2. Service enterprises are organizations that
facilitate the production and distribution of
goods, support other firms in meeting their
goals, and add value to our personal lives.
James Fitzsimmons

3.  Each customer contact is called a moment of
truth.
 You have the ability to either satisfy or
dissatisfy them when you contact them.
 A service recovery is satisfying a previously
dissatisfied customer and making them a
loyal customer.
6-3

4.  Reliability: Perform promised service
dependably and accurately. Example: receive
mail at same time each day.
 Responsiveness: Willingness to help
customers promptly. Example: avoid keeping
customers waiting for no apparent reason.
6-4

5.  Assurance: Ability to convey trust and
confidence. Example: being polite and
showing respect for customer.
 Empathy: Ability to be approachable.
Example: being a good listener.
 Tangibles: Physical facilities and facilitating
goods. Example: cleanliness.
6-5

6. Word of Personal Past
mouth needs experience
Service Quality Expected Service Quality Assessment
Dimensions service 1. Expectations exceeded
Reliability ES<PS (Quality surprise)
Responsiveness 2. Expectations met
Assurance Perceived ES~PS (Satisfactory quality)
Empathy service 3. Expectations not met
Tangibles ES>PS (Unacceptable quality)
6-6

7. Customer Customer Satisfaction Customer
GAP 5
Perceptions Expectations
Managing the Customer / Understanding
Evidence Marketing Research the Customer
Communication
GAP 4 GAP 1
Management
Service
Perceptions
Delivery of Customer
Expectations
Conformance
Design GAP 2
GAP 3
Conformance Service Design
Service
Standards
6-7

8. Service
Organization
Control Efficiency
versus versus
autonomy satisfaction
Contact
Customer
Personnel Perceived
control
Note: Perceived control determines if a relationship or encounter
is established between contact personnel and customer.
8-8

10.  Foundations of Continuous Improvement
- Customer Satisfaction
- Management by Facts
- Respect for People
 Plan-Do-Check-Act (PDCA) Cycle

11. Process Improvement
Step Definition
Define Define project objectives, internal and
external customers
Measure Measure current level of performance
Analyze Determine causes of current problems
Improve Identify how the process can be improved
to eliminate the problems
Control Develop mechanisms for controlling the
improved process
7-11

12.  Step 1: Define the project
 Step 2: Study the current situation
 Step 3: Analyze the potential causes
 Step 4: Implement a solution
 Step 5: Check the results
 Step 6: Standardize the improvement
 Step 7: Establish future plans

13. Satisfaction Mirror
More More Familiarity with
Repeat Customer Needs and
Purchases Ways of Meeting
Them
Stronger Tendency Greater Opportunity
to Complain about for Recovery
Service Errors from Errors
Higher Customer
Higher Employee
Satisfaction
Satisfaction
Lower Costs Higher Productivity
Better Results Improved Quality
of Service
8-13

14. Service Profit Chain
Internal External
Operating strategy and Service
concept Target market
service delivery system
Loyalty
Customers Revenue
Satisfaction growth
Productivity
& Service
Employees Satisfaction Loyalty
Output value
Capability quality
Profitability
Service
quality
Customer orientation/quality emphasis Quality & productivity Attractive Value Lifetime value
Allow decision-making latitude improvements yield Service designed Retention
Selection and development higher service quality & delivered to Repeat Business
Rewards and recognition and lower cost meet targeted Referrals
Information and communication customers’ needs
Provide support systems Solicit customer
Foster teamwork feedback
8-14

15. MANAGING MANAGING
DEMAND CAPACITY
Partitioning Increasing
demand customer
Developing participation
Sharing
complementary
capacity
services
Establishing
Scheduling
price
Developing Cross- work shifts
incentives
reservation training
systems employees
Promoting Creating
off-peak adjustable
Using
demand capacity
part-time
employees
Yield
management 11-15

16. • Full-scale launch
• Post-launch review
Full Launch Enablers Development
• Formulation
of new services
objective / strategy
People
• Idea generation
• Service design
and screening
and testing
• Concept
• Process and system
development and
design and testing Product testing
• Marketing program
design and testing
• Personnel training Technology Systems
• Service testing and
pilot run
• Test marketing Tools
Design Analysis
• Business analysis
• Project authorization