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Chap-2 Customer Service (SCM) Exhibit: Poor Service Can Result in Lost Customers AT&T is one of the largest Internet and cell phone providers in the United States and has millions of customers. But even large firms can get some things wrong. Take, for example, a person who went to an AT&T store to buy the latest version of the Apple smartphone. After purchasing the phone, the customer left the store and tried to set it up for the family member who would be using the phone. For several reasons, the customer was unable to do so and decided to return the phone to the AT&T store where it had been purchased on the same day two hours earlier. However, prior to going back to the store, the customer remembered that the salesperson in the store had said that the phone could not be returned for any reason. That had sounded odd at the time, but the customer and his family member did not think that they would be returning it because they had previously owned Apple phones and had been generally happy with them. They telephoned Apple and asked them about the AT&T policy of not accepting returns. Apple representatives indicated that there was a 14-day return window for their products, so AT&T should take the phone back. Armed with that information, they returned to the AT&T store with the phone in hand. At that time, a different store salesperson said that yes, they could in fact return the phone because it was within the 14-day return window. However, that's when the not-very-pleasant surprise occurred. The salesperson indicated that there would be a $45 restocking fee for the returned phone. Not surprisingly, the customers felt that such a charge was not warranted, but it was indicated to them that the restocking fee was company policy and no exceptions could be made. When the customers complained, they were told to look at their sales receipt, where, on the back of the receipt, the restocking policy and fee were stated. No salesperson in the AT&T store had verbally told them of the restocking fee, and there was no signage in the store revealing that policy. They argued that you could not see the policy and fee until you received the receipt, which was AFTER the item was purchased-thus condemning any customers to pay the restocking fee even if they read the receipt immediately after purchase and might wish to cancel it. What a conundrum! After failing to convince the store salesperson with that logic, they reluctantly paid the restocking fee to return the phone.