How to solve a customer retention problem


Assignment:

Hands-On MIS Projects

The projects in section give you hands-on experience identifying information systems to support a business strategy and to solve a customer retention problem, using a database to improve decision making about business strategy, and using web tools to configure and price an automobile. Visit MyMISLab's Multimedia Library to access this chapter's Hands-On MIS Projects.

Management Decision Problems

1. Macy's, Inc., through its subsidiaries, operates approximately 840 department stores in the United States. Its retail stores sell a range of merchandise, including apparel, home furnishings, and housewares. Senior management has decided that Macy's needs to tailor merchandise more to local tastes and that the colors, sizes, brands, and styles of clothing and other merchandise should be based on the sales patterns in each individual Macy's store. How could information systems help Macy's management implement this new strategy? What pieces of data should these systems collect to help management make merchandising decisions that support this strategy?

2. T-Mobile has launched aggressive campaigns to attract customers with lower mobile phone prices, and it has added to its customer base. However, management wants to know if there are other ways of luring and keeping customers. Are customers concerned about the level of customer service, uneven network coverage, or data plans? How can the company use information systems to help find the answer?

What management decisions could be made using information from these systems?

Improving Decision Making: Using a Database to Clarify Business Strategy

Software skills: Database querying and reporting; database design

Business skills: Reservation systems; customer analysis

1. You will use database software to analyze the reservation transactions for a hotel and use that information to fine-tune the hotel's business strategy and marketing activities.

In MyMISLab, you will find a database for hotel reservation transactions developed in Microsoft Access with information about the President's Inn in Cape May, New Jersey. At the Inn, 10 rooms overlook side streets, 10 rooms have bay windows that offer limited views of the ocean, and the remaining 10 rooms in the front of the hotel face the ocean. Room rates are based on room choice, length of stay, and number of guests per room. Room rates are the same for one to four guests. Fifth and sixth guests must pay an additional $20 charge each per person per day. Guests staying for seven days or more receive a 10 percent discount on their daily room rates.

The owners currently use a manual reservation and bookkeeping system, which has caused many problems. Use the database to develop reports on average length of stay, average visitors per room, base revenue per room (i.e., length of visit multiplied by the daily rate), and strongest customer base. After answering these questions, write a brief report about the Inn's current business situation and suggest future strategies.

Improving Decision Making: Using Web Tools to Configure and Price an Automobile

Software skills: Internet-based software

Business skills: Researching product information and pricing

1. You will use software at car websites to find product information about a car of your choice and use that information to make an important purchase decision. You will also evaluate two of these sites as selling tools.
You are interested in purchasing a new Ford Escape (or some other car of your choice). Go to the website of CarsDirect (carsdirect) and begin your investigation. Locate the Ford Escape. Research the various Escape models, and choose one you prefer in terms of price, features, and safety ratings. Locate and read at least two reviews. Surf the website of the manufacturer, in this case Ford (ford). Compare the information available on Ford's website with that of CarsDirect for the Ford Escape. Try to locate the lowest price for the car you want in a local dealer's inventory.

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Project Management: How to solve a customer retention problem
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