Question

Janice works as a consultant for a tech company. In the past, the company has relied heavily on its toll-free line to sell new products, as well as its numerous distribution channels. When customers are polled via a customer satisfaction survey, 93 percent of them report that one of the primary reasons they have continued to support the company is because of its quality customer service. Janice has been asked to brainstorm strategies to increase company sales. She suggests that the company employs automatic merchandising to cut costs and boost profits. Why might automatic merchandising be a bad idea for thsi company?
A. Distribution for automatic mercahndising is limited.
B. Automatic merchandising is archaic.
C. Automatic merchandising sales are impersonal.
D. It is too costly to maintain automatic merchandising around the clock.
E. It is difficult to develop effective marketing strategies for automatic merchandising.

Answer 1

Answer:

C) Automatic merchandising sales are impersonal.

Explanation:

Since 93% of the company's customers state that they value the high quality of the firm's customer service system, if you eliminate it, many of them might feel that the company does not care about them and that the whole company's quality is decreasing. A large portion of the company's sales are made through a toll free number and replacing a human salesperson with a machine is not always the best idea.

Many times it depends on what type of products you sell and who is your target market. Some products do not need a lot of explaining, but others do.  By eliminating customer service and replacing it with an automated service, you might save money but it will negatively affect the whole company.

Answer 2

Answer:

Option C.

Explanation:

Automatic Merchandising  refers to the way in which the selling of merchandise is carried out through the use of vending machines.

Automatic Merchandising can also referred to as automatic selling and it saves the company from incurring cost of labor, involving a third party directly and so on.

However, this method might be the wrong strategy to be used in the company Janice works for. This is due to the fact that the company's customers are still loyal to the company because of the quality customer service. The quality customer service that the company offers will therefore, cease to exist if the company switched to Automatic Merchandising, because sales through this method are impersonal.