Chapter 8: The Service Delivery Process

Question 1

Customers evaluation of the quality of service will, for example be significantly influenced by ______

Answer 1

Any delays in the service delivery process, the actions of staff or anything that results in their expectations not being met

Question 2

____ forms the core of the service delivery process

Answer 2

The contact during the service encounter

Question 3

What is defined as the level of interaction, that is required between the service provider and the customers, in order to deliver the service

Answer 3

Customer contact

Question 4

What are the three levels of contact distinguished in a service delivery

Answer 4

> High contact services - the customer is required to be physically present (healthcare hairdressing counseling)

> Medium contact services - the customers presence is required for a specific part of the process (a customer who has to take his or her car to a dealership to be serviced)

> Low contact services - it is characterized by little to no physical contact between the customer and service provider (internet banking)

Question 5

What are the service delivery contact types

Answer 5

> The customer visits the service provider

> The service provider visits its customers

> Delivering services at an arms length ( services that are predominantly delivered by telecommunications and other forms of technology, they minimize the need to meet face-to-face to deliver the service)

Question 6

What is a key element in building or destroying customer satisfaction

Answer 6

The service delivery process

Question 7

Define the service delivery process

Answer 7

All the operational functions that together produce the core service, with supporting services

Question 8

Explain timing in relation to service delivery

Answer 8

The decisions that service providers make regarding the timing aspect of their service delivery will have a direct impact on the value of the service for customers, for example being available after hours

Question 9

Explain duration in relation to service delivery

Answer 9

The duration/length of the service delivery could also be of value to customers which could directly influence the pricing associated with the level of value required

Question 10

Explain payment in relation to service delivery

Answer 10

How payment for services will be integrated into the service delivery process (before or after?)

Payment considerations
> Payment before service delivery
> Payment after service delivery
> Payment prior to and following service delivery

Question 11

Explain the permanence of service availability

Answer 11

It refers to the times that the service will be available to customers and is typically determined by the operating hours of the service provider. It has a direct influence on marketing and operational requirements

Question 12

What are the four key drivers that, determine the selection among different service delivery channels

Answer 12

• customers rely more on personal channels when buying complex services characterized by a high degree of risk during the delivery process (customers would probably use a cell phone banking service to pay accounts, but would prefer to have a face-to-face interaction with bank officials when applying for a mortgage)
• customers who are more knowledgeable about the service or delivery channel would be more confident using self-service and electronic channels (many customers are happy paying their municipal account using the internet, but would be reluctant to buy an 18th century ceramic art doll from a Parisian artist dealer over the internet)
• customers with strong social needs may prefer personal contact (a pensioner living alone for instance may well insist on visiting a local travel agent rather than on using the trouble agents services himself or herself over the internet)
• customers with a strong need for convenience typically prefer self-service and electronics service delivery channels to traditional channels

Question 13

When planning their service delivery, service providers have to make a number of distribution decisions

Answer 13

1. The core service and supporting services have to be identified
2. Determine who will perform the core service - either the service provider or intermediaries

Question 14

Name the three broad approaches - intensity of distribution

Answer 14

1. Exclusive distribution - the use of a limited number of intermediaries to only offer one brand service (when the service provider wishes to maintain a high level of control over the functions performed by the intermediaries)
2. Selective distribution - a limited number of intermediaries to provide services to its customers
3. Intensive distribution - service providers will attempt to make their services available as widely as possible (by including as many intermediaries as possible to sell the service)

Question 15

What are the three primary types of intermediaries

Answer 15

Franchises
Agents or brokers
Electronic channels

Question 16

Explain franchising as an intermediary

Answer 16

By offering it’s services via franchises, service providers offer intermediaries the opportunity to use their brand name, business processes, services or reputations to offer services to customers in exchange for an agreed fee or royalty

Further read on advantages and disadvantages (pg 216-217)

Question 17

Explain agents or brokers as intermediaries

Answer 17

• An agent is an intermediary who acts on behalf of either the service provider or a customer and has the necessary authority to formalize agreements between the service provider and the customer.
• Brokers, on the other hand, are intermediaries who bring sellers and buyers together, and assist in negotiations

Further read on advantages and disadvantages (pg 218-219)

Question 18

Explain electronic channels as an intermediary

Answer 18

Banking services are probably the best example of how electronic channels have changed service delivery by introducing self service.
Four types of electronic channels can be distinguished namely:
1. Service machines 2. Telephones 3. Internet channels 4. Mobile channels

Further read on advantages and disadvantages (pg 220-222)