Information is Service The connection between IT & Marketing. Richard T. Watson The University of Georgia

Transcription

1 Information is Service The connection between IT & Marketing Richard T. Watson The University of Georgia

2 Information is service Charles Feld former CIO Delta Air Lines Most people will tolerate misconnects and changes when they occur in the airline industry what they won t tolerate is not getting timely and accurate information. The airline business today is much more than a transportation business it's an information business, prefaced with an 'e'

3 Humans as information processors Signing Drawing/Painting Speaking Writing Embedded meaning Arabic numerals Printing

4 Information is service We are five channel information processors How we process the data from these five channels has a significant influence on our perceptions of service quality

5 Information is service Sight Smell Hear Taste Feel Water and trees Flowers Birds Delightful food Linen napkin

6 Information is service Information substitutes for supports enhances differentiates products and services

7 The revolutions Agricultural Food Industrial Goods Information Services

8 Continuing the revolution Household server Information service provider Household network National information infrastructure connection

9 The old High Service shop Professional service Interaction and customization Low Low Service Mass factory service High Labor intensity

10 The new High Service center The club Customization Low Low Mass Utility entertainment High Interaction

11 What makes services different? Intangibility Simultaneity Heterogeneity Perishability

12 How does the Web change this? The Web combines mass production and individualized customization Mass customization Treat millions of customers as if they were unique Cyberservice

13 Managing intangibility Use the Web to provide evidence Ford dealer places cameras in the service bays Use the Web to make tangible the intangible Visit the Disney Web site before the theme park

14 Managing simultaneity Customization Customized news services Customer is producer Self-service The customer is a part-time employee Parcel tracking for UPS

15 Managing simultaneity Service industrialization Service can be improved by providing less service! Levitt Switchboard automates directory assistance Visitors can find other friends and send a postcard

16 Managing simultaneity Reducing customer errors Encounter preparation Hampton Inn provides maps The encounter Enter account number twice when setting up online payment details Encounter resolution REI sends customers a copy of their order

17 Managing heterogeneity Service standardization on the Web site Full-service Web banking Electronic eavesdropping on customers conversations External customers Competitors customers DejaNews, Gomez, epinions

18 Managing heterogeneity

19 Managing heterogeneity Service quality Web polling of customers An on-line version of SERVQUAL Shorten the feedback loop to identify problems rapidly Electronic focus groups

20 Managing perishability Managing supply on the Web Airlines provide on-line purchasing of electronic tickets 24 hours a day, every day Directing demand on the Web On-line auctions to get rid of the surplus Widespread use of revenue management systems

21 Quantization of services Use information to differentiate Decompose into the smallest constituent elements Let the customer recombine Reduce price competition From perfect competition to perfect choice

22 Quantization

23 Quantization

24 Perfect choice Product choice Real and virtual inventory Virtual models Channel choice Component choice Build to order Self-aggregation

25 WebQual Quality is determined by the customer Extensive literature review Focus groups Web site designers Web site deconstruction Instrument development and refinement

26 Major aspects of Web site quality Ease of use Usefulness Entertainment Complementary relationships

27 Ease of use The degree to which a person believes that using the Web site takes little effort Response time Ease of understanding Intuitive operations

28 Usefulness The degree to which a person believes that using the Web site meets his/her needs Informational fit-to-task Tailored communication Trust

29 Entertainment The degree to which a person believes the Web site is interesting, amusing, diverting, or pleasurable Emotional appeal Visual appeal Innovativeness

30 Complementary relationships The degree to which a person believes the Web site is a substitute for traditional interactions (e.g., ordering by telephone or mailing in application forms) with the company and reflects the company s image Consistent image On-line completeness Relative advantage

31 WebQual Predicts Intention to revisit Intention to purchase

32 The data/service cycle More satisfied employees Transactions Integrated database Information Informed employees Better decisions Improved customer service Analysis tools CRM Informed customers Operational Data data stores warehouse Business intelligence system

33 Customer value shift Value Information business Traditional business Customers

34 Thinking about service marketing Integrated Internet Marketing Change dimensions

35 Integrated Internet Marketing Asynchronous text Synchronou s text Web Audi o Vide o Information Consultation and advice Order-taking Hospitality: taking care of the customer Safekeeping: looking after the customer s possessions Handling exceptions Billing Payment

36 Organizational change The socio-technical model Social system Structure Technical system Technology People Tasks

37 Alpha change Automate Cost savings Specialist Social system Structure Technical system Technology! People Tasks

38 Beta change Informate Better decisions market share product quality customer service Generalist Social system Structure! Technical system Technology " People! Tasks

39 Gamma change Transform Leadership New business model New businesses Social system Technical system New products Structure # Technology New services #! # " Futurist People! Tasks

40 Change dimensions Automate Informate Transform Information Consultation and advice Order-taking Hospitality: taking care of the customer Safekeeping: looking after the customer s possessions Handling exceptions Billing Payment

41 Information is service