Question

1. John Jackson discusses Fed Ex's "omni-channel strategy" Explain what he is referring to in the context of customer service?

http://www.viddler.com/embed/55dcd635/?f=1&player=arpeggio&secret=25830826&make_responsive=0

2. Why did Taco Bell originally have to change their pricing? What is the Big Bell Value Meal and what is the benefit of it?http://bevideos.mhhe.com/business/video_library/0077561058/ch14_tacobellpricingforvalue_oc.mp4

Answer 1

1. omni -channel strategy is the strategy to satisfy consumers in their channel of choice like phone, live chat, social media.Through omni -channel strategy fed x tried to provide best customer service.

customer demand, customer expectation and customer cycle have dramatically changed over time. customers have more information and more power than they ever had. Their expectation for customer service has dramatically increased. Therefore it is the fed x strategy to satisfy customers in the best possible way.

2.Taco bell initially offered food choices for 59,79,99 cents which were groundbreaking for QSR industry. They initially had a competitive advantage. But after imitation by other firms and rising cost forced taco bell to increase prices.

They get to know that price value is important to consumers. Due to rise in prices, they lost their customers who are price sensitive .therefore in order to connect with them in a differentiated way with price value, taco bell offered Big Bell Bell Value meal in the range of 99 cents to 129 cents which were found to be good value for consumers.

Big bell value meal was made up of food choices with lower price and greater quantity. consumers can also order from the regular menu and add from big bell value meal which will keep them full for a low price.