Service Marketing Essay Example | Topics and Well Written Essays - 2000 words

Service Marketing - Essay ExampleHart (1990) stated that recruiting a new node costs five propagation than to keep current customers contented and content. This statement holds enormous value in every sense as organizations a lot try hard to keep customers happy by offering great servings. At the same time, organizations take aim service recovery tools that help in gaining customers loyalty and trust back. Service recovery tools often help in enhancing customers retention by properly responding to service failures. The assignment aims at highlighting the impact of service failure on the business on with developing a service recovery model base 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 expert service fai lure offering a reason to be dissatisfied and frustrated with the services being offered. The analysis would help in understanding and analyzing the ways through which service failure can be addressed using service recovery tools in an effective and efficient panache helping the organization to win customers trust and loyalty back. An Overview of the Organization Tiger Airways Australia is a low cost airlines based in Melbourne, Australia. It started its trading operations in the year 2007 with strong focus on domestic markets. The organization has been performing well but not that well to compete with other competitors because of serious problems pertaining to the services being offered. As per the Bureau of infrastructure, Transport and Regional Economics in Australia, Tiger Airways have consistently lower percentage of on-time arrival and way out with high percentage of cancellations. Tiger Airways also used marketing strategies to boost its sales figures and presence across t he country through an advertisement campaign named The crushed Fare Revolution. Tiger Airways have been hit by a number of criticisms pertaining to its services and can be considered as an ideal organization to probe the concepts of service failure and recovery. Concept of Service Failure When organizations offer services to customers, the only motive is to make them feel good and content with the offered services. Customers also have pre-conceived and experienced notions on services and when these notions do not match with the services being offered it is termed as a service failure. Service failure often frustrates customers along with making them change the service provider. It creates negative a negative impact on the business activities along with offering an edge to customers. It needs to be mentioned that service failure is bound to happen and organizations are supposed to be good enough to tackle service failures. Tiger Airways have been accused of poor customer service an d high rate of cancellation. Further, the support and guidance from the management is almost negligible that has reduced the satisfaction level of customers. The service recovery tools that could have been of great help in dealing with service failures have been discussed in the following part in an analytical manner. Service Recovery and its Importance