1 SERVICES MARKETING CHAPTER 13 CUSTOMERS’ ROLES IN SERVICE DELIVERY Presented By : Umut Korkuter & Nazim Belge Chapter’s Objectives 2 To illustrate the importance of customers in successful service delivery and cocreation of service experiences. To discuss the variety of roles that service customers play: productive resources for the organization; contributors to quality and satisfaction; competitors. To explain the strategies for involving service customers effectively to increase both quality and productivity. THE IMPORTANCE OF CUSTOMERS IN SERVICE DELIVERY 3 Customer Receiving The Service Fellow Customers Table 13.1 Levels of Customer Participation across Different Services 4 CUSTOMERS’ ROLES 5 Productive Resources Contributors to Service Quality and Satisfaction Competitors Customers As Productive Resources 6 Customer inputs can affect the organization’s productivity through both the quality of what they contribute and the resulting quality and quantity of output generated. Customers As Contributors To Service Quality and Satisfaction 7 Effectivecustomer participation can increase the likelihood that needs are met and that the benefits the customer seeks are actually attained. Customers As Competitors 8 Internal Exchange vs. External Exchange Expertise Capacity Resource Capacity Time Capacity Economic Rewards Psychic Rewards Trust Control SELF-SERVICE TECHNOLOGIES – THE ULTIMATE IN CUSTOMER PARTICIPATION 9 Services produced entirely by the customer without any direct involvement or interaction with the firm’s employees. ATMs Pay at the pump Internet banking Internet shopping Distance education Figure 13.2 Services Production Continuum 10 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 Key Questions While Moving Into SST 11 What is our strategy? What do we hope to achieve through the SST(cost saving, revenue growth, competitive advantage)? What are the benefits to customers of producing the service on their own through the SST? Do they know and understand these benefits? How can customers be motivated to try the SST? Do they understand their role? Do they have the capability to perform this role? How “technology ready” are our customers? Are some segments of customers more ready to use the technology than others? How can customers be involved in the design of the service technology system and processes so that they will be more likely to adopt and use the SST? What forms of customer education will be needed to encourage adoption? Will other incentives be needed? How will inevitable SST failures be handled to regain customer confidence? STRATEGIES FOR ENHANCING CUSTOMER PARTICIPATION 12 Figure 13.3 Strategies for Enhancing Customer Participation Define Customers’ Jobs 13 Helping Oneself Helping Others Promoting The Company Individual Differences: Not Everyone Wants To Participate Recruit, Educate, and Reward Customers 14 Recruit the Right Customers Educate and Train Customers to Perform Effectively Reward Customers for Their Contributions Avoid Negative Outcomes of Inappropriate Customer Participation Manage The Customer Mix 15 Table 13.2 Characteristics of Service that Increase the Importance of Compatible Segments Conclusion 16 Through understanding the importance of customers in service delivery and identifying the roles played by the customer in a particular context, managers can develop strategies to enhance customer participation. By implementing these strategies, organization should see a reduction in gap 3 due to effective, efficient customer contributions to service delivery.
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