Classification of Services
Degree of Tangibility of Service Process
Who or what are the direct recipient of Service Process
Customization Vs. Standardization
Nature of relationship with the customers
Extent to which demand and supply are in balance
Extent to which facilities, equipment, and people
are part of the service experience
The place and time of service delivery
Classification of Services
Degree of Tangibility of Service Process
NATURE OF THE
ACT
TANGIBLE
ACTION
INTANGIBLE
ACTION
RECEIPIENT OF THE ACT
Service directed at
people’s bodies
•Health Care
•Hair cutting
•Passenger Transportation
•Restaurant
Service directed at
people’s minds
•Education
•Broadcasting
•Information services
•Theatres
•Museums
Service directed at
physical possession
•Freight transportation
•Industrial equipment mant
•Laundry and dry cleaner
•Veterinary care
Service directed at
Intangible Assets
•Banking
•Legal service
•Security
•Insurance
Classification of Services
Relationship with customer
NATURE OF
SERVICE
DELIVERY
CONTINUOUS
DEL. OF
SERVICE
DISCRETE
TYPE OF RELATIONSHIP
Membership relation
Non formal Relshp
•Cable TV
•Mutual Fund
•Telephone
•Banking
•College Enrollment
•Radio Station
•Police production
•Light house
•Public highway
•Long distance phone call
•Theatre season ticket
•Commuter ticket
•Car rental
•Mail service
•Toll bridge/way
•Restaurant
•Pay phone
Classification of Services
EXERCISE OF
JUDGEMENT BY
CUSTOMER
CONTACT
PERSON
High
Low
Customisation
EXTENT OF CUSTOMISATION
High
•Legal Services
•Health Care
•Taxi Service
•Beautician
•Tutorials
•Telephone service
•Hotel service
•Retail banking
Low
•Education: Large classes
•Preventive health care
•Public Transmission
•Routine appliance
maintenance
•Movie Theatre
Classification of Services
Nature of Demand
EXTENT TO
WHICH SUPPLY
IS CONSTRAINED
Peak demand
CAN be met
without delay
Peak demand
regularly
exceeds
capacity
EXTENT OF DEMAND FLUCTUATION OVER TIME
Wide
•Natural gas
•Telephone
•Hospital
•Tourist lodging
•Accounting
•Electricity
•Theatres
Narrow
•Insurance
•Banking
•Dry cleaner
• -do- with less base
level capacity
Classification of Services
Method of Service Delivery
NATURE OF
INTERACTION
WITH CUSTOMER
Customer goes
AVAILABILITY OF SERVICE OUTLET
Single Site
•Haircutting
•Beauty Saloon
•Theatre
Service
Provider
Comes
•Taxi
Arm’s length
•Credit Card
•Local Radio Station
Multiple Site
•Bus service
•Fast food chain
• Mail delivery
•National radio
•Telephone Company
Classification of Services
Level of equipment used
HIGH
HIGH
LOW
LOW
Elements Of Service Mktg Mix
•Product
•Promotion
•Place
•Price
•Physical Evidence
•Customer Service
•People
•Process
Service Quality Gaps
Word of Mouth
Communication
Gap 1
Personal Needs
Past Experience
Customer
Expected Service
Customer Gap
Perceived Service
Gap 4
Service Delivery
External Commn
Company
Gap 3
Translation of perceptions into
service quality specification
Gap 2
Management’s perception of
Consumer expectation
Process
Processes involve the procedures, tasks,
schedules, mechanisms, activities and routines
by which a service is delivered to the customer.
Two Basic Concepts:
•Complexity
•Divergence
Process
Complexity: Number of steps or sequence
and intricacy ( or complexity) to
be performed during the
process
Divergence: Executional freedom or
variability of the steps
Process
Higher Complexity leads to
•Uniformity in quality
•Increased productivity
•Reduced cost of production thus lower selling price
•Low skilled or unskilled labourer
•High stanardisation
•Inflexibility
Higher Divergence gives rise to
•High customisation
•Premium price
•High flexibility
•Skilled worker
•Difficult distribution
Process
Four Strategies for Repositioning Through Structural Changes
•Reduce Divergence
Mass Marketing,
Easy availability of services
•Increase Divergence
High Customisation, Niche
marketing, Milching
•Increase Complexity
Market Penetration
•Reduce Complexity
Specialised market, Easier Distribution
Process
Four Strategies for Repositioning Through Structural Changes
High Complexity
•Adds Consultancy
• Adds Tourism Mgnt
• Gets Affiliated to a
University
• MBA Institute
High Divergence
Low Divergence
• Exams run by the
University
• Only Diploma level
Process
Steps in Service Blueprinting
1.
5.
Divide the total process into different
sequence and logical steps
Relate each activity and event with other
activities and events
Allot divergence in each activity or event
Identify the fail points
(executional and consistency problems)
Set executional standards in terms of
6.
Identify the moments of truth
2.
3.
4.
Cost, performance criteria, and
tolerance limits
Process
Blueprinting Preparation of a Cup of Tea
Moment of truth
Prepare
Water
SERVE
Reduce Customisation
Stir
Water boils
Put water on pan
Put a pan with Water on the stove
Prepare
Strainer
Strain the
Boiled water
Clean
strainer
Add Sugar
Put Appropriate
amount of Tea
Leaves on the
strainer
A very simple operation blueprinting
Add Milk
Process
Service Blueprinting
It is a tool for simultaneously depicting the service
process, the points of customer contacts, and the
evidence of service from the point of view of the
customer.
PROCESS
SERVICE
BLUEPRINT CONTACT PTS.
EVIDENCE
Process
Service Blueprinting
It is a picture or a map that accurately portrays
the service system so that different people
involved in providing it can understand and deal
with it objectively regardless of their roles from
their individual point of view.
Process
Components of Blueprinting Service Blueprinting
PHYSICAL EVIDENCE
CUSTOMER ACTION
Line of Interaction
ON STAGE CONTACT
EMPLOYEE ACTION
Line of Visibility
BACKSTAGE CONTACT
EMPLOYEE ACTION
Line of Internal Interaction
SUPPORT PROCESS
Process
Service Blueprinting
Anytime the vertical line crosses the boundary of the horizontal boxes (line
of interaction) service encounter occurs.
KEY COMPONENTS OF SERVICE BLUEPRINT
1. Definition of standard of each front stage activity
2. Physical and other evidence
3. Principal customer action
4. Line of Interaction (Moment of Truth)
5. Front Stage Action by Customer Contact Persons (CCP)
6. Line of Visibility
7. Backstage Activities by Customer Contact Persons
8. Support Process involving Service Personnel
9. Support Process involving Information Technology.