2. What is a service?
• …any act or performance that one party can
offer to another that is essentially intangible
and does not result in the ownership of
anything. Its production may or may not be
tied to a physical product
4. Service quality
• Customers compare the perceived service
with the expected service.
• If perceived service is less than expected
service, customers are disappointed ; may
switch
• If both match, customers are likely to return
• Successful companies do not just satisfy
customers, they delight them
5. Model of service quality
Parameswaran, et. al
• Five determinants of service quality, in order of
importance:
i) Reliability- the ability to perform the promised
service dependably and accurately
ii) Responsiveness-The willingness to help
customers and to provide prompt service
iii)Assurance-The ability of employees to convey
trust, confidence and competence
iv)Empathy-Caring , individualized service
v) Tangibles
7. “Moment of truth”
• The importance of creating a great,
unforgettable customer experience at a
critical or significant service point
• Also referred to as a ‘touch point’
• Popularized by Jan Carlson of SAS
8. Service blueprinting as a technique
for innovation
• Services are processes
• Services as customer experiences
• Service development and design
• 5 components of a typical service blueprint:
i) Customer actions
ii) Onstage/ visible contact employee actions
iii) Backstage/invisible employee actions
iv) Support processes
v) Physical evidence
(Bitner, M., Ostrom, A.,and Morgan,F.,2007)
9. Service excellence
• Create a strategic concept
• Top management commitment to quality
• Set high standards
• Self service technologies
• Systems for monitoring service performance
and customer complaints
• Emphasis on employee satisfaction
10. Internationalization of services
• Services are the fastest growing part of
international trade
• Most literature on internationalization deals
with products; very little on services
• Whatever little research has been done on
internationalization services suggests it is a
highly risky move to make
11. Hard vs Soft services
Soft services Hard services
Require little or no local Require major presence by
presence the exporting firm or local
representative
Architectural design Food services
Education? Health
Life insurance Laundry
Music Hotels and hospitality
12. 5 Main strategies
• Direct export
• Systems export
• Direct entry
• Indirect entry
• Electronic strategies
13. Key issues
• Regardless of what entry mode a firm chooses,
customers must accept services from an
international firm
• Openness to foreign cultures , may support
international services while patriotism and
conservatism may inhibit customer acceptance
• Younger and educated customers are more likely
to accept international services
• Role of local/ national culture critical
