Final Customer Purchasing from an Intermediary of the Product

Maintain Steps: Maintain steps include all activities required to keep the product in working order. These steps include the costs the customer incurs to diagnose and correct product problems.

Resources – Reduce resources required for the use of the product.

1. Money – Reduce the money the customer uses with the product.

Reduce the customer's spending on other products used with the product

No. SIC Year Note
1 5511 2004 A recent J.D. Power study found that less than half of non-luxury brand customers still use their dealers to service their vehicles four years after they buy their car. The defections to other service centers start after their warranties expire. Customers who bought extended warranties tended to visit their dealers more often and spent nearly $100 more in the last 12 months at their dealerships than those who didn't buy additional coverage. Non-luxury dealerships had 66% of their customers returning for service in the first year, 55% in the third and 47% in the fourth. Luxury customers tend to take advantage of the longer warranties, using the dealer for service longer than non-luxury cars.

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