Service Marketing Presentation

Service Marketing PresentationJoel James EMBA 14008IMT - Dubai

United Airlines

Largest airline in the world when measured in the no: of destinations served 3731926 - Air Mail service 690 aircrafts5055 departures

Mr. Dave CarrollCanadian SingerSons of Maxwell2009 Music video

https://www.youtube.com/watch?v=5YGc4zOqozo

United Breaks GuitarsMarch 31, 2008 Halifax to OmahaChicago Ohare airportUA staff24hrs standard time frameJuly 2009, music video5 million in August4 days 180million

Gaps ModelZeithaml, Parasuraman & Berry to measure quality in the service sectorFive factors - reliability, assurance, tangibles, empathy and responsiveness - RATER

Gaps:Customer gapService provider gap

Customer Gap

The Customer gap is the difference between customer expectations and perceptions (Valarie A. Z., 2013)7Ps People, Physical evidence, Process, Price, Product, Place, PromotionPremium Price = Safety + ComfortDesired Service-Adequate Service = Zone of tolerance

Service Provider GapThe Knowledge GapThe Service Design & Standards GapThe Service Performance Gap The Communication Gap

The Knowledge Gap

Not understanding a customer expectationCustomer oriented researchUpward communicationInsufficient relationshipfocusPoor Service recovery

The Service Design & Standards Gap

Lack of understanding leads to wrong design = poor standardsPoor systematic service designCustomer driven standards

The Service Performance Gap

Deficiencies in HR policiesCustomer not fulfilling rolesProblems with service intermediariesFailure to match supply & demand

The Communication Gap

Lack of integrated servicesIneffective management of customer expectationsInadequate horizontal communications

Closing GapsOnce gaps are close, customer expectations as met.Strategy InsightUA cross platform communicationsEmployee empowermentCommunications recoveryProcesses recoveryService recovery strategies & customer relationship modelOutcome With higher customer satisfaction, the company would be able to reach new customers, retain current customer, improve brand image = higher profits.

ReferenceJohn Deighton, L. K. (2013). United Breaks Guitars. In e. Valarie A. Zeithaml, Services Marketing (p. 622). Newyork: McGraw-Hill.

Star Alliance. (2014, March 31). Star Alliance Network. Retrieved from Star Alliance: http://www.staralliance.com/assets/doc/en/about/member-airlines/pdf/Facts_and_Figures_as_of_31MAR2014_Final.pdf

United Continental Holdings, Inc. (2010). Corporate Fact Sheet. Retrieved from United Continental Holdings: http://newsroom.unitedcontinentalholdings.com/corporate-fact-sheet

Thanks for your attention

1. Evaluate Uniteds response to Dave Carrolls video. What did the company do right? What did the company do wrong? 2. Why was Dave Carrolls video seen by so many people in just a short time? 3. Describe a better approach that United could have used in this situation to recover from the poor service they provided to Dave Carroll. 4. How should companies prepare to meet the challenges presented by user-generated complaints, videos, and other material spreading across social media?