Case 1 : Is the customer Always Right? Brianna Sells an intangible product - hom

Question

Case 1 : Is the customer Always Right?

Brianna Sells an intangible product - homeowners’ insurance. She works hard and tries to meet the expectations of her customers. Eva and Murray Shaddock have had insurance policy for three years. Mr. Shaddock calls Brianna and reports that their root was damaged during last nights storm. Brianna tells him that she and an adjuster will be out to assess the damage . Brianna and the adjuster go to the Shaddock’s home and find several shingles are missing on the north side of the house.

On examination, the damage to the shingles seems unusual. Normally, Brianna would expect to find a few partial shingles still in pace. In this case, it was obvious that eight whole shingles were missing. With Mr. Shaddocks permission, Brianna and the adjuster talk with the neighbours and finds that they no damage again and, based on what they see, suspect that the shingles were pulled out of place. Brianna and the insurance adjuster agree that the damage was not caused by the wind.

in personal development

Answer the following :

1. Should Brianna tell the Shaddocks that she and the adjuster concluded that the shingles were pulled off the roof and not removed y wind? If so, what should she say?

2. To keep the Shaddocks as customer, should Brianna file a report that says the roof damage was caused by the wind and should covered by the insurance policy? What might be the result of this filing?

3. What consequences might the Shaddocks suffer for falsely claiming damage to their roof?

4. Is “honesty the best policy” in this case?

Explanation / Answer

1. In this case, Brianna is in a very delicate situation. It is obvious that Mr. Shaddocks is trying to cheat the insurance company by falsely claiming that the roots of his house was damaged by storms. As all the shingles were missing, it was obvious that the damage was not done by the storm but by Mr. Shaddock himself in an apparent bid to falsely claim insurance.

Now, in this case Brianna is apparently dealing with a dishonest customer. Brianna would have to subtly hint to the Shaddocks that the damage was not caused by the storms and seems to have been pulled off the roof. This should be done without pointing fingers at the Shaddocks or accusing them even in the slightest manner. She should simply say that clearly the root was not damaged by the storms and the matter will have to be investigated further and in detail, to determine the exact cause for the damage. If the customer is lying, this will deter him.

2. No, Brianna should not file a report saying that the damage was caused by wind. This would be unethical and will prompt customers like Mr. Shaddock to take advantage of the insurance company. Brianna should be honest and report the case in a truthful manner. She should file all the details she noticed during her inspection. Customers like Mr. Shaddocks try and take advantage of the companies they buy from and over the long tern they have a negative customer value.

The result of this filing may work in favor of the company by deterring Mr. Shaddocks from trying to cheat the insurance company.

3. Shaddocks are customers of an insurance company. By falsely claiming damages, their risk profile will increase manifold and they will become undesirable in the eyes of the insurance company. As they have tried to cheat the company, the insurance company might take appropriate action against them depending on their policy and the law of the land.

4. Yes, "honesty is the best policy" in this case. Relationship between an insurance company and the insured customer is based on trust. Both the buyer and the seller are dependend on each other and gain from this relationship. None of the parties should try and be dishonest as it will disturb the symbiotic relationship between them.

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