Chapter 9: Customer-Defined Service Standards

What are the most important criteria for creation of appropriate service standards?

1.The standards are based on behaviors and actions that are very important to customers. 2.The standards cover performance that needs to be improved or maintained. 3.The standards cover behaviors and actions employees have control over and can improve. 4.The standards are understood and accepted by employees. 5.The standards are predictive rather than reactive—based on current and future customer expectations rather than past complaints. 6.The standards are challenging but realistic.

soft customer defined standards

are opinion-based measures and cannot be directly observed. They must be collected by talking to customers, employees, or others

In an organizational context, ________ are comprehensive composites of the most critical performance standards.

service performance indexes

What distinguishes hard measurements from soft measurements?

they can be measured continuously and operationally without asking the customer's opinion of them

Standardization of service can take three forms:

(1) substitution of technology for personal contact and human effort, (2) improvement in work methods, and (3) combinations of these two methods

In the context of developing customer-defined service standards, identify a true statement about establishing target levels for service standards.

It helps companies identify whether the standards are being met.

What is the process for setting customer defined standards?

Step 1: Identify Existing or Desired Service Encounter Sequence Step 2: Translate Customer Expectations into Specific Behaviors and Actions Step 3: Determine Appropriate Standards Step 4: Develop Measurements for Standards Step 5: Establish Target Levels for the Standards Step 6: Track Measures against Standards Step 7: Provide Feedback about Performance to Employees Step 8: Periodically Update Target Levels and Measures

Etwell Restaurant changes the color scheme of the interiors in all of its restaurants after many customers complained about poor ambiance. This change is an example of ________.

a one-time fix

The types of standards that close provider gap 2 are

customer-defined

In service firms, formal goal setting for service standards can be done by ________.

defining specific targets for individual action.

For service firms, the goal of customization is to ________.

develop a service that meets the requirements of individual customers

customer defined standardization

ensures that the most critical elements of a service are performed as expected by customers, not just that every action in a service is executed in a uniform manner

customer-defined standards

operational standards based on pivotal customer requirements identified by customers

company defined standards

standards that are established to reach internal company goals for productivity, efficiency, cost, or technical quality

one-time fixes

technology, policy, or procedure changes that, when instituted, address customer requirements OR company standards that can be met by an outlet (e.g., a franchisee) making a one-time change that does not involve employees and therefore does not require motivation and monitoring to ensure compliance

Hard Customer-Defined Standards

things that can be counted, timed, or observed through audits

The goal of customization for the service firm

to develop a service that meets each customer's individual needs

Standardization

usually refers to a nonvarying sequential process in which the steps are set in order and all outcomes are uniform