SQ Lecture Five : Promoting and Educating Customers & Designing and Managing Service Processes (Chaps 7 and 8)
1. JAN 2013 Semester
1
Service Quality
MKTG 1268
Lecture Five
• Promoting Services and
Educating Customers
(Chapter 7)
• Designing and
Managing Service
Processes (Chapter 8)
2. This lecture:
2
YET another heavy lecture week.
Two chapters involved (7and 8)
This week focus on two Ps
Promotions
Process
By the end of this lecture we would have pretty much
finished most of the elements of the Services
Marketing Mix. This puts you in a good position to
complete your project ahead of schedule (hopefully)!
3. 3 Chapter Seven
Promoting Services and Educating
Customers
4. Overview of Chapter 7
4
Role of Marketing Communications
Challenges of Service
Communications
Marketing Communications Planning
The Marketing Communications Mix
The Role of Corporate Design
6. Position and Differentiates the Service
6
Persuade target customers that their service product
offers the best solution
Marketing communications not only attracts new
customers but also to maintain contact with existing
customers and build relationships
Used to convince target customers about firm‘s
superior performance on determinant attributes
8. Help Customers to Evaluate Service Offerings
8
Customers may have difficulty distinguishing one firm
from another
Provide tangible clues related to service performance
Some performance attributes lend themselves better to
advertising than others
e.g., Airlines
Firm‘s expertise is hidden in low-contact services
Need to illustrate equipment, procedures, employee
activities that take place backstage
9. Promote Contributions of Service Personnel and
Backstage Operations
9
Frontline personnel are central to service delivery in high-contact
services
Make the service more tangible and personalized
Show customers work performed behind the scenes to ensure
good delivery
To enhance trust, highlight expertise and commitment of
employees
Advertisements must be realistic
Messages help set customers‘ expectations
Service personnel should be informed about the content of new
advertising campaigns or brochures before launch
11. Add value through Communication Content
11
Information and consultation adds value to service
product
Information needed about kinds of services, the
place and time of availability, and cost of such
services
And the specific features, functions and service
benefits that come with these services
12. Facilitate Customer Involvement in Production
12
Customers are actively involved in service production;
they need training to perform well
Show service delivery in action
Television and videos engage viewer
e.g.,
Dentists showing patients videos of surgical procedures
before surgery
Streaming videos on web and podcasts are new
channels to reach active customers
13. Stimulate or Dampen Demand to Match Capacity
13
Live service performances are time-specific and can‘t
be stored for resale at a later date
Advertising and sales promotions can change timing of
customer use
Examples of demand management strategies:
Reducing usage during peak demand periods
Stimulating demand during off-peak period
14. Challenges of services communications
14
Overcoming the challenges of
intangibility
Overcoming the challenges of managing
promises and expectations
Educating customers
Managing internal marketing
communications
15. Problems of Intangibility
15
May be difficult to communicate service benefits to customers, especially when
intangible
Intangibility creates 4 problems:
Abstractness
No one-to-one correspondence with physical objects
Generality
Items that comprise a class of objects, persons, or events
Non-searchability
Cannot be searched or inspected before purchase
Mental impalpability
Customers find it hard to grasp benefits of complex, multidimensional
new offerings
17. Overcoming Problems of Intangibility
17
To overcome intangibility
Use tangible cues in
advertising
Use metaphors to
communicate benefits of
service offerings
Any other strategies to
consider?
21. Checklist for Marketing Communications Planning: The “5 Ws”
Model
21
Who is our target audience?
What do we need to communicate and
achieve?
How should we communicate this?
Where should we communicate this?
When do communications need to take
place?
22. Target Audience: 3 Broad Categories
22
Prospects
Employ traditional communication mix because prospects
are not known in advance
Users
More cost effective channels
Employees
Secondary audience for communication campaigns
through public media
Shape employee behavior
Part of internal marketing campaign using company-
specific channels
23. Common Educational and Promotional Objectives in Service
Settings (1)
23
Create memorable images of specific companies
and their brands
Build awareness/interest for unfamiliar
service/brand
Compare service favorably with competitors‘
offerings
Build preference by communicating brand strengths
and benefits
Reposition service relative to competition
Reduce uncertainty/perceived risk by providing
useful info and advice
24. Common Educational and Promotional Objectives in Service
Settings (2)
24
Provide reassurance (e.g., promote service
guarantees)
Encourage trial by offering promotional incentives
Familiarize customers with service processes before
use
Teach customers how to use a service to best
advantage
Stimulate demand in off-peak, discourage during
peak
Recognize and reward valued customers and
employees
25. Service Insights 7.1 : UPS Repositions Itself to
Deliver (read page 197 of the text)
25
28. The marketing communications mix
28
Communications originate from different sources:
Messages transmitted through traditional marketing
channels.
Messages transmitted through the Internet.
Messages transmitted through service delivery
channels.
Messages originating from outside the organisation.
30. Messages through Traditional Marketing Channels:
Advertising
30
Build awareness, inform, persuade, and remind
Challenge: How stand out from the crowd?
Yankelovitch study shows 65% of people feel
―constantly bombarded‖ by ad messages; 59% feel ads
have little relevance
TV, radio broadcasts, newspapers, magazines, Internet,
many physical facilities, transit vehicles--all cluttered
with ads
Effectiveness remains controversial
Research suggests that less than half of all ads
generate a positive return on their investment
31. Messages through Traditional Marketing Channels:
Public Relations
31
PR/Publicity involves efforts to stimulate positive interest in an
organization and its products through third parties
e.g., press conferences, news releases, sponsorships
Corporate PR specialists teach senior managers how to present
themselves well at public events, especially when faced with
hostile questioning
Unusual activities can present an opportunity to promote
company‘s expertise
e.g., FedEx – safely transported two giant pandas from
Chengdu, China, to the National Zoo in Washington, D.C. in a
FedEx aircraft renamed FedEx PandaOne.
32. Use of effective public relations – Fedex
transporting two giant pandas
32
33. Messages through Traditional Marketing Channels:
Direct Marketing (1)
33
Mailings, recorded telephone messages, faxes,
email
Potential to send personalized messages to highly
targeted microsegments
Need detailed database of information about
customers and prospects
34. Messages through Traditional Marketing Channels:
Direct Marketing (2)
34
Advance in on-demand technologies empower
consumers to decide how and when they prefer
to be reached, and by whom
e.g. email spam filters, pop-up blockers, podcasting
Permission Marketing goal is to persuade
customers to volunteer their attention
Enables firms to build strong relationships with
customers
e.g., People invited to register at a firm‘s website
and specify what type of information they like to
receive via email
35. Messages through Traditional Marketing Channels:
Sales Promotion
35
Defined as ―Communication that comes with an incentive‖
Should be specific to a time period, price, or customer
group
Motivates customers to use a specific service sooner, in
greater volume with each purchase, or more frequently
Interesting sales promotions can generate attention and put
firm in favorable light (especially if interesting results
publicized)
e.g. SAS International Hotels – If a hotel had vacant rooms,
guests over 65 years old could get a discount equivalent to their
years
When a guest announced his age as 102 and asked to be paid
2% of the room rate in return for staying the night, he received
it— and got a game of tennis with the general manager!
36. Messages through Traditional Marketing Channels:
Personal Selling
36
Interpersonal encounters educate customers and
promote preferences for particular brand or product
Common in b2b and infrequently purchased services
Many b2b firms have dedicated salesforce to do
personal selling
Customer assigned to a designated account manager
For services that are bought less often, firm‘s
representative acts as consultant to help buyers make
selection
Face-to-face selling of new products is expensive—
telemarketing is lower cost alternative
37. Messages through Traditional Marketing Channels:
Trade Shows
37
Popular in b2b marketplace
Stimulate extensive media
coverage
Many prospective buyers come to
shows
Opportunity to learn about latest
offerings from wide variety of
suppliers
Sales rep who usually reaches four
to five potential customer per day
may be able to get five qualified
leads per hour at a show
38. Internet Marketing Offers Powerful Opportunities
38
Supplement traditional marketing channels at
a reasonable cost
Should be part of an integrated, well-
designed communications strategy
Can market through the company‘s own
website or through online advertising
39. Messages through Internet:
Company‟s Website
39
The web is used for a variety of communication tasks
Creating consumer awareness and interest
Providing information and consultation
Allowing two-way communication with customers through
email and chat rooms
Encouraging product trial
Allowing customers to place orders
Measuring effectiveness of advertising or promotional
campaigns
Innovative companies look for ways to improve the
appeal and usefulness of their sites
40. Effective use and promotion of a company website –
easyJet has painted its address on each of its aircraft
40
41. Messages through Internet:
Online Advertising (1)
41
Banner advertising
Placing advertising banners and buttons on portals
such as Yahoo or CNN and other firms‘ websites
Draw online traffic to the advertiser‘s own site
Web sites often include advertisements of other
related, but non competing services
Example: Advertisements for financial service providers
on Yahoo‘s stock quotes page
42. Advantages and limitations of banner advertising
42
Easy for advertisers to measure how many visits to its
own website are generated by click-throughs
Limitations
Obtaining many exposures does not necessarily
lead to increase in awareness, preference, or sales
Fraudulentclick-throughs designed to boost
apparent effectiveness
43. Messages through Internet: Online Advertising (2)
43
Search engine advertising
Reverse broadcast network: search engines let
advertisers know exactly what consumer wants through
their keyword search
Can target relevant messages directly to desired
consumers
Several advertising options:
Pay for targeted placement of ads to relevant keyword searches
Sponsor a short text message with a click-through link
Buy top rankings in the display of search results
44. Service Insights 7.3 : New Media and Their
Implications for Marketing Communications (read
pages 206-207)
44
45. Moving from Impersonal to Personal
Communications
45
There used to be a difference between personal and
impersonal communication
Technology has created a gray area between the
two
Direct mail and email can be personalized
Electronic recommendation agents can also
personalize communications
With advances of on-demand technologies, consumer
are increasingly empowered to decide how and when
they like to be reached (see Service Insights 7.4)
46. Messages through Service Delivery Channels
46
Service outlets
Can be through banners, posters, signage, brochures,
Frontline employees
Communication from frontline staff can be for the core
service or supplementary elements
New customers in particular need help from service
personnel
video screens, audio etc.
Self-service delivery points
ATMs, vending machines and websites are examples
47. Messages Originating from Outside the
Organization (1)
47
Word of Mouth (WOM)
Recommendations from other customers viewed as more
credible
Strategies to stimulate positive WOM:
Having satisfied customers providing comments
Using other purchasers and knowledgeable individuals as reference
Creating exciting promotions that get people talking
Offering promotions that encourage customers to persuade their friend to
purchase
Developing referral incentive schemes
48. Messages Originating from Outside the
Organization (2)
48
• Blogs – A new type of online WOM
Communications about customer experiences influence
opinions of brands and products
Some firm have started to monitor blogs as form of market
research and feedback
• Twitter
Becoming increasingly popular – fastest-growing social
networking service
• Media Coverage
Compares, contrasts service offerings from competing
organizations
Advice on ―best buys‖
50. Ethical Issues in Communication
50
Advertising, selling, and sales promotion all lend themselves
easily to misuse
Communication messages often include promises about
benefits and quality of service delivery. Customers are
sometimes disappointed
Why were their expectations not met?
Poor internal communications between operations and
marketing personnel concerning level of service
performance
Over promise to get sales
Deceptive promotions
Unwanted intrusion by aggressive marketers into people‘s
personal lives
51. The Role of Corporate Design (1)
51
Many service firms employ a unified and
distinctive visual appearance for all tangible
elements
e.g. Logos, uniforms, physical facilities
Provide recognition and strengthen brand image
e.g., BP‘s bright green-and yellow service stations
Especially useful in competitive markets to stand
out from the crowd and be instantly recognizable
in different locations
e.g. Shell‘s yellow scallop shell on a red background
MacDonald‘s ―Golden Arches‖
53. The Role of Corporate Design (2)
53
How to stand out and be different?
Use colors in corporate design
Use names as central element in their corporate
designs
Use trademarked symbol rather than name as
primary logo
Create tangible recognizable symbols to connect
with corporate brand names
54. Summary of Chapter 7 – Promoting Services and
Educating Customers (1)
54
Marketing communications has specific roles
Position and differentiate service
Help customer evaluate offerings and highlight
differences that matter
Promote contribution of personnel and backstage
operations
Add value through communication content
Facilitate customer involvement in production
Stimulate or dampen demand to match capacity
Communicating services presents both challenges
and opportunities
Overcome problems of intangibility--use metaphors to
communicate value proposition
55. Summary of Chapter 7 – Promoting Services and
Educating Customers (2)
55
Communication planning involves knowing (5Ws)
Who is our target audience?
What do we need to communicate and achieve?
How should we communicate this?
Where should we communicate this?
When do communications need to take place?
Marketing communications originate from within the
organization through marketing and production
channels
56. Summary of Chapter 7 – Promoting Services and
Educating Customers (3)
56
Marketing communications channels include
Advertising
Public relations
Direct marketing
Sales promotion
Personal selling
Tradeshows
Internet
57. Summary of Chapter 7 – Promoting Services and
Educating Customers (4)
57
Production channels include
Front-lineemployees and call center staff
Service outlets
Self-service delivery points
Marketing communications originating from outside
organization include
Word of mouth
Blogs and online ratings
Media editorial
Corporate design strategies are part and parcel of
communication mix
58. Sample Practice Exam Essay Question:
Many services are highly intangible. This
creates several issues and challenges for
the marketer.
Describe the four problems of intangibility ,
as well as explain (at least) six different
advertising / communication strategies used
to overcome the ‗intangibility problem‘
58
59. Can use this diagram from the Text (Table 7.1) to
respond to the exam question
59
59
60. Sample Practice Exam Essay Question:
After working as an employee in a luxury spa
business and saving for many years, you finally
have enough capital and technical skills to start up
your own spa. As a new business, you need to
communicate your service to potential target
customers.
Explain the challenges you might face in
communicating your service to the target market?
What are the advertising strategies you can use to
overcome these challenges?
60
61. Sample Practice Exam Essay Question:
List, explain and give examples of:
Four different roles of marketing
communications, and
The three sources of communication messages
categorized under ‗production channels‘ for
an insurance provider OR a bank
61
62. Marketing Communications – Practice Questions
1. Explain what is distinctive about marketing
communications strategy for services
2. Why is it more difficult for a service provider to
market services than for a manufacturing firm to
market physical goods?
62
63. 1. Role of marketing communications in services
• The role of marketing communication in services is to help
promote and educate the value proposition that the firm is
offering.
Position and differentiate their services from the competitors
Help customers to evaluate service offerings and highlight the
differences that make a difference for the customer (highlight
one’s competitive advantage)
Promote the contribution of service personnel and backstage
operations
Add value through communication content
Facilitate customer involvement in production
Stimulate or dampen demand to match capacity
63
64. 2. Challenges of marketing communications in services
• Since services are about performances rather about objects, it can be
difficult to communicate the benefits to customers. This is especially true
when it involves tangible actions to customers or their possessions.
• Some of the challenges that service companies face are:
Problems with intangibility—this will include: generality, non-searchability,
abstractness and mental impalpability
Overcoming the problems of intangibility—this can be rectified with the
use of tangible cues and metaphors to overcome the problems of
intangibility
• Refer to Table 7.1 that discusses the advertising strategies for overcoming
intangibility
64
65. Marketing Communications – Practice Questions
3. Recommend which elements of the marketing
communication mix you would use for each of the
following scenarios:
i. A newly established hair salon in Clementi
Mall
ii. An established restaurant facing declining
patronage because of new competition.
iii. A small law firm serving mostly business
clients.
65
66. Application of marcom for different kinds of services…
• Each of these businesses requires different
communications objectives to match its
specific situation. You should start by
developing objectives for each service. From
here you can then determine which marketing
communications mix elements might be most
appropriate for meeting these objectives.
66
67. Application of marcom for different kinds of services…
• The hairdresser needs to build a clientele, none
of whom will have previous experience with the
salon. Hence, providing information and
obtaining trial are key challenges. A
geographically specific communications campaign
will therefore be appropriate. Local newspapers
and radio might be appropriate media. Perhaps
the printed ads could include a coupon for a
reduced price to encourage trial. Advertising in
the Yellow Pages should also be considered.
67
68. Application of marcom for different kinds of services…
• The restaurant needs to win back former customers
and attract new ones. Advertising will have
something to talk about to this first group if there
have been changes in the menu, décor, prices, or
hours of service. If the restaurant has a list of
customer’s names, addresses, and phone numbers, it
might consider a direct mail campaign or even
telemarketing. Otherwise, local media such as radio,
cable TV, and newspapers may be needed. New
customers may be addressed in similar ways to the
hairdresser. In addition, they can place listings in
tourist brochures if this is a tourist area.
68
69. Application of marcom for different kinds of services…
• The accounting firm may choose to publicize client
testimonials in local business newspapers and
magazines. Organizing seminars on accounting
practices, new accounting developments and inviting
representatives from major business organizations
would increase the awareness about the firm.
Advertising about the firm, using billboards, at the
commercial centers of the city may attract attention
of a large segment of target audience.
69
70. Marketing Communications – Practice Questions
4. What roles do personal selling, advertising
and public relations play in
i. attracting new customers to a service
business
ii. retaining existing customers.
70
71. Roles of different tools of Marcom
• Advertising play a role in attracting new customers to a
service business by providing information about a company
and the benefits its services can offer to customers.
•
• Personal selling is most often used in business marketing,
where sales calls play a large role in securing new
corporate clients about a supplier’s products.
• Public relations are widely used communications tactics in
both the corporate and consumer arenas to build up the
brand name of the company.
71
72. 72 Chapter Eight
Designing and Managing Service Processes
73. Overview of Chapter 8
73
Flowcharting Service Delivery
Use Blueprinting to Document and Manage
Service Processes
Service Process Redesign
The Customer as Co-Producer
Self-Service Technologies (SST)
74. Flowcharting Service Delivery
Helps to Clarify Product Elements
74
Technique for displaying the nature and sequence of
the different steps in delivery service to customers
Offers way to understand total customer service
experience
Shows how nature of customer involvement with
service organizations varies by type of service:
Refer back to Chapter One
People processing
Possession processing
Mental Stimulus processing
Information processing
75. Simple Flowchart for Delivery of a People-
75
Processing Service (Fig. 8.1a)
Key insight: customer must be physically present in order to benefit
from the facilities of the motel
75
76. Simple Flowchart for Delivery of a
76
Possession-Processing Service (Fig. 8.1b)
Key insight: role of customer is limited. Need to trust the technician
to do a good job.
76
77. Can you do a service blueprint for a weather forecasting service?
77
78. 78
Simple Flowchart for Delivery of a Mental
Stimulus Processing Service (Fig. 8.1c)
Key insight: action is intangible and role of customer is less
active. Need to have some time costs in order to pay attention.
Advertising revenues help to maintain the TV station.
78
79. 79
Simple Flowchart for Delivery of an
Information-Processing Service (Fig. 8.2d)
Key insight: insurance is also an intangible action but it takes more time
and mental effort.
79
81. The role of flowcharting and blueprinting
81
Flowcharting provides a service organisation with
the means of managing and controlling
individual parts of the service delivery system;
identifying weak points and opportunities for
improving or enhancing the efficiency and
productivity of the system; and preventing
service failures.
82. Blueprinting
Developing a Blueprint
Identify key activities in creating and delivering
service
Define ―big picture‖ before ―drilling down‖ to
obtain a higher level of detail
Advantages of Blueprinting
Distinguish between ―front-stage‖ and ―backstage‖
Clarify interactions between customers and staff,
and support by backstage activities and systems
Identify potential fail points; take preventive
measures; prepare contingency
Pinpoint stages in the process where customer
commonly have to wait
82
83. Key Components of a Service Blueprint
83
1. Define standards for front-stage activities
2. Specify physical evidence
3. Identify main customer actions
4. Line of interaction (customers and front-stage personnel)
5. Front-stage actions by customer-contact personnel
6. Line of visibility (between front stage and backstage)
7. Backstage actions by customer contact personnel
8. Support processes involving other service personnel
9. Support processes involving IT
- Identify fail points and risks of excessive waits
- Set service standards and do failure-proofing
90. Blueprinting The Restaurant Experience: A
Three-Act Performance
90
Act 1: Introductory Scenes
Act 2: Delivery of Core Product
Cocktails, seating, order food and wine, wine service
Potential fail points: Menu information complete? Menu intelligible?
Everything on the menu actually available?
Mistakes in transmitting information a common cause of quality
failure – e.g. bad handwriting; poor verbal communication
Customers may not only evaluate quality of food and drink, but
how promptly it is served, serving staff attitudes, or style of
service
Act 3: The Drama Concludes
Remaining actions should move quickly and smoothly, with no
surprises at the end
Customer expectations: accurate, intelligible and prompt bill,
payment handled politely, guests are thanked for their patronage
92. Improving Reliability of Processes by Failure
Proofing. Identify „Fail Points‟
92
Identify fail points
Analysis of reasons for failure often reveals opportunities for
failure proofing to reduce/eliminate future risk of errors
Need fail-safe methods for both employees and customers
Have poka-yokes to ensure service staff do things correctly, as
requested, or at the right speed
Customer poka-yokes focus on preparing the customer for:
The encounter
Understanding and anticipating their roles
Selecting the correct service or transaction
See Service Insights 8.1 – Framework to prevent customer
failures
93. “no room for error”
Use of poka-yoke
in medical surgery
93
94. Setting Service Standards and Targets
94
First impression is important
Affects customer‘s
evaluations of quality
during later stages of
service delivery as customer
perceptions of service
experiences tend to be
cumulative
For low-contact service, a
single failure committed front
stage is relatively more
serious than in a high-contact
service
96. “Institutions are like steel beams—they tend to rust. What was once smooth 96
and shiny and nice tends to become rusty.”
Mitchell T. Rabkin MD,
formerly president of
Boston’s Beth Israel Hospital
SERVICE PROCESS REDESIGN
98. Why Redesign?
98
Revitalizes process that has become
outdated
Changes in external environment make
existing practices obsolete and require
redesign of underlying processes
Creation of brand-new processes to stay
relevant
99. Health care systems and hospital services can be
redesigned to better meet customer (patient) needs
99
100. Why Redesign?
100
Rusting occurs internally
Natural deterioration of internal processes; creeping bureaucracy;
evolution of spurious, unofficial standards
Symptoms:
- Extensive information exchange
- Data that is not useful
- High ratio of checking or control activities to value-adding
activities
- Increased exception processing
- Customer complaints about inconvenient and unnecessary
procedures
101. Service Process Redesign to Improve Both Quality
and Productivity
101
Read the Service Insight 8.3 on page 245
Its about our national library : Process Redesign in
Singapore Libraries
104. Levels of Customer Participation (1)
104
Customer Participation
Actions and resources supplied by customers
during service production and/or delivery
Includes mental, physical, and even emotional
inputs
108. Customers as Service Co-Creators
108
Customers can influence productivity and quality of
service processes and outputs
Customers not only bring expectations and needs,
they also need to have relevant service production
competencies
Customers also need to be recruited as they are
―partial employees‖. Firms need to get those with the
skills to do the tasks
For the relationship to last, both parties need to
cooperate with each other
112. Self-Service Technologies (SSTs)
112
Many companies and government organizations seek
to divert customers from employee contact to Internet-
based self-service
Advantages: Disadvantages:
Psychological Factors Related to Use of
Time and Cost savings Anxiety and stress
experienced by
Flexibility
customers who are
Convenience of location uncomfortable with
using them
SSTs
Greater control over
service delivery Some see service
encounters as social
High perceived level of experiences and prefer
customization to deal with people
115. Putting SSTs to Test by Asking a Few Simple Questions
115
Does the SST work reliably?
Firms must ensure that SSTs are dependable and user-friendly
Is the SST better than interpersonal alternatives?
Customers will stick to conventional methods if SST doesn’t
create benefits for them
If it fails, what systems are in place to recover?
Always provide systems, structures, and technologies that
will enable prompt service recovery when things go wrong
115
116. Managing Customer‟s Reluctance to Change
116
Increasing customer‘s participation level in a
service can be difficult
Marketing communications to be used to:
Prepare customer for change
Explain the rationale and benefits
What customers need to do differently in the
future
117. There needs to be
speedy service
recovery if
technology fails
117
118. Summary for Chapter 8 – Designing and Managing
Service Processes (1)
118
Flowcharting helps clarify delivery elements. It also shows how nature of
customer involvement with service organizations varies by type of service
Service blueprinting can be used to design a service and create a satisfying
experience for customers. Key components of the blueprint include
Definition of standards for each front-stage activity
Physical and other evidence for front-stage activities
Principal customer actions
Line of interaction
Front-stage actions by customer-contact personnel
Line of visibility
Backstage actions by customer-contact personnel
Support processes involving other service personnel
Support processes involving information technology
119. Summary for Chapter 8 – Designing and Managing
Service Processes (2)
119
Blueprinting a restaurant (or other service) can be a three-act performance
Prologue and introductory scenes
Delivery of the core product
Conclusion of the drama
Failure proofing can be designed into service processes to improve reliability
Service process redesign can be categorized into five kinds
Eliminating non-value-adding steps
Shifting to self-service
Delivering direct service
Bundling services
Redesigning the physical aspect of service processes
120. Summary for Chapter 8 – Designing and Managing
Service Processes (3)
120
When the customer is a co-producer, issues to
consider are
Levels of customer participation
Customers as partial employees
When deciding to use Self-service Technologies
(SSTs), firms should consider
Psychological factors related to the use of SSTs
Aspects of SSTs that please or annoy customers
121. Sample Practice Exam Essay Question:
• You are about to open a cafeteria business. To ensure
that all your service staff understands the service
process you have designed for your business, you
have decided to develop a blueprint to identify key
activities in creating and delivering your service.
• How would you explain the advantages of your
blueprint to your service staff?
• What are the key components of a service blueprint?
• Present the service blueprint that you have
developed for your cafeteria business.
121
122. Sample Practice Exam Essay Question: read the following
case study and answer the question (next page)
122
123. Question for the exam case study:
• Suggest how restructured hospitals can
reduce the bed crunch using the following
service process redesign strategies
a) Getting rid of non-value added steps
b) Redesign the physical aspects of the service
process
c) Offering direct service
123
124. Sample Practice Exam Essay Question:
a) What are SSTs?
b) Give two examples of how SST have replaced
traditional forms of delivery of core
products, and two examples of how SST have
replaced traditional forms of delivery of
supplementary services
c) What are some of the advantages and
disadvantages of SSTs?
124
125. Another Sample Practice Exam Essay
Question on SSTs:
(a) Identify and describe three clearly different
uses of Self-Service Technologies (SSTs). Give
real-life examples of each. (12 marks)
(b.) What are the benefits of SSTs for customers
and the service organization? (8 marks)
125
126. To understand the impact of SSTs, go back to the
Flower of Service Model (Fig 5.14)
126
Which aspects of the Core and Supplementary Service
126
Elements should (should not) be offered using SSTs?
127. Categories and Examples of SSTs in use
Telephone/
Interactive
Interface Voice Online Interactive Video
Purpose Response Internet Kiosks CD
*Package
*Phone banking tracking *ATMs
Customer *Flight Status *Account *Hotel
Service *Order Status Information checkouts
*Telephone *Retail *Phone
Banking Purchasing banking
*Prescription *Financial *Flight Status
Transactions refills Institutions *Order Status
*Tax
*Blood preparation
*Internet info pressure software
search machines *TV/CD
*Info telephone *Distance
127
*Tourist based
127
Self-Help lines Learning information training
128. Service Human Machine Electronic
Industry Contact Assisted Service Service
Banking Teller ATM Online banking
(Core) (Core services)
Grocery Checkout clerk Self-checkout Online order/
station pickup (Supp )
Airlines Ticket agent (Supplementary)
Check-in kiosk E- boarding pass
(Supplementary) (Supplementary)
Restaurants Waitress Vending machine Online order/
delivery
Movie theater Ticket sale Kiosk ticketing Pay-for-view
(Supplementary) (Core services)
Book store Information Stock-availability Online books
clerk terminal (Supp) (Core services)
Education Teacher Computer tutorial Distance learning
(Core services) (Core services)
128
129. Psychological Factors Related to the use of SSTs
• SSTs advantages SSTs disadvantages
– Time savings • Anxiety and stress
experienced by
– Cost savings customers who are
uncomfortable with
– Flexibility using them
– Convenience of location • Some see service
encounters as social
– Greater control over experiences and prefer
service delivery to deal with people
– High perceived level of
customization • SST technologies break
downs – SST not always
reliable.
129 129
