Question

a. Why should companies offer service guarantees?

b. What are the importance of having service guarantees?

c. Does having service guarantee really works?

Answer 1

Explanations:

- Companies in order to retain customers and to use this and marketing gimmick provide service guarantees. Service guarantee are used to reduce risk of purchase from the customer perception and make them buy the product without any potential risk about it in mind. Service guarantees are given from long time by the seller to customer. Motive behind offering service guarantees is to make customer think that company is concerned about customer service. Offering service guarantees will establish unique standard for the company in market.

Benefits of service guarantees

- service guarantees will motivate managers to actively focus on customer service and customer complaint feedback.

- it will reduce purchase risk of customer so that there will be customer loyalty because of service guarantee.

- service guarantees increase reputation of firm in market and make them established name among customer and rivals .

- service guarantees will establish clear standards of company and make unique image of company in market.

- service guarantees will push company to really focus on customer service and motivate them to identify failure point of the product.

~ provide service guarantees really make a distinct image of company in market and influence customer to buy this products and become loyal customer. Providing service guarantee really motivate customer to file a complaint and company can know how to improve quality through all this complaint and improve customer service in first place.