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ShapingtheMarketOfferings2
DesigningandManagingServices13LearningIssuesforChapterThirteenHowdowedefineandclassifyservices,andhowdotheydifferfromgoods?Whatarethenewservicerealities?Howcanweachieveexcellenceinservicemarketing?Howcanweimproveservicequality?Howcangoodsmarketersimprovecustomer-supportservices?3ChapterOutlineAscompaniesfinditincreasinglyhardertodifferentiatetheirphysicalproducts,theyturntoservicedifferentiation.Manyfindsignificantprofitabilityindeliveringsuperiorservice,whetherthatmeanson-timedelivery,betterandfasteransweringofinquiries,orquickerresolutionofcomplaints.Topserviceprovidersknowtheseadvantageswellandalsohowtocreatememorablecustomerexperiences.4TheNatureofServices:AsianPerspectiveOneofthemegatrendsofrecentyearshasbeenthephenomenalgrowthofservices.InAsia,theservicesectormakesupalargeportionofvariouscountries’GDP,varyingfrom40to80percent.ThispercentagehasbeenincreasingovertheyearsinmostAsiancountries.5TheNatureofServices:AsianPerspectiveSeveralreasonsaccountforthis—risinglevelsofincomeandeducation,anagingpopulationrequiringmoreservices,andmorewomeninthelaborforce,thusrequiringmorehomeandrecreationalservices.Hence,thereisagrowinginterestinthespecialchallengesandopportunitiesinthemarketingofservicesinAsia.6ServiceIndustriesareEverywhereThegovernmentsector,withitscourts,employmentservices,hospitals,loanagencies,militaryservices,policeandfiredepartments,postalservice,regulatoryagencies,andschools,isintheservicebusiness.Theprivatenonprofitsector,withitsmuseums,charities,churches,colleges,foundations,andhospitals,isintheservicebusiness.Agoodpartofthebusinesssector,withitsairlines,banks,hotels,insurancecompanies,lawfirms,managementconsultingfirms,medicalpractices,motion-picturecompanies,plumbing-repaircompanies,andrealestatefirms,isintheservicebusiness.7ServiceIndustriesareEverywhereManyworkersinthemanufacturingsector,suchascomputeroperators,accountants,andlegalstaff,arereallyserviceproviders.Infact,theymakeupa“servicefactory”providingservicestothe“goodsfactory.”Andthoseintheretailsector,suchascashiers,clerks,salespeople,andcustomerservicerepresentatives,arealsoprovidingaservice.8DefinitionofaServiceAserviceisanyactorperformancethatonepartycanoffertoanotherthatisessentiallyintangibleanddoesnotresultintheownershipofanything.Itsproductionmayormaynotbetiedtoaphysicalproduct.9DifferentiatingThroughServicesManufacturers,distributors,andretailerscanprovidevalue-addedservicesorsimplyexcellentcustomerservicetodifferentiatethemselves.SeeexampleofLexus.10DifferentiatingThroughServices—LexusDespiteLexus’sparent,Toyota,beinginvolvedinamajorrecall,Lexushasareputationforofferingsuperiorservice,includingallowingitscustomerstomakeserviceappointmentsonlineandselectingtheirserviceadvisor.11Lexus—Tooperateeffectivelyinthelucrativebuthighlycompetitiveluxuryautomobilemarket,Lexusiscommittedtomakingsureitscustomershaveanothercarattheirdisposaliftheirshappenstobeintheshop.WhenLexushadtorecalltheRX330itgaveitsinconveniencedcustomersafreeiPod.Whencustomersbalkedatthepriceandvalueofearlyscheduledmaintenance,Lexusimplementedanewsystemthatcuttheaverageappointmenttimeinhalf.Thevalue-addedservicesthatLexusprovidesincludepayingforsomepostwarrantyrepairstokeeployalcustomershappyandsettingupalivechatroomonitsWebsitetohandlequeriesfrompossiblebuyers,complaintsfromcustomers,andevenaddressautoserviceissues.Lexusalsolaunchedtheabilityforcustomerstomakeserviceappointmentsonline.Availablethroughitsdealers,theserviceallowscustomerstochooseanappointmentdateandtimeontheircomputerandselecttheirserviceadvisorthroughphotos.CategoriesofServiceMixPuretangiblegood—Atangiblegoodsuchassoap,toothpaste,orsalt.Noservicesaccompanytheproduct.Tangiblegoodwithaccompanyingservices—Atangiblegoodaccompaniedbyoneormoreservices.Typically,themoretechnologicallyadvancedtheproduct,thegreatertheneedforhigh-qualitysupportingservices.Hybrid—Anofferingconsistingofequalpartsofgoodsandservices.Peoplepatronizerestaurantsforbothfoodandservice.12CategoriesofServiceMixMajorservicewithaccompanyingminorgoodsandservices—Amajorservicealongwithadditionalservicesorsupportinggoods.Forexample,airlinepassengersbuytransportation.Thetripincludessometangibles,suchasfoodanddrinks,aticketstubandanairlinemagazine.Theservicerequiresacapital-intensivegood—anairplane—foritsrealization,buttheprimaryitemisaservice.Pureservice—Primarilyaservice,suchasbaby-sitting,physiotherapy,andmassage.13DistinctionsAboutServicesServicesvaryonwhethertheyareequipment-based(automatedcarwashes,vendingmachines)orpeople-based(windowwashing,accountingservices).People-basedservicesvarybywhethertheyareprovidedbyunskilled,skilled,orprofessionalworkers.Servicecompaniescanchooseamongdifferentprocessestodelivertheirservice.Restaurantshavedevelopedsuchdifferentformatsascafeteria-style,fast-food,buffet,andtableservice.Someservicesrequiretheclient’spresenceandsomedonot.Brainsurgeryinvolvestheclient’spresence.14DistinctionsAboutServicesServicequalitymayvaryespeciallyinpeople-basedservicessuchascleaningservicesbecauseofdifferencesinskills.15DistinctionsAboutServicesServicesdifferonwhethertheymeetapersonalneed(personalservices)orabusinessneed(businessservices).Serviceproviderstypicallydevelopdifferentmarketingprogramsforpersonalandbusinessmarkets.Serviceprovidersdifferintheirobjectives(profitornonprofit)andownership(privateorpublic).oforganizations.Themarketingprogramsofaprivateinvestorhospitalwilldifferfromthoseofaprivatecharityhospitaloraprofit-makingcosmeticsurgeryhospital.16CustomerEvaluationofServicesCustomerscannotjudgethetechnicalqualityofsomeservicesevenaftertheyhavereceivedthem.Goodshighinsearchqualities—characteristicsthebuyercanevaluatebeforepurchase.Inthemiddlearegoodsandserviceshighinexperiencequalities—characteristicsthebuyercanevaluateafterpurchase.Goodsandserviceshighincredencequalities—characteristicsthebuyernormallyfindshardtoevaluateevenafterconsumptionandthatcomprisemostservices.17Figure13.1:ContinuumofEvaluationforDifferentTypesofProducts18MarketingImplicationsBecauseservicesaregenerallyhighinexperienceandcredencequalities,thereismoreriskinpurchase.Thishasseveralconsequences:Serviceconsumersgenerallyrelyonwordofmouthratherthanadvertising.Serviceconsumersrelyheavilyonprice,personnel,andphysicalcuestojudgequality.Serviceconsumersarehighlyloyaltoserviceprovidersthatsatisfythem.Becauseoftheswitchingcostsinvolved,muchconsumerinertiacanexist.Itcanbechallengingtoenticeacustomerawayfromacompetitor.19DistinctiveCharacteristicsofServicesServiceshavefourdistinctivecharacteristicsthatgreatlyaffectthedesignofmarketingprograms:IntangibilityInseparabilityVariabilityPerishability20IntangibilityUnlikephysicalproducts,servicescannotbeseen,tasted,felt,heard,orsmelledbeforetheyarebought.Toreduceuncertainty,buyerswilllookforevidenceofquality.Theywilldrawinferencesaboutqualityfromtheplace,people,equipment,communicationmaterial,symbols,andpricethattheysee.21IntangibilityTherefore,theserviceprovider’staskisto“managetheevidence,”to“tangibilizetheintangible.”Servicecompaniescantrytodemonstratetheirservicequalitythroughphysicalevidenceandpresentation.22Supposeaboutiquehotelwantstopositionitselfasamodernhotel.Itcouldmakethispositioningstrategytangiblethroughanumberofmarketingtools:Place—Theexteriorandinteriorshouldhavecleanlines.Thelayoutofthedesksandthetrafficflowshouldbeplannedcarefully.People—Personnelshouldbefriendlyandapproachable.Theyshouldanticipateguests’needsandshowgenuineconcernforthem.Equipment—Thefurnitureandinteriordecorshouldhavethetraditionallookandfeelbutalsobefunctional.23Communicationmaterial—Printedmaterials—textandphotos—shouldsuggestefficiencyandspeed.Symbols—Thenameandsymbolshouldsuggestpersonalizedservice.Price—Thehotelcouldchargeahigherpriceforthepersonalizedserviceitgivestoitsguests.24Supposeaboutiquehotelwantstopositionitselfasamodernhotel.Itcouldmakethispositioningstrategytangiblethroughanumberofmarketingtools:HotelMumeHotelMumeinKyoto,Japan,isauniqueboutiquehotelwithantiquefurnishingsandexemplaryservicewhereitsstaffanticipatescustomers’needs.25IntangibilityServicemarketersmustbeabletotransformintangibleservicesintoconcretebenefits.Becausethereisnophysicalproduct,theserviceprovider’sfacilities—itsprimaryandsecondarysignage,environmentaldesignandreceptionarea,employeeapparel,collateralmaterial,andsoon—areespeciallyimportant.Allaspectsoftheservicedeliveryprocesscanbebranded.26TheShangri-LaHotelinHongKongfocusesitstrainingprogramsoninculcatingAsianvaluesandcustoms.27Table13.1:DimensionsofBrandExperience28IntangibilityServiceproviderssuchasmedicaldoctorsusebrandelementssuchaswheretheyreceivedtheirmedicaleducationfromtomaketheirserviceandbenefitsmoretangible.29InseparabilityServicesaretypicallyproducedandconsumedsimultaneously.Becausetheclientisalsopresentastheserviceisproduced,provider-clientinteractionisaspecialfeatureofservicemarketing.Severalstrategiesexistforgettingaroundthislimitation:WorkwithlargergroupsWorkfasterTrainmoreserviceproviders30VariabilityBecausetheydependonwhoprovidesthemandwhenandwheretheyareprovided,servicesarehighlyvariable.Somedoctorshaveanexcellentbedsidemanner;othersarelesspatientwiththeirpatients.Servicebuyersareawareofthisvariabilityandoftentalktoothersbeforeselectingaserviceprovider.
31Therearethreestepsservicefirmscantaketoincreasequalitycontrol:Investingoodhiringandtrainingprocedures.Standardizetheservice-performanceprocessthroughouttheorganization.Prepareaserviceblueprintthatdepictseventsandprocessesinaflowchart,withtheobjectiveofrecognizingpotentialfailpoints.SeeFigure13.2.Monitorcustomersatisfaction.32Figure13.2:BlueprintforOvernightHotelStay33PerishabilityServicescannotbestored.perishabilitycanbeaproblemwhendemandfluctuates.
Publictransportationcompanieshavetoownmuchmoreequipmentbecauseofrush-hourdemandthanifdemandwereeventhroughouttheday.Severalstrategiescanproduceabettermatchbetweensupplyanddemand.34Demand-SideStrategiesDifferentialpricingwillshiftsomedemandfrompeaktooff-peakperiods.Examplesincludeweekdaymoviepricesandweekenddiscountpricesforcarrentals.
Nonpeakdemandcanbecultivated.TheNightSafariinSingaporeprovidestouristswithanight-timeattraction,whilemostplacesarecompetingduringtheday.Complementaryservicescanbedevelopedtoprovidealternativestowaitingcustomers,suchascocktailloungesinrestaurantsandautomatictellermachinesinbanks.Reservationsystemsareawaytomanagethedemandlevel.Airlines,hotels,andphysiciansemploythemextensively.35Supply-sideStrategiesPart-timeemployeescanbehiredtoservepeakdemand.Collegesaddpart-timeteacherswhenenrolmentgoesup,andrestaurantscallinpart-timeserverswhenneeded.Peak-timeefficiencyroutinescanbeintroduced.Employeesperformonlyessentialtasksduringpeakperiods.Nursesassistphysiciansduringbusyperiods.Increasedconsumerparticipationcanbeencouragedtofreeserviceproviders’time.Consumersfillouttheirownmedicalrecordsorbagtheirowngroceries.36Supply-sideStrategiesSharedservicescanbedeveloped.Severalhospitalscansharemedicalequipmentpurchases.Facilitiesforfutureexpansioncanbeagoodinvestment.Anamusementparkbuyssurroundinglandforlaterdevelopment.37TheNewServiceRealitiesAtonetime,servicefirmslaggedbehindmanufacturingfirmsintheiruseofmarketingbecausetheyweresmall,orprofessionalbusinessesthatdidnotusemarketing,orfacedlargedemandorlittlecompetition.Thishaschanged.Someofthemostskilledmarketersarenowservicefirms.Example:SingaporeAirlines.38SingaporeAirlines:ExcellenceinService39SingaporeAirlines—SingaporeAirlines(SIA)isconsistentlyrecognizedastheworld’s“best”airline—itwinssomanyawards,ithastoupdateitsWebsitemonthlytokeepuptodate—inlargepartduetoitsstellarholisticmarketing.Famousforpamperingpassengers,SIAcontinuallystrivestocreatea“woweffect”andsurpasscustomers’expectations.Itwasthefirsttolaunchindividualvideoscreensatairplaneseats.Thankstothefirst-of-its-kind$1millionsimulatorSIAbuilttomimictheairpressureandhumidityinsideaplane,thecarrierfoundthattastebudschangeintheairandthat,amongotherthings,itneededtocutbackonspicesinitsfood.SIAplacesahighvalueontraining;its“TransformingCustomerService(TCS)”programincludesstaffinfivekeyoperationalareas:cabincrew,engineering,groundservices,flightoperations,andsalessupport.TheTCScultureisalsoembeddedinallmanagementtraining,company-wide.Itappliesa40-30-30ruleinitsholisticapproachtopeople,processes,andproducts:40percentofresourcesgototrainingandinvigoratingstaff,30percenttoreviewingprocessandprocedures,and30percenttocreatingnewproductandserviceideas.WithitsinnovativelydesignedA380andBoeing787Dreamlinerplanes,SIAsetnewstandardsofcomfortinallclassesofservice,fromeightprivatemini-roomsinfirstclasstowiderseats,ACpowersupplies,andUSBportsincoach.SingaporeAirlines:ExcellenceinServiceSingaporeAirlinesgoestoextraordinarylengthstoensurethateveryaspectofthepassengerexperienceexceedsexpectations.40AShiftingCustomerRelationship:AsianPerspectiveNotallAsiancompanies,however,haveinvestedinprovidingsuperiorservice,atleastnotacrosstheregionandnottoallcustomers.JapanisoftenheldupastheiconofserviceinAsia.Incontrast,Chinaisaninfantintheservicequalitygame.Mostfrontlinestaffarenotawareofandnotexposedtotheconceptofqualityservice.InIndonesia,Malaysia,thePhilippines,andThailand,servicequalityisgenerallyaconceptfamiliaronlytothoseworkinginthetourismindustry.AlthoughtheymaynotdemonstratethesameprofessionalfinesseinhandlingcustomersastheJapanese,theymakeupforitbytheirenthusiasm.41InmostAsiancountries,servicequalityisafamiliarconcept.Japan,thePhilippines,andThailandarewell-knownfortheirexemplaryservices.InsomepartsofChina,front-linestaffhaveyettobetrainedinprovidinggoodservice.42AShiftingCustomerRelationship:AsianPerspectiveCustomerEmpowermentCustomersarebecomingmoresophisticatedaboutbuyingproduct-supportservicesandarepressingfor“unbundledservices.”Theymaydesireseparatepricesforeachserviceelementandtherighttoselecttheelementstheywant.Customersalsoincreasinglydislikehavingtodealwithamultitudeofserviceprovidershandlingdifferenttypesofequipment.Somethird-partyserviceorganizationsnowserviceagreaterrangeofequipment.43CustomerEmpowermentMostimportantly,theInternethasempoweredcustomersbylettingthemventtheirrageaboutbadservice—orrewardgoodservice—andsendtheircommentsaroundtheworldwiththeclickofamouse.44CustomerEmpowermentMostcompaniesrespondquickly.Ifemployeesseeacustomerreportaproblemonablog,theygetintouchandofferhelp.Clear,helpfulemailrepliestocustomers’queriescanbeeffectivetoo.
Moreimportantthansimplyrespondingtoadisgruntledcustomer,however,ispreventingdissatisfactionfromoccurringinthefuture.
Solvingacustomer’sproblemquicklyandeasilygoesalongwaytowardwinninglong-termloyalcustomers.45CustomerCoproductionTherealityisthatcustomersdonotmerelypurchaseanduseaservice;theyplayanactiveroleinitsdelivery.Theirwordsandactionsaffectthequalityoftheirserviceexperiencesandthoseofothers,andtheproductivityoffrontlineemployees.Customersoftenfeeltheyderivemorevalue,andfeelastrongerconnectiontotheserviceprovider,iftheyareactivelyinvolvedintheserviceprocess.Preventingservicefailuresiscrucial,sincerecoveryisalwayschallenging.Oneofthebiggestproblemsisattribution—customersoftenfeelthefirmisatfaultor,evenifnot,thatitisstillresponsibleforrightinganywrongs.46StrategiesforPreventingServiceFailuresRedesignprocessesandredefinecustomerrolestosimplifyserviceencounters.Incorporatetherighttechnologytoaidemployeesandcustomers.Createhigh-performancecustomersbyenhancingtheirroleclarity,motivation,andability.Encourage“customercitizenship”socustomershelpcustomers.47SatisfyingEmployeesasWellasCustomersExcellentservicecompaniesknowthatpositiveemployeeattitudeswillpromotestrongercustomerloyalty.Instillingastrongcustomerorientationinemployeescanalsoincreasetheirjobsatisfactionandcommitment,especiallyiftheyhavehighcustomercontact.Employeesthriveincustomer-contactpositionswhentheyhaveaninternaldrivetopampercustomers,accuratelyreadcustomerneeds,developapersonalrelationshipwithcustomers,anddeliverqualityservicetosolvecustomers’problems.48SatisfyingEmployeesasWellasCustomersGiventheimportanceofpositiveemployeeattitudestocustomersatisfaction,servicecompaniesmustattractthebestemployeestheycanfind.Theyneedtomarketacareerratherthanjustajob.Theymustdesignasoundtrainingprogramandprovidesupportandrewardsforgoodperformance.Theycanusetheintranet,internalnewsletters,dailyreminders,andemployeeroundtablestoreinforcecustomer-centredattitudes.Finally,theymustauditemployeejobsatisfactionregularly.49MarketingExcellenceMarketingexcellencewithservicesrequiresexcellenceinthreebroadareas:external,internal,andinteractivemarketing(seeFigure13.3).Externalmarketingdescribesthenormalworkofpreparing,pricing,distributing,andpromotingtheservicetocustomers.Internalmarketingdescribestrainingandmotivatingemployeestoservecustomerswell.Themostimportantcontributionthemarketingdepartmentcanmakeisarguablytobe“exceptionallycleveringettingeveryoneelseintheorganizationtopracticemarketing.”50MarketingExcellenceInteractivemarketingdescribestheemployees’skillinservingtheclient.Clientsjudgeservicenotonlybyitstechnicalquality(Wasthesurgerysuccessful?),butalsobyitsfunctionalquality(Didthesurgeonshowconcernandinspireconfidence?).51Figure13.3:ThreeTypesofMarketinginServiceIndustries52InteractiveMarketingIninteractivemarketing,teamworkisoftenthekey,anddelegatingauthoritytofrontlineemployeescanallowforgreaterserviceflexibilityandadaptabilitythroughbetterproblemsolving,closeremployeecooperation,andmoreefficientknowledgetransfer.Example:TheMandarinOrientalHotelwhereautonomyisextendedtoitsfrontlineemployees.Itgivessignificantempowermenttoitsjunioremployeestocreatelegendaryqualityexperiencesforitsguests.Therefore,thestaffithiresmustbeproblem-solversatheart.53TechnologyandServiceDeliveryTechnologyhasgreatpowertomakeserviceworkersmoreproductive.However,companiesmustavoidpushingproductivitysohardthattheyreduceperceivedquality.Somemethodsleadtotoomuchstandardization.Serviceprovidersmustdeliver“high-touch”andnotjust“high-tech.”54High-touchAspectsofAsianServiceThe“high-touch”aspectofservicedeliveryisparticularlyevidentinAsia,whereservicestylestendtobemorepeople-orientedthanintheWest.InAsia,evenconsumersoflow-costservicesexpectarelativelyhighlevelofservice.MostAsiancountriesarecharacterizedbyrelativelylargepowerdistancesthatreflectsocialhierarchies.55High-touchAspectsofAsianServiceChineseculture,forexample,focusesoncourteousritualsthatencourageindividualstomaintainthehierarchicalsocialorder.Insuchcultures,thelowersocialstatusofserviceemployeesrequiresthemtoprovidecustomerswithhighlevelsofservice.56High-touchAspectsofAsianService57Asianshavehighexpectationsofpersonalizedservice.Japaneseexpectautomobilevendorstoremindthemwhenserviceisdue,picktheirvehicle,andreturnitafterservicing.ImportanceofInterpersonalRelationshipsinServiceAsiansplacegreateremphasisonthequalityofinterpersonalrelationshipandinteractionbetweenemployeeandcustomer.Westerncustomersmaypreferefficientdeliveryevenifthatdeliveryisimpersonal.However,toAsians,thepersonalcharacteristicsoftheserviceproviderareimportant.58ImportanceofInterpersonalRelationshipsinServiceAsiancustomersfinditawkwardtobeservedbyanolderpersonunlessthepersonistheowner.Efficiencyandtime-savingsarelessimportantthanpersonalattention.Asianconsumers’expectationsofpersonalizedservicearethushigherthanWesternconsumers59Targetedatthe“Me”generation,theMercedesMestoreoffersalifestyleexperienceofdigitalinteraction,café,bar,andrestauranttoappealtotheyoungertargetgroup.CustomizationandRitualizationinAsianServiceCompaniesCustomizationratherthanstandardizationisthekeyinAsianservicesmarketing.WithinAsia,whatconstitutespersonalizedservicealsovariesbycultureandthecompetitivestateofthemarket.AseconddimensionofAsianservicepertainstoserviceritualization.Asiancustomersvaluetheritualisticaspectsofservice.Theseincludethemovement,pose,andlookoftheservicepersonnel.60BestPracticesofTopServiceCompaniesInachievingmarketingexcellencewiththeircustomers,well-managedservicecompaniesshareastrategicconcept,ahistoryoftop-managementcommitmenttoquality,highstandards,selfservicetechnologies,andsystemsformonitoringserviceperformanceandcustomercomplaints.61StrategicConceptTopservicecompaniesare“customerobsessed.”Theyhaveaclearsenseoftheirtargetcustomersandtheirneedsandhavedevelopedadistinctivestrategyforsatisfyingtheseneeds.62BumrungradInternationalHospitalBangkokisoneoftheworld’spremierdestinationsforhealthtourism.LeadingthepackisBumrungradInternationalHospital.Bumrungradmeans“careforthepeople.”ItdistinguishesitselffromotherThaihospitalsbyhiringnotonlyexperiencedforeigndoctorsbutalsoforeignmanagementexpertise.ThehospitalofferscomparablequalitytootherpremierAsianhospitalsbutatafractionofthecost.Itnowservesoveramillionpatientsannually,withsome400,000beingforeignersfromtheU.S.,Britain,andJapan.63Top-managementCommitmentCompaniessuchasSingaporeAirlines,Giordano,Marriott,andDisneyhaveathoroughcommitmenttoservicequality.Theirmanagementslooknotonlyatfinancialperformanceonamonthlybasis,butalsoatserviceperformance.EachMcDonald’soutletiscontinuallyassessedonitsconformancetoQSCV:quality,service,cleanliness,andvalue.64HighStandardsThebestserviceproviderssethighservice-qualitystandards.Thestandardsmustbesetappropriatelyhigh.A98percentaccuracystandardmaysoundgood,butitwouldresultinFedExlosing64,000packagesaday!Onecandistinguishbetweencompaniesoffering“merelygood”serviceandthoseoffering“breakthrough”service,aimedatbeing100percentdefect-free.65ExcellenceinAsianAirportsAsianairportssuchasSingaporeChangiAirportareconsistentlythebestairportsintheworld.Theyareknownfortheirsecurityandefficientimmigrationprocessing.Theyalsoofferashoppinghub,andcinemaandmassageservicesforpassengerstoenjoywhilewaitingfortheirflights.66ProfitTiersFirmshavedecidedtoraisefeesandlowerservicetothosecustomerswhobarelypaytheirwayandtopamperbigspenderstoretaintheirpatronageaslongaspossible.Customersinhigh-profittiersgetspecialdiscounts,promotionaloffers,andlotsofspecialserviceCustomersinlower-profittiersmaygetmorefees,stripped-downservice,andvoicemessagestoprocesstheirinquiries.67CautionAboutUsingProfitTiersCompaniesthatprovidedifferentiatedlevelsofservice,however,mustbecarefulaboutclaimingsuperiorservice—thecustomerswhoreceivepoortreatmentwillbad-mouththecompanyandinjureitsreputation.Deliveringservicesthatmaximizebothcustomersatisfactionandcompanyprofitabilitycanbechallenging.68MonitoringSystemsTopfirmsauditserviceperformance,boththeirownandtheircompetitors,onaregularbasis.Theycollectvoiceofthecustomer(VOC)measurementstoprobecustomersatisfiersanddissatisfiers.Theyusecomparisonshopping,ghostshopping,customersurveys,suggestionandcomplaintforms,serviceauditteams,andletterstothepresident.69MonitoringSystemsServicescanbejudgedoncustomerimportance
andcompanyperformance.Importance-performanceanalysis
isusedtoratethevariouselementsoftheservicebundleandidentifywhatactionsarerequired.Table13.2showshowcustomersrated14serviceelements(attributes)ofanautomobiledealer’sservicedepartmentonimportanceandperformance.70Table13.2:CustomerImportanceandPerforma
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