Manufacturers need to show greater commitment to customer service

NORTH- HOLLAND

Manufacturers N e e d to Show Greater Commitment to Customer Service William G. Donaldson In order to improve their competitiveness, firms are being advised to be more responsive to customer needs, and there is evidence that customer service is becoming one of the key management issues of the 1990s. This article examines what manufacturing companies in the U. K. are doing in terms of customer service compared with managerial guidelines in the literature. The key concepts that have been advocated to make organizations more responsive and customer-driven are identified, and the extent to which this advice is followed is evaluated by conducting an empirical study of manufacturing companies. This comparison between what is preached in the literature and what is practiced by managers suggests that although managers may pay lip service to customers, their actions fall a long way short of what

Address correspondence to William G. Donaldson, Department of Marketing, University of Strathclyde, Stenhouse Building, 173 Cathedral Street, Glasgow G4 0RQ, UK.

is required to be a customer-driven firm. The managerial implications are discussed.

INTRODUCTION Manufacturing industry has undergone something of a quality revolution. During the 1980s, quality improvement became synonomous with improved sales and profit performance, confirmed by evidence from the PIMS database that positively linked quality with profitability [1]. Companies have embraced quality as a key ingredient in their management philosophy [2]. After the initial euphoria of "getting it right, first time" total quality management (TQM), and zero defects, the focus has moved to a more embracing idea of quality as the delivery of customer satisfaction [3]. Firms are now advised to be more responsive to customer needs, and there is evidence that customer service is becoming one of the key management issues of the

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1990s [4]. Schemes such as the Malcolm Baldridge Award and the European Quality Award heavily emphasize customer-based measures of quality. A company should have in place a means to evaluate customers' purchasing criteria, measure customer satisfaction on these dimensions, and compare their ratings with those of their competitors. Any existing gaps among the perceptions of management, staff, and customers on these dimensions should be corrected by improved performance and/or improved communications and internal policies. Externally, market research is helpful in identifying customer-based attributes and a firm's competitiveness on selected dimensions that can explain a firm's position in terms of competitive advantage, strategic focus, and in delivering customer satisfaction. Such a process is one of constant measurement and renewal, and many examples suggest that for an organization to change from a traditional existing operation to a more customer-focused one requires a radical approach, perhaps a change in management and certainly a change in attitude. Evidence of a link between a more marketingoriented, customer-focused approach and success has been confirmed [5] and is, of course, intuitively appealing to marketers. As part of this study, in-depth interviews were held with a number of chief executives in manufacturing companies. The growing importance of service to their businesses was confirmed as the following comments illustrate: Adopting and pursuing service strategy is critical in the markets that we are in. There is price competition naturally, but if your product doesn't work to a certain amount of reliability and you can't offer a service back-up to go with that product then you won't get the order. Service is absolutely critical for the survival of the company (pump manufacturer). Another company reports: Whereas before manufacturing skills were one of the main things for original equipment manufacturers, it's no longer just the manufacturing, it's the response to the end user or end customer. So, you might be the best manufacturer in the world but if you can't respond to customers' needs you are not going to survive (electronics supplier). However, not everyone views service as the strategic core of their business:

Service is a very important function in our business. Our Customer Service Department is treated as a cost center, and the budget for the center is distributed toward the Technical Department (electronic company). Others see service as reactive rather than a core activity: Customer Service means, as far as we are concerned, providing customers with a point of contact after sales have been concluded so that they can ask for progress information or we can deal with any technical problem (steel company). From these brief statements it is clear that firms differ in their approach, commitment, and execution of activities in serving their customers. To some it is a cost, to others a function, whereas others view service as the key business activity. What then is required for a firm to provide service and be customer-driven? A review of the literature suggests many characteristics, some of which are highly specific such as free phone, free design, and product guarantees, to the more generalized ideas of organizational commitment and culture. For example, the Malcolm Baldridge Award allocates 30% of the total examined categories to be assessed in terms of providing customer satisfaction (6). In this article, rather than encompass every possible dimension, the characteristics of a customer-driven company are distilled into seven key areas and, by means of an empirical survey of manufacturing industry, the extent to which these characteristics are present in assessed. The results suggest that a gap exists between what the literature says should be done and what is being done, and an even greater gap exists between what managers are saying and what they are actually doing.

RESEARCH OBJECTIVES The main objectives of this research were to assess whether manufacturing firms were, in practice, following the guidelines from the literature on being customer-driven and to assess managerial attitudes in these firms to customer service issues, and to identify differences in approach. The managerial guidelines are expressed as seven testable propositions.

Proposition 1: The existence of a written customer-based mission statement is one characteristic that differentiates a customer-driven firm from others. BILL DONALDSON is a Senior Lecturer at the University of Strathctyde, Glasgow, and is currently Director of the Honours Programme in the Department of Marketing.

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Many companies today have a mission statement that reflects the purpose of their business and commitment to their customers. A mission statement is not a vapid platitude but " . . . an enduring statement of purpose that distinguishes

one organization from similar e n t e r p r i s e s . . . (and as) a declaration of an organization's reason for being" [7]. The mission statement is but one indicator of the importance of corporate leadership and top management commitment to, and involvement in, superior customer service. Such a statement should encourage management debate to allow effective articulation of the organization's purpose and to serve as a device for ensuring that strategy formulation remains within the objectives of the firm, acting as an integrating philosophy to guide planning, objective setting, and performance evaluation. Firms with a mission statement are more likely to conduct customer surveys to measure customer service and are more likely to use customer service as a weapon against competition [8, 9]. The study investigates how many companies have a mission statement and its relationship with service orientation, using five statements distilled from the literature. These statements measure the extent firms exhibit belief in superior quality and service, set service levels higher than competitors, ensure employee involvement, obtain customer feedback, and measure service performance.

Proposition 2: Customer-driven firms will embrace more formal market and customer service planning. A mission statement is an indicator of a firm's intent and commitment. To implement the service and customer orientation expressed in its corporate mission requires formal planning by management [10]. The customer-driven organization will have identified customer requirements, decided how best to satisfy these requirements, and consequently translated these actions into a meaningful policy or plan. However, the extent of planning can be difficult to evaluate, ranging from a simple audit or financial budget to detailed marketing operations plans. In this survey an evaluation is made as to whether companies have a written marketing plan, whether this incorporates customer service, and whether companies have a written customer service plan.

Proposition 3: Customer-based firms put customers first. Although customer service can be viewed as both a philosophy and an activity, finns are interested in sales, growth, and profitability. The reasons for the increase in service activity are therefore of interest. Probably the most important benefit claimed for pursuing an intensive customerbased strategy is a sustainable competitive advantage. In an effort to establish differentiation, customer service can be a distinguishing feature and a source of leverage. Several authors have proposed that customer service is emerg-

ing as the best tool to use in planning for a sustainable competitive advantage [11-14]. In crowded and competitive markets, cost and technology improvements may fail to make a lasting or significant impact on an organization's cost leadership or differentiated competitive position [15]. Recent advances in quality management, and cost savings achieved as a result of effective materials management, will not continue to allow differentiation of products along a price-quality axis [16]. As customer expectations continue to increase, demands for service-related activities must also grow. The motivation behind a firm's service activities is evaluated based on the relative importance as to whether comparties are seeking a competitive advantage, customer retention, defending against new entrants, pursuing improved profitability, or as a means of survival.

Proposition 4: Customer-driven firms are more committed to quality and service. Service also gains in strategic importance as a result of the link with total quality management, and, in the U.K., this is expressed directly in meeting or exceeding the requirements of B.S.5750 [17]. The outcome is that product quality and service quality should be combined to establish and maintain a strategic position whether pursuing market penetration, development, or diversification strategies [18, 19]. In addition, it is necessary to evaluate if service is part of the marketing strategy, if management believes quality should be higher than competitors, and to measure commitment to s e r v i c e - also, to assess to what extent this quality and service reflects customer needs. Further, it is reported on who in the organization is responsible for service, to whom this person reports, and whether regular meetings are held on quality and service issues [20].

Proposition 5: Organizational integration and people involvement is a characteristic of customer-driven firms. A mission statement embracing customer service, top management involvement, and commitment to quality are all important, but implementation can only come from the people in the organization understanding the objectives set and meeting the standards required. This requires management of people and systems to serve the customer [21]. Many people within an organization can affect customer relationships, and members of staff must be aware of expected standards and customer needs. In the service industries it has been suggested that all employees are parttime marketers, capable of influencing the customer relationships that ultimately determine how successful the 423

Service is absolutely critical for business survival. organization is in the long-term. In some manufacturing firms, e.g. shipbuilding, relatively few employees are in contact with customers, or need to be. Nevertheless, there is still a need for an integrated organization that shares a common commitment to quality and ultimately to customer satisfaction. This has been referred to as internal marketing that focuses on treating fellow employees as internal customers and their jobs as internal products [22]. By striving to gain the commitment of employees, internal marketing is a means of developing a corporate culture that places the customer first. Keeping employees informed, trained, and rewarded for service excellence can achieve management objectives and competitive advantage [23]. This is investigated in this study by assessing whether managers perceive that their systems are customer-based, if employees are trained to be customer-oriented, and rewarded and promoted on the basis of service performance.

Proposition 6: Customer-based firms invest in customer research and feedback. Customer service, like any other activity, should reflect customer requirements and be research-based. Some authors suggest that with more discerning customers and market segments becoming smaller, this need for research to customize the offer is all the more acute [24]. Resources will not be optimally allocated if service is under- or overprovided. If an organization does not fine-tune its service to specific customer requirements then an under- or overemphasis may be placed on individual service components out of line with customer expectations [25]. Although formal market research techniques can provide great insight on customer needs, informal research and a variety of customer feedback sources should also be used. This reflects the organization as one that is obsessive about knowing customer requirements. To assess the way firms obtain feedback from their customers and build their relationship, objective or hard dimensions of service-such as the use of a free phone number and post-order questionnaires-are assessed with subjective, or soft, dimensions such as the willingness to work closely with customers and varying service levels for different customers.

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Proposition 7". Customer-driven firms set and monitor service standards. An organization's service performance cannot be determined without measuring it. Only by comparing organizational opinions with those of internal employees, and especially customers themselves, can confirmation or refutation of service effect and of delivered performance be made. Deciding on the basis of appropriate measures is no easy task [26]. An organization that is confident about its service delivery capability can influence customers' expectations of its performance. It is imperative that only a level of service that can be consistently performed should be communicated [27]. Communication messages are not always easily controlled, because messages to the customer concerning service quality arise from diverse sources such as telephone answering, literature, surroundings, and so o n some of which result in signal confusion for the customer. Communications can shape customer expectations, but all relevant aspects of an organization's service performance should be monitored before being communicated to customers as a consistent and coherent message. Again, to assess this, five objective dimensions of standards for quality and service are combined with a number of attitude statements concerning setting and monitoring standards.

METHODOLOGY To formally assess these propositions, an empirical study was undertaken using the database of manufacturing firms held by the Scottish Council for Development and Industry. This is a complete and updated list of all the manufacturing companies in Scotland. Only those firms with more than 50 employees were considered, and a representative sample was selected based on an equitable distribution by size and standard industrial classification. Scotland has a slightly higher proportion of firms in electronics, food and drink manufacturing, and a higher proportion of sales exported, than the U.K. as a whole, but the samples should also be representative of U.K. manufacturing. The postal questionnaire was the only viable instrument to cover such

D e m a n d for service-related activities will grow. a wide range of respondents given the number of variables to be tested.

TABLE 1

Dependent Samples of Written M i . i o n Statement

Questionnaire Design A number of dimensions to assess service, including some objective measures such as plans, complaints procedures, freephone, etc., were combined with the subjective assessment of service orientation using a 5-point Liken scale (strongly agree to strongly disagree) covering some 30 items suggested from the literature. The extent to which this range of managerial advice is practiced in the manufacturing industry is then evaluated. The final questionnaire contained 31 questions covering 108 separate items.

Response The key respondent was the managing director, or equivalent. Out of 478 firms contacted, there were 207 responses (43 %) of which 180 usable responses were used in the data analysis-a response rate of 38%. Checks were made to identify any differences between early and late responses, and a telephone survey of a sample of nonrespondents was undertaken to identify any variations on key dimensions. No significant differences were found by size or industry type or on key descriptive variables. There is always the possibility that respondents were more interested in service aspects than were nonrespondents, although no evidence was found to support this assertion.

Method of Analysis Responses to the questionnaires were analyzed using the SPSS/PC+ Statistics 4.0 package. This analysis ranged from very basic univariate statistical analysis to describe the sample and its characteristics in terms of size, industrial classification, type of products, etc., to the use of more sophisticated statistical techniques. Simple t-tests were used to compare groups of respondents for this analysis.

RESULTS AND ANALYSIS A Customer-Based Mission Statement Whereas some would argue that mission statements are merely the trappings of a service orientation or culture,

Group a

Mean

SE

t-Value

Set service levels higher than competition

1 2

1.8305 2.1774

0.065 0.116

-2.82 b

Employees trained to be customer-oriented

1 2

2.2203 2.5161

0.070 0.125

-2.23 c

Belief in superior quality and service

1 2

1.8871 2.1102

0.089 0.065

-2.03 c

a Group 1 consists of those with a written mission statement, group 2 consists of those without. b Significant at .01. c Significant at .05.

our review indicates that they are one characteristic of service and may be indicative of differences, whether substantial or not, between high service providers and others. Of the companies surveyed, 65 % claimed to have a written mission statement. Using statistical t-tests, we assessed whether any differences existed between those who had a written mission statement, and those who did not. The results (see Table 1) suggest that there are differences between those with a written mission statement and those without. Those firms with a mission statement exhibited a belief in superior quality and service, had employees trained to be customer-oriented, and set service levels higher than those of their competitors. Two other dimensions, the extent to which feedback from customers was encouraged and the monitoring of standards, was not significant. Three of the five dimensions were related at a significant level, and we suggest that a mission statement is a characteristic of a service orientation.

Marketing and Customer Service Planning A similar approach was taken in investigating whether companies had separate, formal marketing and customer service plans and the relationship with service orientation. A written marketing plan was claimed by 66 % of respondents, a written marketing plan with a customer service component by 47 %, but only 24 % had a written customer service plan.

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Feedback from customers must be encouraged. Two other factors relevant to planning were first the extent to which a company undertakes competitive monitoring (33 %) and, secondly, whether they had written standards for service (44 % claimed to have this). The most interesting differences were found between those who had a written customer service plan and those who had not. The key results are shown in Table 2. Those firms with written customer service plans were more likely to set service levels higher than the competition, thus reinforcing the idea that it is a means to gain a competitive advantage. Further, they agreed that their employees were trained to be customer-oriented, and they encouraged feedback from customers. This supports empirical evidence from elsewhere [28]. These firms also had a belief in superior quality and service but disagreed that they don't monitor customer service standards (negatively worded statement). The importance of formal planning as a measure of service commitment is confirmed.

the level of importance respondents attached to customer service in achieving company objectives. The most important reason given was the role of service in retaining existing customers, followed by its potency as a source of competitive advantage. This confirms the hypothesis that customer retention should take precedence over customer generation [12]. Interestingly, the least important reason given was as a means of increasing profitability. One interpretation of this could be that service is seen as necessary and important but as cost incurring and therefore a profit-reducing activity, at least in the short-term. Whereas many service activities are cost incurring thereby reducing profits, service does create added value for the customer or increased benefits that result in customer loyalty.

Reasons for Investment in Customer Service

• free design was available to all customers in 30% of firms, 38% said this was not applicable to their business, and 32% did not offer the service; • free quotation was available in 83% of firms (13% not applicable); • free phone in only 5 % (41% not applicable); • product guarantee offered by 70% (16% not applicable); • written quality standards for service existed in only 44% of companies.

It was interesting to assess the motives behind the level of service provided. For example, do certain types of firm employ service as a defensive ploy, a satisfying approach, or as a real source of competitive advantage. Table 3 shows TABLE 2

Independent Samples of Written Customer Service Plan Group a

Mean

SE

t-Value

Set service levels higher than competition

1 2

1.7294 2.1474

0.081 0.082

-3.62 °

Employees trained to be customer-oriented

1 2

2.1647 2.4632

0.085 0.092

-2.36 °

Feedback from customers encouraged

1 2

1.7647 2.1579

0.064 0.078

-2.03 b

Belief in superior quality and service

1 2

1.4831 1.7049

0.049 0.085

-2.41 b

Don't monitor c u s t o m e r service standards

1 2

2.0941 2.3684

0.085 0.098

-2.09 ~

Commitment to quality was measured on both objective and subjective dimensions. We found the following:

Although such measures tend to be recommended in the literature, it is clear that these service facilities apply more in some types of business than in others. The use of these TABLE 3

Reasons for Importance Attributed to Customer Service

G r o u p 1 consists o f those with a written c u s t o m e r service plan, g r o u p 2 consists of those without. b Significant at .01. ~"Significant at . 0 5

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Commitment to Quality

As As As As As

a a a a a

means o f retaining customers competitive advantage defence against new entrants means of survival means of increasing profitability

Importance rating: 1 = high, 5 = low.

Mean

SD

1.7 1.794 2.033 2.167 2.367

0.818 0.837 1.019 0.948 1.067

A mission statement is not a vapid platitude. TABLE 5 Who Is the Person Responsible for Customer Service?

TABLE 4 Commitment to Quality and Service

Aim to provide highest possible service Belief in superior quality and service Aim to provide optimal quality Set service levels higher than competitors Have regular meetings on quality Set service levels high to provide customer satisfaction

Mean

SD

Responsible Person

Frequency

Percent

1.539 1.559 1.700 1.950 2.106

0.637 0.591 0.659 0.800 0.868

3.261

0.861

Technical or quality manager Sales or marketing manager Other manager Production director Marketing director Other director Other person

26 23 35 10 11 25 50

14.4 12.8 19.4 5.6 6.1 13.9 27.8

180

100.0

Importance rating: 1 = high, 5 = low.

measures by themselves is a poor indicator of a servicedriven organization. The commitment to quality and service was claimed to be high, as might be expected, but as can be seen from Table 4, respondents were less committed to setting high service levels to provide customer satisfaction than to beating competitors' service levels. The evidence suggests that quality may be in danger of becoming an end in itself, a standardization procedure that lacks the customer-driven focus required to be successful in terms of competitive advantage. Quality standards are a minimum or hygiene factor, but this does not extend to exciting and delighting the customer. Standards are not based on the fundamental idea of customer satisfaction. Most firms had allocated a person to be responsible for customer service, but a range of functional areas was chosen as the most suitable location (Table 5). The high proportion of "other" in Table 6 (50 = 28%) also includes a number who claimed that service and standards were the responsibility of everyone in the organization and involved all personnel. This is in keeping with the total quality management approach. It is perhaps interesting to note that customer service is equally likely to be seen as the responsibility of production as of marketing, and more likely to be neither. When the level of reporting for customer service was considered, the managing director was cited in 44% of cases and a director or board member level in 29 % of cases (Table 6), supporting the finding from Table 5 that the majority of firms do have a commitment to service.

Total

Organizational Integration and People Involvement Several dimensions of customer service orientation were investigated as shown in Table 7, which lists the factors considered to be essential for the successful implementation of service orientation. The three statements ranked first, second, and third in importance were: customer service is an important part of marketing strategy, systems are designed to be customer-friendly, and employees are trained to be customer-oriented. However, employees are less likely to be promoted and rewarded for service performance or to view the business from a customer's perspective. A danger clearly exists that although the formal structures are in place, in terms of mission statements, plans, and training, staff will consider this as unrelated to their own personal objectives.

TABLE 6 TO Whom Does the Person Responsible for Customer Service Report? Reporting To Board Managing director Director Manager Other Total

Frequency

Percent

20 79 33 14 34

11.1 43.9 18.3 7.8 18.9

180

100.0

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Customer service must be integrated into the whole company. TABLE 7 Organizational Integration end People Involvement

Customer service important part of marketing strategy Systems designed to be customer friendly Employees trained to be customer-oriented Employee service performance, promotion criteria Employees view business from customer perspective Reward systems for service performance

TABLE 8 Customer Research and Feedback

Mean

SD

1.983 2.250 2.322 2.644 2.806 3.711

0.829 0.761 0.856 0.961 0.904

Investment in Customer Research and Feedback The objective measures of investment in customer research and feedback showed that: only only only only

33% monitored competitors service offerings; 19% varied their service for customers; 5 % offered a free phone or 800 number; 15% used customer questionnaires.

Companies who are service leaders are obsessive about knowing what their customers think of them and how their performance is rated [28], whereas our findings show that the majority of companies would not be able to engage in competitive benchmarking, could not segment their markets on the service dimension, and did not encourage or facilitate customer feedback. This is not compatible with a customer-oriented service strategy. The subjective measures supported the general conclusion that companies believe that they are customer-oriented in that they rate highly working closely with customers, encouraging feedback, long-term relationships, and segmenting by service levels (Table 8).

Setting and Monitoring Standards The objective measure of whether firms set and monitor standards asked whether five important standards existed. It was found that:

428

SD

2.022 t.972 2.000 2.400

0.897 0.712 0.909 1.006

Importance rating: 1 = high, 5 = low.

0.836

Importance rating: 1 = high, 5 = low.

• • • •

Work closely with existing customers Encourage feedback from customers Seek long-term contracts with customers Better service for important customers

Mean

• 56% had standards • 78% had standards • 42 % had standards stock); • 53% had standards • 64 % had standards

for response to quotations; for order delivery time; for product service levels (out of for orders filled; for complaints.

These levels are not as high as expected for companies committed to customer service and again suggests a gap between the intention and goal, and the actual situation. Table 9 records the subjective perception of this issue, and companies fell mainly at the midpoint, neither agreeing nor disagreeing that these four dimensions were measured.

MANAGERIAL IMPLICATIONS AND RECOMMENDATIONS This study has revealed that although companies have many of the formal trappings of a customer-service orientation and believe that they are committed to customer service, this is not being carried through in the necessary operational changes required for effective implementation. Companies show an awareness of what customer service is, and its importance, and that it must be integrated into the whole company operation and orientation. They also appreciate that retaining customers is a major competitive ploy, likely to lead to competitive advantage. Despite this, many of the practical aspects of customer service, such as customer feedback and relating individual employee career objectives to customer satisfaction through pay and

Service l e a d e r s are o b s e s s i v e about knowing what their customers think of them. TABLE 9

Setting and Monitoring Standards

Do not measure competitor service levels Do not assess service levels required from customers Do not measure cost implications of service Do not measure sales impact of service

Mean

SD

2.900

0.969

3.761 2.822 2.928

0.887 0.970 0.957

Importance rating: 1 = high, 5 = low.

career enhancement, do not seem to exist. Therefore, in firms that aim to be customer-driven, management must address three key issues: 1. Business Vision: The first priority should be for everyone in the organization, especially the chief executive, to believe the best way to run the company is for the benefit of its customers. This does not mean profits and employees are not important, but it does mean customers are the priority. To turn this belief into reality requires strategic vision. Customers should be the strategic core of a business, and the management task is the origination of the strategy, the maintenance of strategy, and the continual development and renewal of strategy in response to environmental change. Problems can occur in translating the corporate vision into reality. The extent to which service dimensions contribute to goal attainment is difficult to measure in a dynamic and evolving environment. Indeed, the customer service mix, although strategic, must adjust to the emerging patterns in the environment and in particular to the level of competition. So, it is also reactive and adaptable but part of a process. Prepurchase customer service that helps qualify an organization in the customer's mind is part of corporate positioning strategy. Firms that fail to design such a strategy will acquire one by default. 2. Service Implementation: Belief-expressed in the corporate vision and mission of the business-is important, but the true challenge for management is to make care for the customer a reality. For this to happen, the

offering provided must meet customer needs. This can be achieved by product and service in combination, the augmented product, rather than by considering them as alternatives. Rarely is a product supplied without some form of service support or a service supplied without some form of tangible dimension. Although not new, this perspective, by advocating close contact with customers and relationship building, seems particularly appropriate to the ideal of marketing as a mutually satisfying exchange. It is incumbent upon the supplier to add services that sustain and enhance customer relationships. In advanced economies, requiring sophisticated service and technology support, with more complex industrial products and increasingly demanding and discerning buyers, there is a need for a total customer care approach and greater relationship building between buyer and seller. This mirrors what many successful companies are already aware o f - t h a t employee training and empowerment are crucial to successful buyerseller relationships. Empowerment needs to be formalized and managed if a company is to be effective in its relationships with its customers. This can be achieved by staff who are adaptable and responsive to customers' needs. Investment in training, staff participation, and an appropriate reward system are required. Firms, some of which may claim to be customer led, which reward staff on traditional output measures such as number of orders or sales value, are unlikely to be operating satisfactorily at this new relationship level. What is required is a reward system based, for example, on the number of the customers retained and how satisfied these customers are with the service provided. . Commitment to Quality: In industrial marketing, a fundamental question concerns whether, and to what extent, a buyer-seller relationship depends on technical performance, what is delivered, vis-a-vis functional performance, how it is delivered. This study has shown that both dimensions are crucial. Service provision is

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a journey on which there are many different "moments of truth" Crucial on this journey is researching customer needs to identify the service elements most important to customers, then allocation of resources to these elements. A profile of customer service performance vis-a-vis competitors on key value attributes can also be established with any shortcomings providing a clear guide for managerial action. Measurement of customer service in terms of customer retention rates is crucial in terms of profitability and helps management evaluate whether their strategy is working. The pursuit of customer loyalty, and measures to evaluate such loyalty, is therefore deemed to be profitable marketing practice. The literature is replete with advice, empty rhetoric, and numerous management guidelines on how to be service led and customer driven. The intention here was to distill this advice into measurable dimensions that purported to characterize those organizations committed to serving their customers. It has been found that many of the hard dimensions are not always applicable to all types of business. The measures that do represent the phenomena are more likely to be those that reflect management attitudes as well as action in the area of customer service. It is to this area that further research should be directed. It would also be interesting to compare across industries or categories of customers the extent to which service commitment is varied. Some of the trappings of service such as a mission statement, formal planning, and employee involvement are clearly part of a service orientation, but it is not only what you do to provide service, but how you do it and how the activities are managed.

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