Marking Scheme Group Assignment One Services Marketing Semester: Spring 2011

Case: DR. BECKETTS DENTAL OFFICE

1. Which of the eight elements of the services marketing mix are addressed in this case? Give examples of each P you identify. (48 marks i.e. 6 marks per an element of the service mix)

Product elements: Becketts core product is to provide superior dentistry in a quality, caring environment. Both facilitating and enhancing supplementary services add value to the core (see question 4 for a complete description) and distinguish Becketts practice from those of competing dentists. Place and time: Because sanitary conditions and specialized equipment are needed for most dental procedures, patients must come to Becketts office for treatment. Service delivery normally occurs between 7 a.m. and 5 p.m., but employees will occasionally work late to finish a procedure or accommodate a special request from a patient. Beckett also sees patients after hours and on weekends to provide emergency care. Process: Dental care is a people-processing service, so patients must be physically present to receive care. Beckett has spent invested both time and money in improving both front office and back office service delivery. Productivity and quality: Beckett has positioned her practice on the basis of high-quality service provision. But she is also aware that productivity is critical. These elements are reflected in the internal mission statement displayed in the back office, which reads: It is our goal to provide superior dentistry in an efficient, profitable manner within the confines of a caring, quality environment. Beckett moved to a new office because her old one was too cramped to allow her staff to work efficiently. She also redesigned all of the office systems (billing, ordering, lab work and patient treatment). One of her main goals was to standardize some of the routine procedures so that error was reduced and all patients would receive the same level of care. Specific times have been assigned for each procedure, and the staff work very hard to see that these are met. Front office staff attempt to fill cancellations to make sure office capacity is maximized. Staff members will substitute for one another when necessary or help with tasks that are not specifically in their job descriptions to make things run more smoothly. People: Beckett understands that her employees are a critical part of service delivery. She states that 90 percent of patients perceptions of quality come from their interactions with the front desk and other employeesnot from the staffs technical skills. Beckett treats her staff as both friends and valuable company assets. She expects a lot from them but also motivates them with training, profit sharing, and rewards like bonuses and vacations when the practice meets its financial goals. While patients are most affected by the employees, they also come into contact with other patients in the waiting room.

Because many of Dr. Becketts examining rooms are adjacent to one another, patients can also overhear other peoples conversations and reactions to procedures.

Promotion and education: Becketts office does no advertising or promotions. All of her new business comes from positive word of mouth by current patients. She believes that referrals are a real advantage because new patients dont come in cold. Because friends or family have already told them about her service, she doesnt have to sell herself. However, Beckett does put a lot of energy into educating patients to be partners in their own dental health care. This philosophy is reflected in the patient mission statement displayed in the waiting area: We are a caring, professional dental team serving motivated, quality-oriented patients interested in keeping healthy smiles for a lifetime. Our goal is to offer a progressive and educational environment. Your concerns are our focus. Becketts staff educates patients in a variety of ways, including verbal discussions, videotapes, and pamphlets. Physical evidence: Beckett carefully manages the physical evidence of service. The patients first experience is a clean, nicely landscaped parking lot. The new office is visually attractive, and the Scandinavian design reflects Becketts desire to balance function with aesthetics. The entire back office staff (including the dentist) wears matching uniforms in cheerful shades of pink, purple, and blue that match the office dcor, while the front office employees wear professional business attire. The technical equipment looks very modern and is spotlessly clean. State-of-the-art computerized machinery is used for some procedures. Dr. Becketts dental degrees are prominently displayed in her office, along with certificates from various programs that she and her staff have attended to update their technical skills. The office logo and business cards are done in a style that matches the high-quality image Beckett wants to portray. Price and other costs: Patients may incur both financial and non-financial costs. Most financial costs are covered by insurance, but patients must pay any additional expenses. There are extensive non-financial costs associated with the servicethese are covered in detail in Question 2.

2. Why do people dislike going to the dentist? Do you feel that Beckett has addressed the problem effectively? ( 20 marks. 5 marks for identifying a cause and providing a solution) Many people dont like going to the dentist because of the non-financial costs in time, effort, and discomfort that are typically associated with the service process. Dental patients can sometimes get the financial cost of treatment covered by insurance but experience all four kinds of nonfinancial costs to varying degrees:

Time costs: These include both time waiting for service and the actual service delivery. Becketts office tries to minimize waiting time by having patients make appointments (a method of reservations) and scheduling an appropriate number of patients each day. Patients whose wait is longer than twenty minutes are given the option to reschedule. The front office employees often call patients if they know there will be a delay. Becketts office has tried to minimize in-process waits by standardizing most of the routine procedures. Specific times are allotted to each of these procedures, and the staff works hard to see that these are met. Physical costs: Visits to the dentist often involve discomfortranging from the mildly unpleasant sensation of having ones teeth cleaned to the severe pain accompanying a more intrusive procedure. Some patients go to the dentist for help in reducing pain. But many others feel fine when they enter the dentists office, only to be miserable upon leaving as a result of the treatment they receive! Becketts staff tries to be gentle in treating patients, and Novocain and gas are used when necessary to reduce painful sensations during procedures. The employees also warn patients when a procedure is likely to be uncomfortable or painful. Patients who will experience discomfort after they leave Becketts office are provided with soothing mouthwashes and prescriptions for pain-relieving drugs. Psychological costs: Fear is the main psychological costboth before and during a visit to the dentist. Most of this fear is related to the expectation that unpleasant physical costs will be experienced during dental care. There is also a cost of feeling embarrassed to leave the dentists office with a temporarily swollen mouth and altered speech. Becketts employees try to reduce psychological costs by educating patients (through discussion or with brochures and videos) about the specific procedures they will be undergoing. Sensory costs: There are many sensory costs associated with a visit to the dentist. Patients encounter unfamiliar sights (e.g., the frightening-looking dental equipment), sounds (e.g., whining drills, teeth being ground), smells (e.g., the burnt smell from drilling, the medicinal smells of the dental materials), and tastes (e.g., blood, the dental materials). While Becketts employees cant reduce most of these costs directly, they attempt to offset them by decorating the office in soothing colors and providing distractions like music (played in the office and also available through headphones if the patient has a special request). Patients whose procedures are lengthy are given pillows and blankets so that they wont get cold from sitting still for a long time.

3.

How do Beckett and her staff educate patients about the service they are receiving? What else could they do? (20 marks. 10 marks for the existing methods of educating patients as stated in the case and 10 marks for new ideas/methods well explained)

All new patients have an initial exam with Dr. Beckett so she can do a needs assessment and educate them about her service. Before any non-routine procedure, Beckett discusses with each patient the reasons for her treatment recommendations and the possible options. The office staff also provides information about specific dental procedures through conversations with patients, and videos and brochures are available. Beckett does not yet have a Web site, but this might be a very useful tool for educating and building relationships with her patients (especially since they are primarily white-collar workers who match the demographics of Internet users).

4.

What supplementary services are offered? How do they enhance service delivery?

Becketts service delivery involves both facilitating and enhancing supplementary services. The facilitating services are required in service production, while the enhancing services add value to the core product. (12 marks in total. 1.5 marks per each supplementary service identified and how it contributes to the core service) Facilitating supplementary services:

Information: Becketts staff tells patients about dental procedures and costs before treatment occurs. During treatment, patients are advised about what is happening and how long the procedure will take to complete. Order-taking: Whenever possible, patients make an appointment (a reservation) for dental care. For a routine cleaning and exam, patients may have to wait three to four months if they dont have their appointments automatically scheduled every six months. Less routine treatments (like crowns or gum repair) are scheduled sooner. Emergency procedures (which disrupt the normal order-taking process) are handled immediately even if they occur after regular office hours or on weekends. Billing: Becketts employees contact patients insurance companies to collect payment. Office policy requires patients to pay any fees not covered by insurance at the time of treatment, but additional statements are mailed if necessary. Payment: While insurance covers most costs, patients sometimes have to pay additional fees. They can do this via cash, check, or credit card.

Enhancing supplementary services:

Consultation: Beckett and her staff consult with patients both before and after treatment. They hope that by educating patients about proper maintenance (like flossing, brushing, and regular checkups), future corrective procedures can be avoided. They also discuss non-routine treatments with patients and provide counseling about how to maximize their treatment outcomes. Hospitality: Becketts office is designed to maximize guests comfort. The waiting room and reception area is attractively furnished. Live plants and flowers are abundant, and the walls are covered with art. Classical music plays softly. Patients can enjoy a cup of coffee or tea and browse through current magazines while they wait. The chairs in the examining rooms are covered in leather and are very comfortable. Each room has a large window that allows patients to watch birds eating at the feeders. Mobiles hang from the ceiling to distract patients from the unfamiliar sounds and sensations they are experiencing. Headphones are available with a wide selection of music. Some of the most successful hospitality services came from staff suggestions about how to improve patient care. These include follow-up calls to patients after major procedures; a goodie box for patients that contains a toothbrush, toothpaste, mouthwash, and floss; buckwheat pillows and blankets for patient comfort during long procedures; and a photo album in the waiting area with pictures of staff and their families. Safekeeping: Parking is available in a clean, nicely landscaped lot right in front of the office. There are coat racks in each examining room where patients can hang coats and purses. Children can play with toys or watch videos in a conference room under the supervision of front office staff while their parents receive treatment. Exceptions: Becketts employees treat emergencies when they occureven if this means Beckett has to come in after hours or on weekends. Service failures of any kind are corrected immediately (e.g., replacing a broken temporary tooth or refitting a crown). If payment is a problem for patients, the front office staff will attempt to work out a reasonable billing schedule.