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McGraw-Hill © 2000 The McGraw-Hill Companies
1
SM
McGraw-Hill © 2000 The McGraw-Hill Companies
4th
McGraw-Hill © 2000 The McGraw-Hill Companies
2
SMSM
McGraw-Hill © 2000 The McGraw-Hill Companies
Chapter 12
Customers’ Role in Service Delivery
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMThe importance of customers The importance of customers
in service deliveryin service delivery
Customer participation at some level is inevitable in service delivery.
Services are actions or performances, typically produced and consumed simultaneously.
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMThe importance of customers The importance of customers
in service deliveryin service delivery
In many situations employees, customers and even others in the service environment interact to produce the ultimate service outcome. Because they participate, customers are indispensable to the production process of service organizations, and they can actually control or contribute to their own satisfaction.
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMThe importance of customers The importance of customers
in service deliveryin service delivery
1. Customer Receiving the Service
2. Other Customers
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMThe Importance of Customers in The Importance of Customers in
Service DeliveryService Delivery
Low: Consumer Presence
Required during Service
Delivery
Products are standardized
Service is provided
regardless of any individual
purchase
Payment may be the
Only required customer
Input.
End Consumer Examples
Airline travel
Motel stay
Fast-food restaurant
Business–to Business
Customer Examples
Uniform cleaning service
Pest control
Interior greenery maintenance
service
Moderate: Consumer Input
Required for Service Creation
Client inputs customize a standard service
Provision of service requires customer Purchase
Customer inputs ( information materials)
Are necessary for an adequate outcome, but the service firm provides the service
Haircut
Annual Physical exam
Full-service restaurant
Agency created advertising
Campaigning
Payroll service
Freight transportation
High: Customer Co creates the Service Product
Active client participation guides the customized service.
Service cannot be created apart from the customer’s purchase and active participation.
Customer inputs are mandatory
And cocreate the outcome.
Marriage Counseling
Personal training
Weight reduction program
Major illness or surgery
Management consulting
Executive Management seminar
Installation of computer network.
Level of Customer Participation:
McGraw-Hill © 2000 The McGraw-Hill Companies
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SM Other CustomersOther Customers
There are direct customers and other customers. direct customers directly receive the services and other customers are present in the service environment and can affect the nature of the services outcome or process.
Other customers can either enhance or detract from customer satisfaction and perceptions of quality.
McGraw-Hill © 2000 The McGraw-Hill Companies
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SM Other CustomersOther Customers
Some of the ways other customers can negatively affect the service experiences are by exhibiting disruptive behaviors, causing delays, overusing, excessively crowding, and manifesting incompatible needs.
Crying babies, smoking patrons and loud unruly groups.
McGraw-Hill © 2000 The McGraw-Hill Companies
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SM Customer RolesCustomer Roles
1. Customers as productive resources
2. Customers as contributors to service Quality
3. Customers as Competitions
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMCustomers as productive Customers as productive
resourcesresources
Partial employees Effort, time & other resources Customer input Qualities of (input) & quality of output
Two issues1. Delivery system should be isolated from inputs due to
uncertainty of customers’ uncontrollable actions.2. Can be delivered efficiently if customers are viewed as
partial employee.
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMCustomers as Contributors Customers as Contributors
to Service Qualityto Service Quality
Health care, education, personal fitness and weight loss.
Performing roles effectively Influence quality of outcome Satisfaction Productivity Variation in participation, variation In quality
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMCustomers as Contributors Customers as Contributors
to Service Qualityto Service Quality
Situations
What they did- Technical quality of customer inputsI clearly explained what I wanted the bank employee to do.
How they did it- Functional qualityI was friendly to the bank employee.
McGraw-Hill © 2000 The McGraw-Hill Companies
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SM Customers as CompetitionsCustomers as Competitions
Customers become competitor of company by performing self services, such as child care or marriage counseling.
Internal exchange or external exchange
McGraw-Hill © 2000 The McGraw-Hill Companies
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SM Customers as CompetitionsCustomers as Competitions
In house or outsourcing production depends on:
1. Expertise capacity2. Resource capacity3. Time Capacity4. Economic rewords5. Psychic rewards6. Trust7. Control
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMSelf Service Technologies- The Self Service Technologies- The
Ultimate in Customer Ultimate in Customer ParticipationParticipation
Self Service technologies are services produced entirely by the customer without any direct involvement or interaction with the firm’s employee.
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMSelf Service Technologies- The Self Service Technologies- The
Ultimate in Customer Ultimate in Customer ParticipationParticipation
A proliferation of New SSTs
1. ATMs2. Pay at the pump3. Airline cheek-in4. Hotel cheek- in and cheek out5. Automated car rental6. Automated filing of legal
claims7. Online driver’s license testing8. Automated betting machines9. Electronic blood pressure
machine10. Various vending service11. Tax preparation software
12. Self-scanning at retail stores13. Internet banking14. Vehicle registration online15. On line auctions16. Home and car buying online17. Automated investment
transaction 18. Insurance online19. Package tracking20. Internet shopping21. Internet information search22. Interactive voice response
phone systems.23. Distance education.
McGraw-Hill © 2000 The McGraw-Hill Companies
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SM Success with SSTsSuccess with SSTs
Strategy (cost saving, revenue, growth or competitive advantages)
Benefits and customer’s capacity to receive benefits
Motivation, roles and capacity to perform roles Technology readiness Customer involvement Customer education
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMStrategies for Enhancing Strategies for Enhancing Customer ParticipationCustomer Participation
Define customers’ job1. Helping oneself: through active
participation, customers may become productive resources.
2. Helping others: mentoring programs in university.
3. Promoting the company: recommendation4. Individual differences: not every one want
to participate
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMStrategies for Enhancing Strategies for Enhancing Customer ParticipationCustomer Participation
Recruit, educate and reward customers1. Recruit the right customers who are comfortable
with roles and communicate responsibilities.2. Educate and train customers through socializing
org. values, abilities and skills, customer orientation (universities), customer education (hospitals) and customer information (McDonald's)
3. Reward customers for their contributions4. Avoid negative outcomes of inappropriate customer
participation
McGraw-Hill © 2000 The McGraw-Hill Companies
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SMStrategies for Enhancing Strategies for Enhancing Customer ParticipationCustomer Participation
Manage the customer mix
Compatibility management: a process of first attracting homogeneous consumers to the service environment, then actively managing both the physical environment and customer to customer encounters in such a way as to enhance satisfying encounters and minimizing dissatisfying customers.
Strategies:1. Homogeneous customers2. Locational proximity3. Codes of conduct ( dresses and smoking attitudes)