OM (Chapter 3)

Measurement is the act of quantifying the performance criteria (metrics) of organizational units, goods and services, processes, people, and other business activities.

Financial measures include revenue, return on investment, operating profit, pretax profit margin, asset utilization, growth, revenue from new goods and services, earnings per share, and other liquidity measures.

Customer measures: Customer satisfaction, customer retention, gains and losses of customers and customer accounts, customer complaints, warranty claims, measures of perceived value, loyalty, positive referral, and customer relationship building.

Market measures: Market share, business growth, new product and geographic markets entered, percentage of new product sales.

Quality measures relate to the degree to which the output of a process meets customer requirements.

Tangibles
Reliability
Responsiveness
Assurance
Empathy

Tangibles — physical facilities, uniforms, equipment, vehicles, and appearance of employees (i.e., the physical evidence).

Reliability — ability to perform the promised service dependably and accurately.