Service Fairness in CRM in Term Paper

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Time Warner approaches the issue of returns and service adjustment through a series of escalation paths and programs. These are the first step in averting any potential need for service recovery. When the service disruption is their fault or the fault of weather-related causes the company, Time Warner is quick to provide a refund or at least a credit for lost service. This is consistent with the concept of reciprocation and respect for customers as well (Thanh, 2007).

Time Warner is less apt however to provide a refund or credit if there is a conflict with a customer over the quality or latency of a signal over time. This is unquantifiable from a Time Warner standpoint, but very real to a customer.

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The divergence between what quality level Time Warner thinks it is delivering and it actually is from a customers' perception causes the majority of churn in their customer base. Time Warner is inclined to argue, bargain and negotiate to reduce their risk than they are to be more egalitarian and willing to create a high level of customer satisfaction. When a business is unwilling to provide service recovery on unquantifiable experience from their standpoint, they run the risk of losing a customer for the long-term and also spreading ill will (Pazzanese, 2007)......

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