Service Marketing CH. 15
Service Marketing CH. 15
Service Marketing CH. 15
WORLD-CLASS SERVICE
CULTURE
GROUP 7
Describe how a service firm's internal logics impacts its service culture
These instructions from the three different departments obviously conflict with one another.
FUNCTIONAL AND
DEPARTMENTAL MINDSET
Firms are often besieged by internal conflict as departments
compete against one another for resources instead of pulling
together to provide exceptional service. The conflict that often
occurs between marketing, operations, and human resources is
a result of the different cultures which are functions of each
department’s goals, planning horizons, departmental structure,
people-management systems, and the specific individuals in each
department.
OVERCOMING THE SILO MENTALITY:
UNDERSTANDING INTERNAL LOGICS
This silo mentality isolates the department from the rest of the
organization as it pursues self-interested goals in the forms
of departmentalization and functionalism.
INTERNAL LOGICS
OPERATIONS LOGIC MARKETING LOGIC
Driven by the goal of reducing or containing costs Provide customers with options that better enable
through mass production or the use of advanced the service offering to meet individual consumer
technologies. needs.
HUMAN RECOURCES
LOGIC
Recruit personnel and develop training that
enhances the performance of existing personnel.
This model believe that: (1) location strategies, sales promotions, and
advertising drive sales revenue; and that (2) labor and other
operating costs should be kept as low as possible.
3
1 2
Observe objects and 4
Observe the current Gauge employee
artifacts. Observe what is
culture as an impartial emotions.
missing
observer.
ASSESSING THE CURRENT CULTURE OF THE SERVICE
FIRM:
OBSERVATION AND INDIRECT QUESTIONING TECHNIQUES
5 6
Conduct culture interviews
Go for a culture walk.
and surveys
a. Space allocation and office location—who gets the most a. What would employees tell their friends
space, the best offices, and who is separated from whom? about working at this organization?
b. Bulletin boards and displays—conduct a content analysis of
b. What is the one thing employees would like
what is being posted
to change?
and what it says about the organization.
c. Common areas—what are the common areas used for and c. Who are the company heroes? Why these
for whom? persons?
d. Memos and emails—what is the content, what is the tone, d. What is the employee’s favorite characteristic
and do people primarily communicate verbally or through of the company?
written communications?
e. What kinds of people would fail in this
e. Employee interaction—is there any employee interaction and
organization?
is there emotion displayed?
f. What is your favorite question to ask a job
candidate?
LEARN MORE EFFECTIVELY
GLOBAL
SERVICE
IN
ACTION
A series
ASSESSING THE
of questions that force CURRENT CULTURE OF
the firm to think about
what drives its profits THE SERVICE FIRM:
and suggests strate-
gies for competitive
CONDUCTING A
differentiation and
long-term profitability
SERVICE AUDIT
The service audit asks direct questions of front-line and top
management personnel, and requires the firm to think about
the forces that drive its current profits.
SERVICE AUDIT
THE SERVICE
AUDIT: THE
PROFIT AND
GROWTH
COMPONENT
1 2
How Does the Firm Define Does the Firm Measure Profits
Customer Loyalty? from Referrals?
3
What Proportion of the Firm’s 4
Development Funds Are Spent on When Customers Do Not
Retaining Customers as Opposed Return, Do We Know Why?
to Attracting New Ones?
THE SERVICE
AUDIT: THE
CUSTOMER
SATISFACTION
COMPONENT
5 6
Is Customer Satisfaction Data Collected in a What Methods Are Utilized to Obtain
Systematic Manner? Customer Feedback?
7
How Is Customer Satisfaction Data
Used? Is the information used at all, or
is it stuffed in the bottom drawer of a
manager’s desk?
8 THE SERVICE AUDIT:
How Does the Firm Measure Value?
THE EXTERNAL
SERVICE VALUE
COMPONENT
9
How Is Information On Customer
Perceptions of the Firm’s Value Shared
within the Company?
THE SERVICE AUDIT: THE EXTERNAL SERVICE
VALUE COMPONENT
10. Does the Firm Actively Measure the Gap between Customer
Expectations and Perceptions of Services Delivered?
13. Does the Firm Actively Pursue Strategies to Promote Employee loyalty?
REWARD STRUCTURES