Authors
Dr. Marlene Smith
University of Colorado Denver
Objective
Determine whether certain conditions make it more likely that a customer order will be won or lost.
Background
In many industries throughout the world, suppliers compete for business by submitting quotes for work, services or products. A key criterion used to determine the winning quote is the dollar amount of the quote, but other factors include expected quality, estimated delivery time of the product, or quoted completion time of the work.
The focus of this case is a supplier of equipment to the automotive industry. The products of interest in this case are various precision metal components used in a range of automotive applications, such as braking systems, drive trains, and engines. Some of the products will be used in the manufacture or assembly of new automobiles (i.e. original equipment), while others will be used as replacement parts in automobiles already on the road (i.e. aftermarket)
The Task
The supplier wants to increase sales and expand its market position. Many of the quotes provided to prospective customers in the past haven’t resulted in orders. Do the data provide any indication why? Are there certain situations that make it more or less likely that a customer will place an order?