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Fixing Service Failures
Chapter 13
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Service Failures: Types, Where, And Why
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Types of Service Failures
Service product failures Failure to meet explicit or implicit customer requests Failures caused by employee actions or inactions (continued)
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Types of Service Failures
Failures caused by other guests, random events, or circumstances beyond control of organization
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Critical Incidents During Service Encounters
Failures in service, itself Negative employee actions, attitudes, or behaviors Unsatisfactory employee response to service failure
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Dimensions of Failure Customer failure Where failures happen
Severity of failure and recovery
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The Importance of Fixing Service Failures
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Price of Failure Costs money to lose customer Lost revenue
Those who do not return Those who might have come but will not because of negative word-of-mouth (continued)
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Price of Failure Unhappy customers twice as likely to spread bad versus happy customers who spread good
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Customer’s Response to Failure
Service recovery Never to return Complaints Bad-mouthing organization Retaliation Worst-case scenario Avenger
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Value of Positive Publicity: Bad-Mouth versus Wow
Credibility People telling people Anonymous testimonials Evangelists Exceeding expectations Planning for failure
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Dealing with Service Failures
How recovery is handled Message to employees Example: British Airways (continued)
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Dealing with Service Failures
Looking for service failures Complaint as monitoring device Encouraging complaints Body language as complaint Do not forget to ask
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Recovering From service Failure
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How to Handle a Service Failure
Do something quickly Benefits for quick recovery: Reduces overall expense of retaining guests Less expensive to fix problem on-the-spot More likely guest will stay with organization
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How Customers Evaluate Recovery Efforts
Distributive justice Procedural justice Interactional justice Informational justice Interactional versus distributive versus informational versus procedural justice
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Service Recovery System Analysis
Identify failures and put in categories Assign reasons for each type for failure Determine why problem occurred Select appropriate recovery strategy Implement recovery Review recovery efforts Follow-up to see if successful
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Characteristics of a Good Recovery Strategy
Ensure failure is addressed quickly Communicate clearly to employees Should be flexible enough to accommodate different types of failures and different expectations
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Customer Defines Failures
Not making it better makes it worse Costs of failure to guests Making it right not being enough Being wrong with dignity
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Matching the Recovery Strategy to the Failure
Nature and severity Causes of failure Severity of Failure Relatively severe failure Apologize and offer red carpet treatment Apologize and provide help to extent possible Relatively mild failure Apologize and replace Apologize and extend sympathy Organization caused failure Guest caused failure Cause of Failure
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From Bad to Good Learning from failures Service recovery
From Ow! to Wow! Successful service recovery
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