Consider the following two scenarios
- A service that consistently provides good service. Nothing ever goes wrong, it just works.
- Almost same as above with some exceptions. Once in a while something goes wrong, be it a service failure or over-billing. But as soon as the customer calls it is resolved right there, be it resolving service failure or removing $300 over charge without further questions.
In which of the two scenarios will a customer feel they are getting better service? Do occasional problems and their immediate resolution improve a customer’s perception of the overall service? Previous studies have shown how recency and intensity affect our perception and recall. Could these be applicable in this case?
From another perspective, is the presence of both good service and bad service increase a customer’s utility more than just good service? We saw the work of Wertenbroch and Dhar that found that utility from consuming virtue increased in the presence of vice options. Here the customers are not making choices but the choice is made for them, nevertheless customers are reminded of the “vice option” and steered back to “virtue option”.