Question
You are general manager for a small regional chain of pizza restaurants. In the first few years of business, the reputation of the food was
You are general manager for a small regional chain of pizza restaurants. In the first few years of business, the reputation of the food was marginal, but the prices were relatively low. In the past 2 years there has been a change of ownership and direction. The chain now prides itself on high quality food and service (and higher prices). To make this transition successful and attract new customers, the chain had to bolster its image. To do so, they created a food and service guarantee. It reads. "...if you are unsatisfied with our food or services in any way, let us know and we will refund your money and give you 50% off your next visit..." This guarantee was necessary in order to reassure past customers and attract new ones. Once the guarantee was implemented, sales have increased substantially.
There have been a few problems, however. Payouts under the guarantee have been growing exponentially over the last year. There are customers abusing the guarantee by complaining (receiving a refund and coupons). There was even a recent post on social media that read, "Yeah, just head over to Sam and Ella's and eat like a pig and then say you didn't like it (or that the waiter was rude) and get it for free...then go the next day for half off". Clearly, there are a growing few that are ruining it for everyone else. We still must maintain a guarantee, but somehow weed out the abusers (low value customers) while not punishing our loyal (high value customers) customers. How could this be accomplished in your opinion?
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