COMMERCE 2MA3 Chapter Notes - Chapter 10: Customer Service

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Customer service are human or mechanical activities that firms must undertake to help satisfy their customers" needs and wants: businesses can offer products within a broad range. Some businesses install tires (pure service) while also selling tires (pure product): most developed countries have a service-intensive economy: More expensive to manufacture products in less-developed countries. Customers value convenience and leisure = more demand for services done for them. A comfortable setting and soothing colors at a waiting area of a spa: inseparable: services produced and consumed at the same time. A customer getting a haircut: consumers cannot try a service before actually having it, the more control you give consumers during a service, the more satisfaction. Because it seems that they can limited control, any little interaction w/ the customer can create a positive atmosphere. There is a perceived risk when they cannot try it so firms provide extended warranties and guarantees.

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