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17 Cards in this Set

  • Front
  • Back

Forces Transforming the Service Economy

-Government Policies


-Social Changes


-Business Trends


-Advances in IT


-Globalization

Customer-focused Culture

-Knowing your customer


-Planning complete customerservice


-Sharing and committing tocustomer service -Hiring practices


-Using CRM


-Monitoring and measuring results

What is services?

Services are economic activities offered by one party to another.

Importance of Services

-Services dominate economy in most nations


-Service sector is growing rapidly


-Most new jobs are generated by services


-Powerful forces are transformingservice markets


-Reshaping of demand, supply,competition, customers

Four Categories of Services

-People processing


-Possession processing


-Mental stimulus processing


-Information processing

Tangible actions

People:Barbers or Healthcare








Possessions: Refueling or Recycle

Intangible actions

People: Education or Advertising




Possessions: Accounting or Banking

Reasons for customers complain

–Obtaincompensation


–Releasetheir anger


–Helpto improve the service


–Outof concern for others

•Whatdo customers expect once they have made a complaint?

–Procedural,interactional and outcome justice

Dealing with Complaining Customers and Recovering from Service Failure

•Takecomplaints professionally and not personally


•Beprepared to deal with angry customer who may behave in an insulting way toservice personnel who may not be at fault


•Takethe perspective that customer complaints allow firm a chance to


•Correct problems

ThePower of Service Guarantees

•Forcefirms to focus on what customers want


•Setclear standards


•Requiresystems to get & act on customer feedback


•Forceorganizations to understand why they fail and to overcome potential fail points


•Reducerisks of purchase and build loyalty.

Howto Design Service Guarantees

•Unconditional


•Easyto understand and communicate •Meaningfulto the customer


•Easyto invoke


•Easyto collect


•Credible

What is a Jaycustomer?

Acustomer who behaves in a thoughtless or abusive fashion, causing problems forthe firm, itsemployees, and other customers.

Seven types of Jaycustomers

-TheCheat: thinks of various way to cheat the firm

-TheThief: No intention of paying―sets out to steal or pay less


-TheRulebreaker


-TheBelligerent: •Shoutsloudly, maybe mouthing insults, threats and curses.


-FamilyFeuders: People who get into arguments with other customers ― often members oftheir own family.


-TheVandal: –Servicevandalism includes pouring soft drinks into bank cash machines; slashing busseats, breaking hotel furniture.


-TheDeadbeat

Seven Service Quality Gaps

-Knowledgegap:Learn what customers expect -Standardsgap:Specify SQ standards that reflect expectations

-Deliverygap:Ensure service performance meets standards


-Internalcommunications gap: Ensure that communicationspromises are realistic. Perceptionsgap:Educate customers to see reality of service quality delivered Interpretationgap:Pretest communications to make sure message is clear and unambiguous


-Servicegap:Close gaps 1 to 6 to meet customer expectations consistently.

Tools to Analyze and Address Service Quality Problems

•Fishbonediagram–Cause-and-effect diagram toidentify potential causes of problems


•ParetoChart–Separating the trivial from theimportant. Often, a majority of problemsis caused by a minority of causes


•Blueprinting–Visualization of servicedelivery, identifying points wherefailures are most likely to occur.

–ROQ approach is based on four assumptions:

○Quality is an investment


○Quality efforts must be financially accountable○It’s possible to spend too much on quality


○Not all quality expenditures are equally valid.