Transcript Slide 1
Services: Design and
Quality
Chapter 5
Distinctive Characteristics of
Services
Customer participation
Simultaneity
Perishability
Intangibility
Heterogeneity
Customer Participation
The customer is more involved in the
delivery of services than products
Providing services means that you must
pay attention to the service facility
Customers can play an integral role in
the delivery of the service
Simultaneity
Services are consumed simultaneously
(as they are provided)
There is no inventory
Services operate as an open system
Perishability
A service is a perishable commodity
(can’t be saved)
The full utilization of service capacity is a
management concern
Demand for services is often cyclical
Intangibility
Services are not tangible things
Difficult to patent
Customer relies on reputation since
there is no product to touch
or try out
Heterogeneity
There are variations of service between
customers
Direct customer-employee contact
Designing a Service System
Involves:
• Selecting a location
• Designing the layout of the facility
• Developing procedures and job definitions
• Developing measures to ensure quality
• Deciding how involved the customer will be in
•
the service delivery
Selecting Equipment
Designing a Service System
The “design” process is never finished.
Modifications or innovation in the service
delivery system should be introduced as
needed.
System Elements - Structural
Delivery system
Facility design
Location
Capacity planning
System Elements - Managerial
Service encounter
Quality
Managing capacity and demand
Information
Service Blueprint
A diagram of the service process
showing activities, flows, physical
evidence, and lines of visibility and
interaction
Service Blueprint
Generic Approaches to Service
System Design
Production-Line Approach
Customer as Co-producer
Customer Contact Approach
Information Empowerment
Production-Line Approach
Limited discretionary action of personnel
Division of labor
Substitution of technology for people
Service standardization
Customer as Co-producer
Self-service
Smoothing service demand
Customer Contact Approach
Degree of customer contact
Separation of high- and low-contact
operations
Information Empowerment
Employee empowerment
Customer empowerment
Service Quality
For services, the assessment of quality
is made during the service delivery
process.
Customer satisfaction can be measured
as the difference between the
customer’s service expectation and the
service actually received.
Gaps in Service Quality
Measuring the gap between expected
service and perceived service is a
routine customer feedback process
practiced by many companies
Service Quality Gap Model
Walk-Through Audit (WtA)
A process-oriented survey given to
customers and managers to evaluate the
perception of the customer service
experience
Identifying GAPS with WtA
Moments of Truth
Concept created by Jan Carlzon of
Scandinavian Airways
Critical moments between the
customer and the organization that
determine customer satisfaction
There may be many of these moments
These are opportunities to gain or lose
business
Moments-of-Truth
Computer Company Hotline
Experience Enhancers
Standard Expectations
Experience Detractors
I had to call more than
once to get through
A recording spoke to me
rather than a person
While on hold, I get
silence,and wonder if I am
disconnected
The technician sounded
like he was reading a form
of routine questions
The technician sounded
uninterested
I felt the technician rushed
me
Only one local number
needs to be dialed
I never get a busy signal
I get a human being to
answer my call quickly and
he or she is pleasant and
responsive to my problem
A timely resolution to my
problem is offered
The technician is able to
explain to me what I can
expect to happen next
The technician was
sincerely concerned and
apologetic about my
problem
He asked intelligent
questions that allowed me
to feel confident in his
abilities
The technician offered
various times to have work
done to suit my schedule
Ways to avoid future
problems were suggested
Figure 5.13
Unconditional Service
Guarantee
Unconditional
Easy to understand and communicate
Meaningful
Easy to invoke
Easy to collect
Service Recovery
Letters of apology
Replacement Product/Complimentary
service