Q1a. A subcommittee of board of directors of Hamptom Inns has made a bold propos
ID: 450070 • Letter: Q
Question
Q1a. A subcommittee of board of directors of Hamptom Inns has made a bold proposal that customers be given a guarantee of “complete satisfaction or your night’s stay is free.” Employees will be permitted to make good on this guarantee without the approval of managers. Although the proposed guarantee would show great confidence in the hotel’s quality and would provide Hamptom Inns a competitive advantage, most of the hotel managers oppose to this plan. Provide any 2 reasons describing the hotel managers’ reluctance to guarantee customer satisfaction. Provide 2 potential customers’ reactions to such a guarantee. Provide any 2 examples of controls that could be used to avoid customers’ abuse of such guarantee. .
1b. Why is “quality” the most important characteristic or feature of any product or service?
***Please be very thorough and detail as much as you can. I want to understand it very well
Explanation / Answer
1a. Two reasons for hotel manager's reluctance could be:
(i) many customers will abuse the proposal. The customers can point to some minor flaw or a very little or small service let down to claim that they did not receive complete satisfaction. They will do this just to claim the offer of free night at the inn. The managers are being wary about such customers.
(ii) employees have a free hand to make good the guarantee without the requirement of hetting any approvals from the managers. The employees can take advantage of this and can indulge in fraud by claiming fake expenses or inflating expenses (that the inn will have to reimburse them). They can collude with customers staying at the inn to take advantage of the situation.
Two potential customer's reaction:
(i) The first reaction can be positive. Customer's will be happy and delighted at the offer as it is guaranteeing a certain level of service and satsfaction at the inn. The offer is a method of conveying the high standards of quality service at the inn and people seeking good and quality service will really appreciate the offer.
(ii) The second possible reaction can be a negative one. Customer's might think that they can take advantage of this offer by falsely claiming their level of satisfaction was not complete or not high just to get the rebate being offered.
Two examples of controls are: (i) the inn should have a pre-defined list of norms and standards and if any material deviation happens when providing service to the customer or if there is a material deviation in terms of facilities, only then it will be assumed that complete satisfaction was not given. (ii) employees can be instructed not to entertain frivolous requests from customers that are aimed to abuse such an offer.
1b. For any product or serivce, quality is the most important feature from an user's point of view. Quality is the attribute which ensures the user that he or she will get value for their money and that the amount that they have put in for a product or service does not go as a waste. Excellence is associated with quality and people always will want to maximize the value of their consumption.
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