Analysis Of The Hockey-stick Effect And Countermeasure Research In The Dealer Incentives Of M’s Automobile After-sale Market

Dearler incentives of after-sale market is a crucial issue in management research in the automobile industry.Due to the short-sighted behavior of dealers in the aftersale market,it often leads to fluctuations in demand,increasing the risks in the supply chain.The manufacturer signs the contract with the dealers to motivate,control and manage them.And the manufacturer’s incentives policy affects the dealer’s behavior.Therefore,the influence of the dealer’s incentives policy on the dealer’s behavior as well as supply chain is an important research direction.Based on the status of M company’s incentives management of automobile after-sale market dealers,this paper takes the French company M as the background and then carries out the diagnosis of M company’s dealer incentives and its problem.Step by step,the problem of M’s dealer incentives and its causes of the problem were analyzed.According to the quo of dealer incentives of M’s after-sales department,M company’s contracts for dealers in 2013-2016 as well as the analysis of dealers’ daily sales data,the author gave the prediction of the problems on M’s dealer incentives.By studies on sales data of more than 140 dealrs in aftersale market in 2013-2016,the prediction has been proved,which is hockey stick effect and ratchet effects are the problems in M’s dealer incentives in the after-sale market.Further through interviews with employees from M(with different ratios from different management levels),the predictions of the reason of hicky-stick effect were given.One is because of periodical checking and incentiving,as well as another is single incentivement,volume discounts.The author made a comprehensive analysis of the data of M’s after-sale-market.The study shows that the reason for Hockey-stick effect is single incentivement,volume discounts,instead of checking up periodically and the length of the assessment cycle;the studys also proves the single-incentiving policy,volume discounts,doesn’t improve the real demand of customers,but only makes demand ahead.Finally,combined with the situation of M and the main reason of hicky-stick effect,the author gives some corresponding management solution.This paper provides a reference for improving dealer incentives of M company and domestic companies and also enriches the study of hockey-stick effect.