Final answer:
The additional costs of providing good customer service include administrative costs, account management, and processing insurance claims. These expenses are essential for maintaining customer satisfaction but can lead to higher product prices due to the incorporation of business taxes used for safety, environment, and service improvements.
Step-by-step explanation:
Good customer service is a critical aspect of a successful business, however, it comes with additional costs. These costs include administrative costs associated with hiring and training employees to provide high-quality service, account management efforts to ensure customer satisfaction, and the process of handling customer inquiries and insurance claims efficiently.
Additionally, businesses face competition from firms offering better or cheaper products, which can reduce profits and potentially result in a loss of business and employee layoffs. The costs of good customer service are also interrelated with expenses incurred by a business for taxes, which are translated into the price of products to cover services aimed at improving safety, reducing environmental harm, and expanding services.