Service Management Essay

1084 Words Oct 16th, 2013 5 Pages
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
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adio station
Police protection
Lighthouse

Banking

Public Highway

Long-distance phone calls
Theater series tickets
Transit pass
Sam’s Wholesale Club
Airline frequent flyer

Restaurant
Pay phone
Toll highway
Movie theater
Public transportation

Strategic Service Classification
(Customization and Judgment)
Extent to Which Service Characteristics Are Customized
Extent to Which Personnel
Exercise Judgment in Meeting
Customer Needs
High
Low

Surgery

Low

Taxi services
Gourmet restaurant

Education (large classes)
Family restaurant

Telephone service
Hotel services

High

Preventive health programs

Public transportation
Spectator sports

Retail banking
Cafeteria

Movie theater
Institutional food service

Strategic Service Classification
(Nature of Demand and Supply)
Extent of Demand Fluctuation over Time
Extent to which Supply
Is Constrained

Wide

Narrow

Electricity

Peak demand can usually be met without a major delay

Insurance

Telephone

Legal services
Banking

Hospital maternity unit

Laundry and dry cleaning

Tax preparation

Peak demand regularly exceeds capacity

Police emergency

Fast food restaurant

Passenger transportation

Movie theater

Hotels and motels

Gas station

Strategic Service Classification
(Method of Service Delivery)
Availability of Service Outlets
Nature of Interaction between Customer and
Service Organization
Customer travels to
service
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