Professional Documents
Culture Documents
Designing and
Managing
Service Processes
Core and Supplementary Services at Luxury Hotel
(Offering Much More than Cheap Motel!)
Reservation
Cashier Valet
Parking
Business
Reception
Center
A Bed for the Night
Room in an Elegant
Private Room with
Service Baggage
a Bathroom
Service
Wake-up Cocktail
Call Bar
Internet Entertainment/
Sports/ Exercise Restaurant
Levels of Service (products)
Core product-The core product is “what” the
customer is fundamentally buying
Supplementary services- Delivery of the
core product is usually accompanied by a variety of other
services
Delivery processes-
How the different service components are
delivered to the customer.
The nature of the customers’ role in those
processes.
How long delivery lasts.
The prescribed level and style of service to be offered
The Flower of Service (Fig 3.6)
Information
Payment Consultation
Core
Billing Order Taking
Exceptions Hospitality
Safekeeping
KEY:
Facilitating elements
Enhancing elements
The Flower of Service:
Facilitating Services—Information
Customers often require information about how to obtain
and use a product or service.
Examples of elements:
Examples of elements:
Core Applications
Order entry
Reservations and check-in
The Flower of Service:
Facilitating Services—Billing
“How much do I owe you?”
Bills should be clear,
Accurate, and intelligible.
Examples of elements:
Core
Periodic statements of
account activity
Machine display of amount
due
The Flower of Service:
Facilitating Services—Payment
Customers may pay faster
and more cheerfully if you
make transactions simple
and convenient for them.
Examples of elements:
Core
Customized advice
Personal counseling
Management consulting
The Flower of Service:
Enhancing Services—Hospitality
Customers who invest time and effort in
visiting a business and using its services
deserve to be
treated as welcome guests—
after all, marketing invited them!
Core
Examples of elements:
Greeting
Waiting facilities and amenities
Food and beverages
Toilets and washrooms
Security
The Flower of Service:
Enhancing Services—Safekeeping
Customers prefer not to worry about
looking after the personal possessions
that they bring with them to a service
site.
Core
Examples of elements:
Reservation
Porter
Pay TV
Meal
Room service
Travel to Store Technician Examines Leave Store Return, Pick up (Later) Play
Player, Diagnoses Player and Pay DVDs at Home
Problem
Collect Weather Data Meteorologists Input Data to Models and Creates Forecast from Output TV Weatherperson Prepares Local Forecast
Weather Forecasting Is a Service
Directed at Customers’ Minds (Fig 3.5)
Simple Flowchart for Delivery of An
Information-Processing Service (Fig 3.4)
Printed Policy
Learn about Options
Select Plan, Insurance Coverage Documents Arrive
Pay
Complete Forms Begins
Service Standards W
W
and Scripts Make W Valet
Coat Room …
Stage
Physical
Reservation Parking
Evidence Line of
interaction
Greet
Front -
“Institutions are like steel beams—they tend to rust. What was once smooth and shiny and nice
tends to become rusty.”
and/or delivery
Includes mental, physical, and even emotional inputs
Three Levels
Low—Employees and systems do all the work
- Often involves standardized service
Medium—Customer inputs required to assist provider
- Provide needed information and instructions
- Make some personal effort; share physical possessions
High—Customer works actively with provider to co-produce the service
- Service cannot be created without customer’s active participation
- Customer can jeopardize quality of service outcome (e.g., weight loss, marriage
counseling)
Self-Service Technologies (SSTs)
Ultimate form of customer involvement
Customers undertake specific activities using facilities or
systems provided by service supplier
Customer’s time and effort replace those of employees
○ e.g. Internet-based services, ATMs, self-service gasoline pumps
Co-Production
Economic rationale of self-service
Productivity gains and cost savings Lower prices,
reflecting lower costs, induce customer to use SSTs
SSTs present both advantages and
disadvantages
Benefits: Time and cost savings, flexibility,
convenience of location, greater control over service
delivery, and a higher perceived level of
customization
Disadvantages: Anxiety and stress experienced by
customers who are uncomfortable with using them
Ease of use