Optimizing service failure and damage control

Halbheer, D, Gartner, D, Gerstner, E and Koenigsberg, O (2018) Optimizing service failure and damage control. International Journal of Research in Marketing, 35 (1). pp. 100-115. ISSN 0167-8116 OPEN ACCESS


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

More Details

Item Type: Article
Subject Areas: Marketing
Additional Information:

© 2017 Elsevier

Date Deposited: 26 Jan 2018 09:49
Date of first compliant deposit: 23 Jan 2018
Subjects: Service quality
Service industries
Last Modified: 14 Jul 2024 02:03
URI: https://lbsresearch.london.edu/id/eprint/952

Export and Share


Accepted Version - Text
  • Available under License


View details on Dimensions' website

Downloads from LBS Research Online

View details

Actions (login required)

Edit Item Edit Item