Why Customer Service Frustrates Consumers: Using a Tiered Organizational Structure to Exploit Hassle Costs

April 4, 2023
Anthony Dukes and Yi Zhu

"Many Customer Service Organizations (CSOs) reflect a tiered, or multi-level, organizational structure, which we argue imposes hassle costs for dissatisfied customers seeking high levels of redress. [...] We argue that the tiered structure helps the firm to control redress costs..."

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