Customer satisfaction, Your brother, Joe, owns a local oil

Customer satisfaction

Reference no: EM13194504

Case : Customer Satisfaction

Your brother, Joe, owns a local oil change business in a small city in the mid-west. You are taking a marketing class in college, and you asked Joe for some information about his business for a class project. You determined that Joe's revenues indicate that he has approximately 10% of a 100,000-customer market. When discussing customer satisfaction with Joe, he stated that perhaps some of his customers might be dissatisfied, but that he didn't think it was any big deal to worry about because only a few have complained to him. However, he did say that he's noticed that some of his customers are not coming back. You wanted to impress Joe with your knowledge and convince him that he should worry about customer satisfaction, so you conducted a survey of a sample of his customers and found that the overall customer satisfaction index (CSI) was 70, an average customer life was 5 years, but that only 20% of Joe's customers surveyed would recommend Joe's business to others. Your results lead you to conclude that approximately 2% of Joe's customers were "dissatisfied" with his service.

1. If well-documented studies related to customer dissatisfaction and exit hold true (4% of dissatisfied consumers complain), Joe might expect how many of his customers to complain? Show your work. (5 points)
a) 4
b) 8
c) 10
d) 40
e) 80

2. Explain to Joe in detail what are the consequences of customer dissatisfaction. (20 points)

Reference no: EM13194504

Questions Cloud

Crime data comparison in two metropolitan areas : Utilize the FBI Uniform Crime Report data and select one offense, such as burglary, in two metropolitan areas. Choose metropolitan areas with different data.

Describe the components of a stream''s load : Describe the components of a stream's load. How is each transported? Discuss two factors that affect the transportation of the load and evaluate the impact of each on the elements of stream load.

Supply-side economics as practiced by reagan administration : Supply-side economics as practiced by the Reagan administration rested on the theory that

Economic growth and tax relief act : Which of the following statements does not accurately characterize Bush's Economic Growth and Tax Relief Act of 2001?

Customer satisfaction : Your brother, Joe, owns a local oil change business in a small city in the mid-west. You are taking a marketing class in college, and you asked Joe for some information about his business for a class project.

Differ from those of the knights of labor : How did Samuel Gompers and the American Federation of Labor's goals differ from those of the Knights of Labor?

At the post-world war i peace negotiations-president wilson : At the post-World War I peace negotiations, President Wilson succeeded in

Low voter turnout in 1924 election was attributed to : The low voter turnout in the 1924 election was attributed to the

Essential elements of an administrative hearing : Under the Administrative Procedure Act, a number of general characteristics of administrative adjudicatory hearings apply broadly and are required of most federal and state agencies. Identify and discuss the essential elements of an administrative he..

User Account

All Pages