Service Management
The Nature of Services
Learning Objectives
Classify a service into one of four categories using the service process matrix.
Describe a service using the four dimensions of the service package.
Discuss the managerial implications of the distinctive characteristics of a service operation. Discuss the insights obtained from a strategic classification of services.
Discuss the role of a service manager from an open-systems view of service.
An Integrated Approach to Service Management
The Eight Components
• Product Elements
• Place, Cyberspace, and Time
• Promotion and Education
• Price and Other User Outlays
+ Process
+ Productivity and Quality
+ People
+ Physical Evidence
Require the Integration of Marketing,
Operations, and Human Resources
Service/Product Bundle
Element
Business
Core Goods
Example
Custom clothier
Core Service
Example
Business hotel
Core
Business suits
Peripheral
Goods
Garment bag
Room for the night Bath robe
Peripheral
Service
Variant
Deferred payment plans
In house restaurant Coffee lounge
Airport shuttle
The Service Process Matrix
Degree
Degree of Interaction and Customization of labor Intensity
Low
High
Low
High
Service factory:
* Airlines
* Trucking
* Hotels
* Resorts and recreation
Service shop:
* Hospitals
* Auto repair
* Other repair services
Mass service:
* Retailing
* Wholesaling
* Schools
* Retail aspects of commercial banking
Professional service:
* Doctors
* Lawyers
* Accountants
* Architects
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
Learning Objectives
Classify a service into one of four categories using the service process matrix.
Describe a service using the four dimensions of the service package.
Discuss the managerial implications of the distinctive characteristics of a service operation. Discuss the insights obtained from a strategic classification of services.
Discuss the role of a service manager from an open-systems view of service.
An Integrated Approach to Service Management
The Eight Components
• Product Elements
• Place, Cyberspace, and Time
• Promotion and Education
• Price and Other User Outlays
+ Process
+ Productivity and Quality
+ People
+ Physical Evidence
Require the Integration of Marketing,
Operations, and Human Resources
Service/Product Bundle
Element
Business
Core Goods
Example
Custom clothier
Core Service
Example
Business hotel
Core
Business suits
Peripheral
Goods
Garment bag
Room for the night Bath robe
Peripheral
Service
Variant
Deferred payment plans
In house restaurant Coffee lounge
Airport shuttle
The Service Process Matrix
Degree
Degree of Interaction and Customization of labor Intensity
Low
High
Low
High
Service factory:
* Airlines
* Trucking
* Hotels
* Resorts and recreation
Service shop:
* Hospitals
* Auto repair
* Other repair services
Mass service:
* Retailing
* Wholesaling
* Schools
* Retail aspects of commercial banking
Professional service:
* Doctors
* Lawyers
* Accountants
* Architects
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