special topics chapter 12

how do service customers create and cocreate their own value-in-use ?

through active involvement and customization of the service

value-in-use

value that customers get as they used products and services for various purposes in their own lives, often independent of the provider

service customers use the company as …

a platform for creating value, or use the company offerings within an ecosystem

low customer participaton

presence required during service production; airline travel, motel , fast food

moderate customer participation

customer inputs required for service creation; haircut, physical exam, full service resturant

high customer participation

customer cocreates the service ; marriage counseling, personal training

how can other customers detract from satisfaction?

disruptive behaviors, overly demanding behaviors, excessive crowding, incompatible needs

how can other customers enhance satisfaction ?

mere presence, socialization or friendships, roles: assitants, teachers, mentors

customer roles in service delivery

• productive resources

• contributors to quality, satisfaction, and value

• competitors

why are customers thought of as partial employees ?

they contribute effort, time, or other resources to the production process

customers contributing to their own satisfaction

performing their role effectively and working with the service provider

customers contributing to the quality of the service they receive

asking questions, taking responsibility for their own satisfaction, complaining when there is service failure

self-service technologies

enable customers to produce services without any direct involvement or interaction with firms employees

examples of self-service technologies

atms, pay at the pump, hotel check ins, health tests, online banking

reasons for self-service technologies

cost saving and access to new markets

benefits of ssts

convenience, accesibility, ease of use

personal motivation

whats in it for me?

customers resist ssts when

• sst is poorly designed

• no alternative or forced

strategies for enhancing customer participation

• define customers roles

• recruit, educate, and reward customers

• manage the customer mix

• recruit right customers

• reward customers

managing the customer mix

a process of first attracting homogeneous consumers to the service environment, then actively managing both the physical environment and customer-to-customer encounters in such a way as to enhance satisfying encounters and minimize dissatisfying encounters

customers are in close physical proximity to each other

customers will more often notice each other and be influenced by each others behaviors when they are in close physical proximity

verbal interaction takes place among customers

conversation (or lack thereof) can be a component of both satisfying and dissatisfying encounters with fellow patrons

customers are engaged in numerous and varied activities

when a service facility supports varied activites all going on at the same time, the activities themselves may not be compatible

the service environment attracts a heterogeneous customer mix

many service environments, particularly those open to the public, will attract a variety of customer segments

the core service is compatibility

the core service is to arrange a nurture compatible relationships betwen customers

customers must occasionaly wait for the service

waiting in line for service can be monotonous or anxiety producing, the boredom or stress can be magnified or lessened by other customers, depending on their compatibility

customers are expected to share time, space, or service utensils with each other

the need to share space, itme, and other service factors is common in many services but may become a problem if segments are not comfortable with sharing with each other or if the need to share is intensified because of capacity constraints