this is Total Quality Management. Chapter 7. Customer Satisfaction, Retention, and Loyalty

Answer Discussion Asignment

13. Explain why just meeting customer specifications might DISCUSSION QUESTIONS not produce customer satisfaction Discuss the following questions in dass er outside of class 14. Describe the customer loyalty model with your fellow studente 15. Explain the concept of customers as innovation part- 1. Americans have developed what has been called a ners and how to implement the concept. "microwave mentality. We like quick service, instant food, and fast results. Does this describe you as a CRITICAL THINKING ACTIVITY customer! 2. What American companies besides Federal Express base Are Customers Really Loyal? their success on NOW service! "I'll stick with you through thick and thin." or "What have you done for me lately? Which best describes the attitude of DISCUSSION ASSIGNMENT 2 customers in today's marketplace? Two quality managers are debating the concept of customer loyalty. One of them, Jack Winning Back Lost Customers Hayes, claims that customer loyalty does exist, that it can be Is a Costly Challenge won, and that winning a customer's loyalty should be every Perhaps the most famous case illustrating the enormous organization's goal. According to lack. "If you have a history cost of winning back lost customers is that of the "Tylenol of satisfying a customer, he will be loyal enough to overlook an occasional bad experience." Murders." Seven people in the Chicago arca died suddenly after taking Tylenol capsules. An investigation revealed that "No way," says Anna Cage. "It takes only one bad expe the capsules had been laced with cyanide, a deadly poison. rience to lose a customer." Join this debate. You are a customer. Are you loyal to When the story ran on the nightly news programs, a nation any organizations? If so, how many bad experiences will wide panic ensued that caused Tylenol's sales to plummet overnight. Many business analysts predicted that Tylenol's it take to overcome your loyalty? Have you ever decided manufacturer. Johnson & Johnson, would not survive the to withhold your business from a store, restaurant, or tragedy. Johnson & Johnson surprised the analysts by under other service provider based on poor service? Do you usu- ally give an organization more than one chance to win taking one of the most successful campaigns in history to win back customers. It worked, but the cost was huge. This your business, or is one bad experience all it takes to turn care led not just johnson & Johnson but also all major drug you off? manufacturers to develop the tamperproof bottle. Having done so, Johnson & Johnson undertook an intensive public DISCUSSION ASSIGNMENT 1 relations campaign to win back the trust of its customers. Federal Express Knows Customers DISCUSSION QUESTIONS Want It Now! Discuss the following questions in class or outside of class with your fellow studente "You know you have hit the big time when the purple-and- 1. If the Tylenol incident were to happen today and you orange-lettered Federal Express (FedEx) truck driven by a were a user of Tylenol would Johnson & Johnson be smiling courier pulls into your driveway or walks up your able to win back your trust stairwell and hands you the purple-and-orange envelope. 2. What would it take for Johnson & Johnson to win back First off, it's always a blessed relief to get what's inside because it absolutely, positively had to get there." your trust if one of the victims was a friend of yours? "Fred Smith, a 20-year-old sophomore at Yale ENDNOTES University, understood this characteristic of American culture when he thought up his topic for his business dass project. We all know the legend, how he wrote a term paper 1. Linda M. Doberty and James F. White. "Customer- Defined Quality in a Networked World." Retrieved describing his idea for overnight delivery of documents from httpolfindarticles.com particles/mi_MOHTO anywhere in the country by means of a fleet of airplanes fly is 1_29/ai_n25030928 on March 5, 2011. ing to a hub system converging on Memphis of all places. Fred got a Con the paper, and most of his buddies thought 2. Peter R. Scholtes, Barbara Streibe, and Brian L. he was lucky Joiner, The Tram Handbook, 3rd ed. (Madison, WI: But it took more than full faith in a sophomore's Joiner Associates, 2003). 2-6 brainchild to make FedEx what it is today. The company serves one of the most important aspects of American 3. Dorherty and White "Customer-Defined Quality in a Networked World culture and business: the need for a NOW response. And FedEx knows that the only thing it has to sell is NOW- 4. American Society for Quality, "Idea Creation Tools." without fail." Retrieved from www.ang.org/learn-about-quality 117