Service Design Principles Overview
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Questions and Answers

What is the primary purpose of blueprinting services?

  • It serves as an illustration of how services are rendered. (correct)
  • It is a marketing tool for promoting service innovations.
  • It focuses on employee training and performance assessment.
  • It is a method for analyzing customer demographics.

Which of the following is an example of Service Innovation Around Customer (SIAC)?

  • Facial Recognition
  • Digital Banking (correct)
  • Energy-producing roads
  • Plastic blocks for infrastructure

What is the main function of context interviews in the service design process?

  • To gather quantitative data for service analysis.
  • To evaluate competitor service offerings.
  • To document the costs associated with service delivery.
  • To conduct interviews in the natural environment where the service occurs. (correct)

What does an Affinity Diagram primarily help to accomplish?

<p>It assists in organizing and gathering diverse information. (C)</p> Signup and view all the answers

What is emphasized by Empathy Probes in the design process?

<p>What users are thinking and feeling. (C)</p> Signup and view all the answers

Which method is primarily used to generate ideas from a group of people?

<p>Brainstorming (D)</p> Signup and view all the answers

What role do Character Profiles play in service design?

<p>They provide patterns or trends about service users. (D)</p> Signup and view all the answers

What is the primary aim of Compatibility Management?

<p>To manage interactions and space requirements among market segments (D)</p> Signup and view all the answers

Which of the following best describes Service Failure?

<p>Service rendered not meeting the expectations or standards of a guest (D)</p> Signup and view all the answers

What is a key aspect of Service Recovery?

<p>Responding to service failure to enhance guest experience (A)</p> Signup and view all the answers

Which strategy aims to help organizations understand why guests leave?

<p>Learning from Lost Opportunities which are Guests (A)</p> Signup and view all the answers

What is the suggested initial response to service failures?

<p>A positive immediate response to the customer's request (C)</p> Signup and view all the answers

What is characterized by periodic increases and decreases in demand levels?

<p>Predictable cycles (B)</p> Signup and view all the answers

What is a primary challenge for managers in service organizations regarding demand?

<p>Demand exceeds optimum capacity (B)</p> Signup and view all the answers

Which option is NOT a strategy for modifying demand to match existing capacity?

<p>Increase prices during peak hours (A)</p> Signup and view all the answers

What can be a consequence of stretching employees' capacity during peak times?

<p>Higher employee fatigue leading to poor service (B)</p> Signup and view all the answers

Which strategy involves enhancing an organization's ability to meet peaks in customer demand?

<p>Shift capacity (B)</p> Signup and view all the answers

Which of the following is an example of random demand fluctuations?

<p>Unpredictable events affecting service usage (B)</p> Signup and view all the answers

What is emphasized as a vital component in the delivery of services among organizations?

<p>Equipment (B)</p> Signup and view all the answers

Which strategy is directed toward managing capacity in service organizations?

<p>Increase capacity temporarily (D)</p> Signup and view all the answers

What refers to resources or assets used to produce and deliver services?

<p>Productive service capacity (B)</p> Signup and view all the answers

What option does not belong to strategies for adjusting capacity to meet demand?

<p>Increase marketing efforts (C)</p> Signup and view all the answers

What is the purpose of ethnographic user research in service design?

<p>To support a deeper understanding of design issues (A)</p> Signup and view all the answers

Which of the following best describes the term 'experience prototype'?

<p>A simulation of service to test design ideas (C)</p> Signup and view all the answers

What is the main objective of using personas in design?

<p>To develop fictional characters that serve as archetypes (B)</p> Signup and view all the answers

What is a key role of observation in user research?

<p>To identify problems during user interactions (D)</p> Signup and view all the answers

How does shadowing differ from other research methods?

<p>The researcher only observes without interference (B)</p> Signup and view all the answers

What is a primary reason organizations undertake redesigning of their service processes?

<p>To address a rising volume of communication exchanges (C)</p> Signup and view all the answers

Which action is commonly taken when organizations redesign their service process?

<p>Reviewing the existing service design (C)</p> Signup and view all the answers

What defines a self-service service setting?

<p>Customers perform most transactions independently (C)</p> Signup and view all the answers

What is the outcome of using scenarios in service design?

<p>They visualize user service interactions (D)</p> Signup and view all the answers

What is yield management primarily used for in organizations?

<p>To determine the best price, customer, and capacity combination (A)</p> Signup and view all the answers

Which formula represents yield in yield management?

<p>Yield = Actual Revenue / Potential Revenue (A)</p> Signup and view all the answers

What is one of the major risks associated with yield management?

<p>Loss of competitive focus (C)</p> Signup and view all the answers

Which strategy is NOT suggested for dealing with queuing issues?

<p>Increase waiting time unpredictability (A)</p> Signup and view all the answers

In the context of waiting in line, which of the following statements is true?

<p>Anxiety makes the wait seem longer (D)</p> Signup and view all the answers

Which of the following types of queues involves having multiple servers accepting customers simultaneously?

<p>Parallel Lines to Multiple Servers (D)</p> Signup and view all the answers

Which psychological factor leads customers to perceive waiting time as longer?

<p>Unexplained waits (D)</p> Signup and view all the answers

What effect does physically uncomfortable waiting have on customer perception?

<p>Makes the wait feel longer (D)</p> Signup and view all the answers

Which of the following strategies aims to shorten transaction time in queues?

<p>Redesigning the service process (C)</p> Signup and view all the answers

In what kind of queue system do customers take a number instead of waiting in line directly?

<p>Take a Number (B)</p> Signup and view all the answers

Flashcards

Service Innovation Around Customer (SIAC)

A method of service innovation that redefines or alters the customer's role in the service process. Examples include digital banking and 'try before you buy' programs.

Innovation Through Solution (ITS)

Service innovation that involves providing solutions, using traditional products in new ways. Example, facial recognition, energy producing roads.

Service Innovation Through Interconnectivity (SITI)

Service innovation focusing on how equipment communicates with advancements in technology. Example: robots and AI chatbots.

Blueprinting Services

A visual representation of how services are delivered, showing implementation, and interaction between elements within a service.

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Affinity Diagram

A tool for organizing and analyzing a large amount of data to identify relationships and patterns.

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Contextual Interviews

Interviews conducted in a service's natural environment to understand the user experience.

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User Journey Map

A visual representation (diagram, images, quotes) of a user's experience through a service.

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Compatibility Management

Managing customer interactions and space requirements for different market segments to prevent conflict and maintain satisfaction.

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Customer Flight

When a customer chooses not to return to a business due to dissatisfaction or negative experiences.

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Service Failure

When the provided service does not meet a customer's expectations or standards, leading to dissatisfaction.

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Service Recovery

An organization's response to service failure, aiming to improve the customer experience and maintain satisfaction.

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Service Fail-Safe

Proactive measures to prevent service failures and ensure customer satisfaction from the start.

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Ethnographic User Research

A research method used by service designers to deeply understand the challenges users face. It involves observing users in their natural environment to gain insights into their behaviors, needs, and frustrations.

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Experience Prototype

A simulation of a service that allows designers to test new service ideas or specific touchpoints. This helps identify potential issues and refine the design before implementation.

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Focus Group

A group of carefully selected individuals who participate in a discussion about a specific topic. This method helps gather diverse perspectives and opinions.

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Immersion (Workshop)

A research technique also known as Empathic Research or Role-Playing. Participants immerse themselves in the user's experience to gain a deeper understanding of their perspective.

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Observation

A research method used to identify problems users encounter while interacting with a product. Observing user behavior helps understand their challenges and needs.

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Personas

Fictional characters created as archetypes that represent different user types. They help designers understand the needs and goals of their target audience.

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Prototyping

A tool used to examine the behavior and performance of a new design before it goes into production. It allows designers to test and refine the design iteratively.

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Scenarios

Hypothetical stories that visualize how users will interact with a service. They help designers understand user journeys and potential scenarios.

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Service Prototype

A simulation tool to test the service design by observing the interaction between the user and the prototype. It allows designers to identify potential issues and refine the design.

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Yield Management

A strategy to optimize revenue by balancing price, customer demand, and available capacity. It aims to find the most profitable combination.

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Actual Revenue

The income generated from the actual number of customers served at the average price paid.

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Potential Revenue

The maximum revenue achievable if all available capacity is utilized at the highest possible price.

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Waiting Line

A queue formed when the demand for a service exceeds the available capacity to serve it.

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Strategies for Queuing Issues

Methods to manage and improve waiting experiences, such as auditing processes, implementing reservations, and differentiating customers.

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Unoccupied Time

Time spent waiting without something to actively do feels longer than time spent with an activity.

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Pre-process Wait

The time spent waiting before the service begins feels longer than the time spent during the service itself.

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Anxiety and Waiting

Feeling stressed or anxious makes waiting seem longer.

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Unexplained Wait

Waiting without knowing the reason for the delay feels longer than waiting with a clear explanation.

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Fair vs. Unfair Wait

Waiting that feels unfair, such as uneven service or preferential treatment, feels much longer than a fair wait.

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Demand and Capacity in Services

The balance between the number of customers wanting a service (demand) and the organization's ability to provide it (capacity).

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Excess Demand

When more customers want a service than the organization can provide. This leads to long wait times, dissatisfaction, and potential lost customers.

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Demand Exceeds Optimum Capacity

When demand exceeds the organization's ideal level of service delivery. This can lead to quality issues, even though all customers might be served right away.

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Balanced Demand and Supply

When the number of customers wanting a service matches the organization's ability to provide it, leading to optimal service quality and efficiency.

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Predictable Demand Cycles

Regular patterns in customer demand, often related to time of day, week, month, or year.

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Random Demand Fluctuations

Unpredictable changes in customer demand, making it difficult to plan for.

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Demand Patterns by Market Segment

Identifying customer groups (like demographics or preferences) and understanding their specific demand patterns.

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Stretching Capacity Levels

Temporarily increasing an organization's ability to provide service, often by pushing employees to work harder during peak periods.

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Strategies to Match Demand and Capacity

Various approaches for ensuring a balance between customer demand and an organization's ability to provide service.

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Productive Service Capacity

The resources (people, equipment, facilities) an organization uses to provide services.

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Study Notes

Service Design

  • Design is often associated with the physical structure or model of products to improve efficiency and value.
  • The term also applies to services and procedures to provide value to clients and increase revenue.
  • Design helps businesses justify premium prices, introduce new products in competitive markets, deter competitors, please customers, streamline processes, motivate staff, and implement innovative ideas.
  • Service innovation is crucial in industries like tourism and hospitality, and the intangible and co-created nature of services makes them complex and dynamic.

Service Design Principles

  • Holistic design considers environmental impact on service delivery.
  • Co-creation involves incorporating stakeholder input to improve service design.
  • User-centered design prioritizes customer expectations.
  • Sequencing describes how service actions combine to create a product or service.
  • Visual evidence of service quality creates customer expectations.
  • Service innovation can either improve existing services or redefine customer roles. Examples include digital banking, co-creation, and trying products before commitment.

Service Blueprinting

  • Blueprinting illustrates service delivery, showing interactions and activities.
  • It serves as an implementation plan, depicting interactions between departments or elements.
  • A blueprint diagram visually depicts all service elements and processes.
  • Decision points and conflict zones are recognized.
  • Standards for adjustments are set. Visual aids help explain interaction between people and technology/steps.

Service Process Tools and Methods

  • Affinity diagrams organize information from various data sources.
  • Brainstorming generates ideas from a group of people.
  • Character profiles give patterns or trends about service users.
  • Contextual interviews involve interviewing in the natural service environment.
  • User journey maps illustrate the user's experience through a service.
  • Cultural probes or user diaries document information over a longer period.
  • Empathy probes understand user thoughts and feelings and how they affect service design.
  • Ethnographic user research guides understanding of design issues.
  • Experience prototypes offer service simulations.
  • Focus groups allow for discussion among selected people about a topic.
  • Immersion workshops facilitate empathizing with users.
  • Observation helps identify problems with product usage.
  • Personas create fictional characters (not stereotypes) to represent target user groups.
  • Prototyping designs enable evaluation of user behavior before launch. Some examples include sketch diagrams, storyboarding, and physical models.

Balancing Demand and Capacity

  • Service organizations must account for factors affecting demand and capacity. Potential factors include: excess demand, capacity, and predictable/unpredictable demand.
  • Conditions that challenge managers can include excess demand, optimal capacity issues, and supply-demand imbalance.
  • Strategies to improve service capacity include temporarily increasing personnel, facilities, and equipment, using part-time staff, cross-training staff, outsourcing activities, and renting/sharing facilities.
  • Service organizations can adjust resource use by scheduling downtime during slow periods.

Waiting Lines and Queuing Systems

  • Waiting times occur in customer interactions that exceed the system's processing pace.
  • Effective strategies for dealing with queuing issues include auditing operational processes, implementing reservation systems, differentiating customer needs/urgency, making waiting time more pleasurable to improve customer experiences, and improving the service process to shorten wait times.
  • Several queue types can be used depending on service arrangement such as single line, parallel lines, designated lines, waiting list, and numbering systems to organize customer attention.

Service Co-Creation

  • Value co-creation involves collaborative efforts between organizations and customers to create service that customers desire.
  • Customers can play a role in delivering their service, providing feedback, and contributing to service quality. Sometimes they act as competitors (by offering self-service options).
  • Self-service technologies allow customers greater control and convenience.

Service Failure & Recovery

  • Service failure occurs when service doesn't meet customer expectations. Service recovery strategies, such as identifying failures, understanding customer complaints, and learning from experiences and solutions, can improve service quality.
  • Organizations manage this with urgent monitoring and systematics, as well as creating service recovery plans.

Measuring and Improving Service Quality

  • Various methods, like TQM, ISO, six sigma, and the Malcolm Baldrige National Quality Award, can be used to assess and improve service quality.
  • Customer feedback (and performance appraisals) are crucial to identify customer needs and make continuous improvements.
  • Defining service productivity focuses on output per input/resource use. More customer-oriented organizations focus on customer needs, wants, satisfaction, and quality.
  • Using technology, training, customer service strategies, and efficient processes can improve service productivity. Outsourcing may be helpful here.

Service Leadership

  • Service excellence necessitates a comparative understanding of competitor actions.
  • Service firms may categorize themselves as fourth class (barely meeting minimal compliance requirements), third class (adhering to standard operating procedures), second class (focus on service and quality), and first class (leading in innovation and customer focus).

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Description

Explore the fundamental principles of service design, which enhance efficiency and value in service delivery. This quiz covers concepts like co-creation, user-centered design, and the importance of holistic approaches in designing services. Understand how these principles apply to industries like tourism and hospitality.

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