2. In order to continue to grow, Subaru must foster and build customer loyalty.

Define the management-decision problem.

Subaru of America (www.subaru.com) is the automobile division of Fuji Heavy Industries (FHI). Subaru has been operating in the United States since 1968, when it began selling the 360 Minicar. Headquartered in Cherry Hill, New Jersey, the company serves nearly 600 dealers nationwide. Subaru has offered many different cars over the years, but as of 2011 it sold five different brands in the United States.
These brands each have a variety of different models. The five brands are Tribeca, Outback, Forester, Legacy, and Impreza. One of the unique things about Subaru is that 100 percent of its models come with all-wheel drive.
Subaru’s strategy is apparent in one of its key players, Joe Barstys. Joe has been with Subaru for more than 20 years, and he spends his time worrying about customer satisfaction. Joe and people like him are the backbone of Subaru. These people help Subaru focus on its customers and their wants and needs by conducting marketing research. Joe has incorporated the use of customer surveys into his practice, and for this he has gained the title of “Mr. Survey.” Joe’s goal is to develop a customer satisfaction level that will help build a certain level of loyalty in Subaru’s customers. This loyalty is extremely important in the car business, because it has historically been much lower than in other industries. Marketing research has shown that although approximately 90 percent of customers are pleased with their automobile purchase, only 40 percent are loyal enough to buy the same brand again.