Classification of Services Degree of Tangibility of Service Process Who or what are the direct recipient of Service Process Customization Vs. Standardization Nature of relationship with the customers Extent to which demand and supply are in balance Extent to which facilities, equipment, and people are part of the service experience The place and time of service delivery

Classification of Services Degree of Tangibility of Service Process NATURE OF THE ACT RECEIPIENT OF THE ACT Service directed at people’s bodies Service directed at physical possession Health Care Hair cutting Passenger Transportation Restaurant Freight transportation Industrial equipment mant Laundry and dry cleaner Veterinary care TANGIBLE ACTION Service directed at people’s minds Service directed at Intangible Assets INTANGIBLE ACTION Education Broadcasting Information services Theatres Museums Banking Legal service Security Insurance

Classification of Services Relationship with customer NATURE OF SERVICE DELIVERY TYPE OF RELATIONSHIP Non formal Relshp Membership relation Cable TV Mutual Fund Telephone Banking College Enrollment Radio Station Police production Light house Public highway CONTINUOUS DEL. OF SERVICE Car rental Mail service Toll bridge/way Restaurant Pay phone Long distance phone call Theatre season ticket Commuter ticket DISCRETE

Classification of Services Customisation EXERCISE OF JUDGEMENT BY CUSTOMER CONTACT PERSON EXTENT OF CUSTOMISATION Low High Legal Services Health Care Taxi Service Beautician Tutorials Education: Large classes Preventive health care High Public Transmission Routine appliance maintenance Movie Theatre Telephone service Hotel service Retail banking Low

Classification of Services Nature of Demand EXTENT TO WHICH SUPPLY IS CONSTRAINED EXTENT OF DEMAND FLUCTUATION OVER TIME Narrow Wide Natural gas Telephone Hospital Tourist lodging Insurance Banking Dry cleaner Peak demand CAN be met without delay -do- with less base level capacity Accounting Electricity Theatres Peak demand regularly exceeds capacity

Classification of Services Method of Service Delivery NATURE OF INTERACTION WITH CUSTOMER AVAILABILITY OF SERVICE OUTLET Multiple Site Single Site Haircutting Beauty Saloon Theatre Bus service Fast food chain Customer goes Service Provider Comes Taxi Mail delivery National radio Telephone Company Credit Card Local Radio Station Arm’s length

Classification of Services Level of equipment used HIGH People’s Participation HIGH LOW LOW

Elements Of Service Mktg Mix Product Promotion Place Price Physical Evidence Customer Service People Process

Customer Company Service Quality Gaps Word of Mouth Communication Personal Needs Past Experience Customer Expected Service Customer Gap Perceived Service Gap 4 Service Delivery External Commn Company Gap 3 Gap 1 Translation of perceptions into service quality specification Gap 2 Management’s perception of Consumer expectation

Process Processes involve the procedures, tasks, schedules, mechanisms, activities and routines by which a service is delivered to the customer. Two Basic Concepts: Complexity Divergence

Process Complexity: Number of steps or sequence and intricacy ( or complexity) to be performed during the process Divergence: Executional freedom or variability of the steps

Process Higher Complexity leads to Higher Divergence gives rise to Uniformity in quality Increased productivity Reduced cost of production thus lower selling price Low skilled or unskilled labourer High stanardisation Inflexibility Higher Divergence gives rise to High customisation Premium price High flexibility Skilled worker Difficult distribution

Process Four Strategies for Repositioning Through Structural Changes Reduce Divergence Mass Marketing, Easy availability of services High Customisation, Niche marketing, Milching Increase Divergence Increase Complexity Market Penetration Reduce Complexity Specialised market, Easier Distribution

Four Strategies for Repositioning Through Structural Changes Process Four Strategies for Repositioning Through Structural Changes High Complexity Adds Consultancy Adds Tourism Mgnt Gets Affiliated to a University MBA Institute Low Divergence High Divergence Exams run by the University Only Diploma level Low Complexity

Steps in Service Blueprinting Process Steps in Service Blueprinting 1. Divide the total process into different sequence and logical steps 2. Relate each activity and event with other activities and events 3. Allot divergence in each activity or event 4. Identify the fail points (executional and consistency problems) 5. Set executional standards in terms of Cost, performance criteria, and tolerance limits 6. Identify the moments of truth

Blueprinting Preparation of a Cup of Tea Process Blueprinting Preparation of a Cup of Tea Moment of truth Prepare Water SERVE Reduce Customisation Stir Put water on pan Water boils Put a pan with Water on the stove Add Sugar Strain the Boiled water Add Milk Prepare Strainer Clean strainer Put Appropriate amount of Tea Leaves on the strainer A very simple operation blueprinting

Process Service Blueprinting It is a tool for simultaneously depicting the service process, the points of customer contacts, and the evidence of service from the point of view of the customer. PROCESS SERVICE BLUEPRINT CONTACT PTS. EVIDENCE

Process Service Blueprinting It is a picture or a map that accurately portrays the service system so that different people involved in providing it can understand and deal with it objectively regardless of their roles from their individual point of view.

Components of Blueprinting Process Components of Blueprinting Service Blueprinting PHYSICAL EVIDENCE CUSTOMER ACTION Line of Interaction ON STAGE CONTACT EMPLOYEE ACTION Line of Visibility BACKSTAGE CONTACT EMPLOYEE ACTION Line of Internal Interaction SUPPORT PROCESS

KEY COMPONENTS OF SERVICE BLUEPRINT Process Service Blueprinting Anytime the vertical line crosses the boundary of the horizontal boxes (line of interaction) service encounter occurs. KEY COMPONENTS OF SERVICE BLUEPRINT 1. Definition of standard of each front stage activity 2. Physical and other evidence 3. Principal customer action 4. Line of Interaction (Moment of Truth) 5. Front Stage Action by Customer Contact Persons (CCP) 6. Line of Visibility 7. Backstage Activities by Customer Contact Persons 8. Support Process involving Service Personnel 9. Support Process involving Information Technology.