lecture 12

Question 1

Service profit chain

Answer 1

Integrative framework for understanding how a firms operational investments into service operations are related to customers perceptions and behaviors, and how these translate into profits

Return on quality framework
Revenues vs Profitability

Question 2

Satisfaction profit chain

Answer 2

Attributes-satisfaction-loyaltry-profitabilty

Linear and symmetric relation?

1% decrease in customer satisfaction has a huge difference compared to a 1% increase in customer satisfaction

Question 3

Evaluation of service business performance old vs new situation

Answer 3

OLD: Mainly financial performance indicators, they can be misleading signals for impreovement/innovation

and you should switch to mainly process indicators

Balanced score card (new)
weighted hard and soft indicators
Financial, customer, internal processes, learning and growth

Question 4

indicators of customer performance

Answer 4

service customer:
1) orientation
2) choice
3) consumption (specification, operating, completion
4) post-consumption evaluation

Service provider:
1) attraction
2)conversion
3)fulfillment
4)retention

Question 5

How to increase CTR and conversion ratio

Answer 5

Argument quality in advertisements

Type of evidence (expert evidence, statistical evidence, causal evidence and anecdotal evidence

Question 5

Effectiveness indicators (click through rate & conversion rate)

Answer 5

CTR: User initiated action of clicking on an ad element when being exposed to it, causing a redirect to another website

Conversion rate:
Percentage of people who engage in a particular kind of action after clicking on ad (sale, information request)

Cookie that lasts for 30 days
Does not work on different computer (unless u always be logging into facebook)

Question 5

Evidence types

Answer 5

making use of opinion of an expert

Numerical summary of certain incidences (a study under 400 students shows that for 80 %…)

consist of an explanation of cause and result relation