1. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 1 Chapter 12 Researching Service Success and Failure

2. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 2 Objectives 1.To emphasize the importance of researching service success and failure 2.To examine why service success is so difficult to achieve 3.To discuss methods for researching services 4.To explore creating a service quality information system

3. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 3 Outline I.Introduction II.Why Is Researching Service Success and Failure Necessary? III.Why Is Service Success So Difficult to Achieve? IV.Research Methods for Services V.Creating a Service Quality Information System VI.Summary and Conclusion

4. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 4 Why Is Researching Service Success and Failure Necessary? Determining success or failure is a key focus of service performance measurement. Success or failure information can be used to reward excellent performance, set priorities among process improvement options, and preempt customer switching behavior. In cases of extreme dissatisfaction and satisfaction, the customer is often very vocal.

5. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 5 Why Is Service Success So Difficult to Achieve? Service success is difficult because: –Services are dynamic and experiential in nature. –Services exist only when they are rendered. –Services occur in real time. The same forces contributing to unpredictable service quality complicate investigating services using traditional research methodologies. Measure service performance using a combination of methods, thereby offsetting the limitations of any single method.

6. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 6 Research Methods for Services Observational Techniques Mystery Shopping Employee Reports Survey Methods Focus Groups Experimental Field Testing Critical Incident Technique Moments of Truth Impact Analysis

7. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 7 Research Methods for Services (cont’d) Mystery shopping –an unobtrusive method of gathering data in which people pose as bona fide shoppers to observe and collect information about an organization's service performance.

8. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 8 Research Methods for Services (cont’d) The Critical Incident Technique –research method especially useful to study the service experiences of customers and frontline employees.

9. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 9 Research Methods for Services (cont’d)

10. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 10 Research Methods for Services (cont’d)

11. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 11 Creating a Service Quality Information System What to Measure –Use service blueprints as guides to structure questions, make direct observations, and ensure that all essential aspects of the service experience are covered What to Do with the Information –Uncover problem areas –Adjust service standards –Decide which activities need the highest priority

12. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 12 Creating a Service Quality Information System (cont’d)

13. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 13 Supplemental Slides Why Observational Research for Services? The Research Process –Identify and Formulate the Problem –Determine Data Needs and Sources –Choose Research Design –Design the Sample –Develop Data Collection Forms –Collect the Data –Process and Analyze the Data –Report Preparation Chapter Web Sites

14. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 14 Why Observational Research for Services? Services are dynamic, experiential processes Survey or experimental methods are not capable of fully capturing these dynamic, experiential processes Observation offers naturalistic insights into service phenomena Direct human observation does not rely on the service participants’ recall or verbal capabilities, nor does it require their cooperation

15. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 15 The Research Process

16. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 16 The Research Process (cont’d)

17. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 17 1. Identify and Formulate the Problem Most important research step –Can also be most difficult research step Problems are not always what they appear to be State as a question Don’t label symptoms of the problem as the problem The researcher also must determine why the research is needed

18. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 18 2. Determine Data Needs and Sources Identify the information needs for this problem Is secondary data available? –Internal –External Secondary data should always be sought. –Saves time & money

19. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 19 3. Choose Research Design Survey Experimental Observational

20. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 20 4. Design the Sample Key goal is representativeness Kind of sample –Probability – known chance –Nonprobability – unknown chance Sample size

21. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 21 5. Develop Data Collection Forms Four basic methods: –Self-administered –Telephone –Personal –Electronic

22. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 22 6. Collect the Data Pretesting of the main study Field work Supervision of interviewers

23. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 23 7. Process and Analyze the Data Process – Editing, coding, tabulating Analysis – Statistical interpretation via computer

24. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 24 8. Report Preparation Form of report –Written –Oral Explain the research process Interpret findings Summary section

25. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 25 Web Sites Hertz (http://www.hertz.com), p. 174 Mary Kay (http://www.marykay.com), p. 174 Southwest Airlines (http://www.southwest.com), p. 174 BizRate (http://www.bizrate.com/), p. 180http://www.bizrate.com/ Marriott Hotels (http://www.marriott.com), p. 181

26. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 26 Web Sites (cont’d) McDonald’s (http://www.mcdonalds.com), p. 181 Citibank (http://www.citibank.com), p. 181 Olive Garden (http://www.olivegarden.com), p. 181 Skype (http:// www.skype.com), p. 185