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Service Processes

Chapter 8. Service Processes. 8- 2. OBJECTIVES . Service Strategy: Focus & Advantage Service-System Design Matrix Service Blueprinting Service Fail-safing Characteristics of a Well-Designed Service Delivery System. 8- 3. Service Businesses.

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Service Processes

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  1. Chapter 8 Service Processes

  2. 8-2 OBJECTIVES • Service Strategy: Focus & Advantage • Service-System Design Matrix • Service Blueprinting • Service Fail-safing • Characteristics of a Well-Designed Service Delivery System

  3. 8-3 Service Businesses A service business is the management of organizations whose primary business requires interaction with the customer to produce the service • Facilities-based services: Where the customer must go to the service facility • Field-based services: Where the production and consumption of the service takes place in the customer’s environment

  4. 8-4 The Service Strategy The Customer The Systems The People The Customer Centered View A philosophical view that suggests the organization exists to serve the customer, and the systems and the employees exist to facilitate the process of service.

  5. 8-5 Service-System Design Matrix Exhibit 7.6 Degree of customer/server contact Buffered Permeable Reactive High core (none) system (some) system (much) Low Face-to-face total customization Face-to-face loose specs Sales Opportunity Production Efficiency Face-to-face tight specs Phone Contact Internet & on-site technology Mail contact Low High

  6. 8-6 Characteristics of Workers, Operations, and Innovations Relative to the Degree of Customer/Service Contact

  7. 8-7 Example of Service Blueprinting

  8. 8-8 Task Treatment Tangibles Service Fail-safingPoka-Yokes (A Proactive Approach) • Keeping a mistake from becoming a service defect • How can we fail-safe the three Ts?

  9. 8-9 Three Contrasting Service Designs • The production line approach (ex. McDonald’s) • The self-service approach (ex. automatic teller machines) • The personal attention approach (ex. Ritz-Carlton Hotel Company)

  10. 8-10 Managing Customer Introduced Variation • Arrival variability • Request variability • Capability variability • Effort variability • Subjective preference variability

  11. 8-11 Accommodation Strategies • Classic accommodation – extra employees or additional employee skills • Low cost accommodation – use low cost labor, outsource, self-service • Classic reduction – more self-service, reservations, adjust expectations • Uncompromised reduction – develop procedures for good service, minimizing variation impact

  12. 8-12 Characteristics of a Well-Designed Service System 1. Each element of the service system is consistent with the operating focusof the firm 2. It is user-friendly 3. It is robust 4. It is structured so that consistent performanceby its people and systems is easily maintained

  13. 8-13 Characteristics of a Well-Designed Service System (Continued) 5. It provides effective linksbetween the back office and the front office so that nothing falls between the cracks 6. It manages the evidence of service quality in such a way that customers see the value of the service provided 7. It is cost-effective

  14. 8-14 Applying Behavioral Science to Service Encounters • The front-end and back-end of the encounter are not created equal • Segment the pleasure, combine the pain • Let the customer control the process • Pay attention to norms and rituals • People are easier to blame than systems • Let the punishment fit the crime in service recovery

  15. 8-15 Service Guarantees as Design Drivers • Recent research suggests: • Any guarantee is better than no guarantee • Involve the customer as well as employees in the design • Avoid complexity or legalistic language • Do not quibble or wriggle when a customer invokes a guarantee • Make it clear that you are happy for customers to invoke the guarantee

  16. 8-16 Question Bowl Which of the following is an example of a Service Business? • Law firm • Hospital • Bank • Retail store • All of the above Answer: e. All of the above

  17. 8-17 Question Bowl According to the Chase and Dasu (2001) study which of the following are behavioral concepts that should be applied to enhance customer perceptions of a service encounter? • Flow of the service experience • Flow of time • Judging encounter performance • All of the above • None of the above Answer: d. All of the above

  18. 8-18 Question Bowl Service strategy development begins by selecting which of the following as an operating focus or performance priority? • Price • Quality • Variety • Treatment • All of the above Answer: e. All of the above

  19. 8-19 Question Bowl Which of the following “best practices emphasized by service executives” had the highest mean emphasize rating? • Leadership • Accessibility • Quality values • Customer orientation • Listening to the customer Answer: b. Accessibility (Had the highest mean rating at 4.02 on a 5 point scale.)

  20. 8-20 Question Bowl Based on the Service-System Design Matrix, which of the following has a lower level of “production efficiency”? • Face-to-face loose specs • Phone contact • Internet and on-site technology • Face-to-face tight specs • Mail contact Answer: a. Face-to-face loose specs

  21. 8-21 End of Chapter 8

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