Management and Organizational Studies 2320A/B Chapter Notes - Chapter 10: Customer Service, Competitive Service

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Inconsistent: cannot be touched, tasted or seen, requires using cues to aid customers, atmosphere is important to convey value. Images are used to covey benefit of value. Inseparable production & consumption: production and consumption are simultaneous, little opportunity to test a service before use, lower risk by offering guarantees or warranties, after the service is performed it can"t be returned. Can be successful and increase customer loyalty- appeal to shoppers who want to move quickly and believe they can zip through checkouts faster by using machines. Retailers save on costs: self-service technology. Internet-enabled kiosks: can provide routine customer service, free employees to deal with more demanding customer requests and problems and reducing service variability. Internet has reduced the service variability in many ways. Inventory- perishable and can"t be stored in inventory for future use. The difference between what the customer really wants and what he or she will accept before going elsewhere.

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