definition of service guarantee

1.0 Definition of Service Guarantee

A service guarantee is a statement that clarifies what the customers can expect from a service, and what the company will do to rectify the situation if the service does not meet expectations. The guarantee have been claimed to have a number of influences on how services are managed as the guarantee clearly states the level at which the service should be delivered, and indicates the costs of failing to do so. Some of these influences include learning from service failures, setting standards for service delivery for both employees and customers, serving as a competitive advantage, and increasing satisfaction and retention of customers. Despite a growing interest from service organizations, research on service guarantees has been surprisingly scarce. Therefore, the aim of this dissertation is to provide a wider understanding of the roles of service guarantees in managing services.

The dissertation consists of five separate studies, all based on data gathered from actual customer’s and employees’ encounters with service guarantees that have been in use for several years. The results are unique, as previous research has almost exclusively addressed the pre-purchase effects of the service guarantee and has failed to address the impact of the service guarantee after it has been used. The methods used to gather and analyze the data include mystery shopping observations of how employees utilize the guarantee, focus group interviews with customers addressing their expectations of a guarantee, and a postal survey of customers’ experiences after invoking the guarantee.

Three main aspects of this dissertation have contributed to the understanding of service guarantees in managing services. First, post-use implications of service guarantees “in action” have been presented which is something that has been overlooked in previous research. Second, the service guarantee sends its strongest marketing signal once the failure has occurred because customers fail to notice the guarantee unless there is an obvious need for it. This strongly questions the value of previous research that assumes that customers are aware of the guarantee and measure its influence based on that awareness. Third, the recovery paradox was confirmed which indicates that customers are more satisfied after using the guarantee than had they not experienced a failure at all. It substantiated that a failure that is handled well, can indeed be turned into a success.

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2.0 Background Pos Malaysia Berhad

Pos Malaysia Berhad is the exclusive provider of mail services in Malaysia. With more than 175 years of existence in the country, its vast experience forms a strong backbone to support its massive restructuring when it became a corporatized entity in 1992.

The blend of its solid market strength and market freedom enables Pos Malaysia Berhad to explore and adapt new business opportunities beyond the 'traditional postal services' and thus, stays ahead of its competitors.

In 2003 Pos Malaysia Berhad restructured its entire operation unit into four specific Strategic Business Units. Determine to be more focused on its various customers and marketplace, Pos Malaysia Berhad now consists of:

PosMel (Mail Services)This brand is focused in providing day-to-day mailing services both general public and retail customers

PosLaju (Mail Express)Being the sole national courier provider, PosLaju aggressively aims to be the preferred courier service among its foreign competitors.

PosNiaga (Counter Services)This unit is responsible in heightening the accessibility of the national's postal services to reach Malaysians in every corner of the country.

PosLogistik( Logistics Services)With the acquisition of Transmile, Pos Malaysia Berhad is extending its services to provide logistics solutions through this new brand.

At Pos Malaysia Berhad, we have discovered that the secret to business survival lies in the human relationships. Thus, Pos Malaysia Berhad constantly invests in identifying, evaluating and maximizing the human capital that drives the organization and innovates solutions to improve its products and services to fulfill the sprouting demands of its customers.

As we endeavor the new century, Pos Malaysia Berhad continues to reinvent itself to stay focused, competitive and continues to connect Malaysians with the world.

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There have four products and services offered to the customers.

1. Mail services2. Express services3. Counter services4. Logistics services

3.0 Mail Services

A. General Mailing SolutionFrom simple letter to parcel delivery, customers are offered a complete range of competitive and customer-responsive mail and specialty services to assist all Malaysians.

1. Standard Letter

Reclassification of mail products into Standard and Non-Standard Mail is a necessary step towards greater efficiency and faster deliveries in the near future, as standard mails shorten mail processing time as they are machine readable.

Standard mail is letter that meets the criteria such as the maximum weight of Standard Mails is 50gm. Then, the size of Standard Mail is height maximum 165mm and minimum 90mm. Besides, the width is maximum 250mm and minimum 140mm. The width of the mail also must be equal or more than the height of the mail. The thickness is maximum 6mm and minimum is 0.25mm. White envelope for the standard mail is preferred to allow the address to be seen clearly and must be sealed and soft colours are also permitted. The customers are avoiding to using staples or metal clips to seal the envelope. Staples or metal clips are avoiding. A 15mm space at the base of the envelope must be left blank for printing of bar codes.

2. Non-Standard Letter

With the Reclassification of Mail Products, the Small Packets category has been reclassified as Non-Standard Letter. Non-Standard could be in shapes other than rectangular and might contain items such as CD, diskettes, and the envelope would also be in materials other than paper.

The feature of non-Standard Letter is (i) mail that containing with an object such as compact disc and cassette (ii) mail that has irregular shape (iii) mail that uses plastic envelope, poly-wrapping and sheeted envelope (iv) mail that exceeds 6mm thickness (v) mail sealed with stapler or metal clips (vi) mail using dark colour, glossy or oily envelopes (vii) an envelope that does not have a blank space of at least 15mm from the base of the envelope.

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B. Business Solution1. Prepaid Bulk Mailing

Customers who wish to send mails in large quantities or through bulk mail are recommended to use the Prepaid Postage Service. Payment for this service can be made through cash, bank draft, cheque or by operating an Impress Accounts Need to send more than 100 similar mails to your customers'. Our Prepaid Postage, a bulk mailing service can save your business precious time when you want to send catalogues, magazines, notices and others in large quantity. With Prepaid Postage, you don't have to weigh your items and affix stamps on them individually. There have two types of Prepaid Postage, Domestic Prepaid Postage Service and Overseas Prepaid Postage Service.

There have licence and non-licence.

Licence Non-licenceFor posting of more than 5000 items For posting of more than 100 items but not

less than 5000 items.Licence is issued free. Same size, shape, and weight.Every letter must be printed with postage information. Called “Indicia”.

All “Re-mailing” items are prohibited to be posted overseas.

“Indicia” envelope or wrappers must be submitted together with the application form.

2. Corporate Mail Management

Corporate Mail Management service provides you with experts who have been well trained to serve your mailing needs. Corporate Mail Management service is a total mailroom solution that handles your company's daily mailings. Our experts placed in your premise will handle all incoming and outgoing mails. They will collect and distribute mails from the Post Office for internal circulation. At the same time, they will also collect, sort and dispatch all outgoing mails from each Unit of your company to the Post Office for delivery. Mails will be recorded according to the respective Units for ease of future back charging.

The benefits by using the Corporate Mail Management efficient, reliable, timely, cost effective in term of time management, manpower, transportation, and other operating costs, frequent internal distribution and collecting of mail, which is 3 to 4 time daily, and back up staffs are provided.

Besides, under this service, the company will be provided the transportations for the mails and items by the Pos Malaysia. The transportation that offered by Pos Malaysia is transportation of mails from General Pos office to company, transportation of mails from

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company to General Post Office, and transportation and distribution of company’s goods or stationery as per request.

Under Corporate Mail Service, there are provides Incoming Mails which is include hand delivered mail, ordinary mail, Pos Ekspres, courier and parcel. Besides, there also delivery services for mails to each Unit, Department, or Section of the company. For the Outgoing Mails, the Corporate Mail Management also provides the collection of mails from each Unit, Department, or Section of the company. Then, they also preparing and recording ordinary mails for posting.

C. Special Mail

1. Pos Ekspres

Ekspres is a fast, convenient and economical means of sending sensitive documents based on next day delivery guarantee instead of following the regular delivery schedule. The guarantee is based upon the Next Day Delivery Networks as included on the special Pos Ekspres envelopes.

Pos Ekspres guarantees the reach of the mails at the intended destination within one, two or three days depending on the delivery zone. Non-conforming to its highly valued standard of service in terms of speed, Pos Ekspres reaches out to more than 344 mail destinations within the country.

2. Pos Daftar

Pos daftar of Registered Mail is the answer for the secured posting of items or documents considered valuable or important. Pos daftar makes sure that your important documents reach the hands of your intended recipient.

A receipt is issued as evidence of mailing at the time of posting. Your recipient, on the other hand, is required to sign a delivery receipt upon receiving your letter. Thus, this is a highly secured service for important documents. In case there is any loss or damage, you will receive compensation (confined to Pos Malaysia Berhad's terms and conditions). There are 2 additional services offered for Pos daftar. You are required to pay an additional postage for any of these services: (i) Acknowledgement Receipts (AR) and (ii) Insurance.

Acknowledgement Receipts (AR) service enables you to receive an acknowledgement upon the receipt of your items by your intended addressee. Then, tick the AR box on the Posdaftar label where you may obtain card from postal counter. You also may pay the AR fee in form of postage stamps ( 40 cents for within Malaysia, 60 cents for Singapore and Brunei and RM1 for other countries. Affix the stamps at the top right hand corner of the envelope. Then, attach AR card to the Posdaftar item.

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Insurance, you have to tick the INSURED box on the Posdaftar label and fill in the insured value. You may pay the insurance fee in the form of postage stamps. Insurance fee is RM 1.50 for every RM 100 insured value or part thereof. Affix the stamps at the top right hand corner of the envelope. For domestic delivery, minimum insured value is RM 100 and maximum limit is RM 3000. For overseas posting, limitation and types of items that can be insured depend on the availability if the service and the procedures imposed by the country of destination. You are advised to enquire about this at your nearest Post Office.

D. At Office Services

1. P.O.BOX

P.O. Box service allows general public, organisations and companies to rent mailboxes at the General Post Offices nationwide. You can always collect your mails during and after business hours. You can even do so during the weekend or public holiday.

Our P.O. Box is available for both individual and corporate rental. Aside from the convenience of mails access, the security and confidentiality of your personal residential address is guaranteed.

A special and personalised way of mail delivery, mailbox can be rented on a long term basis or short term. All applications for a P.O. Box may be forwarded to the State Manager of the General Post Office by using the prescribed form.

The rental rates for one calendar year is RM 50, for second half of a calendar year is RM 25, and the key deposit is RM 30.

2. Locked Bag Services

This service enables you to collect your company's mass mails in the form of a locked bag. That way, you can cut on labor cost and time.

All mails will be compiled into bags and locked before being handed over to the customer. The security of the mails is assured and you can use this service on a short term basis as well. However, this service is only available at all General Post Offices nationwide.

You can apply for this service by completing an Application Form. You can obtain it form the General Post Offices and thereafter, submit the completed form to the respective State Managers. You would then be given an Authorisation Card. You need to present this card to pick-up your mails.

The bags can only be collected during business hours at the General Post Offices. You have to provide two bags with keys with the bags adhering to specifications set by Pos Malaysia Berhad.

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The rental rates for one calendar year is RM 50 and for second half of a calendar year is RM 25.

4.0 EXPRESS SERVICES

A. Domestic Pos Laju

The services were available in 40 Poslaju Centres and more than 650 Post Offices. Domestic Pos Laju offers delivery standard of next working day for areas covered by Poslaju Centres. The customers also offered delivery standard of additional one or two days for areas covered by Post Offices delivery. The weight limit of 30 kg for items posted at Post Office counters and items exceeding 30 kg are acceptable at Poslaju Centres.

B. Domestic Time Certain Service (TCS)

Under this service, the guaranteed delivery by 10 am the next working day. Then,money-back guarantee for the customers such as refund of TCS surcharge in the event of service failure. There also have the compensation for damage, loss and violation of documents will be made according to Poslaju terms and conditions. Poslaju published rates and additional domestic TCS surcharge of RM 3.50 per item is applicable.

C. Time Certain Service (to Singapore)

The services provide guaranteed delivery of documents to Singapore by 10 am the next working day. The delivery coverage areas include Singapore Main Island, Jurong Island and Sentosa Island. The weight limit is 1 kg. There also full refund of TCS surcharge in the event of service failure. Besides, the compensation for damage, loss and violation of documents will be made according to Poslaju terms and conditions

D. Same Day Delivery

This service guaranteed same day delivery. There have 2 choices of delivery,(i) Local Town Delivery: Document posted to be delivered within the same town (ii) Cross-Town Delivery: Document posted to be delivered across towns. There will full refund of SDD surcharge in the event of service failure and compensation for damage, loss and violation of documents will be made according to Poslaju terms and conditions.

5.0 Counter Services

1. Billing and FinancialA. Household

As an alternative for bill payment, you can make payment to selected bills at one go in any of our Post Offices. You don't have to rush from one place to another to do so as Pos Malaysia Berhad is entrusted by several utilities providers to become their representative to accept payment.

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Services offers to customers:a) Electricity bill

- Tenaga Nasional Berhad, within Peninsular Malaysia (Cash only) - Perbadanan Pembekalan Letrik Sarawak (Cash and cheque) - Sabah Electrical Sdn. Bhd. (Cash only)

b) Water bill

Instruction:Cash and cheque payment are acceptable unless stated. Cheque must be made payable to Pos Malaysia Berhad and crossed. You must remember to write down the Account Number for the bill and your contact number on the reverse side of the cheque. Payment is made at the counter and verification of payment is on-the-spot and it is guaranteed.

B. Ticketing/Booking

Pos Malaysia Berhad's services are not limited to the sale of mailing items and Government agencies related services. We too have moved forward to bring leisure closer to you.

Planning for that holiday or that weekend runaway has never been much easier until Pos Malaysia Berhad, again, provides an alternative for the busy city folks. Now, you can make payment for your 'escapade' in a convenient way, via our Post Offices.

a) Resort World Berhad - Payment for booking of hotel rooms in Resort World Berhad's chain of hotels (Cash only) - List of Post Offices linkage

b) Air Asia Sdn. Bhd. - Payment for booking of Air Asia tickets at all Post Offices in Wilayah Persekutuan Kuala Lumpur, Selangor and all computerised Post Offices nationwide (Cash only)

2. Retail Services

A. Domestic Money Orders

This service is one of a convenient way to remit money with vast Post Offices network. The maximum of money is RM10,000. The service available at all computerised Post Offices. An encashment provided at all computerised Post Offices. There also an immediate refund of expired Money Order where there no later than 1 year after issuance. The validity period of Money Order is 3 months from the last day of the month of issue.

The benefit of the service is vast Post Offices network for encashment and purchase of Money Order. It is secure and refundable. Then, it allows the senders to send small messages without extra letter accompanying and RM2 per commission order.

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B. International Money Orders

A trusted way to send money abroad and the service are available at all Post Offices all around Malaysia.

The benefits using of the International Money Order is where can caters to 21 countries bilaterally. There also no extra charges for inquiry charges, and will be charged RM4 per commission order.

6.0 Logistics Services

Pos Logistik is a relatively new entrant in the logistics and distribution industry. Its main strategy is to offer comprehensive logistics services solutions via land, sea and air together with support from its warehouse and distributions network. PosLogistik is your ideal trade facilitator.

With the support of the largest existing network of post offices in the country, PosLogistik will be able to serve your commercial needs efficiently and effectively simply because of its widest customer reach.

With PosLogistik, you are well connected physically anywhere in Malaysia. With its fleet of vehicles and air transportation network, Pos Logistik is your ideal distribution provider. You do your business, we connect you.

Key Features PosLogistik clearly defines its services based on the needs of the industry that it serves. Markets' Needs

a) Inbound Logistics

Customs Clearance, import permit documentation, transportation, warehousing, distribution channel/break bulk, proof of delivery, track and trace.

b) Outbound Logistics

Customs clearance, Export documentation, Transportations, Warehousing, Distribution channel/break bulk, Proof of delivery, Track and trace

Services

a) Freight Forwarding o With Transmile, now you can send your goods to more overseas destinations

than before. o Transhipment, project cargo for trade exhibition, ATA Carnet and exclusive

packaging

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o Trade advisory on AFTA, LMW, Licence MFW, sales tax, service tax as well as Certificate of Origin from SIRIM, Ministry of Health and Ministry of Agriculture

o Consultancy services pertaining to customs procedure such as application of licence, tax exemptions and other related matters

b) More than 1279 trucks and vans ready to take your goods anywhere in Malaysia c) Warehousing d) Existing modern warehouse with advance facilities located in Kuala Lumpur

International Airport measuring 60,000 square feet will be able to cater for your business needs, e.g. manufacturers, shipping agents, freight forwarders, traders etc.

e) Door to door Corporate Parcel service f) From manufacturers, distributors to traders and more, this service will help business

operators in making sure their goods in parcels or boxes are delivered right to the recipient's door step

Strengths

a) Large Post Office network b) Capital (rank 30th rich 1 billion companies) c) Human Resources with more than a century of experiences d) Global networking

Conclusion

As a conclusion, we as the provider have to show that we understand the problem from the customer points of view. Seeing the problem or situations through customers’ eyes is the only way to understand what they think has gone wrong and why they’re upset. We have to move faster to achieve the customer needs and wants. Give the services guarantees to the customers so they will still loyal with the services offered.

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APPENDIX

1. Domestic PosLaju ChargesDelivery Zone Domestic Poslaju Delivery Zone

Zone 1 Local Town Delivery

Zone 2 Within Peninsular Malaysia (PM)

Within Sarawak

Within Sabah

Zone 3 Between Sabah & Sarawak

Zone 4 Between PM &Sarawak

Zone 5 Between PM & Sabah

Charges

Domestic Poslaju Charges

ZONEDocument Merchandise

First 500 gm (RM) Add. 250 gm (RM) 2.001 - 2.5 kg RM) Add. 0.5 kg RM)

Zone 1 3.50 0.80 9.50 0.50

Zone 2 4.50 1.00 16.00 2.00

Zone 3 6.00 1.50 21.00 3.00

Zone 4 6.50 1.50 26.00 3.50

Zone 5 7.00 2.00 31.00 4.00

2. Postage Rates for Standard Letter

3. Rates for Non-Standard Letter:

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Non-standard mail Up to 50gm 0.50

Above 50gm up to 100gm 0.75





4. Time Certain Service (to Singapore)

Time

Latest Time of Posting

CENTRE COUNTER PICK-UP*

Kuala Lumpur 5.00 pm 3.30 pm

Shah Alam 5.00 pm 5.00 pm

Klang 5.00 pm 4.00 pm

Bandar Baru Bangi 4.15 pm 3.30 pm

* For Contract Customer and On Demand Pick-Up service only

Charges

Sample Merchandise

WEIGHT (KG) EMS Charges (RM) TCS Surcharges (RM) TCS Rates (RM)

Up to 0.5 22 41 63

0.5 to 1.0 24 41 65

5. Same Day delivery

Time

Latest Time of Posting

PRODUCT TYPE COUNTER PICK-UP DELIVERY

Local Town Delivery Up to 1.00 pm Up to 12.00 pm 1.30 - 5.00 pm

Cross-Town Delivery Up to 11.45 am Up to 10.45 am 1.30 - 5.00 pm

Coverage

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SDD Coverage Areas

NO. AREAPOSTCODE

RANGELOCAL TOWN

CROSS-TOWN

1 Kuala Lumpur & Petaling Jaya

46000 - 46999 Yes Yes

47200 Yes Yes

47399 - 47499 Yes Yes

47800 - 47810 Yes Yes

50000 - 50999 Yes Yes

60000 Yes Yes

68000 Yes Yes

68100 Yes Yes

2 Shah Alam & Klang 40000 - 40999 Yes Yes

47000 Yes Yes

47100 Yes Yes

47500 - 47600 Yes Yes

48000 Yes Yes

41000 - 41999 Yes Yes

42100 - 42199 Yes Yes

42000 Yes Yes

3 Kajang 43000 - 43010 Yes NA

43030 Yes NA

43200 Yes NA

43300 Yes NA

43400 Yes NA

43600 Yes NA

43650 Yes NA

43900 Yes NA

62000 Yes NA

63000 Yes NA

4 Penang 10000 - 10999 Yes NA

11200 Yes NA

11400 Yes NA

11600 Yes NA

11700 Yes NA

11900 Yes NA

5 Butterworth 12000 - 12999 Yes NA

6 Bukit Mertajam 14000 - 14009 Yes NA

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7 Johor Bahru 80000 - 80999 Yes NA

8 Kluang 86000 - 86009 Yes NA

9 Batu Pahat 83000 - 83050 Yes NA

10 Muar 84000 - 84009 Yes NA

11 Pasir Gudang 81700 - 81709 Yes NA

12 Segamat 85000 Yes NA

13 Kota Bharu 15000 - 15999 Yes NA

14 K. Terengganu 20000 - 20999 Yes NA

15 Kuantan 25000 - 25999 Yes NA

16 Melaka 75000 - 75450 Yes NA

17 Seremban 70000 - 70999 Yes NA

18 Nilai 71800 - 71850 Yes NA

19 Ipoh 30999 Yes NA

31350 Yes NA

31400 Yes NA

20 Taiping 34000 - 34009 Yes NA

21 Teluk Intan 36000 - 36009 Yes NA

22 Alor Setar

05000 - 05999 Yes NA

06250 Yes NA

06550 Yes NA

06560 Yes NA

06570 Yes NA

23 Kulim 09000 - 09009

Yes NA

09600 NA

24 Sungai Petani 08000 - 08009 Yes NA

25 Kangar 01000 - 01009 Yes NA

26 Langkawi 07000 - 07009 Yes NA

27 Kuching 93000 - 93999 Yes NA

28 Sibu 96000 - 96008 Yes NA

29 Miri 98000 - 98008 Yes NA

30 Bintulu 97000 - 97015 Yes NA

31 Sarikei 96100 - 96108 Yes NA

32 Kota Kinabalu 88000 - 88999 Yes NA

33 Sandakan 90000 - 90008 Yes NA

34 Tawau 91000 - 91035 Yes NA

35 Labuan 87000 - 87008 Yes NA

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Coverage

Local Town and Cross-Town Delivery Charges

WEIGHT

Local Town Delivery Cross-Town Delivery

Charges (RM)

Surcharges (RM)

Local Town (RM)

Charges (RM)

Surcharges (RM)

Cross-Town (RM)

< 500 gm 3.50 6.00 9.50 4.50 7.50 12.00

500 - 750 gm 4.30 6.00 10.30 5.50 7.50 13.00

> 750 gm - 1 kg

5.10 6.00 11.10 6.50 7.50 14.00

6. Domestic Money Order

7. International Money OrderCountries with Bilateral Services

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Countries Maximum Amount*

Bangladesh USD 2,000

Brunei BND 2,000

Canada CAD 2,000

China USD 1,000

Egypt USD 350

India INR 1,000

Indonesia USD 1,500

Japan USD 2,000

Korea USD 2,000

Myanmar KYT 600

Pakistan PKR 50,000

Philippines USD 2,000

Qatar USD 2,000

Singapore SGD 2,000

South Africa USD 2,000

Sri Lanka LKR 50,000

Taiwan USD 2,000

Thailand THB 50,000

Turkey USD 1,000

United Arab Emirates USD 350

Vietnam USD 1,000

* Subject to change

8. Pos EkspressSize

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No. SizeMax.

Weight(gm)

Max. Thickness

(mm)

Price(RM)

1 353 mm x 250 mm 500 10 4.50

2 229 mm x 162 mm 250 5 3.50

3 220 mm x 110 mm 100 33.00

(Window / Non - window)

4 340 mm x 250 mm 1000 25 7.00 (Packed)

5 250 mm x 210 mm 750 25 6.00 (Packed)g)

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definition of service guarantee

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