Page 193 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes 8. Internal customers of a service organisation also act as spokesperson of the organisation.

9. Influencers have most interactions or service encounters with the customers.
10. Isolated perform non-critical functions in the service firm.
10.2 Understanding and Managing Customers

By making the consumer participate in the service delivery process, the service firm harvests
both benefits and challenges. The firm benefits from shared cost effect, and is able to make do
with lesser service personnel. Additionally, customer participation makes him more responsible
to the importance of the transaction, generating empathy.

Example: Some examples of such services are executive buffet lunch and shopping in
superstores (self-service), e-shopping, entailing browsing as well as payment procedures, ATM
transactions for banks including touch screen functions as well as making payments through
cheques by using appropriate drop boxes. By using technology like the Internet, ATMs, etc., the
service firm is also able to broaden the catchments area of its market.
Conversely, by inviting customer participation, the dangers seem to be many, too. The customer
might simply be reluctant to participate, perceiving it to be bothersome and insulting.
In small towns, filling air in cycle tyres requires one end of the hand pump to be threaded on to
the valve, before the pump is manually operated. Often, to speed up the process, especially in
North Indian towns, the accepted practice is for the customer to bend down and hold the end of
the tube on the valve himself while the cycle mechanic does the rhythmic working of the air.
Many customers are disinclined to do the bending exercise and prefer to go to those shops which
have air-filling machines or where the mechanic does the task himself, without asking the
customer to assist him. It is a small example, but is true for most services. Some prefer home
delivery to self-service in modern retailing; the services of a travel agent are still popular with
some instead of browsing on the Net.
Secondly, with increasing customer participation, efficiency decreases and inconsistency creeps
in, badly affecting service delivery quality and image of the firm. It is then mandatory for the
customer to follow a ‘script’ to conform to certain standards of the transactions process. But the
challenge would be to bring the differing needs and aptitudes of different customers in line with
the scripting design. All customers may not have the knowledge or the confidence to operate
the ATMs, touch screen systems or the Internet.
Customer participation can be influenced by adroitly using communication tools to show the
bigger picture of benefits. Customers end up getting speedy service that has provision for
customisation and convenience.

Example: ATMs and booking air or rail tickets through the Internet are examples, where
24x7 banking facility can be extended with security, and from many locations.

The key factor is in successfully generating trust and faith amongst the target markets and
understanding the consumer buying behaviour.
Technology has definitely been a boon for service marketers. It has enabled them to not only
extend their market reach but also effectively persuade the customers to increase their
participation in the service delivery process. One can imagine the reaction of the customers if a

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