IT Service System Design

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Questions and Answers

What is the primary risk of not meeting service expectations?

  • Increased customer loyalty
  • Improved buyer-supplier relationship
  • Undermining the buyer-supplier relationship (correct)
  • Higher customer satisfaction

Which factor does NOT affect customer expectations?

  • Personal beliefs (correct)
  • Past experiences
  • Operating requirements
  • Word of mouth

How can a company effectively address the satisfaction/service quality gap?

  • Maintain a fixed communication strategy
  • Engage in constant measurement and active communication (correct)
  • Reduce customer interaction
  • Measure customer satisfaction sporadically

What attitude should service providers adopt to ensure success?

<p>Deliver services with complete dedication (D)</p> Signup and view all the answers

What is the effect of past experiences on customer service expectations?

<p>They may create unrealistic expectations (A)</p> Signup and view all the answers

What can occur if a company does not resolve the gap between customer expectations and actual service provided?

<p>Additional gaps in the customer-experience system (C)</p> Signup and view all the answers

Which scenario best describes the Translation/Specification Gap?

<p>A business requires clients to have unnecessary certifications. (B)</p> Signup and view all the answers

What leads to the Performance/Service Delivery Gap?

<p>Delivering services below established norms (D)</p> Signup and view all the answers

What is a common effect of the Communication Gap?

<p>Overpromising and underdelivering services (C)</p> Signup and view all the answers

How do customers typically contribute to the Perception Gap?

<p>By interpreting results inconsistently with reality (B)</p> Signup and view all the answers

What must service systems be designed for to help avoid value gaps?

<p>Visibility and traceability (A)</p> Signup and view all the answers

What is indicated by a company delivering only 90% of shipments on time despite a 98% standard?

<p>A performance/service delivery gap (B)</p> Signup and view all the answers

Which strategy can help mitigate the Communication Gap?

<p>Providing exactly what is promised (B)</p> Signup and view all the answers

What is the first core step in orchestration?

<p>Selecting Team Members (C)</p> Signup and view all the answers

Which skills are predominantly required for selecting team members?

<p>Analytical and left-brain skills (D)</p> Signup and view all the answers

What does building team cohesion primarily focus on?

<p>Fostering a united relationship among members (B)</p> Signup and view all the answers

What must managers do to avoid the knowledge gap?

<p>Accurately assess customer wants and needs (D)</p> Signup and view all the answers

Which of the following best defines a value gap?

<p>The gap between the provider's understanding and the customer's real expectations (D)</p> Signup and view all the answers

What is essential for the successful implementation of customer feedback systems?

<p>Integrating extensive customer feedback (C)</p> Signup and view all the answers

Which of the following is NOT a core step in orchestration?

<p>Training Team Members (C)</p> Signup and view all the answers

How can businesses ensure customer satisfaction after a product is used?

<p>By integrating customer feedback into their experience system (D)</p> Signup and view all the answers

What is the primary focus of the IT service system design?

<p>Delivering a unique positive customer experience (A)</p> Signup and view all the answers

What does the expectancy-disconfirmation model help to explain?

<p>Customer satisfaction based on initial expectations (B)</p> Signup and view all the answers

How do value propositions impact customer expectations?

<p>They shape customer expectations and influence purchasing decisions. (A)</p> Signup and view all the answers

What is the first step in designing a customer-experience system according to the content?

<p>Understanding customers' expectations (C)</p> Signup and view all the answers

What do value propositions define for a company?

<p>What the company must do to gain customers' business (B)</p> Signup and view all the answers

In the context of customer experience design, what does 'actual customer experience' refer to?

<p>How customers evaluate their experience with the service/product (A)</p> Signup and view all the answers

What role do managers play in the customer experience system design process?

<p>Using insights about customer expectations and company capabilities (D)</p> Signup and view all the answers

What is the significance of shaping customer expectations?

<p>It influences customer purchase decisions and service assessments. (D)</p> Signup and view all the answers

What is the purpose of understanding touch points in a company's value system?

<p>To enhance customer satisfaction through various interactions. (C)</p> Signup and view all the answers

What are Acquisition Touch Points primarily associated with?

<p>The comparison of services before purchasing. (D)</p> Signup and view all the answers

What happens if a customer's experience exceeds their expectations during the Utilization Touch Point?

<p>They are likely to re-purchase the service. (C)</p> Signup and view all the answers

Which moment represents the first 'moment of truth'?

<p>When a customer places a product in their cart. (B)</p> Signup and view all the answers

What role does orchestration play in a company’s approach to customer satisfaction?

<p>It helps integrate various resources to meet customer needs. (D)</p> Signup and view all the answers

Which of the following outcomes is likely when customer service does not meet expectations?

<p>Emergence of dissatisfaction and complaints. (C)</p> Signup and view all the answers

How can the two moments of truth affect customers’ expectations?

<p>They can shape and alter customers' future expectations. (A)</p> Signup and view all the answers

What are Utilization Touch Points primarily focused on?

<p>Experiencing the service in use. (D)</p> Signup and view all the answers

Flashcards

Expectancy-disconfirmation Model

A model that explains customer satisfaction by comparing initial expectations about a service with the actual experience.

Value Proposition

A statement that describes the value a company offers to its customers.

Initial Customer Expectations

The initial beliefs and assumptions customers have about a product or service before they use it.

Communicating Value Proposition

The process of shaping customers' expectations through communication and marketing efforts.

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Customer-experience System

The set of experiences a customer has when interacting with a company's product or service.

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Moments of Truth

The stages where customers form impressions about the quality of a service.

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Designing Customer-experience System

Understanding customer expectations to design a service system that meets their needs.

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Shaping Customer Expectations

Influencing customer purchase decisions and shaping their perceptions of a service.

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Selecting Team Members

Identifying and choosing individuals with the necessary skills and resources for a team.

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Assigning Team Roles

Assigning appropriate roles and responsibilities to team members based on their expertise.

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Building Team Cohesion

Creating a cohesive team by fostering harmonious working relationships between members.

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Knowledge Gap

The difference between a customer's actual expectations and the provider's perception of those expectations.

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Orchestration

The process of selecting appropriate team members, assigning roles, and building team cohesion.

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Value Gap

The difference between the perceived value of a product or service and the actual value delivered.

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Customer Feedback

Information gathered from customers to understand their satisfaction levels and expectations.

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Touch points

The specific moments or interactions a customer has with a company's products or services. These interactions shape customer satisfaction and perception of the company.

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Acquisition Touch Point

The moment in a customer's journey where they decide to purchase a product or service. Often influenced by factors like price, features, or brand reputation.

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Utilization Touch Point

The moment when the customer is actually using and experiencing the purchased product or service. This is where value-in-use is realized.

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Customer Satisfaction

The positive feeling a customer has regarding a product or service when their expectations are met or exceeded. This can lead to repeat purchases and positive reviews.

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Customer Dissatisfaction

The negative feeling a customer experiences when their expectations regarding a product or service are not met. This can lead to complaints, product returns, and negative reviews.

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Satisfaction/Service Quality Gap

This gap happens when the customer's understanding and expectations about a service aren't aligned. These expectations can be shaped by factors like word of mouth, operating requirements, and past experiences.

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Service Quality Gap

This occurs when a company's performance consistently meets or exceeds past performance, creating pressure to maintain that level. If this level isn't reached, the customer-supplier relationship suffers.

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Expectation-Disconfirmation Gap

The gap between what customers actually expect from a service and the service they actually receive.

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Managing Expectations

Understand how customer expectations are formed and actively communicate with your customers to manage them.

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Sources of Customer Expectations

Customers often form their expectations based on a combination of past experiences, word-of-mouth, and promotional materials.

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Expectation Gap

The difference between what a customer expects and what a company actually provides in terms of service speed or other aspects.

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Translation/Specification Gap

Occurs when a company emphasizes industry standards over actual customer needs. This can lead to customers feeling like they are being forced to comply with unnecessary requirements.

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Performance/Service Delivery Gap

This gap highlights the difference between a company's intended performance and its actual performance in delivering services. For example, a company might aim for 98% on-time delivery but only achieves 90%.

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Communication Gap

This gap arises when a company overpromises on its service offerings, but fails to deliver fully. For example, a company may market 24/7 support but only responds after a day.

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Perception Gap

This gap stems from customers interpreting service performance differently than how it's measured. Customers may overemphasize recent experiences, especially if they were positive.

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Customer-Experience Gaps

These are all the possible differences between what a customer expects and what a company actually delivers.

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Identifying Customer Experience Gaps

This is the first step towards improving these gaps. Analyzing customer expectations, service standards, and actual performance can reveal the root cause of the problem.

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Study Notes

IT Service System Design

  • The success of an IT service system depends on how well its design and management of the customer experience is. A good system must deliver a positive user experience.
  • An expectancy-disconfirmation model can be used to understand customer satisfaction. Customers' initial expectations of a service or product influence their satisfaction after using it.

Customer Experience System Design

  • The process starts with understanding customer expectations. Managers use this insight and the company's capabilities to create attractive value propositions. These represent promises to meet customer needs.
  • Value propositions define what a company needs to do to earn a customer's business and shape customer expectations. These expectations influence purchasing decisions and how customers assess the service experience.

Touch Points

  • Customers interact with a company's value system through various touch points. These interactions are essential to customer satisfaction.
  • Touch points are vital as they can create lasting impressions about the service/product. The phrases "moment of truth" represent the criticality of these interaction points.
  • Two types of touch points exist:
  • Acquisition Touch Points: Occur when customers learn about a service/product, like comparing network plans before purchase.
  • Utilization Touch Points: Happen when the service/product is used, like installed networks functioning as promised. The first and second moments of truth are key touch points here.

Orchestration

  • Companies rely on a network of suppliers, service providers, and customers to meet customer needs.
  • Orchestration is the skill of bringing these network resources together.
  • Core steps of orchestration:
  • Selecting Team Members: This requires identifying the right people and resources.
  • Assigning Team Roles: Assigning each member with the correct roles and responsibilities that match their expertise.
  • Building Team Cohesion: Team member relationships and chemistry are important for success.

Service Value Gaps

  • Only customers determine service/product satisfaction. Customer feedback is valuable in defining expectations.
  • Six value gaps affect customer satisfaction:
  • Knowledge Gap: Between customer expectations and the provider's understanding of those expectations.
  • Translation/Specification Gap: When industry standards don't align with customer needs.
  • Performance/Service Delivery Gap: When the actual service delivery falls short of expectations.
  • Communication Gap: When a company overpromises and underdelivers.
  • Perception Gap: When customer interpretations of results differ from reality.
  • Satisfaction/Service Quality Gap: Misalignment of service expectations and actual service received.

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