Chapter 6: Aligning service design, standards & servicescape Flashcards
Discuss the concept of “Blueprinting” : what process dimensions and strategic orientations exist ?
Service blueprints are a tool for depicting the service process, the points of customer contact and the physical evidence of service from the customer’s point of view. They can be used to close the second gap, or the service design gap. In fact they are the visualization of the additional marketing mix elements of services:
- Process
- Physical evidence
- Participants
According to Shostack, when developing a new service, there are 2 process dimensions that should be considered:
- Complexity = how many different steps does one need to undertake in order to receive the service? How many different services do you offer?
- Divergence = how many different ways are there to perform the service?
These dimensions can be used to position an individual company: for example a luxury hotel has high complexity and low divergence, while hostels have low complexity and high divergence.
These dimensions can also be used to strategically position a company:
- Increasing divergence = customization
- Decreasing divergence = standardization
- Increasing complexity = market penetration (= increasing sales among the same market segment AND making market segments buy more variations in the services you offer)
- Decreasing complexity = specialization
Discuss the model of Bitner (1992) in which the impact of the servicescapes on customer and employee behavior is visualized ! What type of variables determine the “environment-user relationships” within service organizations ?
Servicescape = physical evidence that all participants in the service delivery see. Because services are intangible, any tangible evidence of the service is important.
The frameworks shows us that the perceived servicescape is based on 3 environmental dimensions:
1. Ambient conditions (f.e. temperature, noise …)
2. Space/function (f.e., layout, furnishings)
3. The signs, symbols and artifacts (style, decor, uniforms)
Employee and customer responses following the perception of this servicescape can be
1. Cognitive (f.e, belief, categorization)
2. Emotional (f.e., mood & attitude)
3. physiological (f.e., comfort, movement)
All these customer and employee responses will influence the individual behaviors of
1. The employee (f.e., affiliation, commitment)
2. The customer (f.e., return, money spend)
3. The social interaction between and among customers and employees.
What type of innovations can be distinguished in the case of services ? Provide examples !
There are several types of service innovations:
- Major or radical innovations = disruptive innovations that revolutionize existing markets or create new markets all together (ex. Airbnb, Uber, …)
- Start-up businesses = new service for markets that are already served by a service that already fulfilled the same generic need (ex. Online banking: new business, but same service was already fully covered by traditional banks)
- New services for the currently served market = companies offer new services to their existing market. Ex. Tesco (retailer) started selling insurances as well
- Service line extensions = modification or extensions of existing services. Example: Telenet including Netflix in their subscription).
- Service improvements = improving the existing service offering
- Style changes = simple changes in logo, colors, communication style, …
What type of servicescapes can be distinguished within a services context ? provide examples and explain !
Servicescape = physical evidence that all participants in the service delivery see. Because services are intangible, any tangible evidence of the service is important.
There are several aspects of the exterior servicescape that can be distinguished:
- Exterior servicescape = surrounding environment of the building (ex. Exterior design, signage, parking, landscaping, …)
- Interior servicescape = interior environment of the building (ex. Equipment, air quality, temperature, smell, interior design, …)
- Virtual servicescape = the online environment of the service (ex. Web page design, photographs, …)
- Other tangibles = all other forms of tangible evidence of the service (ex. Business cards, billing statements, reports, …)
What type of strategy does a company like “Ryanair” apply ? Explain in terms of “blueprinting-dimensions !
There are 2 strategic options a company can undertake:
- Increase/decrease complexity (= how many different steps/interactions one must undertake to get the service).
- Increase/decrease divergence (= how many ways the service can be accomplished).
In the case of Ryanair, they will probably want to:
- Decrease divergence = standardization
- Decrease complexity = specialization
The combination of these two will make the service enormously cheaper for the customers (which is the goal of Ryanair).
In service blueprint terms this means that there will be: Less interactions between customers and front and back office personal –> More use of online technologies. –> Lowers costs as well
Why are “service blueprints” so important ? How can service/company managers use them ?
They are important because they can be applied in several departments of the company:
- Service marketeers use them to create realistic service expectations
- Operations managers use them to ensure that the promised service is delivered and to figure out where issues and bottlenecks arise.
- Human resource managers might use them to instruct and train employees in order to empower them.
- They can also be used in system technologies in order to provide the necessary tools.
What are customer defined standards? And what are they used for?
= standards that are based on expectations defined by customers, not the company. In order to satisfy the customers, one should take their expectations into account.
Customer standards can be subdivided in 2 categories:
- Hard standards = can be measured (ex. On-time delivery)
- Soft standards = cannot be measured (ex. Friendliness)
Soft standards are very important
Customer defined standards can be used to close gap 2 to build the best possible service design.
What is a service quality index?
A multi-item measure that assesses key dimensions of operational and service quality and weighs them according to their importance.
How are customer-defined standards developed?
- Identify existing or desired service encounter sequence
- Translate customer expectations into behaviors/actions
- Determine appropriate standards
- Develop measurements for standards (hard/soft)
- Establish target levels for standards
- Track measures against standards
- Provide feedback about performance to employees
- Update target levels and measures
