Service Print Out
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Transcript of Service Print Out
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Services Characteristics V/s GoodsGoods Services Resulting implications
Tangible Intangible - Services cannot be inventoried.- Patented.- Readily displayed or communicated.- Pricing is difficult.
Standardized Heterogeneous - Service delivery and customer satisfactiondepend on employee actions.
- Service quality depends on uncontrollablefactors
Production Simultaneous production - Customers & employees affect the serviceseparate from and consumption outcome.
consumption
Nonperishable Perishable - Difficult to synchronize supply anddemand with services.
- Services cannot be returned or resold.
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The services triangle and technology
Providers Customers
Company
Technology
Internal MarketingEnabling promises
Interactive MarketingKeeping promises
External MarketingMaking promises
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Service Quality Model
Word-of-mouthcommunications
Personal needs
Past experience
Expected service
Perceived service
Service delivery(including pre-and
post-contacts )
Translation ofperceptions into
service-qualityspecifications
Managementperceptions of
consumerexpectations
Externalcommunications
to consumers
GAP 5
GAP4
GAP3
GAP2
GAP 1
CONSUMER MARKETER
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The provider gaps are the underlying causes behind thecustomer gap:
Gap 1 -- Not knowing what customers expect.Gap 2 -- Not selecting the right service designs and
standards.Gap 3 -- Not delivering to service standards.Gap 4 -- Not matching performance to promises.
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Nature and determinants of customer expectations ofservice
Enduring Service Intensifiers* Derived expectations from others (customers,family)
* Personal Service Philosophies ( your own trainedstandards).
Personal NeedsEg diabetic and refrigerator
Explicit Service promises* Advertising* Personal Selling* contracts* Other communications
Implicit Service Promises* Tangibles* Price
Word of Mouth* Personal* Expert (Consumer Reports, publicity, Consultants,surrogates)
Past ExperienceAcross Industries
Predicted Service
Zone of
Tolerance
DesiredService
AdequateService
Expected Service
Perceived ServiceGap 5
Transitory Service Intensifiers* Emergencies* Service problems earlier
Perceived Service Alternatives
Self- Perceived Service Rolee.g. articulate customer
Situational Factors
* Bad weather * Catastrophe* Random overdemand
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Customer perceptions of quality and customersatisfaction
Reliability
Responsiveness
Assurance
Empathy
Tangibles
ServiceQuality
Product
Quality
Price
SituationalFactors
CustomerSatisfaction
Personal Factors - emotions,attributions for service
success or failure,Perceptions of equity or fairness
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Service Quality Dimensions
Reliability : Ability to perform the promised servicedependably and accurately.
Responsiveness: Willingness to help customers , answerquestions,solves problems and provide prompt service, be
flexible and customise. Assurance : Employees knowledge and courtesy and their
ability to inspire trust and confidence. Empathy: Caring individualized attention given to
customers and made to feel special.. Tangibles: Appearance of physical facilities, equipment,
personnel and written materials.Sometimes customers will use all of the dimensions to
determine service quality perceptions, at other times not.E. . ATM
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SERVQUAL ATTRIBUTES
Reliability -5 Employees who have the knowledge to Providing service as promised answer customer questions Dependability in handling customers
service Empathy -5
problems Performing services right the first time Giving customers individual attention Providing services at the promised time Employees who deal with customers in a
caring fashion
Maintaining error-free recordsResponsiveness-4 Having the customer
s best interests at heart Keeping customer informed as to when services Employees who understand the needs of their
will be performed customers
Prompt service to customers Convenient business hours
Willingness to help customers Tangibles -4 Readiness to respond to customers
requests Modern equipment Assurance-4 Visually appealing facilities Employees who instill confidence in customers Employees who have a neat, professional appear-
ance Making customers feel safe in their transactions Visually appealing materials associated
Employees who are consistently courteous with the service
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Evidence of service tangibilizes the offerings(from customer
s point of view)
People
PhysicalEvidenceProcess
* Contact employees
* Customer him/ herself* Other customers
* Tangible communication* Servicesscape* Guarantees* Technology
* Operational flow ofactivities
* Steps in process
* Flexibility versus standard* Technology versus human
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Key factors leading to provider gap 1
Gap 1
Customer Expectations
Company Perceptions ofCustomer Ex ectations
- Inadequate Marketing Research OrientationInsufficient marketing researchResearch not focused on service qualityInadequate use of market research
- Lack of Upward CommunicationLack of interaction between management and customersInsufficient communication between contact employeesand managersToo many layers between contact personnel and top management
- Insufficient Relationship FocusLack of market segmentationFocus on transactions rather than relationshipsFocus on new customers rather than relationship customers
- Inadequate Service Recovery
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Techniques of Services MarketingResearch
1. Complaint solicitation in hope of identifying common service failure
points. But only 4% customers complain.2. Critical incidents studies customers are asked to provide verbatim
stories about satisfying & dissatisfying service encounters. Helpsespecially in behavioral dimensions in service encounters.
3. Requirements research involve identifying benefits & attributes thatcustomers expect in a service through qualitative followed byquantitative technique. Facilitators asks what, why & how questions(how customers will understand when they receive a service feature)
4. Relationship surveys to track performance on all elements incustomer
s relationship with service i.e. service, product, price.5. Trailer calls or post transactions surveys to capture information
about one or all of key service encounters immediately after transaction.6. Service expectation meetings & reviews in business to business
situations.7. Process checkpoint evaluations used in professional service like
consulting, construction, architecture etc.where services are provided
over a long period of time.
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8. Market-oriented ethnography to capture cultural nuances ofservice usage. Done through observation, interviews with keyinformants, studying documents & examining material
possessions such as artifacts.
9. Mystery shopping hired outside research organisationpersonnel visit & experience the service as if they werecustomers.
10. Customer panels ongoing groups of customers provideattitudes & perceptions about service over time.
11. Lost customer research acts as early warning system forfuture defectors.
12. Future expectations research features research involvesquerying of customers about desirable features. Lead userresearch asks opinion leaders / innovators. Synecticsapproachdefine users more broadly.
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Building Customer Relationships
- Lifetime value of customer(retention/relationship focus instead of Acquisition/ transaction focus)- Attracting,satisfying,retaining,enhancing- Foundation for relationship strategies area. Quality in the core serviceb. Market segmentation & selecting best targetsc. Compatibility of target segments must be ensuredd. Monitoring, relationships through databasee. Retention strategies - financial, social, customization & intimacy
bonds, structural bondsf. Customer appreciation
- Note that all customers aren't right(wrong segment, non profitable, difficult customers)
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Understanding BehavioralStyles(Personality factor)
Relational/Amiable- Ask assertive andEmote responsive
Expressive-Tell assertive and Emoteresponsive Analytical-Ask assertive and Control
responsive Dominant/Drivers-Tell assertive and
control responsive
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Providing services
The Freezer- low in both personal andprocedural
we don
t care
The Factory -high procedural but low personal
you are a number.We are here to process you
The Friendly Zoo -high personal but low
procedura proficiency
we are trying hard ,butwe don
t know what we are doing
Quality customer service strong in both
personal and procedural
we care and wedeliver
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Levels of retention strategies
Excellent ServiceQuality and Value
IntegratedInformationSystemsJoint
Investments
SharedProcessesand Equip.
Anticipation /Innovation
MassCustomization
CustomerIntimacy
SocialBonds amongCustomers
PersonalRelationships
ContinuousRelationships
Stable
Pricing
Bundling andCross Selling
Volume andFrequencyRewards
IV. StructuralBonds
I. FinancialBonds
III. CustomizationBonds
II. SocialBonds
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CUSTOMER RELATIONSHIP BUILDING
BASIC MARKETING Simply Sell
REACTIVE MARKETING Sell & encourage customer to call ifany Questions, comments or complaints.
ACCOUNTABLE MARKETING Salesman phones after sale
PROACTIVE MARKETING Salesperson contacts from time totime with suggestions about improved product uses or new products
PARTNERSHIP MARKETING
Company works continuously withcustomer to discover ways to effect customer savings or help customer perform better.
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LEVELS OF RELATIONSHIP MARKETING
HIGHMARGIN
MEDIUMMARGIN
LOWMARGIN
Many customers/distributors
Accountable Reactive
Accountable
Basic orreactive
Proactive ReactiveMedium numberof customers/distributors
Proactive AccountableFew customers /distributors
Partnership
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CUSTOMER / PRODUCT PROFITABILITYANALYSISCustomers
Products
C 1 C 2 C 3
P 1 + + + Highly profitable product
P2 +
Profitable product
P 3 - - Losing product
P 4 + - Mixed bag product
High-profitcustomer
Mixed-bagcustomer
Losingcustomer
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Recovery Paradox
Service Failure
Take Action Do Nothing
Stay with ProviderSwitch Providers
Complain toThird Party
Complain toFamily and Friends
Complain toProvider
Switch Providers Stay with Provider
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Types of Complainers - No.& proportion will vary acrossindustries & contexts.
1. Passives - no action
2. Voicers -
friends of service providers
3. Irates - engage in ( -) ve word of mouth to friends &relatives & switch.
4. Activists - complain to all.
Types of Complainers
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Complaining Customer
s Expectations
- Customers more likely to complain forexpensive, high-risk & ego involving products.
- Fair treatment (outcome, procedural &
interactional fairness).
A. Outcome- compensation that matches thelevel of their dissatisfaction.
B. Procedural - fairness in terms of policies,rules & timeliness, easy access.
C.Interactional - Politeness, care, honesty
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Service Recovery Strategies
1. Right first time- fail safe the service.2. Welcome & encourage complaints3. Act quickly - ownership of complaint, empowerment of
employees, anticipate problems (e.g. delayed flight &hunger), allow customers to solve problems.
4. Treat customers fairly.5. Learn from recovery experiences (source of diagnostic ,
prescriptive information)6. Learn from lost customers.
Pricing
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* High Price* Price Increases* Unfair Pricing* Deceptive Pricing
* Location / Hours* Wait for Appointment* Wait for service
* Service Mistakes* billing Errors* Service catastrophe
* Negative Response
* No Response * Reluctant Response
* Uncaring * Impolite * Unresponsive* Unknowledgeable
Ethical Problems* Chat * Hard Sell * Unsafe* Conflict of Interest
* Found Better Service
Involuntary Switching* customer Moved * Provider Closed
Pricing
Inconvenience
Core Service Failure
Service Encounter Failure
Response to Service Failure
Competition
Causes behind
service switching ServiceSwitchingBehavior
K f l di id 2
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Key factor leading to provider gap 2
Gap 2
Customer- Driven Service
Designs and Standards
* Poor Service Design Unsystematic new-service development process
Vague, undefined service designsFailure to connect service design to service positioning
* Absence of Customer-Defined Standards Lack of customer-defined service standards
Absence of process management to focus on customer requirementsAbsence of formal process for setting service quality goals
* Inappropriate physical Evidence and Servicescape
Management Perceptions of
Customer Expectations
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New service development process
1. Business strategy development or renew2. New service strategy development3. Idea generation (brainstorming, lead-user research, learning
from competitors offerings, observation (empathic design)4. Concept development & evaluation (with customers &
employees) Service blueprint5. Business analysis (test for profitability & feasibility)6. Service development & testing (prototype test)
7. Market testing8. Commercialization9. Post introduction evaluation I
m p
l e m e n
t a t i o n
F r o n t e n
d p
l a n n
i n g
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New service strategy matrix foridentifying growth opportunities
Offerings
Markets
Current Customers New Customers
Existing Services SHARE BUILDING MARKETDEVELOPMENT
New Services SERVICEDEVELOPMENT
DIVERSIFICATION