Sales Marketing Case 1

There are a number of factors influencing the customer’s decision and determining the direction of the relationship with the producers. This case illustrated a shortcoming of those factors and an eventual loss of the customer. The 2 companies had been cooperating for three years and it seemed like the customer was satisfied throughout the whole period and both of the companies were in a win-win situation. The problem that arose with the 2 machines was the first one and it was very important to handle it well as it was at the same time a “test” from the customers how such events would be handled. Therefore, the managers and employees of Mobile Connections should have realized the importance and the extent to which it was going to affect the future decisions of the customers.

Seemed like the customers were satisfied with the price and quality of the machines as they had been continuously buying them for 3 years. However, as problems arose they didn’t get appropriate service from Mobile Connections. First of all, although the service director was aware of the problem, he didn’t process the request of replacing them. Moreover, even after the question had been raised, he avoided honest and direct answers and this obviously resulted in customer dissatisfaction and damaged the relationship.

As we have discussed, producers aren’t the only ones making profit after sales occur. The customers also make “profit”(value) which can be represented by the customer’s value equation:

Value = Benefits received − (Selling price + Time and effort to purchase)

Applying the equation to this case, it is important to note that before the call, the benefit for the customers exceeded the sum of the price and time and effort spent for the purchase. However, after the problem occurred, it is obvious that the customer would want a suitable solution and after the request wasn’t handled well and the questions were neglected, the hassle, time and effort increased and the total value decreased...