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Service Process Design

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Presentation on theme: "Service Process Design"— Presentation transcript:

1 Service Process Design
Chapter 5

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

3 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)

4 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

5 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

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

7 The Service Typology Service Factory Mass Service Service Shop
Professional Service

8 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

9 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

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