Handy Andy, Inc

HANDY ANDY INC.

Case 7-1

1. Is this a customer service problem? Why or why not?

The issues that Jose` Ortega discovered concerning Handy Andy are customer service problems. The customer does not recognize the separate segments of the supply chain; they only acknowledge the supply chain as Handy Andy as a whole entity. There were several “service failures” throughout this case. Although it was not noted that there were lost, damaged or incorrect deliveries; there was still a disconnect in service that left the affected customers dissatisfied. Service failures dictate crucial “moments of truth” for a retailer and its customers. These moments are vital to whether a customer will repeat business with the retailer.

The first service failure discovered was that factory distributors were stealing the current customers of the smaller retailers by discrediting the retailers and Handy Andy, Inc. The customers were told they would not get quality service unless they dealt directly with the factory distributors. It was also noted that Handy Andy’s warranty policy came under attack. Second, some customers stated that when they ordered units from the retailer, the delivery too longer than expected, some units were never installed and the installation technician rarely spoke to them. These practices undermined the customer expectations and negatively affected customer loyalty. In this case, Handy Andy’s customers are unlikely to repatronage a company that seemed untrustworthy and gave poor customer service during installation.

2. Marketing Channels are the arrangement of intermediaries (wholesalers, retailers, and the like) that the firm uses to achieve its marketing objectives. Is the problem discussed in Handy Andy’s marketing channels? Why or why not?

The problem discussed is in Handy Andy’s marketing channels. The purpose of these channels is to bridge the gap between the manufacturer and the customer and intermediaries. Conflict arises in...