Peran Service Pada EkonomiPeran Service Pada Ekonomi

Oleh: Hafizurrachman dengan Oleh: Hafizurrachman dengan Sumber Berasal dari Buku Sumber Berasal dari Buku Service Service

ManagementManagementOleh: Oleh: Professor James FitzsimmonsProfessor James Fitzsimmons

University of Texas at AustinUniversity of Texas at Austin

Model Interaktif pada PerekonomianModel Interaktif pada Perekonomian

Businessservices

Publicadministration

Infrastructureservices Trade

services

Extractivesector

Manufacturingsector

Customer

Social/personalservices

DefinisiDefinisi--Definisi Definisi ServiceService

A Service is a TimeA Service is a Time--perishable, Intangible perishable, Intangible Experience Performed for a Customer Experience Performed for a Customer Acting in the Role of a Coproducer.Acting in the Role of a Coproducer.

James FitzsimmonsJames FitzsimmonsServices are deeds, processes, and Services are deeds, processes, and performances.performances.

ValarieValarie ZeithamlZeithaml & Mary Jo & Mary Jo BitnerBitner

Definition of Service FirmsDefinition of Service Firms

Service Enterprises are Organizations that Service Enterprises are Organizations that Facilitate the Production and Distribution of Facilitate the Production and Distribution of Goods, Support Other Firms in Meeting Goods, Support Other Firms in Meeting Their Goals, and Their Goals, and Add ValueAdd Value to Our Personal to Our Personal Lives.Lives.

James FitzsimmonsJames Fitzsimmons

Trends in U.S. Employment by Trends in U.S. Employment by SectorSector

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10

20

30

4050

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9018

50

1870

1890

1910

1930

1950

1970

1990

Year

Prop

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of to

tal e

mpl

oyem

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Service

Manufacturing

Agriculture

The Four Realms of an ExperienceThe Four Realms of an Experience

Customer Participation

Passive Active

EnvironmentalAbsorption Entertainment

(Movie)Education(Language)

Relationship Immersion Esthetic(Tourist)

Escapist(Skydiving)

Role of the Service ManagerRole of the Service Manager

Entrepreneurial InnovationEntrepreneurial InnovationCapitalizing on Social TrendsCapitalizing on Social TrendsManagement ChallengesManagement Challenges

The Nature of Services

The Service Process Matrix

Degree Degree of Interaction and Customizationof labor Intensity Low High

Service factory: Service shop:* Airlines * Hospitals

Low * Trucking * Auto repair * Hotels * Other repair services* Resorts and recreation

Mass service: Professional service: * Retailing * Doctors

High * Wholesaling * Lawyers* Schools * Accountants * Retail aspects of * Architects

commercial banking

The Service Package

Supporting Facility: The physical resources that must be in place before a service can be sold. Examples are golf course, ski lift, hospital, airplane.Facilitating Goods: The material purchased or consumed by the buyer or items provided by the consumer. Examples are food items, auto parts, legal documents, golf clubs.

The Service Package (cont.)

Explicit Services: Benefits readily observable by the senses. The essential or intrinsic features. Examples are quality of meal, attitude of the waiter, on-time departure.Implicit Services: Psychological benefits or extrinsic features which the consumer may sense only vaguely. Examples are privacy of loan office, security of a well lighted parking lot

Unique Characteristics of ServicesIntangibility: creative advertising, no patient protection, importance of reputation Perishability: cannot inventory, opportunity loss of idle capacity, need to match supply with demandHeterogeneity: customer participation in delivery process results in variabilitySimultaneity: opportunities for personal selling, interaction creates customer perceptions of qualityCustomer Participation in the Service Process: attention tofacility design but opportunities for co-production

Service Process OrientationCustomer as CoproducerFront and Back Office PerspectivesService Profit Chain Focus on Internal andExternal CustomersQuality (perceptions vs expectations)Focus on Both Efficiency and EffectivenessUse IT as Productivity Enabler for Both Internal and External Customers

Strategic Service Classification (Nature of the Service Act)Strategic Service Classification (Nature of the Service Act)

Direct Recipient of the ServiceNature of the Service Act People Things

People’s bodies: Physical possessions:

Health care Freight transportationPassenger transportation Equipment repair and maintenance

Tangible actions Beauty salons Veterinary careExercise clinics Janitorial servicesRestaurants Laundry and dry cleaningHaircutting Landscaping/lawn care

People’s minds: Intangible assets:

Education Banking

Intangible actions Broadcasting Legal servicesInformation services AccountingTheaters SecuritiesMuseums Insurance

Strategic Service Classification (Relationship with Customers)Strategic Service Classification (Relationship with Customers)

Type of Relationship between Service Organization and Its CustomersNature of Service Delivery “Membership” relationship No formal relationship

Insurance Radio stationTelephone subscription Police protection

Continuous delivery College enrollment Lighthouse

of service Banking Public HighwayAmerican Automobile association

Long-distance phone calls RestaurantTheater series subscription Mail service

Discrete transactions Commuter ticket or transit pass Toll highwaySam’s Wholesale Club Movie theaterEgghead computer software Public transportation

Strategic Service Classification (Customization and Judgment)Strategic Service Classification (Customization and Judgment)

Extent to Which Service Characteristics Are CustomizedExtent to Which Personnel Exercise Judgment in Meeting Customer Needs High Low

Professional services Education (large classes)Surgery Preventive health programsTaxi services College food service

High Beautician PlumberGourmet restaurant

Telephone service Public transportationHotel services Routine appliance repair

Low Retail banking (excl. major loans) Movie theaterFamily restaurant Spectator sports

Fast-food restaurant

Strategic Service Classification (Nature of Demand and Supply)Strategic Service Classification (Nature of Demand and Supply)

Extent of Demand Fluctuation over TimeExtent to which Supply Is Constrained Wide Narrow

Electricity Insurance

Peak demand can Natural gas Legal services

usually be met Telephone Banking

without a major delay Hospital maternity unit Laundry and dry cleaningPolice and fire emergencies

Accounting and tax preparation Services similar to those above

Peak demand regularly Passenger transportation but with insufficient capacity

exceeds capacity Hotels and motels for their base level of Restaurants business

Strategic Service Classification (Method of Service Delivery)Strategic Service Classification (Method of Service Delivery)

Availability of Service OutletsNature of Interaction between Customer and Service Organization Single site Multiple site

Customer goes to Theater Bus service

service organization Barbershop Fast-food chain

Service organization Lawn care service Mail delivery

comes to customer Pest control service AAA emergency repairsTaxi

Customer and service Credit card company Broadcast network

organization transact at Local TV station Telephone company

arm’s length (mail orelectronic communications)

Open Systems View of Service Operations

Service Process Consumer Evaluation

Consumer arrivals Consumer participant departures Criteria (input) Consumer-Provider ( output) Measurement

interface

Control Monitor

Customer demand Service operations manager Service personnelProduction function:

Perceived needs Alter Monitor and control process Schedule Empowerment Location demand Marketing function: supply Training

Interact with consumers AttitudesControl demand

Modify as necessaryDefine standard

Service packageSupporting facility

Communicate Facilitating goods Basis of by advertising Explicit services selection

Implicit services

Service QualityService Quality

Moments of TruthMoments of Truth

Each customer contact is called a moment Each customer contact is called a moment of truth.of truth.

You have the ability to either satisfy or You have the ability to either satisfy or dissatisfy them when you contact them.dissatisfy them when you contact them.

A A service recovery service recovery is satisfying a previously is satisfying a previously dissatisfied customer and making them a dissatisfied customer and making them a loyal customer.loyal customer.

Dimensions of Service QualityDimensions of Service Quality

ReliabilityReliability: Perform promised service : Perform promised service dependably and accurately. dependably and accurately. ExampleExample: : receive mail at same time each day.receive mail at same time each day.ResponsivenessResponsiveness: Willingness to help : Willingness to help customers promptly. customers promptly. ExampleExample: avoid : avoid keeping customers waiting for no apparent keeping customers waiting for no apparent reason. reason.

Dimensions of Service QualityDimensions of Service Quality

AssuranceAssurance: Ability to convey trust and : Ability to convey trust and confidence. confidence. ExampleExample: being polite and : being polite and showing respect for customer.showing respect for customer.EmpathyEmpathy: Ability to be approachable. : Ability to be approachable. ExampleExample: being a good listener.: being a good listener.TangiblesTangibles: Physical facilities and : Physical facilities and facilitating goods. facilitating goods. ExampleExample: cleanliness. : cleanliness.

Perceived Service QualityPerceived Service Quality

Word of mouth

Personal needs

Past experience

Expectedservice

Perceivedservice

Service Quality Dimensions

ReliabilityResponsiveness

AssuranceEmpathyTangibles

Service Quality Assessment1. Expectations exceeded

ES<PS (Quality surprise)2. Expectations met

ES~PS (Satisfactory quality)3. Expectations not met

ES>PS (Unacceptable quality)

Gaps in Service QualityGaps in Service QualityWord -of-mouthcommunications Personal needs Past experience

Expected service

External communications to consumers

Perceived service

Service delivery (includingpre- and post-contacts)

Translation of perceptions intoservice quality specifications

Management perceptions of consumer expectations

GAP 5

GAP 3

GAP 2

GAP 1 GAP 4

Customer

Provider

Classification of Service FailuresClassification of Service Failures

Server ErrorsServer ErrorsTaskTask::

Doing work incorrectlyDoing work incorrectlyTreatmentTreatment::

Failure to listen to customerFailure to listen to customerTangibleTangible::

Failure to clean facilitiesFailure to clean facilities

Customer ErrorsCustomer ErrorsPreparationPreparation::

Failure to bring necessary Failure to bring necessary materialsmaterials

EncounterEncounter::Failure to follow instructionsFailure to follow instructions

ResolutionResolution::Failure to learn from Failure to learn from experienceexperience

Achieving Service QualityAchieving Service Quality

Cost of Quality (Juran)Cost of Quality (Juran)

Service Process ControlService Process Control

Statistical Process Control (Deming)Statistical Process Control (Deming)

Unconditional Service GuaranteeUnconditional Service Guarantee

Costs of Service QualityCosts of Service Quality

Failure costs Detection costs Failure costs Detection costs Prevention costsPrevention costsExternal failureExternal failure: Process control : Process control Quality planningQuality planning

Customer complaints Peer review Customer complaints Peer review Training programTraining programWarranty charges Supervision Warranty charges Supervision Quality auditsQuality auditsLiability insurance Customer comment card Liability insurance Customer comment card Data acquisition and analysisData acquisition and analysisLegal judgments Inspection Legal judgments Inspection Preventive maintenancePreventive maintenanceLoss of repeat service Loss of repeat service Supplier evaluationSupplier evaluation

Recruitment and selectioRecruitment and selectionnInternal failure:Internal failure:

ScrapScrapReworkRework

Recovery:Recovery:ExpediteExpediteLabor and materialsLabor and materials

Service Process ControlService Process Control

Resources

Identify reasonfor

nonconformance

Establish measure of performance

Monitorconformance torequirements

Take corrective

action

Service concept

Customer input

Customer output

Service process

Customer SatisfactionCustomer Satisfaction

All customers want to be satisfied. All customers want to be satisfied.

Customer loyalty is only due to the lack of a Customer loyalty is only due to the lack of a better alternativebetter alternative

Giving customers some extra value will Giving customers some extra value will delight delight them by exceeding their them by exceeding their expectationsexpectations and insure their return and insure their return

Expressing DissatisfactionExpressing Dissatisfaction

Dissatisfactionoccurs

Action

No Action

Public Action

Private Action

Seek redress directly from the firm

Take legal action

Complaint to business, private,or governmental agencies

Stop buying the product or boycott the seller

Warn friends about the productand /or seller

Customer Feedback and WordCustomer Feedback and Word--ofof--MouthMouth

The average business only hears from 4% of their customers who aThe average business only hears from 4% of their customers who are re dissatisfied with their products or services. Of the 96% who dodissatisfied with their products or services. Of the 96% who do not bother not bother to complain, 25% of them have serious problems.to complain, 25% of them have serious problems.

The 4% complainers are more likely to stay with the supplier thaThe 4% complainers are more likely to stay with the supplier than are the n are the 96% non96% non--complainers.complainers.

About 60% of the complainers would stay as customers if their prAbout 60% of the complainers would stay as customers if their problems oblems was resolved and 95% would stay if the problem was resolved quicwas resolved and 95% would stay if the problem was resolved quickly.kly.

A dissatisfied customer will tell between 10 and 20 other peopleA dissatisfied customer will tell between 10 and 20 other people about about their problem.their problem.

A customer who has had a problem resolved by a company will tellA customer who has had a problem resolved by a company will tell about about 5 people about their situation.5 people about their situation.

Number of People Told Based Number of People Told Based on Level of Dissatisfactionon Level of Dissatisfaction

average number of people told

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5

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Slightdiss

Annoyed Veryannoyed

Extannoyed

Absfurious

Action Taken Based on Level ofAction Taken Based on Level ofDissatisfactionDissatisfaction

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100

Slightlydiss

Annoyed Veryannoyed

Extannoyed

Absfurlous

Tell friends

Complain

Make a fuses

Not use again

Dissuade others

Complain against

Approaches to Service RecoveryApproaches to Service RecoveryCaseCase--byby--casecase addresses each customeraddresses each customer’’s s complaint individually but could lead to complaint individually but could lead to perception of unfairness.perception of unfairness.Systematic responseSystematic response uses a protocol to handle uses a protocol to handle complaints but needs prior identification of complaints but needs prior identification of critical failure points and continuous updating.critical failure points and continuous updating.Early interventionEarly intervention attempts to fix problem before attempts to fix problem before the customer is affected.the customer is affected.Substitute serviceSubstitute service allows rival firm to provide allows rival firm to provide

service but could lead to loss of customer.service but could lead to loss of customer.

Making Customers into ChampionsMaking Customers into Championseasyeasy

Walking wounded ChampionsWalking wounded ChampionsCould complain but donCould complain but don’’t; Active in providingt; Active in providingnot happy but repurchase not happy but repurchase British Airways with British Airways with

information on qualityinformation on qualityof its services; loyalof its services; loyal

Remain LoyalRemain Loyal

DefectDefectMissing in actionMissing in action DetractorsDetractors

Defected; Defected; Defected;Defected;nonnon--complaining vocally criticalcomplaining vocally critical

not easynot easydondon’’t complain t complain complaincomplain

Propensity toPropensity to contact British Airwayscontact British Airways

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Topics for DiscussionTopics for DiscussionHow do the five dimensions of service How do the five dimensions of service quality differ from those of product quality?quality differ from those of product quality?Why is measuring service quality so Why is measuring service quality so difficult?difficult?Illustrate the four components in the cost of Illustrate the four components in the cost of quality for a service.quality for a service.Why do service firms hesitate to offer a Why do service firms hesitate to offer a service guarantee?service guarantee?How can recovery from a service failure be How can recovery from a service failure be a blessing in disguise?a blessing in disguise?

The Complaint LetterThe Complaint Letter

Briefly summarize the complaints and Briefly summarize the complaints and compliments in Dr. Loflincompliments in Dr. Loflin’’s letter.s letter.Critique the letter of Gail Pearson in reply Critique the letter of Gail Pearson in reply to Dr. Loflin. What are the strengths and to Dr. Loflin. What are the strengths and weaknesses of the letter?weaknesses of the letter?Prepare an Prepare an ““improvedimproved”” response letter from response letter from Gail PearsonGail PearsonWhat further action should Gail Pearson What further action should Gail Pearson take in view of this incident?take in view of this incident?

Service Strategy Service Strategy Service Strategy

The Strategic Service ConceptThe Strategic Service ConceptThe Strategic Service Concept

Structural:Structural:Delivery systemDelivery system (front & back office)Facility designFacility design (aesthetics, layout)LocationLocation (competition, site characteristics)Capacity planningCapacity planning (number of (number of servers))

ManagerialManagerialService encounterService encounter (culture, empowerment)QualityQuality (measurement, guarantee)Managing capacity and demandManaging capacity and demand (queues)Information Information (data collection, resource)

Competitive Environment of ServicesCompetitive Environment of Competitive Environment of ServicesServices

Relatively Low Overall Entry BarriersRelatively Low Overall Entry BarriersEconomies of Scale LimitedEconomies of Scale LimitedHigh Transportation CostsHigh Transportation CostsErratic Sales FluctuationsErratic Sales FluctuationsNo Power Dealing with Buyers or SuppliersNo Power Dealing with Buyers or SuppliersProduct Substitutions for ServiceProduct Substitutions for ServiceHigh Customer LoyaltyHigh Customer LoyaltyExit Barriers Exit Barriers

Competitive Service Strategies (Overall Cost Leadership)Competitive Service Strategies Competitive Service Strategies (Overall Cost Leadership)(Overall Cost Leadership)

Seeking Out LowSeeking Out Low--cost Customerscost CustomersStandardizing a Custom Service Standardizing a Custom Service Reducing the Personal Element in Service Reducing the Personal Element in Service

DeliveryDeliveryReducing Network CostsReducing Network CostsTaking Service Operations OffTaking Service Operations Off--lineline

Competitive Service Strategies (Differentiation)Competitive Service Strategies Competitive Service Strategies (Differentiation)(Differentiation)

Making the Intangible TangibleMaking the Intangible TangibleCustomizing the Standard ProductCustomizing the Standard ProductReducing Perceived RiskReducing Perceived RiskGiving Attention to Personnel TrainingGiving Attention to Personnel TrainingControlling QualityControlling Quality

Note: Differentiation in service means being unique in brand image, technology use, features, or reputation for customer service.

Competitive Service Strategies (Focus)Competitive Service Strategies Competitive Service Strategies (Focus)(Focus)

Buyer Group: (e.g. USAA insurance and Buyer Group: (e.g. USAA insurance and military officers)military officers)

Service Offered: (e.g. Service Offered: (e.g. ShouldiceShouldice Hospital Hospital and hernia patients)and hernia patients)

Geographic Region: (e.g. Austin Cable Geographic Region: (e.g. Austin Cable Vision and TV watchers)Vision and TV watchers)

Customer Criteria for Selectinga Service ProviderCustomer Criteria for SelectingCustomer Criteria for Selectinga Service Providera Service Provider

Availability (24 hour ATM)Convenience (Site location)Dependability (On-time performance)Personalization (Know customer’s name)Price (Quality surrogate) Quality (Perceptions important)Reputation (Word-of-mouth)Safety (Doing things to people)Speed (Avoid excessive waiting)

Service Purchase DecisionService Purchase DecisionService Purchase Decision

Service QualifierService Qualifier: To be taken seriously a : To be taken seriously a certain level must be attained on the certain level must be attained on the competitive dimension, as defined by other competitive dimension, as defined by other market players. market players. ExamplesExamples are cleanliness are cleanliness for a fast food restaurant or safe aircraft for for a fast food restaurant or safe aircraft for an airline.an airline.Service WinnerService Winner: The competitive : The competitive dimension used to make the final choice dimension used to make the final choice among competitors. among competitors. ExampleExample is price. is price.

Service Purchase Decision (cont.)Service Purchase Decision (cont.)Service Purchase Decision (cont.)

Service LoserService Loser: Failure to deliver at or : Failure to deliver at or above the expected level for a competitive above the expected level for a competitive dimension. dimension. ExamplesExamples are failure to repair are failure to repair auto (dependability), rude treatment auto (dependability), rude treatment (personalization) or late delivery of package (personalization) or late delivery of package (speed). (speed).

Competitive Role of Information Competitive Role of Information in Servicesin Services

Strategic Focus Competitive Use of InformatStrategic Focus Competitive Use of Information ion OnOn--line Offline Off--lineline

(Real time) (Real time) (Analysis)(Analysis)Creation of barriers to entry: Data base asset:Creation of barriers to entry: Data base asset:

External Reservation system External Reservation system Selling informationSelling information(Customer) Frequent user club D(Customer) Frequent user club Development of servicesevelopment of services

Switching costs Switching costs MicroMicro--marketingmarketingRevenue generation: Productivity enhancement:Revenue generation: Productivity enhancement:

Internal Yield management Internal Yield management Inventory statusInventory status(Operations) Point of sale (Operations) Point of sale Data envelopmentData envelopment

Expert systems Expert systems analysis (DEA) analysis (DEA)

The Service EncounterThe Service Encounter

The Service Encounter TriadThe Service Encounter Triad

ServiceOrganization

Efficiencyversus

satisfaction

Efficiencyversus

autonomy

CustomerContactPersonnel Perceived

control

Definitions of CultureDefinitions of Culture

Schwartz and DavisSchwartz and Davis (1981) (1981) -- Culture is a Culture is a pattern of beliefs and expectations shared pattern of beliefs and expectations shared by the organizationby the organization’’s members.s members.MintzbergMintzberg (1989) (1989) -- Culture is the traditions Culture is the traditions and beliefs of an organization that and beliefs of an organization that distinguish it from others.distinguish it from others.Hoy and Hoy and MiskelMiskel (1991) (1991) -- Culture is shared Culture is shared orientations that hold the unit together and orientations that hold the unit together and give a distinctive identity.give a distinctive identity.

The Service OrganizationThe Service Organization

CultureCultureServiceMaster (Service to the Master)ServiceMaster (Service to the Master)Disney (Choice of language)Disney (Choice of language)

EmpowermentEmpowermentInvest in peopleInvest in peopleUse IT to enable personnelUse IT to enable personnelRecruitment and training criticalRecruitment and training criticalPay for performancePay for performance

Organizational ControlOrganizational Control

BeliefsSystems

Tocontribute

Core values& mission

Identify corevalues

BoundarySystems

To do right Specify andenforcerules

Risks to beavoided

DiagnosticControlSystems

To achieve Build cleartargets

Criticalperformancevariables

InteractiveControlSystems

To create Encouragelearning

StrategicUncertainties

Contact PersonnelContact Personnel

SelectionSelection1. Abstract Questioning1. Abstract Questioning2. Situational Vignette2. Situational Vignette3. Role Playing3. Role Playing

TrainingTrainingUnUnrealistic customer expectationsrealistic customer expectationsUnUnexpected service failureexpected service failure

Difficult Interactions with Difficult Interactions with CustomersCustomers

Unrealistic customer expectations Unexpected service failureUnrealistic customer expectations Unexpected service failure1. Unreasonable demands 1. Unavailable service1. Unreasonable demands 1. Unavailable service2. Demands against policies 2. Slow performance2. Demands against policies 2. Slow performance3. Unacceptable treatment of 3. Unacceptable service3. Unacceptable treatment of 3. Unacceptable service

employeesemployees4. Drunkenness 4. Drunkenness 5. Breaking of societal norms5. Breaking of societal norms6. Special6. Special--needs customersneeds customers

Use scripts to train for proper responseUse scripts to train for proper response

The CustomerThe Customer

Expectations and AttitudesExpectations and AttitudesEconomizing customerEconomizing customerEthical customerEthical customerPersonalizing customerPersonalizing customerConvenience customerConvenience customer

Customer as CoCustomer as Co--ProducerProducer

Service Encounter Success FactorsService Encounter Success Factors

Customer Service Provider Human Machine

HumanEmployee selectionInterpersonal skillsSupport technologyEngender trust

User friendlyVerificationSecurityEasy to access

MachineEasy to accessFast responseVerificationRemote monitoring

CompatibilityTrackingVerificationSecurity