Question

Case:     Is Quality Good Marketing or Is Good Marketing Quality

Please check (Chapter 4 Customer Focus)

Quality is important to the employees of a Fortune 500 leisure furniture manufacturer and retailer. Franchise owners are required to operate their stores with a focus on high quality, knowing that their license may be revoked if the corporation judges their quality to be inadequate. Franchise owners recognize that commitment to quality begins with man­agement and filters down to all areas of the busi­ness. Managers believe that if they cut corners, their employees are likely to do the same. They empha­size that things should be done correctly the first time and that there is always something that can be improved. They are never totally satisfied with the present level of quality. This commitment to the pursuit of excellence is passed down to every employee. The franchisor's quality motto is "Excellence and quality are not destinations; they are journeys.” maker.

        Quality efforts are made in all areas of the business in an attempt to achieve "Zero Unsatis­fied Customers." The first thing a customer notices at each franchise store is its "curb appeal." The parking lot is kept clean. An attractive sign dis­plays the mission of the company, which explains the company's commitment to satisfying cus­tomers through service, selection, and value. When the customer enters the showroom, several displays of furniture are visible immediately. These displays, called vignettes, are small room settings including, for example, a sofa, on or two chairs, a coffee table, and an end table. Lamps and accessories are included in the vignettes, although the store carries very few such items and most are not available for purchase. Vignettes show the dif­ferent styles (country, traditional, contemporary, and transitional) that are available. The vignettes are intended to provide the customer with an "im­pression of quality" upon entering the store. Much care is taken in designing the vignettes, right down to the spacing between the pieces of furni­ture, and they are constantly monitored. The entire showroom is dusted and cleaned at least once a day; carpets and upholstered furniture are sham­pooed every month. The sales counter is kept neat and uncluttered. As one franchisee stated, "Never give a customer a reason not to buy."

Training and continuing education of a high­ quality sales staff is a company priority.

The sales­person must believe in the store's product and service quality and attempt to instill this in customers' minds. The salesperson must attempt to understand customers' needs and to satisfy them with the company's products. All salespersons seek five key pieces of information about the customer. The first concerns the customer's tastes, involving questions such as:

1. Have you been shopping for furniture recently?

2. How long have you been shopping?

3. Where have you been shopping?

4. What piece or pieces have you seen that you like?

The second is who is the purchase-decision maker. (In many cases, this person is not present.)

The third area is timing. Does the customer need the merchandise by a certain date or for a particular reason? The fourth piece of information is how much the customer wants to invest (not spend). Finally, the salesperson asks how the customer wishes to pay for the merchandise and offers several payment options. The salesperson sends each customer, whether a purchaser or not, a thank‑you note as a follow‑up.

The franchisor also emphasizes quality in warehousing. This includes handling of the product from the point of receiving until its shipment from the warehouse. Furniture received at the warehouse is inspected for defects, such as rips and scratches. If a defect cannot be repaired, the unit is promptly shipped back to the manufacturer. The next step is to steam out any bumps or creases that occurred in shipping. When furniture is delivered to a franchisee's showroom, the vice president of merchandising is responsible for placing it in the showroom for proper price-tagging.

For customer delivery the store rents professional‑looking uniforms for its delivery personnel. The delivery equipment is well‑maintained, clean, and reliable. Trucks are cleaned every day and repainted frequently. The trucks are on a tight maintenance schedule in order to maximize reliability. Customers can request a guaranteed two‑hour delivery window. Delivery personnel call the day prior to the scheduled delivery to remind the customer of the time and to confirm that someone will be home. At the customer's residence, delivery personnel must complete tasks specified on a checklist, including placing the furniture exactly where the customer wants it, confirming that items such as recliners are in working order, demonstrating proper operation when appropriate, and other tasks. The delivery person is not permitted to leave until the customer is satisfied with the product and the service. If there are any problems or complaints that cannot be resolved by the delivery person, he or she must contact the manager and arrange a solution.

Customers receive numerous guarantees, including lifetime parts warranties, seven‑day exchange privileges, and in‑home consultations. Follow‑up telephone calls ask customers about their feelings toward all aspects of their experience with the purchase. They are asked about store appearance, if the merchandise was in excellent condition when delivered, if it is sufficient to meet their needs, how the delivery personnel performed, and so on. As one franchise owner sums it up, "The best way to assure quality is through product inspection and market research."

Discussion Questions :-

1 Of what value in achieving quality are the actions this company takes in store appearance,      warehousing, delivery, and customer relations?

2. Can you think of other aspects of quality that have not been mentioned here?

3. Do you agree with the franchisee's statement at the end of the case? Why or why not?

4. How would you address the question posed by the case title?

                                             

Note: Please remember the following points. Support your report with evidence of academic research from EBSCO journal sources, websites, newspapers and internet.

Answer 1

1. Of what value in achieving quality are the actions this company takes in store appearance, warehousing, delivery, and customer relations?

Many consumers determine where to shop on the basis of their attitude towards a combination of stores, the shopping center atmosphere and the enjoyable shopping experience. If a company or brand does more for the consumer than someone else and more than the consumer would usually expect from such a company or brand, then the company uses a value creation strategy. The objective for companies should be to exceed the role of a supplier of a particular product or service to become a value-creating partner on which the customer can always rely to produce results. Customer value is considered to be central to the competitive advantage and long-term success of business organisations. There may be four types of consumer definitions of value; a low price; a focus on the benefits of the product or service; a quality obtained for the price paid; and a total benefit received for the total sacrifice made. In this case, the company undertakes creation of value for its customer or potential customers by offering a number of insights on convenience; the depth & breadth of the range that the retailer offers, the stores environment which has the ability to attract customers, entice purchases and to attract customers back to the store for repeat purchase, the delivery quality & professional approach of the furniture installation staff, stringent quality checks from manufacturer to consumer, and the overall shopping experience, i.e., all those events and activities that are part of it: the design of the shopping environment in the store or outline, the service personnel, how they greet customers, the layout of the store & floor planning, whether the company bought something extra to the table on offer, and how they made customers feel while they were shopping.

Furthermore, the company viewed relationship from the point of view of its customer. Such a partnership consists of more than just the clients who routinely buy goods and services. This is because consumers are aware of the difference between; repeat buying, based on convenience, non-emotive factors such as price, quality, or circumstances where the consumers return to the same company or brand repeated times because they have a special feeling for them. What the brand or business represents to a customer depends on how it suits consumer values.

The Organization has tried to build a kind of value in order to achieve quality by contributing to efficient consumer relationships focused on; access, comfort or convenience, timeliness, product quality, value for money, competence and communications, among others. These factors may result in customers dealing with a company again or buying a brand again and again. Other forms of value include those dealing with customer feelings and emotions such as: goals, interests, shared history, beliefs; sense of commitment, trust, social support, trust, etc.

Outstanding customer service is also part of offering value & quality. What customers experience in the Company’s store counts for as much as what they buy. The company has hired people who reflect the Organisation’s values, and treat them with the same respect that they want them to extend to the customer.

2. Can you think of other aspects of quality that have not been mentioned here?

Performance - Since this consistency factor includes observable qualities, brands may typically be objectively rated on the individual performance aspects. However, overall performance rankings are more difficult to create, especially when they include benefits that not every customer needs.

Features - Features are the "bells and whistles" of goods and services, certain features that accompany their fundamental functioning. What is important, once again, is that features include objective and observable attributes; individual objective requirements, not biases, hinder their conversion into disparities in quality. Of course, for many consumers superior quality is less a function of the availability of particular features than of the total number of available options. The furniture stores sell numerous combinations & variations of fabric and color to their customers. Such strategies put heavy demands on operating managers; they are a quality dimension which is likely to increase in importance with the perfection of versatile manufacturing technology.

Durability - Measurement of product life and durability has both economic and technical dimensions. Technically, durability can be described as the amount of use a product obtains before it deteriorates. In other cases, consumers must weigh the expected cost of future repairs against the investment and operating expenses of a newer, more reliable model, in both dollars and personal inconvenience. Durability, then, can be described as how much use a product gets until it breaks down, and replacement is preferable to continued repair. There are two important implications for this approach to product sustainability. First, it indicates that durability and reliability are closely linked. A product that often fails is likely to be scrapped earlier than one that is more reliable; the cost of repair will be correspondingly higher and the purchase of a competitive brand will be much more desirable. Second, this approach implies that the data on durability should be interpreted with care. The increase in product life cannot be the result of technical improvements or the use of longer-lived materials. Rather, the underlying economic environment may have simply changed.

Face-to-face service to the customer - Online reviews and live chat can provide shoppers with details to help them make a buying decision, but nothing beats engaging with knowledgeable store partners who really want to support & help customers.

Constant reinvention - Reinventing the entire retail space — from store design to inventory — with specific themes every few weeks.

Product-building – letting shoppers create or design their own furniture ideas or home spaces virtually or within the store to help them feel more involved in the decision making or buying process

Social Media Opportunities - Consumers crave experiences that they can share on social media. This is particularly evident in younger generations, i.e. Gen Y & Gen Z. In order to captivate these audiences, the company may give them a social media reason to check out their retail store -probably even have a corner or area in their store to encourage shoppers to take pictures in-store. This will help to increase online traction as customers are eager to share their photos on social media.

“Retailtainment” - It's all about fusing retail and entertainment to make the shopping experience richer. In certain cases, retailtainment includes displays or attractions to draw shoppers 'attention.

3. Do you agree with the franchisee's statement at the end of the case? Why or why not?

"The best way to assure quality is through product inspection and market research." – Yes, to a great extent, however, not the only means of quality assurance. Quality assurance involves maintaining product consistency so that a consumer can easily buy it and rely on it. To order of a business that has a record of long-term success, a consumer needs to have a feeling of trust in a specific product. In order to create this kind of trust, the consistency of the design must be assured and the product must be completely functional as the customer expects.

Product inspection is likewise an evaluation activity which compares products with applicable standards. Everybody in the company is an auditor in a modern quality control system, and is responsible for checking the work they do. The best inspection shall be carried out at the source, at the time the output is produced, and by the individual who makes it. Further, Quality control is considered part of the quality functions. It is a regulatory mechanism by which each department tests the actual quality level, compares it with the norm, and acts on the difference.

Similarly, research is in demand. Since the turn of the 21st century, research has undergone a period of fast global growth and market consolidation. The advent and development of social media has dramatically opened up new ways for people to gain exposure to and learn more about their thoughts and attitudes. Analysis is widely recognized as a crucial business method used to help business decisions.

Given that quality has become a central concern for businesses and other organizations, how can it be achieved and delivered to the customer? Three main elements are commonly recognized although the focus varies depending on the author, point of view and, most critical of all, the nature of the organization that seeks to deliver quality. These elements are purpose, process and people.

Purpose is the commitment to quality within the organization, and this may be expressed in written mission statements, through meetings, exhortations or other means, but, however it is done, it must reflect real faith and commitment and not just pay lip service. Commitment must also be achieved throughout the organization, starting from the top but going all the way down.

Process concerns systems and methodologies designed to deliver quality consistently and consistently, and those stressing its importance argue that commitment, while essential, can not be achieved without discipline and rationality of effective systems. Those with a strong emphasis on the process generally favor the adoption of formal systems and see significant benefits in underpinning their commitment to ISO 9001 assessment.

However, the development of formal systems (often seen as largely a matter of writing procedures manuals) is only one, and the less radical, aspect of the process approach. Another is the fundamental re-engineering of all processes that deliver products and services; the re-engineering of the organization. Another is to place heavy dependence on automated processes, eliminating any human interaction, as human interaction introduces subjectivity into the process. Technology, as such, plays a vital role in the way processes are organized, and this increasingly applies to modern market research. Technology drives the way in which research processes are structured and carried out at each stage.

People - A human resource focus is always a strong element in TQM programmes and the training and skills development aspect is just as important. A final aspect of the people side of quality to mention at this point is professionalism.

4. How would you address the question posed by the case title?

Marketing has become a mantra for corporate houses looking to introduce new consumer goods and services. A large number of print, media and audio-visual ads are used to channel and capture the interests of the purchaser. But how far does slick marketing actually translate to record sales? Can the marketing of a product well cover up its flaws? Or is the product just as good as the promotional jingle that supports it?

Quality is what a product can do for a customer. Often, product quality is how good the product is doing what it is intended to do, and how well it is holding up over time. Certain customers see quality as a price point while others prefer a product because it's "greener." Irrespective of the various public opinions, product quality is a competitive criterion for brands that influence purchasing decisions and profitability.

Of the following five factors, the labels and advertisers cannot afford to ignore the product consistency. Often, product quality is how good the product is doing what it is intended to do, and how well it is holding up over time. Certain customers see quality as a price point while others prefer a product because it's "greener." Irrespective of the various public opinions, product quality is a competitive criterion for brands that influence purchasing decisions and profitability.

Brands and marketers can’t afford to overlook product quality for the following five reasons –

Builds Trust with Customers: Many believe that businesses won’t succeed if they can’t build customer trust. Countless potential sales are lost because a brand fails to make a deeper connection with prospective buyers.

Fuels Word of Mouth & Social Media Recommendations: Word of mouth can be a convincing factor in both online and offline purchase decisions. Friends and family would like to hear if someone who is close to them has had a positive product experience. The higher quality product a company has to sell, the greater the chance it would have to receive favorable reviews, feedback and market shares

Produces Less Customer Complaints & Returns: Brands of high quality get more repeat transactions. Spending more time and resources up front to refine a product before it enters the market will eliminate concerns and returns from consumers.

People Care about Aesthetics: (one dimension of quality is how a product looks, feels, sounds, tastes or smells.)

Produce a Higher (ROI): Studies indicate a strong positive connection between efficiency and profitability. High quality generally yields a higher return on investment (ROI) for any given market share.

Sources of research:

https://www.vendhq.com/blog/retail-experience/

https://hbr.org/1987/11/competing-on-the-eight-dimensions-of-quality

http://www.opentextbooks.org.hk/ditatopic/10640

https://shop.bsigroup.com/upload/BIP2206_Ch1Watermarked.pdf

http://www.diva-portal.org/smash/get/diva2:1032639/FULLTEXT01.pdf

https://www.careerride.com/view/marketing-or-quality-whats-more-important-to-sell-a-product-26303.aspx

https://www.business.com/articles/5-reasons-why-product-quality-matters/