Chapter 13: Customers’ Roles in Service Delivery

1. Chapter 13: Customers’ Roles in Service Delivery When a customer does not understand his role in the service delivery process, he is contributing to Provider Gap 3 Customers producing service for themselves Levels of customer participation: High vs Low: eating in a restaurant, staying in a hotel, attending a concert, having a physical exam

2. Table 13.1Levels of Customer Participation across Different Services Source: Adapted from A. R. Hubbert, “Customer Co-Creation of Service Outcomes: Effects of Locus of Causality Attributions,” doctoral dissertation, Arizona State University, Tempe, Arizona, 1995.

3. Importance of Other (“Fellow”) Customersin Service Delivery • Other customers can detract from satisfaction: • disruptive behaviors • overly demanding behaviors • excessive crowding • incompatible needs • Other customers can enhance satisfaction: • mere presence • socialization/friendships • roles: assistants, teachers, supporters, mentors

4. Customers’ Roles 1. Customers as ___________________________ If customers contribute effort, time, or other resources to the service production process, they should be considered as part of the organization - partial employees Ex: Self service gas station; automated ticket machines for airlines Customer inputs can affect the organization’s productivity Should customers’ roles be expanded or reduced? Does role enhance customer value?

5. Traditional Rental Car Firms Customer has little involvement in the process except to refill the gas tank before returning the vehicle. Customer has numerous options to book the vehicle, include company toll free numbers, company websites, and traditional travel agents. Frequently customer has options, like one-way rentals and pick-up or delivery, although usually for an added fee. easyCar.com Customer designed into the process and required to do certain tasks traditionally done by the company (or be charged a higher fee for the service). Customer expected to print out the service contract and bring it with him/her, fill the car with fuel, and, most significantly, clean the car prior to returning it so that it is in ready-to-rent condition when it is returned. Technology used extensively in the booking process to replace people, again reducing labor costs. Process very standardized, with few extras. Customers as Productive Resources (esayCar.com)

6. Customers’ Roles • Customers as contributors of ___________________________________ Effective customer participation may increase the likelihood that needs are met and that the benefits the customer seeks are actually attained Providing a physician details about symptoms, family heath history, lifestyle, and health habits (diet, alcohol use, smoking, etc.)

7. Customers’ Roles Customers can contribute to: the of the service they receive • by asking questions • by taking responsibility for their own satisfaction • by complaining when there is service failure their own with the service • by performing their role effectively • by working with the service provider

8. Customers’ Roles 3. Customers as ____________________ Customers are viewed as competitors when they produce a service for themselves Internal exchange: produce service for ________________ External exchange: have _____________ produce service internal exchange vs. external exchange based on: expertise, resources , time, economic rewards, psychic rewards, trust, control

9. Self-service Technologies (SSTs) – The Ultimate in Customer Participation Why SSTs? Cost Savings to firm Customer Demand SST Failure – Customers see no personal benefit from using SST; lack of ability or knowledge in using SST Customer Readiness – What’s in it for me?; Do I have the ability to use this SST?; Do I understand what I am supposed to do?

10. Strategies for Enhancing Customer Participation Define customers jobs: - Increase the level of customer involvement in service delivery through active participation (help oneself)ex: __________________________ - Customers helping others ex: university mentoring programs - Use customers to promote company: credit card offers 10,000 free miles to those who can solicit a new credit card customer

11. Strategies for Enhancing Customer Participation Recruit, Educate, and Reward Customers: Recruit the : communicate expected roles and responsibilities in advertising and other company messages Ex:__________________________________________

12. Strategies for Enhancing Customer Participation Recruit, Educate, and Reward Customers: Educate and Train Customers to Perform Effectively: patient handbooks for hospitals; customer orientation programs; ___________________: An airport with large, easily read signage and well-designed foot traffic patterns that allow travelers to perform their roles with ease ____________________________: A sign at the entrance to the children's hospital contained the hospital's mission statement and explained its vision.

13. Strategies for Enhancing Customer Participation Recruit, Educate, and Reward Customers: Reward Customers for Their Contributions: make benefits apparent to customers - better health or quicker recovery from following patient handbook A service station offers customers lower gasoline prices at a self-service pump compared to the prices at a full service pump

14. Strategies for Enhancing Customer Participation Manage the Customer Mix: ______________________________________________________ Communicate beforehand - allow customers to self-select Compatible customers are grouped together Customer “codes of conduct” Proper training of personnel