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I need a 200 word response with at least one reference in each question to each of the following 3 questions (600-words total) that are based on the following fact pattern:
1. Do you think that management has made the right decision by introducing their ‘no-refund policy’? Justify your answer with supportive calculations.
2. Would you expect the marketing function to be involved in this type of decision? Why/why not? Be specific in your response.
3. What are the implications and ramifications in respect to customers in regard to this charge?
Customer Relationship Management (CRM) success is highly reliant upon the motivation and performance of a firm’s customer contact staff. Taking into consideration all that you have learned in the class review the situation below – do you think that the management has made the right decision?
CASE STUDY
Assume that you have just started working at a grocery store, in its marketing department. The store’s management team on advice of accounting has just introduced a
no-refund policy
. The policy was changed because it was calculated that the old full refund policy was costing the store an average of $50 per year for each of their customers. The store has approximately 10,000 regular customers, the new policy represents a cost saving of approximately $500,000 per year for the store
.
Some of your fellow staff members have discussed with you that this change will make it much more difficult for staff to deal with customer complaints and service recovery. As a member of the marketing staff you are aware of the following information:
QUESTIONS
Answer each question using theory and knowledge gained from class. Saying I agree or disagree is not a complete answer.
1. Do you think that management has made the right decision by introducing their ‘no-refund policy’? Justify your answer with supportive calculations.
2. Would you expect the marketing function to be involved in this type of decision? Why/why not? Be specific in your response.
3. What are the implications and ramifications in respect to customers in regard to this charge?
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