Final Exam- Ch 5,8,11,10 Flashcards
Why is environmental phsycology used
to avoid the custome in being disoriented or frustrated upon entering an unfamiliar structure.
What is the concept of servicescape
Based on the idea that the physical environment influences the behavior and perception of the service to both customer and employee
what is the first behavioral need of a customer when entering a place
Orientation
what are the questions that place orientation asks
- where am I
- and also function orientation such as how does this organization work and what do i do next
How does a customer gain control when they enter a physical settings
-by using spatial cues along with experience to identify where they are and where they should go
what happens when spatial cues and previous experience are not present
anxiety and a sense of helplessness alow with disorientation
how can disorientation in service settings be reduced
by having a facility design that incorporated, previous ecperience, design legibility and orientation aids
what is a formula facility
is it a facility that looks exactly the same as other facilities with the same name so customers are not confused
describe the service scape framework
- Environmental dimensions
- Holistic environment
- Psychological moderators
- Internal responces
- Behavior
what it included in the environmental dimentions
- Ambient conditions - sounds, odors
- Function/space- equipment, furnishing
- sign, artifacts- style of decor, signage
What it is called when you view the entire enviormental concept
Holistic environment
what is included in the psychological moderators
- cognitive- beliefs, symbolic meaning
- emotional- mood & attitute
- physiological - pain, comfort, movement
who are the internal responders
- Employee responces
2. Customer responces
what is the service scape designed to do
to invoke social interaction between and among customer and employees
what can be done to the enviromental dimensions of a servicescape
they can be controlled by the firm to enhance the employee and customer actions and perceptions of the service
describe in detail what is included in ambience
- ambience affects our five sences
- it is the background of our environmetn ex. temp, lighting, music and scent
describe in detail spatial layout and functionality
- the arrangement of furnishing and equipment and the relationship among them
- ex. menusat mcdonalds
describe sign, symbols and artifacts in detail
- many items in the physic env. serve as explicit or implicit signs ex. smoking and recyckke signs
- overall quality of furnishing give an aesthetic impression for visitor
what does the environmental concepts create
it created a package that conveys an image suggesting relative quality,potential usage and targte market segment
what are orientation aids
they are signs such as you are here to help the customer know where they are
what are way-findings
techniques that people use to navigate from place to place
ex. different colors in subways
ex. a google map on a website
- audible assistance
- ex. reducing the # of keystrkes in a website
what does a service scape provide
- visual metaphor of a company’s offerings
- facilitate customer orientation
- encourage social interaction among customers
- focus of employee behavior ex. hospital doors
what is included in a service packaage
the design and layout represent the supporting facility component of the service package
what are some examples of how facility design impacts the implicit services?
-ex: privacy, security, atmosphere well being
what are the factors that influence the facility design? and describe each
- the nature and objective of the organization- ex. fire station -space for vehicles, personnel and equip
- land availability and space requirements- ex. accomodate constraints. ex only expand upward in an urban setting, ex. parking
- flexibility- adapt to changes, ex drive thrus, big water tanks
- Security - ex. granny cams, survailance cameras, neighborhood pool
- Aesthetic factors- ex. nordstorm and ross - affect service the employee provides
- community and environment- ex. will the church have enough parking or will they be parking on surrounding homes . ex jail - be safe yet treat immates fairly
- dog boarding - noise with neighbors
what are the different types of manufacturing processes
- Project- one of a kind
- Job Shop- many specilized dept
- Batch- Group of customers treated at the same time
- Flow- fixed sequence of opp.
- Continuous- uninturrupted delivery
what is another word for flowchartin
swim lane flow chart
what is a gantt chart
an activity based schedule of the mortgage service process provides another visual represntation for understanding the process
what is cycle time
the average time to compete sussesive units
what is a bottle neck
an operation that limits production
-sower activity or largest CT
what is a capacity
a measure of output per unit of time when fully busy
Sytem capacity -min per hour ( 1/CT)
CT: Cycle time (Bottle neck )
what is capacity utilization
a measure of the actual unit of output compared to the process capacity when it is fully busy
what is throughout time
the time it takes to complete a process from time of arrival to the end
-it includes CP + waiting time
wat is a critial path
the ongest path from begining to end of a process flow diagram
what is rush order flow time
the time it takes to get through the system from beggining to end without any time in the que
what is total direct labor content
the sum of all operation times consumed in performing the service (aka. billabe hours)
what is direct abor utiization
a masure of the percentage of time the worker actually contintributes to the a fully busy service organization
how do you calculate direct labor utilization
Tota direct labor content/ ( process cyce time) * (# of workers)
some standard services that can be divided into inflexible sequence of steps or operations that all customers must experience in known as a
flow process
what is flexibility?
a measure of the degree to which the service can react to changing economic situations
-ex. ex. locating in a number of states to avaoid economic downturns
what is competitive positioning?
methods by which a firm can establish itsef relative to its competitors
- ex. many locations= marquet awareness
- buying islands
what is deamand management?
the ability control quantity, quality and timing of demand.
-ex. locating a hotel near disneyland
what is focus in the stralegic location considerations
a focus can be developed by ofering th same narrowly defined service at many locations.
ex. cookie cutter approach
- many multisite services with a formula facility
- downside: demand cannibalization- too many compnies take away sales from other of the same companies close to them.
- ex. h & r black
wat are some service facility location planning
- Competitice positioning
- demand manageent
- focus
- flexibility
what are some strategic considerations
- competitive clustering
- saturation marketing
- marketing intermediaries
- sabstitute communication for travel
- separation of from and back office
- impact of the internet on service location
what is competitive clustering
a reaction to observed consumer behavior when they are choosing among competitors
-ex. buying a car go to areas that has many car dealerships
what is saturation marketing
grouping outlets of the same firm tightly in urban and other high traffic areas
- downside: cannibalization of sales
ex. attract customers with impulse buying - ex. ice cream vendors of same firm in every corner
- ex. starbucks
what are marketing intermediaries
link in the supply chain that links the producer or other intermediaries to the end consumer
-ex. bank of america and its visa card
what is the substitution of communitcation for travel
- it is an alternative to moving people from one place to another. Done by telecommunications
- ex. direct payroll into account instead of having the person walk to the bank
define the separation from front and back office
when the front and back office need not be co-located (aka. not need to share a facility)
-ex. macdonalds in texas have order takers working in Iowa
what is the strategic role of the front office?
creating a barrier to entry
what is the strategic goal of the back office
to achieve economies of ecale
what is the impact of the internet on service location
- before the place was constricted to the a certain area
- no amazon ex. focuses of the shipping that is available
- 24/7 access
waht is e-distance
the barrier created between by interna and external navigation
- ex- customers destination no more than two clicks
- ex. theater with competitive custering
what are the site considerations
- Access
- Visibility
- Traffic
- Parking
- Expansion
- Goverments
- Environment
- competition
- Labor
- Complementary services
what are the two generic strategies fr demand and capacity
level capacity and chase demand
wat can you use to achieve level capacity strategy
introduce marketing- oriented strategies such as price incentives that can smooth customer demand
-ex. utilities
what can you do to achieve chase demand strategy
- consider operations-oriented such as workships and shceduling to vary capacity to meet demands
- ex. cal center
what is a hybrid strategy
when both leveled strategy and chase stratefy as used to achieve yield management
ex. level strategy i smaintained but implement chase strategy when demand is persued
what are the strategiesfor managing demand
- develop complementary services
- segment the demand
- develop reservation systems
- establish price incentives
- Promoting off-peak demand
- customer induced variability
what goes along with managing demand
level capacity
what goes along with managing capacity
chase demand
what are the strategies for managin capacity
- sharing capacity
- cross training employees
- using part time employees
- increase customer participation
- scheduling work shifts
- creating adjustable capacity
what are the different types of customer induced variability
- time variability - either idle service or waiting cust.
- capability variability- being able to do something
- Request variability - ex. CD in bank
- Effort variability- cust put back shoping cart
- subjective oreference vairbaility - treat special
what are the two categories for managin customer induced variability
- accomodation
2. Reduction
what does the accomodation strategy favor
favors cusotomer ecperience over opperational efficiency
what does the reduction strategy favor
favor operational simplicity over service experience
what is an advantage to a hybrid strategy when looking at the customer expericne
you can operate as operational simplicity without compromising service experience.
ex. aairlines offering sef kiosk or desk
what is segmenting the market
grouping different customrs and try to level out the demand
- ex. trying to schedule more appointments
- walk ins vs reagulars
what two groupsis demand usually grouped into?
- Random arrivals
2. planned arrivals
What is an example of offering price incentives
- charging customers different rates to encourage better use of the facility
ex. park ranger offering differenctial pricing for the difference experience types
describe promoting off peak demand
- creative use of off- peak capacity results from seeking different sources of demand
ex. use of a resot hotel during off-season as a retreat location for a business
ex. ski resot duringsummer used as backpack area
what is developing complementary services
- offering a service that benefits both the company and the customer
- ex. adding a bar and divering customr while they wait. also benefits the company
ex. movie theater- adding video games in lobbys
ex. heating does AC as well
decrive the reservation system and overbooking
- taking reservatin presells the potential service
what is overbooking
- accepting more reservation than they are than there are availabe seats
- cons: the US Federal aviation administration instituted regulations requiring airlines to reimburse overbooked passangers and to find them space on the next available flight
what is service capacity
-a measure of ourtput per unit of time when used at full capacity.
what is daily workshift scheduling
scheduling workshiftscarefully during the day to determine staffing needed
what are the steps in daily workshift shceduling
- Determine the forcasted demand in .5 hour intervals
- Convert the forecasted demand into operator requirement
- Schedule shifts
- Assign operational shifts
what is scheduling weeks with days off constraints
- ex. used for hospital and firestating that need to work 24/7
- ex. work five days and get two consecutive days off
- problem: determining the lowest number of workers needed
what are some drawbacks of increasing customer participation
quality of labor is not under managements control
how can you create adjustable capacity
a portion of the capacity can be made varibale through design
-es. slack times - supportive task during slower periods and concentra on essential task during rush periods
how can a company share capacity
- aservice delivery ofter require large invenstments in equipment in facilities so when underutilization you can find other uses for ut ,
what is yied management
variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource
what yield management characteristics are more appropriate for service firms
- Relative fixed capacity- # of seat is the same
- ability to segment the markets- ex. first cass, strandard, budget
- perishable inventory- an unsold seat may be lost forever
- Products sold in advanced - ex. reservations - game
- Fluctuating demand- allow mgr to inc utilization during periods of slow demand
- Low marginal sales cost and high capacity change cost - ex. high cost to add more rooms to hotel
what is the goal of holiday inns HIRO
to mazimize occupancy and recenue mean renting as many room as possible for the best price the market will bear
what are the different domestic growths and expansion strategies
- Focused Service
- Focused network
- Clustered Service
- Diversified Network
Describe what a focused service is
- A single service offered at a single location
- ex. limited to single site because of talented personmneex. chef
describe what a focused network is
- a multisite facilities offering a single service
- allows management to maintain contro while ensuring consistency
- must have a well focused service concept
- sophisticated communication and control
- e. operation manuals
describe a clustered service
- multiservice in a single location
- grow by diversifying their service
- ex. USAA ( for veterans- offers- banking, mutual funds, auto and homeowners insurance
- these create economies of scope because the additional services require only marginal increases in variabe cost
what is a diversified network
- when a firm combines both multisite and multiservice strategies.
ex. unite d airlines tried aquiring car-rental agencies and hotels.
what is franchising
an alternative to expznding through useof internally generated profits or by seeking funds in the capital markets
what is franchasing defined as
a system by which a firm grants to others the right and license to sell a product or service and possibly use the sytem developed by the firm
what are some benefits to the franchisee
- Management training
- Brand Name
- National advertising
- Aquisition of proven business
- economies of scale
what are some of the issues for the franchisor
- Franchisee autonomy
- Franchise contract
- Conflict resolution
what is franchise autonomy
the amount of freedom that is permitted in the operation of the unit
what is a franchise contract
- its goal is to avoid future litigationsthat might prevent a cooperative relationiship from developing
what are some of the issues where conflict resolution arrises
- how should fees be established and profits distributes
- when should faciities be upgraded and how are cost shades
- how far should the franchiser go in saturating a singe market with outlets
what are some of the generic international strategies
- globa strategy
- multidomestic strategy
- Transnationa lstrategy
tHE APPROPRIATENESS OF THE GENERIC INTERNATIONAL STRATEGY DEPENDS ON ?
- global integration- economies of scale
2. local responsivess- adaptto local needs or cutures
describe global strategy
- high global integration ,low local responsiveness
- world isseen as one large market that can be approached in one way
- ex. ikea
describe multidomestic strategy
- low global integration, high local responsiveness
- serve the needs of local countries ex. mcgraw hill
- staffed by ocat nationala s
what is transnational strategy
high global integration, high local responsivess
- certain corporate assets but also adapted to local responsivess
- ex. mcdolds corporate- adapts menus to locals
what are the five things that a borderless company must balance
- Customers- quality, price, design . known brand
- competition- operating with partners, copy cats?
- Company- the structure of the company will detr. how well they do oversees
- Currency- fluctuating currency , global expansion to avoid currency risk in other locations
- Country- downtrns in one region can be offset by another , selling in competitors markets makes them use their profits
what does the word global localization mean
- be accepted as a local company while maintaining the benefits of worldwide operations
what are the three questions in planning transnational oprtations
- Cultural Transferability
- Worker Norms / labor market norms
- Host governement policy
what is cultural tranferrability
- balancing global standardization with local customization
- ex. banks and interest int he middle east
what are the five differences in labor market norms/ hofstedes cultural dimensions
- power distant index - degree of equality - ex. high power vs low power
- individualism- degree society reinforces individualism
- masculinity- gender differentiation
- uncertainty avoidence index - level of tolerance for uncertainty
- long term orientation - degree society embraces or does not embrace long term to tradition or dvotion, ex. long term commitment
what is host ogverment policy
- restrict groth of service globalization, descrimination
ex. giving preferential treatment to local shipers
what are the five basic globalization strategies
- multicountry expansion
- importing customers ex.disney
- following your customers ex. important customer
- service offshoring ex. call center
- beating the clock ex. bypass constraints og domestic time zones
