In: Operations Management
CASE STUDY:
"BMW is the ultimate driving machine. Manufactured by the German company Bayerische Motoren Werke AG, BMW stands for both performance and luxury. The company was founded in 1916 as an aircraft-engine manufacturer and produced engines during World Wars I and II. It evolved into a motorcycle and automobile maker by the mid-20th century, and today it is an internationally respected company and brand with $106 billion in sales in 2012. BMW’s logo is one of the most distinctive and globally recognised symbols ever created. The signature BMW roundel looks like a spinning propeller blade set against a blue sky background—originally thought to be a tribute to the company’s founding days as an aircraft-engine manufacturer. Recently, however, a New York Times reporter revealed that the logo, which features the letters BMW at the top of the outer ring and blue-and-white checkered design in the inner ring, was trademarked in 1917 and meant to show the colors of the Free State of Bavaria, where the company is headquartered. BMW’s growth exploded in the 1980s and 1990s, when it successfully targeted the growing market of baby boomers and professional yuppies who put work first and wanted a car that spoke of their success. BMW gave them sporty sedans with exceptional performance and a brand that stood for prestige and achievement. The cars, which came in a 3, 5, or 7 Series, were basically the same design in three sizes. It was at this time that yuppies made Beemer and Bimmer the slang terms for BMW’s cars and motorcycles, popular names still used today. At the turn of the century, consumers’ attitudes toward cars changed. Research showed that they cared less about the bragging rights of the BMW brand and instead desired a variety of design, size, price, and style choices. As a result, the company took several steps to grow its product line by targeting specific market segments. This resulted in unique premium-priced cars such as SUVs, convertibles, and roadsters, as well as less expensive compact cars like the 1 Series. In addition, BMW redesigned its 3, 5, and 7 Series cars, making them unique in appearance yet maintaining their exceptional performance. BMW’s full range of cars now includes the 1 Series, 3 Series, 5 Series, 6 Series, 7 Series, X Series, Z4 Roadster, M Series, Hybrids, and BMWi. BMW created the lower-priced 1 Series and X1 SUV to target the “modern mainstream,” a group who are also family-focused and active but had previously avoided BMWs because of their premium cost. The company nurtures these loyal consumers and continues to research, innovate, and reach out to specific segment groups year after year.)
QUESTION
Service quality differs from product quality in that the consumer is actively involved in the service creation process. Service firms therefore face a unique situation whereby each service encounter with a customer is a test of the firms service quality standards.
In light of the above information discuss how a firm can manage service quality to ensure consistent service delivery that meets or exceeds customer expectations.
Here are 11 simple ways by which any business can look to exceed customer expectations: