Scenario: Better Mousetrap Inc. Better Mousetrap Inc. is a manufacturing company

Question

Scenario: Better Mousetrap Inc. Better Mousetrap Inc. is a manufacturing company that sells pest control products. Recently the company launched an innovative mousetrap with a unique design that has been selling well in the U.S. market. Senior Vice President Marc Wallace, even recommended expanding sales overseas in order to increase company revenues. Jack has always handled product returns on a case-by-case basis, but he is often unprepared to deal with too many cases of returns. Which of the following would most likely help Jack increase his repeat business? 0 A, avoiding receiving returns when possible to discourage the loss of revenue 0 B. continuing with the current system, since it is already well-established O C. accepting returns but crediting customer accounts slowly to discourage future returns D. planning for returns and giving prompt credits to customers

Explanation / Answer

Answer: Option (D) - Planning for returns and giving prompt credits to customers

Explanation: If Jack wishes to increase his repeat business, he must make an appropriate plan to handle high volume of cases of return. We cannot say that the current system is well established as Jack is not well prepared in dealing with too many cases of returns. The practice of avoiding receiving returns or delaying crediting customer accounts after accepting returns would disappoint the customers and will discourage them from making future purchases from Better Mousetrap inc. Instead, Jack should spend more time in planning for returns and giving prompt credits to customers such that it increases his repeat business.

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