Case:     Is Quality Good Marketing or Is Good Marketing Quality Please check (Chapter 4 Customer Focus) Quality is...

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General Management

Case:     Is Quality Good Marketingor Is Good Marketing Quality

Please check (Chapter 4 Customer Focus)

Quality is important to the employees of a Fortune 500 leisurefurniture manufacturer and retailer. Franchise owners are requiredto operate their stores with a focus on high quality, knowing thattheir license may be revoked if the corporation judges theirquality to be inadequate. Franchise owners recognize thatcommitment to quality begins with man­agement and filters down toall areas of the busi­ness. Managers believe that if they cutcorners, their employees are likely to do the same. They empha­sizethat things should be done correctly the first time and that thereis always something that can be improved. They are never totallysatisfied with the present level of quality. This commitment to thepursuit of excellence is passed down to every employee. Thefranchisor's quality motto is "Excellence and quality are notdestinations; they are journeys.” maker.

        Quality efforts aremade in all areas of the business in an attempt to achieve "ZeroUnsatis­fied Customers." The first thing a customer notices at eachfranchise store is its "curb appeal." The parking lot is keptclean. An attractive sign dis­plays the mission of the company,which explains the company's commitment to satisfying cus­tomersthrough service, selection, and value. When the customer enters theshowroom, several displays of furniture are visible immediately.These displays, called vignettes, are small room settingsincluding, for example, a sofa, on or two chairs, a coffee table,and an end table. Lamps and accessories are included in thevignettes, although the store carries very few such items and mostare not available for purchase. Vignettes show the dif­ferentstyles (country, traditional, contemporary, and transitional) thatare available. The vignettes are intended to provide the customerwith an "im­pression of quality" upon entering the store. Much careis taken in designing the vignettes, right down to the spacingbetween the pieces of furni­ture, and they are constantlymonitored. The entire showroom is dusted and cleaned at least oncea day; carpets and upholstered furniture are sham­pooed everymonth. The sales counter is kept neat and uncluttered. As onefranchisee stated, "Never give a customer a reason not to buy."

Training and continuing education of a high­ quality sales staffis a company priority.

The sales­person must believe in the store's product and servicequality and attempt to instill this in customers' minds. Thesalesperson must attempt to understand customers' needs and tosatisfy them with the company's products. All salespersons seekfive key pieces of information about the customer. The firstconcerns the customer's tastes, involving questions such as:

1. Have you been shopping for furniture recently?

2. How long have you been shopping?

3. Where have you been shopping?

4. What piece or pieces have you seen that you like?

The second is who is the purchase-decision maker. (In manycases, this person is not present.)

The third area is timing. Does the customer need the merchandiseby a certain date or for a particular reason? The fourth piece ofinformation is how much the customer wants to invest (not spend).Finally, the salesperson asks how the customer wishes to pay forthe merchandise and offers several payment options. The salespersonsends each customer, whether a purchaser or not, a thank?you noteas a follow?up.

The franchisor also emphasizes quality in warehousing. Thisincludes handling of the product from the point of receiving untilits shipment from the warehouse. Furniture received at thewarehouse is inspected for defects, such as rips and scratches. Ifa defect cannot be repaired, the unit is promptly shipped back tothe manufacturer. The next step is to steam out any bumps orcreases that occurred in shipping. When furniture is delivered to afranchisee's showroom, the vice president of merchandising isresponsible for placing it in the showroom for properprice-tagging.

For customer delivery the store rents professional?lookinguniforms for its delivery personnel. The delivery equipment iswell?maintained, clean, and reliable. Trucks are cleaned every dayand repainted frequently. The trucks are on a tight maintenanceschedule in order to maximize reliability. Customers can request aguaranteed two?hour delivery window. Delivery personnel call theday prior to the scheduled delivery to remind the customer of thetime and to confirm that someone will be home. At the customer'sresidence, delivery personnel must complete tasks specified on achecklist, including placing the furniture exactly where thecustomer wants it, confirming that items such as recliners are inworking order, demonstrating proper operation when appropriate, andother tasks. The delivery person is not permitted to leave untilthe customer is satisfied with the product and the service. Ifthere are any problems or complaints that cannot be resolved by thedelivery person, he or she must contact the manager and arrange asolution.

Customers receive numerous guarantees, including lifetime partswarranties, seven?day exchange privileges, and in?homeconsultations. Follow?up telephone calls ask customers about theirfeelings toward all aspects of their experience with the purchase.They are asked about store appearance, if the merchandise was inexcellent condition when delivered, if it is sufficient to meettheir needs, how the delivery personnel performed, and so on. Asone franchise owner sums it up, "The best way to assure quality isthrough product inspection and market research."

Discussion Questions :-

1 Of what value in achieving qualityare the actions this company takes in storeappearance,      warehousing, delivery,and customer relations?

2. Can you think of other aspects of quality that have not beenmentioned here?

3. Do you agree with the franchisee's statement at the end ofthe case? Why or why not?

4. How would you address the question posed by the casetitle?

                                             

Note:

  • Please remember the following points.
  • Support your report with evidence of academic research fromEBSCO journal sources, websites, newspapers andinternet.

Answer & Explanation Solved by verified expert
4.2 Ratings (500 Votes)
1 Of what value in achieving quality are the actions this company takes in store appearance warehousing delivery and customer relations Many consumers determine where to shop on the basis of their attitude towards a combination of stores the shopping center atmosphere and the enjoyable shopping experience If a company or brand does more for the consumer than someone else and more than the consumer would usually expect from such a company or brand then the company uses a value creation strategy The objective for companies should be to exceed the role of a supplier of a particular product or service to become a valuecreating partner on which the customer can always rely to produce results Customer value is considered to be central to the competitive advantage and longterm success of business organisations There may be four types of consumer definitions of value a low price a focus on the benefits of the product or service a quality obtained for the price paid and a total benefit received for the total sacrifice made In this case the company undertakes creation of value for its customer or potential customers by offering a number of insights on convenience the depth breadth of the range that the retailer offers the stores environment which has the ability to attract customers entice purchases and to attract customers back to the store for repeat purchase the delivery quality professional approach of the furniture installation staff stringent quality checks from manufacturer to consumer and the overall shopping experience ie all those events and activities that are part of it the design of the shopping environment in the store or outline the service personnel how they greet customers the layout of the store floor planning whether the company bought something extra to the table on offer and how they made customers feel while they were shopping Furthermore the company viewed relationship from the point of view of its customer Such a partnership consists of more than just the clients who routinely buy goods and services This is because consumers are aware of the difference between repeat buying based on convenience nonemotive factors such as price quality or circumstances where the consumers return to the same company or brand repeated times because they have a special feeling for them What the brand or business represents to a customer depends on how it suits consumer values The Organization has tried to build a kind of value in order to achieve quality by contributing to efficient consumer relationships focused on access comfort or convenience timeliness product quality value for money competence and communications among others These    See Answer
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