services marketingmkt 346 chap 8 concepts
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MKT 346: Marketing of ServicesDr. Houston
Chapter 8:
Designing and Managing
Service Processes
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A simple chart that describes the flow ofan existing service process
Service Flowchart
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Flowcharting Service DeliveryHelps to Clarify Service Product Elements
Helps to visualize the total customer serviceexperience
Shows how nature of customer involvement
varies by type of service:
People processing
Possession processing
Mental stimulus processing
Information processing
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A detailed chart of how a service processshould be constructed
Important issues to consider:
Front stage activities
Back stage activities
Support processes
Service Blueprint
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Helps identify f ron t stage activities
Helps identify backstage activities
Clarifies interactions between customers and staff
Clarifies support by backstage activities and systems
Identifies potential fail points
Helps prepare preventive measures and contingency plans
Helps pinpoint bott lenecks in the service process
Advantages of Blueprinting
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Start by identifying key activities in service process
Define big picture first then details later
Map service process from customers point of view
Developing the Service Blueprint
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Key Components of a Service Blueprint
Definefront-stagestandards
Specifyphysical
evi-dence
Map keycustomeractions
Map lineof inter-action
Mapfront-stage
actions
Map lineof
visibility
Mapback-stage
actions
Mapsupport
pro-cesses
Map ITsupport
pro-cesses
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ACT 1:Introductoryscenes ACT 2:Delivery ofcore service
ACT 3:
Conclusionof the
service
The Theater of Restaurant Service:A Three-Act Performance
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Improving Reliability of Processesby Failure Proofing
Identify fail points
Identify and analyze root causes
Use creative strategies to prevent failures
Set up poka-yokes for service staff
Set up poka-yokes for customers
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Why Redesign?
Revitalizes outdated service processes
Changes in external environment require redesignto stay relevant
Natural deterioration of internal processes andstandards
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Service Process Redesign:Approaches and Potential Benefits
Eliminating non-value-adding steps
Shifting to self-service
Deliver direct services
Bundle services
Redesign physical aspects of service
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Customer Participation
Actions and resources supplied by customers
During service production and/or delivery
Includes mental, physical, and even emotional inputs
Three Levels of Customer Participation
Low
Medium
High
Levels of Customer Participation
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Customers can influence productivity and quality of
service processes and outputs
Customers not only bring expectations and needs,they also need to have relevant service production
competencies
Customers also need to be recruited as they arepartial employees. Firms need to get those withthe skills to do the tasks
For the relationship to last, both parties need tocooperate with each other
Customers as Partial Employees
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Self-Service Technologies (SSTs)
Customers perform specific activities
Customers time and effort replace those of employees
Examples: ATMs, self-service gas stations
SSTs are perfect for information-based services
Used in both supplementary services and delivery of coreproduct
Example: Ebay
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Time savings
Cost savings
Flexibility
Convenience of location
Greater control over service delivery
High perceived level of customization
Advantages of Self Service Technologies
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Key Weakness: Lack of integrated servicerecovery process
Anxiety and stress experienced by technophobiccustomers
Some customers prefer to deal with people
Disadvantages of Self Service Technologies
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Flowcharting
Service blueprinting
Failure proofing
Service process redesign
Customer as co-producer
Self-service technologies
MKT 346 Key Concepts: Chapter 8