Quality Cost and Quality Economics in Service Organization (1994)
Zigmund Bluvband, Ph.D., ALD Ltd., Israel
Y. Segev, ALD Ltd., Israel
But management does not consider additional and sometimes heavy intangible losses such as those mistakes that give the supplier a poor reputation resulting in loss of customers.
These intangible losses are very important to service organizations such as transportation, hotels, communication services, post office services, repair shops, educational facilities, banking and others, which depend on continuous and wide contact with their client.
When the customer is not satisfied by the requested service he will most likely not contact the same supplier again, particularly if there are others around, which is usually the case.