McGraw-Hill © 2000 The McGraw-Hill Companies 1 S M S M McGraw-Hill © 2000 The McGraw-Hill Companies Chapter 12 CUSTOMERS’ ROLES IN SERVICE DELIVERY

McGraw-Hill © 2000 The McGraw-Hill Companies 2 S M Objectives for Chapter 12: Customers’ Roles in Service Delivery Illustrate the importance of customers in successful service delivery Enumerate the variety of roles that service customers play Productive resources Contributors to quality and satisfaction Competitors Explain strategies for involving service customers effectively to increase both quality and productivity

McGraw-Hill © 2000 The McGraw-Hill Companies 3 S M Importance of Other Customers in Service Delivery Other customers can detract from satisfaction disruptive behaviors excessive crowding incompatible needs Other customers can enhance satisfaction mere presence socialization/friendships roles: assistants, teachers, supporters

McGraw-Hill © 2000 The McGraw-Hill Companies 4 S M How Customers Widen Gap 3 Lack of understanding of their roles Not being willing or able to perform their roles No rewards for “good performance” Interfering with other customers Incompatible market segments

McGraw-Hill © 2000 The McGraw-Hill Companies 5 S M Figure 12-2 Customer Roles in Service Delivery Productive Resources Contributors to Quality and Satisfaction Competitors

McGraw-Hill © 2000 The McGraw-Hill Companies 6 S M Customers as Productive Resources “partial employees” –contributing effort, time, or other resources to the production process customer inputs can affect organization’s productivity key issue: –should customers’ roles be expanded? reduced?

McGraw-Hill © 2000 The McGraw-Hill Companies 7 S M Customers as Contributors to Service Quality and Satisfaction Customers can contribute to –their own satisfaction with the service by performing their role effectively by working with the service provider –the quality of the service they receive by asking questions by taking responsibility for their own satisfaction by complaining when there is a service failure

McGraw-Hill © 2000 The McGraw-Hill Companies 8 S M Customers as Competitors customers may “compete” with the service provider “internal exchange” vs. “external exchange” internal/external decision often based on: –expertise –resources –time –economic rewards –psychic rewards –trust –control

McGraw-Hill © 2000 The McGraw-Hill Companies 9 S M 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

McGraw-Hill © 2000 The McGraw-Hill Companies 10 S M Figure 12-3 Strategies for Enhancing Customer Participation Effective Customer Participation Recruit, Educate, and Reward Customers Define Customer Jobs Manage the Customer Mix

McGraw-Hill © 2000 The McGraw-Hill Companies 11 S M Strategies for Enhancing Customer Participation 1. Define customers’ jobs - helping himself - helping others - promoting the company 2. Individual differences: not everyone wants to participate

McGraw-Hill © 2000 The McGraw-Hill Companies 12 S M Strategies for Recruiting, Educating and Rewarding Customers 1. Recruit the right customers 2. Educate and train customers to perform effectively 3. Reward customers for their contribution 4. Avoid negative outcomes of inappropriate customer participation Manage the Customer Mix