Service Design
5. The service design process enables the necessary systematic planning to take place,
particularly when it uses the tools and tech- niques examined at the end of this chapter, and an integrated and unified approach to its operations.
The challenge in all operations is to achieve a balance between maximizing customer satisfaction and the optimum use of resources, the two ostensibly conflicting objectives of service operations. Good service design ensures that resources are allocated as effectively as possible and that this occurs within a cross-functional and integrated approach, although Johnston (1999) urged organizations not to ignore the core disci- plines in such a process.
Service Design as an Integrated Approach
Just as quality management should be an integration of service marketing, operations and human resources management, service design should be seen as a total process combining functions and adopting a certain approach. A number of observers have dem- onstrated how achieving service quality depends on the integrating and unifying function of the service design process
(Kingman-Brundage et al., 1995; Stuart and Tax, 1996; Normann, 2000; Titz, 2001). The term ‘total design’ is often used to highlight the link between market research, design and development and the operational and marketing functions in the offering of the product or service (Stuart and Tax, 1996;
Collier and Meyer, 1998).
Oakland (1993) demonstrated how many successful organizations adopt a market-led approach as opposed to a technology-led or marketing-led approach. In other words, it is customer requirements, and the organiza- tion’s genuine understanding of them and responsiveness to them, that drive the design and delivery of the product or service, rather than the functions of the organization or an overemphasis on the tangible features of the product or service. Feigenbaum (1999) referred to the process as customer value enhancement and suggested that it would require a radical shift of approach by many organizations.
For example, many public sector leisure centres were preoccupied with the mere provision of facilities in the 1970s and the development of programmes in the 1980s, before the move to a customer-led approach recognizing a more differentiated market.
Kingman-Brundageet al. (1995, p. 20) related such an approach to the service system:
Service managers in particular are challenged to design service systems of the kind the customer desires: not mere assemblages of competing departments preoccupied with their own internal issues, but unified wholes focusing on the customer’s needs.
They also demonstrated how a unified ser- vice system, in order to work, recognizes the complexity of customer needs (particularly the nature of the leisure and tourism experi- ence) and incorporates a smooth, seamless service based on teamwork and collective understanding. Such an approach is descri- bed by theservice logic, which embraces cust- omer, technical and employee logic and needs to align with the service concept.
Customer logicis the explanation for customer behaviour and its duality of customer needs and its role and performance as a co- producer. Technical logicdescribes how and
why the service outcomes are produced;
employee logic clarifies the employee’s role and ability to perform. An illustration of this approach is provided by Key Travel, who implement cross-utilization at slack times when staff have the opportunity to swap roles with colleagues. It is the company’s philosophy that everyone should know and understand what each member of staff’s duties are in the day-to-day running of the company. It is their view that, if this were to be achieved, the pressures on each department would be better understood by other depart- ments and there would be less bad feeling when a problem arises. It might depend on the cause of the problem and it could be argued that fewer problems should occur.
Kingman-Brundageet al. (1995) have thus shown how there is a need to move beyond the traditional organization with its specialist departments and its discrete functions in marketing, human resources management and service operations. In order to provide a smooth ‘seamless’ service, a systematic way of integrating the various dimensions of the customer experience has to be identified. This is achieved through designing and imple- menting a service system capable of creating outcomes that customers value and an ethos and culture that staff fully understand and share. Disney has demonstrably achieved such integration in five of its theme parks;
the sixth, Disneyland Paris, has achieved more focus and integration recently than in its first 3 years of operations. A number of organizations, including TGI Fridays, Center Parcs and Esporta, also appear to have clear service concepts and outcomes for their customers and staff who understand this.
However, in order to understand and use the dynamics of the service experience, it is also necessary to consider not only the elements of service logic and service concept in the design of the service but also the service process and system of delivery (Edvarsson and Olsson, 1996; Ford and Heaton, 2000;
Normann, 2000). The model in Fig. 8.1 demon- strates the relationship between the various elements in the service design process. It does not offer a technique or a method for service design but contributes to a understanding of
the complex process of designing systems and processes.
Model of Leisure and Tourism Service Delivery Management
As suggested earlier, service operations management and service design require managers to balance aspirations for service quality against the limitations of budgets and resources available. As Laws (1999, p. 282) suggested:
The challenge for service managers is to design a service delivery system which combines maximising customers’ judgements that the service experienced is satisfying, with technical efficiency in the use of resources used in delivering the service.
The model comprises several compo- nents and these are considered below.
Leisure and tourism service concept The first component is the leisure service concept. This represents customer needs and
the features of the product or transaction.
Customer utility and benefit – both the description of the customer needs to be satis- fied and how they are to be satisfied through the design of service package – are important elements in the leisure and tourism experi- ence. The leisure and tourism service concept contains the bundle of attributes or benefits that the consumer is seeking and relates to the core product or activity and the aug- mented product or additional services such as hospitality. It also defines what business the organization is in and how it should promote and organize itself. For example, Gloucester Docks Trading Company devel- oped a three-point strategy for success from its service concept:
1. To create awareness, raising the profile and image of the docks and what they can offer.
2. To encourage visitors, especially first time, through events, special offers and other promotions.
3. To generate repeat visits and recommen- dations to others based on visitor enjoyment and satisfaction.
Gloucester Docks Trading Company has a long but relatively clear mission statement Product/service
attributes
Customer requirements
Benefits
Outputs Inputs
Components Customer
Activity
Setting
Staff
Product technology Organization/
control Service
encounter
Fig. 8.1. Model of service design and delivery in leisure and tourism.
that helps to shape its marketing strategy and approach to service quality:
Gloucester Docks Trading Company’s mission is to maintain and improve our position as the number one free tourist attraction in the Heart of England Tourist Board Region through recognition of the variety, history and tradition of the Gloucester Docks, creating a quality location and service in a friendly environment of local, national and international visitors.
Its service concept encapsulates the heritage of the area and former functions and the image that most people now have of dock- land areas. Its attributes include its location, variety of attractions and friendly environ- ment, and it is committed to creating and delivering an enjoyable experience to its visitors (now estimated at 1.5 million a year).
Another example is provided by the David Lloyd Group, where there is a feeling that its approach to service quality is the distinctive feature of its service concept. The Group believes that its core product – the activities provided by its sports and leisure facilities – is important but is underpinned by highly trained staff, high standards of cleanli- ness and maintenance, friendly attentive ser- vice and a pleasant and relaxing environment.
It is the company’s aim to exceed its members’
expectations by providing an enhanced ser- vice, delighting members and increasing their perceived value of their membership. The aim is also to give all members individual atten- tion and to try to meet every service encounter with care and compassion. The David Lloyd core values are ‘caring, passion and trust’ and its philosophy on service quality is to offer every member the best combination of quality product, standard of service and value for money in the leisure industry.
The leisure and tourism service system The production management model of adding value and converting inputs into out- puts, adapted to apply to service industries, is further modified here to embrace leisure and tourism management. As Fig. 8.1 demon- strates, the leisure and tourism service
system establishes what is needed in order to meet the customer requirements and the product features described by the service concept. It refers to the resources and inputs to the service process and how they are deployed, and helps to identify the service standards in all aspects of the operation. The leisure and tourism service system has sev- eral elements: (i) the customer; (ii) the activ- ity; (iii) the setting; (iv) product technology;
(v) staff; and (vi) organization and control.
The customer
The relationship between the goals and motives of the customer and the attributes of the product or service package also helps to shape the outcomes of the transaction and the quality of the leisure and tourism experience.
Organizations increasingly differentiate their markets based on typologies and behavioural characteristics (Box 8.1).
The activity
The interaction between the customer and the leisure opportunities provided by the activity embraces many aspects of leisure and tour- ism management, including programming, the concept of substitutability, opportunity sets in which the two variables of consumer behaviour and product attributes interrelate (Stabler, 1991) and the spectrum of leisure and tourism opportunities. It more naturally represents the core element of the product such as a game of squash, an airline seat or a walk in a national park.
The setting
The setting refers to the physical and technical environments for the activity and also intangible features such as atmosphere and ambience. Indeed, the effect of the servicescape (Wakefield and Blodgett, 1996) on customer behavioural intentions in leisure and tourism settings is well documented.
Their findings tend to suggest that customer satisfaction, particularly from a hedonistic perspective, is influenced by the nature and quality of the physical setting, though there can be a certain ambivalence in some settings;
Box 8.1. Case study: Hollywood Bowl.
Moonlight Bowl Promotion Primary objectives
To increase lineage during periods of low activity profitably Secondary objectives
To reinforce awareness amongst existing markets To increase brand awareness amongst new markets To inform all markets of current unique selling points Moonlight Bowl mission statement
Moonlight bowling will allow all customers to try the latest glow bowling experience within the Holly- wood format. The ‘Moonlight Bowling Experience’ provides all customers with the opportunity to play ten-pin bowling in a new and innovative environment, with the added bonus of excellent value-for-money.
Market segmentation
Hollywood attracts a broad range of people from within the local community and, therefore, a number of different markets can be identified:
•
Competitive league/tournament bowlers•
Families generally bowl on weekend during daytime•
Children generally after school until 6–7 p.m.•
Youths (U18) during evening•
18–25s evening (Wed–Sat)•
Couples evening•
Over 50s weekdays and early evening•
School groups weekdays Market targetingMoonlight bowling is an innovative bowling experience that appeals to a younger audience. By combin- ing the effects of ultra violet lighting, ‘pumping music’ and prize give-aways, the atmosphere is attractive to the following markets:
•
Youths•
CouplesPromotional re-design
What type of promotion will appeal to these markets? We have seen that the previous package was very successful. Due to a seasonal fall off in demand this package has appeared to be unsuccessful. However, demand increases through the winter/spring months and the package will once again prove popular. It is my opinion that we need to change certain aspects of the evening and not the package itself.
An analysis of our competitors shows that similar glow bowling packages (e.g. cosmic bowling) involve prizes such as champagne. A successful Moonlight Bowling package will involve prize give-aways that are superior to previous Hollywood prizes and also the activities of our competitors.
Moonlight Bowling Experience
A typical Friday night shows a fall off in demand after 10 p.m. A suitable time to run the promotion would be from 10 p.m. until 1 a.m. Saturday night is normally busier during this period and would not be a feasi- ble option. The moonlight package would be as follows:
•
£6.85 per person•
2 games•
18–25s•
Burger munch box plus soft drink•
Additional games charged at £1.50 per person•
10 p.m.–1 a.m. every Friday nightcontinued
for example, the access to remote mountain areas for skiing and other activities by lift systems has many social and economic benefits but causes concern in environmental terms, as demonstrated by the development of Albertville for the 1992 Winter Olympics or the long-running dispute over a chairlift extension in the Cairngorms. Clarke and Schmidt (1995) proposed that, in certain con- texts, it is the aim of the service provider to link the service encounter in the consumer’s mind with the environment encounter, thus creating repeat business and a long-term relationship.
Product technology
Product technology is concerned with tangibles such as facilities, equipment and technology in the activity itself. It includes buildings such as cinemas and leisure cen- tres, the equipment within them and their use of technology as a feature of the product, such as screen and sound systems in cinemas or white-knuckle rides or simulators in visitor attractions.
Staff
Staff are also a key factor, because of the ser- vice encounter in many leisure and tourism contexts, and the interaction in such social settings defines the critical moments of truth.
Receptionists, instructors, guides, attendants and waiters and waitresses are particular
front-line staff whose role is to animate, motivate and engage with customers.
Organization and control
This is the final element and, although regarded as bureaucratic, work procedures and other documentation and communica- tion with customers are important aspects of service quality and also help with customer flow and circulation, as well as shaping attitudes. They can include ticket purchase, automatic entry, signage and sight lines, booking systems and the technology con- cerned with underpinning the delivery of the product (Box 8.2).
The leisure and tourism service process The service process in leisure and tourism is the chain of activities and stages the customer goes through; it involves much interaction between the customer and the other inputs that make up the service system. It refers to functional quality (the how) as opposed to technical quality (the what) and, in many contexts, is more important in determining the overall quality of the consumer experi- ence. Process management, design of the cus- tomer process and the service package are also assuming greater importance. The ser- vice process involves the variables of value, job task and the job environment as created Box 8.1. Continued.
Event Prizes
Pink Pin Strike Bottle of Hollywood Bubbly
XXX Bottle of Hollywood Bubbly + free game voucher for up to six people Birthday Bottle of Hollywood bubbly – free adult membership
Mystery Prize Voucher T-shirt
Spot Prizes Hit-the-Spot mug Staffing levels
The direct staff to run a moonlight bowl:
•
Receptionists (2)•
Security (2)•
Café servers (2)•
Lane servers (2)•
Technician (1)by the core logic and the three interfaces between service delivery by staff and cus- tomer perceptions of the service received.
These three interfaces are described as: (i) theencounter interface, which links customer and employee logic through the values of the organization and the job environment, partic- ularly with the significance of interpersonal relationships in high-contact services such as health and fitness and hospitality; (ii) the technical interface, which links customer and technical logic through value and work tasks and the customer’s direct contact with technology and systems (important aspects are booking systems and the technology in visitor attraction sites); and (iii) thesupport interface, which links employee and technical logic through work tasks and the relation- ships between front-line and backstage staff.
Service value
The final component of the model returns to the needs and motives of the customer as identified or disseminated by the service con- cept. The model described provides a picture of the elements in the design of both the ser- vice and its system of production and deliv- ery in leisure and tourism. It demonstrates the traditional view of production in which inputs are converted through a process into outputs or outcomes but also emphasizes the link, in the loop, between the organization’s service concept and, eventually, the benefits that customers take away with them and
their satisfaction with how the benefits have been created.
Service value does not simply relate to the concept of value for money but also accounts for other variables such as cost, time (including travelling) and the general effort required for the activity (a problem faced by the Millennium Dome). These factors all have to be viewed within the context of increasing competing interests including not just other managed contexts for leisure and tourism but also the attractions of in-home entertainment.
The model provides a backcloth against which the service can be analysed and broken down to enhance its understanding by staff (and customers) and the way it is designed and managed. It facilitates the application of Juran’s quality trilogy, highlighted in Chapter 4, which comprises the measurement and improvement of service delivery as well as its planning. However, the model does not necessarily highlight the interaction between the various components of the service system or some of the options open to management in their planning process. In order for managers to evaluate and to plan new developments, an understanding of the whole process is required.
Factors in Service Design
There are a number of key questions for the leisure or tourism operator to answer in determining the approach to service design in any particular context:
Box 8.2. Case study: TGI Fridays.
TGI Fridays is one of the more innovative organizations in the leisure industry and sees itself as offering more than simply food and drink. It sets out to create a certain atmosphere in its restaurants and, with the provision for birthdays and other party groups and its high level of engagement with customers, its core product is more part of leisure provision than most food outlets. Product development involves managers in the marketing department at headquarters eating out several times a week to gain ideas, with other innovations coming from the USA. Feedback is also gained from mystery customer surveys, which are carried out every month, with results received by every restaurant every 4 months based on the overall percentage. Although the organization places great emphasis on the service encounter and the training of staff (see Chapter 14), technology is an important component in the delivery system. A computer system makes ordering quicker and more accurate and is also used to track the popularity of various offerings.
A recent introduction is a computer-aided control system at the door to enhance the flow and seating arrangements of customers.