“Service Encounter 2.0”: An investigation into the roles of technology,employees and customers

The service encounter – one of the foundational concepts in service research – is fundamentally changing due to rapid evolutions in technology. In this paper, we offer an updated perspective on what we label the “Service Encounter 2.0”. To this end, we develop a conceptual framework that captures the essence of the Service Encounter 2.0 and provides a synthesis of the changing interdependent roles of technology, employees, and customers. We find that technology either augments or substitutes service employees, and can foster network connections. In turn, employees and customers are taking on the role of enabler, innovator, coordinator and differentiator. In addition, we identify critical areas for future research on this important topic.     

Zone of tolerance for banks: a diagnostic model of service quality

Service quality has become an increasingly important factor for success and survival in the banking sector. Provision of high-quality service aids in meeting several requirements such as customer satisfaction and its consequent loyalty and market share, soliciting new customers, financial performance, and profitability (Cui, C.C., Lewis, B.R., & Park, W. (2003). Service quality measurement in the banking sector in South Korea. International Journal of Bank Marketing, 21(4), 191–201.). This paper presents the bank service quality measurement in its extended form. It deals with the concept of ‘zone of tolerance’ in judgments of service quality proposed by Zeithaml, Berry, and Parasuraman (1993, The nature and determinants of customer expectations of service. Journal of the Academy of Marketing Science, 21(1), 1–12.). The ‘zone of tolerance’ is recognized in the service quality literature as representing a range of expectations and an area of acceptable outcomes in service interactions. The present study describes the zone of tolerance for young customers’ service expectations and determines the customer satisfaction level for banks. The study focusses only on the youth market to formulate long-term strategies because young customers tend to keep themselves up to date with latest technological developments. A conceptual model BANKZOT is presented in this study, and the results demonstrate that evaluation of services can be scaled according to different types of expectations – ‘desired' and ‘adequate’ – and that customers use these two types of expectations as a comparison standard in evaluating bank services. The findings reveal that young customers have a narrow zone of tolerance with regard to the services provided by the banks. The results with respect to gap analysis reveal that there was a shortfall in the service quality provided by the banks in the sample, with the largest gap being found in tangibles and empathy of service quality dimensions. The results of exploratory factor analysis reveal that the SERVQUAL model is found to be uni-dimensional in this study. The results, managerial implications, and future research implications are discussed in detail.     

Context and mobile services' value-in-use

Context is an inherent part of service use experiences that helps to understand when mobile services generate superior value-in-use for customers and are preferred to other services, but little research exists on the subject. In order to fill this void, a theoretical value framework incorporating context is proposed. The findings of 85 mobile service use situations indicate strong evidence for two types of value: context value and value-in-use. Furthermore, the paper identifies new context value categories such as uncertain conditions, refines the meanings of other context and value-in-use categories, and concludes that conditional value enhances the value of mobile services.     

Social media's contribution to customer satisfaction with services

An important recent initiative in the effective transmission of healthcare services is the establishment of the patient-centered medicine (PCM) philosophy as a mechanism for enhancing customer satisfaction. Although the goals of PCM are important, there is less understanding of the means by which service providers can promote this philosophy.

This study examines the relationship between customers’ attitude toward and use of social media, PCM, and their satisfaction with healthcare services. Data were collected from a large, urban-based pediatric office in the northeast. The sample consisted of 234 respondents who were classified as ‘e-Patients’ – that is, they reported having access to the Internet and going online for health information. A three-stage regression analysis, conducted to establish the path coefficients for each stage in the model, shows that customers’ (patients’) attitude toward social media can be an effective method to enhance PCM and, ultimately, satisfaction. The findings contribute to theory in services by exploring the challenges of managing service delivery at the interface between customer satisfaction and the role and usefulness of adopting and effectively using social media.     

Electronic and in-person service quality of hybrid services

The service industries have experienced dramatic changes in service delivery format because of fast-paced innovation in information technology. Hybrid services involve service deliveries through conventional and technology-enabled environments, each of which is complementary and non-interchangeable. However, limited research has examined consumer behavior in response to a series of relevant service episodes in different channels at different points in time. In other words, how customers perceive service quality at each service encounter and how the cumulative effect of these perceptions influences customers’ overall service value assessment and satisfaction remain unclear. This study addresses this research gap by investigating the sequential influence of e-service quality on in-person service quality in a hybrid service format in which interpersonal and computer-mediated services coexist but at different points in time. Empirical analysis shows that e-service quality directly and positively affects in-person service quality, which fully mediates the effects of e-service quality on perceived value and customer satisfaction. The sequence of service encounters matters because in-person service quality perception has a stronger effect than e-service quality on customer metrics. Cumulative quality perceptions significantly influence perceived value and overall customer satisfaction. Theoretical and managerial implications are presented in the discussion.     

From selling to supporting – Leveraging mobile services in the context of food retailing

To safeguard their existence in the face of harsh competition, food retailers have shifting their attention from goods to service. In this development, mobile services have emerged as suitable venues for intensifying companies' service orientation. To address this phenomenon, the purpose of this study is to explore and analyze how mobile services are leveraged to serve customers better in the context of food retailing. With the help of 10 case examples the perspective is extended from food retailers' in-store activities to supporting customers' processes at the pre- and post-purchase stages. As a result, a tentative framework is suggested that captures the ways in which companies can use mobile services in their strategic quest to move from selling to supporting.     

Strategic planning using service roadmaps

Although useful service planning tools exist, few focus on how to integrate service planning into business and technology planning from a longer perspective, which is essential for a firm to survive and grow in the current and future service environment. We suggest that technology roadmaps, initially developed as a long-term strategic planning tool in the manufacturing sector, can be a good solution for the service sector – and indeed are in use in the service sector under the label ‘service roadmaps'. To help more firms enjoy the benefits of the service roadmap concept, this research aims to develop a taxonomy of service roadmap forms. We investigate 93 service roadmaps and identify five dominant types. Then, we analyze the characteristics of each type to understand their current and possible future uses. Our research findings are expected to facilitate the wider use of service roadmaps as a complement to existing service planning tools.     

Developing new smart services using integrated morphological analysis: integration of the market-pull and technology-push approach

With the rise of smart services, new services are no longer generated via the traditional linear models of innovation. Rather, smart-service innovations require new frameworks to integrate the market-pull and technology-push models, which focus on both user-centric considerations and technological developments. However, current streams of research continue to merely suggest a conceptual framework. Therefore, it appears to be difficult to apply this framework into practice, due to a lack of systematic methodologies. In response, this study employs morphological analysis, a powerful tool for the systematic generation of ideas. Since the morphological analysis employs several dimensions for explaining new services and combines them to generate new ideas, it is easy to integrate the different approaches to innovations, such as market pull and technology push. A case study of smartphone application services is also conducted.     

Service encounters as bases for innovation

This article examines the factors affecting the innovativeness of service encounters – either as drivers or as barriers. The assumption is that a considerable number of innovations in service industries are initiated in service encounters and that employees are the core factor in connecting customers with the innovating organization. Based on literature studies and pilot case studies, seven propositions are proposed and tested in a qualitative, hermeneutic way in field experiments in nine service organizations. Important new results are that encounter-based innovation requires mutual empathy between employees and customers, employees investing stubbornness and time can be a driver for innovation, and several layers of management can be a barrier. In the field experiments three new factors for encounter-based innovation were found: translation, multitasking, and hyper-professionalism. The two first are drivers; the third a barrier. A model that summarizes the findings is presented.     

Using Information as a Basis for Segmentation and Relationship Marketing: A Longitudinal Case Study of a Leading Financial Services Firm

An important concern for service businesses is how to develop an appropriate segmentation and relationship marketing strategy that is tied to the value contribution of the customer base. This article presents a case study of the relationship marketing strategy for a division of a leading, worldwide financial services provider. The case firm segments customers into three tiers, using a framework similar to the one established by Berry and Parasuraman. Potential revenue from the customer is the primary segmentation variable used to assign customers to one of the three tiers, while the customer service response is tailored for each tier based upon customer information capabilities and needs. Although information is normally thought of as a supplemental service, rather than a core service, this case study shows how information is central to providing effective customer service and is a key to relationship marketing. The study also demonstrates how social and structural bonds can be used to refocus a customer's thinking from a cost perspective to a value perspective.     

Building the bottom line by developing the frontline: Career development for service employees

Service firms must remember that the way they treat their employees is exactly how those employees will, in turn, treat customers. As such, taking good care of frontline personnel should be a top management concern. One way that service employees can be shown they are valued members of the organization entails the implementation of thoughtful and organized career development programs, initiatives which help increase employees’ job satisfaction and feelings of empowerment in their customer-facing roles. Before they can become enthusiastic about meeting the needs of their customers, employees have to feel that their own needs are being met within the organization. In this regard, firm investment in frontline employee career development programs will be money well spent: they are capable of reducing employee turnover and increasing customer satisfaction, loyalty, and profitability. This article provides a conceptual model of career development which should prove useful to service managers in evaluating their own career development efforts. Also presented herein is a framework for tying together many disparate areas of career development that have heretofore been handled separately in the services literature.     

个性化服务在烟草行业的应用

随着市场经济的飞速发展，市场的经营方式及理念需要迈上新的台阶。如果在经济变革的新时代，我们还在原地踏步，仅仅利用传统的经营方式和理念来运作市场，那么我们得到的结果只有二个——淘汰。为此，本文结合烟草行业中个客户经理的实际工作，来探求如何客户经理如何做好个性化服务及客户分析，以提高客户的满意度。     

Consumers’ Behavioral Intentions Toward Self-Service Technology in the Emerging Markets

ABSTRACT

Self-service technologies (SSTs) allow customers to offer their own service encounters via the interaction of electronic service interfaces or machines rather than by interacting with a firm's service personnel. This lack of personal interaction generates doubts and queries in the minds of the people, especially those unaware or less aware of these technology-based services. Such a situation is quite prevalent in the developing nations (like India), where still a large number of people are apprehensive about using the latest technologies. In this regard, the present study aims to develop an integrated model designed to predict and explain the various factors that influence customers’ behavioral intentions to use or not to use one particular SST (i.e., ATM services). The study finds that bank customers are less innovative and less optimistic to try out new technologies. Usefulness of the technology helps in developing positive attitude toward the technology, which in turn affects customers' intentions to use that technology.     

Customer satisfaction and the strategic role of university libraries

The paper stresses the importance of listening to customers at university libraries and the need to move from a library‐based view to a customer‐based view. Largely on account of their public nature, academic libraries in Finland – where the study was conducted – have until recently, based their operations and development mainly on conventional procedures and library‐based perspectives. However, in order to better serve their own clientele, as well as their parent organizations, they need to listen to the voices of their customers, the library users. One way of ‘listening’ is through a customer survey, in this case LibQUAL – a survey instrument developed in the US for libraries. It collects data on the quality of the services, thus enabling libraries to identify areas in which service levels should be improved.     

物流服务供应链的研究——从供应到需求的视角转变

服务业的快速发展让研究学者开始重新认识服务,对服务概念的不同理解形成了不同的服务逻辑观。文章从结构、管理要素、价值创造、利益协调四个方面分析了传统物流服务供应链的理论架构,运用服务主导逻辑分析物流服务供应链,提出应当将物流服务供应链的研究视角从保障能力供应向满足客户需求转变,重视客户在物流服务供应链中的地位与作用。在此基础上,文章分析了需求视角下物流服务供应链中企业客户与服务提供商共同创造服务价值的价值创造机理与利益共享形成机制等问题,提出三个进一步研究的方向。     

A novel framework for customer complaint management

Complaining is one option available to customers to express their dissatisfaction with inadequate services. Their complaints contain valuable information for service providers to improve customer relationships and operational quality, which can ultimately enhance business profitability. Customer complaints are frequently handled at the individual level, however, which addresses the symptoms rather than the causes of customer dissatisfaction. This paper presents a framework integrating a decision tree approach, a common data mining tool, into Six Sigma methodology to analyze customer complaints in aggregate and improve service quality by identifying and addressing the underlying causes of failed service. A case study of a restaurant chain was used to demonstrate the effectiveness of the proposed framework. The results indicated a significant (60%) decrease in the number of customer complaints received. Subsequent long-term benefits can be expected.     

Chatbots and service failure: When does it lead to customer aggression

Artificial intelligence technology is changing the way services are delivered and introducing opportunities for new sources of service failure. The purpose of this paper is to examine how customers might respond (emotion- or problem-focused coping) to service failure of a chatbot when there is an option to interact with a human employee. Using data from 145 participants, we found that in a chatbot service failure context, telling a customer late in the service interaction that a human employee is available to help leads customers to engage in emotion-focused coping, resulting in customer aggression. The positive relationship between late disclosure and emotion-focused coping occurs with those who perceive low customer participation whereby they do not believe they are overly involved in co-producing and co-delivering the service. This research demonstrates how chatbot service failure in a service encounter can produce different effects on customers’ intention to engage in aggression.     

Understanding organization-customer links in a service setting in Russia

This study examines the effect of management commitment to service quality on customer satisfaction through the mediating links of service climate and core and relational service performance in a high-power distance culture. Data were collected using a survey distributed to the FLEs and customers of branches of a Russian retail bank. Study findings demonstrate that branch service climate mediates the management commitment to service quality – service performance relationship and that this indirect effect is stronger on core service performance relative to relational service performance. Contrary to expectations, our findings demonstrate the importance of relational service performance relative to core service performance as a mediator of the branch service climate – branch customer satisfaction relationship. Implications of these novel findings and future research directions are discussed.     

A supply chain management framework for services

While services represent the largest sector of the global economy, 86.8% in the United States, most supply chain management (SCM) research is focused on product flows. Executives in manufacturing firms have benefited from frameworks created to implement SCM processes, but this is not the case for their counterparts in service companies. The two most cited SCM frameworks for services have methodological and conceptual deficiencies. Drawing upon the service-dominant logic of marketing and using an empirical research approach, we developed supply chain structure maps for nine service firms. Our findings indicate that the supply chain structure maps of service companies are comparable to those in the product-based literature, which supports the service-dominant logic. Then, we identified the six key processes that constitute a framework to manage service supply chains. The customer relationship management and the supplier relationship management processes form the critical links in the supply chain, and the other four processes are coordinated through this linkage. The SCM framework for services provides direction for executives in service firms who need to increase cross-functional integration within their firms and with other members of the supply chain. For academics, 12 avenues for future research are identified.     

The smarter,the better?! Customer well-being,engagement, and perceptions in smart service systems

Smart service systems – that is, configurations of smart products and service providers that deliver smart services – are striving to increase the smartness of their offering, but potential consequences for customer well-being are largely overlooked. Therefore, this research investigates the impact of smartness on customer well-being (here, self-efficacy and technology anxiety) through (1) customer engagement with different smart service system actors (here, smart products and service providers) and (2) customer perceptions (here, personalization and intrusiveness perceptions) and their associated importance (here, need for personalization and intrusiveness sensitivity). A scenario-based experiment (n = 730) – which is preceded by a systematic review to conceptualize smartness – shows that customers perceive more personalization than intrusiveness in case of higher levels of smartness, resulting in customer engagement with the smart product and to some extent with the service provider. Via customer engagement with the smart product, higher levels of smartness stimulate self-efficacy, especially for customers with a high need for personalization. When customers' need for personalization is high and their intrusiveness sensitivity is low, higher levels of smartness also reduce technology anxiety via customer engagement with the smart product. Hence, the conclusion is: “The smarter, the better!”, whereby the relationship between smartness and well-being (here, self-efficacy and technological anxiety) is significantly influenced by customer heterogeneity. These findings help business practitioners in boosting customer well-being by increasing customer engagement through higher levels of smartness of their service system.