Case 7.1 Handy Andy Inc.

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Handy Andy should have an electronic system to keep track of the service that customer are having in order to evaluate the performance and solve any issue that customer along with factory distributors or retailers.

5. Bixby, Booher, and Ortega recognize that Handy Andy needs a better way to learn about the buyer’s installation experience. One alternative is to add an open-ended question, dealing with the installation experience, to the warranty activation form. Another alternative is to e-mail a brief survey about the installation experience within three to five days for receiving a warranty activation form. Which of these alternatives should Handy Andy choose? Why?

Second alternative will work better because it’s the formal way to get feedback from customer and to measure the service given to find ways to improve the installation experience.

If there are any comments which don’t fit in the structure of survey, there will be available a phone number (specified in email) to detail any concern about product or service.

6. Discuss the Pro and cons to allowing Handy Andy trash compactors to be sold only through licensed retailers (i.e., factory distributors would no longer be able to sell to consumers).

Pros

Cons

- Direct customer service

- More control from supply system and customer service

- Identify products and services provided in all markets. (The differences of services provided in some markets are removed)

- Factory distributors may increase their performance because they just need to focus on only one field now.

- Retailers also may give a better performance because only them responsible for the sales right now, so they have to try their best if they don’t want to lose sales and be criticized by Handy Andy or Factory distributors.

- Lose part of customer.

- Revenue might be decrease because of losing sales provided from factory distributors.

- Increase expense (There will be a fixed charge for delivery from distributors to retailers because no more direct sale from distributors).

- Increase expense because need to set a new monitoring electronic system.

- Spend money on training employers from retailers because of their lack of professional performance.

7. Is it too late for Handy Andy to attempt service recovery with customers who reported a less-than-satisfactory installation experience? Why or why not?

Not too late, at least from recent orders there could a follow up. And create a relationship with the customer to fulfill detailed service failures.