Managing Services

Think about four different types of company you patronize (e.g. public transportation, bank, restaurant, hairdresser, etc.), and reflect upon the following three questions: (i) Are you satisfied/delighted with this provider and why/why not? (ii) Are you also loyal to these companies and how do you show this loyalty behaviour and (iii) Are you showing any type of customer engagement behavior (such as WOM) towards these companies?

The Net Promoter Score is a simple and useful metric to capture loyalty intentions and get an indication of the firm’s ability to grow, but firms might benefit from looking at other metrics as well to gain a better understanding of their ability to grow. What kind of metrics would you use to better understand the ability of a service firm to grow?

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