test 3 Flashcards
Service culture according to Christina Gronroos?
A culture where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers, is considered a natural way of life and one of the most important norms by everyone in the organization.”
Critical importance of service employees? (4)
They are Brand Marketers
The organization in customers eyes
The service
Services marketing triangle
internal marketing (enabling the promise) external marketing (making the promise) interactive marketing (delivering the promise)
Organizations are constantly trying to align the 3 parts of the triangle
Enabling promising
This involves hiring the right people, proper training, support systems, rewards and incentives
making the promise
understanding customer needs, managing expectations, sales and promotion, advertising
Keeping the promise
Customer interactions with sub contractors or business partners, face to face or telephone interactions
What are the two ways to use the service marketing triangle?
Overall assessment and service implementation strategy
Effect of employee behaviors on service quality dimensions
Frontline employees directly influence customer perceptions of everything because there is such disrecpancy from employee to employee
Who are boundary spanners?
Frontline service employees. This is a high stress position.
Traditional organization chart vs Customer oriented organization chart
Traditional is when front line employees are who interact with customers, followed by supervisor and then manager. Customer oriented is the other way around
Empowerment trade offs
Pros: Employees feel better about themselves and usually offer much better service
Cons: High labor costs, training costs, employees might make bad decisions
How do consumers widen the service performance gap?
Not knowing their roles, lack of understanding role, no rewards for good performance, interfering with other customers
How do customers detract other customers
disruptive behaviors, over crowding, incompatible needs, overly demanding
How customers can enhance others experience
Warm presence, socialization,
3 major roles played by customers in service delivery
Productive resources, Contributors to service quality, Competitors
Strategies for enhancing customer participation (3)
Define customer roles, Recruit educate and reward customers, Manage the customer mix
How to manage the customer mix
Assess compatibility of segments. Isolate the incompatible segments and enhance the compatible segments
Impacts of excess demand
Some customers may be turned away. Some customers who are getting attention may feel that they have not been provided full attention because employee is worried about people in line (Professors example of when a line piles up in his office)
When demand exceeds optimum capacity
no one will be turned away, but the quality may suffer
When demand and supply operate at optimum level
Staff and facilities are at ideal level..customers can receive full treatment and no one is over worked
When demand is below optimum capacity
Resources are underutilized and customers usually get a lot of attention. This can be bad if the experience relies on others to be there
Constraints on capacity
Most sporting and entertainment venues have the same optimum and maximum capacity
Stratagies for when demand is too high
communicate busy times to customers, offer incentives to non peak hours, take care of loyal and high need customers first
Strategies for when demand is to low
Educate about non peak times, differenciate on price, vary the service offering
Yield management
attempts to allocate the fixed capacity of a service provider to match the potential demand in various market segments so as to maximize revenue or yield.
Yield equation
Actual Revenue/ Potential revenue
3 waiting line configurations
single queue, multi queue, take a number
