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Managing consumer expectations of low-margin, high-volume services

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Service firms operating on low margins per transaction must generate a high volume of business to survive the competitive environment of the 1990s. Firms must raise the expectations of consumers to increase patronage, then successfully meet these expectations. Examines the antecedents to consumer expectations of low-margin, highvolume service firms, and gives managerial implications, illustrating how to manage a service firm, successfully operating on low margins successfully.
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Keywords: Competitive advantage; Consumer behaviour; Customer requirements; Distribution management; Face-to-face communications; Marginal costing; Service quality; Services marketing; Video

Document Type: Research Article

Publication date: March 1, 1995

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