Service Quality a. Reliability--ability to perform the promised service dependably and accurately. b.Tangibles--appearance of physical facilities, equipment and personnel. c.Responsiveness--willingness to help customers and to provide prompt service d.Assurance--knowledge and courtesy of employees and their ability to inspire trust and confidence. e.Empathy--caring individualized attention the form provides its customers
The questions Tangibles: –X has modern-looking equipment –Xs physical facilities are visually appealing –Xs employees are neat-appearing –Materials associated with the service, such as statements, are visually appealing.
Reliability When X promises to do something by a certain time, it does so. When you have a problem, X shows a sincere interest in solving it. X performs the service right the first time. X provides its services at the time it promises to do so. X insists on error free records.
Responsiveness Employees of X tell you exactly when services will be performed. Employees of X give you prompt service. Employees of X are always willing to help you. Employees of X are never too busy to respond to your requests.
Assurance The behavior of employees of X instills confidence in customers. You feel safe in your transactions with X. Employees of X are consistently courteous with you. Employees of X have the knowledge to answer your questions.
Empathy X gives you personal attentions. X has operating hours convenient to all its customers. X has employees who give you personal attention. X has your best interests at heart. Employees of X understand your specific needs.
But, what about employees Internal Service Quality: –Workplace design –Job design –Employee selection & development –Employee rewards & recognition –Tools for serving customers
Leads to… Employee Retention –Avg. tenure of employees Employee Productivity –Sales per employee
Value Perceived Benefits/Costs Wal-mart vs. small town America Without value, no sales, no traffic
Customer Satisfaction Current Defects Dont aim for 100% its impossible. In fact, its not feasible! –http://www.theacsi.org/http://www.theacsi.org/ Marks hypothesis
Customer Loyalty Retention Repeat Business Referrals
Results Revenue Growth Profitability –How to measure profitability: –http://www133.americanexpress.com/osbn/tool /ratios/financialratio.asphttp://www133.americanexpress.com/osbn/tool /ratios/financialratio.asp –Thomson Analytics –Yahoo financials Students should realize that a balance sheet without rations is like a house without a roof its not complete and I wouldnt want to live in it on a cloudy day.