Question

The oft-told story of the Nordstrom customer who returned a set of tires:

A) reinforces the need to maintain management control on what employees give away.
B) reflects poorly on the manager since Nordstrom doesn't even sell tires.
C) shows how irrational some customers are.
D) illustrates positive ripple effects that can come from a service tale becoming a legend.

Answer 1

The Nordstrom tire return story illustrates the positive effects of exceptional customer service on a company's reputation, emphasizing customer loyalty over strict returns policies.

Step-by-step explanation:

The story of the Nordstrom customer who returned a set of tires, even though Nordstrom doesn't sell tires, is often cited as an example of exceptional customer service. This tale illustrates the positive ripple effects that can emerge from taking exceptional care of customers, which in turn can become a legendary tale that enhances a company's reputation. It highlights that the cost of accepting a return may be small compared to the benefits of word-of-mouth advertising and the establishment of long-term customer loyalty. Policies aiming at establishing a good reputation are crucial for firms since they lead to repeat customers and recommendations, which are more valuable than short-term financial gains from a stringent return policy.