International Journal of Business and Economics Volume 16, No. 3 December, 2017

Not So Flexible Cable

Lauren Haberern

Salem State University, U.S.A.

Linda Jane Coleman

Salem State University, U.S.A.

Abstract

A customer struggles with accepting the service rate that Flexible Cable is charging for cable, Internet, and phone service. Flexible Cable offers a two-year service package that locks her in with a low price for the first year of the contract and then raises the price for the final 12 months of the contract. This forces the customer to pay the increased rate and does not allow the person to be eligible for a new promotional deal that was similar to the original package. This is a type of negative trade talk, highlighting a monopoly service within the provider to customer relationship. Businesses make decisions that directly impact their relationship with consumers, and some of these decisions create a positive business to consumer relationship, whereas other negative decisions strain these relationships. Establishing a strong internal competency within the firm can help eliminate any tension with consumers when a company creates monopolistic decisions. Monopolistic decisions financially benefit the business, despite creating a negative business to consumer relationship and negative customer service reputation.

Keywords：customer service, marketing; internal competency within the firm, advertising, monopoly.

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