Customer service and logistical responsiveness

In practice, we see that many companies have different approaches to customer service. Customer service can be considered at three levels: 1 pre-transaction elements 2 transaction elements 3 post-transaction elements. Pre-transaction elements are elements related to company policies or programs, e.g. written statements of service policy, organisational structure and system flexibility. Transaction elements are those customer service variables directly related to the performance of the physical delivery function, e.g. product and delivery reliability. Post-transaction customer service elements typically support the product while it is in use, such as product warranty, parts and repair services, customer complaint and product exchange procedures.

Ex. 12‑20 Customer service elements timeline

Keywords: tranaction elements, pre-transaction elements, post-transaction elements

Ex. 12‑21 Customer behaviour when out of stock

Keywords: out of stock, customer behaviour

Ex. 12‑22 Price of inventory level

Keywords: inventory, demand, supply, forecasts

Logistics is very important during the transaction itself in the business-to-consumer segment, especially in finished goods retail. Holding inventory of manufactured goods is not cost-effective for either sellers or manufacturers because it means storage costs and frozen funds. If in the business-to-business segment, it is quite common for the goods to be delivered to the buyer not on the day of the financial transaction, but later (more in Chapter 3). Depending on the product, this can be in the range of a few days, a few weeks or even a few months. Whereas in retail, where the buyer is a natural person, it is different.

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