Query Experiences


Theory of Hultén "Sensory Marketing" and Pine & Gilmore "Experienced Economy"
Flurina Baumann
Flashcards by Flurina Baumann, updated more than 1 year ago
Flurina Baumann
Created by Flurina Baumann over 8 years ago

Resource summary

Question Answer
Service logic (G) To facilitate processes that support customers’ value creation in their daily activities.
Services (G) Intangible activities customized to the individual request of clients. Ex: Brewing and selling coffee at Pressbyrån.
Hidden services (G) Services that are treated as administrative, financial or technical routines and hence as non-services.
Commodities (P&G) Are materials extracted from the natural world: Animal, mineral, vegetable. Ex: Coffee bean.
Commoditization (P&G) No differentiation, margins fall through the floor; customers buy solely on the basis of price. The greatest force of commoditization is the Internet; it eliminates much of the human element in traditional buying and selling. It enables instant price comparisons and helps customers save time and money.
Goods (P&G) Tangible items sold to largely anonymous customers who buy them. Prices based on the costs of productions as well as product differentiation.
Experiences (P&G) The forth level of value (commodity, goods, service and experience), here the company has established a distinctive experience that increases its value (and therefor its price) by two orders of magnitude over the original commodity. When a person buys an experience he spends time enjoying a series of memorable events that a company stages to engage him in an inherently personal way.
Two service quality dimensions (G) Technical service quality Functional service quality
Technical service quality (G) What customers receive in the interaction with the firm - product core aspects
Functional service quality (G) How the customers get the service within the interaction with the firm
Servicescape quality (G) A third dimension of two service quality dimensions and described as the impact of the physical environment in which a service process takes place. Ex: difference in customer experience between a fast-food restaurant and a small family restaurant.
Servicing (G) Turning all elements in a customer relationship into value-supporting inputs into the customers’ processes.
Servicequal (G) Is a tool to measure how consumers experience the quality on a service. The tool is based on: tangibles, reliability, responsiveness, assurance and empathy
Line of visibility (G) Divides the part of the organization that is visible to customers (physical equipment) from the part that is invisible (know-how).
THEME-ing (P&G) • Theme the experience • Harmonize impressions with positive cues • Eliminate negative cues • Mix in memorabilia • Engage the five senses
Customization (P&G) producing in response to a particular customer desires, one way of chose from.
Mass customize (P&G) means, design interaction with each individual provides the means for efficient, effective, as (as much as possible) effortless determination of customer needs. Different sets of varieties, some way the customer find a way that fits them, ex. It’s doing only and exactly what each customer wants, when he wants it.
Transformation (P&G) Next step after experienced economy. To avoid commoditization of experienced economy. The experienced economy transform into customized experienced economy and the customer ist part of product
Enabling (G) Is part of the process of creating the conditions required for empowerment. • Management support(help employees with decision making when needed). • Knowledge support (so employees have the knowledge to make decisions). • Technical support (from technologies to provide employees with information).
word of mouth (G) Individuals sharing their positive or negative thoughts about a product or service.
Moment of truth (G) The time and place when and where the service provider have the possibility to show the quality on the services. Ex: baggage claim, transport away from airport.
Active relational model (?) When the customer search for the possibility to integrate with the service provider in order to get more value.
Total perceived service quality (G) Determined by the gap between the expected and experienced quality.
Internal marketing (G) A holistic management approach: • Ensures that employees at all levels in the firm understand and experience the business • Ensures that all employees are prepared and motivated to act in a service oriented manner
Empowerment (G) Empower the employee gives them authority the possibility to take action. Staff is more engaged in service process, more satisfied, quicker in response = good for word of mouth
Gap analysis (?) Is a model for quality problems and to help managers to understand how the service could be improved and developed.
Five components of a theme (P&G) 1. Change a guest’s sense of reality. 2. Fully change one’s sense of reality by affecting the experience of space, matter and time. 3. Engaging themes integrate space matter, and time into a cohesive, realistic whole. 4. Creating multiple places within a place strengthens themes. 5. A theme should fit the character of the enterprise staging the experience.
mass customization (P&G) means, design interaction with each individual provides the means for efficient, effective, as (as much as possible) effortless determination of customer needs. Different sets of varieties, some way the customer find a way that fits them, ex. It’s doing only and exactly what each customer wants, when he wants it.
Characteristics of service (G) 1. Intangible 2. No separation production and consumption 3. Variability (variable and difficult to control) 4. Perishability (no storage possible)
Service product (G) Consist of; Core product (ex: transportation of people), Supplementary services (ex: chairs), Delivery processes (ex: Bus).
types of expectations (G) Fuzzy expectations Explicit expectations Implicit expectations
Fuzzy expectations (G) The customer wants the supplier to solve his problem but does not know how
Explicit expectations (G) Realistic or unrealistic expectations (but clear in mind of customer) what a service can/should provide
Implicit expectations (G) Taken for granted features of a service
Employee branding (G) The employee is the carrier of the brand, the employees behaviour affects the brand. An experience is often affected by the employees.
Experienced based service (P&G) To spend time and enjoy a series of memorable events that a company stages, it has a beginning and an end, engages and moves people in an individual way, involves investment of time for the consumer.
ING the thing Making the service to a verb. The customer can experience the service and not only consume it.
Experience realms (P&G) Passive attendance "being there" Active attendance "co-producer" Absorb "comes to" Immerse "go into"
experience realm Entertaining (P&G) "to enjoy" Strong absorbation of the guest but passively involved -read a magazine -watch a movie
experience realm Esthetic (P&G) "to be" customers are immersed in a event but have little effect on it. leaving the environment untouched. -standing at grand canyon -visit a museum
experience realm Educational (P&G) "to learn" guests are absorbed and have to actively be part of it. -listen to a lecture
experience real Escapist (P&G) "to do" guests are completely immersed and actively involved -simulator rides -rafting
Transactional mode (?) Customers do not appreciate contacts from the supplier/service provider.
Active relational mode (?) Customers are looking for opportunities to interact with the supplier/service provider.
Passive relational mode (?) Customers are looking for the knowledge that they could contact the supplier/service provider if they wanted to.
Part time marketers (?) Every employee in every position should be part of marketing process. They should carry the marketing strategy even if they are not working in marketing team.
Six dimensions of fee (P&G) • Entry fee – payment to enter a place or event •Per-event fee – payment to participate in an event •Per-period fee – payment for a set time •Initiation fee – initial payment to take part in an experience •Access fee – payment to get entrance •Membership fee – payment to take part in a group’s experiences.
3S-Model customer satisfaction (P&G) Gap of what the customer expects to get and what they remark he gets.
3S-Model customer sacrifice (P&G) What e customer decides for and what he actually wanted (was er opfert)
3S-Model staging customer surprise (P&G) Customer surprise Customer sacrifice Customer satisfaction
3S-Modell Customer surprise (P&G) Difference between what the customer gets to perceive (experience) and what the customer expects to get
Approaches to customization Transparent customization (repeat again) - company interacts directly with customers to determine what they need.
Approaches to customization Collaborative customization (either-or) - firms produce a standard product, but this product is customizable in the hands of the end user (can alter the product themselves)
Approaches to customization Adaptive customization (sort-through) - firms present a standard product differently to different customers (packed specially for each customer)
Approaches to customization Cosmetic customization (form-of) - firms provide individual customers with a unique offering without letting them know that it is customized for them (Google AdWords)
customer suspense (P&G) Is the gap between what the customer remembers from past surprises and what he does not yet know about upcoming events. What customer does not yet know – What customer remembers from past
4 forms of theater (P&G) Street - Setting that cannot be controlled. Ex: to sell something. Improve - Involves imagination and creativity. Ex: quickly handle a problematic situation Matching - Piecing together portions of work. Ex: planning performance in a meeting Platform - Knowing what to do and say. Ex: speaking to supply partners.
six dimension of overall impression (P&G) 1. Time - traditional, modern or futuristic representations of the theme 2. Space – city/country, east/west, indoor/outdoor representations 3. Technology – handmade/machine-made representations 4. Authenticity – original or unoriginal representations 5. Sophistication – luxurious/cheap representations 6. Scale – representing the theme as grand or small.
cues (P&G) Are signals found in the environment or in the behaviour of workers, which create a set of impressions? They trigger an impression, which fulfils the theme in the customers mind. The cues must support the theme. There are mechanic (senses), humanic (generated by human) and negative cues.
Four parts of Enactment model (P&G) -Drama = Strategy -Script = Processes -Theatre = Work -Performance = Offering
Enactment model Drama (P&G) Is central to the whole structure of performance. It consists of a written text, scenario, instruction, plan or map. The drama can be taken from place to place or time to time independent of the person or people who carry it. Drama depicts the theme of the experience for internal consumption, telling the actors what they should do. On the bare stage of business, drama is strategy, central to what an enterprise does but expressing itself through a wide variety of means, such as strategic visions, mission statements, business plans
Enactment model Script (P&G) It is all that can be transmitted from time to time and place to place; the basic code events that pre-exist any given enactment. The script then transmits the drama in ways that transcend specific moments, instances, or conventions. In business, script is the processes, the codified approaches that an enterprise uses to enact its strategy. Employees must learn the script, identify its subtext (ideas not explicitly stated in the strategy), and refine it for production, modifying it as required to ensure the best possible performance.
Enactment model Theater (P&G) Is the event enacted by a specific group of performers; what the performers actually do during production. In other words, theatre embodies both the internal work of those who perform the production and the outward representation of that work to the audience - both the function and the form that bring the drama and its script to life. Theatre connects the drama and script to customers by staging a performance that engages them as an audience. Theatre is the work.
Enactment model Performance (P&G) Is the whole constellation of events, most of them passing unnoticed, that take place in/among both performers and audience from the time the first spectator enters the field of performance - to the time the last spectator leaves. Performance subsumes each of the other dimensions of enactment, theatre, script and dram. Performance is the offering, the economic value businesses create for customers.
Demand for service perspectives (G) Customer-driven (customers are more demanding) Competition-driven (service used to differentiate) Technology-driven (it is easy to create new services)
Service perspective (G) Every business can be a service business. It is a strategic choice to be a service business and not dependent on the good the company is providing. So then the company should organise themselves as a service company to be more successful because the customer are more satisfied. Explanation
Service competition (G) A competitive situation where there is a core solution for success. Different service managements work together with the core solution to create a total service offering which determines if the firm will be successful or not.
Service from companies perspective (G) Companies often overlook services and see them as a basic aspect of the product rather than a value-creating experience. The service (also means just service additional to a good) should be very important for the company
Service from customers' perspective (G) Customers do not buy the benefits of goods and services but they also buy the skills of the company and this is what the customer experience
Consumption of service (G) In service the process of consumption is more important than outcome consumption. The services are co-created in the moment of truth, when the service is carried out with the employee and the customer working together.
Moment of truth (G) The actual delivery of the promise takes place here. The employees of the firm directly interact with the customers. The concept of moment of truth means that this is the time and places the service provider has the opportunity to demonstrate to the customer the quality of its services.
Traditional management perspective (G) This means product-based value (value-in-exchange), short-terms transactions, core product quality and production of technical solution. Service is insignificant.
Service management perspective (G) This means total value (value-in-use), long-term relationships, total customer perceived quality, develop total perceived quality and supporting customer value as the key process.
Customer perceived value (G) Value is created and perceived by customers in activities, processes and interaction with service providers when using a service.
Quality of service (G) An excellent service process creates a distinct and sustainable competitive edge, which differentiates from its competitors. Quality of outcome is for goods.
Managing service quality (G) Quality development is a process in which everyone in the organisation has to be involved. Exceed the customers’ expectations.
Service recovery (G) The way a firm manages service recovery forms a platform for strengthened or weakened customer relationships. It should be easy for the customer to complain and the company should take action as soon as possible.
Managing a service offering (G) 1. Develop a service concept 2. Develop a basic service package (core service, enabling services and enhancing services) 3. Develop an augmented service offering (accessibility of service, interactions, customer participation) 4. Manage image and communication
Service branding (process) (G) Wanted brand identity is influenced on one hand of the marketing communication followed by brand awareness and on the other hand the customer experience with service process followed by brand fullfillment
Social media (G) Very fast spreading of rumours and the information gathering about product/service/company and offering
Relationships (G) A relationship is developed when a customer perceives that a mutual way of thinking exists between customer and supplier or service provider. These form the relationship include: Trust, satisfaction, commitment and loyality
Service pricing strategy (G) Difficult to calculate, how do you define how many “units” of service that have been consumed? Sometimes customers value the service more when delivered faster.
Relational customer (G) Once a relationship has been established, customers are customers on a continuous basis and they should be treated as such regardless of whether they are making a purchase or not.
Marketing objectives and level of customer commitment (G) 1. Get customers – To make customers choose the firm’s offerings over those of the competitors’. (Makes a trial purchase) 2. Keep customers – To make customers satisfies with what they have bought so that they decide to buy again. (A share of the “customers’ wallet”) 3. Grow customers – Create a trusting relationship and an emotional connection with the customers. (A share of the “customers’ heart and mind”)
Negatives of strong commitment (G) Forgetting the surrounding marketplace, lock-in effect, misused trust.
Customer loyalty (G) A firm has go to beyond what normally can be described as good service to create loyalty. The goal should be to gain complete trust at all times.
Assessing the value of loyal customer (G) Must not assume that loyal customers are always more profitable than those making one-time transactions. Costs – Not all types of services incur heavy promotional expenditures to attract a new customer. At times walk-in traffic it more important. Revenue – Large customers may expect price discounts in return for loyalty. Revenues don’t necessarily increase with time for all types of customers.
Service personell (G) Source of customer loyalty and competitive advantage.
The service-brand-value triangle
The internal market (G) The employees are the first market. An active, coordinated and goal-oriented approach to all employee oriented efforts. An emphasis on the need to view people, functions and departments internal to the firm as internal customers.
Internal marketing (G) A holistic management approach. Ensures that employees at all levels in the firm understand and experience the business, and are prepared and motivates to act in a service-oriented manner.
Service system model (G)
Disintermediation (P&G) Companies, such as Dell, generally sidesteps retailers, distributors and agents to connect directly to the end consumer. A result is decreased employment in these intermediaries.
Blurring boundaries of realms (P&G) Eduscapist= education + escapist (changing context, e.g. practice) Edusthetic= education + estetic (fostering application) Escasthetic = escapist + estetic (altering state) Entersthenetic= entertainment + esthentis (having presence) Escatainment= escapist + entertainment (creating catharsis)
Experience orchestration (P&G) Is the staging of rich, compelling, integrated, engaging and memorable events. These events are called experiences in this book.
A theme (P&G) A theme is what the consumers organize their impressions and experiences around. Well-orchestrated themes acts as the dominant idea which organize people, or as underlying concepts for every element in the experience. This has become as much part of doing business as product or process design.
A motif (P&G) A motif is the outward manifestation of the theme. I.e. the means through which the underlying theme can tell a story and takes its expression in the business. Is can, but does not have to, be the same as the theme.
Sensory stimuli (P&G) The sensory stimulants that accompany an experience must support and enhance its theme. The more effectively an experience engages the senses, the more memorable it will be.
Customer-unique-value (P&G) the portal through which experiences reach individual customers. Can be: -specific to individual customer (particular moment for this precise customer. -particular in its characteristic (this customer individual need) -singular in its purpose to benefit customer (be only exact what customer wants)
Modularization (P&G) equips a company to mass customize this by connect different elements: -modular architecture (a set of module linking system) -environmental architecture (design tool, match customer need with company's capability)
Fully disclose (P&G) different approaches to designed interaction (more on a personnel basis): -Approach: interaction with the customers to a unique experience by involving the ways in which someone sorts through its menu or catalogue -progressively reveals: possibility to segment catalogue. -Deliberately conceals: design tool for customer
Variety (P&G) producing and distributing product choices to outlets in the hope that some customer will come along and buy them.
wear-out-factor (P&G) something is old an need to be freshen up
Act of acting (P&G) It is this that in the end differentiates memorable experience from ordinary human activity.
Four acting techniques (P&G) Play: about having fun, with works as well as customers put on stage for the enjoyment of everyone. Make their day: Focus on customer, make everything to create a wonderful memorie Be there: Have to present (nothing else important) Choose your attitude: Acting is about choosing how to be in front of audience
Journaling (P&G) Documenting daily events in a diary and the decomposing each event into potential choices for future work,
Charting (P&G) Creating a map of the actors chosen behaviours that overlay the script, line by line, scene by scene or
Relationship mapping (P&G) Creating diagrams that assess the relationship between each onstage character.
Learning relationship (P&G) Involving customers in relationship where the supplier can learn from customers habbit
Learning curve (P&G) Learning relationship is leading to customer loyalty. Customers do not tend to switch provider if he or she likes the provider. The more information the company learns about a customer, the more loyal the customer will be
Collaborative customization (P&G) Collaborative customization work with individual customers to change first the representation of the product and then, once the customer figures out his true needs, the product itself.
Four forms of theater: Improved theater (P&G) Dynamic change in performance and dynamic change in script. Ex. Salesperson must create a whole new offering. When they must handle with new unforeseen situations.
Four forms of theater: Platform theater (P&G) Stable change in performance and stable change in script. The performance is separated from the audience. Ex. company interact with suppliers. Or factory's production process.
Four form of theater: Matching theater (P&G) Stable change in performance and dynamic change in script. Film = production and then possibility to cut and split. Ex. Internal communication. End product results piecing together distinct portions of work into unified whole.
Four forms of theater: Street theater (P&G) dynamic change in performance and stable change in script. Every move is part of routine but the order of routine isn't planned. Ex: sales process (script) but with different customers (performance)
Roles in production Producer (P&G) explore what leverage points in the economy they can exploit for their own strategic advantage. Is responsible for: financial backup, products (what to stage), choosing actors and nature of stage
Roles of production Directors (P&G) Assists in making strategy. An internal planing or external consultant. Researches and analysis the economic environment
Roles of production Scriptwriter (P&G) People who develop the script (processes)
Roles of production Technicians (P&G) Deal with the operating environment of the theatre = work Set designer, property manager, costume designer
Roles of production Stage crew (P&G) Document every on stage move of anybody while production. They are logistician.
Roles of production Casting director (P&G) Fills the role with the right actor/employee. HRM
Effectual transformation (P&G) when goods are tangible, a services intangible, experiences memorable and commodities are fungible (ombytliga).
Sustain transformation (P&G) companies store commodities in bulk, inventory goods after production, deliver service on demand and reveal experiences over a period of time.
Individual transformation (P&G) commodities are natural, goods standardized, services customized and experiences inherently personal. Because an experience is inherently personnel, two people can’t have the same.
Wisdom (P&G) Wisdom is defined as the quality of being wise, especially in relation to conduct and the choice of means and ends, combination of experience and knowledge with the ability to apply them judiciously, sound judgment, prudence and practical sense.
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