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Service Guarantee

The document defines a service guarantee as a commitment by a company to ensure customer satisfaction and specify what customers can expect from service and what the company will do if expectations are not met. A service guarantee typically includes a promise of service quality and an offer of compensation if quality is not achieved. The objectives are to set clear service standards, assure complete customer satisfaction, and provide measures for service quality and compensation when promised quality is not delivered.

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Sweelin Tan
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152 views

Service Guarantee

The document defines a service guarantee as a commitment by a company to ensure customer satisfaction and specify what customers can expect from service and what the company will do if expectations are not met. A service guarantee typically includes a promise of service quality and an offer of compensation if quality is not achieved. The objectives are to set clear service standards, assure complete customer satisfaction, and provide measures for service quality and compensation when promised quality is not delivered.

Uploaded by

Sweelin Tan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Service Guarantee

Definition
 Evans, Clark, and Knutson define a service guarantee
as … ‘a policy, express or implied, advertised or
unadvertised, that commits the operation to making its
guests happy.
 Service guarantee is a statement that clarifies what the
customers can expect from a service, and what the
company will do to rectify the situation if the service
does not meet expectations.

5-2
continue
 Hart, Schlesinger and Maher define a service
guarantee as ‘…a statement explaining the
service customers can expect (the promise)
and what the company will do if it fails to
deliver (the payout).’
  Callan and Moore (1998) state that, ‘a service
guarantee can be represented as a promise to
the customer and is often advertised as such.’

5-3
Objectives
 Sets Clear Standards- It prompts the
company to clearly define what it
expects of its employees and to
communicate that to them.
 Assuring complete customer satisfaction
Service Guarantee in a Service
Recovery Context
 To present measures for service quality
and to offer compensation in cases
when the promised quality is not
achieved.
Two Typical Elements:

(i) The firm’s willingness to engage in


behaviours considered desirable by
its customers
(ii) A compensation offer in case of

service failure.
Advantages

 Encourages purchase
 Positive word of mouth
 Customer loyalty
 Reduced price sensitivity to service
 Sets performance standards
 Boosts employee performance & morale.
Disadvantages

 Problems occurs
 Service is not recognized or desired
 Company reputation or image
 Customer delusive impression or
experience
 Service failure

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