Negative Buzz Proves Doubly Damaging

Companies in the service industry typically spend millions of advertising dollars on the introduction and promotion of new service offerings, in hopes of gaining market share, improving customer retention and ultimately increasing revenues. To ward off competitors, they attempt to strike the right balance between improving service quality, which can increase customer satisfaction, and containing the costs of quality improvement, which affects profitability. Fine-tuning to achieve this balance is often a challenge.