MARKET STUDY :: The Changing U.S. Auto Industry Series:
The Impact of Possible Model and Brand Terminations on Customer Loyalty
Many auto manufacturers are planning or considering the discontinuation of vehicle models or brands as a means to cut costs during these challenging times. How will these decisions affect customer loyalty?
Find out in "The Impact of Possible Model and Brand Terminations of Customer Loyalty."
Highlights from the market study include:
- Terminations affect loyalty: On average, customer loyalty drops by eight percentage points due to a vehicle termination.
- Lost loyalty leads to lost revenue: Our analysis shows that one manufacturer lost $14 million in revenue when it discontinued a vehicle.
- The impact can be mitigated: This report discusses some factors for automakers, dealerships and dealerships to consider.
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