Definition of Service Quality There are a number of different “definitions” as to what is meant by services quality. In its simplest form service quality is a product of the effort that every member of the organization invests in satisfying customers. In its broadest sense service quality is defined as superiority or excellence as perceived by the customer. More especially service quality has been defined as: The delivery of excellent or superior service relative to customer expectations. Quality is behavior – an attitude – that says you will never settle for anything less community, your stockholders or colleagues with whom you work every day. When we want to be effective – delivering good quality to the customer – we must produce services that meet “as much as possible” the needs of the consumer. Quality is providing a better service than the customer expects. One that is commonly us defines services Continue reading
Services Marketing
Consumer Decision Process In Services Marketing
Knowledge of the Buyer In buying decisions many times other people also influence the decision. In services these roles are played by many persons. In purchase of any service six distinct roles are played. They are; Initiator : The person who has a specific need and proposes to buy a service Influencer : The person or group of persons whom the decision maker refers to or who advice the decision maker Gate Keeper : The person or organization or promotional material, which act as filter on the range of services which enter the decision choice Decider : The person who makes the buying decision Buyer : The person makes the actual purchaser User : The actual user. Consumer Decision Making Process in Services Marketing The consumer’s decision to purchase or reject a product or service is the moment of final truth for the marketer. It signifies the marketing strategy has Continue reading
10 Trends identified in the Service Sector in 21st Century
At the beginning of 21st Century, special issues have developed in area of marketing due to drastic changes in business environment and intense competition that has compelled the marketers to change the way of doing business. Marketing is changing and that’s obvious. The focus of marketing has widened from the classic product, price, and place, promotion to incorporate the yield management, customer experience and customization that necessitates marketer to concentrate on issues such as processes, people and consumer insight. Escalating customer’s demands, development of technology, increasing competition, increasing consumerism all have been main causes that led strategic change in marketing. Service sector in post industrial economies is facing unprecedented changes. Service marketing in 21st century is all about achieving return on investment (ROI) and relationship (ROR), retaining customer and increasing customer lifetime value. The changing role of marketing in service sector demands efficient and effective management of customers, channels, markets Continue reading
Management Control in Services Organizations
The type of control which would be suitable for a particular firm depends upon the nature and complexities of its operations. A suitable control system has to be designed to suit the specific requirements of a particular firm. Service organizations are those organizations that provide intangible services. Service organizations include hotels, restaurants, and other lodging and eating establishments; barbershops, beauty parlors and other personal service; repair services; motion picture, television and other amusement and recreation services; legal services; and accounting, engineering, research/development, architecture and other professional service organizations. Characteristics of Service Organizations 1. Absence of Inventory: Services cannot be stored. If the services available today are not sold today, the revenue from these services is lost forever. In addition the resources available for sale in many service organizations are essentially fixed in the short run. A key variable in most service organizations therefore is the extent to which current capacity Continue reading
Service Encounters
From the customer’s point of view, the most vivid impression of service occurs in the service encounters or “Moment Of Truth,” when the customer interacts with the service firm. This is the foundation to “Satisfaction of Service Quality” — it is where the promises are kept or broken. The concept of service encounter was put forth by Richard Norman, taking the metaphor from Bull Fighting. Most services are results of social acts, which take place in direct contact between the customer and the service provider. At this stage the customer realizes the perceived service quality. Every “Moment of Truth” is Important — according to Scandinavian Airlines, each one of their 10 million customers come in contact with 5 employees. Thus the airlines say there 50 million moments of truth — each one is managed well and “They prove they are the BEST”. Encounter Cascade The encounter cascade refers to a Continue reading
Dealing With Customer Complaints
The Customer is always right! There are occasions when the customer is right, however there are also times when the customer is not entirely right or when their behavior in making a complaint is such that they need to be appropriately challenged so that the substantive issue is dealt with. Tactics for Dealing with Customer Complaints When dealing with customer complaints, mangers can use tactics based on a five-category scheme called conflict-handling modes: competing, compromising, collaborating, accommodating and avoiding. Competing: (It has been decided that enough is enough, if the customer sues, you’ll meet them in court) Repeat what you have said Remind them that they can have their goods back Warn the customer that you will not continue the conversation if they become abusive Note what is said (possibly need to use in court) Keep calm yourself and remain professional Recognize when the conversation has gone on long Continue reading