Amity Business School

MARKETING OF SERVICES

Module III
Aligning Strategy, Design and Delivery
Service Blueprinting, Role of Technology in Services, Self
service technologies, Operational service product designing and
adding value, Evidence of Service and Servicescape, The
Service Triangle, Gaps Model, Strategies for closing the gaps.
Ramesh Bagla

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Service Blueprinting
Service blueprint is a picture or map that
accurately portrays the service system so
that different people involved in providing it
can understand and deal with it objectively
regardless of their individual point of view.
Particularly useful at design and redesign
stages of service development.
It provides a way to break the service into
logical components and to depict the steps or
tasks in the processes, the means by which
they are executed and evidence of the
service as consumer experiences it.
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Service Blueprinting
Service-Blueprinting is a service planning
help tool.
It can be used for developing new
innovative services as well as for improving
existing services.
The method is also appropriate for ensuring
the quality of service processes.
It can also be used for new employee
training or for showing clients a service
cycle overview. 3
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Service Blueprinting
It is a tool for simultaneously depicting the
service process, the points of customer contact,
and the evidence of service from the customers
point of view.
Process

Service Points of Contact

Mapping
Evidence
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Blueprint Components
Customer actions: it includes steps, choices,
activities and interactions that customer
performs in the process of purchasing,
consuming and evaluating the service
Onstage employee actions: steps and
activities that the contact employees perform
that are visible to the customer.
Backstage employee actions: steps and
activities that occur behind the scene to
support onstage activities.
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Blueprint Components

Support processes: covers the internal

services, steps and interactions that take
place to support the contact employees in
delivering the service.
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Blueprint Components

CUSTOMER ACTIONS
line of interaction

ONSTAGE CONTACT EMPLOYEE ACTIONS

line of visibility

BACKSTAGE CONTACT EMPLOYEE ACTIONS

line of internal interaction

SUPPORT PROCESSES
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Building a Service Blueprint

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Identify the Identify the Map the Map Link Add

process to customer process contact customer evidence
be blue- or from the employee and contact of service
printed. customer customers actions, person at each
segment. point of onstage activities to customer
view. and back- needed action
stage. support step.
functions.
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Bank Lending Operation

Loan application Branch Officer Pay book
30min--1hr.
===
==== ===== $ 0 $ ==== =====
====
w
w
Line of visibility
Receive Final
Decline Notify Payment payment
customer
Deny Issue
F Confirm
check F
Verify
Print
income Credit Close
Accept payment Delinquent
data check account
1 day 2 days 3 days book
Initial F
screening
Verify
payer
Employer Credit
F Branch
bureau
records
Bank F
accounts F
Accounting
Data base
records

F Fail point Customer wait Employee decision

W
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Application of Service Blueprints

New Service Development
concept development
market testing
Supporting a Zero Defects Culture
managing reliability
identifying empowerment issues
Service Recovery Strategies
identifying service problems
conducting root cause analysis
modifying processes
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Blueprints Can Be Used By:

Service Marketers Human Resources
creating realistic customer empowering the human
expectations element
service system design job descriptions
promotion selection criteria
appraisal systems
Operations Management
rendering the service as
promised System Technology
managing fail points providing necessary tools:
training systems system specifications
quality control personal preference databases
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Advantages of Blueprinting
Distinction between frontstage and
backstage activities
Clarity about interactions and support by
backstage activities and systems
Identification of potential fail points; take
preventive measures; prepare contingency
Pinpointing of stages where customers
commonly have to wait

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Role of Technology in the Service Encounter

Technology Technology Technology

Customer Server Customer Server Customer Server

A. Technology-Free B. Technology-Assisted C. Technology-Facilitated

Service Encounter Service Encounter Service Encounter

Technology Technology

Customer Server Customer Server

D. Technology-Mediated E. Technology-Generated
Service Encounter Service Encounter
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Levels of Service Innovation

Radical Innovations
Major Innovation: new service driven by information and
computer based technology
Start-up Business: new service for existing market
New Services for the Market Presently Served: new
services to customers of an organization
Incremental Innovations
Service Line Extensions: augmentation of existing service
line (e.g. new menu items)
Service Improvements: changes in features of currently
offered service
Style Changes: modest visible changes in appearances
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Technology Driven Service Innovation

Power/energy - International flights with jet

aircraft
Physical design - Enclosed sports stadiums
Materials - Astroturf
Methods - JIT and TQM
Information - E-commerce using the Internet
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New Service Development Cycle

Full-scale launch
Post-launch review

Full Launch Enablers Development

Formulation
of new services
objective / strategy
People
Idea generation
Service design
and screening
and testing
Concept
Process and system
development and
design and testing Product testing
Marketing program
design and testing
Personnel training Technology Systems
Service testing and
pilot run
Test marketing Tools

Design Analysis
Business analysis
Project authorization
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Service Blueprint of Luxury Hotel

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Structural Alternatives for a Restaurant

LOWER COMPLEXITY/DIVERGENCE CURRENT PROCESS HIGHER COMPLEXITY/DIVERGENCE

No Reservations TAKE RESERVATION Specific Table Selection

Self-seating. Menu on Blackboard SEAT GUESTS, GIVE MENUS Recite Menu: Describe Entrees & Specials
Eliminate SERVE WATER AND BREAD Assortment of Hot Breads and Hors Doeuvres
Customer Fills Out Form TAKE ORDERS At table. Taken Personally by Maltre d
PREPARE ORDERS

Pre-prepared: No Choice Salad (4 choices) Individually Prepared at table

Limit to Four Choices Entree (15 choices) Expand to 20 Choices: Add Flaming Dishes;
Bone Fish at Table; Prepare Sauces at Table
Sundae Bar: Self-service Dessert (6 choices) Expand to 12 Choices

Coffee, Tea, Milk only Beverage (6 choices) Add Exotic Coffees; Sherbet between
Serve Salad & Entree Together: SERVE ORDERS Courses; Hand Grind Pepper
Bill and Beverage Together

Cash only: Pay when Leaving COLLECT PAYMENT Choice of Payment. Including House Accounts:
Serve Mints
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Self-Service Technologies (SSTs)

SSTs are the ultimate form of customer
involvement where customers undertake
specific activities using facilities or systems
provided by service supplier
Customers time and effort replace those of
employees

Information-based services lend selves

particularly well to SSTs
Used in both supplementary services and delivery of
core product
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Technology has led to the Evolution of Self-service

Service Industry Human Contact Machine Assisted Service Electronic Service

Banking Teller ATM Online banking

Grocery Checkout clerk Self-checkout station Online order/ pickup

Airlines Ticket agent Check-in kiosk Print boarding pass

Restaurants Wait person Vending machine Online order/ delivery

Movie theater Ticket sale Kiosk ticketing Pay-for-view

Book store Information clerk Stock-availability terminal Online shopping

Education Teacher Computer tutorial Distance learning

Gambling Poker dealer Computer poker Online poker

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Self-Service Technologies (SSTs)

Many companies and government
organizations seek to divert customers from
employee contact to Internet-based SSTs
ssSSSSSTselfservi
Advantages: Disadvantages:
Time and Cost savings Anxiety and stress
experienced by
Flexibility
customers who are
Convenience of location uncomfortable with
using them
Greater control over
service delivery Some see service
encounters as social
High perceived level of experiences and prefer
customization to deal with people
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What Aspects Of SSTs Please Or Annoy Customers?

People love SSTs when People hate SSTs when

SST machines are conveniently
located and accessible 24/7 often
as close as the nearest computer!
Obtaining detailed information and
completing transactions can be done
faster than through face-to-face or
telephone contact
SSTs fail system is down, PIN
numbers not accepted, etc.
Customers themselves mess up
forgetting passwords; failing to
provide information as requested;
simply hitting wrong buttons

Key weakness: Few firms incorporate service recovery systems

such that customers are still forced to make telephone calls or
personal visits
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Simple Questions to test SSTs

Does the SST work reliably?
Firms must ensure that SSTs are dependable and
user-friendly

Is the SST better than interpersonal

alternatives?
Customers will stick to conventional methods if SST
doesnt create benefits for them

If it fails, what systems are in place to recover?

Always provide systems, structures, and
technologies that will enable prompt service
recovery when things fail
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Managing Customers Reluctance to Change

Increasing customers participation level in a

service can be difficult

Marketing communications to be used to:

Prepare customer for change
Explain the rationale and benefits
What customers need to do differently in the
future
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Purpose of Service Environments

Shape customers experience and their
behaviors

Support image, positioning, and

differentiation

Part of the value proposition

Facilitate service encounter and enhance

productivity
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Shape customers experience and behaviors

Message-creating medium
symbolic cues to communicate the distinctive
nature and quality of the service experience

Attention-creating medium
make servicescape stand out from competition
and attract customers from target segments

Effect-creating medium
use colors, textures, sounds, scents, and spatial
design to enhance desired service experience
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Support Image, Position and Differentiation

Orbit Hotel and Hostel Four Seasons Hotel

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Servicescape as Part of Value Proposition

Physical surroundings help shape
appropriate feelings and reactions in
customers and employees
e.g., Disneyland, Kingdom of Dreams

Servicescapes form a core part of the value

proposition
Regal vs. PVR
Big Bazar vs. Emporio
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The Mehrabian-Russell Stimulus-Response Model

Feelings Are a Key Driver of Customer Responses to
Service Environments

Dimensions of Response/Behaviors:
Environmental Affect:
Approach Avoidance
Stimuli and Cognitive
Pleasure and & Cognitive
Processes
Arousal Processes
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Insights from Mehrabian-Russell Stimulus-Response Model

It is a simple yet fundamental model of how people respond to

environments that illustrates:

The environment, its conscious and unconscious perceptions, and

interpretation influence how people feel in that environment

Feelings, rather than perceptions/thoughts drive behavior

Typical outcome variable is approach or avoidance of an

environment, but other possible outcomes can be added to model
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An Integrative Framework: The

Servicescape Model
Identifies the main dimensions in a service
environment and views them holistically

Internal customer and employee responses can

be categorized into cognitive, emotional, and
psychological responses, which lead to overt
behavioral responses towards the environment

Key to effective design is how well each

individual dimension fits together with
everything else
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Dimensions of the
Service Environment
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Main Dimensions in Servicescape Model

Ambient Conditions
Characteristics of environment pertaining to our five
senses

Spatial Layout and Functionality

Spatial layout:
- floorplan
- size and shape of furnishings
Functionality: ability of those items to facilitate
performance

Signs, Symbols, and Artifacts

Explicit or implicit signals to:
help consumers find their way
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Ambient Conditions
Ambient conditions are perceived both
separately and holistically, and include:
Lighting and color schemes
Size and shape perceptions
Sounds such as noise and music
Temperature
Scents

Clever design of these conditions can elicit

desired behavioral responses among
consumers
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Music
In service settings, music can have powerful effect on
perceptions and behaviors, even if played at barely
audible levels

Structural characteristics of musicsuch as tempo,

volume, and harmonyare perceived holistically
Fast tempo music and high volume music increase
arousal levels
People tend to adjust their pace, either voluntarily or
involuntarily, to match tempo of music

Careful selection of music can deter wrong type of

customers
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Scent
An ambient smell is one that pervades an
environment
May or may not be consciously perceived by customers
Not related to any particular product

Scents have distinct characteristics and can be used

to solicit emotional, physiological, and behavioral
responses

In service settings, research has shown that scents

can have significant effect on customer perceptions,
attitudes, and behaviors
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Aromatherapy: Effects of Selected

Fragrances on People
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Colour
Colours can be defined into three dimensions:
Hue is the pigment of the colour
Value is the degree of lightness or darkness of the colour
Chroma refers to hue-intensity, saturation, or brilliance

People are generally drawn to warm colour

environments
Warm colours encourage fast decision making and are
good for low-involvement decisions or impulse buys
Cool colours are preferred for high-involvement
decisions
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Common Associations and

Human Responses to Colours
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Signs, Symbols, and Artifacts

Communicates the firms image and helps customers find their
way
First time customers will automatically try to draw meaning from the signs,
symbols, and artifacts

Challenge is to guide customer through the delivery process

Unclear signals from a servicescape can result in anxiety and uncertainty
about how to proceed and obtain the desired service
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Putting It All Together

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Selection of Environmental
Design Elements
Consumers perceive service environments
holistically
No dimension of design can be optimized in
isolation, because everything depends on
everything else
Holistic characteristic of environments makes
designing service environment an art
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Tools to Guide Servicescape Design

Keen observation of customers behavior and responses

Feedback and ideas from frontline staff and customers

Photo audit Mystery Shopper to take photographs of service

experience

Field experiments can be used to manipulate specific dimensions

in an environment and the effects observed

Blueprinting or service mapping extended to include physical

evidence in the environment