Service outlets licensed by a principal to deliver a unique service concept it has created or popularized.
The process of managing multiple customer segments is called _____ management.
The counterpart of the service _____ is the manufacturer of physical goods.
In a(n) _____ services environment, the servicescape must be planned to attract, satisfy and facilitate the activities of both customers and employees simultaneously.
Customers are viewed as _____ when they produce a service for themselves.
The _____ customer-defined standards are opinion-based measures and cannot be directly observed.
In the services marketing triangle, _____ marketing refers to the service promise being delivered.
All aspects of the organization's physical facility are collectively referred to as the ______________. (as well as other forms of tangible communication.)
A(n) _____ strategy capitalizes on the skills and strengths of both service principal and service intermediary and engenders a sense of trust that improves the relationship.
By participating in the service delivery process, customers create _____ for themselves.
_____ conditions include background characteristics of the environment such as temperature and lighting.
In the services marketing triangle, _____ marketing refers to all the activities the firm must carry out to train, motivate and reward its employees to enable the service promise to be delivered.
A retail travel agent is a _____ agent.
A _________ is paid by the party who hired them.
In the services marketing triangle, _____ marketing refers to communications a firm uses to make promises to customers regarding service delivery.
The _____ dimension of service quality is highly dependent on employees' ability to communicate their credibility and to inspire trust and confidence.
On site, customers require two kinds of orientation. They are place orientation and ______________ orientation.
Things that can be counted, timed or observed through audits are _____ customer-defined service standards.
Define customers' jobs, Recruit, educate, and reward customers, Manage the customer mix
Three strategies for enhancing customer participation.
Package, Facilitator, Socializer, Differentiator
Four roles of the servicescape.
External, Internal, and Interactive Marketing
Components of services marketing triangle.
"Making the promise." Understanding customer needs, Managing expectations, Traditional marketing communications, Sales and promotion, Advertising, Internet and web site communication.
"Delivering the promise." Service delivery; Reliability, responsiveness, empathy, assurance, tangibles, recovery, flexibility; Face-to-face, telephone & online interactions; The Customer Experience; Customer interactions with sub-contractors or business partners.
"Enabling the promise." Hiring the right people, Training and developing people to deliver service, Support systems, Appropriate technology and equipment, Rewards and incentives.
Things that can be counted, timed, or observed through audits (time, numbers of events). These service standards for responsiveness are set to ensure the speed or promptness with which companies deliver products, handles complaints, answer questions, answer the telephone, and arrive for repair calls.
Opinion-based measures and cannot be directly observed. They must be collected by talking to customers (perceptions, beliefs), employees or others. They provide direction, guidance, and feed back to employees in ways to achieve customer satisfaction and can be quantified by measuring customer perceptions and beliefs. Especially important for person-to-person interactions such as the selling process and delivery process for professional services. Must be documented using perceptual data.
Technology, policy, or procedure changes that, when instituted, address customer requirements. Company standards that can be met by an outlet (e.g., a franchisee) making a one-time change that does not involve employees and therefore does not require motivation and monitoring to ensure compliance. Often accomplished by technology and deal with the aspects of service that goes beyond human performance: rules and policies, operating hours, product quality, and prices.
Usually implies a non-varying sequential process similar to the mass production of goods in which each step is laid out in order and all outcomes are uniform. The goal of this is for the service firm to produce a consistent service product from one transaction to the next.
Usually refers to some level of adaptation or tailoring of the process to the individual customer. The goal of this is for the service firm is to develop services that meet each customer's individual needs.
3 Forms of Standardization
Substitution of technology for personal contact and human effort, Improvement in work methods, or Combinations of these 2 methods.
Standardization whether accomplished by technology or by improvements in work processes, reduces gap _____.
Ensures that the most critical elements of a service are performed as expected by customers, not just that every action in a service is executed in a uniform manner. Using this can allow for and be compatible with employee empowerment.
Factors necessary for Appropriate Service standards
Standardization of service behaviors and actions, Formal service targets and goals, Customer-not Company defined service standards.
Formal service targets and goals
Companies that have been successful in delivering consistently high service quality are noted for establishing formal standards to guide employees in providing service. One type of formal goal setting that is relevant in service businesses involves specific targets for individual behaviors or actions. Another type of formal goal setting involves the overall department or company target, most frequently expressed as a percentage, across all executions of the behavior or action.
Company defined standards
Established to reach internal company goals for productivity, efficiency, cost, or technical quality.
Close gap two
Standards set by companies must be based on customer requirements and expectations rather than just on internal company goals
Customer defined standards
Operational standards based on pivotal customer requirement visible to and measurement by customers. These standards are deliberately chosen to match customer expectations and to be calibrated the way the customer views and expresses them.
Sources: Customer Expectations, Customer Process Blueprint, Customer Experience, Observations.
Hard, Soft, One-time fixes
3 Types of Customer-defined service standards
Exterior and Interior attributes
Elements of the servicescape that affect customers.
Dimensions of Servicescape
Self service, Remote service, and Interpersonal services.
Customer only; customer performs most of the activities and few if any employees are involved.
Employee only; has little or no customer involvement with the servicescape. Services can be provided without the customer ever seeing the service facility.
Both customer and employee; represents situations in which both the customer and the employee are present and active in the servicescape.
Role of servicescape that is particularly important in creating expectations for new customers and for newly established service organizations that are trying to build a particular image. The physical surroundings offer an organization the opportunity to convey an image in a way not unlike the way an individual chooses to "dress for success." This role extends to the appearance of contact personnel through their uniforms or dress and other elements of their outward appearance.
Role of servicescape where the servicescape can also serve in aiding the performances of persons in the environment. A well-designed functional facility can make the service a pleasure to experience from the customer's point of view and a pleasure to perform from the employee's.
Role of servicescape where the design of the servicescape aids both employees and customers in the sense that it helps convey certain roles, behaviors, and relationships. The design of the facility can also suggest to customers what their role is relative to employees, what parts of the servicescape they are welcome in and which are for employees only, how they should behave while in the environment and what types of interactions are encouraged.
Role of servicescape where the design of the physical facility can differentiate a firm from its competitors and signal the market segment that the service is intended for. Given its power, changes in the physical environment can be used to reposition a firm and/or to attract new market segments. The design of a physical setting can also differentiate one area of a service organization from another.
Dimensions of service environment
Ambient Conditions; Spatial Layout and Functionality; Signs, Symbols, and Artifacts
Include background characteristics of the environment such as temperature, lighting, noise, music, scent, and color. As a general rule, they affect the 5 senses.
Spatial Layout; Functionality
________ refers to the ways in which machinery, equipment, and furnishings are arranged; the size and shape of those items; and the spatial relationships among them. ________ refers to the ability of the same items to facilitate the accomplishment of customer and employee goals.
Signs; Symbols, Artifacts
______ displayed on the exterior and interior of a structure are examples of explicit communications. _______ and _______ may communicate less directly than signs, giving implicit cues to users about the meaning of the place and norms and expectations for behavior in the place.
Defined as "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." It is critical to the creation of a customer-focused organization and has been identified as a source of competitive advantage in companies.
Services Marketing Triangle
Visually reinforces the importance of people in the ability of firms to keep their promises and succeed in building customer relationships.
Company, customers, providers
The triangle shows the 3 interlinked groups that work together to develop, promote, and deliver services. These key players are labeled on the points of the triangle.
Component of the services marketing triangle: On the right side of the triangle are the _____________ efforts ("making the promise") that the firm engages in to develop its customers' expectations and make promises to customers regarding what is to be delivered.
Component of the services marketing triangle: On the bottom is _____________ or real time marketing ("delivering the promise"). Here is where promises are kept or broken by the firm's employees, subcontractors, or agents.
Component of the services marketing triangle: The left side suggests the critical role played by ___________ (enabling the promise). Management engages in these activities to aid the providers in their ability to deliver on the service promise.
Service Profit Chain
Suggests that there are critical linkages among internal service quality; employee satisfaction/productivity; the value of services provided to the customer; and ultimately customer satisfaction, retention, and profits.
The frontline service employees are referred to as __________ because they operate at the organization's boundary. They provide a link between the external customer and environment and the internal operations of the organization. They serve a critical function in understanding, filtering, and interpreting information and resources to and from the organization and its external constituencies.
Sources of emotional labor/ conflict
Person/Role Conflict, Organization/Client Conflict, Interclient Conflict.
Service workers may feel role conflict when they are required to subordinate their feelings or beliefs, as when they are asked to live by the motto "The customer is always right—even when he is wrong."
Conflict between the employees 2 bosses. Is greatest when the employee believes the organization is wrong in its policies and must decide whether to accommodate the client and risk losing a job, or to follow the policies.
This situation occurs most often when the service provider is serving customers in turn or is serving many customers simultaneously.
Employees (actors), Customers (audience). Actors and audience work together to create service experience.
Levels of customer participation
Low, Moderate, High.
Low level of participation
All that is required in the customer's physical presence, with the employees of the firm doing all the service production work.
Moderate level of participation
Consumer inputs are required to aid the service organization in creating the service.
High level of participation
For these services, customers have important participation roles that will affect the nature of the service outcome.
Fellow customers can enhance or detract from customer satisfaction and perceptions of quality. They can detract from satisfaction by: disruptive behaviors, overly demanding behaviors, excessive crowding, incompatible needs.
They can enhance satisfaction by: mere presence,
socialization/friendships, roles: assistants, teachers, supporters, mentors.
Productive resources, Contributors to service quality and satisfaction, and Competitors.
Customers have been referred to as "partial employees" of the organization. In B to B, The contributions of the client can enhance the overall productivity of the firm in both quality and quantity of service. Contributing effort, time, or other resources to the production. Customer inputs can affect organization's productivity.
Contributors to service quality and satisfaction
Customers are _____________ when they improve the quality of service delivered to them. Effective customer participation can increase the likelihood that needs are met and that customer benefits are actually attained. Examples: education and healthcare. Customers can contribute to: Their own satisfaction with the service by performing their role effectively and by working with the service provider. And the quality of the service they receive by asking questions, by taking responsibility for their own satisfaction, and by complaining when there is a service failure.
Customers produce a service for themselves (internal exchange) or have someone else provide the service for them (external exchange). Customers may "compete" with the service provider. Common dilemma of consumers: internal vs. external exchange. Same occurs in B2B (i.e., outsourcing).
Self service Technologies (SSTs)
Services produced entirely by the customer without any direct involvement or interaction with the firm's employees. The ultimate in customer participation.
Service counterpart of manufacturer of physical goods ( the entity that creates the service concept)
4 Functions that service intermediaries perform for service principal
Coproduce the service, Make the service locally available, Provide a retailing function, Build trusting relationship with customers.
Primary types of intermediaries
Franchisees, Agents and stockbrokers, Electronic channels.
Service outlets licensed by a principal to deliver a unique service concept it has created.
Agents and Brokers
Representatives who distribute and sell the services of one or more service suppliers.
All forms of service provision through electronic means.
Most common type of distribution in services.
Define Customers' Jobs
One of the 3 strategies for enhancing customer participation;
Telling customer what their job is; making it very clear; helping oneself, helping others, and promoting the company.
Recruit, educate, and reward customers
One of the 3 strategies for enhancing customer participation; Recruit the right customers who are meant to be in your kind of service, educate and train customers to perform effectively, and reward customers for their contributions. Avoid negative outcomes of inappropriate customer participation
Manage the customer mix
One of the 3 strategies for enhancing customer participation; Customers frequently interact with each other in the process of service delivery. Firms must effectively manage the mix of customers who simultaneously experience the service. Example: Different seating sections in restaurants.
Failure of SSTs
Results when customers: see no personal benefit in the new technology, do not have ability to use it or know what they are supposed to do, are reluctant to make changes, are not ready (lack personal motivation and role clarity), Feel that SST is poorly designed.
Customer receiving the service
Customer participation that can contribute to narrowing / widening of gap 3 through behaviors that are: appropriate or inappropriate, Effective or ineffective, and Productive or unproductive.
Periodically update target levels and measures
The final step in the process for developing customer-defined standards is to:
American Airlines conducts ongoing in-flight surveys to assess passengers' perceptions of the ticket buying process, gate agents, flight attendants, food and beverage service, condition/comfort of airplanes and adherence to departure/arrival schedules. American Airline's research provides feedback on _____ measurements.
all of the above
Which of the following is an example of a behavior and action that defines the performance expected by customers?
(1) Cost estimate is price customer pays, (2) Fixes the product right the first time, (3) Delivers the product on the promised date, or (4) Greets customers within 5 minutes of entering the store.
Not specific enough
What is wrong with the following service goal posted in a restaurant: "Do not keep customers waiting too long to be served"?
Orders delivered when promised
Which of the following is NOT a soft customer-defined standard?
A. Uniforms are to be immaculate
B. Avoid other tasks while on the telephone with customers
C. Orders delivered when promised
D. Thank the customer at the end of the call
E. Listen to customers attentively
A dance studio is a(n) _____ environment.
Addison White is an event planner who specializes in family reunions. He creates situations in which family members can visit, share memories and get to know each other more intimately. He may rent the family a large house in the mountains or schedule them for a picnic in a national forest. White relies on ______ behavior to make the reunions a success.
T/F: Signs, symbols and artifacts should not be expected to create first impressions or communicate service concepts.
Developing people to deliver service quality
During two-day orientation and extensive on-the-job training, each Ritz-Carlton Hotel employee learns the Ritz-Carlton Gold Standards, which contain a credo, 20 basics of service, knowledge of one's work area, answering the telephone with a smile, wearing immaculate uniforms and the three steps of service. The three steps of service are comprised of a warm and sincere greeting, anticipation and compliance with guests' needs and a fond farewell using the guest's name, if possible. The Ritz-Carlton Hotel is using which of the following human resource strategies?
While being trained at Disney University in Orlando, Florida, Disneyworld employees are told they are not just employees but pivotal "cast members" in a "show". From street sweepers to monorail pilots, each cast member must go out of his or her way to make the resort seem unreal. No matter how tired employees are or how deeply guests may try their patience, employees must never lose composure. _____ labor is required from Disneyworld employees to always maintain composure.
Inter-client and organization/client
At the restaurant last night, the restaurant owner asked the server to turn the television on the Braves game and to turn up the sound so he could hear it. A group at a nearby table asked the server to turn down the sound so they could hold a conversation. Yet another group of patrons asked that the television be turned to another channel that was showing a Clint Eastwood movie. The server had to deal with both _____ conflicts.
Progressive Insurance looked at insurance from the customer's viewpoint and saw how difficult it was to get an auto claim processed and paid by insurance companies. Then the company crafted its service strategy around solving that problem. The company has fleets of claim adjustors on the road every day, ready to rush to the scene of an accident in their territory and provide fast claims processing-sometimes on the spot. The ability of the insurance company to have an adjustor at accident sites so quickly is an example of which of the following service quality dimensions?
The many legal, cultural and language barriers will make it very challenging
Progressive Insurance looked at insurance from the customers' viewpoint and saw how difficult it was to get an auto claim processed and paid by insurance companies. Then the company crafted its service strategy around solving that problem. The company has fleets of claim adjustors on the road every day, ready to rush to the scene of an accident in their territory and provide fast claims processing—sometimes on the spot. What advice would you give Progressive Insurance if it wanted to expand its market to include China, where there is a rapidly growing middle class?
A. Use the same service model the company uses in the U.S. and success is guaranteed
B. It is impossible because service excellence is not appreciated in other countries
C. Values are the same worldwide so Progressive should have no problem
D. Other than some language differences, Progressive should have no difficulty because its service is based on human interaction
E. The many legal, cultural and language barriers will make it very challenging
T/F: Restaurants with salad bars view customers as productive resources.
A service station that offers customers lower gasoline prices at a self-service pump compared to the prices at a full-service pump is:
Whether a household or a firm chooses to produce a particular service for itself or contract externally for the service depends upon a non-economic factor that is referred to as:
Contributor to quality and satisfaction
A consumer who complains that the stain was not removed from her suit jacket is performing which of the following service delivery roles?
Amber and Joyce are both new mothers who are concerned about child-proofing their homes to keep their toddlers safe. Amber went on the Internet and found a Web site that told her exactly what she should do to make her house safe. Joyce called Baby Safe, an agency that will send an expert in childcare to her home to conduct an individualized survey of the home and advise on dangerous situations. Which of the service delivery roles did Amber perform?