Preview

A Classification Comparison of Service Design

Powerful Essays
Open Document
Open Document
2154 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
A Classification Comparison of Service Design
A classification comparison
The customer contact model developed by Chase Richard implies that a service is efficient depending on the level of interaction it has with the customers. He states that control over production is harder to achieve in high customer contact environments, due to the uncertainty of the behaviour of individuals.
I have chosen the following three services restaurants, sport clubs and retail banking to compare from a customer contact point of view with reference to Chase’s model and also I will talk about differences and possible similarities in the encounter triad.
The retail banking system has low customer contact due to the fact that their services are more standardized than customized. Retail banking refers to transactional accounts, savings, mortgages, personal loans and debit or credit cards. Most of these services can be accessed through the internet, as transactions can be made through internet bankingand you can even apply for a new bank account, verify if you can apply for a loan online, deposit money through the cash machine make transactions by phone, all of which lead to a minimal costumer contact with bank employees. According to Chase retail banking passes as a mix service, involving face-to-face contact but also back office work, which involves low customer contact. Low contact systems involve programmed decisions which make things easier and more efficient. We can refer here to the norms and procedures that represent the guide for the services delivered by bankslike taking decisions, for example rejecting an application for a personal loan because it doesn’t comply with the minimal normative conditions required for that product, and hence limit the bank’srisk of not recuperating the funds.
In the restaurant services customers can use traditional (restaurant venues), automated (self-service), or electronic (internet, phone) delivery processes for a single outcome. As a result the nature of customer inputs varies, depending



References: CHASE RICHARD B, AND DAVID A, TANSIK (1983), The customer contact model for organization design, Management Science U.S.A. Lori S.Cook, David E. Bowen, Richard B.Chase , Sririam Dasu, Doug M.Stewart (2002), Human issues in service design, Journal of Operations Management.

You May Also Find These Documents Helpful

  • Powerful Essays

    Commerce Bank Case

    • 2404 Words
    • 10 Pages

    They emphasize the importance of keeping their customers happy on a day-to-day basis. They have established practices that are out of the norm for the banking industry. These practices include: extended hours, coffee and newspapers in the waiting lobby, inviting locations, phones in their ATM machines and even a bright-red Penny Arcade in their lobby! Through these practices Commerce’s goal has been to bring the retail experience into all of their branches. Looking at the banking industry using Porter’s Five Forces Model, it is clear that the industry is very competitive. There is a very high degree of rivalry caused by local and international banks along with credit unions which are favored by a substantial number of customers. Commerce is also facing an increasing potential of new entrants into their competition because other banks have started to assimilate their customer-centric practices. Additionally, Commerce has to face the reality of technology slowly becoming a threat in what’s evolving into a “self-service” world. As a supplier, the bank has less bargaining power than the customer due to the minimal costs involved in switching banks and the large number of banking options available to the…

    • 2404 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Mark Singleton

    • 401 Words
    • 2 Pages

    Being an old-school, relationship-type banker, even though he likes a direct customer contact, he recognized the great value that automated systems provided to businesses. He wanted an efficient CRM system with a goal to arm his relationship bankers with every possible shred of knowledge and information about the customers. "We needed the ability to store the interactions our relationship bankers were having with potential customers electronically", he said.…

    • 401 Words
    • 2 Pages
    Good Essays
  • Best Essays

    References: and bibliography Clark, G and Johnston, R (2005). Service operations management: improving service delivery. 2nd ed. Harlow: Financial Times/Prentice Hall. Jayawardena, C. (1994). 'Service Concepts '. In: R Kotas and C Jayawardena Profitable food and beverage management . London: Hodder&Stoughton. pp. 170191. The Nando 's story. (2010). The Nando 's story. Available at: http://www.nandos.co.uk/default/ABS8/The_Story.html. Accessed on 07 December 2010. Additional reading Cousins, J.A. (2002). Food and beverage management. 2nd ed. Harlow: Pearson Education Limited. Jones, P and Merricks, P (1994). The Management of foodservice operations. London: Cassell Khan, M.A (1991). Concepts of foodservice operations and management. New York, London: Van Nostrand Reinhold. Lovelock, C; Vandermerwe, S; Lewis B (1999) Services Marketing: A European Perspective, London: Prentice Hall. Lundberg, D E. (1993). The restaurant: from concept to operation. 2 nd ed. New York: Wiley&Sons, Inc. Mintel. (2009). Restaurant Service Trends – UK September 2009. Available at: http://0academic.mintel.com.emu.londonmet.ac.uk/sinatra/oxygen_academic/search _results/show&/display/id=440640 Accessed on 07 December 2010. Slack, N; Chambers, S; Johnson, R (2004), Operations Management, 4 th ed. London: Pearson Higher Education Wright, J.N. (1999). The management of service operations. London: Cassell. Yeoman, I (2000). Yield management. 2nd ed. London:Continuum.…

    • 3532 Words
    • 15 Pages
    Best Essays
  • Better Essays

    Fast Food Industry Leaders

    • 2140 Words
    • 9 Pages

    In the quick service restaurant business, the products being offered are food and drink at the lowest cost possible to satisfy company revenue as well as the consumer’s willingness to pay. Demand for the industry’s product is has been referred to as…

    • 2140 Words
    • 9 Pages
    Better Essays
  • Better Essays

    There are many benefits as well as possible drawbacks to service delivery that rely solely on technology. With today’s advances in technology almost any customer service option that is offered through a face-to-face service encounter, can also be offered through a technology based service encounter. The only aspect of customer service that isn’t available through technology is the tangible aspects that are experienced inside a store, including face-to-face contact with service personnel. There are pros and cons as well as risks associated with both service models, and given a certain situation, one model might be more appropriate to meet a customers needs. In this paper, I will be analyzing service delivery through technology, and comparing it to the face-to-face service delivery model, and showing how and why both can be effective depending on the needs of the customer.…

    • 2040 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    Check-out: This is a functional quality dimension where the human resource i.e. the receptionist should be well trained and should be service-minded leaving a good customer service impact on the customer. His/her appearance should be pleasant and would want the customer to remember his/her last visit to the restaurant. He/she should be well trained to handle payments. The physical resources needed will be the payment equipment’s and a feedback screen if…

    • 1760 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    As consumers we hold a very influential and powerful tool, money. Whether buying a top-quality watch like a Rolex or purchasing a shirt at Wal-Mart, we expect to get value from our monetary expenditures. In reference to the previous items, the customer dealt with absolutes. They are physically tangible items that cannot be returned or resold. Customers tend to have a high level of confidence in their expectation for these goods; however, services set on the other end of the spectrum. They are produced and consumed simultaneously. Once committed, a customer assumes a much higher risk of variability; therefore, a company should focus attentively on their quality of service. A company must measure the varying distances between customer expectations and perceptions.…

    • 956 Words
    • 4 Pages
    Better Essays
  • Better Essays

    Nike Crm

    • 981 Words
    • 4 Pages

    Bibliography: Buttle, F. (2009). Customer Relationship Management: Concepts and Technologies (2nd ed.). Burlington MA, USA: Butterworth-Heinemann.…

    • 981 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Donner, S., & Dudley, C. (1997). “Balancing customer contact and high-tech delivery”. [Electronic version]. American Bankers Association. ABA Banking Journal, 89(1), 18-20.…

    • 7075 Words
    • 29 Pages
    Powerful Essays
  • Powerful Essays

    Are the customers themselves, and resources are the facilitating goods, employee labor, and capital at the command of the service manager. Thus, to function, the service system must interact with the customers as participants in the service process. Because customers typically arrive at their own discretion and with unique demands on the service system, matching service capacity with demand is a challenge.…

    • 9826 Words
    • 47 Pages
    Powerful Essays
  • Powerful Essays

    Commerce Bank’s entire banking and operational philosophy is designed around creating a retail experience for the customer. This was unusual for the entire banking industry and thus a great source of differentiation from both the operational standpoint and from the service delivery design perspective. This meant that the entire value proposition from the customers’ standpoint depended on the design of the service environment/theater including the 3 service marketing mix variables…

    • 2547 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Vgbn

    • 1351 Words
    • 6 Pages

    Customer contact is an essential manageable element of a servicing company, however, the tendency is about its minimization. (How?).…

    • 1351 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Product design is more important than ever because customers are demanding greater product variety and are switching more quickly to products with state-of-the-art technology. The impacts of greater product variety and shorter product life cycles have a multiplicative effect on the number of new products and derivative products that need to be designed.…

    • 865 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Project Report on Axis Bank

    • 11015 Words
    • 45 Pages

    Retail Banking has come a long way from its earlier days when branches were the only point of contact between the customers and the bank. Earlier, each branch of a bank was a distinct entity in itself and entries were made manually. Manual operation lead to slow processing which resulted into long queues of customers at the branch.…

    • 11015 Words
    • 45 Pages
    Powerful Essays
  • Good Essays

    Classification of Services

    • 1759 Words
    • 8 Pages

    Problem: narrow exposure of managers to the variety of service industries; managers perceive their service as unique; management personnel is usually inbred; as a result, marketing thought in the field of services is underdeveloped.…

    • 1759 Words
    • 8 Pages
    Good Essays

Related Topics