Services Exam Final

What is physical evidence in the context of services?

The environment where the service is delivered and where the firm and customer interact, including tangible items that facilitate service delivery.

Define servicescape.

The physical facility where the service is performed, delivered, and consumed.

Why is physical evidence important for credence and experience-based services?

It helps communicate service quality, set expectations, and create the service experience.

What gap does physical evidence help close in the service quality gaps model?

Gap 2, which is the gap between service design/standards and service delivery.

How do customers use physical evidence?

Customers rely on tangible cues to evaluate service quality before purchase and to assess satisfaction during and after the service experience.

What are the elements of servicescape?

Facility exterior (design, signage, parking) and interior (layout, equipment, air quality).

List some examples of other tangibles in physical evidence.

Business cards, stationery, billing statements, employee uniforms, brochures, websites.

How does technology enhance virtual servicescapes?

It allows customers to explore services virtually, preview experiences, and see tangible proof of service quality.

Give an example of how technology is used in the travel industry.

Websites like Yellowstone National Park provide videos, maps, and live webcams for real-time previews of attractions.

What is experience engineering?

Designing experiences intentionally through physical and sensory cues.

What does clue management involve?

Identifying and managing all cues customers use to form impressions about the service.

What are the types of servicescapes based on customer involvement?

Self-service, interpersonal service, and remote service.

What is a lean servicescape?

A simple environment with few elements, such as kiosks and drop boxes.

What is an elaborate servicescape?

A complex environment with many spaces, elements, and equipment, such as hospitals.

What strategic roles can the servicescape play?

It can act as a package, facilitator, socializer, and differentiator.

How does the servicescape function as a package?

It provides an external image of what the service is like inside, forming first impressions and setting expectations.

What role does the servicescape play in facilitating tasks?

It can make it easier or harder for customers and employees to perform their tasks.

How does the servicescape communicate expected roles and behaviors?

It helps employees understand their place in the organization and guides customer behavior.

What is the differentiator role of the servicescape?

It distinguishes a firm from competitors and signals the target market.

What framework explains how the servicescape affects behavior?

The stimulus-organism-response framework, where the environment is the stimulus, people are the organisms, and their actions are the responses.

What is the main idea regarding the impact of physical surroundings on behavior?

Physical surroundings do not directly cause behavior; they influence it through various cues.

How can the servicescape enhance customer experience?

By strategically engineering the environment to shape flow, emotional response, and satisfaction.

What is the significance of tangible and physical clues in service delivery?

They are crucial parts of shaping customer impressions and experiences.

What are some examples of self-service environments?

ATMs, check-in kiosks, golf courses, theme parks, and online services.

What are examples of interpersonal service environments?

Hotels, restaurants, hospitals, schools, banks, cruise ships, and hair salons.

What are examples of remote service environments?

Telecommunications, utilities, mail-order services, insurance, and many professional services.

What do physical surroundings influence in behavior?

They do not directly cause behavior; instead, internal responses shape actions.

What are approach behaviors?

Positive actions such as staying, exploring, working, affiliating, browsing, and spending money.

What are avoidance behaviors?

Negative actions such as leaving, not exploring, not working, or not affiliating.

How do servicescapes affect customer behavior?

They can attract or repel customers and influence their duration of stay and enjoyment.

What factors can improve employee satisfaction and productivity in a servicescape?

Adequate space, proper equipment, comfortable temperature, and good air quality.

How does the servicescape shape social interactions?

It defines the duration and style of interactions through physical proximity, seating, and layout.

What are the three types of internal responses to servicescapes?

Cognitive, emotional, and physiological responses.

How can a calming environment affect patient perceptions?

It may lead patients to believe the provider is caring and competent.

What role does nonverbal communication play in servicescapes?

The servicescape acts as nonverbal communication or 'object language' influencing beliefs.

What emotional responses can servicescapes create?

Feelings such as happiness, relaxation, excitement, fear, pride, or anxiety.

What are the four emotional types related to servicescapes?

Exciting, relaxing, distressing, and gloomy.

How can physical surroundings directly affect physiological responses?

Through noise, temperature, air quality, lighting, and seating comfort.

What is universal design?

Designing products and spaces to be usable by as many people as possible.

How do individual differences affect responses to servicescapes?

Personality, mood, purpose, duration of stay, and culture all influence reactions.

How does culture influence preferences in physical environments?

Preferences for color, order, noise, and crowding can vary across cultures.

What are the three dimensions of the physical environment in servicescapes?

Ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts.

What do ambient conditions include?

Background features such as temperature, lighting, noise, music, scent, and color.

What is spatial layout in the context of servicescapes?

The arrangement of equipment, furnishings, and physical items to aid customer and employee goals.

What role do signs and symbols play in servicescapes?

They provide explicit information and communicate indirectly through quality and decor.

What is a physical evidence strategy?

A strategy that shapes service quality expectations and customer perceptions.

What is the purpose of service blueprints?

To visualize the service process and identify where physical evidence appears.

Why is it important to clarify servicescape roles?

To determine the complexity of the servicescape and the needs it must address.

What should firms assess regarding physical evidence opportunities?

Look for missed opportunities and ensure evidence aligns with customer expectations.

Why must physical evidence be updated over time?

Design, fashion, and customer expectations change, making spaces potentially outdated.

What is the importance of a cross-functional team approach in physical evidence decisions?

To ensure consistency across uniforms, layout, processes, advertising, and pricing.

How did COVID-19 change the management of physical and social servicescapes?

It introduced concerns like remote delivery, crowding, cleaning, ventilation, and safer payment methods.

What is the main takeaway regarding physical evidence in services?

It is a key cue for customers as services are intangible and hard to judge before purchase.

What is the first step in delivering high service quality?

Understanding customer requirements.

What challenge do firms face when creating service quality standards?

Turning customer expectations into service quality standards and goals.

Why do many firms struggle with service quality standards?

Because marketing and operations often work separately instead of through functional integration.

What do service standards clarify and measure?

What a 'quality service experience' should look like.

How can good service standards benefit firms?

They help improve consistency, reduce errors, and better match customer expectations.

What is standardization in service delivery?

A more uniform, repeatable service process.

What does customization in service delivery mean?

Adapting service to individual customer needs.

What are three ways service can be standardized?

1. Substituting technology for personal contact. 2. Improving work methods for efficiency. 3. Combining technology and work-process improvements.

What should strong service firms set for employee actions?

Specific, measurable goals.

What is an example of a vague service goal?

'Call the customer back quickly.'

What is a better example of a concrete service goal?

'Call each customer back within four hours.'

What are customer-defined standards based on?

What customers actually value.

How can customer-defined standards save money?

By focusing only on what customers truly care about.

What improvements did Harvard Pilgrim Health Care make?

Improved phone access by setting targets for speed to answer and call abandonment.

What did Oregon DMV do to reduce wait times?

Focused on customer expectations and used online services, kiosks, and staffing changes.

How does big data help firms in service quality?

It helps understand customer behavior, needs, and habits in detail.

What does Disney use to personalize guest experiences?

Data from MagicBand+.

What is the main idea of the chapter on service standards?

Service standards should be customer-defined to improve service quality.

What are the two main types of customer-defined service standards?

Hard standards and soft standards.

What are hard customer-defined standards?

Things that can be counted, timed, or observed.

What is a common reliability standard?

'Right the first time' and 'right on time.'

Which companies use hard standards tied to customer priorities?

FedEx, Dell, Southwest Airlines, Zappos, Mayo Clinic, and Cardinal Health.

What does Dell's Perfect Order Metric measure?

On-time delivery, complete orders, damage-free delivery, and accurate documentation.

What are hard responsiveness standards?

Standards that include answering calls within a certain time or fixing problems on the first visit.

What are soft customer-defined standards?

Standards based on customer perceptions, measured through surveys and interviews, focusing on aspects like courtesy and empathy.

Why are soft standards important in services?

They capture emotional and relational parts of service quality, especially in person-to-person services.

What is an example of a company that emphasizes courtesy in service?

American Express focuses on resolving problems at first contact and treating customers with courtesy.

What is a one-time fix in customer service?

A technology, policy, or procedure change that solves a customer need with a single operational change.

What are the steps to develop customer-defined standards?

1. Identify the service encounter sequence. 2. Translate customer expectations into specific behaviors. 3. Decide on hard or soft standards. 4. Develop measurements. 5. Set target levels. 6. Track performance. 7. Give feedback. 8. Update standards.

What is the purpose of identifying the service sequence?

To map the full customer experience and identify important customer encounters.

How should broad ideas like 'improve service' be handled?

They should be converted into specific, observable behaviors.

What factors should a good standard reflect?

It should be important, controllable by employees, understandable, realistic, and predictive of future customer expectations.

What are hard measures in customer service?

Measures that use counts, time, error rates, or frequencies.

What are soft measures in customer service?

Measures based on customer perceptions from surveys or feedback.

Why is tracking performance important?

It helps identify problems quickly and improves consistency in service quality.

What should feedback to employees focus on?

Whether the customer's needs were handled well, not just the speed of service.

Why should standards be updated regularly?

To adapt to changing customer expectations and maintain relevance.

What is a service performance index?

A composite measure made up of the most important performance standards guiding employee behavior.

What is the significance of customer-defined service standards?

They help firms close the gap between customer expectations and actual service delivery by turning expectations into measurable actions.

What is an example of a company that uses a service performance index?

FedEx uses its Service Quality Index (SQI) to guide performance and identify service problems.

What is Gap 3 in service delivery?

The Service Performance Gap occurs when services are not delivered as specified, despite correct expectations and design.

What causes Gap 3?

Human resource issues, as employees are responsible for performing or delivering the service.

What is the goal in addressing Gap 3?

To develop employee strategies that lead to effective, customer-oriented service.

Define service culture.

The pervasive norms and values that shape employee behavior in an organization.

What is corporate culture?

Shared values and beliefs that give meaning to members and guide behavior.

How can one sense the culture of an organization?

Through observation, training, and interaction.

What defines a customer-oriented organization?

A culture where appreciation for good service exists, and providing good service is a core organizational norm.