Business Finance Homework Help

Part A:

Chapter 1, page 22 depicts a loyalty matrix categorizing customers along profitability and loyalty axis. Very similar to the almost identical chart used to categorize and manage menu items in restaurants. Assuming you have each engaged in hospitality/recreation/tourism businesses on frequent or infrequent basis, please study the matrix and consider the terms customer loyalty and customer equity.

For each of the four categories: Butterflies, True friends, Strangers and Barnacles… select hospitality/recreation operations that you have experience with; name one operation for which you are: one operation for which you are a butterfly consumer, one for a true friend, and one for a stranter and one operation for which you are a barnacle. Please give the name of the operation for each category and support your identification of that category using terms and concepts from both chapter 1 and chapter 2.

Example.. (I am only providing you and example for ONE of the four categories, you must do this for all four.

For ME (Haze) I am a butterfly for Ill Fornio, a small Italian chain with the nearest store in between my home and Mission College. Based on how I have been treated (recognized and acknowledged, preferences recalled, first name used by most, samples, conversation, etc.) I believe either formally or informally the GM and managers and responsible workers there have tapped into the concept of Lifetime Value (LTV: ch1, p 21) when they interact with and provide service for me. And not just me, I’ve noticed this interaction with multiple frequent patrons.

Do the same for the other categories using my example.

Where applicable, weave in specific content/terms citations from chapters 1, 2 and/or 3 as well.

You must relate (and cite) your categorizations to chapter 1 and chapter 2 terms and concepts.

Finally, do you think the concept of the loyality matrix will apply as/if/when our industries begin to come back online? Support your response.

Part B:

Many Managers view the purpose of business as making profit, whereas some view purpose as being able to create and maintain a customer. Explain how these alternative viewpoints could affect a company’s interactions with its customers. If a manager views the purpose as being able to create and maintain a customer, does this mean the manger is not concerned with profits?