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Chapter 10

Management and Organizational Studies 2320A/B Chapter 10: Chapter 10


Department
Management and Organizational Studies
Course Code
MOS 2320A/B
Professor
Ben Marcus
Chapter
10

This preview shows pages 1-2. to view the full 8 pages of the document.
SERVICES
Service - any intangible offering that cannot be physically possessed
Customer service - specifically refers to human or mechanical activities firms undertake to help satisfy their customers'
wants and needs
*see exhibit 10.1
SERVICE MARKETING DIFFERS FROM PRODUCT MARKETING
Differ on four dimensions…
-
Intangible
Cannot be touched, tasted, or seen like a pure product can
-
More difficult to promote because it can't be physically seen
-
Images tend to reinforce the benefit or value that the service delivers
-
Inseparable
Produced and consumed at the same time
-
Provides opportunities for customers to get directly involved in the service
-
Customers rarely have an opportunity to try the service before they purchase it and it can't be returned
-
High risk so warranties and guarantees are used
-
Inconsistent
Quality may vary because it's produced by humans
-
By the time a firm has recognized the problem, the damage is done
-
Some marketers strive to reduce it through training and standardization
-
Can also use it to their advantage: customization
Expensive though
-
Replace humans with machines to reduce this
-
Internet enabled kiosks
-
Also downsides with technology - consumers don’t embrace it or errors
-
Inventory
Services are perishable and cannot be stored for future use
-
Critical to correctly match supply & demand
-
Excess demand means having to turn customers away in peak periods
-
Excess capacity means less desirable expense/revenue ratio
-
THE GAPS MODEL
Designed to highlight those areas where customers believe they are getting less services than they expect and
how these gaps can be closed
-
Service gap - results when a service fails to meet the expectations that customers have about how it should be delivered
To fill: systematic examination of all aspects of the service delivery process and prescribe the steps necessary to
deliver the optimal service strategy
-
4 types of service gaps:
Knowledge gap: the difference between customers' expectations and the firm's perception of those expectations
Close by matching properly with research
-
Standards gap: the difference between the firm's perceptions of consumer expectations and the service standards
it sets
Close by setting appropriate standards and measuring performance
-
Delivery gap: the difference between the firm's service standards and the actual service it provides to customers
Close by getting employees to meet or exceed standards
-
Communication gap: the difference between the actual service provided to customers and the service that the
firm's promotion program promises
Close by being realistic
-
The Knowledge Gap
Understand consumer expectations
Vary across services & situations
-
Evaluate using metrics
Service quality - customers' perceptions of how well a service meets or exceeds their expectations
5 dimensions: reliability, responsiveness, assurance, empathy, and tangibles
most service programs let customers give responses - voice-of-customer (VOC) programs
-
Zone of tolerance - the area between customers' expectations regarding their desired service and the minimum level of
acceptable service
Desired and expected level of service
-
Customers' perceptions of how well the focal service performs and how well a competitor service performs
-
Importance of each service quality dimension
-
Inexpensive way to gather customer opinions is at point of sale
Might not be the best: won't be negative to an employees face, might need time
-
Using customer complaint behaviour
-
The Standards Gap
Set high service standards, enforce them, and train employees on how to perform tasks to these standards
-
Managers need to lead by example
-
Set specific and measurable goals based on customer expectations
-
Really important they know what is expected of them
-
The Delivery Gap
Where the customer directly interacts with the service provider
-
Need employee empowerment - allowing them to make decisions about how the service is delivered
When this happens, service generally improves
Difficult and costly
More important at a higher price point and with individualized services
-
Provide support and incentives to employees
Emotional support
Instrumental support - systems and equipment to deliver the service properly
Consistent and coherent support throughout the organization
-
Use of technology
Enables customers to buy quickly and easily
Access to a variety of services
Greater degree of control to customer
Can obtain information
Reduced costs
Increased efficiency
-
The Communication Gap
Firms have a lot of control over this
-
Really don't want to overpromise - negative word of mouth
-
You want to be realistic or even under
-
SERVICE RECOVERY
If they fail
-
Unique opportunity to demonstrate customer commitment
-
Entails:
Listening to the customer
Formal complaint department
Be a sympathetic listener
Appear anxious to resolve the situation
Helps to involve the customer in the solution
1.
Providing a fair solution
Distributive fairness - a customer's perception of the benefits he or she received compared with the costs
that resulted in the service failure
Key is to listen carefully to customer
§
Give tangible restitution or assure it won't happen again
§
Procedural fairness - a customer's perception of the fairness of the process used to resolve complaints
Efficient complaint procedures where they have some influence
§
Customers view as more fair if the person follows company guidelines (but not too rigidly)
§
Based on experiences with other firms previously
2.
Resolving the problem quickly
Need clear policies, adequate training, and empowered employees
Welcome complaints
3.
Chapter 10
Monday, March 12, 2018
3:38 PM

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

SERVICES
Service - any intangible offering that cannot be physically possessed
Customer service - specifically refers to human or mechanical activities firms undertake to help satisfy their customers'
wants and needs
*see exhibit 10.1
SERVICE MARKETING DIFFERS FROM PRODUCT MARKETING
Differ on four dimensions…
-
Intangible
Cannot be touched, tasted, or seen like a pure product can
-
More difficult to promote because it can't be physically seen
-
Images tend to reinforce the benefit or value that the service delivers
-
Inseparable
Produced and consumed at the same time
-
Provides opportunities for customers to get directly involved in the service
-
Customers rarely have an opportunity to try the service before they purchase it and it can't be returned
-
High risk so warranties and guarantees are used
-
Inconsistent
Quality may vary because it's produced by humans
-
By the time a firm has recognized the problem, the damage is done
-
Some marketers strive to reduce it through training and standardization
-
Can also use it to their advantage: customization
Expensive though
-
Replace humans with machines to reduce this
-
Internet enabled kiosks
-
Also downsides with technology - consumers don’t embrace it or errors
-
Inventory
Services are perishable and cannot be stored for future use
-
Critical to correctly match supply & demand
-
Excess demand means having to turn customers away in peak periods
-
Excess capacity means less desirable expense/revenue ratio
-
THE GAPS MODEL
Designed to highlight those areas where customers believe they are getting less services than they expect and
how these gaps can be closed
-
Service gap - results when a service fails to meet the expectations that customers have about how it should be delivered
To fill: systematic examination of all aspects of the service delivery process and prescribe the steps necessary to
deliver the optimal service strategy
-
4 types of service gaps:
Knowledge gap: the difference between customers' expectations and the firm's perception of those expectations
Close by matching properly with research
-
Standards gap: the difference between the firm's perceptions of consumer expectations and the service standards
it sets
Close by setting appropriate standards and measuring performance
-
Delivery gap: the difference between the firm's service standards and the actual service it provides to customers
Close by getting employees to meet or exceed standards
-
Communication gap: the difference between the actual service provided to customers and the service that the
firm's promotion program promises
Close by being realistic
-
The Knowledge Gap
Understand consumer expectations
Vary across services & situations
-
Evaluate using metrics
Service quality - customers' perceptions of how well a service meets or exceeds their expectations
5 dimensions: reliability, responsiveness, assurance, empathy, and tangibles
most service programs let customers give responses - voice-of-customer (VOC) programs
-
Zone of tolerance - the area between customers' expectations regarding their desired service and the minimum level of
acceptable service
Desired and expected level of service
-
Customers' perceptions of how well the focal service performs and how well a competitor service performs
-
Importance of each service quality dimension
-
Inexpensive way to gather customer opinions is at point of sale
Might not be the best: won't be negative to an employees face, might need time
-
Using customer complaint behaviour
-
The Standards Gap
Set high service standards, enforce them, and train employees on how to perform tasks to these standards
-
Managers need to lead by example
-
Set specific and measurable goals based on customer expectations
-
Really important they know what is expected of them
-
The Delivery Gap
Where the customer directly interacts with the service provider
-
Need employee empowerment - allowing them to make decisions about how the service is delivered
When this happens, service generally improves
Difficult and costly
More important at a higher price point and with individualized services
-
Provide support and incentives to employees
Emotional support
Instrumental support - systems and equipment to deliver the service properly
Consistent and coherent support throughout the organization
-
Use of technology
Enables customers to buy quickly and easily
Access to a variety of services
Greater degree of control to customer
Can obtain information
Reduced costs
Increased efficiency
-
The Communication Gap
Firms have a lot of control over this
-
Really don't want to overpromise - negative word of mouth
-
You want to be realistic or even under
-
SERVICE RECOVERY
If they fail
-
Unique opportunity to demonstrate customer commitment
-
Entails:
Listening to the customer
Formal complaint department
Be a sympathetic listener
Appear anxious to resolve the situation
Helps to involve the customer in the solution
1.
Providing a fair solution
Distributive fairness - a customer's perception of the benefits he or she received compared with the costs
that resulted in the service failure
Key is to listen carefully to customer
§
Give tangible restitution or assure it won't happen again
§
Procedural fairness - a customer's perception of the fairness of the process used to resolve complaints
Efficient complaint procedures where they have some influence
§
Customers view as more fair if the person follows company guidelines (but not too rigidly)
§
Based on experiences with other firms previously
2.
Resolving the problem quickly
Need clear policies, adequate training, and empowered employees
Welcome complaints
3.
Chapter 10
Monday, March 12, 2018
3:38 PM
You're Reading a Preview

Unlock to view full version

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

SERVICES
Service - any intangible offering that cannot be physically possessed
Customer service - specifically refers to human or mechanical activities firms undertake to help satisfy their customers'
wants and needs
*see exhibit 10.1
SERVICE MARKETING DIFFERS FROM PRODUCT MARKETING
Differ on four dimensions…
-
Intangible
Cannot be touched, tasted, or seen like a pure product can
-
More difficult to promote because it can't be physically seen
-
Images tend to reinforce the benefit or value that the service delivers
-
Inseparable
Produced and consumed at the same time
-
Provides opportunities for customers to get directly involved in the service
-
Customers rarely have an opportunity to try the service before they purchase it and it can't be returned
-
High risk so warranties and guarantees are used
-
Inconsistent
Quality may vary because it's produced by humans
-
By the time a firm has recognized the problem, the damage is done
-
Some marketers strive to reduce it through training and standardization
-
Can also use it to their advantage: customization
Expensive though
-
Replace humans with machines to reduce this
-
Internet enabled kiosks
-
Also downsides with technology - consumers don’t embrace it or errors
-
Inventory
Services are perishable and cannot be stored for future use
-
Critical to correctly match supply & demand
-
Excess demand means having to turn customers away in peak periods
-
Excess capacity means less desirable expense/revenue ratio
-
THE GAPS MODEL
Designed to highlight those areas where customers believe they are getting less services than they expect and
how these gaps can be closed
-
Service gap - results when a service fails to meet the expectations that customers have about how it should be delivered
To fill: systematic examination of all aspects of the service delivery process and prescribe the steps necessary to
deliver the optimal service strategy
-
4 types of service gaps:
Knowledge gap: the difference between customers' expectations and the firm's perception of those expectations
Close by matching properly with research
-
Standards gap: the difference between the firm's perceptions of consumer expectations and the service standards
it sets
Close by setting appropriate standards and measuring performance
-
Delivery gap: the difference between the firm's service standards and the actual service it provides to customers
Close by getting employees to meet or exceed standards
-
Communication gap: the difference between the actual service provided to customers and the service that the
firm's promotion program promises
Close by being realistic
-
The Knowledge Gap
Understand consumer expectations
Vary across services & situations
-
Evaluate using metrics
Service quality - customers' perceptions of how well a service meets or exceeds their expectations
5 dimensions: reliability, responsiveness, assurance, empathy, and tangibles
most service programs let customers give responses - voice-of-customer (VOC) programs
-
Zone of tolerance - the area between customers' expectations regarding their desired service and the minimum level of
acceptable service
Desired and expected level of service
-
Customers' perceptions of how well the focal service performs and how well a competitor service performs
-
Importance of each service quality dimension
-
Inexpensive way to gather customer opinions is at point of sale
Might not be the best: won't be negative to an employees face, might need time
-
Using customer complaint behaviour
-
The Standards Gap
Set high service standards, enforce them, and train employees on how to perform tasks to these standards
-
Managers need to lead by example
-
Set specific and measurable goals based on customer expectations
-
Really important they know what is expected of them
-
The Delivery Gap
Where the customer directly interacts with the service provider
-
Need employee empowerment - allowing them to make decisions about how the service is delivered
When this happens, service generally improves
Difficult and costly
More important at a higher price point and with individualized services
-
Provide support and incentives to employees
Emotional support
Instrumental support - systems and equipment to deliver the service properly
Consistent and coherent support throughout the organization
-
Use of technology
Enables customers to buy quickly and easily
Access to a variety of services
Greater degree of control to customer
Can obtain information
Reduced costs
Increased efficiency
-
The Communication Gap
Firms have a lot of control over this
-
Really don't want to overpromise - negative word of mouth
-
You want to be realistic or even under
-
SERVICE RECOVERY
If they fail
-
Unique opportunity to demonstrate customer commitment
-
Entails:
Listening to the customer
Formal complaint department
Be a sympathetic listener
Appear anxious to resolve the situation
Helps to involve the customer in the solution
1.
Providing a fair solution
Distributive fairness - a customer's perception of the benefits he or she received compared with the costs
that resulted in the service failure
Key is to listen carefully to customer
§
Give tangible restitution or assure it won't happen again
§
Procedural fairness - a customer's perception of the fairness of the process used to resolve complaints
Efficient complaint procedures where they have some influence
§
Customers view as more fair if the person follows company guidelines (but not too rigidly)
§
Based on experiences with other firms previously
2.
Resolving the problem quickly
Need clear policies, adequate training, and empowered employees
Welcome complaints
3.
Chapter 10
Monday, March 12, 2018 3:38 PM
You're Reading a Preview

Unlock to view full version