RMG 303 Chapter Notes - Chapter 12: Taco Bell, Southwest Airlines, Customer Retention

• School: Ryerson University
• Department: Retail Management
• Course: RMG 303
• Professor: David Lewis

Document Summary

Reading 1: putting the service profit chain to work: top level executives of outstanding service organizations spend little time setting profit goals or focusing on market share, management mantra of 70s/80s. Instead: understand in the new economics of service, frontline workers and customers need to be the center of management concern: successful service managers pay attention to the factors that drive profitability in this new service paradigm. Customer satisfaction drives customer loyalty: leading service companies are currently trying to quantify customer satisfaction, terrorists customers so unhappy they speak out against a poorly delivered service at every opportunity. Can reach hundreds of potential customers, can even discourage acquaintances from trying a service or product. Value drives customer satisfaction: customers are strongly value oriented, customers say that value means the results they receive in relation to total costs (both price and other costs to customers incurred in acquiring the service)