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# GMAT Club Series #5 : Customers

Author Message
CEO
Joined: 15 Aug 2003
Posts: 3452

Kudos [?]: 926 [0], given: 781

GMAT Club Series #5 : Customers [#permalink]

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02 Jul 2006, 13:41
5. Our customers oftentimes complain of having to spend too much time in lines in our groceries stores. They believe that we rob them of their active time and demand changes. Therefore, ......
Choose one of the following statements for the best solution to the problem above:

a. we should install bigger screens behind the cashiers' desks in order to show stock market data, a soap opera and a sports channel at the same time, as we know from our research that most of our customers are businesspeople, housewives or sports lovers.
b. we need to increase the prices on all our products a little bit during the time when we have longest lines in order to shift the people who do not want to pay more to the hours when our stores are not as busy.
c. we need to lower the prices of our products one cent per package in order to enable our customers save money during the hot hours.
d. the best solution would be to introduce a system of checkin and checkout in lines and for each minute spent in line grant our customers ten cents for future purchases.
e. we need to conduct a research of how many minutes customers of other groceries stores spend in lines in order to persuade our customers that they are better off shopping in our groceries stores than in our competitors, in case our lines move faster.

Kudos [?]: 926 [0], given: 781

Director
Joined: 06 May 2006
Posts: 790

Kudos [?]: 40 [0], given: 2

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02 Jul 2006, 13:52
D.

a) active time - may not mean necessarily watching tv.
b) that could simply mean shifting the time when the lines are longest.
c) price is not the point in contention
d) by introducing a monetary penalty on the store for delays, the service can be improved.
e) the customers are complaining about time spent in this store, not the others - it could be that they don't shop at the other stores, yet are complaining about the times here. Also, what if the queuing times turn out to be longer than average?
_________________

Uh uh. I know what you're thinking. "Is the answer A, B, C, D or E?" Well to tell you the truth in all this excitement I kinda lost track myself. But you've gotta ask yourself one question: "Do I feel lucky?" Well, do ya, punk?

Kudos [?]: 40 [0], given: 2

CEO
Joined: 20 Nov 2005
Posts: 2892

Kudos [?]: 336 [0], given: 0

Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008

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02 Jul 2006, 13:56
Thats a tough one.

May be between D and E. I think its D. If customer think they are getting robbed of then we can give them some money back in lieu of time lost.
_________________

SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

Kudos [?]: 336 [0], given: 0

VP
Joined: 25 Nov 2004
Posts: 1481

Kudos [?]: 131 [0], given: 0

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02 Jul 2006, 16:07
hmm....

D??????? giving 10 cents for each minuet (\$6 per hour)?

these questions seem the toughest ones....

Kudos [?]: 131 [0], given: 0

Senior Manager
Joined: 07 Jul 2005
Posts: 399

Kudos [?]: 14 [0], given: 0

Location: Sunnyvale, CA

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02 Jul 2006, 17:49
Another one for (D).
only one that looks promising..

Kudos [?]: 14 [0], given: 0

SVP
Joined: 30 Mar 2006
Posts: 1728

Kudos [?]: 102 [0], given: 0

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02 Jul 2006, 22:33
Will go with D.
The choice is between D and E. But E gives a solution depending on a favorable condition ( this store is better than other stores)

D does give a innovative solution

Kudos [?]: 102 [0], given: 0

VP
Joined: 07 Nov 2005
Posts: 1115

Kudos [?]: 53 [0], given: 1

Location: India

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02 Jul 2006, 22:58
D for me as well.
Real close call between D and E.
D gives a new solution that would please the customers whereas E would not necessarily make the customer happy.

Kudos [?]: 53 [0], given: 1

Manager
Joined: 03 May 2006
Posts: 51

Kudos [?]: 2 [0], given: 0

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03 Jul 2006, 02:06
I Go with E.

D gives an innovative approach but the customers may take undue advantage of system.

E gives other way of looking at the problem.

If you have two lines one is short and other is long. How will you make the shorter one longer than the other.
extend the shorter one or rub the longer one to a length less than the shorter one.

Kudos [?]: 2 [0], given: 0

Manager
Joined: 31 Mar 2006
Posts: 162

Kudos [?]: 26 [0], given: 0

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03 Jul 2006, 06:25
I think it is E..

Kudos [?]: 26 [0], given: 0

CEO
Joined: 15 Aug 2003
Posts: 3452

Kudos [?]: 926 [0], given: 781

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03 Jul 2006, 07:16

Kudos [?]: 926 [0], given: 781

Intern
Joined: 04 Jul 2006
Posts: 27

Kudos [?]: [0], given: 0

Location: Woodland Hills, CA

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05 Jul 2006, 07:08
a. Active time does not necessarily mean watching TV.
b. The question is about pleasing our customers during the hours that are convenient to them, not to us. Increasing prices might lead to the loss of customers.
c. Lower prices could mean even longer lines. On the other hand, will the amount of money saved compensate for time wasted in lines?
d. This is an innovative solution. On one hand, it will provide our customers with some benefits for their loss. On the other hand, though, this system can potentially lead to faster processing on the cashier desks as the store will lose money each minute.

Kudos [?]: [0], given: 0

Senior Manager
Joined: 06 Jul 2004
Posts: 467

Kudos [?]: 140 [0], given: 0

Location: united states

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06 Jul 2006, 20:22
well, i don't agree with D. Just because the store is shelling out money to the customers, the cashiers won't speed things up. if they do without any other changes, that means they are not working efficiently and there is a chance of improvement at the checkout counters without giving away free money to the customers.

I wish Walmart employs such system
_________________

for every person who doesn't try because he is
afraid of loosing , there is another person who
keeps making mistakes and succeeds..

Kudos [?]: 140 [0], given: 0

Current Student
Joined: 29 Jan 2005
Posts: 5201

Kudos [?]: 438 [0], given: 0

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06 Jul 2006, 20:42
(D) just seems completely impractical. Such a system would be expensive to employ and nerve racking to maintain. But, I guess it`s the lesser of the evils.

Kudos [?]: 438 [0], given: 0

06 Jul 2006, 20:42
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