Customer Satisfaction Analysis on Supershuttle Taxi Service, New York

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Case Study: Supershuttle New York (Blue Van)

By Putri Ayu Diah Chandra Puspita

PMM Case Study 27th August 2011 Word count: 1,990 (excluding bibliography)

Table of Contents 1. Table of Contents 1. 2. 3. Introduction – importance of customer loyalty to a company.......................... 3 Analysis for operations management of Supershuttle ....................................... 4 Data and information needed to support management decision for Supershuttle operations management ................................................................. 6 4. 5. Managing operational finance ............................................................................. 8 Conclusion ............................................................................................................. 8

Bibliography ............................................................................................................... 10  

Case Study: Supershuttle New York (Blue Van)

1. Introduction – importance of customer loyalty to a company Customer loyalty is an important thing to be considered by every organization because it can affect the performance of a company, directly or indirectly, and within short-term as well as long-term period. According to Castledine (2011), loyal customers generate more profits and it is also six times cheaper to retain an existing customer rather than winning a new one. Customer loyalty can be obtained by delivering value that creates customer satisfaction. Value is closely related with the ratio between cost and benefit to the customer (Castledine, 2011). Customer satisfaction is created when their experience or perceived performance meets their expectations (Castledine, 2011). A company should strive not only to achieve customer satisfaction one at a time, but also try to make a consistent creation of it. In the context of service industry, the challenge of making consistent customer satisfaction is bigger than the challenge faced by manufacture industry because of the “heterogeneity” and “simultaneity” characteristics of services (Murdick et al., 1990 as mentioned in Southern, 2001). A service organization should identify tangible quality criteria, which are “paramount (qualifying)” and “important (order winning)” in satisfying the customer (Southern, 2001). This quality standard should be directed in accordance with the competitive stance adopted by the organization and should also be considered in terms of “order qualifying” versus “order winning” criteria (Southern, 2001). This essay will focus on the customer satisfaction level from the services provided by Supershuttle, with further analysis over the cause of failures identified and various ways that can be applied to make improvements based on the operations management theory from Southern (2001) and Boddy (2005). Supershuttle is an

airport-shuttle-service company that advertises itself as the easiest, most cost-effective way to get to and from the airport. It has recently faced a number of complaints from their customers. Many of Supershuttle customers are not satisfied with the services provided due to several reasons. The main reason is their failure to provide the transport service that has been arranged carefully before as happened to the Southerns when they wanted to go from the hotel to the airport in New York. The Blue Van, which is the name of the Supershuttle franchise company in New York, did not arrive at the agreed time with no clear confirmation from the reservation center and no alternative transportation provided. The customer also experienced difficulty in contacting the customer service representatives. It is worsened by the customer care department’s failure to refund the correct amount as promised by the reservation center of Supershuttle. The result of all these problems is the spoiled reputation of the company and ruined relationship with the customer.

2. Analysis for operations management of Supershuttle...
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