Issue in Customer Relationship Management Essay Example
Issue in Customer Relationship Management Essay Example

Issue in Customer Relationship Management Essay Example

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  • Pages: 7 (1737 words)
  • Published: May 31, 2017
  • Type: Case Study
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Toys “R” Us is facing a class action lawsuit for allegedly not providing full refunds to customers who used promotional gift cards or discounts. The lawsuit claims that customers, including lead plaintiff Laura Maybaum, who received free gift cards or buy-one-get-one-50-percent-off deals were given less money than what they originally paid when returning purchased items. Maybaum spent $75 on Toys “R” Us products and received a $10 gift card but was reportedly not reimbursed the entire purchase price when she returned one of the toys.

Under California law, retailers are obligated to offer complete refunds in cash or credit, unless a more limited policy has been communicated. A recent court ruling in California authorized a settlement worth $1.1 million for Class Members who will be given a voucher of $10 discount on purchases exceeding $50. Additionally, the toy company agreed to furnish better details about their re

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turn policies relating to merchandise acquired through promotions.

Their strategy to achieve this goal involves showcasing the disclosure on point-of-sale displays. Individuals from California who have purchased Toys “R” Us toys eligible for promotions since January 1, 2008, and subsequently returned one or more items are categorized as Class Members. Furthermore, Yum Brands Inc.'s Chief Executive Officer issued an apology to Chinese consumers concerning recent unsettling matters concerning chicken supplies in their primary market on Thursday.

Su Jingshi, chairman and chief executive of Yum China issued a statement apologizing for the shortcomings in their enterprise's self-checking process, lack of internal communication, slow adjustment of suppliers, failure to notify the government about test results and inappropriate comments from employees. Yum China draws lessons from the controversy and promises to maintain thei

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self-checking campaign since 2005. They will demand suppliers be tested and improve sample-reexamination approach to prevent problematic production into Yum's logistics system. Yum China also vows to strengthen communication with authorities and report problems in time during the self-checking process. The company will raise supplier standards and apply rigid control and supervision of food safety qualifications while helping chicken suppliers adopt advanced breeding measures and administration models. Su Jingshi emphasizes that food safety remains Yum China's top priority.

Yum's staff were urged by the speaker to continue their diligent efforts, heed feedback from all sources, and work tirelessly to rebuild consumer confidence. The scandal erupted following a late December report by China Central Television (CCTV) of rampant overuse of antibiotics amongst poultry farmers in Shandong Province, where chickens were being dosed with antibiotics like amantadine and ribavirin to hasten growth and colonize overcrowded pens. This report instilled fear of a nationwide food security crisis as some of the implicated chickens had been supplied to the likes of KFC and McDonald's. The Shanghai Food and Drug Administration acknowledged that independent audits conducted over the course of 2010 and 2011 identified eight sequential chicken meat shipments from Liuhe Group Co. to these companies as contaminated.

Yum Brands Inc. reported that its China sales declined more than expected due to problems with its suppliers, particularly Liuhe, which provided chicken containing high levels of antibiotics. Yum Brands Inc. suspended all supplies from Liuhe in August 2012. Consequently, China's same-store sales fell by 6 percent during Q4 of the year, worse than its previous estimate of a 4 percent decline. Meanwhile, Lululemon Athletica Inc. attributed see-through pants to customer sizing issues.

According

to Lululemon, the reason some customers may still be experiencing see-through fabric in their yoga pants is because they are purchasing sizes that are too small. The company acknowledges that some negative comments from customers about this issue still exist on the internet and suggests that the problem may be due to a lack of opportunity for customers to have an in-store fit session with one of their educators. However, Lululemon notes that feedback about the return of their black luon bottoms has been mostly positive. The company has implemented significant changes to their product development process since the initial see-through pants controversy in March.

Lululemon is facing persistent issues that may impact the company's reputation, according to Macquarie Capital analyst Liz Dunn, who is a self-proclaimed avid user of the brand's products. In a note, Dunn warned that Lululemon has a limited time frame to fix its quality issues, or risk losing customers to rival brands. She expressed concerns with the company's messaging to customers about garment sizes and suitability for different types of exercise, which she believes leads to confusion and inconvenience for customers who move between activities. Dunn argued that customers expect to be able to perform both bending and sweating in Lululemon's high-end athletic apparel.

Dunn highlighted the outsourcing of Canadian-made clothing to Asia as a means of increasing product margins. The possibility of customers becoming more concerned with product quality following the recall earlier this year was also acknowledged. Reviews on Lululemon's website identified flaws in the company's relaunched Luon pants. One review comments, "A sales associate told me that most people had to go up a size after the fabric was

changed to eliminate sheerness."

Multiple product reviews on the website reported issues with the fabric of the pants. One customer mentioned trying a size smaller than usual, but was surprised to find that it still caused trouble. Another user called ILoveSun also conducted a "bend-over test" and found that the pants were sheer enough to reveal both their underwear and the tag on the pants. Despite this, some recent reviews had a more positive outlook and questioned why others were still experiencing transparency issues with the product.

Lululemon has faced numerous lawsuits in recent months due to the quality issues with its Luon fabric. Allegations have been made that the company failed to provide sufficient disclosures regarding the problem, which caused an artificial increase in its stock price. In mid-March, Lululemon withdrew its black Luon pants, which comprised almost a fifth of its women's pants inventory. The company revealed that the fabric used did not satisfy its standards. Consequently, the chief product officer Sheree Waterson resigned from her position in April. Lululemon has announced that it is evaluating all Luon products and ensuring that they meet the "revised specifications for modulus (stretch), weight and tolerances."

Lululemon is ensuring adherence to current standards by deploying personnel to their factories. Furthermore, CEO Christine Day has declared that she will step down from her position upon finding a successor. Additionally, the company has withdrawn from the Toronto Stock Exchange and its stocks were valued at $65.54 on the New York Stock Exchange at 5:53 pm with a decrease of 15 cents.

Customers frequently voice their grievances to US Airways regarding issues like inaccurate billing, inadequate updates on flight delays, and

subpar customer service. Meanwhile, the company's stock saw a 24 cent increase in value during regular trading hours, closing at $65.69 by 3:00 p.m. ET.

The airline has faced adverse publicity for various reasons, including a Charlotte to Toronto flight where an elderly disabled woman who sought access to her carry-on bag was allegedly verbally abused by a crew member. In another case in November 2011, a passenger had to stand for seven hours due to an overweight neighbor. Also, the company initially denied refunding a ticket for a terminal cancer patient, leading to criticism. The proposed merger of the airline with American Airlines is causing concern among experts who fear reduced flights and increased fares as potential consequences.

Grant Cardone, a customer service expert, has cautioned that Wal-Mart could face dangerous consequences if it does not improve its customer service. Across the country, customers have expressed frustration with the retailer's empty shelves. Bloomberg News' Renee Dudley attributes this problem to workforce reductions since 2008 which have resulted in employees being unable to meet demand despite opening hundreds of new locations. Wal-Mart's workforce has decreased by 120,000. Instead of relying solely on ubiquity, Cardone stresses the significance of delivering enjoyable shopping experiences for customers.

Walmart has a workforce of 2.2 million and has been receiving numerous complaints about insufficient stock, long checkout lines, and unsatisfactory customer service. According to Dudley, thousands of customers have expressed their dissatisfaction. If this issue is not addressed, Walmart could become irrelevant in size like cable TV. Cardone uses the loss of five million cable users over the past year and a half due to better alternatives being available as an example

of how seriously the internet threatens Walmart's business. Customers will migrate elsewhere if Walmart fails to take action.

Victor Ireland, a previous Wal-Mart shopper, pointed out avoiding the retailer due to their understaffed stores. According to Ireland, the long lines and lack of cashiers make checkout a nightmare, forcing him to actively avoid Walmart stores. He believes that the trouble is not worth the potential savings. On the other hand, Cardone suggests that Walmart needs to hire more associates rapidly as a negative experience can have a lasting impact on customers.

If you don't ease their lives, they won't come. McDonald's has introduced a new role to handle in-store customer service issues, by assigning individuals to obtain sauce packets and Happy Meal toys. According to an article by Julie Jargon at The Wall Street Journal, the eatery discovered that 20% of customer complaints were linked to customer service, and this figure is constantly increasing. A leaked presentation given to franchise owners confirms this finding. In order to address the problem, the corporation has established a new title titled "runner."

According to Jargon, the company plans to have a designated person to distribute cups, sauce packets and juice boxes for Happy Meals. This person will also assist in reducing confusion and freeing up time for the cashiers who are expected to thank every customer. In addition, the company is introducing a "dual-point" ordering system nationwide.

, the process entails the customer placing an order and receiving a numbered receipt. The food will be available at the other end of the counter when the number is displayed on a screen. However, Jargon highlights that a major issue for the chain is

the high turnover of employees. Due to low hourly wages, employees are less inclined to stay with the company or consider their departure. For instance, if I'm at the register and the grill isn't producing food fast enough.

According to a statement made to Jargon by a McDonald's employee, while customers get aggravated due to delayed food, the grill gets frustrated with the cashier for constantly inquiring about the whereabouts of the food.

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