Read the video case and answer the three questions at the end.

Harley-Davidson’s customers can spot each other instantly by the iconic black, white, and orange logo on their motorcycles, clothing, and saddlebags. More than a century after the first Harley-Davidson motorcycle hit the road the company’s annual worldwide sales have risen as high as $5 billion. Harley-Davidson dominates the U.S. motorcycle market, and sales are also strong in Japan and Europe. Its annual out-put covers 31 models in five product lines (Sportster, Dyna, Softail, VRSC, and Touring). Although Harley-Davidson teetered on the brink of bankruptcy in the 1 980s, it roared back by limiting production to focus on a consistently high level of quality. M any of its newer products marry the brand’s image of freedom and individuality to motorcycles with styling, performance, and features that appeal to younger buyers and women buyers. To attract first-time buyers as well as experienced riders trading up to better bikes, Harley-Davidson prices its motorcycles starting at $6,695 and offers financing and insurance, as well. To help build showroom traffic when recession recently slashed sales by about 1 0% domestically and 1 2% worldwide, the company developed a special “ Ride Free” promotion offering new-bike trade-in value to buyers of the inexpensive Sportster model. Restructuring, reduced production, and some layoffs make up the company’s other recession-fighting strategies. Buyers can also order limited-edition motorcycles custom built with distinctive paint designs and accessories. Customers see their bikes as a way of expressing their individuality. However, Harley-Davidson selects only a small number of orders annually for custom-built bikes. Not surprisingly, these custom products are usually in high demand. To encourage the next generation of biking enthusiasts to learn to drive a motorcycle and then buy the Harley-Davidson bike of their dreams, many of the company’s dealers offer the Rider’s Edge driving course. Since 2000,when the course was first offered, nearly 1 40,000 people have graduated and earned a motorcycle license. The Rider’s Edge also helps experienced riders to hone their driving skills and learn special techniques for riding in groups. Group riding is such an important part of the overall product experience that the company founded the Harley Owners Group (HOG) to foster a sense of community among its customers. Today, the 1 million HOG members enjoy benefits such as access to dozens of exclusive group rides, a special customer service hotline, and a members-only website. They also receive two magazines: Hog Tales, with articles about members and member events, and Enthusiast, with articles about Harley-Davidson’s goods and services. In addition, customers can use the Harley-Davidson website to plan travel, book hotels, rent bikes, or ship their bikes for their next riding adventure. Knowing that customers are passionate about motorcycles and about Harley-Davidson in particular, the company arranges tours at four of its factories in Wisconsin, Pennsylvania, and Missouri. It recently opened the Harley-Davidson Museum in Milwaukee, Wisconsin, home of its headquarters, with 1 30,000 square feet of exhibits. Many of the exhibits feature products from Harley-Davidson’s past, including a sample of the bikes, boats, golf carts, and snowmobiles the company once manufactured. Museum-goers can get a taste of the Harley experience by climbing onto one of the company’s current bikes for a virtual ride through beautiful country scenery projected on a big screen. The museum also looks ahead by highlighting Harley Davidson’s latest technology, its newest engines, and the inner workings of its new-product development process. One exhibit shows how a new motorcycle starts life as a sketch, is transformed into a clay model, becomes a testable prototype, and ultimately enters full production. “In creating this museum, we wanted to make sure that it told an evolving story,” says the museum director. “We have a rich heritage, but we also have an exciting future. For more information about this company, go to

www.harley-davidson.com

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Questions

1. Why would Harley-Davidson put as much emphasis on consistency of quality as it does on level of quality?

2. How does Harley-Davidson use customer services to differentiate its motorcycle products?

3. What role do you think the Harley-Davidson Museum might play in influencing how consumers perceive the company and its products?