Chapter 11 - On Building Customer Loyalty Through Quality

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Chapter 11

On Building Customer Loyalty Through Quality

“To understand service quality and make quality management effective, we need
profound knowledge about the details and activities connected with the emergence of a
service. This presupposes interest in service design and service production.” – Everet
Gummesson

Outline:
I. Defining Customer Value and Satisfaction
a. Customer-Delivered Value
b. Customer Satisfaction
c. Customer Satisfaction versus Customer Loyalty
II. Relationship Marketing
III. Benefits of Customer Loyalty
a. Cost of Lost Customers
b. Resolving Customer Complaints
IV. The Link Between Marketing and Quality
V. What is Quality
VI. Benefits of Service Quality
a. Customer Retention
b. Avoidance of Price Competition
c. Retention of Good Employees
d. Reduction of Costs
VII. Capacity and Demand Management
a. Managing Capacity
b. Managing Demand
VIII. The Five-Gap Model of Service Quality
a. Gap 1: Consumer Expectations versus Management
Perception
b. Gap 2: Management Perception versus Service Quality
Specifications
c. Gap 3: Service Quality Specifications versus Service Delivery
d. Gap 4: Service Delivery versus External Communications
e. Gap 5: Expected Service versus Perceived Service
IX. Forecasting Market Demand
a. Defining the Market
b. Market Areas for Restaurants
c. Measuring Current Market Demand
d. Forecasting Future Demand

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