test 1 Flashcards
Forces transforming service markets:
government policies, social changes, business trends, advances in IT, globalization
^ these create: new markets and product cats, inc in D for services, intense competition
^ creates: innovation in service products and delivery’s systems stimulated by improved tech
^: customers have more choice and exercise more power
Service success hinges on:
understanding cust and comp, viable business models, creation of value for customers and firm, inc focus on services marketing and management
explain each force transformations service market
govt policies: changes in reg, privatization, new rules to protect cust, new agreements on trade
social changes: rise cons expectations, more affluence, more ppl short on time, inc desire for buying experiences, ubiquitous social networks, easier access to more info
business trends: push to inc SH value, productivity and cost savings, franchising, non profits
advances in it: internet, big data, ai , etc
globalization: inc intl travel, mergers and alliances, offshoring cust service, etc
what are services
economic activity offered by one party to another
commonly employ time based performances to bring desired results
in exchange for money time effort, service customers expect value from access to goods, labor, facilities, environments, professional skills, netforms, and systems
4 categories of services
(based on diffs in nature of service act (tang/intang) and who or what is direct recipient (people/possessions)
people processing
customers physicall enter service factory, cooperate actively with service operation
managers should think about process and output from customers perspective (to identify benefits created and non financial costs: time, mental, physical effort)
possesion processing
customers less involed
involvement may be. limited to just dropping off posession
production and consumption separable
mental stimulus processing
ethical standards required when customers who depend on such services can potentially be manipulated by suppliers
physical presence of recipients not requored
core content of services is information based (can be inventoried)
information processing
most intangible form, may be transformed into enduring forms of service output
line between info processing and mental stimulus processing may be blurred
characteristics of services and marketing challenges
cannot be inventoried
intangible elements usually dominate value creation
often difficult to visualize and understand
customers may be involved in co production
people may be part of the service experience
operational inputs and outputs tend to vary more widely
the time factor often assumes great importance
distribution may take place through nonphysical channels
7 ps of services marketing:
trad mix
1. Product: service products are at the heart of services marketing strategy, consists of core (meet primary needs) and supplementary elements (value-added enhancements)
2. Place and time: service distribution can take place through physical and non physical channels, delivery decisions (where, when, how), convenience is important
3. Price and other user outlays: pricing generates income but custs find it a key part, identify and minimize non monetary costs incurred by users (time, effort)
4. promotion
extended mix
5. Process: how a firm does things as important as what it does, customers often actively involved in processes (co producers)
6. Physical environment: create and maintain physical appearances
7. People: interactions with personnel strongly inlufence customer perceptions of service quality
service profit chain and links in it
demonstrates the links in a managerial process that are essential for success in services businesses
Links in the service profit chain
1. cust loyalty drives profitability and growth
2. cust sat drives cust loyalty
3. value drives cust sat
4. quality and productivity drive vale
5. employee loyalty drives service quality and productivity
6. employee sat drives employee loyalty
internatal quality as delivered by ops and it drives employee sat
7. top mgmt leadership underlies the chains success
stage 1, model of service consumption
pre purchase stage
- awareness of need:
a service purchase is triggered by an underlying need
need may be due to: unconscious minds, physical conditions, external sources
2: info search: clarify needs, explore solutions, identify alt service products and suppliers
when need is recognized, ppl search for solutions
alternatived come to mind, from the evoked set (set of possible services or brands that a customer may consider in the decision process)
- eval alts: review supplier info, info from third parties, discuss options with service personnel, get advice and feedback from third part advisors friends and family
- make decisions on service purchase and often make a reservation
service attributes
search attributes help customers eval a product before purchase
experience attributes annotate be evaluated before purchase
credence attributes are product chars that customers find impossible to eval confidently even after purchase and consumption
stage 2 model of service consumption
service encounter stage
request service from a chosen supplier or initiate self service (payment may be upfront or billed later)
service delivery by personnel or self service
stage 3, model of service consumption
post encounter stage
eval of service performance
future intentions and behaviours
7perceived risks in purchasing services
functional (unsat performance outcomes)
financial (monetary loss)
temporal (wasted time)
hysical (personal injury)
psychological (fears and negative emportions)
social (how others think and react)
sensory (unwanted impact on any of five senses)
how do consumers vs firms handle risk
how do consumers handle risks: seek info from respected personal sources, use internet to compare service offerings, look for good rep, warranties, visit service facilities, ask employees
firms manage consumer perception of risk: preview servie through brochures, websites, vids, encourage visit to service facilities, free trial, advertise, display credentials, use evidence management, give customers online access to info about order status, offer guarantees
components of customer expectations (5)
Desired service level: wished for level of service quality that customer believes can and should be delivered
adequate service level : min acceptable level of service
predicted service level: service level that customer believes firms will actually deliver
zone of tolerance: range within which customers are willing to accept variations ins revise delivery
purchase decision: when alts have been compared and evaded select best option, can be simple is perceived risks are low, tradeoffs often involved, price key
the servuction system
-visible front state and invisible backstahe
-service ops system: technical chose where inputs are processed and service elements created, usually backstage
-service delivery syst: front stage where final assembly of service elements takes place and service is delivered to customers
-includes customer interactions with ops and other custs
theatrical metaphor of service delivery
service delivery is a series of events that custs experience as a performance
service facilités - stage, may change from one act to another
front stage personnel are like cast members, backstage personnel support team
roles: like actors employees have roles to play and behave in specific ways
scripts: specified sequences of behaviour for customers and employees
types of control
behavioural control : allows the customer to change the service sit by asking the firm to customize its typical offerings
decisional control: customer can choose between two or more standardized options without changing either option
cognitive control: excercised when the customer understands why smt is happening and knows what will happen next
how customers eval services
expectancy disconfirmation model of satisfaction
cust sat is central to the marketing concept
attitude like judgement following a service purchase or service interactions
custs have expectations prior to consumption observe service perf compare it to expectations
service quality
the high standard of performance that consistently meets or exceeds customer expectations
-cust sat and service quality are determined by comparing expectations with their performance perceptions
-sat = eval single consumption expeirence
quality = stable attitudes and beliefs about a firm
10 dimensions used by consumers in evaluating service quality
tangibles
reliability
responsiveness
credibility
security
competence
courtesy
access
communication
understanding the customer
cust loyalty
willingness to continue patronizing a firm over the LT, includes preference/liking/future intentions
cust engagement involves loyalty behaviours: recommending a firm to friends and associates, helping others custs, providing feedback, writing reviews
customer, competitor, company analysis
customer analysis: examination of market characteristics, customer needs and related characteristics and behaviours
competitor analysis: current positioning, strengths and weaknesses
company analysis: current brand positioning and image, resources, limitations and constraints
Segmentation
divide pop of possible customers into groups with common service related characteristics
market segmentation: composed of a group of buying sharing common characteristics, needs, purchasing behaviour, consumption patterns
demographics snot good on its own, psychographic strengthens brand identity and create emotional connection, behavioural focuses on observable behaviour, needs based focuses on what customer truly want in a service
dev right service concept for a specific segment
use research to identify and prioritize attributes of importance to market segments
segmenting based on service levels
level of performance firm plans to offer on each attribute (easily quantifiable attributes ar easier to undertsand, qualitative attributes are ambiguous and subject to individual interpretation
establishing service levels
- can segment custs according to willingness to give up some level of service for a lower price (price sensitive custs look for inexpensive service with low perf on key attrbutes)
four focus strats for competitive advantage
- fullly focused
limited range of services to narrow and specific market
ops: developing recognized expertise in a well defined niche may provide protection against comp, allows firms to charge premium prices
risks: market small, D for servic can be displaced by comp from alt products, purchasers could have economic downturn - market focused
narrow market segment with wide range of services, make sure firms have operational capability to deliver each service deselected, need to understand customer purchasing practices and preferences
select a market and provide all services
EX. STUDENTS, SENIORS, NEWBORN BABIES, SCHOOL uniforms - service focused
narrow range of services to broad market
as new segments are added firm needs to develop knowledge and skills in serving each segment
ex. bank lawyer plumber taxi uber limo - unfocused
broad markets with wide range of services
many service providers fail into this category
danger of becoming a jack of all trades and master
distinguishing a service from its competitors (four principles of positioning strategy)
- must establish position for firm or product in minds of target consumers
- position should provide one simple consistent message
- position must set firm/product apart from comp
- a company cannot be all things to all ppl it must focus its efforts
six qs for effective positioning
stand for in minds of cons
who do we serve now and who in future
value prop
differ from comp
perceived by target segments
what changes to strengthen positioning
Service product components
core product (deliver principle benefits and solutions)
supplementary services (facilitate and enhance core product)
delivery processes (how care and supplementary service elements are being delivered to the customer)
benefits of well defined service product
custs understand service and value prop (what it comprises, how its creates, what value they receive)
also help employees understand them
flower of service model
custs understand service and value prop (what it comprises, how its creates, what value they receive)
also help employees understand them
facilitating supplementary services
information: customers often require info about how to obtain and use a g/s
order taking: custs need to know what is available and may want to secure commmitement to delivery, process should be fast and smooth
billing: bills should be clear accurate and intelligble
payment: custs may pay faster and more cheerfully if you make transactions simple and convenient for them
enhancing supplementary services
consultation: value can be added to g/s by offering advice and consultation tailored to each customers needs and sit
hospitality: customers who invest time and effort in visiting a business and using its services deserve to be treated as welcome guests
safekeeping: customers prefer not to worry about looking after the personal possessions that they bring with them to a service site
expections: custs appreciate some flexibility when they make special requests and expect responsiveness when things don’t go according to plan
four brand architecture options
branded house : company applies brand name to multiple offerings in unrelated fields (uni)
sub brands: corporate or master brand is main reference point but each product has own name
endorsed brands: product brand dominates but corporate name is still featured
house of brands: each of the brands owned by the corporation is promoted under its own name
hierarchy of new service categories
- style changes (visible changes in service design or scripts)
- service improvements (modest changes in the performance of current products)
- supplementary service innovations (addition of new or improved facilitating or enhancing elements)
- process line extensions (alt delivery procedures)
- product line extensions (additions to current product lines)
- major process innovations (using new processes to deliver existing products with added benefits)
- major service innovations (new core products for previously underlined markets)
developing new services
core product is of secondary importance, ability to maintain quality of total service offering is key, accompanying marketing support activities are vital, market knowledge is of utmost importance
individ services
most service orgs offer a line of service offerings, bundles, specific experiences part of overall service
branding these individually, typically using sub brands, helps to differentiate one bundle of output from another
branded service experiences ar easier to market and sell
service tiering
branding is used to differentiate services but also to clearly differentiate service levels
brand equity
a service firms presented brand is more effective in building brand awareness
customers service experience with the brand is more important in building brand equity
hierarchy of new service categories
style changes: visible changes in service design or scripts
service improvements: modest changes in the performance of current products
supplementary service innovations: additions of new or improved facilitating or enhancing elements
process line extensions: alternative delivery procedures
product line extensions: additions to current product lines
major process innovations: using new processes to deliver existing products with added benefits
major service innovations: new core products for previously undefined markets
five principles of service design thinking
- user centered, from the customers perspective
- co creative, involving all key stakeholders
- sequential, following the customer journey
- evident, making intangible aspects tangible
- hositic, considering the entire service experience using all service experience using all five senses
market synergy
good fit between new product and firms image resources, advantage vs competition in meetings customers needs, strong suppport from firm during/after launch, firm understand customer purchase decision behaviour
how branding can be used to tier service products
organizational factors: strong interfunctional cooperation and coordination, internal marketing to educate staff on new product and its competition, employees understand importance of new services to firm’
market research factors: scientific studies conducted early in development process
product concept well defined before undertaking field studies
new service development:
objectives, idea generation, concept screen, concept development, concept eval, final service
new services: low entry barrier important (low manu cost, no distribution, little market testing)
delivery at focal point of service
determining type of contact
customers visit service site: convenience of service factory locations and op schedules important when customer must be physically repent (people process)
service transaction conducted remotely : achieved with help of logistic and telecoms
in a typical services sales cycle: distribution embraces three interrelated flows:
a) information and promotion flow b) negotiation flow c) product flow
payment can all be online channels
cust want online service bc convienvce, ease of search, broad selection, better prices, 24/7 service *
channel preferences vary among custs
complex high risk = ppl rely on personal channels
gretaer confidence and knowledge = impersonal and self service
tech savvy cust = personal channels
convenieve is a key drier of choice
channel integration is important! !!
service that is delivered throwing multiple channels requires a seamless and consistent user exp
new channels are prone to inconsistent and disjointed
need effective pricing
factors to consider for selecting a specific site
pop size and chars
pedestrain and vehicular traffic and its chars
convinences of access
comp in this area
nature of nearby businesses
avilabiloy of labour
availability of site locations, rental costs and contractual conditions and regs
places of service delivery
determinants
cost, productivity and access to labor are key determinants to locating service facility
locational contraints: operational reqs, geographic factors, need for economies of scale
role of intermediaries
/ franchising
challenges for original supplier: act as guardian for overall process, ensure each elements offered by intermediaries fits overall service concept
franchising
expand delivery of service concept without high level of monetary investment
franchisor provides training equip and support marketing, franchisee invest time and finance
⅓ of systems fail in first four years
disadv of franchising: some loss of control, effective quality control is important but difficult, conflict between franchisees
alt: license another supplier to act on og suppliers behalf to deliver core product
challenges of distribution in large domestic markets
a. distances involved and existence of multiple time zones
b. multiculturalism
c. diffs in laws and tax rates of various states or provinces and those of the respective federal governments
factors favouring adoption of transnational strategies
(5 drivers)
- market drivers (common customer needs across many countries, global suits who demand consistent service, availability of intl channels)
- compeition drivers (presence of comp from diff countries, interdep of countries, transnational policies of comp)
- technology drivers (enhanced performance and capabilities in tech stuff, miniaturization of equipment,ent, digitization of voice video and text)
- cost drivers (econs of scale, sourcing efficiencies, improved perf and lower operating costs for telecoms and transport)
- govt drivers (favourable trade, compatible technical standards, common marketing regs)
pricing objectives
seek profit / cover costs (rev/prodit based)
build demand - demand maximization, full capacity utilization- build a user base -stimulatee trial and adoption of new services, build market share/large user base (patronage and user based objectives)
pricing strategy on three legs!!
cost to firm
competitor pricing
value to customer
cost based pricing
-set prices relative to financial costs, activity based costing, pricing implications of cost analysis
-set price relative to financial costs (problem is defining costs)
-traditional costing appreoach, emphizing expense cats (arbitrary overheads allocation), may result in reducing value generated for customers
management systems (link resource expenses to variety and complexity of g/s produced, yields accurate cost info)
value exchange wont take place unless cust sees positive net value i transaction
net value = perceived benefits to cust (gross value) - all perceived outlays (money, time, mental/physical effort)
value based pricing
understand net value: customers weigh the perceived benefit sof the service against the perceived costs they will incur
-value is a low price, value is wtv i want in a product, value is the quality i get for the price i pay, value is what i get for what you give
- managing the perception of value: effective comms and even personal explanations are needed to help custs understand the value they receive
-reduce related monetary costs (cut time spent searching for and purchasing services)
-reduce non monetary costs (time, physical, psychological, sensory)
-service user can occur costs during any of the three stages of the service consumption model : search costs, purchase and service encounter costs, post purchase costs
competition based pricing
- non price related costs of using competing alts are high
- personal rels matter
- switching costs are high
- time and location specifically reduces choice
- managers should not only look at comps prices dollar for dollar but should examine all related financial and non financial costs
revenue management
rev management is price customization … charge diff value segments diff prices for same product based on price sensitivity
most effective when… high fixed capacity, high fixed cost structure, perishable inventory, variable and uncertain demand, varying customer price sensitiviu
uses math models to examine data and info to determine …. what price to charge within each price bucket, how many service units to allocate to each bucket
rate fences, physical
rate fences deter custs WTP more from trading down to lower prices (minimize cust surplus)
physical:
basic product
amenities
service level
other physical characteristics
rate fences non physical
NON PHSYCIAAL
transaction characteristics
consumption characteristics
buyer characteristics
issue of ethics and consumer concerns
- customers are vulnerable when service is hard to eval as they assum higher price means higher quality
- many services have complex pricing schedules (hard to understand, difficult to calc full costs in advance of service)
- quoted prices not the only prices (hidden charges, many kinds of fees)
- too many rules and regulations (customers feel constrained, exploited), customers face unfair fines and penalties
how fairness can be designed
- design clear, logical and fair price schedules and fences
- use high published prices and present fences as ops for discounts
- communicate cons benefits of rev mgmt
- use bundling to hide discounts
- take care of loyal custs
- use service recovery to compensate for overbooking
questions to design effective pricing strategy
how much to charge?
what basis for pricing
what should collect payment
where should payment be made
when should payment be madee
how should payment be made
how to commmunicate prices ?/ = relate price to that of competing products, use salespeople, good signage, ensure price is accurate and intelligible
hard to price service
hard to calc costs, variability of inputs and outputs, importance of time factor, custs find service pricing difficult to understand
5 Ws of integrated service comms model
WHO is our target audience =budget decisions and comms program eval
WHAT do we need to communicate and achieve =budget decisions and comms program eval
HOW should we communicate this =ethics and consumer privacy
WHEN do comms need to take place =corporate design
=IMCs
3 broad target audiences
prospects (employ trad comms mix bc prospects are not known in advance
users (more cost effective channels)
employees
comms strategic objectives
- build service brand and positioning and its service products against comp
- persuading target that their service product offers a better solution
- attract new users and maintain contact with existing custs
educational objectives in service settings
- create memorable images of specific companies and their brands
- build awareness/interest
- compare service favourably with comp offerings
- build preference by comm strengths n benefits
- reposition service relative to comp
- reduce uncertainty/risk by providing useful info and advice
stimulate or dampen D to match capacity
D mgmt strats: reduce usage during peak D periods, stimulating D during off peak period
contrubution of service personnel
- central to service delivery in high contrast services (make service tangible and personalized), advertise employees at work to help custs understand nature of service encounter, even take initiate to provide discounts, upgrades, etc
- show custs work behind stage
- adv must be ralistic
- messsages set cust expectations
GUIDELINES FOR SERVICE ADV
service is a performance not an object
target employees as a second audience
provide tangible clues
capitalize on WOM
ensure continuity through symbols, spokesperson, trademarks etc
promote reasonable expectations
develop concrete image
objectives for service adv
REASSURANCE, ENCOURAGE TRIAL, TEACH HOW TO USE, CREATE D, RECOGNIZE CUST/EMPL
role of service marketing comms
comm quality
add value
facilitate cust involvment
promote contribution of service personnel
challenges of service comms
overcome intangibility: may be difficult to comms service benefits to customers, especially when intangible
4 problems from overcome intangibility
- generality (items that comprise a class of objects, persons, or events)
- non searchability
- abstractness (non one to one correspondence with physical objects)
- mental impalpability (custs find it hard to grasp benefits of complex, multidimensional new offerings)
overcome intangibility
A: service consumption episodes
G: system documentation for objective claims, service perf episodes for subjective claims
NS: consumption documentation reputation
IMP: service process episodes, case history episodes, service consumption episodes
use tangible cues in adv
use metaphors:highlight how service benefits are provided —> they communicate value props more dramatically and emphasize key points of difference
PUSH
focused on pushing products to a specific audience, goal is to bring what you offer to customers in your marketing. social media channels are considered to be push sources bc they’re great for launching new or nice products
PULL
draw cons to product. create loyal custs by providing marketing that showcases what they’re looking for
Service delivery channels
service outlets, frontline mployees, self service delivery points, websites social media pages and apps, corporate design
direct marketing
send personalized messages to highly targeted microsegments
need details on customers and prospects
permission marketing: persuade customers to volunteer their attention (build strong rel with cust)
sales promotion and 6 types
comms that come with an incentive
motiate customers to use a specific service sooner in greater vol with each purchase
can generate attention and put firm in favourable light
adv: reduce risk for consumer, diff segments diff prices, add excitement
sampling (free set time)
coupons
short term discounts
sign up rebates
gift premiums
prize promotions
personal selling and pr
personal selling: interpersonal encounters educate customers and promote preferences for particular brand or product
common in b2b and infrequently purchased services
PR: efforts to stimulate positive interest in an org and its products through third parties
company website
the web is used for a variety of comms tasks
-creating consumer awareness and interest
-providing info and consultation
-allowing two way communication with customers through email and chat rooms
-encouraging product trial allowing customers to place orders
-measuring effectiveness of advertising or promotional campaigns
innovative companies look for ways look for ways to improve the appeal and usefulness of their sites
online advertising
banners
placing advertising banners and buttons on portals such as yahoo, netscape and other firms websites
draw online traffic to the advertisers own site
web sites often include adv of other related but non competing services
online adv
search engine advertising
reverse broadcast network : search engines let advertisers know exactly what consumer wants through their keyword search
can target relèvent messages directly to desired consumers
serveral advertising options
- pay for targeted placement of ads to relevant keyword searches
- sponsor a short text message with a click through link
- buy top rankings in the display of search results
impersonal to personal comms
tech has created a gray area between the two
direct mail and email can be personalized
electronic recommendation agents can also personalize comms
with advances of on demand tech, consumer are increasingly empowered to decide how and when they like to be reaches
messages through service delivery channels
service outlets: can be through banners posters signage etc
frontline employees: comms from frontline staff can be for the core service or supplementary elements, new customers in particular need help from service personnel
self service delivery points : atms , vending machines and websites are examples
WOM
recommendations from other customers viewed as more credible
strategies to stimulate WOM : having satisfied customers providing comments, using other purchasers and knowledgeable individs as reference, creating exciting promotions that get get people talking, offering promotions that encourage customers to persuade their friend to purchase, developing referral incentive schemes
recommendations from other customers viewed as more credible
blogs & twitter
blogs —> comms about customer experiences influence opinions of brands and products
some firm have started to monitor blogs as form of market research and feedback
twitter—> becoming increasingly popular l fastest growing social networking service
media coverage—> compares,contrats service offerings from competing orgs, advice on best buys
when comms?
dont promote during heavy usage periods
math timing to perceptions and behaviours the firm wants to manage
timing of comms is managed with help of media plan flowchart
comms budget 4 ways
- objective and task method
- define the communications objectives along the services marketing comms funnel
- determining the tasks needed to achieve these objectives
estimating the costs of the program
- empirical research method
- run a series of tests or field experiments with different communications budget to determine the optimum level of comms spent - all you can afford
- historical data (5% of last years sales, 2% more than last year)
ethical issues in communication
- advertising selling and sales promotion all lend themselves easily to misuse
- comms message often include promises about benefits and quality of service delivery. customers are sometimes disappointed
- why were their expectations not met? = poor internal comms betweeen ops and marketing personnel concerning level of service performance, over promise to get salles, deceptive promotions
- unwanted intrusion by aggressive marketers into ppls personal lives
corporate design
useful in competitive markets to stand out from crowd and be instantly recognizable in diff locations
use colors
use names as central element
use trademarked symbol rather than name
create tangible recognizable symbols to connect with corporate brand names
Service process
mapping and designing service proces (flow chart, blueprint, process design considerations)
manage cust participation in service process (custs as co creators, self service techs, managing cust reluctance to change)
redesign service processes (indicators for redesign need, objectives, how to)
FLOWCHARTING
displaying nature and sequence of the different steps involved when a customer flows through the service process
BLUEPRINTING / develops blueprint
specifies in detail how a service process is constructed (service blueprints map customer employee and service system interactions, they should the full cust journey from service initiation to final delivery of desired benefit)
develop a blueprint : identify key activities and delivering service, define big picture before drilling down to obtain a higher level of detail
advantages of blueprinting:
distinguish frontstage and backstage
clarify interactions between custs and staff
identify fail points, take preventative measures, prepare ocntingency
pinpoint stages where cust is waiting
key components of a service blueprint 9
define standards for front stage activities
specify physical evidence
identify main customer actions
line of interaction (custs and front stage personnel)
frontstage actions by customer contact personnel
line of visibility (btwn front and backstage)
backstage actions by customer contact personnel
support processes involving other service personnel
support processes involving IT
three act performance of blueprint dev
introductory scene
delivery of core product
drama concludes; remaining actions move quickly and smoothly, no surprises
use fail proofing, poka yokes
improve reliability of process
identify fail points, analyse reasons reveals ops for failure proofing, find fail safe methods for employees and custs, poka yokes ensure service staff do things
correct
poka yoke = lean six sigma tool = strats to prevent future mistakes
cust poka yokes prep cust for the encounter, understanding their roles, selecting correct service
service standards
service attributes (responsive, reliable, competence, comm, credible, etc)
service process indicators (processing time, base of cust sat)
service process standards (define quality goals)
performance targets (define departmental service quality goals)
key principles for sequencing service encounters
start strong
build an improving trend
create a peak
get nad experiences over with early
segment pleasure combine pain
finish strong
redesign processm, why
brand new processes to stay relèvent!!
revitalize outdated process
changes in target market
D of target market
changes in external env make existing practices obsolete and require redesign of underlying processes/tech
indications you need redesign
extensive info exhcnahed
data not useful
high ratio of checking or control activities to value adding activities
inc expection processing
customer complaints about inconvenient unnecessary procedures
deterioration of internal processes
bureacrazy
market changes, segment changes, tech
redesign effort focus on….
reduced number of service failures
reduce cycle time from cust initiation of a service process to it completion
enhanced productivity
inc cust sat
service process redesign often involves….
examining service blueprint with key stakeholders
eliminating non value adding steps
addressing bottlenecks in the process
shifting to self service
shift to self service
inc productivity and quality, lower costs, enhance tech reputation, differentiates company)
custs = co-creators
levels
they influence productivity and quality of service process/output , recruit custs like employees , cooperate with each other
3 level
low: employees/systs do all the work, standardized service ofte
medium: custs help firm, provide needed info and instructions, make some personal effort, share physical possessions
high: cust works actively with provider to co product, cannot be created without cust , cust can jeopardize quality of service outcome
benefits of self service techs (SSTs)
convenience, time savings, fast service, flexible location/time
greater control over service delivery, more info, higher perception of customization
lower prices/fees
SSTs should and should be
SSTs should be… conveniently located, obtain detailed information and complete fast transactions, works well
SSTs should not…. fail, poorly designed/difficult to use, make mistakes
put SST to test:
does it work reliably, is it better than interpersonal alts, if it fails what systems are in place to recover
managing cust resistance
to sst
develop customer trust
understand cust habi
pre test test new procedures and equipment
publicize benefits of changes
teach custs and promote trial
monitor performance and continue to seek improvements
service robots
simple and repetitive tasks low in emotional/social and cognitive/analytical complexity
services that require high cognitive and analytical skills can be delivered effectively by service robots
high cognitive and emotional skills with inc be delivered by human/robot teams
jaycustomers
behaves in thoughtless or abusive fashion, causing problems for fir, employees, or other custs
disrupt processes, affect service quality, spoil experience of other custs
what to do: avoid attracting them, preventative measures, control beh quickly, legal action
consequences:
staff negatively affect, productivity and quality suffer
customers: spoil consumption experience
organization : unmotivated employees m direct financial costs of restoring damaged property legal fees and paying fraudulent claims
six types of jaycustomers : thief, rule breaker, belligerent, family feeder, vandal, deadbeat
