Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 1, Problem 2CQ
Summary Introduction
To determine: The option, which is not a dimension or subdimension in the customer’s utility function.
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Below is a table of data collected over a six-month period in a local grocery store. Construct a Pareto analysis of the data and determine the percentage of total complaints represented by the two most common categories.
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Eastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new vehicle. The average vehicle sells for $28,939 and has a margin of 6%. Based on historical averages, 83 of people buying a new vehicle at Eastern will return for service 9 times over the next 5 years. Though it varies considerably, Eastern generates approximately $92 in margin on each service visit after accounting for parts and direct labor costs.
What is the estimated 5 year value of the service component (only) of a customer who purchases a new vehicle at Eastern Motors?
The customer are complaining to the hotel general manager about the service provided from front desk and restaurant how can the general manager reduce variability and increase consistency
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- Eastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new vehicle. The average vehicle sells for $28,350 and has a margin of 5%. Based on historical averages, 84 of people buying a new vehicle at Eastern will return for service 9 times over the next 5 years. Though it varies considerably, Eastern generates approximately $89 in margin on each service visit after accounting for parts and direct labor costs. Assume the 5 year value of the service component is $475. What would be the value of a service loyalty program that increased the average number of visits by 2 (over 5 years) and increased the probability that a new vehicle purchaser would return for service by 5 percentage points on a per customer basis?arrow_forwardWhich of the following is not a dimension of customer service? convenience utility time communicationarrow_forwardWhat are the subcomponents of inconvenience in a customer utility function?a. Location and priceb. Price and volumec. Location and timed. Time and performancearrow_forward
- In SERVQUAL, which attributive in service expectation includes apparent/visual confirmation of service availability? A-Assurance B- Reliability C- Responsiveness D- Empathy E- Tangibilityarrow_forwardGary's Shoes and Accessories is attempting to quantify the value of a loyal customer. Al Bundy, Gary's data analyst, has carefully analyzed ten years of data and determined that its customers tend to purchase a new pair of shoes every two years and its customer defection rate is 25%. Gary's fixed costs are 20%, and it makes a before-tax profit of 10%. The revenue for the store's Peggy line of shoes, which accounts for virtually all of the sales, is $250. An aggressive marketing campaign is planned that Al estimates will increase the store's share of customers by 8,000. What is the market value increase? a. $2,800,000 b. $400,000 c. $1,200,000 d. $800,000arrow_forwardDesign a questionare of 20 questions that you could use to assesss the service quality of your on campus teaching facilities .arrow_forward
- Services cannot be seen and touched. This feature is called as: a. Inseparability b. Intangibility c. Perishability d. Heterogeneityarrow_forwardConsider the order delivery system of Heartha Hardware and Construction Supplies:- Customers (whether by bulk or retail) would line up in a counter where sales representatives will entertain them. It would take about 15 minutes before a customer will be entertained due to the number of customers being served by the sales representative and only about 4 sales representatives are on duty every day.- The sales representative will take down the customer’s order in the order slip with corresponding prices. On some cases, she will ask the person in-charge in the warehouse if the items are available. She then forwards the order slip to the cashier.- The cashier would sum-up again manually the order slip from the sales representative to check the accuracy of the footing of the totals as well as the prices indicated. This would take about 10 minutes, depending on the bulk of the order being placed.- The official receipt will be printed and will be given to the…arrow_forwardCustomer lifetime value is the stream of income that can be generated by a customer over his entire lifetime. Select one: O a. True. O b. False.arrow_forward
- When the value of a loyal customer (VLC) market segment is high, should these customers be given premium goods and services for premium prices? If the VLC is low, should they be given less service? Explain.arrow_forwardBelow is a table of data collected over a six-month period in a local grocery store. Construct a Pareto analysis of the data and determine the percentage of total complaints represented by the two most common categories.All Other 71Checker 59General 58Service Level 55Policy/Procedures 40Price Marking 45Product Quality 87Product Request 105Checkout Queue 33Stock Condition 170arrow_forwardWhat type of time-series components would you expect for the following products and services?a. Monthly sales of a retail florist.b. Monthly sales of milk in a supermarket.c. Daily demand in a call center.arrow_forward
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