MKT 5207 Service Marketing Afjal Hossain Assistant Professor Department of Marketing

Chapter 09 Service Development and Design

CUSTOMER COMPANY Gap 2: The Design and Standards Gap Customer-Driven Service Designs and Standards Company Perceptions of Consumer Expectations Provider Gap 2 Not having the right service quality designs and standards

Customer-Driven Service Designs and Standards Management Perceptions of Customer Expectations Key Factors Leading to Provider Gap 2 Gap 2 Figure 2.3

Risks of Relying on Words Alone to describe Services Oversimplification Incompleteness Subjectivity Biased Interpretation Figure 9.1

Types of New Services major or radical innovations start-up businesses new services for the currently served market service line extensions service improvements style changes

New Service Development Process  Business strategy development or review  New service strategy development  Idea generation  Concept development and evaluation  Business analysis  Service development and testing  Postintroduction evaluation  Commercialization  Market testing Screen ideas against new service strategy Test concept with customers and employees Test for profitability and feasibility Conduct service prototype test Test service and other marketing-mix elements Front-end Planning Implementation Figure 9.2 Sources: Bowers, 1985; Khurana & Rosenthal, 1997; Cooper, 2001.

New Service Strategy Matrix for Identifying Growth Opportunities Markets Offerings Existing Services New Services Current CustomersNew Customers Share building Diversification Market development Service development Figure 9.3

Service Blueprinting A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view. Service Blueprint Process Points of contact Evidence Figure 9.5

Service Blueprint Components Customer Actions line of interaction Visible Contact Employee Actions line of visibility Invisible Contact Employee Actions line of internal interaction Support Processes

Service Blueprint Components Figure 9.6

Load on Airplane Unload and Sort Driver Picks Up Package Blueprint for Express Mail Delivery Service Airport Receives & Loads Sort Packages Load on Truck Fly to Destination Dispatch Driver Customer Gives Package Customer Service Order SUPPORT PROCESS CONTACT PERSON (Invisible) (Visible) CUSTOMER PHYSICAL EVIDENCE Fly to Sort Center Customer Calls Truck Packaging Forms Hand-held Computer Uniform Customer Receives Package Truck Packaging Forms Hand-held Computer Uniform Driver Delivers Package Line of interaction Line of visibility Line of internal interaction Figure 9.7

Blueprint for Overnight Hotel Stay Service SUPPORT PROCESS CONTACT PERSON (Invisible) (Visible) CUSTOMER Prepare Food Process Check Out Eat Arrive at Hotel Give Bags to Bellperson Process Registration System Take Bags to Room Check in Go to Room Sleep Shower Receive Bags Call Room Service Receive Food Check out and Leave Greet and Take Bags Deliver Bags Deliver Food Take Food Order Hotel Exterior Parking Cart for Bags Desk Registration papers Lobby Key Elevators Hallways Room Cart for Bags Room Amenities Bath MenuDelivery Tray Food appearance Food Bill Desk Lobby Hotel Exterior Parking PHYSICAL EVIDENCE Line of Interaction Line of Visibility Line of Internal Interaction Registration System Figure 9.8

Step 1 Identify the process to be blue- printed Step 1 Identify the process to be blue- printed Step 2 Identify the customer or customer segment Step 2 Identify the customer or customer segment Step 3 Map the process from the customer’s point of view Step 3 Map the process from the customer’s point of view Step 4 Map contact employee actions and/or technology actions Step 4 Map contact employee actions and/or technology actions Step 5 Link contact activities to needed support functions Step 5 Link contact activities to needed support functions Step 6 Add evidence of service at each customer action step Step 6 Add evidence of service at each customer action step Building a Service Blueprint Figure 9.9

Application of Service Blueprints New Service Development – concept development – market testing Supporting a “Zero Defects” Culture – managing reliability – identifying empowerment issues Service Recovery Strategies – identifying service problems – conducting root cause analysis – modifying processes

Blueprints Can Be Used By: Service Marketers – creating realistic customer expectations: service system design promotion Operations Management – rendering the service as promised: managing fail points training systems quality control Human Resources Management – empowering the human element: job descriptions selection criteria appraisal systems System Technology – providing necessary tools: system specifications personal preference databases

Benefits of Service Blueprinting Provides a platform for innovation. Recognizes roles and interdependencies among functions, people, and organizations. Facilitates both strategic and tactical innovations. Transfers and stores innovation and service knowledge. Designs moments of truth from the customer’s point of view. Suggests critical points for measurement and feedback in the service process. Clarifies competitive positioning. Provides understanding of the ideal customer experience.

Common Issues in Blueprinting Clearly defining the process to be blueprinted Clearly defining the customer or customer segment that is the focus of the blueprint Who should “draw” the blueprint? Should the actual or desired service process be blueprinted? Should exceptions/recovery processes be incorporated? What is the appropriate level of detail? Symbology Whether to include time on the blueprint