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1)Calculate the amount of interest earned by investing $8,500 for 9 months at a simple interest rate of 0

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1)Calculate the amount of interest earned by investing $8,500 for 9 months at a simple interest rate of 0.40% p.m.: O $3,672.00 O $25.50 $306.00 O $8,806.00

2)Leah was charged interest of $99 for a loan amount of $3,900 that he borrowed for 150 days. What annual rate of simple interest was charged? % Round to two decimal places

3)North Hampton Clothiers, a national nature and recreation clothing brand based in New England, has a commitment to providing its customers with what the company’s Vice President of Marketing and Customer Relations calls a “kitchen sink warranty program”, meaning the company will do whatever it needs to right a customer’s problem with one of their products.

The company proudly embraces their policy, eliciting customers’ stories, which are regularly featured on their website. Stories from customers include sweaters burned by melting s’mores, backpacks clawed by bears, and boots struck by lightning; and North Hampton replaced or refunded each item, every time.

Its an expensive policy, for sure. The Vice President acknowledges that some customers abuse the policy, trading barely used items for the newest style or making a profit by returning for a full-price refund items purchased second-hand. A design defect in a product could trigger mass returns of an item. In fact, some of North Hampton’s competitors used to offer the same guarantee, but many have since returned to more traditional return policies just to limit their financial liability.

Still, New Hampton Clothiers stands by their policy with pride. They see their return policy as a sort of mascot for their customer service approach. “We love and trust our customers,” says the Vice President of Marketing and Customer Relations, “and we want them to know it! We want them to trust us, too, and that means doing whatever we can to show them that, if they have a problem, we will make it right. No matter what.”

Their approach seems to be paying off. North Hampton has topped lists across various business and industry publications when it comes to customer service rating, employee satisfaction, and brand perception. Committed customers can be found in every corner of social media singing the company’s praises and promoting their products.

Utilizing your own words, answer the following questions in detail:

• What role does North Hampton’s return policy fit into the company’s marketing mix; to which of the “four P’s” does it most closely align, and what effect does the policy have of the other elements of the marketing mix?
• In what ways does the company’s return policy influence the relationship between customers and the company’s customer service representatives?
• What characteristics and abilities should North Hampton’s customer service representative possess or be granted to ensure the return policy is exercised smoothly?
• What other considerations to policies and operations (e.g. staffing, financial, product development, etc.) should North Hampton make to support their return policy?