2. Service Failure
Service Failure is
the process of NOT keeping promises
Above
expectation
(great service)
4
Expected 2 Zone of
Service 3 Tolerance
5
1
Below 6
expectation 7 8 9
(poor service)
5. Service Failure - Causes
The facilities and
environment
The expectations
Actions (&
The systems
inactions) of staff
4
2
3
The process
5
1
6
7 8 9
Actions of the Actions of other
customer The equipment
customers
6. Service Failure - Causes
The facilities and
environment
The expectations
Actions (&
The systems
inactions) of staff
The process The Service Provider
Becomes Responsible for
Managing
Actions of the Actions of other
customer The equipment
customers
7. Finding Causes – Gap Analysis
Management
perception gap
Quality Market comms
specification gap Marketing/ gap
Sales
Perceived service
quality gap
Service
delivery gap
Delivery Customers
Keeping Promises
Source: Parasuraman, Zeithaml, Berry, SERVQUAL: a multi-item scale for measuring consumer perceptions of service quality
9. Responses
Above
expectation
(great service)
4
Expected 2 Zone of
Service 3 Tolerance
5
1
Below 6
expectation 7 8 9
(poor service)
Complain Put up with it
GOOD Customers Have BAD
Choices
Leave
10. Complaining is Good?
THE LOGIC:
1. The Perception of the Customer
Determines Service Quality
2. Perception is intangible and may be
invisible
3. Complaining makes it visible
4. Unless it is visible the Service Provider
cannot respond
11. Customer Choices
GOOD Complain THE SERVICE Put up with it
PROVIDER CAN ONLY
RESPOND IF THEY BAD
KNOW ABVOUT THE Leave
FAILURE
What Happens How do Customers Decide What Happens
• Opportunity to • Bond (e.g. • Little opportunity to
influence by service contracts, knowledge influence by service
provider etc.) provider
• Opportunity to learn • Strength of • Customers spread bad
and adjust service dissatisfaction word of mouth
• Switching costs • Customers left are
• Willingness to complain gone for good
• Significance of service
• Past relationship
Service Recovery
Process
12. Service Recovery
Service Recovery:
is the process for Above
expectation
resolving Failures (great service)
4
7 8 9
that maintains the Expected 2
3 Zone of
Service Tolerance
perception of quality 5
1
Below 6
expectation 7 8 9
(poor service)
Service Recovery Paradox: Can Service Recovery
increase satisfaction with service to levels above
normal service?
13. The Concept of Justice
A Service Failure represents an expectation not met,
for a customer this is like a BROKEN PROMISE
The customer
wants to see
JUSTICE
Distributive Procedural Interactional
Size of Process is Behaviour of
recompense consistent and service provider
matches degree of transparent appropriate for
failure degree of failure
14. The Implications of Justice
Distributive Procedural Interactional
Size of Process is Behaviour of
recompense consistent and service provider
matches degree of transparent appropriate for
failure degree of failure
Basis of Organisational response
Appropriate Frequent, trustwort Appropriately
compensation hy communication trained staff
Potential customer issues
Opportunistic Squeaky wheel Unrealistic
claims syndrome expectations
15. Service Recovery Concepts
• Service Recovery best done in service
sequence and not done later
• Service Recovery best done by the groups
involved in the Service Failure
• Service Recovery best to exceed service
expectation in some way
• Cost of Service Recovery may be lower
than cost to replace customer
16. Final Word on Service Recovery
• Resolve the CAUSE of the Service Failure
• This will improve the quality of the service
• This will reduce the time and costs spent
in service recovery
Hinweis der Redaktion
Title Slide
The customer’s experience can be mapped through a service sequence. This is an abstract map showing how the perceived quality of service can be affected by the different acts. The customer may have had some great service (act 4) but the final two acts will have left the impression of poor service.
Customer expectations are set in a number of ways, not all of which the company has control over.It is important to realise that marketing is only part of the story.Past experience, reputation, and what other customers say strongly influences the expectations.In this way the people who deliver the service have a role to play in setting expectations around the quality through previous service situations.
Title Slide
Customer expectations are set in a number of ways, not all of which the company has control over.It is important to realise that marketing is only part of the story.Past experience, reputation, and what other customers say strongly influences the expectations.In this way the people who deliver the service have a role to play in setting expectations around the quality through previous service situations.
Customer expectations are set in a number of ways, not all of which the company has control over.It is important to realise that marketing is only part of the story.Past experience, reputation, and what other customers say strongly influences the expectations.In this way the people who deliver the service have a role to play in setting expectations around the quality through previous service situations.
Because expectations are set by previous experiences of the service, continually delighting the customer can create a situation where the customer’s expectations rise. If the last three times you were upgraded to business class, you will experience disappointment if it doesn’t happy on the fourth time.
Title Slide
The customer’s experience can be mapped through a service sequence. This is an abstract map showing how the perceived quality of service can be affected by the different acts. The customer may have had some great service (act 4) but the final two acts will have left the impression of poor service.
The customer’s experience can be mapped through a service sequence. This is an abstract map showing how the perceived quality of service can be affected by the different acts. The customer may have had some great service (act 4) but the final two acts will have left the impression of poor service.
The customer’s experience can be mapped through a service sequence. This is an abstract map showing how the perceived quality of service can be affected by the different acts. The customer may have had some great service (act 4) but the final two acts will have left the impression of poor service.
The primary purpose of the service recovery process is to resolve the service failure in a way that maintains the customer perception of a quality service. A well designed service recovery process should also be capable of identifying service failures, as well as providing information to prevent re-occurrence of the problem that caused the service failure.
Part of the service logic is that service organisations are involved in promise management – meaning that service failures represent promises not kept. It is therefore unsurprising that the concept of justice or fairness is important to customers when they are involved in a service recovery situation. There are three basic forms of justice, distributive, procedural and interactional. Distributive justice is concerned with the balancing the size and impact of the failure with the degree of compensation or recompense provided during the recovery process. The perception of the customer is the key factor in determining whether the customer feels that the compensation is appropriate for the size of the service failure. At the lower end, a service failure involving short-changing may only require the providing of the correct change and an apology. At the other end of the scale a customer may expect that accommodation charges and meals are covered by an airline that has made an error in flight bookings. Procedural justice is concerned with the consistency and transparency of the process. This includes whether the customer is being kept informed, the degree to which the customer can affect the outcome, and how the customer may be treated in relation to other customers with a similar complaint. As with distributive justice, the perception of the customer is key to determining whether there has been the appropriate procedural justice. Interactional justice is concerned with whether the behaviour of the service provider and the manner in which the matter is treated is appropriate for the customer. Again, perception is important and a significant inconvenience such as a missed flight for a wedding would warrant a significant level of concern on the part of the service provider.
The customer’s requirement for distributive justice means that compensation is often a key component of the service recovery process. Organisations may be able to optimise the results of service recovery attempts by matching the type of compensation to the type of service. Service providers providing non-essential luxury items may find that a free gift provides better results than monetary compensation, whereas those providers offering a basic and essential service (such as power and water) may find monetary compensation is more appropriate. Good communications is important for a service recovery process. The communications needs to be frequent, transparent and trustworthy. If a service provider has failed to meet a customer’s expectations, any loss of credibility through providing misleading information will be perceived as an additional service failure. The communications also need to accept feedback from the customer and provide the customer some say in the recovery process. These elements ensure that the customer’s requirement for procedural justice is met. Many customer complaints are generated as a result of negative emotions arising from the service failure, meaning that negative emotions are likely to be present in the service recovery process. A service provider needs to have well trained staff who are able to manage these negative emotions including the range of emotions that different customers may bring. Staff must be trained not to mirror any of the customer’s negative emotions.
Part of the service logic is that service organisations are involved in promise management – meaning that service failures represent promises not kept. It is therefore unsurprising that the concept of justice or fairness is important to customers when they are involved in a service recovery situation. There are three basic forms of justice, distributive, procedural and interactional. Distributive justice is concerned with the balancing the size and impact of the failure with the degree of compensation or recompense provided during the recovery process. The perception of the customer is the key factor in determining whether the customer feels that the compensation is appropriate for the size of the service failure. At the lower end, a service failure involving short-changing may only require the providing of the correct change and an apology. At the other end of the scale a customer may expect that accommodation charges and meals are covered by an airline that has made an error in flight bookings. Procedural justice is concerned with the consistency and transparency of the process. This includes whether the customer is being kept informed, the degree to which the customer can affect the outcome, and how the customer may be treated in relation to other customers with a similar complaint. As with distributive justice, the perception of the customer is key to determining whether there has been the appropriate procedural justice. Interactional justice is concerned with whether the behaviour of the service provider and the manner in which the matter is treated is appropriate for the customer. Again, perception is important and a significant inconvenience such as a missed flight for a wedding would warrant a significant level of concern on the part of the service provider.
Part of the service logic is that service organisations are involved in promise management – meaning that service failures represent promises not kept. It is therefore unsurprising that the concept of justice or fairness is important to customers when they are involved in a service recovery situation. There are three basic forms of justice, distributive, procedural and interactional. Distributive justice is concerned with the balancing the size and impact of the failure with the degree of compensation or recompense provided during the recovery process. The perception of the customer is the key factor in determining whether the customer feels that the compensation is appropriate for the size of the service failure. At the lower end, a service failure involving short-changing may only require the providing of the correct change and an apology. At the other end of the scale a customer may expect that accommodation charges and meals are covered by an airline that has made an error in flight bookings. Procedural justice is concerned with the consistency and transparency of the process. This includes whether the customer is being kept informed, the degree to which the customer can affect the outcome, and how the customer may be treated in relation to other customers with a similar complaint. As with distributive justice, the perception of the customer is key to determining whether there has been the appropriate procedural justice. Interactional justice is concerned with whether the behaviour of the service provider and the manner in which the matter is treated is appropriate for the customer. Again, perception is important and a significant inconvenience such as a missed flight for a wedding would warrant a significant level of concern on the part of the service provider.
