For example, we can take a look at two hypothetical companies: ABC Inc. and DEF Inc.  Both of these companies sell home theater systems, with the quality of the DEF home theater systems actually being a little better on average.  When customers call DEF Inc. about problems they are having with their systems, they are placed on hold for long periods of time.  When they are finally able to talk to a customer service representative, their concerns are downplayed, they are often treated rudely, and they are told that to have any problems corrected they must go through a lot of trouble and be inconvenienced.  They may be told, for example, that they must package and ship any defective products to the company at their own expense.

 When customers call ABC Inc., however, their phone calls are taken quickly, the customer service representative talks with them in depth about their concerns, and technicians are sent to their homes to correct any product malfunctions.  Even though the DEF Inc. home theater systems may be of a little better quality, ABC Inc. ends up selling more systems and having more loyal customers because of their superior customer service.