ABSTRACT

A service organization has two potential types of customer: first-time buyers and repeat customers. The organization has an initial opportunity to impress first-time buyers through the quality of service. If suitably impressed, the customer may become a repeat customer. Repeat customers not only demonstrate loyalty, but also often act as unpaid advocates of the organization’s service. Repeat customers, by definition, use a service for a second or subsequent time. They will have prior experience of the service quality of this organization, but perhaps also of the service provided by its competitors. Repeat customers are arguably in a powerful position. First, they have experience and knowledge, and possibly more than some novice employees providing service. Second, they bring high expectations to the service they now are experiencing. They are likely to expect that the current service will be comparable or higher than their earlier experiences of service (including that provided by competitors). This seems a reasonable expectation.