When is LO inappropriate? LO13836

Mike Jay (Quarterback@msn.com)
Wed, 4 Jun 97 09:50:30 UT

Replying to LO13817 --

Edwin said:

>If LO principles were applied at my local McDonalds, how would I, as
>their customer, see it?

E,

What you would see and "feel" is that responsiveness to your desires would
improve. If the learning was ingrained in the system, you would not be
able to discern any real changes but the feel of things would change as
the subtleties that a continuously adapting system makes to conform to its
customer base as knowledge about it increases, IMO.

Edwin States:

>I think this is interesting because McDonald's recently announced that
>their special promotion celebrating their establishment in 1955, by
>selling sandwiches at 55 cents, has actually diminished sales.

E,

Is that sales dollars or number of covers? McDonalds knew going in that
they were buying share.

Edwin said:

>The price is equivalent to most other places.
>And that is not my car dealer, where I'm never sure that they have my
>best interest in mind, even though they tell me ever 30 minutes.

E,

You're not the only one...

For example, according to the 1997 Service Usage and Retention Study
published recently by Agoura Hills Calif.-based J.D. Power and Associates,
vehicle owners are more satisfied with the service provided by non-dealer
service facilities than by franchised dealers. Although Infiniti, Lexus
and Saturn are doing the best among dealers, service retailers such as
Shell, Mobil and the independent garage channels are the top performers in
overall service satisfaction, the study says.

"When it comes to choosing a service facility, non-dealers are
conveniently located and deliver reliable, quality service at competitive
prices," says Anthony J. Cohen, manager of service research at J.D. Power.
"Dealers are losing almost one out of every two customers by the fifth
year of ownership. With margins on new car sales diminishing, service has
to be a prime focus for dealers."

mike

-- 

"Mike Jay" <Quarterback@msn.com>

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>