Week 11: Managing the Customer Service Function

Question 1

LO1: Describe the changing nature of the customer service function.

Answer 1

Customer service involves task-oriented activities (other than proactive selling) that involve interactions with customers in person or by technology for the purposes of service ‘manufacture’, ‘delivery’ and service support.

Question 2

LO2: Demonstrate an understanding of the trade-off between customer satisfaction and operational efficiency.

Answer 2

• it’s a means for a company to differentiate itself, however, think about striking a balance between satisfaction versus efficiency:
• more check-in counters, more call centre staff will surely increase customer satisfaction, but are costly to operate for the service firm.

Question 3

LO3: Distinguish between hard and soft service standards.

Answer 3

– hard: performance aspects that can be counted, timed, or observed (e.g., percentage of weekday flights to Sydney which depart on time).
– soft: perceptional measures such as beliefs and opinions that are more abstract and cannot be observed or timed (e.g., helpfulness, product knowledge, courtesy). Requires surveys/mystery shoppers.

Question 4

LO4: Explain how technology is leveraging customer service.

Answer 4

Customer service increasingly becoming technology-based:
– technology can improve operational efficiency of service ops,
– technology creates opportunity for real-time market feedback.
However, Technology can also lead to delays or lack of personal contact
-Are all consumers comfortable with technology?, Do people like creating relationships with people in the service industry?