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Advanced Services Marketing   (MARK 5065) Study Period 3, 2008
Lecture 6 <ul><li>Customer Defined Service Standards </li></ul><ul><li>Physical Evidence and the Servicescape </li></ul>
Objectives <ul><li>the difference between company-defined and customer-defined service standards. </li></ul><ul><li>the cr...
Company-defined and customer-defined service standards <ul><li>Company ‑ defined standards are establish to reach internal...
Types of Customer-Defined Service Standards <ul><li>Hard Customer-Defined Standards </li></ul><ul><ul><li>things that can ...
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 <ul><li>Form a group of four people </li></ul><ul><li>Use your sc...
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 Tan...
Figure 10.4 -  Process for Setting Customer-Defined Standards 2. Translate customer expectations into behaviors/actions 5....
Objectives for Chapter 11: Physical Evidence and the Servicescape <ul><li>Explain the profound impact of physical evidence...
Physical evidence <ul><li>Physical evidence is the environment in which the service is delivered and where the firm and th...
Table 11.1 Elements of Physical Evidence
Table 11.2  Examples of Physical Evidence from the Customer’s Point of View
Table 11.3  Typology of Service Organizations Based on Variations in Form and Use of the Servicescape
Roles of the Servicescape <ul><li>Package </li></ul><ul><ul><li>conveys expectations  </li></ul></ul><ul><ul><li>influence...
Figure 11.2 A Framework for Understanding Environment-User Relationships in Service Organizations Source : M. J. Bitner, “...
Guidelines for Physical Evidence Strategy <ul><li>Recognize the strategic impact of physical evidence. </li></ul><ul><li>B...
 
<ul><li>Questions??? </li></ul>
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Customer Defined Service Standards Physical Evidence and the Servicescape

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Customer Defined Service Standards
Physical Evidence and the Servicescape

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Transcript of "Customer Defined Service Standards Physical Evidence and the Servicescape"

  1. 1. Advanced Services Marketing (MARK 5065) Study Period 3, 2008
  2. 2. Lecture 6 <ul><li>Customer Defined Service Standards </li></ul><ul><li>Physical Evidence and the Servicescape </li></ul>
  3. 3. Objectives <ul><li>the difference between company-defined and customer-defined service standards. </li></ul><ul><li>the critical role of the service encounter sequence in developing customer-defined standards </li></ul><ul><li>the profound impact of physical evidence, particularly the servicescape, on customer perceptions and experiences. </li></ul><ul><li>the differences in types of servicescapes, the roles played by the servicescape, and the implications for strategy. </li></ul>
  4. 4. Company-defined and customer-defined service standards <ul><li>Company ‑ defined standards are establish to reach internal company goals for promoting productivity, efficiency, cost and technical quality. </li></ul><ul><li>Customer ‑ defined service standards are visible to and measured by customers and are not sufficient to bring effectiveness to an organization. </li></ul>
  5. 5. Types of Customer-Defined Service Standards <ul><li>Hard Customer-Defined Standards </li></ul><ul><ul><li>things that can be counted, timed, or observed through audits </li></ul></ul><ul><li>Soft Customer-Defined Standards </li></ul><ul><ul><li>Opinion based measures that cannot be directly observed </li></ul></ul><ul><ul><li>As Einstein said, “ Not everything that counts can be counted, and not everything that can be counted, counts.” </li></ul></ul>
  6. 6. Exhibit 10.1 Examples of Hard Customer-Defined Standards
  7. 7. Exhibit 10.2 Examples of Soft Customer-Defined Standards
  8. 8. Exercise for Creating Customer-Defined Service Standards <ul><li>Form a group of four people </li></ul><ul><li>Use your school’s undergraduate or graduate program, or an approved alternative </li></ul><ul><li>Complete the customer-driven service standards importance chart </li></ul><ul><li>Establish standards for the most important and lowest-performed behaviors and actions </li></ul><ul><li>Be prepared to present your findings to the class </li></ul>
  9. 9. Customer-Driven Standards and Measurements Exercise Service Encounter Customer Requirements Measurements Service Quality
  10. 10. 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
  11. 11. 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
  12. 12. Objectives for Chapter 11: Physical Evidence and the Servicescape <ul><li>Explain the profound impact of physical evidence, particularly the servicescape, on customer perceptions and experiences. </li></ul><ul><li>Illustrate differences in types of servicescapes, the roles played by the servicescape, and the implications for strategy. </li></ul><ul><li>Explain why the servicescape affects customer and employee behavior, using a framework based in marketing, organizational behavior, and environmental psychology. </li></ul><ul><li>Present elements of an effective physical evidence strategy. </li></ul>
  13. 13. Physical evidence <ul><li>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. </li></ul><ul><li>Physical evidence includes the servicescape, a term used to describe the physical facility where the service is produced and/or delivered. </li></ul>
  14. 14. Table 11.1 Elements of Physical Evidence
  15. 15. Table 11.2 Examples of Physical Evidence from the Customer’s Point of View
  16. 16. Table 11.3 Typology of Service Organizations Based on Variations in Form and Use of the Servicescape
  17. 17. Roles of the Servicescape <ul><li>Package </li></ul><ul><ul><li>conveys expectations </li></ul></ul><ul><ul><li>influences perceptions </li></ul></ul><ul><li>Facilitator </li></ul><ul><ul><li>facilitates the flow of the service delivery process </li></ul></ul><ul><ul><ul><li>provides information (how am I to act?) </li></ul></ul></ul><ul><ul><ul><li>facilitates the ordering process (how does this work?) </li></ul></ul></ul><ul><ul><ul><li>facilitates service delivery </li></ul></ul></ul><ul><li>Socializer </li></ul><ul><ul><li>facilitates interaction between: </li></ul></ul><ul><ul><ul><li>customers and employees </li></ul></ul></ul><ul><ul><ul><li>customers and fellow customers </li></ul></ul></ul><ul><li>Differentiator </li></ul><ul><ul><li>sets provider apart from competition in the mind of the consumer </li></ul></ul>
  18. 18. 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.
  19. 19. Guidelines for Physical Evidence Strategy <ul><li>Recognize the strategic impact of physical evidence. </li></ul><ul><li>Blueprint the physical evidence of service. </li></ul><ul><li>Clarify strategic roles of the servicescape. </li></ul><ul><li>Assess and identify physical evidence opportunities. </li></ul><ul><li>Be prepared to update and modernize the evidence. </li></ul><ul><li>Work cross-functionally. </li></ul>
  20. 21. <ul><li>Questions??? </li></ul>
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