Chapter 5Chapter 5Technology in Technology in
ServiceService
Learning ObjectivesLearning Objectives
1.1. The role of technology in the service The role of technology in the service encounter.encounter.
2.2. Describe the emergence of self-service.Describe the emergence of self-service.
3.3. Place an example of service automation in Place an example of service automation in its proper category.its proper category.
4.4. Describe different Internet business Describe different Internet business models.models.
5.5. Understand the importance of scalability to Understand the importance of scalability to e-commerce success.e-commerce success.
6.6. Discuss the managerial issues associated Discuss the managerial issues associated with the adoption of new technology.with the adoption of new technology.
Role of TechnologyRole of Technology
Technology Technology Technology
Technology Technology
Customer Customer
Server
Server
Server
Server
Server
CustomerCustomer
Customer
D. Technology-MediatedService Encounter
E. Technology-GeneratedService Encounter
A. Technology-FreeService Encounter
B. Technology-AssistedService Encounter
C. Technology-FacilitatedService Encounter
Personal Care, Professional services
MRI, Optometrist, Airlines Financial
planner
Tech call center, House arrest monitoring ATM, Web based info, checkout scanning,
airport kiosks
Service Industry Human Contact Machine Assisted Service Electronic Service
Banking Teller ATM Online banking
Grocery Checkout clerk Self-checkout station Online order/ pickup
Airlines Ticket agent Check-in kiosk Print boarding pass
Restaurants Wait person Vending machine Online order/ delivery
Movie theater Ticket sale Kiosk ticketing Pay-for-view
Book store Information clerk Stock-availability terminal Online shopping
Education Teacher Computer tutorial Distance learning
Gambling Poker dealer Computer poker Online poker
Evolution of Self-Evolution of Self-serviceservice
Classification of Service Classification of Service AutomationAutomation
1.1. Fixed-sequence (F) Fixed-sequence (F) automatic tollbooth, automatic tollbooth,
newspaper dispensernewspaper dispenser 2.2. Variable-sequence (V) Variable-sequence (V) ATM, car wash, ATM, car wash,
collating copy machinecollating copy machine
3.3. Playback (P) Playback (P) directory assistance, directory assistance, answering answering
machine, spell checkmachine, spell check
4.4. Numerical controlled (N) Numerical controlled (N) IRS Forms, IRS Forms,
animationanimation
5.5. Intelligent (I) Intelligent (I) autopilot, computer games, Doppler autopilot, computer games, Doppler
radarradar
6.6. Expert system (E) Expert system (E) car diagnostics, car diagnostics, medical diagnosis, medical diagnosis,
stock tradingstock trading
7.7. Totally automated system (T) Totally automated system (T) telemarketing, telemarketing,
eft, space shuttleeft, space shuttle
Self-service Self-service Technologies (SST)Technologies (SST)
1.1. Does customer adoption of self-service Does customer adoption of self-service follow a predictable pattern? follow a predictable pattern? ffrequently asked requently asked
questionsquestions
2.2. How do we measure self-service quality?How do we measure self-service quality?ease of use, enjoyment, controlease of use, enjoyment, control
3.3. What is the optimal mix of SST and What is the optimal mix of SST and personal service for a service delivery personal service for a service delivery system? system? low vs. high touch low vs. high touch
4.4. How do we achieve continuous How do we achieve continuous improvement when using SST? improvement when using SST? feedback (feed feedback (feed
forward)forward)
5.5. What are the limits of self-service given the What are the limits of self-service given the loss of human interaction? loss of human interaction? lloss of social oss of social
interactioninteraction
Purpose of Web-Purpose of Web-sitesite
1.1. A retail channel A retail channel Amazon.comAmazon.com
2.2. Supplemental channel Supplemental channel Barnes & NobelBarnes & Nobel
3.3. Technical support Technical support Dell ComputerDell Computer
4.4. Embellish existing service Embellish existing service HBR, News HBR, News
websiteswebsites
5.5. Order processing Order processing Airlines, Expedia.comAirlines, Expedia.com
6.6. Convey information Convey information Kelly Blue Book, Dr. Kelly Blue Book, Dr.
KoopKoop
7.7. Organization membership Organization membership asq.orgasq.org
8.8. Games Games treeloot.com treeloot.com
Internet ModelsInternet Models
1.1. Internet Access Providers Internet Access Providers AOL, AOL,
MSNMSN
2.2. Portal Portal Yahoo, Search, DirectoriesYahoo, Search, Directories
3.3. Information Content Information Content News, Hoover’sNews, Hoover’s
4.4. Online Retailer Online Retailer amazon, gardenamazon, garden
5.5. Transaction Enablers Transaction Enablers e-e-
tradetrade
6.6. Market Makers Market Makers ebayebay
E-Business ModelsE-Business Models1.1. Content Provider Content Provider new new
agenciesagencies 2.2. Direct to Customer Direct to Customer Dell, GatewayDell, Gateway
3.3. Full-Service Provider Full-Service Provider GE SupplyGE Supply
4.4. IntermediaryIntermediary ebayebay
5.5. Shared InfrastructureShared Infrastructure Airline Airline
SABRESABRE
6.6. Value Net Integrator Value Net Integrator 7-Eleven Japan7-Eleven Japan
7.7. Virtual CommunityVirtual Community Monster.com Monster.com
8.8. Whole-of-Enterprise Whole-of-Enterprise US Federal US Federal
GovernmentGovernment
Electronic and Traditional Electronic and Traditional ServicesServices
Features Electronic Traditional
Encounter Screen-to-face Face-to-face
Availability Anytime Working hours
Access From anywhere Travel to location
Market Area Worldwide Local
Ambiance Electronic interface
Physical environment
Payment Credit card Cash or check
Differentiation Convenience Personalization
Privacy Anonymity Social interaction
Grocery Shopping Grocery Shopping ComparisonComparison
On-line Shopping
Traditional Shopping
Advantages Convenience Saves time Less impulse buying
See new items Memory trigger Product sampling Social interaction
Disadvantages Forget items Less control Need computer Delivery fee
Time consuming Waiting lines Carry groceries Impulse buying
Economics of ScalabilityEconomics of Scalability(revenue-variable costs)(revenue-variable costs)
Dimensions High Scalability Low
E-commerce continuum
Sellinginformation(E-service)
Selling value-added service
Sellingservices with
goods
Selling goods(E-commerce)
Information vs. Goods Content
Information dominates
Information with some service
Goods with support services
Goods dominate
Degree of Customer Content
Self-service Call center backup Call center support Call center order processing
Standardization vs. Customization
Mass distribution Some personalization
Limited customization
Fill individual orders
Shipping and Handling Costs
Digital asset Mailing Shipping Shipping, order fulfillment, and warehousing
After-sales service None Answer questions Remote maintenance Returns possible
Example Service Used car prices Online travel agent Computer support Online retailer
Example Firm Kbb.com Biztravel.com Everdream.com Amazon.com
Topic for Open Topic for Open DiscussionDiscussion
Can an Internet service Can an Internet service encounter be a memorable encounter be a memorable experience?experience?
Top Related