Services Test 3

Front 1

What is service recovery

Back 1

the actions a firm takes in response to a service failure (need failure to have recovery)

paradox- should you disappoint so that the company can recover and gain greater loyalty?

Front 2

what are the positive effects of service recovery

Back 2

increased satisfaction and loyalty (positive WOM)

provides info to improve service and make it right the first time

Front 3

what are the negative effects

Back 3

risk of creating an extreme, irrational complainer

may aggravate employees over time (lower morale, higher turnover)

Front 4

types of complainers

Back 4

passives, voicers, irates, activists

Front 5

passives

Back 5

doubt the effectiveness of complaining

least likely to take action

less alienation to marketplace than irates and activists

Front 6

voicers

Back 6

less likely to "do damage"; the providers best friend

believe that complaining has social benefits and can be positive

less alienation than irates and activists

Front 7

irates

Back 7

average complainers to provider; less likely to complain to 3rd parties-

more likely to engage in negative WOM and to switch providers

Front 8

activists

Back 8

above average complaining on all dimensions (provider, WOM, 3rd parties)

feel alienated from marketplace

complaining has positive consequences

extreme can become irrational complainers (terrorists)

Front 9

what customers expect when they complain

Back 9

outcome, procedural, and interactional fairness

Front 10

outcome fairness

Back 10

focuses on the results customers receive from complaints

expect compensation to match their level of dissatisfaction- wants the firm to "pay" for their mistake

monetary, apology, future free service, reduced charge, repairs, replacement

can be uncomfortable with overcompensation

Front 11

procedural fairness

Back 11

in terms of policies, rules, and timeliness of the complaint process

want easy access to complaint process

appreciate adaptability

customers don't want to have to "prove their case"

Front 12

interactional fairness

Back 12

the interpersonal treatment received during the complaint process

customers expect to be treated politely, with care and honesty- employee failure can be the result of lack of training and empowerment

Front 13

8 potential recovery strategies

Fix the customer

Back 13

response quickly, provide appropriate communication, treat customer fairly, cultivate relationships with customers

Front 14

8 potential recovery strategies

fix the problem

Back 14

encourage and track complaints, learn from recovery experiences, learn from lost customers. make the service fail-safe

Front 15

respond quickly

Back 15

need systems, procedures, and empowerment

take care of problems on the front line- enable employees to "own" complaints, pick up the phone

empower employees- access to customer info, train for recovery, don't punish them for doing whats right

allow customers to solve their own problems

Front 16

provide appropriate communication

Back 16

1. display understanding and accountability

most of common remedies are non monetary (explanation, thank you, apology, assurance it won't happen again)

2. supply adequate explanations

reduce dissatisfaction, 2 criteria: content- facts and info, and style- delivery (credible, honest)

Front 17

treat customers fairly

Back 17

outcome, procedural and interactional fairness

Front 18

cultivate relationships with customers

Back 18

customers with a strong relationship are:

more forgiving, may demand less immediate compensation

easier to "fix the customer" if a strong relationship has already been established

Front 19

encourage and track complaints

Back 19

complaints should be anticipated, encourages, and tracked

do research- CIT, lost customer interviews

listen to employees- empowerment

teach customers how to complain- make it easy (procedural fairness)

use technology to facilitate

Front 20

learn from recovery experiences

Back 20

a source of diagnostic, prescriptive information

track recovery efforts and solutions (reveals systematic problems and their sources)

Front 21

learn from lost customers

Back 21

requires "facing up" to weakness

need an in-depth approach to data gathering

first, determine if the lost customer is worth keeping

especially in B2B

Front 22

make the service fail-safe

Back 22

TQM, poka-yokes- automatic warnings or controls in place to ensure mistakes are not made

create a culture of 0 defects!

Front 23

service guarantee

Back 23

a pledge or assurance that a product offered by a firm will perform as promised and, if not, then some form of reparation will be undertaken

Front 24

characteristics of an effective service guarantee

Back 24

unconditional (hardest one for services), meaningful (guarantee the elements that are important to the customer, payout should cover the full dissatisfaction), easy to understand and communicate, easy to invoke and collect

Front 25

benefits of device guarantees

Back 25

forces the company to focus on customers, sets clear standards, generates immediate and relevant feedback, employee morale and loyalty can be enhanced, reduces customers' sense of risk and builds confidence in the organization

Front 26

service guarantees for everyone?

Back 26

fix poor quality service first!

guarantee doesn't fit image (high quality)

fear of cheating or abuse by customers

costs the guarantee outweigh benefits

*make the guarantee the icing on the cake, not the cake)

Front 27

what is physical evidence?

Back 27

the environment in which the service is delivered and where the firm and the customer interact and any tangible commodities that facilitate performance or communication of the service

Front 28

servicescape

Back 28

the environment in which the service is delivered and where the firm and the customer interact

Front 29

elements of physical evidence

Back 29

exterior (design, signage, parking, landscape surrounding environment)

interior (equipment, signage, layout, air quality, lighting, floor coverings, aromas

other (business cards, stationary, uniforms, website)

Front 30

roles of the servicescape

Back 30

as a package, as a facilitator, as a socializer, as a differentiator

Front 31

as a package

Back 31

similar to a product's package, serves as a visual metaphor for the intangible service

extends to dress code of personnel and their appearance

Front 32

as a facilitator

Back 32

more functional, aids the performance of persons in the environment, can establish the efficient flow of activities so employees and customers can accomplish their goals (bad= mr. j's line)

Front 33

as a socializer

Back 33

aids in the socialization of both employees and customers, teaching roles and behaviors, what is expected

"training of customers"

Front 34

as a differentiator

Back 34

can differentiate from competitors (business class seats)can signal the market segment that is the firm's target for the service offeringone area of service from another (department store)