Look to consumers to increase productivity.

When productivity is a problem in manufacturing, managers turn to the R&D department or operations for help. In services, however, especially ones where there is a lot of contact with the customer, such in-house groups cannot by themselves improve productivity. Because services involve the customer in production, are labor-intensive, and are time-bound, consumer behavior itself is critical. Increasing productivity, then, becomes a matter of changing consumer behavior and expectations, and that depends on enlisting consumer acceptance of the change. The authors describe five instances where managers have been less successful than they might in improving productivity in services because they did not take the needs of consumers into account. Then, drawing lessons from these experiences, they discuss three marketing strategies managers can employ in influencing consumers to become a part of the service process itself. [ABSTRACT FROM AUTHOR]