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Unit 3: Analysing Profitability of Customers

Self Assessment Notes

Fill in the blanks:
12. Consumer complaint behaviour is also known as …………………….
13. Complaint has impact on the …………………… by the customer.

14. Consumer complaint behaviour is a …………………… process
15. …………………… is the measure of the extent to which fixed costs are being used in an
organization.



Case Study Service Failure and Recovery within an International
Airline

Purpose: This paper seeks to examine the effectiveness of internal processes of service
quality recovery for an international airline.
Design/methodology/approach: An action research methodology was adopted. The
research involved: a review of available service quality literature; the identification of
causes of failure/errors within the host company; the development of key lessons and
management guidelines.

Findings: It is argued that, for service recovery to be effective, it must be external (to the
customer) as well as internal (to the organisation). The need to incorporate employees and
not overlook their significance, power and influence on the delivery of quality service is
highlighted. Through comparison with another airline the findings re-assert that service
quality excellence can only be achieved through employee satisfaction, commitment and
loyalty as a result of senior management commitment, focus and drive.
Research limitations/implications: The methodology applied was appropriate, generating
data to facilitate discussion and from which to draw specific conclusions. A perceived
limitation is the single case approach; however, Remenyi argues that this can be enough
to add to the body of knowledge. For further investigation, there is an ongoing opportunity
for future research in the area of service quality, failure and recovery, as well as the service
quality gaps within the airline.
Practical implications: Key lessons and management guidelines for improving service
quality are presented.
Originality/value: The paper describes how an international airline has tangible service
quality failure and recovery systems in place, but fails to capitalise on the data and
information generated.
Questions:
1. How far was the approach helpful for the Airline?

2. What were the positive outcomes of implications they made or what could have
been?
Source: http://www.emeraldinsight.com/journals.htm?articleid=1500356

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