services marketingmkt 346 chap 8 concepts

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  • 8/12/2019 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