Column: Navigating conflicting consumer principles

Dr. Larry Davis is a professor of economics and management at Texas A&M University-Texarkana.
Dr. Larry Davis is a professor of economics and management at Texas A&M University-Texarkana.

Over time, there have been interesting as well as shifting relationships between product and services sellers and consumers. Historically, there was the caveat emptor principle: "let the buyer beware." It is similar to the more recent term "sold as is," in which a buyer assumes the risk that a product or service may fail to meet expectations or have defects. In contrast, there is the concept that "the customer is always right," which encourages managers and sales personnel to give a high priority to creating and maintaining customer satisfaction. I was amused when I recently saw a rebuttal to the concept that said the customer is not always right because some are outright, obnoxious jerks.

This article examines the positive and negative consequences of business dealing with customers by exercising one or the other of the two concepts. I will present observations of both but, in the examples that reflect negative customer experiences, I will not identity company names.

One evening recently, I was invited to join a couple at a local restaurant for dinner. One ordered her usual 8-ounce filet steak, medium rare, with a baked potato. While two of the meals were as expected, her baked potato was hard from not being completely cooked, and the steak was eye-catching by being brown on the outside but looking like raw flesh on the inside. It was pointed out to the server, who replied that the steak was thick and that it was difficult to judge when it was done. She offered to take it back to the grill to have it cooked some more. When she brought it back, she commented that it would be safe to eat because the grill is hot enough to kill any germs that might have touched it. Subsequently, a manager stopped by to ask if everything was OK, to which the customer replied No. The manager's response appeared to be a bit flippant. The dinner experience was uncomfortable and disappointing. It seemed that caveat emptor was the motto driving that dinner experience.

In another Saturday evening incident, I was among a party of seven that called another local restaurant in the afternoon to make a 7 p.m. reservation. The reply was that they were not taking any more reservation for that evening but to come on and there would be no problem being seated. Upon arriving a few minutes before 7, we were told that it would be an hour before we could be seated because a party of 50 was coming in at 7:30. The one who had called to make a reservation in the afternoon engaged in a rather straight-forward discussion with the receptionist, and then the manager. We were subsequently seated for dinner but the process leading to that made the dining experience less than desired. As a side note, the party of 50 had dwindled to about half by the time the group arrived. It seemed that caveat emptor was also the motto that influenced this experience.

On the other hand, I asked some friends and family members to give me examples of excellent customer service that they had experienced or observed in dealing with businesses in Texarkana. My daughter quickly applauded a novelty/boutique, Ginger Junction, as providing exceptional customer service. She shared that she had recently called the owner inquiring about a couple of gifts and was told they would be wrapped and available for pickup in an hour. That was the outcome, resulting in an exceptionally satisfied customer.

Gray's Jeweler's was also was identified as putting customers first by providing excellent customer service. My daughter, again, had purchased a neck chain for her son's 19th birthday in June. The chain broke, so while he was home from college over the Thanksgiving holidays, the item was taken in for repair. Rather than having to wait for several days, the chain was repaired the same day.

A friend identified the Silver Spoon, a local lunch restaurant and catering establishment, as providing excellent customer service. She frequently orders take-out food on short notice for various lunch events, yet she always receives accurate and timely food service-and is treated cordially by the owner.

A couple of observations come to mind from the two unsatisfactory dining incidents. First, it seems that employees other than managers are neither trained nor allowed to make meaningful decisions to correct out-of-the-ordinary, negative situations. Another, considering all of the customer engagements presented above, is that there is either a culture of ambivalence or one of positive service to customers in establishments, where either can impact customer satisfaction and maybe the reputation and even the survival of a company. It is interesting to observe which avenue businesses choose to follow.

A lesson that may be taken from the above examples is that when caveat emptor is applied, customers may go away unsatisfied and unhappy and without a commitment to return soon or to recommend the establishment to others. However, where there is positive customer service, the consumer is likely to go away satisfied, happy and committed to return and to recommend the establishment to others.

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