Description Using the organization for which you work, examine how your organization approaches the ...
Description Using the organization for which you work, examine how your organization approaches the acquisition of customers and the maintenance of customers differently. Given the importance of customer lifetime value on long-term profitability, is your organization investing sufficiently in customer relationship management? Explain. The tactics associated with a customer relationship management (CRM) strategy vary from stage to stage in relationship development. Evaluate the extent to which your organization’s CRM tactics align with its CRM goals and each relationship stage. Propose modifications your organization should follow in its CRM efforts to improve its effectiveness in maintaining and improving customer relationships. Ultimately customers seek to optimize perceived value. There are several components of value that can be provided via the marketing mix elements. Propose specific product, price, distribution, and promotion strategies for your organization’s offer that could produce a higher perceived value (total value) for the target audience. Justify the value components you used to design a high-value overall strategy. Organizations want customers to be satisfied. Imagine you’ve been asked to estimate the relative importance of the performance factors your organization’s customers evaluate and design a plan to increase satisfaction and decrease dissatisfaction based on your results. Present your findings and plan 1 attachments Slide 1 of 1 attachment_1 attachment_1 UNFORMATTED ATTACHMENT PREVIEW Developing and Maintaining Long-Term Customer Relationships CHAPTER 10 G A INTRODUCTION T To this point in the text, we have examined the process of strategic planning from its E initial stages through the implementation of the marketing plan. At this point, howS to look at it holistically. ever, we take the opportunity to step back from the process Firms often lose sight of the big picture as they rush ,to complete product develop- ment and test marketing, or put the finishing touches on a media campaign. All of the activities involved in developing and implementing the marketing program have one key purpose: to develop and maintain long-term D customer relationships. However, as we have seen, implementing a marketing strategy that can effectively E in today’s rapidly changing satisfy customers’ needs and wants has proven difficult business environment. The simple fact is that thorough Aresearch, strong competitive advantages, and a well-implemented marketing program are often not enough to N guarantee success. In times past, developing and implementing the D “right” marketing strategy was all about creating a large number of transactions with customers in order R scant attention to discovto maximize the firm’s market share. Companies paid ering customers’ needs and finding better ways to solve A customers’ problems. In today’s economy, however, that emphasis has shifted to developing strategies that attract and retain customers over the long term. As illustrated in Beyond 1 through a comprehensive the Pages 10.1, 1-800-Flowers does this effectively understanding of its customers, including their expectations, motivations, and 1 behaviors. With this knowledge in hand, firms like 1-800-Flowers can then offer 2 the right marketing program to increase customer satisfaction and retain customers over the long term. 3 In this chapter, we examine how the marketing program can be leveraged as a whole to deliver quality, value, and satisfaction Tto customers. We begin by reviewing the strategic issues associated with the customer relationship manageS ment process. Developing long-term customer relationships is one of the best ways to insulate the firm against competitive inroads and the rapid pace of environmental change and product commoditization. Next, we address the critical topics of quality and value as we concern ourselves with how the entire marketing program is tied to these issues. Finally, we explore key issues with respect to customer satisfaction, including customer expectations and metrics for tracking customer satisfaction over time. 289 9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell - © Cengage Learning. All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240 290 Chapter 10 • Developing and Maintaining Long-Term Customer Relationships BEYOND THE PAGES 10.1 1-800-Flowers Focuses on Customers1 Customer service. Trust. One-to-one customer interactions. Customer loyalty. These are the foundations of the steady growth of 1-800Flowers for over 35 years. Since the company went online in 1992, CEO Jim McCann has used a laser-like focus on customers to make 1-800-Flowers the number one floral retailer in the world. In addition to flowers, the company offers fruit baskets, popcorn, gourmet food products, and other gifts under brands such as Harry & David, The Popcorn Factory, Fannie May Berries, Fruit Bouquets, and Cheryl’s. McCann’s company earns over $756 million each year, is essentially debt free, and enjoys almost $20 million in free cash flow each year. 1-800-Flowers uses the Internet to connect to customers and puts a lot of effort into creating a 360-degree, holistic view of each one. The company collects customer information at every point where it contacts a customer—sales, loyalty programs, surveys, direct mail advertising, sales promotions (contests and sweepstakes), and affiliate programs (with florists, credit card companies, and airlines)—and uses it to create customized communications and product offerings for the millions of customers in its database. 1-800-Flowers uses a sophisticated segmentation system that analyzes transactional behaviors (recency, frequency, monetary) and combines it with gift buying behaviors. This information is then tied to each customer’s psychographic profile to create targeted messages for each customer segment. The company then uses a variety of different metrics—financial, customer retention and acquisition, brand awareness, purchase intentions, and customer recommendations—to measure performance. To increase customer loyalty, 1-800-Flowers uses Celebrations Rewards, a free, point-based loyalty program. Customers earn one point for every dollar they spend, and then receive a $20 savings pass via e-mail when they have accumulated 200 points. For $29.99 per year, customers can upgrade to the Celebrations Passport program that offers free shipping and no minimum order size. In addition to increasing customer loyalty, the Rewards and Passport programs allow the company to collect more in-depth information from customers. 1-800Flowers also offers a 100 percent Smile Guarantee: G A T E S , Everyone at 1-800-FLOWERS.COM is passionate about delivering flowers and gifts that bring smiles. And we mean everyone. Like the president of 1-800-FLOWERS.COM, our growers, our fantastic floral designers, even me, the guy writing the customer service section of this website. So if you OR the person who received your gift calls us with any sort of issue, it’s a big deal to us. All of us. And we’ll jump to make it right—no matter what, no questions asked. We’re happy when you’re smiling. D the key to success has E beenForits 1-800-Flowers, ability to integrate and leverage the A massive amount of data that it collects from its However, CEO McCann also favors N customers. the old-school approach to understanding custoD mers. McCann states that his training as a social R worker helps him to understand the importance of solid relationships. True to his background, A McCann regularly goes into the field to talk with customers. On key occasions such as Mother’s Day and Valentine’s Day, McCann and 1 other executives answer the phones, deliver pro1 ducts, and work in the company’s retail stores. McCann puts it this way: “Our competitors are 2 all about the sales, we’re about relationships. 3 We are helping our customers connect with the people in their lives through flowers T important and gifts created and designed for specific relaS tionships, occasions, and sentiments. That’s the difference.” MANAGING CUSTOMER RELATIONSHIPS As we briefly mentioned in Chapter 1, creating and maintaining long-term customer relationships requires that organizations see beyond the transactions that occur today to look at the long-term potential of a customer. To do this, the organization must strive to develop a relationship with each customer rather than generate a 9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell - © Cengage Learning. All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240 Chapter 10 • Developing and Maintaining Long-Term Customer Relationships large number of discrete transactions. Before a relationship can be mutually beneficial to both the firm and the customer, it must provide value to both parties. This is one of the basic requirements of exchange noted in Chapter 1. Creating this value is the goal of customer relationship management (CRM), which is defined as a business philosophy aimed at defining and increasing customer value in ways that motivate customers to remain loyal.2 In essence, CRM is about retaining the right customers. It is important to note that CRM does not focus solely on end customers. Rather, CRM involves a number of different groups: • • • • Customers. The end users of a product, whether they be businesses or individual consumers. Employees. Firms must manage relationships with their employees if they are to have any hope of fully serving customers’ needs. This is especially true in service firms where employees are the service in the eyes of customers. Retaining key employees is a vital part of CRM. Supply Chain Partners. Virtually all firms buy and sell products upstream and/ G or downstream in the supply chain. This involves the procurement of materials A way, maintaining relationor the sale of finished products to other firms. Either ships with key supply chain partners is critical to T satisfying customers. External Stakeholders. Relationships with key stakeholders must also be E managed effectively. These include investors, government agencies, the media, nonprofit organizations, or facilitating firms that provide goods or services that S help a firm achieve its goals. , Delivering good value to customers requires that firms use CRM strategies to effectively manage relationships with each of these groups. This effort includes finding ways to integrate all of these relationships towardD the ultimate goal of customer satisfaction. E To fully appreciate the concepts behind customer relationship management, orgaA nizations must develop a new perspective on the customer—one that shifts the emphasis from “acquiring customers” to “maintaining clients” as shown in Exhibit 10.1. N Although this strategic shift has been underway for some time in business markets, D in consumer markets as technological advancements allow CRM to be fully embraced well. Firms that are exceptionally good at developing customer relationships are said to R possess “relationship capital”—a key asset that stems from the value generated by the A EXHIBIT 10.1 Strategic Shift from Acquiring Customers to Maintaining Clients. 1 Acquiring Customers Customers are “customers” Mass marketing Acquire new customers Discrete transactions Increase market share Differentiation based on groups Segmentation based on homogeneous needs Short-term strategic focus Standardized products Lowest-cost provider One-way mass communication Competition Maintaining Clients 1 Customers are “clients” 2 One-to-one marketing 3 with current customers Build relationships T Continuous transactions Increase share S of customer Differentiation based on individual customers Segmentation based on heterogeneous needs Long-term strategic focus Mass customization Value-based pricing strategy Two-way individualized communication Collaboration 9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell - © Cengage Learning. All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240 291 292 Chapter 10 • Developing and Maintaining Long-Term Customer Relationships trust, commitment, cooperation, and interdependence among relationship partners. With respect to competitive advantages, many see relationship capital as the most important asset that an organization can possess, as it represents a powerful advantage that can be leveraged to make the most of marketing opportunities.3 Developing Relationships in Consumer Markets Developing long-term customer relationships can be an arduous process. Over the life of the relationship, the firm’s goal is to move the customer through a progression of stages, as shown in Exhibit 10.2. The objective of CRM is to move customers from having a simple awareness of the firm and its product offering through levels of increasing relationship intensity to the point where the customer becomes a true advocate for the firm and/or its products. Note that true CRM attempts to go beyond the creation of satisfied and loyal customers. Ultimately, the firm will possess the highest level of relationship capital when its customers become true believers or sponsors for the company and its products. For example, Harley-Davidson, which is G now over 100 years old, is a great example of a firm that enjoys the highest levels of A exhibit a cult-like love for the brand that most customer advocacy. Harley owners other companies do not possess. T Other firms such as Starbucks, Apple, Coca-Cola, and Nike also enjoy a high degree of customer advocacy.4 E of the most viable strategies to build customer In consumer markets, one relationships is to increase theSfirm’s share of customer rather than its market share. , EXHIBIT 10.2 Stages of Customer Relationship Development. Relationship Stage Awareness Initial purchase Repeat customer Client Community Advocacy D CRM Goals Promote customer knowledge and E education about the product or company. A Prospect for new customers. N Get product or company into customers’ evoked set of alternatives. D Stimulate interest in the product. Stimulate product trial. R Fully satisfy customers’ needs and A wants. Completely meet or exceed customers’ expectations or product specifications. Offer incentives to encourage repeat purchase. 1 Create financial bonds that limit the1customer’s ability to switch products or suppliers. 2 Acquire more of each individual customer’s business. 3 Personalize products to meet evolving customer T needs and wants. Create social bonds that prevent product S or supplier switching. Create opportunities for customers to interact with each other in a sense of community. Create customization or structural bonds that encourage the highest degree of loyalty. Become such a part of the customer’s life that he or she is not willing to end the relationship. Think of customers as partners. Examples Product advertising Personal selling (cold calls) Word of mouth Advertising Product sampling Personal selling Good product quality and value-based pricing Good service before, during, and after the sale Frequent reminders and incentives Frequent customer cards Frequent-flier programs Broad product offering Membership programs Affinity programs Ongoing personal communication Customer events and reunions Long-term contracts Brand-related memorabilia 9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell - © Cengage Learning. All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240 Lucas Schifres/Getty Images Chapter 10 • Developing and Maintaining Long-Term Customer Relationships G A Apple enjoys one of the highest levels of customer advocacy around T the world. This strategy involves abandoning the old notions of E acquiring new customers and increasing transactions to focus instead on more fullySserving the needs of current customers. Financial services are a great example of this strategy in action. Most , consumers purchase financial services from different firms. They bank at one institution, purchase insurance from a different institution, and handle their investments through another. To counter this fact of life, many companies now offer all of these D services under one roof. For example, Regions Financial Corporation offers retail and commercial banking, trust, securities brokerage, E mortgage, and insurance products to customers in a network of over 1,600 officesA in 16 states across the South, Midwest, and Texas.5 Rather than focus exclusively on the acquisition of new custoN of its current customers, mers, Regions tries to more fully serve the financial needs thereby acquiring a larger share of each customer’s financial business. By creating D these types of relationships, customers have little incentive to seek out competitive R firms to fulfill their financial services needs. This relationship capital gives Regions an important strategic asset that can be leveraged asAit competes with rival banks and financial institutions, both locally and online. Focusing on share of customer requires an understanding that all customers have different needs; therefore, not all customers have 1 equal value to a firm. The most basic application of this idea is the 80/20 rule: 20 percent of customers provide 1 80 percent of business profits. Although this idea is not new, advances in technology and data collection techniques now allow firms to profile 2 customers in real time. In fact, the ability to track customers in detail can allow the firm to increase sales and 3 loyalty among the bottom 80 percent of customers. The goal is to rank the profitabilT (LTV) to the firm. Some ity of individual customers to express their lifetime value customers—those that require considerable handholding S or those that frequently return products—are simply too expensive to keep given the low level of profits they generate. These bottom-tier customers can be “fired” or required to pay very high fees for additional service. Banks and brokerages, for example, slap hefty maintenance fees on small accounts. This allows the firm to spend its resources to more fully develop relationships with its profitable customers. The firm’s top-tier customers (those that fall into the top 20 percent) are the most obvious candidates for retention strategies. These customers are the most loyal and the most profitable, so the firm should take the necessary steps to ensure their continuing satisfaction. Customers that fall just outside of this tier, or secondtier customers, can be encouraged to be better customers or even loyal customers 9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell - © Cengage Learning. All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240 293 294 Chapter 10 • Developing and Maintaining Long-Term Customer Relationships with the right incentives. Exhibit 10.3 outlines strategies that can be used to enhance and maintain customer relationships. The most basic of these strategies is based on financial incentives that encourage increased sales and loyalty. However, financial incentives are easily copied by competitors and are not typically good for retaining customers in the long run. To achieve this ultimate goal, the firm must turn to strategies aimed at closely tying the customer to the firm. These structural connections are the most resilient to competitive action and the most important for maintaining longterm customer relationships. Developing Relationships in Business Markets Relationship management in business markets is much like that in consumer markets. The goal is to move business buyers through a sequence of stages, where each stage represents an increasing level of relationship intensity. Although business relationships may not approach the cult-like, emotional involvement found in some EXHIBIT 10.3 Strategy Examples G A Relationships. Strategies for Enhancing and Maintaining Customer T E Increasing Relationship Intensity S Enhanced Financial Incentives Social Bonding , Customization Using financial incentives to increase customer loyalty Using social and psychological bonds to maintain a clientele • Volume discounts • Coupons • Frequent-customer • Membership programs programs • Customer-only events • Community outreach programs Used by • Airlines • Grocery retailers • Music clubs • Health clubs • Churches • Credit cards Advantages • Effective in the • Difficult for short term • Easy to use competitors to copy • Reduces brand switching Disadvantages • Easily imitated • Hard to end incentives once started • Can promote continual brand switching • Social bonds take time to develop • Customer trust is critical and must be maintained at all times D E A N D R A 1 1 2 3 T S Structural Bonding Using intimate customer knowledge to provide oneto-one solutions or mass customization Creating customized product offerings that create a unique delivery system for each client • Customer reminder • Structured, lock-step notifications • Personal recommendations • Personal shopping programs • • • • Auto service centers Electronic retailers Department stores Professional services • Promotes strong loyalty and greatly reduces brand switching • Very difficult for competitors to copy customer knowledge • Can be quite expensive to deliver • Takes time to develop programs • Automated electronic transactions • Contractual relationships • Colleges and universities • Banks • Bundled telecom services • Ultimate reduction in brand switching • Products become intertwined in customers’ lifestyles • Customer resistance • Time-consuming and costly to develop SOURCE: Based on Leonard L. Berry and A. Parasuraman. Marketing Services: Competing Through Quality (New York: The Free Press, 1991), pp. 136–148; Valerie Zeithaml, Mary Jo Bitner, and Dwayne Gremler. Services Marketing: Integrating Customer Focus Across the Firm. (New York: McGraw-Hill/Irwin, 2013), pp. 160–166. 9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell - © Cengage Learning. All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240 Chapter 10 • Developing and Maintaining Long-Term Customer Relationships consumer markets, businesses could nonetheless become structurally bound to their supply chain partners. These relationships can give both parties an advantage with respect to relationship capital: One firm maintains a loyal and committed customer; the other maintains a loyal and committed supplier. Both parties may also consider each other to be strong partners or advocates within the entire supply chain. Although our discussion certainly involves generalizations (e.g., some consumer marketers are better at building relationships than many business marketers), relationship development in business markets can be more involving, more complex, and much riskier than relationships in consumer markets. This occurs because business buyers typically have fewer options to choose from, and the financial risks are typically higher. For example, Apple’s Mac line of laptops and desktops has used Intel processors since 2006. However, in 2010 when Apple developed its first custom chip, the A4, to power the iPad, many in the industry suggested that Apple would eventually dump Intel in the Mac. Such a move would save Apple a lot of money. However, as the world’s leader in chip technology, Intel offers many advantages that Apple would have a hard time recreating (i.e., engineering know-how, compatiG bility with Windows). The relatively small number of players in this industry means A is also important due to the that firms like Apple and Intel are tightly integrated. This presence of long-term contractual obligations and theTsheer dollars involved. These types of business relationships must be built on win–win strategies that focus on cooperation and improving the value of the exchangeE for both parties, not on strict negotiation strategies where one side wins and the other S side loses.6 Business relationships have become increasingly complex, as decisions must be , the two parties involved. In made with an eye toward the entire supply chain, not just these cases, the relationships that are developed enhance the ability of the entire supply chain to better meet the needs of final customers. Over the past several D years, a number of changes have occurred in business relationships, including: E • • • • • A Change in Buyers’ and Sellers’ Roles. ToAbuild stronger relationships, buyers and sellers have shifted away from competitive negotiation (trying to N drive prices up or down) to focus on true collaboration. This represents a major change for many companies. D An Increase in Sole Sourcing. Supplier firms will continue to sell directly to R large customers or move to selling through systems suppliers that put together A a comprehensive solution. a set of products from various suppliers to deliver The continuing growth in online e-procurement systems is one result of this trend. 1 buyers and sellers scan the An Increase in Global Sourcing. More than ever, globe in search of suppliers or buyers that represent 1 the best match with their specific needs and requirements. The relationship building process is so costly and complex that only the best potential partners 2 will be pursued. 3 An Increase in Team-Based Buying Decisions. Increasingly, teams from both buying and supplying firms make purchase decisions. T These teams consist of employees from different areas of expertise that are central to the success of S firms will be represented both firms. Increasingly, senior management of both on these teams as economic buyers, for both sides play a major role in setting goals and objectives. An Increase in Productivity Through Better Integration. Firms that closely align their buying and selling operations have the capacity to identify and remove any inefficiency in the process. This increased productivity leads to a reduction in both hard and soft costs, thereby enhancing the profitability of both firms. This integration can be extended throughout the supply chain. In the future, only the most efficient supply chains will survive, particularly as more procurement moves into the electronic arena. 9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell - © Cengage Learning. All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240 295 296 Chapter 10 • Developing and Maintaining Long-Term Customer Relationships These fundamental changes in the structure of most business relationships will lead to dramatic changes in the way that organizations work together. Only those firms willing to make strategic, as opposed to cosmetic, changes in the way they deal with their customers or suppliers are likely to prosper as we move forward in this century. QUALITY AND VALUE: THE KEYS TO DEVELOPING CUSTOMER RELATIONSHIPS To build relationship capital, a firm must be able to fulfill the needs of its customers better than its competitors. It must also be able to fulfill those needs by offering highquality goods and services that are a good value relative to the sacrifices customers must make to acquire them. When it comes to developing and maintaining customer relationships, quality is a double-edged sword. If the quality of a good or service is poor, the organization obviously Ghas little chance of satisfying customers or maintaining relationships with them. The adage of “trying something at least once” applies here. A firm may be successfulAin generating first-time transactions with customers, but poor quality guarantees that T repeat purchases will not occur. On the other hand, good quality is not an automatic guarantee of success. Think of it as a necessary E but insufficient condition of successful customer relationship management. It is at this point where value becomes critical to maintaining long-term customer relationships. S , Understanding the Role of Quality Quality is a relative term that refers to the degree of superiority of a firm’s goods or services. We say that quality isD relative because it can only be judged in comparison to competing products, or when Ecompared to an internal standard of excellence. The concept of quality also applies to many different aspects of a firm’s product offering. A firm consists of at least three interdependent comThe total product offering of any ponents, as illustrated in Exhibit N 10.4: the core product, supplemental products, and symbolic and experiential attributes. D R The heart of the offering, the core product, is the firm’s raison d’etre, or justification A for existence. As shown in Exhibit 10.4, the core can be a tangible good—such as a The Core Product Chevy Silverado—or an intangible service—such as the Verizon Wireless communication network. Virtually every element of the marketing program has an effect on 1 the quality (or perceived quality) of the core product; however, the firm’s product and branding strategies are of 1 utmost importance. Since the core product is the part of the offering that delivers the 2 key benefits desired by customers, the form utility offered by the core product is vital to maintaining its quality. For example, the quality of an entrée in a restaurant3depends on the form utility created through the combination of quality raw ingredients T and expert preparation. In service offerings, the core product is typically composed of three interrelated dimensions:7 • • • S People. The interaction among the customer, the firm’s employees, and other customers present during service delivery. Processes. The operational flow of activities or steps in the service delivery process. Processes can be done through technology or face-to-face interaction. Physical Evidence. Any tangible evidence of the service including written materials, the service facility, people, or equipment. Includes the environment in which the service is delivered. As a whole, service firms struggle daily with maintaining the quality of their core service offerings. Because services are so people-intensive, effective implementation 9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell - © Cengage Learning. All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240 Chapter 10 • Developing and Maintaining Long-Term Customer Relationships EXHIBIT 10.4 Components of the Total Product Offering. Chevrolet Silverado 1500 Core Product Transportation Hauling/towing Supplemental Products Accessories GMAC financing Replacement parts OnStar Verizon Wireless Communication John Deere Lawn Tractor Lawn and garden maintenance Michelin Tires Tires Safety Waldorf Astoria New York City Lodging Phone options Rate plan options “The More Everything Plan” 4G LTE Accessories Financing Delivery Broad availability G Installation Financing A Mid-ManhattanTlocation on Park Avenue Restaurants E Room service Symbolic and Experiential Attributes “The most dependable, longest-lasting full-size pickup on the road” “Chevy Runs Deep” “Like a Rock” “The Nation’s largest and most reliable network” “Rule the Air” “It’s the Network” John Deere “Green” “Nothing Runs Like a Deere” “A Better Way Forward” “Because a lot is riding on your tires” The Michelin Man “Peerless service and indulgent comfort” The first “Grand Hotel” S , of the marketing strategy (through shared goals, employee motivation, and employee skills) is a major factor that helps to ensure consistency and quality. The quality of D service also depends more on issues such as responsiveness to customer requests, consistent and reliable service over time, and the friendliness and helpfulness of the E firm’s employees. The quality of tangible goods depends more on issues such as durability, style, ease of use, comfort, or suitability forA a specific need. Whether a good or a service, the firm has little chance N of success if its core product is of inferior quality. However, even providing a high-quality core product is not enough to ensure customer satisfaction and long-term
