Professional Documents
Culture Documents
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 1
Overview of Chapter 13
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 2
Customer
Complaining Behavior
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 3
Customer Response Categories to
Service Failures (Fig. 13.3)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 4
Understanding Customer Responses to Service
Failure
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 5
3 Dimensions of Perceived Fairness in Service
Recovery Process (Fig. 13.7)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 6
Dealing with Complaining Customers and
Recovering from Service Failure
Restore relationships
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 7
Customer Responses to
Effective
Service Recovery
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 8
Impact of Effective Service Recovery on
Customer Loyalty
% of Unhappy
Customers Retained
100 95%
90 82%
80 70%
70
60 54%
46%
50
37%
40
30 19%
20 9%
10
0
Customer did not Complaint was Complaint Complaint was
complain not resolved was resolved resolved quickly
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 9
Importance of Service Recovery
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 10
The Service Recovery Paradox
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 11
Principles of Effective
Service
Recovery Systems
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 12
Strategies to Reduce Customer
Complaint Barriers (Table 13.1)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 13
How to Enable
Effective Service Recovery
Be proactive
On the spot, before customers complain
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 14
How Generous
Should Compensation Be?
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 15
Service Guarantees
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 16
The Power of Service Guarantees
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 17
How to Design Service Guarantees
Unconditional
Easy to understand and communicate
Meaningful to the customer
Easy to invoke
Easy to collect
Credible
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 18
Types of Service Guarantees
(Table 13.2)
Multiattribute-specific guarantee
A few important service attributes are covered
Full-satisfaction guarantee
All service aspects covered with no exceptions
Combined guarantee
All service aspects are covered
Explicit minimum performance standards
on important attributes
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 19
Is it Always Suitable to Introduce a Guarantee?
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 20
Jaycustomers
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 21
Addressing the Challenge of Jaycustomers
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 22
Seven Types of Jaycustomers: (1)
The Cheat and Thief
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 23
Seven Types of Jaycustomers: (2)
The Rulebreaker
Ensure company rules are necessary, not should not be too much or
inflexible
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 24
Seven Types of Jaycustomers: (3)
The Belligerent
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 25
Seven Types Of Jaycustomers: (4)
Family Feuders And Vandals
Family Feuders: People who get into arguments with other customers
– often members of their own family
The Vandal:
Service vandalism includes pouring soft drinks into bank cash machines;
slashing bus seats, breaking hotel furniture
Bored and drunk young people are a common source of vandalism
Unhappy customers who feel mistreated by service providers take
revenge
Prevention is the best cure
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 26
Seven Types Of Jaycustomers: (5)
The Deadbeat
Customers who fail to pay (as distinct from “thieves” who never
intended to pay in the first place)
Preventive action is better than cure--e.g., insisting on prepayment;
asking for credit card number when order is taken
Customers may have good reasons for not paying
-If the client's problems are only temporary ones, consider long-
term value of maintaining the relationship
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 27
Dealing with Customer Fraud
Managerial implications:
Firms can benefit from offering 100 percent money-back guarantees
Guarantees should be offered to regular customers as part of membership
program since regular customers are unlikely to cheat
Excellent service firms have less to worry about than average providers
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 28
Summary of Chapter 13 –Service
Recovery and Customer Feedback (1)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 29
Summary of Chapter 13 –Service
Recovery and Customer Feedback (2)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 30
Summary of Chapter 13 –Service
Recovery and Customer Feedback (3)
Slide © by Lovelock, Wirtz and Chew 2009 Essentials of Services Marketing Chapter 1 - Page 31