module 5

MBA@GIT http://www.mba.git.edu.

© Prof. Prasad Kulkarni, Gogte Institute of Technology, Belgaum. [email protected].



Services Marketing

Module 5Employee role in service designing and customer’s

role in service deliveryAccording to VTU Syllabus, Services Marketing 12

MBA MM314



ObjectivesAfter studying this module you will be able

to1. Define employee boundary and spanning

roles.2. Discuss strategies for closing GAP 33. Explain importance of customer role in

services.4. Analyze service distribution strategies.



Service Employees

They are the serviceThey are the firm in the customer’s eyesThey are marketersImportance is evident in– The Services Marketing Mix (People)– The Service-Profit Chain– The Services Triangle



Service Employees

Who are they?– “boundary spanners”

What are these jobs like?– emotional labor– many sources of potential conflict

• person/role• organization/client• interclient• quality/productivity



Boundary Spanners Interact with Both Internal and External Constituents

Internal Environment

External Environment



Sources of Conflict for Boundary-Spanning Workers

• Person vs. Role

• Organization vs. Client

• Client vs. Client

• Quality vs. Productivity



Human Resource Strategies for Closing GAP 3

Customer-oriented Service Delivery

Hire theRight People

ProvideNeeded Support

Systems

Retain theBest

People

DevelopPeople to

DeliverServiceQuality

Compete for

the Best

People

Hire for Service Competencies

and Service Inclination

Provide Supportive

Technology and Equipment

Trea

t Em

ploy

ees

as

Cust

omer

s

Empow

er Em

ployees

Be the Preferred

Employer

Train for

Technical and

Interactive Skills

Prom

ote

Team

wor

k

Measure

Internal Service

Quality

Develop Service-

oriented Internal

Processes

Mea

sure

and

Rew

ard

Stro

ng

Serv

ice

Prov

ider

s

Include

Employees in the

Company’s

Vision



Service Culture

“A culture where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers, is considered a natural way of life and one of the most important norms by everyone in the organization.”



Importance of Other Customers in Service Delivery

Other customers can detract from satisfaction• disruptive behaviors• excessive crowding• incompatible needs

Other customers can enhance satisfaction• mere presence• socialization/friendships• roles: assistants, teachers, supporters



How Customers Widen Gap 3

Lack of understanding of their rolesNot being willing or able to perform their rolesNo rewards for “good performance”Interfering with other customersIncompatible market segments



Customer Roles in Service Delivery

Productive Resources

Contributors to Quality and Satisfaction

Competitors



Customers as Productive Resources

“partial employees”– contributing effort, time, or other resources to

the production process

customer inputs can affect organization’s productivity

key issue:– should customers’ roles be expanded?

reduced?



Customers as Contributors to Service Quality and Satisfaction

Customers can contribute to– their own satisfaction with the service• by performing their role effectively• by working with the service provider

– the quality of the service they receive• by asking questions• by taking responsibility for their own satisfaction• by complaining when there is a service failure



Customers as Competitors

customers may “compete” with the service provider“internal exchange” vs. “external exchange”internal/external decision often based on:

– expertise– resources– time– economic rewards– psychic rewards– trust– control



Technology Spotlight:Services Production Continuum

1 2 3 4 5 6

Gas Station Illustration1. Customer pumps gas and pays at the pump with automation2. Customer pumps gas and goes inside to pay attendant3. Customer pumps gas and attendant takes payment at the pump4. Attendant pumps gas and customer pays at the pump with automation5. Attendant pumps gas and customer goes inside to pay attendant6. Attendant pumps gas and attendant takes payment at the pump

Customer Production Joint Production Firm Production



Strategies for Enhancing Customer Participation

EffectiveCustomer

ParticipationRecruit, Educate,

and Reward Customers

Define CustomerJobs

Manage theCustomer

Mix



Strategies for Enhancing Customer Participation

1. Define customers’ jobs- helping himself- helping others- promoting the company

2. Individual differences: not everyone wants to participate



Strategies for Recruiting,Educating and Rewarding Customers

1. Recruit the right customers2. Educate and train customers to perform effectively3. Reward customers for their contribution4. Avoid negative outcomes of inappropriate customer participation



McDonald discussion PointsMcDonald’s, a fast food restaurant chain, proudly says that it

serves 50 million people worldwide everyday with high customer experience in terms of quality, service and reasonable pricing. By 2010, McDonald’s, a leader in branded quick service restaurant segment, was operating in 119 countries with 31,0002 restaurants. In India, the fast food giant is running 160 outlets, in a joint venture with Hardcastle Restaurants Pvt. Ltd. (for West and South India) and Connaught Plaza Restaurants Pvt. Ltd. (for North and East India). Since its foray into the country in 1996, the fast food chain has adapted itself well to the Indian market conditions and has become a dominating player3 in the Indian fast food industry



The organised Indian fast food business – which was estimated to be INR 2,000 crore (2006) growing at a rate of 40%4 per annum – is in fact providing a huge opportunity for quick service restaurants like McDonald’s to grow.

Apart from McDonald’s, the fast food sector has so far witnessed players like Yum Brands (restaurant company which includes popular brands like Kentucky Fried Chicken (KFC)5 and Pizza Hut), Dominos Pizza, Pizza Corner and Indian fast food chains like Nirulas, banking on fast food



customers. However, with emphasis on food supply chain, distribution network, customization and localization of menu items, appropriate marketing and pricing strategies, McDonald’s has created a distinct place for itself in the Indian fast food sector. In 2009, the company stood as the ‘Most Preferred Multi Brand Fast Food Company’6 in India and held the 1st position in ‘Business World Most Respected Companies of India’ in the category of food retailing for the third consecutive year. In 2010, with the intention of offering quick delivery to its customers, McDonald’s came up with a web-based delivery system, which was the next level of existing home delivery model of the company. McDonald’s is confident that the new distribution model would increase its sales. However, the success of this model is yet to be seen.

module 5

Business

gogte institute of technology

prasad kulkarni

git http

service employees

good service

service culture

service competencies

service inclination