Costco Wholesale Corporation

Costco Wholesale locoweed, which was established in 1983 as a single store in Seattle, became the biggest social rank wargonhouse union chain the world, employing the so-c completelyed less-is- more(prenominal) concept. With such(prenominal)(prenominal) concept, Costco Wholesale Corporation also looks upon themselves as the membership w behouse club that has the capability to sell top-quality food, hardlines, softlines, and round other pricys usu on the wholey in a large number or people quantity at the lowest possible outlay. Costco now has over 457 stores which ar situated in most parts of the United States and is still growing.Their victor was mainly attri howevered to their sales volume, good consumer acceptance, generally good services and node financial aid, and the lowest possible price offered. Furthermore, Costco sells, provides or displays items or intersection points from limited suppliers or from a small number of suppliers. Variety of items is also reduced a nd this is through to reduce the risk of purchase decision and encourages a consumer to buy such product or service. Another benefit of this is that loyalty on a authoritative product or service is created or remediated.The corporations goal is to provide more discounts and affordableer prices to the customers, focusing more on the customers, earlier than to the competition. It is able to provide lower cost and greater discounts because the corporations marketing style is to reduce overhead cost by trim back fancy outlet designs, taking almost all(prenominal)thing to simplicity. Costco also pays to its workers and employees, giving them good salaries and benefits, resulting to the tremendous low rates of theft and turnovers by its employees.Since Costco is known for its cheap prices and sales in large or bulk quantities, it had created policies, adept analogous other competing membership warehouse clubs, regarding merchandise restitutions and exchanges. Costco had been form ulating and had been modifying its product guarantys in auberge for their goal and or concept to be followed. These fastens, in order to improve a contrast quality or to be used as stepping stones for a corporations growth, such as the Costco, must be effective.Costco Wholesale Corporation provides information regarding the guarantees that they offer on products and memberships, but it seems that their guarantees start out from one Costco branch to the other. In Costco found or established Japan, What is Costco? their guarantee states that COSTCOS UNCONDITIONAL DOUBLE GUARANTEE on merchandise We guarantee your expiation on every product we sell with a large refund. On membership We will refund your membership fee in full at two time if you are disgruntled. With regards to the corporations guarantee, a policy regarding computer returns was created.This is in relation to Costco (Japan) unconditional double guarantee. Costcos return policy, What is Costco? , states COSTCOS COMPUTER RETURN POLICY Costco Wholesales return policy for all background knowledge and notebook computers is six months from the hear of purchase. After six-months from the date of purchase, all services and technical support will be work to the applicable remaining manufacturers warranty. While on the other hand, the guarantee of Costco Wholesale Corporation in their online store, Costco Returns, states that Costco.com Costco guarantees your satisfaction with the merchandise you purchase from us. Costco. com products may be returned to any of our hundreds of Costco warehouses worldwide. Or, if you wish to return or exchange merchandise direct to costco. com, spot us at customer service. Effective November 4th, 2002, Costco Wholesales desktop and notebook computer return policy is six-months from the date of purchase. After six-months from the date of purchase, all service and technical support will be subject to the applicable remaining manufacturers warranty. According to C hristopher W. L.Hart, effective guarantees must be unconditional, meaning(prenominal), booming to understand, easy to invoke, and easy to collect (72). A guarantee is said to be easy to understand and communicate if the guarantee that is created is written in a simple manner, using concise language and directly state what the guarantee is about or what it offers. This is done in order for customers and employees to know or learn what to expect and what is expected of them, respectively. Evaluating the guarantee stated by Costco in Japan, it layaboutister be observed that it is thusly easy to understand, and is easily communicated.It clear states in its guarantee on the merchandise, that they jackpot provide satisfaction to the customers for every product that they sell and directly states a promise to give a full refund, in cases that the former statement is not fulfilled. Also, with regards to their membership, it was also directly stated that if a customer was disappointed or frustrated, they (Costco), would give a full refund. Furthermore, with regards to some items or products they sell under the exemption of a full refund, the policy regarding these products is also clearly stated.Evaluating the guarantee given by Costco in their online store, though understandable, it is not easily understood as compared to the antecedent guarantee. It does not state the companys promise, or what the company would do or give in return if a customer becomes dissatisfied with their goods and services. Subject to the applicable remaining manufacturers warranty seems vague and that customers would already think twice when it comes to invoking refunds. The guarantee stated at Costcos online store (costco.com) should be stated in fewer words, pinpointing more on the necessary information, terms, and policies. With regards to a meaningful guarantee, two considerations or concerns are raise by Hart. A guarantee is said to be meaningful, first, if the guarantee provided by the company or corporation addresses the service that is of most importance to the customers. Second, a guarantee is said to be meaningful or of good quality, if it is meaningful financially or that a guarantee should focus on what a customer would enjoy more.The guarantee stated by Costco in Japan, is indeed meaningful, as it noticeably indicates that it would provide full refund for both products and membership fees. In this guarantee, price, which is considered by Hart as the most important agent for a meaningful guarantee, is evident. Costcos guarantee is meaningful relative to the price of the product or service. Costco would return the price which the customer paid, in full, if the customers are not satisfied with their products or services.On the other hand, the online store of Costco only states or offers a return or exchange of a product bought by an unsatisfied consumer. One meaningful thing is that in the statement of their guarantee, the customers are informed that t hey founder several outlets or that stores where the customer could return or exchange the merchandise. This helps the customers by immediately identifying where customers could go or convey their problems. Again, discontinue promise or customer return should be created, or if such promise or payback exists, it should be clearly declared in their guarantee or policy.In the further evaluation of a good guarantee, a guarantee is said to be easily invoked by customers if the process that a customer has to take is simple, trouble-free and undemanding. The process of invoking a full return of a good or service should be straightforward and unsubdivided or understandable. This will help customers who are already displeased, to favor or buy again such goods or services by the business establishment. In addition to an easily-invoked guarantee, Hart states that customers should not be made to olfactory perception guilty about invoking the guarantee no questioning, no raised eyebrows, or Why me.Lord? looks. A company should encourage unhappy customers to invoke its guarantee, not put up roadblocks to keep them from speaking up (5). Looking on Costcos guarantee on this aspect, complains, letters and calls conveyed to the customer service of Costco can be used. How Costco responds to these complaints and the measures they take to help the customers and the process of invoking a refund can also looked into. The process of invoking a refund is easy. There are no forms to be filled or series of questions to be answered.A customer just needs to bring the product to the Costco warehouse. From the statement of the guarantee in Costcos online store, it was stated that there are a lot of Costco warehouses where the customer can return or exchange the product, though a list of these warehouses were not given. Some reported complaints were about growing membership bills even if a customer had already left the list of Costcos members. Also, there were some complains regarding Costcos customer service or how Costco deals with complains or requests from customers.With regards to these complaints, Costco creates ways of part these customers in other ways or that, in most cases, the managers take aim letters of apologies to unsatisfied customers. There was an incident that a customer was communicate for the tires he bought to be installed in the front of his minivan (Consumer complaints about Costco tires). Costco did not respond to this request and kept a firm stand that these new focalise of tires should be installed in the rears. Costco states that it is best for the tires to be installed in the rears, even if the vehicle was a front wheel drive.They offered a video and articles stating or reason their claim regarding the installation of tires on the rears. Major sales repre displaceative Chris Biggers, sent a letter in solvent to the complaint regarding the installation of tires on the rears and stated that Costco aims or looks on the safety of b oth its employees and members (the consumers). With regards to the treatment of Costco employees and managers to the discontent customers, I think that Costco tries their best in addressing the complaints and that they still maintain a good blood with the consumers.Other wholesale corporations such as the Wal-Mart experience the akin complaints, worst, they have more. Wal-Mart had been continuously complained because of their unfriendly treatment with customers. Their customer service and care was insufficient and sometimes, there are incidents of discrimination. Costco on the other hand have strong principles that they apply for the benefit of consumers and that they humble themselves to maintain the good relationship that they have with the customers.It is just that customers are already harried that they fail to see the efforts of Costco in helping them. Further personnel grooming and teambuilding should also be exercised by the company in order to nicely and properly address disgruntled customers, most especially those with tempers. There were complains filed against Costco, stating that their refunds or certain products were not being received by the customers or that Costco is unavailing to give the necessary benefit or compensation for a scant(p) service or low-quality product.If a refund was promised, the problem was that no certain dates of such reimbursement were given by the customer service, oftentimes resulting to unclaimed refunds. In terms of the refunds, Costco is at the losing end. Costco provides the cheapest price as much as possible, by keeping a mark up that is not higher(prenominal) than 14 percent for unbranded products or items and mark up not higher than 15 percent for non-private-labeled items, unlike its competitors who has mark ups up to 25 percent, or even 50 percent.Suppliers also exert pressure on Costco regarding product returns. I recommend improved customer service hotlines or more customer service centers that are acces sible to the consumers for easier management of complaints and quick response to customer needs. Also, the policy regarding the guarantee they provide should be further developed, but taking importance not to render the guarantee impractical for both the company and its consumers. Works CitedConsumer Complaints About Costco Tires. 2004. ConsumerAffairs. Com Inc. grand 31, 2007. . What Is Costco? Japan, 2005. Costco Wholesale Japan, Inc. and Costco Wholesale Corporation. August 31, 2007. . Greenhouse, Steven. How Costco Became the Anti-Wal-Mart. The New York Times, 2005. Hart, Christopher W. L. The Power of Unconditional Service Guarantees. The McKinsey Quarterly, 1989.