Transforming showroom visitors into customers for American used cars in Saudi Arabia

Selling American Used Cars in Saudi Arabia: How to Transform Showroom Visitors Into Customers

American Used Cars

Finding and Filling Used Car Buyers' Needs

Personal and Private, yet, Public Sales' Persuasions

Difficult, yet Simple Significant Details

Today and Tomorrow's Timeless Truths

Selling American Used Cars in Saudi Arabia: How to Transform Showroom Visitors into Customers," depicts the title for this MBA project and embodies the hypothesis: While deeming potential used car buyers to be hesitant "one chance customers," when a seller gains insight into buyers' habits, he/she enhances understanding of a customer which amplifies positive customer engagement, and in turn, increases the likelihood that a showroom visitor will become a satisfied customer.

Components contributing to and/or influencing customers' general buying habits, as well as, customers' specific car buying behaviors are explored. In addition, the problem related to selling at sales' points is examined in this study, along with other factors related to buying used cars. One significant aim from this study is that information which was retrieved, evaluated and presented may prove helpful for sellers of American used cars, to enhance their customer cultivation skills.

Along with completing relevant research from books, journals, magazines, and newspapers, information from Web sites was accumulated and analyzed for determinations to confirm or counter this study's hypothesis. Conclusions culminating from this study, as expected, supported and confirmed this researcher's hypothesis.

Chapter I: Introduction

American Used Cars

Remember the waterfront shack with the sign FRESH FISH SOLD HERE.

Of course it's fresh, we're on the ocean.

Of course it's for sale, we're not giving it away.

Of course it's here, otherwise the sign would be someplace else.

The final sign: FISH." (Noonan, 1996)

Exploding," although some individuals claim that American products, including used cars are not selling in Saudi countries, this poignant word is used by some to describe the current automobile market in Saudi Arabia, reportedly the largest in the Middle East to be positive.

This double-edged term could also be used to describe the sale of American used cars in Saudi Arabia. "The United States and Germany lead in used cars sales to Saudi Arabia, with Japan also having a significant share. GM, Ford, and Chrysler's Jeep brands are among the most popular vehicles in Saudi Arabia." ("AUTO PARTS...," 2006) "Exploding" could also be used to reflect two more contemporary scenarios in Saudi Arabia - the accident rate and Saudi caustic driving style. Along with the accident rate in Saudi Arabia, reportedly as one of the highest in the world, aggressive Saudi driving style is noted to lead to excessive wear and tear on automobiles and consequently, the need for the subject explored in this dissertation - used American cars. (Ibid)

Aims and Objectives

The aim for: "Selling American Used Cars in Saudi Arabia: How to Transform Showroom Visitors into Customers," is to determine reasons used car buyers are hesitant to become bona fide customers.

Objective

Identify components contributing to customers' considerations relating to completing a sale.

As prospective customers daily visit automotive dealers' showrooms, furniture stores and warehouses, restaurants, computer and electronic merchandisers, it becomes obvious that some individuals visit a business once and then "disappear" without ever becoming a customer. Such persons seem hesitant to commit to making a purchase and/or are not yet ready to buy a product.

By understanding the reasons for customers' hesitation at sales points and discovering how to better utilize the valuable opportunity a one-chance visit allots toward generating a sale now or in future, futures sales are more likely to be consummated, either with the same prospective customer or indirectly from some other individual.. For this study's purpose, numerous relative theories, as well as components of sales and other significant factors contributing to the understanding and expansion of this subject will be researched.

Objective

Review relevant information literature related to used car buyer's wants and needs, and habits.

When a seller gains insight into "one chance customers'" habits, he/she will enhance his/her understanding of a showroom visitor, and in turn, amplify positive customer engagement, which will fortify the likelihood a seller will transform a showroom visitor will be transformed into a satisfied customer.

Objective

Assess compiled research, along with interview results to determine if study concurs with hypothesis.

This problem for this study could conceivably be related more to the components of selling at sales points than to the criteria of selling to customers in specific locations. When a customer's address/location and contact numbers are known, even if he/she did not initially complete a purchase, sales staff would have the opportunity to later retry again, and then again at another time to sell their product to this customer, utilizing various promotions or different salespersons. It is extremely difficult, however, to retry making a sale, when an individual visits a business' sales point once; never to return; without leaving any specific contact information.

Background and Overview:

This researcher's current interest in cultivating used car customers began during two years work as Deputy General Manager in Al-Bayan Motors in Riyadh, Saudi Arabia, a company specializing in the sale of American used cars (e.g. Ford, Caprice, GMC, etc.). As future plans include managing sales for a reputable car dealership, determining factors of how to best overcome prospective buyers' reservations that, at times, may counter or abort sales, along with discovering ways to best utilize valuable sales opportunities presented during visits to automobile showrooms were two outcomes expected to be gained from this research. The hypothesis, While deeming potential used car buyers to be hesitant "one chance customers," when a seller gains insight into buyers' habits, he/she enhances understanding of a customer which amplifies positive customer engagement, and in turn, increases the likelihood that a showroom visitor will become a satisfied customer," was expected to be ultimately confirmed by this research.

Exploding from this study, this researcher expects, will be a clear, yet complicated comprehension of customers' customs contributing to customers changing from one chance opportunities to conscientious, contented customers.

Chapter II: Literature Review

Finding and Filling Used Car Buyers' Needs

Find a Need... And Fill It."

Anonymous Author)

Identifying a potential customer's needs and wants is vital to turning a showroom visitor into a used car buyer. For a seller of American used cars in Saudi Arabia, it's also vital to know what competing used car dealers currently offer. Another "need to know" for the seller in the process of securing a used car customer, is how his/her vehicle fits the potential customer's needs better than the competitors'.

A used car seller also needs to identify a potential customer's economic status, as a used car's affordability can make or break a used car sale. After this information is obtained, the next step is to formulate plans and actions to create a satisfied customer. (Sheth & Kellstadt, 2005) The best way any seller maintains a competitive edge is retaining customers. Some researchers contend that it.".. costs five times more to attract a new customer than to retain one." (Ibid)

Customers invest effort and time when searching to select a used car dealer, just as sellers invest time to secure customers. "Word of mouth" communication, the report a customer verbalizes to his/her family and friends is one particularly, potent "tool" regularly used to gain new customers. A seller does not have to invest substantial funds, market his product, or invest special sales' resources, as the customer. The way a customer perceives the seller, however, determines whether "word of mouth" communication will prove to be positive of negative.

Research indicates that satisfied customers talk to three other customers; while dissatisfied ones talk to seven others." (Ibid) Customers, considered unbiased sources, are deemed to be credible information sources. Positive word of mouth communications prove particularly vital when the product, as a used car constitutes a financial risk.

Domain of Customer Behavior

Sheth, Jagdish N. & Charles H. Kellstadt (2005) define customer behavior, as.".. The mental and physical activities undertaken by household and business customers that result in decisions and actions to pay for, purchase and use products and services." In addition to a person who qualifies as actual purchaser (buyer), Sheth and Kellstadt (Ibid) contend that along with "payers," a definition of "customer" also includes users as customers. Studying customer behavior proves beneficial for individuals who sell used cars, as when understanding in this realm increases, more positive sales experiences are likely to follow. "Peter Drucker, a leading management advisor, states that the purpose of business is to create and then retain satisfied customers. Although firms have to make money, Drucker believes that making money is a necessity, not a purpose. As an analogy, all humans have to eat to survive, but eating is not the purpose. Therefore, businesses must study customer behavior in order to understand them, and to satisfy their needs and wants." (Ibid)

Satisfied customers not only buy again from the same dealer, they tell friends and family members about their "deal."

If the customer considered his purchase to be positive, his/her comments will likely induce these individuals to also buy from this dealer.

Customer Roles

At least three customer roles are needed for a marketplace transaction: (Ibid)

1. Buying, choosing a particular product or service;

2. Closing sale by paying for product or service;

3. Consuming or using product or service.

Subsequently, one customer may be a buyer, a payer, or a user; or each of these roles may be filled by an organization; various individuals; or different departments. During the process of transforming a showroom visitor to a used car buyer, it is vital to note that if a seller does not cater to each of these three roles, he may loose the customer.

Insuring a used car's features are the ones the potential customer has in mind and that the vehicle will best satisfy the user's want or need has to be a primary goal of a seller.

The payer role is equally important as without a payer a sale will not transpire. In the past, the payer role was frequently minimized or ignored. In today's used car market, as financing is a profitable business, they payer's role is a vital component for insuring a sale is completed, as well as a contributor to the profit factor.

The used car's buyer role is also vital as a buyer's job is to find the right used car and the way to order or acquire the vehicle. If/when the buyer's access to the used car is constrained or the used car he/she is specifically seeking is not immediately available, the sale may not occur.

In many instances, the three roles are one and the same customer. Other times, the user may be the payer but not the buyer, such as in the case when stockbrokers act as agents for clients or when a parent purchases a used car for a child or vice versa.

In companies, a manager or buyer may purchase a used car for employees to utilize for business purposes. Other variations/combinations of the three roles are noted in used car sales and other business transactions.

When a single customer embodies all three roles, as is usual, in the purchase of a used car, a seller usually utilizes a variety of strategies to secure a sale.

A need is defined as "an unsatisfactory condition of the customer that leads him or her to an action that will make the condition better. A want is a desire to obtain more satisfaction than is absolutely necessary to improve an unsatisfactory condition. The difference between a want and a need is the driver. Wants only surface after needs are satisfied. For instance, almost any vehicle will satisfy an individual's need for transportation from here to there. A Corvette; Hummer; Cadillac or Lexus, however, additionally satisfies a "want" to gain performance excitement, to obtain prestige among peers, or project a different self-image.

An individual him/her himself and his/her environment determine a person's needs. Genetics, biogenics and psychogenics reportedly determine a person's physical characteristics, which in turn will influence his/her needs and ultimately, in some form influence the process of buying a used car, as well as, other products to meet his/her needs and wants.

An individual's wants are impacted or," determined by the personal socioeconomic context and the environmental socioeconomic context surrounding the customer. The personal context consists of three dimensions: personal worth, institutions, and culture." (Ibid) Personal worth (financial) is reflected by financial resources a customer can access and may be obtained from his/her income; assets; borrowing power; income. Wants are impacted by these resources as they determine a customer's purchasing power. Consequently, an individual with more economic resources can purchase a new of used luxury car with greater driving excitement and more social prestige.

A culture's influence, another dimension, influences a customer's wants, along with impacting what a person does or becomes.

Whether customers from cultures which value age; products; business success; etc. will likely determine whether they purchase a used car that represents excitement; value (related to age and wisdom) or a classical, sensible style. A customer's culture will also influence what type sales person and/or personality they will be receptive to. Economy, technology, and public policy make up the environmental context, additional influences an individual's buying decisions.

Tools a seller can utilize to create market values to help influence a used car's showroom visitor to become a customer include:

Price Exclusivity

Limited Availability

Social image ads

Emotional Communications

Payer Values Price Credit Financing

Low price from lower margins

Deferred payment

Customized financing

Buyer Values Service Convenience Personalization

Product display and demonstration

Knowledgeable salespersons

Personal attention and courtesy." (Ibid)

The offer of some customization or "extra" to dividable customers without rising prices is one way to add to customer value. Prestige Pricing, the practice of pricing a product so that not every customer can afford it, "ensures that the product will be sold in limited target markets. Ubiquitous availability and universal use of a product detracts from its exclusivity." (Ibid) Expensive American vehicles such as Corvette and Cadillac denote social prestige for/to owners.

The term, "Limited Availability," can be used by sellers to add prestige and/or social value to cars such as a "Cobra limited edition of Ford Mustang," or a vintage American used cars. Some tools creating social value may also stimulate emotional value. Reportedly, some individuals receive an emotional lift when they have an exclusivity of ownership, perhaps of a luxury used car such as the Lincoln.

In creating payer value, "Sellers may allow a delayed or deferred payment." (Ibid)

In creating market values for used car buyers, sellers need to remember that, basically used car buyers look for good customer service prior to and after the sale is completed. The performance value of a used car is built into the vehicle by the manufacturer. The distribution center, however, creates and determines the service value.

Prior to purchasing a used car, a buyer needs the seller to provide pertinent product information and help him/her assess which used car will best fit his/her needs. Sellers who make a point to provide a potential customer extraordinary pre-purchase services will likely be the person who ultimate transforms the used car showroom visitor into a bona fide used-car buyer.

After the contract for a used car is signed, customers still, at times, need a seller's support. Sellers who make insure a customer's post-purchase concerns are addressed will be pass competitors and be remembered in positive ways whenever it's time again to purchase a "new" used car.

Not only does the process of selling an American used car affect the seller personally, sales of American products in Saudi Arabia, including used cars, influence the U.S. And Saudi as nations. Reports show that the United States' share of world merchandise exports to the Arab Middle East decreased from 18% in 1997 to 13% in 2001. "On the demand side, the broad U.S. export downturn is driven by growing Arab boycotts against U.S. consumer and industrial goods....On the supply side, the increasing restrictions on Arab business travel to the United States, and surging U.S. fear, xenophobia and legal campaigns leveled against Arab business are positioned to accelerate the toll on future trade." ("Dividends of Fear: America's," 2003) IRMEP estimates relate that the U.S. lost U.S. $31 billion in exports between 1998 and 2002. If the spiraling downward trend continues, loses for the U.S. could add to an additional U.S. $63 billion through 2007; constituting a ten-year export loss of U.S. $94 billion. (Ibid) Concerns exist that the U.S. will lose Arab market share at the rate of -7.3% per year. The most heavily damaged U.S. export categories are high value-added industries including civilian aircraft, passenger cars (including used cars), military aircraft and drilling/oilfield equipment.

1998-2007 Forecast U.S. Arab Market Losses (U.S. $Billion) by Export

Category

Civilian aircraft

Passenger cars, new/used

Military aircraft, complete

Drilling & oilfield equipment

Wheat

Corn

Industrial machines, other

Tobacco, manufactured

Trucks, buses/special vehicles

Telecommunications equipment

Industrial engines

Parts-civilian aircraft

Tanks/artillery/missiles/guns/ammo

Household appliances

Parts; special goods

Miscellaneous exports

Electric apparatus

Minimum value shipments

Military trucks, armored vehicles

Medicinal equipment

Measuring, testing Instruments

Chemicals-other

Other parts and accessories

Military apparel and footwear

Computer accessories

Dividends of Fear: America's," 2003)

Along with international concerns regarding used cars being exported from the U.S. To Saudi Arabia, other local, national and international concerns/issues regularly influence sellers and customers. One current concern that would dramatically change the Saudi used car market and, in turn, present new challenges for sellers of American used cars is the question "If" women, who are currently not allowed (legally) to drive in Saudi countries would be given this right/opportunity.

So what would happen if, God forbid, women were to drive their own cars?" These words on one petition related to the current debates on women not being allowed to drive in Saudi society. During 2005, following a usual traffic laws' review by the Shura Council, Mohammad al-Zulfa, a retired history professor, proposed a study be made relating pros and cons of allowing women to drive. Although the council quickly rejected the proposal, the London-based al-Hayat newspaper learned of the story and published it. (Ambah, 2005) Zulfa, received a barrage of responses, with approximately 60% of individuals against the idea of women being allowed to drive. Zulfa reportedly even received death threats, yet he continues to argue:

there's nothing in our religion or society that bans women from driving. Women drove camels during the time of the Prophet [Muhammad] and if he were around today his wives would be driving." (Ibid) Nevertheless, not all Saudi women want to drive. On the other hand, however, many Saudi women want to or need to drive and not all of them can afford to hire drivers. If and when women are allowed to drive in Saudi countries, the used car market will most likely dramatically increase. Meantime, men between the ages of 18 and 60 constitute the primary used car buyers.

Reasons to Buy a Used Car

Whether or not women obtain the right/opportunity to legally drive cars in Saudi countries, sellers of used American cars will need to convince potential buyers of credible reasons an American used car constitutes a good investment. As a carefully, maintained car can last 12 to 15 years, purchasing a three- to five-year-old car lets the previous owner take the depreciation loss, while the used car buyer owns a car that still has the majority of its life ahead. A used car buyer can save hundreds of dollars, perhaps thousands of dollars by purchasing used instead of new.

When carmakers engage in a vicious price war and new car prices decrease, used car prices should go down as well. Some buyers think new cars cost too much and depreciate too fast. The average new car "...loses 65% of its value in its first five years. (Because new-car prices have dropped so much this summer, a car bought new within the past few years has probably lost even more value than it would have if there hadn't been a price war.)" ("It still pays...," 2005)

When new-car prices drop, some individuals who usually purchase used cars buy new ones instead, which in turn, reduces the demand for used cars. Consequently, used car sellers will sell American used cars for less. As the used car market is flooded with trade-ins from people buying new-car "bargains."

Basically, an increase in used car supply, along with a decrease in demand makes used car buying currently appealing. Used car buyers not only net a good deal, they have a better selection. On the other hand, when new-car prices rebound, used car prices will likely go up as well. The wear and tear varies widely on used cars, so used car buyers have to also base their buying decisions on car quality. In America, the American Automobile Association (AAA) offers a list of approved car to inspect used cars for buyers. In Saudi Arabia, buyers need to consult with reputable professionals to recommend a mechanic. CARFAX, which can be accessed online, sells a used vehicle history report for $19.99, which will reveal whether a used car has been involved in an accident. The Kelley Blue Book or Edmunds guide, also online, reports usual prices for various models. (Ibid)

Advocates; Dissidents; Antis

Advocates may oppose you because they support something else, and you appear to stand in the way of their goal. Their tactics are mainly vocal. Through public communication, you may be able to find common ground for discussion and perhaps even the creation of an alliance between your organization and the lyvocal.

Dissidents may oppose you primarily because of the position you hold or the actions you have undertaken. Their opposition is not irrational, and communication that addresses their interests and concerns might soften their opposition.

Antis are dissidents on a global scale, people or groups who seem to oppose everything. Often such opposition is generic toward any kind of change or toward any established institution, so public communication probably would have little impact on them unless it were able to show that the presumed change is only illusional. But realize that the antis are suspicious of your organization in the first place. (Smith, 2005, p. 33)

Activists are similar to advocates, but they want more than discussion. They generally seek change, so their opposition to your organization may be a byproduct of their goal. Communication might reveal and promote a common basis for at least limited cooperation. But realize that activists, by definition, seek something specific and tangible, so talk alone won't move them.

Missionaries are self-righteous activists in support of a cause, often operating under the presumption of moral imperative. Communication would have only limited potential for moderating their opposition, though it could help the organization avoid being an obvious target.

Zealots are single-issue activists with a missionary fervor, so public communication is unlikely to coax them out of their opposition.

Fanatics have been called zealots without the social stabilizers. These are the suicide bombers and terrorist snipers ready to go to any lengths in their opposition. Because of their willingness to undertake a no-holds-barred fight, public communication can have little impact on them, though it may impact less fanatical supporters in the cause." (Ibid, p. 34)

Communication is vital for a salesperson, whether with opponents and particularly with prospective and secured customers. Using the right words in the right way through verbal communication, which occurs through written and spoken words, can effectively present the sales pitch and influence one chance customers to buying a used car. Structure, clarity, saliency, power words, product names, strong quotes, along with ethical and legal language all factor into creating effective communication. (Smith, 2005, p. 142) Using arguments to enhance sales prospects does not include initiating conflict with a prospective customer. A used car salesperson may find the following ideas helpful in preparing his/her personal sales presentations:

One-sided arguments present the organization's or speaker's point-of-view but not the opposing views. This kind of argument is useful in reinforcing opinions, because one-sided arguments don't confuse the audience with alternatives, but one-sided arguments are less effective in changing opinions. Four conditions warrant the use of one-sided arguments: (1) The audience is friendly and already agrees with your position, (2) its members have low educational levels, (3) your position will be the only one presented, or (4) the objective is immediate opinion change. Presenting only one side of an argument can cause a temporary attitudinal change, but this is likely to be eliminated if the audience later hears a convincing argument from the other side.

Two-sided arguments present both the pros and the cons of an issue, though not necessarily objectively. They usually criticize the opposition's position. Two- sided arguments are necessary with better-educated audiences, with audiences that are undecided on an issue. And with audiences aware that another side of the issue exists. Such arguments can improve your ability to persuade these audiences because you will be perceived as being more honest and more respectful of the audience's intelligence. If you present both sides of the argument, you have a better chance of achieving a greater attitude change that will remain high when the audience hears the opposing argument from another source.

Order of presentation refers to the way the argument unfolds. Should you present arguments in order of least to most important or vice versa? It generally doesn't seem to matter, as long as you are consistent. However, in developing your persuasive message, you may have reason to choose one form over the other. For example, do you think your audience will be more attentive at the beginning of the message? If so, then use your strongest arguments there." (Ibid)

Smith (2005, p. 142) tresses that research determines that the final word, the last point a salesperson makes is the word or point a customer best remembers, particularly potential customers who may not be that knowledgeable about a used car. Comedian Paula Poundstone illustrated this point in her stand-up routine (related to political campaign dealing with the economy): "I don't know anything about the economy. I tend to agree with the last guy who spoke." (Smith, 2005, p. 143) Davison (2004, p. xii) notes that the car has not only been perceived as an object of desire, but also has been known to be a subject of bitter conflict, at times. In Car Wars, a history of some of the conflicts are depicted as cars, as.".. weapons in the battle of the sexes and in the revolt of the young against their parents," are presented, as well as discussion about cars generating fiscal struggles related to taxes and the road. (Davison, 2004, p. xii) Cars have challenged other road users in their quests to possess the road, as well as, threatening pedestrians. Death and injury that cars have caused rate equaled to that from war. They have also posed internal conflicts for individuals, Davison's (Ibid, p. xiv) arguments include, but are not limited to, related access and amenity, personal safety, self- expression, material improvement and natural environment concerns.

During the course of his writings, Davison (2004, p xvi) relates one particularly poignant memory I.".. find it hard, now, to think of those years without the 'ute', as we called it. It was not only the workhorse of the family business, but with a canvas canopy and one of the old Essex's horsehair-filled seats in the back it doubled as the family car With a caravan hitched behind, it took us on holiday to Phillip Island, Marysville and Lakes Entrance. It took my junior cricket team to away matches. It carted furniture and garden rubbish. It extended our horizons, diversified our choices, consolidated our sense of family togetherness." From Davison's integrated personal (Australian) reflections, salespersons can find stimulants to later relate to used car customer prospects. By the 1 960s, car the automobile had become a "status symbol." (Davison, 2004, p. ix) declared that cars are.".. homes away from home, little oases of privacy, where drivers sit alone with their thoughts amidst the hum of traffic or couples cling together in dark side streets," Davison (2004, p. ix) notes. "They are love objects and status symbols; also symbols of danger and sudden death." Since cars first appeared during the Edwardian era, their appearance, as well as, their function, has earned them attention. According to the Victorian motoring magazine Royal auto in 1966: "No other piece of machinery is a greater status symbol or a means of emancipation for the average person than the ownership of a motor car."(Ibid, p. x)

PESTLE analysis offers another tool a seller can utilize to benefit him/her self and his/her customers. PEST analysis identifies an organization's political, economic, socio-cultural and technological influences. PEST also provides a way to audit the environmental influences that previously impacted an organization or policy and how they may affect them in the future. (PESTLE, 2004) political economic socio-cultural technological legal environmental (Ibid)

The following checklist (copied) can help analyze different influences on an organization or policy. The model can also be utilized to compliment additional analysis.

1. "Which of the environmental factors are affecting the organization?

2. "Which of these are the most important at the present time? In the next few years?

Political

Taxation policy

Local government/devolved administrations

Economic

Business cycles

GNP trends

Interest rates

Inflation

Unemployment

Disposable income

Socio-cultural

Population demographics

Income distribution

Social mobility

Lifestyle changes

Attitudes to work and leisure

Consumerism

Levels of education

Technological

New discoveries

ICT developments

Speed of technology transfer

Rates of obsolescence

Legal

International/European Agreement/Law

Employment Law

Competition Law

Health & Safety Law

Regional legislation

Environmental

Environmental impact

Environmental legislation

Energy consumption

Waste disposal" (PESTLE, 2004)

It is vital to understand the implications of factors gained from a PESTLE analysis. "It may be possible to identify a number of structural drivers of change, which are forces likely to affect the structure of an industry, sector or market. It will be the combined effect of some of these separate factors that will be important, rather than the factors separately." (Ibid) PEST (LE) is used to assess ways external factors may impact the company or organization in the future, which may differ from past impact. The PEST (LE) analysis approach builds on the identification of key trends and the extent they will affect different organizations/policies, which in turn will impact a seller and the way he/she interacts with his/her customers

Selling American Used Cars in Saudi Arabia - PEST (LE) Analysis

In Practice:

PEST analysis from the view point of this researcher, following initial preliminary research will: Provide a framework for understanding the macro environment in which the used car industry operates

Provide a means of identifying key external trends to feed into decision making

Identify key areas of relevance customer relations

POLITICAL

Current conflict exists between America and Saudi Arabia

Government taxes on imported vehicles

ECONOMIC

Used car prices save customers money

Price fluctuation can be dictated by new car market

Less depreciation

SOCIO-CULTURAL

Women are not allowed to drive in Saudi Country

No males under 17 are allowed to drive

Few males over 60 drive

TECHNOLOGICAL

Cars usually last 12-15 years

LEGAL

Women are not allowed to drive

ENVIRONMENTAL

Not yet determined

SWOT Analysis (or TOWS Analysis) offers a technique for a seller or other individual to identify business and/or personal Strengths and Weaknesses, while at the same time examining Opportunities and Threats to be addressed. In the personal scenario, SWOT helps an individual develop and focus in a way that best utilizes personal talents, abilities and opportunities. ("SWOT Analysis," 2006).

As relevant thought is invested completing this SWOT technique, it helps an individual uncover available opportunities and also strengthen the ability to manage and eliminate threats that a person would not otherwise be prepared for. To complete a SWOT Analysis, a seller could utilize an online form as the one copied below or create his/her own form, answering the following questions:

Strengths:

What advantages (for example, skills, education or connections) do you have that others don't have?

What do you do better than anyone else?

What personal resources do you have access to?

What do other people (and your boss in particular) see as your strengths?" (Ibid)

Questions are to be answer from the individual's personal perspective, along with the viewpoint of surrounding people. A seller struggling to find answers could start by writing down a list his/her characteristics and determining which one are strengths.

Weaknesses:

What could you improve?

What should you avoid?

What things are the people around you likely to see as weaknesses?"

This part of the SWOT analysis is also to be considered from personal and external points-of-view. An individual seller needs to be realistic when completing this analysis and note whether others recognize weaknesses that need to be addressed. (Ibid)

Opportunities:

Where are the good opportunities facing you?

What are the interesting trends you are aware of?

Useful opportunities can come from such things as:

Changes in technology, markets and your company on both a broad and narrow scale;

Changes in government policy related to your field;

Changes in social patterns, population profiles, lifestyle changes, etc.; or Local Events" (Ibid)

One approach for discovering and/or confirming opportunities is to assess strengths and question if these present opportunities, as well as, examine weaknesses and determine if opportunities would open up if these were eliminated.

Threats:

What obstacles do you face?

What are the people around you doing?

Is your job (or the demand for the things you do) changing?

Is changing technology threatening your position?

Could any of your weaknesses seriously threaten you?" (Ibid)

Completing a personal SWOT analysis illuminates personal traits and spotlights what needs to be done, while putting concerns in proper prospective. A SWOT matrix or TOWS matrix provides a framework for an individual to analyze their personal strengths and weaknesses, as we;; as opportunities and threats they face. This helps to focus on strengths, minimize weaknesses, and take the best possible advantage of available opportunities. (Ibid)

At the end of every test and/or marketing strategy, one point remains in the seller/buyer scenario. Customers support a business because the business caters to customers' needs and wants. This realization causes employees, as well as used car salesmen/women to adjust the way they interact with customers. Good customer service to insure customers' satisfactions has been in the past, is currently and will continue in the future to be the primary key not only to good business practices but to turning showroom visitors into buying customers.

Chapter III: Methodology

Personal and Private, yet, Public Sales' Persuasions

Advertising could not be understood as simply another form of salesmanship.

It aimed at something new -- "the creation of consumption communities.

The primary argument of the salesman was personal and private:

this hat is perfect for you (singular). His focus was on the individual;

he succeeded when he cajoled, flattered, managed, and overwhelmed a particular buyer's ego.

The primary argument of the advertisement was public and general:

This hat is perfect for you (plural).

While the salesman persuaded the customer that the item was peculiarly suited to his unique needs, the advertisement persuaded groups of buyers that the item was well suited to the needs of all persons in the group.

The advertisement succeeded when it discovered, defined, and persuaded a new community of consumers." (Boorstinm, 2006)

During the undertaking of this project, Selling American Used Cars in Saudi Arabia: How to Transform Showroom Visitors into Customers, this researcher used primary and secondary data. Primary data was obtained from personal in-depth interviews, accompanied by results from two sets of survey questions created to compliment this study. Secondary data was obtained from previous published articles from educational journals, books, magazines, newspapers and Web sites.

After obtaining material from primary and secondary data sources, pertinent information was compiled, assessed and analyzed then summarized.

Questionnaire for Buyers

Why do people in Saudi Arabia buy American used cars?

What categories of people can be customers for such cars?

Why do some people choose to purchase American used cars from dealers' showrooms instead of auctions?

How do customers make decision to buy cars from sellers? Who and/or what may influence this decision?

Why do some buyers hesitate to complete the purchase of a used American car?

How do you evaluate locations of showrooms, cars, prices and promotions?

How can showroom sellers best encourage buyers to purchase American used cars?

Why are you visiting this particular showroom today? Are you ready to buy an American used car?

How often do you plan to visit this or another used car showroom? Why?

At the end of the prospective customer completing this questioning, he/will note whether the "one chance customer" purchased a used American car, as well as other significant points noted. No specific answers were expected during the implementation of the questionnaires/interviews.

After the information was gathered from these efforts, this researcher analyzed the results qualitatively, using suitable software. Averages of answers were also assessed. Seller did not interject personal remarks during the questioning/interview processes.

Interview Questions for Sellers:

Describe the market of American used cars in Saudi Arabia.

Use the SWOT analysis to explain the American used car business in Saudi Arabia:

Strengths:

Weaknesses:

Opportunities:

Threats:

In light of the PESTLE analysis, how do you American used car business in Saudi Arabia?

Describe how the Saudi Arabia society's culture relates to the American used car business in Saudi Arabia:

Describe particular aspect of the marketing mix in the American used car business in Saudi Arabia:

How do you categorize and/or segment customers?

What are three primary differences between used car customers and other customers of different sales points?

How can marketing management best attract used car customers?

What is the best way to counter and surpass competition?

What is the role of sales management in preparing professional sales' staff? What motivate sales persons to perform better?

What factors influence customers' buying decisions

How do different customers behave?

Why do customers sometimes hesitate to complete a purchase

Do you think customers who visit used car dealer showroom should be considered "one chance customers"? Why?

How can seller's best satisfy customers' needs and wants, while also meeting and/or exceeding their expectations?

What specific tips and steps do salespersons need to follow to enhance "one chance customers'" visits?

Customer Satisfaction Survey

Please circle responses you think best describe your satisfaction with the seller.

1. My comments and/or questions are addressed promptly..

2. The seller makes a point to assess my used car needs.

3. Seller makes a point to insure I receive good customer service.

4. Seller appears to be knowledgeable about used cars and components involved in the buying process.

5. My status as a customer is appreciated/valued at this showroom.

6. I feel uncomfortable in making a quick decision to buy an American used car.

7. I prefer to purchase a used car rather than a new one.

8. I plan to visit another showroom and/or solicit information from another seller before purchasing an American used car.

9. I plan to complete the purchase of an American used car during my initial visit to this showroom.

10. I comparison shop (in person or online) before purchasing an American used car.

Loyalty is a dynamic, fleeting concept. You're only as good as your last performance," Maritz Research contends in their promotional booklet.. Loyalty cannot be predicted or explained by any one simple measure, this company contends. Customers, this business argues, will only be loyal to a seller until another seller offers them something better.

Loyalty, Maritz states (p. 4), "is best understood through an examination of both attitudinal loyalty (imagery, beliefs, attitudes) and behavioral loyalty (real-world customer behavior)."

Because contemporary customers possesses greater power than in the past, Maritz (p. 1) attempts to convince sellers of the need for their research services. "Today, you're only as good as your last customer transaction or touchpoint," the company stresses. During the process to help their (Maritz) customers understand and explain their (sellers') customers' behavior, three integrated dynamics are explored:

1. Choice: Why customers select your product or service.

2. Experience: What happens at key "moments of truth" with your customers.

3. Loyalty: Why customers return, defect or buy more.

This researcher contends that although Maritz Research services may benefit large companies, individual sellers may be able to obtain similar information through their own efforts and research. The bottom line that Maritz purports, however, "see through the customer's eyes," best enraptures what it takes to turn a showroom visitor into a bona fide customer.

Methodology

The concept "one chance customer" can be applicable to the prospective customers of the companies that have showrooms, restaurants, service or commercial centers with enough marketing and sales staff and management to collect data and deal with it. But it can not be broadly applicable to customers of all sales points especially in case of the limited number of sales points that serve certain quarters of big cities or serve small towns or villages where customers are forced to come back again and again to the same sales points due to limitation of competitors.

Furthermore, it could be more useful for passing-trade shops to focus on the perfection of their offerings, promotions and presentation rather than to focus on the single visit of a customer because of the big number of customers that pass daily and the difficulties of getting opinions and contact details of such in-hurry customers.

Chapter IV: Reflections and Limitations

Difficult, yet Simple Significant Details

The best advertisement is a pleased customer."

Anonymous adage) strong introduction for this section could relate some significant statements obtained from interview and/or survey results.

This researcher invested considerable effort to make conscientious conclusions based on the hypotheses posited: While deeming potential used car buyers to be hesitant "one chance customers," when a seller gains insight into buyers' habits, he/she enhances understanding of a customer which amplifies positive customer engagement, and in turn, increases the likelihood that a showroom visitor will become a satisfied customer.

Ultimately, insightful recommendations were determined and recorded and include:

Researcher's personal reflections to be included in this chapter. Also, limitations relating to interview and questionnaires implementation need to be eexpanded on in this chapter.

As this study was limited to American used cars showrooms in Riyadh (the capital city of Saudi Arabia), the general shortage of data in Saudi Arabia, along with the conservative nature of its conservative people when discussing their business processes and techniques limited this researcher's ability to obtain as much information as hoped. In turn, the (researcher expands this portion). Results of this project were (adversely or positively) affected by...

Small shops could not be included in this study; due to... expand on reasons... The absence of sales managers additionally prohibited the inclusions of particular small showrooms...

Researcher/MBA Candidate to expand.

Chapter V: Conclusion/Summery

Today and Tomorrow's Timeless Truths

The commercial for Coca-Cola or Alka Seltzer...

A takes for granted the consumer's shopping skills and it assumes the successful distribution of the product to retail stores...

It is a general reminder or reinforcer, not an urgent appeal to go out and buy.

What the ad says or pictures, then, is obliged to be relatively placeless and relatively timeless.

National consumer-goods advertising is highly abstracted and self-contained."

(Schudson, 1996)

Aims and Objectives

This researcher contends that the aim for this study: "Selling American Used Cars in Saudi Arabia: How to Transform Showroom Visitors into Customers," to determine reasons used car buyers are hesitant to become bona fide customers, was in fact, fulfilled.

Objective

Identify components contributing to customers' considerations relating to completing a sale.

Through the process of assimilating information through exhaustive research, this study specifically identified and expounded on components contributing to customer's considerations relating to completing a sale.

A purchase and/or are not yet ready to buy a product.

Researcher to expand on this section, using Template.

Objective

Review relevant information literature related to used car buyer's wants and needs, and habits.

Researched literature repeatedly revealed similar information related to a used car buyers' wants. Although in one sense, used car customers' needs and wants are dissimilar, albeit in basic human concepts, they are basically the same. The primary need of a used car, as well as, other customers is that the seller insures he/she listens to what the customer does and does not verbalize. The "Golden Rule," concept - treat others as you would like to be treated - could be the best rule for a seller to utilize in nurturing positive customer relationships and transforming a showroom visitor into a satisfied customer.

Objective

Assess compiled research, along with interview results to determine if study concurs with hypothesis.

As the problem did in fact relate more to the components of selling at sales points than to the criteria of selling to customers in specific locations, this researcher concludes that... The concept "one chance customer"... (needs to be expanded on by researcher)

The Evening Chronicle's August 11, 2006. ("Used car sales alert," 2006) urges used car buyers.".. To have stringent checks carried out before parting with any money, because of the volume of dodgy motors on the second-hand market."

The Bank of Scotland claims that approximately half of second-hand cars for sale have dappled histories. Chris Joyce, Bank of Scotland Vehicle Finance operations' head warns, "Motor fraud is all too common in the sale of used vehicles, particularly online. (Ibid) As a myriad of fraudulent, along with upright strategies for selling a used car exist, and ranges from online auctions and ads, to large and small dealerships, as well as, individual sellers and independent sales lots, buyers do need to, as the old adage stated, "Beware."

Each car sale and each sale tactic, a dealer needs to remember, requires the seller approach the seller prepared. Peris (2006) encourages used car sellers to insure the car up for sale is in its best possible condition - inside and out. That way, the "deal" will go smoothly, no matter which strategy a used car seller uses whenever he/she promotes the phrase:

American Used Cars.