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Service Marketing By [Name of student] [Presented to] [Name of institution] [October 16, 2011] 1. Introduction The primary purpose of organizations is to offer products and services to the masses in an effective and efficient manner. Regardless of the precautions set forth to ensure effective services, organizations are tend to face some sort of service failure in the business and social environment.
Hart (1990) stated that recruiting a new customer costs five times than to keep current customers happy and content. This statement holds great value in every sense as organizations often try hard to keep customers happy by offering great services. At the same time, organizations have service recovery tools that help in gaining customers loyalty and trust back. Service recovery tools often help in enhancing customer’s retention by properly responding to service failures. The assignment aims at highlighting the impact of service failure on the business along with developing a service recovery model based on understanding and empowering customers. The organization chosen for this purpose is Tiger Airways Australia based in Melbourne, Victoria. In the past, Tiger Airways has received a number of complaints ineffective customer care service, flight delays and improper handling of grievances. This can be considered as a serious service failure offering a reason to be dissatisfied and frustrated with the services being offered. ...
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