Chapter 5 Technology in Service
Learning Objectives The role of technology in the service encounter. Describe the emergence of self-service. Place an example of service automation in its proper category. Describe different Internet business models. Understand the importance of scalability to e-commerce success. Discuss the managerial issues associated with the adoption of new technology.
Role of Technology D. Technology-Mediated Service Encounter MRI, Optometrist, Airlines Personal Care, Professional services Financial planner Technology Customer Server D. Technology-Mediated Service Encounter E. Technology-Generated A. Technology-Free B. Technology-Assisted C. Technology-Facilitated Tech call center, House arrest monitoring ATM, Web based info, checkout scanning, airport kiosks
Evolution of Self-service Service Industry Human Contact Machine Assisted Service Electronic Service Banking Teller ATM Online banking Grocery Checkout clerk Self-checkout station Online order/ pickup Airlines Ticket agent Check-in kiosk Print boarding pass Restaurants Wait person Vending machine Online order/ delivery Movie theater Ticket sale Kiosk ticketing Pay-for-view Book store Information clerk Stock-availability terminal Online shopping Education Teacher Computer tutorial Distance learning Gambling Poker dealer Computer poker Online poker
Classification of Service Automation Fixed-sequence (F) automatic tollbooth, newspaper dispenser Variable-sequence (V) ATM, car wash, collating copy machine Playback (P) directory assistance, answering machine, spell check Numerical controlled (N) IRS Forms, animation Intelligent (I) autopilot, computer games, Doppler radar Expert system (E) car diagnostics, medical diagnosis, stock trading Totally automated system (T) telemarketing, eft, space shuttle
Self-service Technologies (SST) Does customer adoption of self-service follow a predictable pattern? frequently asked questions How do we measure self-service quality? ease of use, enjoyment, control What is the optimal mix of SST and personal service for a service delivery system? low vs. high touch How do we achieve continuous improvement when using SST? feedback (feed forward) What are the limits of self-service given the loss of human interaction? loss of social interaction
Purpose of Web-site A retail channel Amazon.com Supplemental channel Barnes & Nobel Technical support Dell Computer Embellish existing service HBR, News websites Order processing Airlines, Expedia.com Convey information Kelly Blue Book, Dr. Koop Organization membership asq.org Games treeloot.com
Internet Models Internet Access Providers AOL, MSN Portal Yahoo, Search, Directories Information Content News, Hoover’s Online Retailer amazon, garden Transaction Enablers e-trade Market Makers ebay
E-Business Models Content Provider new agencies Direct to Customer Dell, Gateway Full-Service Provider GE Supply Intermediary ebay Shared Infrastructure Airline SABRE Value Net Integrator 7-Eleven Japan Virtual Community Monster.com Whole-of-Enterprise US Federal Government
Electronic and Traditional Services
Grocery Shopping Comparison
Economics of Scalability (revenue-variable costs) Dimensions High Scalability Low E-commerce continuum Selling information (E-service) Selling value- added service services with goods Selling goods (E-commerce) Information vs. Goods Content Information dominates Information with some service Goods with support services Goods dominate Degree of Customer Content Self-service Call center backup Call center support Call center order processing Standardization vs. Customization Mass distribution Some personalization Limited customization Fill individual orders Shipping and Handling Costs Digital asset Mailing Shipping Shipping, order fulfillment, and warehousing After-sales service None Answer questions Remote maintenance Returns possible Example Service Used car prices Online travel agent Computer support Online retailer Example Firm Kbb.com Biztravel.com Everdream.com Amazon.com
Topic for Open Discussion Can an Internet service encounter be a memorable experience?