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53 Cards in this Set
- Front
- Back
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stages of operational competitiveness (def:)
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philiosophical viewpoint where operations move from 'necessary evil' to a a competitive advantage
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stages of operational competitiveness (stages)
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stage 1: available for service
i.operations are 'reactive' ii. primary mission- no mistakes iii. investments minimized stage 2- journeyman i. happens when competition comes into play ii. investments in tech. seen as cost savings in LR iii. operations are still secondary stage 3: distinctive competencies achieved i. firms mastered core service ii. operations now viewed level with other departments iii. technology changes from cost savings to enhancing customer experience stage 4: work class service delivery i. company's name synonomous for service excellence ii. tech becomes means to accomplish tasks that competitors can't |
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perfect world model
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to operate efficiently, a firm must be able to produce as if the mkt absorbed all outputs at a continuous rate and all input is coming in at a particular rate and with specified quality
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technical core
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place within the organization where its primary function takes place.
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focused factory concept
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operation where one part of the factory concentrates on one task
i. promotes experience and effectiveness |
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PWP
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plant within a plant
breaks up operations into sectiosn that buffer technical core |
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why is services a servuction system nightmare
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1. no way to keep inventory
2. directly linked to market (demand varies from min to min) 3. no way to decouple production from the customer 4.planning capacity is impossible |
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solutions to make servuction system compatible with service operations
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isolate technical core
-adopt different mgment -philosophies for each unit of operation -technical core should be subjected to production-lining approach -high contact areas should sacrifice efficiency if consumer wants it to production-line the whole system: using hard/soft tech to standardize service create flexible capacity increase customer participation move time of demand |
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service blueprints
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flowchart of lines visibility
i. useful bc it can show problems on paper before they occur |
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process time
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activity time/number of locations the activity is performed
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activity time
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the time required to perform one activity at on station (:where an activity is performed)
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activity based costing
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breaks down the organization int oa set of activities that converts inputs (labor, materials) into outputs
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high fixed cost to variable cost ratio
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a way of pricing that is a ratio bt fixed costs and variable costs
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economies of scale tend to be limited
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more produce, cheaper the price. cheaper the price more people buy, the more you need to produce (repeat)
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demands for service tend to be _______
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inelastic
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cross price elasticity
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the effect of a price change of a different service has on your service
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complementary elasticity
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when the price increases on a different service, and the demand of your service decreases
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substitutes
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increase the price of another service, yours demand goes up
so if theyre competing and the other services' prices go up, peeps will come to you more |
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6 criteria for price discrimination
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must have dif groups that have dif responses to price
groups must be identifiable and must be able to price differently no resale large enough group to make it worth while costs to do so< revenues obtained when done, it better not confuse current customers |
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signpost items
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items that customers buy alot and are familiar with typical price ranges (beer:)
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reservation price
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less certain than signpost items, it is the amount of value the customer puts on the perceieved benefits
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forward buying
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when RETAILERS purchase enough product on sale to carry over until the product is being sold on sale again
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emerging pricing stategies
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satisfied-based pricing
relationship pricing efficiency pricing- appeals to economically-minded consumers |
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communication strategy
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communicates the firms position strategy to is market, to EVERYONE
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communication mix
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any way to communicate to market (sponsorships to ads, publicity etc)
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integrated marketing communications
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using more than one communication tool, or using more than one repeatedly.
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3 stages of product
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intro- informational
growth and maturity- informational and pursuasion maturity and decline- persuasion and remind |
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4 ways to differentiate
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product, personell, imagery, service
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media strategies for targetting nonusers
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media ads, selling by a sales force and not service provider, and PR
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media strategy for users
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media, PR, sales force, AND through the service provider.
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3 types of staff
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type 1: efficient., quick, one time only
type 2: independent decision making needed, more complex than 1 type 3: more complex, unrepeatable |
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mistargeted communications
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when trying to advertise to a specific market and it appeals to others
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guidelines for developing service communications
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promise what is possible
develop word of mouth network relationships with customer reduce fears about service variations focus on quality differentiate service product from delivery make service easy to understand |
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3 broad categories of physical evidence
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facility exterior
facility interior other tangibles-business cards, employee appearance, uniform etc. |
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importance of packaging the service
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its conveys the customer expectations bc the way the packaging is done is physical evidence that gives the customer a quality cue and then leads to image development
also reduces risk |
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SOR model consists of three components
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set of Stimulous- elements of the physical evidence
an Organization- recipients of the stimuli (employees and customers) a set of Responses or outcomes- response to stimuli |
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review figure 9.1
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review figure 9.1
the jist of it is that the service-profit chain says that if you increase employee satisfaction, revenues will increase |
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boundary spanning roles
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when an employee has two jobs at the same time: deal with the customer (external) which relates to the internal operations
they have two main purpose, information transfer (class schedule) and representation (walk-ins) |
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3 conflicts a boundary spanner can have
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personal/role- role is not how you see yourself (gorilla little ceasars)
clien/organization- client wants you to do something thats not allowed inter-client conflicts (smokers v nonsmokers) |
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responses to stress by an employee
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avoid customer
people processing mode (transfers) add physical symbols to increase control overacting role side completely with customer |
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work facilitation
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the provision of the basic infrastructure that allows the firm to deliver their service
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interdepartmental support
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the support given by the departments that allow a firm to deliver their service
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7 tests that effective rewards systems must pass
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availability
flexibility reversibility visibility timliness contingent durability |
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2 types of intrinsic rewards
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empowerment- turning front line loose and alllwing them to take initiative
enfranchisement- allowing the employee to make his own business by giving them a compensation plan for doing a good job |
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levels of empowerment
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suggestive empowerment- when the employees are allowed to make suggestions for the firm to be better at
job involvement- gives employees the ability to look at their role and see where they fit into the org high involvement- manage themselves, train peeps, share profits, |
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7 ways to manage customer performance script
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audit your consumer performance expertise
increase share of expert consumers increase customer loyalty manage script changes effectively cope with novices manage customer and service mix use service provider strategies on your consumer |
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remote services
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when employees are involved in the process, but the consumers is limited
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self service
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when the consumer is the only one involved (ATM)
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interpersonal service
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when both consumer and employee are involved
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high contact firms
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facility location and facility layout (either have big things to do with how to efficiently get it done or these are examples of some jobs that require high contact)
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low contact
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product design
process design |
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questions to ask before implementing service scape
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what is my target mkt
what do they seek what atmosphere can i create to enhance these needs how does this atmosphere effect my target market does this atmosphere compete with the competitors |
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sight appeal
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stimuli that result in percieved visual relationships
size, shape, color etx |
