Chapter 4

The Service

Concept

• Shostack’s Atomistic Model

• Parasuraman et al.’s Model

• Bateson’s Model

SHOSTACK’S ATOMISTIC

MODEL

• Definition:

- Shostack’s molecular model is one of the earliest models that discussed on the product and service offering.

- Shostack argues that, as in chemical formulations, a change in one element may completely change the nature of the entity.

- Shostack’s model is a metaphorical analogy to help marketers to visualize and manage (what she termed) “total market entity”.

• This reflects the real situation in an example for

developing a new degree program.

• When essential evidence changes − for example, if a

degree changes its offering mode from face-to-face to

online – this will affect the offer of the whole program in

term of budget and development time and may delay

the launch of the new program

• Shostack wants to determine which service elements

are tangible and which are intangible in order to help

formulate product policy and communication program.

Key

Tangible Elements

Intangible Elements Marketing Positioning

Figure:

Shostack’s Molecular

Model: Passenger

Airline Service

Distribution

Pre- &

Postflight

Service

Service

Frequency

In-flight

Service

Food &

Drink

Vehicle

Transport

Price

Source: Shostack

Service Blueprinting

• A customer-focused approach for service

innovation and service improvement

• Service blueprints are customer-focused, allowing

firms to visualize the service processes, points of

customer contact, and the physical evidence

associated with their services from their customers’

perspective.

• Blueprints also illuminate and connect the

underlying support processes throughout the

organization that drive and support customer-

focused service execution

Components of Service

Blueprints

• There are five components of a typical

service blueprint

1. Customer

Actions

2. Onstage/Visible Contact Employee

Actions

3. Backstage/Invisible Contact Employee

Actions

4. Support Processes

5. Physical Evidence

• When building a blueprint, the first step is to clearly articulate the service process or sub-process to be blueprinted.

• Because companies often modify service processes to fit the needs and wants of different target customers, it is important to specify which segment of customers is the focus of the blueprint.

• Once this has been decided, the actions of customers should be defined first because this component serves as the foundation for all other elements of the blueprint.

• After that has been established, the contact employee actions, both onstage and backstage, can be defined, followed by support processes.

• At this point, links can be added that connect the customer to contact employee activities and to needed support functions.

• Physical evidence is typically the last component added to the blueprint.

• Blueprints are ideally developed by cross-functional teams, possibly even involving customers.

Real Estate

Services Blueprint

Parasuraman et al.’s Model or

SERVQUAL Model

• The SERVQUAL service quality model was developed

by a group of American authors, 'Parsu'

Parasuraman, Valarie Zeithaml and Len Berry, in

1985.

• It highlights the main components of high quality

service.

• The SERVQUAL authors originally identified ten

elements of service quality, but in later work, these

were collapsed into five factors - reliability, assurance,

tangibles, empathy and responsiveness - that create

the acronym RATER.

• Businesses using SERVQUAL to measure and manage service quality deploy a questionnaire that measures both the customer expectations of service quality in terms of these five dimensions, and their perceptions of the service they receive.

• When customer expectations are greater than their perceptions of received delivery, service quality is deemed low.

• In additional to being a measurement model, SERVQUAL is also a management model.

• The SERVQUAL authors identified five gaps that may cause customers to experience poor service quality.

• Ability to perform the promised service dependably and accurately

• Ability to provide what was promised

• e.g. of customer questions: Does my lawyer call back when promised?

• e.g. of customer questions: Is my Astro Bill free from error?

1) Reliability

DIMENSION OF SERVQUAL:

Reliability, Assurance, Tangibles, Empathy And Responsiveness (RATER)

Competence: Possession of skills and knowledge required to

perform the service

e.g. of customer questions: Is my travel agent able to obtain the information I need when I

call?

e.g. of customer questions: Does the surgeon appear to be

competent

Credibility: Trustworthiness, believability, honesty of the

service provider

e.g. of customer questions: Does the hospital have a good

reputation?

e.g. of customer questions: Does the repair firm guarantee its

work?

Security: Freedom from danger, risk or doubt

e.g. of customer questions: Is it safe for me to use the bank ATM

machine at night?

e.g. of customer questions: Is my credit card protected against

unauthorized use

2) Assurance: Including competence, courtesy, credibility and security

Knowledge and courtesy of employees and ability to convey trust

• Appearance of physical facilities, equipment, personnel, communication materials

• e.g. of customer questions: Are the hotel’s facilities attractive?

• e.g. of customer questions: Are the hospital staff uniform attractive to the patient?

• e.g. of customer questions: Is my bank statement easy to understand?

3) Tangibles

4) Empathy: Including access, communication, understanding the customer

Access: Approachability and ease of contact

e.g. of customer questions: How easy is it for me to talk to a

supervisor when I have a problem?

e.g. of customer questions: Does the airline have a 24 hour toll-free phone

number?

Communication: Listening to customers and keeping them

informed in a language they can understand

e.g. of customer questions: When I have a complaint, is the manager

willing to listen to me?

e.g. of customer questions: Does my doctor avoid using technical jargon?

Understanding the customer: Making the effort to know customers and

their needs

e.g. of customer questions: Does someone in the restaurant recognize

me as regular customer?

e.g. of customer questions: Does my doctor willing to accommodate my

schedule?

• Willingness to help customers and provide prompt service

• e.g. of customer questions: when there is a problem, does the firm resolve it quickly?

• e.g. of customer questions: Is the telecommunication company willing to give me a specific time when the installer will show up?

5) Responsiveness

Gaps Model: The SERVQUAL authors identified five gaps

that may cause customers to experience poor service

quality.

Gap 1- The Knowledge Gap

not knowing what the customers

expects

Key factors influencing

Inadequate research Lack of organizational

communication Insufficient relationship

marketing

Prescription: learn about customer

Research and action Direct interaction

Reduced organization level

Gap 2 – The Standards/Policy Gap

– Not selecting the right service

standards and design • Key factors influencing

– Absence of appropriate standard

– Inadequate service leadership

– Poor service design

• Prescription: quality standards

– Management commitment

– Innovation and standardization

– Goals, monitoring and rewards

Gap 3- The Delivery Gap

– Not delivering to service

standards • Key factors influencing

– Human resource policies

– Supply and demand management

– Customers not educated

• Prescription: quality standards

– Role definition/conflict

– Aptitude and training

– Team-building and empowerment

Gap 4 – The Communication Gap

– Not matching performance to

promises • Key factors influencing

– Over-promising in marketing communication

– Poor management of expectation

– Inadequate organizational communication

• Prescription: quality standards

– Internal marketing – Educating customers – Alternative levels and

pricing

Gap 5- The Perception Gap

– Differences between

what is, in fact, delivered to the customer and what customers perceived they have received (because they are sometimes unable to accurately evaluate service quality)

Bateson’s Model • The production process of services has been called

the “servuction” process (Bateson)

• It refers to the simultaneous production and consumption of services.

• The customer is present when the service is produced

• The customer plays a role in the servuction and the delivery process

Invisible and Visible: Has at its core line of visibility that separates

the interactive part of the experience from the support part

VISIBLE

INVISIBLE

CUSTOMER

Servicescape

s

Contact Personnel/

Service Provider

Other

Customer

Invisible

Organization

& Systems

Invisible Organization & System

• Visible components have to be completed with invisible components.

• Reflect the rules, regulations and processes upon which the organization is based.

• Have a very profound effect on the customer’s service experience.

• Implication: demonstrates that consumers are an integral part of the service process.

Servicescape

• Developed by Booms & Bitner

• Emphasize impact of environment in which the

service takes place

• The environment in which the service is

assembled and in which seller and customer

interact, combined with tangible commodities

that facilate performance or communication of

the service

Contact Personnel/Service

Provider

• Visible component of servuction model

• Contact personnel are the employees other than primary service provider who briefly interact with the customer (receptionist, secretary, hotel concierge)

• Service provider are the primary providers of the core service (doctors, lawyers, restaurants, spa)

Other Customer

• Other consumers are identified as the service audience

• The presence of other consumers in the same service

environment during an encounter can affect the service

experience of a consumer in a negative or positive way

• When consumers receive social support from other

consumers, consumer-to consumer interactions might

enhance their service experience, build loyalty, and

therefore increase the profits of the service firm

Tutorial (Past Years’ Question)