Topic 1

Introduction to services

Prepared by:
Dr Lusianus Kusdibyo

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Four categories of services

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 A. Scales of market entities
The scale that displays a range of product along a
continuum based on their tangibility ranging
from tangible dominant to intangible dominant.
Tangible dominant: goods that possess physical
properties that can be felt, tasted, and seen prior

Intangible dominant : services that lack the

physical properties that can be sensed by
consumers prior to the purchase decision.
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The scales of market entities

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 Two important lessons of TSME
1. There is no such thing as pure good or pure
service. Products seemingly are a bundle of
tangible and intangible elements that
combine to varying degree.
2. The tangible aspects of an intangible
dominant product and the intangible aspects
of a tangible dominant product are an
important source of product differentiation
and new revenue stream.

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 The Servuction Model

Suatu model yang digunakan untuk menggambarkan

empat faktor yang mempengaruhi pengalaman
jasa/layanan (service experience) konsumen,
termasuk faktor-faktor yang terlihat maupun yang
tidak terlihat oleh konsumen

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The Servuction Model

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 The Servuction Model

Inanimate Customer A
Environment
Invisible
organization Contact
and systems Personnel
Or
Service Customer B
Provider

Invisible Visible
Bundle of service
benefits received
by Customer A

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Servicescpe: the use of physical evidence to
design service environment.
Contact personnel: employees other than the
primary service provider who briefly interact with
the customer.
Service providers: the primary providers of core
service, such as teacher, dentist, etc.
Other customers: customers that share the

Invisible org & system: that part of a firm that

reflects the rules, regulations, and process upon
which the org is based.
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 The Service Triangle

The framework that support the market-

focused management model by depicting the
relationships among the system, the service
strategy, and the people, with the customer in
the center of the triangle, interacting with
each group.

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 The Service Triangle
The The organization
The company service exists to serve the needs of
exists to serve strategy the people who serve the
the customer customer

The
customer

The
systems The
people

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Hoffman & Bateson, 1997
 The service triangle
1. Communicate the service strategy to the
customer
2. Customer/employee interaction:
greatest opportunity for gains and losses
moments-of-truth
critical incidents
3. Customer/procedures & physical hardware
A.T.M. machines
cramped airline seats

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 The service triangle

4. Organizational systems may prevent

employees from giving good service
5. Physical and administrative systems
should flow logically from the service
strategy
6. Good service starts at the top
*
-sense of focus
-clarity
-priorities

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 The Services Marketing Triangle

Company
(management)

External marketing
Internal marketing
setting the promise
enabling the promise

Providers Customers
Interactive marketing
delivering the promise

Kotler (1994) 37
 Technology and the Services Marketing Triangle

Company

Technology

Providers Customers

Parasuraman (1996) 38
 THE SERVICE-PROFIT CHAIN
OPERATING STRATEGY & SERVICE DELIVERY SYSTEM

Employee Revenue
retention growth
Internal External
service Employee Customer Customer
satisfaction service
quality value satisfaction loyalty
Employee Profit
productivity ability
Retention
Repeat business
Workplace design Service concept: Referral
Job Design results for customer WOM postitive
Employee selection & Immune to competitor
development Service designed
Employee rewards & and delivered to meet
recognition
Tools for serving needs
customers

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