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Service Guarantee

The document defines a service guarantee as a promise made to customers about the level of service they can expect from a company and what the company will do if it fails to meet that promise. It then discusses how service guarantees are important for service-based companies to build customer confidence and discusses some of the challenges in guaranteeing service quality given its intangible nature. Finally, it outlines characteristics an effective service guarantee should have, benefits they provide companies, and different types of guarantees that can be offered.

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Evelina
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248 views

Service Guarantee

The document defines a service guarantee as a promise made to customers about the level of service they can expect from a company and what the company will do if it fails to meet that promise. It then discusses how service guarantees are important for service-based companies to build customer confidence and discusses some of the challenges in guaranteeing service quality given its intangible nature. Finally, it outlines characteristics an effective service guarantee should have, benefits they provide companies, and different types of guarantees that can be offered.

Uploaded by

Evelina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SERVICE GUARANTEE

By Annie
DEFINITION
“A statement explaining the service customer can
expect (the promise) and what the company will do it
if fails to deliver (the payout).
“A service guarantee can be represented as a
promise to the customer and is often advertised as
such”.
INTRODUCTION TO SERVICE GUARANTEE
• Service guarantees help service firms to infuse greater confidence among
consumers for their service offering.
• Many services require immense human involvement.
• Eg- IT fimrs serves for Bank and Airline reservation system assure extensive
guarantees.
• Domino’s offers a guarantee on time of delivery. If the pizza is delivered late ,
no charges are made for home delivery.

CHALLENGE
1. The challenge for the service firms, thus, is to heighten the service reliability and
implementation of service guarantee.
2. Service offerings are largely intangible in nature. Customers are thus unable to assess
the purchase outcome prior to experience, rendering the risk of possible customer
dissatisfaction very high.
CHARACTERISTICS
Guarantee to be effective it should be
• Credible-
Able to make customer believe.
• Simple-
That is acceptable and understandable.
• Meaningful-
The trust given to the customer.
• Reliable service-
Providing faster and flexible services.
BENEFITS
1. Sets Clear Standards for the Organisation.
2. Forces the Company to Focus on its Customers.
3. A Good Service Guarantee Studies the Impact on Employee Morale and Loyalty.
4. Immediate and Relevant Feedback from Customers.
5. Reduces their Sense of Risk and Builds Confidence in the Organisation for Customers.
TYPES OF SERVICE GUARANTEE

1. Specific Guarantee -
Commitment on specific attribute and performance, delivery time or price.
2. An Unconditional Guarantee-
Pure form of promises complete customer satisfaction (overall).
3. Implicit Guarantee-
As term suggested it is unwritten, unspoken guarantee, an understanding
between firm and customer.
4. An Internal Guarantee-
Promise or commitment by 1 part of organization to another to deliver its
product in a specified way or incur a meaningful penalty, monetary or otherwise.

EXAMPLE OF SERVICE GUARANTEE

https://www.restaurantbusinessonline.com/servic
e-guarantee
THANK
YOU

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