Question

What is the service profit chain and how does it function within businesses?

Answer 1

The service profit chain links service firm profits with employee and customer satisfaction.  It consists of five links:

(1) internal service quality;

(2) satisfied and productive service employees;

(3) greater service value;

(4) satisfied and loyal customers;

(5) healthy service profits and growth.

The service profit chain illustrates the importance of employees in creating value for the customer. Go into detail of each link of the chain and why it is integral to the success of the organization.  Link the service profit chain back to the purpose and importance of marketing.