Answered: isn’t covered by our guarantee.”…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

Case Study: Force Majeure How to attract more customers from companies in the local business park was the topic of this month’s meeting of departmental managers. The group was confident of its ability to deliver, so they adopted and widely advertised a quality guarantee for local businesses: “If anything goes wrong, the room rate is on us!” An out-of-town representative of Allied Manufacturing, a nearby industry, has been in the hotel for two (2) nights. There was no hot water last night or the morning of the third day. The guest mentions to the concierge staff as he goes through the checkout procedure, “I think I’ll take advantage of your qualityguarantee.” “Yes, sir,” said the concierge. “Please wait while I get the manager.” It was almost 15 minutes before the hotel manager appears. “Good morning. The agent has told me about your request, and I would like to comply. There’s no water because the boiler is down. It’s an act of God, a force majeure, so, as I have told other guests, the situation isn’t covered by our guarantee.” Questions: 1. Do you think there was a management failure? If so, what is it? 2. What is the hotel’s immediate response (or action) to the incident? Is it enough orjustifiable? 3. What further, long-run action should the management take if any? Justify your answer.

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