2. Nature of services
Services are everywhere
Service is
‘an act or performance that one party can offer to
another;
That is essentially intangible;
And does not result into the ownership of anything.
Production may/may not be tied to a physical product.
3. Nature of services
Service Mix
Pure tangible goods; e.g. Phenyl
Tangible good + accompanying service; cars
Hybrid; restaurants
Service + accompanying goods; travel
Pure service; education, consulting
4. Nature of services
Equipment based (ATMs) / people based (consulting,
cleaning)
Requires the client’s presence (brain surgery); car
washing doesn’t.
Services for personal or business needs.
Profit/non profit; public/private ownership.
5. Characteristics of Services
Intangibility
No idea of the outcome of the service.
Therefore, ‘tangibilize the intangibles’.
Through physical evidence and presentation.
Place
People
Equipment
Price
Communication materials.
6. Characteristics of Services
Inseparability
Produced and consumed simultaneously.
The client is present when the service is produced.
The provider becomes a part of the service.
Variability
Human behavior cant be standardized.
Try to hire good people.
7. Characteristics of Services
Perishability
Services can’t be stored
Can’t store for peak demands
Differential pricing
Reservation systems
Increased consumer participation
8.
9.
10. Managing Service Quality
Gap 1:
Consumer expectation and management perception
Gap 2:
Management Perception and service-quality
specification
11. Managing Service Quality
Gap 3:
Service quality specification and service delivery
Gap 4:
Service delivery and external communications
Gap 5:
Perceived service and expected service
12. Managing Service Quality
Reliability
Ability to perform promised service accurately
Responsiveness
Willingness to help customers, prompt service
Assurance
Knowledge and courtesy of employess
13. Managing Service Quality
Empathy
Caring, individualized attention
Tangibles
Appearance of physical facilities, equipment, personnel,
etc.
14. Best Practices
Strategic concept: be “customer -obsessed”
Top management commitment
Set high standards
Self-service technologies (SSTs) – ATM, IRCTC
Monitoring Systems
Satisfying employees as well as customers
