Importance of Customer Service

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Questions and Answers

Which gap indicates that service promises do not match delivery?

  • Gap 4 (correct)
  • Gap 3
  • Gap 2
  • Gap 1

What type of customers prefer to shop at locations that offer convenience and speed?

  • Exploratory customers
  • Specialty customers
  • Convenience customers (correct)
  • Shopping customers

How do customers primarily evaluate their retail service experiences?

  • By considering product range
  • By the store's location
  • By comparing prices only
  • Through their expected service quality (correct)

Which psychological factor can influence consumer behavior during shopping?

<p>Emotional state (C)</p> Signup and view all the answers

What is NOT an example of a retail customer service type?

<p>Customer satisfaction surveys (A)</p> Signup and view all the answers

Which dimension does NOT contribute to the expectations of service quality?

<p>Customer demographics (B)</p> Signup and view all the answers

What can be a reason for service performance gaps?

<p>Miscommunication of customer expectations (C)</p> Signup and view all the answers

Which approach enhances customer satisfaction through tailored experiences?

<p>Personalized service (C)</p> Signup and view all the answers

What is a main characteristic of customised service?

<p>Designed to meet individual needs (A)</p> Signup and view all the answers

Which type of service is characterized by high personal service but low procedural service?

<p>The Friendly Zoo (D)</p> Signup and view all the answers

What aspect of service involves established systems and procedures?

<p>Procedural aspect (D)</p> Signup and view all the answers

How does excellent customer service impact sales?

<p>Increases profits through repeat purchases (A)</p> Signup and view all the answers

What is a potential downside of standardised service?

<p>Limited customization (C)</p> Signup and view all the answers

What term refers to the risk associated with the source of service?

<p>Source risk (B)</p> Signup and view all the answers

What might be a notable trait of a business described as 'The Factory'?

<p>Excels in procedural service (B)</p> Signup and view all the answers

Which statement best describes the relationship between customer relations and customer service?

<p>Customer relations enhance the effectiveness of customer service (A)</p> Signup and view all the answers

Which of the following is NOT considered a customer service offered by retailers?

<p>Market research (A)</p> Signup and view all the answers

What is Gap 1 primarily associated with?

<p>Not knowing what customers expect (C)</p> Signup and view all the answers

Customers often assess stores based on which of the following?

<p>Word-of-mouth (A)</p> Signup and view all the answers

Which dimension is NOT listed as part of service quality?

<p>Innovation (C)</p> Signup and view all the answers

What do customers' perceptions of your business primarily depend on?

<p>Service delivery (D)</p> Signup and view all the answers

Which gap relates to the mismatch between promises and actual service delivery?

<p>Gap 4 (D)</p> Signup and view all the answers

Which of the following is NOT a part of identifying service problems?

<p>Providing detailed product descriptions (A)</p> Signup and view all the answers

What role does upward communication play in market research orientation?

<p>Facilitates customer feedback (B)</p> Signup and view all the answers

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Study Notes

Importance of Customer Service

  • Good customer service leads to happy customers, repeat purchases, increased sales and better profits.
  • Customer service is the procedural and personal interaction retail companies have with customers.

Service Business Types

  • The Factory - Good at procedural service, bad at personal service. Motto: "We don't care."
  • The Freezer - Low in both personal and procedural service. Motto: "You are a number, we are here to process you"
  • The Friendly Zoo - Bad at procedural service, good at personal service. "We are trying hard, but we don't really know what we are doing."
  • Quality Customer Service - Excellent in both personal and procedural dimensions. "We care and we deliver."

Customer Service Approaches

  • Customised Service - Designed to meet individual customer needs and make them feel special. Can be inconsistent.
  • Standardised Service - Designed to improve consistency and quality. Retailers use standardised processes.

Customer Services Offered by Retailers

  • Customer services are services retailers do not charge for, that support the core products and services provided by the retailer. Examples include:
    • Financial Services
    • Delivery
    • Returns and Repairs
    • Parking
    • Bathrooms
    • Extended Store Hours

Customer Perceptions

  • Customer perceptions about a business are shaped by the service delivered.
  • The customer's perception of service delivery may not be reality, but it will govern their opinion about the company.

Dimensions of Service Quality

  • Dimensions of Service Quality: Tangibles, Reliability, Responsiveness, Competence, Courtesy, Credibility, Security, Access, Communication Understanding the Customer, Perceived Service Quality, Expected Service
  • How customers evaluate stores: Word of mouth, personal needs, past experiences, external communications.

Identifying the Causes of Service Gaps

  • Gap 1: Not knowing what customers expect.
  • Gap 2: The wrong service/quality products.
  • Gap 3: A service delivery gap.
  • Gap 4: Promises that do not match delivery.
  • Gap 5: Service quality

Market Research Orientation

  • Key factors influencing service gaps:
    • Upward communication (levels of management)
    • Management commitment
    • Goal setting
    • Task standardisation
    • Perception of feasibility
    • Teamwork
    • Employee job fit
    • Technology job fit
    • Perceived control
    • Role conflict/ambiguity
    • Horizontal communication
    • Propensity to over-promise

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