Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jessie had just taken his second test drive in the new three quarter - ton pickup truck he was considering purchasing. The sales associate had

Jessie had just taken his second test drive in the new three quarter-ton pickup truck he was considering purchasing. The sales associate had been friendly and welcoming, warmly introducing Jessie to other managers at the dealership, offering free soft drinks, curb service with two vehicles he had test-driven, and assurances that the salesperson was "working for Jessie" and wanted to "earn Jessie's business." The salesperson asked Jessie about his personal life and baited him with "Truck Month," "special deals," and "incentives for a short time only." The salesperson had figured out Jessie's payment schedule for him, an amazingly low payment per month. Then jessie said, 'T have to be somewhere in 20 minutes, but I might come back tomorrow-when do you open in the morning?" The next day, Jessie returned to the dealer with estimates of his trade-in value from three used-car websites, a loan preapproval from his credit union, and a summary of the dealership's actual cost of the truck he was interested in from another website. He greeted the sales associate and made an offer for the truck. "We just can't do that, jess," was the response. "That's below what we have to pay for the truck." "Well, first, you have added charged items that aren't even done yet, like the sprayed-in bed liner for $670 that I can have done for $230 from the same place you guys have it done. So I deducted that, and the special sealant extra charges that are included if a vehicle is painted, and all of them are (painted)... Here are some other items that are similar, and they come to $1,945. I deducted half of your destination charge, and then I deducted half of your holdback to arrive at this number." The shocked sales associate took the information to her manager, who returned with another two managers to try to convince Jessie that his offer was not possible. The hard sell continued into a discussion of Jessie's trade-in, and finally, Jessie told them he might find a deal at another dealer or even with a different truck brand and that if they were interested in trying to meet his offer, they should e-mail him. And then he left. The next day, Jessie received an e-mail from the sales manager, saying they had agreed to his offer. When Jessie arrived, the truck had been cleaned, had a large Sold sign in the window, and was parked at the front door. The manager had agreed to Jessie's offer on the new truck but had priced his trade-in at $8,000 less than the trade-in value Jessie had found online. After another 30 minutes of hard-sell tactics, Jessie left the dealership for the third time. That afternoon, the used-car manager called Jessie to talk him down from his expected trade-in value. That evening, the sales manager called Jessie to say that he could come within $450 of Jessie's offer and that if Jessie would come back to the dealership, the deal would be made. Jessie agreed and returned to the dealership the next day.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management Concepts

Authors: Frank Rothaermel

2nd edition

77645065, 1259384071, 9780077645069, 978-1259384073

More Books

Students also viewed these General Management questions

Question

Explain the characteristics of a good system of control

Answered: 1 week ago

Question

State the importance of control

Answered: 1 week ago

Question

What are the functions of top management?

Answered: 1 week ago

Question

Bring out the limitations of planning.

Answered: 1 week ago