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MG 527 Services and Tourism Marketing
Tom Muldowney – 59212790
Eimear Murphy- 59210952
Rosemary Clancy - 59212099
Caroline...
Q1. How bad was the situation?
1. People
Aggression
Impatience
Hostility
Rude
2. Policy
Cell Phones
Alcohol consumption
Sm...
How bad was the situation?
• Processes
• Lack of Communication
• Lack of snow emergency plan
• Lack of clear safety assess...
Interview with Irate Customer
http://www.youtube.com/watch?v=4fdVkAFgR9w
Q2. Did this have to happen?
• No! But it did...
• Weather Warnings
• American Airlines cancelled all flights
News Report from Detroit
• Lets hear from Sherry……..
http://www.youtube.com/watch?v=V-8qqZso59g&feature=related
So why did it happen?
• Ground staff not prepared for ground delays
So why did it happen?
• Lack of communication
So why did it happen?
• Role conflict - “Go like hell, get in there in front of
everybody”
So why did it happen?
• Misjudgement of safety
• Safety and security procedures often governed by
law in service industrie...
How could NWA have approached the
crisis differently?
• Set customer service benchmarks
• Planned for service recovery
Primary Themes for Service Recovery
Tax and Brown (1998)
• Outcome Fairness
– Customer expectations
– Promise resolution
–...
Ignorance is Bliss….
http://www.youtube.com/watch?v=yBNooZFqDss&feature=related
Q3. What should the NWA strategy be
now for Service Recovery?
• Samaritan Health Services developed framework -‘AAAA’
Acti...
Benefits of AAAA Action Plan
• Management and staff would be aware of the emergency procedure
• Prepared for the unexpecte...
Customers Management
“Is it a bird? Is it a plane? (kind of) No!!! Its NWA’s management team!!”
- Onlooker Flight 1829
(Qu...
Q4. What should be their course of
action for the future?
Tax and Brown 1998, have identified four practices that
aid serv...
1. Hiring, Training & Empowerment
2. Establishing Guidelines
& Standards
To improve procedures and performance of
customer service
The ‘AAAA’ action plan co...
3. Providing Easy Access and
Effective Responses
Sample Complaint Form for NWA
4. Maintaining Customer &
Channel Databases
NWA cannot operate effectively as a standalone
entity
Management Implications
• Disadvantages
Labour Costs of training and educating employees
Employee buy-in, if the risk is n...
Discussion:
Bibliography
• Tax, S.S. and S.W. Brown (1998) Recovering and Learning from
Service Failure. MIT Sloan Management Review, ...
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Tom Muldowney - Northwest Airlines and the Snow Storm - Dealing with Customers in Times of Crisis

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Here is an evaluation of the Northwest Airlines case study and how the company could have dealt with their crisis better to ensure their customers remained satisfied. This was part of my MBS Digital Marketing in DCU, Dublin, Ireland.

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Tom Muldowney - Northwest Airlines and the Snow Storm - Dealing with Customers in Times of Crisis

  1. 1. MG 527 Services and Tourism Marketing Tom Muldowney – 59212790 Eimear Murphy- 59210952 Rosemary Clancy - 59212099 Caroline Mullen - 59213267 Northwest Airlines and the Detroit Snowstorm
  2. 2. Q1. How bad was the situation? 1. People Aggression Impatience Hostility Rude 2. Policy Cell Phones Alcohol consumption Smoking “Service failures can often be categorized by faults that fall into the following criteria people, policies, processes and the actual service”. (Tax and Brown 1998)
  3. 3. How bad was the situation? • Processes • Lack of Communication • Lack of snow emergency plan • Lack of clear safety assessment • Quality of Service • Check in computers • Hotel • Food and Drink • Comfort • Toilets
  4. 4. Interview with Irate Customer http://www.youtube.com/watch?v=4fdVkAFgR9w
  5. 5. Q2. Did this have to happen? • No! But it did... • Weather Warnings • American Airlines cancelled all flights
  6. 6. News Report from Detroit • Lets hear from Sherry…….. http://www.youtube.com/watch?v=V-8qqZso59g&feature=related
  7. 7. So why did it happen? • Ground staff not prepared for ground delays
  8. 8. So why did it happen? • Lack of communication
  9. 9. So why did it happen? • Role conflict - “Go like hell, get in there in front of everybody”
  10. 10. So why did it happen? • Misjudgement of safety • Safety and security procedures often governed by law in service industries (Lewis & Clacher 2001)
  11. 11. How could NWA have approached the crisis differently? • Set customer service benchmarks • Planned for service recovery
  12. 12. Primary Themes for Service Recovery Tax and Brown (1998) • Outcome Fairness – Customer expectations – Promise resolution – Procedural Fairness • Procedural Fairness – Assume responsibility – Responsiveness – Clear communication • Interactional Fairness – Politeness and respect – Concern and caring attitude – Honesty – Explanation for failure – Effort to resolve – Diffuse anger – Aware of authority Lewis and Clacher (2001) • Communication – Eliminate confusion – Update information regularly • Safety and Security – Understand level of responsibility – Rules and procedures – Explain technical aspects – Rules reduce anxiety – Exercise judgement • Customer Care – Prevent abusive behaviour – Interpersonal and communication skills – Team culture – Sensitive to customer’s needs
  13. 13. Ignorance is Bliss…. http://www.youtube.com/watch?v=yBNooZFqDss&feature=related
  14. 14. Q3. What should the NWA strategy be now for Service Recovery? • Samaritan Health Services developed framework -‘AAAA’ Action Plan for Service Recovery: – Anticipate – be prepared for backlash, staff ready to deal with crisis – Acknowledge – full responsibility, at time of crisis, reduces conflict – Apologize – regardless of who is at fault, must be sincere – Amends – take action, compensate appropriately Action Plan for Service Recovery
  15. 15. Benefits of AAAA Action Plan • Management and staff would be aware of the emergency procedure • Prepared for the unexpected - remain calm and professional • Company performance will be improved through customer satisfaction • Organised and professional approach – no loss of customers
  16. 16. Customers Management “Is it a bird? Is it a plane? (kind of) No!!! Its NWA’s management team!!” - Onlooker Flight 1829 (Quote may not have happened) Customers NWA Management
  17. 17. Q4. What should be their course of action for the future? Tax and Brown 1998, have identified four practices that aid service recovery. 1) Hiring, training and empowerment 2) Establishing guidelines and standards 3) Providing Easy Access and Effective Response 4) Maintaining Customer and Product Databases
  18. 18. 1. Hiring, Training & Empowerment
  19. 19. 2. Establishing Guidelines & Standards To improve procedures and performance of customer service The ‘AAAA’ action plan could be used as a standard guideline as to what action the airline takes in the case of a service failure.
  20. 20. 3. Providing Easy Access and Effective Responses
  21. 21. Sample Complaint Form for NWA
  22. 22. 4. Maintaining Customer & Channel Databases NWA cannot operate effectively as a standalone entity
  23. 23. Management Implications • Disadvantages Labour Costs of training and educating employees Employee buy-in, if the risk is not obvious • Advantages Customer-orientated investment Customer satisfaction positively impacts bottom-line (Aksoy et al 2008) Minimises risk of damaging brand image
  24. 24. Discussion:
  25. 25. Bibliography • Tax, S.S. and S.W. Brown (1998) Recovering and Learning from Service Failure. MIT Sloan Management Review, 40(1): p. 75- 88. • Lewis and Clacher (2001) Service Failure and Recovery in UK theme parks: the employee’s perspective (2001) International Journal of Contemporary Hospitality Management. Volume 13 (4) pp. 166-175 • Askoy et al (2008) The Long-Term Stock Market Valuation of Customer Satisfaction, Journal of Marketing, Vol. 72 July pp 105- 122

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