The CEO is modelling behaviour for everyone else at the company. He should not have to do this for every customer as by now the word should be spreading internally that if the CEO can do it, then so can you/
That's not how it works. I doubt that the customer service reps have the ability to arbitrarily dole out perks with no justification other than that they felt like it.
FYI, isn't that exactly the power that Amazon customer service reps have? I'm pretty sure they can decide to arbitrarily give someone refunds, send them new merchandise, etc. Or rather, they can do so but probably within limited rules, not arbitrarily.
I agree that it takes a CEO both showing what to do, and empowering the people below him to do it.