Glossary 601..612

activity-based costing Costing method that breaks down the organization into a set of activities, and activities into tasks, which convert materials, labour and technology into outputs. activity time The time required to perform one activity at one station. adequate service The level of service quality a customer is willing to accept. adverse conditions Positive and negative employee actions under stressful conditions. after-sales surveys A type of satisfaction survey that addresses customer satisfaction while the service encounter is still fresh in the customer’s mind. ambient conditions The distinctive atmosphere of the service setting that includes lighting, air quality, noise and music. anticipating Mitigating the worst effects of supply and demand fluctuations by planning for them. apathetic customers Consumers who seek convenience over price and personal attention. applications-on-tap Computer programs, such as word processing or web design, that can be rented via e-service providers. approach/avoidance behaviours Consumer responses to the set of environmental stimuli that are characterized by a desire to stay or leave an establishment, explore/interact with the service environment or just ignore it, or feel satisfaction or disappointment with the service experience. arousal–nonarousal The emotional state that reflects the degree to which consumers and employees feel excited and stimulated. ASPs ApplicationServiceProviders:e-serviceorganizations that rent computer programs such as word processing or web design applications. assurance dimension The SERVQUAL assessment of a firm’s competence, courtesy to its customers and security of its operations. automation Replacing tasks that required human labour with machines. basic business strategy A firm’s fundamental approach as to whether it produces a standardized, low-cost, high-volume product or a differentiated, customized, personalized product. beliefs Consumers’ opinions about the provider’s ability to perform the service. benchmarking Setting standards against which to compare future data collected. benefit concept The encapsulation of the benefits of a product in the consumer’s mind. benefit-driven pricing A pricing strategy that charges customers for services actually used as opposed to overall ‘membership’ fees. blueprinting The flowcharting of a service operation. bottlenecks Points in the system at which consumers wait the longest periods of time. boundary-spanning roles The various parts played by contact personnel who perform dual functions of interacting with the firm’s external environment and internal organization. boundary tier The tier in the three-tiered model that concerns itself with the individuals who interact with the customers – the boundary spanners. breaks company policies When a customer refuses to comply with policies that employees are attempting to enforce. buffering Surrounding the technical core with input and output components to buffer environmental influences. business analysis The way an organization improves its future activities based on past performance and research on how it can innovate its current activities to satisfy the needs of the customer. business environment The social, technological and financial environment in which a firm operates and markets. buying centre All the members of the team that play some role in the purchase decision of goods and services for and on behalf of the organization.