1.Determine the role of Hyundai’s 10-year, 100,000-mile warranty in its turnaround and how it relates to post purchase dissonance.
In 1998, Hyundai was at a crossroads in the U.S. market. After a decade of dwindling sales and nagging quality concerns, Hyundai needed to do something to turn their brand around. And one of their bold moves included a 10-year, 100,000 mile warranty (Hawkins & Mothersbaugh, 2011). With these changes, Hyundai experienced profitable results. Their sales started to jump and they tied with Honda for second place in the J.D. power Initial Quality Survey. The car company; Hyundai has been did very well for itself in 2011, even in the down falling economy. Hyundai sold 50,765 vehicles in December of 2011, which were
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Hyundai entered the car market by trying to offer the lowest prices for their vehicles, but now that they've established themselves within the market, they now offer slightly higher prices with much higher value. Hyundai started off by offering "America's best warranty," and now they are introducing Hyundai Assurance (Molitor, 2009). Hyundai states that if you buy a new vehicle now and lose your income within the next year, you can return the car to them. Hyundai is offering these things for still relatively low prices. The warranty shows that they believe their cars to be of very high quality, and the Hyundai assurance represents good customer service as they try to adapt to the changing needs of their target markets. Even though Hyundai isn't the cheapest car manufacturer, the things that they offer for their products make it a "good value" purchase. Hyundai realized that customers valued high quality and high service, but couldn't afford the more expensive cars, so they created a more reasonably-priced car that offers high value to consumers. Hyundai has created this "customer perceived value" by offering the best warranty in America, and also by becoming the first company to offer a return program for lost income (Molitor, 2009). After Hyundai introduced these things, many other car manufactures started offering similar deals. In addition, Hyundai builds goodwill in the commercial using words