Group 1Research Proposal 1

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Humber College *

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Nov 24, 2024

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Business Research Method – Group Research Proposal The Importance of Customer Experience in Driving Business Performance for Automotive Body Shops TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................................... 2 Abstract ....................................................................................................................................................... 3 Introduction ................................................................................................................................................ 3 Literature Review ........................................................................................................................................ 3 Statement of the Problem .......................................................................................................................... 5 Research Objective ..................................................................................................................................... 7 Research Design and Methods: .................................................................................................................. 8 Conclusion: ................................................................................................................................................ 10 References ................................................................................................................................................ 11 1

Business Research Method – Group Research Proposal Abstract This research delves into the pivotal role of customer experience (CX) in shaping the business landscape for automotive body shops. Against the backdrop of a dynamically evolving automotive industry, our study scrutinizes the intricate interplay between communication strategies, customer satisfaction, and overall business success. Drawing on a methodical literature review, we identify gaps in current knowledge and establish the unique challenges faced by auto body repair businesses. The focal points include the transformative impact of digital tools, the influence of communication on service quality perception, and the potent dynamics of online reviews in the Canadian market. The study's objectives encompass dissecting communication points, evaluating digital innovations, and discerning the significance of post- service interactions. Employing a mixed-methods approach, the research engages auto body shop managers, employees, and a diverse pool of Humber College students for a comprehensive understanding. Ethical considerations underscore the commitment to confidentiality and anonymity. Through a nuanced exploration, this research aspires to unravel the complexities inherent in the customer experience landscape of automotive body shops, providing actionable insights to propel enhanced customer satisfaction and sustainable business growth. Introduction In the contemporary automotive landscape, the term 'customer experience' (CX) has emerged as a critical determinant of success, particularly for automotive body shops. As the automotive industry undergoes transformative shifts influenced by technological advancements, changing consumer behaviors, and a burgeoning emphasis on trust, the need to understand and optimize customer interactions within auto body shops becomes paramount. This research proposal, titled "The Importance of Customer Experience in Driving Business Performance for Automotive Body Shops," embarks on an exploratory journey to unravel the intricate dynamics of CX in this specialized sector. Over the past decade, CX has risen to the forefront of academic and business discussions, with studies underscoring its direct correlation to positive outcomes such as enhanced customer loyalty, increased referral rates, and overall business growth. The digital age has magnified the impact of individual customer experiences, shaping perceptions through online reviews and feedback. 2

Business Research Method – Group Research Proposal This proposal focuses on the auto body repair segment, emphasizing the multifaceted nature of service quality beyond technical repair proficiency. The renowned SERVQUAL model serves as a guiding framework, acknowledging tangible and intangible dimensions that contribute to the overall service experience. Notably, the phenomenon of waiting in service industries is explored, recognizing the nuanced factors that influence customer satisfaction during wait times. Communication emerges as the cornerstone of CX within auto body shops, where trust is paramount, and customers entrust valuable assets—their cars—to unfamiliar hands. The research highlights the significance of effective communication at every touchpoint, from initial consultations to post-service follow-ups. Technological innovations, such as real-time updates and augmented reality tools, are also examined for their potential to reshape customer expectations and satisfaction levels. As the automotive landscape evolves, the Canadian market's unique consumer behaviors and the power of digital reviews add layers of complexity to the CX paradigm. This research proposal posits that, despite a wealth of literature on general CX principles, there is a glaring gap in understanding the specific nuances of customer interactions within the auto body repair industry. The ensuing exploration aims to address this gap, offering insights that can inform strategies for heightened customer satisfaction and sustained business success. Literature Review Introduction to Customer Experience (CX) The term 'customer experience', commonly referred to as CX, has witnessed increasing prominence in academic and business discussions over the past decade. Numerous studies have documented the correlation between a robust CX strategy and a variety of positive business outcomes, including enhanced customer loyalty, increased referral rates, and overall business growth. In the digital age, with the power of online platforms, even a single customer's experience can have a magnified impact, influencing the perceptions of potential customers through reviews and feedback (Leachman & Scheibenreif, 2023). Deep Dive into Service Quality 3

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Business Research Method – Group Research Proposal When discussing service-based industries, especially those like auto body shops, the notion of service quality becomes paramount. The well-regarded SERVQUAL model (predictors of service quality) serves as a guideline on multiple dimensions, from tangible aspects like the physical ambiance of the shop to the intangibles such as empathy and responsiveness. In the context of auto body shops, this suggests that a customer's experience is shaped by a multitude of factors beyond just the shop’s repair quality. Ensuring a pleasant atmosphere, training staff for effective and professional communication, or providing reliable services are all part and parcel of perfect service quality (Shields, 2021). A vast body of literature has addressed the phenomenon of waiting in service industries. Prolonged or unexpected wait times can obviously be detrimental to customer satisfaction. However, these negative perceptions are not just shaped by the duration of the wait, but also by associated factors like the perceived fairness of the wait, the quality of the waiting environment, and the provision of wait-related information. Effective communication about potential delays, offering comfortable waiting areas, or even providing amenities can mitigate the potential negative impact of long waits (Chien & Lin, 2014). Communication: The Cornerstone of Customer Experience Communication, often an underemphasized aspect, plays a pivotal role in shaping customer perceptions and experiences. Research indicates that effective communication can not only address service-related concerns but can also build trust and loyalty (Chien & Lin, 2014). For industries like auto body shops, where interactions might be limited but are crucial, optimizing every touchpoint becomes crucial to the point of compulsory. This includes everything from initial consultations, updates during the service period, to post-service follow- ups (Addressing Automotive Customer Experience | McKinsey, n.d.). Diving deeper into the communication spectrum within the auto body shop industry, several aspects to be considered emerge. The industry involves clients entrusting a valuable asset, their car, to someone they might not know, often with little understanding of how the repair process works. This amplifies the importance of not just informing but reassuring the customer at every stage, that your assets are in good hands. In today's digitally interconnected era, customers increasingly anticipate real-time updates for all kinds of purchases and services, including vehicle repairs. Forward-thinking auto body shops, applying the right technology for 4

Business Research Method – Group Research Proposal timely communication, can witness notable upticks in customer satisfaction. As the automotive service industry continues its evolution, mastering the balance between communication and repair quality will undoubtedly serve as a distinctive advantage in a saturated market (Addressing Automotive Customer Experience | McKinsey, n.d.). Trust in the Canadian Market Diving into geographical specifics, the Canadian market showcases unique consumer behaviors. Research focused on this demographic indicates that Canadian consumers place an exceptionally high emphasis on trust, especially in sectors where there is a knowledge mismatch between the service provider and the consumer, like auto repairs (Addressing Automotive Customer Experience | McKinsey, n.d.). The Power and Peril of Digital Reviews In the modern era, traditional word-of-mouth has been reinforced, if not replaced, by digital reviews. The power of these online testimonials is a double-edged sword. Positive reviews can bolster a business's reputation, driving new customers through its doors. On the other hand, negative reviews can have a considerably negative impact, deterring potential customers (Leachman & Scheibenreif, 2023). Tech Innovations in Auto Body Shops A newer trend in research is exploring the intersection of technology and customer experience. Progressive auto body shops are harnessing tech tools for a variety of purposes, from offering real-time repair updates via apps to utilizing augmented reality for virtual overviews of repair processes (Smyth, 2023). These innovations, while enhancing transparency and communication, are setting new industry standards and reshaping customer expectations. Uncharted Waters: The Need for Niche Research Despite the wealth of literature on general customer experience principles, there is little research when it comes to the auto body shop industry. Given the industry's unique dynamics, there is a pressing need for the bespoke research topic. The important and different ways that 5

Business Research Method – Group Research Proposal customers interact with auto body shop business, along with their focus on trust in this service, can offer a lot to study and explore. Statement of the Problem A significant problem has arisen in the automotive sector, with an emphasis on car body repair shops, prompting an investigation of customer experience management and its attendant impacts on business performance. Customer loyalty and satisfaction have been of utmost importance in determining the success and profitability of auto body businesses as the sector predicts a continuous growth in demand for its services. The need to understand, specify, and improve the procedures and methodologies regulating the management of customer experience within these auto body shops is, thus, the primary issue under review. Customer expectations have changed in recent years, with a greater focus being placed on the whole experience that consumers enjoy when visiting auto body shops, in addition to the quality of the repair work. These expectations have changed over time, which is a sign of a broader change in customer behavior. Today's consumers anticipate seamless, practical, and individualized interactions with car body services. As a result, the ability to satisfy these changing client expectations has turned into a key factor in both customer retention and the business's overall success. The likelihood that millennials, who are expected to constitute for more than 45% of the potential car-buying group by 2025, will be responsible for transforming the automotive industry, is what supports this dilemma. However, it is unsettling that traditional automobile ownership is going through a perception crisis, which is characterized by the perceived time and financial commitments. According to research, consumers spend an average of 15 hours on the car purchasing process and an additional 50 hours on the maintenance and service parts of car ownership. Significantly, this research underscores that the service experience now exerts greater influence than the initial purchasing journey, with 53% of consumers prioritizing service satisfaction over the 48% who prioritize the purchasing journey (Fanderl et al., 2019). At the precipice of these industry shifts, auto body repair shops are faced with the challenge of redefining their strategies to align with the evolving landscape of consumer preferences and expectations. This transformative shift is further exacerbated by the multifaceted, time- consuming, and often inconvenient service processes associated with car ownership. The 6

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Business Research Method – Group Research Proposal implication is clear: a suboptimal service experience might discourage the next generation from pursuing automobile ownership. The growing rivalry in the vehicle repair industry only makes things more complicated. Auto body companies are now under pressure to stand out from the competition by offering high-quality customer service. The combination of good repair work and exceptional customer service is set to be a strategic need rather than a simple benefit in a highly competitive climate. The complex problem encompassed in the changing landscape of auto body repair facilities is primarily based on the theoretical framework of customer behavior in the dynamic automotive sector. An extensive investigation of the complex cognitive processes that underpin the decisions made by millennials in their interactions with the automobile sector is crucial within the context of this framework. It is noteworthy that behavioral economics, with its emphasis on the impact of psychological and emotional aspects on decision-making, has the potential to explain the motives and actions of this new customer group. Additionally, the idea of limited rationality provides insights into the limitations of rational decision-making, which are especially important for understanding the complexity of the service experience. The difficulties and time-consuming nature of the service experiences connected to automobile ownership form the core of the problem statement. This problem puts the viability of long-standing practices in the automobile industry at risk, necessitating a diversified strategy for solving it. Addressing this complicated issue and guaranteeing the long-term profitability and success of auto body repair businesses requires a deep awareness of consumer expectations, creative service techniques, and an appreciation of the developing dynamics of the automotive industry. Research Objective Considering the significant impact of customer experience on auto body shop outcomes, this research seeks to delve into the details of customer interactions. The focus is on understanding communication strategies and their implications for both customer satisfaction and business success. Hence, the objectives of this research are to: 1. Describe communication points in auto body shops affecting customer experience. 7

Business Research Method – Group Research Proposal 2. Identify the main tactics used by these shops and their impact on customer satisfaction. 3. Determine the effects of proactive versus reactive communication on perceived service quality. 4. Analyze how digital tools enhance the repair service experience. 5. Establish the role of post-service interactions in building customer loyalty. 6. Compare satisfaction levels in shops with and without communication training. 7. Assess the influence of online reviews on customer choice of auto shop. As a result, this research aims to provide a comprehensive overview of the complexities between communication and customer experience within auto body shops, offering insights that could drive enhanced customer satisfaction and business growth. Research Design and Methods: This research aims to explore the impact of managing customer experience in auto body shops on business growth and profitability. Specifically, it focuses on the influence of customer- centric strategies on factors such as customer satisfaction, repeat business, and overall profitability. By employing a combination of descriptive and explanatory research methods, this study seeks to provide both a comprehensive description and a deeper understanding of the relationship between customer satisfaction improvement and business growth in the context of the automotive industry. The research design for this study incorporates both descriptive and explanatory research methods, allowing for a multifaceted investigation of the chosen topic. The descriptive component aims to provide an accurate and systematic description of the subject, while the explanatory component seeks to establish the underlying mechanisms driving the observed phenomena. The study will involve two participant groups: 1. Auto Body Shop Managers and Employees: - We will select the top three auto body repair shops in Etobicoke. - Managers and employees from these shops will be interviewed, addressing questions related to customer services offered by their respective auto body shops. 2. Humber College Students: 8

Business Research Method – Group Research Proposal - A pool of 100 Humber College students will be included in the study. This pool will comprise both car owners and non-owners. - Students will be surveyed using an online platform (Google Form) to gather quantitative data on their perceptions and preferences related to car ownership and auto body shop experiences. Data Collection Methods: 1. Qualitative Data Collection (Auto Body Shop Managers and Employees): - Semi-structured interviews will be conducted with auto body shop managers and employees to gain qualitative insights into their views on customer satisfaction and its relationship to business performance. Sample Interview Questions: - "What do you consider the essential factor for customer retention at your auto body shop, and why?" - "On a scale from 1 to 10, how would you rate the customer satisfaction at your auto body shop during each visit?" - "How do you communicate updates with your customers?" - "What is the typical duration of the service process during each visit?" 2. Quantitative Data Collection (Humber College Students): - Humber College students will be surveyed using a Google Form with scaled questions to gather quantitative data. Sample Survey Questions: - "On a scale from 1 to 10, how would you evaluate the importance of cost, maintenance, and insurance when considering the purchase of a car?" - "On a scale from 1 to 10, please rate your overall experience with your auto body shop." - "Would you consider returning to your auto body shop? If not, please explain why." Procedures: - Auto body shop managers and employees will be contacted via email or store phone to schedule in-person or virtual interviews. - Humber College students will be contacted through email via the college's online platform (Blackboard) to participate in the online survey to minimize paper waste. 9

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Business Research Method – Group Research Proposal Data Analysis: - Quantitative data will be collected through the online survey and input into an Excel sheet. The average percentage of each response will be calculated. - Qualitative data from the interviews will be summarized, and a comprehensive report will be generated to present the findings. Ethical Considerations: - The identities of auto body shop managers and employees will be kept confidential. - Student surveys will be conducted anonymously to protect privacy. Limitations: - As the surveys are anonymous, the researchers will not have a means of verifying the seriousness of participants' responses. Conclusion: In conclusion, this research proposal advocates for a comprehensive investigation into the dynamics of customer experience (CX) within automotive body shops, recognizing its paramount role in driving business performance. By scrutinizing communication strategies, service quality dimensions, and the transformative impact of digital tools, the study seeks to unearth nuanced insights crucial for navigating the complexities of this industry. The interconnectedness of effective communication, service quality, and technological innovation emerges as a focal point, especially within the context of the Canadian market and the burgeoning influence of online reviews. With a commitment to methodological rigor, the proposed research aims to bridge existing gaps in literature, offering practical and actionable insights for auto body shops aiming to elevate customer satisfaction and navigate the evolving automotive landscape. By engaging diverse stakeholders—managers, employees, and Humber College students—this research endeavors to provide a holistic understanding of the CX landscape. Ultimately, the anticipated outcomes of this study have the potential not only to enrich academic discourse on CX within the automotive repair sector but also to guide industry practitioners in adapting strategies that foster enduring customer loyalty and drive sustainable business growth. 10

Business Research Method – Group Research Proposal References Chien, S.-Y., & Lin, Y.-T. (2014). The Effects of the Service Environment on Perceived Waiting Time and Emotions. Human Factors and Ergonomics in Manufacturing & Service Industries , 25 (3), 319–328. https://doi.org/10.1002/hfm.20542 Fanderl, H., Matthey, A., Pratsch, S., & Stöber, J. (2019, March 7). Addressing automotive customer experience | McKinsey . Www.mckinsey.com. https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/driving-the- automotive-customer-experience-toward-the-age-of-mobility Leachman, L., & Scheibenreif, D. (2023, March 17). Using Technology to Create a Better Customer Experience . Harvard Business Review. https://hbr.org/2023/03/using- technology-to-create-a-better-customer-experience Shields, K. (2021). Chapter 3: Managing a Customer Service Team. Ecampusontario.pressbooks.pub , 3 (5). https://ecampusontario.pressbooks.pub/customercentricstrategy/chapter/chapter-3- managing-a-customer-service-team/ Smyth, M. (2023, September 7). How AR and VR are used to solve vehicle repair challenges . Fleet Maintenance. https://www.fleetmaintenance.com/equipment/safety-and- technology/article/53071445/how-ar-and-vr-are-used-in-auto-repair 11

Group 1Research Proposal 1

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