Managing Services and the Service Encounter Alexandria Emba 2010 03
Transcript of Managing Services and the Service Encounter Alexandria Emba 2010 03
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James S. Boles
Robinson College of Business
Georgia State University
@james s boles 2010
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What is a Service? A service is any act of performance that one party canoffer another that is essentially intangible and does not
result in the ownership of anything; its productionmay or may not be tied to a physical product.
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How do Services differ
from Products?
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Distinctive Characteristics
of Servicesy Intangibility
y Inseparability
y Variability y Perishability
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Physical Evidence and Presentationy Place
y People
y Equipmenty Communication material
y Symbols
y Price
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How to Increase Quality Controly Invest in good hiring and training procedures
y Standardize the service-performance process
y Monitor customer satisfaction
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Matching Demand and Supply
Demand side
y Differential pricing
y Nonpeak demand
y Complementary services
y Reservation systems
Supply side
y Part-time employees
y Peak-time efficiency
y Increased consumerparticipation
y Facilities for futureexpansion
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Solutions to Customer Failuresy Redesign processes and redefine customer roles to
simplify service encounters
y Incorporate the right technology to aid employeesand customers
y Create high-performance customers by enhancingtheir role clarity, motivation, and ability
y Encourage customer citizenship where customershelp customers
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Table 13.1 Factors Leading to Customer
Switching Behaviory Pricing
y Inconvenience
y Core Service Failure
y Service Encounter Failures
y Response to Service Failure
y Competition
y
Ethical Problemsy Involuntary Switching
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Gaps that Cause Unsuccessful
Service Deliveryy Gap between consumer expectation and
management perception
y
Gap between management perception and service-quality specifications
y Gap between service-quality specifications andservice delivery
yGap between service delivery and externalcommunications
y Gap between perceived service and expectedservice
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Determinants of Service Qualityy Reliability
y Responsiveness
y Assurancey Empathy
y Tangibles
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Table 13.4 Top Customer
Service Providers
y USAA
y Four Seasons Hotels*
y Cadillac*y Nordstrom*
y Wegman Food Markets
y Edward Jones*
y Lexus*
y UPS*
y Enterprise Rent-a-Car*y Starbucks*
y Ritz-Carlton*
y Amica Insurance
y Southwest Airlines*
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