MARKETING
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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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.
consider the following reliability analysis for the  variable customer difference. What could you conclude from it?
Reliance Control Systems is a large manufacturer of control systems for the electrical power generation and  distribution industry. Over the past few years, Reliance has watched overseas competitors take away market  share with products that are priced lower and that, at the same time, have developed a reputation for better  reliability. The company is not in a dangerous position yet, but the board of directors wants to see a  concerted effort to improve the company’s competitive posture. In addition, the board wants to solve the  quality problem that is gradually arising in the implementation of their control systems. System glitches have  been evident in several projects of the company which strongly affect the company’s overall reliability to  their clients. During the discussion of the senior management, a proposal to implement quality standards of  ISO 9000 was considered. However, the CEO of the company is not at all convinced that mere application of  quality standards will…
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