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Companies across different industries track interactions with customers to determine what level of service that customer should get-think about wait times when a customer calls customer service or how to route a customer call to the highest-quality customer service representative. A strategy that many firms use is to deliver worse service to customers who exhibit behaviors that are costly to the firm. For example, customers who return a lot of items or only buy items when they are deeply discounted tend to get worse service than customers who don't exhibit these actions.
Briefly describe the rationale for not providing the same level of service to all customers? Why might a firm want to give worse service to the customers who exhibit the behaviors described above?
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