Overview. There are four possible exercises listed below -- two derived from chapter 6 on relationship marketing and two from chapter 7 on service recovery. If you are taking the course for 1 credit, please choose one exercise from each chapter. The one from chapter 6 is due June 27 and the one from chapter 7 is due July 4. If you are taking the course for .5 credits, chose any one of the four. Its due date will depend on whether you chose an exercise from chapter 6 or one from chapter 7.

Exercises from Chapter 6 - Relationship Marketing

1. For an organization of your choice, create market segments and select important target markets following the guidelines suggested on pp. 147-149 of your text (or another standard method of segmenting -- available in most marketing texts). Please specify the basis(es) (often more than one) that you've selected for dividing the potential customer groups. What criteria of segment attractiveness will you use to select the most important target groups? On this criteria, which target segment(s) would you advise the organization to focus its marketing attention on? Are there segments you would advise the organization to discourage? Please give your reasons for your responses to these queries.

2. Re-examine the section on retention strategies on pp. 152-158. For an organization of your choice, apply the four-part framework specified in the text to it. Consider how each element in the model applies (or not) to at least some of your organization's customers. What new retention strategies might you recommend to tie these customers more closely to your organization? Provide your reasons for why you think these strategies would work.

   If you prefer, you can answer this question in your role as a customer. This would be an adaptation of question 6 on p. 161 of your text.

   
   Exercises from Chapter 7 on Service Recovery

   • Describe an instance of service failure (or less-than-desirable service) that you have either experienced or observed. Analyze the elements of service failure and the effects of any efforts made at service recovery. What did the customer (or you do) as a result of the service failure (if you know)? If you don't know, whatr would you have done in the customer's place? How does (or will) the customer's actions affect the organization in the future, in your opinion? Use the scenario that you have described to build a plan for service recovery for the organization concerned based on the principles in chapter 7.

   • For an organization of your choice, select one of the services it offers and describe it in detail (how the customer learns of it, where he/she must go to get the service, what interactions and with whom over what period of time must take place for service delivery, how much the customer him/herself must do, and whether or not there is any follow-up or satisfaction measurement at the end). [Note: the parenthetical guidelines are to stimulate you to provide lots of detail and should be treated as suggestions] then develop a guarantee for the service. Discuss potential advantages and disadvantages from the organization's point of view if it were to decide to offer this guarantee.

   Post the URL(s) for your exercises on the Webboard. Criteria for Grading. This assignment counts for 20% of your grade. I am looking for thorough and detailed analyses and application of the principles in the text. Creativity in solution or argument is always a plus.
   

   Revised 6/13/2000.