L.L.Bean's 100 percent satisfaction guarantee is a good example of a service guarantee that goes wrong and hurts a firm's financial performance.

Question

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L.L.Bean's satisfaction guarantee has been a key factor in building customer loyalty and brand reputation over the years. In February 2018, the company decided to revise the policy by limiting returns and exchanges for one year after purchase with proof of purchase, as a response to abuse of the previous policy. This decision led to negative publicity and backlash from customers, resulting in a decline in sales and revenue. Therefore, L.L.Bean's service guarantee did not go wrong; rather, the change in the policy had an adverse impact on financial performance.

LLBean's 100 Percent Satisfaction Guarantee Is a Good Example of a Service