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Quality Quiz:Professor Cleary
Another quiz from Professor Cleary

Congratulations: "B" is correct!

Cost cannot always be measured in strict terms of monetary gain or loss, W. Edwards Deming would say, for there are costs that are "unknown and unknowable" in transactions. What Will N. Werker did not take into account was the multiplying effect of creating a dissatisfied customer. Statistics show that dissatisfied customers tell many others about their experiences with a company that has failed to deliver, creating a compound loss of faith in the organization and an ensuing loss of potential customers who hear this story. This loss cannot be calculated.

When one has a positive experience with an organization, on the other hand, the story that that customer tells will perhaps draw others to use the services of the company; this is likewise an "unknown and unknowable" source of future revenue. Deming talks about "delighting the customer" as a way to manage the costs of making mistakes in service. When an organization bends over backwards to ameliorate the effects of an error, most customers respond with amazement and even delight, and are eager to share their story with others.

Let’s see what Deming said about this in a 1984 interview by William W. Scherkenbach:

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