Page 124 - DMGT522_SERVICES MANAGEMENT

Unit 5: Market Positioning

characteristics to these fail points which the service marketer would do well to observe and Notes
analyse for its implications. They are:
1. The potential for operations malfunction is high.
2. Results of the malfunction are very visible to consumers.
3. System malfunction is regarded by consumers as particularly significant.

In order to avoid these, the service firm should take into consideration the customer defined
service standards. Based on these standards, service should be redesigned.

Figure 5.5: Process for Setting Customer-defined Standards

1. Identify existing or desired service encounter sequence.

2. Translate customer expectations into Behaviours/ Actions.

3. Select Behaviours/ Actions for Standards.

4. Set Hard or Soft standards.

5. Develop
Measure Hard Feedback Soft Measure by
by Audits Mechanisms. Transaction-
or based
Operating Surveys.
Data.
6. Establish Measures and Target Levels.

7. Track Measures against standards.

8. Provide Feedback about Performance to employees.

9. Update Target Levels and Measures.

Examples of Hard Service Standards are:

Number of Complaints Received
Number of Warranty Claims

Number or Dollar Value of Sales
Return on Assets
Number of Repeat Customers
Number of Infections per Surgery
Number of Law Suits Filed

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