Question: In services, the zone of tolerance is important to ensure that custome

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Question: In services, the zone of tolerance is important to ensure that customers are satisfied with the service, explain this concept, and how it can be used by Uber when designing and offering their services? August 2017pd x FULLTEXTO2.pdf In 2009, Travis Kalanick and Garrett Camp founded a company known as UberCab (which was latet renamed as Uber). Their idea was foimed when they struggled to hail a taxi in Paris, and concluded that they had to be a better way. The idea they came up with was that a passenger should be able to tap a button, and that way, be able to get a ride. It launched in San Francisco in June 2010. All it required to get a lift was an SMS or pressing a button. This served as the basis for their business which we know today. Uber currently operates in 581 cities in 81 countries around the world. Initially Uber presented one type of vehicle for transport, but quickly realised that there were different market segments using their services. Some passengers wanted the cheapest service possible while others wanted a luxury ride. This resulted in the development of four types of Uber including UberX and UberBlack, their luxury service. Using Uber as a customer As a customer, access to and use of Uber is through their application (app) which is downloaded from either the PlayStore ot the AppStore. Having downloaded the app, the customer creates an account which links the payment method to the mobile phone. Activation of the GPS locator on the mobile phone is necessary so that the app can calculate the cost of the trip, as well as knowing from where the passenger is wanting to travel. When wanting to use the service, the customer opens the r, indicates where they want to travel to. Prior to requesting the service, the passenger can check the cost of the trip and decide whether (or not) they want to use the service

Explanation / Answer

The zone of tolerance is a range of customer perceptions of a service between desired service and minimum acceptable standards. If the service level falls in this zone, the customer is satisfied. The zone stretches from the point of customer delight to the point of satisfaction threshold. A service organization needs to be as close as possible to the former end of the tolerance zone.

Uber or any other similar company for this matter, needs to live up to or exceed the expectations of the customers by designing user friendly, efficient, reliable and responsive applications that can not only help to book effortlessly, but also provide the user to get world class experience to enable him to nevigate, pay, avail offers, give feedback and communicate. The other part of service, the vehicle, drivers, cost structures, punctuality, professional attitude, handling of customer grievances, customer service standards and post ride feedback and opinion must be above the line of expectations of customer. All in all, the service must be able to provide the customer a pleasurable, safe, punctual and cost effective ride which he / she can recommend to the others.

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