Services Marketing Chapter 3

Front 1

The traditional understanding of this word is a plan or drawing produced to show the look and function or workings of a building, garment or other object before it is built or made’

Back 1

design

Front 2

tangible entities that need to be addressed In keeping with product design

Back 2

color

furnishings

equipment

lighting

Front 3

Experience that should encapsulate all aspects of Service design

Back 3

• The role of the customer

• The balance between front and back office

• The impact of technology (e.g. the involvement of equipment)

• The location of service consumption (e.g. a fixed single facility, multi-site, mobile)

• Employee skills/behavior and degree of discretion

•The nature of the service process, e.g. standardized, customized

•The significance of procedures

•The nature and channels of communication

•The contribution of the physical evidence to service satisfaction

• How design advances operational efficiency and service quality

Front 4

3 important functions that should work together and be actively involved in the design of a service

Back 4

MARKETING

HRM

OPERATIONS MANAGEMENT

Front 5

Can everything spelt out in a blueprint?

Back 5

NO

Front 6

wherre you can identify moments of truth together with a sense of how the service operate

Back 6

BLUEPRINT

Front 7

brings together all the facets of a service focuses on how a service works and why.

Back 7

BLUEPRINT

Front 8

TRUE OR FALSE

Organization climate and employee attitudes are uncontrollable

Back 8

TRUE

Front 9

in 1978 he proposed a classification of services as either ‘equipment-based’ or ‘people-based

Back 9

THOMAS

Front 10

services were further classified as being automated (vending machine, car wash), monitored by relatively unskilled operators

skilled operators - taxis, dry cleaning or operated airlines, computer timesharing

Back 10

• Equipment-based

Front 11

services rely on unskilled labor (janitorial services, guards),

skilled labor (car repair, plumbing) or

professionals (lawyers, accountants) for service production

Back 11

People-based

Front 12

TRUE OR FALSE

Thomas further acknowledged that ‘many companies are in more than one type of business’

Back 12

TRUE

Front 13

gave prominence to the customer in a 2x2 matrix for service classification

Back 13

Maister and Lovelock

Front 14

defined as the ratio of the labor cost incurred to the value of the plant and equipment

Back 14

Degree of labor intensity

Front 15

is acknowledged by Schmenner as a more confusing element as it combines two similar but distinct concepts. A high level of interaction is present where a customer can actively intervene in the service process

Back 15

Degree of interaction and customization

Front 16

TRUE OR FALSE

High customization is in evidence when a service is designed to respond to individual needs and preferences

Back 16

TRUE

Front 17

He pointed to the diversity of the service sector, prompting the need for classification to make the management job possible.

Back 17

Haywood-Farmer

Front 18

Using dimensions from earlier authors, he sought to remove any existing confusion (over previous classifications) by advocating a three-dimensional mode

Back 18

Haywood-Farmer

Front 19

three-dimensional classification scheme

Back 19

Degree of contact

Degree of labor-intensity

Degree of service customization

Front 20

Asking the question, “Should the customer be present?”

Back 20

degree of contact

Front 21

Is it possible to automate the service?

Back 21

degree of labor intensity

Front 22

how standardized it is?

Back 22

degree of customization

Front 23

He identified the three variables that can aid the design of service systems:

type of customer contact , degree of routinization and fluid service process

Back 23

Wemmerlöv

Front 24

Identified three variables that can aid the design of service systems according to Wemmerlöv

Back 24

- type of customer contact

- degree of routinization and

- fluid service process.

Front 25

The degree of routinization is characterized as having the following attributes:

Back 25

Low level of task variety and technical skills

Low level of information exchange between the service system and customer

Both service employee and customer make few judgmental decisions

The volume of goods, people, or information per unit of time is usually high•

The arrival rate of customers or jobs is often fairly predictable or controlled by the service system

The process can involve several customers or objects simultaneously

The response time to a customer-initiated service request is often short.

Front 26

The degree of fluid service process is characterized as having the following attributes:

Back 26

• Higher levels of technical skills• Larger amounts of information to be exchanged between the service system and customer• The service employee going through unprogrammed search processes and makingseveral judgmental decisions• A usually low unit of time for handling the volume of goods, people or information• High uncertainty of the workflow• One customer (or object) at a time• A fairly long response time to a customer-initiated service

Front 27

argued that his classification scheme can, amongst other things, ‘help management to better understand design and operational aspects of service systems by relating classified service processes to critical management tasks’

Back 27

wemmerlov

Front 28

_____________ +__________ + ________= MANUFACTURING

Back 28

no customer contact + rigid process+ goods = manufacturing

Front 29

_______+________ + _________+______= PURE SERVICE

Back 29

Direct customer contact + interaction with the service workers + fluid process + people information = PURE SERVICE

Front 30

TRUE OR FALSE

A central and recurring theme in the classification and design of service systems is the extent and nature of customer contact.

Back 30

TRUE

Front 31

TRUE OR FALSE

To address the issue of customer contact and service operational efficiency, Chase proposed that service systems should be viewed as falling along a continuum from LOW customer contact to HIGH customer contact.

Back 31

FALSE

To address the issue of customer contact and service operational efficiency, Chase proposed that service systems should be viewed as falling along a continuum from high customer contact to low customer contact.

Front 32

refers to the physical presence of the customer in the system

Back 32

customer contact time

Front 33

refers to the work process entailed in providing the service

Back 33

service creation time

Front 34

the percentage of time the customer must be in the system relative to the total time it takes to serve him/her.

Back 34

Extent of contact

Front 35

TRUE OR FALSE

Where the method of contact appears important is in determining the division of a service between front and back office:

Back 35

TRUE

Front 36

Part of the system directly experienced and visible to the customer. This is where the service is performed and is thereby open to customer scrutiny, e.g. the hotel dining room

Back 36

front office

Front 37

that part of the system from which the customer is (physically) excluded, e.g. the hotel kitchens. It is often referred to as the manufacturing side of the service, not seen by the customer.

Back 37

BACK OFFICE

Front 38

the technical core of an organization

Back 38

production process

Front 39

TRUE OR FALSE

Technical core of an organization (commonly referred to as the production process) is sealed off from any uncertainties that may occur in other parts of the organization.

Back 39

TRUE

Front 40

The back office becomes decoupled, separated from the front office and NOT allowed to work without hindrance or interference

Back 40

FALSE

The back office becomes decoupled, separated from the front office and is allowed to work without hindrance or interference

Front 41

TRUE OR FALSE

The main objective of the back office is to enable efficiency to be minimized in the ‘production processes’

Back 41

The main objective is to enable efficiency to be maximized in the ‘production processes’.

Front 42

refers to the service organization’s incomplete knowledge of what the customer is going to bring to the service and how he or she is likely to behave

Back 42

Input uncertainty

Front 43

Input uncertainty will vary with the two environmental variables:

___________________ and _______________

Back 43

1. customer willingness to participate

2. diversity of demand

Front 44

refers to how far customers wish to play an active part in the service

Back 44

Customer willingness to participate

Front 45

TRUE OR FALSE

Customers’ capacity to become involved can be limited by lack of knowledge, skills and understanding of their role

Back 45

TRUE

Front 46

refers to the uniqueness of customer demands. Are they to be met in a customized or standardized way?

Back 46

Diversity of demands

Front 47

refers to different patterns with respect to division of service work (between front and back office and customer) and customization versus standardization of standard actions and interdependencies

Back 47

Interdependencies

Front 48

Four service design options

Back 48

1. Sequential standardized service design

2. Reciprocal service design

3. Sequential customized service design

4.Pooled service design

Front 49

a customer dominated design in which they serve themselves after service employees have provided the goods and facilities needed for self-service.

Back 49

Sequential standardized service design

Front 50

It is a standardized service in which the front and back office can be decoupled to allow for efficient delivery of service

Back 50

Sequential standardized service design

Front 51

joint participation of the parties ‘in which the output of each becomes the input for the others’. The service is produced largely on the basis of significant interactions between front-office employees and customers

Back 51

Reciprocal service design

Front 52

the bulk of the work here is performed by the service employees in a system of strong interdependence between back and front offices

Back 52

Sequential customized service design

Front 53

most of the work done by an efficient back office, largely decoupled from front-office disturbances. Customers do not interact extensively with service employees but engage in the sharing of resources that makes mass service possible

Back 53

Pooled service design

Front 54

flowchart of the service process. It is a map in which all the elements or activities, their sequencing and interaction, can be visualized

Back 54

service blueprint

Front 55

essential steps in blueprinting a service

Back 55

1. Draw, in diagrammatic form,

2. Identify the fail points

3. Set executional standards

4. Identify all the evidence that is available to the customer.

5. Analyze profitability

Front 56

all the components and processes (Figure 3.4). The service in this case is simple and clear-cut and the map is straightforward. More complex services may require large, complicated diagrams.

Back 56

Draw, in diagrammatic form

Front 57

where things might go wrong. In Figure 3.4 the shoe shiner may pick up the wrong wax.

Back 57

Identify the fail points

Front 58

these are tolerances (band or range) set around each function and regarded as acceptable from a customer and cost viewpoint.

Time is a good example. In Figure 3.4 the standard execution time is 2 minutes, and research showed that the customer would tolerate up to 5 minutes before lowering his or her assessment of quality.

Back 58

Set executional standards

Front 59

Each item represents an encounter point.

Back 59

Identify all the evidence that is available to the customer

Front 60

delays in service execution through errors or working too slowly affects profit. The shoe shiner estimates the cost of delay; anything greater than 4 minutes execution time and he loses money

Back 60

Analyze profitability

Front 61

TRUE OR FALSE

A process cannot be improved until there is a clear understanding of how it works.

Back 61

TRUE

Front 62

TRUE OR FALSE

There may well be different viewpoints as to how a process should be performed and monitored.

Back 62

TRUE

Front 63

The areas for investigation should be:

Back 63

● Process activities

● Information required to perform the process

● Products generated by the process, e.g. documents, services, etc.

● People and equipment required to perform the process

● Documents that direct how the process is to be accomplished.

Front 64

TRUE OR FALSE

To fully appreciate the workings of any service system reference must be made to what is known as ‘the 5 logics’

Back 64

FALSE

To fully appreciate the workings of any service system reference must be made to what is known as ‘the 3 logics’

Front 65

defined here as ‘a way of reasoning’ or a ‘perspective

Back 65

LOGIC

Front 66

stresses underlining the significance of the 3 logics, they are ‘crucial to accurate diagnosis of any service situation’

Back 66

Kingmann-Brundage

Front 67

The 3 logics

Back 67

Customer logic

Technical logic

Employee logic

Front 68

is the underlying rationale that drives customers’ behavior, based on their needs and wants. It will be evident in what customers expect of the service and how it might compare with other services

Back 68

Customer logic

Front 69

is seen as the ‘engine’ of the service operation. It is essentially concerned with the way things are done dictated largely by organization policy, rules and regulations

Back 69

Technical logic

Front 70

the underlying rationale that drives employee behavior. It will be evident in employees’ perception of working conditions, working methods, organization of work and role clarity.

Back 70

Employee logic

Front 71

,

Back 71

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