Reference no: EM132244500

I was Jesse Nismith, Regional Services Manager for Toyonda. Toyonda has built itself a reputation over the years to produce high quality cars. They charge the highest price, and market their cars on the basis of the data showed that the total operating costs are lower due to fewer repairs compared to the competition. As Director of Regional Services, your job is to ensure that customers feel that they are treated fairly to ensure customer loyalty and get a positive advertisement important word of mouth from their customers.

As with any business, however, cost control is critical. Any money that allows for repairs to Toyonda customers directly discounts the company's profits. As a result, you have a performance evaluation, raises, and opportunities for progress in Toyonda largely based on each affecting customer satisfaction and cost containment. Any funds that are well spent must be justified to the Toyonda audit staff, who evaluates and You contacted one of the Toyonda agents in the Midwest of the United States about customers, Chris Jacobs, who has a transfer problem for Toyonda Camcord. The customer had purchased a "fully loaded" Camcord new. The car was a 3-year warranty / 36,000 miles standard, but now four years old and has more than 60,000 miles which clearly sets it out of the warranty. The customer had decided not to purchase the extended warranty when the car was originally purchased. The service agency identified that problem is internal to the same transmission (not a problem with the computer in the car or electronics). The Camcords, in fact for Toyondas, have a track record of providing a long vehicle life with some repairs. Toyonda takes full advantage of this fact in marketing. Camcord had this particular client one of their first production after the car line was completely redesigned including a new, stronger V6 engine (up 35 V6 horsepower from the previous year). While there were no problems

Answer the following questions, depending on your role. Answer the questions for whichever role you played, and the question for either role. Be sure to use the terms/definitions/concepts we have studied so far in this course.

For those in the customer’s role:

What sources of power did the manufacturer have? What sources of power did you have?

Once power is gained (e.g., through cultivating a BATNA, leveraging the power of one’s network, etc.), it must be decided how to actually use this power. How can the customer’s power be used constructively to foster an integrative agreement?

For those in the manager’s role:

What sources of power did the customer have? What sources of power did you have?

When acting as an agent for an organization in dealing with a customer complaint, how should one proceed when a customer begins making power claims (e.g., “I can call the Better Business Bureau,” “You will be hearing from my attorney,” etc.)? In what circumstances is it better to simply not negotiate because you hold greater power, versus negotiate in recognition of the other’s power?

For all negotiators in either role:

What other kinds of situations might one find him/herself in where power is/appears asymmetric? What steps can be taken to negotiate effectively in those situations?