Publication Date

Fall 12-6-2025

Document Type

Student Project

First Advisor

Sharp, Barton

Degree Name

B.S. (Bachelor of Science)

Department

Department of Finance

Abstract

Consumer distrust has become one of the greatest barriers to success in today’s automotive retail environment, especially within the used-car market where skepticism toward dealerships and repair services is widespread. This research investigates how dealerships can rebuild consumer confidence while also improving profitability and long-term competitive positioning. Using Porter’s Five Forces framework, the study analyzes key industry pressures including high buyer power, strong competitive rivalry, and increasing substitute transportation. Findings show that transparency, trust-building communication, and consistent relationship-based service are essential for sustainable differentiation. Strategies such as mobile-friendly scheduling systems, real-time repair updates, transparent pricing and inspection visuals, partnerships with trusted brands, and strong warranty offerings reduce uncertainty and strengthen credibility. The research concludes that dealerships seeking long-term success must shift from a transactional approach to a customer experience driven model rooted in reliability, proactive communication, and community presence. These insights provide a foundation for launching a business model that not only attracts and retains customers but also creates a durable competitive advantage in a rapidly evolving market.

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