Will and Jason Najami are going to open a swimming pool service this summer. They will put in pools, repair damaged ones, and provide a pool cleaning service. They have decided to use a service guarantee as their primary service recovery tool. How can they make sure that their service guarantee is effective?

Will and Jason Najami are going to open a swimming pool service this summer. They will put in pools, repair damaged ones, and provide a pool cleaning service. They have decided to use a service guarantee as their primary service recovery tool. How can they make sure that their service guarantee is effective?

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter13: Services Marketing

Section13.2: American Express Delivers Service With Calls, Tweets, And Apps

Problem 2C

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CEO John Spychalski is concerned about a problem that has existed at CBN railroad for almost 20 years now. The continuous problem has been that the locomotives used by the company are not very reliable. Even with prior decisions to resolve the problem, there still has not been a change in the reliability of these locomotives. Between 2015 and 2016, 155 new locomotives were purchased and one of CBN’s repair shops was renovated. The renovated shop has been very inefficient. Spychalski estimated that the shop would complete 300 overhauls on a yearly basis, but instead it has only managed to complete an average of160 overhauls per year.The company has also been doing a poor job servicing customers (that is, providing equipment). CBN has averaged only 87–88 percent equipment availability, compared to other railroads with availability figures greater than 90 percent. Increased business in the rail industry has been a reason for trying to reduce the time used for repairing the locomotives.…
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