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53 Cards in this Set

  • Front
  • Back
stages of operational competitiveness (def:)
philiosophical viewpoint where operations move from 'necessary evil' to a a competitive advantage
stages of operational competitiveness (stages)
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
perfect world model
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
technical core
place within the organization where its primary function takes place.
focused factory concept
operation where one part of the factory concentrates on one task
i. promotes experience and effectiveness
plant within a plant
breaks up operations into sectiosn that buffer technical core
why is services a servuction system nightmare
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
solutions to make servuction system compatible with service operations
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
service blueprints
flowchart of lines visibility
i. useful bc it can show problems on paper before they occur
process time
activity time/number of locations the activity is performed
activity time
the time required to perform one activity at on station (:where an activity is performed)
activity based costing
breaks down the organization int oa set of activities that converts inputs (labor, materials) into outputs
high fixed cost to variable cost ratio
a way of pricing that is a ratio bt fixed costs and variable costs
economies of scale tend to be limited
more produce, cheaper the price. cheaper the price more people buy, the more you need to produce (repeat)
demands for service tend to be _______
cross price elasticity
the effect of a price change of a different service has on your service
complementary elasticity
when the price increases on a different service, and the demand of your service decreases
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
6 criteria for price discrimination
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
signpost items
items that customers buy alot and are familiar with typical price ranges (beer:)
reservation price
less certain than signpost items, it is the amount of value the customer puts on the perceieved benefits
forward buying
when RETAILERS purchase enough product on sale to carry over until the product is being sold on sale again
emerging pricing stategies
satisfied-based pricing
relationship pricing
efficiency pricing- appeals to economically-minded consumers
communication strategy
communicates the firms position strategy to is market, to EVERYONE
communication mix
any way to communicate to market (sponsorships to ads, publicity etc)
integrated marketing communications
using more than one communication tool, or using more than one repeatedly.
3 stages of product
intro- informational
growth and maturity- informational and pursuasion
maturity and decline- persuasion and remind
4 ways to differentiate
product, personell, imagery, service
media strategies for targetting nonusers
media ads, selling by a sales force and not service provider, and PR
media strategy for users
media, PR, sales force, AND through the service provider.
3 types of staff
type 1: efficient., quick, one time only
type 2: independent decision making needed, more complex than 1
type 3: more complex, unrepeatable
mistargeted communications
when trying to advertise to a specific market and it appeals to others
guidelines for developing service communications
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
3 broad categories of physical evidence
facility exterior
facility interior
other tangibles-business cards, employee appearance, uniform etc.
importance of packaging the service
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
SOR model consists of three components
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
review figure 9.1
review figure 9.1
the jist of it is that the service-profit chain says that if you increase employee satisfaction, revenues will increase
boundary spanning roles
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)
3 conflicts a boundary spanner can have
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)
responses to stress by an employee
avoid customer
people processing mode (transfers)
add physical symbols to increase control
overacting role
side completely with customer
work facilitation
the provision of the basic infrastructure that allows the firm to deliver their service
interdepartmental support
the support given by the departments that allow a firm to deliver their service
7 tests that effective rewards systems must pass
2 types of intrinsic rewards
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
levels of empowerment
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,
7 ways to manage customer performance script
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
remote services
when employees are involved in the process, but the consumers is limited
self service
when the consumer is the only one involved (ATM)
interpersonal service
when both consumer and employee are involved
high contact firms
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)
low contact
product design
process design
questions to ask before implementing service scape
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
sight appeal
stimuli that result in percieved visual relationships

size, shape, color etx