PIECING TOGETHER SERVICE QUALITY: A FRAMEWORK FOR ROBUST SERVICE*

This paper addresses the issue of service design, specifically that of designing the service encounter for improved quality. We introduce a framework based on the three T's of task, treatment, and tangibles as a means of organizing the application of the diverse and growing body of service quality literature to encounter design. The framework is consistent with how successful service managers disaggregate the design problem. More importantly, we show that mutually supportive interrelationships between the three T's produce an opportunity for designing in a robustness to service failure. The framework is supported by case based evidence.     

Modeling the Effects of a Service Guarantee on Perceived Service Quality Using Alternating Conditional Expectations (ACE)*

This paper addresses the dearth of empirical research on the relationship between service guarantee and perceived service quality (PSQ). In particular, we examine the moderating effects of a service guarantee on PSQ. While a recent study provided empirical evidence that service quality is affected by service guarantee and employee variables such as employee motivation/vision and learning through service failure, the nature and form of the relationships between these variables remain unclear. Knowledge of these relationships can assist service managers to allocate resources more judiciously, avoid pitfalls, and establish more realistic expectations. Data was obtained from employees and customers of a multinational hotel chain that has implemented a service guarantee program in 89 of its hotels in America and Canada. As the employee variables could affect performance in a non‐linear fashion, we relaxed the assumption of model linearity by using the Alternating Conditional Expectations (ACE) algorithm to arrive at a better‐fitting, non‐linear regression model for PSQ. Our findings indicate the existence of significant non‐linear relationships between PSQ and its determinant variables. The ACE model also revealed that service guarantee interacts with the employee variables to affect PSQ in a non‐linear fashion. The non‐linear relationships present new insights into the management of service guarantees and PSQ. Explanations and managerial implications of our results are presented and discussed.     

EMPLOYEE DEVELOPMENT: AN EXAMINATION OF SERVICE STRATEGY IN A HIGH‐CONTACT SERVICE ENVIRONMENT

A critical component of service strategy in high‐contact environments is service encounter management. Effective service encounters are a result of the quality of employee development, including systems for work and job design, training and development, and attention to employee well being. Results of empirical analysis indicate that service strategies reflecting the dimensions of employee development drive employee outcomes such as productivity and satisfaction. Employee outcomes are significantly associated with customer satisfaction, but only some linkages to financial performance are significant. This study illustrates the importance of employee development in service strategy design for managing service encounters in high contact service environments.     

RESOURCE ALLOCATION TO IMPROVE SERVICE QUALITY PERCEPTIONS IN MULTISTAGE SERVICE SYSTEMS

Service quality improvement has become an imperative in today's service firms. In this paper, we present a modeling framework that combines marketing and operations viewpoints for resource allocation. The framework can be used to allocate resources to the different stages of a multistage service system, where the manager's goal is to improve customers' perceptions of service quality, given some budget. Optimal allocation guidelines are provided, and the interplay of three factors on the resulting allocation scheme is captured. These factors are the current level of customers' perceptions of service quality at each stage, the cost of implementing a service quality improvement at each stage, and the importance placed by customers at each stage. Sensitivity analysis to provide additional managerial insights is also performed. We demonstrate the applicability of the modeling framework, using data from a real life health care environment. Model limitations and future research are also discussed.     

THE MARKET SHARE IMPACT OF SERVICE FAILURES

This paper develops a simple but powerful model that relates service satisfaction/dissatisfaction to market share. The model is based on an intuitive service satisfaction framework that relates three service system parameters (service success rate, complaint rate, and service recovery rate) to the percent of satisfied customers. A dynamic model is then posited that relates the defection rate and the addition rate to market share changes. The service satisfaction/market share model yields useful insights into how market share is influenced by these service system parameters. The surprisingly simple model predicts changes in market share due to changes in customer satisfaction.     

A MARKET UTILITY‐BASED MODEL FOR CAPACITY SCHEDULING IN MASS SERVICES

Only a small set of employee scheduling articles have considered an objective of profit or contribution maximization, as opposed to the traditional objective of cost (including opportunity costs) minimization. In this article, we present one such formulation that is a market utility‐based model for planning and scheduling in mass services (MUMS). MUMS is a holistic approach to market‐based service capacity scheduling. The MUMS framework provides the structure for modeling the consequences of aligning competitive priorities and service attributes with an element of the firm's service infrastructure. We developed a new linear programming formulation for the shift‐scheduling problem that uses market share information generated by customer preferences for service attributes. The shift‐scheduling formulation within the framework of MUMS provides a business‐level model that predicts the economic impact of the employee schedule. We illustrated the shift‐scheduling model with empirical data, and then compared its results with models using service standard and productivity standard approaches. The result of the empirical analysis provides further justification for the development of the market‐based approach. Last, we discuss implications of this methodology for future research.     

PRODUCT AND SERVICE QUALITY: THE ANTECEDENTS OF CUSTOMER LOYALTY IN THE AUTOMOTIVE INDUSTRY

Prior literature has examined product quality and service quality separately as antecedents of customer loyalty. In the context of the automotive industry, we present a framework that examines the simultaneous impact of product and service quality on consumers' purchase intentions. The framework is operationalized as several hypotheses that posit relationships between service quality, service satisfaction, product quality, and customer loyalty. The hypotheses are tested using three sources of data: (i) archival data on product quality and customer purchases, (ii) consumersíresponses to a survey instrument, and (iii) Consumer Reports. Results indicate general support for main hypotheses proposed.     

THE MALL IS MY FACTORY: REFLECTIONS OF A SERVICE JUNKIE

This paper presents a personal perspective on the history, current research, and emerging topics in the field of Service Operations Management. I see research in the field evolving from a focus on classifications and operations research models in the 1970s and 1980s, to a current focus on laboratory studies, and survey- and case-based research. Selected current research is presented under the following headings: Service encounter design, service quality, drivers of service competitiveness, yield management, and the information revolution and the globalization of services. Examples of creativity in service delivery and some whimsical characteristics of service junkies are also presented.     

A DYNAMIC PROCESS MODEL OF DISSATISFACTION FOR UNFAVORABLE,NON-ROUTINE SERVICE ENCOUNTERS

This paper explores the effect of expectations and information on customer dissatisfaction in unfavorable, nonroutine service encounters. In complex services (e.g., health care) with multiple encounters and wide range of services, customers use some of the services rarely or only once. In such encounters, customers may not have clear expectations regarding the process and/or outcome of the impending service delivery. This may increase the likelihood of the customer to perceive poor service or be dissatisfied. Hypotheses regarding the nature of expectations—levels, uncertainty, consistency—and its affects on customer dissatisfaction are tested using a dynamic process model of customer dissatisfaction.     

ADAPTING THE QFD APPROACH TO EXTENDED SERVICE TRANSACTIONS

This paper proposes an adaptation of quality function deployment (qfd) for services, more specifically extended service transactions. We propose two modifications to service applications of Qfd. One is the inclusion of higher-level customer needs (consequences, benefits, experiences, and personal values) to incorporate the experiential and personal nature of extended service transactions into the process. The second modification is to use customers' knowledge and expertise regarding service production and delivery as input beyond the house of quality. An interviewing method is proposed for a comprehensive assessment of customer needs at multiple levels. Results from an empirical application of this technique to luxury business hotels support the proposed modifications to Qfd to increase its potential for application to services.     

SERVICE SYSTEM DESIGN FOR THE PROPERTY AND CASUALTY INSURANCE INDUSTRY

This paper describes the changes that are forcing property and casualty insurance firms to rethink their service system design and in particular their distribution strategies. A set of questions related to distribution that are uppermost in the minds of executives in this industry are presented along with a literature survey of models that can be used to answer some of these questions. Based on the survey, a normative framework for designing the distribution system is proposed. Qualitative and quantitative analysis based on the proposed framework is presented along with empirical data to demonstrate the usefulness of the framework. The paper concludes with an agenda for further research.     

SERVICE-BASED MANUFACTURING: THE SERVICE FACTORY

Evidence suggests that factory-based service will become the next form of competition among manufacturers. If this is true, then manufacturing executives will have to obtain a clear understanding of the service capabilities of their plants and adjust their strategies accordingly. We define a set of factory-based services, information, problem solving, sales, and support, and suggest that they be considered in developing manufacturing strategy. Several propositions provide a framework for future research by linking service performance variables to conventionally accepted manufacturing performance variables.     

GREENING THE SERVICE PROFIT CHAIN: THE IMPACT OF ENVIRONMENTAL MANAGEMENT PRACTICES

This paper explores the relationship between environmental practices and performance in services and the impact of such practices on the external portion of the service profit chain. Using structural equation modeling, it tests the hypotheses developed with data from the European hospitality industry. The findings suggest that environmental practices are positively related to performance through the mediating effect of enhanced customer satisfaction and loyalty. The paper's contributions include: the conceptual development of the relationship between environmental practices and performance in services, the incorporation of environmental practices within the service profit chain, and the testing of their impact on customer satisfaction.     

THE IMPACT OF HUMAN ERROR ON DELIVERING SERVICE QUALITY

This paper opens a new avenue for investigation of quality issues in services. We take the viewpoint that a substantial portion of service failures is the result of human error in the delivery process. Drawing upon the Generic Error Modeling System (gems) from the cognitive science literature, we develop a framework for understanding the role of human error in service failures. An empirical investigation assesses the applicability of this framework to services, identifies which error mechanisms are important sources of service failure, and clarifies how the different roles of customers and providers affect the errors made by each.     

AMPLIFICATION IN SERVICE SUPPLY CHAINS: AN EXPLORATORY CASE STUDY FROM THE TELECOM INDUSTRY

Evidence on the impact of amplification effects on supply chain performance primarily has been derived from studies in manufacturing industries. In this article we reported on a case study from the telecommunication industry and aimed to analyze relevant root causes and associated countermeasures of the amplification phenomenon in service supply chains. Our case findings confirm the occurrence of upstream amplification of workload in the service supply chain, workload being a more appropriate measure for amplification effects in service supply chains than inventory levels. Not all of the root causes for amplification effects known from research in manufacturing environments were found to apply in this particular service context, especially those related to the use of inventory. In addition, our telecom case study highlighted a new root cause for amplification: interactions of high workloads and reduced process quality that start reinforcing each other once workloads pass a certain threshold. In this particular case, many of the known countermeasures to eliminate amplification did not apply, because of the specific characteristics of the service process, or yielded only limited results. A potentially very powerful countermeasure identified was to implement quality improvements throughout the service chain. This quality dimension links our research to the literature on service management in general, where service quality is on top of the research agenda.     

Employee motivation in product-service system providers

This research investigates how intrinsic and extrinsic motivation factors contribute to employee motivation in providers of product-service systems (PSS). Employee motivation determines the quality of the delivered service and is thus an area of great importance for PSS providers. We present rich case-based data collected through semi-structured interviews, a survey and secondary sources. The analysis showed the particularly high importance of intrinsic and individual motivation factors such as the fulfilling nature of the work and skill development showing the ownership and pride service employees took in their work. Further, the organisation needs to set the context of high employee motivation by enabling flexibility and performance feedback. Our research contributes to the literature by providing a first empirical study of employee motivation in PSS providers and thus providing important insights on the implementation of a servitisation strategy.     

组织支持对人力资源措施和员工绩效的影响

通过两项研究,对中国企业情境下员工感知到的组织支持、人力资源管理措施和个人绩效的关系进行了探讨.采用因子分析和回归分析等方法对来自合资,国有,私有等企业的员工及其主管的问卷调查结果进行了数据分析.结果表明:这些企业的人力资源管理措施可以分为保健措施和激励措施两大类.保健措施包括:员工福利、工作环境改善、工作保障、员工薪酬、员工关怀计划;激励措施包括员工培训、职业发展规划.保健措施和激励措施与感知到的组织支持存在交互作用,共同影响员工个人绩效.保健措施对员工绩效的正向影响作用在低水平感知到的组织支持下更显著,激励措施则在高水平感知到的组织支持下具有更显著的正向影响.     

POWER APPROXIMATIONS FOR A TWO-ECHELON INVENTORY SYSTEM USING SERVICE LEVELS

We consider a two-echelon inventory system with one warehouse and several stores. The warehouse as well as the stores are controlled by periodic review (s, S) inventory policies. We study the interrelationship between the safety stocks at the warehouse and the stores. Stockouts at the warehouse will result in supply delays to the stores and cause the lead time to be stochastic. The stores may react by increasing their safety stock. However, there is a trade-off between the safety stock at the warehouse and the safety stock at the stores. We use a service level at the warehouse to quantify the effect of warehouse stockouts on the lead time to the stores. The service level at the warehouse is considered a decision variable to find the best compromise between the various safety stocks by minimizing the overall costs. Using power approximations for the (s, S) policies, we provide an iterative procedure for adjusting the lead time distribution to the stores; this can result in substantial savings, but it doesn't guarantee the overall optimality. Numerical studies are provided to test the accuracy of approximations. The effects of the different system parameters on the inventory policy give general guidelines for use of the policies.     

SERVICE PROCESS CONFIGURATIONS IN ELECTRONIC RETAILING: A TAXONOMIC ANALYSIS OF ELECTRONIC FOOD RETAILERS

We developed a taxonomy of service processes in electronic retailing using data from 255 electronic food retailers. The taxonomy is comprised of eight service process configurations. Analysis of publicly available data on on‐line customer ratings for 52 retailers in the study sample shows that the ordering of the configurations in the taxonomy on a continuum of low to high flexibility is associated positively with (i) customer satisfaction with web site aesthetics, web site navigation, product selection, product information, customer support, and ease of return, and (ii) customer loyalty.     

APPOINTMENT POLICIES IN SERVICE OPERATIONS: A CRITICAL ANALYSIS OF THE ECONOMIC FRAMEWORK

In this paper we review the literature on appointment policies, specifically in terms of the objective function commonly used and the assumptions made about the behavior of demand. First, we provide an economic framework to analyze the problem. Based on this framework we make a critical analysis of the objective functions used in the literature. We also question the validity of the assumption made throughout the literature that demand is exogenous and independent of customers' waiting times. We conclude that the objective functions used in the literature are appropriate only in the case of a central planner facing a demand that is unresponsive to waiting time. For other scenarios, such as a private server facing a demand that does react to waiting time, these objective functions are only shortcuts for the real objective functions that must be used. A more general model is then proposed that fits these scenarios well. Finally, we determine the impact of using the literature's objective functions on optimal appointment policies.