Scribd Logo
Upload

Welcome to Scribd!

  • 70 views

    Service Recovery

    Uploaded by

    deep_mumbai
    This document discusses service guarantees in an educational setting. It proposes a sample service guarantee for a business class that would refund a student's tuition if they were dissatisfied with the instructor's performance. The guarantee outlines specific terms, including that the student must be in good standing, the guarantee only covers the instructor's performance and not external factors, and does not apply to final grades. It also specifies the process for a student to invoke the guarantee. The goal of the guarantee is to ensure student satisfaction with the instructor's teaching performance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPS, PDF, TXT or read online from Scribd

    Service Recovery

    Uploaded by

    deep_mumbai
    70 views23 pages
    This document discusses service guarantees in an educational setting. It proposes a sample service guarantee for a business class that would refund a student's tuition if they were dissatisfied with the instructor's performance. The guarantee outlines specific terms, including that the student must be in good standing, the guarantee only covers the instructor's performance and not external factors, and does not apply to final grades. It also specifies the process for a student to invoke the guarantee. The goal of the guarantee is to ensure student satisfaction with the instructor's teaching performance.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPS, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses service guarantees in an educational setting. It proposes a sample service guarantee for a business class that would refund a student's tuition if they were dissatisfied with the instructor's performance. The guarantee outlines specific terms, including that the student must be in good standing, the guarantee only covers the instructor's performance and not external factors, and does not apply to final grades. It also specifies the process for a student to invoke the guarantee. The goal of the guarantee is to ensure student satisfaction with the instructor's teaching performance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPS, PDF, TXT or read online from Scribd
    Download as pps, pdf, or txt
    70 views23 pages

    Service Recovery

    Uploaded by

    deep_mumbai
    This document discusses service guarantees in an educational setting. It proposes a sample service guarantee for a business class that would refund a student's tuition if they were dissatisfied with the instructor's performance. The guarantee outlines specific terms, including that the student must be in good standing, the guarantee only covers the instructor's performance and not external factors, and does not apply to final grades. It also specifies the process for a student to invoke the guarantee. The goal of the guarantee is to ensure student satisfaction with the instructor's teaching performance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPS, PDF, TXT or read online from Scribd
    Download as pps, pdf, or txt
    of 23

    SERVICE

    RECOVERY
    Service Guarantees
    • What should be guaranteed?
    • Is a service guarantee appropriate in an educational setting?
    • How should such a guarantee be written?
    • How should such a guarantee would be administered and paid out?
    • What is appropriate compensation?
    • What are the advantages of providing a guarantee to students?
    • What are the advantages of providing a guarantee to the instructor?
    • What are the advantages of providing a guarantee to the university?
    • What are the disadvantages of providing such a guarantee?
    • Why is it that universities typically do not offer such guarantees?
    Unconditional Guarantee

    • Guarantee a customer can invoke for any reason


    Bugs Burger Bug Killers Guarantee

    • You don’t owe one penny until all pests on your


    premise have been eradicated
    • If a guest spots a pest on your premises, the
    exterminator will pay for the guest’s meal or
    room, send a letter of apology and pay for a future
    meal or stay.
    Good Service Guarantee
    • The guarantee shd. Be unconditional
    • The guarantee shd. Be easy to understand and
    easy to communicate.
    • The guarantee shd. Be easy to invoke
    • Customers shd. Find it easy and quick to collect
    payments
    • The compensation given to customers shd. Be
    meaningful to them.
    Service recovery program

    • Develop a service recovery program


    • Encourage customers to complain
    • Data from service failures needs to be used to
    reduce service problems
    • Firm needs to allocate resources to the service
    recovery process.
    Impact of Service Failure and Recovery

    • Service Recovery – Actions taken by an


    organization in response to a service failure.
    • Failures occur –
    – Service was unavailable when it was promised
    – It may be delivered late or too slowly
    – The outcome may be incorrect or poorly executed
    – Employees may be rude or uncaring
    Resolving customer problems effectively

    • Has a strong impact on


    – Customer satisfaction
    – Loyalty
    – Bottom-line performance
    Recovery Paradox

    • Companies should plan to disappoint customers so


    that they can recover and gain even greater loyalty
    from them as a result.
    • More complex than it may seem –
    – It is expensive to fix mistakes
    – It is absurd to encourage service failures
    – Only under very highest levels of customers’ service
    recovery ratings increased satisfaction and loyalty was
    observed.
    Recovery Paradox
    Customer Complaint Actions
    Following Service Failure
    Types of Complainers
    • Passives
    – Gp of customers least likely to take any action
    • Voicers
    – Actively complain to the service providers, but are less likely to
    spread negative WOM and third party complaining.
    • Irates
    – Likely to engage in negative WOM and switch providers. Less
    active in complaining to provider and unlikely to complain to
    third-party.
    • Activists
    – Above avg. tendency to complain on all dimensions
    When they complain what do customers
    expect?
    • Customers expect fair treatment
    – Outcome fairness
    – Procedural fairness
    – Interactional fairness
    Outcome fairness

    • Outcomes or compensation, that match the level


    of their dissatisfaction.
    – Actual monetary compensation
    – An apology
    – Future free services
    – Reduced charges
    – Repairs
    – Replacements
    Procedural fairness

    • Along with fair compensation, customers expect


    fairness in terms of policies, rules and timeliness
    of complaint process.
    – Easy access to complaint process
    – Things to be handled quickly
    – First-contact person solvable
    – Adaptability in procedures
    Interaction fairness

    • Customers expect to be treated


    – Politely
    – With care and
    – Honesty
    Service Recovery Strategies

    • Welcome and Encourage Complaints


    • Act Quickly
    • Treat Customers Fairly
    • Learn from
    • Recovery Experiences
    • Learn from Lost Customers
    • Fail Safe the Service
    Causes Behind Service Switching

    Pricing
    • High Price Response to Service Failure
    • Price Increases • Negative Response
    • Unfair Pricing • No Response
    • Deceptive Pricing • Reluctant Response
    Inconvenience
    • Location/Hours Competition
    • Wait for Appointment Service • Found Better Service
    • Wait for Service Switching Ethical Problems
    Core Service Failure Behavior • Cheat
    • Service Mistakes • Hard Sell
    • Billing Errors • Unsafe
    • Service Catastrophe • Conflict of Interest
    Involuntary Switching
    Service Encounter Failures • Customer Moved
    • Uncaring • Provider Closed
    • Impolite
    • Unresponsive
    • Unknowledgeable
    Source: Sue Keaveney, “Customer Switching Behavior in Service Industries: An Exploratory Study,” Journal of Marketing, April, 1995, pp. 71-82.
    Service Guarantees

    • guarantee = an assurance of the fulfillment of a


    condition (Webster’s Dictionary)

    • for products, guarantee often done in the form of a


    warranty

    • services are often not guaranteed


    – cannot return the service
    – service experience is intangible
    (so what do you guarantee?)
    Characteristics of an Effective Service
    Guarantee
    • Unconditional
    • The guarantee should make its promise unconditionally - no strings
    attached.
    • Meaningful
    • It should guarantee elements of the service that are important to the
    customer.
    • The payout should cover fully the customer's dissatisfaction.
    • Easy to Understand and Communicate
    • For customers - they need to understand what to expect.
    • For employees - they need to understand what to do.
    • Easy to Invoke and Collect
    • There should not be a lot of hoops or red tape in the way of accessing or
    collecting on the guarantee.
    Source: Christopher W.L. Hart, “The Power of Unconditional Guarantees,” Harvard Business Review, July-August, 1988, pp. 54-62.
    Service Guarantees

    • Does everyone need a guarantee?

    • Reasons companies do NOT offer guarantees:


    – guarantee would be at odds with company’s image
    – too many uncontrollable external variables
    – fears of cheating by customers
    – costs of the guarantee are too high
    Service Guarantees

    • Service guarantees work for companies who are


    already customer-focused
    • Effective guarantees can be BIG deals - they put
    the company at risk in the eyes of the customer
    • Customers should be involved in the design of
    service guarantees
    • The guarantee should be so stunning that it comes
    as a surprise -- a WOW!! factor
    • “It’s the icing on the cake, not the cake”
    S ervice G uarantee
    B usiness 327 – S ervices M arketing
    D r. D wayne D . G remler, I nstructor
    F all S emester 1999
    If you are dissatisfied with the instructor’s performance you are entitled to receive your money back.

    -- T erms --
    1. The student must be a “good customer” and not abuse the product.

    2. This guarantee covers the instructor's performance. The instructor is not responsible for occurrences outside his
    control. Such events include, but are not limited to, student illness, personal emergencies, or financial hardship that
    may require the student to withdraw from the class or the university. Likewise, the activities of other students are
    not guaranteed.

    3. This guarantee does not apply to the student’s satisfaction with his/her final course grade.

    4. A student invoking the guarantee will receive his/her earned grade and credit for the course.

    5. The guarantee may be invoked by submitting, in person, a written request to the instructor or to C. Randall Byers
    (Chair, Department of Business). Students who wish to remain anonymous to the instructor may do so.

    Offer void after February 1, 2000

    You might also like