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| Author: | Kamakura, W.A.(et al.) |
| Title: | Assessing the service-profit chain |
| Journal: | Marketing Science
2002 : SUMMER, VOL. 21:3, p. 294-317 |
| Index terms: | Marketing Management Banking Service Corporate planning Profit Models Brazil South America |
| Language: | eng |
| Abstract: | The service-profit chain (SPC) is a framework for linking service operations, employee assessments, and customer assessments to a firm's profitability (Heskett et al. 1994). For a firm, it provides much needed guidance about the complex interrelationships among operation investments, customer perceptions, and the bottom line. This paper's approach has the potential to both identify and quantify the benefits of implementing a service strategy, especially for firms having multiple units. The implementation approach is illustrated using data from a national bank in Brazil. The strategic analysis consisted of a structural-equation model that identified the critical conceptual relationships that parsimoniously articulate the SPC for this bank. The paper's illustration shows how top management can use the strategic and operational analysis in tandem. |
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