PG7-Process Selection Services)

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Service Generalizations

1. Everyone is an expert on services.

2. Services are idiosyncratic.

3. Quality of work is not quality of service.

4.Most services contain a mix of tangible andintangible attributes.



Service Generalizations (Continued)

5. High-contact services are experienced,whereas goods are consumed.

6. Effective management of services requiresan understanding of marketing andpersonnel, as well as operations.

7. Services often take the form of cycles of

encounters involving face-to-face, phone,internet, electromechanical, and/or mailinteractions.



Service Businesses

y Facilities-based services :

Customers must go to the place of business.

y Field-based services :

Production and consumption take place in thecustomer¶s environment.



Management of Services

y Internal Services are the management of

services required to support the activities of

the larger organization. E.g. Data

Processing, Accounting, Engineering, andMaintenance.



Internal Services

Internal Supplier

Internal Supplier

Internal

Customer

ExternalCustomer



The Service Triangle

The

Customer

The Service

Strategy

The

People

The

Systems



Characteristics Of Services

1. Intangible

2. Variable output

3. High customer contact

4. Perishable

5. Service inseparable from delivery

6.

Decentralized7. Consumed more often

8. Easily emulated



Elements of Service Design

y Target Market (Who?)

y Service Concept (How do we differentiate?)

y Service Strategy (Service Package and the

Operating Focus)

y Service Delivery System (Process, Staff, and

Facilities)



Service strategy - Operating Focus

(Performance Priorities)

y Treatment of the customer in terms of friendliness and helpfulness

y Speed and convenience of service delivery

y Price of the servicey Variety of services (one stop shopping

philosophy)

y Quality of tangible goods that are central to or

accompany the servicey Unique skills that constitute the service

offering



Best Practices emphasized by Service

Executives

Items most Emphasized Item Mean

Accessibility 4.02

Openness to employees 3.91

Leadership 3.87

Listening to the customer 3.82

Service Tangibles 3.79

Employee handling of service failures 3.79

Competitive positioning 3.72

Quality Values 3.68

Consistently meeting customers¶ needs 3.68

Customer orientation 3.66

Management involvement in quality 3.66





Service Design

Performance Specifications

Design Specifications

Delivery Specifications



Service

marketingPromise

Customer

expectations

Service delivery

systemExecution of

promise

Customer

experience

Customer

perception

Service

advantage

Service oblivion

Delight

Satisfaction

Dissatisfaction

Irritation

Anger

Service Measurement / Monitoring & Recovery Process

Marketing

Operations

Monitor and

Control

Execute recovery

plan, if necessary



Service-System Design Matrix

Mail contact

Face-to-face

loose specs

Face-to-face

tight specsPhone

Contact

Face-to-facetotal

customization

Buffered

core (none)

Permeable

system (some)

Reactive

system (much)

High

LowHigh

Low

Degree of customer/server contact

Internet &

on-site

technology

Sales

Opportunity

Production

Efficiency



Service Blueprinting and Fail- Safing

y Service Blueprint is the flowchart of a service

process, emphasizing what is visible and

what is not visible to the customer .



Example of Service Blueprinting

Brush

shoes

pply

polish

ail

point

Buollect

payment

lean

shoes aterials

(e.g., polish, cloth)

elect and

purchase

supplies

tandard

execution time

2 minutes

Total acceptable

execution time

5 minutes

30

secs

30

secs

45

secs

15

secs

Wrong

color ax

een by

customer 45

secs

ine o

visibility

Not seen by

customer but

necessary to

per ormance



Poka-yokes (Avoid Mistakes)

Poka-yokes are procedures that preventmistake from becoming a service defect.

Classification of Poka-yokes :

- Warning Methods- Physical or Visual contact methods

- Three T¶s :

Task to be done ( Was the car fixed right ? )Treatment accorded to customer ( Was the Service

Manager courteous ? )

Tangible or environmental features ( Was the waiting

area clean and comfortable ? )



Service Fail-safing

Poka-Yokes (A Proactive Approach)y Preventing a

mistake from

becoming a

service defect.

y

How can we fail-safe the three

Ts?

Task

TangiblesTreatment



Have we compromised one of the 3 T¶s?



Three Contrasting Service Designs

y The production line approach: McDonald

y The self-service approach : Company Websites,

Automatic Teller Machines, Self-service Gas Stations,

Salad Bars,In-Room Coffee-Making Equipment inMotels.

y

The personal attention approach : ³Loose,unstructuredprocess relying on developing a relationship between

the individual salesperson and the customer´.





arac er s cs o a e - es gne

Service System (Continued)

5. It provides effective links between the back officeand the front office so that nothing falls betweenthe cracks. ³No fumbled hand-offs´.

6. It manages the evidence of service quality in sucha way that customers see the value of the serviceprovided.Customer should be made aware of theimprovement.

7. It is cost-effective. Minimum waste of time andresources.



Elements of good service guarantee

³Service guarantee is a promise of servicesatisfaction backed up by a set of actions

that must be taken to fulfill the promise´.

Elements of good service guarantee :

y Unconditional (no small print)

y Meaningful to the customer (the payoff fully

covers the customer¶s dissatisfaction)

y Easy to understand and communicate (for

employees as well as customers)

y Painless to invoke (given proactively)

Documents

PG7-Process Selection Services)