The Service Encounter

1
The Service Encounter
2
Learning Objectives

• Use the service encounter triad to describe a
  service firms delivery process.
• Describe features of an organizations culture.
• Discuss how information technology is an enabler
  of employee empowerment.
• Prepare abstract questions and write situational
  vignettes.
• Discuss the role of customer as coproducer.
• Discuss the concept of a service profit chain.

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
The Cycle of Capability

• Careful employee and customer selection
• High-quality training
• Well-designed support systems
• Greater latitude to meet customers needs
• Clear limits on expectations of employees
• Appropriate rewards and recognition
• Satisfied employees
• Employee referrals of job candidates

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
Workplace design Job design / decision-making
latitude Selection and development Rewards and
recognition Information and communication Adequate
tools to serve customers
Quality productivity improvements yield higher
service quality and lower cost
Attractive Value   Service designed delivered
to meet targeted customers needs
Lifetime value Retention Repeat Business Referral
15
Topics for Discussion

• 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
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?

17
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?

18
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?