Chapter 7, Problem 7.17TE

Summary Introduction

Given scenario:

Satisfaction of the customers, quality of the product, and cost would affect the profitability and reputation of the firm. A manufacturer produced a refrigerator with a newly redesigned compressor, which would effectively cool the unit. However, the sound of the compressor was loud. There were three options. First is waiting until their customers file a complaint. Second is replacing all the compressors by voluntarily contacting the customers who bought refrigerators, which is suggested by Person R. Third is asking the customers to pay part of the cost of the compressor for repairing noisy compressor.

To determine: The view of Person R’s boss about the situation.