Professional Documents
Culture Documents
to the offerings of all firms in some cases, a service is the principal purpose of the transaction, as in the rental of a car, a haircut, or legal services -- we refer to this as the core service in others, service is performed in support of the sale of a tangible product -- these are referred to as supplementary services
12 - 1
Operations Management
Marketing Management
Customers
People
People processing (services directed at peoples bodies):
Possessions
Possession processing (services directed at physical possessions):
Intangible Actions
Barbers
Health care
Refueling
Disposal/recycling
Education Advertising/PR
Accounting
Banking
Physically enter the service factory Co-operate actively with the service operation
Managers should think about process and output from customers perspective
Possession Processing
Possession Processing Customers are less physically involved compared to people processing services Involvement is limited Production and consumption are separable
Can be inventoried
Information Processing
Information Processing Information is the most intangible form of service output But may be transformed into enduring forms of service output Advance in IT is blurring the boundaries of these categories. Is thus every business an information business?
Manufacturers offer service Growth of chains and franchising Pressures to improve productivity and quality More strategic alliances Marketing emphasis by nonprofits Innovative hiring practices
business:
Information today can be standardized, built to order, assembled from components, picked, packed, stored, and shipped, all using processes resembling manufacturings
services and the management of the life cycle the core service can be enhanced through the addition of supplementary services, thereby creating added value the life cycle of services has to be managed the branding of a service can be difficult as the customer often has nothing tangible to show
12 - 10
Prepurchase Stage
Uncertainty about outcomes increases perceived risk What risk reduction strategies can service suppliers develop?
Strong brand, warranties, free-trial, money back Expectation vs. perception of real value
Post-Encounter Stage
Easy to evaluate
Clothing Chair Motor vehicle Foods Restaurant meals Lawn fertilizer Haircut Entertainment Education Legal services
Difficult to evaluate*
Computer repair
Complex surgery
ZONE OF TOLERANCE
Source: Adapted from Valarie A. Zeithaml, Leonard A. Berry, and A. Parasuraman, The Nature and Determinants of Customer Expectations of Service, Journal of the Academy of Marketing Science 21, no. 1 (1993): pp 112.
Moment of truth
Prepurchase Stage
Service operations (front and back stage) Service delivery (front stage) Service marketing (front stage)
People processing Information based service processing
Post-Encounter Stage
Technical Core
Equipment
The Customer
Service People
Random Exposure to Facilities/Vehicles Other Customers Chance Encounters with Service Personnel Word of Mouth
Backstage (invisible)
Technical Core
The Customer
Backstage (invisible)
performance unfolds
Many service dramas are tightly scripted, others improvised
Front-stage personnel are like members of a cast Like actors, employees have roles, may wear special costumes, speak
Prepurchase Stage
Evaluation of service performance/quality
Measured against customer expectations: Positive disconfirmation Confirmation as expected Negative disconfirmation Delight Unexpectedly high levels of
performance
People processing, possession processing, mental stimulus processing, information processing Based on differences in nature of service act (tangible or intangible), and who or what is direct recipient of service (people or possessions) Each poses distinctive service management challenges
Three-Stage Model of service consumption helps us to understand and better manage customer behavior