HFT 3240 Exam 2 Study Guide Company Bergstrom Hotels The Charles Schwab Corporation Chick Fil A The Container Store Customer Research Inc Dana Commercial Credit Dial A Mattress Enterprise Rent A Car Midwest Express Airlines Miller SQA Special Expeditions St Paul Saints UKROP s Super Markets Inc USAA 1 Principal Business Hotels Securities Brokerage and Financial Services Quick Service Restaurants Specialty Retailer Marketing Research Leasing Bedding Retailer Car Rental Airline Office Furniture Manufacturer Expedition Travel Professional Baseball Team Food Retailer Insurance and Financial Services 2 The St Paul Saints provide high value to their fans by a Having reasonable prices for parking tickets concessions and merchandise and nonstop family oriented entertainment 3 Trust plays a role in building relationships because a They are the link to the future tomorrow s customers tomorrow s employees tomorrow s partners b You cannot build true relationships without trust 4 Service competence and fairness play a role in building trust a They contribute directly to a sense of trust the foundation of employee partner and customer relationships b Service competence customers always rate reliability of service the single most important feature in judging service quality c Trust leads to loyalty Trust is the basis for all significant relationships for it counterbalances risk and vulnerability 5 Fairness is demonstrated in the text as a An individual s perception of the degree of justice in a firm s behavior b Two conditions generally are necessary to elicit positive or negative fairness perceptions i The individual feels vulnerable ii The company s behavior triggers a fairness or unfairness perception 6 Employee Turnover a High employee turnover drives a stake in the heart of a company s relationship marketing efforts b Excessive turnover negates customers efforts to develop any kind of personal relationship with a firm because they must continually deal with different service providers c Discourages companies from investing much in employee s skill and knowledge development because they lost the investment when the employee leaves 7 Service quality a Excellence in service requires listening helping caring 8 Family Gatherings a Members of strong families gather periodically to communicate share celebrate resolve problems console help or enjoy one another b Purpose is to reinforce the company s culture values and sense of family 9 Family Honor a Companies encourage organizational trust by believing in members of the organization They create trust by trusting Companies expect their employees not to cheat 10 Family Fairness a Companies build organizational trust through equal treatment of managerial b If the treatment is unequal it is the managers t rather than the nonmanagers and nonmanagerial personnel who must meet a higher standard 11 Family Fun a Fun is a great trust builder because it conveys caring 12 Emotional Ownership a The highest level of relationship commitment b An extension and combination of cooperation enhancement identity and advocacy 13 Examples of UKROP s friendship rules or gestures a UKROP paid for the damages done to a customer s car after ice slid off their building and onto the car UKROP was not legally responsible for the damages b A customer called the store to ask if two food trays could be delivered for a neighbor who had a death in the family UKROP does not deliver groceries but the assistant manager personally delivered the food trays 14 Cora Griffith a Waitress at the Orchard Caf in Appleton Wisconsin b Implements nine rules of success i Treat customers like family ii Listen first iii Anticipate iv Simple things make the difference v Work smart vi Keep learning vii Success is where you find it viii All for one and one for all ix Take pride 15 Training at Midwest Airlines a Two day orientation program every three weeks The program simulates the experience of taking a flight This is done to give everyone a feel for the pulse of the business 16 Training at UKROP a Corporate universities b Offer a curriculum of both required core courses and elective courses through its Center for Retail Food Studies All full and part time employees attend four core courses in their first year spaces about three months apart 17 Successful companies invest in employee success through a Employee stock ownership plans stock grants profit sharing bonuses and above average wages 18 Advantages for big companies acting small a Easy for customers to do business with the company b Easy for the company to do business with themselves c Build trust based relationships 19 A company within a company is a Custom Research has clients such as Coca Cola b A company that has clients of other companies A company built on relationships 20 Importance of having a strong brand a Strong brands enable customers to better visualize and understand the service Reduce customers perceived monetary social or safety risk in buying services b The surrogate when the company offers no fabric to touch no trousers to try on no watermelons or apples to scrutinize no automobile to test drive 21 UKROP donates 10 of its pretax profits to the community 22 Lens Crafters contributes to needy customers by a Give the Gift of Sight Provide free optical services and glasses to needy people in North America and around the world i Includes collecting cleaning repairing and classifying of used eyeglasses for distribution to needy people in developing countries 23 Strategic Generosity a Being not only extraordinarily generous but also effectively generous Rather than giving for the sake of giving they invest with a plan in mind with a long term goal 24 Charles Schwab ASSETS program a Assisting Society through Schwab Employee Teamwork and Service b Facilitates employee volunteerism by linking employee interests community needs and company community action priorities in areas such as i K 12 education health care AIDS literacy counseling services to minority groups seniors youth disables people the homeless arts and culture 25 Control of Destiny a Having systems in place to achieve company goals and sustain success year after year experience 26 If companies grow too fast a Rapid growth weakens the market offer and impairs the customers 27 Three keys to Facebook s success a Place where people can move quickly b Be bold c Focusing on leverage and impact 28 Ikea a Tries to have a better every day for the average people 29 In N Out Burger