BUAD 307 Lecture Notes - Lecture 8: Nest Learning Thermostat, Externality, Service Recovery
13 Oct 2016
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Effort and performance that cannot be physically possessed. Zappos: shoes are the product, fast free shipping & returns is the service. Little opportunity to test services before using (cannot return a service) Lowers risk by offering guarantees or warranties. Mcdonald"s: expanding menu to breakfast and vegetarian options, 24/7 hours. Provide incentives and awards for exemplary behavior (employee of the month) United airlines: training ground crews as pit crews for nascar to increase teamwork and productivity (more flights) Michelin star restaurant in ny: ballet dancer teaching waiters how to move through the restaurant. Technology: self-checkout in grocery stores, nest thermostat in hotel rooms. Communication: deliver the product they describe and communicate. T-mobile and verizon advertising they have nationwide coverage (not true) Good recovery: can create more goodwill than if things had gone smoothly in the first place . Proxy of firm quality: firm image is created by consumers. Firms use reviews to improve service quality.
