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Sam Smith BMA258 Services Marketing – Assignment Item 2 055882
Page 1
Throughout the world, millions have been invested in improving call centre service levels and
efficiency, through sophisticated technology, improved business processes and complex
performance metrics (Dunk 2007, p. 1). To improve call centre efficiency, service marketers
focus on the service encounter interaction that occurs between consumer and employer. The
reason for this is that service encounters are seen to influence consumer’s perception of
service quality. A service encounter consists of three stages which influence the consumer’s
behaviour, the pre purchase stage, service encounter stage and the post purchase stage.
Throughout these three stages, customer perception will be evaluated in the scenario of a
consumer purchasing a new phone contract over the phone via a telecommunications
company. During the pre-purchase stage, the perceived risk of purchasing via a call centre
will be discussed, looking at the risk reduction strategies that are used by call centre
managers to prevent this from occurring. Service scripts, which are predetermined guides for
employees to follow when delivering service to customers will also be identified to see how
successful this can be for telecommunications companies, specifically looking at role theory
and script theory (Wardell, D 2012). The purchase phase will also be assessed, comparing
the pre-service expectations with post-service expectations. This enables the contact centre
to determine whether the customer was satisfied or dissatisfied with the service, continuing
further to explain how critical post purchase surveys are to call centre management.
The service encounter can be defined as “the dyadic interaction between a consumer and a
service provider” (Tetreault, M 1990). Every time a consumer comes into contact with a
company they evaluate and form an opinion of the service provider and thus the service
encounter begins (Baron, S & Harris 2003). When a consumer is looking to purchase a new
phone contract research is performed which then initiates the service encounter. From this
point onwards, evaluation occurs until post purchase stage once applicant has received
Sam Smith BMA258 Services Marketing – Assignment Item 2 055882
Page 2
an outcome. Expectations arise throughout this process as consumers compare the perceived
service required with the service that was received so they can make assessments of overall
service quality (Coye, R, 2004). It is argued that “the service encounter can be understood by
considering the specific roles consumers and service employees play during their interaction”
(Guiry, M 1992). Feinberg et al. (2000) found that the operational factor in call centres that
was most significantly related to caller satisfaction was the percentage of calls closed on first
contact (Dean, D 2002). Demonstrating the importance of service encounter to call centre
managers is vital to operate effectively by addressing the needs of the consumer to enhance
their perceptions of the encounter.
Pre-decision stage begins when consumers conduct an information search to assist them in
satisfying their needs by making an evaluation of alternatives. Consumers conduct this
search in an attempt to reduce their perceived risk before purchasing a product. It is widely
recognised that understanding pre-purchase behaviour is as crucial as the purchase itself
(Bruner and Pomazal, 1988. Punj and Srinivasan, 1992). Organisations in a
telecommunications call centre sales environment must identify how consumers are
conducting their information search, and then ensure their processes assist them in preventing
the perceived risk of consumers. It is proven that “Most consumers tend to use their phones in
a limited area around their work and home, they enjoy the perception of having national
coverage” (Handford, R 1998). When a consumer wants to purchase a new contract through
a Telecommunications provider, the need to have good coverage in their area of living is
always a perceived risk and must be addressed by a company in the pre-purchase stage.
Telecommunications companies through their website can display a 30 day network
guarantees to reduce this perceived risk of consumers, so when a consumer is conducting an
information search on the phone companies website, this will address their coverage concerns
Sam Smith BMA258 Services Marketing – Assignment Item 2 055882
Page 3
and make them more likely to call the contact centre to purchase the product. This would
also then be reinforced during the conversation that occurs upon the service encounter
between the consumer and the staff member which creates consistency between the online
offers and call centre interaction.
During the service encounter stage the interaction between the consumer and the call centre
environment is treated like a drama and would therefore unfold on a stage. Tightly scripting
or improvising the call structures and behaviours of the staff member can be integral in
making the consumer feel respected, secure and less threatened by the company. “A service
script is a detailed guide for front-line employees to follow during a service encounter”
(Victorino, L 2008). This script is used by staff during the service encounter stage when
consumers contact a telecommunications call centre to guide them during the interaction and
specify the alternatives of products to purchase. In order for call centre staff to manage a
consumer’s perceived respect required, it is important that they are given scripts to reward a
consumer’s tenure with the company. An example of this can be seen when the call centre
conversation occurs and the consumer states “I have been a loyal customer with your
company, what benefits do I receive by signing a new contract”? To create consistency
within a call centre environment, it is important for the staff member to have a generic
response by observing the consumers tenure within the company and relaying that back to the
consumer. An example response would be “I can see you have been with us for 4years,
therefore I can offer you a reduced price phone contract today”. To ensure all staff of the call
centre are performing the scripts, managers of the organisation must coach and performance
manage their staff regularly. Staff members must be call monitored and provided with
feedback by managers when they are not complying with the script theory required by the
organisation. This form of coaching will ensure sales numbers will increase throughout the
Sam Smith BMA258 Services Marketing – Assignment Item 2 055882
Page 4
call centre as consumers will feel more respected by the company due to a consistent service
encounter.
Role theory identifies “A group of concepts, based on sociocultural and anthropological
investigations, which pertain to the way people are influenced in their behaviours by the
variety of social positions they hold and the expectations that accompany those positions”
(Barker, 1999) Consumer perception can be positively influenced during the service
encounter by a salesman using rapport to ensure the customer feels secure and unthreatened.
Rapport refers to “communication characterised by warmth, enthusiasm and interest”
(Gremler, D 2008). When a consumer contacts a call centre and the consumer is greeted by a
happy, friendly staff member who is actively building rapport by asking questions such as
“How is the weather in your area”? Or “How is your day going”? It gives the consumer
positive mood amplification and builds trust in the employer and company, which makes the
consumer more likely to purchase. As a manger of a call centre environment it is integral to
ensure that all staff are trained during the induction stage upon joining the company on how
to build rapport with consumers to ensure the role theory is delivered during the service
encounter. Role theory will positively influence the centre’s sales results as agents will be
more likely to convert a sale on each call, further improving call centre efficiency.
Post-purchase stage occurs when the consumer makes an assessment of the levels of
satisfaction and dissatisfaction that took place during the service encounter. A Comparison
occurs between their pre-service expectations and the post-purchase expectations, therefore
as a manager of a telecommunications call centre, there must be an understanding of how
consumers form these expectations and perceptions. Results suggest that “the more the
Sam Smith BMA258 Services Marketing – Assignment Item 2 055882
Page 5
consumers will show their loyalty in post-purchase behaviour; the bigger the difference
between expectation and perception of service quality is, the more the consumers will make
complaints and convert to other brands” (Lin, W 2009). A common strategy that can be used
by telecommunications call centre’s to evaluate post-purchase behaviour is in the form of
NPS (Net Promoter Score) surveys. Consumers that have interacted within a
telecommunications call centre must be recorded and a list of numbers is compiled. Within
30days of the interaction, the consumer is contacted and asked if they would like to provide
feedback about their service. Consumers rate the service interaction between a 0-10, the
lower the score the less the expectations of the consumer was met, resulting in a dissatisfied
service. Once managers of a call centre have obtained this data, to assist in reducing the
dissatisfied consumers, the ones that rate their score between 0-2 must be outbound called
and attempt to have their issue resolved, removing their dissatisfaction towards the company.
During this interaction, data can be compiled to identify consistent themes of why the service
encounter did not meet the consumers perceived expectations in the first place, so the
company can address these concerns for future interactions.
It is identified that all three stages of the service encounter must be evaluated in order to
effectively manage a company. Without the implementation of network guarantees in a call
centre environment, consumers may be affected by perceived risk which may influence them
not to purchase with the company. Throughout the service encounter, the use of script and
role theory must be used by managers to maintain a consistent and engaging consumer
experience. Staff members not having the ability to develop a relationship with their
consumers or not being trained on how to identify a customer’s loyalty can be a detriment to
a telecommunications company. It may result in consumers losing trust and making them not
feel recognised by the company which may deter them from continuing with the over the
Sam Smith BMA258 Services Marketing – Assignment Item 2 055882
Page 6
phone purchase. Lastly, post purchase surveys must be conducted by managers in a call
centre environment; otherwise they will have limited information to evaluate whether the
consumer was dissatisfied or satisfied with the service delivered.
Sam Smith BMA258 Services Marketing – Assignment Item 2 055882
Page 7
References
Barker, R 1999, The social work dictionary. 4th Ed. Washington, DC: NASW Press.
Baron, S & Harris, K 2003, Services marketing: texts and cases, Palgrave, Basingstoke
Hampshire (Chapter 4).
Bitner, M., Booms, B., Tetreault, M, 1990, The Service Encounter: diagnosing favourable
and unfavourable incidents, Journal of Marketing, 1 January.
Coye, R, 2004, managing customer expectations in the service encounter: International
Journal of Service Industry Management, Emerald Group Publishing, no. 15.1, pp. 54-71.
Dean, D 2002, Service quality in call centres: Implications for customer loyalty, Managing
Service Quality, Emerald Group Publishing, no. 12.6, pp. 414-423.
Dunk, C 2007, ‘Delivering call centre customer experience – Five steps to success’, Filed
under management, viewed 15 March 2013, http://www.callcentrehelper.com/delivering-call-
centre-customer-experience-five-steps-to-success-59.htm
Sam Smith BMA258 Services Marketing – Assignment Item 2 055882
Page 8
Gremler, D 2008, Behaviours used by retail employees, Business and Economics-Marketing
and Purchasing, New York University, no. 84.3, pp. 308-324.
Guiry, M 1992, Consumer and Employee Roles in Service Encounters: Advances in
Consumer Research Volume 19, eds. John F. Sherry, Jr. and Brian Sternthal, Provo, UT:
Association for Consumer Research, Pages: 666-672
Handford, R 1998, Cellular Network Coverage: Network Priorities have changed, Financial
Times, The Financial Times Limited, 17 Mar.
Lin, W 2009, A study of relations among service quality differences, post-purchase behaviour
intentions with personality traits, and service recovery strategy as intervening variables,
International Journal of Commerce & Management, Emerald Group Publishing, no. 19.2, pp.
137-157.
Taylor, C, 2013, The Customer experience and the call centre, Contact centre Consultants
The Taylor Research Group, Viewed 15 March,
http://thetaylorreachgroup.com/resources/reports-and-white-papers/the-customer-experience-
and-the-call-center/
Victorino, L 2008, Scripting the service encounter: An Empirical Analysis, Ann Arbor, The
University of Utah, 06 Dec.
Sam Smith BMA258 Services Marketing – Assignment Item 2 055882
Page 9
Victorino, L., Verma, R., Bonner, B & Wardell, D, 2012, ‘Can Customers Detect Script
Usage in Service Encounters, Journal of Service Research, 25 May.

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BMA258_Assignment Item 2_Question 2_Sam Smith 055882

  • 1. Sam Smith BMA258 Services Marketing – Assignment Item 2 055882 Page 1 Throughout the world, millions have been invested in improving call centre service levels and efficiency, through sophisticated technology, improved business processes and complex performance metrics (Dunk 2007, p. 1). To improve call centre efficiency, service marketers focus on the service encounter interaction that occurs between consumer and employer. The reason for this is that service encounters are seen to influence consumer’s perception of service quality. A service encounter consists of three stages which influence the consumer’s behaviour, the pre purchase stage, service encounter stage and the post purchase stage. Throughout these three stages, customer perception will be evaluated in the scenario of a consumer purchasing a new phone contract over the phone via a telecommunications company. During the pre-purchase stage, the perceived risk of purchasing via a call centre will be discussed, looking at the risk reduction strategies that are used by call centre managers to prevent this from occurring. Service scripts, which are predetermined guides for employees to follow when delivering service to customers will also be identified to see how successful this can be for telecommunications companies, specifically looking at role theory and script theory (Wardell, D 2012). The purchase phase will also be assessed, comparing the pre-service expectations with post-service expectations. This enables the contact centre to determine whether the customer was satisfied or dissatisfied with the service, continuing further to explain how critical post purchase surveys are to call centre management. The service encounter can be defined as “the dyadic interaction between a consumer and a service provider” (Tetreault, M 1990). Every time a consumer comes into contact with a company they evaluate and form an opinion of the service provider and thus the service encounter begins (Baron, S & Harris 2003). When a consumer is looking to purchase a new phone contract research is performed which then initiates the service encounter. From this point onwards, evaluation occurs until post purchase stage once applicant has received
  • 2. Sam Smith BMA258 Services Marketing – Assignment Item 2 055882 Page 2 an outcome. Expectations arise throughout this process as consumers compare the perceived service required with the service that was received so they can make assessments of overall service quality (Coye, R, 2004). It is argued that “the service encounter can be understood by considering the specific roles consumers and service employees play during their interaction” (Guiry, M 1992). Feinberg et al. (2000) found that the operational factor in call centres that was most significantly related to caller satisfaction was the percentage of calls closed on first contact (Dean, D 2002). Demonstrating the importance of service encounter to call centre managers is vital to operate effectively by addressing the needs of the consumer to enhance their perceptions of the encounter. Pre-decision stage begins when consumers conduct an information search to assist them in satisfying their needs by making an evaluation of alternatives. Consumers conduct this search in an attempt to reduce their perceived risk before purchasing a product. It is widely recognised that understanding pre-purchase behaviour is as crucial as the purchase itself (Bruner and Pomazal, 1988. Punj and Srinivasan, 1992). Organisations in a telecommunications call centre sales environment must identify how consumers are conducting their information search, and then ensure their processes assist them in preventing the perceived risk of consumers. It is proven that “Most consumers tend to use their phones in a limited area around their work and home, they enjoy the perception of having national coverage” (Handford, R 1998). When a consumer wants to purchase a new contract through a Telecommunications provider, the need to have good coverage in their area of living is always a perceived risk and must be addressed by a company in the pre-purchase stage. Telecommunications companies through their website can display a 30 day network guarantees to reduce this perceived risk of consumers, so when a consumer is conducting an information search on the phone companies website, this will address their coverage concerns
  • 3. Sam Smith BMA258 Services Marketing – Assignment Item 2 055882 Page 3 and make them more likely to call the contact centre to purchase the product. This would also then be reinforced during the conversation that occurs upon the service encounter between the consumer and the staff member which creates consistency between the online offers and call centre interaction. During the service encounter stage the interaction between the consumer and the call centre environment is treated like a drama and would therefore unfold on a stage. Tightly scripting or improvising the call structures and behaviours of the staff member can be integral in making the consumer feel respected, secure and less threatened by the company. “A service script is a detailed guide for front-line employees to follow during a service encounter” (Victorino, L 2008). This script is used by staff during the service encounter stage when consumers contact a telecommunications call centre to guide them during the interaction and specify the alternatives of products to purchase. In order for call centre staff to manage a consumer’s perceived respect required, it is important that they are given scripts to reward a consumer’s tenure with the company. An example of this can be seen when the call centre conversation occurs and the consumer states “I have been a loyal customer with your company, what benefits do I receive by signing a new contract”? To create consistency within a call centre environment, it is important for the staff member to have a generic response by observing the consumers tenure within the company and relaying that back to the consumer. An example response would be “I can see you have been with us for 4years, therefore I can offer you a reduced price phone contract today”. To ensure all staff of the call centre are performing the scripts, managers of the organisation must coach and performance manage their staff regularly. Staff members must be call monitored and provided with feedback by managers when they are not complying with the script theory required by the organisation. This form of coaching will ensure sales numbers will increase throughout the
  • 4. Sam Smith BMA258 Services Marketing – Assignment Item 2 055882 Page 4 call centre as consumers will feel more respected by the company due to a consistent service encounter. Role theory identifies “A group of concepts, based on sociocultural and anthropological investigations, which pertain to the way people are influenced in their behaviours by the variety of social positions they hold and the expectations that accompany those positions” (Barker, 1999) Consumer perception can be positively influenced during the service encounter by a salesman using rapport to ensure the customer feels secure and unthreatened. Rapport refers to “communication characterised by warmth, enthusiasm and interest” (Gremler, D 2008). When a consumer contacts a call centre and the consumer is greeted by a happy, friendly staff member who is actively building rapport by asking questions such as “How is the weather in your area”? Or “How is your day going”? It gives the consumer positive mood amplification and builds trust in the employer and company, which makes the consumer more likely to purchase. As a manger of a call centre environment it is integral to ensure that all staff are trained during the induction stage upon joining the company on how to build rapport with consumers to ensure the role theory is delivered during the service encounter. Role theory will positively influence the centre’s sales results as agents will be more likely to convert a sale on each call, further improving call centre efficiency. Post-purchase stage occurs when the consumer makes an assessment of the levels of satisfaction and dissatisfaction that took place during the service encounter. A Comparison occurs between their pre-service expectations and the post-purchase expectations, therefore as a manager of a telecommunications call centre, there must be an understanding of how consumers form these expectations and perceptions. Results suggest that “the more the
  • 5. Sam Smith BMA258 Services Marketing – Assignment Item 2 055882 Page 5 consumers will show their loyalty in post-purchase behaviour; the bigger the difference between expectation and perception of service quality is, the more the consumers will make complaints and convert to other brands” (Lin, W 2009). A common strategy that can be used by telecommunications call centre’s to evaluate post-purchase behaviour is in the form of NPS (Net Promoter Score) surveys. Consumers that have interacted within a telecommunications call centre must be recorded and a list of numbers is compiled. Within 30days of the interaction, the consumer is contacted and asked if they would like to provide feedback about their service. Consumers rate the service interaction between a 0-10, the lower the score the less the expectations of the consumer was met, resulting in a dissatisfied service. Once managers of a call centre have obtained this data, to assist in reducing the dissatisfied consumers, the ones that rate their score between 0-2 must be outbound called and attempt to have their issue resolved, removing their dissatisfaction towards the company. During this interaction, data can be compiled to identify consistent themes of why the service encounter did not meet the consumers perceived expectations in the first place, so the company can address these concerns for future interactions. It is identified that all three stages of the service encounter must be evaluated in order to effectively manage a company. Without the implementation of network guarantees in a call centre environment, consumers may be affected by perceived risk which may influence them not to purchase with the company. Throughout the service encounter, the use of script and role theory must be used by managers to maintain a consistent and engaging consumer experience. Staff members not having the ability to develop a relationship with their consumers or not being trained on how to identify a customer’s loyalty can be a detriment to a telecommunications company. It may result in consumers losing trust and making them not feel recognised by the company which may deter them from continuing with the over the
  • 6. Sam Smith BMA258 Services Marketing – Assignment Item 2 055882 Page 6 phone purchase. Lastly, post purchase surveys must be conducted by managers in a call centre environment; otherwise they will have limited information to evaluate whether the consumer was dissatisfied or satisfied with the service delivered.
  • 7. Sam Smith BMA258 Services Marketing – Assignment Item 2 055882 Page 7 References Barker, R 1999, The social work dictionary. 4th Ed. Washington, DC: NASW Press. Baron, S & Harris, K 2003, Services marketing: texts and cases, Palgrave, Basingstoke Hampshire (Chapter 4). Bitner, M., Booms, B., Tetreault, M, 1990, The Service Encounter: diagnosing favourable and unfavourable incidents, Journal of Marketing, 1 January. Coye, R, 2004, managing customer expectations in the service encounter: International Journal of Service Industry Management, Emerald Group Publishing, no. 15.1, pp. 54-71. Dean, D 2002, Service quality in call centres: Implications for customer loyalty, Managing Service Quality, Emerald Group Publishing, no. 12.6, pp. 414-423. Dunk, C 2007, ‘Delivering call centre customer experience – Five steps to success’, Filed under management, viewed 15 March 2013, http://www.callcentrehelper.com/delivering-call- centre-customer-experience-five-steps-to-success-59.htm
  • 8. Sam Smith BMA258 Services Marketing – Assignment Item 2 055882 Page 8 Gremler, D 2008, Behaviours used by retail employees, Business and Economics-Marketing and Purchasing, New York University, no. 84.3, pp. 308-324. Guiry, M 1992, Consumer and Employee Roles in Service Encounters: Advances in Consumer Research Volume 19, eds. John F. Sherry, Jr. and Brian Sternthal, Provo, UT: Association for Consumer Research, Pages: 666-672 Handford, R 1998, Cellular Network Coverage: Network Priorities have changed, Financial Times, The Financial Times Limited, 17 Mar. Lin, W 2009, A study of relations among service quality differences, post-purchase behaviour intentions with personality traits, and service recovery strategy as intervening variables, International Journal of Commerce & Management, Emerald Group Publishing, no. 19.2, pp. 137-157. Taylor, C, 2013, The Customer experience and the call centre, Contact centre Consultants The Taylor Research Group, Viewed 15 March, http://thetaylorreachgroup.com/resources/reports-and-white-papers/the-customer-experience- and-the-call-center/ Victorino, L 2008, Scripting the service encounter: An Empirical Analysis, Ann Arbor, The University of Utah, 06 Dec.
  • 9. Sam Smith BMA258 Services Marketing – Assignment Item 2 055882 Page 9 Victorino, L., Verma, R., Bonner, B & Wardell, D, 2012, ‘Can Customers Detect Script Usage in Service Encounters, Journal of Service Research, 25 May.