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Service Dominant Logic (SDL)  Definition of Service:

Service is the application of knowledge and skills to provide benefits to others - vargo,lusch

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Definition of manufacturing:

Production of tangibles (Sachgüter) whose ownership is transferred

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Role of service (operations) in an economy VALUE


provider -> value creation -> customer

provideer <- value capture <- customer

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Value creation for the customer:

  • Time saving
  • less work interruptions
  • tool performance increase
  • less organizational effort
  • no internal technician is needed
  • always the newest devices available
  • theft insurance
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value capture for the provider

  • money
  • data collection
  • feedback from customer
  • customer binding / relationship
  • mouth to mouth advertisement
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Characetiristics of Services (IHIP)

  • Intangible (immateriell)
  • Hetereogenenous (heterogen)
  • Instantaneous (Unmittelbar)
  • Perishable (Verdeblich)
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Service Quality - 5 Dimensions:


  • Reliability (Verlässlichkeit)
  • Responsivness (Anprechbarkeit)
  • Assurance (Sicherheit)
  • Empathy (Einfühlsvermögen)
  • Tangibles (Sachlichkeit)


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Service Encounter:

  • Moments of Truth in the customer journey

MoT = Steps in the customer journey where a lasting impression arise


When you will provide a service over a series of steps -> design customer journey and the dramatic arc

Be there when help is needed that will exceed the positiv thinking of you -> MoT

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Service Encounter (Begegnung) Triad

name the three parts of the triad:

  • Service Organization
  • Contact Personnel
  • Customer
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Consequence of disbalance in the service encounter triad of

Contact personell:

the agents / personell can act to random -> customer frustration

rectruitment: find a agent which has a service orientation

training for personnel: role play of customer - agent, train specific situations to know how to react

employee compensation: rely a performance in a service orientation

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Consequence of disbalance in the service encounter triad:

Service Organisation

every time the same procedure - no extra service  -> customer frustration

service culture: share beliefs and values - allow agents to act independetly

employee empowerment: trust in agents, that they will make the right decision to the service culture

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consequence of disbalance in the service encounter triad:


Extreme customer orientation

customer motivation: different motivations schemes (social contacts, looking for convenience...)

scripts for customer behaviour: customer is used to script (know how to shop), for new services they need to learn new scripts (self checkout)

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Service quality GAP Model:

GAP 1 - Market Research

Customer Expectation <> Management Perceptions of customer expectation

market research gap, there is a difference in the customer expectations and the management estimation / valuation (that what the management thinks the customer needs)

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Service Quality GAP model:

GAP 2: Design

Management Perceptions of customer expectations <> Service Design

design gap results, exceed because of a falce design of the service by the management that dont meet the customer expectations which dont could be transfered in a workable servvice standard

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Service quality GAP Model:

Gap 3: Conformance

Service Standards <>Service Delivery

the conformance gap exceed because the actual delivered service does not meet the defined service standard from the management

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Service quality GAP Model.

GAP 4: Communcation

service delivery <> customer perception

communication gap exceed when the delivered service divide from the customer perception (be at a variance)

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service quality GAP Model

GAP 5: Customer Statisfaction

customer perception( Wahrnehmung) <> customer expectation (Erwartung)

Customer statisfaction is a gap are depending on minimizing gaps 1-4 which are associated with the delivery of service

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Conjoint Analysis?


the most relevant method to estimate the preference score

model preference with linear regression

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use of a conjoint analysis?


product optimization:

you can detect which product properties are how much relevant for the customers. so you can design your product by the highest average value

you can alos compare your product to a competitors product

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yield managment

field of capacity managment?

field of demand management?

managing demand:

  • develop reservations systems
  • establishing price incentives (anreize) 

managing capacity:

  • sheduling work shifts
  • part time employees
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Yield management definition:

„Yield management is a comprehensive system to maximize revenue for capacity-constrainted
services using reservation systems, overbooking, and partitioning demand.“ (cmp.
Bordoloi/Fitzsimmons/fitzsimmons (2019).

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What is a protection level and whats the goal of it?

Protection level is the capacity for each segment

Goal is a optimized protection level for maximising the profit / revenue

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Value Dimension:

  • Functional Value; "saves time"
  • Economic / Financial Value; "saves money"
  • Social value; "i am part of the group"
  • Emotional value; "i feel great when i use it"
  • Conditional value: waaas das?
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Services vs. goods:

Goods = ...

Service = ...

Goods = transfering ownership

Service = renting of ressources

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How can service quality measured?

  • SERVQUAL: multi item scale for measuring the five dimensions of service quality


  • Walk-through Audit: evaluate the service experience form a customer perspective
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the five roles of technology in the service encounter:

A: Technology-free (customer interacts physical with a human service provider)

B: Technology-assisted (only service provider has access to tech - example X-Ray at the dentist)

C: Technology-faciilitated (both of customer and provider have access to the same technology - financial advise on pc)

D:Technology-mediated (not physical or face to face, communication above telephone, distant callcenter etc.)

E: Technology-generated (self-service): the humann service provider is replaced, self service


Bordoloi, S. K. (2019). Service management operations, strategy, information technology (Ninth
edition, international student edition). McGraw-Hill Education.

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Maisters First Law of Service:


"Customer compare expectations with perceptions"

Satisfaction = Perception - Expectation
- If P>E, then customer is satisfied
- If P<E, then customer is unsatisfied

David H. Maister: The Psychology of Waiting Lines

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Maisters Second Law of Services:


“It is hard to play catch-up ball.”

A bad experience in this first step will influence the whole service experience


David H. Maister: The Psychology of Waiting Lines