Summary: Breaking The Trade-Off Between Efficiency And Service

Read the summary and the most important questions on Breaking the trade-off between efficiency and service

• 1 Introduction

  This is a preview. There are 2 more flashcards available for chapter 1
  Show more cards here

• What is a central challenge in making a service offering profitable?

  Dealing with tremendous variability of customers.

• Why is in the service context this challenge far more subtle? 

  1. It would not be wise to drive out all variability; customers judge the quality of their experience in large part by how much of the variability they introduce is accommodated, not how sternly it is denied. 
  2. It would not be possible to do so.

• 2 Five Types of Variability

  This is a preview. There are 4 more flashcards available for chapter 2
  Show more cards here

• Which five types of variability do customers introduce?

  1. Arrival variability
  2. Request variability
  3. Capability variability 
  4. Effort variability
  5. Subjective preference variability

• What is meant by arrival variability?

  Customers do not all want service at the same time or at times necessarily convenient for the company.

• What is the classic way to address variability?

  To require appointments or reservations, but that makes sense only in certain situations.

• What is meant by request variability?

  The fact that customers' desires don't emerge along standard lines poses real challenges for virtually every kind of service business.

• What is meant by capability variability?

  Whether because of greater knowledge, skill, physical abilities, or resources, some customers perform tasks easily and others require hand-holding. 

• When does capability variability become more important?

  When customers are active participants in the production and delivery of a service.

• What is meant by effort variability?

  When customers must perform a role in a service interaction, it's up to them how much effort they apply to the task.

• What is meant by subjective preference variability?

  Customers vary in their opinions about what it means to be treated well in a service environment.