Service Management

The Nature of Services

Learning Objectives
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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 Integration of Marketing,
Operations, and Human Resources

Service/Product Bundle
Element
Business

Core Goods
Example
Custom clothier

Core Service
Example
Business hotel

Core

Business suits

Peripheral
Goods

Garment bag

Room for the night Bath robe

Peripheral
Service
Variant

Deferred payment plans

In house restaurant Coffee lounge

Airport shuttle

The Service Process Matrix
Degree
Degree of Interaction and Customization of labor Intensity
Low
High

Low

High

Service factory:
* Airlines
* Trucking
* Hotels
* Resorts and recreation

Service shop:
* Hospitals
* Auto repair
* Other repair services

Mass service:
* Retailing
* Wholesaling
* Schools
* Retail aspects of commercial banking

Professional service:
* Doctors
* Lawyers
* Accountants
* Architects

The Service Package
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Supporting Facility: The physical resources that must be in place before a service can be sold. Examples are golf course, ski lift, hospital, airplane.
Facilitating Goods: The material consumed by the buyer or items provided by the consumer. Examples are food items, legal documents, golf clubs, medical history. Information: Operations data or information that