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PgDip/MSc OPERATIONS AND SERVICES MANAGEMENT MANAGING CUSTOMER REALTIONS COURSEWORK 1 - WAL-MART AND EASYJET APPROACH TO CRM IN THE B2C VALUE CHAIN Prepared by: George Gourlay Date: 12th November 2004 Executive Summary Customer service, not surprisingly, has been researched extensively: from the conceptual framework of service quality, to the positive and negative impacts of service quality, to the effect of favourable and unfavourable customer intentions on perceived quality. Superior service generates favourable behavioural intentions in customers, including increased future spending, acceptance of price premiums, "word of mouth" referrals, and, ultimately, customer retention (Zeithaml et al., 1996). Quality service builds customer faith in the organization, and "is essential for maintaining competitive advantage" (Berry, Parasuraman and Zeithaml, 1994) Longstanding, satisfied customers will generally continue, or often increase, purchasing, require less operational and customer service support, and be more willing to pay price premiums to remain with the company--all without incurring new customer acquisition costs (Pine II, Peppers, and Rogers,...

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