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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 would choose to replace the fruit basket and offer free delivery for several reasons:
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Customer Satisfaction: By replacing the basket, Alison addresses the customer's immediate concern directly. This can lead to higher satisfaction and loyalty, as customers appreciate being taken seriously when they raise concerns about products.
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Maintaining Reputation: Offering free delivery along with a replacement shows that Alison values her customers and cares about their experience. It helps to mitigate potential negative reviews and bad word-of-mouth, which could harm her business.
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Business Growth: Retaining a customer is often easier than acquiring a new one. By resolving complaints effectively, Alison may encourage repeat business. Customers who feel well-treated are more likely to return.
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Long-term Profitability: Although the replacement of the fruit basket incurs an immediate cost, it fosters long-term customer relationships. Happy customers can lead to increased sales as they may recommend her business to others.
In conclusion, replacing the fruit basket and offering free delivery not only resolves the complaint but also strengthens the customer relationship, which is crucial for business success.