Lorenzo attended his first antique auction last night. He did not enjoy the experience because a number of the attendees smoked and Lorenzo does not smoke. Also a number of people did not seem serious about buying. It appeared to Lorenzo that some attendees were there simply to visit with their friends. Lorenzo was there to buy and he often had trouble hearing the auctioneer because of the talking. In terms of customer participation, what is the term used to describe Lorenzo's interaction with the other attendees? What advice would you give the auction house if they wanted to improve the auction experience for customers like Lorenzo?
What will be an ideal response?
Incompatibility. The auction house should understand that the auction is an example of a service which features many characteristics that increase the importance of customer compatibility including: 1) customers are in close proximity to each other, 2) verbal interaction takes place among customers, 3) the service attracts a heterogeneous customer mix, and 4) customers are expected to share time, space, or service utensils with each other. The auction house should endeavor to manage its multiple and sometimes conflicting customer segments, which is known as compatibility management. Although it does not seem likely that the auction house will be able to keep differing customers separated, there are several other strategies that might be appropriate. The auction house should train employees to be sensitive to potential customer-to-customer conflicts and gently discourage unwanted behaviors during the actual auction. It should also consider instituting a "customer code of conduct" to regulate smoking and improper talking behaviors during auctions. Designating a separate smoking or "networking" area is another possible solution, as are "no smoking" signs placed in strategic and noticeable locations. Employees could then verbally encourage auction attendees to step to the designated area to smoke and converse. Student responses may vary, but should address key strategies for managing the customer mix.
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