A Framework to Evaluate Service Operations: Dynamic Service-Profit Chain

Quality Management Journal vol. 14 issue 3 - July 2007

Abstract:[This abstract is based on the authors' abstract.]Organizational managers must make operational investment decisions that have an impact on the firm’s bottom line, yet not all such decision are evaluated for their impact. A dynamic model based on the service-profit chain is proposed to evaluate the impact of investments made in operational attributes on market penetration of the organization over time. Applicability of the model is demonstrated by identifying dimensions and observed variables that are measurable.

Keywords: Customer loyalty - Customer retention - Investment decisions - Market penetration - Operational attributes - Satisfaction - Service quality - Surplus