1.

Case Study- Answer the questions

Hero Motocorp 'World No. 1' Two-wheeler Company announced that it had recently
achieved a landmark member base of more than 2 million customers for its "Passport
Programme". Extending across 1000 authorized Hero dealerships, the program has
now become India 's largest Customer Relationship Management (CRM) Program.
The Hero MotoCorp Good Life Program offers great rewards, benefits and a range of
exciting gifts, chosen especially for the customers. Rolled out in 2001 ,with its apt
tagline "Rishta Dil Ka", the Passport Programme is a strong platform for the
company to build long-term relationships with its customers, beyond the point of sale,
and communicate its brand image of 'trust' and 'reliability. It is a unique initiative
open to the owners of Hero motorcycles. The program offers many tangible and
intangible benefits to both the customers as well as to the dealers. Members earn
points for incurring expenditure at the Hero dealership/workshop, which can later be
redeemed against benefits. On the occasion of the commemoration of the 2 million-
passport program milestone, Mr. Pawan Munjal, Managing Director said, "At Hero
our endeavor is to offer the best in product quality to our customers resulting in
highest levels of customer satisfaction. The Passport programme not only builds
enduring relationships with our customers but also offer them some 'extra value',
beyond just the tangible benefits of our products. This milestone only reaffirms our
customers' faith in us, which has been pivotal in the company's growth" sharing
similar sentiments, Mr. Atul Sobti, Executive Director Business Operations said,
"The Passport Program represents a fundamental change in looking at the customer as
a long-term asset rather than a mere target for sales transaction. This landmark figure
of 2 million members reaffirms Hero Honda's commitment to be a customer-focused
company, continuously striving to provide enhanced value for money to its customers.
One of the most significant benefits of this program is a free personal accident policy
worth Rs. 1 lakh. Insurance claim of over Rs. 6 crore has already been disbursed to
dependent families, exemplifying Hero Honda's concern not just for the safety of its
customers, but also their family members.
With the help of this program, the company has already received over 900,000
referrals thus also giving a fillip to sales through favourable word-of-mouth. Result
McCann has been Hero Honda's partner in this initiative right from the beginning.
With a dedicated team of more than 100 people, Result McCann looks after the entire
back-end operations, from creating and maintaining customer records, to tracking
points accumulation, to providing insights about the performance of the programme.
The team has also developed special softwares for use at different stages of the
programme. Passport processing and dispatch is undertaken at the passport-processing
centre on a day-to-day basis. Data processing, bulk mailing and dispatch of gifts and
promotional material to dealers are all managed efficiently by the agency, contributing
significantly to the success of the programme
The Passport Programme membership entitles the customer to several other benefits
and privileges such as ,participation in the Winner of the Month draw which offers the
four winners a Hero Splendor free or Rs. 40,000 cash as per choice,special rewards
and discounts an accumulation of specific points, against purchase of spares
accessories and service at the Hero Authorized Dealerships/ Service Centers . The
member can earn bonus points even when he visits the dealership for a free service.
Invitations to exclusive events such as movie shows, musical nights, etc. Participation
in contests through the quarterly newsletter, ' Suhana Safar' ,which also keep the
members updated on latest developments in the company, new product launches,
exclusive offers from other companies etc

Answer the following questions.
a) How does Hero Goodlife Program emphasize emotional and social connect with its
customers?
b) Can financial and social bonds tie the customer permanently to the firm?
c) What are the benefits for Hero Moto Corp by retaining its customers with this CRM
program?
d) How did Hero Goodlife Program become India 's largest Customer Relationship
Management (CRM) Program ? What are the requirements for a successful and effective
CRM Program?

2. Company Complaint Letter & Response Analysis. Each group will submit a
copy of the letter of complaint submitted to an organization from which the
student has received less-than-satisfactory experience with the companys service
offering or a sample complaint letter from the internet with a review.

3.Service Encounter Journal and Paper. Each group will submit one SEJ
(Service Encounter Journal). It will include the record of 10 journal entries
concerning service encounters that the group members experienced.

4.International Service Watch. Each group will be required to find (watch for)
one article in the current business press that addresses services marketing issues in
an international context. The assignment involves writing a short paper discussing
how this article relates three services marketing concepts examined in the course

.
5. New Service Development. Students are asked to develop a new service
with services marketing strategies. This could be a new to the world
service or a modification to an existing service.

6. Case Analysis. Each group should submit one case study on services
marketing with analysis.The primary requirement is a written summary of
the case.

7. Service Blueprint. Each group is required to construct a detailed service
blueprint for a particular service provider. The assignment will also involve
writing a short paper discussing how the blueprint might be used to improve
marketing and operations in the organization.

8. Exercise to Identify Service Attributes- Choose a services industry and
spend 10 minutes brainstorming specific requirements of customers in each
of the five service quality dimensions. Be certain the requirements reflect
the customers point of view.
9. Describe the services provided by a firm you do business with (your bank,
your doctor, your favorite restaurant) on each of the dimensions. In your
mind, has this organization distinguished itself from its competitors on any
particular service quality dimension?
10. You are to use the Critical Incident Technique to gather data about service
from a sample of students (2 Students) .Then your team is to analyze the
data and submit a report.
11. . Describe a remote encounter and a face-to-face encounter that you have
had recently. How did you evaluate the encounter and what were the most
important factors determining your satisfaction/dissatisfaction in each case?
Online and offline stores ( Either clothes ,books or electronics retailer)
12. Read the PDF File on J.D. Power Asia Pacific 2013 India Customer
ServiceIndex (CSI)StudySM and write a review on CSI.
13. Choose an example of an ideal or a very bad service encounter that you
have had recently.What was the source of dissatisfaction? Can you
categorize the encounter according to the four common themes?
(Recovery,coping,adaptability and spontaneity)
14. Choose a service you are familiar with. Explain the service offered and
develop a good service guarantee for it. Discuss why your guarantee is a
good one, and the benefits to the company of implementing it.
15. Think of a service provider you are loyal to. What do you do (your
behaviors, actions, feelings) that indicates you are loyal? Why are you loyal
to this provider?
16. Consider the Institute you currently attend. Map out the service encounter
sequences for that service with a service blue print. What are the examples
of hard standards, soft standards and one-time fixes that would address
students requirements?
17. Write short notes with examples on the current issues involving customer
service expectations
a) What does a service marketer do if customer expectations are unrealistic
b) Should a company try to delight the customer
c) How does a company exceed customer service expectations?
d) Do Customer Service expectations continually escalate?
e) How does a service company stay ahead of competition in meeting customer
expectations?

What is the difference between technical and interactive service skills? Provide
examples (preferably from your own work context, or from another context with
which you are familiar). Why do service employees need training in both?

18. Is empowerment always the best approach for effective service delivery?
Why is employee empowerment so controversial?
19. Hospital workers allowed to spend $1,000 a year to improve patient stays
By Craig Welch
COEUR dALENEKootenai Medical Center plans to give all 1,000 of its
employees the spending power of a hotel housekeeper. But not just any
housekeepera Ritz-Carlton Hotel housekeeper. Starting Nov. 1, KMCs
top brass will let every hospital worker spend up to $1,000 a year to improve
patients or family members stays or to help resolve customer complaints.
The million-dollar move mirrors a program at the luxury hotel, which
empowers all its employees to spend money without a managers approval.
The idea: Keep customers happy.
We do everything we can to try to never lose a customer, said Amber
Vierra, a spokeswoman for the Ritz in San Francisco. Joe Morris, the
hospitals chief executive officer, thinks that is a worthy goal for a hospital
as well. Morris stole the idea from author and business guru Tom Peters,
who lectured last month at Eastern Washington University.
He told us about a housekeeper named Rosa in charge of the second floor at
the Ritz-Carlton who had the authority to spend a couple of thousand dollars
to please a guest, Morris said. Morris ran with the brainstorm. Under his
new program, radiologists could knock down a customers bill when its
clear the patient had been overcharged. A janitor could buy pizza for family
members waiting for grandma to come out of surgery. A dietician could pay
for a cab ride for an elderly woman who cant find a ride home.
People want to have as much control of their work as possible, Morris
said. Giving them authority to spend money is a symbolic one, and it takes
care of needs of patients and family. That sends a good message to folks.
Currently, he said, patients with billing complaints go through a billing
department. It may be months before the complaint is resolved. Other
examples abound. Sometimes a person flies in to visit a relative and the
admitting desk clerk says theyre not in here and we later discover they are
in the hospital, Morris said. Under the program, Morris said, a receptionist
could apologize to Uncle Joe and perhaps pay for his hotel room.
At the Ritz-Carlton in San Francisco, receptionists frequently eliminate
phone charges if customers cant remember placing the call, said Vierra. If
another guest is making noise next door, we would relocate the guest, she
said. If we didnt have a room, wed offer them another nights stay free.
The hotel program aptly is named instant guest pacification, Vierra said.
Morris is still working out some of the finer points of the hospitals program.
He wants employees to fill out reports explaining the expenses so the
hospital can better trackand rectifycomplaints.
And while 1,000 employees spending $1,000 each could cost $1 million a
year, Morris says he isnt concerned. Everyone is not going to spend all the
money, he said. Besides, if theyre correcting a mistake or problem, its
something we should do anyway. His biggest concern: Employees might
be reluctant to spend the money. I might have to do it myself just to show
them its OK, he said, laughing.
a) Discuss the potential benefits of the program of empowerment at KMC,
and/or discuss potential drawbacks.
b) Think from a services marketing perspective whether or not KMCs
program is a good idea. Defend your opinion.