Designing and managing services

Based on the book, marketing management by Kotler et. Al.

How can we improve service quality ?

• Service quality of a firm tested at each service encounter.

• Here we explore ways to manage & improve quality of service offered.

• Basix delivers financial services effectively, basing its business model on that of the grameen bank.

Factors Leading to Customer Switching Behavior

1. pricing

• High price.

• Price increases.

• Unfair pricing.

• Deceptive pricing.

2. inconvenience

• Location/hours.

• Wait for appointment.

• Wait for service.

3. Core service failure

• Service mistakes.

• Billing errors.

• Service catastrophe.

4. Service encounter failures

• Uncaring.

• Impolite.

• Unresponsive.

• Unknowledgable.

5. Response to service failure

• Negative response.

• No response.

• Reluctant response.

6. competition

• Found better service.

7. Ethical problems

• Cheat.

• Hard sell.

• Unsafe.

• Conflict of interest.

8. Involuntary switching

• Customer moved.

• Provider closed.

Managing customer expectations

1. Service quality model1. Gap b/w consumer expectation and management perception.

2. Gap b/w management perception and service-quality specification.

3. Gap b/w service quality specification and service delivery.

4. Gap b/w service delivery and external communications.

5. Gap b/w perceived service and expected service

2. Determinants of service quality

1. Reliability.

2. Responsiveness.

3. Assurance.

4. Empathy.

5. Tangibles.

Incorporating self service technologies (sst’s)

Credits & References

• Flickr.com • Images.google.com• En.Wikipedia.org

Created by Dhananjay Goel, IIT Delhi, During an Internship by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com

PROF. SAMEER MATHURIIM LUCKNOW

DHANANJAY GOELIIT DELHI