Marketing

An effective pricing decision should involve an optimal blending of internal financial constraints and external market conditions.

Some companies have more than just a competitive advantage in customer service, they have unwavering customer loyalty. How do they do it? The authors argue that the key to providing superior service is understanding and responding to customer expectations. Through their research, two different kinds of expectations emerged, both of which can change over time and from one service encounter to the next for the same customer. By responding appropriately to these expectations, managers can be on their way to developing a “customer franchise.”

It is time for U.S. companies to raise their service aspirations significantly and for U.S. executives to declare war on mediocre service and set their sights on consistently excellent service, say the authors. This goal is within reach if managers will provide the necessary leadership, remember that the sole judge of service quality is the customer, and implement what the authors call the "five service imperatives."