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Service guarantees have been increasingly used to increase consumer confidence, to signify quality, and to differentiate from similar service competitors. A service guarantee typically entitles a customer to some form of compensation: replacement, refund, or credit. Some companies offer unconditional service guarantees, but often there are conditions.

When companies offer a guarantee of satisfaction for services rendered, they must consider every aspect of the customer’s expectations. The guarantee is a clear standard that defines what the company and the customer can expect. If a service does not meet customer expectations, it is often considered a failure of quality, which companies and employees are keen to avoid. Customer feedback is of primary importance to these companies. Additionally, negative customer feedback typically triggers a standard course of action, ...

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