(11) Customer Roles During Service PDF

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Customers’ Roles During Service It is important to understand the benefits and limitations of customer participation during service delivery. It is important for the service department to ensure that consumer’s are educated on the rules and regulations of the servicescape. ! Customer’s can be present in the actual factory where the service is being delivered, customers can contribute and detract from the success of a service delivery. ! In manufacturing the customer is rarely present. Presence of customers = widen gap 3. ! Customer in Service = Gap 3 •

Example 1: Customer’s don’t understand their roles, you need to show the rules and regulations and upload files. For example customers must turn up to a flight 3 hours early. !

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Example 2: Customers understand roles but are unable / unwilling to perform them, time pressure doesn’t see benefit. !

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Example 3: Actions and behaviours of other customers present, i.e. not ready to pay. !

The Case of Ikea# Key to success is the relationship with the customers. Customers does activity usually completed by the manufacturer. ! Sourcing, transporting and assembling. ! Customers within Ikea co-create their own experiences particularly with the unique shopping experience that Ikea produce, they keep their prices low and customers know what to expect. ! Ikea’s policy of consumer’s having to clear away their own tables. ! Levels of customer participation across different services. ! Low: Consumer Presence Required during Service Delivery

Moderate: Consumer inputs Required for Service Creation

High: Customer Cocreates the Service Product

Products are standardised.

Client inputs (information, materials) customise a standard service.

Active client participation guides the customised service.

Service is provided regardless of any individual purchase.

Provision of service require customer purchase.

Service cannot be created apart from the customer’s purchase active participation.

Payment may be the only required customer input.

Customer inputs are necessary for an adequate outcome, but the service firm provides the serivce.

Customer inputs are mandatory and concrete the outcome.

1. Customers as a Productive Resource! •

‘Partial employee’!

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Customers contribute to quality and quantity of service output. !

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Do we need to isolate customers form the production process?!

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Can increase productivity through education !

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Customers must be willing to participate and see the enhanced benefits !

2. Customers as Contributors to Service Quality and Satisfaction ! •

Contribute to their own satisfaction and quality !

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Outcome is dependent on what the customer puts in !

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Participation = satisfaction !

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Contribute to service quality - ask questions, take responsibility for their own satisfaction, complain when there is a service failure !

3. Customers as Competitors! •

‘Partial employees’ - perform the service themselves !

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Need to decide between internal exchange or external exchange !

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Expertise capacity, resource capacity, time capacity, psychic rewards, trust, control !

Customer Participation Customer participation = “the degree to which the customer is involved in producing and delivering the service (Dabholkar, 1990 p.184). ! Shift in perspective - active rather than passive, what can we do for you moves to what can you do with us. ! Economic benefits - reduced labour costs, lower prices = win, win situation. ! Customers are more likely to take credit than to take the blame, however, when service fails, satisfaction is higher in high participation groups. ! When customers participate they take more responsibility for outcome. ! Recommend that firms provide customers with a choice to participate, encourage participation in different scenarios. ! Self-Service Technology SSTs = remote service ! Ultimate form of customer participation. ! Increase in new SSTs: ! •

Advance in technology !

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Saves £, increase productivity !

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Powerful to success and differentiation !

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Customers want more information than before, also gives the firm access to data !

Success rates of SSTs: ! •

Some more successful than others !

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Failure arises when customer cannot see benefit !

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Also when they don’t understand how to use it!

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Communication and education is essential !

Strategie sfor Enhancing Customer Participation: ! 1. Define Customer’s Jobs!

- Helping oneself, active participation ! - Helping others, orientate new members ! - Promoting the company ! 2. Recruit, educate, reward customers !

- Recruit the right customers ! - Educate and train customers to perform effectively, socialise and orientate customers ! - Reward customers for their contribution, money, psychological, time! 3. Manage the customer mix !

- Particularly important when customers are in close proximity with one another ! - The service environment attracts a heterogeneous mix of customers ! Benefits and Limitations of Customer Participation Benefits:! •

Reduced organisational costs !

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Reduced prices !

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Increased customer perceptions of satisfaction and quality !

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Customer morale!

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Increased speed / efficiency of service delivery !

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Increase employee satisfaction, commitment and performance !

Limitations:! •

Customers pass buck when service fails (self-serving bias)!

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Not everyone wants to participate (alienate customers)!

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Firm loss of control over quality of service, efficiency and productivity !

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Negative effect on employee morale!...