2. Supporting Facility: The physical resources that must be in
place before a service can be sold. Examples are golf course,
ski lift, hospital, airplane.
Facilitating Goods: The material consumed by the buyer or
items provided by the consumer. Examples are food items,
legal documents, golf clubs, medical history.
Information: Operations data or information that is
provided by the customer to enable efficient and
customized service. Examples are patient medical records,
seats available on a flight, customer preferences, location of
customer to dispatch a taxi.
Dr. Swatantra Kumar, SSVGI, Bareilly
3. Explicit Services: Benefits readily observable by the senses.
The essential or intrinsic features. Examples are quality of
meal, attitude of the waiter, on-time departure.
Implicit Services: Psychological benefits or extrinsic
features which the consumer may sense only vaguely.
Examples are privacy of loan office, security of a well lighted
parking lot.
Dr. Swatantra Kumar, SSVGI, Bareilly
4. Degree Degree of Interaction and Customization
of labor Intensity Low High
Service Factory Service Shop
* Airlines * Hospitals
Low * Trucking * Auto repair
* Hotels * Other repair
services
* Resorts and recreation
Mass Service Professional
Service
* Retailing * Doctors
High * Wholesaling * Lawyers
* Schools * Accountants
* Retail banking * Architects
Dr. Swatantra Kumar, SSVGI, Bareilly
9. What are the characteristics of services that will be most
appropriate for Internet delivery?
When does collecting information through service
membership become an invasion of privacy?
What are some management problems associated with
allowing service employees to exercise judgement in
meeting customer needs?
Illustrate the “distinctive characteristics of service
operations” for a service with which you are familiar.
What factors are important for a manager to consider
when attempting to enhance a service firm’s image?
Dr. Swatantra Kumar, SSVGI, Bareilly
10. On the basis of end user
On the basis of degree of tangibility
Degree of customer contact
Degree of expertise
Profit orientation
Dr. Swatantra Kumar, SSVGI, Bareilly
11. Business services
Consumer services
Govt.
Dr. Swatantra Kumar, SSVGI, Bareilly
12. Purely intangible
Services with tangible inputs
Products with service inputs
Dr. Swatantra Kumar, SSVGI, Bareilly
13. Low customer contact
High Customer contact
Dr. Swatantra Kumar, SSVGI, Bareilly
14. High
Moderate
Low
Dr. Swatantra Kumar, SSVGI, Bareilly
15. For profit
Not for profit
Dr. Swatantra Kumar, SSVGI, Bareilly
16. Goods are tangible whereas services are
intangible
Customers participate in many service
processes, activities and transactions
The demand for services is more difficult to
predict than the demand for goods
Services can not be stored as physical
inventory
Service management skills are paramount to
a successful service encounter
Dr. Swatantra Kumar, SSVGI, Bareilly
17. Service facilities typically need to be in close
proximity to the customer
Patents do not protect services
Dr. Swatantra Kumar, SSVGI, Bareilly
20. “you’ll never have product or price advantage
again. They can be easily duplicated, but a
strong customer service culture can’t be
copied” – Jerry Fritz, Director of Management Institute
University of Wisconsin, Madison, WI
Dr. Swatantra Kumar, SSVGI, Bareilly
22. No possibility of the customer to see, touch
or feel the service proposition before or
during its purchase.
No impulse purchase
Very difficult to evaluate or measure quality
in service
The customer cannot stake any claim of
ownership or possession of the service
proposition: he can only experience the offer
Dr. Swatantra Kumar, SSVGI, Bareilly
23. Services cannot be inventoried
Services cannot be easily patented
Services cannot be readily displayed or
communicated
Pricing is difficult
Dr. Swatantra Kumar, SSVGI, Bareilly
24. Simultaneous production and consumption
They can’t be stored and reproduced
Example: Business school enrolments;
cinema show; rail/air travel reservation, they
all expire with time
Time is irrecoverable and so as service
Dr. Swatantra Kumar, SSVGI, Bareilly
25. It is difficult to synchronize supply and
demand with services
Services cannot be returned or resold
Dr. Swatantra Kumar, SSVGI, Bareilly
26. Inconsistent quality and delivery (due to
human element)
Dr. Swatantra Kumar, SSVGI, Bareilly
27. Service delivery and customer satisfaction
depend on employee and customer actions
Service quality depends on many
uncontrollable factors
There is no sure knowledge that the service
delivered matches what was planned and
promoted
Dr. Swatantra Kumar, SSVGI, Bareilly
28. We can’t have any new Gazals from
Legendary Jagjit Singh (of course the old
ones are preserved and can be reproduced)
People is service (both provider and recipient
are important)
For heart surgery you need the doctor and
the patient.
Dr. Swatantra Kumar, SSVGI, Bareilly
29. Customers participate in and affect the
transaction
Customers affect each other
Employees affect the service outcome
Mass production is difficult
Dr. Swatantra Kumar, SSVGI, Bareilly
30. How to address the unique
characteristics of the service
industry
Dr. Swatantra Kumar, SSVGI, Bareilly
31. These are the ways in which intangibility can
be overcome
Visualization
Association
Physical Representation
Documentation
Facts and figures
Dr. Swatantra Kumar, SSVGI, Bareilly
32. Beautiful looking internet sites
Beautiful building and landscapes at
institutions
Well dressed staff at Hotels/hospitals
Big offices of real estate brokers
Dr. Swatantra Kumar, SSVGI, Bareilly
33. Over marketing
Managing Demand ( demand states)
Managing Supply (goods, systems and
processes, people)
Dr. Swatantra Kumar, SSVGI, Bareilly
34. Differential pricing at Cinema theaters
Peak & off peak offers at Holiday resorts
Happy hours at restaurant
Dr. Swatantra Kumar, SSVGI, Bareilly
35. Training of internal customers
Recruitment and selection of internal
customers
Training of external customers
automation
Dr. Swatantra Kumar, SSVGI, Bareilly
36. Automation (ATMs for banking services)
Training is critical (as most service businesses
are people intensive)
Dr. Swatantra Kumar, SSVGI, Bareilly
37. Training of internal customers
Video conferencing
Robotics
Dr. Swatantra Kumar, SSVGI, Bareilly
38. All business organizations are functionally
integrated.
Hence functions overlap and interact
Service operations and service marketing are
intensely affected by each other as the
production and consumption of services is
simultaneous
Dr. Swatantra Kumar, SSVGI, Bareilly
39. All elements within the control of the firm that
communicate the firm’s capabilities and image
to customers or that influence customer
satisfaction with the firm’s product and
services:
Product
Price
Place
Promotion
Dr. Swatantra Kumar, SSVGI, Bareilly
40. Product
Price
Place
Promotion
People
All human actors who play a part in service delivery and thus influence the
buyer’s perceptions: namely, the firm’s personnel, the customer, and other
customers in the service environment.
Physical Evidence
The environment in which the service is delivered and where the firm and
customer interact, and any tangible components that facilitate performance or
communication of the service.
Process
The actual procedures, mechanisms, and flow of activities by which the service
is delivered—the service delivery and operating systems.
Dr. Swatantra Kumar, SSVGI, Bareilly
42. Service Culture
The Critical Importance of Service
Employees
Boundary-Spanning Roles
Strategies for Delivering Service
Quality Through People
Customer-Oriented Service
Delivery
Dr. Swatantra Kumar, SSVGI, Bareilly
43. “A culture where an appreciation for good
service exists, and where giving good service
to internal as well as ultimate, external
customers, is considered a natural way of life
and one of the most important norms by
everyone in the organization.”
- Christian Gronroos
(1990)
Dr. Swatantra Kumar, SSVGI, Bareilly
44. They are the service.
They are the organization in the customer’s
eyes.
They are the brand.
They are marketers.
Their importance is evident in:
the services marketing mix (people)
the service-profit chain
the services triangle
Dr. Swatantra Kumar, SSVGI, Bareilly
45. Company
(Management)
Internal Marketing External Marketing
“Enabling the promise” “Making the promise”
Employees Customers
Interactive Marketing
“Delivering the promise”
Dr. Swatantra Kumar, SSVGI, Bareilly
46. Who are they?
“boundary spanners”
What are these jobs like?
emotional labor
many sources of potential conflict
▪ person/role
▪ organization/client
quality/productivity tradeoffs
Dr. Swatantra Kumar, SSVGI, Bareilly
48. Person versus role
Organization versus client
Client versus client
Dr. Swatantra Kumar, SSVGI, Bareilly
49. Hire for service
competencies and
service
Compete for inclination Be the
the best preferred
people employer
Measure and Train for
reward strong technical and
Hire the
service interactive
performers
right people skills
Customer- Develop
Treat Retain the people to
employees as Oriented Empower
best deliver
customers Service service
employees
people
Delivery quality
Include Provide
employees in needed support Promote
the company’s systems teamwork
vision
Develop Measure
service-oriented internal service
Provide
internal quality
supportive
processes
technology and
equipment
Dr. Swatantra Kumar, SSVGI, Bareilly
50. Servicescape Other tangibles
Facility exterior Business cards
Exterior design Stationery
Signage Billing statements
Parking Reports
Landscape Employee dress
Surrounding environment Uniforms
Brochures
Facility interior Web pages
Interior design Virtual servicescape
Equipment
Signage
Layout
Air quality/temperature
51. Is a clearly defined set of tangible (goods
content) and intangible (Service-content)
features that the customer recognizes, pays
for, uses, or experiences
CBP consists of a primary good or services
coupled with peripheral goods and/or
services, and sometimes a variant
A primary good or service is the core offering
that attracts customers and responds to their
primary wants and needs.
Dr. Swatantra Kumar, SSVGI, Bareilly
52. Peripheral goods or services are those that
are not essential to the primary good or
service, but enhance it.
A variant is a CBP attribute that departs from
the standard CBP and is normally location or
firm specific.
Dr. Swatantra Kumar, SSVGI, Bareilly
53. Peripheral goods Variant
Free Kids
wash play
Anytime area
High
Primary Good speed
Free internet
Coffee Vehicle
& tea
Replacement
Purchasing Peripheral
parts
and services
leasing
Dr. Swatantra Kumar, SSVGI, Bareilly
54. Think of a service
May be an existing or new idea
Draft a plan for service creation and delivery.
Create primary good/service, peripheral
goods/services and variant.
Dr. Swatantra Kumar, SSVGI, Bareilly