people in services
DESCRIPTION
TRANSCRIPT
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SM
Contact: +9811635648 Pankaj kr mishra
Chapter 1
INTRODUCTION
TO
PEOPLE IN SERVICES
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Introduction
Services are deeds,processes and performance
Intangible, but may have a tangible component
Generally produced and consumed at the same time
Need to distinguish between SERVICE and CUSTOMER SERVICE
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Percent of Percent of U.S. Labor Force by IndustryU.S. Labor Force by Industry
0
10
20
30
40
50
60
70
80
1929 1948 1969 1977 1984 1996
Per
cent
of
GD
P
Source: Survey of Current Business, April 1998, Table B.8, July 1988, Table 6.6B, and July 1992, Table 6.4C; Eli Ginzberg and George J. Vojta, “The Service Sector of the U.S. Economy,” Scientific American, 244,3 (1981): 31-39.
Year
Services Manufacturing Mining & Agriculture
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0
10
20
30
40
50
60
70
80
1948 1959 1967 1977 1987 1996
Percent of U.S. Gross Domestic Percent of U.S. Gross Domestic Product by IndustryProduct by Industry
Perc
ent o
f G
DP
Year
Source: Survey of Current Business, August 1996, Table 11, April 1998, Table B.3; Eli Ginzberg and George J. Vojta, “The Service Sector of the U.S. Economy,” Scientific American, 244,3 (1981): 31-39.
Services Manufacturing Mining & Agriculture
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The Services Marketing TriangleThe Services Marketing Triangle
Internal Marketing
Interactive Marketing
External Marketing
Company(Management)
CustomersEmployees
“enabling thepromise”
“delivering the promise”
“setting thepromise”
Source: Philip Kotler
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PEOPLE
Service personnel
Customers
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BY SKILLS OF SERVICE PROVIDERS
BY SKILL OF SERVICE PROVIDER
PROFESSIONAL
NON-PROFESSIONAL
Legal services, Medical services, Accounting services, Management Consulting
Taxi, Security, Shoe Shining
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BY DEGREE OF CUSTOMER CONTACT
BY DEGREE OF CUSTOMER CONTACT
HIGH CONTACT
LOW CONTACT
Universities, Air Travel, Hotel
Lawn care, Automated Care
wash
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Ways to Use the Ways to Use the Services Marketing TriangleServices Marketing Triangle
Overall Strategic Assessment
• How is the service organization doing on all three sides of the triangle?
• Where are the weaknesses?
• What are the strengths?
Specific Service Implementation
• What is being promoted and by whom?
• How will it be delivered and by whom?
• Are the supporting systems in place to deliver the promised service?
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Expanded Mix for Services --Expanded Mix for Services --the 7 Psthe 7 Ps
Product Price Place Promotion People Process Physical Evidence
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PEOPLE PHYSICALEVIDENCE
PROCESS
Employees Facility design Flow of activities
Customers Equipment Number of steps
Communicatingculture and values
Signage Level of customerinvolvement
Employee research Employee dress
Other tangibles
Table 1-3 (Continued)Table 1-3 (Continued)
Expanded Marketing Mix for Expanded Marketing Mix for ServicesServices
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SMPart 1
FOCUS ON THE CUSTOMER
Pankaj kr mishra
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CATEGORY OF CUSTOMERS
CATEGORY OF
CUSTOMERS
HEAVY USERS
MODERATE
LOW USERS
OCCASIONAL USERS
Pankaj kr mishra
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PerceivedService
Expected Service
CUSTOMER
COMPANY
CustomerGap
GAP 1
GAP 2
Gaps Model of Service QualityGaps Model of Service Quality
GAP 3
External Communications
to CustomersGAP 4Service Delivery
Customer-Driven Service Designs and Standards
Company Perceptions of Consumer Expectations
Pankaj kr mishra
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Gaps Model of Service QualityGaps Model of Service Quality
Customer Gap:difference between expectations and perceptions
Provider Gap 1:not knowing what customers expect
Provider Gap 2:not having the right service designs and
standards Provider Gap 3:
not delivering to service standards Provider Gap 4:
not matching performance to promises
Pankaj kr mishra
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The Customer GapThe Customer Gap
ExpectedService
PerceivedService
GAP
Pankaj kr mishra
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SMChapter 3
CUSTOMER EXPECTATIONS OF SERVICES
Pankaj kr mishra
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DEFINITIONS
Customers have different expectations re services – or expected service
Desired service – customer hopes to receive Adequate service – the level of service the
customer may accept
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Figure 3-1Figure 3-1
Dual Customer Dual Customer Expectation LevelsExpectation Levels
(Two levels of expectations)(Two levels of expectations)
Adequate Service
Desired Service
Zone ofTolerance
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Figure 3-3Figure 3-3
Zones of Tolerance Zones of Tolerance VARYVARY for forDifferent Service DimensionsDifferent Service Dimensions
Most Important Factors Least Important Factors
Level of
Expectation
Source: Berry, Parasuraman, and Zeithaml (1993)
Adequate Service
Desired Service
Zone ofTolerance
DesiredService
AdequateService
Zone of
Tolerance
Desired Service
Adequate Service
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Figure 3-2Figure 3-2
The Zone of ToleranceThe Zone of Tolerance
Adequate Service
Desired Service
Zone ofTolerance
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Figure 3-5Figure 3-5
Factors that InfluenceFactors that InfluenceDesired ServiceDesired Service
DesiredService
AdequateService
Zone of
Tolerance
Enduring ServiceIntensifiers
Personal Needs
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Figure 3-6Figure 3-6
Factors that InfluenceFactors that InfluenceAdequate ServiceAdequate Service
DesiredService
AdequateService
Zone of
ToleranceSelf-PerceivedService Role
Situational Factors
Perceived ServiceAlternatives
Transitory ServiceIntensifiers
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Figure 3-7Figure 3-7
Factors that InfluenceFactors that InfluenceDesired and Predicted ServiceDesired and Predicted Service
DesiredService
AdequateService
Zone of
Tolerance
Predicted Service
Explicit ServicePromises
Implicit ServicePromises
Word-of-Mouth
Past Experience
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SM
Figure 4-1Figure 4-1
Customer Perceptions of Customer Perceptions of Service Quality and Service Quality and
Customer SatisfactionCustomer Satisfaction
ServiceQuality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
ProductQuality
PricePersonalFactors
CustomerSatisfaction
SituationalFactors
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SM
Check-InCheck-In
Request Wake-Up CallRequest Wake-Up Call
CheckoutCheckout
Bellboy Takes to Room Bellboy Takes to Room
Restaurant MealRestaurant Meal
Figure 4-4Figure 4-4
A Service Encounter A Service Encounter Cascade for a Hotel VisitCascade for a Hotel Visit
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SM
Sales CallSales Call
Ordering SuppliesOrdering Supplies
BillingBilling
Delivery and Installation Delivery and Installation
ServicingServicing
Figure 4-5Figure 4-5
A Service Encounter A Service Encounter Cascade for an Industrial Cascade for an Industrial
PurchasePurchase
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SM
Figure 6-3Figure 6-3
Underlying Logic of Customer Underlying Logic of Customer Retention Benefits to the Retention Benefits to the
OrganizationOrganization
Customer Retention &Increased Profits
Employee Loyalty
QualityService
Customer Satisfaction
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SMSMChapter 11
EMPLOYEES’ ROLES IN SERVICE DELIVERY
Pankaj kr mishra
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SM Service EmployeesService Employees
• They are the service
• They are the firm in the customer’s eyes
• They are marketers
• Importance is evident in– The Services Marketing Mix (People)– The Service-Profit Chain– The Services Triangle
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SM Service EmployeesService Employees
• Who are they?– “boundary spanners”
• What are these jobs like?– emotional labor– many sources of potential conflict
• person/role• organization/client• interclient• quality/productivity
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SMSERVICE PERSONNEL SERVICE PERSONNEL
QUALITYQUALITY
FUNCTIONAL QUALITY (HOW?) Attitudes Behaviour
Internal Functional
Relations Quality Accessibility
Customer Appearance
Contact
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SM
Figure 11-3Figure 11-3
Boundary Spanners Interact Boundary Spanners Interact with Both Internal with Both Internal
and External Constituentsand External Constituents
Internal Environment
External Environment
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SMFigure 11-4Figure 11-4
Sources of Conflict for Sources of Conflict for Boundary-Spanning WorkersBoundary-Spanning Workers
• Person vs. Role
• Organization vs. Client
• Client vs. Client
• Quality vs. Productivity
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SM
Figure 11-5 Figure 11-5
Human Resource Strategies Human Resource Strategies
Customer-oriented Service Delivery
Hire theRight People
ProvideNeeded Support
Systems
Retain theBest
People
DevelopPeople to
DeliverServiceQuality
Compete
for
the B
est
People
Hire for Service
Competencies and Service Inclination
Provide Supportive Technology
and Equipment
Tre
at
Em
plo
ye
es
a
s
Cu
sto
me
rs
Em
po
we
r E
mp
loy
ee
s
Be the Preferred
Employer Train for
Technical and
Interactive
Skills
Prom
ote
Team
wor
k
Measure
Internal
Service
Quality
Develop Service-
oriented Internal
Processes
Mea
sure
and
R
ewar
d S
tron
g S
ervi
ce
Pro
vide
rs
Include
Em
ployees in
the
Com
pany’s
Vision
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SMSMChapter 12
CUSTOMERS’ ROLES IN SERVICE DELIVERY
Pankaj kr mishra
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SMImportance of Importance of OtherOther
Customers in Service Customers in Service DeliveryDelivery
• Other customers can detract from satisfaction• disruptive behaviors
• excessive crowding
• incompatible needs
• Other customers can enhance satisfaction• mere presence
• socialization/friendships
• roles: assistants, teachers, supporters
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SM
Figure 12-2Figure 12-2
Customer Roles in Service Customer Roles in Service DeliveryDelivery
Productive Resources
Contributors to Quality and Satisfaction
Competitors
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SM Customers as Productive Customers as Productive ResourcesResources
• “partial employees”– contributing effort, time, or other resources to
the production process
• customer inputs can affect organization’s productivity
• key issue:– should customers’ roles be expanded? reduced?
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SMCustomers as Contributors Customers as Contributors
to Service Quality and to Service Quality and SatisfactionSatisfaction
• 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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SMCustomers as CompetitorsCustomers as Competitors
• customers may “compete” with the service provider
• internal/external decision often based on:
– expertise
– resources
– time
– economic rewards
– psychic rewards
– trust
– control
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SM
Figure 12-3Figure 12-3
Strategies for Enhancing Strategies for Enhancing Customer ParticipationCustomer Participation
EffectiveCustomer
ParticipationRecruit, Educate,
and Reward Customers
Define CustomerJobs
Manage theCustomer
Mix
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SMThanksThanks
• Have a nice and delight day
pankaj kr mishra
Shabas azmi