CUSTOMER SERVICE, SKILLS FOR SUCCESS, 4e



Customer Service: Skills for Success, 4th edition

INSTRUCTOR’S MANUAL

Chapter 1 The Customer Service Profession

LESSON OVERVIEW

The purpose of this chapter is to introduce the students to customer service functions. Students will also become aware of how socioeconomic, demographic, and geopolitical trends affect the way customer service is handled in the United States and how these factors affect business in general. Many of the historical factors that have influenced customer service are explored.

The features, interactive activities, and other materials such as the Study Guide and the Test Bank are designed to help you further student comprehension. The PowerPoint slides noted for each chapter can be used to help you guide discussions.

CHAPTER OUTLINE

The textbook outlines the chapter with the following headings to focus and direct major lecture topics.

• Customer Service Interview, p. 2

• Learning Objectives, p. 4

• In the Real World Service AAA/CAA, p. 4

• Quick Preview, p. 5

• Defining Customer Service, p. 11

--The Concept of Customer Service, p. 7

--Post-World War II Service, p. 7

--The Shift to Service, p. 8

• Growth of the Service Sector, p. 8

• Impact of the Economy, p. 11

--Quantity of Jobs Being Created, p. 11

--Distribution of Jobs, p. 11

--Quality of Service Jobs, p. 12

• Societal Factors Affecting Customer Service, p. 12

--Shifts in the Population and Labor Force, p. 12

--Increased Efficiency in Technology, p. 14

Globalization of the Economy, p. 15

--Deregulation of Many Industries, p. 15

--Geopolitical Changes, p. 15

--Increase in the Number of White-Collar Workers, p. 16

--More Women Entering the Workforce, p. 16

--A More Diverse Population is Entering the Workforce, p. 17

--More Older Workers Entering the Workforce, p. 18

--Increased Numbers of Small Businesses, p. 19

--Growth of E-Commerce, p. 19

• Consumer Behavior Shifts, p. 20

--Desire for Better Use of Leisure Time, p. 20

--Expectation of Quality Service, p. 21

--Enhanced Consumer Preparation, p. 21

• The Customer Service Environment, p. 21

--Components of a Customer Service Environment, p. 21

The Customer, p. 22

--Internal Customers, p. 22

• External Customers, p. 23

Organizational Culture, p. 23

Human Resources, p. 23

Products/Deliverables, p. 23

Delivery Systems, p. 25

Service, p. 26

• Addressing the Changes, p. 26

• Summary, p. 27

• Key Terms, p. 27

• Review Questions, p. 27

• Search It Out, p. 27

• Collaborative Learning Activities, p. 28

• Face to Face, p. 28

• In the Real World, p. 29

• Planning to Serve, p. 29

• Quick Preview Answers, p. 29

• Ethical Dilemma Summary, p. 29

CHAPTER OBJECTIVES

The chapter learning objectives will help you and the students discover the concepts and information that should be understood upon completion of the chapter. You may want to access the PowerPoint (PPT) slides for Chapter 1 when you begin the study of the Chapter and discuss each Learning Objective. Each Learning Objective will be discussed separately in the Lecture Notes below, but are shown here in total as an overview of the sections being presented in Chapter 1. Use PPT1 and PPT2 Chapter Objectives in discussing the Chapter Objectives. You may want to refer back to PPT1 and PPT2 as you discuss each objective in the next sections.

After completing this chapter, the students will be able to:

1. Define customer service.

2. Describe factors that have impacted the growth of the service sector in the United States.

3. Identify the socioeconomic and demographic changes that have influenced customer service.

4. Recognize the changes in consumer behavior that impact service.

5. List the six major components of a customer-focused environment.

6. Explain how some companies address the changes impacting the service sector.

KEY TERMS, p. 27

Key terms are posted in the student textbook margins and placed in bold in the copy. They are listed alphabetically here for your quick reference.

Business-to-business (B2B), p.15 Learning organizations, p. 26

Cold War, p. 16 Networking, p. 12

Cottage industries, p. 6 North American Free Trade

Customer-focused organization, p. 6 Agreement (NAFTA), p. 16

Customer relationship management (CRM), p. 6 Organizational culture, p. 23

Customer service, p. 6 Outsourcing, p. 15

Customer service environment, p. 21 Product, p. 6

Deliverables, p. 23 Service economy, p. 8

Delivery systems, p. 25 Service industry, p. 6

Deregulation, p. 15 Service recovery, p. 26

Downsizing, p. 12 Service sector, p. 7

E-commerce, p. 19 Small Business

External customers, p. 23 Administration (SBA), p. 19

Globalization, p. 15 Telecommuting, p. 11

Human resources, p. 23 Y2K Bug, p. 21

Internal customers, p. 22

LECTURE OUTLINE AND LECTURE NOTES

General Teaching Suggestions for Chapter 1:

This chapter sets the tone for understanding the nature, scope and history of customer service. Depending on students’ level of knowledge or expertise, you may want to bring in additional articles or information on the field of customer service. You may also want to invite several speakers individually or as a panel for a group discussion.

Before the class convenes (one or two weeks before, as you are preparing to teach the customer service course): Gather additional reference material to prepare to lead a discussion on the topics covered in the chapter. These reference materials may be located in newspapers (such as The Wall Street Journal or your local newspaper), as well as various magazines. Before the class convenes, secure the 10 videos (1 video script for each chapter is provided). Your students will enjoy and learn from these real-world scenarios presented in the videos.

Additionally, before the class convenes: Contact local businesses of varying size to find out if and how each of the reasons for the shift to service outlined in the chapter have impacted their organization and industry. Use the results you obtain for an in-class discussion or activity. This would be an ideal time to pose the topic of speaking to the class or taking part in other activities. Be sure to get the name of the person and his or her position and phone number (or e-mail) for future reference.

Here are some optional activities for Chapter 1 (you may also find them essential activities for other chapters).

Activity: Divide students into equal groups (3 or 4 people per group, depending on the class size) and give each group a marker and sheet of newsprint (flipchart paper) to use as they participate in the activities noted herein or in those that you develop.

Activity: Assign an out-of-class activity for learners to gather additional articles or information about chapter-related topics. Have them write a brief (no more than one typed page) summary of the article, properly documented.

Activity: Have learners conduct field research and write a brief report before the next meeting. The focus might be to visit an organization or business to observe factors related to chapter content (e.g. makeup of employees now—age, race, sex, forms of business, products/services offered—as opposed to employee makeup in the past).

Activity: Have learners contact someone working in an organization for an interview. They can report their findings to the class during their next meeting. The following questions can be used as a basis for an interview or you can develop other questions depending on your desired focus:

• How long have you been in customer service?

• Who makes up your primary customer base (internal, external or combination)?

• For what product(s) or service(s) do you provide support?

• How many customers do you (or your organization) service daily?

• In your view, how important are basic communication skills in customer service?

• Is most of your service provided over the phone or in person?

• What has been your biggest customer service challenge in the past year? Ever?

• What trends are you seeing in customer service today?

• What one piece of advice would you give someone starting out in customer service?

Compare their findings with the chapter topic under discussion at the moment.

Before the students arrive: Write the terms that you will be emphasizing from this chapter on the board. You may do a quick review of the terms by asking students to provide an impromptu definition. This activity can to let you know what information students remember from reading the chapter or from experiences in the business world.

First class: Take attendance and take care of other administrative duties or paperwork. Since this is the first meeting of the class, you may want to do some type of creative, fun activity as an icebreaker to help them get to know one another and to share their goals for the class.

Activity: One such activity may be to go around the classroom, each student introducing him or herself by giving his or her name and then selecting a word or concept that describes his or her feelings about customer service (for example, one student, Sarah, feels customer service should be honest and fair). The student may then discuss his or her major, job (if he or she works) and the position held, and how customer service relates to the position.

Part One: The Profession, p. 2

Discuss the Customer Service Interview (pages 2-3) with the class by having them refer to the questions discussed by Stephen Tanzer. Select three or four questions to which he responded and compare the students’ responses to Mr. Tanzer’s.

Chapter 1: The Customer Service Profession, p. 4

A quote by Alan Greenspan begins the chapter. Ask students to think about careers of people in business with whom they are familiar. Have those people succeeded in business without leaving a trail of casualties? Have students write a few notes about their business people; then, have them briefly discuss what they wrote about each person.

ASK: Who is Alan Greenspan? (Answer: Mr. Greenspan retired in 2006 as Chairman of the Federal Reserve).

Note: If you want to start students on a research quest, have a small group research Mr. Greenspan on the Internet (they can go to a computer lab or, if you have a computer in the classroom, have them to do the research there quickly). You may also want to bring a laptop for quick spur of the moment research activities in the classroom. Students will love it, of course!

LESSON NOTES

The following are specific instructional strategies related to Chapter 1: The Customer Service Profession.

Show PowerPoints [PPTs] 1 and 2 (Chapter Objectives) to briefly introduce students to the topics in Chapter 1.

Instructor Note 1:

• Learning Objective 1: Define customer service.

• Learning Objective Note: PPTs 1- 8 should be used with Learning Objective 1, pages 6-8.

• Students should understand the definition of customer service, since customer service activities are in every organization they come into contact with in the world today.

• Show PPT3: What is Customer Service? Ask for opinions, beliefs and experiences that explain students’ responses during a discussion of what Customer Service means to them. Offer a brief working definition after the discussion from page 6.

• Activity: Review the In the Real World Service profile of AAA/CAA. Ask for a show of hands: who are members of AAA? Ask them to define the three letters: AAA (American Automobile Association).

• Point out that AAA has a Website listed on page 5. Use the Activity In the Real World, page 29, to further the discussion of AAA/CAA services. Review the questions in the Activity on page 29: ask students to respond to each of the four questions based on their experience with AAA or based on the experiences of parents or friends. Lead the discussion, providing your experiences as pertinent to AAA if you use or have used them or any similar automobile service agency.

• Quick Preview: Have students respond (orally or in writing) to the Quick Preview questions. The answers are located in the student text on page 29. A show of hands will give you an understanding of these questions. Tie the information to the objectives and the material in the chapter.

• DEFINING CUSTOMER SERVICE, p. 6

• Learning Objective 1: Define customer service.

• Review the concept of customer-focused organizations. Ask students what it means to treat everyone with respect. The focus should be to determine and meet the needs of customers. In doing this, it is important to understand that people should be treated with respect. People respond better respectful treatment, giving positive word-of-mouth publicity and likely returning for more service. This exercise will emphasize to students the necessity to treat people with respect. After all, they are special; they are your customers. And, the focus of a customer-focused organization is to meet customers’ needs and to treat them with respect.

Instructor Note 2:

• Use PPT 4: Customer-Focused Organizations to review the definition of a customer-focused organization.

• Activity: Divide students into equal groups (3 or 4 per group depending on the class size) and have them work together to discuss how they feel about customer organizations with which they are familiar (e.g. positive, negative, or neutral). Provide flip-chart paper to each group to make notes for their discussions.

• ASK: Do you believe that most organizations are customer focused? After approximately 15 minutes, bring the class together to compare responses.

• Customer-focused organizations

Instructor Note 3:

• Use PPT 4 again to review the definition.

• Then use PPTs 5 and 6: Factors Related to Customer-focused Organizations

• Review Figure 1-1 (page 6) with the class as well as the PPTs. Summarize the following factors:

1. They have internal and external customers.

2. Their focus is on determining and meeting customer needs.

3. Information, products and services are easily accessible.

4. Policies are in place to allow employee decision-making.

5. Management and systems support and reward employees.

6. Reevaluation of business strategies and systems is ongoing.

• Discuss what the Census Bureau and the Bureau of Labor Statistics typically include in their reports and projections: transportation, communication and utilities; wholesale trade; retail trade; finance, insurance and real estate; other services; federal government; and state and local governments (page 7).

• Before you end the discussion on customer-focused organizations, point out Customer Relationship Management (CRM) programs to the class.

• Activity: Assign a team of three students to research this program and to report back to the class with its findings in a week.

• THE CONCEPT OF CUSTOMER SERVICE, p. 7

• Spend some time discussing some of the historical trends in customer service:

• Evolved from meager beginnings.

• Small artisans and business owners served neighbors.

• No multinational chains.

• Many small towns had their own service providers (e.g. general store, blacksmith, barber, boarding house, and restaurant).

• Peddlers went from town to town.

• Products were often bartered and traded in “cottage industries.”

• Expanded transportation systems started to change patterns of service.

• As larger cities and industries developed and mail systems improved, so did service delivery.

• Have students reflect on the historical perspective from their points of view.

• Have students view the photo on page 7, reflecting on the customer service being provided in the photo. Lead a discussion on how the methods used then differ from those used now. Students will likely say that home delivery was more personal then and vendors probably knew their customers personally. Using the Kroger grocery store chain as a historical example, ask students to research how the Kroger stores started and where Mr. Kroger lived (Cincinnati, Ohio). Have students make a report on the history of Kroger to present within the next week or at a time you designate.

• POST-WORLD WAR II SERVICE, p. 7

• Briefly discuss some changes in the service industry following the World War II. Some of the reasons for this were the large number of returning military and the focus of the federal administration to provide economical housing. Customer demand had been stifled during the war and its release spawned new industries and development along with the need to provide services.

• Note to students that from 2000-2010, virtually all non-farm and salary employment is expected to be in the service-producing section, accounting for a net increase of 8.9 million jobs.

• Review Figure 1-2, page 8 to give students an idea of how people moved from other occupations to join the rapidly growing ranks of service professionals.

• THE SHIFT TO SERVICE, p. 8

Instructor Note 4:

• Use PPTs7 and 8: Shift to Service to show types of job shifts occurring since WWII. Ask students if they have seen these or others occurring. Discuss any examples they may provide.

• Review the definition of service economy (page 8). Inform students that the concept outsourcing of various functions, including customer service, will be discussed later in the chapter.

• Focus on the shift from manufacturing to a service economy. Also, relate information about the development of international service standards. You may want to gather information or have students research standards (e.g. ISO series and related standards).

Instructor Note 5:

• Before moving onto the next Learning Objective on page 8: Students should read and reflect on the Customer Service Success Tip on page 7. You may want to emphasize that this course should inform students of the trends and enhancements being made by organizations and help should them develop valuable personal and professional skills.

• GROWTH OF THE SERVICE SECTOR, p. 8

Instructor Note 6:

• Learning Objective 2: Describe factors that have impacted the growth of the service sector in the United States.

• Students should understand this objective and how it relates to changes that have taken place in the economy, in the labor market, and in other areas as noted in the chapter.

• Learning Objective Note: PPTs 9-13 should be used with Learning Objective 2, pages 8-12.

• Review the Concept on page 8 and lead a discussion on employment trends looking at Figures 1.3, p. 9, 1.4, and 1.5, page 10.

Instructor Note 7:

• Ask students: Do you think the number and type of customer service jobs will continue to grow? Why or why not?

• Ask students to reflect on any popular television programs that show customer service-related scenarios.

• Review the information from the Bureau of Labor Statistics on pages 9 and 10 with the class. Ask them if they have seen these occupation growths take place in their city or town.

• Assemble several groups of two or three students to review Work It Out 1.1, p. 11. Have them make brief presentations of their personal experiences of changes in the business world. They should address the questions in the activity. Ask them if these changes are for the better or worse. What would you do if you were asked to improve customer service in your job or in one you know well?

• IMPACT OF THE ECONOMY, p. 11

Instructor Note 8:

• Use PPT9: Impact of the Economy on Jobs to lead a discussion on the quantity, distribution, and quality of service jobs.

• Then use PPT10: Factors that Impact Job Quantity to examine how interest rates and consumer demands cause companies to evaluate how many people they need and which jobs to establish or maintain. In addition, discuss how technology has created a need for new technical skills in computer hardware and software operation and maintenance. Note also that technology also created opportunities for tasks once performed by employees to be transferred to automation.

Instructor Note 9:

• Use PPT11: Parallel Trends in Job Development to lead a discussion of the changes the economy has brought to the distribution of jobs. These changes revolve around employees’ need to have access to networks and to engage in collaborative exchanges. In addition, telecommuting has resulted from the ease of transmission and exchange of information by means of technology.

Instructor Note10:

• Use PPT12: Quality of Service Jobs to discuss the increasing economic growth, low interest rates and new job opportunities that have occurred since the late 1900s. Discuss how networking is used to build relationships inside and outside of an organization. Emphasize how these networks can be built through meetings, interactions and activities.

• Discuss the Customer Service Success Tip (page 12):

• Ask students: How do you think building an internal network of associates within the organization can reduce the chances of layoff during downsizing?

• Activity: Have students work in their groups to brainstorm and come up with some reasons in addition to those listed in the Tip. After 3 or 4 minutes, bring the class back together to discuss their reasons.

Instructor Note 11:

• Use PPT13: What is Downsizing? Downsizing is a term applied to the situation in which employees are terminated. Review with the class how relationships built with associates inside the organization may help someone avoid being laid off. Students may provide reasons other than those mentioned in the Tip, such as sharing information and resources and adding to your personal power base. Other preventative solutions could include educating yourself on products and services your organization provides and volunteering ideas and assistance to show your value to the organization. Summarize the class’ reasons and compare them to those in the text.

• Activity: Assign the Collaborative Learning Activity Emphasizing Education on page 28. Assign students to a group or let them form groups to identify and discuss the role of school today and to rate how well schools are preparing young people for work. After 10 or 12 minutes, bring the class back together to discuss their opinions. Feel free to share your own personal background and education or comment on that of someone you know.

• SOCIETAL FACTORS AFFECTING CUSTOMER SERVICE, p. 12

Instructor Note 12:

• Learning Objective 3: Identify the socioeconomic and demographic changes that have influenced customer service.

• Learning Objective Note: PPTs 14-19 should be used with Learning Objective 3, pages 12-19.

• Review the Concept, p. 12, to help students understand Learning Objective 3 and its impact on customer service.

Instructor Note 13:

• Use PPT14: Factors that May have Caused the Economic Shift from Manufacturing to Service as you lead a discussion regarding societal factors affecting customer service. Discuss demographic shifts in population by reviewing Figure 1-6, page 13. Review the figures cited by the Department of Labor that will potentially have an impact in the U.S. labor force between the years 2004-2014. (See Figure 1.7 on page 14).

Instructor Note 14:

• Review the Customer Service Success Tip with the class. Use PPT15: Knowledge is Power as you ask students what it means to say “Knowledge is Power.” Students may comment that knowledge regarding software, equipment and emerging technologies may show your supervisor that you are willing to learn and to apply new technology. This could help you get promoted or keep your job during layoffs.

• INCREASED EFFICIENCY IN TECHNOLOGY, p. 14

• Talk about outcomes related to technology development:

1. Increase in the number of service organizations designed to care for technology

2. Decrease in manufacturing and blue-collar jobs

• Technology has brought about new jobs and hundreds of service opportunities in computers and telecommunications. A driving factor, you might add, is the implementation of technology-based services—50.5 percent of U.S. households have and use Internet access.

Instructor Note 15:

• Activity: As a special team project, assign students to update the statistics regarding household Internet use from the 2000 US Census figures given on page 14. Have students report on their findings during the next class.

• Globalization of the Economy, p. 15

• Discuss globalization of the economy and the lowering of trade barriers through advances in technology, communications, diplomacy and transportation.

Instructor Note 16:

• Ask: What do you think has been the most significant world event that has influenced customer service in the United States. Why?

• Relate this discussion to the variety of factors that contributed to expanded international cooperation and competition after trade barriers came down. Many companies have focused on business-to-business (B2B) initiatives.

• Companies at some point make staffing and/or production decisions based on bottom-line figures. This can lead to outsourcing to other countries in order to save money on production costs, wages and benefits.

• Activity: Have students in groups of 3 or 4 research the outsourcing of technology to other countries. Have them draw on their own experiences in talking with service providers, such as AOL, Microsoft and others that have Help Desk functions. Allow 5 or so minutes for the discussion in the next class as a recap and review of outsourcing.

Instructor Note 17:

• Students should be encouraged to view the photo on page 15.

• Ask students how they would stay abreast of technological changes. Replies may include taking classes, conducting research on the Internet, and reading technical magazines.

• DEREGULATION OF MANY INDUSTRIES, p. 15

Instructor Note 18:

• Define Deregulation as shown on page 15 margin note.

• Talk about the impact of deregulation on the development of new organizations and customer service delivery. Solicit examples and ideas from students.

Instructor Note 19:

• Ask students what impact they see deregulation having. One is competition. Unfortunately, it has also led, in some cases, to a breakdown in customer service.

Instructor Note 20:

• Have students complete the Work It Out 1.2 Personal Exposure to the Global Trend on page 17. Give them about 10 minutes to work together in groups of 5 or 6. Once they have, collect their answers and record them on a flip chart for comparison. Discuss the fact that they are typical of the consumers in today’s workplace. Reinforce the concept that global competition has led to access to many foreign products.

• GEOPOLITICAL CHANGES, p. 15

Instructor Note 21:

• Use PPT16: Geopolitical Changes Caused by Various World Events to lead a discussion on how oil embargoes, political unrest, and conflicts and wars have reduced US business access and competition in some parts of the world. Ask students: what affect does this have on trade and travel? Every closed port or country border has a negative effect on travel and travel professionals.

• Explain that the passage of the North American Free Trade Agreement (NAFTA) made it possible for many US companies to relocate and send jobs across national borders to access less expensive labor, to increase profits, and to avoid unions. This is another example of outsourcing.

• INCREASE IN THE NUMBER OF WHITE-COLLAR WORKERS, p. 16

• Office workers or service workers now working traditional hours on a variety of shifts services such as cleaners, home cleaning services, child care, and personal shoppers (ask students for additional examples).

Instructor Note 22:

• Ask: What changes have you seen in your lifetime in the number of white-collar workers versus blue-collar (e.g., manufacturing, automotives, steel workers)? Have students list some of the changes they have seen; appoint a person to write on the board as the class calls out changes.

• MORE WOMEN ENTERING THE WORKFORCE, p. 16

• Since more women have entered the workforce, the need for service providers such as cleaners, cooks, child care attendants, etc. has increased and continues to do so. Women’s share of the workplace is projected to increase from 47 percent in 2000 to approximately 48 percent in 2010. As a result, women as consumers have more disposal income, leading to an increased need for more personal customer service opportunities.

Instructor Note 23:

• Again, involve students in a discussion of current occupations that were not available to women 10 or so years ago. This could be a good time to acknowledge and discuss the occupations women now hold in the military. Appoint a notetaker to list occupations on the board as they are called out by the class.

• A MORE DIVERSE POPULATION IS ENTERING THE WORKPLACE, p. 17

• Review the U.S. Department of Labor statistics, noting that the workplace is becoming more and more diverse. Students will study more about diversity in Chapter 8.

• Have students review Work It Out 1.2 (page 17) again and reflect on the questions for class discussion.

Instructor Note 24:

• Lead a brief discussion on people of diversity in the workplace. Solicit views of the impact of this trend on the workplace and in communities, government, and the like. Ask students to think about the photo on page 18 and reflect on the caption under it. Ask them to identify ways through which they would improve their knowledge of different groups, so that they could better serve them. Typical answers include reading about the different countries, reviewing case studies in other classes regarding diversity, and perhaps talking to people from other countries to share information.

• MORE OLDER WORKERS ENTERING THE WORKFORCE, p. 18

Instructor Note 25:

• Use PPT17: Increase in Older Workers in the Workforce to lead a discussion about factors affecting the increase of older workers in the workforce. Mention the lack of entry-level people in traditional pools of younger workers (due to small birth rates in 1970s); therefore, companies are recruiting older workers.

Instructor Note 26:

• Ask Students: Think about your position where you work (or companies you are familiar with if you do not work). How many older workers are employed there? What is the general age range? Are they new hires or have they been with the company for some time? Create a flip chart summary of the input from the class for review.

• Students should read the Customer Service Success Tip page 18.

Instructor Note 27:

• Ask students: Why is it important to learn about different cultures and other diversity issues? The workforce has changed. We all work with different cultures, genders, age groups, religions, and other sections of a diverse population.

• Ask: How do you feel abut the changing workplace demographics? Why do you feel this way? Lead a discussion about how students feel about changes in the labor population. Create a flip chart summary of the answers from the class.

• INCREASED NUMBER OF SMALL BUSINESSES, p. 19

Instructor Note 28:

• Use PPT18: Small Business Numbers Increasing to show that more than 70 percent of all businesses are small. Discuss the types of small business present in your city or town. Ask students how they recognize a small business. Would they rather shop or get services from a small or a large business? Get a quick consensus of opinion from the class and write it on the board.

• The 2004 SBA report states that there are 24.7 million businesses in the U.S. Small businesses with less than 500 employees represent 99.9 percent of those 24.7 million businesses. There are just 17,000 large businesses.

• Nearly half of all privately held US businesses are 50 percent or more woman-owned. From 1997-2004, the number of companies 50% or more woman-owned increased at nearly twice the rate of all companies, as did employment rates.

• GROWTH OF E-COMMERCE, p. 19

Instructor Note 29:

• Use PPT19: Growth of E-Commerce to lead a discussion, beginning with the fact that e-commerce sales in 2003 increased 27.8 percent from the previous year.

• Ask students: Do you surf the Net? Why and how often? Tabulate the answers for discussion.

• The new way of accessing goods and services through technology is called e-commerce.

• Ask: How many of you shop on eBay or ? Compile a hand count of students who shop on either one or both.

• Activity: Students will enjoy the Ethical Dilemma 1.1, page 19. Have students work in two or three groups to prepare the situation for a critique for the rest of the class. Once they prepare and present, ask for input from the others in the class. Refer them to the end-of-chapter possible solutions (page 29). Do they agree with the possible solutions?

• CONSUMER BEHAVIOR SHIFTS, p. 20

Instructor Note 30:

• Learning Objective 4: Recognize the changes in consumer behavior that impact service.

• Students should understand this Learning Objective since they are part of the consumer population and their behavior impacts the service they receive and/or give to consumers.

• Learning Objective Note: PPT 20 should be used with Learning Objective 4, pages 20-21.

Instructor Note 31:

• Activity: Have students respond to a discussion about societal factors they see facing people in the workplace today. Students will respond to questions about the factors that have affected or continue to affect you or others. What type of factors do you see? (e.g., more leisure time for television, sports, shopping, movies, night clubbing, more part-time workers, a greater number of older workers, more diversity in the workplace, and the like) Divide the group into several work groups of 4 or 5 people. Give each group a sheet of flip chart paper on which to write their impressions. What types of issues/problems are they observing? Why? Write a summary of their list on the board. Review the factors that were just discussed. Ask again: Are any of these players in your life or in your workplace?

• DESIRE FOR BETTER USE OF LEISURE TIME, p. 20

Instructor Note 32:

• Lead a discussion of the factors that drive more people to want to enjoy life, thereby stimulating their need for service industries (e.g., a desire to relax, enjoy children and grandchildren, and do the things one likes). Review the statistics that show the types of industries or other materials that will help you understand these societal issues. (Figure 1.9, page 20)

• Review the information about changes in the workforce with the advent of women, older workers and more diverse workers. Show the continued increase in service jobs.

• Activity: Have students review the daily or Sunday Classified advertisements in your local paper. For the next class, bring in job ads that show the types of businesses around the area and what type of occupational work people do.

• Activity: Have students review Customer Service Success Tip on page 20. If any want to own a service-oriented business, have them discuss ways to start a business (e.g., small business with a partner, small business without a partner, or work with someone to get some experience). Have them discuss what courses would be good to take in preparation for owning a business (accounting, business law, finance, customer service, marketing, or advertising to name a few).

• EXPECTATION OF QUALITY SERVICE, p. 21

Instructor Note 33:

• Ask students: What do you expect from a customer service professional? If you don’t get it, what do you do? People expect a fair dollar price to purchase a quality product or service. Students may likely say that they expect a knowledgeable worker who understands customer needs and who knows how to explain an item and to compare it with one from a competitor—someone who knows organizational policy and procedures and all the latest techniques of quality service.

• ENHANCED CONSUMER PREPARATION, p. 21

• Customers expect more from customer service personnel because customers are better educated. If expectations are not met, customers simply go to another place, a competitor. Business owners find they have to prove the worth of the product and service many times.

Instructor Note 34:

• Use PPT20 to summarize the Shifts in Consumer Behavior as you review, asking for examples of each on the slide.

Instructor Note: 35:

• Learning Objective 5: List the six major components of a customer-focused environment.

• Students should understand and relate to Learning Objective 5 in order to become more customer-focused as they work with customers and also as they relate to service providers in the business world.

• Learning Objective Note: PPT 21 should be used with Learning Objective 5, pages 21-26.

• THE CUSTOMER SERVICE ENVIRONMENT

Instructor Note 36:

• Review the Concept, p. 21. Use PPT21 to introduce the Components of a Customer Service Environment (see pages 21-22). Discuss the internal customer first (coworkers, employees of other departments or branches, others who work in the same department or branch, or others who work in the same organization). Quickly follow this discussion with the definition of external customers on page 23 (people outside the organization who seek out, research, buy, rent, or lease products or services offered).

• Activity: Select various students to fill groups who will present Work It Out 1.3, page 23, and 1.4, page 24. Have each group present their research and opinions about each Work It Out. Students will likely say in Work It Out 1.4 that external customers purchase products or services.

• External customers may be current customers or clients. The organizational culture is what the customer experiences. Ask Students: Think of your latest shopping experience: what culture did you encounter during that visit?

• Organizations must take care in hiring people. The positions are often hired by human resources.

Instructor Note 37:

• Review Figure 1.11, pages 24-25 with the class.

• Activity: Ask students to think about the qualifications of the employees who fill these positions. Ask them to make notes and to summarize the information in a one-page typed report. Students should make comments on people who work in these jobs and whether they think these workers do a good job (ask students to avoid mentioning specific names).

• Activity: Have students access the Salary Wizard (See Customer Service Success Tip on page 25) and research salary levels for 5 jobs; record these jobs on the board. Give specific instructions as to which companies you do or do not want students to research. The reports will be due the next class or at another time you designate.

• Activity: Work It Out 1.5 on page 26 can be assigned to a group of students who may be interested in human resources positions. Have them research new procedures being used to attract, hire and retain qualified employees. Ask the class to verify if the group would be likely to successfully recruit employees. The reports will be due at the next class or at another time you designate.

Instructor Note 38:

• Learning Objective 6: Explain how some companies address the changes impacting the service sector.

• Students should understand the impact of these changes on the service sector. These changes may possibly impact jobs they now occupy or positions they may secure after leaving school.

• Learning Objective Note: PPT22 should be used with Learning Objective 6, pages 26-27.

• ADDRESSING THE CHANGES, p. 26

Instructor Note 39:

• Review the Concept, p. 26.

• Discuss how some organizations address societal changes in order to provide better service. Use PPT22: Addressing the Changes to Provide Better Service; Customer-Based Organizations’ focus is to provide service excellence and an environment in which customer needs are identified and satisfied or perish.

• Peter Senge in his book The Fifth Discipline uses the term “learning organization.”

• Activity: Ask students to define this concept term. Review the term on page 26 in the text. Ask students to give at least one concept of the learning organization. Ask one student to lead the group and put the ideas on the board or other media.

• Ask students to respond to the statement: To excel, organizations must train all employees to spot problems and deal with them before the customer becomes aware that such problems exist. How would they develop this idea to make customer service seamless? Take 10 or 15 minutes to let the class discuss these concepts among themselves. Then bring them back together to finalize what they believe will become customer service concepts in the future.

SUMMARY, p. 27

Review the key concepts and Key Terms in the chapter. You may want to go back through the PowerPoint slides once more; quickly make a few comments related to each. Spend some time, maybe 5-10 minutes, reviewing the key points in the chapter.

KEY TERMS, p, 27

Review the key terms. Students should have used the Student Study Guide to help review and study the concepts.

REVIEW QUESTIONS, p. 27

You may want to divide the class into small groups or conduct a class discussion of the questions in the Review Section. Possible answers may vary, such as:

1. What is service?

Service is the ability of knowledgeable, capable and enthusiastic employees to deliver products and services to external or internal customers in a manner that satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return business.

2. Describe some of the earliest forms of customer service.

Neighbors took care of needs and often went around from farm to farm. Peddlers, vendors, and others went house to house. Some small towns had their own rural shops for their people.

3. What are some of the factors that have facilitated a shift to a service economy?

Many factors have contributed, including more women, more older people and more diversity in the workforce. The economy and technology are two major contributors to making a service economy. When people have enough disposable income, they can relax and then want services they can buy.

4. What have been some of the causes of the changing business environment in recent decades?

Some of the causes have been the advent and growth of technology; the economy; societal factors; deregulation of many industries; geopolitical changes; the increase of white-collar workers, women and older people in the workforce; a more diverse workforce; and an increase in the number of small business.

5. Describe the impact of a company’s culture on its success in a customer-focused business environment.

It is the organizational service factor that the customer encounters and that contributes to the overall service environment.

6. What role does the human resources element of the customer service environment play in customer satisfaction?

Motivated, enthusiastic, knowledgeable and skilled employees drive the service culture by providing quality service to the customer.

7. What two factors related to an organization’s products or deliverables can lead to customer satisfaction or dissatisfaction?

Quality and quantity of service

8. When organizations select a delivery method for products or services, where do they get information on the best approach to take?

Industry standards, customer expectations, evaluating capabilities and costs, and current and projected requirements.

9. What are the six key components of a customer service environment?

Customer, organizational culture, human resources, products/deliverables, delivery systems, and service.

10. Why are many organizations changing to learning organizations?

The organization values knowledge, education and employee training. They learn from the competition, industry trends and other sources, and they develop systems to support continued growth and development in order to remain competitive.

SEARCH IT OUT, p. 27

Instructor Note 40:

Assign the Search It Out activity as an out-of-class project and have students bring in their results to discuss during the next class.

COLLABORATIVE LEARNING ACTIVITIES, p. 28

Instructor Note 41:

Have students prepare the report as discussed in the activity. Bring it to class to share with the rest of the class. You may share your own educational background or that of someone you know well.

FACE-TO-FACE, p. 28

This is a growing business (PackAll is headquartered in Minneapolis) with franchises in 21 cities in the U.S. The main focus of the operation is shipment and mailing via parcel post of nonperishable items. Short-term storage of personal items in air-conditioned spaces and post office boxes are available for customers.

The company must train all employees and service delivery personnel consistently; therefore, all owners or operators must sign an agreement stating that they will comply before they can become a PackAll franchise. They must complete a rigorous eight-week training program that focuses on key management and business skills needed to run a successful business and educates employees on corporate philosophy and culture.

Management offers additional tips for guiding employee development. Owners or operators must also attend a retreat every three and six months to receive additional training.

You, a new employee of PackAll, have joined the company and have your orientation tomorrow. You will learn policies and procedures, techniques for handling customers, and specific job skills.

You were told upon hiring that you would be responsible for serving customers, providing information about services offered, writing up customer orders, collecting payments, and packing and labeling orders.

Now you are ready:

Think about your skills:

1. What interpersonal skills do you currently have that will allow you to be successful?

(Student answers may include: attention to detail, quick learner, eager to please, excellent at learning and working with new techniques and equipment, good customer service skills, and empathy and good personality.)

2. What general questions do you have about handling customers?

(Students may want to know how far they can proceed with a customer without asking for management intervention.)

3. If a customer asks for a service the PackAll does not provide, how will you handle the situation? Exactly what will you say?

(Students may say: Let’s see what we can do to help you with this. I believe we can work it out for you with some input from the manager. Let’s get (him or her) over here to explain the services we do offer and see what we can do to alter those services to fit your needs.) Students may feel that they need management intervention unless they have been given authority to go ahead and make decisions.

Instructor Note 42:

Divide the class into equal sized groups (no more than 5-7 per group) and have them review the situation. Have the groups discuss the situation and come to a consensus on a course of action based on the questions at the end of the case study.

Give them approximately 20-25 minutes for discussion, then reassemble the class to discuss their opinions. Add any points you feel are pertinent.

Note: students’ answers will vary for the questions. See above for possible solutions.

IN THE REAL WORLD, p. 29

Instructor Note 43:

Have the students prepare the information and then use it for solving the issues. Any student may find different information by searching the Website. No final solutions are given here.

PLANNING TO SERVE, p. 29

Instructor Note 44:

Have students complete this activity. Review the issues and strategies they list carefully, making any comments or suggestions on their paper that you think will clarify the concepts they should be learning.

QUICK PREVIEW, p. 29

The answers to the Quick Preview are provided.

ETHICAL DILEMMA 1.1, p. 29. Possible answers are provided in the text.

VIDEO NOTES:

If you ordered the Videos for Customer Service: Skills for Success, 4th Edition, locate Video 1 for Chapter 1: The Truth About Customer Service. This video presents a real-world situation housed in a medical office environment. The video deals with the idea of internal and external customers. Introduce the video to the students. Have them watch and take notes about the attitudes and behavior of the staff in the video. Ask the class to respond to the speech patterns, language and attitude of the players in the video. How do they portray an office environment? What improvements would students recommend to the staff? (The class may possibly comment on the use of slang language or the supervisor’s mannerisms when speaking with Joe. They may likely comment on the body language Joe demonstrates when talking on the telephone with Pamela.)

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