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Objectives for Chapter 17:The Financial and Economic Impact of Service Examine the direct effects of service on profits Consider the impact of service on getting new customers Evaluate the role of service in keeping customers Examine the link between perceptions of service and purchase intentions Emphasize the importance of selecting profitable customers Discuss what is know about the key service drivers of overall service quality, customer retention and profitability Discuss the balanced performance scorecard to focus on strategic measurement other than financials Figure 17-1The Direct Relationship between Service and Profits Figure 17-2Offensive Marketing Effects of Service on Profits Figure 17-3Defensive Marketing Effects of Service on Profit Figure 17-5Perceptions of Service, Behavioral Intentions and Profits Figure 17-8The Key Drivers of Service Quality, Customer Retention, and Profits McGraw-Hill 2000 The McGraw-Hill Companies * S M S M McGraw-Hill 2000 The McGraw-Hill Companies Chapter 17 THE FINANCIAL AND ECONOMIC IMPACT OF SERVICE QUALITY Profits ? Service Quality Profits Market Share Reputation Sales Price Premium Service Quality Margins Profits Customer Retent…………
Objectives for Chapter 7:Service Recovery Illustrate the importance of recovery from service failures in building loyalty Discuss the nature of consumer complaints and why people do and do not complain Provide evidence of what customers expect and the kind of responses they want when they complain Provide strategies for effective service recovery Discuss service guarantees Figure 7-1Unhappy Customers’ Repurchase Intentions Figure 7-3 Customer Response Following Service Failure Figure 7-6Causes Behind Service Switching Service Guarantees guarantee = an assurance of the fulfillment of a condition (Webster’s Dictionary) for products, guarantee often done in the form of a warranty services are often not guaranteed cannot return the service service experience is intangible (so what do you guarantee?) Table 7-7 Characteristics of an Effective Service Guarantee Why a Good Guarantee Works forces company to focus on customers sets clear standards generates feedback forces company to understand why it failed builds “marketing muscle” Service Guarantees Does everyone need a guarantee? Reasons companies do NOT offer guarantees: guarantee would be at odds with company’s image too many un…………
Objectives for Chapter 8:Service Development and Design Describe the challenges inherent in service design Present steps in the new service development process Show the value of service blueprinting and quality function deployment (QFD) in new service design and service improvement Present lessons learned in choosing and implementing high-performance service innovations Figure 8-1Risks of Relying on Words Alone to Describe Services Figure 8-3New Service Strategy Matrix for Identifying Growth Opportunities Figure 8-4Service Mapping/Blueprinting A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view. Service Blueprint Components Express Mail Delivery Service Overnight Hotel Stay Application of Service Blueprints New Service Development concept development market testing Supporting a “Zero Defects” Culture managing reliability identifying empowerment issues Service Recovery Strategies identifying service problems conducting root cause analysis modifying processes Blueprints Can Be Used By: Service Marketers creating realistic customer expectations service system design promotion Oper…………
Objectives for Chapter 12:Customers’ Roles in Service Delivery Illustrate the importance of customers in successful service delivery Enumerate the variety of roles that service customers play Productive resources Contributors to quality and satisfaction Competitors Explain strategies for involving service customers effectively to increase both quality and productivity Importance of Other Customers in Service Delivery Other customers can detract from satisfaction disruptive behaviors excessive crowding incompatible needs Other customers can enhance satisfaction mere presence socialization/friendships roles: assistants, teachers, supporters How Customers Widen Gap 3 Lack of understanding of their roles Not being willing or able to perform their roles No rewards for “good performance” Interfering with other customers Incompatible market segments Figure 12-2 Customer Roles in Service Delivery Customers as Productive Resources “partial employees” contributing effort, time, or other resources to the production process customer inputs can affect organization’s productivity key issue: should customers’ roles be expanded? reduced? Customers as Contributors to Service Quality and Satisfac…………
Objectives for Chapter 11:Employees’ Roles in Service Delivery Illustrate the critical importance of service employees in creating customer satisfaction and service quality Demonstrate the challenges inherent in boundary-spanning roles Provide examples of strategies for creating customer-oriented service delivery Show how the strategies can support a service culture where providing excellent service is a way of life Service Employees They are the service They are the firm in the customer’s eyes They are marketers Importance is evident in The Services Marketing Mix (People) The Service-Profit Chain The Services Triangle Service Employees Who are they? “boundary spanners” What are these jobs like? emotional labor many sources of potential conflict person/role organization/client interclient quality/productivity Figure 11-3 Boundary Spanners Interact with Both Internal and External Constituents Figure 11-4 Sources of Conflict for Boundary-Spanning Workers Figure 11-5 Human Resource Strategies for Closing GAP 3 Empowerment Benefits: quicker responses employees feel more responsible employees tend to interact with warmth/enthusiasm empowered employees are a great source of ideas…………
THE BIG PICTURE: CLOSING ALL THE GAPS McGraw-Hill 2000 The McGraw-Hill Companies * S M S M McGraw-Hill 2000 The McGraw-Hill Companies Part 6 S M McGraw-Hill 2000 The McGraw-Hill Companies Chapter 18 THE INTEGRATED GAPS MODEL OF SERVICE QUALITY Perceived Service Expected Service CUSTOMER COMPANY Customer Gap GAP 1 GAP 2 Gaps Model of Service Quality GAP 3 External Communications to Customers GAP 4 Service Delivery Customer-Driven Service Designs and Standards Company Perceptions of Consumer Expectations Figure 18-1 Customer Expectations Customer Perceptions Figure 18-2 Key Factors Leading to the Customer Gap Customer Gap Customer Expectations Company Perceptions of Customer Expectations GAP 1 Figure 18-3 Key Factors Leading to Provider Gap 1 Customer-Driven Service Designs and Standards Management Perceptions of Customer Expectations GAP 2 Figure 18-4 Key Factors Leading to Provider Gap 2 Service Delivery Customer-Driven Service Designs and Standards Key Factors Leading to Provider GAP 3 Figure 18-5 GAP 3 Service Delivery Key Factors Leading to Provider GAP 4 Figure 18-6 GAP 4 External Communications to Customers McGraw-Hill 2000 The McGraw-Hill Companies * S M Provider Gap 1: Not k

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