The service-profit chain (Heskett et al, 1997) was developed.From an analysis of service organizations with the aim of linking.Operational resource investments to marketing operational and,,,Financial outcomes. The service-profit chain combines three.Distinct but closely, related streams of research: the cycle of.Employee capability the customer, quality / value equation and the, cycle of customer loyalty. The cycle of employee capability. Takes.A human resource perspective on the relationships between.Employee satisfaction turnover and,, productivity. The quality.Value equation describes how customers perceive and assess.Service offerings. The cycle of customer loyalty examines the effect.That customer satisfaction has on customer loyalty and how they.Both play a vital role in determining financial, outcomes (Loveman1998; Loveman, and Heskett 1999).
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