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The Customer Interaction Process: Managing Customer, the Service Encounter and Service Recovery

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  • TANASE, George Cosmin

Abstract

Service interactions are next to customer relationships one of the primary value processes of a service provider. Due to the fact that in service situations value is created via the throughput of the customer through the service production process, and this throughput is realized in service interactions, these interactions are one of the major value drivers of a service firms value. As one of a service providers primary value processes, the interaction process aims at managing the service interactions by integrating the customer, providing the service in the service encounter and a recovery service in case of service failures. These three main value-enhancing sub-processes contribute differently to a service firms value by influencing both revenues and cost. Revenues are created first by the customers throughput through the service process, and secondly by preventing customer defections as a consequence of service failures.

Suggested Citation

  • TANASE, George Cosmin, 2013. "The Customer Interaction Process: Managing Customer, the Service Encounter and Service Recovery," Romanian Distribution Committee Magazine, Romanian Distribution Committee, vol. 4(4), pages 12-17, December.
  • Handle: RePEc:rdc:journl:v:4:y:2013:i:4:p:12-17
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    Keywords

    Service Value; Customer Behaviour; External Factors; Relationships; Cost Effects;

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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