The Coop

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Problem Definition
Since The Chicken Coop was founded in 1974, the business had been running smoothly and generated increasing sales even during economic downturns. However, in 1995, sales slumped suddenly in many of the restaurant of The Coop. Daryl Buckmeister wanted to find out what the problem was causing sales decline, and boost revenue. And he believed successful restaurants should have high quality of food as well as service. Two VPs both suggested Buckmeister to invest in market research. Anita McMichael, VP of Quality, put emphasis on the quality of food; while Trevor Wallace, VP of Marketing, recommended focusing on brand image and customer experience. They need to reach an agreement on whether to invest in market research, how much to invest and which proposal to adopt. Alternatives

1. Quality inspection program: managers and employees in different restaurants would be informed ahead of time about this program but none of them know when they were inspected. The inspectors would disguise as customers, visit different restaurants and order different food at different times by different channels (eat in, drive through or take out). And then, they rated the whole experience from customer’s perspective. 2. Brand image monitoring survey: gathering quantitative data ensured an intensive and representative sample of potential customers of The Coop. the company would hire a market research supplier to do telephone interview of a randomly picked digital number. And the person who answered the phoned would be asked several questions regarding The Coop’s brand image. Topics included brand awareness, advertising awareness, brand trial and so on. 3. Customer experience study: The Coop would hire an outside company and choose individuals to visit The Coop’s restaurant as well as the competitor’s. And the individual had no idea which company hired him/her. Then, the individual would be asked to evaluate the experience on specific criteria. The cost was...
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