Discuss the four common service recovery mistakes made by organizations
What will be an ideal response?
The first mistake managers make is disregarding evidence that shows that service recovery provides a significant financial return. This is generated by a focus on cost cutting and failing to respect and retain their customers. Another mistake is failing to invest enough in actions that would prevent service issues. Here again, cost is a key driver, limiting training and education. Poorly trained front-line staff is not capable of performing necessary service recoveries. A third mistake is when customer service employees fail to display good attitudes. Customers respond to the attitudes of the employees they encounter. Poor attitudes decrease the effectiveness of other recovery efforts like recompense. The final mistake is that organizations make it difficult to complain or give feedback. Complaints help organizations recognize problems with their services and also allow for recovery attempts. Limiting complaints reduces customer retention and allows faulty service procedures to continue unchecked.
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Morris Company uses the lower of cost or market rule and applies it using the LIFO method in valuing its inventory. The floor constraint for one item in the inventory is $68.20. The following is other information concerning this unit: Transportation costs $ 4.00 Normal profit margin 12.70 Packaging costs 4.20 The net realizable value for this item is
A) $72.40 B) $55.50 C) $80.90 D) $76.40
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