Final answer:
Quattro's cessation of its 30-minute delivery money-back guarantee is a change in customer service strategy, likely reflecting a shift in their balance of costs and benefits after considering product production costs and desired profit margins.
Step-by-step explanation:
The fact that Quattro, a pizza shop, stopped its policy of refunds in case of a delivery delay of more than 30 minutes is an example of a customer service strategy change. Initially, offering a money-back guarantee acted as a promise of quality and timeliness, which is an important factor for companies that sell products without the customer being able to see them beforehand, such as online sales or mail-order catalogs. This policy could encourage customers to place orders with the confidence that they will receive either their pizza within 30 minutes or get their money back, thus reducing the perceived risk of ordering.
However, by discontinuing this guarantee, Quattro's decision likely reflects changes in the company's assessment of the costs and benefits associated with that guarantee. The original policy may have been part of a marketing strategy to build a customer base by highlighting their speedy delivery. Over time, the policy might have become financially unsustainable or unnecessary as the shop established its reputation. Furthermore, in rethinking the policy, Quattro considered the actual cost of producing pizzas and the desired profit, which are crucial in setting a sustainable price for their product without the need for extra guarantees.