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QUESTIONS:

1. How do customers evaluate the professionalism of their service staff? Explain.


Customers evaluate professionalism based on:
• Communication skills: Clear, polite, and respectful interactions.
• Appearance: Neat and appropriate dress reflecting the company’s image.
• Knowledge: Ability to provide accurate information and solutions.
• Responsiveness: Quick, proactive support for customer needs.
• Empathy: Understanding and addressing customers’ emotions.

Example: A hotel guest may judge professionalism if staff greet them warmly, provide clear
check-in instructions, and respond promptly to room service requests.

2. What should businesses do to increase customer connections? Explain, give examples.


Businessess should:
 Personalization: Use customer data to tailor offers or communication.
 Engagement: Active presence on social media and prompt responses to inquiries.
 Loyalty programs: Offer rewards for repeat business.
 Exceptional service: Exceed expectations consistently.

Example: Starbucks personalizes drink recommendations in its app based on customer


purchase history, fostering stronger connections.

3. How do businesses use servqual?


Businesses use SERVQUAL (Service Quality Model) to measure the gap between customer
expectations and perceptions of service. It assesses:
- Reliability:
§ Providing service as promised
§ Dependability in handling customers’ service problems
§ Performing services right the first time
§ Providing services at the promised time
§ Maintaining error-free records
- Assurance:
§ Employees who instill confidence in customers
§ Making customers feel safe in their transactions
§ Employees who are consistently courteous
§ Employees who have the knowledge to answer customer questions
- Tangibles:
§ Modern equipment
§ Visually appealing facilities
§ Employees who have a neat, professional appearance
§ Visually appealing materials associated with the service
- Empathy:
§ Giving customers individual attention
§ Employees who deal with customers in a caring fashion
§ Having the customer’s best interest at heart
§ Employees who understand the needs of their customers
§ Convenient business hours
- Responsiveness:
§ Keeping customers informed as to when services will be performed
§ Prompt service to customers
§ Willingness to help customers
§ Readiness to respond to customers’ requests

4. Level of relationship strategies most use by company?


- There are 4 levels of relationship strategies: financial bonds, social bonds, customization
bonds, and structural bonds.
- Financial bonds is the most use by company because it most popular and easy to apply.
However, it also blocks because it attracts price-sensitive customers.

5. Accommodation services only need customers who are not satisfied with the service
to be refunded 100%. Do you agree? Why?

While a 100% refund policy for dissatisfied customers might sound appealing, it has both
pros and cons. Here’s an analysis:

Reasons to Agree:
 Customer Trust and Loyalty: Offering a full refund demonstrates confidence in your
service quality, building trust and encouraging customers to choose your
accommodation.
 Word of Mouth Marketing: Satisfied customers (even after a refund) are more likely
to share positive experiences or recommend the service because of the fair treatment.
 Competitive Advantage: This policy can set you apart from competitors, especially in
a market where service guarantees are rare.
 Encourages Feedback: It may motivate customers to provide detailed feedback,
allowing you to improve your services.
Reasons to Disagree:
 Risk of Abuse: Customers may take advantage.
 Increased Costs: Impacts revenue, especially with unwarranted complaints.

Balanced Solutions:
 Set clear conditions for refunds.
 Offer alternative incentives such as discounts or coupons.
 Focus on resolving issues on the spot.

6. When do customers become competitors of the company? Give 3 reasons


Customers can become competitors of a company when they leverage their knowledge,
experience, or resources to directly compete. Here are three reasons why this may happen:

1. Dissatisfaction with the Company


Unhappy customers may create their own business to offer a better alternative, addressing
gaps or frustrations they experienced.
- Example: A dissatisfied guest starts a competing hotel offering superior service.

2. Low Entry Barriers in the Industry


Industries with minimal financial, legal, or technical barriers make it easier for customers to
transition into competitors.
- Example: A regular buyer of handmade goods starts their own crafting business.

3. Access to Insider Knowledge


Customers who understand a company’s products, processes, or market demand may use this
knowledge to start a competing business.
- Example: A long-time client of a software company creates a similar app targeting the
same audience.

Fostering loyalty and innovation can help prevent customers from turning into
competitors.

7. How do businesses handle negative customer inquiries and complaints?


 Acknowledge quickly: Respond promptly to reassure the customer.
 Listen actively: Understand their concerns fully.
 Offer solutions: Provide clear and fair resolutions.
 Follow-up: Ensure the customer feels valued after resolution.

Example: A telecom company resolving a billing issue and offering a discount for
inconvenience.

8. What do businesses do to create conditions for employees to build good relationships


with customers?
Businesses should:
 Training: Equip employees with communication and problem-solving skills.
 Incentives: Reward employees for exceptional customer service.
 Empowerment: Allow staff flexibility to make decisions in customers’ favor.

Example: A retail chain might incentivize employees with bonuses for high customer
satisfaction scores.

9. How do businesses handle customer dissatisfaction? What are the steps?


1. Acknowledge the issue: Quickly recognize the problem.
2. Apologize sincerely: Express genuine regret.
3. Analyze: Determine the root cause.
4. Resolve: Offer fair compensation or correction.
5. Follow-up: Ensure the solution satisfies the customer.

Example: An airline compensates a passenger for a delayed flight by rebooking and


providing vouchers.

10. How will businesses introduce new products? Are there any challenges when
businesses apply servqual to improve quality?
Introduction:
 Market Research: Understand customer needs and trends before launching.
 Promotional Campaigns: Use digital ads, social media, and influencer partnerships to
create awareness (e.g., Apple’s product unveil events).
 Free Trials or Samples: Allow customers to experience the product first-hand (e.g.,
software free trials or food samples).
 Exclusive Pre-Launch Offers: Provide discounts or bundles for early adopters.
 Events and Demonstrations: Host launch parties or webinars to engage customers and
answer questions.

Challenges with SERVQUAL:


 Subjectivity: Customer perceptions vary widely.
 Dynamic expectations: Evolving preferences can outpace service changes.
 Implementation costs: Training and adjustments require resources.

11. Who benefits the most from the Relationship Marketing campaign. Why?
- Customer:
 Receipt of greater value
 Confidence benefits: trust, confidence in provider, reduced anxiety
 Social benefits: familiarity, social support, personal relationships
 Special treatment benefits: social deals, price breaks

- Firm:
 Economic benefits: increased revenues, reduced mkt and administrative costs, regular
revenue stream
 Customer behavior benefits: strong word-of-mouth endorsements, customer voluntary
performance, social benefits to other customers, mentor to other customers
 Human resource management benefits: easier jobs for employees, social benefits for
employees, employee retention

12. In what situations should I end a relationship with a customer?


1. Abusive behavior: Verbal abuse or disrespect towards employees.
2. Unreasonable demands: Constant unrealistic expectations or demands.
3. Contract violations: Repeated breach of terms and conditions.
4. Poor fit: The customer’s needs don’t align with your product or service.
5. Negative impact on others: Disruptive behavior affecting other customers.
6. Non-profitable: Serving the customer is costing more than the revenue.
7. Customer wants to leave: They express a desire to end the relationship.

13. What are the differences between service encounter cascade, journey map, and
blueprint?

Aspect Service Encounter Customer Journey Map Service Blueprint


Cascade
Scope Focuses on sequential Maps the entire customer Focuses on the
customer interactions journey processes behind service
delivery
Perspective Customer-facing Customer-centric, Both customer-facing
touchpoints focusing on emotions and internal processes

Purpose Optimize specific Improve overall customer Desing or refine service


encounters experience operations
Key Components Touchpoints in sequence Journey stages, emotions, Front-stage, back-stage,
and pain points and support systems

Complexity Simpler and linear High-level and emotional Detailed and operational

14. What is the relationship marketing? Why it is usually cheaper for the firm?
- Relationship marketing is a philosophy of doing business, a strategic orientation, that
focuses on keeping current customers and improving relationships with them.
- Because it keeps a current customer costs less than attracting a new one.

15. How many types of encounter? List and discuss the differences between the types.
- There are 3 types: remote encounters, phone encounters, and face-to-face encounters.
- Differences:
1. Remote Encounters: Digital interactions (e.g., email, chat, video).
- Pros: Convenient, global reach.
- Cons: Limited personal connection.

2. Phone Encounters: Voice-only communication.


- Pros: Personal and immediate.
- Cons: Lacks visual cues.
3. Face-to-Face Encounters: In-person interactions.
- Pros: Full communication (verbal and non-verbal).
- Cons: Time and location constraints.

16. Describe the four common themes identified as sources of customer


satisfaction/dissatisfaction in memorable price encounters.

- Recovery: employee response to service delivery system failure


- Adaptability: employee response to customer needs and requests
- Coping: employee response to problem customers
- Spontaneity: unprompted and unsolicited employee actions and attitudes

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