Chapter 17

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Table of Contents

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Figure 17-1 The Direct Relationship between Service and Profits

How Quality Generates Profits

Evidence of relationship between quality and profits

However

What is ROQ?

Measuring the Effects of Quality

Offensive and Defensive Marketing

The Value of New Customers (Offensive Marketing)

Figure 17-2 Offensive Marketing Effects of Service on Profits

Why Improved Retention (Defensive Marketing) Increases Profits

Secondary issues

Figure 17-3 Defensive Marketing Effects of Service on Profit

Figure 17-5 Perceptions of Service, Behavioral Intentions and Profits

Three Issues Emerge---

Assumptions of 80/20 Rule

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Service Elements

Figure 17-8 The Key Drivers of Service Quality, Customer Retention, and Profits

Measurement Issues

The Balanced Scorecard

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