2
OBJECTIVES
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Chapter 7
Service Process Selection and Design
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The Nature of Services
Service Strategy: Focus & Advantage
Service-System Design Matrix
Service Blueprinting
Service Fail-safing
Characteristics of a Well-Designed Service
Delivery System
October 15, 2008
Ref. Service featuring NAR call center: QAP2.avi
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The Nature of Services:
7 generalizations
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The Nature of Services:
7 generalizations (Continued)
1. Everyone is an expert on services
5. High-contact services are experienced,
whereas g
goods are consumed
2. Services are idiosyncratic
6. Effective management of services
requires an understanding of marketing
and personnel, as well as operations
3. Quality of work is not quality of service
4. Most services contain a mix of
tangible and intangible attributes
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7. Services often take the form of cycles of
encounters involving face-to-face,
face-to-face
phone, Internet, electromechanical,
and/or mail interactions
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4
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Service Businesses
Internal services is the
management of services
required to support the
activities of the larger
organization. Services including
data processing, accounting, etc
A service business is the management
of organizations whose primary
business requires interaction with the
customer to produce the service
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Internal Services
Defined
Facilities-based services: Where the customer
go to the service facility
y
must g
Internal Supplier
Internal
Customer
Field-based services: Where the production and
consumption of the service takes place in the
customer’s environment
External
Customer
Internal Supplier
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The Customer Centered View
Service Strategy: Focus and Advantage
Performance Priorities
Exhibit 7.1
A philosophical view that
suggests the organization
exists to serve the
customer, and the
systems and the
employees exist to
facilitate the process of
service.
The Service
Strategy
The
Customer
The
Systems
The
People
Treatment of the customer
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Speed and convenience of service delivery
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Price
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Variety
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Quality of the tangible goods
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Unique skills that constitute the service
offering
Ref. p. 269
Experience Service featuring Hotel Monaco: SDHM4.avi
Service/inventory--1st National Bank: SE8.avi
Ref. Service Package at
Hotel Monaco: SDHM3.avi
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Example of Service Blueprinting
Service-System Design Matrix
Exhibit 7.6
Degree of customer/server contact
High
i h
Buffered
core (none)
(
)
Permeable
system (some)
(
)
Reactive
system (much)
(
h)
Standard
execution time
2 minutes
Low
Face-to-face
total
customization
Face-to-face
loose specs
Sales
Opportunity
Face-to-face
tight specs
Brush
shoes
30
secs
Total acceptable
execution time
5 minutes
Production
Efficiency
Phone
Internet & Contact
on-site
M il contact
Mail
t ttechnology
Seen by
customer
Low
Line of
visibility
High
Clean
shoes
45
secs
Not seen by
customer but
necessary to
performance
Ref. Service-System Design Matrix: DVD
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Service Fail-safing
Poka-Yokes (A Proactive Approach)
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How can we failsafe the three Ts?
Treatment
45
secs
15
secs
Wrong
color wax
Materials
(e.g., polish, cloth)
Select and
purchase
supplies
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Have we compromised one of the 3 Ts?
3. Tangible
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Fail
point
Collect
p y
payment
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2 Treatment
2.
T
Task
30
secs
Buff
Ref. p. 274-275
1. Task
Keeping a mistake
f
from
becoming
i a
service defect
Apply
polish
p
Tangibles
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Three Contrasting Service Designs
Characteristics of a Well-Designed
Service System
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The production line approach (ex.
McDonald’s)
1. Each element of the service system is
consistent with the operating focus of
th firm
the
fi
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The self-service approach (ex. automatic
teller machines)
2. It is user-friendly
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3. It is robust
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The personal attention approach (ex.
Ritz-Carlton Hotel Company)
4. It is structured so that consistent
performance by its people and
systems is easily maintained
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14
Characteristics of a Well-Designed
Service System (Continued)
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Applying Behavioral Science to
Service Encounters
5. It provides effective links between the
back office and the front office so that
nothing falls between the cracks
6. It manages the evidence of service
quality in such a way that customers see
the value of the service provided
p
7. It is cost-effective
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1.
The front-end and back-end of the
encounter are not created equal
2.
Segment the pleasure, combine the pain
3.
Let the customer control the process
4.
Pay attention to norms and rituals
5
5.
People are easier to blame than ssystems
stems
6.
Let the punishment fit the crime in service
recovery
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Service Guarantees as Design
Drivers
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Question Bowl
Which of the following are generalizations
about the nature of services?
a. Services contain tangible attributes
b. Services are experienced
c. Services often take the form of cycles of
encounters involving face-to-face
interactions
d All off th
d.
the above
b
e. None of the above
Recent research suggests:
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Any
y guarantee
g
is better than no guarantee
g
Involve the customer as well as employees in
the design
Avoid complexity or legalistic language
Do not quibble or wriggle when a customer
invokes a guarantee
M k it clear
Make
l
th
thatt you are happy
h
for
f customers
t
to invoke the guarantee
Answer: d. All of the above
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Question Bowl
a.
b.
c.
d.
e.
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Question Bowl
Which of the following is an example of a
Service Business?
Law firm
Hospital
Bank
Retail store
All of the above
Which of the following is an example of Internal
Services?
a. Finance department
b. Marketing department
c. Operations department
d. All of the above
e. None of the above
Answer: e. All of the above
Answer: d. All of the above
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Question Bowl
a.
b.
c
c.
d.
e.
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Question Bowl
According to the Chase and Dasu (2001)
study which of the following are
behavioral concepts that should be
applied to enhance customer
perceptions of a service encounter?
Flow of the service experience
Flow of time
Judging encounter performance
All of the above
None of the above
a.
b.
c.
d.
e.
Service strategy development begins by
selecting which of the following as an
operating
ti ffocus or performance
f
priority?
i it ?
Price
Quality
Variety
Treatment
All of the above
Answer: e. All of the above
Answer: d. All of the above
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Question Bowl
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Question Bowl
Which of the following “best practices
emphasized by service executives” had the
highest mean emphasize rating?
a. Leadership
b. Accessibility
c. Quality values
d. Customer orientation
e. Listening to the customer
a.
b.
c.
d.
e.
Answer: b. Accessibility (Had the highest
mean rating at 4.02 on a 5 point scale.)
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Based on the Service-System Design
Matrix, which of the following has a lower
l
level
l off “
“production
d ti efficiency”?
ffi i
”?
Face-to-face loose specs
Phone contact
Internet and on-site technology
Face-to-face tight specs
Mail contact
Answer: a. Face-to-face loose specs
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