Chapter 19. Customer Service. Services Offered by Retailers. Services Offered by Garden.Com SEE PHOTO ON PAGE 587 OF THE TEXTBOOK PPT19-1 PPT19-2

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1 Chapter 19 Customer Service Irwin/McGraw-Hill PPT19-1 Services Offered by Retailers PPT19-2 Services Offered by Garden.Com SEE PHOTO ON PAGE 587 OF THE TEXTBOOK

2 PPT19-3 Problems in Providing Quality Service Intangibility of benefits - Difficult for customers to evaluate service quality - Difficult for firms to evaluate quality of service delivered by employees Inconsistencies of service provided - Employees are not machines PPT19-4 Customer Service Strategies Customized - Greater potential benefits to customers - Greater inconsistency - Higher cost Standardized - Lower cost - High consistency - Meets but does not exceed expectations PPT19-5 Role of Expectations in Evaluating Retail Service Perception of service delivered Service quality Satisfaction with service quality Past experiences Customer expectations Dissatisfaction with service quality Competitive offerings Perception of service delivered

3 PPT19-6 Example of Unexpected Service SEE PHOTO ON PAGE 590 OF THE TEXTBOOK PPT19-7 Cues Customers Use to Evaluate Retail Service Quality TANGIBLES Appearance of store Display of merchandise Appearance of salespeople UNDERSTANDING & KNOWING CUSTOMER Providing individual attention Recognizing regular customers SECURITY Feeling safe in parking lot Communications & transactions treated confidentially CREDIBILITY Reputation for honoring commitments Trustworthiness of salespeople Guarantees & warranties provided Return policy INFORMATION PROVIDED TO CUSTOMERS Explanation of service & its cost Notes sent to customers informing them of sales Assurances that a problem will be resolved PPT19-8 Cues Customers Use to Evaluate Retail Service Quality COURTESY Friendliness of employees Respect shown to customers Interest shown in customers ACCESS Short waiting time to complete sales transaction Convenient operating hours Convenient location Manager available to discuss problems COMPETENCE Knowledgeable & skillful employees Customer questions answered RESPONSIVENESS Returning a customer s call Giving prompt service RELIABILITY Accuracy in billing Performing service at designated time Accuracy in completing sales transaction

4 PPT19-9 Gaps Model for Improving Retail Customer Service Knowledge gap -- knowing what the customer wants Standards gap -- setting service goals Delivery gaps -- meeting and exceeding service goals Communications gap -- communicating the service promise PPT19-10 Gaps Model for Improving Service Quality PPT19-11 Closing the Knowledge GAP Customer research More interactions between managers and customers Better communications between managers and service providers

5 PPT19-12 Common Service Problems Blatant dishonesty Thinking customer are stupid Broken promises Claims of powerlessness -- I just work here Big wait Impersonal treatment, no eye contact Employees not responding Acting put out by customers Clueless Misplace priorities PPT19-13 Closing the Standards GAP High quality service commitment Innovative solutions Define the role of service providers Set service goals Measure service performance PPT19-14 Service Provided by Other Customers in Chat Rooms SEE PHOTO ON PAGE 601 OF THE TEXTBOOK

6 PPT19-15 Closing the Delivery GAP Information and training Instrument and emotional Support Internal communications Reduce conflicts Empower employees Providing incentives PPT19-16 Closing the Communications GAP Realistic commitments Managing customer expectations PPT19-17 Service Recovery Listen to the customer Provide a fair solution - Distributive fairness - Procedural fairness Resolve problem quickly - Reduce number of contacts - Give clear instructions - Avoid jargon