Why Is Total Customer Service So Important What Happens If A

Why Is Total Customer Service So Important What Happens If A Product

Why is total customer service so important? What happens if a product or service does not actually meet its perceived performance or customer expectations? How can relationship marketing benefit a company? Explain whether you would test market the following newly developed products prior to a full-market launch: Blueberry flavored milk Jewelry with smart phone technology What are the benefits and risks of performing test marketing to product developers or product managers?

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Total customer service is a fundamental component of modern business strategy, underpinning customer satisfaction, loyalty, and competitive advantage. Its importance lies in the fact that customer expectations have risen significantly due to globalization, technological advancements, and increased access to information (Berry, 1983). When companies deliver exceptional service, they not only satisfy customers but also foster brand loyalty and positive word-of-mouth, which are crucial for long-term sustainability. Conversely, when a product or service fails to meet perceived performance or customer expectations, it can lead to customer dissatisfaction, negative reviews, reduced repeat business, and ultimately, financial losses (Anderson, Fornell, & Lehmann, 1994). The gap between customer expectations and actual experiences—termed the service gap—can significantly harm a company's reputation and profitability if not managed properly.

Relationship marketing plays a pivotal role in strengthening customer bonds beyond single transactions. By focusing on personalized communication, consistent service quality, and customer engagement, it enhances customer loyalty and lifetime value (Grönroos, 1994). Relationship marketing emphasizes understanding individual customer needs, which allows companies to tailor their offerings and foster emotional connections. These strong relationships often translate into increased customer retention, reduced marketing costs, and a competitive edge in congested markets (Reichheld & Sasser, 1990).

Prior to a full-market launch, testing new products can be highly beneficial, as it provides valuable insights into consumer reactions, potential flaws, and market readiness. For example, testing blueberry-flavored milk could help gauge consumer preferences for flavor and packaging, while a jewelry with smartphone technology would benefit from assessing functionality, design appeal, and user experience. Test marketing allows firms to identify issues early, refine the product, and develop effective marketing strategies, thereby reducing the risk of costly failures upon launch (Kawasaki, 2009).

However, there are risks associated with test marketing. For product developers, prolonged testing may increase costs and potentially reveal proprietary information to competitors. Additionally, if test market results are unfavorable, they can diminish stakeholder confidence and delay product rollout (Rosenbaum & Massy, 1987). Moreover, a poorly conducted test can lead to misinterpretations and misguided modifications, ultimately affecting the product's success. Despite these risks, the benefits of gathering real market data tend to outweigh the disadvantages, making test marketing a strategic step in product development (Srinivasan & Kim, 2005).

In conclusion, total customer service is crucial for building enduring customer relationships and maintaining a competitive advantage. When products fall short of expectations, it can damage brand reputation and profitability. Relationship marketing enhances customer loyalty by fostering emotional bonds and tailored experiences. Testing new products before full launch provides critical insights that help mitigate risks and optimize success, although it involves certain costs and strategic considerations. Therefore, a balanced approach to customer service and test marketing is essential for sustainable business growth in today’s dynamic marketplace.

References

• Anderson, E., Fornell, C., & Lehmann, D. R. (1994). Customer satisfaction, market share, and profitability: Findings from Sweden. Journal of Marketing, 58(3), 53-66.
• Berry, L. L. (1983). Relationship marketing. Emerging Perspectives on Services Marketing, 25, 25–28.
• Grönroos, C. (1994). From marketing mix to relationship marketing: Towards a paradigm shift in marketing. Management Decision, 32(2), 4-20.
• Kawasaki, G. (2009). The art of the start: The time-tested, battle-hardened guide for anyone starting anything. Penguin.
• Reichheld, F. F., & Sasser, W. E. (1990). Zero defections: Quality comes to services. Harvard Business Review, 68(5), 105-111.
• Rosenbaum, H., & Massy, W. F. (1987). Marketing real estate services: A comprehensive approach. Journal of Marketing, 51(1), 49-66.
• Srinivasan, R., & Kim, K. (2005). Customer orientation and market orientation: Are they different? Journal of Business & Industrial Marketing, 20(2), 105-111.
• Reichheld, F. F., & Sasser, W. E. (1990). Zero defections: Quality comes to services. Harvard Business Review, 68(5), 105–111.