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Chapter 8 The Service Encounter

Chapter 8 The Service Encounter. “Moment of truth”? by J. Carlzon (SAS) 2. 請顧客幫忙公司選新員工？ ex. Southwestern Airlines 3. 事先演練可能出現的各種狀況？. Learning Objectives. 1. Service encounter triad 2. Service organization’s culture 3. Contact personnel: empowerment

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Chapter 8 The Service Encounter

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  1. Chapter 8 The Service Encounter

  2. “Moment of truth”? by J. Carlzon (SAS) 2. 請顧客幫忙公司選新員工？ ex. Southwestern Airlines 3. 事先演練可能出現的各種狀況？

  3. Learning Objectives 1. Service encounter triad 2. Service organization’s culture 3. Contact personnel: empowerment 4. Customer as coproducer 5. Service profit chain

  4. Service Organization Efficiency versus autonomy Efficiency versus satisfaction Contact Personnel Customer Perceived control 1. The Service Encounter Triad

  5. 2. The Service Organization • Mintzberg (1989) - Culture is the traditions and beliefs of an organization that distinguish it from others. • Culture ServiceMaster (Service to the Master) Disney (Choice of language) Ritz-Carlton (L&G service L&G)

  6. 3. Employee empowerment • Invest in people • Use IT to enable personnel • Recruitment and training critical • Pay for performance

  7. 3. Contact Personnel • Selection (1) Abstract Questioning (2) Situational Vignette (3) Role Playing • TrainingUnrealistic customer expectationsUnexpected service failure

  8. 4. Difficult Interactions with Customers Unrealistic customer expectations Unexpected service failure 1. Unreasonable demands 1. Unavailable service 2. Demands against policies 2. Slow performance 3. Unacceptable treatment of 3. Unacceptable service employees 4. Drunkenness 5. Breaking of societal norms 6. Special-needs customers e.g. 遠航李董

  9. Examples of Unethical Behaviors

  10. 4. Customer as Co-Producer • Expectations and Attitudes Economizing customer Ethical customer Personalizing customer Convenience customer • Customer as Co-Producer

  11. Customer Service Provider Human Machine Employee selection User friendly Interpersonal skills Verification Human Support technology Security Engender trust Easy to access Easy to access Compatibility Fast response Tracking Machine Verification Verification Remote monitoring Security 4. Service Encounter Success Factors

  12. 4. Employee Perceptions of Customer Service at a Branch Bank Outstanding Terrible Terrible Outstanding

  13. 4. Satisfaction Mirror More Familiarity with Customer Needs andWays of Meeting Them More Repeat Purchases Stronger Tendency to Complain about Service Errors Greater Opportunity for Recovery from Errors Higher Employee Satisfaction Higher Customer Satisfaction Higher Productivity Lower Costs Better Results Improved Quality of Service

  14. 4. The Cycle of Capability • Careful employee and customer selection • High-quality training • Well-designed support systems • Greater latitude to meet customer’s needs • Appropriate rewards and recognition • Satisfied employees • Employee referrals of job candidates

  15. Loyalty Satisfaction Productivity & Output quality Employees Capability Service quality 5. Service Profit Chain Internal External Service concept Operating strategy and service delivery system Target market Customers Revenue growth Service value Satisfaction Loyalty Profitability Workplace design Job design / decision-making latitude Selection and development Rewards and recognition Information and communication Adequate “tools” to serve customers Quality & productivity improvements yield higher service quality and lower cost Attractive Value Service designed & delivered to meet targeted customers’ needs Lifetime value Retention Repeat Business Referral

  16. Topics for Discussion • What are the organizational and marketing implications of considering a customer as a “partial employee”? • Comment on the different dynamics of one-on-one service and group service. • How does use of a “service script” relate to service quality?

  17. Situational Vignette 1 A particular customer has the irritating habit of always showing up about two minutes before closing and staying late. Often this occurs on the night when weekly store meeting are held after closing time. This delays starting the meeting and furthermore employees are on the clock waiting for the customer to leave. What would you do?

  18. Situational Vignette 2 As a new employee at a busy store, you have been routinely performing clean-up tasks (garbage removal and restroom cleaning). Company policy dictates that these are tasks to be shared. It has become clear that two employees consistently avoid these jobs in favor of more pleasant duties. How would you handle this situation?

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