Question

A customer wanted to purchase two of an item but unfortunately the store only had one in stock. The sales clerk offered to locate one at another store and ship it to the customer's home at no cost. What strategy for enhancing customer satisfaction is the store demonstrating?

Answer 1

The store is using a money-back guarantee and commitment to customer service by offering to locate and ship an out-of-stock item for free. This strategy is especially critical for firms that sell goods without the customer seeing them first, such as L.L. Bean, which builds customer trust through both quality reputation and guarantees.

Step-by-step explanation:

The store is demonstrating a strategy for enhancing customer satisfaction known as a money-back guarantee, which is a promise of quality and a commitment to customer service. The sales clerk's offer to locate the item at another store and ship it to the customer's home at no additional charge indicates an effort to maintain customer satisfaction even when facing a stock limitation. This practice is particularly vital for businesses that conduct sales through methods where customers cannot physically examine the products beforehand, such as mail-order catalogs or online sales.

Companies like L.L. Bean, which has limited brick-and-mortar presence and relies heavily on mail, telephone, or web sales, overcome the challenge of imperfect information by combining a reputation for quality with a money-back guarantee. This helps to build trust with customers and encourages them to make purchases despite not being able to see and touch the products in person.