Service Guarantees: Can they provide a competitive advantage?

Ryan,Michael (1996) Service Guarantees: Can they provide a competitive advantage? The University of Queensland:

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Author Ryan,Michael
Title of report Service Guarantees: Can they provide a competitive advantage?
Formatted title

Publication date 1996
Place of publication The University of Queensland
Total pages 135
Language eng
Subjects 1503 Business and Management
Formatted abstract
Understanding customer expectations is a prerequisite for delivering superior service, Customers compare their perceptions and expectations of reliability, recovery and fairness when judging a firm's service. The service-profit chain provides the framework that establishes the relationships between profitability, service quality, customer loyalty, employee satisfaction and productivity.

As competition grows more intense in the telecommunications services industry, the introduction of a law that requires carriers to provide service guarantees is a challenge to improve operational efficiency, employee morale, client retention and customer service, Although customer satisfaction legislation is not a reality yet, service guarantees will target billing, fault repair and connection times.

This research project attempts to understand the relationship between customer expectations, productivity and competitive advantages when an extraordinary service guarantee is implemented, Service providers can influence customers' expectation levels by the explicit and implicit service promises they make, a key approach to managing expectations is to manage the promises by implementing a well written extraordinary service guarantee.

One obvious element of a strong service guarantee is it lowers a customer's estimation of the risk of making a purchase. An extraordinary service guarantee can help differentiate a service provider from its competitors and in the process grab a significant amount of market share.

The result of this study indicates that an extraordinary service guarantee can act as a catalyst for and lay the foundation for a competitive advantage. Customers dissatisfied with a service can invoke the service guarantee and receive consideration for the burden they have endured. When executed well, service guarantees can symbolise a service provider's commitment to fair play with customers and facilitate competitive differentiation. The extraordinary service guarantee is :- Unconditional, Easy to understand and communicate, Meaningful, Easy to invoke and quick to collect.

Document type: Research Report
Collection: MBA reports
Citation counts: Google Scholar Search Google Scholar
Created: Mon, 13 Dec 2010, 16:10:19 EST by Mr Yun Xiao on behalf of The University of Queensland Library