A friend of yours is setting up a math tutoring service. She has asked you, "Do all services need to offer customer guarantees?" Explain your answer. Then explain why or why not she should or should not offer a customer service guarantee.
What will be an ideal response?
No. The text describes six occasions when a service guarantee is not an appropriate strategy. (1) If existing service quality in the company is poor, then a customer guarantee is inappropriate. (2) If the company already has a reputation for offering very high quality, then a customer guarantee is inappropriate. (3) There are some situations in which service quality is truly uncontrollable. For instance, your friend with the tutoring program may not want to offer a customer guarantee because the effectiveness of the tutoring rests so heavily with the effort expended by the customer. (4) When potential exists for customer abuse of the guarantee, it is inappropriate to offer one. (5) If the costs of the guarantee outweigh the benefits, then a customer service guarantee is inappropriate. (6) Companies that market low-risk products do not need to offer a service guarantee.
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