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MKT 2106 – RETAIL MARKETING MANAGEMENT CHAPTER 3 –THE MANAGEMENT OF SERVICE  AND QU ALITY IN RETAILING

MKT 2106 –Chap 3 Retail Quality and Service

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MKT 2106 – RETAILMARKETING MANAGEMENT

CHAPTER 3 –THE

MANAGEMENT OF SERVICE

 AND QUALITY IN

RETAILING

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CONTENTS/LEARNING OBJECTIVES

• WHAT CONSTITUTE RETAILING ?•  THE SERVICE PRODUCT CONCEPT• DEFINITION OF SERVICE•  THE CHARACTERISTICS OF THE RETAIL AND SERVICE

PRODUCT•

CLASSIFICATION OF SERVICE AND QUALIT• RETAIL SERVICE CHALLENGES• STRATEGIES TO OVERCOME CHALLENGES• SERVICE QUALIT MODEL• CHARACTERISTICS OF QUALIT• QUALIT AUDITING SSTEMS• BENCHMARKING• SERVICE RECOVER

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WHAT CONSTITUTESRETAILING ?

1. TANGIBLE

FEATURES

2. INTANGIBLE

SERVICES+

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1! TANGIBLE FEATURES

• R"#$%&%'( %) $ *+,-%'$#%+' +.(++)/)"%*")!

• A *$''"& )"%*" -3# ,$4 $&)+ %'+&" $,%5 +. 4)%*$& )3+3'%'()7 )%('$("73'%.+,)7 *$'(%'( ++,)7 %)&$4

  $' #$'(%-&" ."$#3") – #" ,"*$'%)"!• R"#$%&%'( +%") #" -"'"8*%$& 3#%&%#4 +.

$ &$*" .+ 3*$)"!•  T$'(%-&") – ,"*$'%)") 9+3*# &%'")7

)#$:)7 &$4+3#;• W$# "&)" &++< #$'(%-&" %' $ "#$%&)#+" ?????

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2! INTANGIBLE SERVICES

• R"#$%&%'( %) $&)+ &$("&4 %'#$'(%-&" %' '$#3"!

• S%,%&$ =%# 3" )"%*") +"$#%+'$& +*")) )3* $)-$'<%'(7 %')3$'*"7 %'")#,"'# )"%*") "#*!

• R"#$%&%'( *+,-%'") -+# (++) $' )"%*") $) +'"$*<$("!

• R"#$%&%'( *$' -" 3" )"%*" – %')3$'*" > -$'<%'(7

"3*$#%+'7 "#*!• O#") $" *+,-%'$#%+' +. )"%*" @ (++) –

  L$3'%")7 $%"))")7)+" "$%")7 "$&# *&3- $'*"'#")7*%'",$)7 *$#"%'( +3#&"#)7 #$"& $("'#) "#*

• With many of these service dominant retail

businesses there is little or no movement ofphysical goods through a distribution channel.

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SERVICE PRODUCTCONCEPT

TRANSACTION

WITHOUT

MERCHANDISE

TRANSACTION

WITH

MERCHANDISE

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 TRANSACTION WITHMERCHANDISE

I' "#$%&%'( #"" $" #"" 9; #4" +.)"%*") =%# (++)

1!OWNEDGOOD SERVICE2! RENTAL GOOD SERVICE

! SERVICE WITH BOUGHT GOODS

G%" "5$,&") +. #" $-+"(++)! ?????

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 TRANSACTION WITHOUT

MERCHANDISEI' "#$%&%'( #"" %) $&)+ )"%*" =%#+3#(++)3" )"%*") =%#+3# (++)!

• P3" )"%*") +%" -4 $ =%"$'(" +. "#$%&") =+ $" %'+&" %'$$'(%'( + +($'%%'( #$"&78'$'*%$& #$')$*#%+' $' )"%*")7 +

+%%'( ")+'$& )"%*") )3* $)4 *&"$'%'(7 $%*3#7 "#*!

• W$# "&)" ????????

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 W$# %) $ S"%*"?

• A S"%*"S"%*" %) $ .+, +. +3*# #$#*+')%)# +. $*#%%#%")7 -"'"8#)7 +

)$#%).$*#%+') +:"" .+ )$&" #$# $""))"'#%$&&4 %'#$'(%-&" $' + '+# ")3&#%' #" +='")% +. $'4#%'(!

• E5$,&") %'*&3" – B$'<%'(

 – H+#"&)

 – T$5 P"$$#%+'

 –

H+," R"$% S"%*")

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R"#$%& P+3*#)7 S"%*")7

$' E5"%"'*")P3"

 T$'(%-&"

G++

P3"S"%*"

S+$

 T$'(%-&"G++ W%#

A**+,$'4%

'( S"%*")

A3#+ W%#A**+,$'4%

'( R"$%S"%*")

H4-%O:"

R")#$3$'

#

S"%*"W%#

A**+,$'4%

'( M%'+G++)

A%&%'" T%W%#

A**+,$'4%'( S'$*<)

D+*#+)E5$,

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 R"#$%& P+3*#) > S"%*")

P3" T$'(%-&"

G++

P3"S"%*"

S+$7#+4)7"#*

H4-%O:"

R")#$3$'#7

F$)# .++/

 T$%#%+'$& "#$%&

H$%"))%'(7

B$'<%'(7

I')3$'*"INTANGIBILIT

PERISHABILIT

INSEPARABILIT

 

•TANGIBLE

•STORABLE

•STANDARD

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I'#$'(%-%&%#4I'#$'(%-%&%#4

I')"$$-%&%#4I')"$$-%&%#4

V$%$-%&%#4V$%$-%&%#4

P"%)$-%&%#4P"%)$-%&%#4

C$'# -" )""'7 #$)#"7 ."&#7"$7 + ),"&&" -".+"3*$)"!

C$'# -" )"$$#" .+,)"%*"+%")!

Q3$&%#4 ""') +' =++%") #", $' ="'7="" $' +=!

C$'# -" )#+" .+ &$#" )$&"

N$#3" $' C$$*#"%)#%*

+. $ R"#$%& S"%*"

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RETAIL SERVICE

CHALLENGES/PROBLEMS ?INTANGIBILIT

• C3)#+,") *$'# )"" #" -"'"8#) +.#" "#$%& +3*# $' )"%*")

STRATEGIES

• U)" ":"*#%" )"&&%'( #"*'%3")

I,+%)" #" )#+" 4)%*$& &$4+3#• W$# "&)" ????????

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RETAIL SERVICE

CHALLENGES/PROBLEMS ?PERISHABILIT ?

• R"#$%& -3)%'"))/)#+" =+3& &+)" )$&")%. #"" $" '+ *3)#+,")!

STRATEGIES

•  T+ *"$#" ",$' -4 $%'( )"*%$&

+,+#%+'!• W$# "&)" ?????

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RETAIL SERVICE

CHALLENGES/PROBLEMS ?INSEPARABILIT

• A-)"'*" +. )"%*" +%") $'%')3*%"'#

  ,"*$'%)" 9+3*# &%'");

STRATEGIES

• S#+") #+ ",&+4 $##%,"/)#$' %'=+<")

• W$# "&)" ????

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RETAIL SERVICE

CHALLENGES/PROBLEMS ?VARIABILIT ?• Q3$&%#4 ""') +' =+ +%")

#", $' ="'7 ="" $' +=!• P+-&",) – %'*+')%)#"'# ",&+4"")

".+,$'*"

STRATEGIES ?• P+%" ":"*#%" +3*# <'+=&"("

$' *3)#+," )"%*" #$%'%'(• W$# "&)" ????

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S$#%)8" $' L+4$&

C3)#+,")

S$#%)8" $' L+4$&

C3)#+,")

G"$#" S"%*"V$&3"

G"$#" S"%*"V$&3"

H"$&#4S"%*" P+8#)

$' G+=#

H"$&#4S"%*" P+8#)

$' G+=#

 S$#%)8" $'

P+3*#%" S"%*"E,&+4"")

 S$#%)8" $'

P+3*#%" S"%*"

E,&+4"")

I'#"'$&S"%*" Q3$&%#4

I'#"'$&S"%*" Q3$&%#4

 T" R"#$%& S"%*"P+8#C$%'

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M$<"#%'( S#$#"(%") .+

R"#$%& S"%*" F%,)• M$'$(%'( S"%*" D%:""'#%$#%+'

 – D""&+ %:""'#%$#" +:"7 "&%"4 $' %,$("!

• M$'$(%'( S"%*" Q3$&%#4 – E,+=" .+'#&%'" ",&+4"")7 – B"*+," C3)#+," +-)"))"7 – D""&+ %( )"%*" 3$&%#4 )#$'$)7 – W$#* )"%*" ".+,$'*" *&+)"&4!

• M$'$(%'( S"%*" P+3*#%%#4 – T$%' *3"'# + '"= ",&+4"") -"##"7 – W+< +' 3$&%#4 $) ="&& $) 3$'#%#47 – U#%&%" #"*'+&+(4!

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SERVICE QUALIT• S"%*" 3$&%#4 %) ")*%-" $) #" $-%&%#4 +.

#" +($'%$#%+' #+ ,""# + "5*""*3)#+," "5"*#$#%+'!

• C3)#+," )$#%).$*#%+' =%# $ )"%*" *$' -""8'" -4 *+,$%'( "*"#%+') +. )"%*""*"%" =%# "5"*#$#%+' +. )"%*" ")%"!

•  W"' "5"*#$#%+') $" "5*"""7 )"%*" %)

"*"%" #+ -" +'" +. "5*"#%+'$& 3$&%#4$' $&)+ #+ -" $ &"$)$'# )3%)"!•   W"' "5"*#$#%+') $" '+# ,"#7 )"%*"

3$&%#4 %) ""," 3'$**"#$-&"! W"'"5"*#$#%+') $" *+'8," -4 "*"%")"%*"7 3$&%#4 %) )$#%).$*#+4;!

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CUSTOMERS EPECTATIONSVERSUS PERCEPTIONS

1! EPECTATION• R"." #+ *3)#+,")

")%") + =$'#) #$#$" %'3"'*" -4 $)#"5"%"'*"7")+'$&'"")7=+ +.,+3#7,$<"#

*+,,3'%*$#%+'7%,$("$' %*"!•  T")" "5"*#$#%+') *$'

-" )$" -4 )"%*"+%") #+3( #"%,$<"#%'( $' "5#"'$&

*+,,3'%*$#%+' ":+#)!

1! PERCEPTION•  T" +*")) -4

=%* "+&")"&"*# 7+($'%"7

$' %'#""#%'.+,$#%+' #+.+, $ ,"$'%'(.3&%*#3" +. #"=+& 9K+#&" ;!

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SERVICE QUALIT MODEL

•  T" .+&&+=%'( $%$-&") T$'(%-&")7A))3$'*"! R"&%$-%&%#47 R")+')%"'"))$' E,$#4 $" #" %,"')%+') %' #"SERVICEQUAL ,+"&9 ""&+" -4

P$$)3$,$'7 "%#$, $' B"4 10;!•  T")" $%$-&") $" "5"*#" #+

%'3"'*" "+&") "*"#%+' $'"5"*#$#%+' +' #" )"%*" 3$&%#4 -4

+($'%$#%+')!

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SERVICE QUALITVARIABLES

A RETAIL

SERVICE

QUALITY

•TANGIBLES•ASSURANCE•RELIABILITY

•RESPONSIVENESS•EMPATHY

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 TANGIBLES•  T$'(%-&") %'*&3" #" 4)%*$&

"%"'*" +. #" )"%*" )3* $)4)%*$& .$*%&%#%")7$"$$'*" +.)"%*" +%")7 #++&) +

"3%,"'# 3)" #+ +%" #")"%*"7 4)%*$& ")"'#$#%+' +.#" )"%*"7 $' +#" *3)#+,")

%' #" )"%*" .$*%&%#4!

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ASSURANCE•

 T%) %,"')%+' "&$#") #+ #" <'+=&"("7*+,"#"'*"7 $' *+3#")4 +. )"%*"",&+4"") $' #"% $-%&%#4 #+ *+'"4 #3)# $'*+'8"'*"!

•   C+,"#"'*" ,"$') +))"))%+') +. #""3%" )<%&&) $' <'+=&"(" #+ ".+, #")"%*"!

• C+3#")4 %'+&" +&%#"'"))7")"*#7*+')%"$#%+'7 $' .%"'&%'")) +. *+'#$*#")+''"&!

•   T%) %,"')%+') %'*&3") #3)#=+#%'"))7

-"&%"$-%&%#4 $' +'")#4 +. )"%*" ",&+4"")!

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RELIABILIT•

R"&%$-%&%#4 %' )"%*") %) "8'" $) #"$-%&%#4 #+ ".+, #" +,%)" )"%*"""'$-&4 $' $**3$#"&4!

•   I# ,"$') #$# #" )"%*" +($'%$#%+'".+, #" )"%*" %(# #" 8)# #%,"$' $&)+ ,"$') #$# #" +($'%$#%+')+'+) $&& +. %#) +,%)")!

•   S+," "5$,&") %'*&3" $**3$*4 %'-%&&%'(7<""%'( "*+) $**3$#"&47 $'

*+,&"#%'( #" )"%*" $# #" +,%)"#%,"!

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RESPONSIVENESS•  T%) *+'*"') #" =%&&%'('")) +

"$%'")) +. ",&+4"") #+ +%")"%*"!

•   I# I'*&3") #" #%,"&%'")) +.)"%*" )3* $) (%%'( +,#)"%*"7 ,$%&%'( $ #$')$*#%+' )&%

%,,"%$#"&47 $' "#3'%'(*3)#+," *$&& 3%*<&4!

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EMPATH•

E,$#4 %) "8'" $) #" *$%'($' %'%%3$&%" $##"'#%+'+%" #+ *3)#+,")!

•  I# %'*&3" #" $+$*$-%&%#4 $'"$)" +. *+'#$*# =%# #" )"%*"+%") $' ,$<%'( #" ":+# #+3'")#$' #" *3)#+,") $'

#"% '"")!

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QUALIT IN RETAILING ?

• I) #" #+#$&%&#4 +. "&$#%+')%-"#=""' )"%*" +%")

9.3'*#%+'$& $)"*#); $' #"."$#3") +. "#$%&%'( 9#"*'%*$&$)"*#; =%* $" "&$#" #+

#" "&%"4 +. )$#%).$*#%+'!

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QUALIT IN RETAILING ?

FUNCTIONAL

QUALITY

TECHNICAL

 QUALITY

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FUNCTIONAL QUALIT• R".") #+ += #" #"*'%*$& "&","'#) +.

#" )"%*" $" #$')."" + "*"%"!EAMPLES•

A"$$'*"• B"$%+3• A##%#3")• C3)#+," *+'#$*#)

• S"%*" ,%'"'"))• A**"))%-%&%#4• I'#"'$& "&$#%+')

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 TECHNICAL QUALIT• R"." #+ =$# *3)#+,") %) $*#3$&&4

"*"%%'( .+, #" )"%*"!

EAMPLES

•  T"*'%*$& )+&3#%+'

• K'+=+=

M$*%'")• C+,3#"%" )4)#",)

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I,+#$'*" +. P+3*#%%#4 $'Q3$&%#4 .+ R"#$%& S"%*" M$<"#")

Productivity • H"&) #+ <"" *+)#) +='

 – &+=" %*") #+ ""&+ ,$<"#7 *+,"#" -"##"

 – %'*"$)" ,$(%') #+ ",%# &$(" ,$<"#%'( -3("#)

 – $%)" +8#) #+ %'")# %' )"%*" %''+$#%+'

• M$4 %,$*# )"%*" "5"%"'*" 9,3)# $+% '"($#%");

• M$4 "3%" *3)#+," %'+&","'#7 *++"$#%+'

Quality • G$%' *+,"#%#%" $$'#$("7 ,$%'#$%' &+4$&#4

• I'*"$)" $&3" 9,$4 ",%# %(" ,$(%');

• I,+" +8#)

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 THE SERVICE QUALITDELIVER MODEL

• D""&+" -4 P$$)3$,$'7 "%#$,& >B"4 91;!

•  T" ,+"& *&$%,) #$# #" *+')3,""$&3$#") #" 3$&%#4 +. $ )"%*""5"%"'*" $) #" +3#*+," +. #"%:""'*"9GAP; -"#=""' "5"*#" $'3'"5"*#" )"%*"!

•  T" ,+"& %(&%(#) #" ,$%' "3%","'#).+ $ )"%*" +%") "&%"%'( #""5"*#" )"%*" 3$&%#4!

•  T"" $" ($) %' #" ,+"&!

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 THE SERVICE QUALIT MODEL GAPS THAT LEAD TO SATISFACTION

Customer experiencerelative to expectations

Advertising andsales promises

Customer interpretation

of communications

1. Knowledge Gap

2. Standards Gap

3. Delivery Gap

. Service Gap

Customer needs and expectations

!anagement definition of t"ese needs

#ranslation into

design$delivery specs 

%xecution ofdesign$delivery specs 

Customer perceptionsof product execution

&. %xternal

  Communications Gap

.

MARKETER 

CUSTOMER 

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 THE SERVICE QUALIT MODEL GAPS THAT LEAD TO SATISFACTION

•  T%) ,+"& "&) "#$%& ,$<"#") #++%" ("$#" ,$'$(","'# *+'#+&+" "#$%& *3)#+," )"%*"

"&$#%+')%!• C$' &"$ #+ -"##" *3)#+,")

)$#%).$*#%+' -4 "3*%'( + *&+)%'(

#" ($)

THE SERVICE QUALIT MODEL GAPS

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 THE SERVICE QUALIT MODEL GAPS THAT LEAD TO SATISFACTION

GAPS 1 – KNOWLEDGE GAP• I('+$'*" +. #" *3)#+,") "5"*#$#%+'• I) #" ($ -"#=""' *+')3," "5"*#$#%+'

$' ,$'$(","'# "*"#%+'!• M$4 ")3&# .+, #" &$*< +. 3'")#$'%'(

+. =$# *+')3,") "5"*#) .+, $ )"%*"!• E!( – $ '"=&4 ")#$-&%)" ")#$3$'# +='"#%'<) #$# *3)#+," =$'# "&%*%+3) %*"$' +3#%'" .++ *3%)%'") -3# %' "$&%#4*3)#+,") =$'# $ $%"#4 +. .++ *3%)%'")!

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 THE SERVICE QUALIT MODEL GAPS THAT LEAD TO SATISFACTION

GAP 2 –SERVICE STANDARD• R"3%","'# .+ )"%*" )#$'$

•  T" ($ -"#=""' ,$'$(","'# "*"#%+' $' )"%*"3$&%#4 "5"*#$#%+')!

• R")3&#) ="' #"" %) $ %)*"$'*4/%:""'*"

-"#=""' =$# ,$'$(","'# "*"%") #+ -" *+')3,""5"*#$#%+') $' $*#3$& )"%*" 3$&%#4 )"*%8*$#%+'"5#$-&%)"!!

• E!( #" ,$'$(","'# ,$4 '+# )"# 3$&%#4 )#$'$) +#" 3$&%#4 )#$'$) )"# ,$4 -" *&"$ -3# 3'"$&%)#%*!

• E!( – $ )"$ .++ ")#$3$'# "*"%") #$# *3)#+,")

=$'# .$)#.++ "&%"4 -3# #" ,$'$(","'# + '+#)"# #" $*#3$& "&%"4 )#$'$!

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 THE SERVICE QUALIT MODEL GAPS THAT LEAD TO SATISFACTION

GAP – NOT DELIVERING TO SERVICE STANDARDS

• I) #" ($ -"#=""' )"%*" 3$&%#4 )"*%8*$#%+') $'  )"%*" "&%"4!

•  T" (3%"&%'") ,$4 "5%)# #+ ".+, $ )"%*" ="&& -3#)"%*" "&%"4 %) +. ++ 3$&%#4 3" #+ ++ ",&+4""".+,$'*"!

• E( – $ -$'< *&$%, +. .$)# -$'<%'( )"%*" -3# #"",&+4"") +%" )&+= )"%*" 3" #+ #"%%'"*%"'*4 $' %'*+,"#"'*4!

• O#" "5$,&") ???

• A' +3#)#$#%+' *"3" "+)%#" %' P"'$'( B$'< =+3&

#$<" $4) #+ *&"$ -3# #" *"3" %) '+# *&"$" +'#"  $4!

THE SERVICE QUALIT MODEL GAPS

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 THE SERVICE QUALIT MODEL GAPS THAT LEAD TO SATISFACTION

GAP ETERNAL COMMUNICATION GAP•

I'*+')%)#"'*4 -"#=""' ".+,$'*" $' +,%)")!•  T" ($ -"#=""' )"%*" "&%"4 $' "5#"'$&

*+,,3'%*$#%+'!• C+')3," "5"*#$#%+') $" $:"*#" -4 #"

+,%)"),$" -4 #" )"%*" +%") +,+#%+'$& ,"))$("!E5$,&")• A %$#" *+&&"(" *&$%,) #$# -3)%'")) +($,)

$" -""' $**"%#" -4 LAN/MQA +'&4 #+ -"%)*+"" -4 )#3"'#) '+# 4"#

  $+" -4 M%'%)#4 +. E3*$#%+'!• O#" "5$,&") ???

THE SERVICE QUALIT MODEL GAPS

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 THE SERVICE QUALIT MODEL GAPS THAT LEAD TO SATISFACTION

GAP –SERVICE GAP•

 T" )"%*" )+#.$&&)!• R")3&#) ="' +'" + ,+" +. +#" ($) ")*%-" +**3)!EAMPLES• A +#"& (3")# *+,&$%') #$# #" $#" 3+#" %) %("

#$' #" $#" $"#%)"!• H" .3#" *+,&$%') #$# #" ++, %) ),"&&4 =%# 3%$'

),"&& $' .3&& +. ,+)3%#+!• P%$#" *+&&"(" )#3"'#) *+,&$%' #$# #"4 '"" #+ $4$%#%+'$& #3%#%+' ."" @@@@!

•  T"4 .3#" *+,&$%' #$# #" $%*+'%#%+'%'( %) +# $'3,%

  &3) ),"&&47 $' +)#"&) =$#" &++< 4"&&+=%)!•

I. #")" )+#.$&& $%)")7 ,$'$(","'# $" #+ "')3" #"4"3*" + *&+)" #" ($)!

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ONE OF TOLERANCE• I' "#$%& )"%*" "'*+3'#"7 *+')3,") =%&&

$" %:""'# &""&) +. #+&"$'*" $) =$#,$4 -" 3(" $"3$#" + "5"*#" )"%*"!

• +'" +. #+&"$'*" – *+')3,") $" =%&&%'( #+$**"# %:""'# &""& +. )"%*" =%* .$&&=%#%' $ +'" -"#=""' #" ")%" $'$"3$#" &""&) +. ".+,$'*"!

• E5$,&") – ,4 #+&"$'*" &""& .+ =$%#%'(

.++ "&%"4 %) 20 ,%'3#")! I. =%#%' 10 –20,%'3") )#%&& O!K! I. ,+" #$' 20 ,%'3#") '+#O!K 

RETAIL SERVICE CONTROL OF

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RETAIL SERVICE CONTROL OFQUALIT

WH THERE IS GROWING CONCERN ONRETAILSERVICE CONTROL OF QUALIT ?• D3" #+ )#+'( *+,"#%#%+' $' %$&) '"" #+

+%" -"##" )"%*" &""&)!• D3" #+ *3)#+,") ",$' +' 3$&%#4 )"%*"

$' 3$&%#4 +. &%."!• D3" #+ *+')3,") #%," &%,%#$#%+'7 '"" .+ .$)#

)"%*"!• D3" #+ #" (&+-$&%$#%+' "$7 #" ")"'*" +.

(%$'# *+,"#%#+) =+ *+3& +:" -"##" )"%*")• D3" #+ #" $$'*","'# +. #"*'+&+(47 %$&) $"

*+,"#%'( .+  &$#")# #"*'+&+(%") $' $=$ – ISO 2000)

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CHARACTERISTICS OF QUALITIN RETAILING

MERCHANDISE

(PRODUCTS)   SERVICES

MERCHANDISE QUALIT

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MERCHANDISEQUALIT9+3*#);

• P".+,$'*"• F"$#3")

• R"&%$-%&%#4

• C+'.+,$'*" #+ )#$'$)

• D3$-%&%#4

• S"%*"$-%&%#4

• %,$("

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SERVICES QUALIT1!TANGIBLES

2!ASSURANCE

!RELIABILIT! RESPONSIVENESS

! EMPATH

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QUALIT AUDITING SSTEM

B3##&" 91; *+,%&" $ &%)# +. 1+)"%*" $%$-&") #$# )+")'+,$&&4 3)" #+ $))")) $ )#+")

)"%*" ".+,$'*"!• H" )+#&%)#" #+ 26 <"4 *%#%*$&

$#%-3#") #$# "#$%&") '"" #+ .+*3)

+'

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26 RETAIL SERVICE ATTRIBUTES• E5#"'$& $"$$'*" +. #" +3#&"#• M"*$'%)" %*%'( %' =%'+= %)&$4•

G""#%'( 3+' "'#4• S#$: $+$*$-%&%#4• S#$: $$%&$-%&%#4 #+ "&• M$'$(" $$%&$-%&%#4• W"#" #" ,$'$(" %) "*+('%$-&"•  T" '3,-" +. *3)#+," )"" )%,3&#$'"+3)&4 -4 +'"

)#$: ,",-"• P+,#'")) +. "'3%4 $'&%'(• O3#&"# )#+*< &""&• S#$: $=$"'")) +. .$)%+' #"')• P+3*# "# $' =%#• S#$: $=$"'")) +. $"#%)" &%'")•

H"&.3&'")) +. )#$: $%*"

26 RETAIL SERVICE ATTRIBUTES

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26 RETAIL SERVICE ATTRIBUTES

• H+'")#4 +. )#$: $%*"• S#$'$ +. 8##%'( ++,)•

A$%&$-%&%#4 +. $"#%)" )#+*<• C+&+/)%" $$%&$-%&%#4• S"&"*#%+' =%#%' )%"• A$%&$-%&%#4 +. $&#"$#%+' "%*"• E4" *$#*%'( =%'+= %&$4• Q3$&%#4 +. %'#"%+ %)&$4• S"" +. #" 3*$)" #$')$*#%+'• N3,-" +. *+3'#" )"%*"•  T" $$%&$-%&%#4 +. )"$#)

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BENCHMARKING ?• I) $ *+'#%'3+3) +*")) +. )"&"*#%'( #"

-")# $*#%*" $' )"%*") $($%')#=%* #+ 3("

• B$)" 3+' #" J$$'")" *+'*"# $'#+#)37 ,"$'%'( #" -")#!

• U)%'( #" -")# *+,"#%#+ $) #"

-"'*,$< .+ "#$%&") #+ %,+"!• M$4-$'< 3)%'( C%#%-$'< $) $

-"'*,$< #+ %,+"

TPES OF

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TPES OFBENCHMARKING

1!INTERNAL• W"" #" -")# %'#"'$& *+,$'4 "5$,&") $"

3#%&%"2!COMPETITIVE• B$)" 3+' "5#"'$& %"*#&4 *+,"#%'( "#$%&")

$' #"% ,"*$'%)"!FUNCTIONAL• W%* ,"$)3") $($%')# #" -")# "5#"'$&

,$<"# &"$") + .3'*#%+'$& +"$#%+')!GENERIC• W%* %) #+ ,"$)3" #" -")# $*#%*" "($&"))

+. =$# )"*#+ + %'3)#4 %) "")"'#"!

IS A QUALIT OR COST OR A LONG

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IS A QUALIT OR COST OR A LONG TERM BENEFITS ?

• G"'"$&&4 #" '+#%+'/%"$ #$# %,+","'# %'

3$&%#4 %) $))+*%$#" =%# %'*"$)" *+)#)!• H")<"## 910; *$," 3 =%# #" ,+"& #$#

%'%*$#") %' #" &+'( #",7 #3" 3$&%#4%,+","'# &"$) #+ $' %,+" #$%'(+)%#%+'!

• C&$%,) #$# $ *+'#%'3+3) %,+","'# %' )"%*"%) '+# $ *+)# -3# $' %'")#,"'# %' $ *3)#+," =+=%&& "#3' ,+" +8# %' #" &+'(#",!

• DO IT RIGHT FOR THE FIRST TIME7 MAKE

CUSTOMERS SATISFIED AND DELIGHTED7IN THELONGRUN QUALIT WILL BE FREE

HESKETTS QUALIT

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HESKETT S QUALITMODEL

I'%*$#") #$# 3$&%#4 %,+","'# &"$) #+ $'%,+" #$%'( +)%#%+'!• C&$%,) #$# #" *+)# +. $*3%%'( $ '"= *3)#+,"

%) ,3* %(" #$' #$# +. "#$%'%'( $' "5%)#%'(*3)#+," #+3( +%%'( 3$&%#4 )"%*"!

• S$#%)8" *3)#+,") $" =%&&%'( #+ $4 %(" %*")3" #+ #" (++ )"%*" 3$&%#4 "5"%"'*" &3)."" $"#%)%'( #+3( =+ +. ,+3#$"#%)","'#!

• K""%'( *3)#+,") +" &+'(#", +%")%,+#$'# )$%'()!

O' $ *+)# –-"'"8# -$)%)7 (++ )"%*" 3$&%#4 =%&&%'*"$)" )"%*" 3$&%#4 $' "3*" &+'(3' *+)#)!

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B3%&%'( $ S"%*" Q3$&%#4I'.+,$#%+' S4)#",

• C+,&$%'# $'$&4)%)

• P+)##$')$*#%+' )3"4)

• O'(+%'( *3)#+,")3"4)

• C3)#+," $%)+4$'"&)

• E,&+4"" )3"4)/$'"&)

• F+*3) (+3)

• M4)#"4 )+%'(

•  T+#$& ,$<"# )3"4)

• C$#3" +. )"%*"

+"$#%'( $#$

SERVICE RECOVER ?

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SERVICE RECOVER ?• I) $ -+$ #", #$# "&$#") #+ #"

&$''" )4)#",) $' ":+# #$# $8, +%") #+ *+"*# $ +-&",.+&&+=%'( $ )"%*" .$%&3" =%# #")"*%8* +-"*#%" +. "#$%'%'( $

*3)#+,") (++=%&&!• S"%*" "*+"4 ":+#) &$4 $

*3*%$& +&" %' $*%"%'( 9+;")#+%'( *3)#+," )$#%).$*#%+'!

F%(! !1 C+3)") +. A*#%+' O"' #+

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( $ D%))$#%)8" C3)#+,"

'ro(lem

Arises

%scalateComplaint

Decide toComplain

#a)e *o

Action

Switc"Suppliers

Complain to +irmat ,ocal ,evel

Complain to

-ead ffice

Complain toutside rgani/ation

See) ,egalAction

#ell +riends of0ad %xperience

'ro(lem Stillnresolved

'ro(lem *owesolved

'ro(lem Stillnresolved

*egative !

Defection

E'#4 P+%'#) .+

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E'#4 P+%'#) .+C+,&$%'#)

E,&+4"") )"%'( *3)#+,") .$*"#+.$*" + -4 +'"• I'#","%$%") $*#%'( .+ +%(%'$& )3&%"

• M$'$(") *+'#$*#" -4 *3)#+,") $# "$/"(%+'$&+*"

• C+,&$%'# *$) ,$%&" + &$*" %' )"*%$& -+5

• C+,&$%'#) $))" #+ *+,$'4 -4 #%$#4"*%%"'#)

 – #$" +($'%$#%+') – *+')3," $+*$#") –

&"(%)&$#%" $("'*%") – +#" *3)#+,")

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F%(! !2 C+,+'"'#) +. $' E:"*#%"R"#$%& S"%*" R"*+"4 S4)#",

Do the Job Rightthe First Time

Identify Service

Com!"ints

Reso!ve Com!"intsEffective!y

#e"rn fromRecovery

Effective Com!"int$"nd!ing

Incre"sed S"tisf"ction"nd #oy"!ty

%Cond&ct Rese"rch%Monitor Com!"ints

%Deve!o Com!"ints "sOort&nity C&!t&re

Deve!o EffectiveSystems "nd Tr"iningin Com!"ints $"nd!ing

Cond&ct Root C"&seAn"!ysis

+eed(ac)

G % &% . : %

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G3%"&%'") .+ E:"*#%"R"#$%& S"%*" P+-&",

R")+&3#%+'• A*# .$)#

• A,%# ,%)#$<") -3#+'# -" "."')%"

• U'")#$'+-&", .+,*3)#+,")%"=+%'#

• D+'# $(3"• A*<'+=&"("

*3)#+,") .""&%'()

• G%" -"'"8# +.+3-#

• C&$%.4 )#") #+

)+&" +-&",• K"" *3)#+,")

%'.+," +. +("))

• C+')%"

*+,"')$#%+'• P")""" #+ "($%'

(++=%&&

INDIVIDUAL SERVICE

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INDIVIDUAL SERVICERECOVER STRATEGIES

WATCHING FOR SIGN LANGUAGE• L++< .+ *3)#+," '+'"-$& *3") -+%'(7 =$%#%'( #++

&+'( "#*!

• I' ")#$3$'#7 (%" ."" *+:"" + " "3*#%+' %' #" -%&&

PREPLANNING

E')3" "'+3( )#$:) 3%'( "$< #%,"/",$'! TRAINING

• E%#" +%" )"*%$&%)" + ,3&#%#$)<) #$%'%'(!

EMPOWERMENT

• F+'#&%'" )#$: '"" #+ "$*# 3%*<&4 #+ )+&" )"%*"+-&", )%#3$#%+')!

• D"&"($#" $3#+%#4 > ")+')%-%&%#4 #+ )+&" +-&",)=%#+3# #" '"" #+ "." #+ #" )3"%)+ $' ,$'$("!

A SUMMAR OF THE KE

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 A SUMMAR OF THE KE

COMPONENTS OF A SERVICEQUALITLED APPROACH

1! A' 3'"'%'( 3")# .+ "5*"&&"'*" %' $&& #%'()!

2!A )4)#", =%* +:") *+'#%'3+3) %,+","'# >"3*") .$%&3" ""#%#%+'!

! A' +%"'#$#%+' =%* .+*3)") +' #" *3)#+,"$' )#$<"+&" )$#)%.$*#%+' +3#*+,")!

!A .""&%'( +. #+#$& %'+&","'# +. ""4-+4#+=$) 3$&%#4 $##$%',"'#!

! R"(3&$ ,"$)3","'#7 ,+'%#+%'(7"$&3$#%+' $'$3)#,"'# #+ *$'(%'( *%*3,)#$'*")!