1. Define loyalty as you understand it from the text. Does Paccar with its Kenworth and Peterbilt trucks create loyalty? Explain.
In this context, loyalty means making customers to prefer company’s products as a result of a good perception concerning the product’s right features, image or even high level of equability at the right price. As a result, Paccar with its Kenworth and peterbilt trucks creates loyalty, (Jacoby & Chestnut, 1978). This is based on the fact that, they are considered as having premium qualities, which has made Freight companies to love them. There quality assures reliability as well as trade in values, hence considered as being the leader in truck industry. It is also considered as being very comfortable. The products pick the leading role in truck brands, as it does not benchmark against other trucks. They are considered as being in their own class.
2. What type of buying process (straight rebuy, modified rebuy, new task) is the decision to buy Kenworth for Herbert Schmidt? Would the buying process be the same for all carriers? Explain.
Straight buying process is the decision to buy Kenworth for Herbert Schimidt. However, the process will not be same for all carriers as they may require some modifications concerning the quality and contents. They might not be having an approved list to order from. This modifications will occur because, the buyer had not had considerable experience, or lack of the so-called automatic response behaviors.
3. Using all the possible sources of information, including the case, the internet, OTR truck dealers, develop what you think the decision-making unit looks like for a truck purchase. Does its size depend on the size of the company or other factors? Explain.
The decision-making unit for a truck purchase dealer looks like the one detailed in figure 1 bellow. In this model, the initiator will suggest the issue of purchasing a truck, and then influencers will try to assess the results with their own opinions. Deciders on their part will have the final decision concerning the suggestion, who will them hand over the contracting responsibility to buyers. End users on their part will use the purchased truck, while the gatekeepers will be controlling the information flow.
This model is better as it covers a very broad spectrum, starting with the consumer decision making process all the way to different roles as well as groups fin the truck purchase enterprise. What ought to be noticed is that, its size does not depend on the size of the company but other factors. This is because, it does not matter the companies size, as the model will never change but just remain the same.
What really matters are just other factors like the availability of time, and the number of assets engaged in the decision making process. It depends on sharp brain honed b6y slots of experiences, a very deep knowledge of ones’ market, along with the underworld intelligence network of pimps as well as hookers; in this case, it includes clients and colleagues. In addition, all the sex roles will influence fin one way or the other.
4. Using all possible sources of information, including the case, the internet, OTR truck dealers, complete the following information in Table A. What implications does this have for Paccar and other truck companies in terms of their marketing efforts?
Functional Role in Organization
Evaluative Criteria Used in ________________________________________________
Purchase Decision _________ _____________ _____________ __________
1. Production: truck suppliers have to be finalized with corporate blanket purchase order to their suppliers. It reflects “negotiations that are grounded on estimated usage for the term of the commitment but is not authorization to build or ship. Actual order quantities are documented with a plant release against it”, (paccar.com, 2010).
2. IT/MRO/Travel: they will be responsible for negotiations as well as management for single contracts as well as other agreements.
3. Aftermarket: it means they are responsible for negotiating costs as well as management of Paccar parts in different countries.
4. Tooling: the suppliers are to maintain the tool in working conditions with the aim of producing quality parts
5. Terms and Conditions: the company suppliers are to abide to terms and conditions that are contained on the purchase orders, except stated otherwise by the company.
5. Explain the role of reference groups for Paccar and its trucks.
The role of reference groups for Paccar and its trucks is very important. The groups input are much necessary for the Paccar and its trucks to achieve its objectives. The groups will encourage discussions, debates, as well as considerations of a very broad variety of views and opinions. The main function of Reference groups guides the organizations’ process towards a solution that best meets community and customer expectation needs.
Essentially, the groups will “provide inputs on all existing and potential issues that affect the community relating to provisions of truck services; helps in the identification of suitable options for the management of these issues; evaluation and comparing scenarios built from mixes of options on the basis of their social, environmental, and economic impacts; and review the evaluation and comparison of scenarios in the organization strategy,”.
6. Describe the differences between a company that owned their products and that that lease. Relate these to internal and external influences shown in Figure 19-1.
The difference between companies that own their products and those that leases is that, a company that leases acquire assets with minimum initial expenditures so they rarely require down payments hence can acquire products without affecting one’s cash flows. In addition, lease payments can be deducted as business expenditures on tax returns hence reducing net costs of the company’s lease. Another thing is that, companies addressing the problem of obsolescence, in the process of leasing items that their technology can be outdated after a short period of time like computers, the problem of obsolescence is then passed on to the company that owns the equipment.
On the other hand, company that owns the products gains the ownership of the equipment immediately after buying it. This is much importantly particularly when the product has long useful life and there are no chances of being outdated. Another issue concerns tax incentives when considering purchase business equipments, as they will be allowed to deduct the costs of newly bought assets in the first year. In general, the company that leases the product is affected by external influences as well as internal influences; whereas the company that owns the product are experience only internal influences.
7. How does Paccar’s hybrid offering fit into its current brand image?
Paccar’s hybrid offering fits into its current brand image by ensuring that other companies’ brand images follow them, hence recognizing it as leaders, not benchmarking on any other brands. It increases the company’s reputations, where its trucks will be considered as being a leader in quality. It also increases the perception that it is leading in technology; it will increase its customers’ perception that Paccar is a technology company. It introduces technological expertise in trucking industry in a more accurate manner, as it will be regarded as a company that recognize customers expenses in fuels introduce fuel efficient vehicles and environmental friendly vehicles.