MKTG10001 Lecture 11: Lecture 11 (Taught as Week 10) - Services Marketing: Quality, Services Failure, & Recovery
6 Jun 2018
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MKTG10001 - PRINCIPLES OF MARKETING
Lecture 11 . 1 – Services Marketing: Quality
Service quality: is judged relative to customer expectations
• Dimensions of service quality:
• Technical outcome / quality: what is delivered
• Reliability: ability to perform the promised service
dependably & accurately
• Responsiveness: willingness to help customers & provide prompt service
• Functional outcome / quality: how it is delivered
• Assurance: employees’ knowledge, courtesy, & ability to
inspire trust & confidence
• Empathy: caring individualised attention given to customers
• Tangibles: appearance of physical facilities, equipment,
personnel, & written materials
Lecture 11 . 2 – Services Marketing: Service Failure & Recovery
• Unresolved failure undermines growth
(diagram to right)
• The majority of unsatisfied customers don’t
complain to the business, but will tell an
average of 8 or 9 other people
• If the complaint is resolved quickly, the
majority of customers will be retained, &
will tell on average 5 people about the
resolution
Service recovery paradox: (sometimes) service
recovery can lead to higher customer satisfaction
(diagram to right)
Treating customers fairly:
• Distributive fairness: fairly compensated
• Procedural fairness: fairness of company’s policies &
practices. Easy to complain
• Interactional fairness: treated well by employees
Framework for detecting & corrective service failure:
Reorganising to cure the cycle of failure:
• Provide increase latitude for front-line service workers
(within specified limits)
• Recruit people who respond well to freedom & flexibility in their roles
• Involve employees in the selection of co-workers
• Pay employees for performance (rather than effort)
• Learn from lost customers (go back & ask them what went wrong)
LECTURE 12 – REVISION
Briefly reviewed previously discussed content – nothing new
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
2 services marketing: service failure & recovery: unresolved failure undermines growth (diagram to right, the majority of unsatisfied customers don"t complain to the business, but will tell an average of 8 or 9 other people. If the complaint is resolved quickly, the majority of customers will be retained, & will tell on average 5 people about the resolution. Service recovery paradox: (sometimes) service recovery can lead to higher customer satisfaction (diagram to right) Treating customers fairly: distributive fairness: fairly compensated, procedural fairness: fairness of company"s policies & practices. Easy to complain: interactional fairness: treated well by employees. Reorganising to cure the cycle of failure: provide increase latitude for front-line service workers (within specified limits) Involve employees in the selection of co-workers: recruit people who respond well to freedom & flexibility in their roles, pay employees for performance (rather than effort, learn from lost customers (go back & ask them what went wrong)
