2024 Week 2 Service Profiling PDF

EBUS634: Service Operations Management Week 2 Service Profiling Dr Bruce Pinnington  Service Profiling Reprise on the 4Vs Volume-variety matrix for profiling services (Silvestro) 5-Gaps in perceptions (Parasuraman et al) Service trade-offs (Frei) Service profiling VO...

EBUS634: Service Operations Management Week 2 Service Profiling Dr Bruce Pinnington  Service Profiling Reprise on the 4Vs Volume-variety matrix for profiling services (Silvestro) 5-Gaps in perceptions (Parasuraman et al) Service trade-offs (Frei) Service profiling VOLUME-VARIETY MATRIX  Volume – Variety Matrix (services) High: Contact time Customisation Professional Discretion service Capability focus Front office oriented Service shop VARIETY Low: Contact time Mass Customisation service Discretion Product focus Back office oriented Low High Customers processed by a typical unit per day VOLUME Silvestro et al (1992, 1999) Service profiling THE 4 V’S PROFILE 4Vs Typology Low Volume High High High Variety Low High Variation in demand Low High Visibility Low  4Vs (Variety) Process Variety Runners o standard activities, high volume operations relatively predictable. Efficient to automate. Repeaters o standard activities, more complex than runners, occur less frequently. Absorb more resources, more skilled, less efficient to automate. Strangers o non-standard activities, one-off projects, difficult to forecast, least well defined resource needs. Requires flexibility in the operation. 4Vs (Variety cont.): Runners, Repeaters and Strangers Service Runner Repeater Stranger Car Servicing Oil change Body panel change Intermittent electrical Regular service Cambelt renewal fault Brake pad change Suspension fault Product recall International Passenger check-in Rebooking cancelled VIP charter booking flights Baggage handling flight In-flight service Serious complaints Hospital services Patient records Surgery with Innovative surgical Routine operations complications procedure Cleaning services Difficult or distressed Catering services patient handling  4Vs (Variation) Five Types of Variability 1. Arrival variability o customers show up at their own schedule 2. Request variability o customers may ask for things outside the range of what’s allowed in the service script 3. Capability variability o customers may not know how to engage with the service 4. Effort variability o customers may not want to engage with the service 5. Subjective preference variability o people’s opinions vary about what constitutes a good service 4Vs Visibility: Front vs Back Office Back Office: Front Office: Those activities that can be Those activities that we wish to, physically or temporally, or have to, perform in the separated from the customer presence of the customer Back Office Front Office Location Operations may be near low-cost Operations must be near the customer resources Process Design Focus on efficiency, economies of scale Focus on customer needs; customer as and smooth processes co-producer Setting Design Appealing to employees Appealing to customers and employees Strategy Low-cost Differentiation 4V Typology Restaurant Sector Restaurant Fast Food Low Volume High High High Variety Low High Variation in demand Low High Visibility Low Exercise - Service Profiling Use the 4 V’s model to draw a rough profile line comparing: 1. City explorer tour bus (fixed route, every 30 mins) 2. Fab-4 (Beatles) taxi tour Service profiling 5-GAPS PERCEPTION MODEL Word of mouth Personal needs Past experience Consumer Expected Service GAP5 Perceived Service Marketer GAP4 Ext comms to Service Delivery GAP1 consumers GAP3 Translation of perceptions GAP2 Service Management of Gap perceptions Model Parasurman et al, 1988 The service gaps GAP1: consumer expectations vs management perceptions o Managers do not always know what features consumers value the most in high quality services GAP2: service quality spec vs management perceptions o Discrepancy between management perceptions of customer expectations and those actually established for the service GAP3: service quality spec vs service delivery achieved o Difference between required and achieved service quality GAP4: reported service quality vs service delivery achieved o External communication of service will affect customers perceptions of the service quality GAP5: consumer expectations vs consumer perceptions o Quality is judged through consumer perceptions, relative to their expectations of that service In the News Guardian.com 2023 awards for worst customer service go to:  Barclays  E-On get a special mention Why do some of the examples happen? Are they ever excusable? TEDx Video TEDx John Boccuzzi Exceptional Customer Service Consider this video against the 5-Gaps model … which gaps are important in delivering excellent service? https://www.youtube.com/watch?v=GH1TXfQSwUQ Service Trade-offs High Low-cost Quality of Service Experience accommodation Classic Uncompromised Accommodation reduction Classic Reduction Low Low Cost to Serve High Source: Frei, 2006. Breaking the trade-off between efficiency and service, HBR Service trade-offs http://www.youtube.com/watch?v=-eREiQhBDIk (I want breakfast; stop at 1 min 50!) (Source) Which of Frei’s strategies is the restaurant pursuing? Important reading Key papers  Silvestro, R. (1999). Positioning services along the volume-variety diagonal: the contingencies of service design, control and improvement. International Journal of Operations & Production Management, 19(4), 399-421.  Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A Conceptual Model of Service Quality and Its Implications for Future Research. Journal of Marketing, 49(4), 41-50.  Frei, F. X. (2006). "Breaking the trade-off between efficiency and service." Harvard Business Review 84(11): 92. Course texts (books)  Johnston, R., Clark, G. and Shulver, M. (2012). Service Operations Management: Improving Service Delivery. 4th Ed. Pearson.  Gemmel, P., Van Looy, B. and Van Dierdonck, R. (2013) Service Management: An Integrated Approach. 3rd Ed. Pearson Contact name: Dr Bruce Pinnington Email: [email protected]