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Week 11 Notes.docx

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Marketing and Consumer Studies
MCS 1000

Week 11 Notes Service Staff Crucially important to the success of a service firm - Most visible - Represents company and delivers brand promise - Service staff = brand Instead of brand manager- people manager - Gain a competitive advantage - Help ensure sustainability in the marketplace Understanding that the work of service staff can be demanding, challenging and difficult - Higher performing, satisfied employees are key - Front-line work can be demanding (boundary spanners) - Often have conflicting roles - Emotional labor Conflict comes from 3 sources: - Person/role conflicts: between job requirements, and own personality - Organization/client conflicts: Follow company rules or satisfy customer - Inter-client conflicts: client to client conflict Cycle of Failure – the search for productivity COPY DIAGRAM Cycle of Mediocrity – no incentive to improve COPY DIAGRAM Cycle of Success COPY DIAGRAM What are the key barriers for firms seeking to break the cycle of failure and move in to the cycle of success? - Short sighted management - Low margins - Forced efficiency (Wal-mart) The best Candidates… - Observe Behavior: interviews, exercises - Conduct Personality Tests: Does personally match the job - Multiple, structured Interviews: different interviews - Realistic Job Previews: Expectations much match job offering Other Aspects of HR - Train Service employees actively - Empower The front line - Build high performance service delivery teams - Motivate and energize people The Service Talent Cycle for Service Firms COPY DIAGRAM Customer Value - The longer a customer stays with a firm, the more profitable that customer is to serve o Increased usage over time o Reduced Operating costs o Profits from referrals and price premium How Much Profit a Customer Generates Over Time COPY DIAGRAM Why Is Customer Loyalty Important to A Firm’s Profita
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