L10- Service

Service - what is?

In this lesson, service is scoped to service in business environment.

We have at one time or another experience service, receive service or provide service.

However, what is service?.

4 special characteristics that make it a service /What are the difference between goods and services? :

a) intangibility

services (intangible performance) / goods (tangible)

b) heterogeneity

service (output varies every time) / goods (homogenous, output always the same every time)

c) inseparability

service (cannot separate service provider and service)/ goods (can separate goods and customers)

d) perishability.

perish after service (ie no inventory)/goods (can be inventorised.)

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Good service is critical in contributing to a company's bottom line (profit).

How do we know if service is good?

How do we quantify it?

SERVICE STANDARD :

a) SOFT :

b) HARD :

soft (behavourial) :
how does the customer received the service. :
eg did the bus captain smile/welcome the passenger?


hard (operational) :
what/when the service is received.

eg in a call center, a call will be taken with 5 rings.


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How do we measure the service quality ?

Different dimensions can be used to measure service quality :
what are some of them :

a) tangibles/how reliable are the service/how responsive is the service/competence of service provider/courtesy of service provider/credibility of service provided/security of service provided.
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To decide what is the best strategy to provide good service,
service can be classified based on different dimension :

a) nature of the service (refer to 6P)

b) demand and supply (refer to 6P)

c) customisation/judgement (refer to 6P)

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SERVICE CHAIN PROFIT.

why go to so much effort to provide/measure good service?

Satisfied employees --> value add to service/provide good service -> customer happy --> become loyal customer --> lead to increase profit for the company.

Why want to make customer loyal ??
--> lower cost to retain existing customers than to find new customers.