Upgrade to remove ads
MKT 3351 TTU Exam 3
Terms in this set (28)
Challenges/Risks of service innovation and design
Words are simply inadequate to describe a complex service system such as financial portfolio management.
"To say that 'portfolio management' is buying and selling stocks' is like describing the space shuttle as 'something that flies.' Some people will picture a bird, some a helicopter, and some an angel."
In describing services, people (employees, managers, customers) tend to omit details or elements of the service with which they are not familiar.
A person might do a fairly credible job of describing how a discount stock brokerage service takes orders from customers.
But would that person be able to describe fully how monthly statements are created, etc?
Any one person describing a service in words will be biased by personal experiences and degree of exposure to the service.
Persons working in different functional areas of the same service organization (a marketing person, an operations person, a finance person) are likely to describe the service very differently as well, biased by their own functional blinders
No two people will define "responsive," "quick," or "flexible" in the same way.
Ex: a manager may suggest to a frontline service employee that the employee should try to be more flexible or responsive to the customer. Unless the term "flexibility" is further defined, the employee is likely to interpret the word differently than the manager.
What is Service Design?
"Service design is focused on bringing service strategy and innovative service ideas to life by aligning various internal and external stakeholders around the creation of holistic service experiences for customers, clients, employees, business partners, and/or citizens."
Five principles of "service design thinking"
-Services should be experienced and designed through the customer's eyes.
-All stakeholders should be included in the service design process.
-A service should be visualized as a sequence of interrelated actions.
-Intangible services should be visualized in terms of physical artifacts.
-The entire environment of a service should be considered.
What is a service blueprint?
A picture or map that portrays the customer experience and the service system, so that the different people involved in providing the service can understand it objectively, regardless of their roles or their individual points of view.
What are the main components of a service blueprint, and what information is captured by each?
-Encompasses the steps, choices, activities, and interactions that the customer performs in the process of purchasing, experiencing, and evaluating the service. The total customer experience is apparent in this area of the blueprint.
Onstage/visible contact employee actions:
-The activities that the contact employee performs that are visible to the customer.
Backstage/invisible contact employee actions:
-The contact employee actions that occur behind the scenes to support the onstage activities.
What are the various benefits of service blueprinting?
-Providing a platform for innovation.
-Recognizing roles and interdependencies among functions, people, and organizations.
-Facilitating both strategic and tactical innovations.
Transferring and storing innovation and service knowledge.
-Designing moments of truth from the customer's point of view.
-Suggesting critical points for measurement and feedback in the service process.
-Clarifying competitive positioning.
Understanding the ideal customer experience.
What are the six basic steps for building a blueprint?
Step 1: Identify the Service Process to be Blueprinted
Blueprints can be developed at a variety of levels, and there needs to be agreement on the starting point.
Step 2: Identify the Customer or Customer Segment Experiencing the Service
A common rationale for market segmentation is that each segment's needs are different and therefore will require variations in the service or product features.
Step 3: Map the Service Process from the Customer's Point of View
Involves charting the choices and actions that the customer performs or experiences in purchasing, consuming, and evaluating the service.
Step 4: Map Contact Employee Actions and/or Technology Actions
First the lines of interaction and visibility are drawn, and then the process from the customer contact person's point of view is mapped, distinguishing visible onstage activities from invisible backstage activities.
Step 5: Link Contact Activities to Needed Support Functions
The line of internal interaction can then be drawn and linkages from contact activities to internal support functions can be identified.
Step 6: Add Evidence of Service at Each Customer Action Step
The evidence of service can be added to the blueprint to illustrate what the customer sees and experiences as tangible evidence of the service at each step in the process.
customer defined service standards
operational standards that are:
-based on pivotal customer requirements (as identified by
-deliberately chosen to match customer expectations
-calibrated to the way the customer views and expresses them.
Usually implies a nonvarying sequential process - similar to the mass production of goods - in which each step is laid out in order and all outcomes are uniform.
Usually refers to some level of adaptation or tailoring of the process to the individual customer.
for the service firm to produce a consistent service product from one transaction to the next.
for the service firm is to develop a service that meets each customer's individual needs.
Formalized service targets and goals
Set specific targets for individual behaviors and actions
Specific targets for individual behaviors & actions
-Technology and work improvement methods facilitate the standardization of service necessary to provide consistent delivery to customers. In developing work improvements, the firm comes to understand completely the process by which the service is delivered. With this understanding, the firm more easily establishes appropriate service standards.
-Standardization, whether accomplished by technology or by improvements in work processes, reduces gap 2.
-Customer-defined standardization 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 customer defined standards can, in fact, allow for and be compatible with employee empowerment.
Overall department or company targets
-Companies that have been successful in delivering consistently high service quality are noted for establishing formal standards to guide employees in providing service.
-These companies have an accurate sense of how well they are performing service that is critical to their customers - how long it takes to conduct transactions, how frequently service fails, how quickly they settle customer complaints and strive to improve by defining goals that lead them to meet or exceed customer expectations.
customer defined standards
-operational standards based on pivotal customer requirements identified by customers
-These standards are deliberately chosen to match customer expectations and to be calibrated the way the customer views and expresses them.
customer defined standards example
Ex: shortening DMV wait times to 20 min or less because that is how long customers expected to wait for a service based on a customer survey.
Virtually all companies possess service standards and measures that are company defined
-they are established to reach internal company goals for productivity, efficiency, cost, or technical quality.
Company-defined standards: example
Ex: One company defined standard that often does not meet customer expectations is the common practice of voice activated telephone support systems that do not allow customers to speak to humans.
Hard Customer-Defined Standards
Things that can be counted, timed, or observed through audits.
Company= Cardinal Health
Customer Priorities= On-time delivery
Customer-defined standards= Deliver 98% of all hospital products when promised.
soft customer defined standards
In contrast to hard measures, soft measures must be documented using perceptual data.
Opinion-based measures and cannot be directly observed. They must be collected by talking to customers, employees, or others. Soft standards provide direction, guidance, and feedback to employees in ways to achieve customer satisfaction and can be examined by measuring customer perceptions and beliefs.
Company= Nationwide Insurance
Customer Priorities= Responsiveness
Customer-defined standards= Provide a human voice on the line when customers report problems
-Technology, policy, or procedure changes that, when instituted, address customer requirements. They are further defined as company standards that can be met by an outlet (ex: a franchisee) making a one-time change that does not involve employees and therefore does not require motivation and monitoring to ensure compliance.
-When a customer is undertaken to find out what aspects of service need to be changed, requirements can sometimes be met using one-time fixes.
process for setting customer-defined service standards.
Step 1: Identify Existing or Desired Service Encounter Sequence
Step 2: Translate Customer Expectations into Specific Behaviors and Actions
Step 3: Determine Appropriate Standards
Step 4: Develop Measurements for Standards
Step 5: Establish Target Levels for the Standards
Step 6: Track Measures against Standards
Step 7: Provide Feedback about Performance to Employees
Step 8: Periodically Update Target Levels and Measures
What are important criteria for creating appropriate employee service standards?
The standards are based on behaviors and actions that are very important to customers.
-The standards cover performance needs to be improved or maintained.
-The standards cover behaviors and actions employees have control over and can improve.
-The standards are understood and accepted by employees.
-The standards are predictive rather than reactive - based on current and future customer expectations rather than past complaints.
-The standards are challenging but realistic.
Other sets by this creator
MKT 3351 TTU Exam 2
Services MKT 3351 Exam 1
Exam 1 Chapter 5
Exam 1 Chapter 4
Other Quizlet sets
Cold War Test Review (US History)
ACC 321 Exam 2 Chapter 8