Customers Wanted III: Life of the Franchisee

In the franchisor-franchisee relationship, the franchisor provides marketing support in the form of promotions, brand identity, and back office functions. In return, the franchisee pays a kickback fee to the franchisor. Some franchisors like McDonald’s make their money off the rent of the land. Yes, McDonald’s Corporate is a landlord for all intents and purpose. Some franchisors like Subway make their money off the expansion fee. Nearly every franchisor requires its franchisees to purchase the ingredients from the franchisor either directly or from an approved provider.

Lubbock’s Living Wage

As mayor, I want to keep my people happy because happy people do not go the polls. Those happy people who do go to the polls, vote for the incumbent [me :)]. Remember, I do not have any Hugo Chavez type powers.

To keep my people happy, I have thought about increasing their wages. I read about other mayors who pass living wage requirements. I also thought about raising the minimum wage. According to the Poverty in America web site, the federal minimum wage is below the poverty line for most family types in Lubbock.

Updated Points

Your course points have been updated. Your total includes chapters 11 and 12 quizzes, the recall reflection essay, and the conjoint exercise. I treated the conjoint exercise as 4 bonus points.

Including the chapter quizzes, you have an opportunity to collect 27 bonus points out of 280 total points for the course.

Please look for your exam 3 score and case 2 score on Thursday.

Customers Wanted III: Flight of the Customer

When an ultimate customer purchases a ticket from the airline, the airline makes an explicit promise. The airline promises to fly between city A and city B at a specified time and date. On occasion, the airline breaks that promise. How the airline responds to a broken promise says a lot about how the airline feels about a relational partner, which is the ultimate customer. Let’s look at three examples.

Customers Wanted II: I Don’t Want My MTV

When we discussed Appendix A, I mentioned that MTV’s popularity appears to be on the decline. I asked how many of you watch it, and roughly, half to two-thirds went up in the air. During the Spring 2003 semester, I asked the same question, and all the hands went up. It would appear that you guys are part of a larger trend.

Customers Wanted I

When is Chrysler is for sale? When it is not. Dieter Zetsche, leader of Daimler Chrysler (hereafter DCX), says DCX remains committed to its 1998 acquisition of Chrysler Corp. For a company that is not up for sale, it is generating a lot interest. People speculate daily who will buy Chrysler; however, Chrysler is not for sale. For a company not for sale, many sharks including General Motors, Hyundai, and Toyota are circling the water.

What could these companies possibly want with Chrysler? The company boasts aging factories, a pension problem, healthcare issues, potential labor strife, few, if any, discernable brands, and mediocre engine technology? What possibly does Chrysler have to offer?

Lubbock Hearts the Car

Very few signs exist that Lubbock’s love affair with the automobile will end soon. Work continues on the new freeway that exists to move effectively people from the growing southwest Lubbock and Wolfforth areas to campus and downtown Lubbock. New housing and retail developments spring up along 98th Street like weeds. All three proposed plans for downtown Lubbock’s redevelopment show few commitments to transportation beyond the personal automobile. For drivers in Lubbock, it really is 1967.

Too bad the calendar displays 2007.

A Frosty, Frothy Idea

John M. Cardell, Jr., president emeritus as Middlebury College, proposes a change in the nation’s drinking age. He wants the age lowered from 21 to 18. He argues that the idea of a dry campus is a farce. Students purchase and consume drink alcohol regardless of law (minor in possession) or regulations (dry campus). (Good coverage from the Middlebury paper). Society in general, and colleges specifically, Cardell believes, would be better off with a lower drinking age. Current Middlebury president Ronald D. Liebowitz does not appreciate his predecessor’s comments. Pity.

Say Hello to the Social Tag

Very few disciplines possess as much knowledge about society, groups, people, and their associated behaviors. Sure, psychology looks at the individual; sociology thinks about groups; economics has econometrics (simultaneous equations). Only marketing brings these three concepts to one place.

What do we do with all this knowledge? Try to sell more stuff to the same set of consumers. Try to sell stuff to new consumers.

Shouldn’t we do more with our knowledge? Don’t we owe to society to share our knowledge in order to make our society a better place?

In the lower right hand corner, you will see a new tag. Say hello to the social tag. You will see more of it in the coming weeks.

The Assigned Podcast for the Week

A debate is starting over the educational value of podcasts. Duke’s faculty uses podcasts. Heck, Duke has not met a technology it does not like. Mississippi State and Texas Tech are exploring podcasting for use by instructors.

I have been to conferences where podcasting by instructors was discussed. During my job interview at Michigan, podcasting was discussed. The discussion of podcasts in 2007 sounds an awful like streaming video of lectures circa 2001.

Let’s suppose TTU wanted faculty to podcast. As the ultimate or end customer, what value would you find from a podcast? What would you want podcast? What value would you expect from podcasting?

UPDATE: The Journal discusses the technology efforts undertaken by Ivy League schools.