Understanding customers expectation is one of the fundamental factor’s to retain in the business, whether the business is a service provider or a manufacturer. Simply because if a business fails to understand the customer needs and satisfy the expectations, its running the risk of losing customers instead of gaining. Unsatisfied customer is a liability for any business as it will bring numerous negative outcomes. Apart from losing the business of affected customers, the bad reviews, blog posts and word of mouth will put off many more potential customers. The notion of customer is always right is a century old concept and it’s becoming more relevant to the current market conditions than ever. The purpose of this essay is to take an in-depth look in to the concept of customer is always right and evaluate how relevant said concept to the modern market conditions

1. A detailed investigation to validate the popular marketing concept of customer is always right,
still the most important slogan for any business
Charm Rammandala
California Intercontinental University

2. Abstract
Understanding customers expectation is one of the fundamental factor’s to retain in the business,
whether the business is a service provider or a manufacturer. Simply because if a business fails
to understand the customer needs and satisfy the expectations, its running the risk of losing
customers instead of gaining. Unsatisfied customer is a liability for any business as it will bring
numerous negative outcomes. Apart from losing the business of affected customers, the bad
reviews, blog posts and word of mouth will put off many more potential customers.
The notion of customer is always right is a century old concept and it’s becoming more relevant
to the current market conditions than ever.
The purpose of this essay is to take an in-depth look in to the concept of customer is always right
and evaluate how relevant said concept to the modern market conditions

3. Introduction
In the modern world running a business is a complex operation. Few decades ago, inventors and
entrepreneurs came up with products or services and customers would buy it if they think those
products or services satisfy their needs. Average customer was generally a local residence unless
the retailer based on a big metropolis. Customer satisfaction was up to the point where customer
decides is it the product that he was looking for and the price is what he wants to pay. Retailers
and its staff’s task was to convince the customer that, in-fact what they offer is the best product
in the market for the price it’s selling. In most cases that was the end of the transaction and in
some cases customer may get a warranty which will cover the product for a length of period pre-
determined by retailer. This was the extend of customer satisfaction.
However this is not the case anymore. Now we are part of the global village with the access to
internet where potential customers can read and discuss rivals products, their services, product
specifications, other customer’s experiences and after sale service they enjoyed. As a result when
a customer get in touch with the retailer, it is wise to comply with the request rather than
upsetting the customer and ending up with a bad review.

4. Main body
Customer is always right is a popular concept & a slogan in the retail industry whether it’s a
manufacturing company or a service provider. Most companies use it as a part of the marketing
campaign. By letting customers know regardless of whatever the nature of complain, we believe
your standpoint and we will resolve it is the common understanding.
However over the last few years with the increased focus on human resource management and
employee centric management practices, some business professionals and academics started a
debate on the validity of this notion.
When it was first introduced in early 1900 by Harry G Selfridge through his book called romance
of commerce (Harry G Selfridge, 1906) it was a revolutionary concept. Over the past hundred
years it became very popular within the business field, more noticeably in the retail sector. By
giving power to customer, businesses believe it gives the customers added security and
reassurance that the products or services they sell is really worth the money they pay and value
their opinion
However opposing views put forward by academics and some of the business leaders argue that
by letting the policy of customer is always right in the forefront of the business strategy, actually
having a negative effect than the potential positive effect. Hal Rosenbluth in his book called put
customers second, put your people first (Hal Rosenbluth, 2002) explain by stating that by
insisting customers always right, company implies employees always wrong. This leads to
greater dissatisfaction among employees and high employee turnover. Similar point of view
echoed by the former CEO of Southwest airlines Herb Kelleher on his book titled Nuts!
Southwest airlines crazy recipe for business (Herb Kelleher, 1998)

5. If we take an in detail look at the reasons why some scholars oppose to the view of customer is
always right, some of the key points as below,
 One of the main argument is, by having such a policy company alienate the employees
making them unhappy. With the current market conditions, retention of customers comes
first but it is equally important to retain the employees as well
 Most of the companies who have adopted the concept of customer is always right, often
agree to refund the full price of the product regardless of when it was bought, even if the
content is used. In some cases all customer have to say is she or he didn’t like the product
and the company is willing to refund the money without even having to return the
purchased item. While this makes company popular with the customers, the impact on the
bottom line could be negative. Even if you keep a provision in the balance sheet to cover
up the cost, this would leave a dent on the profits. As a result other stake holders of the
company may suffer
 Some customers are simply wrong and it’s obvious. By even trying to solve their issue
become an unproductive effort. Herb Kelleher explains in his book ‘Nuts’ Southwest
airlines crazy recipe for business (1998) that one customer keep writing and complain
about the colour and the design of the on-board staff. How could one resolve that in a
satisfactory way? He argues.
However if we look at the pros of sticking to the policy of customer is always right, we could see
benefits are far reaching than the cons. One of the central argument against this policy was it will
lead to unhappy employee. Having an effective strategy on training and development and
customer service, these hurdles can be overcome. In article written by Jordan Fraczeck to Wall
Street Journal titled he explains how far some companies go to highlight the important of

6. customer satisfaction. He observed that top software company Braincell has introduced a new
position to the company structure called Customer Happiness Manager by taking the concept to
another level.
It is essential to have a properly laid out customer service policy. It should acknowledge
companies vision and mission about the customer care, problem solving and handling issues.
This will give a clear understanding to employees what to do in any given situation. When
employees have overall understanding on the company philosophy on customer service, they
have the room to navigate within it and resolve any issue that comes in their way
Equally important to have an on-going training and development to all employees and use of real
life examples. This will help both old and new employees to learn from each other
By having a customer is always right policy and living by it will certainly gives an advantage
when it comes to marketing. Traditionally the perception was value retailers don’t focus on
customer service much as their prices are low hence customers will return anyway. However this
attitude fast changing. Wal-mart, CVS, Safeway and even Dollar tree now increasingly focusing
on customer service and resolving any issue in customers favour. This is partly due to the
increased competition among the retailors as well as to avoid negative reviews which would
result in reaching the message to the wider audience

7. Graph 1
David Rosenfeld wrote in his article to WSJ after conducting a research on three thousand online
customers and found that 40.9% customers (graph 1) buying decision would influence by the
customer reviews and testimonials. Further 32.5% decides whether to buy or not based on the
credibility of online customer service.
Conclusion
It is quite clear after in-depth look in to the concept of customers is always right, that it is wise to
stick with the policy. As discussed and argued in the paper, consequences of not having the
policy is far greater than having it. Most scholars oppose to the idea simply because it will affect
the moral of the employees. However with properly structured training and developments, roll
plays and through sharing experiences, this hurdle can be overcome.

8. Bottom line though, customers bring in the much needed revenue to the company and without
having a good in-flow of revenue, company couldn’t maintain a happy employee anyway. Frank
Cooper, 2010)
As Marshall Field, the founder of Marshall Field’s departmental store once said ‘write or wrong,
the customer is always right.

9. Reference
Melanie Weddall (2015) Top five fastest growing consumer complaints
retrieved from business economics & theory collection http:/go.galegroup.com.ezp (8/30/2015)
Lydia Jilek (2015) Driving top-line growth through customer satisfaction
retrieved from business economics & theory collection http:/go.galegroup.com.ezp (9/1/2015)
Jordon Fraczeck (2015) Top software reseller creates new customer happiness manager position
retrieved from infortrac news stand in http:/go.galegroup.com/ps.i.do (9/1/2015)
Harry G Selfridge (1906) Romance of Commerce
Ed Steven, Pasavac Armonok (2012) Cracking the code: Leveraging consumer psychology to
drive profitability. retrieved from Gale virtual reference library http:/ go. Galegroup.com
(9/1/2015)
Herb Kelleher (1998) Nuts, Southwest airlines crazy recipe for business and personal success
Hal Rosenbluth (2002) put the customer second, put your people first & watch them kick butt
Paul Szwark (2005) Researching customer satisfaction and loyalty. How to find out what people
really think. retrieved from books 24x7 http:/gale. Galegroup.com (9/1/2015)
Frank Cooper (2010) Customer signs your pay check
retrieved from books 24x7 http:/gale. Galegroup.com (9/1/2015)