Hyundai Essay

841 Words4 Pages
Assignment 5: Case 4-5 “Hyundai’s Turnaround” Submitted by: Chivonne Casey Strayer University Instructor: Dr. Kelly Brunning Course: MKT 510- Consumer Behavior March 18th 2013 Abstract Hyundai is making an impact in America. They maybe a Korean company, but over half the cars they sell are made here in the U.S. Hyundai has a technologically sophisticated manufacturing facility in Montgomery, Alabama, engineering facilities in Michigan, along with design, research, and testing grounds in California (, 2013). In this paper I will discuss how Hyundai made a turnaround through a new and improved warranty program and its relation to post purchase dissonance. Consumers mixed perceptions about the quality of Hyundai and the pros and cons of Hyundai are branding strategy. 1. Determine the role of Hyundai’s 10-year, 100,000-mile warranty in its turnaround and how it relates to postpurchase dissonance. Hyundai was at a crossroads in the U.S. Market. After years of low sales and nagging quality concerns Hyundai went back to the drawing board to turn their brand around. They took bold moves such as the 10-year, 100,000 mile warranty, quality improvements, product reconfiguration, and “Buy-in” from their dealer, which is a critical customer link (Hawkins, Mothersbaugh, Best, 2010). Hyundai became the first auto manufacturer to offer a 10-year, 100,000 mile warranty. By offering one of the first 100,000 mile warranties, Hyundai was able to differentiate their brand from its competitors (Gunelius, 2011). Many of those competitors attempted to copy Hyundai warranty, but most couldn’t part with their lucrative extended warranty products. It was the perfect way for the company to prove it means what it says (Gunelius, 2011). A common consumer reaction after making a difficult, relatively permanent purchase decision with doubt or anxiety is
Open Document