The nature of the service economy has moved past the transactional nature of services to one of experience-based relationships. Consider how Starbucks and Disney World have defined their respective services as an experience. Table 1.3 describes the features of different economies in the historical evolution from agrarian to experience. To appreciate the subtle differences, pay particular attention to the words used to describe each economy. Note that the experience economy is further divided into consumer services and business services.
Consumer Service Experience
Experiences create added value by engaging and connecting with the customer in a personal and memorable way. As businesses explicitly charge for the memorable encounters they stage, we transition from a service economy to the new experience economy. Figure 1.6 displays four types of consumer experiences characterized by the level of customer participation and level of interaction with the environment. Entertainment (e.g., watching a movie) is the least involved level of experience and escapist (e.g., scuba diving) requires the most commitment from the customer.
Consumer service experience design is based on five principles. Theme the experience is illustrated by the Forum Shops in Las Vegas that are decorated with Roman columns and where salespeople wear togas. An example of harmonize impressions with positive cues is found at the O’Hare Airport Parking Garage where each floor is painted with a distinctive color and unique music is played to help returning travelers find their parked automobiles (e.g., hard rock on the first floor and classical on the second). Eliminate negative cues is illustrated creatively by the use of talking trash containers (i.e., the container says “thank you” when an item is discarded) at a Cinemark Theater in Austin
Consumer Service Experience
Experiences create added value by engaging and connecting with the customer in a personal and memorable way. As businesses explicitly charge for the memorable encounters they stage, we transition from a service economy to the new experience economy. Figure 1.6 displays four types of consumer experiences characterized by the level of customer participation and level of interaction with the environment. Entertainment (e.g., watching a movie) is the least involved level of experience and escapist (e.g., scuba diving) requires the most commitment from the customer.
Consumer service experience design is based on five principles. Theme the experience is illustrated by the Forum Shops in Las Vegas that are decorated with Roman columns and where salespeople wear togas. An example of harmonize impressions with positive cues is found at the O’Hare Airport Parking Garage where each floor is painted with a distinctive color and unique music is played to help returning travelers find their parked automobiles (e.g., hard rock on the first floor and classical on the second). Eliminate negative cues is illustrated creatively by the use of talking trash containers (i.e., the container says “thank you” when an item is discarded) at a Cinemark Theater in Austin
Business Service Experience
For business-to-business (B2B) services, value is derived from the coproduction or collaborative nature of the relationship such as we see in a consultancy engagement. The new business service experience has three dimensions:
Co-creation of value
The customer is a coproducer of the value extracted from the relationship.
The customer is an input to the service process.
For business-to-business (B2B) services, value is derived from the coproduction or collaborative nature of the relationship such as we see in a consultancy engagement. The new business service experience has three dimensions:
Co-creation of value
The customer is a coproducer of the value extracted from the relationship.
The customer is an input to the service process.
Relationships
The relationship with the customer is of paramount importance because it is a source of innovation and differentiation.
Long-term relationships facilitate the ability to tailor the service offerings to customers’
needs.
The relationship with the customer is of paramount importance because it is a source of innovation and differentiation.
Long-term relationships facilitate the ability to tailor the service offerings to customers’
needs.
Service capability
Provide service capacity to meet fluctuations in demands while retaining quality ofservice.
Quality of service is measured primarily from the perspective of the customer.
Provide service capacity to meet fluctuations in demands while retaining quality ofservice.
Quality of service is measured primarily from the perspective of the customer.
The core experience of B2B service is one of creating, enabling, problem solving, and innovative use of information that is not consumed in the exchange, but is enhanced and remains available for further use by others. Table 1.4 presents a complete listing of both consumer and business service experiences to be found in the 21 st century, all of which rely heavily on a skilled knowledgebased workforce.
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