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Abstract

Magic Automobiles, an auto repair workshop in a small town in India provided two wheeler and car repair servicing facilities under a single roof. It has built up a stream of loyal customers over a period of time. Magic has done well financially in the last 5 years as it did not have any major competition but now another person has started his service station in the town and it is offering similar services as offered by Magic to its customers. This could have a huge impact on the flourishing business of Magic Automobiles. It could also have a negative impact on its operating expenses and profitability. The owner of the company is in a dilemma about whether to launch any special service for its customers or to strengthen his relationships with the customers by practising defensive marketing activities. The case can be used in either an introductory marketing course or services marketing course or a customer relationship management (CRM) course to discuss the interrelations between value proposition, service delivery, service quality, customer satisfaction and customer loyalty. It is also appropriate for advanced undergraduate, MBA or executive-level instruction. This case is intended as an opportunity to discuss the importance of value proposition and service quality within a service organization like Magic Automobiles. The case also explores the importance of service offer, physical evidence, relationship marketing, customer segmentation, customer satisfaction and customer loyalty.
Location:
Size:
4 employees
Other setting(s):
June 2013

About

Abstract

Magic Automobiles, an auto repair workshop in a small town in India provided two wheeler and car repair servicing facilities under a single roof. It has built up a stream of loyal customers over a period of time. Magic has done well financially in the last 5 years as it did not have any major competition but now another person has started his service station in the town and it is offering similar services as offered by Magic to its customers. This could have a huge impact on the flourishing business of Magic Automobiles. It could also have a negative impact on its operating expenses and profitability. The owner of the company is in a dilemma about whether to launch any special service for its customers or to strengthen his relationships with the customers by practising defensive marketing activities. The case can be used in either an introductory marketing course or services marketing course or a customer relationship management (CRM) course to discuss the interrelations between value proposition, service delivery, service quality, customer satisfaction and customer loyalty. It is also appropriate for advanced undergraduate, MBA or executive-level instruction. This case is intended as an opportunity to discuss the importance of value proposition and service quality within a service organization like Magic Automobiles. The case also explores the importance of service offer, physical evidence, relationship marketing, customer segmentation, customer satisfaction and customer loyalty.

Settings

Location:
Size:
4 employees
Other setting(s):
June 2013

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