CUSTOMERS’ ROLES IN SERVICE DELIVERY Chapter 12 MTG 410 Fall 2000

Marketing Exchange --- Creating Value n By participating in the service delivery process, customers create value for themselves

The Drama Metaphor n actors n audience n script n setting n props

Importance of Other Customers in Service Delivery n Other customers can detract from satisfaction n disruptive behaviors n excessive crowding n incompatible needs n Other customers can enhance satisfaction n mere presence n socialization/friendships n roles: assistants, teachers, supporters

How Customers Widen Gap 3 n Lack of understanding of their roles n Not being willing or able to perform their roles n No rewards for “good performance” n Interfering with other customers n Incompatible market segments

Figure 12-2 Customer Roles in Service Delivery Productive Resources Contributors to Quality and Satisfaction Competitors

Customers as Productive Resources n “partial employees” – contributing effort, time, or other resources to the production process n customer inputs can affect organization’s productivity n key issue: – should customers’ roles be expanded? reduced?

Customers as Contributors to Service Quality and Satisfaction n Customers can contribute to – their own satisfaction with the service n by performing their role effectively n by working with the service provider – the quality of the service they receive n by asking questions n by taking responsibility for their own satisfaction n by complaining when there is a service failure

Customers as Competitors n customers may “compete” with the service provider n “internal exchange” vs. “external exchange” n internal/external decision often based on: – expertise – resources – time – economic rewards – psychic rewards – trust – control

Technology Spotlight: Services Production Continuum Gas Station Illustration 1. Customer pumps gas and pays at the pump with automation 2. Customer pumps gas and goes inside to pay attendant 3. Customer pumps gas and attendant takes payment at the pump 4. Attendant pumps gas and customer pays at the pump with automation 5. Attendant pumps gas and customer goes inside to pay attendant 6. Attendant pumps gas and attendant takes payment at the pump Customer Production Joint Production Firm Production

Figure 12-3 Strategies for Enhancing Customer Participation Effective Customer Participation Recruit, Educate, and Reward Customers Define Customer Jobs Manage the Customer Mix

Strategies for Enhancing Customer Participation 1. Define customers’ jobs - helping himself - helping others - promoting the company 2. Individual differences: not everyone wants to participate

Strategies for Recruiting, Educating and Rewarding Customers 1. Recruit the right customers 2. Educate and train customers to perform effectively On site --- place and function orientation 3. Reward customers for their contribution 4. Avoid negative outcomes of inappropriate customer participation Manage the Customer Mix