Characteristics of an Effective Service Guarantee - StudentVIP

Characteristics of an Effective Service Guarantee

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Unconditional

¨C The guarantee should make its promise unconditionally ¨C no

strings attached

Meaningful

¨C The firm should guarantee elements of the service that are

important to the customer

¨C The payout should cover fully the customer¡¯s dissatisfaction

Easy to Understand

¨C Customers need to understand what to expect

¨C Employees need to understand what to do

Easy to Invoke

¨C The firm should eliminate hoops or red tape in the way of

accessing or collecting on the guarantee

Principles of Service Design

1. User-centered: Services should be experienced and designed

through the customer¡¯s eyes

2. Cocreative: All stakeholders should be included in the service

design process

3. Sequencing: A service should be visualized as a sequence of

interrelated actions

4. Evidencing: Intangible services should be visualized in terms of

physical artifacts

5. Holistic: The entre environment of a service should be considered

Types of Service Offering Innovations

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Major or radical innovations

¨C New services for markets as yet undefined

Start-up businesses

¨C New services for a market already served by existing products that

meet the same generic needs

New services for the currently served market

¨C Attempts to offer existing customers a service not previously

available from the company

Service line extensions

¨C Augmentations of existing service line

Service improvements

¨C Changes in features of existing services

Style changes

Physical Evidence

The environment in which the service is

delivered and where the firm and the

customer interact, and any tangible

commodities that facilitate performance

or communication of the service.

How this affects the customer:

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Flow

Meaning

Satisfaction

Emotional connections to company

Roles of the Servicescape

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Package

¨C Conveys expectations

¨C Influences perceptions

Facilitator

¨C Facilitates the flow of the service delivery process

? Provides information (how am I to act?)

? Facilitates the ordering process (how does this work?)

? Facilitates service delivery

Socializer

¨C Facilitates interaction between:

? Customers and employees

? Customers and fellow customers

Differentiator

¨C Sets provider apart from competition in the mind of the consumer

Internal Responses to the Servicescape

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Cognition: environment can affect beliefs about a place and the people

and products found in that place

Emotion: color, d¨¦cor, music, scent affect mood

¨C Pleasure/displeasure

¨C Degree of arousal (amount of stimulation)

Physiology: volume, temperature, air quality, lighting can cause physical

discomfort and even pain

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