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In-N-Out

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In-N-Out Case Study
1. Describe In-N-Out in terms of the value it provides for customers.
In-N-Out has really achieved in building customer relationships. In fact, it is mentioned that its customer satisfaction scores are the highest compared to any fast-food restaurant in its market areas. The average per-store sales for In-N-Out eclipse those of McDonalds and are double the industry average! The fact that there are “secret menu” items I believe adds a customer lifetime value. It has kept customers coming back and has made them share the secrets to their friends from word of mouth.
2. Evaluate In-N-Out’s performance relative to customer expectations. What is the outcome of this process?
Satisfied customers buy again and tell others about their good experiences. When people go to In-N-Out burger, they expect quality, from the slogan “Quality you can taste.” Their performance has been so successful that hey have never changed their formula. More importantly, they have never changed their menu. For In-N-Out, quality food means fresh food and they have lived up to their name. The outcome of them having great customer satisfaction has led them to have the highest scores.
3. Do you think In-N-Out should adopt a high growth strategy? Why or why not?
In-N-Out should stick to its slow growth strategy. They have been the exception to all of the rules and they have been extremely successful, exceeding everyone’s expectations! I agree that its scarcity adds to its allure. The fact that it is not found in every corner has created it to be a “go to” place whenever we are in a state that has an In-N-Out. It is put high on people’s lists of things to do. In-N-Out is a great business and their legacy continues to surprise us, they should stick to their success.
4. With so many customers drawn into In-N-Out’s “no change” philosophy, why don’t more burger chains follow suit?

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