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Car brands: The road to riches fuelled by brand power
Peter Walshe and Nick Bull, ESOMAR, Automotive Research Forum, Wolfsburg, May 2013
This report provides an analysis of the automotive brands that feature in Millward Brown's BrandZ rankings.
This report provides an analysis of the automotive brands that feature in Millward Brown's BrandZ rankings. It examines what has caused these car brands to change position in the table over time, with particular focus on the effects of the global recession, model recalls, social media effects and the new 'value-conscious' era. The report argues that financial success for car brands depends on being meaningful, different and salient, and describes how they can grow in value through fostering these properties.
Deceptive advertising and abnormal stock returns: An event study analysis
Jaeseok Jeong and Chan Yun Yoo, International Journal of Advertising, Vol. 30, No. 3, 2011, pp. 509-535
This study examined the impact of deceptive advertising on the abnormal stock returns of firms. Using an event study analysis with 101 cases from the FTC database over the period 1987–2005, the FTC rulings on deceptive advertising were found to have the negative effects on the abnormal stock returns of firms.
This study examined the impact of deceptive advertising on the abnormal stock returns of firms. Using an event study analysis with 101 cases from the FTC database over the period 1987–2005, the FTC rulings on deceptive advertising were found to have the negative effects on the abnormal stock returns of firms. Among the firm-specific factors examined in this study, the amount of advertising expenditures played a role in alleviating the impact of deceptive advertising on the abnormal stock returns, and the firms charged with consent agreements alone were found to lose less firm value than those charged with additional actions by the FTC. Results also showed that the negative effects on the abnormal stock returns created by the FTC actions did not quickly disappear afterwards. These results imply that marketing managers should exercise caution in designing advertising messages that may or may not intend to violate the FTC rules and regulations on deceptive advertising.
Delight or defection: the pivotal role of people at the retailer inside the customer experience
Jörg Höhnery and Charles Kirchner, ESOMAR, Automotive Conference, Lausanne, March 2008
In the car manufacturing industry, boosting unit sales and market share hinges on getting end users to value the actual sales interaction and customer service.
In the car manufacturing industry, boosting unit sales and market share hinges on getting end users to value the actual sales interaction and customer service. While interaction with the client during the “customer experience” is pivotal to achieving long-term sales results, so too are the methods used to evaluate customer satisfaction. They play a leading role in honing a competitive edge in 21st century global markets. Despite clear demands for better service, however, customers report almost no improvement in the last decade. Why? Companies too often ignore the dynamic people issues that truly affect customers’ experience. Almost half the customers who defect leave because of issues with customer service. Only those companies fully aware of the intricate chain involved in measuring and understanding change, and willing to enhance staff performance in the modern customer experience, can hope for fully-fledged success.
Turning 'point of sale' into an image and sales accelerator
Eric Lemerle, Renaud Degon and Hubert Boulos, ESOMAR, Automotive Conference, Lausanne, March 2008
In the car industry and when it comes to generalist brands (vs niche/high end), image is built through communication, and particularly TV advertising.
In the car industry and when it comes to generalist brands (vs niche/high end), image is built through communication, and particularly TV advertising. In many countries, the leading brand is actually the leading TV media spender. The total car industry category is generally one of the top three categories that spend on TV. On that basis the point of sale is considered as just the place where cars are sold. This paper looks at how the point of sale can be used to further the strategic evolution of Renault’s image and brand identity.
Retaining after sales business at the branded automotive dealership
Jürgen Verlee and Dick Hage, ESOMAR, Automotive Conference, Lausanne, March 2008
In many national economies, the automotive business plays a major role - in Germany, for instance, 10% of the working population is in some way connected to the automotive industry.
In many national economies, the automotive business plays a major role - in Germany, for instance, 10% of the working population is in some way connected to the automotive industry. In automotive retailing the impressive turnover of automotive dealerships makes them one of the most important players in local economic areas. In the Netherlands, the top 50 automotive dealers sell more than 40% of all the 500,000 new cars entering the market in a year. Although the turnover on selling new cars is high, the profit margin is quite low, 1 or 2% at the most, comparable to food retailing. Continuous investments need to be done to keep automotive dealerships modern and up to date, thus somewhere money has to be made. In general 65% of the revenue in automotive retailing at Toyota dealerships in the Netherlands comes from the After Sales business.
Automotive dealerships in China: accelerating performance
Klaus Paur and Thorsten Amann, ESOMAR, Automotive Conference, Lausanne, March 2008
In recent years, China has surpassed Japan and the major European car markets, and rapidly become the second largest automotive market in the world.
In recent years, China has surpassed Japan and the major European car markets, and rapidly become the second largest automotive market in the world. Only in the United States of America are more vehicles sold every year, and even this will change in the future. With a projected annual growth of approximately 20%, China is destined to become the number one auto market in the world within the next three years. Indeed, even with far more conservative expectations, the “Middle Kingdom” will gain the global top spot not later than 2015. As one of the fastest developing car markets with huge potential for further growth, China has attracted virtually all car manufacturers to produce and sell their vehicles on the mainland. China has rapidly transformed from a “seller’s market” into a “buyer’s market” in which consumers can now choose among more than 60 car brands. The “Middle Kingdom” has therefore become the most competitive car market in the world - a fact which poses particular challenges for marketing strategies of car manufacturers, including the management of their distribution networks as well as individual dealer performances.
Integrating marketing intelligence sources - Reconsidering the role of the salesforce
Ken Le Meunier-FitzHugh and Nigel Piercy, International Journal of Market Research, Vol. 48, No. 6, 2006, pp. 699-716
Research has identified that after 40 years of discussion the use of the salesforce as a source of market information is relatively widespread in business-to-business organisations, but that the majority of organisations do not gather, store ordisseminate this information effectively.
Research has identified that after 40 years of discussion the use of the salesforce as a source of market information is relatively widespread in business-to-business organisations, but that the majority of organisations do not gather, store ordisseminate this information effectively. The research highlights that the salesforce should be set clear objectives and incentives and, most importantly, be included in the dissemination of market intelligence for the organisation to gainmaximum benefit. Unless sales personnel are able to understand how their information contributes to the organisation’s activities and feel that their participation is valued, they will be unable to provide timely and pertinent information to the organisation. Further, the research suggests that organisations that do not effectively disseminate market information across functional boundaries may be ignoring a potential source of competitive advantage. This paper provides a review of the current situation, a literature review, a discussion of management implications and suggestions for further research.
Utilising surveys for finding improvement areas for customer satisfaction along the supply chain
Ipek Deveci Kocakoç and Ali Sen, International Journal of Market Research, Vol. 48, No. 5, 2006, pp. 623-636
In today's competitive environment, companies that want to survive need to improve their products and services.
In today's competitive environment, companies that want to survive need to improve their products and services. If customer satisfaction measurements are used as a source of improvement effort, the results will be more satisfactory and realistic. Satisfaction of the end customer is strongly related to satisfaction of the whole customer chain. If a company's wholesalers are not satisfied, it is likely that the end customers will be dissatisfied. This study represents how customer surveys can be useful for determining improvement areas for customer chains. A new evaluation method for deciding improvement areas using survey results is also proposed. The proposed method and preparation, measurement and evaluation process of a customer chain satisfaction project, which is conducted for the customer chain of a company manufacturing automotive spare parts, is presented.
The perfect mix - fact based assortment optimization
György Szilágyi, ESOMAR, Retail Conference, Budapest, April 2005
The paper describes a down-to-Earth approach to optimising a retailer’s product assortment in key product categories by the combined analysis of the retailer’s internal sales information and external market data.
The paper describes a down-to-Earth approach to optimising a retailer’s product assortment in key product categories by the combined analysis of the retailer’s internal sales information and external market data. The method offers an alternative to the widespread practice of inconsistent adhoc decisions that tend to leave growth opportunities unexploited but lead to increased costs in the supply chain.
Automobile dealer distribution model. A case study among regional major cities in China
Mingzhu Qi and Lin Lei, ESOMAR, Asia Pacific Conference, Shanghai, March 2004
This paper develops an automobile dealer distribution model taking into consideration the unbalance in economic base and comprehensive strength among the 266 regional major cities in China.
This paper develops an automobile dealer distribution model taking into consideration the unbalance in economic base and comprehensive strength among the 266 regional major cities in China. Using the different automobile-consumption policy orientation and automobile dealer distribution among competitors as independent variables, and the current customer distribution of one automobile brand/model as the dependent variable, the paper builds a regression model to forecast the rationale consumption potential distribution of a specific automobile brand/model customer distribution among 266 regional major cities. This model provides automakers with a base to plan their dealer channel. The key innovation of this model is to establish an automobile-related economic index for the 266 regional major cities that account for more than 90% of China's economic base. This paper uses the car market as a showcase. Moreover, the main theme of the model could extend to SUV dealer distribution, and even to similar research in other automobile markets overseas.
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