Seeking a competitive advantage, some professional
service firms(for example, firms providing advertising,
accounting, or health care services) have considered
offering unconditional guarantees of satisfaction. Such
(5) guarantees specify what clients can expect and what the
firm will do if it fails to fulfill these expectations.
Particularly with first-time clients, an unconditional
guarantee can be an effective marketing tool if the
client is very cautious, the firm’s fees are high, the
(10) negative consequences of bad service are grave, or
business is difficult to obtain through referrals and
word-of-mouth.
However, an unconditional guarantee can sometimes
hinder marketing efforts. With its implication that fail-
(15) ure is possible, the guarantee may, paradoxically, cause
clients to doubt the service firm’s ability to deliver the
promised level of service. It may conflict with a firm’s
desire to appear sophisticated, or may even suggest that
a firm is begging for business. In legal and health care
(20) services, it may mislead clients by suggesting that law-
suits or medical procedures will have guaranteed out-
comes. Indeed, professional service firms with outstandin
reputations and performance to match have little to gain
from offering unconditional guarantees. And any firm
(25) that implements an unconditional guarantee without
undertaking a commensurate commitment to quality of
service is merely employing a potentially costly
marketing gimmick.