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Characteristics Of Service (Variability (Causes (Simultaneous production…
Characteristics Of Service
Intangibility
Cannot be seen, felt, heard or smelt
Causes uncertainty & risk
Implications
Difficulty in evaluating competing services
Perceive high levels of risk
Place great emphasis on personal info
Use price as a basis for assessing quality
Inseparability
Lack of distinction between delivery and use
Both customer and service provider must be present
Implications
Customer-contact employees are part of the service
Customers co-produce the service
Customer co-produce the service
Customers often being co-consumers of service with other customers
Managing employee-customer & customer-customer interaction
Understand the service delivery system
Selecting & training right customers
Establish rules of behaviour
Facilitating positive customer-customer interactions
Selecting & training customer-contact employees
Empowering customer-contact employees
Variability
High variable or inconsistent
Quality depend on who, when & where they are provided
Causes
Simultaneous production & consumption
Skill & performance at time of exchange
Fluctuating demand
Major cause of disappointment
Ensure consistency
Standard Operating Procedures
Training
Perishabilty
Services cannot be stored for later sale or use
Airlines & hotel apply policies
Guaranteeing reservations w/ credit card
No-show charges
Last minute cancel charges
Non-efundable bookings
Minimum length of stay