Podcast
Questions and Answers
Which layout type is best suited for high-volume, standardized services?
Which layout type is best suited for high-volume, standardized services?
- Fixed-Position Layout
- Functional Layout
- Product Layout (correct)
- Cell Layout
What is a key feature of Functional Layout in service design?
What is a key feature of Functional Layout in service design?
- Arranging service delivery in a linear sequence
- Providing resources at a fixed location for services
- Clustering similar functions together (correct)
- Grouping related services in distinct areas
Which layout design type could potentially lead to increased customer wait times?
Which layout design type could potentially lead to increased customer wait times?
- Fixed-Position Layout
- Product Layout
- Cell Layout
- Functional Layout (correct)
What distinguishes Fixed-Position Layout from other layout types?
What distinguishes Fixed-Position Layout from other layout types?
Which layout type is designed for varied services to enhance efficiency?
Which layout type is designed for varied services to enhance efficiency?
What does Service Dominant Logic (SDL) emphasize about value creation?
What does Service Dominant Logic (SDL) emphasize about value creation?
How can services and products be characterized in relation to each other?
How can services and products be characterized in relation to each other?
What are 'explicit services' as defined in the content?
What are 'explicit services' as defined in the content?
What does the service package primarily involve?
What does the service package primarily involve?
Why is it more difficult to set performance standards for services compared to physical goods?
Why is it more difficult to set performance standards for services compared to physical goods?
During which situations does production and consumption occur simultaneously?
During which situations does production and consumption occur simultaneously?
Which of the following describes implicit services?
Which of the following describes implicit services?
What aspect of customer experience is particularly emphasized in service delivery?
What aspect of customer experience is particularly emphasized in service delivery?
What refers to features that surprise and delight customers in a service environment?
What refers to features that surprise and delight customers in a service environment?
Which term describes the basic characteristics taken for granted in a service setting?
Which term describes the basic characteristics taken for granted in a service setting?
What is the primary goal of service recovery?
What is the primary goal of service recovery?
What does the term 'zero defections' refer to?
What does the term 'zero defections' refer to?
Which of the following statements correctly describes the Servqual model?
Which of the following statements correctly describes the Servqual model?
How does word of mouth influence prospective customers?
How does word of mouth influence prospective customers?
What does effort variability impact in a service context?
What does effort variability impact in a service context?
Which of the following best describes 'consistency in personal manner' in services?
Which of the following best describes 'consistency in personal manner' in services?
What governs perceived quality in a service or product?
What governs perceived quality in a service or product?
What is described as the value of products ordered but still in transit?
What is described as the value of products ordered but still in transit?
Which of the following is a significant challenge in supply chain management?
Which of the following is a significant challenge in supply chain management?
Which component is essential for a successful supply chain?
Which component is essential for a successful supply chain?
What does service supply chain management involve?
What does service supply chain management involve?
What characterizes a bi-directional supply chain?
What characterizes a bi-directional supply chain?
What is an effective strategy for addressing issues in supply chain processes?
What is an effective strategy for addressing issues in supply chain processes?
What type of service does a production process requiring customer participation represent?
What type of service does a production process requiring customer participation represent?
What is the primary reason for the high failure rate of outsourcing relationships?
What is the primary reason for the high failure rate of outsourcing relationships?
Which of the following issues is NOT listed as a common problem in outsourcing?
Which of the following issues is NOT listed as a common problem in outsourcing?
What is the 'IKEA effect' related to in the context of labor?
What is the 'IKEA effect' related to in the context of labor?
How does service supply chains differ from traditional supply chains?
How does service supply chains differ from traditional supply chains?
What factor is highlighted as influential in the success or failure of an outsourcing relationship?
What factor is highlighted as influential in the success or failure of an outsourcing relationship?
Which of these statements reflects a misconception about outsourcing?
Which of these statements reflects a misconception about outsourcing?
What role does technology play in service encounters?
What role does technology play in service encounters?
What can lead to greater satisfaction in labor output according to research on the 'IKEA effect'?
What can lead to greater satisfaction in labor output according to research on the 'IKEA effect'?
What is considered a service qualifier in the context of customer expectations?
What is considered a service qualifier in the context of customer expectations?
Which of the following is a driver of globalization?
Which of the following is a driver of globalization?
Which option best describes a service loser?
Which option best describes a service loser?
What is a major challenge of service internationalization?
What is a major challenge of service internationalization?
How is 'capacity' defined in the context of service operations?
How is 'capacity' defined in the context of service operations?
Which of the following options represents a service winner?
Which of the following options represents a service winner?
What aspect is critical for managing service capacity and demand effectively?
What aspect is critical for managing service capacity and demand effectively?
What is a key element to consider in selecting a global service strategy?
What is a key element to consider in selecting a global service strategy?
Which of the following is NOT considered a part of the service profit chain?
Which of the following is NOT considered a part of the service profit chain?
What is a significant factor affecting service delivery in remote regions?
What is a significant factor affecting service delivery in remote regions?
Flashcards
Service Dominant Logic (SDL)
Service Dominant Logic (SDL)
The idea that value is not created solely by companies, but is co-created through interactions between customers and companies' offerings.
Service vs Manufacturing: Uncertainty
Service vs Manufacturing: Uncertainty
Services are intangible and often involve direct interaction with the customer, leading to more variability and uncertainty compared to manufacturing processes.
Goods as Exchange Mechanisms for Service
Goods as Exchange Mechanisms for Service
Goods provide access to the skills and expertise of those who made them. Therefore, even buying a product is essentially a service transaction.
Front Office Activities
Front Office Activities
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Back Office Activities
Back Office Activities
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Service Contextualization Matrix
Service Contextualization Matrix
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Explicit Services
Explicit Services
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Implicit Services
Implicit Services
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What is involved in layout decisions?
What is involved in layout decisions?
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Product Layout
Product Layout
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Cell Layout
Cell Layout
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Functional Layout
Functional Layout
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Fixed-Position Layout
Fixed-Position Layout
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Capacity in Services
Capacity in Services
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Drivers of Globalization
Drivers of Globalization
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Mismatch between Capacity and Demand
Mismatch between Capacity and Demand
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Service Winner
Service Winner
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Service Qualifier
Service Qualifier
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Service Expansion Strategies
Service Expansion Strategies
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Service Profit Chain
Service Profit Chain
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Service Loser
Service Loser
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Personalization in Services
Personalization in Services
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Dependability in Services
Dependability in Services
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Must Have (Basics)
Must Have (Basics)
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More is Better (Performance)
More is Better (Performance)
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Delighter
Delighter
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Reversal (Tontini)
Reversal (Tontini)
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Service Guarantee
Service Guarantee
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Zero Defections
Zero Defections
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Service Recovery
Service Recovery
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Servqual
Servqual
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Perceived Service Quality Gap
Perceived Service Quality Gap
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Service Supply Chain
Service Supply Chain
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Service Supply Chain Management
Service Supply Chain Management
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Trust and Power in Service Supply Chains
Trust and Power in Service Supply Chains
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Customer Participation in Service Creation
Customer Participation in Service Creation
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Bi-directional Service Supply Chains
Bi-directional Service Supply Chains
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Outsourcing Failure
Outsourcing Failure
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IKEA Effect
IKEA Effect
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Service Encounter Technology
Service Encounter Technology
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Bi-Directional Service
Bi-Directional Service
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Service Provider Perspective
Service Provider Perspective
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Customer Experience
Customer Experience
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Service Capacity Fluctuations
Service Capacity Fluctuations
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Value Co-Creation
Value Co-Creation
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Study Notes
Introduction to Service Operations
- Products and services are seldom pure, instead they are often a spectrum, with some products/services reaching the definition of both.
- Purchasing flour/pasta, buying a magazine, fixing a car, hiring DIY tools, tailoring a suit/dress, theatre, restaurant, booking a vacation, and a health check-up are examples of products or services that can range from fully product-driven to fully service-driven.
Definitions
- Services: "Anything you can buy or sell but cannot be dropped on your foot" (Philip Kotler)
- Services (Fitzsimmons): "A service is a time-perishable, intangible Experience performed for a Customer acting in the Role of a Coproducer' (co-creator) (James Fitzsimmons)
- Service Firms: Service enterprises are organizations that facilitate the production and distribution of goods, support other firms in meeting their goals, and add value to our personal lives.
Examples and roles of service providers
- Financial Services: Financing, Leasing, Insurance
- Manufacturing Services: Finance, Accounting, Legal, R&D & Design
- Business Services: Consulting, Auditing, Advertising
- Infrastructure Services: Communications, Transportation, Utilities
- Distribution Services: Wholesaling, Retailing, Repairing
- Personal Services: Healthcare, Restaurants, Hotels
- Consumer Services (self-service): Self-service
- Government Services: Military, Education, Waste disposal, Judicial, Police & Fire Protection
Service Types
- Public vs private, profit vs not for profit
- Government: legal, educational, military
- Private: airlines, restaurants, insurance, etc.
Service vs Manufacturing
- Methods are similar, but manufacturing has additional challenges.
- Impact of simultaneous production and consumption on quality (e.g., haircut)
- Improving employee technical and customer interaction skills, as they often must do both
- Slower productivity gains compared to manufacturing (only about 1% per year)
Service Characteristics
- Intangible: Cannot be seen, felt, or experienced before purchase
- Perishable: Cannot be stored for later sale (cannot be inventoried)
- Inseparability: Cannot be separated from the provider; customers involved in delivery
- Heterogeneity: Quality depends on the provider. How each customer experiences is different.
Service Dominant Logic (SDL)
- Every economy is a service economy.
- Value is co-created by the company and the customer interacting with value propositions.
- Goods are viewed as exchange mechanisms for services.
Service Contextualization: The Process Matrix
- Classifies service types using interaction, customization, and labor intensity.
- Categorized as low/high regarding the degree of labor intensity and interaction/customization.
- Examples: Service factories (Airlines, Trucking, Hotels) vs Service shops (Hospitals, Auto repair, Other repair services)
- Examples: Mass service (Retailing, Wholesaling, Schools) vs Professional service (Doctors, Lawyers, Consultants, Accountants, Architects, Software development)
Service Package
- Supporting Facility: The physical resources that must be in place before a service can be sold (e.g., golf course).
- Explicit Services: Observable benefits; essential features (e.g., quality of a meal, waiter's attitude, departure time).
- Implicit Services: Psychological benefits; not easily observed (e.g., privacy of a bank, safety of a parking lot).
Service-product Bundle
- Core Goods: Tangible products (e.g., tailored suit)
- Core Service: Intangible service (e.g., room in a hotel)
- Peripheral Goods: Items supplementing the core service (e.g., coffee lounge, garment bag)
- Peripheral Services: Deferred payment, and other added services (e.g., airport shuttle, travel agency)
- Variations: customization aspects of a service (e.g., tailored suit)
Service Concept
- The service concept is a shared understanding of the service provided and received.
- It should include the organising idea (what?), service provided (how?), and service received (result?).
L2 Design and Development of Services
- Develop new products/services for existing and new markets.
- Improving quality, cost reduction, and meeting safety and ethical standards.
- Standardisation (e.g. ISO standards) and ongoing quality improvement.
- Product lifecycle consideration include intro-growth-mature-redesign or decline.
Service Delivery Process
- Performance standards vary greatly depending on the service being provided.
- Operational requirements much more complex than for physical goods due to variability, and the simultaneous production and consumption nature of service.
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