MKT FPX 5416 Assessment 2 Rollin’ Auto Consumer Research Plan

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Capella University

MKT-FPX5416 Consumer Insights

Prof. Name

Date

Executive Summary

As Rollin’ Auto has entered the auto repair market, we have experienced significant growth in our business. However, to ensure that we are expanding in the right areas, it is necessary to develop a consumer research plan to better understand the new market we are competing in. To provide some background on Rollin’ Auto, we are a family-owned and operated mobile auto repair business. We launched our business in the fall of 2021 with two trucks that travel to our customers’ homes or workplaces to complete their auto service needs. Our mobile auto repair company offers services such as oil changes, inspections, brake replacements, windshield repairs, tire rotations, and other related services. Recently, we received funding from two investors due to the success of our business.

To demonstrate to our investors how we plan to grow our business, it is essential first to assess consumer reactions and perceptions of the auto repair industry. Following that, we will outline our research and sampling plans to ensure that we are effectively capturing our consumers’ views and addressing any concerns they may have about the auto repair industry. In this research plan, we will detail our approach to addressing common consumer perceptions and behaviors within the auto repair industry and propose strategies to improve consumer perception. We will utilize a non-probability sample to collect data that will support our reasoning.

Introduction and Background

The auto repair industry presents numerous challenges and benefits that concern consumers. We will examine these concerns, providing background information on each and exploring how others have addressed these perceptions. Since consumers have varied issues with the auto repair industry, we will focus on the top three concerns. According to USA Today, 13% of consumers seek better customer relations, 12% desire more honesty and trust, and the remaining consumers prioritize convenience and flexibility (USA Today, 124, 3). These three areas encompass various sub-issues, and we will explore the different layers within these primary concerns.

Customer relations are one of the most significant areas of concern, involving various aspects such as interaction, support, and customer complaints. Studies show that only 34% of consumers are consistently satisfied with their auto service provider (Upswell Marketing, 2/24/21). It is alarming to know that 66% of consumers are dissatisfied with their auto service provider. When consumers encounter a provider who does not treat them with respect or personal attention, they are less likely to continue using that service. Consumers want to feel valued and almost like part of the family when they rely on a mechanic to service one of their valuable possessions. The challenge is determining how to change this perception.

MKT FPX 5416 Assessment 2 Rollin’ Auto Consumer Research Plan

The second most common consumer complaint is related to honesty and trust, particularly regarding service costs and the necessity of repairs. Some consumers have had negative experiences with auto mechanics, such as being overcharged for services or being told that a part needed to be replaced when it was functioning correctly. According to AAA, 63% of consumers have had a negative experience in the past (AAA, 12/6/16). Such experiences make consumers wary of future interactions with auto repair mechanics, which is why this issue is crucial for our research. We want to ensure that consumers do not feel cheated and believe they are receiving fair pricing and quality service. According to Upswell, 78% of consumers equate reasonable prices with good service (Upswell Marketing, 2/24/21). We will later explore how we plan to address this issue in our research.

The final consumer concern in the auto repair industry is convenience and flexibility. Many consumers have struggled to find a convenient time for an appointment or to secure transportation while their car is being serviced. Scheduling a service appointment can be cumbersome, as it requires coordinating a time that works for the consumer. Depending on the service required, consumers must determine whether they need alternative transportation or how long they will need to wait in the shop. This inconvenience can lead to delays in vehicle maintenance, potentially causing more significant problems.

As you can see, there are three key challenges that we need to address for Rollin’ Auto: consumer relations, honesty and trust, and convenience and flexibility. These are the areas we plan to focus on in our research study.

Secondary Data and Information

Now that we have identified the top three consumer concerns within the auto repair industry, we can delve deeper into each issue and provide additional data and insights.

Let’s begin with customer relations. This encompasses anything related to customer interactions or communication. As shown in the chart below from AAA, 2 out of 3 U.S. drivers do not trust repair shops. Various factors contribute to this perception, but negative past experiences and other issues often influence consumer perceptions. According to an article in USA Today, 11% of consumers desired a cleaner shop and waiting area, better quality service, more advertising, knowledgeable staff, and faster service (USA Today, 124,3). The environment in which service is performed also impacts customer relations. Upswell Marketing noted that 52% of consumers prefer to get service at a local shop, while 35% prefer to go to a dealer or brand-specific shop (Upswell Marketing, 2/24/21). A significant number of consumers prefer local shops because they have established better relationships with their mechanics and have had positive experiences with them.

The above chart also provides insights into the second issue of honesty and trust within the auto repair industry. The data shows that 76% of consumers believe mechanics recommend unnecessary services, 73% believe they are overcharged, and 49% are concerned that the repair will not be done correctly (AAA, 12/6/16). These numbers are concerning. When we consider that 66% of consumers are dissatisfied with their auto mechanics, these statistics become more understandable. Furthermore, if one mechanic is dishonest and untrustworthy, it can create a negative stigma for the entire industry, making it difficult for businesses to succeed and maintain a good reputation.

MKT FPX 5416 Assessment 2 Rollin’ Auto Consumer Research Plan

The final consumer concern is convenience and flexibility. In today’s busy world, finding time to be without your car, even for an hour, can be challenging. Consumers are so time-constrained that taking an hour or two out of their day to wait at a mechanic’s shop is not desirable. Consequently, some consumers delay vehicle maintenance because they lack the time or the time they have is unavailable to the mechanic. As shown in the chart below from Automotive Research.com, 33% of consumers delayed care maintenance because they could not find a convenient time. Additionally, 2.7% of consumers are worried that the repairs take too long or are concerned about being without their vehicle. This delay in maintenance can lead to faster deterioration of the vehicle and higher repair costs if parts break more frequently. It also ties back to the high cost of repairs and the distrust consumers may have in mechanics because they do not believe delaying maintenance is a significant issue.

With an understanding of the data behind these three major problems in the automotive repair industry, how does Rollin’ Auto plan to address these issues and determine what its consumers want? Let’s find out.

Research Plan

Rollin’ Auto plans to conduct a quantitative research strategy. We will survey multiple consumer groups to gather opinions on various concerns within the automotive industry. The following questions will be asked:

1. How would you prefer to interact with Rollin’ Auto?
   a. In person
   b. Text messaging
   c. Phone call
   d. Smartphone app
2. How important is it to know costs upfront?
   a. Very important
   b. Not important
   c. Neither important nor unimportant
3. Would you rather have someone come to your home or your place of business?
4. Do you prefer an invoice with brief details of services performed or a more detailed report of all services and findings?
5. Would you like to have automatic service scheduled to coincide with your car’s maintenance schedule, or would you prefer to schedule your appointments?
6. Is being able to choose which mechanic services your vehicle important to you?
7. What special offers would encourage you to remain a loyal customer? (You may select more than one.)
   a. Free tire rotation with oil change
   b. Loyalty reward points system
   c. Business discount
   d. Annual membership for discounts on services
   e. Referral discount
8. How important is advertising to you when it comes to auto repair shops?
   a. Very important
   b. Not important
   c. Neither important nor unimportant
9. If an app was available for Rollin’ Auto that allowed you to view your vehicle’s service history, payments, upcoming appointments, and costs, how likely would you be to use it?
   a. Very likely
   b. Somewhat likely
   c. Unlikely
10. Do you prefer the convenience of a mobile repair shop, or do you prefer visiting a brick-and-mortar shop?

These questions address significant consumer concerns within the auto repair industry. The responses will help us develop the best features and options for our consumers, ensuring a positive and satisfying relationship between Rollin’ Auto and its customers.

Sampling and Data Collection

To answer the ten questions above, we will use a non-probability sample to select study respondents in a non-random fashion based on our judgments (Schiffman, pg. 401). We will use the quota sampling model within the non-probability sample to interview a prescribed number of people in different categories. The following consumer groups will be our target respondents, with six participants selected from each group:

1. Adults 55+
2. Adults 40-54 years of age
3. Adults 26-39 years of age
4. Adults 18-25 years of age
5. Business owners with more than 500 employees
6. Families with more than one child
7. Consumers on a budget

We will select six respondents from each group to answer the ten questions outlined above. To obtain these 42 respondents, we will visit various business locations, including auto repair stores, car dealerships, car shows, and our current customers. Respondents will

be asked to provide their age group and whether they belong to one of the other six groups. They will be surveyed in person and asked to complete the questions independently or with minimal assistance. To ensure their comfort and willingness to participate, we will explain that this is a private survey and that all information will be kept confidential.

Analysis

Upon receiving the completed surveys, we will create a matrix outlining the most important factors for each consumer group. Since we plan to use a non-probability sample, we will not use statistical tools to analyze the data. Instead, we will carefully review each response and organize the data into a format that outlines the most important needs of each consumer group. We will also examine whether there is a high correlation between any two or more factors, which could indicate a need to combine efforts in addressing certain consumer concerns.

We will organize the data by creating a table listing the ten questions and the possible responses. Next, we will total the responses for each category across all consumer groups. The table below provides an example of what this might look like:

This table is a hypothetical example of how we will organize the data collected from the surveys. This process will help us identify trends and the most important factors for each consumer group.

Conclusion

The research conducted will provide Rollin’ Auto with invaluable insights into the most critical consumer concerns in the auto repair industry. By addressing issues related to customer relations, honesty, and trust, as well as convenience and flexibility, Rollin’ Auto can develop strategies to enhance its services and improve consumer satisfaction. The survey results will guide the company’s decisions on how to better serve its customers and grow its business, ensuring long-term success in the competitive auto repair market.

References

AAA survey: Drivers leery of auto repair shops. Tire Business. (2016, December 6). Retrieved February 20, 2022, from https://www.tirebusiness.com/article/20161201/NEWS/161209989/aaa-survey-drivers-leery-of-auto-repair-shops

Consumers prefer neighborhood shops. (1996, April). USA Today, 124, 3. Retrieved from http://library.capella.edu/login?qurl=https%3A%2F%2Fwww.proquest.com%2Fmagazines%2Fconsumers-prefer-neighborhood-shops%2Fdocview%2F214517056%2Fse-2%3Faccountid%3D27965

Monticello, M. (2018, December 27). Can you trust your car repair shop? Consumer Reports. Retrieved February 20, 2022, from https://www.consumerreports.org/car-repair-shops/can-you-trust-your-car-repair-shop/

Report: Why customers delay routine maintenance. Ratchet+Wrench. (2017, September 11). Retrieved February 20, 2022, from https://www.ratchetandwrench.com/articles/5181-report-why-customers-delay-routine-maintenance

Schiffman, L. G., & Wisenblit, J. L. (2019). Consumer behavior (12th ed.). New York, NY: Pearson.

United States auto mechanics market: Growing disposable income will increase consumer demand for industry services: Auto mechanics in the US – industry market research report (2014). Chatham: Newstex. Retrieved from http://library.capella.edu/login?qurl=https%3A%2F%2Fwww.proquest.com%2Fblogs-podcasts-websites%2Funited-states-auto-mechanics-market-growing%2Fdocview%2F1634881645%2Fse-2%3Faccountid%3D27965

UpSwell Marketing. (2021, February 24). The survey finds that most Americans are not completely satisfied with their current auto service provider. Survey finds that most Americans are not completely satisfied with their current auto service provider. Retrieved February 20, 2022, from https://www.prnewswire.com/news-releases/survey-finds-that-most-americans-are-not-completely-satisfied-with-their-current-auto-service-provider-301234491.html

MKT FPX 5416 Assessment 2 Rollin’ Auto Consumer Research Plan

Wysocky, K. (2020). Customers can cash in on the loyalty program: Retailers’ efforts keep returning consumers for service and new vehicles. Automotive News, 94(6919), 15. Retrieved from http://library.capella.edu/login?qurl=https%3A%2F%2Fwww.proquest.com%2Ftrade-journals%2Fcustomers-can-cash-o

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