However, the company can offer lower rates if they so desired.
4. Customer satisfaction is critical to customer retention. In service firms, the key point of differentiation is the service offered. Thus, if the service is not satisfactory, the customer is likely to find another service provider or to find a substitute. However, satisfied customers will tend to develop brand loyalty. The risk of switching is too high for many services.
Unsatisfied customers, on the other hand, are less likely to remain customers. The cost of attracting new customers is greater than the cost of retaining old ones, so service firms need to pay special attention to their existing customers. Moreover, if a customer is dissatisfied, this creates an opportunity for service recovery. Successful service recovery results in higher satisfaction and correspondingly higher retention.
The final dimension of the relationship between customer satisfaction and retention is that mere satisfaction often leaves the customer open to new opportunities. Thus, the customer's satisfaction level must be high enough to engender loyalty. This involves going beyond the satisfaction of basic needs, preferably to the point where the company is satisfying needs the customer did not expect nor request to be satisfied.
5. Core competencies are the source of competitive advantage for firms. They are those actions or skills that the firm does best. When those actions are better than those of their competitors, the competency becomes a competitive advantage. Core competencies tend to arise from skills that have developed over time and honed by management. Sometimes, the competency can be developed deliberately to provide advantages. Effective businesses also are able to apply their core competencies to different functions, enabling them to compete in a wider range of businesses.
As an example,...
Service Quality Research The research discussed in this paper is based on the application of the SERVQUAL model to the restaurant sector of the hospitality service industry. The SERVQUAL model was developed in 1985 and has been refined since for use in the service industry. In contrast to goods, service quality has been difficult to measure because of the intangibility, variability and heterogeneity of the service. Moreover, the service quality depends
The positioning is akin to a casual version of fine dining, taking concepts from that segment an applying them to a mainstream audience. In doing so, we feel that we will offer an experience superior to that of other casual dining establishments. We view are target market strategy as being congruent with the fun, innovative and youthful image we project. We intend to skew younger than a typical casual dining
Marketing Strategic Alliance: Select Comfort Company and Costco Select Comfort Company and Costco are both successful companies, so that a marketing strategic alliance between the two companies could provide significant benefits for both of them. "Select Comfort Corporation is leading the industry in setting a new standard in sleep by offering consumers high-quality, innovative and individualized sleep solutions, which includes a complete line of SLEEP NUMBER® beds and bedding. The company is
At the second dealership, Carol felt the salesperson respected her knowledge about cars and answered her questions without talking down to her. She was very pleased with her purchase and told the salesperson she would be happy to recommend the dealership to her friends. Kathy, a plus-sized lady who is sensitive about her size, was shopping for a dress to wear to her son's wedding. She went into an independently-owned
The triggers for deciding not to proceed can include everything from not being able to book at a time convenient to them, to rudeness on the part of the receptionist, or any other perceived slight that gives the customer a reason to lack confidence in the process. This point does not have a definable moment at which feedback occurs. This is typical in many businesses - it's akin to a
First the process of co-creation will be defined, followed several examples of successful co-creations of the customer experience. 5. Customer experience is the brand and co-creation is the process A firm that migrates to a service-dominant logic will move from selling a commodity to co-creating the customer's experiences. If you utilize the brand definition in the introduction portion of this paper -- a brand is the summation of a customer's interactions
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