Lecture 7 : Crafting the Service En

Lecture 7 : Crafting the Service Environment

1. The Purpose of Service Environments: The service env. influences buyer behavior in 3 ways

* Message-creating Medium: symbolic cues to communicate the distinctive nature and quality of the service experience.

* Attention-creating Medium: to make the servicescape stand out from other competing establishments, and to attract customers from target segments.

* Effect-creating Medium: colors, textures, sounds, scents and spatial design to enhance the desired service experience, and/or to heighten an appetite for certain goods, services or experiences

* Helps the firm to create a distinctive image & positioning that is unique.

2. The Russell Model of Affect
* Emotional responses to environments can be described along two main dimensions, pleasure and arousal.

* Pleasure is subjective depending on how much the individual likes or dislikes the environment

* Arousal quality of an environment is dependent on its “information load”, i.e., its degree of

* Novelty (unexpected, surprising, new, familiar) and

* Complexity (number of elements, extent of motion or change)

3. Impact of Color

* Colors have a strong impact on people’s feelings

* Colors can be defined into three dimensions:

* Hue is the pigment of the color

* Value is the degree of lightness or darkness of the color

* Chroma refers to hue-intensity, saturation or brilliance

* Research has shown that in service environments, despite differing color preferences, people are generally drawn to warm color environments

* Warm colors encourage fast decision making and are good for low-involvement decisions or impulse buys

* Cool colors are preferred for high-involvement decisions

Lecture 8 : Managing People for Service Advantage

4. Importance of Service Employees

Service Personnel: Source of Customer Loyalty and Competitive Advantage

* Frontline is an important driver of customer loyalty

* Anticipating customer needs

* Customizing service delivery

* Building personalized relationships

* Customer’s perspective: Encounter with service staff is most important aspect of a service

* Firm’s perspective: Frontline is an important source of differentiation and competitive advantage. It is…

* A core part of the product

* the service firm

* The brand

5. Human Resources Management— How to Get It Right?

® How to Manage People for Service Advantage?

* Staff performance involves both ability and motivation

* How can we get able service employees who are motivated to productively deliver service excellence?

** Hire the right people

** Enable these people

** Motivate and energize your people

1. Hire the Right People

“The old saying ‘People are your most important asset’ is wrong. The RIGHT people are your most important asset.” ...Jim Collins

(1) Be the Preferred Employer

* Create a large pool: “Compete for Talent Market Share”

(2) How to Identify Best Candidates

* Observe behaviour

* Conduct personality tests

(3) Identifying Best Candidates

* Employ multiple, structured interviews

* Give applicants a realistic preview of the job

2. Train Service Employees ® Service employees need to learn:

* Organizational culture, purpose, and strategy

* Promote core values, get emotional commitment to strategy

* Get managers to teach “why,” “what,” and “how” of job

* Interpersonal and technical skills

* Both are necessary but neither alone is sufficient for optimal job performance

* Product/service knowledge

* Staff’s product knowledge is a key aspect of service quality

* Staff must explain product features and position products correctly

3. Motivate and Energize the Frontline

Use full range of available rewards effectively, including:

* Job content (Job Design)

* People are motivated and satisfied knowing they are doing a good job

* Feedback and recognition

* People derive a sense of identity and belonging to an organization from feedback and recognition

* Goal accomplishment

* Specific, difficult but attainable and accepted goals are strong motivators

Lecture 9 : Managing Relationship and Building Loyalty

6. Identifying and Selecting Target Segments User characteristics

® Demographics ® psychographics ® geographic location ® benefits sought

User behavior

® when, where, how services used ® quantity/value of purchases ® frequency of use ® profitability of relationship ® sensitivity to marketing variables

7.

Lecture 10 : Complaint Handling and Service Recovery

8. Customer Response Categories to Service Failures

Understanding Customer Responses to Service Failure

* Why do customers complain?

* Obtain compensation

* Release their anger

* Help to improve the service

* Because of concern for others

* What proportion of unhappy customers complain?

* Why don’t unhappy customers complain?

* Who is most likely to complain?

* Where do customers complain?

* What do customers expect once they have made a complaint?

* Procedural, interactional and outcome justice

9. Dealing with Complaining Customers and Recovering from Service Failure

* Take complaints professionally and not personally

* Be prepared to deal with angry customer who may behave in an insulting way to service personnel who may not be at fault

* Take the perspective that customer complaints allow firm a chance to

* Correct problems,

* Restore relationships

* Improve future satisfaction for all

10. Strategies to Reduce Customer Complaint Barriers

Complaint Barriers for Dissatisfied Customers Strategies to Reduce These Barriers

Inconvenience

* Hard to find the right complaint

procedure

* Effort involved in complaining

Make Feedback Easy and Convenient * Put customer service hotline numbers, e-mail and postal addresses on all customer communications materials

Doubtful Pay off

* Uncertain if action will be taken by the

firm to address the problem

Assure that Feedback is Taken Seriously * Have service recovery procedures in place, communicate this to customers * Feature service improvements based on customer feedback

Unpleasantness

* Fear of being treated rudely

* Hassle, embarrassment

Make Feedback Experience Positive * Thank customers for their feedback * Train frontline employees not to hassle * Allow anonymous feedback

11. Service Guarantees

The Power of Service Guarantees

* Force firms to focus on what customers want

* Set clear standards

* Require systems to get & act on customer feedback

* Force organizations to understand why they fail and to overcome potential fail points

* Reduce risks of purchase and build loyalty

12. Jay customers

(1) The Cheat : thinks of various way to cheat the firm

(2) Thief : No intention of paying--sets out to steal or pay less

* Services lend themselves to clever schemes to avoid payment e.g., bypassing electricity meters, circumventing TV cables, riding free on public transportation

(3) The Rule breaker

* Many services need to establish rules to guide customers safely through the service encounter

* Government agencies may impose rules for health and safety reasons

* Some rules protect other customers from dangerous behavior

* e.g. ski patrollers issue warnings to reckless skiers by attaching orange stickers on their lift tickets

* Ensure company rules are necessary, not should not be too much or inflexible

(4 )The Belligerent

* Shouts loudly, maybe mouthing insults, threats and curses

* Service personnel are often abused even when they are not to be blamed

* Confrontations between customers and service employees can easily escalate

* Firms should ensure employees have skills to deal with difficult situations

(5) Family Feuders : People who get into arguments with other customers – often members of their own family

(6) Vandals :

* Service vandalism includes pouring soft drinks into bank cash machines; slashing bus seats, breaking hotel furniture

* Bored and drunk young people are a common source of vandalism

* Unhappy customers who feel mistreated by service providers take revenge

* Prevention is the best cure

(7) The Deadbeat

* Customers who fail to pay (as distinct from “thieves” who never intended to pay in the first place)

* Preventive action is better than cure--e.g., insisting on prepayment; asking for credit card number when order is taken

* Customers may have good reasons for not paying

* If the client's problems are only temporary ones, consider long- term value of maintaining the relationship

Lecture 11 : Setting Prices and Implementing Revenue Management

13. Three Main Approaches to Pricing

1. Cost-Based Pricing

* Set prices relative to financial costs (problem: defining costs)

* Activity-Based Costing

* Pricing implications of cost analysis

* When looking at prices, customers care about value to themselves, not what service production costs the firm

2. Value-Based Pricing

* Relate price to value perceived by customer

3. Competition-Based Pricing

* Monitor competitors’ pricing strategy (especially if service lacks differentiation)

* Who is the price leader - does one firm set the pace?

Value-Based Pricing: Approaches to Reducing Non-monetary and Related-monetary Costs

* Reduce time costs of service at each stage

* Minimize unwanted psychological costs of service

* e.g. eliminate/redesign unpleasant/ inconvenient procedures

* Eliminate unwanted physical costs of service

* Decrease unpleasant sensory costs of service

* Unpleasant sights, sounds, smells, feel, tastes

* Suggest ways for customers to reduce other monetary costs

Lecture 12 : Corporate Social Responsibility

14. Socially Responsible Marketing

Reasons for companies to practice a higher level of CSR;

* Rising customer expectations

* Evolving employee goals

* Tighter government legislation and pressure

* Developing investor interests

15. What CSR is NOT? It is not about ;

1. Giving cheques

2. Making employees "volunteer'

3. Planting a few trees

4. PR photo opportunities

5. Feeling good and being a "caring comp

ผลลัพธ์ (อังกฤษ) 2:

Lecture 7: Crafting the Service Environment 1. The Purpose of Service Environments: The service env. influences Buyer behavior in 3 Ways * Message-creating Medium: symbolic cues to Communicate the distinctive nature and quality of the Service Experience. * Attention-creating Medium: to Make the Servicescape stand out from Other competing establishments, and to Attract customers from Target segments. . * Effect-creating Medium: Colors, Textures, sounds, Scents and Spatial Design to Enhance the desired Service Experience, and / or to heighten an Appetite for certain Goods, Services or experiences * Helps the Firm to create a distinctive Image & Positioning that. Unique is. 2. The Russell Model of Affect * Emotional Responses to environments Can be described along Two Main Dimensions, pleasure and arousal. * Pleasure is subjective depending on How much the individual likes or Dislikes the Environment * Arousal quality of an Environment is dependent on its "information Load. ", IE, its Degree of * Novelty (Unexpected, Surprising, New, Familiar) and * Complexity (Number of Elements, extent of Motion or Change) 3. Impact of Color * Colors have a strong Impact on people's Feelings * Colors Can be defined Into Three Dimensions: * Hue is the pigment of the Color * Value is the Degree of lightness or Darkness of the Color * Chroma refers to Hue-Intensity, saturation. or Brilliance * Research has shown that in environments Service, Despite differing Color Preferences, people are generally drawn to environments Color Warm Warm Colors * Making encourage fast decision and are good for low-involvement decisions or Impulse Buys * Cool Colors are for High-Preferred. decisions involvement Lecture 8: Managing People for Service Advantage 4. Importance of Service Employees Service Personnel: Source of Customer Loyalty and Competitive Advantage * Frontline is an important Driver of customer Loyalty * Anticipating customer Needs * Customizing Service Delivery * Building Personalized relationships * Customer's Perspective: Encounter with Service staff is Most important Aspect of a Service. * Firm's perspective: Frontline is an important source of differentiation and competitive advantage. It is ... * A Part of the core product * the Service Firm * The Brand 5. Human Resources Management- How to Get It Right? ® How to Manage People for Service Advantage? * Staff Performance Involves both ability and Motivation * How Can we Get Able Service employees are motivated to productively deliver Service Excellence Who? ** Hire the Right people. Enable these people ** ** Motivate and energize your people 1. Hire the Right People "The Old saying 'People are your Most important Asset' is Wrong. Most important are your people the RIGHT Asset. "... Jim Collins (1) Be the Preferred Employer * Create a Large Pool: "Talent Compete for Market Share" (2) How to Identify Best Candidates * Observe behavior * Conduct personality tests. (3) Identifying Best Candidates * Employ multiple, structured Interviews * Give Preview of the applicants a realistic job 2. Train Service Employees ® Service employees Need to Learn: * Organizational Culture, purpose, and Strategy * Promote core values, Get emotional commitment to Strategy * Get Managers to teach "why," "what," and "How" of job * Interpersonal and. Technical Skills * Both are necessary but neither alone is sufficient for Optimal Performance job * Product / Service Knowledge * Knowledge Staff's product is a Key Aspect of Service quality * Staff must Explain product features and correctly position Products 3. Motivate and Energize the Frontline Use full Range of available rewards effectively, including: * Job content (Job Design) * People are motivated and satisfied knowing they are doing a good job * Feedback and Recognition * People DERIVE a Sense of Identity and belonging to an. Feedback from Organization and Recognition * Goal accomplishment * Specific, difficult but attainable goals are strong motivators and accepted Lecture 9: Managing Relationship and Loyalty Building 6. Identifying and Selecting Target User Segments characteristics Demographics ® ® ® psychographics Geographic Location ® Benefits sought User behavior ® when, where, How Services ® used Quantity / frequency of use Value of purchases ® ® ® profitability of Relationship Marketing sensitivity to variables 7. Lecture 10. : Complaint Handling and Service Recovery 8. Response to Customer Service Categories Failures Understanding Customer Responses to Service Failure * Why do customers complain? * Obtain Compensation their Anger Release * * Help to improve the Service * Because of Concern for others * What proportion of Unhappy customers complain? * Why do not. Unhappy customers complain? * Who is Most likely to complain? * Where do customers complain? * What do customers expect once they have Made a Complaint? * Procedural, interactional and outcome Justice 9. Dealing with complaining Customers and Recovering from Service Failure * Take complaints professionally and not Personally * Be prepared to Deal with Angry customer Who May behave in an insulting Way to Service Personnel Who May not be at Fault * Take the Perspective that customer complaints Allow Firm a. Chance to Correct Problems *, * Restore relationships * Improve Future satisfaction for all 10. Strategies to Reduce Customer Complaint Barriers Complaint Barriers for Dissatisfied Customers Strategies to Reduce These Barriers inconvenience * Hard to Find the Right Complaint procedure * Effort involved in complaining Make Feedback Easy and Convenient * Put customer Service Hotline Numbers, E-mail and Postal addresses on all. customer Communications Materials Doubtful pay off * Uncertain if Action Will be taken by the Firm to address the Problem assure that Feedback is Taken Seriously * Have Service Recovery procedures in Place, Communicate this to customers * Feature Service Improvements based on customer Feedback Unpleasantness * Fear of. Rudely being treated * Hassle, Embarrassment Make Positive Feedback * Experience Thank customers for their Frontline Feedback * Train employees not to Hassle * Allow anonymous Feedback 11. Service Guarantees The Power of Service Guarantees * Force firms to Focus on what customers Want * Set Clear Standards * Require Systems to Get & Act on customer Feedback * Force organizations to Understand why they Fail and to overcome potential Fail points * Reduce risks of Purchase and. Build Loyalty 12. Jay customers (1) The Cheat: Various Way to cheat thinks of the Firm (2) Thief: No intention of Paying - sets out to steal or pay less * Services Lend themselves to Clever Payment Schemes to Avoid eg, bypassing Electricity meters,. circumventing TV cables, Riding free on Public Transportation (3) The Rule Breaker * Many Services Need to establish Rules to Guide customers safely Through the Service encounter * Government Agencies May Impose Rules for Health and safety reasons * Some Rules Protect Other customers from Dangerous behavior. * eg Ski patrollers Issue warnings to reckless skiers by attaching Orange stickers on their lift tickets * Ensure Company Rules are necessary, not should not be Too much or inflexible (4) The Belligerent * Shouts Loudly, maybe mouthing insults, threats and curses * Service. Personnel are often abused even when they are not to be blamed * confrontations between customers and Service employees Can easily escalate * Firms should ensure employees have Skills to Deal with difficult Situations (5) Family Feuders: People Who Get Into arguments with Other customers - often. Members of their own Family (6) Vandals: * Soft Drinks Service vandalism includes pouring Into Cash Machines Bank; slashing Bus seats, Breaking Hotel Furniture * Bored and Drunk Young people are a common Source of vandalism * Unhappy customers Who Feel mistreated by Service Providers take revenge * Prevention is the Best Cure (7) The Deadbeat * Customers Who Fail to pay (as Distinct. from "thieves" Who Never intended to pay in the First Place) * Preventive Action is better than Cure - eg, insisting on Prepayment; Credit card Order Number when asking for is taken * May have good reasons for not Paying Customers * If the Client's Problems are only temporary Ones, consider Long term Value of maintaining the Relationship Lecture 11: Setting Prices and Implementing Revenue Management 13. Three Main Approaches to Pricing 1. Cost-Based Pricing Set prices * Relative to Financial costs (Problem: Defining costs) Activity-Based Costing * * Pricing implications of cost Analysis * When Looking at prices, customers Care About Value to themselves, not what the Firm Service Production costs 2. Value-Based Pricing Price * Relate to Value perceived by customer 3. Competition-Based Pricing * Monitor competitors' Pricing Strategy (especially if Service lacks differentiation) * Who is the Price Leader - does one Firm SET the Pace? Value-Based Pricing: Approaches to Reducing Non-Monetary and Related-Monetary Costs * Reduce time. costs of Service at each Stage * Minimize Unwanted Psychological costs of Service * eg Eliminate / redesign Unpleasant / Inconvenient procedures * Eliminate Unwanted physical costs of Service * Decrease Unpleasant sensory costs of Service * Unpleasant sights, sounds, smells, Feel, tastes * Suggest Ways. Reduce costs to customers for Other Monetary 12 Lecture: Corporate Social Responsibility 14. Socially Responsible Marketing Reasons for companies to a higher level of CSR Practice; * Rising customer Expectations * Evolving employee goals * Tighter Government legislation and pressure * Developing Investor interests 15. What CSR is NOT? It is not About; 1. Giving checks 2. Making employees "volunteer ' 3. Planting Trees a few PR 4. Photo opportunities 5. Feeling good and being a "caring comp.

ผลลัพธ์ (อังกฤษ) 3:

Lecture 7: Crafting the Service Environment

1. The Purpose of Service Environments: The service env. Influences buyer. Behavior in 3 ways

* Message-creating Medium: symbolic cues to communicate the distinctive nature and quality of the service. Experience.

* Attention-creating Medium: to make the servicescape stand out from other, competing establishmentsAnd to attract customers from target segments.

* Effect-creating Medium:,,, colors textures sounds scents and spatial. Design to enhance the desired, service experience and / or to heighten an appetite for, certain goods services or experiences

*. Helps the firm to create a distinctive image & positioning that is unique.

2. The Russell Model of Affect
.* Emotional responses to environments can be described along two main dimensions pleasure and, arousal.

* Pleasure is. Subjective depending on how much the individual likes or dislikes the environment

* Arousal quality of an environment is. Dependent on its "information load", i.e, its degree of

* Novelty (,,, unexpected surprising new familiar) and

* Complexity. (number, of elementsExtent of motion or change)

3. Impact of Color

* Colors have a strong impact on people 's feelings

* Colors can be defined. Into three dimensions:

* Hue is the pigment of the color

* Value is the degree of lightness or darkness of the color

*. Chroma refers to hue-intensity saturation or, brilliance

* Research has shown that in service environments despite differing,, Color, preferencesPeople are generally drawn to warm color environments lowrise ended Warm colors encourage fast decision making and are good for low-involvement EOS Decisions or impulse buys

* Cool colors are preferred for high-involvement decisions

Lecture 8: Managing People for Service EOS Advantage

4. Importance of Service Employees

Service Personnel: Source of Customer Loyalty and Competitive Advantage

.* Frontline is an important driver of customer loyalty

* Anticipating customer needs

* Customizing service delivery

*. Building personalized relationships

* Customer 's perspective: Encounter with service staff is most important aspect of. A service

* Firm 's perspective: Frontline is an important source of differentiation and competitive advantage. It is...

*. A core part of the product

.* the service firm

* The brand

5. Human Resources Management - How to Get It Right?

game systems How to Manage People for Service. Advantage?

* Staff performance involves both ability and motivation

* How can we get able service employees who are motivated. To productively deliver service lowrise ended ended Hire excellence you the right people lowrise ended ended Enable these people lowrise ended ended Motivate and energize EOS Your people

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