Research Recaps

Customer Frustration by Design?

Key Takeway

On average, U.S. consumers spend 13 hours year in calling queues. This game-theoretic model examines organizational incentives to make dissatisfied customers “jump through hoops”. While tiered CSO structures may help firms control redress costs and screen claim, customer frustration “by design” can also damage reputation and, ultimately, erode profitability.

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