Part 5 Ch12 Customers' role in service delivery Flashcards

1
Q

The role of customers: Co-creating value

A

The goal is not to create value for customers but to mobilize customers to create their own
value from the company´s various offerings

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2
Q

However, Customer sometimes are unwilling or just unable to cocreate,
because:

A
  • Lack of understanding of their roles.
  • Not being willing or able to perform their roles.
  • No rewards for “good performance”.
  • Interfering with other customers.
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3
Q

Levels of Customer Participation Across Different Services

A

Low: consumer presence required during service delivery
Moderate: consumer inputs required for service creation
High: customer co-create the service
ppt - 29

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4
Q

Presence of other (fellow)
Customers in Service Delivery

A
  • Other customers can detract from satisfaction:
    • Disruptive behaviors.
    • Overly demanding behaviors.
    • Excessive crowding.
    • Incompatible needs.
  • Other customers can enhance satisfaction:
    • Mere presence.
    • Socialization/friendships.
    • Roles: Assistants, teachers, supporters, mentors.
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5
Q

Customer Roles in Service Delivery

A
  1. Productive resources
  2. Contributors to service quality and satisfaction
  3. Competitiors
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6
Q

Customers as productive resources

A
  • When self-checking in or when dropping-off baggage customers can be thought of as “partial employees”:
  • Contributing effort, time, or other resources to the production process.
  • Customer inputs can affect organization’s productivity.
  • Key issue: Should customers’ roles be expanded or reduced?
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7
Q

Customers as Contributors to
Service Quality and Satisfaction

A
  • Customers can contribute to:
  • Their own satisfaction with the service:
    • By performing their role effectively.
    • By working with the service
      provider.
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8
Q

Customers as Contributors to
Service Quality and Satisfaction

A
  • Customers can contribute to:
    • The quality of the service they receive:
    • By asking questions.
    • By taking responsibility for their
      own satisfaction.
    • By complaining when there is a
      service failure.
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9
Q

CUSTOMERS AS COMPETITORS

A

Customers may “compete” with the
service provider in two ways:
1. “Internal exchange” = they produce a service for themselves (e.g., home maintenance, computer repair)
2. “external exchange”= have someone else provide it (e.g., friends or “other customers)

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10
Q

Self-Service Technologies (SSTs)
(the ultimate in customer participation)

A

Services produced entirely by the
customer without any direct involvement or interactions with the
firm´s employees
e.g. ATM, Airline check-in

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11
Q

3 Strategies for enhancing customer participation

A
  1. Define customer’s roles
  2. Recruit eductae and reward customers
  3. Manage the customer mix
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12
Q

Define Customer’s Roles

A

the different responsibilities and activities that customers undertake in relation to a particular service.
Key Considerations:
- Start by examining the type of service being delivered
- Customer roles may vary based on organizational decisions, such as investments and the service delivery process.

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13
Q

Categories of Customer’s Job:

A
  1. Helping oneself (IKEA):
    Customers take an active role in the service process, often involved in self-service or customization.
    Example: IKEA customers assemble furniture themselves.
  2. Helping others (study buddy):
    Customers engage in activities that assist others.
    Example: A study buddy helps homework
  3. Promoting the company (word-of-mouth and YouTubers):
    Customers contribute to the promotion of the company through positive word-of-mouth or creating content on platforms
    Example: Customers sharing positive experiences online
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14
Q
  1. Recruit educate and reward customers
A

Customers should be facilitated in taking their roles seriously

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15
Q

2.1Recruiting Customers

A

Objective: Recruit the right customers to enhance their engagement and contribution to the service.
Segmentation:
Identify and target specific customer segments that align with the service objectives

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16
Q

2.2Educating and Training Customers

A

Objective: Equip customers with the knowledge and skills needed to effectively perform their roles in the service.

Approach:
Provide educational resources and training materials.
Example: YouTube tutorials serving as tutors for customers, guiding them on using products or services effectively.

17
Q

2.3 Rewarding Customer Contribution

A

Objective: Recognize and reward customers for their positive contributions to the service.

Methods:
Acknowledge and incentivize customer efforts.
Example: Offering discounts, loyalty programs, or exclusive benefits to customers who contribute by saving costs, time, or energy.

18
Q

2.4 Managing Negative Outcomes

A

Objective: Mitigate the negative impact of inappropriate customer participation in the service.

Strategies:
Monitor and address inappropriate customer behaviors.
Example: Consider the role of front-line employees in handling customer issues effectively and, if necessary, making decisions like terminating a customer relationship.

19
Q
  1. Managing Customer Mix
A

Challenge: Customers simultaneously experience the service, requiring effective management of different customer-to-customer interactions.

20
Q

Strategies 3.1 Positioning and Segmenting:

A
  • Utilize positioning and segmentation strategies to manage compatibility among diverse customer groups.
  • Example: Designating specific seating areas in a restaurant for different customer preferences.
21
Q

3.2 Front-line Employee Training

A

Train front-line employees to handle conflicts and enhance opportunities arising from diverse customer interactions.
- Equip employees with conflict resolution skills.
- Example: Provide training on effective communication to address conflicts during a football match or on an airplane.

22
Q

3.3 Rules and Codes of Conduct

A

Implement rules and codes of conduct to guide customer behavior and interactions.

  • Establish clear guidelines for customer behavior.
  • Example: Enforce policies on noise levels or conduct in public transportation to ensure a harmonious experience for all passengers.