Service Management Worksheet

Original Work Please!CASE STUDIESResource: Service Management, Ch. 4Read case studies 4.1 and 4.2 in Ch. 4 of Service Management: Operations, Strategy, Information Technology (pp. 101-112).Answer the questions at the end of each case study using 100 words or more (600 or more words for all 6 questions).Format your paper according to APA guidelines.Click on the Assignment Files tab to submit your assignment.I have included the worksheet needed for this assignment and have also provided the pages and case study needed.


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Case Studies Worksheet
ISCOM/386 Version 4
University of Phoenix Material
Case Studies Worksheet
Read the following case studies: Service Management: Operations, Strategy, Information Technology, Ch. 4 Case Studies 4.1 and 4.2 on pages
Answer each of the following case study questions in 100 words or more.
Case 4.1 Amy’s Ice Cream
1. Describe the service organization culture at Amy’s Ice Cream.
2. What are the personality attributes of the employees who are sought by Amy’s Ice Cream?
Copyright © 2016 by University of Phoenix. All rights reserved.
Case Studies Worksheet
ISCOM/386 Version 4
3. Design a personnel selection procedure for Amy’s Ice Cream using abstract questioning, a situational vignette, and/or role playing.
Case 4.2 Enterprise Rent-A-Car (ERAC)
1. How has Enterprise Rent-A-Car (ERAC) defined its service differently than that of the typical national car rental company?
2. What features of its business concept allow ERAC to compete effectively with the existing national rental car companies?
Copyright © 2016 by University of Phoenix. All rights reserved.
Case Studies Worksheet
ISCOM/386 Version 4
3. Use the service profit chain to explain the success of ERAC.
Copyright © 2016 by University of Phoenix. All rights reserved.
Resource: Service Management, Ch. 4
Read case studies 4.1 and 4.2 in Ch. 4 of Service Management: Operations, Strategy, Information
Technology (pp. 101-112).
Answer the questions at the end of each case study using 100 words or more (600 or more words
for all 6 questions).
Format your paper according to APA guidelines.
Click on the Assignment Files tab to submit your assignment.
I have copied the pages needed for this assignment so that it would be easier to do.
TABLE 4.4 Examples of Unethical Behaviors in Customer-Contact Settings
Source: Adapted from Charles H. Schwepker, Jr. and Michael D. Hartline, “Managing the Ethical Climate
of Customer-Contact Service Employees,” Journal of Service Research 7, no. 4 (May 2005), p. 378.
Schwepker and Hartline propose that both formal controls (enforcement of ethical codes and
punishment for ethical violations) and informal controls (discussion of ethics, internalization of a code of
ethics, and ethical climate) are central to promoting ethical behavior and will lead to a commitment to
service quality and job satisfaction. Formal controls are necessary to set boundaries for what is
considered acceptable behavior. The social and cultural climate created via informal controls ensures
that employees monitor and regulate their ethical behavior individually and within work groups.9
The Customer
Every purchase is an event of some importance for the customer, whereas the same transaction usually
is routine for the service provider. The emotional involvement that is associated with the routine
purchase of gasoline at a self-serve station or an overnight stay at a budget hotel is minor, but consider
the very personal and dramatic roles played by a customer taking an exotic vacation or seeking medical
treatment. Unfortunately, it is very difficult for bored contact personnel, who see hundreds of
customers a week, to maintain a corresponding level of emotional commitment.
Expectations and Attitudes
Service customers are motivated to look for a service much as they would for a product; similarly, their
expectations govern their shopping attitudes. Gregory Stone developed a now-famous topology in which
shopping-goods customers were classified into four groups.10 The definitions that follow have been
modified for the service customer:
1. The economizing customer. This customer wants to maximize the value obtained for his or her
expenditures of time, effort, and money. He or she is a demanding and sometimes fickle
customer who looks for value that will test the competitive strength of the service firm in the
market. Loss of these customers serves as an early warning of potential competitive threats.
2. The ethical customer. This customer feels a moral obligation to patronize socially responsible
firms. Service firms that have developed a reputation for community service can create such a
loyal customer base; for example, the Ronald McDonald House program for the families of
hospitalized children has helped the image of McDonald’s in just this way.
3. The personalizing customer. This customer wants interpersonal gratification, such as recognition
and conversation, from the service experience. Greeting customers on a first-name basis always
has been a staple of the neighborhood family restaurant, but computerized customer files can
generate a similar personalized experience when used skillfully by frontline personnel in many
other businesses.
4. The convenience customer. This customer has no interest in shopping for the service;
convenience is the secret to attracting him or her. Convenience customers often are willing to
pay extra for personalized or hassle-free service; for example, supermarkets that provide home
delivery may appeal to these customers.
The attitude of customers regarding their need to control the service encounter was the subject of a
study investigating customers’ decision-making processes when they were confronted with the choice
between a self-service option and the traditional full-service approach.11 Customers who were
interviewed appeared to be using the following dimensions in their selection: (1) amount of time
involved, (2) customer’s control of the situation, (3) efficiency of the process, (4) amount of human
contact involved, (5) risk involved, (6) amount of effort involved, and (7) customer’s need to depend on
It is not surprising that customers who were interested in the self-service option found the second
dimension (i.e., customer’s control of the situation) to be the most important factor in choosing that
option. The study was conducted over a variety of services, ranging from banks and gas stations to
hotels and airlines. Services competing on a cost leadership strategy can make use of this finding by
engaging the customer as a coproducer to reduce costs.
The Role of Scripts in Coproduction
In the service encounter, both the provider and the customer have roles to play in transacting the
service. Society has defined specific tasks for service customers to perform, such as the procedure
required for cashing checks at a bank. Diners in some restaurants might assume a variety of productive
roles, such as assembling their meals and carrying them to the table in a cafeteria, serving themselves at
a salad bar, or busing their own tables. In each case, the customer has learned a set of behaviors that is
appropriate for the situation. The customer is participating in the service delivery as a partial employee
with a role to play and is following a script that is defined by societal norms or implied by the particular
design of the service offered.
Customers possess a variety of scripts that are learned for use in different service encounters. Following
the appropriate script allows both the customer and the service provider to predict the behavior of each
other as they play out their respective roles. Thus, each participant expects some element of perceived
control in the service encounter. Problems can arise if customers abuse their script. For example, upon
finishing a meal at a fast-food restaurant, a customer is expected to clear his or her table, but if this
script is not followed, an employee must do the task.
Diners who serve themselves enjoy an opportunity to customize their meals.
FIGURE 4.3 Success Factors Influencing Various Types of Service Encounters
Acceptance of new technology that replaces a human service encounter can take time while customers
learn the new script. What once was a “mindless” routine service encounter now requires some effort
to learn a new role. For example, the introduction of self-scanning checkout machines at supermarkets
and home improvement stores requires an attendant nearby to help customers through the new
process. When customers learn their new script and grow to appreciate the reduced checkout lines, the
dedicated attendant might no longer be needed and the full benefit of the self-checkout investment will
be realized.
Teaching customers a new role can be facilitated if the transition becomes a logical modification of past
behavior. Public acceptance of the Windows operating system for PCs can be attributed to the fact that
all applications share the same interface; thus, only one script must be learned.
Summary of Service Encounters
Our discussion of the service encounter triad has focused exclusively on interactions between human
beings. Figure 4.3, however, shows that the service provider could be a machine serving a human being
(e.g., ATM), a machine serving another machine (e.g., Electronic Data Interchange), or a human being
serving a machine (e.g., elevator repair and maintenance). In this era of the Internet, the substitution of
technology for human service providers is becoming commonplace. Almost every service firm has built a
website for its customers—with financial services leading the way. Figure 4.3 presents some success
factors for each category of service encounter.
Creating a Customer Service Orientation12
A study of 23 branch banks revealed a high correlation between customers’ and employees’ perceptions
of service quality. Each dot in Figure 4.4 represents data from a different branch bank. Employees were
asked: “How do you think the customers of your bank view the general quality of the service they
receive in your branch?” Customers were asked: “Describe the general quality of the service received in
your branch.” Both groups graded service on the same six-point scale.
Further analysis showed that customers perceived better service in branches where employees reported
the following:
1. There is a more enthusiastic service emphasis.
2. The branch manager emphasizes service as personnel perform their roles.
FIGURE 4.4 Relationship between Customer and Employee Perceptions of Customer Service
Source: Benjamin Schneider, “The Service Organization: Climate Is Crucial,” Organizational
Dynamics, Autumn 1980, p. 62. Copyright by Benjamin Schneider. All rights reserved.
3. There is an active effort to retain all customer accounts, not just those of large-account holders.
4. The branch is staffed with sufficient, well-trained tellers.
5. Equipment is well maintained, and supplies are plentiful.
In addition, when employees described their branch as one in which the manager emphasized customer
service, customers not only reported that service was superior but, more specifically, that:
1. Tellers were courteous and competent.
2. Staffing levels were adequate.
3. The branch appeared to be well administered.
4. Teller turnover was low.
5. The staff had positive work attitudes.
From this study, it appears that when employees perceive a strong service orientation, customers report
superior service. Creating a customer service orientation results in superior service practices and
procedures that are observable by customers and, further, seem to fit employee views of the
appropriate style for dealing with customers. Thus, even though employees and customers view service
from different perspectives, their perceptions of organizational effectiveness are positively related.
This relationship that develops between the customer and the employee is shown in Table 4.5 as a
satisfaction duality. For example, after a bank employee gets to know a customer, the cost of serving
that customer decreases because time is saved in identity verification and needs can be anticipated
(e.g., purchase of a certificate of deposit when money market balance becomes excessive). The loyal
customer values this improved productivity and more personalized service. Both parties enjoy the
satisfaction of a more human relationship.
TABLE 4.5 Satisfaction Duality
The satisfaction duality also suggests a lesson for management. The way management relates to the
contact personnel (or internal customers) is reflected in how the external customers are treated.
Service Profit Chain13
The service profit chain proposes a relationship that links profitability, customer loyalty, and service
value to employee satisfaction, capability, and productivity. Figure 4.5 shows that profitability and
revenue growth are derived from loyal customers. Loyal customers, in turn, result from satisfaction that
is influenced by the perceived value of the service. Satisfied, committed, capable, and productive
employees create service value. Satisfied and loyal employees begin with selection and training, but
require investment in information technology and other workplace support that allow decision-making
latitude to serve customers.
1. Internal quality drives employee satisfaction. Internal service quality describes the environment
in which employees work and includes employee selection and development, rewards and
recognition, access to information to serve the customer, workplace technology, and job design.
At USAA, a financial services company serving the military community, for example, a telephone
service representative is supported by a sophisticated information system that puts complete
customer information files on his or her monitor when a customer gives a membership number.
The facility is headquartered in suburban San Antonio and resembles a small college campus.
Using 75 classrooms, state-of-the-art job-related training is an expected part of everyone’s work
2. Employee satisfaction drives retention and productivity. In most service jobs, the real cost of
employee turnover is the loss of productivity and decreased customer satisfaction. In
personalized service firms, low employee turnover is linked closely to high customer
satisfaction. The cost of losing a valued broker at a securities firm, for example, is measured by
the loss of commissions during the time a replacement is building relationships with customers.
Employee satisfaction also can contribute to productivity. Southwest Airlines has been the most
profitable airline consistently owing in part to its high rate of employee retention. Its turnover
rate of less than 5 percent per year is the lowest in the industry.
FIGURE 4.5 The Service Profit Chain
Source: Adapted and Reprinted by permission of Harvard Business Review. From “Putting the Service
Profit Chain to Work,” by James L. Heskett, Thomas O. Jones, Gary W. Loveman, W. Earl Sasser, Jr., and
Leonard A. Schlesinger, March–April, 1994, p. 166. Copyright © 1994 by the Harvard Business School
Publishing Corporation; all rights reserved. As adapted in James L. Heskett, W. Earl Sasser, Jr., and
Leonard A. Schlesinger, The Service Profit Chain (New York: The Free Press, 1977), Figure 2-1, p. 19.
3. Employee retention and productivity drive service value. At Southwest Airlines, customer
perceptions of value are very high, even though the organization does not assign seats, offer
first-class seating, or integrate its reservation system with other airlines. Customers place high
value on frequent departures, on-time service, friendly employees, and very low fares (60 to 70
percent lower than existing fares in markets it enters). These low fares are possible in part
because highly trained flexible employees can perform several jobs and because they can turn
around an aircraft at the gate in fewer than 15 minutes.
4. Service value drives customer satisfaction. Customer value is measured by comparing results
received to the total costs incurred in obtaining the service. Progressive Corporation, the
casualty insurance company, creates customer value by processing and paying claims quickly
and with little policyholder effort. Progressive, for example, flies a team to the scene of major
catastrophes and is able to process claims immediately, provide support services, reduce legal
costs, and actually place more money in the hands of injured parties.
5. Customer satisfaction drives customer loyalty. When Xerox polled its customers using a fivepoint scale ranging from “extremely dissatisfied” to “very satisfied,” it discovered that “very
satisfied” customers were six times more likely to repurchase Xerox products and services than
those who were just “satisfied.” Xerox called these very satisfied customers “apostles,” because
they would convert the uninitiated to their product. At the other extreme are the “terrorists,”
customers who are so unhappy that they speak out against the firm.
6. Customer loyalty drives profitability and growth. Because a 5 percent increase in customer
loyalty can produce a profit increase from 25 to 85 percent, the quality of market share,
measured in terms of customer loyalty, deserves as much attention as the quantity of share.
Banc One, a profitable bank based in Columbus, Ohio, for example, has developed a
sophisticated system to track customer loyalty by measuring the number of services that
customers use and the depth of their relationship with Banc One.
The service encounter is viewed as a triad, with the customer and contact personnel both exercising
control over the service process in an environment defined by the service organization. The importance
of flexibility in meeting customer needs has prompted many service organizations to empower their
contact personnel to exercise more autonomy.
Giving employees more discretion requires a selection process that identifies applicants with the
potential for adaptability in their interpersonal behaviors. Communication difficulties with customers
will arise even in the best of circumstances, however. Unrealistic customer expectations and unexpected
service failures must be dealt with by the contact personnel as they arise. Training to anticipate possible
situations and developing “scripts” to respond to problems are two important measures that can
contribute to the professionalism of the service providers.
Customers can be classified by their service expectations. Those who have a need for control are
candidates for self-service options. Viewing customers as coproducers suggests the use of customer
“scripts” that facilitate the service delivery and provide some behavioral predictability in the encounter.
The concept of creating a customer service orientation was discussed with reference to a study of
branch banks. In this study it was discovered that customers and contact personnel share similar views
of the quality of service delivered.
The chapter concludes with a discussion of the service profit chain, which provides an explanation for a
firm’s profitability and growth that result from the selection and development of the internal capability
of the service providers and in satisfied and loyal customers.
Service Benchmark
In the standard exchange involving a person making a complaint and one who is receiving the complaint,
usually on behalf of a commercial establishment, there are, Miss Manners has observed, two obligatory
One person must say something along the lines of: “This is the most outrageous thing that ever
happened. I can’t imagine how anyone could be so stupid. I’m going to find out exactly how this came
about, and believe me, I’m going to do something about it right away.”
And the other must say: “Look, mistakes happen. This is just not all that important. There’s no use
getting upset, because these things happen all the time. It’s not really anybody’s fault.”
Now here comes the peculiar part: The person at whom the complaint is directed gets to choose which
role he or she wants to play, and the complainer has to take the other.
Miss Manners realizes that this is a difficult concept. It must be, because those who are obliged to
receive complaints, either occasionally or as a wearisome way to earn a living, don’t seem to ha …
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