Antonella Cugini

Profitability and customer satisfaction in services: An integrated perspective between marketing and cost management analysis

The work suggests a defining approach aimed at understanding the relations between client satisfaction and business profitability, with specific reference to services management. The paper makes use of the analysis of the reasons for the separation of the client satisfaction and cost containment orientations – a separation which is a weak point in the case of service businesses. It then develops a methodological approach for bringing together client satisfaction research and cost optimisation, the application of which is presented by means of a business case concerning a firm which offers a database service. This approach makes it possible to put in relationship the utility perceived by the customer with reference to the different attributes of the offer and the price which the customer is prepared to pay to obtain the utility. At the same time it makes it possible to compare the price thus determined and the effective cost of the activities which determine the services delivered. Research into compatibility between competitive and financial success is therefore allowed by reference to analysis of the service characteristics. These permit a joining together – the external and internal process of the company, or rather the value as perceived by customers (the relationship between utility and price sustained) and the cost sustained by the company in the generation of this value.

The Cost of Customer Satisfaction: A Framework for Strategic Cost Management in Service Industries

Abstract Customer satisfaction has long been considered a milestone in the path towards company profitability. Although it is widely acknowledged that customer satisfaction leads to higher and more stable revenues, the relationship between customer satisfaction levels and the costs that the company incurs in producing and delivering customer services has received far less attention, and the research results vary significantly across sectors. In fact, there seems to be little guidance for linking company costs to the key elements involved in providing customer satisfaction in services, thereby diminishing the ability of a company to manage its activities accordingly. In this paper, we propose and test a framework to analyse and manage the relationship between company costs and customer satisfaction in service industries. Based on a case study from the tourism industry, we show how service components can be used as a key medium to link customer satisfaction to the cost of service production and delivery. In doing so, we provide guidance for identifying specific sources of customer satisfaction and assessing their cost, thereby extending to service industries previous research on strategic cost management.

Assessment of destination performance: a strategy map approach

Purpose – Notwithstanding a growing interest on destination management, little is known about the formation and evaluation of destination managers’ strategies. Strategy assessment is essential to understand whether, and how, destination managers allow the reconciliation of the diverse stakeholders’ interests within an integrated destination plan, pursuing the development of the destination. The purpose of this paper is the exploration and building of a strategy assessment approach. Design/methodology/approach – A qualitative methodology is adopted, to identify key dimensions of strategy assessment and their combination within an integrated destination plan. Data come from the city of Turin, and the destination management organization developed for 2006 Winter Olympic Games. Findings – The use of balanced scorecard approaches points out how a financial dimension is key in meta-management contexts, notwithstanding the public interests of the destination supply system. Also, this work discloses the formative process that characterizes strategic planning within supply networks of tourism destination. It describes the hierarchy of strategy assessment, taking into consideration externalities emerging from integrated supply systems developed at the destination level. Research limitations/implications – Limitations are intrinsic to case study methods, and points on findings generalizability. Practical implications – The paper offers insights on developing analytical capability within meta-management organizations, to diagnose value creation and competitiveness gaps. Also, it gives insights on developing co-ordination capabilities, allowing different strategic goals to be drawn into an integrated design. Originality/value – The paper offers a novel approach for developing a strategy map, and contributes to prior research on strategy assessment in meta-management.

Performance measurement in academic departments: the strategy map approach

This article describes the implementation of the balanced scorecard (BSC) strategy map in a university department. The department is a good example of a complex public sector service organization—therefore the article has relevance beyond universities. The strategy map was found to be an extremely good way of measuring performance. In addition, the BSC/strategy map helps in monitoring and building departmental mission and goals and the authors recommend wider use.

Peculiarità e potenzialità della misurazione dei costi nella diagnostica per immagini

Le aziende sanitarie private accreditate gestiscono peculiari aspetti di misurazione dei costi, fondamentali da conoscere e gestire al fine di valutare la sostenibilita economica dei servizi offerti. I loro ricavi sono costituiti in parte da rimborsi definiti a livello regionale e in parte da introiti da prestazioni il cui prezzo e definito in completa autonomia. Il paper analizza i sistemi di misurazione dei costi che, fornendo una piu corretta informazione dei costi unitari delle prestazioni erogate soprattutto per una migliore allocazione dei costi di struttura, possono supportare anche i processi di pricing. Il caso di studio evidenzia il valore del sistema basato sulle attivita (ABC) per un’azienda che opera nel settore della diagnostica per immagini, e come esso consenta una piu precisa valutazione dei mix di servizi offerti, delle tariffe di rimborso e dei prezzi fissati.

In search of academic excellence with the strategy map: analysis of an Italian case study

Notwithstanding a growing interest in performance management systems for universities, little is known about their application to academic departments, public institutions dedicated to research. The purpose of the paper is the exploration of a specific performance measurement model - the balanced scorecard strategy map - which is suitable for the particular features of an academic department. The paper uses a qualitative methodology to identify the dimensions of the performance measurement and proposes a set of goals and measures. The paper extends the customer perspective by considering a wider system of stakeholders and emphasises the strategic role of the financial dimension as a driver for achieving the mission.

Innovating cost accounting practices in rail transport companies

Purpose - – The purpose of this paper is to present and discuss an accounting innovation in the cost measurement system of rail transport companies. Design/methodology/approach - – The authors identify the distinctive features that cost accounting systems should have in order to capture the particular structure of the production process of rail transport companies and develop an innovative accounting practice that addresses the specific features of railway services, particularly the high fixed costs associated with the infrastructure. This accounting innovation is applied to Trentino Trasporti, a medium-sized, privately owned passenger railway company operating in the Trentino Alto Adige region of Italy. Findings - – Evidence suggests that the new accounting practice facilitates the operational connection between the companys resources and their consumption during the provision of transport services. Practical implications - – This connection enables companies to identify new opportunities for improvement and cost optimisation by finding the real origins of cost consumption in the provision of rail transport services. Originality/value - – The case analysed also shows the necessity of integrating activity-based costing (ABC) with an accounting innovation that can represent the resources consumed by the various elements of the infrastructure that support the provision of services. This innovation has important managerial outcomes for all service companies that operate with an infrastructure network, including transport, service, and utility companies, and useful implications for the accounting profession that deals with cost systems in networked-based companies.