years ago. Along the way, Porsche has tried to deviate from this simple formula—the 914, the 928 and, of course, the 944, none of which have been successful, despite the fact that all (and I include the 914 in that category because the 914/6 version was a great car) were exemplary motor cars that outshone their contemporaries. . . .

Aligning Company and Dealer Perspectives in Corporate Branding: Implications for Dealer Satisfaction and Commitment

Purpose: There is a contention in marketing literature that gaps between corporate and key stakeholders’ perspectives have unfavorable implications for corporate brand performance. The current article attempts to empirically substantiate this argument. As such, this article looks at the relationship between a car manufacturer and its dealers and examines it from the perspective of the relationship misalignment. Methodology: Applying the Profile Deviation method, this study tests the effects of a manufacturer–dealer corporate brand misalignment on dealer satisfaction and commitment. The manager-specified ideal profile for a corporate brand was used as a proxy for a manufacturer perspective and a benchmark against which dealer perceptions were compared. The corporate brand construct encompassed the dimensions of corporate image, corporate personality and dealer-experienced value. Hypotheses were tested using Pearson correlations and multiple regressions. Findings: Results, which were robust across all the corporate brand dimensions, support the hypotheses of negative performance impact of manufacturer-dealer misalignment. Originality/value/contribution: This study identifies an important link between the theoretical proposition and the operationalization test of examining performance implications of misalignment. The current study argues for broader integrative thinking and cross-disciplinary research in business-to-business marketing. In the absence of the relevant literature on conceptualization and operationalization in the marketing literature, the article borrows a testing method of Profile Deviation from the management field. By developing a fine-grained analysis, the current study pinpoints specific aspects that require co-alignment in corporate branding, thus facilitating managerial decision-making. Research implications/limitations: The current study demonstrates that deviation from a corporate perspective implies a weakness in corporate branding process with negative performance consequences. The Profile Deviation perspective used in this article has focused on a static, cross-sectional approach for specifying and testing misalignment between a manufacturer and its dealer principles. The researchers are encouraged to consider alternative mechanisms to test for misalignment as a dynamic task within a longitudinal research design. Practical implications: Companies must be aware of the areas where gaps can occur that impede effective decision-making. Aligning a corporate brand between a company and members of the distribution channel requires careful implementation that encourages dealer inputs in brand operations while avoiding counter-productive implications.

Attributes of overall satisfaction of agricultural machinery dealers using a three‐factor model

PurposeThis paper aims to investigate the satisfaction of dealers with their suppliers in the agricultural machinery sector.Design/methodology/approachA dummy approach of the three‐factor model is used to detect the dimensions that influence the overall satisfaction of agricultural machinery dealers. The model considers satisfiers, dissatisfiers and so‐called performance factors that might lead to both satisfaction and dissatisfaction.FindingsTwo dissatisfiers, after‐sales and service methods and relationship with supplier, are detected. Furthermore, there is one satisfier, competitive outlook, and one performance factor, the product program.Research limitations/implicationsThe dummy approach detects the three factors implicitly. A Kano‐questionnaire might be helpful to confirm the results.Practical implicationsProducers should first fulfill the factors that have the highest negative impact: product program, followed by after‐sales and service methods and relationship with supplier. After reaching a specific level within these factors, producers could seek to increase their dealers' satisfaction with the two factors, product program and competitive outlook. The product program thus represents the key factor for producers seeking to both decrease dissatisfaction and increase satisfaction.Originality/valueWhile different approaches of the three‐factor model are used along with customer satisfaction, this paper is the first to detect different factors of dealer satisfaction in the agricultural machinery sector.

E-Service quality and relationship quality on dealer satisfaction: Channel power as a moderator

Along with the rapid growth of electronic services (e-services), supplier–dealer marketing channels have changed. This study expands on previous studies by examining the effects of e-service quality and relationship quality on dealer satisfaction. Channel power was proposed to have moderating effects on relationship quality and dealer satisfaction. Results of data analysis indicated that e-service quality has a positive effect on relationship quality, which in turn has a positive effect on dealer satisfaction. Furthermore, non-coercive power had a significant moderating effect on relationship quality and dealer satisfaction, but coercive power did not. The results imply that dealers are more tolerant of coercive power in Taiwan, which is also a reflection of the cultural differences between Taiwan and Western countries.

Benchmarking the Performance of the Technical Services Department of an Automotive Battery Company

The Technical Services Department or TSD is responsible for after-sales service, warranty issuance, and customer service. They represent the service arm of the company that is constantly in contact with the dealers and the customers. To assess their performance, the department conducted their first dealer satisfaction survey. The survey consisted of dealers that attended the TSD training, divided into two independent groups – the Metro Manila dealers and dealers outside Metro Manila or provincial dealers. The results revealed that 89 percent of the Metro Manila dealers that attended the training are satisfied with the services of the TSD. On the other hand, 85 percent of the provincial dealers that attended the training are satisfied with the services of TSD. Both the respondents from Metro Manila and provinces hit the generally accepted level of dealer satisfaction set by NADA. Benchmarking the strengths of the department revealed that the TSD’s overall customer service is “very good.” One of the weaknesses of the TSD according to Metro Manila dealers that attended the training is that TSD must improve their logistical capacity to pick-up defective batteries and to deliver new batteries. For the provincial dealers that attended the training, the TSD lacks frequent visits. A pareto chart was created to summarize the issues that the department must act upon. For the Metro Manila dealers that attended the training, providing warranty limitation and replacement chart is that number 1 issue while more training and more visitations are the number 1 issues for provincial dealers that attended the training.

An Ordinal Regression Model Using Dealer Satisfaction Data

This article analyses dealer satisfaction data in the agricultural technology market in Germany. The dealers could rate their suppliers in the ’overall satisfaction’ and in 38 questions which can be summarized in 8 dimensions. An ordinal regression model which is also known as the proportional odds model is used to analyse the ordinal scaled rating of the dealers. The ordinal regression model is a well examined method in econometric theory, but many authors prefer using a linear regression model due to better interpretation, even the assumptions of a linear regression do not fit the data. Since the estimated coefficients of an ordinal regression model can not be properly interpreted we show other methods for a better insight of the relationship of the dealer satisfaction and the influencing variables. These methods are easy to use and it is recommended to list some of them in empirical papers.

The effects of influence strategies on dealer satisfaction and performance in Taiwan's motor industry

The studies of influence strategies in channel relationships have focused on western, individualistic countries. This study seeks to extend the empirical findings in Taiwan's motor industry to elucidate differences among diverse context. The results reveal that the promise strategy must be separated from coercive strategies and the request strategy must be separated from noncoercive strategies under the context of Taiwan's motor industry. Moreover, discrimination between economic and social satisfaction helps relationships between influence strategies and satisfaction and the effects of satisfaction on performance to be understood. The dealer's satisfaction is positively related to his performance, and social satisfaction is more important than economic satisfaction.

Is dependent what we want to be? effects of incongruency

A paradigm shift within marketing has focused attention on the relational end of the exchange continuum where dependence justifies relationship behavior and drives outcomes. Previous research, however, ignores the possibility that attitudes toward dependence might also be responsible for relational and economic outcomes. We propose that the impact of adverse attitudes might be partially responsible for previous empirical results, contradicting the notion that parties respond favorably toward relationships and experience positive outcomes. Building on dependency theory, transactional cost analysis (TCA), and congruency theory, this study examines the influence attitudes toward dependence have on the ability of a channel member to work effectively under conditions where dependence exists. Results indicate that when dependence exists adverse attitudes toward dependence moderate the relationships between dependence and dealer satisfaction, and dependence and revenue generated from the relationship, but not necessarily in a negative fashion or under all dependent conditions.

Dealer satisfaction and its significance with regard to the relationship between authorized car dealers and manufacturers/importers

Considering the fact that the way in which a dealer is treated by its manufacturer has decisive influence on the dealer’s commitment to the brand as well as on the dealer’s business success, an examination of dealer satisfaction or dissatisfaction has become strikingly important during the last few years. For this purpose a questionnaire has been developed by the Forschungsstelle Automobilwirtschaft (FAW), Bamberg with the aim to assess the Dealer Satisfaction Index (DSI). The main objective of this questionnaire is to evaluate the significance of various factors with regard to business success for all brands and dealerships, and to provide a profound result concerning satisfaction or dissatisfaction of all dealers with their brand. Since its start in 1995, the DSI has gained increasing importance throughout both trade and industry. With regard to the development the dealer satisfaction has undergone since 1995, it is highly remarkable that the dissatisfaction still persisting in 1996 did not continue in 1997. The overall satisfaction has increased markedly.

A cross-cultural study of influence strategies and satisfaction in marketing channels

The relationship between communication in the form of influence strategies used by suppliers in marketing channels and dealer satisfaction is examined in the two diverse cultures of the US and India. The frequencies of use of six types of influence strategies by suppliers-information exchange, recommendation, request, promise, threat and legal plea-are measured. The same measurement scales for the six influence strategies and dealer satisfaction are applied in the electric lamp and lighting equipment channels in the two countries. In both cultures, a structural equation model relating the influence strategies with dealer satisfaction is found to be statistically significant. However, when the impact of individual influence strategies on dealer satisfaction is considered, differences are found between the two countries. In the US, recommendations affect dealer satisfaction positively whereas requests and threats affect it negatively. In India, recommendations and legal pleas impact on dealer satisfaction positively.

Dealer Satisfaction Through Relationship Marketing Across Cultures

The relationship of supplier-dealer relationalism with dealer satisfaction is examined with the help of a structural equation model in the two diverse cultures of the United States and India. Intrachannel relationalism between suppliers and dealers is measured in six dimensions: solidarity, mutuality, flexibility, role integrity, duration, and trust. The same measures of the various aspects of relationalism and dealer satisfaction are applied in the electric lamp and lighting equipment channels in the two countries with satisfactory reliability and validity. In both countries, relationalism as a whole is found to have a significant positive impact on dealer satisfaction. Individually, different dimensions have significant impacts on dealer satisfaction in the two countries. In the United States, trust and mutuality are individually significant, whereas in India, flexibility is the significant dimension affecting satisfaction. Managerial implications of the results and future research directions are discussed.

Communication and Related Channel Phenomena in International Markets

This is an attempt to investigate the relationship between communication and each of the channel phenomena of: manufacturer control over the dealer-agent, manufacturer role performance, dealer satisfaction and conflict between the two in an international setting; automobile manufacturers exporting to Saudi Arabia. The paper first discusses the impact of the level of economic development and culture on channel structure and operations. From a questionnaire data, constructs were developed, their reliability and validity ascertained. A positive association was hypothesized between communication and each of the first three constructs and a negative one hypothesized with conflict. Results indicated a significant positive association between communication and the manufacturer role performance and also with satisfaction. No association was detected between communication and control nor with conflict.

Control, Conflict and Satisfaction in International Channels:

This is a study of the relationship between foreign car-manufacturers and their respective agents in the emerging market of Saudi Arabia. The study takes the theories and findings about the relationship in advanced country domestic situations to see if they apply to a cross- country situation involving manufacturers from advanced countries and agents in a developing country. The study examines the extent of the manufacturer control over the dealer, the sources of that control and how each of these affect the level of conflict between the manufacturer and the dealer, and the dealer satisfaction, all from the dealer's perspective. Based on the literature, hypotheses were formulated and constructs developed using a questionnaire to which a relatively large sample of the dealers responded. Appropriate statistical tests of reliability and validity were conducted and thereafter simple Pearson correlations were calculated to test the hypotheses. Unlike in most advanced country studies, manufacturers were found...

Supplier involvement and dealer satisfaction: implications for enhancing channel relationships

Suppliers use a variety of strategies to gain a preferred position within their dealers′ supply network. Dealers allocate purchases among several suppliers in order to maximize benefits from their suppliers′ competitive maneuvers and to avoid being dominated. Uses an extension of transaction cost analysis and contract law to provide empirical insight into supplier‐dealer relationships within dealers′ supply networks. Also suggests simple but powerful mechanisms for suppliers to enhance relationship strength.

The impact of dependence on dealer satisfaction: A comparison of reseller-supplier relationships

This study extends previous buyer-seller relationship research by examining the level of mutual dependence and power-dependence imbalances across buyer (reseller) supply sources. Using critical support services and the intensity of coercive influence attempts, results suggest that the level of mutual dependence and power-dependence imbalances make a difference in reseller satisfaction, but that the impact hinges upon whether the supplier is the primary, secondary, or tertiary supplier in terms of annual purchases by the reseller. The Executive Summary offers direction for managers.

Interrelations among a Channel Entity's Power Sources: Impact of the Exercise of Reward and Coercion on Expert, Referent, and Legitimate Power Sources

Several distribution channel studies have examined the effects of various sources of a channel member's power on such phenomena as power, conflict, and satisfaction. However, as causal relationships among these power sources have not been considered, the author investigates some aspects of this issue. Specifically, the effects of reward and coercion on the expert, referent, and legitimate power sources in a marketing channel are identified. Results indicate that (1) a supplier's application of reward and punishment does affect the strength of its other three power sources and (2) these relationships exert a major influence on whatever impact reward and coercion may have on other channel phenomena such as supplier power and dealer satisfaction. The implication of this finding of a compound effect of the use of certain power sources is that channel entities should be even more circumspect about such action than would be advised on the basis of prior research in this area.