Review Case 7.1, Handy Andy, Inc. (pp. 127–130). Submit your analysis with recommendations to answer Questions 1 through 7 (page 129). You can find a Grading Rubric located in the Files section of the Course Menu.

1.Is this a customer service problem? Why or why not?

2. It appears that the factory distributors are exploiting the licensed retailers. Yet from what we can tell, Handy Andy in St. Louis has heard no complaints from the licensed retailers. Why wouldn’t they complain?

3. What should Handy Andy’s marketing vice president do? Why?

4. In the case is the statement, “The factory distributors in these few cities indicated that they, not Handy Andy, Inc., stood behind the one-year warranty.” Is this a problem for Handy Andy? Why or why not?

5. Bixby, Booher, and Ortega recognize that Handy Andy needs a better way to learn about the buyer’s installation experience. One alternative is to add an open-ended question, dealing with the installation experience, to the warranty activation form. Another alternative is to e-mail a brief survey about the installation experience within three to five days of receiving a warranty activation form. Which of these alternatives should Handy Andy choose? Why?

6. Discuss the pros and cons to allowing Handy Andy trash compactors to be sold only through licensed retailers (i.e., factory distributors would no longer be able to sell to consumers).

7. Is it too late for Handy Andy to attempt service recovery with customers who reported a less-than-satisfactory installation experience? Why or why not?