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The Service Encounter

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Learning Objectives Use the service encounter triad to describe a service firm s delivery process. Discuss the role of organizational control systems for employee ... – PowerPoint PPT presentation

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Title: The Service Encounter


1
The Service Encounter
2
Learning Objectives
  • Use the service encounter triad to describe a
    service firms delivery process.
  • Discuss the role of organizational control
    systems for employee empowerment.
  • Prepare abstract questions and write situational
    vignettes.
  • Discuss the role of customer as coproducer.
  • Describe how elements of the service profit chain
    lead to revenue growth and profitability.

3
The Service Encounter Triad
Service Organization

Efficiency versus satisfaction
Efficiency versus autonomy
Customer
Contact Personnel
Perceived control
4
Definitions of Culture
  • Schwartz and Davis (1981) - Culture is a pattern
    of beliefs and expectations shared by the
    organizations members.
  • Mintzberg (1989) - Culture is the traditions and
    beliefs of an organization that distinguish it
    from others.
  • Hoy and Miskel (1991) - Culture is shared
    orientations that hold the unit together and give
    a distinctive identity.

5
The Service Organization
  • Culture ServiceMaster (Service to the
    Master) Disney (Choice of language)
  • Empowerment Invest in people Use IT to enable
    personnel Recruitment and training critical Pay
    for performance

6
Organizational Control
7
Contact Personnel
  • Selection 1. Abstract Questioning 2.
    Situational Vignette 3. Role Playing
  • Training Unrealistic customer expectations Unexp
    ected service failure

8
Difficult Interactions with Customers
  • Unrealistic customer expectations Unexpected
    service failure
  • 1. Unreasonable demands 1.
    Unavailable service
  • 2. Demands against policies 2. Slow
    performance
  • 3. Unacceptable treatment of 3.
    Unacceptable service
  • employees
  • 4. Drunkenness
  • 5. Breaking of societal norms
  • 6. Special-needs customers
  • Use scripts to train for proper response

9
The Customer
  • Expectations and Attitudes Economizing
    customer Ethical customer Personalizing
    customer Convenience customer
  • Customer as Co-Producer

10
Service Encounter Success Factors
11
Employee Perceptions of Customer Service at a
Branch Bank
Outstanding

Terrible
Terrible
Outstanding
12
Satisfaction Mirror
 
          
Higher Customer Satisfaction
13
Is attitude emphasized? Are job previews
utilized? Are customers screened?
Are employees encouraged to refer friends?   Are
referrals from the best employees given
priority?
Careful Employee and Customer Selection   (and
Self-selection))
Is training for job and life?   Is it an
important element of quality of work life?
Employee Referrals of Potential Job Candidates
High-Quality Training
Is satisfaction measured periodically?   Are
measurements linked to other functions on the
cycle?
Do they reflect needs of the service
encounter? Are they designed to foster
relationships?
  • Well-Designed
  • Support Systems
  • Information
  • Facilities

Cycle of Capability
Satisfied Employees
Appropriate Rewards and Frequent Recognition
Greater Latitude to Meet Customers Needs
Does it reflect top management talk?   Is it
enough to allow delivery of results to customers?
Are they linked to service objectives?   Are they
balanced between monetary and non-monetary?
Clear Limits on, and Expectations of, Employees
Do they limit the right risks? Are they logical
to employees?
 
14
Service Profit Chain
Internal
External
Service concept
Operating strategy and service delivery system
 
Target market
Loyalty
Revenue growth
Customers
                                       
Satisfaction
Productivity Output quality
Service value
Employees
Satisfaction
Loyalty
Capability
Profitability
Service quality
Customer orientation/quality emphasis Allow
decision-making latitude Selection and
development Rewards and recognition Information
and communication Provide support systems Foster
teamwork
Quality productivity improvements yield higher
service quality and lower cost
Attractive Value  Service designed delivered
to meet targeted customers needs Solicit
customer feedback
Lifetime value Retention Repeat
Business Referrals
15
Topics for Discussion
  • How does the historical image of service as
    servitude affect todays customer expectations
    and service employee behavior?
  • What are the organizational and marketing
    implications of considering a customer as a
    partial employee?
  • Comment on the different dynamics of one-on-one
    service and group service.
  • How does use of a service script relate to
    service quality?
  • If the roles played by customers are determined
    by cultural norms, how can services be exported?

16
Interactive Exercise
  • The class breaks into small groups and each
    group comes up with an example from each of the
    four organizational control systems (i.e.,
    belief, boundary, diagnostic, and interactive)

17
Amys Ice Cream on Guadalupe
18
Amys Ice Cream
  1. Describe the service organization culture at
    Amys Ice Cream.
  2. What are the personality attribute of the
    employees who are sought by Amys Ice Cream?
  3. Design a personnel selection procedure for Amys
    Ice Cream using abstract questioning, a
    situational vignette, and/or role playing.

19
AMYS ICE CREAMAbstract Questions
  • What was your most rewarding past experience and
    why?
  • What are you looking for in your next job?
  • What have you done in the past to irritate a
    customer?
  • What flavor of ice cream best describes your
    personality?

20
AMYS ICE CREAMSituational Vignette
  • A particular customer has the irritating habit
    of always showing up about two minutes before
    closing and staying late. Often this occurs on
    the night when weekly store meeting are held
    after closing time. This delays starting the
    meeting and furthermore employees are on the
    clock waiting for the customer to leave. What
    would you do?

21
AMYS ICE CREAMSituational Vignette
  • As a new employee at a busy store, you have
    been routinely performing clean-up tasks (garbage
    removal and restroom cleaning). Company policy
    dictates that these are tasks to be shared. It
    has become clear that two employees consistently
    avoid these jobs in favor of more pleasant
    duties. How would you handle this situation?

22
Enterprise Rent-A-Car
  1. How has Enterprise Rent-A-Car (ERAC) defined its
    service differently than that of the typical
    national car rental company?
  2. What features of its business concept allow ERAC
    to complete effectively with the existing
    national rental care companies?
  3. Use the service profit chain to explain the
    success of ERAC.
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