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Customer Service Skills for Success

6th Edition Lucas Solutions Manual


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Chapter 07 - Service Breakdowns and Service Recovery

Chapter 7
Service Breakdowns and Service Recovery

Table of Contents
Teaching Tools ................................................................................................................ 2
Instructor Teaching Tools............................................................................................ 2
Student Learning Tools ............................................................................................... 2
Brief Chapter Outline ....................................................................................................... 3
Chapter Outline and Lecture Notes ................................................................................. 5
Class Activities and Sample Assignments..................................................................... 17
Discussion Opportunities............................................................................................... 20
In the Real World Notes ................................................................................................ 21
Retail/Manufacturing—Coca-Cola ............................................................................. 21
Work It Out Notes .......................................................................................................... 23
Work It Out 7.1—Handling Service Breakdowns ....................................................... 23
Work It Out 7.2—Service Breakdown Examples ....................................................... 23
Work It Out 7.3—Handling the Demandind Customer .............................................. 23
Work It Out 7.4—Dealing with Angry Customers ...................................................... 23
Work It Out 7.5—Responding to Rudeness .............................................................. 23
Work It Out 7.6—Building your Skills ........................................................................ 24
Work It Out 7.7—Focusing on the Customer ............................................................ 24
End-of-Chapter Material Notes ...................................................................................... 25
Key Terms................................................................................................................. 25
Review Questions ..................................................................................................... 25
Collaborative Learning Activity .................................................................................. 28
Face to Face—Handling Service Breakdowns at AAA Landscaping ........................ 29

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Chapter 07 - Service Breakdowns and Service Recovery

Teaching Tools

This book has several tools for both students and instructors to assist in the learning
and development on the topic of customer service. Those tools are listed below:

Instructor Teaching Tools


▪ Instructor’s Manual
▪ PowerPoint Presentations
▪ Asset Map
▪ Test Bank
▪ Customer Service Videos
▪ Sample Syllabi

Student Learning Tools


▪ Customer Service Interactions
▪ Customer Service Videos
▪ Chapter Objectives
▪ Flashcards
▪ Online Quizzes
▪ Practice Tests
▪ Glossary
▪ Spanish Glossary
▪ Worksheets

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Chapter 07 - Service Breakdowns and Service Recovery

Brief Chapter Outline

Learning Outcomes

➢ 7-1: Define what a service breakdown is.


➢ 7-2: Apply knowledge of behavioral styles in difficult customer situations.
➢ 7-3: Recognize different types of difficult customers and effectively deal with them.
➢ 7-4: Use the emotion-reducing model to help keep difficult situations from
escalating.
➢ 7-5: Explain why customers defect.
➢ 7-6: Develop effective strategies for working with internal customers.
➢ 7-7: Identify strategies for preventing customer dissatisfaction and problem solving.
➢ 7-8: Explain the six steps of the problem-solving model.
➢ 7-9: Implement a frontline service recovery strategy and spot roadblocks to service
recovery.
➢ 7-10: Discuss the importance of disaster planning initiatives in the service recovery
process.

I. What is a Service Breakdown?


II. The Role of Behavioral Style
III. Difficult Customers
A. Demanding or Domineering Customers
B. Indecisive Customers
C. Dissatisfied and Angry Customers
D. Rude or Inconsiderate Customers
E. Talkative Customers
IV. Handling Emotions with the Emotion-Reducing Model
V. Reasons for Customer Defection
VI. Working with Internal Customers (Co-workers)
A. Stay Connected
B. Meet all Commitments
C. Don’t Sit on Your Emotions
D. Build a Professional Reputation
E. Adopt a Good Neighbor Policy
VII. Strategies for Preventing Dissatisfaction and Problem Solving
A. Think like the Customer
B. Pamper the Customer
C. Respect the Customer
D. Exceed Expectations
VIII. The Problem-Solving Process

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Chapter 07 - Service Breakdowns and Service Recovery

A. Identify the Problem


B. Compile and Analyze the Data
C. Identify the Alternatives
D. Evaluate the Alternatives
E. Make a Decision
F. Monitor the Results
IX. Implementing a Service Recovery Strategy
A. Apologize, Apologize, and Apologize Again
B. Take Immediate Action
C. Show Compassion
D. Provide Compensation
E. Provide Compensation
F. Conduct Follow-Up
X. Disaster Planning Initiatives in the Service Recovery Process

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Chapter 07 - Service Breakdowns and Service Recovery

Chapter Outline and Lecture Notes

I. What is a Service Breakdowns?

• Service breakdowns occur daily in all types of organizations.


o They happen whenever the product or service delivered fails to meet
customer expectations.
• When a product or service fails to meet what the customer wants or needs,
dissatisfaction and frustration can result.
• Customer expectations can affect how service is delivered and perceived.
• Today’s customers are more discerning and better educated, have access to
more up-to-date and accurate information, and are often more demanding than in
the past.

II. The Role of Behavioral Style

• Behavior style preferences play a major part in how people interact.


o Styles also affect the types of things people want and value.
• The more service providers know about behavioral style preferences, the easier it
becomes to deal with people in a variety of situations and help match their needs
with the products and services the service providers and their organizations can
provide.
• Service providers should keep in mind that everyone possesses one or a
combination of the four following different behavioral styles:
o Rational—prefer one-on-one or small-group interaction, are congenial and
patient, avoid conflict, and dislike calling attention to themselves.
o Inquisitive—rarely volunteer feelings, ask “why” questions, desire facts and
figures, and are formal, task-oriented, conservative, and punctual.
o Decisive—are decisive, directive, task- and goal-focused, confident, and
competitive; seek immediate gratification or results; and talk more than
listen.
o Expressive—are open, laid back, flexible, positive, enthusiastic, and
informal; prefer dealing with people; and easily share feelings and
emotions.
• Because customers can display various types of behavior from time to time,
service providers should carefully observe their behavior and learn about each
style as an indicator of the type of person with whom they are dealing.

III. Difficult Customers

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Chapter 07 - Service Breakdowns and Service Recovery

• Difficult customers are people who challenge a service provider’s ability to


deliver service and who require special skills and patience.
• From time to time, service providers will be called upon to help customers who
can be described in one or more of the following ways:
o Are dissatisfied with the service or products
o Are indecisive or lack knowledge about the product, service, or policies
o Are rude or inconsiderate of others
o Are talkative
o Are internal customers with special requests
o Speak a primary language other than the one spoken by the service
provider
o Are elderly and need extra assistance
o Are young and inexperienced who might need to be guided in making a
good choice
o Have some type of a disability
• A key to successfully serving all types of customers is to treat each person as an
individual.
• If service providers stereotype people, they will likely damage the customer–
provider relationship and might even generate complaints to their supervisor or
legal action against them and their organization based on perceived
discrimination.
• Service providers can deliver successful service through their effective
communication skills, positive attitude, patience, knowledge, service experience,
and willingness to help the customer.

A. Demanding or Domineering Customers

• Demanding or domineering are customers who have definite ideas about


what they want and are unwilling to compromise or accept alternatives.
• Some strategies for effectively handling demanding customers are:
o Be professional.
o Respect the customer.
o Be firm and fair and focus on the customer’s needs.
o Tell the customer what you can do.
• By being thoroughly familiar with the organization’s policies and procedures
and their limits of authority, service providers will be prepared to negotiate
with demanding customers.

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Chapter 07 - Service Breakdowns and Service Recovery

B. Indecisive Customers

• Indecisive customers are people who have difficulty making a decision or


making a selection when given choices of products or services.
• Strategies for dealing with an indecisive person are:
o Be patient.
o Ask open-ended questions.
o Listen actively.
o Suggest other options.
o Guide decision-making.

C. Dissatisfied and Angry Customers

• Dissatisfied customers are people who either do not (or perceive that they
do not) receive promised or quality products and services.
• In order to calm dissatisfied customers and make them, service providers
could try the following strategies:
o Listen with an open mind to try and discover the basis for their anger or
dissatisfaction.
o Remain positive and flexible while showing a willingness to work with
the customer or negotiate.
o Smile, give their name, and offer assistance.
o Be compassionate and empathize without making excuses.
o Ask open-ended questions and verify information.
o Take appropriate action.
• Angry customers are customers who become emotional because either
their needs are not met or they are dissatisfied with the services or products
purchased from an organization.
• Some possible tactics of handling angry customers are:
o Be positive.
o Acknowledge the customer’s feelings or anger.
o Reassure.
o Remain objective.
o Listen actively and determine the cause.
o Reduce frustrations.
o Negotiate a solution.
o Conduct a follow-up.
• Service providers should strive to do the unexpected and provide quality
service to create a memorable customer experience—underpromise and
overdeliver—and do whatever they can (within their authority) to rectify a

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Chapter 07 - Service Breakdowns and Service Recovery

situation in which a customer is dissatisfied with their product or service in


order to ensure customer satisfaction.

D. Rude or Inconsiderate Customers

• Rude or inconsiderate customers are people who seem to take pleasure in


being obstinate and contrary when dealing with service providers and who
seem to have their own agenda without concern for the feelings of others.
• Service providers could try the following strategies to deal with rude or
inconsiderate customers:
o Remain professional.
o Don’t resort to retaliation.

E. Talkative Customers

• Talkative customers are customers exhibiting extroverted behavior who are


very people-oriented.
• The following tips might help when dealing with talkative customers:
o Remain warm and cordial, but focused.
o Ask specific open-ended questions.
o Use closed-ended questions to control.
o Manage the conversation.

IV. Handling Emotions with the Emotion-Reducing Model

• It is important to remember when dealing with people who are behaving


emotionally that they are typically upset with the structure, process, organization
or other factors over which service providers and/or they have no control.
o In such situations, service providers should remain rational and should not
react to customers emotionally.
• Before service providers can get their customer to calm down, listen, and
address the situation, they must first deal with her or his emotional state.
o Once service providers do this, they can proceed to use problem-solving
strategies to assist in solving the problem.
• To help calm the customer down, service providers must send customer-focused
verbal and nonverbal messages.
o Service providers need to demonstrate patience and use positive
communication skills such as properly phrased verbal messages and
questions, effective nonverbal cues, and active listening skills.
• Service providers should remember that a customer generally wants to be

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Chapter 07 - Service Breakdowns and Service Recovery

respected and acknowledged as an individual and as being important.


o As service providers interact with a customer, they can soften the situation
and reduce emotion by providing customer-focused responses.
• The key to helping resolve any service breakdowns is to frame the problem
resolution with customer-focused messages through use of the emotion-
reducing model.
o The model involves five steps—customer-focused message, emotional
issue, customer-focused message, problem solving, and customer-focused
message.

V. Reasons for Customer Defection

• Customer defection occurs when customers take their business to a competitor


because they feel that their needs or wants are not met or if they encounter
breakdown in customer service or poor quality.
• Service providers must be especially careful to identify reasons for customer
defections and remedy potential and actual problems before they negatively
affect customers.
• The following are some of the reasons for customer defection:
o Poor service and complacency
o Inappropriate complaint resolution
o Unmet needs

VI. Working with Internal Customers (Co-workers)

• Service providers have external customers who purchase or use their products or
services.
o In addition to these external customers or organizations, if service providers
also have to deal with internal customers.
• Although interactions with internal customers may not be difficult, they can often
be more sensitive than the dealings with outsiders.
o This is because if someone within the organization becomes irritated or
dissatisfied with the service provider, he or she doesn’t necessarily go
away.
o Instead, he or she might tell co-workers or the supervisor about the
encounter, which can damage one’s reputation and even put one’s standing
in the organization in jeopardy.
• Service providers should extend all the same courtesies to internal customers
that they do to external ones—in some cases, more so.
• Sound internal customer service practices can help to boost employee

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Chapter 07 - Service Breakdowns and Service Recovery

communication and morale while helping to enhance processes and procedures,


reduce costs, increase productivity, and replace interdepartmental competition
with interdepartmental cooperation.

A. Stay Connected

• Since relationships within the organization are so important, service providers


should go out of their way to regularly make contact with internal customers.
• If one knows of a special occasion for a co-worker (e.g., birthday,
anniversary, etc.), one should consider sending a card or an e-card to
congratulate him or her.
• One might describe one’s co-workers as one’s “normal” internal customers,
but one should not forget the importance of one’s relationships with other
organizational employees, such as the cleaning crew, security force etc.

B. Meet all Commitments

• Too often, service providers forget the importance of internal customers.


o Because of familiarity, service providers sometimes become lax and
tend to not give the attention to internal customers that they would give
to external customers.
• To prevent, or at least reduce, the possibility of breakdowns, service
providers should honor all commitments they make to internal customers.
o If something comes up that prevents service providers from fulfilling
their commitment, they should let the customer know of the change in a
timely manner.

C. Don’t Sit on your Emotions

• Some people hold on to anger, frustration, and other negative emotions


rather than getting their feelings out into the open and dealing with them.
o Not only is this potentially damaging to health, for it might cause stress-
related illnesses, but it can also destroy working relationships
• Whenever something goes wrong or one is troubled by something, one
should go to the person and use feedback skills to talk about the situation.
o Failure to do so can result in disgruntled internal customers, damage to
the customer–supplier relationship, and damage to the service
provider’s reputation.

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Chapter 07 - Service Breakdowns and Service Recovery

D. Build a Professional Reputation

• Through one’s words and actions, one should go out of one’s way to let one’s
customer and one’s supervisor know that one has a positive, can-do,
customer-focused attitude.
• Part of projecting a professional image is to regularly demonstrate one’s
commitment to proactive service.
o Service providers should gather information, products, and other tools
before coming into contact with a customer so that they are prepared to
deal with a variety of situations and people.

E. Adopt a Good Neighbor Policy

• Service providers should take a proactive approach to building internal


relationships so that they can head off negative situations.
• Service providers can accomplish this in part by adopting the following work
habits:
o Avoid gatherings of friends and loud conversations in your workplacet.
o Maintain good grooming and hygiene habits.
o Don’t overdo call forwarding.
o Avoid unloading personal problems.
o Avoid office politics and gossip.
o Pitch in to help.
o Be truthful.

VII. Strategies for Preventing Dissatisfaction and Problem Solving

• Strategies for preventing dissatisfaction refer to the techniques service


providers use to prevent a breakdown in needs fulfillment when dealing with
customers.

A. Think like the Customer

• Service providers should research and learn to use interactive


communication techniques.
• Once service providers have mastered the interactive communication
techniques, they should set out to discover what customers want by
observing nonverbal behavior, asking specific questions, and listening to their
comments and responses.

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Chapter 07 - Service Breakdowns and Service Recovery

B. Pamper the Customer

• Service providers do not have to give into a customer’s every whim and
request, but they should certainly attempt to provide the products and
services promised in a timely manner, provide the best quality of service that
they can deliver, and address their concerns quickly and professionally.
• Service providers should make customers feel special and important.

C. Respect the Customer

• To demonstrate customer respect, service providers have to demonstrate


that they care about, listen to and are concerned of their customers and their
well-being.
• When problems arise, service providers can show their respect by actively
listening to their customers and empathizing with them.

D. Exceed Expectations

• Service providers should work hard to understand what the customer wants
and expects.
• Service providers should provide the service faster, better, and more
efficiently than others, and exceed customer expectations.

VIII. The Problem-Solving Process

• To solve a problem, service providers need to first identify the problem and
determine if the problem is one that should be solved.
• Once service providers decide to solve the problem, they follow the six proven
steps to problem solving—the problem-solving model.

A. Identify the Problem

• Before service providers can decide on a course of action, they must first
know the nature and scope of the issue they are facing.
• Service providers should begin their journey into problem solving by
apologizing for any inconvenience they or their organization has caused.
• To learn as much about the issue as one can, service providers should
collect all available documentation or background information.

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Chapter 07 - Service Breakdowns and Service Recovery

B. Compile and Analyze Data

• To be able to effectively determine a course of action, service providers need


as much information as possible and a thorough understanding of what they
are dealing with.
• In gathering data, service providers should also do a quick assessment of
how serious the problem is.
• Once service providers have collected information through questioning and
from other sources, they should spend some time looking over what they
have found.

C. Identify the Alternatives

• Service providers should let the customers know they are willing to work with
them to find an acceptable resolution to the issue.
• Service providers should offer suggestions or viewpoints that the customer
may not see or has overlooked.
• Service providers should be willing to listen to the customer’s suggestions
and to “think outside of the box” for ideas other than the ones that they and
their organization typically use.

D. Evaluate Alternatives

• Once all the facts have been collected, service providers should look at their
alternatives or possible options.
• A little extra time and money spent to resolve an issue could save a customer
and prevent recurring problems later.

E. Make a Decision

• On the basis of questions like “What is the most efficient way to solve this
problem?”, “Which are the most effective options for solving the problem?”,
etc., and any others the service providers wish to use in evaluation, they
should make a decision on what their course of action will be.
o To do this, service providers could ask the customer, “Which option
would you prefer?”
o This simple question puts the customer into the decision-making
position and he or she feels empowered.
o If the customer’s request is reasonable and possible, service providers
should proceed and resolve the issue.

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Chapter 07 - Service Breakdowns and Service Recovery

o If not, service providers should negotiate a different alternative.

F. Monitor the Results

• Once service providers have made the decision, they should monitor the
effect or results.
• Service providers can be monitor the situation with a follow-up call, by asking
if the customer needs anything else when they next see or speak to him or
her, or by sending a written follow-up.

IX. Implementing a Service Recovery Strategy

• The best service providers can hope for when something goes wrong is that they
can identify the cause and remedy it quickly to their customer’s satisfaction.
• The primary purpose of any good service recovery program should be to return
the customer–provider relationship to its normal state.
• Some typical reasons that necessitate service recovery action are
o A service provider lacked adequate knowledge or skills to handle a
situation.
o A customer request or order was not handled properly.
o Attempts to return or exchange an item were hampered by policy or an
uncooperative employee.
o A customer was given the “runaround”, being transferred to various
employees or departments and being required to explain the situation to
each individual.
o The customer was treated unprofessionally or in a rude manner.
• According to a consumer survey by the internationally known training company
AchieveGlobal of Tampa, Florida, customers—regardless of industry, geography,
or product/service—want the service they receive to be:
o Seamless.
o Trustworthy
o Attentive
o Resourceful
• Typically, there are five phases to the service recovery process—apologize,
apologize, and apologize; take immediate action; show compassion; provide
compensation; and conduct follow-up.

A. Apologize, Apologize and Apologize Again

• Showing sincere remorse throughout the recovery cycle is crucial.

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Chapter 07 - Service Breakdowns and Service Recovery

• An apology should come immediately after the discovery of the customer’s


dissatisfaction and should be delivered in person, if possible.

B. Take Immediate Action

• As soon as the customer has identified a problem, service providers must set
about positively resolving it.
• Service providers should avoid saying no without offering service options.
• There may be times when, even though service providers want to give
customers exactly what they want, they will not be able to do so because of
regulations or prohibitions.
o In such cases, it is important to use interpersonal skills to let the
customer know that the service provider is prohibited from fulfilling their
needs.
• In some situations, service providers may want to help a customer but cannot
because their abilities, time constraints, resources, or the customer’s timing
of a request prevent fulfillment.
o In such instances, service providers should show a willingness to assist
and meet the customers’ requests even though they are prevented from
doing so.
• There might be other occasions when service providers or their organization
does not meet a customer’s request even though it is possible to do so.

C. Show Compassion

• To help the customer see that one’s remorse and desire to solve a problem
are genuine, the service provider must demonstrate empathy.
• If service providers disregard customers’ feelings, they may not give the
service providers a chance to help resolve the breakdown.

D. Provide Compensation

• Service providers should prove to customers that they are valuable and that
they are trying to make up for their inconvenience or loss.
o This penance or symbolic self-punishment should be significant enough
that the customer feels that the service provider and his or her
organization have suffered an equal loss.
• Not only must the recovery compensate original loss, it should give additional
value.

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Chapter 07 - Service Breakdowns and Service Recovery

E. Conduct Follow-Up

• The only way to find out whether the service provider was successful in his or
her recovery efforts or whether the customer is truly satisfied is to follow up.
o The preferable methods are face-to-face questioning or a phone call.

X. Disaster Planning Initiatives in the Service Recovery Process

• Hurricanes Katrina and Sandy, the Oklahoma tornadoes of 1999 and 2013, and
other similar natural catastrophes all have one thing in common—they
devastated homes and businesses on a massive scale.
o For organizations that did not have an active disaster preparedness or
contingency plan, the results were dramatic and paralyzing financially and
from an operational standpoint.
• The U.S. Small Business Administration suggests that organizations take at least
the following actions to prepare for potential disaster situations in order to remain
functional or to more effectively recover should a catastrophe strike:
o Create a preparedness program for the business.
o Identify critical business functions and systems.
o Create an emergency communications plan.
o Test preparedness systems regularly.
o Build a disaster preparedness kit.
• As a result of such unthinkable destruction, many organizations have taken
proactive measures to create and rehearse disaster preparedness and
contingency plans.
o They store vital information and data at reinforced offsite facilities in various
geographic regions and via cloud technology.

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Chapter 07 - Service Breakdowns and Service Recovery

Class Activities and Sample Assignments

1. Read chapter seven.(LO 7-1 through 7-10)

2. Ask students to get into groups and discuss a service breakdown they have
experienced. Then, ask them to discuss the method used for service recovery.(LO
7-1 and 7-9)

3. Ask students to use figure 7.8 to develop a specific service recovery process and
options for the following situations: (LO 7-1 and 7-9)
a. For servers at a restaurant: a customer doesn’t like his food.
b. For a cell phone service call center: A customer is disappointed by the number
of dropped calls she has been experiencing.
c. For an office manager: You didn’t order enough supplies, and your co-workers
are upset they don’t have the materials they need to finish their job.
d. For a day care owner: One of your employees told a child to “shut up” and the
parent found out about it and is very upset.
e. For a contractor: You have been very busy and unable to complete a
customer’s two-bathroom remodel on time. The customer is angry because she
expects company and the bathrooms are not complete.

4. This chapter discusses a problem-solving process, a useful tool for not only
customer service but all aspects of life. Present De Bono’s six hats model. The six
hats model is similar to the problem-solving process presented on page 256 but
provides a visual way to go through the process. Provide materials for students to
make hats, one for each color (or, if you have time limitations, you can make them
and provide them to each group). Then, have the students break into groups of six,
making sure each group has each hat represented. Then, ask the students to solve
the problems (from the customer service perspective) listed on page 233 using each
hat. A handout for students which describes each hat follows this section. For more
information about De Bono’s model, visit
http://www.mindtools.com/pages/article/newTED_07.htm (LO 7-7 and 7-8)

5. Ask students to get into groups and discuss the reasons for workplace gossip.
Then, ask them to discuss in what ways workplace gossip can be harmful. Discuss
as a class and make the point that one of the major factors to career success is
providing good internal customer service. (LO 7-6)

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Chapter 07 - Service Breakdowns and Service Recovery

De Bono’s Six Hats

The White Hat calls for information known or needed. “The facts, just
the facts.”
Example: The reservation agent may not have added early check-in to
reservation.

The Green Hat focuses on creativity; the possibilities, alternatives, and


new ideas. Use it to generate possible solutions.
Example: Offer another room, store bags, pay for lunch, ask
housekeeping to make room a priority, upgrade to a suite, put
customer in a neighboring hotel.

The Yellow Hat allows you to explore the positives and probe for value
and benefit. The yellow hat allows you to see the benefits of the
proposed solutions.
Example: Customer will be happier.

The Black Hat is judgment—the devil’s advocate or why something


may not work. Spot the difficulties and dangers of where things might
go wrong. The black hat asks you to look at the negatives of a
solution.
Example: Customer may still be angry.

The Red Hat signifies feelings, hunches and intuition. When using this
hat, you can express emotions and feelings and share fears, likes and
dislikes. This gives people the chance to share their “gut” feelings
about the solutions.
Example: Customer is tired and cranky from traveling; you are
frustrated with reservations department.

The Blue Hat is used to manage the thinking process. It makes sure all
hats are used and summarizes the information, allowing the group to
make a decision.
Example: Offer to store customer’s bag, buy him lunch in hotel, and

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Chapter 07 - Service Breakdowns and Service Recovery

ask housekeeping to work on customer’s room immediately.

Adapted from: The de Bono Group, LLC., http://www.debonogroup.com/six_thinking_hats.php

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Chapter 07 - Service Breakdowns and Service Recovery

Discussion Opportunities

1. As you read in this chapter, a service breakdown occurs when customer


expectations are not met. As a customer service professional, what are some ways
you determine customer service expectations? (LO 7-1)

2. Discuss a type of difficult customer you have had to deal with in your current or past
workplace. What strategies did you use to work with the customer? Did the
strategies work, and what would you do differently next time? (LO 7-3 and 7-7)

3. What is a customer-focused message in the emotion-reducing model? List five


examples of customer-focused messages you can use.(LO 7-4)

4. Are there any places of business you have defected from? What were your
reasons? What could the organization have done differently to prevent your
defection? (LO 7-5)

5. Have you ever worked with someone who did not have a “good-neighbor policy” as
described in this chapter? Describe the situation and what the person should have
done differently.(LO 7-6)

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Chapter 07 - Service Breakdowns and Service Recovery

In the Real World Notes

Retail/Manufacturing—Coca Cola

Coca-Cola is a soft drink brand that is recognized worldwide. The drink is one of the
most recognized corporate logos and is sold in over 200 countries through 250 bottlers
throughout the world.

The Coca-Cola story began in Atlanta, Georgia, in 1886 when pharmacist John
Pemberton was experimenting with a recipe that he later mixed with carbonated water
and began to sell at his drugstore. Two years after its invention, Pemberton sold his
secret formula to a businessman by the name of Asa Candler, who formed a
corporation to bottle and distribute the trendy drink. He later sold the rights to two other
businessmen who wanted to bottle the drink to enhance distribution. Candler sold syrup
that his company produced to these distributors, but not his secret formula. They simply
mixed the syrup with carbonated water and bottled it. From there, the product became a
household name as more people began to take Coca-Cola home to enjoy.

Competitors soon emerged. To ensure that people could tell the original from these
wannabes, the distributors created the trademarked contour bottle in 1916 so that
customers would recognize the original product. Candler ultimately sold his company in
1919 to a group of investors with Robert Woodruff as the president. The new group
wanted to make Coca-Cola available anytime and anyplace. To accomplish this, the
new company started adding bottling plants all over the world.

The six “Ps” of the company vision statement highlight Coca-Cola’s purpose and
desired future objectives—people, portfolio, partners, planet, profit, and productivity.

To assist in accomplishing its vision, the company established the Coca-Cola


Foundation in 1984. This entity focuses on helping and giving back to communities
worldwide. Some of the issues supported in various countries include water stewardship
(providing safe, clean drinking water), lifestyle/behavioral change programs (e.g.,
nutrition, exercise, and behavior modification), recycling, and education.

1. What is your opinion of the Coca-Cola Company? Explain.

Students’ opinion about the company is likely to vary. They would have come
across the product on several occasions, however, an in depth opinion about the
company may require the student to go through the company website and such
other sources to understand the nature of their activities and its growth over the

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Chapter 07 - Service Breakdowns and Service Recovery

years.

2. Based on what you know or read on the Internet or through other sources, do you
believe that the company is customer focused? Why or why not?

Answers will vary. Some students may say that the company is customer focused
which has resulted in its growth, while others may point at the growth of strong
competitors as a sign of weak customer focus.

3. How does the company’s community involvement potentially affect its image in the
eyes of customers or potential customers?

The company’s community involvement leaves a positive impact in the eyes of its
customers and potential customers. For the existing customers, such a move by the
company is a reinforcement of their belief in the company and the choice they have
made. It also enhances their image in front of those potential customers who relate
to such initiatives.

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Chapter 07 - Service Breakdowns and Service Recovery

Work It Out Notes

Work It Out 7.1—Handling Service Breakdowns

This box asks students, in groups, to determine the best solutions for the service
breakdowns listed in figure 7.1. While it is important to figure out what to do in case
these things happen, reiterate to your students that development of good processes and
a customer service mentality can prevent these things from happening in the first place.
Remind them that even though something may be someone else’s fault, they are the
ones who interface with the customer, they will be the ones to hear about it from
customers, and they will need to be the ones to fix it. After students are finished
discussing in groups, ask them to share their answers with classmates.

Work It Out 7.2—Service Breakdown Examples

This box asks students to discuss in groups their experience with service breakdowns
and resolutions to those breakdowns. This box can create a good discussion on what
should be done versus what is actually done. If you have time, extend the group
discussions into a whole-class discussion of breakdowns and recoveries.

Work It Out 7.3—Handling the Demanding Customer

This box asks students to survey customer service professionals in various professions
to see how they handle demanding and domineering customers. This will likely create
some lively discussion. You can also address how different industries may handle the
same types of problems differently. Here you can also discuss the term empowerment
and how empowered employees are able to create service recoveries.

Work It Out 7.4—Dealing with Angry Customers

This box discusses some of the challenges in dealing with angry customers. It asks
students to think of situations in which they have had to deal with an angry customer,
what they did to reduce tension, and how these situations can be handled. In turn, you
can also ask students about situations in which they have been the angry customer and
if the situation was handled at an acceptable standard.

Work It Out 7.5—Responding to Rudeness

This box asks students to brainstorm a list of rude comments that customers can make.
While the possibilities can be endless, ask the students to come up with ten and then

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Chapter 07 - Service Breakdowns and Service Recovery

ask them to rank them from the most offensive to the least offensive. Then, ask your
students to brainstorm possible responses.

Work It Out 7.6—Building your Skills

This box asks students to visit a business or store (possibly a mall) and engage in
customer service interactions with customers. Then, it asks students to analyze the
effective techniques in customer engagement. You can ask students to choose which
ones they would like to work on off of their lists. Then, ask them to set a goal and
specific objectives to focus on to improve these skills.

Work It Out 7.7—Focusing on the Customer

This box asks students to think about possible customer service strategies that were not
included in this chapter. Here, you can point out that some of the simplest things such
as being pleasant and using good manners.

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Chapter 07 - Service Breakdowns and Service Recovery

End-of-Chapter Material Notes

Key Terms

• Angry customers (p. 241)


• Customer defection (p. 246)
• Customer expectations (p. 232)
• Demanding or domineering customers (p. 237)
• Difficult customers (p. 236)
• Dissatisfied customers (p. 240)
• Emotion-reducing model (p. 246)
• Indecisive customers (p. 239)
• Needs (p. 232)
• Problem-solving model (p. 256)
• Prohibitions (p. 261)
• Rude or inconsiderate customers (p. 243)
• Service breakdowns (p. 232)
• Service options (p. 261)
• Strategies for preventing dissatisfaction (p. 252)
• Talkative customers (p. 244)
• Underpromise and overdeliver (p. 242)
• Wants (p. 232)

Review Questions

1. What is meant by the term service breakdown? Define.

A service breakdown is situations when customers have expectations of a certain


type or level of product or service that are not met by the service provider.

2. What causes customers to become dissatisfied?

Dissatisfaction is all about expectations. If the expectations that the customer has
set in his or her mind are not met, the customer will feel dissatisfied.

3. What tactics can you use to deal with angry customers?

While dealing with angry customers, service providers should be positive, remain
objective, listen actively and reduce frustration for the customer. Service providers

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Chapter 07 - Service Breakdowns and Service Recovery

should reassure them that he or she will make it work out.

4. What can you do to assist indecisive people in coming to a decision?

In order to assist indecisive people to come to a decision, the service provider


should be patient with them, ask open-ended questions to figure out what they want
or need, listen and suggest other options. Service providers should help guide them
and their decision making.

5. Why might some customers feel they have to demand things from others?

It can be part of a person’s personality or simply a behavior that they have learned.
Sometimes, staying in control is a reason for people to be demanding. Insecurity
can be a reason as well.

6. How can you effectively deal with rude or inconsiderate customers?

Service providers can deal with rude or inconsiderate customers by making sure
that they remain professional. Just because the customer is rude doesn’t mean that
the service provider should also be rude. Service providers should avoid retaliation
when dealing with rude customers.

7. What are some strategies for refocusing a talkative customer?

Some strategies for refocusing a talkative customer are remaining warm but
focused on the task at hand; using specific open-ended questions but using closed-
ended questions to control the situation; managing the conversation; and ending the
interaction when necessary so you can work with the next customer.

8. What are some strategies for preventing customer dissatisfaction? List them.

The strategies for preventing customer dissatisfaction include thinking like the
customer, pampering the customer, respecting them and always going above and
beyond to exceed their expectations, etc.

9. How does the emotion-reducing model work?

First, the service providers should greet the customer with a customer-focused
message and then let the customer explain the issue (emotional issue). Service
providers can offer statements such as “I understand” or “I see.” They should use

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Chapter 07 - Service Breakdowns and Service Recovery

positive reinforcement and communication throughout the interaction. Service


providers should solve the problem and then provide another customer-focused
message.

10. Why do customers defect?

Customers defect when they feel that their needs or wants are not being met or if
they encounter a breakdown in customer service or poor quality products.

11. What strategies can you use to build strong relationships with co-workers?

Strategies that can be used to build strong relationships with co-workers include
keeping the noise down in your workspace, maintaining good grooming habits, not
unloading personal problems, avoiding gossip and politics, pitching in, being helpful,
and being honest.

12. List the strategies for effective problem solving.

Service providers should use the problem-solving model, which is a series of steps
to follow when dealing with a problem. First, they should make sure that they
properly identify the problem. Next, service providers should compile and analyze
the data, identify alternatives, evaluate alternatives and make a decision. Then, they
should monitor the results and make changes as necessary.

13. What is service recovery and when do you need to implement it?

Service recovery is the process of making things right after a service breakdown
has occurred. Service providers should show a sincere apology, take immediate
action and offer other options. They should offer the alternatives without the
customer having to ask and make sure to perform follow-up.

Collaborative Learning Activity

This activity asks students to role-play with each other on how to handle a variety of
customer service situations. Consider asking one or two students to role-play for the
entire class while the class addresses the questions in the activity:
1. How well was service provided?
2. Were any negative or unclear messages, verbal or nonverbal, communicated? If so,
discuss.
3. How can you incorporate the improvements you have identified into a real customer

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Chapter 07 - Service Breakdowns and Service Recovery

service encounter?
4. What open-ended questions were used to discover customer needs? What others
could have been used?

Face to Face—Handling Service Breakdowns at AAA Landscaping

In this situation, the reader is the owner of a landscaping company that didn’t seem to
meet the customer’s expectations. The customer has called several times reminding
you that there are some aspects to the contract that have not yet been met. After
several phone calls, you finally send someone out to complete the job.

The first question asks if you provided good service to the customer. Not returning
phone calls and not completing a job is not acceptable, so no, you did not provide very
good service.

The second question asks about the customer’s needs, which in this case were simple.
They were included in the contract, but you did not fulfill the obligation or meet his
needs. The work was supposed to be done by Saturday in time for a party the customer
was having, but not only was this deadline missed, it wasn’t until a week or two later
that you finally got around to finishing the customer’s work.

The third question addresses what you could have done differently. First, finishing one
job before starting another is good business sense and you did not do this. Trying to
balance too many jobs at once will likely make all jobs mediocre at best. Second, when
you realized the work wasn’t done on time, the customer should have been notified
immediately. Finally, you should have followed up with the customer even if you didn’t
hear anything back from him once the work was finished. A follow-up call should occur
to make sure the customer needs were met.

Finally, it is doubtful that you will get a good recommendation from this person or that he
will pass business on to you. You had an opportunity for service recovery but did not
meet the expectations of the customer.

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