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Chap 9 Design Service Processes - Coggle Diagram
Chap 9
Design Service Processes
Types of services
Social services
: are voluntarily carried out by enterprises.
Ex:
public education, Vietnam red cross society
Personal services
: client specific services are provided by enterprises.
Ex:
wedding planner, housesitting
Business services
: support daily operations of enterprises.
Ex:
marketing agency, law firm, bank
Categories of services by types of processing
Possession processing (freight transport, repair services)
Mental stimulus processing (education)
Information processing (accounting)
People processing (passenger transport, hairstyling)
Nature of services
The
customer
is the
focal point
of all decisions and actions
-> the organization exists to serve the customer
Operation
is responsible for service systems and for managing the work of the service workforce
The service triangle
Service Package
3. Information:
data provided by the customer
4. Explicit services:
Benefits that are observable by the senses
2. Facilitating goods:
the material purchased by the buyer or the items provided to the customer
5. Implicit services:
Psychological benefits the customer may sense only vaguely
1. Supporting facility:
the physical resources that must be in place before a service can be offered
Service design different from product design
The service package constitutes the major output of the development process
Many parts of the service package are defined by the training individuals receive
A service operation lacks the legal protection commonly available to products
Many service organizations can change their service offerings virtually overnight
The process and the product must be developed simultaneously
Operational Classification of services
Customer contact:
the physical presence of the customer in the system
Extent of contact:
the percentage of time the customer must be in the system relative to service time
Services with a high degree of customer contact are more difficult to control
Creation of the service:
the work process involved in providing the service itself
Structuring the Service Encounter:
Service-System Design Matrix
Production efficiency decreases with more customer contact
Low contact allows the system to work more efficiently
Service encounters can be configured in a number of different ways
Phone contact
Face-to-face tight specs
Internet and on-site technology
Face-to-face loose specs
Mail contact
Face-to-face total customization
Strategic Uses of the Matrix
Clarifying exactly which combination of service delivery the firm is providing
Permitting comparison of how other firms deliver specific services
Enabling systematic integration of operations and marketing strategy
Indicating life cycle changes as the firm grows
Three contrasting service designs
The self-service approach
The personal attention approach
The production line approach
Designing Service Organizations:
CAPACITY PROBLEM
Cannot inventory services. Must meet demand as it arises.
Service capacity is a dominant issue
Solutions:
Marketing can adjust demand & Waiting lines.
Managing
Customer-Introduced Variability
Standard approach may overlook ways to accommodate customer.
Treat this as a trade-off between cost and quality.
More accommodation → more cost
Less accommodation → less satisfaction
5 types of variability
2. Request variability:
Travelers requesting a room with a view
3. Capability variability:
A patient being unable to explain symptoms to doctor
4. Effort variability
: Shoppers not putting up carts
5. Subjective preference variability:
Interpreting service action differently
1. Arrival variability:
Customers arriving at times when there are not enough service providers
