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Optimizing service failure and damage control

delete2018-03-01
delete11
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OA
AI
D
Daniel Halbheer *
D
Dennis L. Gärtner
E
Eitan Gerstner
O
Oded Koenigsberg
DOI:10.1016/j.ijresmar.2017.11.001delete
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Abstract

Abstract

En 中文
Should a provider deliver a reliable service or should it allow for occasional service failures? This paper derives conditions under which randomizing service quality can benefit the provider and society. In addition to cost considerations, heterogeneity in customer damages from service failures allows the provider to generate profit from selling damage prevention services or offering compensation to high-damage customers. This strategy is viable even when reputation counts and markets are competitive. (C) 2017 Elsevier B.V. All rights reserved.
Keywords:
Service quality
Service reliability
Service failure
Damage control
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Journal

International Journal of Research in Marketing cover
International Journal of Research in Marketing
IF:
7.5
Papers:
1.2K
Citations:
6.4K

Organization

H
hautes etudes commerciales (hec) paris
Scholars:
391
Papers: 583
Citations: 2
U
university of london
Scholars:
21.5W
Papers: 19.7W
Citations: 305
T
Technion Israel Institute of Technology
Scholars:
1.6W
Papers: 1.5W
Citations: 2.0W
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