Page 290 - (DK) The Business Book

288

SEE HOW MUCH, NOT

HOW LITTLE, YOU CAN

GIVE FOR A DOLLAR

MAXIMIZE CUSTOMER BENEFITS

IN CONTEXT
The customer expects...
FOCUS
Raising quality

KEY DATES
1850 Consumer choice theory
is developed by UK economist ...high-quality goods. ...value for money.
William Jevons—according to
this theory buyers seek out
products that offer the best
value for money.
1915 US businessman But any extra features and benefits included
Vincent Astor establishes will help to maximize customer satisfaction.
the first supermarket, in
Manhattan, NY.

1971 Businessman Rollin King
and lawyer Herb Kelleher set See how much, not how little,
up Southwest, the world’s first you can give for a dollar.
low-cost airline, in Texas.
1995 The Liberal government
in Canada, under the leadership
of Jean Chrétien, manages enry Ford spotted a gap in the engine by hand to start it, but
to cut public spending by the market for a mass- later models had an electric starter.
H produced car that ordinary Ford did not opt to make customers
nearly 10 percent in their
Americans could afford. The Model pay more for this better product. In
attempt to provide taxpayers
T Ford was launched in 1908 and fact, he did the opposite. The price
with more for less.
was still selling well nearly 20 years of a Model T Ford fell every year
later. During this period, Ford from 1909 until 1916. Ford saw the
regularly improved the car. For importance of offering more for less.
example, the first version of the When cost-savings were made on
Model T required the driver to crank the production line, they were