A key factor that influences consumers’ choice of retailers, and other service
providers, is customer service. For example, many people choose to shop at
certain stores, do their banking at a particular financial institution, stay at a
specific hotel, eat at certain restaurants, or take their clothes to a particular
dry cleaner, etc., based on the level of customer service provided by that
establishment. This aspect of customer service encompasses such factors as
the level of responsiveness, friendliness, reliability, and promptness of
employees (Kerin et al., 1992; Zeithaml et al., 1988). Another key aspect of
customer service that affects consumers’ choices of retailers and service
providers is the manner in which the seller responds to customer complaints
(Goodwin and Ross, 1990). Many times consumers make their choices based
not only on the level of service provided at the time of sale, but also on their
perception of the level of customer service they can expect to receive after
the sale, should a problem arise. For example, many new car buyers choose
to buy from a particular dealership because of its reputation for prompt,
reliable, and courteous service. Likewise, many consumers shop at certain
retail stores because they know that if they encounter any problems with a
product the retailer will exchange the product or refund their money, with no
questions asked. This aspect of customer service is critical to the long-term
profitability of a firm. Firms that develop a reputation for consistently
remedying customer complaints are more likely to develop customer loyalty
and, over time, may increase their market share. Conversely, firms that
develop a reputation for not being willing to remedy their customers’
complaints may slowly lose many of their customers (see Blodgett et al.,The effects of customer service on consumer complaining behavior
Jeffrey G. Blodgett, Kirk L. Wakefield and James H. Barnes