The document discusses two examples of how companies handled customer issues with faulty products. In the first example, Obodex Computers provided excellent customer service by quickly resolving the laptop issue and upgrading the computer at no cost, resulting in positive word-of-mouth for the company. In the second example, the car dealership handled a power steering problem poorly by not addressing the issue promptly, taking too long to fix the vehicle and upsetting the customer, costing the dealership future business. The document examines how customer service impacts brand loyalty and perceptions.
The document discusses two examples of how companies handled customer issues with faulty products. In the first example, Obodex Computers provided excellent customer service by quickly resolving the laptop issue and upgrading the computer at no cost, resulting in positive word-of-mouth for the company. In the second example, the car dealership handled a power steering problem poorly by not addressing the issue promptly, taking too long to fix the vehicle and upsetting the customer, costing the dealership future business. The document examines how customer service impacts brand loyalty and perceptions.
The document discusses two examples of how companies handled customer issues with faulty products. In the first example, Obodex Computers provided excellent customer service by quickly resolving the laptop issue and upgrading the computer at no cost, resulting in positive word-of-mouth for the company. In the second example, the car dealership handled a power steering problem poorly by not addressing the issue promptly, taking too long to fix the vehicle and upsetting the customer, costing the dealership future business. The document examines how customer service impacts brand loyalty and perceptions.
Quality is more than just the product. Here, two customers
describe their experience of how they were treated when the product they bought failed. Example 1: Obodex Computers Limited I bought an Obodex laptop computer and was very pleased with its performance. After a few weeks, however, the screen failed. I rang the company and was put straight through to their service manager, who 300 9 • MANAGING QUALITY apologized profusely for the failure and, after a few questions, identified what he thought was the fault. He asked if it was convenient for me to drop the machine into their service centre and said that he would ensure that it was dealt with while I waited. Given the possibility of having my computer up and running again so quickly, I agreed. When I arrived at the centre, I was shown to a waiting area and supplied with a cup of coffee while the laptop was taken away. As I handed it over, the technician asked, ‘Would you like me to make a small upgrade on it while I am working on it, at no charge?’ This sounded too good an offer to pass up, and so I agreed. Thirty minutes later, I was walking out of the centre with my repaired and upgraded machine. You would not believe the number of people who I knew who then bought Obodex when they heard of the service that I had received. Example 2: Car dealers We bought a brand new car for our family business. It was needed to go and visit customers and so reliability was vital to us. If we could not keep appointments with customers, this reflected on our business and customers would buy elsewhere. We had had it for 10 days when the power steering failed. This made the car undriveable. It happened at the weekend and so I rang the dealer where we had bought the car first thing on the Monday morning, asking them to come and get the car at the earliest opportunity, as we needed it for several important trips that week. The response was pathetic. They said that they were far too busy and initially offered to look at the car, if we could get it to them, the following Thursday – 11 days later. I complained, but was told that ‘You are not our only customer!’. This made me very angry, and so I called the manufacturer direct. Their customer service people were far more helpful, and eventually agreed to arrange for the car to be collected later that day. It was collected by the same garage that I had called first. I wasted nearly 3 hours on the telephone trying to sort this problem. I will never do business with that dealer again, which probably means we will never buy another car from that company. This is a shame, as it wasn’t a bad car. 301 OPERATIONS MANAGEMENT Discussion questions 1 Compare the two cases in terms of how each firm looked after their customers. 2 What is the influence of apostles (customers who tell others how good your service is) and terrorists (customers who tell others how bad your service is) on a business? 3 How might customer complaints actually be an opportunity for gaining greater loyalty to an organization?