1. MERCEDES BENZ: AN OBSERVABLE ANALYSIS OF ORGANIZATIONAL PROGRESS
Amy K. Loukus & Mark R. Dixon Southern Illinois University, Carbondale;
Oliver Ashtiani, Foley-Sweitzer Mercedes Benz

2. U.S. NEWS & WORLD REPORT AUTOMOTIVE RANKINGS AND REVIEWS, MAY 2010
Luxury Large Car 2008 & 2009
# Mercedes Benz E-Class
MSRP $48,600-$58,800
# Mercedes Benz E-Class Coupe
MSRP $48,050 – $54,650
Upscale Midsize Cars
# Mercedes Benz C-Class
MSRP $33,600 – $39,750
Super Luxury Cars
# Mercedes Benz S-Class
MSRP $87,950-$
Super Luxury Sports Cars
# Mercedes Benz SL
MSRP $102,600 - $198,750
# Mercedes Benz CL
MSRP $107,482-$149,414

3. Department of Transportation (2009)
254.4 million registered passenger vehicles in the United States
Most cars owned belong to the “Big 3”
Ford, General Motors, Chrysler
Non-luxury models, low Manufacturer Suggested Retail Price (MSRP)
Mercedes Benz International (
Awards Received
Motor Trend (2006)
Import car of the year: Mercedes Benz E Class
U.S. News and World Report (May 2010)
Ranked in the top 10 automotive ranking and reviews in various categories
One Mercedes Benz vehicle sale may double or triple selling price of a “Big 3” vehicle purchase
MSRP Range $33,000-$198,000
Implications for level of excellence expected as a Mercedes Benz customer
Mission statement: “Give our best to customers who expect the best.”

4. HOW DOES MERCEDES BENZ ENSURE THE MISSION IS MET?
Measures of Success
Customer checklists following sales completion
Post-sale incentive bonus reliant on customer return and full satisfaction
Post-visit customer satisfaction surveys
Generic evaluation survey across all dealerships
General Sales
Service Department
Why measure satisfaction?
Increased future success
Supports the mission of the business

5. METHODS Setting/Participants Materials
Local Mercedes Benz dealership in Southern Illinois
Materials
Generic Mercedes Benz surveys
Descriptive functional assessment survey
To measure importance of amenities amongst customers
Employees survey
Measure of expectation toward customer satisfaction factors
Comments Suggestions from customers/employees

6. PROBLEM 1: LOW SATISFACTION SCORES
Analysis:
2009 reports on Sales and Service scores analyzed for deficits and success
Dealership scores below Mercedes Benz standards on customer satisfaction surveys
Average scores lower than other facilities
Scores publicly posted on dealer progress tracking website for comparison

7. MERCEDES BENZ SALES SURVEY
How satisfied were you with your Sales Consultant's courtesy in serving you?
How satisfied were you with your Sales Consultant's honesty and integrity?
How satisfied were you with your Sales Consultant's help in determining your needs?
How satisfied were you with your Sales Consultant's ability to answer your questions?
How satisfied were you with how the Sales Consultant utilized your time at the dealership?
How satisfied were you with the explanation of your lease payment or purchase price?
Was your new vehicle clean and free of marks upon delivery?
How satisfied were you with the amount of time to complete the sales transaction?
How satisfied were you with the amount of time required on the day of delivery?
How satisfied were you with the explanation of the owner's manual, warranty, service policies and new features of your vehicle?
Were you offered a test drive?
How satisfied were you with the comfort and cleanliness of our facility (dealership)?
Were you contacted by your salesperson or a representative from our dealership after delivery to determine if everything was to your satisfaction?

8. SALES RESULTS FOR 2009 (#7, #11, & #13 OMITTED DUE TO Y/N RESPONSE)

9. RESULTS: HIGH LEVELS OF SATISFACTION POST-SALE
Causal variables
Successful employee training?
“Steps to the sale” procedural consistency
Not the case. Employees rarely follow protocol/cannot recite steps
Employee motivation high due to possible commission earnings?
Never directly assessed so inconclusive as an explanation
Floor effect?
All responses cluster just below perfect for unknown reasons
Future punitive consequences for poor ratings on the very first experience
Personal responses defending high-cost purchase?

10. COMMENTS POST-SALE General Customer happiness during/post purchase
“Very satisfied with my car buying experience. [My salesperson] was great and continues to help answer all my questions.”
“We are most pleased with our new E350 and our experience with your staff and dealership.”
Conclusion:
Great results on generic survey, however external factors may limit viable experimental procedure

11. SERVICE DEPT SURVEY
1. Please rate the dealership on the ease of scheduling service visit 2. Please rate the dealership on their flexibility to accommodate your schedule 3. Please rate the dealership on the timeliness of drop-off process (time waiting to be greeted, time conferring with advisor, time to hand over keys and complete any initial paperwork) 4. Please rate your service advisor on how courteous/friendly they were 5. Please rate the responsiveness of the service advisor 6. Please rate the service advisor on the thoroughness of explanations 7. Please rate the dealership on the ease of driving in/out of facility 8. Please rate the dealership on the convenience of parking 9. Please rate the cleanliness of dealership 10. Please rate the comfort of waiting area (includes seating, amenities, refreshments) 11. Please rate the dealership on the timeliness of the pick-up process (waiting to be attended to, completing the paperwork, and picking up vehicle) 12. Please rate the dealership on fairness of charges 13. Please rate the helpfulness of the dealership staff at pick-up 14. Please rate the dealership on the total time required to complete service on your vehicle 15. Please rate the dealership on the thoroughness of maintenance/repair work performed 16. Please rate the condition of vehicle on return (clean, undamaged, controls and positions unchanged) 17. Was all of the work completed right the first time?

12. SERVICE RESULTS FOR 2009 (MERCEDES EXPECTS 7+. LOWEST 3 IDENTIFIED)

13. DISCUSSION OF RESULTS
Lower scores result when customers return for service/maintenance
Once-happy customers no longer fully satisfied
Areas requiring improvement (*lowest scores)
Q10. Please rate the comfort of waiting area (includes seating, amenities, refreshments)
*Q12. Please rate the dealership on fairness of charges
Q14. Please rate the dealership on the total time required to complete service on your vehicle

14. POTENTIAL AREAS IDENTIFIED FOR IMPROVEMENT
Fairness of Charges
Comparison charts of competitor costs
Pre-sale discussion about cost/frequency of maintenance
every 15,000 miles: visit price surprising to new Mercedes customers
Influential consumer factors
Excitement influences retaining capacity for information during sale
Customers do not hear a word you say
Increased cost per visit, yet less-frequent visits
Here, now, money spent more salient, more influential

15. POTENTIAL IMPROVEMENTS CONTINUED
Facility Appearance/Convenience
Clean, aesthetically pleasing facility
Identified by customers in written recommendations
Faster computer network to resolve low ratings on sales/service time to completion
Identified by employees as inhibitor to performance
Employees and current owner assumed amenities make the difference
Question: How might amenity selection impact ratings?

16. PROBLEM 2: DETERMINING SPECIFICS
What about the visit was not satisfying/amenity impact on consumer ratings
Current generic surveys do not address dealer-specific issues
No formal assessment of problem before attempts to solve
General assumption: We should know what our customers want
Proposed Solution:
Behavior Analytic, descriptive functional approach
Get to know what makes our customers happy by simply asking them (in a controlled fashion, of course)
Identify maintaining variables to high satisfaction ratings
Base intervention on assessment

17. FUNCTIONAL ANALYSIS (FA)
Mase, Lalli, Lalli (1991)
Functional Assessment: methods used to identify variables maintaining a behavior.
Iwata, Dorsey, Slifer, Bauman, & Richman (1982)
Developed the FA in behavior analysis
Used in clinical practice
Experimental evaluation of maintaining variables
First used with problem behavior
Austin, Carr, & Agnew (1999)
Identified need for employee functional assessment in OBM
Maintaining variables for employee performance
Typical populations—again, to aide intervention selection

18. PROCEDURE: PART 1 Function-based satisfaction survey
Each question addresses one of 4 possible functions
Distributed through survey-building website
Distribute link to survey via to Mercedes Benz service customers following visit to the facility
Collect and analyze results for potential trends
Suggest facility improvements based on resulting data

19. SPECIAL SURVEY DESIGN Assumption: All behavior has a function
Even customer satisfaction rating behavior while waiting
Under what conditions is a consumer “happy”?
When provided with attention from employees?
When allowed to escape the task?
When offered tangible items while waiting?
When offered a calm, relaxing environment (sensory)?
20 Questions
5 questions each to assess importance of amenities according to function

20. FUNCTION-BASED SURVEY
Instructions:
Rate the following items on a scale from 1-5
(1 = Not important…5 = Very Important)
Part A: Rating scale of amenities
Part B: Top 5 Ranking of importance across 1-20
Not ALL of the amenities may be feasible to offer
Part C: Comments, concerns, recommendations
Obtaining feedback through direct inquiry of consumer attitude/opinion as behavior is occurring or shortly following behavior

21. DEMOGRAPHICS 11 Respondents Average # visits during 20093
Vehicle Models
E350
E550
C230
C300
CLS550
CLK350
S320etc.

22. FUNCTION-BASED SURVEY
Functions addressed by color:
ATTENTION ESCAPE TANGIBLE SENSORY
1. Free High-speed Wireless Internet Connection (WIFI)
2. Complimentary Snacks (doughnuts, candies) in customer lounge
3. Magazines/books to read in customer lounge
4. Activities for children to engage in
5. Comparison chart of new Mercedes Benz vehicle models and options
6. Comparison chart of new vehicle financing/lease options available at Foley-Sweitzer Mercedes
7. Notification from service staff on status of your visit (time until completion updates)
8. New furniture in customer lounge
9. A variety of television channels to choose from during service wait time
10. A clean, comfortable, well-lit facility in which to wait while your Mercedes receives service
11. A quiet, private work area for use while you wait for your Mercedes to be serviced
12. A list of costs accrued in owning a Mercedes compared to that of other luxury vehicles
13. A display of upcoming sales events or future opportunities to browse new Mercedes inventory and socialize with other Mercedes Benz owners
14. Refer-a-friend programming in which you earn rewards based on customer referrals
15. At home, vehicle pick up service by a Mercedes Benz professional
16. A brief presentation of new Mercedes Benz model lines by a certified Mercedes Benz representative
17. Free test drive of new Mercedes Benz models assisted by a Mercedes Benz sales person
18. Soft, relaxing music in the customer lounge
19. Personalized tour of the Foley-Sweitzer service facility and sales floors by a knowledgeable employee
20. Convenient shuttle for transportation to near-by shopping facilities while your vehicle is serviced

23. ATTENTION (POSITIVE SOCIAL REINFORCEMENT)
#7. Notification from service staff on status of your visit (time until completion updates) #13. A display of upcoming sales events or future opportunities to browse new Mercedes inventory and socialize with other Mercedes Benz owners #16. A brief presentation of new Mercedes Benz model lines by a certified Mercedes Benz representative #17. Free test drive of new Mercedes Benz models assisted by a Mercedes Benz sales person #19. Personalized tour of the Foley-Sweitzer service facility and sales floors by a knowledgeable employee

24. ESCAPE (SOCIAL NEGATIVE REINFORCEMENT)
#1. Free High-speed Wireless Internet Connection (WIFI) #4. Activities for children to engage in #11. A quiet, private work area for use while you wait for your Mercedes to be serviced #15. At home, vehicle pick up service by a Mercedes Benz professional #20. Convenient shuttle for transportation to near-by shopping facilities while your vehicle is serviced

25. TANGIBLE
#2. Complimentary Snacks (doughnuts, candies) in customer lounge #5. Comparison chart of new Mercedes Benz vehicle models and options
#6. Comparison chart of new vehicle financing/lease options available at Foley-Sweitzer Mercedes #12. A list of costs accrued in owning a Mercedes compared to that of other luxury vehicles
#14. Refer-a-friend programming in which you earn rewards based on customer referrals

26. SENSORY (NON-SOCIAL REINFORCEMENT)
#3. Magazines/books to read in customer lounge #8. New furniture in customer lounge
#9. A variety of television channels to choose from during service wait time
#10. A clean, comfortable, well-lit facility in which to wait while your Mercedes receives service #18. Soft, relaxing music in the customer lounge

27. A CLOSER LOOK…

28. OBSERVABLE TRENDS? Escape rated higher than tangible function items
Exception: Participant 9

29. BENEFITS OF SURVEY Company benefits Limitations?
Site-specific insight to current customer satisfaction
Meaningful changes and improvements, albeit simple in design
Addresses specific amenities to determine which are most desirable
Limitations?
Not scientifically proven as reliable, yet a good start for this facility
Limited number of customer respondents

30. PART 2: SMASHING THE ASSUMPTION…HOW WELL DO WE KNOW OUR CUSTOMERS?
Employees instructions:
Rate how you think a Mercedes Benz customer would rate the following items on a scale from 1-5
(1 = Not important…5 = Very Important)
Same survey as part one
Respondent Demographics:
N = 9 (Sales, parts, office and service)
Average years in automotive sector: 16.5
Average years employed at dealership: 7.4
Results?

32. DISCUSSION OF RESULTS
Employees rated most of the items on the questionnaire as highly important to overall customer satisfaction
Mercedes customers find many of the items not important what so ever, yet they are offered over others
Currently offered coffee during wait times assuming it will make customers feel at home
How can this help?
Helps to determine the meaningful amenities for customers
Saves time and money spent on amenities that do not have bearing on satisfaction
Where do customer and employee ratings match?

34. IMPLICATIONS Future amenities may target escape function
Employees and customers both rated amenities addressing this function to be highly important
Tangible items such as snacks/beverages while waiting may have minimal impact on customer satisfaction ratings post-service visit
Customer behavior subject for assessment of function to identify what satisfies a customer

35. SUGGESTIONS/COMMENTS/CONCERNS
Customer
Employee
Stress importance of rental car & private work office
ALL respondents rated overall satisfaction with the business at a 5
ALL would recommended Foley- Sweitzer Motors to a friend
Office space for customers away from TV/Children’s area
Free car wash
Quarterly open- houses
Efficient computer network for faster service to customers

36. STEPS TO IMPROVEMENT: RESULTING CHANGES TO DATE
Service
Sales
Free WIFI internet
Customer lounge re- vamp
New chairs, re-painted walls, enhanced TV
“Menu” of service components during pricey visits
Rental service option provided by local rental facility
In-depth discussion on customer pricing to be expected
Revised steps-to-the- sale for consistency across sales persons
Website overhaul
Foley-Sweitzer specific, not generic Mbusa
Posted inventory/customer inquiry feature

37. IN SUMMARY
Current generic methods of evaluation allow for identifying potential areas of deficit
But lack ability to determine specific intervention
Function-based survey takes direct approach to solving customer satisfaction issues
Most often, the best methods in which to base decisions of improvement lay with the customers and employees

38. WHAT NEXT? Administer same survey to luxury and non-luxury car owners
Identify trends across owner status
Find common-ground between luxury and non-luxury vehicles
Replication leads to increased reliability!
Replication to begin at local Ford dealership for comparison
Base improvements on survey results
Measure changes on Mercedes-specific surveys to assess effect
Modify selectively to test and observe for effect

39. Thank You!
Questions?
Contact information
Amy K. Loukus
Southern Illinois University, Carbondale
Rehabilitation Department—Rehn Hall
Behavior Analysis & Therapy
Carbondale, IL