ETHICS customers may perceive greater risk when buying services than when buying products.
Ethics are important hear. The internal accountant who is responsible for gathering data on service quality must accurately report the bad news as well as the good. A customer who has been stung once by misleading advertising or firm’s failure to deliver the promised performance will be loathe to try that firm again. A manufacturer can offer a warranty or product replacement. But the service firm must consider the customer’s wasted time. Therefore, the service firm must be especially careful to avoid promising more than can or will be delivered.