Unconditional service guarantees

In [57], Hart describes some important features of a service guarantee  

Unconditional Examples of unconditional service guarantees include LL Bean s guarantee of 100% satisfaction in everyway. This includes full credit for returns even ten years after purchase. Caterpillar Logistics offers guaranteed delivery in forty-eight hours or the product is free. Okumalink offers shipment within twenty-four hours or the product is free. These guarantees are easy to state, easy to understand, and are devoid of caveats. 

Meaningful Bennigan s fifteen-minute lunch service provides a meaningful measure. The amount of the penalty should correspond to the inconvenience associated with the delay thus, Domino Pizza s delivery in thirty minutes or 3 off was considered more reasonable to customers than a free pizza for deliveries after thirty minutes. 

The concept of unconditional guarantees is particularly relevant when it comes to spare parts provision. Examples such as Caterpillar Logistics and Okuma satisfy the requirements for a good service guarantee, providing such guarantees force careful system design to ensure consistent delivery. 

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Hart, C.W The Power of Unconditional Service Guarantees. Harvard Business Review, Reprint 88405, 54—62, July 1988. 

C.W.L. Hart. The power of unconditional service guarantees. Harvard Business Review, pages 54-62, July-August 1988. 

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