service management 1

Question 1

What are the distinct characteristics of services?

Answer 1

C – Customer Participation

• Customers are part of the service process
• Their actions/attitudes affect outcomes
• E.g. self-checkout, online banking, medical visits

H – Heterogeneity

• Service varies across customers, staff, and time
• Harder to ensure consistency
• E.g. same haircut, different experience each time

I – Intangibility

• Services can’t be touched, seen, or tried before buying
• Customers rely on brand, reviews, and trust
• E.g. you can’t “test” a dentist visit before you go

P – Perishability

• Services can’t be stored or saved
• Unused capacity = lost revenue
• E.g. an empty airline seat = lost forever

S – Simultaneity

• Services are produced and consumed at the same time
• Can’t be inventoried like products
• E.g. haircut happens in real-time with customer present

Question 2

What is a service package?

Answer 2

A service package is the total experience a customer gets with five layers the service experience at its core.

Question 3

What are the 5 layers of a service package

Answer 3

1. Supporting Facility
   
   • Physical space/equipment needed before service
   • E.g. golf course, hospital, plane
2. Facilitating Goods
   
   • Items used or consumed during service
   • E.g. skis, food, toiletries, documents
3. Information
   
   • Data used to customize/improve service
   • E.g. medical records, maps, past preferences
4. Explicit Services
   
   • Visible/tangible benefits
   • E.g. no pain after dental work, fast taxi
5. Implicit Services
   
   • Emotional/psychological benefits
   • E.g. prestige of a university, feeling secure

Question 4

Why is Service package important?

Answer 4

• Customers judge the whole experience (not just the service)
• E.g. In a restaurant: atmosphere + food = full experience
• Small things like staff attitude or waiting time can shape opinions