Post on 03-Jun-2018
transcript
8/12/2019 Service Recovery, Managing Demand, Services Management
1/29
Customer Feedback and
Service Recovery
8/12/2019 Service Recovery, Managing Demand, Services Management
2/29
Customer Response Categories To A
Service Failure
Service Encounter
is Dissatisfactory
Take some form
of public action
Take some form
of private action
Take no action
Complain to the
service firm
Complain to a
third party
Take legal actionto seek redress
Defect (switch
provider)
Negative word-of-
mouth
Any one or a combination of
these responses is possible
8/12/2019 Service Recovery, Managing Demand, Services Management
3/29
Understanding Customer response
to a service failure
Why do customers complain? (obtain restitution or
compensation; vent their anger; help to improve the
service; altruistic reasons)
What proportion of unhappy customers complain?
(5 to 10% or still lower)
Why dont unhappy customers complain? (no time
to waste; useless activity as no one is concerned &
willing to resolve it; afraid of the confrontation)
8/12/2019 Service Recovery, Managing Demand, Services Management
4/29
Service paradox
Customers who experience a service failure,which has then been resolvedto their full
satisfaction are more likely to make future
purchases than customers who have no
problemin the first place
Only good for oneservice failure
8/12/2019 Service Recovery, Managing Demand, Services Management
5/29
Service Guarantees
Its a PROMISEthat if a service delivery failstomeet predefined standards, the customer is
entitled to compensation,
Replacement, refund or credit
Primary function --to lowerthe perceived risks
associated with purchase
Also make it easier for the customer to complaint
8/12/2019 Service Recovery, Managing Demand, Services Management
6/29
Types of Service Guarantees
Single attribute-specific guaranteeone key
service attribute is covered(Eg: any of 3 specified
pizzas to be served in 10 mins of ordering on working
days between 10 am to 2pm. If delivery is late, the
pizza is free)
Multiattribute-specific guaranteea few important
service attributes are covered (Eg: A friendly
efficient check in ; A clean & comfortable room where
everything works)
8/12/2019 Service Recovery, Managing Demand, Services Management
7/29
Types of Service Guarantees
Full-satisfaction guaranteeall serviceaspects covered with no exceptions (Eg: If
you are not completely satisfied with any item
you buy from us , return it & we will refund the
full purchase price)
8/12/2019 Service Recovery, Managing Demand, Services Management
8/29
The Hampton Inn 100% Satisfaction
Guarantee
What are the benefits of
such a guarantee?
Are there any downsides?
8/12/2019 Service Recovery, Managing Demand, Services Management
9/29
System Through Customer Feedback
Tools
A. Total Market Surveys
Measures satisfaction with allmajor consumer
service processes & products
Objectiveattaining indicator of satisfaction of entire
firm
B. Transactional Surveys
Conducted after customers have completed a specific
transaction
Feedback can tell firm why customers are happy or
unhappy with the process
8/12/2019 Service Recovery, Managing Demand, Services Management
10/29
System Through Customer Feedback
Tools
C. Service Feedback Cards
Process involves giving customers a feed
back card after completion of process &
inviting them to return it by mail
Not an exact method due to mood swings of the
customer
8/12/2019 Service Recovery, Managing Demand, Services Management
11/29
System through customer feedback
tools
D. Mystery Shopping
Method often used to determine the whether
frontline staff is displaying desired behavior
Eg: Mystery caller survey to assess whether
courteousness is followed, up-selling & cross-
selling is done, friendly greetings made to the
caller & phone lifted up in certain no. of rings
8/12/2019 Service Recovery, Managing Demand, Services Management
12/29
Balancing Demand
and Capacity
8/12/2019 Service Recovery, Managing Demand, Services Management
13/29
Relating Demand to Capacity:
Four Key Concepts
Excess demand: too much demand relative to capacity
at a given time
Excess capacity: too much capacity relative to demand
at a given time Maximum capacity: upper limit to a firms ability to
meet demand at a given time
Optimum capacity: point beyond which service quality
declines as more customers are serviced
8/12/2019 Service Recovery, Managing Demand, Services Management
14/29
Capacity
VOLUME DEMANDED
TIME CYCLE 1 TIME CYCLE 2
Maximum AvailableCapacity
Optimum Capacity(Demand and Supply
Well Balanced
Low Utilization(May Send Bad Signals)
Demand exceeds capacity(business is lost)
Demand exceedsoptimum capacity(quality declines)
Excess capacity(wasted resources)
CAPACITY UTILIZED
8/12/2019 Service Recovery, Managing Demand, Services Management
15/29
Alternative Demand Management
Strategies
Take no action
let customers sort it out
Reduce demand
higher prices
Increase demand
lower prices
communication, including promotional incentives
vary product features to increase desirability
more convenient delivery times and places
8/12/2019 Service Recovery, Managing Demand, Services Management
16/29
Alternative Demand Management
Strategies .
Developing off peak pricing & promotionscheme
Creation of reservation system
8/12/2019 Service Recovery, Managing Demand, Services Management
17/29
Managing Capacity or Controlling
Supply
Using parttime
employees
Increasingefficiencyof existingpersonnel
Sharingcapacity
with others
Investingin
expansionplans
8/12/2019 Service Recovery, Managing Demand, Services Management
18/29
Alternative Queuing Configurations
Single line, single server, single stage
Single line, single servers at sequential stages
Parallel lines to multiple servers
Designated lines to designated servers
Single line to multiple servers (snake)
Take a number (single or multiple servers)28
2921
20
24
23
30 25
3126
2732
8/12/2019 Service Recovery, Managing Demand, Services Management
19/29
Targets for a Hotel by Segment and
Time Period
Out of commission for renovation
Executive service
guests
Transient guestsWeekend
package
Groups and conventions
Airline contracts
100%
50%
Week 7(Low Season)
MNights: TuTime
W Th F S Sn
Executive service guests
Transient guests
W/E
package
Groups (no conventions)
Airline contracts
Week 36(High Season)
M Tu W Th F S Sn
Capacity (% rooms)
8/12/2019 Service Recovery, Managing Demand, Services Management
20/29
Types of DemandRising demand
Falling demand
Zero demand
Full demand
Overfull demand
Negative demand
Latent demand
Seasonal demand
8/12/2019 Service Recovery, Managing Demand, Services Management
21/29
Rising Demand
Service offer in growth stage of PLC
Customers are aware of service category &
service brand
More buyers making repeat purchases
Eg: rising demand of cell phones across all
sections
8/12/2019 Service Recovery, Managing Demand, Services Management
22/29
Falling Demand
Due to direct competition, substitute competition,unattractive pricing, poor service delivery
Marketer should analyze the causes & take
corrective measures
Eg: declining popularity of pool parlors, across
Mumbai
8/12/2019 Service Recovery, Managing Demand, Services Management
23/29
Zero Demand
Market may not be having need for a particularservice offer
Various demographic, socio-economic factors
Eg: 1.There may not be any demand for English
language in rural parts of Jharkhand
2. Western Union Money transfer in an area where
there is not much migration & people do not
transfer money
8/12/2019 Service Recovery, Managing Demand, Services Management
24/29
Full Demand
Demand is equal to the supply
Ideal situation for the marketer
Problem arises when a competitor comes out with
an offer
Firms fight for the same pie
Firms then engage into price war with margins
falling
8/12/2019 Service Recovery, Managing Demand, Services Management
25/29
Overfull Demand
Demand outstrips the supply
Marketer is not able to cater to the demand
Implies either there are very few capable players
or large entry barriers
Eg: 1. There is a great demand for LPG supply
2. Till the advent of mobile phones, there was a
huge demand for telephone which the Telecom
dept. was unable to cater3. Berths in Indian railways especially during
summers & any other holiday seasons
8/12/2019 Service Recovery, Managing Demand, Services Management
26/29
Negative Demand
Kind of an anti-demand
Customers would do anything to avoid the service
With increasing media reports about harmful
effects of cosmetic surgery or beauty treatment
surgery, there might be negative demand about
the same
8/12/2019 Service Recovery, Managing Demand, Services Management
27/29
Latent Demand
Demand deep inside the customer
Unquenched as no service satisfies it
Consumer may not be able to articulate his
demand
Eg: good day care centers & crche; FM radio
service
8/12/2019 Service Recovery, Managing Demand, Services Management
28/29
Seasonal or Irregular Demand
Demand for certain services fluctuates withseasons
Peak demand in some seasons, lesser in others
Eg: 1. hotel accommodation in Lonavala during the
weekends
2. easy availability of movie tickets for the
matinee or afternoon show as compared to the
night or evening show
8/12/2019 Service Recovery, Managing Demand, Services Management
29/29
THANK YOU