The Impact of Synchronicity and Contiguity on the Customer Service-Encounter Process Leonce Newby, Tony Ward, Central Queensland University Abstract This conceptual paper addresses the various ‘states’ that a customer goes through during the cyclical purchasing process in a consumer setting. Previous work from a face-to- face service encounter scenario (that is, synchronous and contiguous) is modified to address the purchasing process using the internet. The paper presents a five-phase model specifically for an internet purchase and identifies the main customer variables for each of the five states. The face-to-face encounter scenario is modified to account for the asynchronous and noncontiguous nature of an internet purchase, thus providing theorists and practitioners with a new model for evaluation of the process that a customer goes through when purchasing on the internet. Introduction Marketing is widely accepted as a process whereby a customer receives a good or service product from a provider in exchange for something of value. A role theory perspective suggests that exchange interactions between customer and service provider occur in a dyadic customer/provider service encounter (Solomon, Surprenant, Czepiel and Gutman, 1985). The dyadic service encounter provides the context in which customer interaction occurs so it is important to consider the dimensions of the service encounter to reach an understanding of all the antecedents influencing the interaction occurring in the encounter (Chandon, Leo and Philippe 1997). Two significant factors that impact on the exchange interaction have been identified as time (synchronicity) and customer/provider juxtaposition (contiguity) (Ward and Hafey, 2003). However, the effect of variations in synchronicity and contiguity on an exchange encounter has not been widely considered. Since service encounter research has been extensively undertaken for some time a conceptual analysis, informed by cognitive constructivism theory (Talja, Tuominen and Savolainen 2005), of the extant service encounter literature was previously undertaken which resulted in the development of a comprehensive antecedent classification model of the face-to-face cyclical service encounter (Ward and Newby, 2006). The model contained five parts in order to examine the five phases of an encounter: · · · · · Phase 1: The Pre-Encounter State (PrES); Phase 2: Service Encounter (SE); Phase 3: Post-Encounter Evaluation (PEV); Phase 4: Post-Encounter State (PES) and Phase 5: Post-Encounter Behaviour (PEB). The antecedents impacting on the interaction in an encounter have been identified in the model to allow appreciation of the possible sources of discord between the customer/provider actors. Recognition of sources of potential differences allows marketers to come to ‘a deeper 3415 understanding of customer relationships’ (Roos 2002, p. 193). The model’s holistic approach provides insight for customer service managers and staff by showing them different aspects of each phase of the cyclical process. Traditionally, most service encounters have taken place in a personal selling (face-to- face) context. However, interaction may also occur through advertising, sales promotion, public relations, and direct marketing. The different tools used to promote the customer/provider exchange interaction vary in the amount of customer/provider synchronicity and contiguity that they utilize. Figure 1 positions commonly used promotional tools on the basis of the degree with which they require synchronous marketing and contiguous marketing to achieve their purpose. The model demonstrates that these tools fall into four groups. These groups indicate that potentially there may be four different types of cyclical service encounters. FIGURE 1 - Model of synchronous and contiguous states Contiguous marketing Synchronous/ Contiguous (Personal selling) Asynchronous/ Contiguous (Advertising; Sales promotion) Asynchronous marketing Synchronous Marketing Asynchronous/ Non-Contiguous (Public relations) Synchronous/ Non-Contiguous (Internet, mail and telephone direct marketing) Non-contiguous marketing The significance of the time and service setting variables, synchronous/contiguous marketing, in the personal selling or face-to- face type of encounter, was acknowledged in the cyclical service encounter exchange models developed by Ward and Newby (Ward and Newby 2004; Newby and Ward 2005; Ward and Newby 2006). However, the impact of variations in the synchronous/contiguous dynamic has not been examined in relation to the other types of service encounter exchanges identified in Figure 1. Advertising and sales promotions do not require the customer and provider to be present at the same time to be effective, though these types of provider promotional efforts must occur in the vicinity of the customer for the customer to benefit from them. Public relations can take place at different time periods for the customer and provider and does not necessarily require the provider and customer being in the same place. Synchronous/non-contiguous marketing takes place during the use of Internet, mail and telephone marketing: these tools allow marketers to ‘communicate with their customers in real-time’ (Kotler, Armstrong, Brown and Adam 1998, p. 532) but the marketer is not required to be in the same place as the customer for interaction to occur. With such variations in the time/place dynamic, the effect of this dynamic on different types of service encounters calls for consideration since it has been established that excellent quality interactions in customer service encounters contribute significantly to a service organisation’s 3416 competitive advantage (Zeithaml and Bitner, 1996). In this paper the cyclical model will be examined in its application to Internet service encounters. Internet service encounters In the last decade, technology has had a remarkable influence on the growth of service delivery options (Dabholkar and Bagozzi, 2002) and a profound effect on services marketing (Bitner, Brown and Meuter, 2000). In order to remain competitive, retailers are increasing their technology-based service options (Fitzsimmons and Fitzsimmons, 1997) with retailers adopting technology to deliver their services. The adoption of this technology has resulted in reduced costs, the creation of value added services for customers (Zhu, Jr and Chen, 2002), facilitated their employees’ jobs, and provided self-service options for customers (Dabholkar and Bagozzi, 2002). Technology-based services can provide a good opportunity for organisations to provide new models for service design strategies and develop new service products (Henderson, McGoldrick and McAdam, 2003). It is important to define technology-based services. A review of the current conceptualisation of technology-based service revealed that general automated service definitions included specific reference to the internet, but they negated the inclusion of other important automated service types, such as telephone service and automated service delivery outlets. In this research the internet is the sole focus. Thus the following definition was adopted: ‘interactive, content-centred and internet-based customer service, driven by the customer and integrated with related organisational customer support processes and technologies’, adapted from Ruyter, Wetzels and Kleijnen (2001, p.186). Adoption of this definition is supported by the concept that a web-based service is delivered through the internet whereby the customer’s interaction or contact with the organisation was limited to the information and communication technology itself (Surjadjaja, Ghosh and Antony, 2003) and other definitions which refer to web sites-based customer service (Surjadjaja, Ghosh and Antony, 2003; Parasuraman, Zeithaml and Malhotra, 2005). By positioning specific empirical research findings relating to internet synchronicity and contiguity in the broader context of the encounter, the model has the potential to assist both theorists and practitioners. The cyclical process The face-to-face model of the customer service-encounter cyclical process in a consumer context has five phases: Phase 1 – Pre-Encounter State (CPrES) Both primary actors involved in the encounter will enter the Pre-Encounter State with a combinations of their persona and past experiences. Phase 2 – Service Encounter (SE) The service encounter comprises the interaction between the customer and service provider. P h a s e 3 – P o s t -Encounter eValuation (PEV) The post-encounter evaluation (PEV) incorporates the feelings, emotions and attitudes held by the customer after the encounter. Phase 4 - Post-Encounter State (CPES) The customer’s post-encounter state (CPES) will result from the evaluation phase and the customer will emerge in a different state to that prior to the encounter with respect to the service provider organisation. Phase 5 - Post-Encounter Behaviour (PEB) In addition to the ever-present persona, six main areas have been identified that are related to the customer’s post encounter behaviour (CPEB) consisting of: the customer’s post-encounter state; repeat purchase behaviour; word- 3417 of- mouth; search for alternative supplier/product; switching behaviour; complaining behaviour and feedback to the supplier; and, the effect of new promotions activities (Ward and Newby 2006). An examination of the variables identified for each of these five phases shows that many are specific to the face-to- face encounter, and would be different for other combinations of synchronicity and congruity. Of specific interest to this paper is the case of marketing using the internet. The internet was chosen as it is a major emergent channel of distribution, it is relatively new (compared to other channels) and it involves a completely new approach to marketing. Research question: What changes need to be made to the service encounter holistic cyclical model to make it applicable to internet marketing? The Internet Service Encounter Interaction Model The model (Ward and Newby 2006) shows the main variables for both customer and service provider in each of the five phases. For this paper as the service provider is ‘replaced’ by a computer, only the customer variables will be addressed, though note will be taken of how the different ‘service provider’ impacts on the customer. Figure 2 shows the customers PreEncounter State (PrES) for the internet scenario which is the same as for a face-to-face encounter. While the same five variables impact on the Customers PrES, the nature of ‘persona’ and ‘mood and emotions’ will be reduced due to the prospect of lack of direct faceto-face contact with a service provider. FIGURE 2 - Phase 1: Pre-Encounter State (PrES) FIGURE 3 - Service Encounter (SE) C Persona Expectations C Pr E S Prior product Service Setting C Persona knowledge/cognition Mood and emotions Customer’s PreEncounter State Time Customer’s encounter state Emotions Promotions activities Product Knowledge Figure 3 shows the Service Encounter, which in this case is neither synchronous nor contiguous. Two items from the face-to-face case are removed, namely the ‘service provider’ and ‘other customers’. Again, the impact of persona will be reduced, and the ‘emotions and interaction’ variable is modified to just ‘emotions’ as there will be no interactions with people. 3418 Figure 4 shows the modified Post-Encounter evaluation for the customer. The same variables are all retained in this case as the experience of the ‘purchase process’ although different in nature, will still apply, as will ‘product usage’, whether or not the ‘needs and wants’ are satisfied, and the ‘quality of the customer service and the product’. FIGURE 4 –Post-Encounter eValuation (PEV) SE C Persona Purchase process Product usage Needs and wants met Customer’s postencounter evaluation Quality CSQ &Product The Post- Encounter State (PES) and Post-Encounter Behaviour phases will both retain the same variables, although each will be affected differently due to the nature of the purchase process, and they are shown in figure 5. FIGURE 5 –Post-Encounter State (PES) C P EV FIGURE 6 –Post-Encounter Behaviour C Persona Relationship strength C Persona Repeat purchase Satisfaction Perceptions of supplier CPES Customer’s postencounter state W-O-M referrals Search for new supplier/product Loyalty Complaining behaviour Customer’s postencounter behaviour New promotions activities Discussion The models above provide a guide for both theory and practise that have been specifically tailored for the internet purchase scenario. Of special interest is that the synchronous/ contiguous and this internet scenario both have the same variables in the final phase, postencounter behaviour. Thus, in terms of these most important ‘outcome variables’ from the purchasing process, customers will evaluate their experience in a very similar manner. 3419 A limitation of the paper is that there is insufficient space to allow a detailed description of how each variable in each model impacts on each state and subsequent state. 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