This module discuss Service Operations Management Selected Issues, New Service Development, Service Blueprint, Dimension of Service Quality, Managing Service Experiences, Front-office/Back-office Coordination, Analyzing Process, Service Quality, Gaps in Service Quality, Developing a Culture of Service Quality, Service Recovery, Yield Management, Waiting Time Management, Service Encounter, Service Marketing Triangle, Way to use Service Marketing Triangle, Internal Marketing, External Marketing and Interactive Marketing.

1. Module IV
Service Management Process
Prepared By
Jitendra Patel.
Assistant Professor ,
PIMR, Indore
10/5/2020 Jitendra Patel, Assistant Professor, PIMR 1

2. Module IV
1 Service Management
• 1.1 Service Operations Management Selected
Issues
• 1.2 New Service Development
• 1.2.1 Service Blueprint
• 1.2.2 Dimension of Service Quality
• 1.2.3 Managing Service Experiences
• 1.2.4 Front-office/Back-office Coordination
• 1.2.5 Analyzing Process
10/5/2020 2Jitendra Patel, Assistant Professor, PIMR

3. Module IV
• 2.3 Service Quality
• 2.3.1 Gaps in Service Quality
• 2.3.2 Developing a Culture of Service Quality
• 2.4 Service Recovery
• 2.5 Yield Management
• 2.6 Waiting Time Management
• 2.7 Service Encounter
• 3. Service Marketing Triangle
• 3.1 Way to use Service Marketing Triangle
• 3.2 Internal Marketing
• 3.3 External Marketing
• 3.4 Interactive Marketing
10/5/2020 3Jitendra Patel, Assistant Professor, PIMR

4. Service Management
10/5/2020 4Jitendra Patel, Assistant Professor, PIMR

5. Fundamentally, there are no differences
between service and manufacturing
operations! Both are concerned with:
• Efficiency
• Effectiveness
• Quality
• Cost
10/5/2020 5Jitendra Patel, Assistant Professor, PIMR

6. Effectiveness
• Right prescription
• Right advice
• Service availability
Efficiency
• No. of servers
• Use of resources
Quality
• Training
• Error prevention
• Continuous Improvement
Cost
• Inventory management
• Tradeoffs
• Purchasing
10/5/2020 6Jitendra Patel, Assistant Professor, PIMR

7. Service Operations Management
Selected Issues
• New service development
• Managing service experiences
• Front-office/Back-office
• Analyzing processes
• Service quality
• Yield management
• Inventory management
• Waiting time management
10/5/2020 7Jitendra Patel, Assistant Professor, PIMR

8. New Service Development
• Service Blueprinting
Focus on moments of truth
• Servicescapes
• Utility-based Service Design
Perceived utility to customer
• Relative importance of Dimensions of
Service Quality
10/5/2020 8Jitendra Patel, Assistant Professor, PIMR

9. Service blueprint
• The blueprint is an operational tool that
describes the nature and the characteristics of
the service interaction in enough detail to
verify, implement and maintain it.
10/5/2020 9Jitendra Patel, Assistant Professor, PIMR

10. Service Blueprinting
Source: Metters, King-Metters, Pullman, & Walton, p. 84
10/5/2020 10Jitendra Patel, Assistant Professor, PIMR

11. Dimensions of Service Quality
• Reliability
• Responsiveness
• Assurance
• Empathy
• Tangibles
Parasuraman, et al., 1985
ACSI Site:
http://www.theacsi.org/index.php?option=com_content&task=view&id=15&Itemid=172
10/5/2020 11Jitendra Patel, Assistant Professor, PIMR

12. Managing Service Experiences
• Customer Engagement
• Context
• Time
• Service Blueprinting
Focus on moments of truth
10/5/2020 12Jitendra Patel, Assistant Professor, PIMR

13. Front-office/Back-office
• Front-office work requires customer presence.
• Back-office work does not require customer
presence.
• Decoupling: separating work into high-
contact/low-contact jobs.
Ultimate = outsourcing/offshoring
10/5/2020 13Jitendra Patel, Assistant Professor, PIMR

14. Analyzing Processes
• Process flow diagrams (flow charts)
– Process communication
– Focusing mgt. attention on customer
– Determining what to work on
• Process Simulation
10/5/2020 14Jitendra Patel, Assistant Professor, PIMR

15. Service Quality
• Defining service quality is more difficult than
defining manufacturing quality.
– Expectation vs Perception
– Expectation vs Performance
10/5/2020 15Jitendra Patel, Assistant Professor, PIMR

16. Gaps in Service Quality
Source: Metters, King-Metters, Pullman, & Walton, p. 18610/5/2020 16Jitendra Patel, Assistant Professor, PIMR

17. Developing a Culture of
Service Quality
• Hire the right people.
• Educate and train them well.
• Allow them to fix anything.
• Recognize and reward them regularly.
• Tell them everything, every day.
10/5/2020 17Jitendra Patel, Assistant Professor, PIMR

18. Service Recovery
• Measure the costs
• Listen closely for complaints
• Anticipate needs for recovery
• Act fast
• Train employees
• Empower front line
• Close the loop
10/5/2020 18Jitendra Patel, Assistant Professor, PIMR

19. Yield Management
Purpose is to sell the right capacity to the right
customer at the right price.
• Overbooking
• Differential pricing
• Capacity allocation
10/5/2020 19Jitendra Patel, Assistant Professor, PIMR

20. Waiting Time Management
• Waiting lines are pervasive in services
• The problem is important
• Lack of management intuition about waiting
lines
15/30 Waiting Time Rule in hospital ER
10/5/2020 20Jitendra Patel, Assistant Professor, PIMR

21. Service encounter
A service encounter is a period of time during
which customer interact directly with a
service. It is also called as "Moment of Truth“
Service encounters are transactional interactions
in which one person (e.g., a vendor, office
clerk, travel agent) provides a service or good
(e.g., a product, an appointment, airline
tickets) to another person.
10/5/2020 21Jitendra Patel, Assistant Professor, PIMR

22. 10/5/2020 22Jitendra Patel, Assistant Professor, PIMR

23. 10/5/2020 23Jitendra Patel, Assistant Professor, PIMR

24. 10/5/2020 24Jitendra Patel, Assistant Professor, PIMR

25. 10/5/2020 25Jitendra Patel, Assistant Professor, PIMR

26. Reference
1. Christopher H. Lovelock, Chatterjeee (2010.), “Services Marketing – People, Technology,
Strategy”, 7th Edition, Pearson Education Asia, New Delhi.
2. Fitzsimmons & Fitzsimmons (1998). Service Management 2ed., Irwin/McGraw-Hill.
3. Metters, King-Metters, Pullman, Walton (2006). Successful Service Operations Management
2ed., Thomson.
4. Nelson. (2005). “Baldrige—Just What the Doctor Ordered.” Quality Progress.
5. Philip Kotler, Kelvin Lane, Keller, Abraham Koshi, Mitihlesh Jha.(2011), Principles of Marketing
Management, South Asian Perspective, Pearson Education, 14th Edition.
6. Plaehn, T. (2018), “What Is a Service Marketing Triangle?”, retrieved from
https://yourbusiness.azcentral.com/service-marketing-triangle-14670.html, last assessed on 20
Aug 2019.
7. Rao (2009),” Services Marketing”, 2nd edition, Pearson Education Asia, New Delhi.
8. S. M. Jha. (2011), “Services Marketing”, Himalaya Publishing House, 7th Edition, New Delhi.
9. Sower, Duffy, Kohers, et al. (2001). “The Dimensions of Service Quality for Hospitals…” Health
Care Management Review.
10. V. A. Zeithamal and M. J. Bitner (2008), “Service Marketing: Integrating Customer across the
Firm”, Tata McGraw Hill, New Delhi.
10/5/2020 Jitendra Patel, Assistant Professor, PIMR 26

27. 10/5/2020 Jitendra Patel, Assistant Professor, PIMR 27