HOW A PRISONER’S DILEMMA

ILLUSTRATES THE INFLUENCES OF

CUSTOMER SERVICE

WRITTEN BY HAFSA JAHAN

HOW A PRISONER’S DILEMMA ILLUSTRATES
THE INFLUENCES OF CUSTOMER SERVICE
WRITTEN BY HAFSA JAHAN
 THE DIRECT ONE-ON-ONE CONNECTION
BETWEEN A CUSTOMER MAKING A
PURCHASE AND A REPRESENTATIVE OF THE
BUSINESS SELLING IT IS KNOWN AS
CUSTOMER SERVICE. AN IMMEDIATE
RESPONSE WITHIN THE FIRST FEW
MINUTES AFTER YOU SUBMIT A SUPPORT
TICKET ON A COMPANY'S WEBSITE WILL
PROBABLY LEAD TO A FAVORABLE
IMPRESSION OF YOUR BRAND.

 EFFECTIVE CUSTOMER SERVICE ENSURES

BRAND LOYALTY ONE CONSUMER AT A
TIME, WHICH IS ESSENTIAL FOR
CORPORATE SUCCESS. MAKING CONSUMERS
HAPPY AND GIVING THOSE POSITIVE
EXPERIENCES WITH THE FIRM IS VIEWED
AS A CRUCIAL COMPONENT OF BUSINESS
STRATEGY.

INSTEAD OF JUST BEING THE FIRST IN A

LENGTHY CHAIN OF RED TAPE AND
BUREAUCRACY STANDING BETWEEN THE
CLIENT AND A SOLUTION TO THEIR
PROBLEM, THEY WILL GIVE THEIR
SUPPORT REPRESENTATIVES THE
AUTHORITY TO MAKE DECISIONS THAT
WILL BENEFIT THE CONSUMER RIGHT
AWAY.

 THEY LOOK FOR CUSTOMER ISSUES THAT

HAVEN'T YET BEEN REVEALED TO THEM
SINCE THEY UNDERSTAND THAT NOT
EVERY CUSTOMER CONTACTS THEM WHEN
THEY HAVE A PROBLEM. THEY DON'T JUST
SOLVE THE PROBLEMS THAT ARE BROUGHT
TO THEM. ONE OF THE MOST WELL-KNOWN
APPLICATIONS OF GAME THEORY IS
PRISONER'S DILEMMA.

EVEN IF AN INDIVIDUAL WILL MOST

LIKELY GAIN FROM A DECISION THAT
BENEFITS HIM OR HER, WHEN OTHERS ARE
SELF-CENTERED AND ONLY CONSIDER
THEIR OWN INTERESTS, IT CAN RESULT IN
NOTHING LESS THAN DISASTER FOR THE
ENTIRE GROUP. THE MAJORITY OF PEOPLE
COOPERATE WITH ONE ANOTHER AND
PRESUME THAT OTHERS WILL DO THE
SAME. THIS IS WHY LATER GAME
THEORISTS BEGAN TO CONSIDER THE
CONCEPT THAT PERHAPS PEOPLE DECIDE
WHAT TO DO BASED ON THE LONG-TERM
EFFECTS.

 GAME THEORY IS OFTEN USED TO GUIDE

DECISION-MAKING IN CONFLICTS
INVOLVING AT LEAST TWO PLAYERS WHEN
A PLAYER'S YIELD WILL DEPEND ON OTHER
PLAYERS. COOPERATION IS CRUCIAL WHEN
THE GAME CONTINUES, AS PRISONER'S
DILEMMA REMINDS US. THE ITERATED
PRISONER'S DILEMMA, IN WHICH THE
GAME IS CONTINUOUSLY REPLAYED AND
YOU CAN BASE YOUR MOVEMENTS ON YOUR
OPPONENT'S, IS A FAR MORE INTRIGUING
PROBLEM BECAUSE THERE IS NO WAY TO
GRASP YOUR OPPONENT'S STRATEGY IN A
ONE-TIME INTERACTION.

 THE PRISONER'S DILEMMA OFFERS A

FRAMEWORK FOR ANALYZING HOW TO
BALANCE COLLABORATION AND
COMPETITION, MAKING IT A USEFUL TOOL
FOR STRATEGIC DECISION-MAKING.
CUSTOMER SERVICE AND BUSINESS ARE
TYPICALLY LONG-TERM ENDEAVORS. THE
GAME'S REPETITION ENABLES THE
DEVELOPMENT OF TACTICS THAT DIFFER
FROM THE CONVENTIONAL REASONING OF
A SINGLE ROUND.

 A WELL-KNOWN ANALOGY FOR THE

DIFFICULTY OF FINDING SOLUTIONS TO
PROBLEMS INVOLVING GROUP ACTION IS
THE PRISONER'S DILEMMA. A DUOPOLY, OR
TWO SELLERS IN A MARKET WITH NO
OTHER COMPETITORS, CAN SERVE AS AN
ILLUSTRATION. IF BOTH HAVE HIGH
PRICES, THEY EACH MAKE HALF OF THE
PROFIT. IF ONE LOWERS PRICES A LITTLE,
IT WILL BE ABLE TO MAKE ALL OF A
LITTLE SMALLER PROFIT WHILE THE
OTHER FAILS.

 HOWEVER, IF BOTH PARTIES BEGIN

LOWERING THEIR RATES, THE SITUATION
WILL ONLY END WHEN NO PARTY IS
MAKING ANY MONEY. IN THE PRISONER'S
DILEMMA GAME, BOTH PLAYERS WOULD
PREFER THE OUTCOME IF THEY MADE
UNSELFISH ACTIONS AS OPPOSED TO
SELFISH ONES. OF COURSE, THERE ARE
CIRCUMSTANCES IN WHICH IT IS MORALLY
PERMISSIBLE TO BENEFIT ONESELF AT THE
EXPENSE OF OTHERS.

 THEY MUST ALSO LEAVE SOMETHING

BEHIND SO THAT ONE'S CONSUMERS FEEL
APPRECIATED. IT IS LIKELY THAT A
BUSINESS WILL MAINTAIN MORE BUSINESS
WHEN IT PLACES A HIGH EMPHASIS ON
DEVELOPING CLOSE BONDS WITH ITS
CLIENTS THROUGH THOUGHTFUL
INTERACTIONS. THE PRISONER'S DILEMMA
EXPLAINS INDIRECTLY WHY EXCELLENT
CUSTOMER SERVICE IS EFFECTIVE AND
HOW COOPERATION HAS CHANGED
THROUGHOUT SOCIETY.

 CUSTOMER SERVICE SHOULD, WHEREVER

POSSIBLE, BE A ONE-STOP SHOP FOR THE
CUSTOMER. COOPERATION IS THE
ULTIMATE FORM OF COMPETITIVE
ADVANTAGE IN A WORLD WHEN GAINING
THE TRUST OF CUSTOMERS IS MORE
DIFFICULT THAN EVER. IN ORDER FOR A
CLIENT TO COMPLY AND AVOID THINKING
THEY ARE BEING TAKEN ADVANTAGE OF, A
SERVICE PROVIDER NEEDS TO BUILD
TRUST WITH THEM.

 HOW WELL A COMPANY TRAINS ITS

PERSONNEL WILL PROBABLY DETERMINE
HOW SUCCESSFULLY THEY ENGAGE WITH
CUSTOMERS. IF A TRANSACTION ONLY
NEEDS TO BE COMPLETED ONCE, BOTH
PARTIES WILL BE MORE MOTIVATED TO
MAXIMIZE THEIR PROFITS RATHER THAN
WORK TOGETHER TO ESTABLISH TRUST.

 CUSTOMERS WANT TO BE TREATED WITH

RESPECT AND CARE, BUT THEY DON'T
WANT TO BE FORCED INTO PURCHASING
SOMETHING THEY BELIEVE WOULD FIX
THEIR ISSUE BUT ACTUALLY WON'T. HOW
QUICKLY THE PROBLEM IS RESOLVED IS AN
ESSENTIAL COMPONENT OF EXCELLENT
CUSTOMER SERVICE.

IN THIS "GAME" BETWEEN A CLIENT AND A

SERVICE PROVIDER, COLLABORATION IS
REWARDED AND NON-COOPERATION IS
PENALIZED. COOPERATIVE GAME THEORY,
WHICH FOCUSES ON FORESEEING WHICH
COALITIONS WILL FORM, THE JOINT
ACTIONS THAT GROUPS TAKE, AND THE
ENSUING COLLECTIVE PAYOFFS, IS
FREQUENTLY USED TO ANALYZE
COOPERATIVE GAMES.

A HEALTHY ECONOMY VALUES REPUTATION

AND ATTEMPTS TO CURTAIL OR LESSEN
IMPROPER CONDUCT THROUGH RULES AND
REGULATIONS. YOU MAY CREATE A
COOPERATIVE GAME BY GIVING EACH
COALITION A VALUE. IT IS LIKELY THAT A
BUSINESS WILL MAINTAIN MORE BUSINESS
WHEN IT PLACES A HIGH EMPHASIS ON
DEVELOPING CLOSE BONDS WITH ITS
CLIENTS THROUGH THOUGHTFUL
INTERACTIONS.

 SUCH SAFEGUARDS BENEFIT CONSUMERS

BECAUSE THEY MAKE THEM LESS RELIANT
ON THE GOODWILL OR COOPERATION OF
SERVICE PROVIDERS TO AVOID SUFFERING
A LOSS. THE IDEA OF GAME THEORY
OFFERS A USEFUL ASSESSMENT OF THE
PLAYERS' TACTICAL CHOICES. THE
CUSTOMER MUST HAVE CONFIDENCE IN
THE SPECIALIST THEY ARE WORKING WITH
AND BELIEVE WHAT THEY ARE
RECOMMENDING.

MAKING SURE THAT YOUR PERSONNEL ARE

PROPERLY TRAINED AND SAFE WHENEVER
THEY COMMUNICATE WITH CLIENTS IS A
VITAL COMPONENT OF THE EXPERIENCE.
WITHOUT THE CAPACITY TO NEGOTIATE
AND SETTLE ISSUES, THE TRADER WILL
"FAIL" AT THE FIRST MISUNDERSTANDING
AND RISK LOSING THE CLIENT.

CONSUMERS ARE LESS LIKELY TO

CONTRIBUTE TO COLLABORATION TO
REACH THE BEST RESULT FOR BOTH SIDES
WHEN THEY HAVE LESS TRUST IN THE
PROVIDER BECAUSE THEY ARE MORE
LIKELY TO BELIEVE THE PROVIDER IS
ACTING IN ITS OWN BEST INTERESTS.