6. Distribution through physical & e. channels Flashcards
Strategic Managment Trap
Making a distinction between strategy and execution can do great damage to a corporation.
Relationships between levels of the organization do not develop or develop with mistrust.
This problem occurs quite often in the business world due to top-down and micro-management approach.
GAP Model of Service Quality
The model shows the five major satisfaction gaps that organizations must address when seeking to meet customer expectations.
> The Knowledge Gap. > The Policy Gap. > The Delivery Gap. > The Communication Gap. > The Customer Gap.
Complaints
The customers when giving feedback are acting like free consultants
Types of complainers
> Passives (not saying anything but spreading bad WOM)
Voicers (active and concrete, excellent to listen to - great feedback)
Irates (Negative WOM, aggressive at times, switch to competitors)
Activists (Complains everywhere and in all levels, above-average involvement)
The service recovery paradox
The customer will rate the service higher if during the failure of the service it was successfully recovered by the provider (rather than experiencing ‘normal’ or ‘usual’ service as usual). It only works once, multiple service failures will not be tolerated by the customer.
Recovery Strategy Selection
> Compensatory (we offer discounts, free upgrade, discount. Example, a bottle of vine or similar)
Apologetic strategies (indicating that the company is truly sorry for the service failure. For some reason, firms don’t like to apologise even though it’s free and the easiest way ta calm the customer)
Reimbursement strategies (the customer returns the product and receives the money back)
The service recovery example
HBR Cancun resort
Principles of good service recovery
> Anticipate needs for recovery
Empower the front the line
Respond quickly
Keep the customer informed
