Module 5
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This document discusses service employees and their important role in service delivery. It notes that service employees are the service, the organization's brand, and marketers in the customer's eyes. It also discusses the service triangle model and how providers (employees), customers, and the company work together. The service profit chain links employee satisfaction to customer satisfaction and loyalty. Effective service relies on employee reliability, responsiveness, assurance, and empathy. Strategies for managing conflicts faced by boundary-spanning employees are also examined.
Module 5
- 1. EMPLOYEE ROLE IN SERVICE DESIGNING MODULE-5
- 3. Service Employees • They are the service. • They are the organization in the customer’s 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
- 4. Service triangle • Services marketing is about promises. • The triangle shows the three interlinked groups that work together to develop, promote, and deliver services. • Providers:- employees, subcontractors or outsources entities. • All three sides of the triangle are essential to complete the whole
- 5. The Service Profit Chain
- 6. The Services Marketing Triangle . Internal Marketing Interactive Marketing External Marketing Company (Management) CustomersEmployees enabling promises keeping promises setting promises Source: Adapted from Mary Jo Bitner, Christian Gronroos, and Philip Kotler
- 7. Services quality • Services quality can be influenced directly by services employees. • Reliability:- is often totally within the control of front-line employees. • Responsiveness:- personal willingness to help and their promptness in serving customers. • Assurance:- credibility, trust, and confidence will be tied totally to employee. • Empathy:- employees will pay attention , listen, adapt according to the customer requirements.
- 8. Service 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
- 9. Boundary spanners • The front-line service employees are referred to as boundary spanners. • Who interact directly with customer. • Their skills and experiences cover the full spectrum of job and careers. • No matter what the level of skills or pay, boundary-spanning positions are often high- stress jobs.
- 10. Boundary Spanners Interact with Both Internal and External Constituents . Internal Environment External Environment
- 11. Emotional labor • The labor that goes beyond the physical or mental skills needed to deliver quality services. • Providing good physical working condition and allowing employees to take schedule breaks .
- 12. Sources of Conflict for Boundary-Spanning Workers • Front-line employees often face interpersonal and inter organizational conflicts on the job. • Their frustration and confusion can, if the unattended, lead to stress, job dissatisfaction, a diminished ability to serve customer and burnout.
- 13. Sources of Conflict for Boundary-Spanning Workers
- 14. Human Resource Strategies for Closing GAP 3
- 15. Customers’ Roles in Service Delivery
- 16. Levels of Customer Participation across Different Services
- 17. Importance of Other Customers in Service Delivery • 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
- 18. How Customers Widen Gap 3 • Lack of understanding of their roles • Not being willing or able to perform their roles • No rewards for “good performance” • Interfering with other customers • Incompatible market segments
- 19. Customer Roles in Service Delivery . Productive Resources Contributors to Quality and Satisfaction Competitors
- 20. Customers as Productive Resources • “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?
- 21. Customers as Contributors to Service Quality and Satisfaction • 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
- 22. Customers as Competitors • customers may “compete” with the service provider • “internal exchange” vs. “external exchange” • internal/external decision often based on: – expertise – resources – time – economic rewards – psychic rewards – trust – control
- 23. Services Production Continuum . 1 2 3 4 5 6 Gas 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
- 24. Strategies for Enhancing Customer Participation . Effective Customer Participation Recruit, Educate, and Reward Customers Define Customer Jobs Manage the Customer Mix
- 25. Strategies for Enhancing Customer Participation • Define customers’ jobs – helping himself – helping others – promoting the company • Individual differences: – not everyone wants to participate
- 26. Strategies for Recruiting, Educating, and Rewarding Customers 1. Recruit the right customers 2. Educate and train customers to perform effectively 3. Reward customers for their contribution 4. Avoid negative outcomes of inappropriate customer participation
- 28. Delivering Service Through Intermediaries and Electronic Channels • Services intermediates perform many important functions for service provider. They often co-produce the service Fulfilling service principals promise to customers.
- 29. Service Provider Participants • service principal (originator) – creates the service concept • (like a manufacturer) • service deliverer (intermediary) – entity that interacts with the customer in the execution of the service • (like a distributor/wholesaler)
- 30. Key Issues Involving Intermediaries • conflict over objectives and performance • conflict over costs and rewards • control of service quality • empowerment versus control • channel ambiguity
- 32. Services Intermediaries • Franchisees:- services outlets licensed by a principal to deliver a unique service concept it has created or popularized. • Licensing their brand names, business processes or format, unique product and services, or reputations in return for fees and royalties – e.g., Jiffy Lube, H&R Block, McDonald’s • agents and brokers:- are representatives who distribute and sell the services of one or more services suppliers. – e.g., travel agents, independent insurance agents • electronic channels – e.g., ATMs, university video courses, TaxCut software
- 33. • A franchiser typically begins by developing a business concept that is unique in some way.
- 34. Benefits and Challenges for Franchisers of Service . • Leveraged business format for greater expansion and revenues • Consistency in outlets • Knowledge of local markets • Shared financial risk and more working capital • Difficulty in maintaining and motivating franchisees • Highly publicized disputes and conflict • Inconsistent quality • Control of customer relationship by intermediary Benefits Challenges
- 35. Benefits and Challenges for Franchisees of Service . • An established business format • National or regional brand marketing • Minimized risk of starting a business • Encroachment • Disappointing profits and revenues • Lack of perceived control over operations • High fees Benefits Challenges
- 36. Agents and Brokers • An agent is an intermediary who acts on behalf of a service principal and is authorized to make agreements between customers and the principal. • Agents broker do not take title to services but instead deliver the rights to them. • Brokers bring buyers and sellers together while assisting in negotiation.
- 37. Benefits and Challenges in Distributing Services through Agents and Brokers . • Reduced selling and distribution costs • Intermediary’s possession of special skills and knowledge • Wide representation • Knowledge of local markets • Customer choice • Loss of control over pricing and other aspects of marketing • Representation of multiple service principals Benefits Challenges
- 38. Electronic channels • Electronic channels are the only services distributors that do not require direct human interaction • Information, education or entertainment
- 39. Benefits and Challenges in Electronic Distribution of Services . • Consistent delivery for standardized services • Low cost • Customer convenience • Wide distribution • Customer choice and ability to customize • Quick customer feedback • Customers are active, not passive • Lack of control of electronic environment • Price competition • Inability to customize with highly standardized services • Lack of consistency with customer involvement • Requires changes in consumer behavior • Security concerns • Competition from widening geographies Benefits Challenges
- 40. Strategies for Effective Service Delivery through Intermediaries . • Measurement • Review Control Strategies • Alignment of goals • Consultation and cooperation • Help the intermediary develop customer- oriented service processes • Provide needed support systems • Develop intermediaries to deliver service quality • Change to a cooperative management structure Empowerment Strategies Partnering Strategies