Optimizing Service Failure and Damage Control
Journal
International Journal of Research in Marketing
ISSN
0167-8116
Type
journal article
Date Issued
2018-03
Author(s)
Abstract (De)
Should a provider deliver a reliable service or should it allow for occasional service failures? This paper derives conditions under which randomizing service quality can benefit the provider and society. In addition to cost considerations, heterogeneity in customer damages
from service failures allows the provider to generate profit from selling damage prevention services or offering compensation to high-damage customers. This strategy is viable even when reputation counts and markets are competitive.
from service failures allows the provider to generate profit from selling damage prevention services or offering compensation to high-damage customers. This strategy is viable even when reputation counts and markets are competitive.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Quantitative Economic Methods
Refereed
Yes
Publisher
Elsevier
Volume
35
Number
1
Start page
100
End page
115
Pages
16
Subject(s)
Eprints ID
263041