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All of these roles:

All of these roles:

are played by the


While most KFC restaurants look alike, there is one in Marietta, Georgia, that is in the base of a 56-foot tall chicken replica with rolling eyes and a moving beak. In this example, the servicescape is a:


The last time Dominique traveled on an airplane she took an antihistamine before her flight to keep her ears unclogged and prevent an earache. Dominique took an antihistamine to prevent a(n) ________________ response to the airplane's environment.


Many people expected checkered tablecloths and bottles of Chianti wine at Italian restaurants and fortune cookies at Chinese restaurants. These are both examples of which composite dimension?

Signs, symbols, and artifacts

For a physical evidence strategy to be effective, it must:

Be linked clearly to the organization's overall goals and vision

A service provider that has an inappropriate employee evaluation and compensation system will experience provider:

Gap 3

Domino's instructs its telephone pizza order takers to pick up the telephone on the first ring and not to put customers on hold. When answering the telephone, an order taker must be energetic, friendly and let the customer hear the smile on his or her face. Domino's guidelines for order takers' telephone answering behavior will influence which service quality dimension for Domino's?


________________ labor entails delivering smiles, making eye contact, showing sincere interest and engaging in friendly conversations with customers who are essentially strangers and who may not ever be seen again.


A service firm in a particular industry or in a particular location can use which of the following human resource strategies to attract the best people?

Become a preferred employer

A service firm that conducts periodic internal marketing research to assess employee satisfaction and needs is using which of the following human resource strategies for closing provider gap 3?

Providing needed support systems

An ATM machine would be an example of ________________ service environment


Many customers will not shop at traditional retail stores the day after Thanksgiving due to the crowds. This refusal to shop is an example of how the servicescape creates _____________ behavior.


Two decades ago, travelers who were looking for a place to rest for the night looked for the large, multi-colored Holiday Inn Signs. Eventually, the signs started looking dated and seemed to remind people of early times even though the motel chain knew travelers wanted to stay in modern rooms with all the latest amenities. Because the signs were sending the wrong message, Holiday Inn used physical evidence strategy to create more modern signage. During which step of the physical evidence strategy would this change have occurred?

The updating and modernizing of physical evidence

According to the service profit chain:

There is a direct relationship between employee satisfaction and customer loyalty.

The frontline service employees are referred to as:

Boundary Spanners

A state auditor who is expected to deliver quality, individualized service to state offices and departments while at the same time finishing jobs as quickly as possible is experiencing a(n) ______________ tradeoff


Provider gap 3 would be created when:

A patient receiving an x-ray neglects to tell the technician she was pregnant

When Roberta gets her hair cut, she carefully explains to the hair stylist how she expects it to look once the haircut is finished. Roberta is playing the role of a:

Contributor to quality and satisfaction

A consumer's decision to produce a service for himself or herself or contract externally for the service depends on a variety of factors. Which of the following is an example of a psychic reward a homeowner might receive if he decides to landscape his own yard instead of hiring a landscape design expert?

Feelings of pride and pleasure as he looks at the final results.

Private schools that have mentoring programs for new minority students are encouraging experienced students to perform which of the following customer jobs?

Helping others

When Alicia went to talk to a cleaning service about having the carpets in her apartment shampooed, she was told that if she would rent the service's equipment and do it herself, it would cost her 50 percent less and be done much sooner because the service's personnel were booked solid for the next two weeks. The cleaning service is:

Rewarding customers

Nude bathing is the norm at the Tagoona lakefront beach. By prohibiting the wearing of clothes on weekdays, the Tagoona lakefront beach is:

Managing the customer mix

Terri Franciosa owns and operates a McDonald's restaurant in New Jersey. Franciosa is the service:


_____________ are service outlets licensed by a principal to deliver a unique service concept it has created or populariezed.


How do company-owned service providers like Waffle House restaurants differ from franchise-owned service providers like Wendy's restaurants?

Waffle House has complete control over customer relationships and Wendy's does not

Mike Leven is the president and co-founder of US Franchise Systems, one of the nation's fastest growing hotel companies. Its franchises include Microtel Inn & Suites, Hawthorne Suites and Best Inns and Suites. Which of the following is a problem US Franchise Systems is likely to experience with one of its franchises?

i. Difficulty in maintaining and motivating franchisees
ii. Difficulty controlling quality and consistency across hotels.
iii. Control of customer relationships by intermediary
iv. Highly publicized disputes and conflicts

A retail travel agent is a ____________ agent


Which of the following is a benefit enjoyed by service providers who use electronic distribution?

Wide distribution

A service prinicipal that wanted to adopt an empowerment strategy should:

i. Help intermediaries develop customer oriented service processes
ii. Develop intermediaries to deliver service quality
iii. Adopt a cooperative management structure
iv. Provide needed support systems

A consumer who complains that the stain was not removed from her suit jacket is performing which of the following service delivery roles?

Contributor to quality and satisfaction

__________________________ is the environment in which the service is delivered and in which the firm and the customer interact and includes all tangible commodities that facilitate performance or communitcation of the service.

Physical Evidence

Makes the business stand out from competing businesses and to attract customers from target segments

Attention grabing

to use symbolic clues to communicate with the intended audience about the distinctive nature and quality of the service experience

Message creation

Using colors, textures, sounds, scents, and spatial design to create or heighten an appetite for certain goods, services, or experiences

Effect creation

Attention Creating Medium
Message Creating Medium
Effect Creating Medium

Guidelines for Physical Evidence Strategy

The servicescape is part of the:

Value Proposition!

The following:
-Facility Exterior
-Facility Interior
Other Tangibles


Physical Evidence

-Influences flow of experiences, meaning customers attach to experience
-Influence customers' emotional connections with company delivering experience

Physcial Evidence

Organizations differ in terms of whom the servicescape will affect
-Lean Environments
-Elaborate Environments

Servicescape's 2 Dimensions


Strategic Roles of the Servicescape

Conveys expectations
Influences perceptions


Facilitates the flow of the service delivery process
-Provides information (how am I to act?)
-Facilitates the ordering process (how does this work?)
-Facilitates the service delivery


Facilitates interaction between:
-customers and employees
-customers and fellow customers


Sets provider apart from competition in the mind of the customer


Basic Stimulus Organism Response Theory
Cognitive, emotional, and physiological

Framework for understanding Servicescape effects on Behavior

Ambient Conditions (music, scent, color)
Spatial Layout
Signs, symbols, and artifacts

Dimensions of the service envinronment

Layout refers to the size and shape of furnishings and the ways it is arranged
Functionality is the ablility of those items to facilitate performance

Spatial Layout and Functionality

Explicit or implicit signals to communicate the firm's image, help consumers find their way and to convey the rules of behavior

Signs, Symbols, and Artifacts

Provider Gap 3 is the _______________/_______________

Service Performance gap/employee gap

The heart of a customer-driven service-oriented organization:

Service Culture

An appreciation for good service
Given to internal/external customers
Good service is "a way of life"

Implications for Employee Behaviors in a Service Culture

They are the service
They are the organization in the customers' eyes
They are the brand
They are the marketeres

Their importance is evident in:
-the services marketing mix (people)
-the service-profit chain
-the services triangle

The Critical Importance of Service Employees

Internal Marketing
Interactive Marketing
External Marketing

Services Marketing Triangle

Internal Service Quality
Employee Satisfaction
Employee Productivity
Employee Retention
External Service Value
Customer Satisfaction
Customer Loyalty
Revenue Growth/Profitability

Service Profit Chain

Frontline Service Employees
Interact Directly with Customers
Provide Link Between External Customer and environment and the internal operations of the organization
Often high-stress jobs

Boundary-Spanning roles

Hire the right people
Develop people to deliver service quality
Provide needed support systems
Retain the best people

Strategies for Delivering Service Quality Through People

-Quicker responses to customer needs during service delivery
-Quicker responses to dissatisfied customers during service recovery
-Employees feel better about their jobs and themselves
-Employees tend to interact with warmth and enthusiasm
-Empowered employees are a great source of ideas
-Great word of mouth advertising from customers

Benefits of Empowerment

-Potentially greater dollar investment in selection and training
-Higher labor costs
-Potentially slower or inconsistent service delivery
-May violate customers' perceptions of fair play
-Employees may "give away the store" or make bad decisions

Drawbacks of Empowerment

The Importance of Customers in Service Delivery
-Employees (actors)
-Customers (audience)
-Actors and audience work together to create service experience

Drama Metaphor for services

Can contribute to narrowing/widening of gap 3 through behaviors that are:
-appropriate or innappropriate
-Effective or ineffective
-Productive or unproductive

Customer receiving the service

Other customers can DETRACT from satisfaction
Other customers can ENHANCE satisfaction

Importance of other customers in Service Delivery

-Disruptive behaviors
-Overly demanding behaviors
-Excessive crowding
-Incompatible needs

Other customers can Detract from satisfaction

-Mere presence
-Roles: assistants, teachers, supporters, mentors

Other customers can Enhance satisfaction

Productive Resources
Contributors to service quality and satisfaction

Customers' Roles

-Can act as partial employees
-Can influence both quality and quantity of production

Customers as Productive Resources

Effective Customer participation can increase the likelihood that needs are met and that customer benefits are acutally attained
Examples: Education, healthcare

Customers can contribute to:
their own satisfcation with the service
-by performing their role effectively
-by working with the service provider

the quality of service they receive
-by asking questions
-by taking responsibility for their own satisfaction
-by complaining when there is a service failure

Customers as Contributors to Service Quality and Satisfaction

Internal/external decision often based on:
-expertise capacity
-resources capacity
-time capacity
-economic rewards
-psychic rewards

Customers as Competitors

Services Produced entirely by the customers
No direct involvement/interaction with firm's employees
Ultimate form of customer participation

Self-Service Technologies (SST's)

-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 Usage of SSTs-Failure Results when Customers:

-Define Customer's Jobs
-Reward Customers
-Manage the customer mix

Strategies for Enhancing Customer Participation

-helping oneself
-helping others
-promoting the company

are all a part of:

Defining customers' jobs

-recruit the right customers
-educate and train customers to perform effectively
-reward customers for their contributions
-avoid negative outcomes of innappropriate customer participation

are all a part of:

Recruit Educate and and Reward Customers

-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
-Ex: different seating sections in restaurants

are all a part of:

Manage the Customer Mix

Creates the service concept
-like a manufacturer of physical goods

Service Principal (originator)

Entity that interacts with the customer in execution of the service
-like a distributor/wholesaler of physical goods

Service Deliverer (intermediary)

-Cannot be owned
-Cannot be produced
-Cannot be warehoused
-Cannot be reatiled

Unlike physical goods, services:

-Direct delivery of service
-Delivery of service through intermediaries

Service Distribution:

Creator of service interacts directly with customer
Ex: air travel, healthcare

Direct Delivery of Service

Intermediaries often deliver services and perform several funcitons for service principals
-Coproduce the service
-Make service locally available
-Provide a retailing function
-Build trusting relationship with customers

Delivery of Service Through Intermediaries

Electronic Channels

are all examples of:

Service Intermediaries

-Relationship in which service provider develops and optimizes a service format that it licenses for delivery by other parties
-Most common type of distribution service

Examples include: McDonalds, Jiffy Lube, Blockbuster


-Acts on behalf of a service principle or a customer
-Authorized to make agreements between the principle and the customer


-Brings buyers and sellers together
-Paid by who hired them


-Do not require human interaction
-Has the advantage of achieving wide distribution quickly

Electronic Channels

-Many services delivered directly from provider to customer
-Local services with limited distribution area: doctors, dry cleaners, and hair stylists
-National chains with multiple outlets: Starbucks

Direct or Company-Owned Channels

-Company has complete control over outlets
-Consistency across outlets
-Maintenance of image across outlets
-Company owns customer relationship

Advantages of company-owned outlets

-Company must bear all financial risk
-Large companies not local market experts

Disadvantages of Company-Owned Outlets

-Channel conflict over objectives and performance
-Difficulty controlling quality and consistency across outlets
-Tension between empowerment and control
-Channel amiguity

Common Issues Involving Intermediaries

Control Strategies
Empowerment Strategies
Partnering Strategies

Strategies for Effective Service Delivery Through Intermediaries


Control Strategies

-Help the intermediary develop customer-oriented service processes
-Provide needed support systems
-Develop intermediaries to deliver service quality
-Change to a cooperative management structure

Empowerment Strategies

-Alignment of goals
-Consultation and cooperation

Partnering Strategies

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