Which of the following statements is true of service failures?
A)They can be eliminated by successful market segmentation.
B)Retailers cannot recover from service failures.
C)They can be solved by canceling return policies.
D)If handled effectively, they can result in higher customer loyalty.

Question

Quizplus · Accepted Answer

If handled effectively, service failures can result in higher customer loyalty. This is because when companies address and rectify service failures promptly and effectively, it showcases their commitment to customer satisfaction and can actually enhance the customer's perception of the company's responsiveness and willingness to make things right. Therefore, customers are likely to continue doing business with the company and may even recommend it to others. The other options (A, B, and C) are incorrect as successful market segmentation cannot eliminate service failures, retailers can recover from service failures with proper handling, and canceling return policies will not solve service failures.

Which of the Following Statements Is True of Service Failures