Showing posts with the label prospect theory

Improving Service Delivery to Raise Customer Satisfaction

Developing strong service management within organizations is not easy. Some customers may like a particular approach while others will leave to other opportunities. The researchers Sivakumar, et. al. (2014) studied service failures and surprises to develop a model incorporating prospect theory to encourage positive service impressions.   Their work will delve in to frequency of service failures/delights, timing of these failures/delights, proximity of failures/delights, and the sequence of failures/delights.  It is difficult to understand the totality of service if one is only focused on failures. To get a better picture of the patterns of service perceptions among customers it is beneficial to look at failures, success, and why these things are occurring. To know what the company is doing well and what it is failing at will provide better opportunities to enhance what works and minimize what doesn’t.  Their model is based off of prospect theory. Prospect theory explains