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HTH102 Service Professionalism Mid-term winter 2001 Question One As with every purchase decision individuals prefer to do business with people they like with people who seem genuinely interested in them and with people who really care about their concerns Today it is more important than ever that businesses recognize and appreciate that they must build rich quality relationships with their customers and must orient their businesses around assuring outstanding customer delight By increasing customer delight and quality of the service to the customer leads to repeat sales there is a lower risk of doing business with the organization by delivering the service right the first time more business gets generated through positive word of mouth lower acquisition costs to attract new customers lower cost of delivering the service for the organization as the customer gains greater familiarity with the service The research says that the average person who has a complaint tells 9-10 people about it 13 tell more than 20 people By delivering great customer delight this tremendous bad word of mouth is turned into a positive and promoting situation Also according to TARP Technical Assistance Research Programs Washington DC Companies who are service-leaders typically charge 9 more than their competitors grow twice as fast as their low service competition and improve their market share by an average of 6 per year The bottom lime is that customer delight and satisfaction largely increases customer loyalty the customer complaints are at a minimum and it helps a business gain competitive advantage Question Two Disconfirmation is a very powerful predictor of satisfaction Positive disconfirmation is essentially when perceived quality is higher than expected Which will usually result in satisfaction and will almost always result in the will expectation being raised RETAIL EXAMPLE POSITIVE DISCONFIRMATION Lets say that Mike heard about the new Eatons store opening
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