2. Service enterprises are organizations that facilitate the production and distribution of goods, support other firms in meeting their goals, and add value to our personal lives. James Fitzsimmons Definition of Service Firms
3. Each customer contact is called a moment of truth. You have the ability to either satisfy or dissatisfy them when you contact them. A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer. Moments of Truth 6-3
4. Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day. Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason. Dimensions of Service Quality 6-4
5. Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer. Empathy: Ability to be approachable. Example: being a good listener. Tangibles: Physical facilities and facilitating goods. Example: cleanliness. Dimensions of Service Quality 6-5
6. Perceived Service Quality Word of mouth Personal needs Past experience Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles Service Quality Assessment 1. Expectations exceeded ES<PS (Quality surprise) 2. Expectations met ES~PS (Satisfactory quality) 3. Expectations not met ES>PS (Unacceptable quality) Expected service Perceived service 6-6
8. The Service Triangle Service Organization Efficiency versus satisfaction Control versus autonomy Customer Contact Personnel Perceived control Note: Perceived control determines if a relationship or encounter is established between contact personnel and customer. 8-8
10. Foundations of Continuous Improvement - Customer Satisfaction - Management by Facts - Respect for People Plan-Do-Check-Act (PDCA) Cycle Quality and Productivity Improvement Process
12. Step 1: Define the project Step 2: Study the current situation Step 3: Analyze the potential causes Step 4: Implement a solution Step 5: Check the results Step 6: Standardize the improvement Step 7: Establish future plans The Seven-Step Method (SSM)
13. More Familiarity with Customer Needs andWays of Meeting Them More Repeat Purchases Stronger Tendency to Complain about Service Errors Greater Opportunity for Recovery from Errors Higher Employee Satisfaction Higher Productivity Lower Costs Better Results Improved Quality of Service Satisfaction Mirror Higher Customer Satisfaction 8-13
14. Service Profit Chain Internal External Service concept Operating strategy and service delivery system Target market Loyalty Revenue growth Customers Satisfaction Productivity & Output quality Service value Employees Satisfaction Loyalty Capability Profitability Service quality Customer orientation/quality emphasis Allow decision-making latitude Selection and development Rewards and recognition Information and communication Provide support systems Foster teamwork Quality & productivity improvements yield higher service quality and lower cost Attractive Value Service designed & delivered to meet targeted customers’ needs Solicit customer feedback Lifetime value Retention Repeat Business Referrals 8-14
15. Strategies for Matching Capacity and Demand for Services MANAGING DEMAND MANAGING CAPACITY Partitioning demand Increasing customer participation Developing complementary services Sharing capacity Establishing price incentives Scheduling work shifts Cross- training employees Developing reservation systems Creating adjustable capacity Promoting off-peak demand Using part-time employees Yield management 11-15
