Fueling the Customer Relationship Discuss the grounds for, and appropriateness of, a customer relationship marketing and management strategy in the context of Eric’s business. Eric’s case is an interesting one and is probably indicative of many in the same position as he. His business and marketplace have some of the characteristics that make it suitable …
Recent research found in a study of hairdressers that customer loyalty was predominantly to the individual hairdresser rather than the firm. The key determinants of a successful customer relationship are: Trust in Service Provider The essential aspect for any organization is customer’s trust on its brand, it plays a vital role in building customer relations …
The second strategy used for customer retention is to build switching barriers (or costs) into the service product. There are two types of switching barriers (costs): Economic Barriers – representing financial disincentives to defecting such as termination penalties and service contracts and Psychological Barriers – where valued personal relationships are broken with a change of …
Relationship marketing refers to using marketing tools to attract potential customers, establish communication, and create and develop relationships. Relationship management moves the customers up the loyalty ladder by maintaining and enhancing relationships and retaining customers. Relationship Marketing Defined ‘…the union of customer service, quality and marketing.’ (Bateson) ‘…the dual focus of getting and …
Q1: What factors contributed to Maree’s sense of annoyance and frustration in ‘The customer’s right’ case study? It should be noted that Maree was frustrated initially from a service failure (or at least a perceived service failure), however the clerk’s attempt at recovery only made the situation worse. The factors that contributed to her annoyance …
From a procedural perspective we offer ten guidelines for effective complaint resolution: Act fast to rectify the problem and restore the customer’s sense of satisfaction Admit mistakes but don’t be defensive Show that you understand the problem from the customer’s point of view Don’t argue with customers Acknowledge the customer’s feelings Give customers the benefit …
Major courses of action open to an unsatisfied customer The options for an unsatisfied customer are: seek redress directly from firm take legal action complain to business, private or governmental agencies stop buying product or brand or boycott service provider warn friends Essentially these are: Do nothing Complain in some form to the service provider …
Article Overview In this article we focus on the issue of how to deal with customer complaints effectively and productively, to the end of recovering successfully from situations in which a customer has expressed dissatisfaction with their service encounter or some part of it. In this way customers, their loyalty and positive word-of-mouth, are retained. …
Subliminal advertising is also called as subliminal priming. It’s a short and quick message is sent to people in form of text, image, video or as audio. This message can’t be noticed by conscious mind but only by the unconscious mind. This subliminal advertising only works in certain situations when the brand that is advertised …
What is Satisfaction “Satisfaction is an affective or emotional state following an evaluation of the consumption experience”. Dictionary definitions describe satisfaction as ‘fulfilment’ or to ‘be content or pleased’. Achieving mere satisfaction is not enough, the aim is to delight a customer if loyalty is to be achieved Satisfaction and loyalty Figure 4.3 depicts the …
How would you characterize customer (Lee’s) expectations and perceptions, and what factors have contributed to the formation of these? Lee expected to save time from a convenient and cheaper bill paying system being offered by her bank. She is likely to have formed those expectations from at least two sources. i) her previous experience with …
‘Service quality’ means different things to different people. Parasuraman et al define it as: “… consumers’ judgement (across multiple service encounters) about the firms (or brand) overall excellence or superiority… it is a form of attitude, related but not equivalent to satisfaction” Dimensions of satisfaction and service quality tangibles reliability responsiveness assurance empathy Comparing Service …
Researchers have found there is a relationship between the degree of satisfaction achieved, and the level of customer retention or loyalty. Merely achieving customer satisfaction, however, is not enough. Benefits of satisfying customers There are many other benefits of satisfying or delighting customers. Among them are: Encourages repeat patronage and loyalty Enhances/promotes positive word of …
A model of the consumer decision making process for services as opposed to goods is provided (Fig. 3) and discussed in the article. Consumer decision making for services high in experience and credence properties (as distinct from search properties common to most fast-moving packaged consumer goods) is generally characterized by a higher sense of perceived …
Role and Script Theories serve to inform and guide behavior in service contexts. Role Theory It provides a framework for understanding and defining the behavior that customers expect and feel comfortable with in different service contexts. This, in turn, bears directly on the recruitment, training and development of service personnel, especially those in high customer-contact …
This mini case focuses on the cultural differences in decision making in a service setting. What might be important cultural considerations for Con to consider in thinking about this opportunity? Con should compare the cultural characteristics of the Greeks (his primary market now) and the Vietnamese (his potential market) to see if there are any …
Control Theory Because of the sense of apprehension or risk that many service customers feel, it is important that they be given a sense of control over the service experience or encounter to counterbalance this. In this way they will feel confident about what they are experiencing, and the likelihood of post-purchase dissonance will be …
Distinguish between back-stage and front-stage service operations Types of Service operations The distinction between frontstage and back-stage service operations in a service organization is best illustrated with reference to what is visible and invisible to the customer. This distinction may or may not be clear-cut. For instance, a restaurant may be designed in such a …
Q: What are the implications of having a customer involved in the service process and ‘factory’? A: Having a customer involved in the service process means that the interpersonal and communication skills of customer contact personnel must be well developed. Furthermore, their personal appearance, manner and demeanor must be such that the customer is in …
Mini case solution: The Antiquarian Bookshop This mini case (antiquarian bookshop) is intended to provide a means of exploring in an applied way many of the key concepts explained and discussed in this chapter. Q1. What is being processed in the bookshop, and what are important managerial implications of understanding this? Students are expected to …
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