opsm 405 service management class 13: review koç university zeynep aksin [email protected]
TRANSCRIPT
Chapters covered from the book
Introduction Strategic positioning New Service Development (focused on tools:
blueprinting, conjoint analysis) Managing Service Experiences: Starbucks Service Quality (tools: Poke Yoke, service
guarantees)
From lecture notes
Value proposition, focus strategy, strategic service vision, service profit chain: Shouldice, Southwest
Service encounters: Zipcar Service guarantees Customer relationship management: Starbucks
Firms compete on product attributes.This requires process capabilities.
Price (Cost) P Quality Q
– Customer service– Product quality
Time T– Rapid, reliable delivery– New product development
Variety V– Degree of customization
“order winners”
To deliver we need “capabilities”
Management challenges
Service Factory Service ShopLow
High
Low: Taylorism High: High performance workplace
Degree of Workplace Empowerment (Process)
Deg
ree
of C
usto
miz
atio
n
Mass Service Professional Service
process designflexible technology
managing loyaltymanaging people
efficient technologycreating warmth
incentive designquality control
Recall: The service value chain
internalquality
employeesatisfaction
employeeloyalty employee
productivity
Value
customersatisfaction
customerloyalty
$ $ $ Euro$ $ $ YTL
The Value Profit Chain - Schlesinger
Determinants of employee and customer loyalty– cycle of failure - low wages, little training, =>
limited customer loyalty, high turnover– cycle of capability - share of profits, greater
control, => highly productive employees, satisfied customers
Strategic service vision: the external view
Target Market Segments what are the market segments?
Positioning how do customers view the service?
Service Concept what is the service bundle?
Value/Cost Leveraging perceived value-cost?
Operating Strategy investment / purchasing decisions?
Strategy/System Integration is everything consistent?
Service Delivery System what are resource needs?
Identifying quality shortfalls
Customer
Provider
word-of-mouth personal needs past experience
expected service
perceived service
external communicationsto customer
servicedelivery
service qualityspecifications
management perceptions
Gap 1
Gap 5
Gap 3
Gap 2
Gap 4
Sources of pleasure displeasure in service encounters
Recovery: how employees respond to service failure
Adaptability: employee response to customer needs and requests
Spontaneity: unprompted and unsolicited employee actions
Coping: employee response to problem customers
Controlling customer behavior
Normative controls Instrumental controls
Service guarantees: What is a good guarantee?
unconditional easy to understand meaningful easy to invoke easy and quick to collect on
Guarantees for professional services:marketing benefits
prices are high negative consequences of unsolved problems
are high services highly customized brand name recognition can be tough buyer resistance is high
Guarantees for professional services:quality benefits
understanding customer needs understanding service delivery process forces firm to establish measures of customer
satisfaction a general emphasis and focus on service
quality
Guarantees for professional services:the risks
co-production: double moral hazard can be giving the wrong message doesn’t always provide good feedback on
quality ethical issues: can’t guarantee outcomes international setting: cultural differences
The full picture:customer satisfaction, customer retention, and market share
Time
Us
Us
Us
Them
Them
Them
Enter
Enter
Enter
Leave
Leave
Leave
t-1
t
t+1
Radikal gazetesi 28 Mayıs 2005
Creating the Process of Customer Experience
Increase
COMMITMENT & LOYALTY
Memorabilia
Continuity Dynamic
TIME
CONTEXT
RELATIONAL
Learnable – Usable – MutableSocial – Interaction
Increase Emotion & Cognition
PHYSICAL
Theme – Layout – Sensory
Increase Physical Interaction& Cognition
Entertainment Esthetic
Educational Escapist
ABSORBTION IMMERSION
PA
SS
IVE
AC
TIV
EENGAGEMENT
Defining terminology
complexity vs. divergence
what is done? how is it done?
Output analysis: PC Example (source Dolan)
Weight<= 2 lbs 1.22-5 lbs .9>5lbs 0.0
BatteryLife1 hr 0.02hrs 0.24hrs 1.58hrs 1.5
ResolutionBelow avg 0.0Avg. .4Above avg. .5
Price1000 1.02000 0.53000 0.0
Product A: 2 lbs 1hr below average 2000Product B: 5 lbs 4hrs average 3000ProductC: >5lbs 8 hrs average 1000
Value of A= 1.2+0+0+0.5=1.7Value of B = 1.9Value of C = 3.0Sum = 6.6
Share of preference approach:Prob. of choosing A: 1.7/6.6=26%Prob of choosing B: 1.9/6.6=29%Prob. of choosing C: 3.0/6.6=45%
Market share: average purchase probability across all subjects
Summary
Blueprints for documentation Analyze for complexity & divergence for
positioning Understand links between positioning and costs
(service delivery system) Conjoint analysis to assess customer valuations Use output from conjoint analysis to link
valuation, purchase, aggregate market share and profitability