I read an interesting article from Harvard Business Journal "Influencing Customer Behaviour in Service Operations" today. The main idea is that there's only 2 ways for you to influence or control people's behaviour. The donkey with a carrot or stick analogy. However, there's several variations on how to implement this analogy. It'll be interesting to see this theory put into practice at work.
Instrumental Control
You control by rewarding or punishing individuals according to their behaviour
1. Nature of Managerial Influence - Explicit Rewards and Penalties
2. Focus of Managerial Influence - Individual
3. Positive Benefit - Rewards or Discounts
4. Negative Implication - Penalties or Charges
5. Economics - Expensive to Implement
6. Example at work - You get a $5 fine for coming late to the meeting.
7. Example (Companies) - Credit Card Services (late payment penalty).
Normative Control
You control by using ('manipulating') people's emotions and feelings according to their behaviour
1. Nature of Managerial Influence - Social Approval and Disapproval
2. Nature of Managerial Influence - Community
3. Positive Benefit - Pride or Sense of Belonging
4. Negative Implication - Shame or Rejection
5. Economics - Free or Low Cost to Implement
6. Example at work - You get a praise from everybody for a job well done.
7. Example (Companies) - Ebay, Amazon (allows public to see public record of buyers/sellers track records)
Normative Control works best when trust and interdependency have already been built up between the company and the customers. It also helps when customers understand that their actions do matter.
Therefore, transparency and sense of belonging are keys to success in no matter what we do?
Wednesday, March 14, 2007
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5 comments:
????.... zzzzzzzzzzzzzzz......
veeery funny. :P
jon is a crankypuss
ZZZZZZZZZZZZZZZZZZ!!!
tsk... tsk... kids.
yeah, you still snore even in blogs! :P
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