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Lecture 10 PDF

The document discusses service encounters, which occur when a customer interacts with an organization through an employee or machine. A service encounter involves the service organization, contact personnel, service delivery system, and the customer. It can be standardized, with limited options, or personalized. The customer's expectations and the information they provide impact the encounter. The service provider represents the organization and aims to meet the customer's needs through good communication skills and empathy. The service delivery system, including rules, culture and equipment, also facilitates satisfactory encounters. An organization seeks to improve profitability by focusing on the "service profit chain" - retaining satisfied employees who can better satisfy loyal, repeat customers.

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83 views8 pages

Lecture 10 PDF

The document discusses service encounters, which occur when a customer interacts with an organization through an employee or machine. A service encounter involves the service organization, contact personnel, service delivery system, and the customer. It can be standardized, with limited options, or personalized. The customer's expectations and the information they provide impact the encounter. The service provider represents the organization and aims to meet the customer's needs through good communication skills and empathy. The service delivery system, including rules, culture and equipment, also facilitates satisfactory encounters. An organization seeks to improve profitability by focusing on the "service profit chain" - retaining satisfied employees who can better satisfy loyal, repeat customers.

Uploaded by

YMFG4891
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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LECTURE – 4

SERVICE ENCOUNTER

Learning Objective

1. To discuss the role of service organization, contact personnel


and customer in service encounter
3.10 Service Encounter

A situation or episode in which the customer in the form of human being or


machine comes into contact with any aspect of the organization through employee
or machine to experience the service and perceive the quality of service within
service scape or virtual contact as shown in Figure 3.19. It is also known as
moment of truth.

Service scape: The physical environment of the supporting service facility


influences both a customer and service provider aligned with the service concept.

In a service encounter we will discuss the role of each interface in performing


service.

Service organization

Service scape
Service delivery
system

Contact personnel
or machine Customer

FIGURE 3.19: ELEMENTS OF SERVICE ENCOUNTER


3.10.1 Service Organization- Customer Interface

 Given the service strategy of an organization, what amount of discretion the


contact personnel can have?

 Whether operating procedures of service organization allows standardized


service or personalized service

Standardized service:
Service organization
- Few options are present

- No personalized service to attend


individual customer needs

- For example Mc. Donald’s

Personalized service:
Customer
- Enjoys more service options with
customization

Responsibilities of customer in getting the right service

- Right & complete information given by the customer impacts the service
encounter

- For new forms of service transactions mostly technology oriented self-service


forms may demand proper training to the customer & complete set of guidelines.
Right information IN leads to right information OUT
3.10.2 Service Organization-Contact Personnel Interface

Service strategy of the organization may drive


Service organization
• Efficiency (standardized service)

• Autonomy(provide personalized service)


Service delivery
system Selection of employee

• Check competency & credentials

Contact personnel • Proper training for technical service


delivery, unrealistic customer
expectations & unexpected service failure

3.10.3 Customer in Service Encounter

 The customer perception about the service may

 Generate value for service organization

 Result in repeat purchase of service product

 Pass good word of mouth

 Service encounter may deal with

 Customer’s body or mind

 Customer’s possessions

 A customer may drive service encounter by his / her expectations and


attitudes

 Economizing customer who wants to maximize the value obtained


from service
 Personalizing customer looking for gratification

 Convenience customer who is willing to pay extra for personalized &


hassle free service

 Ethical customer when customer feels a moral obligation to patronize


socially responsible firms

Customer’s physical presence over longer period in service organization influences


the judgment & perception about quality of service.

3.10.4 Service Provider in Service Encounter

• Service provider can be of various types.

Service provider Customer

1. Servicer provider: A human being


– Customer expects courtesy, respect, safety & comfort
2. Service provider: A machine
– Convenience & ease of usage of self-service technology
– Clear instructions education on how to use
• Service provider represents the organization
• Drives the service delivery system
• Looks service encounter & processes from the customer’s viewpoint
• Should have personality attributes

 Flexibility , tolerance for ambiguity empathy for customers

 Other attributes age, education, product related knowledge, sales


training & intelligence
• Good interpersonal skills to ease customers concerns about the process

• Service provider expects from customers

 Courtesy from customers

 Appreciation from customer

 Right information from customer

• Service provider expects from service organization

 Appreciation from fellow members & management

 Training regarding innovation & flexibility to recover during


unexpected service failure

 Clear instructions regarding the discretion

3.10.5 Service Delivery System

The following points help in facilitating a satisfactory service encounter.

 Clear rules and regulations and procedures

 Culture of the organization

 Proper equipment, processes & procedures

3.10.6 Service Profit Chain

A service organization considers all the above points to improve the profitability
and or revenue growth. Such improvement is seen when an organization has loyal
customers which gives repeat business.

The customers will appreciate service when employees perceive a strong service
orientation and when employees are satisfied with workplace support like
Information Technology and improvement given to make decisions related to
customer service. Hence, the customer and the employee can form perceptions
about organizational effectiveness which are related and represented as satisfaction
mirror as shown in Figure 3.20.

FIGURE 3.20: RELATION BETWEEN PERCEPTIONS AND


CUSTOMER AND EMPLOYEE ABOUT SERVICE
EFFECTIVENESS – SATISFACTION MIRROR

The relationship between employee satisfaction, employee retention, service value,


customer satisfaction, customer loyalty and profitability and growth of a service
organization can be linked in the service profit chain as presented in Figure 3.21.
FIGURE 3.21 SERVICE PROFIT CHAIN

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