Of Services, a sistematic view

Services Name:

Ronald Santos Cori

Index 1.-

Executive Summary

2.-

Basics Characteristics of services

3.-

Differences between services and products

4.-

Concept of a service

5.-

Servuction

6.-

Service production system (Servuction)

7-

Customer engagement in the service (Servuction)

8.-

Contact personnel

9.-

Physical support

10.-

Conclusions

11.-

Bibliography

1. - Summary In the last decades the ratio of services to product has increased significantly, and development of services in local and global economies has grown so much, that in many countries the production of services has exceeded theproduction of physical goods. It can be observed in statistics, that those countriesin which the level of services increases significantly or its larger that the production of tangible goods are more developed that those who don’t. Therefore the reality of services implies that people, consumers are all imbued in relation to these services that are an important part of the national economy. Services surround people and consumers, in every aspect of their lives, and in processes which satisfy their needs. The fast introduction of services in daily life and the development of products with major service componentmake it vital to understand the development of services, to face a world of innovation and dynamism in different markets, which present significant opportunities and challenges that companies should consider and be willing to accept the challenges this poses. Thesimilaritybetweenproductsandservicesare that they are bothsatisfiers, and their goal is to satisfy a consumers need, alsoit can beseenhow products tend to addservicesinthem, as servicestry toaddtangibility.The maindifferences between products and services (satisfiers),are the intangible characteristic of services, heterogeneity of the services meaning that no one service is equal to another, the fact that are perishable,and the fact that production and consumption are simultaneous. One model for understanding the generation, management and development ofservices was developed in the 1980s. The service delivery system(Servuction) is a marketing concept that describes the process of implementing a service. It was developed by Pierre Eiglier and Eric Langeard in 1987 by combining the words service and production. This theory considers the fundamental or basic services, the differences observed between the services and the products and their process of creation and consumption, the concept of service and its generation (Servuction), relationships and importance of the customer and consumer and contact personnel, physical infrastructure, aspects of development and service features, pricing structures, distribution channels network services, communication. As well as possible strategies to be implemented in the services

2.- Basics Characteristics of services 2.1.-Elements of the production system services (Servuction) The characteristics of services that distinguish them from products, services are intangible, unlike products that are tangible and can be touched and felt.Anothercharacteristicofservices is the heterogeneity of them in comparison with homogeneity of products.Particularly thoseproducts, mass produced will be highly homogeneous, whereas a service is essentially adapted to the circumstances of its use. The perishable nature differentiates the service with the product, which is standing to maintain for a period oftime, however the service cannot be maintained or accumulate, we cannot have an inventory warehouse of services, generating complexity to combine the elements to produce the service if this is required. Finally the fact that unlike the traditional product, the service is consumed at the same time it is produced or serviced. 2.2.-Characteristics of services; Intangibility, perishable, needs the customer The difference between products or tangible goods to services arebased on four key and fundamental aspects: a. The intangibility, which is the fact that services cannot be touched, is the intangible quality that could not be touched b. Perishable, which is the characteristic that when the serviceisprovided itdisappears c. Heterogeneity , which is the characteristicthatno one serviceis similar to the sale service given d. Simultaneous production to consumption, as the service is beingproduced itisconsumedand used. e.

And last, is that service is not property of the client, only the consumer of it

2.3.-Elements Servuction theory, the basis of type 1 and type systems, type 2and 3 Type 1 systems are characterized by the relation that generates de service between two persons, without the involvement of other parties, i.e. aconsultant servicebetween consultant and a client.

The feature type systems 2, are those that the service is generated by the intercourse of a product or physical object with the person (consumer), i.e.wouldbetheuseofa ATM to withdraw cashfromaBank account.

Servuction type systems type 3, this system involves hardware or physical products, persons, the service and the consumer; it is a blending between systems type 1 and systems type 2, i.e. would be the transport of a consumerinabus, beingthebus the physical support, thedriverthecontactpersonnel, andthetransport the service itself.

2.4.-Servuction different systems and complexity, and balance of systems, and its evolution into commercial systems

2.5.-The key elements of production services: client; the hardware; contact personnel; the serviceitself; the system of internal organization and other customers An essential element is the customer service is without the most important, considering that s an element of it, but that ultimately is further assess the degree of satisfaction generated by the service and the perception of quality. This is necessary given the perishable nature of the service and the fact that consumption is simultaneous with the service Servuction Also depending on the type of service different elements of physical infrastructure to collaborate efficiently in the service would be required, so in the case of a hair salon, an element would be the chairs where the consumer will seat to receive the main or basic service. The staff contact is the face and to some degree the tangibilization service is the physical interface between the service and the consumer

2.6.-The relationships between these elements can be of primary type, internal relationships and concomitant The characteristics of the relationships between different elements of Servuction vary according to the design and implementation of Servuction, and finds there is primary type relationships are those that also concomitant internal relations and relations.

3. - Differences between services and products There are clearly many differences between products and service, but also similarities. In this case we must consider that both products and services aims to meet the needs of consumers and customers, and both can have a component of the other, a product can have a service component (ie post service guarantees) as well as a service may have a product component to make tangible and incorporate elements of it. In fact in some cases it becomes difficult to determine whether this against a product or service

From the basic characteristics of the services we can see the differences between services and products.

1. Intangibility this characteristics implies that the service cannot be touched or felt, so the servuctor or producer of the service must consider all elements that can assure the satisfaction of the consumer, and reduce the possibilities of cognitive dissonance due to the post service feeling of the consumer. One way to reduce this is to considering adding tangible elements to the services

2. Perishability,this characteristic explains the fact that once applied the service it cannot be applied again, even to the same customer. It would be a different service. Also it states the inability to accumulate and store the services in a warehouse. It is align with the nature of the intangibility of the service

3. Heterogeneity,this characteristic of the service establishes that each one of them is different, even if you applied the same basic service to the same consumer. This characteristic is especially important in considering technical quality of the service

4. Simultaneous production and consumption. This characteristic is essentially different from traditional products that can be used when needed. In the service case since one of the fundamental parts of it, is the collaboration of the consumer that when the service its applied, and servucted, to the consumer, this means that while the service is being produce by the Servuction company, at the same time it is consumed by the user or consumer of the service

4.- Concept of a service Definition of a service:

“It is an activity, event or performance, designed to satisfy a need, applied to a person or object, which is valued by a person or group of persons who receive this benefit for them.”(Eiglier)

“It is an activity, event or performance, designed to satisfy a need, applied to a person or object, which is valued by a person or group of persons who receive this benefit for them.”

“In economics, a service is an intangible commodity. Services are an example of intangible economic goods. Service provision is an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership of the thing purchased. The benefits of such a service, if priced, are held to be self-evident in the buyer's willingness to pay for it.” (Source Wikipedia)

“Intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation. Sometimes services are difficult to identify because they are closely associated with a good; such as the combination of a diagnosis with the administration of a medicine. No transfer of possession or ownership takes place when services are sold, and they (1) cannot be stored or transported, (2) are instantly perishable, and (3) come into existence at the time they are bought and consumed.” (source: www.businessdictionary.com)

“A type of economic activity that is intangible is not stored and does not result in ownership. A service is consumed at the point of sale. Services are one of the two key components of economics, the other being goods. Examples of services include the transfer of goods, such as the postal service delivering mail, and the use of expertise or experience, such as a person visiting a doctor.” (Source: www.investorwords.com)

5.- Servuction The concept of Servuction is generated from the concept of the action to produce a service, if we consider that the action of producing a product is known as production, equal action of producing a service should be considered a Servuction.

The model developed by the authors Pierre Eiglier and Eric Langeard, allows to understand and visualizes complex concepts, using models based on general systems theory.

Establishing and developing services base on a system theory considering inputs, process and output (the service)

With this model service to consumers can be build and develop, at a level of quality known and accepted, with a level of homogeneity and standardized and known processes.

The model considers the elements that generate the service which area basically the (1) customer, the (2) service, the (3) contact personnel and (4) physical support, and also the (5) relations generated between these elements

6. - Service production system (Servuction) The production of a service begins with its design, based on the model Servuction considering the elements that are incorporated in, such as physical infrastructure, personal contact, the consumer, and the service itself. The service production system must consider in its design the input it will require delivering, also the process that it will apply to the inputs and the resulting outcome or service that would generate the process.

One key element in controlling that the outcome is what is intended to be is to control the quality of the inputs both in homogeneity and grade, the process that its applied both in grade and homogeneity, and at last the resultingoutcomeboth in homogeneity and grade.

The systems must consider the flow of activities and the relations between each element of the process

7- Customer engagement in the service 7.1.- Customer Participation Consumer participation in service is critical because among other things the consumer or client, generates the income, the consumer evaluates the quality, specially the relation of the promised service versus the services received, also the consumer generates the value of the service implying the range of price that the service can move in between, and value of the relationship as well as the quality delivered, perceived and quality desired or expected. Topics of communication, service, and distribution pricing service delivery are essential to achieve this mix align with business goals to generate consumer satisfaction and that the organization remains in the long run also generates satisfaction in their users and consumers 7.2.-Environment involvement Considering the degree of participation: such as culture, location service, consumer behavior and the degree of dominance The environment is fundamentals to consider the processes that affect Servuction service output such as culture, location aspects of service delivery, as well as related consumer behaviors, attitudes and makes the service the servuctor 7.3.- Dimensions of participation Participation in relation to the assets customers, service location and time spent, on a bidimentional analysis it can be compared with the degree of implication required from the consumer and the degree of implication of the consumer 7.4 Active participation Active participation as a criterion for segmentation as a global approach Servuction control, and customer education and contact personnel, it considers the amount of effort that the consumer must endure to receive the service, considering three dimensions, the degree of participation in the service, and the degree of implication in the service, and participation versus domination in the service.

Participation versus implication

Participation versus domination

8. - Contact personnel 8.1. - Functions of the contact personnel The contact personnel, are the company people, that have direct contact with the consumer or client, they represent to the eyes of the consumer the face of the company, they are the interface that relates the Servuction Company with the consumer, also they can arbitrate between the needs of the company and those of the client 8.2. - Operational and relational functions Operational functions given by the precise instructions to follow personal and relational given by the elements and visible, gestural, and verbal features in addition to consider is the face of the company to see the client, so that the role is both operational and relational 8.3. - Setting styles Styles that allow staff contact identified and differentiated developing a sense of belonging to the company to create value for themselves and for the customer, optimizing labor costs and in turn valuing work and the status of the contact personnel 8.4. - Facilitators services Facilitators Servuction that is intended to facilitate the work of staff contact organizing them based on defining and learning the functions and limited customer arbitrations 8.5.-Contact personnel Recognition Recognition of the contact personnel, considering that their behavior will be fundamental in the success or failure of Servuction. Considering these effects for operational oversight, staff daily contact and the influence of supervisors and staff contact and as influencers in personal contact

9. - Physical support 9.1.-Physical support elements of Servuction

These elements are physical elements that are used to perform the service; they can be considered as infrastructure, tools, hardware

9.2. - Hardware or physical support Functions

Hardware and physical support functions and their implications for processes Servuction, they are elements that help to perform the service in a manner that the service is made possible, or adding value to the Servuction, by being considered as an attribute by the consumer, or helping the contact personnel to achieve the service in a proper manner. 9.3. - The Cabinet-Factory

This concept outlines the situation that a Servuction company has in the same physical area the factory and the showroom or showcase, counter. Especially considering that everything speaks out in a service, this area should be align with the Servuction process and the showroom concept, manufactured since the hardware at a time will be a communication tool as the tool to make the loo services that must be functional and harmonious with the environment 9.4.-Space Management

Space management, physical environment and management Servuction flows, giving the space the flexibility to process optimization 9.5.-Time management

Time management, size, and hours of operation, its sensitivity to customers and staff, speed of process Servuction Fundamental problems in time management such as the appropriate time, the minimum time, and the equilibrium relationship between the individual time spent on a client and total time spent on a client group

9.6.-Service Automation Service automation and low but growing importance of services, different equipment for different markets (ATM), logistics, new media such as robots preset sequence, variable sequence, memory, digital control of artificial intelligence, and fully automated.

9.7.-Capacity Management Capacity management Servuction and problems of the organization to achieve greater efficiencies in processes Servuction, excess demand, underutilization of capacity Servuction, and actions that can be taken in different situations.

10.-

Conclusions

As services are more important in local and international markets its implication on operation and strategy on broad markets increase its importance Service are different from tangible goods, so they must be analyzed in a different way that tangible goods are developed and delivered to the markets, specially considering the differences in the marketing mix that should be applied to each of them A model of studying the production of services that was developed By professors Eiglier and Langeard, based on the System Theory is a method of understanding the creation of services and its implication in the marketing policies that can be applied top them, considering the develop of services, structural pricing methods, networking and promotion of services To understand them, develop and manage successful services their basic characteristics and differences with tangible good must be understood and differentiated so the proper operational and strategic policies con be applied The Servuction process of developing and offering services considering the analysis of the involvement of the customer or client in the service, as well as the contact personnel, physical support, the service itself. Considering the activities don in the front office and the back office of the Servuction of these services Therefore the knowledge of service providing would be a important tool for professionals that would have to deal with services and with products that involve a component of service

11.-

Bibliography

Main: 1.-Título

Servucción: el marketing de servicios Serie McGraw-Hill de management

Autores

Pierre Eiglier, Eric Langeard

Traducido por

Alejandro MolláDescals

Editor

McGraw-Hill, 1989

ISBN

8476153279, 9788476153277

N.º de páginas

220 páginas

2.Lovelock, Christopher H Mercadotecnia de Servicios México, Pearson – Prentice Hall, 3ª Edición, 1997

Secondary: 1.Services marketing : integrating customer focus across the firm Valarie A. Zeithaml, Mary Jo Bitner, Dwayne D. Gremler- 4th ed Author(s) Zeithaml, V.A. ;Bitner, M.J ; Gremler, D.D. Publisher Boston, MA : McGraw-Hill/Irwin 2.Services Marketing: Concepts, Strategies, & Cases K. Hoffman,John Bateson 3.Services Marketing: Text And Cases Escrito porVerma