Post on 30-May-2018
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 1/24
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 2/24
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.
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 3/24
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.
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 4/24
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.
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 5/24
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.
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 6/24
Internal Services
Internal Supplier
Internal Supplier
Internal
Customer
ExternalCustomer
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 7/24
The Service Triangle
The
Customer
The Service
Strategy
The
People
The
Systems
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 8/24
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
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 9/24
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)
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 10/24
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
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 11/24
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
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 12/24
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 13/24
Service Design
Performance Specifications
Design Specifications
Delivery Specifications
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 14/24
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
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 15/24
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
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 16/24
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 .
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 17/24
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
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 18/24
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 ? )
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 19/24
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
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 20/24
Have we compromised one of the 3 T¶s?
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 21/24
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´.
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 22/24
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 23/24
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.
8/9/2019 PG7-Process Selection Services)
http://slidepdf.com/reader/full/pg7-process-selection-services 24/24
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)