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Assignment 5: Case 4-5 “Hyundai’s Turnaround”

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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 a 13 percent total sales increase and 18 percent retail sales increase compared with the same period two years ago. For the year, Hyundai sales were up 20 percent versus 2010 in total. Sales to retail customers were up 29 percent (Yamada-Hanff, 2012). It was reported that last year Hyundai’s year total sales were about 538,228 vehicles. In 2011, Hyundai has already beat 2010 year’s mark with a recorded 545,316 vehicles sold at the marking point in just October. A lot of this huge increase in sales is due to some of their new models that have been released, because of their great fuel economy and warranties (Yamada-Hanff, 2012). Hyundai has sold more than 192,953 of the 2011 Hyundai Sonatas and 160,922 of the Hyundai Elantras.

2.Discuss how much influence Hyundai’s value-pricing strategy plays in consumers’ ongoing mixed perceptions about Hyundai’s quality.
Hyundai’s value-pricing strategy makes their cars more appealing to their customers. Hyundai has come a long way; their sales were great last year but are starting to dwindle. During a focus group discussion Hyundai’s advertising manager asked people to tell them what they

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