Service Operations (SO) Week 3 - Vinay Kalakbandivkteaching.weebly.com/uploads/1/4/3/9/14393508/week_3_for_upload.pdfService Blueprint of Luxury Hotel Steps in designing a blueprint

06-11-2016

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Week 3

Vinay Kumar Kalakbandi

Assistant Professor

Operations & Systems Area

09/11/2014 Vinay Kalakbandi 1

Service Operations (SO) Post Graduate Program for Working Executives 2016-17

This week on Service Operations

• Recap

• Service Design fundamentals

• Servicescapes

• Service blueprinting


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Recap

• Service characteristics

• Service classifications

• Service economy

• Strategic Service Vision


SERVICE SYSTEM DESIGN


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Services comprises of

• Service outcome

• Service experience

• Which is important?


Service design elements

• Structural – Delivery system, Facility design, Location

• Servicescapes

– Capacity planning • Queuing models

• Managerial – Service quality management

– Managing supply and demand • Yield management, demand steering

– Managing the service encounter • Degree and nature of interaction between customer and server

– Information: and how you use it!

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Service/Product Bundle

Element Core Goods

Example

Core Service

Example

Business Custom clothier Business hotel

Core Business suits Room for the night

Peripheral

Goods

Garment bag Bath robe

Peripheral

Service

Deferred payment

plans

In house restaurant

Variant Coffee lounge Airport shuttle


The Service Package

• Supporting Facility: The physical resources that must be in place before a service can be sold. Examples are golf course, ski lift, hospital, airplane.

• Facilitating Goods: The material consumed by the buyer or items provided by the consumer. Examples are food items, legal documents, golf clubs, medical history.

• Information: Operations data or information that is provided by the customer to enable efficient and customized service. Examples are patient medical records, seats available on a flight, customer preferences, location of customer to dispatch a taxi.

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The Service Package (cont.)

• Explicit Services: Benefits readily observable by the senses.

The essential or intrinsic features. Examples are quality of meal,

attitude of the waiter, on-time departure.

• Implicit Services: Psychological benefits or extrinsic features

which the consumer may sense only vaguely. Examples are

privacy of loan office, security of a well lighted parking lot.

• Peripheral/Ancillary services and their service

packages!

The Service Package


Supporting Facility

Facilitating

Goods Information

Explicit Services

Implicit Services

Service

Experience

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Exercise

• Cook it yourself restaurant

• Drive through car wash

• Car Sharing service

• Mobile wedding chapel

• Pet boarding facility


SERVICESCAPES


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What place is this?


What place is this?


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Physical evidence

• The environment in which the service is

delivered and where the firm and the customer

interact, and any tangible commodities that

facilitate performance or communication of the

service.


Elements of Physical Evidence

10-18

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Examples of Physical Evidence from

the Customer’s Point of View

10-19

Examples of Physical Evidence from

the Customer’s Point of View

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Typology of Service Organizations Based on Form

and Use of the Servicescape

10-21

Whom the

servicescape will affect

Flow of the experience

Meaning customers attached to it

Satisfaction

Emotional connections to company

How Does Physical Evidence Affect the

Customer Experience?

10-22

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Roles of the Servicescape

• Important elements used in positioning a service organization.

• Package: ‘wrap’ the service and convey what is ‘inside’ – conveys expectations

– influences perceptions

• Facilitator – facilitates the flow of the service delivery process

• provides information (how am I to act?)

• facilitates the ordering process (how does this work?)

• facilitates service delivery

Eg. International traveler find the a poorly designed airport with few signs, poor ventilation, and few places to sit or eat

• Clue management: the process of clearly identifying and managing all the various clues that customers use to form their impressions and feelings about the company.

10-23

Speedi-Lube Spells Out the Service Offering

10-24

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Package

Facilitator

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Roles of the Servicescape (continued)

• Socializer: Helps to convey expected roles, behaviors, and relationships

– facilitates interaction between:

• customers and employees

• customers and fellow customers

• Employees and fellow employees

• Differentiator

– sets provider apart from competition in the mind of the consumer

Socializer:

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Differentiator

Understanding Servicescape

Effects on Behavior

• Stimulus-organism-response theory

– Stimulus = multidimensional environment

– Organism = customers and employees

– Response = behaviors directed at the environment

• Proposition:

Dimensions of the servicescape will affect customers and

employees and they will behave and respond in different ways

depending on their internal reactions to the servciescape.

10-30

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10-31

Responses to the servicescape

Physiological

Affective

Behavior

Cognitive


Beliefs

Categorizations

Symbolic meaning

Pupil Dilation

Tears, perspiration etc

Arousal

Complexity

Pleasure

Personal control

Natural elements

Approach

Avoidance

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Individual Behaviors in the Servicescape

• Environmental psychologists suggest that people react to

places with two general, and opposite forms of behavior:

– Approach: all positive behaviors that might be

directed to a place

• Desire to stay, explore, work, affiliate

• Shopping enjoyment, spending time and money

– Avoidance: negative behaviors

• Desire not to stay, etc.

10-33

Social Interactions in the Servicescape

• All social interaction is affected by the physical container in which it occurs

– Customer-employee

– Customer-customer

• Scripts (particular progression of events)

• Physical proximity

• Seating arrangements

• Size

• Flexibility

10-34

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Variations in Individual Response

• Personality differences

– Arousal seekers vs. arousal avoiders

Enjoy high levels of stimulation/prefer lower levels of stimulation

– Environmental screeners

Able to experience a high level of stimuli but not be affected by it

• Purpose for being in the servicescape

– Business/pleasure

• Temporary mood state

A person after a day at work/ a person after holiday

10-35

Servicescape dimensions and impact

• Ambient conditions

– Effects on the five senses

– Perfume at mall entrance

– Cookies in the mall

– Oxygen in the casino

– Music played in the supermarket

• Familiarity

• Tempo


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Servicescape dimensions and impact

• Spatial layout and functionality

– The new supermarkets!

– Self service restaurants

• Signs, symbols, and artefacts

– explicit or implicit communication of meaning

– Important in forming first impressions

– Visual metaphor of the organization’s offering

– Way-finding labels: Aiga symbols

– Professor’s office


Guidelines for Physical Evidence Strategy

• Recognize the strategic impact of physical evidence.

• Blueprint the physical evidence of service.

• Clarify strategic roles of the servicescape.

• Assess and identify physical evidence opportunities.

• Update and modernize the evidence.

• Work cross-functionally

10-38

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Managerial Implications

• Careful and creative management of servicescape necessary – Helps firms achieve both

external marketing goals and internal organizational goals

• Servicescape is a visual metaphor for the organization’s offering

• Servicescape is the packaging of the service

• It facilitates and nurtures a certain type of interaction

• Helps as a key differentiator


SERVICE BLUEPRINTING


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Service Blueprinting

• A picture or map that accurately portrays the

service system so that the different people

involved in its development can understand and

deal with it objectively regardless of their roles

or their individual point of view.


Service Blueprint

Physical/Tangible Evidence

Customer Actions

• Line of interaction

Onstage/Visible Contact Employee/Technology Actions

• Line of visibility

Backstage/Invisible Contact Employee Actions

• Line of internal interaction

Support Processes


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Service Blueprint of Luxury Hotel

Steps in designing a blueprint

1. Identify the service to be blueprinted – Basic business concept

– A service within a family of services

– A specific service component

2. Identify the customer segment that receives the service

3. Map the service from the customer’s point of view

4. Draw the lines of interaction and visibility

5. Map the service from the customer contact person’s point of view

6. Draw the line of internal interaction

7. Link customer and contact person activities to needed support functions

8. Add physical evidence


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How will the blueprint help?

• Identifying key processes necessary along with

what needs to be visible to the customer

• Identifying failure points and arranging for

necessary fail safe mechanisms

• Helps choreograph an ideal service encounter

• Aid service improvement efforts


Blueprinting exercise

• Cook it yourself restaurant

• Drive through car wash

• Car Sharing service

• Paragliding service

• Mobile wedding chapel

• Pet boarding facility


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THANK YOU


Documents

Service Operations (SO) Week 3 - Vinay Kalakbandivkteaching.weebly.com/uploads/1/4/3/9/14393508/week_3_for_upload.pdfService Blueprint of Luxury Hotel Steps in designing a blueprint