Breaking the Cycle

Milliman, John F.; Ferguson, Jeffery M.; Czaplewski, Andrew J.
March 2008
Marketing Management;Mar/Apr2008, Vol. 17 Issue 2, p14
The article discusses the importance of employee satisfaction in service marketing. The authors note that customer experiences with employees can influence their purchase of a service and that employee morale is a major component of service quality. The service profit chain (SPC) model suggests that employee satisfaction can improve employee productivity. Low employee morale can lead to poor service and less investment in employees, creating a repeating cycle. The SPC model involves providing employees with better training, salaries and job designs to improve performance. The nonprofit organization America's Family, founded by entrepreneur Steve Bigari, follows an expanded SPC model by offering employees additional services and programs to deal with personal issues.


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