Title: The Service Encounter
1The Service Encounter
2Learning 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.
3The Service Encounter Triad
Service Organization
Efficiency versus satisfaction
Efficiency versus autonomy
Customer
Contact Personnel
Perceived control
4Definitions 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.
5The 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
6Organizational Control
7Contact Personnel
- Selection 1. Abstract Questioning 2.
Situational Vignette 3. Role Playing - Training Unrealistic customer expectations Unexp
ected service failure
8Difficult 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
9The Customer
- Expectations and Attitudes Economizing
customer Ethical customer Personalizing
customer Convenience customer - Customer as Co-Producer
10Service Encounter Success Factors
11Employee Perceptions of Customer Service at a
Branch Bank
Outstanding
Terrible
Terrible
Outstanding
12Satisfaction Mirror
Higher Customer Satisfaction
13Is 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?
14Service 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
15Topics 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?
16Interactive 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)
17Amys Ice Cream on Guadalupe
18Amys Ice Cream
- Describe the service organization culture at
Amys Ice Cream. - What are the personality attribute of the
employees who are sought by Amys Ice Cream? - Design a personnel selection procedure for Amys
Ice Cream using abstract questioning, a
situational vignette, and/or role playing.
19AMYS 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?
20AMYS 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?
21AMYS 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?
22Enterprise Rent-A-Car
- How has Enterprise Rent-A-Car (ERAC) defined its
service differently than that of the typical
national car rental company? - What features of its business concept allow ERAC
to complete effectively with the existing
national rental care companies? - Use the service profit chain to explain the
success of ERAC.