Basic Characteristics of Competitive Relations in the After-Sales Market of Motor Vehicles in Serbia

Domazet, Ivana and Stošić, Ivan (2017) Basic Characteristics of Competitive Relations in the After-Sales Market of Motor Vehicles in Serbia. Ekonomika preduzeća, 65 (5/6). pp. 413-426. ISSN 0353-443X

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Abstract

The aftermarket (guarantees, services, sales and use of replacement parts and accessories) is characterized by a large number of users on the demand side, while acquisition of this type of product is treated as capital procurement (purchase of cars, trucks, buses, etc.). Capital procurement is symbolized by large expenditures, a relatively long shelf life, as well as a significant share of maintenance costs, namely servicing the products at the expense of the buyer, etc. After-sales servicing and the supply of spare parts provided by individual manufacturers are important elements when deciding on the purchase of a vehicle. However, it is difficult for consumers to foresee the cost of total purchase (the price of the primary product and the total cost of post-sales services over the period of use), since vehicles are consumed for a long period of time after the purchase (and expiration of the warranty period) which includes a large number of regular servicing and emergency repairs. Accordingly, the primary goal of this paper is to deepen the knowledge and analysis of the basic features of this market, which is significant for the budget of a large number of users, since the previous information on the topic is extremely limited. In addition, the analysis of the structure and the main actors (authorized and independent service providers) and their competitive relations is of great importance for all drivers of motor vehicles, as it can assist them in planning and budgeting not just of repairs but also the purchase of motor vehicles, and accordingly reduce the risk of poor decisions related to the purchase of primary products and selecting providers of aftersales service during the period of use of the product

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