lecture 6 (2)

Question 1

Loyalty management programs

Answer 1

Vaste klanten kaarten

AH bonus kaart

Airmiles

Free bees

Question 2

Loyalty management strategies (level 1)

Answer 2

Low customization, price-based, low sustainable competitive differentiation

Question 3

Loyalty management strategies (level 2)

Answer 3

medium customization, communi-based, medium sustainable competitive differentiation

Question 4

Loyalty management strategies (level 3)

Answer 4

Medium-high customization, delivery-based, high sustainable competitive differentiation

Question 5

From quality to loyalty p2

Answer 5

PS quality “get” + price “give” –> value

If dissatisfaction: complain –> loyalty
or exit switch

If satisfaction: exit switch or loyalty

Loyalty –> profitability

Question 6

service recovery paradox

Answer 6

Effective recovery of a complaint leads to higher satisfaction, WOM and repeat purchases than performing service right the first time

Positive effect only the first time

Double deviation effect for poor service providers

Attribution to firm when more than one service failure

Question 6

service recovery expectations depends on

Answer 6

Severity of failure

Perceived service quality

Customer loyalty

Service guarantee

Question 7

service recovery is reliant on

Answer 7

Psychological (apology/empathy)
Tangible (fair fix, value added)
Speed of recovery
Front line empowerment

Question 8

Follow up service recovery

Answer 8

Psychological (apology, show interest)
Tangible(small token)

Question 9

Service recovery framework
how to get complaints

Answer 9

Setting performance standards
Communicating importance
Training customers
Using technological support

Question 10

Pre-recovery phase

Answer 10

Customer loyalty
Perceived service quality
Severity of failure

Question 11

Service recovery framework (Fairness)

Answer 11

outcome fairness
Procedural fairness
Interactional fairness

Question 12

Service recovery framework (immediate recovery phase)

Answer 12

psychological
tangible
Front line empowerment
Speed of recovery

Question 13

Follow up recovery phase
Service recovery framework

Answer 13

Front line empowerment

Question 14

Implications Relationship level

Answer 14

Only completely satisfied customers are loyal

Dissatisfied customers stay if the expected value of alternatives is not higher and or the cost of switching is high

Loyalty programs are services hence PSQ

Question 15

Implications event level

Answer 15

complaining customers provide information, are (potentially) loyal, are the tip of the iceberg

Complaint handling is service, hence PSQ

Negative critical incidents produce switching