Chat with us, powered by LiveChat NCR Country Club started out as a benefit for thousands of National Cash Register employees. By the late 1990s, those employees were aging rapidly and the core membership needed to - Wridemy Bestessaypapers

NCR Country Club started out as a benefit for thousands of National Cash Register employees. By the late 1990s, those employees were aging rapidly and the core membership needed to

 

 Read and analyze the case attached and answer the questions at the end of the case. Answers should include concepts from the reading, along with any insights the student has gained from professional experience.

case is attached 

Business Research Methods, 13e/Schindler

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>cases

NCR Country Club started out as a benefit for thousands of National Cash Register employ- ees. By the late 1990s, those employees were aging rapidly and the core membership needed to be increased. NCRCC offers two golf courses. One is an award winning, championship- hosting course on the PGA tour. But it wasn’t attracting new members, especially younger families. This case is about a membership study done as part of a larger management initiative to evaluate several strategic directions the club might take to expand its member- ship. www.ncrcountryclub.com

>Abstract

>The Scenario NCR Country Club (NCRCC) started in 1954 as an employee benefit of the National Cash Register Co. but is now an open-membership club. This country club located in Kettering, Ohio (near Dayton), hosts two 18-hole golf courses. The NCR South course, a par 71 championship course of 6,824 yards of heavily wooded rolling countryside, the site of the 1996 PGA Championship, the 1986 U.S. Open, and the 1998 U.S. Mid-Amateur, is consistently ranked by Golf Digest as one of the top 100 courses in the United States. The prairie-links style of the North course, a 6,358-yard par 70 course, is considered challenging. In southwestern Ohio, the active golf season usually lasts from May through October. Within a 30-minute radius of NCRCC, the avid golfer will find eight other private golf and country clubs as well as 29 public golf clubs and courses.

In 1997, after the purchase of NCR Corporation by AT&T, AT&T provided a $4.0 million interest-free loan to raze the original clapboard-sided clubhouse and replace it with an all-brick colonial-style facility. Boasting both formal and informal, inside and outside eating facilities as well as banquet and party rooms, the members voted that the new clubhouse would be totally smoke-free. The rich cherrywood paneling and the hunter green and burgundy décor mellow the high-ceiling, interior spaces. Golf memberships are $20,000 with social (nongolf) memberships at $1,000 each. NCR employees did not and do not pay membership fees to join. Additionally, each member must spend $150 per quarter in dining receipts and pay $225 (golf) or $160 (social) in annual dues.

Needing to attract new members to support the renovated facility after AT&T divested itself of NCR and given the growing age of its members, NCRCC implemented an aggressive membership campaign in 1998. The goal was to bring golf memberships to 680 and attract as many social memberships as possible. After only moderate success, NCRCC commissioned McMahon Group to assist with strategic planning.

NCRCC: Teeing Up a New Strategic Direction

Used with permission of Pamela S. Schindler ©2001.

Business Research Methods, 13e/Schindler

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McMahon Group specializes in providing research and strategic consulting to golf clubs and full-service golfing facilities. “Golf club membership within the United States is perceived as a discretionary luxury of life. NCR faces a similar situation found elsewhere in clubs around the country—an older satisfied membership which sees no reason to change what they perceive to be a good thing,” shared Frank Vain, president of McMahon Group. “With NCR, we faced another wrinkle. Because NCR was once corporately owned, NCR retirees and current employees saw membership as an entitlement, a right.”

After McMahon’s First Impressions visit (a free on-site assessment where a club specialist tours facilities, collects information on membership and operations, and discusses industry trends with strategic planning committees), NCRCC’s board hired McMahon to provide direction and assistance to NCRCC’s strategic planning committee. “Historically, NCRCC has a 7 percent penetration rate among NCR employees. NCR’s employee pool was trending smaller, providing continuing downward pressure on NCRCC membership,” explained Vain. “With membership segments of NCR retirees (1/3 of members) and current NCR employees (another 1/3 of members) getting less numerous each year, only the segment comprised of non-NCR affiliates provides an opportunity for growth. NCRCC needs to become a stand-alone club to survive.”

McMahon Group conducted six focus groups at NCRCC on December 3–4, 1998, involving 43 members, seven nonmembers, and 12 employees. Especially among younger members (under 46) and nonmembers, a golf-only club was less attractive than the full service array that some other area country clubs offered. A consistent theme was that members did not feel they received the overall level of service at NCRCC that they expected from a fine private country club, whether it be in the dining operation or on the golf course. Staff members were frustrated that meeting the board’s profit directive was often counterproductive to a high level of service. The NCRCC board directed McMahon Group to conduct a membership study to explore the feasibility of adding additional facilities, including swimming and fitness facilities to attract younger adults and families with children.

McMahon Group distributed mail surveys to 1,650 members and their spouses in January 1999 (see Exhibit C-NCR 1–2). A return rate of 57 percent and 48 percent, respectively, netted 886 usable surveys. Data were interpreted at ±3% (or ±0.1) at the 95 percent confidence level. Due to McMahon’s extensive consulting and research experience with golf facilities nationwide, it was able to compare NCRCC’s membership survey results with those of members of 80 other country clubs.

>The Research

NCRCC: Teeing Up a New Strategic Direction

Business Research Methods, 13e/Schindler

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Overall, 72 percent of NCRCC members were either satisfied or very satisfied. This is slightly less than the 79 percent satisfaction level for other clubs. Only 12 percent are very satisfied, with other clubs averaging 21 percent. The group with the highest dissatisfaction rate (19 percent dissatisfied or very dissatisfied) was the key 55–64 age group, with the under 46 group generating 11 percent dissatisfaction. While members currently saw the club as an “Adult Golf and Dining Club” (63 percent), many believed its future would need to incorporate facilities for children, if the club were to remain competitive for new members. This was especially true for those members under age 46.

Most current members joined for golf (80 percent either important or very important) or dining (77 percent either important or very important). Most members were satisfied with golf (81 percent either satisfied [29 percent] or very satisfied [69 percent]). However, level of satisfaction was lower with the over 65 group when it came to course layout (58 percent very satisfied) and condition (77 percent very satisfied). Fewer members were satisfied with dining (49 percent either satisfied or very satisfied). However, even given some dissatisfaction, 61 percent felt their membership was a good value.

The 37th Hole, the casual dining facility, generated concerns about speed of service (27 percent either dissatisfied or very dissatisfied), professionalism of wait staff (19 percent either dissatisfied or very dissatisfied), and menu variety (36 percent either dissatisfied or very dissatisfied). The same concerns surfaced in the formal dining area, with menu variety and meal-to-meal consistency generating the highest dissatisfaction scores. It is very important for NCRCC to provide casual adult dining (95 percent either very important or important), but less so for casual family dining (78 percent), outdoor dining (69 percent), formal dining (44 percent), men’s grill (37 percent), and women’s grill (22 percent). Dining prices are seen as the same (65 percent lunch, 48 percent dinner) or higher (32 percent lunch, 47 percent dinner) than other clubs and restaurants frequented by members. Members overwhelmingly continue to endorse the no-smoking rule (97 percent formal dining, 94 percent 37th Hole, 83 percent bar/lounge).

“Members think of NCRCC as first a golf club, but the golf wasn’t meeting expectations. Second, members see NCRCC as a dining club, but the members were dissatisfied with the casual dining product and service,” shared Vain.

Survey results offered good and bad news. Additional facilities would not be attractions to most current members, but many members are interested in improving the current facilities. Fully 59 percent, however, were unwilling to pay higher dues (including 43 percent of under age 46) to obtain the changes they found attractive.

>Some Results

NCRCC: Teeing Up a New Strategic Direction

Business Research Methods, 13e/Schindler 4

“New facilities were an attraction for the non-NCR affiliated segment,” summarized Vain in discussing what McMahon Group shared with the strategic planning committee following the completion of the study. “New facilities, especially swimming, fitness, and outdoor dining, provide the best opportunity to broaden the attraction of the club.”

• 74% golf (single or family) and 24% social, with 2% corporate memberships.

• 65% are (23%) or had been (42%) employed at NCR. • 55% male, 45% female. • In each of four age groups:

• Under 46 (19%) • 46–55 (23%) • 56–65 (26%) • 66 or older (33%)

• 74% lived within seven miles of NCRCC. • 42% had been members for 20 or more years. • 78% did not have children (under age 21) living at home. • 41% belonged to a swimming/tennis club (15%) or fitness facility (26%). • 81% reside in the Kettering-Dayton area year round.

Facility Additions Swimming pool 30 60

Tennis courts 22 36 Health and fitness center 30 49

Spa 30 58 Activities For adults 26 40 For families 23 53 For children 18 47

>Who Answered the survey

All Members Members under 46 (% ) (% )

Improving the driving range (Important or Very Important) 36 Improving short game practice area

(Important or Very Important) 40

Current Facility Alterations Expanding bar/lounge (Important or Very Important) 41

NCRCC: Teeing Up a New Strategic Direction

Business Research Methods, 13e/Schindler

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1 Build the management-research question hierarchy, through the investiga- tive questions stage. Then compare your list with the measurement questions asked.

2 Given the research question, how appropriate were the measurement questions?

3 Describe the sampling strategy. How appropriate were the various sam- pling design decisions?

4 What, if any, problems did you find with the questionnaire as a whole? Consider structure, directions, question order, question phrasing, appropri- ateness of response strategy chosen, etc.

5 If you were McMahon Group, how would you present the findings of your study to the NCRCC board? Explain the rationale for your chosen method.

6 Given the data presented in the case: 7 What would you recommend to the board of NCRCC with respect to

adding facilities like tennis courts, a swimming pool, a spa, a fitness center, and a year-round driving range?

8 What would you recommend to the board of NCRCC with respect to adding or changing programming activities like social activities for adults, families with children, and children?

9 What would you recommend with respect to changing current operations?

>>>>>Discussion

>Sources Frank Vain, president, McMahon Group, provided the instrument and data with the permission of Larry Appleby, general manager, NCR Country Club in November 1999.

Used with permission of Pamela S. Schindler and Donald R. Cooper, Business Research Methods, 7/e, Burr Ridge, IL: McGraw-Hill, © 2001.

NCRCC: Teeing Up a New Strategic Direction

INSTRUCTIONS:

Please complete the questionnaire, answering all questions that pertain to your interests at the Club. If you do not par- ticipate in a particular Club activity and do not feel qualified to respond to the questions regarding that activity, please leave those questions blank or indicate “No Opinion” and move on to the next question. Note: Space is provided at the end of the questionnaire for your written comments and suggestions.

Completed questionnaires should be mailed in the enclosed postage-paid envelope by the date printed on the cover let- ter directly to McMahon Group at 884 Woods Mill Road, Suite 201, St. Louis, MO 63011.

IMPORTANT: Completely fill in the ovals that correspond to your answers for each question with either a pen or a pen- cil. The surveys will be electronically scanned. Please do not make extra marks on the questionnaire except in the space provided for written responses at the end of the survey.

1. Please indicate your “overall” satisfaction with NCR Country Club:

2. Which of the following best represents what you feel (1) is currently and (2) should be the primary purpose of NCR Country Club? (Please mark only one per column.)

(1) Currently (2) Should be

A family oriented, full service country club with activities for children. ❍ ❍

An adult oriented, full service country club with limited activities for children. ❍ ❍

A golf and dining club primarily for adults. ❍ ❍

A golf club primarily for adults. ❍ ❍

3. Using a scale from “5” (Very Important) to “1” (Very Unimportant), how important were each of the following to you in your decision to join NCR Country Club?

To meet new friends ❍ ❍ ❍ ❍ ❍

Club location

—in relation to home ❍ ❍ ❍ ❍ ❍

—in relation to work ❍ ❍ ❍ ❍ ❍

Club social functions ❍ ❍ ❍ ❍ ❍

EXHIBIT C-NCR 1–2 NCR Country Club Membership Survey*

(continued)

*This survey has been reformatted from its original design to fit the specifications of this text. Neither the questions nor the essence of the design has been modified.

Fill in your answers like this �

Not like ❍� or ❍✗ or ❍

(1) Currently (2) Should be

(5) Very (4) (3) (2) (1) Very Important Important Neutral Unimportant Unimportant

(5) Very Satisfied (4) Satisfied (3) Neutral (2) Dissatisfied (1) Very Dissatisfied

❍ ❍ ❍ ❍ ❍

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(5) Very (4) (3) (2) (1) Very Important Important Neutral Unimportant Unimportant

(5) Very (4) (3) (2) (1) Very Satisfied Satisfied Neutral Dissatisfied Dissatisfied

Friends were/are members ❍ ❍ ❍ ❍ ❍

Parents were/are members ❍ ❍ ❍ ❍ ❍

Exclusivity of club’s members ❍ ❍ ❍ ❍ ❍

Affiliation with NCR Corporation ❍ ❍ ❍ ❍ ❍

Competitive initiation fee ❍ ❍ ❍ ❍ ❍

Private parties/banquets ❍ ❍ ❍ ❍ ❍

Reputation of club ❍ ❍ ❍ ❍ ❍

Dining ❍ ❍ ❍ ❍ ❍

Golf ❍ ❍ ❍ ❍ ❍

Availability of 36 holes of golf ❍ ❍ ❍ ❍ ❍

“Top 100” ranking of golf course ❍ ❍ ❍ ❍ ❍

4. Please indicate your satisfaction with these characteristics of your Club’s Board of Trustees, Committees, and Management:

BOARD

Communication with the membership ❍ ❍ ❍ ❍ ❍

Degree to which board is representative of membership ❍ ❍ ❍ ❍ ❍

COMMITTEES

Effectiveness of Club committees ❍ ❍ ❍ ❍ ❍

MANAGEMENT/STAFF

Effectiveness of Club management ❍ ❍ ❍ ❍ ❍

Responsiveness to member questions and suggestions ❍ ❍ ❍ ❍ ❍

Overall level of service provided by Club’s management & staff ❍ ❍ ❍ ❍ ❍

5. Please indicate how important each of the following Club activities/services is to you and also how satisfied you are with each:

Rating scale: 5 = Very satisfied, 4 = Satistifed, 3 = Neutral, 2 = Dissatisfied, 1= Very dissatisfied, N.O. = No opinion

Rating scale: 5 = Very important, 4 = Important, 3 = Neutral, 2 = Unimportant, 1 = Very unimportant, N.O. = No opinion

736 CASES

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CASES 737

(5) Very (4) (3) (2) (1) Very Satisfied Satisfied Neutral Dissatisfied Dissatisfied

SATISFACTION IMPORTANCE

5 4 3 2 1 N.O. 5 4 3 2 1 N.O.

Golf ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Dining ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Club social functions ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Private parties ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Children’s activities ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Family activities ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

6. Please respond to the following statement: “I receive good value for the cost of my membership at NCR Country Club.”

7. Please respond to the following statement: “There are a sufficient number of social activities at the club that appeal to my age and interest group.”

8. Do you have access to the Internet?

❍ Yes ❍ No

Are you aware the club has an Interent website?

❍ Yes ❍ No

Would you like e-mail notifications from the Club on a regular basis?

❍ Yes ❍ No

9. Please indicate your satisfaction with the following aspects of the Club’s newsletter, The Mulligan, and also Club communication in general.

Newsletter Content

Notification of upcoming events ❍ ❍ ❍ ❍ ❍

Membership activities and stories ❍ ❍ ❍ ❍ ❍

Club business (reports from board committees) ❍ ❍ ❍ ❍ ❍

Newsletter appearance/format ❍ ❍ ❍ ❍ ❍

Newsletter timeliness ❍ ❍ ❍ ❍ ❍

Club communication in general ❍ ❍ ❍ ❍ ❍

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No opinion

❍ ❍ ❍ ❍ ❍ ❍

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No opinion

❍ ❍ ❍ ❍ ❍ ❍

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Business Research Methods, 13e/Schindler 8

738 CASES

Rating Scale: 5 = Very satisfied, 4 = Satisfied, 3 = Neutral, 2 = Dissatisfied, 1 = Very dissatisfied, N.O. = No opinion

Section II. Golf

IF YOU ARE NOT FAMILIAR WITH THE GOLF FACILITIES AND OPERATIONS, PLEASE SKIP TO THE NEXT SECTION OF THE QUESTIONNAIRE.

10. Please indicate your satisfaction with these aspects of the SOUTH and NORTH golf courses:

SOUTH COURSE NORTH COURSE

5 4 3 2 1 N.O. 5 4 3 2 1 N.O.

Course layout ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Overall course condition ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Course landscaping (flowers and plantings) ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Tee box condition ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Condition of fairways ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Condition of greens ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Condition of bunkers ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

SOUTH COURSE NORTH COURSE

5 4 3 2 1 N.O. 5 4 3 2 1 N.O.

Irrigation ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Drainage ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Condition of cart paths ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Course restrooms ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Availability ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Condition ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Availability of drinking water ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Beverage cart availability ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

11. Please indicate your satisfaction with these aspects of the golf operations at the Club:

(answer survey for question 11 on the following page)

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CASES 739

(5) Very (4) (3) (2) (1) Very No

Satisfied Satisfied Neutral Dissatisfied Dissatisfied Opinion

Golf Pro Shop

Interior appearance ❍ ❍ ❍ ❍ ❍ ❍

Pro Shop cleanliness ❍ ❍ ❍ ❍ ❍ ❍

Merchandise selection ❍ ❍ ❍ ❍ ❍ ❍

Pro Shop service ❍ ❍ ❍ ❍ ❍ ❍

Pro Shop prices ❍ ❍ ❍ ❍ ❍ ❍

Pro lessons ❍ ❍ ❍ ❍ ❍ ❍

Bag drop service ❍ ❍ ❍ ❍ ❍ ❍

Bag storage and club cleaning service ❍ ❍ ❍ ❍ ❍ ❍

Cart service ❍ ❍ ❍ ❍ ❍ ❍

Cart cleanliness ❍ ❍ ❍ ❍ ❍ ❍

Practice range

Condition ❍ ❍ ❍ ❍ ❍ ❍

Size ❍ ❍ ❍ ❍ ❍ ❍

Range ball condition ❍ ❍ ❍ ❍ ❍ ❍

Speed of play ❍ ❍ ❍ ❍ ❍ ❍

Tournaments

Quality ❍ ❍ ❍ ❍ ❍ ❍

Value for price ❍ ❍ ❍ ❍ ❍ ❍

Format of tournaments ❍ ❍ ❍ ❍ ❍ ❍

Adult golf programs (i.e., leagues) ❍ ❍ ❍ ❍ ❍ ❍

Junior golf programs ❍ ❍ ❍ ❍ ❍ ❍

Tee time reservation system ❍ ❍ ❍ ❍ ❍ ❍

Halfway House

Hours of operation ❍ ❍ ❍ ❍ ❍ ❍

Service ❍ ❍ ❍ ❍ ❍ ❍

Menu variety ❍ ❍ ❍ ❍ ❍ ❍

12. How do you feel about the overall use of the golf course as it now exists at the club?

(5) (4) Somewhat (3) (2) Not Quite (1)

Excessive Excessive Fine as Is Dissatisfied Not Enough

Amount of time available for casual, open member play ❍ ❍ ❍ ❍ ❍

Amount of time permitted for guest use ❍ ❍ ❍ ❍ ❍

Amount of time available for junior play ❍ ❍ ❍ ❍ ❍

(continued)

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(5) (4) Somewhat (3) (2) Not Quite (1)

Excessive Excessive Fine as Is Dissatisfied Not Enough

Number of member-scheduled events/tournaments ❍ ❍ ❍ ❍ ❍

Number of nonmember outings on Mondays ❍ ❍ ❍ ❍ ❍

Number of nonmember outings on days other than Mondays ❍ ❍ ❍ ❍ ❍

13. Please respond to the following statement: “If the Club had a caddy program I would support the program and use caddies on a regular basis when I play golf.”

14. Please indicate your satisfaction regarding these aspects of the dining in the 37th HOLE, the MEMBERS’ DINING ROOM, and for PRIVATE PARTIES:

MEMBERS’

37th HOLE DINING ROOM PRIVATE PARTIES

5 4 3 2 1 N.O. 5 4 3 2 1 N.O. 5 4 3 2 1 N.O.

Service:

Staff appearance ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Speed of service ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Friendliness of wait staff ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Professionalism/ training of wait staff ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Food:

Quality—Food well prepared ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Food presentation (visually pleasing) ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Meal-to-meal consistency ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

Menu variety ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍ ❍

(continued)

(5) Strongly Agree (4) Agree (3) Neutral (2) Disagree (1) Strongly Disagree No opinion

❍ ❍ ❍ ❍ ❍ ❍

Rating scale: 5 = Very satisfied, 4 = Satisfied, 3 = Neutral, 2 = Dissatisfied, 1 = Very dissatisfied, N.O. = No opinion

740 CASES

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