Automobile dealerships may pursue business growth by attempting to increase repurchase loyaltythe return of customers to their current dealership to purchase their next vehicle. As the quality and functionality of most vehicles approach parity, sales and service increase in importance. Analysis of customer survey data reveals that satisfaction with service accounts for one-third of total customer satisfaction, and is predominantly based on the dealerships ability to repair a vehicle correctly, on time, at the first attempt. Whereas "best in class" performance approaches 90 percent, average dealer performance against this target is only 65 percentmeaning that one in three customers must go back for further repairs. The traditional solution to this performance shortfall has been to establish mandatory training to make repair technicians more effective. But since extra training means that technicians spend less time working, the diagnostic stage of the repair process is often rushed, leading to failure to detect faults and thus defeating the object of training. The problem can be exacerbated by flat-rate compensation that emphasizes number of jobs a technician completes rather than quality of service. In addition, training costs decrease dealers profits, prompting them to reduce their investment in tools and equipment, further limiting technicians overall effectiveness.
1. According to the passage, sales and service have increased in importance for automobile dealerships because many
A.dealers institute growth strategies that produce unforeseen results
B. dealers are unable to meet the best in class" target for service and are therefore at a disadvantage
C. automobiles are comparable in most respects and are therefore equally desirable
D. present-day automobiles are more complex and difficult to repair than automobiles of the past
E. present-day automobiles function less well than automobiles of the past
2. The author of the passage mentions "customer survey data" (see highlighted text) primarily in order to
A.identify repair service as an important element in encouraging repurchase loyalty
B. suggest a reason why average dealer repair performance is so far below "best in class"
C. contrast customers actual needs with dealers perceptions of what is important to customers
D. confirm the perception that dealerships have been attempting to promote business growth in ways that may be counterproductive
E. explain why repurchase loyalty is So important to dealership growth
3. Which of the following best describes the "problem" mentioned in the highlighted text?
A.Repair technicians spend less time working because of training.
B. Repair technicians fail to diagnose repair needs correctly.
C. Dealers profits decrease as a result of growth strategies.
D. Dealers pursue growth by attempting to increase repurchase loyalty.
E. Dealers reduce their investment in tools and equipment.
