McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

Chapter

12 Customers’ Roles in Service Delivery

• The Importance of Customers in Service Delivery

• Customers’ Roles• Self-Service Technologies—The Ultimate in

Customer Participation• Strategies for Enhancing Customer

Participation

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

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/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

Table 12.1

Levels of Customer Participation across Different Services

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

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/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

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/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

Figure 12.2

Customer Roles in Service Delivery

Productive Resources

Contributors to Quality and Satisfaction

Competitors

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

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/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

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/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

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/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

Figure 12.3

Services Production Continuum

1 2 3 4 5 6

Gas Station Illustration1. Customer pumps gas and pays at the pump with automation2. Customer pumps gas and goes inside to pay attendant3. Customer pumps gas and attendant takes payment at the pump4. Attendant pumps gas and customer pays at the pump with automation5. Attendant pumps gas and customer goes inside to pay attendant6. Attendant pumps gas and attendant takes payment at the pump

Customer Production Joint Production Firm Production

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

Figure 12.4

Strategies for Enhancing Customer Participation

EffectiveCustomer

Participation

Recruit, Educate,and Reward Customers

Define CustomerJobs

Manage theCustomer

Mix

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

Strategies for EnhancingCustomer Participation

• Define customers’ jobs– helping himself– helping others– promoting the company

• Individual differences:– not everyone wants to participate

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

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

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved

Table 12.2

Characteristics of Service that Increase the Importance of Compatible Segments