Saturday, September 19, 2009

General Motors New 60-Day Return Policy

I recently viewed a television commercial for General Motors new 60-day return policy. I was blown away by the marketing message sent by General Motors to consumers "If you find a better car, then give ours back" campaign. What a bold move on General Motors part trying to boost sales and gain customer satisfaction. I am wondering how General Motors President, Bob Lutz pulled out all the stops with such an aggressive marketing campaign. Especially when automobile/trucks have suffered slumping sales, and General Motors has lost market share to import car manufactures that offered better gas mileage and reliability.

I would like to understand the factors that went into the implementation of this promotion. I understand the move to increase sales and boost product confidence. But what if the promotion fails? I guess General Motors has answered this question for me by streamlining the company after bankruptcy and accepting millions in taxpayer bailout money. If the promotion by General Motors fails taxpayer money is lost and the company would be holding on to many "slightly used" vehicles to sell.

I would like to find out how much "marketing" research was completed by General Motors to offer such a bold promotion OR is this promotion a gamble of precious taxpayer money as a last ditch effort to save the company. Not to mention the cost of prime time promotion budget of TV ads, sporting events, radio, etc. I am anxious to see the results of this promotion and I hope the promotion is a success for the American taxpayer and General Motors.

1 comment:

Jackie Hylton said...

Ray,
It is indeed a bold promotion. I was talking with a GM salesman during the last week and we reviewed this offer in detail. What I found out is, if I am not interested in pursuing the return within 60 days, I can receive $500 off of the purchase price. So they have a back door incentive built in too. Buying a car is such a huge decision, I don't know about you but once you make it, you live with it. If you end up with a lemon, that doesnt usually reveal itself within 60 days time. This consumer would opt for the $500 off vs. the option to change my mind.