Journal for Chapter 8 / 5 questions

Weekly Journal Entry

Located on pages 341 and 342 in book. Complete and answer all numbered questions for Project I through Project III listed below (p. 341 & 342 in book). Answers must be typed below the underlined headings. 5 questions to answer in all. The log in information for this chapter is below. All answers for questions are located in Chapter 8. Cite References if used.

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Project I. Shipping Problems

Entrepreneurship is in Alyssa Stuart’s blood. Stuart has been starting businesses since she was 10 years old, and she finally has the perfect business of custom-made furniture. Customers who visit her shop can choose from a number of fabrics and 50 styles of couch and chair designs to create their custom-made furniture. Once the customer decides on a fabric pattern and furniture design, the information is sent to China where the furniture is built and shipped to the customer via the West Coast. Stuart is excited about her business; all of her hard work has finally paid off because she has more than 17,000 customers and 875 orders currently in the pipe.

Stuart’s business is booming. Her high-quality products and outstanding customer service have created an excellent reputation for her business. But the business is at risk of losing everything and she has come to you for help solving her supply chain issues. The parcel delivery companies such as FedEx and UPS are on strike and Alyssa is not sure how her raw materials or finished products will be delivered

1. What strategies do you recommend for Alyssa’s business to continue working and overcome the strike?

Project II. Great Stories

When customers have an unpleasant customer experience, the company no longer has to worry about them telling a few friends and family; the company now has to worry about them telling everyone. Internet service providers are giving frustrated consumers another means of fighting back. Free or low-cost computer space for Internet websites is empowering consumers to tell not only their friends but also the world about the way they have been treated. A few examples of disgruntled customer stories from the Internet include:

■ A bike-riding tourist requires stitches after being bitten on the leg by a dog. The tourism company is banned from renting bikes and in turn bars the tourist from taking any future tours.

■ A customer leaving Best Buy refuses to show the receipt voluntarily to the guard at the door. The Best Buy employees try to seize the customer’s cart and then decide to park a car behind the customer’s vehicle.

■ Enterprise Rent-A-Car operates a high-stress business, and frequently its customers find that the company did not honor reservations, did not have cars ready for reservations, rented cars with empty tanks of gas, and charged higher rates to corporate account holders.

The pervasive nature of the Internet is increasing customer power and changing business from product-focused to customer-focused.

1. Explain the difference between product-focused business and customer-focused business and why CRM is more important than ever before.

Project III. JetBlue on YouTube

JetBlue took an unusual and interesting CRM approach by using YouTube to apologize to its custom- ers. JetBlue’s founder and former CEO, David Neeleman, apologized to customers via YouTube after a very bad week for the airline: 1,100 flights were canceled due to snowstorms, causing thousands of passengers to be stranded at airports around the country. Neeleman’s unrehearsed, unrefined, and sincere YouTube apology made customers understand the issues and accept the company’s apology.

You are the founder and CEO of GoodDog, a large pet food manufacturing company. Recently, at least 16 pet deaths have been tied to tainted pet food, fortunately not manufactured by your company. A recall of potentially deadly pet food has dog and cat owners studying their animals for even the slightest hint of illness and swamping veterinarians nationwide with calls about symptoms. Create a strategy for using YouTube as a vehicle to communicate with your customers as they fear for their pets’ lives. Be sure to highlight the pros and cons of using YouTube as a customer communication vehicle.

1. Are there any other new technologies you could use as a customer communication vehicle that would be more effective than YouTube?

2. With all the new advances in technology and the many ways to reach customers, do you think using YouTube is a smart approach?

3. What else could you do to help gain back customers’ trust?


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