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the importance of creating a service culture in
which providing excellent service to both
internal and external customers is a way of life. the critical importance of service employees in
creating customer satisfaction and service
quality. the primary channels through which services are
delivered to end customers.
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Service Culture The Critical Importance of Service Employees
Boundary-Spanning Roles Strategies for Delivering Service Quality
Through People Customer-Oriented Service Delivery
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A culture where an appreciation for goodservice exists, and where giving good service
to internal as well as ultimate, externalcustomers, is considered a natural way of lifeand one of the most important norms byeveryone in the organization.
- Christian Gronroos(1990)
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They are the service.
They arethe organization in the customers eyes.
They are the brand.
They are marketers.
Their importance is evident in: the services marketing mix (people) the service-profit chain the services triangle
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Internal Marketing
Interactive Marketing
External Marketing
Company(Management)
CustomersEmployees
Enabling the promise
Delivering the promise
Making the promise
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Focus on a service organization. In the contextyou are focusing on, who occupies each of thethree points of the triangle?
How is each type of marketing being carried outcurrently?
Are the three sides of the triangle well aligned?
Are there specific challenges or barriers in any ofthe three areas?
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Overall Strategic
Assessment
How is the serviceorganization doing on allthree sides of thetriangle?
Where are the
weaknesses?
What are the strengths?
Specific Service
Implementation
What is being promotedand by whom?
How will it be deliveredand by whom?
Are the supportingsystems in place todeliver the promisedservice?
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Who are they?
boundary spanners
What are these jobs like? emotional labor
many sources of potential conflict
quality/productivity tradeoffs
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Internal Environment
External Environment
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Person versus role
Organization versus client
Client versus client
Quality vs. Productivity
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Hire the Right People Compete for the Best People Hire for Service Competencies and Service Inclination Be the Preferred Employer
Develop People to Deliver Service Quality Train for Technical and Interactive Skills Empower Employees Promote Teamwork
Provide Needed support systems
Measure Internal Service Quality Provide Supportive Technology and Equipment Develop Service-Oriented Internal Processes
Retain the best People Include Employees in the Companys Vision
Treat Employees as Customers Measure and Reward Strong Service Performers
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Provideneeded support
systems
Hire theright people
Retain the
best
people
Develop
people to
deliver
service
quality
Hire for service
competencies and
service
inclinationCompete for
the best
people
Measure and
reward strongservice
performers
Treat
employeesas
customers
Includeemployees in
the
companys
visionDevelop
service-oriented
internal
processes
Provide
supportive
technology
and
equipment
Measure
internal service
quality
Promote
teamwork
Empoweremployees
Train for
technical andinteractive
skills
Be the
preferred
employer
Customer-
Oriented
Service
Delivery
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Benefits:
quicker responses to
customer needs during
service delivery
quicker responses to
dissatisfied customers
during service recovery
employees feel better about
their jobs and themselves
employees tend to interact
with warmth/enthusiasm empowered employees are
a great source of ideas
great word-of-mouth
advertising from customers
Drawbacks:
potentially greater dollar
investment in selection
and training
higher labor costs
potentially slower or
inconsistent service
delivery
may violate customers
perceptions of fair play
employees may giveaway the store or make
bad decisions
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Manager
Supervisor
Front-line
Employee
Customers
Front-line
Employee
Front-line
Employee
Front-line
Employee
Supervisor
Front-line
Employee
Front-line
Employee
Front-line
Employee
Front-line
Employee
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Manager
Supervisor
Front-line
Employee
Customers
Front-line
Employee
Front-line
Employee
Front-line
Employee
Supervisor
Front-line
Employee
Front-line
Employee
Front-line
Employee
Front-line
Employee
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Customers Roles in Service
Delivery
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Lack of understanding of their roles
Not being willing or able to perform theirroles
No rewards for good performance
Interfering with other customers
Incompatible market segments
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Other customers can detractfrom satisfaction:
disruptive behaviors
overly demanding behaviors excessive crowding
incompatible needs
Other customers can enhance satisfaction:
mere presence
socialization/friendships
roles: assistants, teachers, supporters, mentors
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Productive Resources
Contributors to
Service Qualityand Satisfaction
Competitors
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customers can be thought of as partialemployees contributing effort, time, or other resources to the
production process
customer inputs can affect organizationsproductivity
key issue: should customers roles be expanded? reduced?
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Customers can contribute to:
their own satisfaction with the service
by performing their role effectively by working with the service provider
the quality of the service they receive
by asking questions by taking responsibility for their own satisfaction
by complaining when there is a service failure
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customers may compete with the serviceprovider
internal exchange vs. external exchange
internal/external decision often based on: expertise capacity resources capacity time capacity
economic rewards psychic rewards trust control
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These are the services produced entirely by thecustomer without any direct involvement withthe firms employees.
A proliferation of new SSTs. Customer usage of SSTs.
Success with SSTs.
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1 2 3 4 5 6Gas Station Illustration
1. Customer pumps gas and pays at the pump with automation
2. Customer pumps gas and goes inside to pay attendant
3. Customer pumps gas and attendant takes payment at the pump
4. Attendant pumps gas and customer pays at the pump with automation
5. Attendant pumps gas and customer goes inside to pay attendant
6. Attendant pumps gas and attendant takes payment at the pump
Customer Production Joint Production Firm Production
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Define customers jobs helping oneself
helping others
promoting the company
Recruit, educate, and reward customers recruit the right customers
educate and train customers to perform effectively
reward customers for their contributions avoid negative outcomes of inappropriate customer participation
Manage the customer mix
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Thank you