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business
services marketing concepts
Services Marketing People Technology Strategy 8th Edition Wirtz, Jochen;Lovelock, Christopher - Solutions
What is the service recovery paradox? Under what conditions is this paradox most likely to hold? Why is it best to deliver the service as planned, even if the paradox does hold in a specifi c context?
Why would a fi rm prefer its unhappy customers to come forward and complain?
Why don’t more unhappy customers complain?What do customers expect the fi rm to do once they have fi led a complaint?
How do customers typically respond to service failures?
Approach service employees in two or three fi rms with implemented CRM systems. Ask the employees about their experience interfacing with these systems, and whether or not the CRM systems(a) help them understand their customers better, and(b) lead to improved service experiences for their
Design a questionnaire and conduct a survey asking about two loyalty programs. The first is about a membership/loyalty programs your classmates or their families like best and keep them loyal to that fi rm. The second should be about a loyalty program that is not well perceived, and does not seem
Evaluate the strengths and weaknesses of two loyalty programs, each one from a diff erent service industry.Assess how each program could be improved further.
What conclusions do you draw about yourself and the fi rms in Exercise 3? How could each of these fi rms avoid your defection? What could each of these fi rms do to avoid defections of customers with a profi le similar to yours in the future?
Identify two service businesses that you used several times but have now stopped to buy from (or plan to stop patronizing soon). Complete the sentence:“I stopped using (or will soon stop using) this organization as a customer because...”
What conclusions do you draw about (a) yourself as a consumer, and (b) the performance of each of the businesses in Exercise 1? Assess whether any of these businesses managed to develop a sustainable competitive advantage through the way it won your loyalty.
Identify three service businesses that you buy from on a regular basis. For each business, complete the following sentence: “I am loyal to this business because...”
What is the role of CRM in delivering a customer relationship strategy?
Why are loyalty programs often important of a customer loyalty strategy?
What is the role of churn management in an eff ective loyalty strategy, and what tools can be used to understand and reduce customer churn?
Why are benefi ts related to the core service (e.g., customization, transaction convenience, and service priority) generally more eff ective in building loyalty than rewards that are unrelated to the core service(e.g., air miles)?
Identify some key measures that can be used to create customer bonds and encourage long-term relationships with customers.
What is tiering of services? Explain why it is used and what are its implications for fi rms and their customers.
How can a fi rm build a foundation for loyalty?
How do the various strategies described in the Wheel of Loyalty relate to one another?
How can you estimate a customer’s LTV?
Why is targeting the “right customers” so important for successful customer relationship management?
Why is customer loyalty an important driver of profi tability for service fi rms?
Profi le an individual whose leadership skills have played a signifi cant role in the success of a service organization, identifying personal characteristics that you consider important.
Identify the factors needed to make service teams successful in (a) an airline, (b) a restaurant, and(c) a customer contact center.
Which issues do you see as most likely to create boundary spanning problems for employees in a customer contact center at a major Internet service provider? Select four issues and indicate how you would mediate between operations and marketing to create a satisfactory outcome for all three groups.
Think of two organizations you are familiar with, one with a very good climate for service, and one with very poor service climate. Describe the factors that contributed to shaping those climates. What factors do you think contributed most and why?
Use the Service Talent Cycle as a diagnostic tool on a successful and an unsuccessful service fi rm you are familiar with. What recommendations would you prescribe to each of these two fi rms?
Consider the following jobs: emergency department nurse, bill collector, computer repair technician, supermarket cashier, dentist, kindergarten teacher, prosecuting attorney, waiter in a family restaurant, waiter in an expensive French restaurant, stockbroker, and undertaker. What type of emotions
An airline runs a recruiting advertisement for cabin crew that shows a picture of a young boy sitting in an airline seat and clutching a teddy bear. The headline reads: “His mom told him not to talk to strangers.So what’s he having for lunch?” Describe the types of personalities you think
Why is role modeling a desirable quality in service leaders?
What is the relationship among organizational culture, climate for service and leadership?
How can a service fi rm build a strong service culture that emphasizes service excellence and productivity?
How can frontline employees be effectively motivated to deliver service excellence?
Identify the factors needed to make service teams successful in (a) an airline, (b) a restaurant, and (c) a customer contact center. What are the factors that favor a strategy of employee empowerment?
What are the key types of training service fi rms should conduct?
How can a fi rm select the best-suited candidates from a large number of applicants?
What can a service fi rm do to become a preferred employer, and as a result, receive a large number of applications from the best potential candidates in the labor market?
Describe the key components of the Service Talent Cycle.
List fi ve ways in which investment in hiring and selection, training, and ongoing motivation of employees will have a positive impact on customer satisfaction for organizations like (a) a restaurant, (b)an airline, (c) a hospital, and (d) a consulting fi rm.
What are the key barriers for fi rms to break the Cycle of Failure and move into the Cycle of Success?How should an organization trapped in the Cycle of Mediocrity proceed?
What is emotional labor? Explain the ways in which it may cause stress for employees in specifi c jobs.Illustrate with suitable examples.
There is a trend of service delivery moving from high-contact to low-contact. Are service employees still important in low-contact services? Explain.
Why are service personnel so important for service fi rms?
Take a camera and conduct a photo audit of a specific servicescape. Photograph examples of excellent and very poor design features. Develop concrete suggestions how this environment could be improved.
Visit a self-service environment and analyze how the design dimensions guide you through the service process. What do you fi nd most eff ective for you, and what seems least eff ective? How could that environment be improved to further ease the ‘wayfi nding’ for self-service customers?
Select a bad and a good waiting experience and contrast the two situations with respect to the service environment and other people waiting.
Visit a service environment, and have a detailed look around. Experience the environment and try and feel how the various design elements shape what you feel and how you behave in that setting.
Identify fi rms from three diff erent service industries where the service environment is a crucial part of the overall value proposition. Analyze and explain in detail the value that is being delivered by the service environment in each of the three industries.
What tools are available for aiding our understanding of customer responses, and for guiding the design and improvement of service environments?
What are the implications of the fact that environments are perceived holistically?
What are the roles of signs, symbols, and artifacts?
Explain the dimensions of ambient conditions and how each can infl uence customer responses to the service environment.
Why can it happen that diff erent customers and service staff respond vastly diff erent to the same service environment?
What is the relationship or link between Russell’s Model of Aff ect and the servicescape model?
Describe how the Mehrabian–Russell Stimulus–Response Model and Russell’s Model of Aff ect explain consumer responses to a service environment.
What are the four main purposes service environments fulfi ll?
Give examples, based on your own experience, of a reservation system that worked really well and of one that worked really badly. Identify and examine the reasons for the success and failure of these two systems. What recommendations would you make to both fi rms to improve (or further improve, in
Review the 10 suggestions on the psychology of waiting. Which are the most relevant in (a) a supermarket; (b) a city bus stop on a rainy, dark evening; (c) a doctor’s offi ce; and (d) a ticket line for a football game expected to be a sell-out?
Select a service organization of your choice, and identify its particular patterns of demand with reference to the checklist provided in Table 9.1 and answer: (a) What is the nature of this service organization’s approach to capacity and demand management? (b) What changes would you recommend in
Identify some specifi c examples of fi rms in your community (or region) that signifi cantly change their product and/or marketing mix in order to increase patronage during low demand periods.
Explain how fl exible capacity can be created in each of the following situations: (a) a local library, (b)an offi ce-cleaning service, (c) a technical support helpdesk, (d) an Interfl ora franchise.
How can service fi rms use residual service capacity after all strategies of matching supply and demand have been exhausted?
What are the benefits of having an effective reservation system?
How can fi rms make waiting more pleasant for their customers?
What do you see as the advantages and disadvantages of the diff erent types of queues for an organization serving large numbers of customers? For which type of service might each of the queuing types be more suitable?
How can marketing mix elements be used to reshape demand patterns?
What actions can fi rms take to adjust demand to match capacity more closely?
How can firms identify the factors that affect demand for their services?
What actions can fi rms take to adjust capacity to be more closely matched to demand?
Why is capacity management particularly important for service fi rms?
What is meant by productive capacity in services?
Describe the building blocks for managing capacity and demand.
What is the diff erence between ideal capacity and maximum capacity? Provide examples of a situation where (a) the two might be the same and (b) the two are diff erent.
Identify one website that is exceptionally userfriendly and another that is not. What are the factors that make for a satisfying user experience in the fi rst instance, and a frustrating one in the second?Specify recommendations for improvements in the second website.
What actions could a bank take to encourage more customers to bank by the Internet, through apps and the ATMs rather than visiting a branch?
Identify three situations in which you use selfservice delivery. For each situation, what is your motivation for using self-service delivery, rather than having service personnel do it for you?
Observe supermarket shoppers who use self-service checkout lanes, and compare them to those who use the services of a checker. What diff erences do you observe? How many of those conducting selfservice scanning appear to run into diffi culties, and how do they resolve their problems?
Review the tools and templates Coleman Associates used to redesign healthcare clinics at www.patientvisitredesign.com. How do these tools and templates map against the key learnings from this chapter. What additional insights can you gain for service process redesign in general?
Think about what happens in a doctor’s offi ce when a patient comes for a physical examination. How much participation is needed from the patient in order for the process to work smoothly? If a patient refuses to cooperate, how can that aff ect the process?What can the doctor do in advance to
Prepare a blueprint for a service you are familiar with. On completion, consider (a) the tangible cues or indicators of quality from the customers perspective, considering the line of visibility;(b) whether all steps in the process are necessary;(c) the extent to which standardization is possible
Review the blueprint of the restaurant visit in Figure 8.6. Identify several possible “OTSUs”(“opportunity to screw up”) for each step in the front-stage process. Consider possible causes underlying each potential failure and suggest ways to eliminate or minimize these problems.
How can you test whether an SST has the potential to be successful, and what can a fi rm do to increase its chances of customer adoption?
Explain what factors make customers like and dislike self-service technologies (SSTs).
Why does the customer’s role as a cocreator need to be designed into service processes?
What eff orts are typically involved in service process redesign?
What are the four key objectives of service process redesign?
Why is it necessary to periodically redesign service processes, and what are the typical symptoms of a service process that is not working well?
How can consumer perceptions and emotions be considered in the design of service processes?
Why is it important to develop service standards and targets?
How can fail-safe methods be used to reduce service failures?
What are the typical design elements of a service blueprint?
How does blueprinting help us to better understand the service process from the perspective of the key actors (i.e., customers and the employees from diff erent service departments and functional areas)in a serviced process?
Conduct a Google search for (a) MBA programs and(b) vacation (holiday) resorts. Examine two or three contextual ads triggered by your searches. What are they doing right, and what can be improved?
Register at Amazon.com and Hallmark.com and analyze their permission-based communications strategy. What are their marketing objectives?Evaluate their permission-based marketing for a specifi c customer segment of your choice — what is excellent, what is good, and what could be further improved?
Explore the websites of a management consulting fi rm, an Internet retailer, and an insurance company.Assess them for ease of navigation, quality of content, and visual design. What, if anything, would you change about each site?
What tangible cues could a diving school or a dentistry clinic use to position itself as appealing to upscale customers?
Describe and evaluate recent public relations eff orts made by service organizations in connection to three or more of the following: (1) launching a new off ering, (2) opening a new facility, (3) promoting an expansion of existing services, (4) announcing an upcoming event, or (5) responding to a
Identify an advertisement that runs the risk of attracting mixed segments to a service business.Explain why this may happen, and state any negative consequences that could result.
If you were explaining your current university or researching the degree program you are now in, what could you learn from blogs and any other online WOM you can find? How would that information infl uence the decision of a prospective applicant to your university? Given that you are an expert on
Identify one advertisement (or other means of communications) aimed mainly at managing strategy of a service provider. Assume the objective of the communications strategy is to attract new customers.
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