Unit 5 Service Encounter Nguyen Manh Tuan Technology in Service Encounter Service Encounter Triad Customer service orientation Service profit chains Use the service encounter triad to describe a service firms delivery process
Unit Service Encounter Nguyen Manh Tuan 5/18/2020 nguyen manh tuan – internal use AGENDA 5/18/2020 Technology in Service Encounter Service Encounter Triad Customer Service Orientation Service Profit Chain nguyen manh tuan – internal use Learning Objectives Use the service encounter triad to describe a service firm’s delivery process Discuss the role of organizational control systems for employee empowerment Discuss the role of customer as coproducer Describe how elements of the service profit chain lead to revenue growth and profitability 5/18/2020 nguyen manh tuan – internal use Role of Technology in Service Encounter Law, consulting Face to Face Contact Customer Health care Technology Server A Technology-Free Service Encounter Face to Screen Contact Customer Technology Server B Technology-Assisted Service Encounter Technology Online reservation 5/18/2020 Technology Customer Customer D Technology-Mediated Service Encounter Customer Server C Technology-Facilitated Service Encounter Technology Server Financial service Selfservice Server E Technology-Generated Service Encounter Evolution of Self-service Service Industry Human Contact Machine Assisted Internet Facilitated 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 Movie theater Ticket sale Kiosk ticketing Book store Online order/ delivery Pay-for-view Information clerk Stock-availability terminal Online shopping Education Teacher Computer tutorial Distance learning Gambling Poker dealer Computer poker Online poker From server 5/18/2020 nguyen manh tuan – internal use From customer The Service Encounter Triad Service Organization Efficiency versus autonomy Contact Personnel Selection Training Ethical Climate 5/18/2020 Culture Empowerment Control systems Service delivery Efficiency versus satisfaction Customer Expectation & Attitudes Coproduction nguyen manh tuan – internal use The Service Encounter Triad 5/18/2020 nguyen manh tuan – internal use The Service Encounter Triad 5/18/2020 nguyen manh tuan – internal use The Service Encounter Triad 5/18/2020 nguyen manh tuan – internal use The Service Encounter Triad 5/18/2020 nguyen manh tuan – internal use 10 The Service Organization Culture Schwartz and Davis (1981) - Culture is a pattern of beliefs and expectations shared by the organization’s 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 5/18/2020 nguyen manh tuan – internal use 14 The Service Organization Culture Climate/culture/identity that prescribes a norm of behaviors or sets of values to guide employee decision making in the firm The use of language and symbols communicates the culture of organization ServiceMaster (“Service to the Master”) Disney (“Casting”) 5/18/2020 nguyen manh tuan – internal use 15 The Service Organization Empowerment (vs Delegation) Invest in people Use IT to enable personnel Recruitment and training critical Pay for performance Instructions provide employees with knowledge of their own limitations VS Information provides them with knowledge of their opportunities and possibilities 5/18/2020 nguyen manh tuan – internal use 16 The Service Organization Control System Objective Employee Challenge Management Challenge Key Issues Belief Contribute Uncertainty Communicate about purpose core values and mission Identify core values Boundary Compliance Pressure or temptation Specify and enforce rules Risks to be avoided Diagnostic Achieve Lack of focus Build and support clear targets Critical performance variables Interactive Create Lack of opportunity or fear of risk taking Open Strategic organizational uncertainties dialogue to encourage learning Organizational Control Systems for Employee Empowerment 5/18/2020 nguyen manh tuan – internal use 17 The Service Organization Customer Relationship Management CRM vs SCM (vs ERP) Information industry term for methodologies and tools for organization to manage its relationships Some capabilities of CRM systems: To identify and target best customers, manage marketing campaigns, To form individualized relationships with customers, improve customer satisfaction, To improve sales management 5/18/2020 nguyen manh tuan – internal use 18 Contact Personnel Selection Abstract Questioning (open-ended) Situational Vignette Role Playing Training Unrealistic customer expectations Unexpected service failure Creating an Ethical Climate 5/18/2020 nguyen manh tuan – internal use 19 Contact Personnel Unrealistic customer expectations Unexpected service failure Unreasonable demands Unavailable service Demands against policies Slow performance Unacceptable treatment of Unacceptable service employees Drunkenness Breaking of societal norms Special-needs customers Challenges Facing Customer Contact Personnel (Fitzsimmons & 5/18/2020 nguyen manh tuan – internal use Fitzsimmons 2006) 20 The Customer Expectations and Attitudes (Stone 1954) Economizing customer Ethical customer Personalizing customer Convenience customer 5/18/2020 nguyen manh tuan – internal use 21 The Customer Some dimensions in customer selection between self-service and traditional full service: Amount of time involved Customer’s control of the situation Efficiency of the process Amount of human contact involved Risk involved Amount of effort involved Customer’s need to depend on others Customer as Co-Producer The role of scripts in co-production 5/18/2020 nguyen manh tuan – internal use 22 Summary of Service Encounters Service Provider Customer Human Machine Human Machine Employee selection Interpersonal skills Support technology Employees engender trust User friendly Customer verification Transaction security Easy access Easy access Fast response Transaction verification Remote monitoring Compatibility Tracking capability Automatic verification Transaction security 5/18/2020 manh tuan – internal use 1-23 Service Encounter Successnguyen Factors (Fitzsimmons & Fitzsimmons 2006) Creating a Customer Service Orientation 5/18/2020 nguyen manh tuan – internal use Satisfaction Mirror/Duality (Fitzsimmons & Fitzsimmons 2006) Service Profit Chain Internal External Operating strategy and service delivery system Service concept Target market Loyalty Revenue growth Customers Satisfaction Employees Capability Productivity & Output quality Service value Satisfaction Loyalty Profitability Service quality Workplace design; Job design/Decision-making latitude; Selection and development; Rewards and recognition; Information and communication; Adequate ‘tools’ to serve customers; 5/18/2020 Quality & productivity improvements yield higher service quality and lower cost Attractive Value; Service designed & delivered to meet targeted customers’ needs nguyen manh tuan – internal use (Fitzsimmons & Fitzsimmons 2006) Lifetime value; Retention; Repeat Business; Referrals 1-25 Service Profit Chain 5/18/2020 nguyen manh tuan – internal use 26 Service Profit Chain 5/18/2020 nguyen manh tuan – internal use 27 THE END 5/18/2020 nguyen manh tuan – internal use 28 ... 5/ 18/2020 Technology in Service Encounter Service Encounter Triad Customer Service Orientation Service Profit Chain nguyen manh tuan – internal use Learning Objectives Use the service encounter. .. internal use The Service Encounter Triad 5/ 18/2020 nguyen manh tuan – internal use The Service Encounter Triad 5/ 18/2020 nguyen manh tuan – internal use The Service Encounter Triad 5/ 18/2020 nguyen... Technology-Assisted Service Encounter Technology Online reservation 5/ 18/2020 Technology Customer Customer D Technology-Mediated Service Encounter Customer Server C Technology-Facilitated Service Encounter