Service marketing


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case study of four customer's searching for solution

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Service marketing

  1. 1. Course: Services Marketing Program: MBAPrepared For:Mr. Tabarak HossainCourse InstructorFaculty of Business and EconomicsDaffodil International University Prepared By: K a z i M d . M o n ir u l I s la m ID : 091-14 -902 Md.Mahsin Ali ID: 091-14-913 Date of Submission: 25 August, 2009 DAFFODIL INTERNATIONAL UNIVERSITY Dhanmondi, Dhaka
  2. 2. Introduction:Customer feedback and service recovery is one of the most important aspects in servicesmarketing. Identifying the customer complaining behavior is the first task here for themarketer. Customers complain when the services fails to satisfy his or her need as perdemand. Effective service recovery can increase the customer’s loyalty. Thus theeffective service recovery procedures should be proactive, planned, trained and alsoempowered to satisfy complaining customers. Here, the service guarantees can plays avital role which is the promise that if the service delivery fails to meet the predefinedstandard, the customer will be compensated by replacement, refund, or credit. But themajor concern here is to get the customers feedback properly than take proper steps torecover service, learn new aspects, identifying opportunistic behaviors, developing newvalue added services with fewer risks to be failed.Background of the case:Bell Canada is a telephone service provider company is complained by four individualsas some of their services failed from some aspects in Toronto, Ontario. Winston Chenclaimed that he has been overcharged and so request for an adjustment. Marie Portillo’scomplain is that she missed some important calls because the caller received a busysignal whereas the phone was free actually. Eleanor Vanderbilt has been disturbed bysomeone a several weeks and so she requests to stop this harassment. Richard Robbinscomplaints about a noise during call which can be arise from some kinds of technicalmechanism. Whatever the problems are the feedbacks from the customers about theservice failure and the service recovery procedures are the main concerning matter in thiscase.
  3. 3. Analysis:To analyze the case we have to find out the answer of 2 questions. These are as follows.Q1. Based trickily on the information in the case, how many possibilities do you see tosegment the telecommunications market?Ans: By analyzing the information’s provided in this case, two segmentation bases can beidentified. These are – Sequential segmentation and segmentation based on usage rate. Sequential segmentation scheme classifies business buyers into 3 categories. • Price-oriented customers: They want value, and at the same time a convenient pricing. Example: Winston Chen grumbles always about his telephone bill. • Solution-oriented customers: They want value through benefits and advice. Example: Marie Portillo missed some calls as the callers received a busy signal, and she wishes to get a proper solution. • Strategic-value customers: They want value through the supplier’s participation in their own business. Example: Mrs. Vanderbilt’s requirement is that the telephone company will take a proper action by stopping her harassment from the unknown. By applying usage rate also, we can segment the market for this telecommunication market. • Heavy users: Winston Chen is, in the top 2% of all household phone bills in Ontario. • Medium Users: Marie Portillo’s usage rate is in the point at which 50% of all bills are higher and 50% are lower. • Light Users: Mrs. Vanderbilt’s bills in the bottom 10% of all households bills.
  4. 4. Q2. As a marketing manager, do you see any marketing opportunities for the telephonecompany in these complaints?Ans: “Thanks Heavens for Complainers” was the provocative title of an article where asuccessful manager exclaiming “Thanks goodness. I have got a dissatisfied customer onthe phone! The ones I worry about are the once I never here from”. Customers who docomplain give a firm the chance to correct problems, restore relationship and introduceimproved services”.The opportunities those can be obtained from the complains can be as follows. • Effective and customized services can increase customer’s loyalty. • Identify service problems and learning from recovery experience can reduce the risk of service failures. • Some of the opportunistic behavior can be identified. • Valuable and less valuable customers can be identified.Findings: • Beside standardized services customized services are essential in the service industry like mobile phone service. • Sometime service failure brings the opportunity to deliver personalized services. • Segmentation based on usage rate can be used in identifying valuable and less valuable customers. • Sequential segmentation can identify customer’s personal needs.Recommendations: • The realty of the complaints should be monitored properly to ensure whether there is any opportunistic behavior or really service failed. • Complainers should be rewarded because they play the vital role in service recovery process.