Many product-dominant firms use quality service
Group of answer choices
as a way to minimize the cost of production.
as a way to increase the perishability of their products.
to install a voice of the customer program.
to maintain a sustainable competitive advantage.
The correct answer and explanation is :
Correct answer: to maintain a sustainable competitive advantage.
Many product-dominant firms use quality service to maintain a sustainable competitive advantage because it adds value beyond the physical product itself. While tangible products can be replicated or matched by competitors, exceptional service is often harder to imitate, giving firms a long-term edge in the marketplace.
A sustainable competitive advantage is a benefit that allows a company to outperform its rivals consistently over time. When companies offer high-quality products and back them with superior customer service, they create a complete customer experience that builds trust, satisfaction, and loyalty. This differentiation helps protect against price wars and reduces customer churn.
For example, a tech firm that sells smartphones may distinguish itself not just by its device’s features, but also by offering responsive support, a generous return policy, or convenient repair services. These service enhancements can be the deciding factor for customers choosing between similar products from different brands.
Additionally, customers are more likely to become repeat buyers and recommend the brand to others when they receive outstanding service. Over time, this creates a strong brand reputation and customer base, which are critical to sustaining growth and profitability.
Quality service also provides valuable insights. When customer-facing employees engage with clients effectively, they gain feedback that can guide product improvements and innovation—further reinforcing the firm’s market position.
In contrast, the other answer choices are not accurate:
- Minimizing production costs focuses on efficiency, not service.
- Increasing perishability is not a goal and is usually a liability.
- While voice of the customer programs are useful, they are a tool within service strategy, not the overall reason for providing quality service.
In short, quality service helps firms build and protect a unique market position that supports long-term success.