The paper “ The Importance of Service Quality in the Luxury Car Market in Singapore“ is a well-turned variant of a research proposal on marketing. Service quality is a prerequisite for a successful business. Observably, competition in this modern era is stiff. Rival firms are doing what it takes to eliminate each other in the market. One of the ways the competitors are using to outdo each other is by improving the service quality. Ekinci & Dawes (2009) have defined service quality as the patterned process that is aimed at making sure that there is maximum customer satisfaction.
Marković & Raspor Janković (2013) as the tendency of a business to meet the psychological and emotional demands of the clients, on the other hand, has defined customer satisfaction. The importance of achieving customer satisfaction has been said by to bring about the formation of loyalty. Hyun Soon, Zhang, Dae Hyun, Chen, Henderson, Min & Haiyan (2014) attest that a satisfied customer has higher affinity to become loyal to the business. The loyalty formed is pertinent in improving sales and firms’ reputation.
Another importance of service quality is that it makes a firm to gain a competitive advantage. Acquiring and maintaining a competitive advantage (edge) is important because it enables a firm to deal with customer turnover, and increase the attention of the customers (Ekinci & Dawes, 2009). Therefore, being aware of the needs of the customers and achieving them has been important in ensuring that a firm has a future incentive to deal with competitors. The luxury car market in SingaporeThe luxury car market in Singapore is highly competitive. Price wars have stooped to be used as one of the competing strategies in the luxury car market in Singapore.
This is because the business involving luxury cars revolves around the high purchase (Lee & Lim, 2002). Those customers purchasing luxury cars in Singapore are perceived to have much money. Therefore, price wars can be irrelevant in gaining a competitive advantage. Therefore, the rival firms have adopted a new strategy to outdo each other. Service quality has become a widely used tool to gain competitive advantage (Dharmaraj & Sudhahar, 2010). Car dealers such as Mercedes, BMW, and other brands are using service quality as a tool to market their brand.
More people are increasingly becoming interested in purchasing luxury cars, not because of the prices given, but because of the service given by the provider. Brand wars are prevalent in the Singapore car market. For example, Mercedes inaugurated its S-Class model. On the other hand, Toyota introduced Lexus. For these brands to capture a significant market share, service quality is enhanced to ensure the projected sales of the brands are realized. These dealers are also fighting alongside repairing cars of their customers.
Rover, for instance, recorded high-profit margins in 2012 when it started repairing luxury cars of their clients (Kum, Bergkvist, Lee & Leong, 2012). This motivated other buyers at buying luxury cars from Ford. Warrants are also other competing tools in the luxury car market in Singapore. It is observed that car dealers such as Mercedes and Ford are looking for ways in which they will increase the warranty period. Therefore, customers will not fear to lose their money after their car broke down a short warranty period expires.
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