This document discusses service failure and recovery. It begins by defining service and outlining its key characteristics including intangibility, inseparability, perishability, and inability to own. It then explains that service can go wrong for various reasons, such as failure to meet customer requirements or expectations. There are different types of service failures including process failures, outcome failures, and recovery failures. Effective service recovery is important and involves understanding the key aspects of recovery and implementing appropriate recovery strategies. Relationship marketing and maintaining strong brand equity can also help minimize failures and maximize recovery.
The document discusses key concepts related to marketing services. It defines services and their unique characteristics such as intangibility, inseparability, and variability. It also covers the 7 P's of the service marketing mix - product, price, place, promotion, people, process, and physical evidence. The document categorizes different types of services based on what is processed (people or objects) and the nature of the process (tangible or intangible actions). It also discusses service positioning, encounters, and the purchase process for services.
This document discusses the concept and nature of services. It provides definitions of services from various scholars over time, highlighting that services are activities rather than tangible goods. The key characteristics that distinguish services are their intangibility, inseparability of production and consumption, heterogeneity, perishability, and the lack of ownership transfer. The growth of the services sector is attributed to increasing consumer affluence, more working women, double-income households without children, greater leisure time, longer life expectancy, and product innovations - all of which have led to new types of services emerging.
The document discusses several key aspects of services marketing. It defines services according to Peter Drucker and the Chartered Institute of Marketing. It notes that services are difficult to define because inputs and outputs are often intangible. Kotler's definition of a service as an activity that does not result in ownership is also mentioned. The document outlines some characteristics that distinguish services from goods, such as intangibility, inseparability, heterogeneity, and perishability. It provides examples of how service industries have grown to comprise large portions of modern economies.
In this slide presentation know about “Services Marketing”, which is an integral part of even the developed economies. The developed economies thus called as service economies reveal that the service sector accounts for more employment, contribution in GDP and more consumption than manufactured goods.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
This Slideshare is the sole Property of the Welingkar School of Distance Learning – Reproduction of this material , without prior consent, either wholly or partially will be treated as a violation of copyright.
Services are economic activities that create value and benefits for customers. Main characteristics of services include:
1) Intangibility - Services cannot be seen, touched, or physically possessed by customers. Customers can only experience the benefits of a service.
2) Perishability - Services cannot be stored and perish or lose value if not used when produced. Unused services represent an economic waste.
3) Inseparability - Services are generally created and consumed simultaneously. The service provider and customer must interact during service delivery and consumption.
4) Heterogeneity - The quality of services can vary and is difficult to standardize due to human involvement in service delivery and differences in customer expectations.
This document discusses services marketing. It begins by defining what services are, noting their intangible and heterogeneous nature. It then compares the characteristics of services to goods, highlighting how services are simultaneously produced and consumed.
The document outlines the components of the services marketing mix, expanding beyond the traditional 4 Ps to the 7 Ps framework to account for the roles of people, physical evidence, and processes. It stresses that all human and physical factors involved in service delivery influence customers' perceptions. Finally, the document provides examples of how marketers can use the 7 Ps framework to strategically assess their services and implement specific offerings.
2. difference in goods and service marketing and service classificationAkash Bakshi
The document summarizes key differences between services and goods. Services are intangible, heterogeneous, produced through customer interaction, and cannot be stored. Goods are tangible, homogeneous, produced in factories separately from distribution and consumption, and can be stored with ownership transferred. The document then discusses various ways services can be classified, including by industry, target effect, skill level, labor intensiveness, degree of customer contact, and goal of the service provider. Finally, it provides examples to illustrate classifications by target effect and skill level of service provider.
The document discusses key concepts related to marketing services. It defines services and their unique characteristics such as intangibility, inseparability, and variability. It also covers the 7 P's of the service marketing mix - product, price, place, promotion, people, process, and physical evidence. The document categorizes different types of services based on what is processed (people or objects) and the nature of the process (tangible or intangible actions). It also discusses service positioning, encounters, and the purchase process for services.
This document discusses the concept and nature of services. It provides definitions of services from various scholars over time, highlighting that services are activities rather than tangible goods. The key characteristics that distinguish services are their intangibility, inseparability of production and consumption, heterogeneity, perishability, and the lack of ownership transfer. The growth of the services sector is attributed to increasing consumer affluence, more working women, double-income households without children, greater leisure time, longer life expectancy, and product innovations - all of which have led to new types of services emerging.
The document discusses several key aspects of services marketing. It defines services according to Peter Drucker and the Chartered Institute of Marketing. It notes that services are difficult to define because inputs and outputs are often intangible. Kotler's definition of a service as an activity that does not result in ownership is also mentioned. The document outlines some characteristics that distinguish services from goods, such as intangibility, inseparability, heterogeneity, and perishability. It provides examples of how service industries have grown to comprise large portions of modern economies.
In this slide presentation know about “Services Marketing”, which is an integral part of even the developed economies. The developed economies thus called as service economies reveal that the service sector accounts for more employment, contribution in GDP and more consumption than manufactured goods.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
This Slideshare is the sole Property of the Welingkar School of Distance Learning – Reproduction of this material , without prior consent, either wholly or partially will be treated as a violation of copyright.
Services are economic activities that create value and benefits for customers. Main characteristics of services include:
1) Intangibility - Services cannot be seen, touched, or physically possessed by customers. Customers can only experience the benefits of a service.
2) Perishability - Services cannot be stored and perish or lose value if not used when produced. Unused services represent an economic waste.
3) Inseparability - Services are generally created and consumed simultaneously. The service provider and customer must interact during service delivery and consumption.
4) Heterogeneity - The quality of services can vary and is difficult to standardize due to human involvement in service delivery and differences in customer expectations.
This document discusses services marketing. It begins by defining what services are, noting their intangible and heterogeneous nature. It then compares the characteristics of services to goods, highlighting how services are simultaneously produced and consumed.
The document outlines the components of the services marketing mix, expanding beyond the traditional 4 Ps to the 7 Ps framework to account for the roles of people, physical evidence, and processes. It stresses that all human and physical factors involved in service delivery influence customers' perceptions. Finally, the document provides examples of how marketers can use the 7 Ps framework to strategically assess their services and implement specific offerings.
2. difference in goods and service marketing and service classificationAkash Bakshi
The document summarizes key differences between services and goods. Services are intangible, heterogeneous, produced through customer interaction, and cannot be stored. Goods are tangible, homogeneous, produced in factories separately from distribution and consumption, and can be stored with ownership transferred. The document then discusses various ways services can be classified, including by industry, target effect, skill level, labor intensiveness, degree of customer contact, and goal of the service provider. Finally, it provides examples to illustrate classifications by target effect and skill level of service provider.
The document discusses managing customer encounters in service businesses, including how differing levels of customer contact impact service design, viewing service as theatre, analyzing critical customer incidents, and addressing the challenges posed by misbehaving "jaycustomers". It also explores managing employees during service encounters and gaining customer perspectives on satisfying and dissatisfying experiences.
The document classifies services into four categories based on what is processed (people or objects) and the nature of the process (tangible or intangible actions):
1) People processing - Customers must physically enter the system and actively cooperate with service operations. Managers must consider non-financial costs to customers.
2) Possession processing - Customers are less physically involved, typically just requesting or paying for the service to restore their possessions. The goal is a satisfactory solution to the stated problem.
3) Mental stimulus processing - Services that interact with people's minds which can shape attitudes and influence behavior. Strong ethics are required due to potential for manipulation.
4) Information processing - The most
This document provides an introduction and overview of services. It defines services as intangible deeds, processes, and performances that may include tangible components and are typically produced and consumed simultaneously. The document outlines some key challenges in services like quality, communication, and coordination. It provides examples of common service industries and discusses how the proportion of services in economies has increased over time. Finally, it discusses differences between goods and services and introduces an expanded 7 Ps marketing mix framework for services, focusing on people, physical evidence, and processes in addition to the traditional 4 Ps.
Service Marketing Theory Applied To Surface Treatment A.PaivaAmadeu Paiva
This document discusses applying marketing theory to surface treatment services. It notes that while classic marketing techniques developed for consumer goods can be effective, services require consideration of specific factors. It defines services as performances that are intangible, inseparable from their providers, variable, and perishable. To effectively market services, companies must "tangibilize" the intangible aspects, establish quality standards to address variability, optimize capacity utilization given perishability, and apply the "extended marketing mix" of 7Ps rather than 4Ps.
This document provides an introduction to services marketing. It begins with sample questions that may be asked to test understanding of key concepts in services marketing. These include defining what a service is, explaining the SERVQUAL model of measuring service quality, and distinguishing between the reliability and assurance dimensions of service quality. The document also provides examples of questions that require explaining characteristics of services that differentiate them from goods using tangible examples. Overall, the document serves as an introduction to fundamental concepts and frameworks for students to learn about services marketing.
This document discusses key concepts for classifying and understanding services:
1. The Service Process Matrix classifies services based on their degree of labor intensity and customer interaction/customization. This affects managerial challenges.
2. The Service Package describes the facilities, goods, information, and services that comprise a service.
3. Services have distinctive characteristics like intangibility, simultaneity of production/consumption, perishability, heterogeneity, and customer participation.
4. Services can be classified strategically based on factors like their nature, customer relationships, customization, demand characteristics, and delivery method. This provides insights for managing different types of services.
One of the Chapters of an MBA Course Series on Services Marketing under Marketing Management that is tought at the B-Schools in India.
This chapter is the Introduction (Part-2) which deals with How to market "Services"
This document discusses marketing strategies for the insurance sector in India. It begins by explaining the importance of insurance in helping people deal with risks and uncertainties. The main objectives of the project are to study consumer decision making processes and purchase factors for insurance policies. It then outlines the sampling design used, which involved a survey of 50 respondents through structured questionnaires. Key findings from the data include that most buyers are aged 25-60, interested in online purchasing, and influenced by company reputation and income levels. The document concludes by recommending strategies like improving awareness, relationships, and transparency to better influence insurance purchase decisions.
This document provides an introduction to services marketing. It defines what constitutes a product and service, highlighting that a service is an act or performance offered by one party to another. It also outlines some key differences between goods and services. The document discusses the importance of the services sector in modern economies and provides examples of different types of service industries. It examines factors influencing the growth of the services sector and important characteristics of services. Finally, it looks at some of the challenges in marketing services compared to goods.
This document provides an introduction and overview of services marketing. It discusses how services have become increasingly important in the global economy. It defines what services are, highlights some key features of services such as intangibility and inseparability, and discusses how these features necessitate distinct approaches to marketing services. It also covers various ways of classifying services and some common problems in marketing services. Finally, it discusses important aspects of services marketing such as service design, forms of measuring service capacity, and techniques like blueprinting and service mapping.
This document provides an overview of a module on services marketing. It discusses key topics that will be covered, including the importance of the services sector, defining what a service is, the nature and characteristics of services, and differences between goods and services. It also presents the service management decision framework and explores strategies for addressing challenges specific to services, such as intangibility, inconsistency, inseparability, and inventory issues.
Spyros Langkos_Athens Archeological Museum_individual report and reflective c...Spyros Langkos
Spyros Langkos_Athens Archeological Museum_individual report and reflective commentarry
Master in Marketing Management - University of Derby
Mediterranean College, Athens, Greece
In this presentation, we will discuss classification of Services. Definition of Service Classification, Classification Schemes and several other topics discussed here will give a detailed idea about how the process of catering services in the market affects a brand identity.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Marketing of services an introduction and factsVipin Kumar
The document discusses key concepts related to marketing of services. It begins by defining services and distinguishing their characteristics from goods. Services are intangible deeds, processes and performances. They are heterogeneous, inseparable from their production and consumption, and perishable.
The document then covers India's large and growing services sector. It contributes over 50% to India's GDP across sectors like trade, transport, finance and real estate. The growth of services has increased demand for services marketing. Deregulation of industries like airlines and telecoms has given firms more marketing control.
The final sections discuss frameworks for understanding services like the core-supplementary spectrum and service typology based on customer and possession processing. It also covers customer
The document provides an overview of services marketing by discussing several key points:
1. The service sector dominates developed economies, with most jobs and growth coming from services.
2. Services can be categorized into four groups based on their underlying processes: people processing, possession processing, mental stimulus processing, and information processing.
3. Marketing of services differs from goods in several ways, such as the intangible nature of services and customer involvement in production.
4. The marketing mix for services, known as the "7Ps", includes traditional elements as well as physical environment, process, and people. Managing the 7Ps requires collaboration between marketing, operations, and HR.
Services marketing hint for comprehensive examination 2011mcrashidkhan
The document discusses different frameworks for classifying services and their usefulness to managers. It describes four main classifications: people processing, possession processing, mental stimulus processing, and information processing. For each classification, it provides examples and discusses what managers should consider regarding marketing strategy, operations, and customer experience based on the type of processing involved. It also defines search, experience, and credence attributes of services and provides examples of each.
This document discusses the key characteristics of services. It defines services as acts of performance that are intangible and do not result in ownership. Services are not tangible, cannot be stored, perish during consumption, and their quality is difficult to standardize. The document also classifies services in various ways, such as by market segment, degree of tangibility, skills required, and degree of regulation. Finally, it discusses factors driving the increasing importance of the services sector in India, such as rising incomes, education, information access, and government participation in more sectors.
1) The document discusses the service sector in India and worldwide. It notes that the service sector now accounts for over half of India's GDP and a majority of employment. Services are growing faster than other sectors in most developed economies.
2) Key characteristics of services are discussed, including intangibility, inseparability, heterogeneity, and perishability, which present unique challenges for marketing services. Factors driving growth of the global and Indian service sectors are also summarized.
3) The document provides definitions of services from various scholars and organizations. Services are generally defined as activities or benefits that are intangible and do not result in ownership.
Service can be classified in several ways, including by market segment, degree of tangibility, skills of the service provider, goals of the service provider, degree of regulation, degree of labor intensiveness, and degree of customer contact. In India, services contribute 60% to GDP and 35% to employment, with 80% of exports dominated by high-skilled services like software and communication. Services can be categorized as catering to end consumers or organizational customers, having tangible, rental, or non-good offerings, and requiring highly skilled or unskilled labor. They can also be profit-making or non-profit, face high, limited, or absent regulation, and be equipment-based, people-based, requiring un
Critical review writing_help essay sample from assignmentsupport.com essay wr...https://writeessayuk.com/
This document provides guidance on writing a critical review. A critical review involves summarizing a text and evaluating it based on various criteria. The summary describes the topic, main questions, arguments, evidence, and conclusions. The evaluation assesses the text's relevance, usefulness, support for arguments, and whether conclusions are final using discipline-appropriate criteria. The review should be organized with an introduction, body separating summary and evaluation, and optional conclusion restating the overall assessment.
Research format template essay sample from assignmentsupport.com essay writin...https://writeessayuk.com/
The document provides guidance on writing a research proposal. It explains that a proposal gives a brief overview of a research project to demonstrate its viability to the university. The key components that should be included are: a working title, overview of the subject area and relevance to disciplines, review of literature, research questions/objectives, methodology, expected results, timescale, and references. Some tips are to choose a focused but achievable topic, ensure there is university expertise to supervise it, and select a topic you are interested in.
Insurance policy in_chinas_earthquake essay sample from assignmentsupport.com...https://writeessayuk.com/
The document discusses insurance policies in China regarding earthquakes, specifically analyzing the 2008 Wenchuan earthquake. It finds that while many people were affected, only a small percentage were insured. The legal procedures for insurance payouts faced difficulties. It also compares China's policies to those of Japan and New Zealand. The impacts of insurance policies on disaster victims are discussed. The document concludes China needs to establish a better legal insurance system through government and legislative action.
The document discusses managing customer encounters in service businesses, including how differing levels of customer contact impact service design, viewing service as theatre, analyzing critical customer incidents, and addressing the challenges posed by misbehaving "jaycustomers". It also explores managing employees during service encounters and gaining customer perspectives on satisfying and dissatisfying experiences.
The document classifies services into four categories based on what is processed (people or objects) and the nature of the process (tangible or intangible actions):
1) People processing - Customers must physically enter the system and actively cooperate with service operations. Managers must consider non-financial costs to customers.
2) Possession processing - Customers are less physically involved, typically just requesting or paying for the service to restore their possessions. The goal is a satisfactory solution to the stated problem.
3) Mental stimulus processing - Services that interact with people's minds which can shape attitudes and influence behavior. Strong ethics are required due to potential for manipulation.
4) Information processing - The most
This document provides an introduction and overview of services. It defines services as intangible deeds, processes, and performances that may include tangible components and are typically produced and consumed simultaneously. The document outlines some key challenges in services like quality, communication, and coordination. It provides examples of common service industries and discusses how the proportion of services in economies has increased over time. Finally, it discusses differences between goods and services and introduces an expanded 7 Ps marketing mix framework for services, focusing on people, physical evidence, and processes in addition to the traditional 4 Ps.
Service Marketing Theory Applied To Surface Treatment A.PaivaAmadeu Paiva
This document discusses applying marketing theory to surface treatment services. It notes that while classic marketing techniques developed for consumer goods can be effective, services require consideration of specific factors. It defines services as performances that are intangible, inseparable from their providers, variable, and perishable. To effectively market services, companies must "tangibilize" the intangible aspects, establish quality standards to address variability, optimize capacity utilization given perishability, and apply the "extended marketing mix" of 7Ps rather than 4Ps.
This document provides an introduction to services marketing. It begins with sample questions that may be asked to test understanding of key concepts in services marketing. These include defining what a service is, explaining the SERVQUAL model of measuring service quality, and distinguishing between the reliability and assurance dimensions of service quality. The document also provides examples of questions that require explaining characteristics of services that differentiate them from goods using tangible examples. Overall, the document serves as an introduction to fundamental concepts and frameworks for students to learn about services marketing.
This document discusses key concepts for classifying and understanding services:
1. The Service Process Matrix classifies services based on their degree of labor intensity and customer interaction/customization. This affects managerial challenges.
2. The Service Package describes the facilities, goods, information, and services that comprise a service.
3. Services have distinctive characteristics like intangibility, simultaneity of production/consumption, perishability, heterogeneity, and customer participation.
4. Services can be classified strategically based on factors like their nature, customer relationships, customization, demand characteristics, and delivery method. This provides insights for managing different types of services.
One of the Chapters of an MBA Course Series on Services Marketing under Marketing Management that is tought at the B-Schools in India.
This chapter is the Introduction (Part-2) which deals with How to market "Services"
This document discusses marketing strategies for the insurance sector in India. It begins by explaining the importance of insurance in helping people deal with risks and uncertainties. The main objectives of the project are to study consumer decision making processes and purchase factors for insurance policies. It then outlines the sampling design used, which involved a survey of 50 respondents through structured questionnaires. Key findings from the data include that most buyers are aged 25-60, interested in online purchasing, and influenced by company reputation and income levels. The document concludes by recommending strategies like improving awareness, relationships, and transparency to better influence insurance purchase decisions.
This document provides an introduction to services marketing. It defines what constitutes a product and service, highlighting that a service is an act or performance offered by one party to another. It also outlines some key differences between goods and services. The document discusses the importance of the services sector in modern economies and provides examples of different types of service industries. It examines factors influencing the growth of the services sector and important characteristics of services. Finally, it looks at some of the challenges in marketing services compared to goods.
This document provides an introduction and overview of services marketing. It discusses how services have become increasingly important in the global economy. It defines what services are, highlights some key features of services such as intangibility and inseparability, and discusses how these features necessitate distinct approaches to marketing services. It also covers various ways of classifying services and some common problems in marketing services. Finally, it discusses important aspects of services marketing such as service design, forms of measuring service capacity, and techniques like blueprinting and service mapping.
This document provides an overview of a module on services marketing. It discusses key topics that will be covered, including the importance of the services sector, defining what a service is, the nature and characteristics of services, and differences between goods and services. It also presents the service management decision framework and explores strategies for addressing challenges specific to services, such as intangibility, inconsistency, inseparability, and inventory issues.
Spyros Langkos_Athens Archeological Museum_individual report and reflective c...Spyros Langkos
Spyros Langkos_Athens Archeological Museum_individual report and reflective commentarry
Master in Marketing Management - University of Derby
Mediterranean College, Athens, Greece
In this presentation, we will discuss classification of Services. Definition of Service Classification, Classification Schemes and several other topics discussed here will give a detailed idea about how the process of catering services in the market affects a brand identity.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Marketing of services an introduction and factsVipin Kumar
The document discusses key concepts related to marketing of services. It begins by defining services and distinguishing their characteristics from goods. Services are intangible deeds, processes and performances. They are heterogeneous, inseparable from their production and consumption, and perishable.
The document then covers India's large and growing services sector. It contributes over 50% to India's GDP across sectors like trade, transport, finance and real estate. The growth of services has increased demand for services marketing. Deregulation of industries like airlines and telecoms has given firms more marketing control.
The final sections discuss frameworks for understanding services like the core-supplementary spectrum and service typology based on customer and possession processing. It also covers customer
The document provides an overview of services marketing by discussing several key points:
1. The service sector dominates developed economies, with most jobs and growth coming from services.
2. Services can be categorized into four groups based on their underlying processes: people processing, possession processing, mental stimulus processing, and information processing.
3. Marketing of services differs from goods in several ways, such as the intangible nature of services and customer involvement in production.
4. The marketing mix for services, known as the "7Ps", includes traditional elements as well as physical environment, process, and people. Managing the 7Ps requires collaboration between marketing, operations, and HR.
Services marketing hint for comprehensive examination 2011mcrashidkhan
The document discusses different frameworks for classifying services and their usefulness to managers. It describes four main classifications: people processing, possession processing, mental stimulus processing, and information processing. For each classification, it provides examples and discusses what managers should consider regarding marketing strategy, operations, and customer experience based on the type of processing involved. It also defines search, experience, and credence attributes of services and provides examples of each.
This document discusses the key characteristics of services. It defines services as acts of performance that are intangible and do not result in ownership. Services are not tangible, cannot be stored, perish during consumption, and their quality is difficult to standardize. The document also classifies services in various ways, such as by market segment, degree of tangibility, skills required, and degree of regulation. Finally, it discusses factors driving the increasing importance of the services sector in India, such as rising incomes, education, information access, and government participation in more sectors.
1) The document discusses the service sector in India and worldwide. It notes that the service sector now accounts for over half of India's GDP and a majority of employment. Services are growing faster than other sectors in most developed economies.
2) Key characteristics of services are discussed, including intangibility, inseparability, heterogeneity, and perishability, which present unique challenges for marketing services. Factors driving growth of the global and Indian service sectors are also summarized.
3) The document provides definitions of services from various scholars and organizations. Services are generally defined as activities or benefits that are intangible and do not result in ownership.
Service can be classified in several ways, including by market segment, degree of tangibility, skills of the service provider, goals of the service provider, degree of regulation, degree of labor intensiveness, and degree of customer contact. In India, services contribute 60% to GDP and 35% to employment, with 80% of exports dominated by high-skilled services like software and communication. Services can be categorized as catering to end consumers or organizational customers, having tangible, rental, or non-good offerings, and requiring highly skilled or unskilled labor. They can also be profit-making or non-profit, face high, limited, or absent regulation, and be equipment-based, people-based, requiring un
Critical review writing_help essay sample from assignmentsupport.com essay wr...https://writeessayuk.com/
This document provides guidance on writing a critical review. A critical review involves summarizing a text and evaluating it based on various criteria. The summary describes the topic, main questions, arguments, evidence, and conclusions. The evaluation assesses the text's relevance, usefulness, support for arguments, and whether conclusions are final using discipline-appropriate criteria. The review should be organized with an introduction, body separating summary and evaluation, and optional conclusion restating the overall assessment.
Research format template essay sample from assignmentsupport.com essay writin...https://writeessayuk.com/
The document provides guidance on writing a research proposal. It explains that a proposal gives a brief overview of a research project to demonstrate its viability to the university. The key components that should be included are: a working title, overview of the subject area and relevance to disciplines, review of literature, research questions/objectives, methodology, expected results, timescale, and references. Some tips are to choose a focused but achievable topic, ensure there is university expertise to supervise it, and select a topic you are interested in.
Insurance policy in_chinas_earthquake essay sample from assignmentsupport.com...https://writeessayuk.com/
The document discusses insurance policies in China regarding earthquakes, specifically analyzing the 2008 Wenchuan earthquake. It finds that while many people were affected, only a small percentage were insured. The legal procedures for insurance payouts faced difficulties. It also compares China's policies to those of Japan and New Zealand. The impacts of insurance policies on disaster victims are discussed. The document concludes China needs to establish a better legal insurance system through government and legislative action.
Art book review essay sample from assignmentsupport.com essay writing services https://writeessayuk.com/
This document discusses different types of artist's books. It begins by defining an artist's book as a unique, thematic work of art created by an artist in book form, often published in small editions. It then explores artist's books as conceptual works, using examples to show how artists have used themes and concepts. It also examines artist's books that use verbal exploration and language experimentation to convey ideas. Another section looks at artist's books as agents of social change that comment on society. The document concludes by looking at artist's books as documentary works and personal archives.
Economic policy essay sample from assignmentsupport.com essay writing services https://writeessayuk.com/
The document analyzes Australia's economic policies for healthcare and aged care services. It discusses key health issues for older Australians like burden of disease, dementia, and disabilities. While life expectancy is rising, chronic conditions are increasing. Current policies are improving services but issues remain. Future economic policies will need to address rising costs and demands from an aging population to ensure quality care. New technologies may help support older Australians' health needs if adequate policies are implemented.
Harvard style referencing sample from assignmentsupport.com essay writing ser...https://writeessayuk.com/
This document provides guidelines for using the Harvard referencing system, including how to cite sources in-text and provide a reference list. It discusses how to reference many different source types, such as books, journal articles, websites, personal communications, images and more. Specific formatting guidelines are given for writing reference list entries depending on the source. The goal is to avoid plagiarism and allow readers to easily locate the sources cited.
Physics lab report sample from assignmentsupport.com essay writing services https://writeessayuk.com/
This study investigated how colour and luminance interact in human visual perception of depth. Participants viewed stimuli consisting of combinations of chromatic and luminance gratings and adjusted the apparent depth. The results showed that chromatic gratings produced significantly greater perceived depth than achromatic gratings. Perceived depth was also greater for gratings that were out of phase compared to in phase, though the difference was not statistically significant. Perceived depth decreased with increasing spatial frequency and was not significantly different for drifting vs static images. The findings provide insights into how colour contributes to the human visual system's perception of depth and shape from shading.
This document discusses initial public offerings (IPOs) and analyzes Facebook's 2012 IPO as a case study. It begins with an executive summary stating that IPOs allow firms to raise funds, expand globally, and attract customers and talent. The document then provides a brief introduction to IPOs, describes the objectives of researching IPOs, analyzes Facebook's record-breaking IPO, and recommends that firms pursue IPOs after establishing growth and potential customers.
Nursing dissertationsample from assignmentsupport.com essay writing services https://writeessayuk.com/
This document discusses communication between nurses and end-of-life dementia patients. It notes that patients with dementia often receive inadequate end-of-life care, such as pain management and hospice care. Communication between nurses and patients is important for decision making but is often poor. The document aims to analyze the current state of communication and how it impacts patients and families, and to identify opportunities to improve end-of-life care and communication for dementia patients. It conducts a literature review on the topic and discusses methodologies used in related research studies.
Strategic audit report essay sample from assignmentsupport.com essay writing...https://writeessayuk.com/
The document provides an audit report for Bright House, which sells furniture, electronics, and appliances. It identifies six key areas of audit risk: 1) complex transactions, 2) cash accounts, 3) equipment accounts, 4) supplies accounts, 5) accounts receivable, and 6) accounts payable. The report explains why each area was selected, noting they involve external parties, large financial transactions, or opportunities for misstatement. It then recommends substantive audit tests for each area to address weak internal controls, such as reviewing all transactions, surveying funds usage, and using external committees to evaluate mergers.
The document provides guidelines for citing sources in MLA citation style. It discusses the following key points:
1. MLA style uses a simple two-part parenthetical documentation system for citing sources, with citations in the text pointing to an alphabetical Works Cited list at the end.
2. Parenthetical citations should be brief, including the author's last name and page number if available. They are placed close to the source material being cited.
3. The Works Cited list provides full bibliographic information for all sources cited, arranged alphabetically by author's last name.
4. Examples are provided for proper citation of different source types such as books, articles, websites, and more.
Intercultural communication-in-international-market essay sample from assignm...https://writeessayuk.com/
The document discusses the importance of intercultural communication in international marketing. It states that as globalization increases, understanding different cultures and communicating effectively across cultures is vital for business success abroad. However, many companies fail due to a lack of intercultural competence and misunderstandings that arise from cultural differences. The document emphasizes that awareness of cultural variations, an open mindset, and positive engagement with other cultures can help enhance intercultural communication and improve business outcomes for companies operating in international markets.
Clinical practice critical_research_paper essay sample from assignmentsupport...https://writeessayuk.com/
The document summarizes a qualitative research study that analyzed paradoxical realities in everyday clinical practice through interviews and surveys across 13 healthcare organizations in Canada. Key themes identified included near misses as a metaphor for system vulnerabilities, factors contributing to near misses like communication issues, and strategies for safer processes like improved training. Researchers conducted ethics-approved interviews with healthcare professionals and patients on their experiences. Data analysis identified major themes around system gaps and opportunities for enhanced safety. The rigorous study provided valuable insights into improving the healthcare system.
Reflective essay essay sample from assignmentsupport.com essay writing services https://writeessayuk.com/
The document is a reflection paper by a student on their experience participating in a group project as the team leader. Some key points:
- The student took an active role in coordinating the group by maintaining communication through various means and ensuring all members were on track. They helped the other members develop their own ideas.
- In a peer evaluation, the student received a score of 3.5/5 which was satisfactory but showed areas for improvement. They have learned to consider all aspects of a project, not just profits.
- Over 12 weeks the group worked closely together both in and out of class. The student improved at listening to others' opinions and considering different perspectives in decision making.
- Areas
This document provides an introduction to services marketing and discusses key concepts. It defines services and outlines their key characteristics of intangibility, inseparability, perishability, and heterogeneity. Various types of services are classified. The marketing mix for services is discussed, noting it differs from the traditional product marketing mix and includes 7 Ps: product, price, place, promotion, physical evidence, process, and people. The document uses State Bank of India as a case study to explore customer expectations and how a company can manage its service offering, marketing mix, and brand positioning.
This document provides an overview of services marketing and discusses the low-cost airline AirAsia. It includes definitions of services, reasons for the growth of the services sector, characteristics that distinguish services from goods, and a case study analysis of AirAsia. The document contains four chapters that cover introduction to services marketing, airline management, the AirAsia case study, and conclusions and recommendations.
This document discusses key differences between marketing services versus physical products. It identifies four main characteristics of services: intangibility, inseparability, variability, and perishability. Marketing plays an important role in addressing the challenges of these characteristics. The document also discusses three important elements of a services marketing mix: people, process, and physical evidence.
Introduction of Services Marketing • Services Marketing Concept, Distinctive Characteristics of Services, Services Marketing Triangle, Purchase Process for Services, Marketing Challenges of Services • Role of Services in Modern Economy, Services Marketing Environment • Goods vs Services Marketing, Goods Services Continuum • Consumer Behaviour, Positioning a Service in the Market Place • Variations in Customer Involvement, Impact of Service Recovery Efforts on Consumer Loyalty • Type of Contact: High Contact Services and Low Contact Services • Sensitivity to Customers’ Reluctance to Change
This document discusses several key concepts related to marketing services, including intangibility, inseparability, variability, and perishability of services. It provides examples to illustrate these concepts, such as how a haircut experience involves both tangible (e.g. equipment) and intangible (e.g. styling skills) elements. Relationship marketing and customer loyalty are also discussed, highlighting how satisfying and retaining existing customers is important for business success. The document then covers customer lifecycles, satisfaction, and retention strategies that companies employ to foster long-term customer relationships.
This document discusses concepts related to marketing services. It begins by defining what a service is, noting that services are intangible acts that do not result in ownership. The document then discusses why studying services marketing is important due to trends like increasing incomes and specialization. Characteristics of services like intangibility, inseparability, variability and perishability are explained. The STP process of segmentation, targeting and positioning is also introduced. Segmentation involves dividing the market into groups with similar needs, while targeting means selecting specific market segments to focus on. Positioning refers to how a product or service is perceived relative to competitors.
This document discusses key concepts in services marketing, including the 7 Ps of services marketing versus the traditional 4 Ps of product marketing. It also discusses differences between goods and services, and provides examples of how concepts like the 7 Ps apply to banking services. Benchmarking and gap analysis are introduced as tools to compare actual performance to potential performance or industry best practices. The goal of these tools is to identify areas for improvement.
Chapter 24, service and non profit marketing, class notesvarsha nihanth lade
This document summarizes key points from a class about service and non-profit marketing. It discusses the unique characteristics of services like intangibility, inconsistency, inseparability, and inventory issues. It also covers the extent of the service sector in the economy. Non-profit marketing is introduced and compared to for-profit marketing, noting non-profits have multiple goals and constituents. Examples are provided of marketing efforts by non-profits like a fire department and police.
This document provides an overview of services marketing. It defines services and discusses their key characteristics of intangibility, variability, and perishability. It also examines the 7Ps marketing mix framework for services - product, price, place, promotion, people, physical evidence, and process. Additionally, it outlines the three stages of the service consumption process - the pre-purchase, service encounter, and post-purchase stages. Finally, it introduces the concept of the services triangle to address the challenges of understanding customer needs, making services tangible, and keeping promises through internal, external, and interactive marketing.
This document discusses services marketing. It begins by defining a service as an act or performance offered by one party to another that is intangible and does not result in ownership. The world economy is increasingly becoming a service economy, with services making up over 50% of GDP in many countries. The service sector provides employment, especially for unskilled workers, and includes industries like financial services, tourism, retail, and education. Unique characteristics of services include intangibility, perishability, inseparability, heterogeneity, and lack of ownership. Challenges in services marketing include variable quality, managing capacity, competition, service development, and differentiation from competitors.
The document discusses the 7 Ps of the marketing mix for services:
1. Product refers to the service itself and how marketers design services based on customer wants. Services are intangible.
2. Price considerations include service price levels, discounts, and payment terms. Price influences perceptions of quality.
3. Place focuses on distribution, as many services are provided at the producer's location. However, technology now enables some services to be provided online without physical visits.
4. Promotion, like advertising, is important for raising awareness of intangible services. Personal selling also influences customers.
5. People involved in service delivery, like employees and customers, influence perceptions through their appearance and behaviors
The document discusses the importance of customer service and logistics in marketing. It notes two factors that have increased the importance of customer service: 1) continually rising customer expectations and 2) the transition to more commodity markets where brand differences are less apparent. Superior customer service, including meeting demands for shorter lead times, is critical for becoming a preferred supplier. Logistics management can impact key aspects of delivering customer value like quality, service, cost and time. Elements of customer service include pre-transaction policies, transaction reliability, and post-transaction support. Stockouts negatively impact both manufacturers and retailers as customers may switch brands or stores. Developing strong customer relationships up and down the supply chain is vital for marketing success.
This document discusses logistics, customer service, and their impact on marketing and business success. It makes three key points:
1. Customer expectations and the commoditization of markets have increased the importance of customer service as a competitive advantage. Superior customer service can help win orders and become a preferred supplier.
2. Logistics management impacts key aspects of customer value - quality, service, cost and time. Companies must continuously improve these areas to ensure competitive advantage.
3. Identifying customer service needs through market research and defining clear service objectives allows companies to deliver the right level and quality of service customers require in a cost-effective way. This supports a market-driven supply chain strategy.
IRJET- A Study on the different Elements of Customer Loyalty and its Impact o...IRJET Journal
The document discusses customer loyalty and its impact on business. It defines customer loyalty as repeat purchasing and positive word-of-mouth promotion. Customer satisfaction is key to developing loyal customers. The objectives are to study aspects of customer loyalty and understand its origins and implications. A literature review covers definitions of loyalty, factors that influence satisfaction like expectations and fairness, and common loyalty programs in industries. Research questions are raised about how networks and programs can build loyalty profitably. The implications are that the research provides a framework to assess loyalty programs and help managers utilize limited resources effectively to understand customer satisfaction and loyalty levels.
chapter2.pdf processof marketing including the memoryOshadiVindika
The document summarizes key aspects of consumer behavior in the context of services marketing from Chapter 2. It discusses the three main stages of service consumption: pre-purchase, service encounter, and post-encounter. During the pre-purchase stage, customers become aware of needs, search for information, evaluate alternatives, and make a purchase decision. The service encounter stage involves interacting directly with the service provider. Models like "moments of truth" and high/low contact are used to understand the customer experience. In the post-encounter stage, customers evaluate the service and determine future intentions.
This document provides an overview of services marketing. It defines services and differentiates between goods and services. Services are intangible, inseparable from their production and delivery, variable in quality, and perishable. They also involve customer participation and no transfer of ownership. The growth of the service sector has led to service economies where services contribute over 50% of GDP. Services marketing faces challenges due to the intangible nature of services and difficulty in ensuring consistent quality. It also discusses measuring productivity and customer expectations in services.
The document discusses the growth of the service sector in India's economy. It notes that services have increasingly assumed an important role in the past decade and now dominate the Indian economy. As competition in the service sector intensifies, organizations must take a more professional approach to managing their businesses. In this context, the role of marketing is gaining importance for service organizations. The summary provides an overview of the key points made in the document regarding the rising significance of services in India and the implications for how service organizations are managed.
Services marketing has several unique characteristics compared to goods marketing. [1] Services are intangible, cannot be owned, and are inseparable from their production and delivery. [2] They also perish if not consumed when produced and may vary in quality between providers and over time. [3] A key framework for services marketing is the 7 Ps - product, price, place, promotion, people, process, and physical evidence. Physical evidence helps make intangible services more tangible for customers. Moments of truth and magic/misery refer to positive and negative customer interactions that shape perceptions.
Services marketing focuses on advertising intangible transactions that provide value to customers, unlike product marketing. It involves identifying, communicating, and delivering value to customers in a way that benefits the organization and stakeholders. Services are usually intangible economic activities offered by one party to another that bring about desired results for recipients in exchange for money, time, and effort. Customers expect value from access to goods, labor, professional skills, facilities, networks, and systems through a service, but do not take ownership of physical elements.
Services marketing refers to the marketing of both business-to-consumer and business-to-business services. It focuses on the distinctive characteristics of services and how they affect customer behavior and marketing strategy. Services are activities that are often time-based and bring about desired results for customers without transferring ownership. In services marketing, the traditional 4Ps are adapted and expanded to the 7Ps, which include people, physical evidence, and processes involved in service delivery. Services marketing helps organizations design customer-focused processes to create quality experiences from the customer's perspective.
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Mechanical engineering essay sample from assignmentsupport.com essay writing services
1. Coursework is receipted on the understanding that it is the student's own work and that it has not, in
whole or part, been presented elsewhere for assessment. Where material has been used from other
sources it has been properly acknowledged in accordance with the University's Regulations
regarding Cheating and Plagiarism.
Tutor's comments
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Service Failure and Recovery
2. Service Failure and Recovery
Table of contents
Introduction------------------------------------------------------------------------3
Main Content
What is service--------------------------------------------------------------------4
Characteristics of Service--------------------------------------------------------5
Why service goes wrong?--------------------------------------------------------8
What is service failure?----------------------------------------------------------8
Types of service failures---------------------------------------------------------8
Service recovery-----------------------------------------------------------------10
The key of service recovery---------------------------------------------------10
Service recovery strategies----------------------------------------------------12
Relationship marketing in service--------------------------------------------14
Brand Equity in service--------------------------------------------------------17
Conclusion-----------------------------------------------------------------------20
References------------------------------------------------------------------------21
1
3. Service Failure and Recovery
Introduction
Building strong brands is of indispensable for high-tech and service areas. The
world’s overall service exports increased by 12.0% between 2000 and 2008 (Ref:
World Trade Organization 2009). At the same time, the three major exporters
experienced an export growth of commercial services of 22.8% (US), 38.2%
(Germany), and even 77.9% (UK) higher than the export growth of manufactured
goods (World Trade Organization 2009). Many people start to know service is
important, but do they know the real service? And how to serve customers. This is not
a simply smile.
This essay will introduce what is service firstly, this part includes the definition and
the characteristics of service. Secondly, the discussion is about why service goes
wrong-the service failure. After that the service recovery comes, except introduce the
definition, the author focus more on service recovery strategy. Last but not least, how
to measure the result of these strategies also will be discussed in the last part.
What is service?
Services cannot be called minor or unimportant part of western economies, but go to
the major view of value creation. The service sector is not novel, as proved by biblical
references to innkeepers and financial helpers among others. Today nearly all of the
goods we buy have an element of service somewhere. We can readily increase
activities such as accountancy, banking as being service based. Also a swath of goods
relies on service-based actions to give them usage worth, and a marketing advantage
over other competitors. Many sophisticated goods such as television sets and washing
machines pertain to service offers relying on delivery, financing, insurance and
2
4. maintenance benefits. (Palmer, 2008)
There are many definitions of constitution of service. Modern definitions are based on
the facts that a service alone is not giving any tangible output, but inturn helping in
the production of these goods. A genuine definition of a service was given by The
Economic, which states that service is "anything that cannot be dropped on your
foot." The definition that would be implemented with reference to this paper is: "Any
indispensable intangible facility, either by itself or as a significant element of a
tangible product, that is requisite in some form of exchange and satisfies an
identified need." (Palmer, 2008) While only a definition is far away to understand
what is service, the characteristics of service can not be ignored when discuss about it.
Characteristics of Service
Service has various unique characteristics that separates them from goods and have
implications how they need to be are marketed. These characteristics very often are
mentioned as intangibility, variability, non-perennial nature and the inability to own a
service. These are referred herewith: (Palmer, 2008)
Intangibility
Every pure service is assessed; it can hardly be checked or scrutinized before it is
purchased. A prospective purchaser of most goods of this category is able to scrutinize
goods for physical integrity, reliability, genuine appearance, flavor, arome etc.
However many advertising say examining these tangible properties could be possible
by inspection prior to purchase. But pure services have no tangible properties that the
customer can use to examine advertising claims before the purchasing them. The
intangible process features mentioning services, such as genuine faith, personal care,
3
5. staff behaviour, their efficacyetc., can only be scrutanized after purchasing or
consuming that service. (Palmer, 2008)
Inseparability
The production and consumption of a tangible good are very different from each other.
Production of goods takes place by companies in one central location and then they
are transported to places where there is greatest probability of customers purchasing
them. Thus, the large scale manufacturing firms can acquire economies of scale
through a centralized producing unit and can maintain centralized measures for
quality control. The manufacturing firms also have the advantage to manufacture
goods at time as per their convenience; and make them available to customers at times
that are convenient to customers. Consumption and Production are very different yet
inseparable from each other. Consumption of a service is said to be interlinked and
dependent on its means of production. The interaction of the producer offering the
goods and the consumer buying the goods is important for the benefits of the service
to be realized. There should be adequate interaction: taking in consideration the
suitability of time and place for both the parties so that the producer can directly pass
on service benefits to the consumers. However when talking about specific cases of
personal care services, the presence of the customer is necessary through out the
entire process of production: for example-a surgeon can perform an operation on a
patient only when the patient is actually present there; so the complete involvement of
the consumer is required here. In this context marketing has emerged as an excellent
means of improving complex producer-consumer interaction; it cannot be called a
mere medium of exchange in today’s context. (Palmer, 2008)
Perishability
Services differ from goods in terms of tangibility: the former cannot be stored. A car
4
6. manufacturing company can easily bring forward its excess stocks if it is unable to
sell all of its output in the current period. It is a mojor advantage for goods
manufacturing company; apart from the storage costs, financing costs and the
possibility of loss through some sort of catastrophy. On the contrary, a service
producer that cannot sell all of its output produced in the current period does not get
such opportunity to carry forward the service for sale in the subsequent financial
period. An airline offering a flight from Paris to New York at 8 AM cannot carry
forward its services ( vacant seats) once the aircraft has left at 8.00 am. The service
becomes ineffective once the scheduled time elapses and spare seats cannot be kept to
meet any increase in demand if it is anticipated the next hour. (Palmer, 2008)
Ownership
Service to a large extent depends upon the characteristics of intangibility and
perishability. Buyers have the right to thoroughly evaluate the required item while
purchasing; the final decision to purchase lies in the hands of the buyer as they are
free to what they want and can even in turn sell the product to a third party. But when
a service is provided to the customer, the ownership still remains with the seller. The
buyer/ customer is simply purchasing the right to benefit from a service process such
as the use of a public park or a solicitor's time. However; there is a difference between
the inability to own the service and the rights owned to acquire a service in future.
Example buying a theatre ticket gives the buyer a temporary right to avail the facility
at some specific time in future; it does not entitle him to avail the service always at his
beck and call. Lovelock and Gummesson 2004 have defined the concept of
rental/rights as a service where it is not possible to provide the ownership of a product
to another person through an exchange or transaction medium.
This factor of inability to own a service in turn has some specific lay out
methodologies for the architecture of distribution channels; such that the wholesaler
5
7. or retailer is not empowered to take title, as is the case with goods. Instead, the newer
direct distribution methods are popular where subsequent intermediaries are present,
very often playing the role of a co-producer with the service provider. (Palmer, 2008)
Over all, the service is a type of economic activity that is intangible, inseparable and
variable, not stored and does not result in ownership. Services are one of the two key
components of economics, the other being goods. Therefore, the service is very
important to each company, while is it go right in every organization.
Why service goes wrong:
The requirement of each person is different, therefore it is impossible for one product
to satisfy all customers. Very often services provided to the customers are not in
accordance to their requirements or the way they anticipated them to be; leaving
customers dissatisfied. A major reason for this discontentment is the inseparable and
intangible nature of services. A customer may define a service failure as an
unfavourable situation where something has gone wrong or out of the customer’s
anticipation; irrespective of responsibility. Personal and high contact services are
intertwined and interlinked; as a result service failure usually cannot be disguised
from the customer. Service failure can be a minor negligible such as a short delay or
smallinconvenience to the customer; or sometimes my also result in a grave issue,
such as a food poisoning incident. (Palmer, 2008)
What is service failure:
Service failures can be referred to a state of sheer customer dissatisfaction mainly due
to any service related mishaps or infelicitous conditions (real or perceived) that has
serious repercussions on the customer's experience with a firm (Maxham, 2001).
6
8. Depending on the characteristics, service failures can be of two types: outcome and
process. The former is pertaining to complicationswith the core service supply that the
customer is getting in the name of service; the latter one refers to some outcomes that
inturn make the service unpleasant for the customer; example service delay, a cold
attitude towards the customer etc. Smith et al support this type of classification with
special reference to the banking sector; very often it can be seen that there are
outcome failures, such as lack of reliability and folly, and process failures, such as
unhealthy communication with a bank employee.
Types of service failures
The consequences of service failures are not similar in each case since the outcome
failure consequences are way different from those in a process failure. Smith et al
(2009) has mentioned this on the basis of mental accounting principles and prospect
theory. As feelings and contentment are outcomes to specific circumstances
(Zeelenberg and Pieters,
2004 ), it can be suggested that each type of service failure
will have a distinct impact on customers’ feelings and contentment.
Bagozzi et al (1999) states that emotions/ feelings basically behave as broad classes of
positive and negative affects; which inturn means that there are two basic aspects of
emotion (Oliver, 1993; Westbrook, 1987). The division of emotions in two groups
–positive and negative is beneficial because these divisions can act as a tool to
understand and interpret a person’s attitude, and the austerity of the case (Laros and
Steenkamp, 2005 ).
In a service failure condition, buyers do not gain any positive experiences;so it is only
the negative emotions- resentment, anger, disappointment and loss of faith that need
to be considered.A detailed explanation to this would be in considering the types of
failure that result in such negative emotions and discontentment. (Neira et al, 2010)
7
9. Nicholls et al (1995) inferred that customer contentment depends on the swiftness of
the process and the employees’ intimacy, attention, proficiency and professionalism.
Smith et al (1994) has revealed that there was more discontentments among customers
who experienced process failures than those having outcome failures. Similarly
Hoffman et al’ (1995) demonstrated that failures as a result of employees’ attitude
towards the customers have most grave consequences unlike issues pertaining to
faulty systems. In another study Gwin and Lindgren (1986) were capable of proving
that for financial services the customer- service provider relationship has more
importance than the service implication. Finally, Al-Eisa and Alhemoud (2009) have
inferred that a swift and friendly service, warmth and helpfulness of employees are
requisite for strong customer bonding and contentment especially with reference to
retail banks.
Outcome failures are in fact the right plans and procedure that due to chance or
negligence result in unpleasant consequences. Thus, the customer will rate it
negatively but there is no negative emotion associated with it. On the other hand, a
process failure is in fact a wrong plan or strategy which very often appears intentional
with a favourable result. This results in the customer developing a sense of treachery
and negative thoughts towards the service provider. (Neira et al, 2010)
So al together it can be inferred that service failures develop negative thoughts and
opinion in the customers. If unresolved, it can even result in customers leaving the
service provider and suggesting other customers not to have any terms with them and
even challenging the organization through consumer rights bodies or legal channels.
8
10. Service recovery
Service failure cannot be avoided every time; so it is important to think of plans for
service recovery. Service recovery incorporates actions aimed to resolve problems,
diminish negative emotions of discontented customers and eventually retain these
customers" (Miller et al., 2000), and it encompasses conditions where a service failure
occurs but customers show no negativity towards it (Smith et al., 1999). Further,
Johnston (1994) defines it as to "seek out and approach service failures directly" the
"seeking out" differentiates recovery from complaint handling, as many discontented
customers do not complain.
The key of service recovery
Successful service recovery has significant benefits. It increases customers'
anticipation of the efficiency of the service and the company; result in positive and
healthy communication; increase customers-satisfaction; and develop customer
bonding, loyalty and eventually effect the company’s profits (Bitner et al, 1990; Hart
et al., 1990; Spreng et al, 1995; Michel, 2001).
However, the extent of success is based on:
A, the kind of service provided (Mattila, 2001)
B, the kind of service failure (McDougall and Levesque, 1990)
C, the swiftness in responding (Boshoff, 1997)
In this essay, the author already introduced the type of service and service failure,
while what is the speed of response and why it is also important to service recovery.
The swiftness in responding to service failure is the time the customer must wait to
receive a response from the service provider; be it positive or negative. It is a major
point of concern in both the complaints and the service encounters literature. (Kelley
9
11. et al, 1993; Clemmer and Schneider, 1996; Taylor, 1994). But the real or objective
time and perceived or subjective waiting time are not the same and this needs to be
shown effectively. According to Pruyn and Smidts (1998), the latter effects the
customer’s analysis to a greater extent.
The equity theory suggests that a delay in the service recovery increases the perceived
inequity in the bonding between the service provider and the buyer by adding to the
damages claimed by the customer (Maister, 1985). This is mainly due to the
importance of time in everyone’s lives. Prolonged delay in service recovery will add
to the customer dissatisfaction. Customers are very conscious that a bank is actually
concerned for their problems and needs or not and becomes disappointedwhen there is
no help available readily (Lewis and Spyrakopoulos, 2001).
Therefore, the swiftness in responding to the service failure can be inferred as an
indication to recovery status and service quality (Wirtz and Mattila, 2004). Most of
the studies on this topic support that the swiftness in responding has a major impact
on customers' evaluations of the service which involves contentment as well (Boshoff,
1997; McDougall and Levesque, 1999; Swanson and Kelley, 2001).
Thus, customers are more contented with the service recovery when there is swiftness
in responding to the service failure. But in addition to rapid response, choose the right
strategy is more important.
Service recovery strategies
Service recovery strategies involve the actions taken by the service providers in
response to the service failures; these involve an amalgamation of psychological
recoveries and tangible efforts, and are a topic of consideration for several researchers
in this area. Bitner et al. (1990) has referred to the critical incident technique or
10
12. open-ended survey which gives respondents the liberty to emphasize any service
problem they have faced in order to identify and develop service recovery strategies.
Some of the strategies and plans that were inferred after such analysis were: Pardon;
Briefing; Amendment; Empathy; Compensation; Follow-up; Acknowledgment;
Special emphasis; and Managerial intervention. The author thinks that all the recovery
strategies can be classified into below three types according to the time when they can
be used.
Acknowledgment – Apology (explanation)
An acknowledgment and apology (explanation) are usually necessary planks of
service recovery. They should be used at the first time when service failure occurs.
The propose is to appease the customer's mood, avoid the situation from deteriorating.
An acknowledgment/apology can be referred to as a psychological compensation.
Unless really is inevitable objective reasons, or too mach explanation may let person
antipathetic (Davidow, 2000). An apology is the most appropriate way of gaining
customer’s confidence and esteem (a social resource) in such conditions as in the
banking sector (Walster and Walster, 1973 ).
In accordance with equity theory providing equity in the customer- service provider
bonding after a service failure, it is acceptance of mistake is required and apology is
indispensable (Boshoff and Leong, 1998). An apology refers to the acceptance given
by the organization accepting the losses or inconvenience suffered by the customer
and inturn trying to amend in the best possible way (Kelley et al., 1993 ). This in turn
strengthens the customer’s evaluation of the recovery system (Kelley et al., 1993 ) by
revealing the concern the organization has towards the customer who was affected by
the service failure.
Jenks (1993) declares customers do expect the organization to accept the folly in case
11
13. of a service failure. Like ways, Johnston and Fern (1999) state that apologies are
essential to achieve contentment with regain of financial services. Similarly, several
authors prove that an acceptance of folly strengthens customers’ idea of contentment
and justice. (Hart et al., 1990; Bitner, et al., 1990; Goodwin and Ross, 1992; Conlon
and Murray, 1996)
Thus, there is a much higher degree of reliability and contentment in the customer’s
part when the service provider gives an apology in case of service failure
.
Compensation strategy
After the customer calmed down, how to make up the fault is need to be consider
about. For the redevelopment of equity in the exchange process, it is importantthat the
the service providershould pay for the losses suffered by the customer due to service
failure on the organization’s part. (Walster et al, 1973). A wide range of studies on the
topic reveal that customers anticipate compensation after a service failure. (Blodgett,
et al, 1997).Specifically, Lewis and Spyrakopoulos (2001) reveal that retail banking
customers on a service failure anticipate to get what was to be provided to them in the
first place to make things smooth and normal between the two parties. Thus a most
probable recovery strategy is the pay for the losses beared by the customer(Bell and
Ridge, 1992; Zemke, 1994). The key concept of a compensation strategy is to
compensate the customer for the losses du to the failue of services on the
organization’s part and try and fabricate a balance wherein there is neither loss nor
profit and contentment for both the parties(Boshoff, 1997). Thus to develop equity
again, it is imperative to compensate the customer for their losses that includes
redirecting the transaction and exchanging the good if possible or refunding the
money. Precisely saying, a compensation strategy elavates customer belief on the
organization even in case of service failures. (Miller et al, 2000, Ruyter and Wetzels,
12
14. 2000; Bitner et al, 1990; Boshoff, 1997; Duffy et al, 2006)
Thus, customer belief on the organization is higher when the service provider offers
compensation in cases o service failures than when it does not.
Correction
After the apology and compensation, it is not mean all things already finished. It is
more important to find out the reasons why lead to the service failure. Even a small
service failure event could destroy a brand. And the compensation also leads to a lost
of interest more or less. So the following work is avoid the same thing to happen
again.
Although the above strategies can be used after the service failure occurs, the real
service recovery strategy means something more than them. For example, using the
relationship marketing to build strong links with customers is a depth and long-term
strategy.
Relationship marketing in service
For the materialization of services marketing is requisite. Berry(1983) has defined
relationship marketing as “method to allure and attract customers and – in multi-service
organizations – strengthening customer relationships”. In fact relationship marketing
pertains to all marketing methodologies aimed in creating, developing and maintaining
healthy relational exchanges. Morgan and Hunt (1994)
Successful bonding between partners is a long term process; gradually fabricated with
the passage of time. Five distinct phases are present with reference to this process:
(Scanzoni, 1979). Awareness is the initial phase in this bonding cycle and states that the
consideration of second partner as an appropriate exchange partner is important. The
13
15. parties are not interacting with each other; it is just an effort to maintain a strong
relation that can elevate their attraction toward other organizations.
The next phase is exploration; it is the investigation process and initial phase in
relational exchange. Here the first step is consideration of the pros and cons, benefits
and losses, burdens and liabilities by the potential exchange partners.
The third phase is called expansion or elaboration; it involves the incessant growth of
profits achieved by exchange partners and their increasing escalating collaboration.
However the basic difference between exploration and elaboration is that here there is
mutual faith between the partners and also a sense of contentment. If relationships
develop then commitment is formed between the two business partners.
Commitment is the most requisite part of relationships and pertains to a conspicuous or
inconspicuous sense of relational development between exchange partners (Dwyer et
al., 1987). Two major factors affect the growth of ccommitment; the first is that both the
partners need to put in significant measure of inputs to their collaboration. The second
assumption is based on the reliability which is the extent to which they can rely on each
other with respect to a long term association.
The last phase of successful bonding development is dissolution. Here there is involved
a sense of intrapsychic temperament wherein one party secretly evaluates its
discontentment with the other party, deducing that the price of amendment or
modification is much more compared to the negative aspects in the association.Thus it
develops a sense of interdependence and each others importance. Dissolution is then
presented publicly.
For the above mentioned five points of successful bonding it can be said that amongst
them all the fourth point – commitment is the most requisite and plays a very crucial
role in building of a strong relationship between the buyer and the seller. Lack of
14
16. commitment between the parties will result in a major set-back to their
association.Thus, commitment should work as a major factor in the creation of a model
that relatesrelational exchanges to the service marketing. Apart from that, the
foundation of commitment is faith which is created by the third phase as discussed
above. Therefore, the next paragraphs will discuss about the trust and commitment.
Trust
Trust can be referred to as customer or organization’s faith that its requirements can be
satisfied by the help and collaboration of the other party (Anderson and Weitz, 1989).
Trust is prevalent only when either party has a sense of confidence and faith in the
working and methodologies of the other party(Morgan and Hunt, 1994). Talking in
terms of social psychology a general opinion states that trust comprises of two essential
factors: trust in the partner’s honesty and trust in the partner’s benevolence. The faith
that the other party will keep to its words is what is meant by honesty in the partner.
Benevolence in the partner is the faith that the partner is embroiled in the company’s
benefit and will not be doing actions that are unfavourable of adverse to the company’s
welfare(Geyskens and Steenkamp, 1995). However a difference between affective and
calculative commitment reveals that trust which includes honesty as well as
benevolence has an optimistic effect on affective commitment (Anderson and Narus,
1990; Anderson and Weitz, 1989; Morgan and Hunt, 1994; Geyskens and Steenkamp,
1995). But calculative commitment is pessimistically affected by trust (Geyskens and
Steenkamp, 1995). Thus it is evident that if partners in an association have faith in each
other; there is a greater emotional bonding between them thereby strengthening the
customer- service provider relationship.
Commitment
The importance of commitment in customer- service provider relationship has been
discussed above. Scanzoni (1979) has referred commitment as the highest degree of
15
17. interdependence of the two partners. A collaboration and mutual interdependence has
been accepted to provide appreciable returns and positive growth for the partners; this
has been accepted by various researchers and marketing economists world-wide. There
is mutual benefit: while the manufacturers can achieve improved product growths,
increased margins and better shares for their company in the market, distributors
receive greater market entrenchment and higher customer contentment. The fabrication
of commitment results from industrial/organizational psychology and is considered as
an indication to carry on activities that support a sense of relation building with a
business partner (Fehr, 1988). Commitment is very often referred to a conspicuous or
inconspicuous state of relational support between exchange partners (Dwyer et al.,
1987). As a result it is seen as a source to obtain positive outcomes between the parties
beneficial to both of them; so they try to develop and maintain this key factor in their
relationship (Morgan and Hunt, 1994). Commitment is often mentioned as a factor that
is very much required in the formation of a long-term association or as a probable
influential response (Kumar et al., 1995). Therefore, commitment is a psychological
aspect of human brain which is responsible for developing an attitude of association
formation and perspective growth plans by mutual association.
From this part, it is obviously to see that the relationship marketing is a useful tool to
get service recovery. A success relationship marketing will build strong links between
exchange partners. While how to know the result of relationship marketing? How can
people know the recovery strategy is success or not?
Brand Equity in service
For above questions, the answer can be found in brand equity. Brand equity means the
influential effect of brand knowledge on customers and their reactions to the
promotions of the brand (Kotler, 2009). Brand equity is crucial because of its benefits
in information productivity, cost effectiveness, lesser purchasing risk involvement,
16
18. powerful demonstration, and so on. However strong brand equity is related to the
behavioral outcomes such as the customer’s brand loyalty, identification, the service
oriented commitments, and the connectivity (Keller, 2008). So, if the brand equity of
any organization is stronger, the service oriented strategies will work positively.
The research over brand equity has two main approaches: finance oriented and
consumer oriented. This essay is based on the consumer-based brand equity which is
quite important for the industry and the organizations which are service oriented
(Berry, 2000). The main aspect is all about measuring the differential effect of a brand,
and it actually depicts the overall brand equity.
According to the brand equity can be measured in three ways - the firm level (Chu
and Hean, 2006), the product level (Ailawadi et al, 2003) and consumer level (Keller,
1993). In this essay the author discuss about the consumer level (loyalty) in the below.
Loyalty
The loyalty of customer is related to the behavior of the customer towards the services
of the organization so that he/she buys the product or services repeatedly (Andreassen
& Lindestad). The consumer who feels happy by using once the products and services
of the company, buys them again and again and also promotes the positivity through
mouth publicity (A. Selnes & Hansen)
If we take e-business for instance: The most desirable goal is to achieve the loyalty of
customers. The monetary necessity requires the increment in customer loyalty,
because there is required a long time to drive the customer for repeat purchase and
win his confidence in the product or services (Gefen, Reichheld & Schefter, 2000).
Customer loyalty is the most important part in the organizations which are service
driven (Ganesh, 2000; Jones & Sasser, Kim & Son, 2009; Mithas, Reichheld & Teal,
17
19. 1996) and may be a crucial determinant of profit in comparison with market share and
position (Heskett, 1994). Loyal customers are quite interested to appreciate the
concerned vendor to other friends who might be perspective customers, increasing the
customer base by incurring almost negligible cost in marketing (Heskett et al., 1994;
Reichheld & Sasser,). Customer loyalty is very helpful in the survival of e-businesses
because mouth publicity and support from the customers who are loyal is even more
beneficial than offline promotions (Reichheld & Schefter, 2000).
Overall, there are many ways to measure a brand. Some measurements approaches are
at the firm level, some at the product level, and still others are at the consumer level.
If some of them or all of them show a increasing trend of brand equity, it means the
service recovery strategy get the success.
Conclusion
Customer service is the most crucial part of the marketing mix that was defined for
products and services industry. Customer service always creates value for the product
which is very important. In the world of consumerism, the customers are very much
concerned about the after sales service apart from buying the products only. The basic
character of service is of being intangible and there are instances where things go
wrong so there should be extra care regarding the issue. The apology and
compensation strategy should be used as soon as possible when the service failure
occurs. What is more important, some long-term strategies such as relationship
marketing should be paid more attention. In addition, although the service is
intangible, the result of service recovery strategies still can be measured by other
aspects, for example, the brand equity, especially the customer loyalty of it.
At the moment, the competition between different companies already transfer form
the single product competition to a more comprehensive one which includes the
service quality. So it is very important to value the service which is always be ignored
18
20. before.
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