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Lecture

Service Profit Chain


Department
Retail Management
Course Code
RMG 303
Professor
Frances Gunn

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The Service Profit Chain
Measuring the relationships in the service profit chain across units
Communicating results of the self-appraisal resulting from the measurement
Developing a balanced score card of performance measures
Designing efforts to help managers improve service profit chain performance
Tying recognition and rewards to established measures
Communicating results and encouraging best practices
Components of Customer Expectations
Desired Service Level Wished for level of service quality that customer believes can
and should be delivered
Adequate Service Level Minimum acceptable level of service
Predicted Service Level Service level that customer believes firm will actually
deliver
Zone of Tolerance Range within which customers are willing to accept variations in
service delivery
Perceived Service Quality
Word of Mouth
Personal Needs
Past Experience
Factors that Influence Customer Expectations of Services
The Purchase Process for Services
Prepurchase Stage (Awareness of Need, Information Search, Evaluation of
Alternatives)
Service Encounter Stage (Request service from supplier, Service delivery)
Postpurchase Stage (Evaluation of performance, Future intentions)
Perceived Risks in Purchasing and Using Services
Functional unsatisfactory performance outcomes
Financial monetary loss, unexpected extra costs
Temporal wasted time, delays lead to problems
Physical personal injury, damage to possessions
Psychological fears and negative emotions
Social how others may think and react
Sensory unwanted impacts to any of five senses
How Customers Might Evaluate Online Businesses:
Accessibility
Navigation
Design and Presentation
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