Redress for service advisor responsiveness and its impact on customer satisfaction: A Mazda Vietnam report

Download Master Of Business Administration: Redress for service advisor responsiveness and its impact on customer satisfaction: A Mazda Vietnam report (ThS08.062)

Based on the data results of Vietnam Automobile Manufacturers’ Association (VAMA) Sales Figures, till the end of 2018, Mazda car ownership has exceeded 100 thousand units, and sales of the new car increase rapidly every year at the speed of tens of thousands of vehicles. The automotive after-sales service market is about four times ahead of the market, particularly in the USA, this digit is more than five times a year (Sellitto et al, 2010). In fact, the after-sales service income accounts for 60 percent to 70 percent of the entire automotive industry chain’s overall profits. Automotive after-sales service can be said to be the most reliable benefit in the automotive industry chain. In our 3S market, the ratio of new cars and old cars is 4:6, where an old car’s average profit rate is above 12.0%, which is far higher than the new car’s 3.5%.

In 2016 – 2018, Mazda Vietnam put more attention to the sales number, but lack the commitment to after-sales service and do not have the thought of serving clients in full. Some automotive after-sales service providers pay more attention to the benefit created by changing automobile parts while offering service to car owners, but not start from the prospective customer, carefully analyzing faults and reasons and recommending a random change of auto parts, Whilst users take advice without understanding the car’s practical health situation, their legitimate rights and interests were damaged (Ramaswamy, 2000). But after-sales service has now become more and more important in doing business. The after-sale service department, however, did not closely track the growth of the times as well as the progress of the customer demand layer. On the other hand, since there are various car manufacturers, there are other suppliers for the corresponding after-sales service for the vehicle, and the trend mixed with good and bad is inevitable.

According to purchasing behaviors, customers can be categorized into three groups as above, including Customers Under Warranty (CUW), Customer Expired Warranty (CEW), and Casual Customer (CC). In 2017, Mazda Vietnam achieved around 100 million USD as the revenue of the service department. Among them, CEW contributed the largest proposition with 49 million USD, accounted for 49 percent. CUW achieved 26 percent and the rest came from CC. In 2018, Mazda Vietnam had expanded the authorized network, raising its total number of the service center to 40. Chairman’s ambition was to place an authorized center in every province in Vietnam by 2020. However, the revenue of 2018 recorded a sharp decline by 5% despite upgrading the facility or increasing the number of workshops.

ThS08.062_Redress for service advisor responsiveness and its impact on customer satisfaction: A Mazda Vietnam report