How does Efficiency in Service Business Influence Service Quality?

  • Kim, Seong-Su (College of Business Administration, Seoul National University) ;
  • Oh, Jung-Suk (College of Business Administration, Seoul National University)
  • Published : 2008.08.31

Abstract

In a service business, it is difficult to cope with all your customers' needs. They come and go with various wants and when it comes to their own good there are complaining. Such variances in the service business interfere the operation resulting in inefficiency. To come against all those fluctuate wants, Frei is suggesting a new way how to cope with this customer variability in the service business: Low-Cost accommodation and uncompromised reduction. However, his assertion that these solutions can reduce cost and enhance service quality at the same time is empirically not proved. Thus, the following research will be dedicated in the empirical proof whether the solutions mentioned above can enhance service quality while reducing cost by pursuing efficiency in the service business.

Keywords

References

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