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Do Thi Thu Ha, MSc.

Lecture outline
Chapter 5 – p.189 In this chapter, you will learn about:
1. The Service Economy
2. Characteristics of Services

Service 3. The Service Design Process

4. Tools for Service Design:

design ■
■
Service Blueprint
Servicescapes
■ Waiting Line
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The Service Economy Trend towards service

International
Employment UK: 82% of the work force are engaged US: 80% are employed in service
by Industry in service industries industries
Sector
Why?
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The service economy in Vietnam Characteristics of Services

• Services:
acts, deeds, performances or
relationships that produce time,
place, form or psychological
utilities for customers.
• Goods:
tangible objects that can be
created and sold or used later.

“In reality, almost all purchases of

goods are accompanied by
facilitating services, and almost
every service purchase is A Continuum from Goods to Services
accompanied by facilitating goods”

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Perishable
Inseparable
from The Service Design Process
delivery Decentralized Services concept:
Higher
and the purpose of a
customer geographically VS
service; it defines the
contact dispersed target market and the
customer experience.
Consumed
Variable more often
output than Services that are allowed to just
products
happen rarely meet customer
needs. World-class services that
come to mind are all characterized
Intangible
Characteristics Be easily by impeccable design.
of Services emulated

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The Service Design Process Service concept: “The Happiest Place on Earth”
Desired service experience: feeling like Target customers: children, teens, and
a place of dreams being come true their families
• Services package:
the mixture of physical items, Service package
Sensual benefits: using colorful machine, Psychological benefits: not cause
sensual benefits, and Physical items: games (adventures, roller coaster,
haunting house,…), restaurants (snacks, unique decorations, equipment, mascots, bright suspense, worry, not sensational,
focus on the sense of lightness space,
psychological benefits. foods of cartoon,…) concept of décor, great scene
admire the landscape
• Performance specifications: Performance specifications
outline expectations and Customer requirements: safety, eat and play, stay Customer expectations: adequate protective equipment, staff on
and enjoy, happy and relax duty to handle the incident regularly, have a place to rest, food
requirements. and drink sold everywhere, souvenir
• Design specifications: Design specifications
describe the service in Activities Facilities Provider skills Cost and time estimated

enough detail to be replicated. how many parks, concept of each park, how many cartoon characters being presented, how many games, orders of games, where to place the games, which
games next to which, what kind of restaurants be placed next to every games, how to link the concept of restaurant to the games, parade, fireworks
• Delivery specifications: Delivery specifications
specify schedules, Schedule: opening and
Deliverables: how to sell
tickets, how to promote the
Locations: where the park locate (far
from city centre, near river or
deliverables, location. closing time place and its service beach,…)

Service delivery
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The service-process matrix Tools for service design – Service Blueprint

Service
Low factory Service blueprint:
airlines and trucking LINE OF
INFLUENCE
a specialized flow
chart used for
Labor intensity

Mass service service processes.

1.line of influence
retailing and banking 2.line of interaction Service firms
3.line of visibility
Service
4.line of support
shop
schools and hospitals Manufacturing firms
• Frontstage
Professional = front office
High service accountant, lawyer, or doctor • Backstage
High = back office
Low
Customization Service blueprint example
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Do Thi Thu Ha, MSc.
Ex: Process flowchart of selling and shipping album
Tools for service design – Service Blueprint through internet for sales force
Is product
Order Check no Check materials
in
received inventory
inventory?
needed

yes Is product no Booking

in confirmation
Schedule inventory?
shipment
yes

Schedule
Confirm delivery date production
& price with customer

no Does yes
Change delivery Ship
customer Prepare bill
options for customers
agree? album
Expanded Service Blueprint for a Coffee Shop
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Tools for service design – Servicescapes Tools for service design – Servicescapes
Servicescapes: 1. the space and function where the service takes places
the design of the physical 2. the ambient conditions, such as music, temperature,
environment (including décor, and noise
signs, symbols, and 3. signs, symbols, and artifacts.
artifacts) in which a ➔ The actual physical ENVIRONMENT where the service
service takes place. is performed, delivered and consumed

Servicescapes for a shopping mall Servicescapes for an airport

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Tools for service design – Waiting line Tools for service design – Waiting line
• Queue:
a single waiting line
• Queue discipline:
the order in which
customers are served;
most commonly first
come, first served.

Compare the advantages of these 2 queuing types

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Tools for service design – Waiting line Tools for service design – Waiting line
• Barking: Single line queue Multiple line queue The psychology of waiting
customers refuse
to enter the Besides some strategies
waiting line due to 1. Deters barking behavior
perceived long that you just learn from the
2. Eliminates stress over choosing the “right line”
wait or slow paragraph, think and add
service some other ways to help
3. Give customers greater flexibility
• Jockeying:
customers 4. Shorter average wait time customers overcome the
change from one time of waiting
line to another 5. Avoids jockeying (line switching)
trying to reduce
6. Allows differentiated services
the wait time
7. Fairness (first come, first serve)
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When you have 2

coffee shops right
next to each other,
and each sells the
exact same coffee at
the exact same price,
service design is what
make you walk into
one and not the other
- 31 Volts Service Design -
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