A rewritten version of an earlier case, Xerox Corp.: The Customer Satisfaction Program. Does not provide an update and no new content is added. The new (A) and (B) case structure merely isolates the service guarantee issue.

In August 1990 the president and executive vice president of Xerox are reviewing the progress made on its customer satisfaction program. The emphasis placed on the program, the success of the program to date, and the drive to achieve the corporate goals of customer satisfaction motivate this review. At Xerox customer satisfaction is the number one priority, ahead of return on assets (ROA) and market share. The case focuses on analyzing the strategic role of the customer satisfaction program, its goals, and the action steps for implementation. Also described are the customer satisfaction measurement system, the data analyses, and follow-up. To increase customer satisfaction and to drive the organization to higher levels of performance top management believes that Xerox should offer a satisfaction guarantee. Market research has been conducted on customer responses to four different types of guarantees. A decision has to be made regarding the type of guarantee to introduce.

After several new product failures, the company began using customer input to help develop new products. In 1989, the fishing electronics industry is experiencing a downturn, and the company's sales and profits are slipping. The company, which has one product line (depth sounders) and a strong brand (Humminbird), has conducted substantial market research on three new products. Of these, one is an extension of the existing line, while the other two would be new product lines for the company. Top management is deciding which one or more of the three new products it should proceed with.

Raises some exciting issues concerning the role of product warranty as a strategic marketing tool. General Motors, in response to a sharp drop in its market share, makes a dramatic change in its warranty policy. Ford has to decide how best to respond to this change.

Raises powerful issues concerning product warranty policy as a strategic marketing variable. Also raises several exciting issues concerning the role of product policy in competitive battles, product line issues, interfunctional coordination issues, and some ethical issues. Ford Motor Co., America's third largest industrial organization, is faced with the question of how to respond to a major change in the warranty policy and philosophy of its major competitor--General Motors. Ford executives realize that their decision will have implications not only for sales, costs, and profitability, but also for several departments (such as manufacturing, quality assurance, parts and service, and extended service plans) and their dealer network.

Raises the powerful issues of measuring marketing performance in a not-for-profit services setting. Also raises several interesting ethical issues. LifeSpan Inc., a Minneapolis based not-for-profit organization is the parent holding company of three hospitals and several health services corporations. Abbott Northwestern, LifeSpan's premier hospital, adopted a very market oriented approach to increase its share of a business that was both shrinking in size and becoming increasingly competitive. The company initiated a telemarketing advertising campaign which resulted in a flood of inquiries. The marketing group would like to nearly double the advertising budget; the board of directors would like some evidence that advertising, phone calls, inquiries, and other programs lead to filled beds and increased business.