Express Auto, an automobile mega-dealership with more than 600 employees that represents 22 brands, has just received a very discouraging set of survey results. Customer satisfaction scores have fallen for the ninth straight quarter. Customer complaints include:

• It was hard to get prompt feedback from mechanics by phone.
• Salespeople often did not return phone calls.
• The finance people seemed “pushy.”
• New cars were often not properly cleaned or had minor items that nee
   ded immediate repair or adjustment.
• Cars often had to be returned to have repair work redone.

Table 12-3 describes Express Auto’s current compensation system. Select one of the five teams in column one (Salesforce, Finance office, Detailing, Mechanics, Receptionists/phone service personnel). Analyze the compensation package for the team of your choice and address the following questions. When you answer the questions, you may also mention other Express Auto Teams.

1. In what ways might your team’s compensation plan contribute to the customer service problems?
2. What recommendations would you make to improve the compensation system in a way that would likely improve customer satisfaction?

Transcribed Image Text:

TABLE 12-3 Express Auto Compensation System Express Auto Team Responsibility of Team Current Compensation Method 1. Sales force Very small salary (minimum wage) with commissions. Commission rate increases with every 20 cars sold Persuade buyer to purchase a car. per month. 2. Finance offīce Help close the sale; persuade customer to use company finance plan. Salary, plus bonus for each $10,000 financed with the company. 3. Detailing Inspect cars delivered from factory, clean, and make minor adjustments. Piecework paid on the number of cars detailed per day. 4. Mechanics Provide factory warranty service, maintenance, and repair. Small hourly wage, plus bonus based on (1) number of cars completed per day and (2) finishing each car faster than the standard estimated time to repair. Minimum wage. 5. Receptionists/phone service personnel Primary liaison between customer and sales force, finance, and mechanics. TABLE 12-3 Express Auto Compensation System Express Auto Team Responsibility of Team Current Compensation Method 1. Sales force Very small salary (minimum wage) with commissions. Commission rate increases with every 20 cars sold Persuade buyer to purchase a car. per month. 2. Finance offīce Help close the sale; persuade customer to use company finance plan. Salary, plus bonus for each $10,000 financed with the company. 3. Detailing Inspect cars delivered from factory, clean, and make minor adjustments. Piecework paid on the number of cars detailed per day. 4. Mechanics Provide factory warranty service, maintenance, and repair. Small hourly wage, plus bonus based on (1) number of cars completed per day and (2) finishing each car faster than the standard estimated time to repair. Minimum wage. 5. Receptionists/phone service personnel Primary liaison between customer and sales force, finance, and mechanics.

Answer rating: 100% (QA)

1 Sales force the fee is almost based on interest The seller has no reason to help buyers who think ... View the full answer