Service Encounters Range

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Sherilyn Johnson
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3 The Servuction System Slide 2007 by Christopher

1 Service Encounters Range Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 3 The Servuction System Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 4

2 Service Marketing System for a Low-Contact Service (Fig 2.11) Service Operations System SERVICE MARKETING SYSTEM Service Delivery System Other Contact Points Technical Mail Self Service Equipment Phone, Fax, Website, etc. The Customer Advertising Market Research Surveys Billing/Statements Random Exposure to Facilities/Vehicles Word of Mouth Backstage (invisible) Front Stage (visible) Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 5 Service Marketing System for a High-Contact Service (Fig 2.10) SERVICE MARKETING SYSTEM Service Delivery System Other Contact Points Service Operations System Technical Backstage (invisible) Interior & Exterior Facilities Equipment Service People Front Stage (visible) Other Customers The Customer Other Customers Advertising Sales Calls Market Research Surveys Billing/Statements Misc. Mail, Phone Calls, s, Faxes, etc. Website Random Exposure to Facilities/Vehicles Chance Encounters with Service Personnel Word of Mouth Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 6

3 Designing a Service Concept! Product " Central component that supplies the principal, problem-solving benefits customers seek! Supplementary Services " Augment the core product, facilitating its use and enhancing its value and appeal! Delivery Processes " Used to deliver both the core product and each of the supplementary services Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 7 The Flower of Service (Fig 3.6) Payment Consultation Billing Order Taking Exceptions Hospitality KEY: Facilitating elements Enhancing elements Safekeeping Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 8

4 and Physical Processes of Augmented Service Product (Fig 4.1) processes Payment Consultation Billing Ordertaking Exceptions Safekeeping Hospitality Physical processes Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 9 and Supplementary Services at Luxury Hotel (Offering Much More than Cheap Motel!) Cashier Reservation Valet Parking Business Center Reception Room Service Wake-up Call A Bed for the Night in an Elegant Private Room with a Bathroom Cocktail Bar Baggage Service Internet Entertainment/ Sports/ Exercise Restaurant Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 10

5 and Supplementary Product Design: An Integrated Perspective (Fig 3.2) Supplementary services offered and delivered Scheduling Nature of Process Delivery Concept for Product Service Level Customer Role Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 11 Four Categories Of Services (Fig 2.1) Who or What Is the Direct Recipient of the Service? Nature of the Service Act People Possessions Tangible Actions Intangible Actions People processing (services directed at people s bodies):! Barbers! Health care Mental stimulus processing (services directed at people s minds):! Education! Advertising/PR Possession processing (services directed at physical possessions):! Refueling! Disposal/recycling processing (services directed at intangible assets):! Accounting! Banking Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 12

6 Examples of Service Tiering in Different Industries (Table 7.1) Industry Tiers Key Service Attributes and Physical Elements Used in Tiering Lodging Star or diamond ratings (5 to 1) Architecture; landscaping; room size; furnishings and décor; restaurant facilities and menus; room service hours; array of services and physical amenities; staffing levels; caliber and attitudes of employees Airline Classes (intercontinental): first, business, premium economy, economy Seat pitch; seat width and reclining capability; meal and beverage service; staffing ratios; check-in speed; departure and arrival lounges; baggage retrieval speed Car Rental Class of vehicle Vehicle size (from subcompact to full size); degree of luxury; special vehicle types (minivan, SUV, convertible) Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 13 Seven Star Hotel: Burj Al Arab Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 14

7 Developing Right Service Concept for a Specific Segment! Use research to identify and prioritize which attributes of a given service are important to specific market segments! Individuals may set different priorities according to: " Purpose of using the service " Who makes decision " Timing of use " Whether service is used alone or with a group " Composition of that group Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 15 Splitting Responsibilities For Supplementary Service Elements (Fig 4.3) As created by originating firm As enhanced by distributor As experienced by customer + = product Supplementary services Total experience and benefits Challenges for original supplier " Act as guardian of overall process " Ensure that each element offered by intermediaries fits overall service concept Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 16

Example: Buying at Ebay Slide 2007 by Christopher Lovelock

Processes of Augmented Service Product (Fig 4.

Exceptions Safekeeping Hospitality Physical processes

8 Example: Buying at Ebay Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 17 and Physical Processes of Augmented Service Product (Fig 4.1) processes Payment Consultation Billing Ordertaking Exceptions Safekeeping Hospitality Physical processes Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 18

9 Homework till Tuesday Build a service flower of your Business Where might be possibilities to change your offer? Slide 2007 by Christopher Lovelock and Jochen Wirtz Kunz - Services Marketing 22

Planning and Creating Services

Planning and Creating Services A service product comprises all elements of service performance, both tangible and intangible, that create value for customers The service concept is represented by: A core