Description
It describes the process of service encounter in detail. The ppt is for service marketing. It discusses service firm's service model and also explores the role of customer as a co-producer. The service encounter triad is also discussed in detail.
The Service Encounter
Learning Objectives
• Use the service encounter triad to describe a service firm’s delivery process. • Discuss the role of organizational control systems for employee empowerment. • Prepare abstract questions and write situational vignettes. • Discuss the role of customer as coproducer. • Describe how elements of the service profit chain lead to revenue growth and profitability.
The Service Encounter Triad
Service Organization
Efficiency versus autonomy Efficiency versus satisfaction
Contact Personnel
Perceived control
Customer
Definitions of Culture
• Schwartz and Davis (1981) - Culture is a pattern of beliefs and expectations shared by the organization’s members. • Mintzberg (1989) - Culture is the traditions and beliefs of an organization that distinguish it from others. • Hoy and Miskel (1991) - Culture is shared orientations that hold the unit together and give a distinctive identity.
The Service Organization
• Culture ServiceMaster (Service to the Master) Disney (Choice of language) • Empowerment Invest in people Use IT to enable personnel Recruitment and training critical Pay for performance
Organizational Control
Beliefs Systems Boundary Systems Diagnostic Control Systems Interactive Control Systems To contribute Core values Identify core & mission values Risks to be avoided Critical performance variables Strategic Uncertainties To do right Specify and enforce rules To achieve Build clear targets
To create
Encourage learning
Contact Personnel
• Selection 1. Abstract Questioning 2. Situational Vignette 3. Role Playing • Training Unrealistic customer expectations Unexpected service failure
Difficult Interactions with Customers
Unrealistic customer expectations 1. Unreasonable demands 2. Demands against policies 3. Unacceptable treatment of employees 4. Drunkenness 5. Breaking of societal norms 6. Special-needs customers Unexpected service failure 1. Unavailable service 2. Slow performance 3. Unacceptable service
Use scripts to train for proper response
The Customer
• Expectations and Attitudes Economizing customer Ethical customer Personalizing customer Convenience customer • Customer as Co-Producer
Service Encounter Success Factors
Customer Service Provider Human Machine
Employee selection Interpersonal skills Support technology Engender trust Easy to access Fast response Verification Remote monitoring User friendly Verification Security Easy to access Compatibility Tracking Verification Security
Human
Machine
Employee Perceptions of Customer Service at a Branch Bank
Outstanding
6 5
Custom er
Terrible
4 3 2 1 1
Terrible
2
3
4
5
6
Outstanding
Employee
Satisfaction Mirror
More Repeat Purchases Stronger Tendency to Complain about Service Errors
More Familiarity with Customer Needs and Ways of Meeting Them Greater Opportunity for Recovery from Errors
Higher Customer Satisfaction
Lower Costs
Higher Employee Satisfaction
Higher Productivity
Better Results
Improved Quality of Service
Is attitude emphasized? Are job previews utilized? Are customers screened?
Are employees encouraged to refer friends? Are referrals from the “best” employees given priority?
Careful Employee and Customer Selection (and Self-selection)) Employee Referrals of Potential Job Candidates High-Quality Training
Is training for job and life? Is it an important element of quality of work life?
Is satisfaction measured periodically? Are measurements linked to other functions on the cycle? Satisfied Employees
Cycle of Capability
Well-Designed Support Systems ? Information ? Facilities
Do they reflect needs of the service encounter? Are they designed to foster relationships?
Are they linked to service objectives? Are they balanced between monetary and non-monetary?
Appropriate Rewards and Frequent Recognition Clear Limits on, and Expectations of, Employees Do they limit the “right” risks? Are they logical to employees?
Greater Latitude to Meet Customer’s Needs
Does it reflect top management “talk”? Is it enough to allow delivery of results to customers?
Service Profit Chain
Internal
Operating strategy and service delivery system Loyalty Service concept
External
Target market
Customers
Satisfaction
Employees
Capability Service quality
Productivity & Output quality
Revenue growth
Service value
Satisfaction
Loyalty
Profitability
Customer orientation/quality emphasis Allow decision-making latitude Selection and development Rewards and recognition Information and communication Provide support systems Foster teamwork
Quality & productivity improvements yield higher service quality and lower cost
Attractive Value Service designed & delivered to meet targeted customers’ needs Solicit customer feedback
Lifetime value Retention Repeat Business Referrals
Topics for Discussion
• How does the historical image of service as servitude affect today’s customer expectations and service employee behavior? • What are the organizational and marketing implications of considering a customer as a “partial employee”? • Comment on the different dynamics of one-on-one service and group service. • How does use of a “service script” relate to service quality? • If the roles played by customers are determined by cultural norms, how can services be exported?
Interactive Exercise
The class breaks into small groups and each group comes up with an example from each of the four organizational control systems (i.e., belief, boundary, diagnostic, and interactive)
Amy’s Ice Cream on Guadalupe
Amy’s Ice Cream
1. Describe the service organization culture at Amy’s Ice Cream. 2. What are the personality attribute of the employees who are sought by Amy’s Ice Cream? 3. Design a personnel selection procedure for Amy’s Ice Cream using abstract questioning, a situational vignette, and/or role playing.
AMY’S ICE CREAM Abstract Questions
• What was your most rewarding past experience and why? • What are you looking for in your next job? • What have you done in the past to irritate a customer? • What flavor of ice cream best describes your personality?
AMY’S ICE CREAM Situational Vignette
A particular customer has the irritating habit of always showing up about two minutes before closing and staying late. Often this occurs on the night when weekly store meeting are held after closing time. This delays starting the meeting and furthermore employees are on the clock waiting for the customer to leave. What would you do?
AMY’S ICE CREAM Situational Vignette
As a new employee at a busy store, you have been routinely performing clean-up tasks (garbage removal and restroom cleaning). Company policy dictates that these are tasks to be shared. It has become clear that two employees consistently avoid these jobs in favor of more pleasant duties. How would you handle this situation?
Enterprise Rent-A-Car
1. How has Enterprise Rent-A-Car (ERAC) defined its service differently than that of the typical national car rental company? 2. What features of its business concept allow ERAC to complete effectively with the existing national rental care companies? 3. Use the service profit chain to explain the success of ERAC.
doc_936360828.ppt
It describes the process of service encounter in detail. The ppt is for service marketing. It discusses service firm's service model and also explores the role of customer as a co-producer. The service encounter triad is also discussed in detail.
The Service Encounter
Learning Objectives
• Use the service encounter triad to describe a service firm’s delivery process. • Discuss the role of organizational control systems for employee empowerment. • Prepare abstract questions and write situational vignettes. • Discuss the role of customer as coproducer. • Describe how elements of the service profit chain lead to revenue growth and profitability.
The Service Encounter Triad
Service Organization
Efficiency versus autonomy Efficiency versus satisfaction
Contact Personnel
Perceived control
Customer
Definitions of Culture
• Schwartz and Davis (1981) - Culture is a pattern of beliefs and expectations shared by the organization’s members. • Mintzberg (1989) - Culture is the traditions and beliefs of an organization that distinguish it from others. • Hoy and Miskel (1991) - Culture is shared orientations that hold the unit together and give a distinctive identity.
The Service Organization
• Culture ServiceMaster (Service to the Master) Disney (Choice of language) • Empowerment Invest in people Use IT to enable personnel Recruitment and training critical Pay for performance
Organizational Control
Beliefs Systems Boundary Systems Diagnostic Control Systems Interactive Control Systems To contribute Core values Identify core & mission values Risks to be avoided Critical performance variables Strategic Uncertainties To do right Specify and enforce rules To achieve Build clear targets
To create
Encourage learning
Contact Personnel
• Selection 1. Abstract Questioning 2. Situational Vignette 3. Role Playing • Training Unrealistic customer expectations Unexpected service failure
Difficult Interactions with Customers
Unrealistic customer expectations 1. Unreasonable demands 2. Demands against policies 3. Unacceptable treatment of employees 4. Drunkenness 5. Breaking of societal norms 6. Special-needs customers Unexpected service failure 1. Unavailable service 2. Slow performance 3. Unacceptable service
Use scripts to train for proper response
The Customer
• Expectations and Attitudes Economizing customer Ethical customer Personalizing customer Convenience customer • Customer as Co-Producer
Service Encounter Success Factors
Customer Service Provider Human Machine
Employee selection Interpersonal skills Support technology Engender trust Easy to access Fast response Verification Remote monitoring User friendly Verification Security Easy to access Compatibility Tracking Verification Security
Human
Machine
Employee Perceptions of Customer Service at a Branch Bank
Outstanding
6 5
Custom er
Terrible
4 3 2 1 1
Terrible
2
3
4
5
6
Outstanding
Employee
Satisfaction Mirror
More Repeat Purchases Stronger Tendency to Complain about Service Errors
More Familiarity with Customer Needs and Ways of Meeting Them Greater Opportunity for Recovery from Errors
Higher Customer Satisfaction
Lower Costs
Higher Employee Satisfaction
Higher Productivity
Better Results
Improved Quality of Service
Is attitude emphasized? Are job previews utilized? Are customers screened?
Are employees encouraged to refer friends? Are referrals from the “best” employees given priority?
Careful Employee and Customer Selection (and Self-selection)) Employee Referrals of Potential Job Candidates High-Quality Training
Is training for job and life? Is it an important element of quality of work life?
Is satisfaction measured periodically? Are measurements linked to other functions on the cycle? Satisfied Employees
Cycle of Capability
Well-Designed Support Systems ? Information ? Facilities
Do they reflect needs of the service encounter? Are they designed to foster relationships?
Are they linked to service objectives? Are they balanced between monetary and non-monetary?
Appropriate Rewards and Frequent Recognition Clear Limits on, and Expectations of, Employees Do they limit the “right” risks? Are they logical to employees?
Greater Latitude to Meet Customer’s Needs
Does it reflect top management “talk”? Is it enough to allow delivery of results to customers?
Service Profit Chain
Internal
Operating strategy and service delivery system Loyalty Service concept
External
Target market
Customers
Satisfaction
Employees
Capability Service quality
Productivity & Output quality
Revenue growth
Service value
Satisfaction
Loyalty
Profitability
Customer orientation/quality emphasis Allow decision-making latitude Selection and development Rewards and recognition Information and communication Provide support systems Foster teamwork
Quality & productivity improvements yield higher service quality and lower cost
Attractive Value Service designed & delivered to meet targeted customers’ needs Solicit customer feedback
Lifetime value Retention Repeat Business Referrals
Topics for Discussion
• How does the historical image of service as servitude affect today’s customer expectations and service employee behavior? • What are the organizational and marketing implications of considering a customer as a “partial employee”? • Comment on the different dynamics of one-on-one service and group service. • How does use of a “service script” relate to service quality? • If the roles played by customers are determined by cultural norms, how can services be exported?
Interactive Exercise
The class breaks into small groups and each group comes up with an example from each of the four organizational control systems (i.e., belief, boundary, diagnostic, and interactive)
Amy’s Ice Cream on Guadalupe
Amy’s Ice Cream
1. Describe the service organization culture at Amy’s Ice Cream. 2. What are the personality attribute of the employees who are sought by Amy’s Ice Cream? 3. Design a personnel selection procedure for Amy’s Ice Cream using abstract questioning, a situational vignette, and/or role playing.
AMY’S ICE CREAM Abstract Questions
• What was your most rewarding past experience and why? • What are you looking for in your next job? • What have you done in the past to irritate a customer? • What flavor of ice cream best describes your personality?
AMY’S ICE CREAM Situational Vignette
A particular customer has the irritating habit of always showing up about two minutes before closing and staying late. Often this occurs on the night when weekly store meeting are held after closing time. This delays starting the meeting and furthermore employees are on the clock waiting for the customer to leave. What would you do?
AMY’S ICE CREAM Situational Vignette
As a new employee at a busy store, you have been routinely performing clean-up tasks (garbage removal and restroom cleaning). Company policy dictates that these are tasks to be shared. It has become clear that two employees consistently avoid these jobs in favor of more pleasant duties. How would you handle this situation?
Enterprise Rent-A-Car
1. How has Enterprise Rent-A-Car (ERAC) defined its service differently than that of the typical national car rental company? 2. What features of its business concept allow ERAC to complete effectively with the existing national rental care companies? 3. Use the service profit chain to explain the success of ERAC.
doc_936360828.ppt