MKT 530 - UKY

Importance of Employees in Service Experience

Employees shape customer perceptions and experiences through their interactions

Services Marketing Triangle (Three Parties)

Company, Employees, Customers

Services Marketing Triangle (Types of Marketing)

External (company to customers), Internal (company to employees), Interactive (employees to customers)

Internal Service Quality

Refers to how well employees are treated and supported, impacting motivation and performance

Boundary Spanners

Employees who interface with customers and may experience emotional labor and role conflict

Employee Attraction and Retention Strategies

Create a positive work environment, provide growth opportunities, and recognize contributions

Employee Attraction and Retention Strategies (Common hiring mistake)

Focusing solely on technical skills without considering cultural fit

Zappos' Internal Marketing

Strong company culture, employee empowerment, and open communication

Empowerment

Allowing employees to make decisions enhances service delivery but may lead to inconsistencies

Interaction Quality (Three Sub-Dimensions)

Attentiveness, responsiveness, and communication

Cruise Industry Customer Management

Companies may segment and manage customers differently based on profitability and engagement

Characteristics of Services

Intangibility, inseparability, variability, and perishability necessitate active customer involvement

Good vs. Bad Customers

enhance value; disrupt service or harm the brand

Customer Typology (Four Types)

Loyal, price-sensitive, indifferent, and problem customers

Jaycustomers

Customers who disrupt service; types include aggressive, irresponsible, and abusive customers

Recruiting Right Customers

Ensures sustainable profitability and enhances service quality

Reasons for Lack of Complaints

Customers may feel it’s not worth their time, fear confrontation, or believe complaints won’t lead to changes

Customer Lifetime Value (CLV)

A metric for forecasting the total value a customer brings over their lifetime, guiding marketing and service decisions

Types of Data (Primary)

collected firsthand — specific but can be costly

Types of Data (Secondary)

collected by others

Importance of Research

Helps understand customer needs, improve service, and maintain competitiveness

Methods of Primary Data Collection

Surveys, interviews, observations, focus groups

Benefits of Surveys

Cost-effective, can reach a large audience, easy to analyze

Representativeness

Ensured through random sampling and stratification

Considerations for Surveys

Question clarity, length, and format to avoid bias

Question Creation Rules

Keep questions clear and concise; avoid leading questions

Doritos Case Insight

Specific flavor preferences or snacking habits identified through consumer research

A/B Testing

Comparing two versions to determine which performs better in achieving goals

ZipCar Challenges

Competition, managing customer behavior, and maintaining service quality. Solutions: Streamlined user experience, better marketing

De Beers Challenges

Changing consumer perceptions of diamonds; ‘Real is Rare’ campaign aims to restore value and exclusivity

Generalizable Lessons

Understand customer behavior, adapt to market changes, and invest in brand equity

Outcome Quality (Three Sub-Dimensions)

Consistency, reliability, and outcome satisfaction

Factors in Evaluations

Tangibles (physical aspects), valence (positive/negative feelings), and waiting time perceptions

Importance of Waiting Time

Impacts customer satisfaction and perceived service quality

Queue Configurations

Single line, multiple lines, take-a-number systems, etc., each affecting flow and efficiency

Psychology of Waiting

Expectations, distractions, and perceived fairness influence customer experience

Waiting Strategies

Avoidance, entertainment, and providing accurate wait times

Walt Disney’s Wait Time Management

Pre-visit information, experience during wait, and post-visit follow-up

Demand and Capacity Management

Essential to balance service delivery and customer satisfaction

Excess Demand and Capacity Scenarios

Strategies for managing peak times, overbooking, and service flexibility

Capacity Constraints

Physical (facility size), operational (staffing), and resource-based (equipment)

Random vs. Predictable Demand

Examples include seasonal tourism vs. year-round restaurants

Shifting Demand

Promotions, loyalty programs, and flexible pricing

Shifting Capacity

Cross-training staff, flexible work hours, and utilizing technology

Aligning Capacity and Demand

Adjusting staffing levels, scheduling, and resource allocation based on demand forecasts