The document discusses the significance of service systems in marketing, highlighting the roles of processes, people, and physical evidence. It outlines concepts like servicescape and servuction systems, emphasizing how they work together to enhance the customer experience. Additionally, it explores different types of service encounters, the importance of value addition in service processes, and the distinction between high-contact and low-contact services.

1. SERVICES

2. Role of Process,
People& Physical
Evidence in
Services
Marketing
By
Prof Sandeep D Chaudhary

3. Concept of Service system,
Session Outline
01
Importance of Process in Services 03
Servicescape and Servuction system 02

4. Service System

5. Understanding
Service Systems
Definition:
A service system is an integrated and coordinated
set of processes that deliver value to customers.
Components:
1. People: Service employees and customers.
2. Processes: Steps involved in service delivery.
3. Technology: Tools and platforms that support
the service.

6. Service system in a
Restaurant

7. Servicescape System
& Components
Definition
Signs, Symbols & Artifacts
Ambient
Conditions
Spatial Layout
(Space and function)
The physical environment where a service process
occurs, influencing customer perceptions and
interactions.
Directives, logos, and branding
elements Visual
cues, branding elements, and physical
objects.
Lighting, temperature, noise.
Furniture arrangement, equipment
placement. Layout,
size, and functionality of the space

8. ambiance and layout
of a coffee shop

9. Servuction
System
Definition:
A model that highlights the interaction between visible
service elements and invisible support processes.
Components:
1. Visible Frontstage: Customer-facing elements like staff
and environment.
2. Invisible Backstage: Behind-the-scenes activities like
inventory management and order processing.

10. ambiance and layout
of a coffee shop

11. Key components
Elaborate on what you want to discuss.
Servicescape
1. Ambient conditions:
Temperature, lighting, noise
level, and scents.
2. Space and function: Layout,
size, and functionality of the
space.
3. Signs, symbols, and artifacts:
Visual cues, branding
elements, and physical
objects..
Servuction System
1. Servicescape: The physical
environment.
2. Contact personnel:
Employees who interact with
customers.
3. Other customers: Other
customers present in the
service environment.
4. Organization's systems:
Policies, procedures, and
technology that support the
service delivery.

12. Comparison
Elaborate on what you want to discuss.
Servicescape
1. Servicescape refers to the
physical environment of a
business
2. Space and function: Layout,
size, and functionality of the
space.
3. Signs, symbols, and artifacts:
Visual cues, branding
elements, and physical
objects..
Servuction System
1. Servuction is the process of
providing a service.
2. Contact personnel:
Employees who interact with
customers.
3. Other customers: Other
customers present in the
service environment.
4. Organization's systems:
Policies, procedures, and
technology that support the
service delivery.

13. Servuction system

14. Servicescape Examples
Starbucks Apple Store Disneyland
cozy, inviting atmosphere. use
of warm colors, comfortable seating, and
aroma of freshly
brewed coffee create a welcoming
servicescape that encourages customers
to stay and relax.
minimalist, sleek design. clean
lines, white walls, and well-
organized display tables contribute
to a premium and sophisticated
servicescape.
theme park's iconic castles, vibrant
colors, and attention to detail
create a magical and immersive
servicescape that transports visitors to a
fantasy world..

15. Servuction System Examples
Airline Restaurant Hotel
The servicescape includes the airport
terminal, aircraft interior, and in-flight
amenities. Contact personnel are the flight
attendants, pilots, and ground staff. Other
customers are the passengers on the
flight. The organization's systems include
the dining room (servicescape),
waitstaff (contact personnel), other
diners (other customers), and the
kitchen and management systems
(organization's systems).
The hotel's lobby, rooms, and amenities are
the servicescape. The front desk staff,
housekeeping, and concierge are the contact
personnel. Other guests are the other
customers. The hotel's reservation system,

16. “In summary, the servicescape and servuction
system work together to create a holistic
customer experience. A
well-designed servicescape can enhance the
overall service encounter, while the effective
functioning of the servuction system ensures a
seamless and satisfying experience for
customers.”
— Include a credit, citation, or supporting message

17. Service Blueprint: A Visual
Guide to Service Delivery
Meaning Key components
 a visual tool used to map out the
entire process of delivering a
service.
 provides a detailed view of the
interactions between customers,
front-line staff, and back-office
operations.
 organizations can identify
opportunities for improvement,
streamline processes, and
enhance the overall customer
experience.
Customer actions: The steps taken by the
customer during the service encounter.
Line of visibility: The boundary between
what the customer can see and what they
cannot. Front-
office actions: The activities performed by
front-line staff that are visible to the
customer. Back-office actions:
The activities performed by back-office
staff that are not visible to the customer.
Physical evidence: The tangible
elements of the service, such as products,
documents, or physical facilities.

18. Example of a
service blueprint
In this example, the customer's actions
include entering the restaurant,
ordering food, and consuming the
meal. The line of visibility separates the
customer's view from the back-of-
house operations. Front-office staff,
such as the waitstaff, interact directly
with the customer, while back-office
staff, like the chefs and kitchen staff,
prepare the food. Physical evidence
includes the menu, table setting, and
food itself.

19. A picture is worth
a thousand words

20. Mapping the Service
Process Horizontally
and Vertically
Service process mapping is an essential tool for
visualizing the steps involved in delivering a
service, and it can be done both horizontally and
vertically. These mappings help businesses
understand the flow of tasks, responsibilities,
and communication between different functions
or stakeholders.

21. Example 1: Hotel Check-in
Process (Horizontal)
Reservation
Department:
Front Office
Housekeeping Concierge
Elaborate on what you want to
discuss.
Elaborate on what you want to
discuss.
Elaborate on what you want to
discuss.
Elaborate on what you want to
discuss.
Guest Reservation Dept Front Office Housekeeping Concierge
→ → → →

22. Vertical Mapping
Vertical process mapping focuses on the levels
or roles involved in each step of the service,
particularly showing which employees, systems,
or back-end processes are responsible for each
task. It helps break down the process into what
happens at each level of responsibility within the
organization.

23. Example 2: Restaurant Service (Vertical)
Elaborate on what you want to discuss.
Customer actions:1
Arrival at the restaurant.
Ordering food from the menu.
Dining and providing feedback.
Frontstage (Visible to
Customer):
Host welcomes the guest and shows them
to their table.
Waiter takes the order and serves the food.
Manager checks on guest satisfaction.
Backstage (Not Visible to
Customer):
Kitchen staff prepares the food.
Inventory manager ensures the
availability of ingredients.
Cleaning staff maintains the
cleanliness of the dining area.
Support processes (IT systems,
supply chain, etc.):
The restaurant’s POS system records
the order and sends it to the kitchen.
The supplier ensures timely delivery of
fresh ingredients.
The HR department manages staff
scheduling.
Customer Actions: [Arrival Ordering Dining]
→ →
Frontstage: [Host Waiter Manager]
→ →
Backstage: [Chef Kitchen Staff Cleaning Staff]
→ →
Support Processes: [POS System Inventory HR]
→ →

24. Horizontal Mapping:
● Helps visualize the end-to-
end flow of service.
● Identifies bottlenecks
between departments.
● Improves cross-functional
collaboration.
Benefits of Horizontal & Vertical Mapping
Vertical Mapping:
● Helps identify roles and
responsibilities at each level.
● Provides insight into how visible
and invisible processes are
interlinked.
● Highlights backstage and
support activities that are critical
to smooth service delivery. 24

25. Conclusion
provides a comprehensive view of how services are
delivered,
1. who is responsible for
2. what, and
3. how different layers within an organization work 25

26. Variety in
Service
Process

27. Variety
In Services Marketing.
27

28. Variety in Service Process
It refers to the range of different options or ways a service
can be delivered to cater to diverse customer preferences,
demands, and needs.
different forms such as
● customization,
● flexible delivery methods, and
● multiple service channels.
28

29. Types of Variety in Service Process
Customization
Service providers
offer personalized
options for
customers based on
their preferences..
Multiple Delivery
Channels
Offering services
through different
platforms (online, in-
person, phone,
etc.)..
Flexible Timings or
Schedules
Allowing customers
to choose when they
receive the service..
29

30. 30
Restaurant Industry (Custom Menus and
Dining Options)
1. Menu Customization:
Restaurants may offer options
for customers to build their
own meals.
Example: Subway, customers
can choose their type of bread,
filling, sauces, and additional
toppings.
2. Service Styles:
● dine-in,
● takeaway,
● delivery, or drive-thru
options,

31. 31
Healthcare (Patient-Centric Options)
1. Consultation Options:
Patients can choose between
in-person consultations,
telemedicine (online
consultations), or
home visits.
2. Treatment Plans: based on
the patient’s condition,
preferences, and financial
situation standard
treatment or customized
treatment
(e.g., Apollo Hospitals providing
a variety of treatment
packages)..

32. 32
E-Commerce (Variety in Delivery Options)
1. Standard Delivery: Regular
shipping times.
2. Express Delivery: Faster
shipping for urgent
purchases.
3. Scheduled Delivery: Allowing
customers to choose a
specific time and date for
receiving packages.

33. 33
Banking Services
(Different Access Channels)
● Online Banking
● Mobile Banking Apps
● Branch Services
● ATMs

34. Value
addition in
Service
Process

35. Value Addition
In Services Marketing.
35

36. Value Addition in Service Process
● Definition: Enhancing a service to increase its value to customers, leading to higher
satisfaction and loyalty.
● Key Strategies:
Personalization: Tailoring services to individual customer needs.
Improving Quality: Reducing wait times, increasing reliability.
Technology Integration: Using AI, automation for efficient service delivery.
36

37. Restaurant Industry (Innovative Dining
Experience).
Interactive Menus:
digital menus that allow customers to
customize their meals by selecting ingredients,
calorie counts, and dietary preferences
(e.g., allergy filters).
Loyalty Programs:
Restaurants offer loyalty rewards
such as free meals, discounts, or special offers
for repeat customers, which enhance the
overall dining value.
Ambiance and Theme:
Restaurants like Hard Rock Café add value
through a unique ambiance, live music, and
memorabilia, making the dining experience
more than just about food.
37

38. Adding value in E-
Commerce?
Amazon
example.
38

39. E-commerce (Flexible Delivery Options and Support)
Same-Day Delivery
Premium services
like Amazon Prime
provide customers
with same-day or
next-day delivery,
adding convenience
and speed.
Easy Returns and
Customer Support
Amazon also offers
no-questions-asked
return policies and
24/7 customer
support, enhancing
the post-purchase
experience
Personalized
Recommendations
By analyzing customer
behavior, e-commerce
platforms suggest
products tailored to
individual preferences,
which adds
personalization and
convenience.
39

40. Why Value Addition is Important in Service Processes
40
Customer Loyalty
helps retain customers,
as they feel they are
getting more than
what they paid for.
Competitive
Advantage
help businesses
differentiate
themselves in a
crowded marketplace.
Customers are often
willing to pay more for
services that provide extra
benefits, which can boost
profitability.
Increased Revenue
delivers value beyond
the basic service
offering helps improve
brand image and trust.
Enhanced Reputation

41. Significance
of the People
Dimension in
Services
Marketing

42. Significance of the People Dimension in Services Marketing
● a crucial part of the extended marketing mix in services marketing
● people are often the face of the brand and play a central role in delivering, maintaining, and
enhancing service quality.
● The "people" element encompasses:
Employees: Frontline staff, support teams, management.
Customers: As co-producers of the service.
Other Stakeholders: Business partners, vendors, and others involved in delivering the
service..
42

43. Why People are Important in Services
Marketing
● Human Interaction
● Service Differentiation
● Customer Experience
● Trust and Relationships
● Co-Creation of Value
43

44. Concept of
Service
Encounter

45. Concept of Service Encounter
● refers to the moment of interaction between a customer and the service provider, where the
service is delivered, and the customer forms perceptions of the service quality.
● also known as the "moment of truth" because it is during these interactions that customers
assess the service provider's performance, professionalism, and overall experience..
● Service encounters can occur:
Face-to-face: Personal interaction with employees (e.g., a cashier at a store or a receptionist
at a hotel).
Remote: Through technology like websites, apps, or customer service hotlines (e.g., calling a
bank’s support center).
Self-service: Customer interaction with automated systems (e.g., ATMs, kiosks, or online
portals).
45

46. Types of Service Encounters
Remote Encounters
● occur when there is no
direct face-to-face
interaction.
● For example, customers
using an airline's
mobile app to book
flights or interact with
chatbots.
● focus more on the
system's efficiency and
reliability.
Technology-Mediated
Encounters
● involve interaction
through technology,
such as phone calls or
live chats with customer
service representatives.
● The tone of voice,
responsiveness, and
problem-solving
abilities
Face-to-Face Encounters
● the most personal and
direct forms of service
encounters, where the
customer physically
interacts with the service
provider.
● For instance, visiting a
doctor, eating at a
restaurant, or staying at a
hotel involves face-to-face
service encounters.
● Employee behavior and
service delivery 46

47. High-Contact
and Low-Contact
Services

48. High-Contact Services
1. the level of customer interaction during the service
process distinguishes between high-contact and low-
contact services.
2. In high-contact services, there is extensive interaction
between the customer and the service provider.
3. Characteristics:
● Face-to-face interaction with service personnel.
● Physical presence of the customer is necessary.
● High level of customization based on individual needs.
● Personal relationships between customer and service
provider.
● Longer service durations with higher complexity.
48

49. Examples of High-Contact Services:
● Healthcare Services (Hospitals, Clinics)
Example: A patient visiting Apollo Hospitals
for a medical consultation.
● Hotels (Hospitality Industry)
Example: A guest staying at the Taj Hotel will
have a high level of contact with restaurant
staff
● Beauty and Spa Services
Example: Visiting a VLCC Spa requires direct
personal attention from therapists
● Education (Classroom Teaching)
Example: In a traditional classroom
environment at an IIM (Indian Institute of
Management)
49

50. Low-Contact Services
1. In low-contact services, there is minimal or no direct
interaction between the customer and the service
provider.
2. services are typically delivered through technology or
automated processes, with the customer often receiving
the service without needing to be physically present or
interact with staff..
3. Characteristics:
● Limited or no face-to-face interaction.
● Customer’s physical presence is not necessary.
● Service is often delivered via technology or automation.
● Less customization and more standardized processes.
● Quicker service times, often self-service or remote.
50

51. Examples of Low-Contact Services:
● Online Banking
Example: HDFC Bank provides mobile banking
services.
● E-Commerce
Example: Shopping on Amazon India or Flipkart
allows customers to browse and purchase products
without needing assistance from any human staff.
● Self-Service Gas Stations
Example: At a self-service petrol station in India,
customers can fill their vehicles and pay using a
mobile payment app like Paytm
● Online Streaming Services
Example: A customer can subscribe to Netflix, select
their shows, and watch them without ever interacting
with customer support or service staff.
51

52. Comparison of High-Contact and Low-Contact Services
52
Aspect High-Contact Services Low-Contact Services
Customer
Interaction
Extensive face-to-face interaction with
staff
Minimal or no face-to-face interaction
Customer
Presence
Customer is physically present Customer is usually not present
Customization High level of personalization Limited personalization, more
standardized
Service
Delivery
Personal delivery by service providers Automated or self-service processes
Examples Healthcare, Hotels, Beauty services,
Education
Online banking, E-commerce, Online
streaming, Self-service petrol stations

53. Thanks!
53