Chapter 14: Application Software Exercise


Database Exercise: Designing a Customer System for Auto Sales


Ace Auto Dealers specializes in selling new vehicles from Subaru. The company advertises in local newspapers and also is listed as an authorized dealer on the Subaru Web site and other major Web sites for auto buyers. The company benefits from a good local word-of-mouth reputation and name recognition and is a leading dealer for Subaru vehicles in the Portland, Oregon, area.

           When a prospective customer enters the showroom, he or she is greeted by an Ace sales representative. The sales representative manually fills out a form with information such as the prospective customer’s name, address, telephone number, date of visit, and model and make of the vehicle in which the customer is interested. The representative also asks where the prospect heard about Ace—whether it was from a newspaper ad, the Web, or word of mouth—and this information is noted on the form also.

           If the customer decides to purchase an auto, the dealer fills out a bill of sale form and enters the following information into Ace’s sales information system: the vehicle identification number, vehicle make and model, color, options selected, the list price, the final price, and the date of the sale, along with the purchaser’s name, address, and telephone number. (The final price is the list price minus any dealer discounts.) Files for this system can be found on the Laudon Web site for Chapter 14.

           Ace does not believe it has enough information about its customers. It cannot easily determine which prospects have made auto purchases or the percentage of prospects who have been converted into buyers. Nor can it identify which customer touch points have produced the greatest number of sales leads or actual sales so it can focus advertising and marketing more on the channels that generate the most revenue. Are purchasers discovering Ace from newspaper ads, from word of mouth, or from the Web? Additionally, the firm cannot tell whether its customers are more interested in no-frills cars or those with luxury options.

           Prepare a systems analysis report detailing Ace’s problem and a system solution that can be implemented using PC database management software. Then use database software to develop a simple system solution. Your systems analysis report should include the following:

  1. Description of the problem and its organizational and business impact.

  2. Proposed solution, solution objectives, and solution feasibility.

  3. Costs and benefits of the solution you have selected. The company has a PC with Internet access and the full suite of Microsoft Office desktop productivity tools.

  4. Information requirements to be addressed by the solution.

  5. Management, organization, and technology issues to be addressed by the solution, including changes in business processes.

           On the basis of the requirements you have identified, design the database and populate it with at least 10 records per table. Consider whether you can use or modify the existing customer database in your design. Print out the database design. Then use the system you have created to generate queries and reports that would be of most interest to management. Create several prototype data input forms for the system and review them with your instructor. Then revise the prototypes.