Service Process Design

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Presentation transcript:

Service Process Design Chapter 5

Outline Defining Service The Service-Product Bundle Service Guarantees Cycle of Service Customer Contact Service Matrix Employees and Service

Definition of Service Key Concepts Intangibility of the product Simultaneous production and consumption Difficulty in defining and measuring quality and productivity Other Differences between Manufacturing and Service (See Table 5.1)

Comparison of Goods and Services (Figure 5.1) 100% 75% 50% 25% 0% 25% 50% 75% 100% Self-service groceries Automobile Installed carpeting Fast-food restaurant Gourmet restaurant Auto maintenance Haircut Consulting services

Cycle of Service for an Airline (Figure 5.2) Customer requests schedule information Leaves Airport Makes reservation Receive Baggage Arrives at airport Departs Plane Checks baggage and checks in for flight Receives in-flight service Proceeds to gate and security check Boards aircraft Receives boarding pass

Customer Contact Definition of “contact” Potential inefficiency as a function of customer contact Characteristics of high- and low-contact services

The Service Typology Service Factory Mass Service Service Shop Professional Service

Service Matrix (Figure 5.3) Degree of Interaction and Customization Low High Service factory Airlines Tracking Hotels Resort and recreation Service shop Hospitals Computer dating Repair services Low Degree of Labor intensity Mass services Retailing Wholesaling Schools Retail aspects of commercial banking Professional Services Lawyers Doctors Accountants Architects High

Links in the service-profit chain (See Figure 5.4) Internal service quality Employee satisfaction Employee retention Employee productivity External service value Customer satisfaction Customer loyalty Revenue growth Profitability