SKODA AUTO INDIA: SERVICE RECOVERY AND BEYOND

This case describes a situation where customers are happy with the product, a luxury car offered by Skoda at a value for money price, but find after-sales service to be dismal. Consequently, customer dissatisfaction is high, and Skoda is consistently ranked at the bottom in satisfaction surveys. In this setting, Mark Harris, a longtime Volkswagen/Skoda veteran who is brought in as the Director of Sales, Service and Marketing in Skoda India, leads a service recovery effort.

The case introduces the challenges associated with designing and managing services of durable products where after-sales service is a critical part of the customer solution, and discusses the determinants of service quality and delineates the relationship between service quality and customer satisfaction. Further, the difficulties associated with service recovery efforts and the positive impact of successful recovery on future product introductions are discussed as well.

The case also provides valuable input for deeper discussions on the appropriate use of social media in setting expectations and dealing with customer complaints.