228285227 operations in service industry

8/10/2019 228285227 Operations in Service Industry

1/31

Gaurav S


2/31

Supporting Facility : The physical resources that must be inplace before a service can be sold. Examples are golf course,ski lift, hospital, airplane.Facilitating Goods : The material consumed by the buyer oritems provided by the consumer. Examples are food items,legal documents, golf clubs, medical history.Information : Operations data or information that isprovided by the customer to enable efficient andcustomized service. Examples are patient medical records,seats available on a flight, customer preferences, location ofcustomer to dispatch a taxi.


3/31

Explicit Services : Benefits readily observable by the senses.The essential or intrinsic features. Examples are quality ofmeal, attitude of the waiter, on-time departure.

Implicit Services : Psychological benefits or extrinsicfeatures which the consumer may sense only vaguely.Examples are privacy of loan office, security of a well lightedparking lot.


4/31

Degree Degree of Interaction and Customization

of labor Intensity Low HighService Factory Service Shop

* Airlines * Hospitals

Low * Trucking * Auto repair* Hotels * Other repairservices

* Resorts and recreation

Mass Service ProfessionalService

* Retailing * DoctorsHigh * Wholesaling * Lawyers

* Schools * Accountants* Retail banking * Architects


5/31

On the basis of end userOn the basis of degree of tangibility

Degree of customer contactDegree of expertiseProfit orientation


6/31

Business servicesConsumer services

Govt.


7/31

Purely intangibleServices with tangible inputs

Products with service inputs


8/31

Low customer contactHigh Customer contact


9/31

HighModerate

Low


10/31

For profitNot for profit


11/31

Goods are tangible whereas services areintangibleCustomers participate in many serviceprocesses, activities and transactionsThe demand for services is more difficult topredict than the demand for goods

Services can not be stored as physicalinventoryService management skills are paramount toa successful service encounter


12/31

Service facilities typically need to be in closeproximity to the customer

Patents do not protect services


13/31

TangibleDominant

IntangibleDominant

SaltSoft Drinks

DetergentsAutomobiles

Cosmetics

AdvertisingAgencies

AirlinesInvestment

ManagementConsulting

Teaching

Fast-foodOutlets

Fast-foodOutlets


14/31


15/31

IntangibilityPerishability

Heterogeneity/ non-standardization/variabilityinseparability


16/31

How to address the uniquecharacteristics of the service

industry


17/31

These are the ways in which intangibility canbe overcome

VisualizationAssociationPhysical RepresentationDocumentationFacts and figures


18/31

Beautiful looking internet sitesBeautiful building and landscapes at

institutionsWell dressed staff at Hotels/hospitalsBig offices of real estate brokers


19/31

Over marketingManaging Demand ( demand states)

Managing Supply (goods, systems andprocesses, people)


20/31

Differential pricing at Cinema theatersPeak & off peak offers at Holiday resorts

Happy hours at restaurant


21/31

Training of internal customersRecruitment and selection of internal

customersTraining of external customersautomation


22/31

Automation (ATMs for banking services)Training is critical (as most service businesses

are people intensive)


23/31


24/31

All business organizations are functionallyintegrated.

Hence functions overlap and interactService operations and service marketing areintensely affected by each other as theproduction and consumption of services issimultaneous


25/31

All elements within the control of the firm thatcommunicate the firms capabilities and imageto customers or that influence customersatisfaction with the firms product andservices:

Product

Price Place Promotion


26/31

ProductPricePlacePromotionPeople

All human actors who play a part in service delivery and thus influence thebuyers perceptions: namely, the firms personnel, the customer, and othercustomers in the service environment.

Physical EvidenceThe environment in which the service is delivered and where the firm andcustomer interact, and any tangible components that facilitate performance orcommunication of the service.

ProcessThe actual procedures, mechanisms, and flow of activities by which the serviceis delivered the service delivery and operating systems.


27/31


28/31

Service CultureThe Critical Importance of ServiceEmployeesBoundary-Spanning RolesStrategies for Delivering ServiceQuality Through PeopleCustomer-Oriented ServiceDelivery

Dr. Swatantra Kumar, SSVGI, Bareilly


29/31

They are the service.They are the organization in the customerseyes.They are the brand.They are marketers.Their importance is evident in:

the services marketing mix (people)the service-profit chainthe services triangle


30/31

Person versus role

Organization versus client

Client versus client


31/31

228285227 operations in service industry

Documents