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28 Cards in this Set

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“We’ve known for a long time that Starbucks is more than just a wonderful cup of coffee. It’s the experience … ”
Customer Benefit Package (CBP) Design & Configuration
choices revolve around a
solid understanding of customer needs and target markets, and the value that customers place on attributes, such as:
Customer Benefit Package (CBP) Design & Configuration
a philosophy and a set of planning and communication tools that focus on customer requirements in coordinating the design, manufacturing, and marketing of goods or services.
QFD fosters improved communication and teamwork among all constituencies in the design process.
quality function deployment (house of quality)
translates customer wants and needs into technical requirements of a product or service through the “House of Quality”
quality function deployment
building the house of quality
Determine customer requirements through the voice of the customer (VOC).
Define technical requirements of the product or service.
Determine interrelationships between the technical requirements.
The relationship matrix defines what technical requirements satisfy VOC needs.
Customer priorities and competitive evaluation help select which VOC requirements the product should focus on.
customer reps, engineering, marketing operations, finance. working as a team for new product design
cross functional aka concurrent engineering
a type of product and process design in manufacturing. is the process by which a model (real or simulated) is constructed to test the good’s physical properties or use under actual operating conditions, as well as consumer reactions to the prototype. Some services can achieve this same result through a test market.
prototype testing.
A focus on improving the environment by better good or service design is often called green manufacturing or green practices.
Green manufacturing example: packaging for fast food restaurants.
design for environmental quality
According to G. Lynn Shostack
The design of a “service” cannot be done independently from the “process” by which the service is delivered.
A service is a dynamic, living process; it is performed and rendered.
The process by which the service is created and delivered is, in essence, the service itself.
A service cannot be stored or shipped; only the means for creating it can.
Service Delivery System Design
Service delivery system design includes the following:
Facility location and layout
The servicescape
Process and job design
Technology and information support systems
Organizational structure
creates customer’s convenience
The Internet is making physical locations less important for some information-intensive services such as Charles Schwab, Vanguard, and Scottrade.
Facility location and layout:
physical Arrangement of productive resources
Equipment, people, technology

Affects:
Eficiency
Flexibility
Mood
layout
All of the physical evidence a customer might use to form an impression.

The --------- provides the behavioral setting where service encounters take place.

Standardization of ------ and service processes enhances efficiency, especially for multiple site organizations.
servicescape
What are the three dimensions of a service scape
ambient conditions, spatial layout and functionality, signs, symbols and artifacts
manifest by sight, sound, smell, touch, and temperature; five human senses; e.g., leather chairs in the lobby, cartoon characters in children’s hospital, music at a coffee shop.
ambient condtions
how furniture, equipment, and office spaces are arranged; also streets, parking lots, stadiums, etc.
spatial layout
explicit signals that communicate an image of the firm; e.g., diplomas hanging on the wall in a medical clinic, company logos and uniforms, artwork, mission statements.
signs, symbols, and artifacts
is the activity of developing an efficient sequence of activities to satisfy internal and external customer requirements.
service process design
------------ of process flows integrate layout, technology, servicescape, and organizational structure (see Chapter 7).
flowcharts
What technology does each job require?
What information technology best integrates all parts of the value chain?
Technology ensures speed, accuracy, customization, and flexibility.
technology and support sysstems
Organize by process or by function.
Who owns the process?
Functional approach requires many different handoffs between work activities and no one owns the total process.
organizational structure of service delivery system design
focuses on the interaction, directly or indirectly, between the service provider and the customer.
service encounter design
Customer contact behavior and skills
Service provider selection, development, and empowerment
Recognition and reward
Service recovery and guarantees
principal dimensins of service encounter design
what is an example of a high contact servcie encounter design and whats an example of a low contact one
hotel check in - high. construction, package sorting and distribution - low.
refers to the physical or virtual presence of the customer in the service delivery system during a service experience.
customer contact
simply means giving people authority to make decisions based on what they feel is right, to have control over their work, to take risks and learn from mistakes, and to promote change.
Ritz-Carlton Hotel employees can spend up to $2,000 to resolve customer complaints with no questions asked.
empowerment
is any problem a customer has—real or perceived—with the service delivery system and includes terms such as service failure, error, defect, mistake, or crisis.
service upset
is the process of correcting a service upset and satisfying the customer.
service recovery