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Chapter 1 INTRODUCTION TO SERVICE, SERVICE STRATEGY, Competitive Rivalry…
Chapter 1
INTRODUCTION TO SERVICE
Definition of Service
A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer.
Characteristics
Intangible
Inseparable
perishable
variable
Labor intensive
Quality control
Classification
Function
Output
Capital Intensity
Process
Service Package
Supporting facility
Facilitating goods
Information
Explicit
Implicit
Service Concept
The value of the service
The service operation
The service outcome
The service experience
The organising idea.
The service concept is a clear statement about the nature of the service:
Servitization
"The innovation of organisation’s capabilities and processes to better create mutual value through a shift from selling product to selling Product-Service Systems".
Service Encounter
Any episodes in which the customer comes into contact with any aspect of the organization and gets an impression of the quality of its service
Elements:
Customer
Service provider
Delivery system
Physical evidence
Servicescapes
Designing Physical Surroundings to Affect Employee and Customer Behavior
Ambient Conditions
Spatial Layout and Functionality
Signs, Symbols, and Artifacts
SERVICE STRATEGY
Strategic Service Vision
Target Market Segments
Service Concept
Operating Strategy
Service Delivery System
Chapter 2
Competitive Service Strategies
Overall Cost Leadership
Seeking Out Low-cost Customers
Standardizing a Custom Service
Reducing the Personal Element in Service Delivery
Reducing Network Costs
Taking Service Operations Offline
Differentiation
Making the Intangible Tangible (memorable)
Customizing the Standard Product
Reducing Perceived Risk
Giving Attention to Personnel Training
Controlling Quality
Focus
Addressing customers’ specific needs
Meeting specific customer needs and/or by lower costs through specialization
The application of different and/or overall cost leadership to a particular market segment rather than the entire market.
Strategic Analysis
Porter's Five Forces Model
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Customer Criteria for Selecting a Service Provider
Availability
Convenience
Dependability
Personalization
Price
Quality
Reputation
Safety
Speed
Competitive Rivalry within Industry
Potential New Entrants
Bargaining Power of Customers
Threat of Substitutes
Bargaining Power of Suppliers