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things that can be counted, timed, or observed through audits
Soft Customer-Defined Standards
Opinion based measures that cannot be directly observed
As Einstein said, “ Not everything that counts can be counted, and not everything that can be counted, counts.”
Exhibit 10.1 Examples of Hard Customer-Defined Standards
Exhibit 10.2 Examples of Soft Customer-Defined Standards
Exercise for Creating Customer-Defined Service Standards
Form a group of four people
Use your school’s undergraduate or graduate program, or an approved alternative
Complete the customer-driven service standards importance chart
Establish standards for the most important and lowest-performed behaviors and actions
Be prepared to present your findings to the class
Customer-Driven Standards and Measurements Exercise Service Encounter Customer Requirements Measurements Service Quality
Figure 10.3 What Customers Expect: Getting to Actionable Steps Satisfaction Relationship Reliability Empathy Assurance Tangibles Responsiveness Price Delivers on time Returns calls quickly Knows my industry Delivers by Wednesday Returns calls in two hours Knows strengths of my competitors Requirements: Abstract Concrete Dig deeper Dig deeper Dig deeper Diagnosticity: Low High General concepts Dimensions Behaviors and actions Attributes Value Solution Provider
Figure 10.4 - Process for Setting Customer-Defined Standards 2. Translate customer expectations into behaviors/actions 5. Develop feedback mechanisms Measure by audits or operating data Hard Soft Measure by transaction- based surveys 3. Select behaviors/actions for standards 6. Establish measures and target levels 7. Track measures against standards 8. Provide feedback about performance to employees 9. Update target levels and measures 1. Identify existing or desired service encounter sequence 4. Set hard or soft standards
Objectives for Chapter 11: Physical Evidence and the Servicescape
Explain the profound impact of physical evidence, particularly the servicescape, on customer perceptions and experiences.
Illustrate differences in types of servicescapes, the roles played by the servicescape, and the implications for strategy.
Explain why the servicescape affects customer and employee behavior, using a framework based in marketing, organizational behavior, and environmental psychology.
Present elements of an effective physical evidence strategy.
Physical evidence is the environment in which the service is delivered and where the firm and the customer interact and any tangible commodities that facilitate performance or communication of the service.
Physical evidence includes the servicescape, a term used to describe the physical facility where the service is produced and/or delivered.
facilitates the flow of the service delivery process
provides information (how am I to act?)
facilitates the ordering process (how does this work?)
facilitates service delivery
facilitates interaction between:
customers and employees
customers and fellow customers
sets provider apart from competition in the mind of the consumer
Figure 11.2 A Framework for Understanding Environment-User Relationships in Service Organizations Source : M. J. Bitner, “Servicescapes: The Impact of Physical Surroundings on Customers and Employees,” Journal of Marketing 56 (April 1992), 57–71.