478 Midterm 2

environmental screeners

Screeners of stimuli would be able to experience a high level of stimulation but not be affected by it. Nonscreeners would be highly affected and might exhibit extreme responses even to low levels of stimulation.

characteristics of an effective service guarantee

unconditional ex: Satisfaction guarantee at the hampton. If you don't enjoy your stay, money back no matter what meaningful (what elements are meaningful to the customer) ex: For example, a water delivery company offered a guarantee to deliver water on the day promised or a free jug of water would be provided next time. easy to understand ex: Bennigan's restaurants guarantee that lunch will be served quickly—within 15 minutes with its Lunch Crunch guarantee. The promise "It's Fast or It's Free" makes it clear to customers that they will not have to spend a lot of time waiting for lunch; the guarantee also makes it clear to employees that lunches should take no longer than 15 minutes to get to customers. easy to invoke ex: California Pizza Kitchen offers a guarantee, presented on page 204, to encourage customers to try new menu items. To invoke the guarantee, customers merely have to inform the waitstaff that they prefer their old "favorite" dish, and it is provided at no additional charge.

elaborate environments

An example is a hospital with its many floors and rooms, sophisticated equipment, and complex variability in functions performed within the physical facility. In such an elaborate environment, the full range of marketing and organizational objectives theoretically can be approached through careful management of the servicescape.

arousal seeking vs arousal avoiding

Arousal seekers enjoy and look for high levels of stimulation, whereas arousal avoiders prefer lower levels of stimulation. Thus, an arousal avoider in a loud, bright dance club with flashing lights might show strong dislike for the environment, whereas an arousal seeker would be very happy.

purposes for being in the service scape

Business/pleasure utiliatarian: get in get out hedonistic: stick around and browse, drink outta cups, be a bitch A person who is on an airplane for a one-hour flight will likely be less affected by the atmosphere on the plane than will the traveler who is embarking on a 14-hour flight from Los Angeles to Shanghai. Similarly, a day-surgery hospital patient will likely be less sensitive and demanding of the hospital environment than would a patient who is spending two weeks in the hospital.

4. Develop measurements for standards

Hard measurements typically involve mechanical counts or technology-enabled measurement of time or errors. What distinguishes these measurements from soft measurements is that they can be measured continuously and operationally without asking the customer's opinion of them. To demonstrate, here are some of the actual measurements of hard standards of the FedEx Express SQI: Missing packages: the number of packages that do not have a final disposition scan or have no package status scans for two consecutive business days after commit date. Damaged packages: the number of claims filed by customers for cost of contents for packages with visible or concealed damage. Wrong day, late deliveries: the number of packages delivered after the commitment date Soft measurements are based on customer perceptions that often cannot be directly observed. Two research methods can document customers' opinions about whether performance has met the standards established: relationship surveys and posttransaction surveys.

service recovery paradox***

Highly effective service recovery can result in higher levels of customer satisfaction than in cases where a service failure did not exist Sometimes if someone fails and then recovers well, the customer will sometimes be happier and have more loyalty to your brand Messing up and recovering well will give you more loyalty

ON TEST: How do you write the blueprint?

Horizontally, starting with the blueprint

*** ON TEST What is the additional row in this column?

On stage technology

One time fix

One-time fixes are technology, policy, or procedure changes that, when instituted, address customer requirements. Hertz making a fix to implement a 24 hour customer service for renters

3. Determine appropriate standards

Prioritizing the behaviors and actions—of which there will be many—into those for which customer-defined standards will be established is also crucial in determining standards. The following are the most important criteria for creation of appropriate service standards. The standards are based on behaviors and actions that are very important to customers. The standards cover performance that needs to be improved or maintained. The standards cover behaviors and actions employees have control over and can improve. The standards are understood and accepted by employees. The standards are predictive rather than reactive—based on current and future customer expectations rather than past complaints. The standards are challenging but realistic

Servicescape vs other tangibles

Servicescape: interior design, exterior design signage parking sound/music/lighting/scent Other tangibles: business cards billing statements reports employee dress uniforms web pages

Ambient dimensions

affect the 5 senses, but may be imperceptible or affect us subconsciously ◦ Temperature, lighting, noise, music, scent, color For example, a number of studies have documented the effects of music on consumers' perceptions of products, their perceptions of how long they have waited for service, and the amount of money they spend.. When there is music, shoppers tend to perceive that they spend less time shopping and in line than when there is no music. Slower music tempos at lower volumes tend to make people shop more leisurely, and in some cases, they spend more.

Signs, symbols, and artifacts

explicit or implicit communication of meaning; often culturally embedded; important in forming first impressions ◦ Way-finding, labels, rules of behavior, creating aesthetic impression Signs displayed on the exterior and interior of a structure are examples of explicit communicators. They can be used as labels (name of company, name of department, and so on), for directional purposes (entrances, exits), and to communicate rules of behavior (no smoking, children must be accompanied by an adult). Adequate signs have even been shown to reduce perceived crowding and stress. symbols and artifacts may communicate less directly than signs, giving implicit cues to users about the meaning of the place and norms and expectations for behavior in the place. Quality construction materials, artwork, certificates and photographs, floor coverings, and personal objects displayed in the environment can all communicate symbolic meaning and create an overall aestheticPage 303 impression.

How does physical evidence affect a customer:

flow meaning satisfaction emotional connections to the company

approach behaviors

include all positive behaviors that might be directed at a particular place, such as a desire to stay, explore, work, and affiliate o all positive behaviors that might be directed to a place ♣ Desire to stay, explore, work, affiliate ♣ Shopping enjoyment, spending time and money ex: People walk by cool store and they want to go in

Line of interaction, visibility, internal interaction

interaction: representing direct interactions between the customer and the organization. Anytime a vertical line crosses the horizontal line of interaction, a direct contact between the customer and the organization, or a service encounter, has occurred. visibility: This line separates all service activities visible to the customer from those not visible. In reading blueprints, it is immediately obvious whether the consumer is provided with much visible evidence of the service simply by analyzing how much of the service occurs above the line of visibility versus the activities carried out below the line. This line also separates what the contact employees do onstage from what they do backstage. For example, in a medical examination situation, the doctor would perform the actual exam and answer the patient's questions above the line of visibility, or onstage, whereas she might read the patient's chart in advance and dictate notes following the exam below the line of visibility, or backstage. internal interaction: which separates customer-contact employee activities from those of other service support activities and people. Vertical lines cutting across the line of internal interaction represent internal service encounters.

flexible product development

new service or product development is not always a linear process. Many companies find that some steps can be worked on simultaneously and in some instances a step may even be skipped, particularly for simple products and services. The overlapping of steps and simultaneous development of various pieces of the new service/product development process has been referred to as flexible product development. This type of flexible, speedy process is particularly important in technology industries, in which products and services evolve extremely quickly. In these environments, computer technology lets companies monitor customer opinions and needs during development and change the final offering right up until it is launched. Often, the next version of the service is in planning stages at the same time that the current version is being launched. Even if the stages are handled simultaneously, however, the important checkpoints noted should be assessed to maximize chances of success.

treating customers fairly: Procedural fairness

o Fairness in terms of policies, rules, timeliness of the complaint process; clarity, speed, no hassles; also choices: "What can we do to compensate you...?" fairness in terms of the procedure of the service Ex: target only takes returns back of 30 days, if someone tries to return something after 100 days, you can mention the policy and say "this is the procedure, I can't help you" can offer them compensation like gift cards ex 2: A classic story of procedural fairness in the midst of service recovery comes from Club Med-Cancun, a story still being retold nearly three decades later. A group of Club Med vacationers had nothing but trouble getting from New York to their Mexican destination. The flight took off six hours late, made two unexpected stops, and circled 30 minutes before it could land. Because of all the delays and mishaps, the plane was en route for 10 hours more than planned and ran out of food and drinks. It finally arrived at two o'clock in the morning, with a landing so rough that oxygen masks and luggage dropped from overhead. By the time the plane pulled up to the gate, the soured passengers were faint with hunger and convinced that their vacation was ruined before it had evenPage 196 started. Silvio de Bortoli, the general manager of the Cancun resort, got word of the horrendous flight while it was in progress and immediately created an antidote. He took half the resort's staff to the airport, where they laid out a table of snacks and drinks and set up a stereo system to play lively music. As the guests filed through the gate, they received personal greetings, help with their bags, a sympathetic ear, and a chauffeured ride to the resort. Waiting for them at Club Med was a lavish banquet, complete with mariachi band and Champagne. Moreover, the other half of the staff had rallied other guests to wake up and greet the newcomers, and the partying continued until sunrise. Even though the problemsPage 197 were not Club Med's fault, the company went out of its way to compensate the delayed guests immediately on arrival. The vacationers had no more hassles once they were on the ground.

facilitator

o facilitates the flow of the service delivery process ♣ provides information (how am I to act?) ♣ facilitates the ordering process (how does this work?) ♣ facilitates service delivery Ex; jiffy lube will direct you to drive in here and stop so your car can be evaluated ex2: an international air traveler who finds himself in a poorly designed airport with few signs, poor ventilation, and few places to sit or eat will find the experience quite dissatisfying, and employees who work there will probably be unmotivated as well. In reality, many airports today are designed for passengers, inviting them to spend time shopping in a varietyPage 290 of stores, eating in good restaurants, and working in areas set up with connection stations and Wi-Fi.

Differentiator

o sets provider apart from competition in the mind of the consumer In another context, the servicescape has been used as a major point of differentiation for PetSmart in the introduction of its innovative PetsHotel concept. The hotels, which offer overnight care as well as day care for pets, are designed very differently from typical kennels or veterinary facilities. They feature a lobby area, colorful play areas, comfortable sleeping rooms, television, a "bone booth" for calling in, and other amenities that give the facilities a more residential, homelike appeal than traditional kennels have.

Service failure**

occurs when service performance that falls below a customer's expectations in such a way that leads to customer dissatisfaction service failure is inevitable

Types of complainers**

passives • You'll never hear them complain. Least likely to take any action, say anything to the provider, spread negative WOM, or complain to a third party; doubtful of the effectiveness of complaining Voicers • actively complain to the provider, but not likely to spread negative WOM; They will tell the store or service exactly how they did. Believe in the positive consequences of complaining - the service provider's best friends! ex: someone telling a restaurant their food was cold and voicing what they like Irates more likely to engage in negative WOM to friends and relatives and to switch providers; average in complaints to provider; unlikely to complain to third parties; more angry, less likely to give provider a second chance ex: someone who takes to yelp for everything Activists above average propensity to complain on all levels; more likely to complain to a third party; feel most alienated from the marketplace compared to other groups; in extreme cases can become "terrorists" Ex: someone who hates your hotel and will stand in the lobby saying "don't stay here!"

Service Recovery

refers to the actions taken by a firm in response to service failure ex: gift cards, refunds, etc

support processes

section of the blueprint covers the internal services, steps, and interactions that take place to support the contact employees in delivering the service. Again, in our legal example, any service support activities such as legal research by staff, preparation of documents, and secretarial support to set up meetings will be shown in the support processes area of the blueprint.

clue management

the process of clearly identifying and managing all the various clues that customers use to form their impressions and feelings about the company Included in this set of clues are what Carbone refers to as mechanics clues, or the physical and tangible clues that we focus on in this chapter. Other writers and consultants who focus on managing customer experiences also zero in on the importance of tangible evidence and physical facilities in shaping those experiences.

on-stage technology

things like an ATM

Service recovery paradox exists, however...

• Only a small percent of customers complain • Service recovery must be SUPERLATIVE • Only with responsiveness, redress, and empathy/courtesy • Only with tangible rewards (Example: amazon ships you package that is damaged... you complain and they send you a refund and let you keep the package) • Even though service recovery can improve satisfaction, it has not been found to increase purchase intentions or perceptions of the brand • Service recovery is expensive The service recovery paradox is more likely to occur when: • The failure is not considered by the customer to be severe • The customer has not experienced prior failures with the firm • The cause of the failure is viewed as unstable by The customer • The customer perceives that the company had little control over the cause of the failure Conditions must be just right in order for the recovery paradox to be present!

physical evidence

"The environment in which the service is delivered and where the firm and the customer interact, and any tangible commodities that facilitate performance or communication of the service." Customers often rely on tangible cues, or physical evidence, to evaluate the service before its purchase and to assess their satisfaction with the service during and after the experience. Effective design of physical, tangible evidence is important for closing provider gap 2

***physical facility is

***service scape Elements of the physical servicescape that affect customers include both exterior attributes (such as signage, parking, and the landscape) and interior attributes (such as design, layout, equipment, and decor). Web pages and virtual service scapes shown online are forms of physical evidence that companies use to communicate about the service experience, making services more tangible for customers both before and after purchase

Important Considerations for Service Innovation

-Involve customers and employees For example, Bank of America was successful with developing new service innovations in branch banking by relying on results of a series of experiments in its Atlanta branches. -Employ service design thinking and techniques Service design aims to ensure service interfaces are useful, usable, and desirable from the client's point of view and efficient and distinctive from the supplier's point of view.

fix a problem

-encourage and track complaints -learn from recovery experiences -learn from lost customers -make the service fail-safe (poka yoks: procedures that makes sure the services are being done right and to avoid mistake)

fix the customer

-respond quickly -provide appropriate communication (display understanding and accountability, supply adequate explanations) -treat customers fairly -cultivate relationships with customers

tip of the iceberg theory

1-5% complain to management or company HQ 45% complain to a frontline employee 50% encounter a problem but do not complain

Process for setting Customer-Defined Service Standards

1. Identify existing or desired service encounter sequence 2. Translate customer expectations into behaviors/actions 3. Determine appropriate standards 4. Develop measurements for standards 5. Establish target levels for standards 6. Track measures against standards 7. Provide feedback about performance to employees 8. Update target levels and measures

Service Blueprinting

A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer's point of view. It provides a way to break a service down into its logical components and to depict the steps or tasks in the process, the means by which the tasks are executed, and the evidence of service as the customer experiences it. knowing what the customer goes through ***Biggest point is that it starts with a customer What is the process? Physical environment?

ergonomics (human factors design)

A vast amount of research in engineering and design has addressed human physiological responses to ambient conditions as well as physiological responses to equipment design Human factors research systematically applies relevant information about human capabilities and limitations to the design of items and procedures that people use. As populations around the world age (with accompanying physical limitations), and as individuals with a variety of physical disabilities are entering the mainstream of society, laws and practices are being introduced to accommodate their physical limitations. Service organizations and others are responding by adopting "universal design standards and principles," which simply means designing all products, buildings, and spaces to be usable by all people to the greatest extent possible.

remote service in service scape

At the other extreme of the use dimension is the remote service, which has little or no customer involvement with the service scape. Telecommunications, utilities, financial consultants, editorial, and mail-order services are examples of services that can be provided without the customer ever seeing the service facility.

Gap 2

Customer driven service designs and standards - management perceptions of customer expectations Poor service design Absence of customer driven standards inappropriate physical evidence or Servicescape If she asks a question about a gap, it is definitely GAP 2

Service innovation and Development Process (through hypothetical blockbuster trying to save themselves example)

FRONT END PLANNING 1. Business Strategy Development or Review We have a place for people to rent movies and games and return after three days 2. New service strategy development how can we save ourselves? What's going on around us? Look into growth opportunities 3. Idea generation maybe we look into streaming services due to the rise of netflix, hulu, prime. Brainstorming session 4. Concept development and evaluation lets do streaming and DVD's 5. Business Analysis Can we afford the project? Will this make us money? IMPLEMENTATION 6. Service development and testing Let's make a DVD and Vending machine 7. Market testing drop off some prototype kiosks in Wichita and see how customers like them 8. Commercialization MOST EXPENSIVE the idea goes public service goes live and is introduced into the marketplace (This stage has two primary objectives. The first is to build and maintain acceptance of the new service among large numbers of the service delivery personnel who will be responsible day-to-day for service quality. This task is made easier if acceptance has been built by involving service delivery personnel as one of the key groups in the design and development process all along. The second objective is to monitor all aspects of the service during introduction and through the complete service cycle.) 9. Post introduction evaluation At this point, the information gathered during commercialization of the service can be reviewed and changes made to the delivery process, staffing, or marketing mix variables on the basis of actual market response to the offering. No service will ever stay the same. Whether deliberate or unplanned, changes will always occur. Therefore, formalizing the review process to make those changes that enhance service quality from the customer's point of view is critical.

8. Periodically update target levels and measures

Facebook initially set a benchmark of five minutes for firms to receive the Facebook "very responsive" badge (see the Technology Spotlight) in responding to their customers. However, many businesses indicated that an average response time of five minutes was unrealistic. As a result of this feedback, Facebook revised that number to a more realistic 15 minutes. As these examples suggest, some flexibility in changing service standards may be necessary.

Service Recovery Strategies

Fall into 2 categories: fix the customer -fix the problem both must be done prompt

Building a Blueprint

Identify the process to be blueprinted ex: specific blueprints could be developed for two-day express mail, large accounts, Internet-facilitated services, and/or storefront drop-off centers. Each of these blueprints would share some features with the concept blueprint but would also include unique features. Identify the customer or customer segment Step 3: Map the Service Process from the Customer's Point of View ex: research in a hair-cutting context revealed that customers viewed the process as beginning with the phone call to the salon and setting of the appointment, whereas the hair stylists did not typically view the making of appointments as part of the service process If the blueprint is being developed for an existing service, it may be helpful at this point in the process to videotape or photograph the service process Step 4: Map contact employee actions and/or technology actions step 5: Link contact activities to needed support functions Step 6: add evidence of service at each customer step A photographic blueprint, including photos, slides, or video of the process, can be very useful at this stage to aid in analyzing the impact of tangible evidence and its consistency with the overall strategy and service positioning.

service guarantee

In a business context, a guarantee is a pledge or assurance that a product offered by a firm will perform as promised and, if not, then some form of reparation will be undertaken by the firm For tangible products, a guarantee is often done in the form of a warranty Services are often not guaranteed Cannot return the service Service experience is intangible (so what do you guarantee?)

backstage/invisible contact employee actions.

In the example, anythingPage 240 the attorney does behind the scenes to prepare for the meetings or to prepare the final documents will appear in this section of the blueprint, together with phone call contacts the customer has with the attorney or other frontline staff in the firm. All nonvisible contact employee actions are shown in this area of the blueprint.

onstage/visible contact employee actions.

In the legal services setting, the actions of the attorney (the contact employee) visible to the client are, for example, the initial interview, intermediate meetings, and final face-to-face delivery of legal documents.

Service Blueprint components

Line of interaction -physical evidence -customer actions Line of visibility employee actions (onstage/visible) Line of internal interaction employee actions (backstage/invisible) support processes The conventions for drawing service blueprints are not rigidly defined, and thus the particular symbols used, the number of horizontal lines in the blueprint, and the labels for each part of the blueprint may vary somewhat depending on the complexity of the blueprint being described. These variations are not a problem, as long as you keep in mind the purpose of the blueprint and view it as a useful technique rather than as a set of rigid rules for designing services. In fact, its flexibility—when compared with other process mapping approaches—is one of service blueprinting's major strengths.

types of service innovations

Major or radical innovations Start-up businesses New services for the currently served market Service line extensions Service improvements Style changes

1. Identify existing or desired service encounter sequence

Marriott, for example, has found that encounters in the first 10 minutes of a hotel stay are the most critical, leading to a focus on customers' front-desk experiences (such as express check-in).

6. Track Measures against standards

One company that lives and thrives through management by fact is Granite Rock, the family-run business in Watsonville, California (mentioned earlier in the chapter) that provides concrete, asphalt, and crushed stone products. Granite Rock has systems in place to gather, analyze, and act on information. Statistical process control and other types of charts are everywhere, tracking a wide range of issues—from characteristics of its concrete and crushed stone to processes such as the time it takes customers to fill their trucks. Customer complaints are also tracked through what the company calls "product-service discrepancy reports" and root-cause analysis, and updates are distributed to all plants.

7. Provide feedback about performance to employees

One example of such feedback is employee monitoring—in firms with customer service departments, this involves the practice of supervisors listening in on employee telephone interactions with customers. You may have experienced this practice when you have called customer service numbers for many organizations and noticed that the voice prompts tell you that calls may be monitored for quality purpose. The purpose of such monitoring is often to provide feedback on employee performance to the service standards set by the organization.

soft standards and measures

Opinion-based measures that cannot be observed and must be collected by talking to customers (perceptions, beliefs) ex: was the cashier friendly? transactional based

Risks of Relying on Words Alone to Describe Services:

Oversimplification To say that 'portfolio management' means 'buying and selling stocks' is like describing the space shuttle as 'something that flies.' Some people will picture a bird, some a helicopter, and some an angel." incompleteness A person might do a fairly credible job describing how a discount stock brokerage service takes orders from customers. But would that person be able to describe fully how the monthly statements are created, how the interactive computer system works, and how these two elements of the service are integrated into the order-taking process? Subjectivity Any one person describing a service in words will be biased by personal experiences and degree of exposure to the service. Biased interpretation For example, a supervisor or manager may suggest to a frontline service employee that the employee should try to be more flexible or responsive in providing service to the customer. Unless the term "flexibility" is further defined, the employee is likely to interpret the word differently than the manager.

lean environments

Some service environments are very simple, with few elements, few spaces, and few pieces of equipment. Such environments are termed lean. Shopping mall information kiosks and FedEx drop-off kiosks are considered lean environments because both provide service from one simple structure. For lean service scapes, design decisions are relatively straightforward, especially in self-service or remote service situations in which there is no interaction among employees and customers.

Temporary mood state

Temporary mood states can also cause people to respond differently to environmental stimuli. A person who is feeling frustrated and fatigued after a long day at work is likely to be affected differently by a highly arousing restaurant than the same person would be after a relaxing three-day weekend.

hard standards and measures

Things that can be counted, timed, or observed through audits (time, numbers of events) ex: Did the cashier ring you up in under 1 minute? Hard service standards for responsiveness are set to ensure the speed or promptness with which companies deliver products (within two working days), handle complaints (by sundown each day), answer questions (within two hours), answer the telephone and arrive for repair calls (within 30 minutes of the estimated time). In addition to setting standards that specify levels of response, companies must have well-staffed customer service departments. Responsiveness perceptions diminish when customers wait to get through to the company by telephone, are put on hold, or are dumped into a telephone voice mail system.

top 12 remedies customers seek from firms responding to service failures

To be treated with dignity 93% (desired) 32% (received) Offending company put itself in my shoes 83% 19% An assurance that my problem would not be repeated 81% 15% My product repaired/service fixed 80% 25% An explanation of why the problem occurred 80% 18% To be talked to in everyday language; not scripted response 79% 29% A thank you for my business 76% 27% An apology 75% 28% Just to express my anger/tell my side of the story 58% 35% My money back 57% 18% A free product or service in the future 44% 8% Financial compensation for my lost time, inconvenience, or injury 42% 5%

physical evidence

Typically, above each point of contact the actual physical evidence of the service is listed. In the legal example, the physical evidence of the face-to-face meeting with the attorney would be such items as office decor, written documents, lawyer's clothing, and so forth.

5 principles of service design thinking

User-centered: Services should be experienced and designed through the customer's eyes. Cocreative: All stakeholders should be included in the service design process. Sequencing: A service should be visualized as a sequence of interrelated actions. Evidencing: Intangible services should be visualized in terms of physical artifacts. Holistic: The entire environment of a service should be considered.

ON TEST: How do you read a blueprint step by step?

Vertically Remember RV

When customers do complain, they expect

When they take the time and effort to complain, customers generally have high expectations. They not only expect a response, but also expect the firm to be accountable. They expect to be helped quickly. They expect to be compensated for their grief and for the hassle of being inconvenienced. They expect to be treated nicely in the process. And they expect the issue to be satisfactorily resolved.

avoidance behaviors

a desire not to stay, to explore, to work, or to affiliate. Over many decades, consumer research in retail contexts has found that approach behaviors (including shopping enjoyment, returning, attraction and friendliness toward others, spending money, time spent browsing the exploration of the store) are influenced by perceptions of the environment. ex: People walk by crowded store during black friday and avoid it

Interpersonal services (both customer and employee) servicescape

are placed between the two extremes and represent situations in which both the customer and the employee are present and active in the servicescape. Examples abound, such as hotels, restaurants, hospitals, educational settings, and banks. In these situations, the servicescape must be designed to attract, satisfy, and facilitate the activities of both customers and employees simultaneously. Special attention must also be given to how the servicescape affects the nature and quality of the social interactions between and among customers and employees. A cruise ship provides a good example of a setting in which the servicescape must support customers and the employees who work there, as well as facilitate interactions between and within the two groups.

5. establish target levels for standards

companies establish target levels for the standards. Without this step the company lacks a way to quantify whether the standards are being met.

Internal responses to Servicescape: Environment and Cognition

environment can affect beliefs about a place and the people and products found in that place ex: particular environmental cues such as the type of office furniture and decor and the apparel worn by the lawyer may influence a potential client's beliefs about whether the lawyer is successful, expensive, and trustworthy.

Socializer

facilitates interaction between: -customers and employees -customers and fellow customers For example, in many Starbucks locations, the company has designed a more traditional coffeehouse environment for customers to spend social time rather than coming in for a quick cup of coffee on the run. To encourage this type of socializing, these Starbucks locations have comfortable lounge chairs, tables, and Wi-Fi set up to encourage customers to interact and to stay longer. The goal is to be the customer's "third place"; that is, a place where customers think of spending time when not at work or at home

The goal of customization for the service firm is to develop a service that

meets each customers individual needs Some executives and managers believe that services cannot be standardized—that customization is essential for providing high-quality service. Managers also may feel that standardizing tasks is inconsistent with employee empowerment—that employees will feel controlled by the company if tasks are standardized. Further, they feel that services are too intangible to be measured.

Treating customers fairly: Outcome fairness

o Outcome (compensation) should match the customer's level of dissatisfaction; equality with what other customers receive; choices Making sure you are rightfully compensated for the outcome ex: If you got a plate of food with fingernail and the restaurant said "ok half off", you wouldn't be happy. They should either refund you or make it over ex 2: For example, an Amazon customer ordered a brand new PlayStation for Christmas, which was duly delivered to his porch. However, the package was stolen before the customer had a chance to bring it inside. Amazon compensated the customer by rush-delivering a second PlayStation, free of charge, in time for Christmas. This customer considered the final outcome (the timely replacement of the package contents) to be more than adequate, given the stolen package was not Amazon's fault

treating customers fairly: interactional fairness

o Politeness, care, and honesty on the part of the company and its employees; rude behavior on the part of employees may be due to lack of training and empowerment Ex: An employee at sam's club calls you a dickhead when you try and buy prime rib, that is a crappy interaction and shouldn't be what the service provides

package

o conveys expectations o influences perceptions The servicescape is the outward appearance of the organization and thus can be critical in forming initial impressions or setting up customer expectations—it is a visual metaphor for the intangible service. This packaging role is particularly important in creating expectations for new customers and for newly established service organizations trying to build a particular image. The physical surroundings offer an organization the opportunity to convey an image in a way not unlike the way an individual chooses to "dress for success." The packaging role extends to the appearance of contact personnel through their uniforms or dress and other elements of their outward appearance

customer-defined standards

operational standards based on pivotal customer requirements identified by customers. These standards are deliberately chosen to match customer expectations and to be calibrated the way the customer views and expresses them.

spatial layout and functionality

size, shape, and arrangement of machinery, equipment, and furnishings and the ability of such to facilitate customer and employee goals ◦ Accessibility, aesthetics, seating comfort Functionality refers to the ability of the same items to facilitate the accomplishment of customer and employee goals. The spatial layout and functionality of the environment are particularly important for customers in self-service environments, where they must perform the service on their own and cannot rely on employees to assist them. Thus, the functionality of an ATM machine and of self-serve restaurants, gasoline pumps, and Internet shopping are critical to success and customer satisfaction.

customer actions

steps, choices, activities, and interactions that the customer performs in the process of purchasing, experiencing, and evaluating the service. The total customer experience is apparent in this area of the blueprint. In a legal services example, the customer actions might include a decision to contact an attorney, phone calls to the attorney, face-to-face meetings, receipt of documents, and receipt of a bill.

self-service (customer only) servicescape

the customer performs most of the activities and few if any employees are involved. Examples of self-service environments include ATMs, movie theaters, check-in kiosks at airports, self-service entertainment such as golf and theme parks, and online services.

Standards are based on

the most important customer expectations and reflect the customer's view of these expectations.

2. Translate customer expectations into behaviors/actions

when the client first enters the spa, the hostess is expected to greet thePage 272 customer enthusiastically within 10 seconds, confirm the appointment, offer to hang up the customer's coat, offer a tour of the facility (if a new customer), and use the customer's name at least four times during the check-in.

Benefits of Service Guarantees

• A good guarantee forces the company to focus on its customers. • An effective guarantee sets clear standards for the organization. ex: Pizza Hut's guarantee "If you're not satisfied with your pizza, let our restaurant know. We'll make it right or give you your money back" lets employees know exactly what they should do if a customer complains. It is also clear to employees that making it right for the customer is an important company goal. • A good guarantee generates immediate and relevant feedback from customers. • When the guarantee is invoked there is an instant opportunity to recover. • Information generated through the guarantee can be tracked and integrated into continuous improvement efforts. • A service guarantee reduces customers' sense of risk and builds confidence in the organization.

Reasons companies might NOT want to offer a service guarantee:

• Existing service quality is poor • A guarantee does not fit the company's image ex: if the Four Seasons Hotel were to offer an explicit guarantee, it could confuse customers who already expect the highest of quality, implicitly guaranteed, from this high-end hotel chain. Research suggests that the benefits of offering a guarantee for luxury hotels like the Four Seasons or the Ritz-Carlton may be significantly less than the benefits that a hotel of lesser quality would offer, and the benefits might not be justified by the costs • Service quality is truly uncontrollable ex: airline flying out of Chicago in the winter would probably not guarantee on-time departure because of the unpredictability and uncontrollability of the weather. ex 2: Skydiving: if its raining, you get your money back. However if its cloudy and you can't really see... no refund. That would piss people off • Potential exists for customer abuse of the guarantee • Costs of the guarantee outweigh the benefits • Customers perceive little risk in the service ***Guarantees are usually most effective when customers are uncertain about the company and/or the quality of its services.

Benefits of Service Blueprinting

• Provides a platform for innovation. • Recognizes roles and interdependencies among functions, people, and organizations. • Facilitates both strategic and tactical innovations. • Transfers and stores innovation and service knowledge. • Designs moments of truth from the customer's point of view. • Suggests critical points for measurement and feedback in the service process. • Clarifies competitive positioning. • Provides understanding of the ideal customer experience.

Environment and Emotion

• color, décor, music, scent affect mood o Pleasure/displeasure o Degree of arousal (amount of stimulation) ex: dentists office with the sounds and smells of dental acts might elicit negative responses and emotions in patients, causing anxiety Servicescapes that are both pleasant and arousing would be termed exciting, whereas those that are pleasant and nonarousing, or sleepy, would be termed relaxing. Unpleasant servicescapes that are arousing would be called distressing, whereas unpleasant, sleepy servicescapes would be gloomy. These basic emotional responses to environments can be used to begin predicting the expected behaviors of consumers and employees who find themselves in a particular type of place.

Environment and Physiology

• volume, temperature, air quality, lighting can cause physical discomfort and even pain ex: It is well known that the comfort of seating in a restaurant influences how long people stay. The hard seats historically found in a fast-food restaurant cause most people to leave within a predictable period of time, whereas the soft, cozy chairs in some Starbucks coffee shops have the opposite effect, encouraging people to stay.