Flashcards
Lecture 6
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- 1Customer-defined service standardsStandards are based on the most important customer
expectations and reflect the customer’s view of these expectations. - 2Factors necessary for appropriate service standards- Standardization of Service Behaviors and Actions. (reduces gap 2).
- Customisation vs Standardisation.
- Formal Service Targets and Goals:
- Goal setting;
- Customer- not Company-Defined Standards; - 3Types of customer-defined service standardsStandards that are visible and measured by customers, rather than on company’s concerns, such as productivity or efficiency.
- HARD Customer-Defined STANDARDS AND MEASURES (ex. time - 1 min.);
- SOFT STANDARDS AND MEASURES. Opinion-based (ex. perceptions, beliefs, satisfaction and relationship
surveys). - 4Development of customer-defined service standards- Basing Standards on the Service Encounter Sequence (ex. by making a blueprint);
- Expressing Customer Requirements as Specific Behaviours and Actions (ex. customer requirements); - 5What customers expect: Getting to actionable stepsDifferent levels of
abstraction/concreteness for standards in a service firm, from top (most abstract) to
bottom (most concrete and specific) - 6Criteria for creating service standardsStandards should:
1. Be based on behaviours and actions valued by customers.
2. Cover performance that needs to be improved or maintained.
3. Cover behaviours and actions employees can improve. (Employees perform
consistently according to standard only if they understand).
4. Be accepted by employees. Imposing standards on unwilling employees often leads to resistance, resentment, absenteeism, even turnover.
5. Be predictive rather than reactive. Customer-defined standards should not be
established on the basis of complaints or other forms of reactive feedback that deals
with past and not current or future expectations. Company should find other ways then complains to understand positive or negative perception of customers.
6. Be challenging but realistic. If not challenging - too little reinforcement to master it. Too challenging - leave an employee dissatisfied with performance and frustrated. - 7Process for creating service standardsStep 1: Identify Existing or Desired Service Encounter Sequence. (blueprint);
Step 2: Translate Customer Expectations into Behaviours and Actions for Each Service Encounter.
Step 3: Select Behaviours and Actions for Standards.
Step 4: Decide Whether Hard or Soft Standards are Appropriate.
Step 5: Develop Feedback Mechanisms for Measurement to Standards.
Step 6: Establish Measures and Target Levels. (ex. Customers’ wait in a line time).
Step 7: Track Measures Against Standards.
Step 8: Provide Feedback about Performance to Employees. In order to all parts or organisation to support evaluation and decision-making at multiple levels of the company.
Step 9: Periodically update Target Levels and Measures. Revising target levels, measures and even customer requirements regularly to keep up with customer expectations. - 8Physical evidenceEnvironment in which the service is delivered and in which the firm and the
customer interact, any tangible commodities that facilitate performance or
communication of the service.
Customers often rely on tangible cues or physical evidence to evaluate the service
before its purchase and to assess their satisfaction with the service during and after consumption. Important in closing provider Gap 2. - 9Servicescapethe actual physical facility in which the service is performed, delivered and
consumed.
- Include exterior (signage, parking, landscape, etc.) and Interior attributes (design, layout, equipment, decor, etc.).
- Webpages and Virtual Servicescapes are recent forms of physical evidence that make services more tangible. It is important that companies live up to the expectations, created by tangible images, virtual tours, and be consistent with their marketing messages. - 10Types of servicescapes1. Self-service environment (ex. ATM, amusement parks);
2. Interpersonal services (ex. hospitality, restaurant);
3. Remote service (opposite from self-service) (ex. telecommunications) - 11Complexity of servicescape- Lean environment: simple environment, with few elements, spaces and pieces of
equipment. (atm)
- Elaborate environment: complicated servicescapes with many elements and forms. (hotel) - 12Strategic roles of the servicescape- Package. As a product’s package ‘wrap’ the service and external image of what is
‘inside’: - Conveys expectations; - Influences perceptions;
- Facilitator. - Facilitates the flow of the service delivery process. Provides information; (how am I to act?) - Facilitates the ordering process; (how does this work?) - Facilitates service delivery;
- Socialiser. - Customers and employees; - Customers and fellow customers;
- Differentiator. - Sets provider apart from competition in the mind of the consumer - 13The Underlying framework of ServicescapeStimulus-organism-response theory framework.
Servicescape effects and the assumptions are that dimensions will impact
customers and employees.
- Stimulus: multidimensional environment.
- Organisms: employees that respond to the stimulus.
- Responses: behaviours directed at the environment. - 14Behaviours in the Servicescape- Individual Behaviours. Individuals react to places with two forms of behaviour:
approach and avoidance.
- Social Interactions. Environmental variables (ex. Seating arrangements, size, flexibility) can define the possibilities and define social rules. - 15Internal Responses to the Servicescape- Environment and Cognition. Form of nonverbal communication - ‘object language’. (ex. Furniture, decor and clothing);
- Environment and Emotion. The colors, decor, music and other elements.
- Environment and Physiology. (loud music, room temperature).
- Variations in Individual Responses. (personality differences, I like loud music, you don't ). - 16Environmental Dimensions of the Servicescape- Ambient Conditions. (Temperature, lighting).
- Spatial Layout and Functionality.
- Signs, Symbols and Artefacts: - Explicit objects - signs displayed on the exterior and interior of a structure; - Implicit - quality construction materials, artwork, certificates, photographs; - 17Guidelines for physical evidence strategy- Recognise the Strategic impact of Physical Evidence.
- Blueprint the Physical Evidence of Service.
- Clarify Strategic Roles of the Servicescape.
- Assess and Identify Physical Evidence Opportunities.
- Be prepared to Update and Modernise the Evidence.
- Work Cross-Functionally.
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- Flashcards on Lecture 6, created by Roberta Daugelai on 29/03/2016.
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- Roberta Daugelai
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