Service guarantees: A strategic mechanism to minimise customers' perceived risk in service organisations

Kandampully, Jay and Butler, Liam (2001) Service guarantees: A strategic mechanism to minimise customers' perceived risk in service organisations. Managing Service Quality, 11 2: 112-120.


Author Kandampully, Jay
Butler, Liam
Title Service guarantees: A strategic mechanism to minimise customers' perceived risk in service organisations
Journal name Managing Service Quality
ISSN 0960-4259: 0960-4529
Publication date 2001
Sub-type Article (original research)
Volume 11
Issue 2
Start page 112
End page 120
Total pages 9
Editor J. Kandampully
Place of publication Bradford, West Yorkshire, England
Publisher MCB University Press
Collection year 2001
Language eng
Subject C1
350601 Hospitality Management
710602 Hospitality services
Abstract Service offerings are largely intangible in nature. Customers are thus unable to assess the purchase outcome prior to experience, rendering the risk of possible customer dissatisfaction very high. It is argued that the concept of service guarantees proposed by services management theory can be effectively utilised to reduce the perceived risk of dissatisfaction for the customer in service organisations. Additionally, it is suggested that service guarantees force management to undertake activities which elevate the superiority of the organisation in the eyes of the customer and, thus, the opportunity to transform one-time customers into loyal ones. The purpose of this paper is twofold: first, to illustrate how customers’ behavioural intentions can be influenced by the use of a service guarantee; and second, to outline a systematic process that can help service business managers to develop and implement an effective service guarantee. This research highlights the numerous benefits available to service organisations by utilising the service guarantee as a strategic tool. Some of the important management implications are also outlined.
Keyword Customer loyalty
Guarantees
Reliability
Risk
Service quality
Q-Index Code C1

Document type: Journal Article
Sub-type: Article (original research)
Collection: UQ Business School Publications
 
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Created: Tue, 14 Aug 2007, 16:44:09 EST