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Summary Service Industry Q3

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extensive summary of the book and all the additional material from class

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  • Chapter 4 (p. 64-68 and 70-72), 7 (p. 141-147) 9 (p.174-197), 10 (p.202-213 and 226-247), 14 (p. 320
  • January 18, 2021
  • 12
  • 2019/2020
  • Summary
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Service industry II




Chapter 4
Service blueprinting
Blueprinting is an effective and adaptable technique for service process design and
improvement, quality improvement, service
innovation and strategic change focused
around customers. It portrays the service
system so that the different people involved
in delivering it can understand and deal
with it objectively. It is to identify the points
of interaction (moment of truth) with the
customer. There are 3 lines:
1. The line of interaction: under this line:
actions of onstage contact customers/
employees
2. The line of visibility: under this line:
contact employees are working for a customer without the customer involved
3. The line of internal interaction: under this line: support processes fe reservation
systems.
Under the line of internal activities, the support processes are shown. Finally, the
physical evidence of the service is integrated into the blueprint.

A blueprint is also useful for identifying the weak links, such as bottlenecks or failure
points. Bottlenecks are more related to capacity management issues and indicate

, points in the activity chain where the probability of customers having to wait is high.
Failure points are all other types of weak points that lead to service failure.

Variability in the service process design
Customer variability in the process is influenced by five types:
- arrival variability: sometimes it is difficult to determine the arrival pattern, for
example a car dealership.
- request variability: different customers have different requests
- capability variability: customers differ in their capabilities to perform tasks in the
service process.
- effort availability: when customers perform a role in the service process, it is up
to them to decide how much effort they apply to the task.
- subjective preference variability: customers vary in their opinion about what it
means to be served well.
Generally, there are two strategies to deal with different types of variability: reducing
the amount of variability or accommodating the variability. A large part of variability is
driven by people in the service encounter.

The servicescape model can help in the perception of waiting time but cannot help in
shortening delays. The service gap model can help defining standard gaps with
regards to time.

Setting standards
Standards gap The service design & standards gap the difference between
management interpretations and service quality specifications.
Reasons for the standards gap
• Vague service quality standards
• Inadequate commitment to service quality
• The absence of goal setting based on customer
satisfaction (performance measures)
• Lack of perception of feasibility - ‘it cannot be done’
• Inadequate task standardization

Hard standards are basic requirements of the service that are needed to satisfy the
customer things that can be counted, timed or observed such as on-time delivery,
reliability, fast delivery etc.
Soft standards are standardization of employee’s behavior to exceed the adequate
service level such as being treated as an individual or be able to help.

Chapter 7
Location
In services, the customer and the service provider have to be brought together in a
service environment. Services are intangible and can neither be stored or
transported. As a result, the consumer has to go to the provider or the provider has
to go to the consumer. The surroundings and thee atmosphere in which services
take place are an integral part of the service itself. Place is about the choice of a
channel. In a service context, we don’t move physical products. Location is about the
physical location needed to provide the services. There are two kinds of channels for
servicing customers: personal channels (customers visit service site or service

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