SM
Chapter 1
INTRODUCTION
TO
PEOPLE IN SERVICES
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Introduction
Services are deeds,processes and performance Intangible, but may have a tangible component Generally produced and consumed at the same time Need to distinguish between SERVICE and CUSTOMER SERVICE
Percent of U.S. Labor Force by Industry
80
Percent of GDP
70
60 50 40 30 20 10 0
1929 1948 1969 1977 1984 1996
Year
Source: Survey of Current Business, April 1998, Table B.8, July 1988, Table 6.6B, and July 1992, Table 6.4C; Eli Ginzberg and George J. Vojta, The Service Sector of the U.S. Economy, Scientific American, 244,3 (1981): 31-39.
Services Manufacturing Mining & Agriculture
Percent of U.S. Gross Domestic Product by Industry
80
Percent of GDP
70 60 50 40 30 20 10 0 1948 1959 1967 1977 1987 1996 Year
Source: Survey of Current Business, August 1996, Table 11, April 1998, Table B.3; Eli Ginzberg and George J. Vojta, The Service Sector of the U.S. Economy, Scientific American, 244,3 (1981): 31-39.
Services Manufacturing Mining & Agriculture
The Services Marketing Triangle
Company (Management)
Internal Marketing
enabling the promise
External Marketing
setting the promise
Employees
Source: Philip Kotler
Interactive Marketing
delivering the promise
Customers
PEOPLE
Service personnel
Customers
BY SKILLS OF SERVICE PROVIDERS
PROFESSIONAL Legal services, Medical services, Accounting services, Management Consulting
BY SKILL OF SERVICE PROVIDER
NONPROFESSIONAL
Taxi, Security, Shoe Shining
BY DEGREE OF CUSTOMER CONTACT
HIGH CONTACT Universities, Air Travel, Hotel
BY DEGREE OF CUSTOMER CONTACT
LOW CONTACT
Lawn care, Automated Care wash
Ways to Use the Services Marketing Triangle
Specific Service Implementation Overall Strategic Assessment
What is being promoted and by whom? How will it be delivered and by whom? Are the supporting systems in place to deliver the promised service?
How is the service organization doing on all three sides of the triangle? Where are the weaknesses?
What are the strengths?
Expanded Mix for Services -the 7 Ps
Product Price Place Promotion People Process Physical Evidence
Table 1-3 (Continued)
Expanded Marketing Mix for Services
PEOPLE
Employees Customers Communicating culture and values Employee research
PHYSICAL EVIDENCE
Facility design Equipment Signage Employee dress Other tangibles
PROCESS
Flow of activities Number of steps Level of customer involvement
SM Part 1
FOCUS ON THE CUSTOMER
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CATEGORY OF CUSTOMERS
HEAVY USERS
CATEGORY OF CUSTOMERS
MODERATE LOW USERS
OCCASIONAL USERS
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Gaps Model of Service Quality
CUSTOMER
Expected
Service
Customer Gap
Perceived Service
External Communications to Customers
COMPANY
Service Delivery
GAP 3
Customer-Driven Service Designs and Standards
GAP 4
GAP 1
GAP 2
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Company Perceptions of Consumer Expectations
Gaps Model of Service Quality
Customer Gap: difference between expectations and perceptions Provider Gap 1: not knowing what customers expect Provider Gap 2: not having the right service designs and standards Provider Gap 3: not delivering to service standards Provider Gap 4: not matching performance to promises
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The Customer Gap
Expected Service
GAP
Perceived Service
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Chapter 3
CUSTOMER EXPECTATIONS OF SERVICES
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DEFINITIONS
Customers have different expectations re services or expected service Desired service customer hopes to receive Adequate service the level of service the customer may accept
Figure 3-1
Dual Customer Expectation Levels
(Two levels of expectations)
Desired Service Zone of Tolerance
Adequate Service
Figure 3-3
Zones of Tolerance VARY for Different Service Dimensions
Desired Service
Level of Expectation
Zone of Tolerance
Adequate Service
Desired Desired Service Service Zone of Tolerance Adequate Adequate Service Service
Most Important Factors Least Important Factors Source: Berry, Parasuraman, and Zeithaml (1993)
Figure 3-2
The Zone of Tolerance
Desired Service
Zone of Tolerance
Adequate Service
Figure 3-5
Factors that Influence Desired Service
Enduring Service Intensifiers
Desired Service Personal Needs Zone of Tolerance
Adequate Service
Figure 3-6
Factors that Influence Adequate Service
Transitory Service Intensifiers
Desired Service Zone of Tolerance Adequate Service
Perceived Service Alternatives
Self-Perceived Service Role
Situational Factors
Figure 3-7
Factors that Influence Desired and Predicted Service
Explicit Service Promises Implicit Service Promises Word-of-Mouth
Desired Service Zone of Tolerance Adequate Service
Past Experience
Predicted Service
Figure 4-1
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Reliability Responsiveness Assurance
Customer Perceptions of Service Quality and Customer Satisfaction
Service Quality
Situational Factors
Empathy
Tangibles
Product Quality
Customer Satisfaction
Price
Personal Factors
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Check-In
Figure 4-4
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A Service Encounter Cascade for a Hotel Visit
Bellboy Takes to Room Restaurant Meal Request Wake-Up Call Checkout
Figure 4-5
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Sales Call
A Service Encounter Cascade for an Industrial Purchase
Delivery and Installation
Servicing Ordering Supplies
Billing
Figure 6-3
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Underlying Logic of Customer Retention Benefits to the Organization
Customer Satisfaction
Customer Retention & Increased Profits
Quality Service
Employee Loyalty
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Chapter 11
EMPLOYEES ROLES IN SERVICE DELIVERY
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Service Employees
They are the service They are the firm in the customers eyes They are marketers Importance is evident in
The Services Marketing Mix (People) The Service-Profit Chain The Services Triangle
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Service Employees
Who are they?
boundary spanners
What are these jobs like?
emotional labor many sources of potential conflict
person/role organization/client interclient quality/productivity
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SERVICE PERSONNEL QUALITY
(HOW?)
Behaviour Attitudes
FUNCTIONAL QUALITY
Internal
Relations Customer Contact
Functional
Quality Accessibility Appearance
Figure 11-3
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Boundary Spanners Interact with Both Internal and External Constituents
External Environment
Internal Environment
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Figure 11-4
Sources of Conflict for Boundary-Spanning Workers
Person vs. Role
Organization vs. Client Client vs. Client Quality vs. Productivity
Figure 11-5
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Human Resource Strategies
Hire for Service Competencies and Service Inclination
Hire the Right People
Customeroriented Service Delivery
Develop People to Deliver Service Quality
Empower Employees
Treat Employees as Customers
Retain the Best People
Provide Needed Support Systems
Provide Supportive Technology and Equipment
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Chapter 12
CUSTOMERS ROLES IN SERVICE DELIVERY
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Importance of Other Customers in Service Delivery
Other customers can detract from satisfaction
disruptive behaviors excessive crowding incompatible needs
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Other customers can enhance satisfaction
mere presence socialization/friendships roles: assistants, teachers, supporters
Figure 12-2
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Customer Roles in Service Delivery
Productive Resources
Contributors to Quality and Satisfaction
Competitors
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Customers as Productive Resources
partial employees
contributing effort, time, or other resources to the production process
customer inputs can affect organizations productivity key issue:
should customers roles be expanded? reduced?
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Customers as Contributors to Service Quality and Satisfaction
Customers can contribute to
their own satisfaction with the service
by performing their role effectively by working with the service provider
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the quality of the service they receive
by asking questions by taking responsibility for their own satisfaction by complaining when there is a service failure
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Customers as Competitors
customers may compete with the service provider internal/external decision often based on: expertise resources time economic rewards psychic rewards trust control
Figure 12-3
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Strategies for Enhancing Customer Participation
Effective Customer Participation
Define Customer Jobs
Recruit, Educate, and Reward Customers
Manage the Customer Mix
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Thanks
Have a nice and delight day
pankaj kr mishra Shabas azmi
