24. The customer-service division of Mammon Savings and Loan recommends that
, O6 f/ j% u i( w( j9 Wthe best way for the bank to attract new customers and differentiate itself from its . Y) g3 Q7 U" G1 F8 A8 x
competitors is to improve its service to customers—specifically, by reducing waiting
. Y0 N, c; Y/ V1 L2 O+ }2 ltime in teller lines, opening for business 30 minutes earlier, and closing an hour later.
; j) D* |4 J. ?3 v# WThese improvements, it is argued, will give the bank the edge over its competitors and
/ W4 v- k( l( M2 E+ C% vmake it appear more customer-friendly. For the most part this recommendation is 4 U* c0 a! m. m; P+ C; e0 e
well-reasoned; a few concerns must be addressed, however.; M2 }: ]$ o) Z( d4 `
First, the author assumes that Mammon's competitors are similar to Mammon in ( @8 T, S {, a0 L& H$ s
all respects other than the ones listed. In fact, Mammon's competitors may be more
" W% L* @# G- s4 Y! {$ n" pconveniently located to customers, or offer other services or products on more attractive j3 t' f: y0 Y& x* ]
terms than Mammon. If so, Mammon may not gain the edge it seeks merely by 0 W' j) C* Z" p' d7 H% ?
enhancing certain services.7 k! L9 q4 n x' t
Secondly, the author assumes that the proposed improvements will sufficiently ' s' n& Q( u1 f1 ]
distinguish Mammon from its competitors. This is not necessarily the case. Mammon's
( I: ?! I) D( @competitors may already offer, or may plan to offer, essentially the same customer-% s+ G B- d1 P" l; o
service features as those Mammon proposes for itself. If so, Mammon may not gain the 1 e. ~- _- o; w( i
edge it seeks merely by enhancing these services. w7 i k$ J: d3 t
Thirdly, the author assumes that Mammon can offer these improved services ' N' \3 ]. ?) G& J( h+ d7 j
without sacrificing any other current features that attract customers, in fact, Mammon
: O( ~* J$ Y H9 l5 L+ ]may have to cut back other services or offer accounts on less attractive terms, all to 4 c7 Q8 d" ]7 J& X% s, A% u: G ?
compensate for the additional costs associated with the proposed improvements. By
& E& A0 e+ U6 Hrendering its other features less attractive to customers, Mammon may not attain the ( T: K$ v4 b) y* m- {
competitive edge it seeks.
2 y7 i/ c5 T- Y* |+ X, g In conclusion, Mammon's plan for attracting new customers and differentiating
5 W; h& U% S, T6 E) [+ Q4 _7 {8 R- qitself from its competitors is only modestly convincing. While improvements in ! }# C+ q' R. B1 v
customer service generally tend to enhance competitiveness, it is questionable whether * Q/ q2 `( `: l' G b% `
the specific improvements advocated in the recommendation are broad enough to be ( f: `; Q5 J/ T/ T# N1 J, B3 w3 I
effective. |