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In their study of whether offering a guarantee of service quality will encourage customers to visit a particular restaurant, Tucci and Talaga have found that the effect of such guarantees is mixed. For higher-priced restaurants, there is some evidence that offering a guarantee increases the likelihood of customer selection, probably reflecting the greater financial commitment involved in choosing an expensive restaurant. For lower-priced restaurants,where one expects less assiduous service, Tucci and Talaga found that a guarantee could actually have a negative effect: a potential customer might think that a restaurant offering a guarantee is worried about its service. Moreover, since customers understand a restaurant’s product and know what to anticipate in terms of service, they are empowered to question its quality. This is not generally true in the case of skilled activities such as electrical work, where, consequently, a guarantee might have greater customer appeal.
For restaurants generally, the main benefit of a service guarantee probably lies not so much in customer appeal as in managing and motivating staff.Staff members would know what service standards are expected of them and also know that the success of the business relies on their adhering to those standards. Additionally, guarantees provide some basis for defining the skills needed for successful service in areas traditionally regarded as unskilled, such as waiting tables.
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