Abstract :
Indonesia has been one of Southeast Asia’s largest used car markets. Approximately 2.5-3 million used cars are sold annually. The increased competition in the automotive industry has heightened the emphasis on improving customer relationships. ABC Showroom (pseudonym) is a local used car dealer in Bukittinggi currently facing unsatisfactory sales performance and lacking relationship marketing strategy. The aim of this research is to formulate the relationship marketing strategy for ABC Showroom and find out whether the strategy differs amongst its customer persona.
Internal analysis and external analysis are conducted to formulate the strategy. The internal analysis consists of marketing mix (7P) and STP analysis. The external analysis includes PEST analysis and competitor analysis. A quantitative approach using a survey is carried out to collect information on target market preferences regarding the proposed relationship marketing strategy, specifically personal selling, personalization, and after-sale service. The total of respondents obtained in this research is 240 respondents. The Two-step clustering analysis is conducted to build the customer persona of ABC Showroom. Analysis continued by conducting the Kruskal-Wallis test to find out if the proposed strategies differ amongst customer persona.
Based on the result of the Kruskal-Wallis test, the proposed strategies do not differ amongst customer persona. Findings on internal analysis and external analysis are summarized with a SWOT matrix. Then the TOWS matrix is used to assist the author in formulating the relationship marketing strategy while tailoring it with the survey result. The relationship marketing strategies proposed includes improving salesperson performance by providing target and uniform, providing remarkable test drive experience, providing proactive and caring customer service, providing personalized offers and car products, and providing after-sales services such as warranty, repair, and maintenance service, car ownership transfer and vehicle plate transfer assistance, and car tax payment assistance.
Keywords :
After-Sale Service Personal Selling, Personalization, Relationship Marketing, Used CarReferences :
- Mendiratta, A. (2021, January 21). Digitalization Transforming the Used Car Industry in Indonesia. Ken Research. Retrieved July 3, 2023, from https://www.kenresearch.com/interviews/digitalization-transforming-the-used-car-industry-in-indonesia/45.html
- Mordor Intelligence. (n.d.). Indonesia Used Car Market – Size, Share & Industry Report. Mordor Intelligence. Retrieved July 3, 2023, from https://www.mordorintelligence.com/industry-reports/indonesia-used-car-market
- Mendiratta, A. (2021, February). Indonesia Used Car Market, Analysis, Revenue, Growth Rate, Future Outlook. Ken Research. Retrieved July 3, 2023, from https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/indonesia-used-car-market-outlook-to-2025/412166-100.html
- Foss, B., & Stone, M. (2001). Successful Customer Relationship Marketing: New Thinking, New Strategies, New Tools for Getting Closer to Your Customers. Kogan Page.
- Tuzunkan, D. (2017). Relational Marketing and Customer Relations Management (CRM) Implementations on Automotive Sector: The Case of Turkey. nternational Journal of Applied Engineering Research, 12(21), 11432-11440.
- Nwakanma, H., Jackson, A. S., & Burkhalter, J. N. (2007, February). Relationship Marketing: An Important Tool For Success In The Marketplace. Journal of Business & Economics Research, 5(2), 55-64.
- Firmansyah, F., Margono, S., Rohman, F., & Khusniyah, N. (2019). The Concept and Steps of Personal Selling. Advances in Economics, Business and Management Research, 101(1), 225-232.
- Kotler, P., & Armstrong, G. (2016). Principles of Marketing (16th ed.). Pearson.
- Anyadighibe, J. A., Awara, N. F., & Esu, B. B. (2014). The Impact of Personal Selling on The Productivity of Selected Banks in Calabar Metropolis. nternational Journal of Development and Sustainability, 3(8), 1697-1708.
- Bankole, O. A., Ogundipe, C. F., & Obalakin, I. O. (2021). Personal Selling As A Means of Increasing Performance of Service Providers in Akure Metropolis, Nigeria. Journal of Business School, 4(3), 278-284. 10.26677/TR1010.2021.909
- Yudiantoro, D., Astuti, W., & Respati, H. (2018, September). Impact Of Customer Satisfaction Towards Word of Mouth In Commercial Bank [3rd International Conference of Graduate School on Sustainability].
- Confente, I., & Russo, I. (2015). After-Sales Service as A Driver For Word-Of-Mouth And Customer Satisfaction: Insights From The Automotive Industry. International Journal of Management Cases, 17(4), 59-72.
- Long, N. H., & Van, N. T. T. (2020). Improving the After-sales Service: An Empirical Investigation into Toyota Motor Vietnam. International Research Journal of Advanced Engineering and Science, 5(3), 241-245.
- Chandra, S., Verma, S., Lim, W. M., Kumar, S., & Donthu, N. (2022). Personalization In Personalized Marketing: Trends and Ways Forward. Psychology & Marketing, 39(8), 1529-1562. 10.1002/mar.21670
- Imhoff, C., Geiger, J. G., & Loftis, L. (2001). Building the Customer-Centric Enterprise: Data Warehousing Techniques for Supporting Customer Relationship Management (1st ed.). Wiley.
- Aksoy, L., Cooil, B., & Lurie, N. H. (2011, May). Decision Quality Measures in Recommendation Agents Research. Journal of Interactive Marketing, 25(2), 110-122. 10.1016/j.intmar.2011.01.001
- Arora, N., Liu, W. W., Robinson, K., Stein, E., Ensslen, D., Fiedler, L., & Schüler, G. (2021, November 12). The Value ff Getting Personalization Right–Or Wrong–Is Multiplying. McKinsey. Retrieved February 5, 2023, from https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying
- Boudet, J., Gregg, B., Rathje, K., Stein, E., & Vollhardt, K. (2019, June 18). The Future of Personalization—And How to Get Ready For It. McKinsey. Retrieved February 5, 2023, from https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-future-of-personalization-and-how-to-get-ready-for-it
- Shikalepo, E. E. (2020, June). Defining a Conceptual Framework in Educational Research. 10.13140/RG.2.2.26293.09447
- The World Bank. (n.d.). Indonesia GDP. Retrieved July 9, 2023, from https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2022&locations=ID&start=2015&view=chart
- Wasani, D., & Purwanti, S. I. (2022). The GRDP Per Capita Gap between Provinces in Indonesia and Modeling with Spatial Regression. Jurnal Matematika, Statistika Dan Komputasi, 19(1), 65-78. 10.20956/j.v19i1.20997
- Badan Pusat Statistik. (n.d.). Produk Domestik Regional Bruto dan PDRB Per Kapita di Provinsi Sumatera Barat. Badan Pusat Statistik Provinsi Sumatera Barat. Retrieved July 9, 2023, from https://sumbar.bps.go.id/indicator/52/169/1/-seri-2010-produk-domestik-regional-bruto-per-kapita-menurut-kabupaten-kota-di-sumatera-barat.html
- Badan Pusat Statistik. (n.d.). Jumlah Penduduk Menurut Kabupaten/Kota dan Jenis Kelamin di Provinsi Sumatera Barat. Badan Pusat Statistik Provinsi Sumatera Barat. Retrieved July 12, 2023, from https://sumbar.bps.go.id/indicator/12/32/1/jumlah-penduduk-menurut-kabupaten-kota-dan-jenis-kelamin-di-provinsi-sumatera-barat.html
- Asosiasi Penyelenggara Jasa Internet Indonesia. (2023, March 10). Survei APJII Pengguna Internet di Indonesia Tembus 215 Juta Orang. Asosiasi Penyelenggara Jasa Internet Indonesia. Retrieved July 9, 2023, from https://apjii.or.id/berita/d/survei-apjii-pengguna-internet-di-indonesia-tembus-215-juta-orang
- Adi, P. I. M., Wayan, E. N., Kerti, Y. N. N., & Gede, S. (2022, December). The Role of Consumer Satisfaction In Mediating The Effect Of Customer Experience And Brand Image On Repurchased Intention: A Study On Olx Autos Dealer Indonesia. Russian Journal of Agricultural and Socio-Economic Sciences, 12(132), 87-98. 10.18551/rjoas.2022-12.12
- Wijaya, A., Tj, H. W., & Wahyudi, S. (2022). The Effect of Car Sales E-Commerce Platform On New Car Buying Decisions Mediated By Digital Advertising Media and Youtube Media. Daengku: Journal of Humanities and Social Sciences Innovation, 2(5), 596–607. doi.org/10.35877/454RI.daengku1182
- Kim, M., & Lennon, S. J. (2008). The effects of visual and verbal information on attitudes and purchase intentions in Internet shopping. Psychology and Marketing, 25(2), 146-178. 10.1002/mar.20204
- Ghanadiof, O., Sanayei, A., & Emami, M. (2021, July). Effect of Customer Perception on Salesperson Owned Commitment in Customer-Salesperson Relationship. European Journal of Business and Management Research (EJBMR), 6(4), 137-142. 10.24018/ejbmr.2021.6.4.96
- Swan, J. E., & Nolan, J. J. (1985). Gaining Customer Trust: A Conceptual Guide for the Salesperson. Journal of Personal Selling & Sales Management, 5(2), 39-48. http://dx.doi.org/10.1080/08853134.1985.10754400
- Puska, A., Stojanovic, I., Sadic, S., & Becic, H. (2018). The Influence of Demographic Characteristics of Consumers on Decisions to Purchase Technical Products. Singidunum Journal of Applied Sciences, 12(2), 1-16. 10.5937/EJAE15-16576
- Adewale, A. G., Adeniran, A. J., & Oluyinka, S. A. (2019, January). The Effect of Personal Selling and Marketing on Firm Sales Growth (A Study of PZ And Dangote Nigeria PLC). Journal of Business Management (IJRDO), 5(1), 19-35.
- Ocon, J. A. C., & Alvarez, M. G. (2014). The Implication of Personal Selling Strategies in Motivation, Approaches and Good Grooming [The International Conference on Communication and Media 2014 (i-COME’14)]. In Procedia – Social and Behavioral Sciences (pp. 53-57). Elsevier Ltd. 10.1016/j.sbspro.2014.10.255