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Service Delivery
Lecture
# 11
OUTLINE
Importance of Customers in Service
Delivery.
Customers Role.
Self-Service Technologies The
Ultimate in Customer Participation.
Strategies for Enhancing Customer
Participation.
Importance of Customers in
Service Delivery
Importance of Customers in
Service Delivery
Importance of Customers in
Service Delivery
Importance of Customers in
Service Delivery
Importance of Customers in
Service Delivery
Customers Role
The study found that customers increased the
satisfaction of others by having friendly
conversations while waiting in line, by taking
photos, by assisting with children, and by
returning dropped or lost items.
Customers Roles: This section examines in
detail three major roles played by customers in
service delivery: customers are productive
resource, customers as contributors to quality
and satisfaction; and customers as competitors.
Customers Role
Customers as Productive Resources:
Service customers have been referred to as
partial employees of the organization. Some
management experts have suggested if
customers contribute effort and time to the
service production process, they should be
considered as a part of organization.
Customers inputs can effect the organizations
productivity. Customer participation in service
production raise a number of issues for
organizations.
Customers Role
Because customers can influence both quality
and quantity of production, some experts
believe the delivery system should be isolated
as much as possible from customer inputs in
order to reduce the uncertainty they can bring
into the production process. This view sees
customers as the major source of uncertainty in
the timing of their demand and uncontrollability
of their attitudes and action. The logical
conclusion is that any service activities that do
not require customer contact should be
Customers Role
performed away from customers. The less
direct contact there is between the customer
and the service production system, the greater
possibility for the system to operate at peak
efficiency.
Other experts believe that services can be
delivered most efficiently if customers are truly
viewed as partial employees and their coproduction roles are designed to maximize their
contributions to the service creation process.
The logic behind this view is
Customers Role
organizational productivity can be increased if
customers learn to perform service related
activities. For example, when self-service
gasoline stations first came into being,
customers were asked to pump their own gas.
With customers performing this task, fewer
employees were needed and overall
productivity of gas stations improved. Similarly,
the introduction of many automated airline
services such as baggage check-in and self
ticketing are intended to speed up the process
Customers Role
for customers while freeing employees for other
tasks. Organizational productivity is increased
by using customers as resource to perform
tasks previously completed by employees.
Although organizations obtain obvious
productivity benefits by involving customers as
co-producers, customers do not always like to
accept their new roles, especially when they
perceive the purpose to the bottom line cost
savings for the company.
Customers Role
If customers see no clear benefit to being
involved in coproduction (e.g., lower prices,
quicker access, etc.), then they are likely to
dislike and resist their coproduction roles.
Customers as Contributors to Service Quality.
Research suggests that customers who believe
they have done their part to be effective in
service interactions are more satisfied with the
service. Interestingly, all those customers who
participate in service delivery frequently blame
themselves (at least partially) when things go wrong.
Customers Role
Customers as Competitors: If self service
customers can be viewed as resources of the
firm, or as partial employees, they could in
some cases partially perform the service or
perform the entire service for themselves and
not need the provider at all. Thus customers in
a sense are competitors of the companies that
supply the services. Weather to produce a
service for themselves (internal exchange) for
example, child care, home maintenance, car
repair or have someone else provide the
Customers Role
for them (external exchange).
Similar internal versus external exchange
decisions are made by organizations. Firms
frequently choose to outsource service activities
such as payroll, data processing, research,
accounting and maintenance. They find that it is
advantageous to focus on their core business
and leave these support services to other with
greater expertise. Alternately, a firm may decide
stop purchasing services externally and bring
the service production process in-house.
Customers Role
Weather household or a firm chooses to
produce a particular service for itself or contract
externally for the service depends on various
following factors.
Expertise capacity: The likelihood of producing
the service internally is increased if the
household or firm possesses the specific skills
and knowledge, time and available resources
needed to produce it.
Economic rewards: The economic advantages
or disadvantages of a particular exchange
Customers Role
decision will be influential in choosing between
internal and external options. The actual
monetary costs of the two options will influence
the decision.
Trust: In this context trust means the degree of
confidence the household or firm has in various
exchange options. The decision will depend to
some extent on the level of self-trust in
producing the service versus trust of others.
Self-Service Technologies-The
Ultimate in Customer
Participation
Self-Service Technologies: Self service
technologies (SSTs) are services produced
entirely by the customers without any direct
involvement or interaction with firms
employees.
A creation of New SSts: Advances in
technologies, particularly the Internet, have
allowed the introduction of a wide range of self
service technologies.
Self-Service Technologies-The
Ultimate in Customer
Participation
These technologies have grow up as
companies see the potential cost savings, and
efficiencies that can be achieved, like potential
sales growth, increased customer satisfaction,
and competitive advantage. The partial list of
some of the self-service technologies available
to consumers includes.
ATMs, Pay at the pump, Airline check-in, Various vending
machines, Self-scanning at retail stores, Internet banking,
Package tracking, Internet shopping, Internet information
search, Hotel check-in and checkout etc.
Self-Service Technologies-The
Ultimate in Customer
Participation
Figure 13.2.
Services production range
Joint
production
Customer
production
Firm
production
Self-Service Technologies-The
Ultimate in Customer
Participation
The rapid creation of new self service