collect, maintain, and respond to customer complaints (emails, letters, calls, etc.).

Belk has a chain of department stores across the South. Top management requires that each store manager collect, maintain, and respond to customer complaints (emails, letters, calls, etc.). Each store manager is supposed to keep a list of complaints that have been received. Top management is considering establishing a more formalized method of monitoring and evaluating the responses managers give to the complaints. They want some information that will tell them whether they need to develop such a formalized program, or whether they can leave well enough alone and continue allowing managers to use their discretion in handling the complaints. They want to review a sample of these complaints and managers’ responses to them. a. What sampling plan should be used? b. Why?

 

Case 9.1: Located on the outskirts of a large city, the suburb of Peaceful Valley comprises approximately 6,000 upscale homes. The subdivision was made 10 years ago when a developer built an earthen dam on Peaceful River, creating Peaceful Lake, a meandering 20-acre body of water. The lake became the centerpiece of the development, and the first 1,000 halfacre lots were sold as lakefront property. Now Peaceful Valley is fully developed, with 50 streets all approximately the same length, each with about 120 houses on it. Peaceful Valley’s residents are primarily young, professional, dualincome families with one or two school-age children. Peaceful Valley has not been living up to its name in recent months. The Suburb Steering Committee has recommended that the community build a swimming pool, tennis court, and meeting room facility on four adjoining vacant lots in the back of the subdivision. Construction cost estimates range from $2.5 million to $3 million depending on the size of the facility. Currently, every Peaceful Valley homeowner is billed $2,400 annually ($200 per month) for maintenance, security, and upkeep of the development. About 75% of residents pay this fee. To finance the proposed recreational facility, every Peaceful Valley household would be expected to pay a one-time fee of $3,500, and annual fees would increase to $3,600 based on facility maintenance cost estimates. Objections to the recreational facility come from various quarters. For some, the one-time fee is unacceptable; for others, the idea of a recreational facility is not appealing. Some residents have their own swimming pools, belong to local tennis clubs, or otherwise have little use for a meeting room facility. Other Peaceful Valley homeowners see the recreational facility as a wonderful addition where their children could learn to swim, play tennis, or just hang out under supervision. The president of the Peaceful Valley Suburb Association has decided to conduct a survey to poll the opinions and preferences of Peaceful Valley homeowners regarding the swimming pool, tennis court, and meeting room facility concept. Review the following possible sample methods. Indicate your reactions and answers to the questions associated with each possible method.

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