SCHOOL OF MANAGEMENT
SEMESTER 1 2012/2013
AMW342 SERVICES MARKETING
ASSOCIATE PROFESSOR DR. AZIZAH OMAR
Lecture:
Venue:
Room:
Thursday
DK - R
PhD/MA Office, Level 1
School of Management
Tel:
04 653 888 ext.2889
Email:
aziemar@usm.my
http://www.management.usm.my/azizahomar
Tutorial:
McGraw-Hill/Irwin
Wednesday (2.00pm – 3.00pm) @ Training
Room, Ground Floor, School of Management
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
Customer-Defined Service
Standards
9
 Factors Necessary for Appropriate Service
Standards
 Types of Customer-Defined Service Standards
 Development of Customer-Defined Service
Standards
9-2
Objectives for Chapter 9:
Customer-Defined Service Standards
 Distinguish between company-defined and customer-defined
service standards.
 Differentiate among “hard” and “soft” customer-defined
standards and one-time fixes.
 Explain the critical role of the service encounter sequence in
developing customer-defined standards.
 Illustrate how to translate customer expectations into behaviors
and actions that are definable, repeatable, and actionable.
 Explain the process of developing customer-defined service
standards.
9-3
FedEx Service Quality Indicator (SQI)
9-4
Factors Necessary for Appropriate Service
Standards
 Standardization of service behaviors and actions
 Standardization usually implies a nonvarying sequential
process similar to the production of goods
 Customization usually refers to some level of adaptation or
tailoring of the process to the individual customer
 Formal service targets and goals
 Setting specific targets for individual behaviors and actions;
for example, the customer service standards set by Puget
Sound Energy and shown in Figure 9.1.
9-5
Customer Service Report Card for
Puget Sound Energy
9-6
Service Standards
Standards are based on the most important customer
expectations and reflect the customer’s view of these expectations.
CustomerDefined
Standards
SOURCES
Customer Expectations
Customer Process Blueprint
Customer Experience
Observations
CompanyDefined
Standards
SOURCES
Productivity Implications
Cost Implications
Company Process Blueprint
Company View of Quality
9-7
Counting…
“Not everything that counts can be
counted...and not everything that can
be counted, counts.”
Albert Einstein
9-8
Standards…
HARD STANDARDS AND MEASURES
Things that can be counted, timed,
or observed through audits (time,
numbers of events)
SOFT STANDARDS AND MEASURES
Opinion-based measures that cannot
be observed and must be collected by
talking to customers (perceptions, beliefs)
9-9
Exhibit 9.1: Examples of Hard Customer-Defined
Standards
9-10
Exhibit 9.2: Examples of Soft Customer-Defined
Standards
9-11
Process for Setting Customer-Defined Standards
9-12
What Customers Expect: Getting to Actionable
Steps
9-13
Linkage between Soft Measures and Hard Measures
for Speed of Complaint Handling
9-14
Responsiveness Standards at Zappos.com
 Respond to 80 percent of all incoming calls
within 20 seconds
 Respond to all e-mail messages in less than four
hours
 Respond to live (online) chats in less than 10
seconds.
9-15
Soft Standards at Toyota in Japan
 Standards for salespeople patterned
after samurai behaviors:
 Assume the samurai warrior’s “waiting
position” by leaning five to ten degrees
forward when a customer is looking at a car
 Stand with left hand over right, fingers
together and thumbs interlocked, as the
samurais did to show they were not about
to draw their swords
 Display the “Lexus Face,” a closed-mouth
smile intended to put customers at ease
9-16
More Soft Standards at Toyota in Japan
 Standards for salespeople patterned after
samurai behaviors:
 When serving coffee or tea, kneel on the floor
with both feet together and both knees on the
ground
 Bow more deeply to a customer who has
purchased a car than a casual window shopper
 Stand about two arms’ lengths from customers
when they are looking at a car and come in closer
when closing a deal
 Point with all five fingers to a car door’s handle,
right hand followed by left, then gracefully open
the door with both hands
9-17
Hard and Soft Service Standards at Ford
 Appointment available within one day of customer’s
requested service day
 Write-up begins within four minutes
 Service needs are courteously identified, accurately
recorded on repair order and verified with customer
 Service status provided within one minute of inquiry
 Vehicle serviced right on first visit
 Vehicle ready at agreed-upon time
 Thorough explanation given of work done, coverage
and charges
9-18
Standards at Four Seasons
 Seven Service Culture
Standards
1.
2.
3.
4.
5.
6.
7.
Smile
Eye
Recognition
Voice
Informed
Clean
Everyone
 Core Worldwide Service
Operating Standards






Reservations
Hotel Arrival
Messages and Paging
Guest Room Evening Service
Breakfast
Room
Exceptions are permitted if
they make local sense
9-19