Cost of Quality -- AT&T's Customer Service
This descriptive case detailing a consumer's ordeal with AT&T culminating in a change to another service provider gives an opportunity to discuss cost of quality in terms of a service industry rather than a manufacturing environment. Students can also be asked to examine the financial statements of telecommunications companies to assess customer service expenses and to get a picture of the relative size of industry participants.
- Discuss costs of quality with respect to providing customer service.
- Analyze relevant information from the financial statements with respect to treatment of customers.
- Assess industry structure by comparing financial statements of industry participants.
- Identify the potential advantages and disadvantages to customers and to companies of e-billing, e-payments, and e-communications.