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Chapter 14 - Services, As companies find it harder to differentiate their…
Chapter 14 - Services
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Managing Service Quality
Managing Customer Expectations - customer expectations are formed from past experiences, word of mouth, and advertising.
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As companies find it harder to differentiate their physical products, they turn to service differentiation, whether that means on-time delivery, better and faster response to inquiries, or quicker resolution of complaints.
A service is any act of performance one party can offer to another that is essentially intangible and does not result in the ownership of anything.
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FIVE Gaps in Service Quality:
-between consumer expectation and management perception
-between management perception and service-quality specification
-between service quality specifications and service delivery
-between service delivery and external communications
-between perceived and expected service
Customers have been observed to calculate their payment equity - the perceived economic benefits in relationship to the economic costs.