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Summary BEM 120: CHAPTER 2 NOTES
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BEM 120 CHAPTER 2 NOTES :)
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EVALUATION QUALITIESCHAPTER 2 • qualities indicate qualities present in service
value: from customer service to satisfaction that can be evaluated by customer
and loyalty o search qualities (colour, fit, smell)
§ attributes customer can
BENEFITS OF PROVIDING BETTER SERVICE evaluate prior to purchasing
• increased market share service
o improved service quality can entice § tangible products are high in
competitor’s customers to switch, search qualities
which increases market share § services rarely display
o matching superior service is difficult attributes in respect of core
• improved value proposition service
o adding superior customer service to o experience qualities (gardening)
superior service increases § attributes customers can
customer’s perceived value evaluate during + after
o customers make future purchasing consumption process
decisions based on perceived value § customers rely on expectation
• financial impact of how they want to feel when
o improved financial performance is using services together with
outcome of higher sales income & technical outcome
lower costs due to improved o credence qualities (education)
efficiency § attributes customers find
• to gain marketing benefits difficult to evaluate even after
o quality accreditation or awards are consumption
used by organisations to substantiate § customers will never really
marketing communication claims know whether service was
o being publicly recognised for good/poor quality
delighting customers has potential to
attract new customers 3 LEVELS OF VALUE FROM CUSTOMER’S POV
• perceived quality of service delivered
INCREASING VALUE • expectations about characteristics of service
• difference between customer’s perception of • perceptions of actual service delivered
benefits received from purchasing &
consuming service + customer’s perception ROLE OF CUSTOMER SERVICE IN VALUE CREATION
of costs incurred in exchange for service • customers will go to places where they feel
• customers will buy service when: welcome
o benefits of exchange > cost of • guidelines to develop customer-centred
exchange culture:
o service offers superior value o customer service systems
compared to other alternatives in § design service delivery
market systems from customer’s pov
o customer service commandments
VALUE LEVELS § ask customers what they want
• value customer derives from service § have effective systems in
• value customer derives from quality of place
supporting service act § under-promise & over-deliver
§ the answer is always yes
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