What Marketing Philosophy Is This Owner Is Expressing? Why Have You Reached This Conclusion? How Do You Evaluate the Lifetime Guarantee for This Product? How Will This Policy Contribute to the Success of This Company?

A customer asks the shoe store owner if they guarantee the products sold in their store. The owner proudly replies, "Every shoe is purchased from my store has a lifetime guarantee. If at any time you are not satisfied with your shoes, you can return them to the store for a full refund of your purchase price."

What marketing philosophy is this owner is expressing? Why have you reached this conclusion? How do you evaluate the lifetime guarantee for this product? How will this policy contribute to the success of this company? What alternative policies might you suggest instead?

The marketing philosophy being expressed by the owner is a marketing concept. The guarantee helps the owner create customer value that will further attract customers in the future and build a long-term profitable relationship.

I came to this conclusion because many firms recognize that loyal customers continue to buy when they are satisfied. If customers are satisfied, they will keep on coming back to the store to seek out other products. These types of relationships increase lifetime customer value.

I think offering the guarantee is a great way to build a relationship with the customer. In my personal life, I once drove a Volkswagen. The car would break down almost every three months. The dealership where I purchased the car really did not do much to instill my faith in the car company. They just seemed to want my money. Recently I purchased a Ford. I never have a problem with the car, plus the dealership has provided me with guarantees that if something happens to my car it will be fixed with little or no cost to me. So right out of the gate I will never purchase another VW. However, I will purchase another Ford, and I am looking forward to upgrading in the near future. By offering me these guarantees I no longer need to stress about auto repairs and I am already thinking of my next purchase. Ford won me over because they valued my business whereas VW did not. People respond to...