Lecture 10
Process – Physical Evidence – People Elements
Learning Objectives
1 Defining service process
2 Explain the method for service process design: Flowcharting Service
Delivery
3 Explain different dimensions of service environment (Physical
Evidence)
4 Explain why service employees are so important for the success of a
firm.
5 Explain the factors that make the work of front-line staff demanding
and often difficult
6 Explain the key elements of the Service Talent Cycle for successful
human resource management in service firms
Learning Objective 1
Defining Service Process
What is service process?
• From the customer’s perspective, are service experiences
• From the organization’s perspective, services are
processes that have to be designed and managed to
create the desired customer experience.
• Processes describe the method and sequence in which
service operating systems work and specify how they link
together to create the value proposition promised to
customers.
Learning Objective 2
Explain the method for service process design: Flowcharting
Service Delivery
Flowcharting service delivery
• Technique for displaying the nature and sequence
of the different steps in delivery service to
customers.
• Offers way to understand total customer service
experience
• Shows how nature of customer involvement with
service organizations varies by type of service
Flowcharting service delivery
Simple Flowchart for Delivery of a People-Processing Service
Flowcharting service delivery
Simple Flowchart for Delivery of a Possession-Processing Service
Flowcharting service delivery
Simple Flowchart for Delivery of a Mental Stimulus Processing Service
Flowcharting service delivery
Simple Flowchart for Delivery of a Information-Processing Service
Learning Objective 3
Explain different dimensions of service environment
(Physical Evidence)
What is physical evidence?
Service environments, also called servicescapes, relate to
the style and appearance of the physical surroundings and
other experiential elements encountered by customers at
service delivery sites
Purpose of service environments
• Shape Customers’ Service Experiences and Behaviors
• Signal Quality and Position, Differentiate, and Strengthen the
Brand
• Core Component of the Value Proposition
• Facilitate the Service Encounter and Enhance Productivity
Dimensions of the
Service Environment
• Spatial Layout and Functionality
– Spatial layout:
- Floorplan;
- Size and shape of furnishings, counters, machinery, equipment, and how they are
arranged
– Functionality: ability of those items to make the performance of
the service easier
Dimensions of the
Service Environment
• Signs, Symbols and Artifact
• Communicate firm’s image
• Help consumers find their way
• Let them know the service script
• The challenge is to design
such that these guide
customer through the
service delivery process
Dimensions of the
Service Environment
• Ambient Conditions
Characteristics of environment pertaining to our five senses
– Lighting and color schemes
– Scents
– Sounds such as noise and music
– Air quality and temperature
Learning Objective 4
Explain why service employees are so important for the
success of a firm.
The importance of service personnel
• Help maintain firm’s positioning. They are:
o A core part of the product
o The service firm
o The brand
o Affects sales
o Is a key driver of
customer loyalty
o Determine productivity
Learning Objective 5
Explain the factors that make the work of front-line staff
demanding and often difficult
Frontline work is difficult and stressful
• Boundary spanners link inside
of organization to outside world and often experience
role stress from multiple roles they have to perform
• 3 main causes of role stress:
o Organization vs. Client: Dilemma
whether to follow company rules
or to satisfy customer demands
o Person vs. Role: Conflicts between what jobs
require and employee’s own personality and
beliefs
o Client vs. Client: Conflicts between customers that
demand service staff intervention
Learning Objective 6
Explain the key elements of the Service Talent Cycle for
successful human resource management in service
firms
The Service
Talent Cycle
for Service Firms
Hiring the right people
• Be the Preferred Employer
• Select the right people:
o There is no perfect employee
o Different jobs are best filled by
people with different skills, styles
or personalities
o Hire candidates that fit firm’s core
values and culture
o Focus on recruiting naturally warm personalities for customer-
contact jobs
11-23
Training service employees actively
• Service employees need to learn:
o Organizational culture, purpose and
strategy
o Interpersonal and technical skills
o Product/service knowledge
Internal marketing and communications
• Employees need to be kept
informed about new policies,
changes in service features, and
new quality initiatives
• Nurtures team spirit and support
common corporate goals across
national frontiers
• Can complement training
o ensures efficient and satisfactory service delivery
o achieves productive and harmonious working
relationships
o builds employee trust, respect, and loyalty
Motivating and energize
service employees
Use full range of available rewards effectively, including
• Job content:
o People are motivated and satisfied knowing they are doing a good job
• Feedback and recognition:
o People derive a sense of identity and belonging to an organization from
feedback and recognition
• Goal achievement:
o Specific, difficult but attainable and accepted goals are strong
motivators
References
Lovelock C. & Wirtz J., 2018, Essentials of Services
Marketing. 3rd Ed. Harlow, England: Pearson
