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Service Operations - Coggle Diagram

- - - - customers' variability
      - marketing challenge:
        
        Service standardisation & quality control are difficult to achieve
        
        Solutions:
        
        Pursue a customisation strategy
        
        Pursue a standardisation strategy
    - - Cannot touch/ not objects
      - Tangible
        
        E.g., Buying shoes - able to:
        
        Pick up the product
        
        Feel the quality of materials
        
        Try if it fits
        
        View the style & colour
      - marketing challenges:
        
        Services cannot be inventoried
        
        Solution:
        
        Use intangible clues to help "tangibilize" the service
        
        Services lack patent protection & can be easily copied
        
        Solution:
        
        Use personal sources of information to market services
        
        Services are difficult to display and/or explain to customers
        
        Solution:
        
        Create a strong organisational image
        
        The pricing of services is difficult
        
        Solution:
        
        Utilize an activity-based costing approach
      - Intangible
        
        E.g., buying movie tickets
        
        Entitles customer to an experience
        
        Subjectively evaluated
    - - collaboration between customer and employee
      - marketing challenges:
        
        The customer is involved in the production process
        
        Solution:
        
        Effectively managing consumers
        
        "other customers" are involved in the production process
        
        Solution:
        
        Use multisite locations
        
        The service provider is physically connected to the service
        
        Solution:
        
        Strategic selection & training of public contact personnel
        
        The mass production of services is esp. challenging
    - - Cannot inventory
      - marketing challenges:
        
        Demand exceeds supply of service available
        
        Supply solution:
        
        Use part-time employees to increase supply of service
        
        Demand solution:
        
        Utilize creative pricing strategies to shift demand
        
        Demand exceeds optimal levels of supply
        
        Demand solution:
        
        Implement a reservation system
        
        Supply solution:
        
        Share capacity with other providers
        
        Lower demand than optimal supply levels
        
        Demand solutions:
        
        Shift demand to complimentary services
        
        Utilize non-peak demand periods to prepare for peak periods of demand
        
        Supply solutions:
        
        Prepare for expansion in advance
        
        Utilize third parties to increase sources of supply
        
        Increase customer participation