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Alison runs a small business making individually designed cakes - Edexcel - GCSE Business - Question 20 - 2017 - Paper 1
Question 20
Alison runs a small business making individually designed cakes. She is very keen to expand her business by offering baskets of fresh fruit as an alternative for cus... show full transcript
Worked Solution & Example Answer:Alison runs a small business making individually designed cakes - Edexcel - GCSE Business - Question 20 - 2017 - Paper 1
Step 1
Option chosen: Replace the fruit basket and offer free delivery
Answer
I believe Alison should choose to replace the fruit basket and offer free delivery. This option focuses on customer satisfaction and retention.
Firstly, by replacing the item, Alison demonstrates that she values her customers' feedback and is willing to rectify any issues. This can enhance customer loyalty, as they are more likely to return if they feel their concerns are taken seriously.
Secondly, offering additional benefits, such as free delivery, can reinforce positive feelings towards the business. Customers appreciate added value, and this approach may help to mitigate the negative perception resulting from the initial complaint.
Finally, happy customers often share their positive experiences with others, which could lead to increased word-of-mouth referrals and a better overall reputation for Alison's business. Hence, this option not only addresses the immediate complaint but also contributes to long-term business growth.