Graziadio Business Report Blog

Nancy Dodd, MPW, MFA, is editor of the Graziadio Business Report and an adjunct professor of screenwriting.

Customer service has been on my mind lately, or I should say a lack thereof. Business executives budget fortunes to figure out how to attract customers while the customers they lose out the front door go unnoticed. It seems that one of the best budget expenditures a company could make would be to train their employees on how to treat customers.

For example, I moved to a new neighborhood and on the way home was fortuitously placed a grocery store from a large chain that I thought would be ideal for me to stop at to buy a few groceries. Now even though this wasn’t a prime area, it was on a busy street and it is a major grocery chain. I made my way through the panhandlers and into the store, did my shopping and went to the checkout stand. The lady in front of me was buying a fifth of some sort of liquor that she thought was on sale. The lady and the cashier got into an argument over the price of the bottle—I distracted myself with magazines on the newsstand. The lady moved on—I didn’t notice whether she left with or without her purchase—and my transaction began. Another employee, who I took to be a supervisor, walked up to the cashier and told her, “That lady called you a ‘b—-’” [I didn't hear the word clearly]. The cashier was incensed. The supervisor nodded, sighed as though her job was such a burden, and said, “Go ahead.” The cashier left in the middle of my transaction and went after the lady to do who knows what, leaving me standing there with my mouth open, while the supervisor took over the transaction. It just seemed wrong on so many levels. No, I didn’t continue to shop there. I drive way out of my way to another store from another chain. Granted this is an extreme case of bad customer service.

Continue reading ‘Businesses Pay for Lack of Customer Service’

This is a guest post by Richard M. McCabe, PhD, supporting faculty in Strategy at the Graziadio School of Business and Management, Pepperdine University

A recent Air Travel Consumer Report (February 2008) describes the continuing decline in service experienced by airline passengers in the United States. More than 24 percent of scheduled flights by U.S. airlines were late arriving at their destinations in 2007. That is almost 7 percent more late arrivals than in 2006 and continues a five-year history of increases in late arrivals. And when flights arrive late they often leave late for the next flight, over 21 percent of flights departed late in 2007. That is almost 6 percent worse than in 2006, and again continues a five-year history of increases in late departures.

Over seven checked bags were mishandled in 2007 for every 1,000 passengers, an increase of more than 4 percent over 2006. There was a 12 percent increase in involuntary denied boardings in 2007 versus 2006. Denied boardings is an indicator of selling more tickets than seats available. And consumer complaints increased about 59 percent in 2007 over 2006.

So now a merger of Delta Air Lines and Northwest Airlines appears imminent. Continental Airlines and United Airlines are reportedly discussing a merger, particularly if the Delta-Northwest merger is formally pursued. Other combinations have been discussed.

What can the various stakeholders expect if there is a significant consolidation in the U. S. airline industry?

Continue reading ‘Will U. S. Airline Consolidation Help the Industry?’