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01 Characteristics and Challenges of Services

This document discusses key concepts in service management including: - Definitions of services, service firms, and the service process. - Trends showing a shift to a service-based economy in countries over time. - The roles of service managers, employees, and customers in the service encounter. - Frameworks for understanding the service package, service culture and empowerment, and creating customer satisfaction. - Charts and diagrams illustrating topics like the service profit chain and factors that influence customer perceptions.
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0% found this document useful (0 votes)
14 views46 pages

01 Characteristics and Challenges of Services

This document discusses key concepts in service management including: - Definitions of services, service firms, and the service process. - Trends showing a shift to a service-based economy in countries over time. - The roles of service managers, employees, and customers in the service encounter. - Frameworks for understanding the service package, service culture and empowerment, and creating customer satisfaction. - Charts and diagrams illustrating topics like the service profit chain and factors that influence customer perceptions.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ΔΙΟΙΚΗΣΗ ΥΠΗΡΕΣΙΩΝ

Χρήστος Ζηκόπουλος
Interactive Role of Services
Service Definitions

A Service is a Time-perishable, Intangible


Experience Performed for a Customer
Acting in the Role of a Coproducer.
James Fitzsimmons
Services are deeds, processes, and
performances.
Valarie Zeithaml & Mary Jo Bitner
Definition of Service Firms

Service Enterprises are Organizations that


Facilitate the Production and Distribution of
Goods, Support Other Firms in Meeting
Their Goals, and Add Value to Our Personal
Lives.
James Fitzsimmons
Stages of Economic
Development
Features
Pre- Use of Standard
dominant human Unit of of living
Society Game activity labor social life measure Structure Technology
Pre- Against Agriculture Raw Extended Sub- Routine Simple hand
Industrial Nature Mining muscle household sistence Traditional tools
power Authoritative

Industrial Against Goods Machine Individual Quantity Bureaucratic Machines


fabricated production tending of goods Hierarchical
nature

Post- Among Services Artistic Community Quality of Inter- Information


industrial Persons Creative life in terms dependent
Intellectual of health, Global
education,
recreation
Trends in U.S. Employment by
Sector

Proportation of total employement 90


80
70
60
Service
50
40
Manufa
30 cturing
20 Agricult
10 ure
0
1850

1870

1890

1910

1930

1950

1970

1990
Year
Percent Service Employment for
Selected Industrialized Nations

Country 1980 1987 1993 1999


United States 67.1 71.0 74.3 80.4
Canada 67.2 70.8 74.8 73.9
Japan 54.5 58.8 59.9 72.4
France 56.9 63.6 66.4 70.8
Israel 63.3 66.0 68.0 70.7
Italy 48.7 57.7 60.2 61.1
China 13.1 17.8 21.2 26.4
Role of the Service Manager

 Entrepreneurial Innovation
 Capitalizing on Social Trends
 Management Challenges
Economies of Scale (MRI scanner)
Economies of Scope(Convenience store)
Complexity (Yield Management)
Boundary Crossing (Bank vs Brokerage)
International Competitiveness(Diversity)
Service/Product Bundle
Element Core Goods Core Service
Example Example
Business Custom clothier Business hotel

Core Business suits Room for the


night
Peripheral Garment bag Bath robe
Goods
Peripheral Deferred In house
Service payment plans restaurant
Variant Coffee lounge Airport shuttle
The Service Process Matrix
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 aspects of * Architects
commercial banking
The Service Package
 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.
The Service Package (cont.)
 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.
The Service Encounter Triad
The Service Encounter Triad
The Encounter can be dominated by:

 the Service Organization


 e.g. franchise services
 the Contact Personnel
 e.g. a doctor at a hospital or a clinic
 the Customer
 e.g. extremely standardized or customized services
The Service Organization
The Service Organization

Provides the environment in which the service takes place


 Culture

 Empowerment

 Control Systems

Empowerment vs. Control


Definitions of Culture
Culture

 ServiceMaster: Service to the Master


 Disney: Choice of language
 FedEx: Stories of extraordinary employees who safeguard the
“Absolutely Positively Overnight” motto
Empowerment

 “People want to do good work, and will do so if given the


opportunity”
 Inverted “T” organization structure
 Commitments:
 Invest in people as much as (or more than) in machines
 Use technology to support contact personnel rather than monitor or
replace them
 Consider the recruitment and training of contact personnel as
critical to firm’s success
 Link compensation to performance for employees at all levels
Control Systems
Contact Personnel
Contact Personnel

 Selection
 Training
 Creating an Ethical Climate
Selection

 Abstract Questioning
 “What type of customers was most difficult for you to deal with and
why?
 “What was customer’s primary complaint or negative
characteristic?”
 “How did you handle the customer?”

 “What would be the ideal way to deal with that type of customer?”

 Situational Vignette
 Role Playing
Selection

 Abstract Questioning
 Situational Vignette

 Role Playing
Selection

 Abstract Questioning
 Situational Vignette
 Role Playing
 Applicants participate in simulated situation
 React as if the service environment were real

 Final phase of recruitment

o The direct comparison of applicants is difficult

o Requires careful scripting and preparation


Training
Challenges that contact personnel face

 Use scripts to train personnel for proper response


Creating an ethical climate

 Prevent negative consequences of unethical opportunism


(cover mistakes, increase revenues, satisfy demanding
customers)
 Build a culture of trust and integrity
 Install an ethical behavior in employees
 Formal and informal controls
Examples of unethical behavior in customer-
contact settings
The Customer
The customer
Service Encounter success factors
Creating a Customer Service Orientation
Creating a Customer Service Orientation

 Relationship between customer and employee perceptions


 The “Satisfaction Mirror”
 The “Service Profit Chain”
Customer and employee perceptions of customer
service
The Satisfaction Mirror

The way management relates


to the contact personnel (or
internal customers) is reflected
in how the external customers
are treated
Service Profit Chain
The Service Profit Chain
Ανάλυση της ικανοποίησης πελάτη από την ποιότητα
υπηρεσίας & συνέπειες για την επιχείρηση
The Cycle of Capability
Employee satisfaction
The definition of value
Κλίμακα ικανοποίησης και αφοσίωσης
πελατών

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