MARKETING
7th Edition
ISBN: 9781260087710
Author: Grewal
Publisher: RENT MCG
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Chapter 13, Problem 3MA
Summary Introduction
To discuss: That the what Person X should inform the manager to do if the restaurant is placed over the zone box on safety but below the box on responsiveness.
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consider the following reliability analysis for the variable customer difference. What could you conclude from it?
Perkins Company has been experiencing lost sales and high returns recently, so they decided to undertake a comprehensive quality program. Here are factors being considered: Finished products need to be inspected before shippingEstimated cost: $45,000 Production equipment needs upgradingEstimated cost: $400,000 Perkins knows that if it undertakes this program, it will be able to reduce warranty repair costs by $25,000. They also know they will be able to avoid lost profits by retaining customers, but they cannot quantify that benefit with any degree of precision. Should Perkins go ahead with the quality program? A) Yes, they should, regardless of any other considerations. B) No, they should not. C) They should, only if the benefit of avoiding lost profits is estimated to be over $420,000. D) They should, only if the benefit of avoiding lost profits is estimated to be over $445,000.
You have conducted a zone of tolerance analysis for your local pizzarestaurant. You find that the lengths of the reliability andresponsiveness boxes are much greater than those of the other threeservice quality dimensions. You also find that the restaurant ispositioned above the zone box on reliability but below the box onresponsiveness. What should you tell the manager to do?
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