Weeks 1 - 5 Overview

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Department
Retail Management
Course
RMG 303
Professor
Frances Gunn
Semester
Winter

Description
Week 1 Characteristics of Services Compared to Goods: Intangibility Cant touch o Services cant be inventoried o Services cant be easily patented o Services cant be readily displayed or communicated o Pricing is difficult Heterogeneity Diverse (everything is different) o Service delivery and customer satisfaction depends on the employee and customer actions o Service quality depends on many uncontrollable factors o There is no sure knowledge that the service delivered matched what was planned and promoted Simultaneous Production and Consumption o Customers participate in and affect the transaction o Customers affect each other o Employees affect the service outcome o Decentralization may be essential o Mass production is difficult Perishable o It is difficult to synchronize supply and demand with service o Services cannot be returned or resold Service Quality: More difficult for consumers to evaluate A comparison between expectations and performance An evaluation of outcomes & processes www.notesolution.comWeek 2 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) www.notesolution.com
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