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Is good customer service bad for companies?

Assuming an IDENTICAL item is available at several stores . . .

  • I shop for the lowest price. PERIOD. I will buy locally or over the internet.

    Votes: 1 10.0%

  • I shop for the lowest price that I can get LOCALLY.

    Votes: 1 10.0%

  • I shop at stores that have reasonable prices and reasonable service.

    Votes: 8 80.0%
  • Total voters
    10
Melensdad

Melensdad

Jerk in a Hawaiian Shirt & SNOWCAT Moderator
Staff member
If you are a company and you provide good customer service, are you doomed to actually be lowering your company value?

We just saw Circuit City fire its most experienced sales people, the stock price is going up now.

Southwest Airlines is known for happy customers, its stock price has dropped.

But the 3 major carriers known for lackluster service to their customers (Continential, American and United) all are out-performing the stock market this year, with Continential up about 49%.

In a recent Survey by CNBC, they asked people "Would you pay more for good customer service" the resounding answer was NO. Several people gave very odd answers saying that customer service is important but they will not pay extra for the service.

Do you shop rock bottom price?
Do you shop where you get service?

Presume you are shopping for a new Dishwasher, do you shop differently for that than you would when you shop for a new computer printer?
 
Reaonable prices and service. Now let me clarify this. IF I KNOW the product I want, know that service is of no value to me, I will buy price.......

I dont give squat about a computer service warranty or contract........I can fix it.

Car, I want a quality service dept. clean, staffed well, with up to date diagnostic equipment and trained folks to use it. I dont want to hear........we dont know yet, or have to get a whatever from where ever. I have had extremely good luck with our sport trac, but it did come from a Ford dealer, even though used.

Electronics, same thing.........service makes the sale, unless $$$$ are way out of line.
 
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