Week 5 Notes
Week 5 Notes CONSCI 3910 - 0010
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CONSCI 3910 - 0010
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This 2 page Class Notes was uploaded by Ian Adams on Thursday February 11, 2016. The Class Notes belongs to CONSCI 3910 - 0010 at Ohio State University taught by Jay Kandampully in Fall 2015. Since its upload, it has received 53 views. For similar materials see Consumer Service and Satisfaction in Behavioral Sciences at Ohio State University.
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Date Created: 02/11/16
CONSCI 3910 Week 5 Notes Service Quality Why is service quality more important than product quality? o Intangible nature of services means it cannot be returned o Quality of services cannot be judged prior to purchase o Have to pay or give up something before you receive the full service How is service quality different from product quality? o Quality of service depends on the individual person receiving it, not the manufacturer o Challenging to assess the quality of services from company to company o Without customers, services cannot be produced o Customer starts manufacturing process in services Moments of Truth o These occur whenever anyone comes in contact with any aspect of the organization (i.e. in person, over the phone, online, etc.) o All firms have control over these moments, unlike climate conditions, natural calamities, illness, etc. o A customer comes into contact with some aspect of the organization and gets an impression of the service. The impression can be either positive or negative o Firms must focus on managing those moments of truth that are critical to the customer o Example: Scandinavian Airlines Bankrupt late 70s 50,000 moments of truth from the time the customer buys ticket to when they leave with their bags Became “Airline of the Year” in 1984 after improving moment of truth management Moments of truth in air travel: flight booking, checkin, airport facilities, on board services, on board meals, baggage services, check out, etc. Deming’s Chain Reaction o If you improve quality and reduce number of defects, the firm will prosper o Improve quality—>decrease costs—>improve productivity—>increase market share—>stay in business—>increase employment—>improve return on investment o This chain reaction theory does NOT hold true in the service industry since you need to increase cost in order to increase quality Customer Perceptions of Quality o Grönroos’ Model Technical quality: What is delivered. Relates to things we receive, such as food in a restaurant. Technical quality is expected by customers, so you can’t compete using technical quality CONSCI 3910 Week 5 Notes Functional quality: How it is delivered to customer. Much more important than what is delivered to customers. How customers feel is more important than what they receive. How companies differentiate themselves Need to focus on managing the functional quality since the technical quality is expected by the customer o Lehtinen’s Model Process quality: Judged during the service. The actual steps that are carried out during the service (such as the action of getting your hair cut) Output quality: Judged after the service (how you feel about haircut after it’s completed) Need to focus on managing the process quality since the output quality is already expected by the customer o Service quality gap Quality gap that happens when can’t meet customer expectations. The bigger the gap, the bigger the dissatisfaction Expected service: What I want Perceived service: What I get Expectations much greater today than the past Face challenges if you don’t control expected service. Firms must provide specific details on what the customer will receive if they choose you (Don’t come to a 3 star hotel with a 5 star expectation) Use clearly stated service guarantees to limit customer expectations Most to least important in service organizations o Reliability o Responsiveness o Assurance o Empathy o Tangibles
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