Decision Sheet for Kimura KK

1. Perceived value is the worth that a product or service has in mind of the consumer. Since, in most
cases, consumers are unaware of the actual costs of production of the commodity, this intrinsic
satisfaction that they derive from the product is what they associate as the perceived value of the
commodity.
So was the case with Kimura as well:
a. Product Requirements In terms of product, Kimura had three demands, coming from three
different individuals at the firm i.e. should meet the necessary specifications (Mr. Komoda),
should be priced right (Mr. Hashimoto) and should have superior performance metrics (Mr.
Nomura).
b. After-sales services Kimura expects faster response times to ensure minimum delay in
production process. It also expects high quality technical assistance in terms of call center or
mechanic assistance, for its workers to be able to understand the functioning of a new
machine.
c. Work Values Kimura perceives value in the work ethic of people it works with and thus
dislikes the lack of punctuality of John, the product manager.

2. The reason for Pramtexs failure in Japan was majorly the inability to understand the needs of the
customer base in Japan and adjust its product offerings accordingly. It failed to understand the
cultural difference that exists when one enters the Japanese market and the importance of work
ethic and punctuality thereafter.
Pramtex believed that the superior quality of its product offering would be sufficient to capture
the market slowly and steadily. However, what it failed to understand is that the higher quality of
product was an offering that wasnt the most sought after feature Japanese firms were looking for.
Instead they were more interested in timeliness and meeting the bare minimum requirements
while keeping the products in the necessary price line.
Additionally, it needed synchronization among its various departments like product design,
maintenance, accounting which resulted in overall poor quality of service for Kimura.
3. In the short term, there is not much that Pramtex can do in order to save Kimura as a clent, since
the major idea behind the collaboration in terms of consumer confidence is now gone. Kimura
has already refused the additional Spartacus machines and now, even Mr. Nomura has lost trust in
Pramtex.
However, in the longer run, winning back Kimura is a viable option for which Pramtex needs to
focus on improving its service quality. It needs to develop products in-tandem with the needs of
its customers.
It can also establish a dedicated support staff for its Japanese customer base, since the service
needs are higher in this culture. In order to gain back the lost trust, Pramtex will have to offer
substantial monetary incentives towards its products and have contracts wherein any further lag is
faced with penalties, thereby relieving its customers of that worry.

Name: Pranav Jain

Roll No.: 16244

Section E