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This study uses the preventive-appraisal-failure (PAF) model to investigate the quality-cost behavior of call centers specializing in customer support, complaint handling and other telephone-based customer-service operations.

This study conducted a mail questionnaire survey among call center companies in Japan and analyzed the quantitative data of 37 valid responses. Factors were derived from observed variables obtained through the survey using exploratory factor analysis.

The study found that prevention costs exhibited a trade-off with external-failure costs. Also, appraisal costs demonstrated a positive correlation with internal-failure costs and acted as the indicators of internal failure. Supervisory control impacted both external and internal-failure costs. A positive relationship between internal and external-failure costs was suggested for the management of the quality cost of call centers.

This study has three limitations: the representativeness of the sample, the validity of the questions developed by the author and the need for additional qualitative research. Future research should explore the management of service-quality costs in call centers.

This study recommends reducing prevention costs that increase external-failure costs and increasing prevention costs that reduce external-failure costs. Additionally, enhancing supervisor management can mitigate external and internal-failure costs.

This study is the first to identify the relationship between quality and cost behaviors in call centers within the context of service studies, where quality-cost management has been underexplored.