Launch your PollEV session: Text : UWMBUSINESS to 37607

1. Launch your PollEV session: Text: UWMBUSINESS to 37607 *Text LEAVE at the end of class* Alternate #: (747) 444-3548

3. The Service-Product Continuum Continuum

4. The Gaps Model

5. The Knowledge Gap: Knowing What Customers Want How are we doing? The Knowledge Gap

6. The Building Blocks of Service Quality R – A – T – E - R r r A E T

7. Marsha kessler’s misadventures in Maine Front desk service: Ok some of the time; Sometimes not so much

9. The Building Blocks of Service Quality R – A – T – E - R r r A E T

11. “To put up with” 9 H I G H 9 LOW 2 • The Zone of Tolerance is an important marketing metric to evaluate how well firms perform on the five service quality dimensions “Zone” = the difference between what the customer really wants and what he or she will TOLERATE before going elsewhere 7

12. Lou’s local diner

13. T E A the Zone of Tolerance r r

15. T E A the Zone of Tolerance r r

17. T E A the Zone of Tolerance r r

19. T E A the Zone of Tolerance r r

20. Read p.414, Bring a copy

22. The Gaps Model

23. 2. The Standards Gap This refers to the difference between the firm’s perceptions of customer expectations and service standards it sets.

24. Marsha kessler’s misadventures in Maine

25. “Customer-centric Standards” • This refers to the difference between the firm’s perceptions of customer expectations and service standards it sets. • Through training: The employees should be involved in setting the goals. • Commitment to service quality: service providers take their cues from management.

26. 8am – 5pm?? 10am – 2pm

27. The Gaps Model

28. 3. The Delivery Gap This is the difference between the firm’s service standards and the actual service it provides to customers. This is a critical gap

30. 3. The Delivery Gap Empowerment: Delivery gaps can be reduced when employees are empowered: empowerment means allowing employees to make decisions about how service gets provided to customers Support and incentives: The gap can also be reduced by providing support (emotional, instrumental, managerial) and incentives, which are rewards to employees for excellent service Use of technology

31. The Gaps Model

32. 4. The Communications Gap This refers to the difference between the actual service provided to customers and the service that the firm’s promotion program (advertising, promotions, personal selling) promises Don’t promise more than you can deliver Follow-through on the service delivery

33. Arizona State U “Customer Rage Study” • A satisfied customer eventually tells 10 – 16 people • A dissatisfied customer tells about 28 people!

34. Warren Buffett: It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently

35. When there’s been a Service failure

37. Service Recovery • Recover the customer. Effective service recovery efforts can increase customer satisfaction, purchase intentions, and positive word-of-mouth • Effective service recovery entails: • listening to the customer, • providing a fair solution, and • resolving the problem quickly

38. Your questions on services: • What do you do with customers who are blatantly wrong? After all, everyone in service has always heard that “the customer is always right”

41. Amazon • jeff@amazon.com

42. Key concepts/ terms to know • Service, customer service • The Service-Product continuum • How service marketing differs from product marketing • The Gaps Model: service gap, • The Knowledge Gap - service quality, voice-of-customer program (VOC), zone of tolerance • the Standards Gap – training, commitment • The Delivery Gap - empowerment, emotional and instrumental support, technology • The Communications Gap • Service recovery – what? How? • Distributive fairness • Procedural fairness

44. “CUES”

45. The Building Blocks of Service Quality R – A – T – E - R r r A E T

47. The Second ‘P’: Strategic Pricing Methods Ref: Text, chapter 15

48. Exchange “PRODUCT” (Value) Seller Buyer Pricing strategy VALUE