________________________________________ 1. Services Scenario in India 🟦 Overview: India has transitioned from an agricultureled to a serviceled economy. The services sector contributes ~55% to India’s GDP and employs a large share of the workforce. 🟩 Reasons for Growth: • Liberalization and globalization (post1991 reforms) • Digital revolution (rise of IT sector) • Urbanization and rising income levels • Demand for education, healthcare, financial services 🟨 Key Service Sectors in India: Sector Indian Example Role in Economy IT & ITeS Infosys, TCS, Wipro Outsourcing, exports, tech development Telecom Jio, Airtel, BSNL Internet access, digital empowerment Banking & Finance SBI, HDFC, ICICI, Paytm Financial inclusion, UPI Education BYJU’S, Unacademy, NIIT Edtech revolution Healthcare Apollo, Fortis, Practo Medical tourism, online consultations Tourism IRCTC, MakeMyTrip, OYO Domestic and international travel Retail & Ecommerce Flipkart, Amazon, BigBasket Lastmile delivery, convenience shopping ________________________________________ 2. Difference between Product and Service Feature Product Service Nature Tangible, physical Intangible, experiential Ownership Transferred to buyer Not transferred; only access granted Production & Consumption Separate (can be manufactured & sold later) Simultaneous (produced & consumed together) Storability Can be stored Cannot be stored Quality Assessment Easy (based on features/specs) Hard (based on perception) Customization Less Highly customizable Example Laptop, Car Hotel stay, Airline ticket Indian Example: • Buying a Maruti car is a product experience. • Booking a ride on Ola is a service. ________________________________________ 3. Characteristics of Services (IHIP) 🟢 IHIP Model: Services have four unique characteristics that differentiate them from products. Characteristic Explanation Example Intangibility Cannot be touched, stored, or seen before use Insurance policy, Coaching class Heterogeneity Varies from provider to provider or even customer to customer Salon experience, Doctor consultation Inseparability Produced and consumed simultaneously Restaurant meal, Taxi ride Perishability Cannot be stored for future use An empty seat on a flight ________________________________________ 4. Classification of Services Classification by End Users: Type Examples Explanation Consumer Services Netflix, Swiggy, Big Bazaar For direct consumption Business Services Infosys (B2B IT), EY (Audit) Support for business operations Public Services Hospitals, Police, Government helplines Provided by government bodies Quasi (Apparently, Supposedly) Services Museums, Parks, Libraries Intangible + some tangible aspects Classification by Nature of Service: Category Example Professional Services Lawyer, CA, Doctor Mass Services Railways, Movie Theatres Personal Services Salon, Spa, Gym Utility Services Electricity, Gas, Internet ________________________________________ 5. Product and Service Design 🔵 Definition: Product and service design refers to creating and planning offerings that meet customer needs, expectations, and experience goals. 🔸 In Product Design: Focus on form, functionality, and usability. E.g., Redmi smartphones are designed for budgetconscious Indians. 🔹 In Service Design: Focus on process, people, and environment. Example: Zomato designs its app interface, delivery time promises, and complaint resolution as part of service design. Service Design Explained Simply (With Examples) What is Service Design? Service design is the process of planning and organizing a service to make it userfriendly, efficient, and enjoyable for customers. It focuses on how a service is delivered rather than just the final product. Think of it like designing a smooth, hasslefree experience—whether you're ordering food, booking a cab, or visiting a bank. Key Elements of Service Design 1. Understanding Customer Needs Example:  Zomato asks for feedback after delivery to improve service.  Amazon offers easy returns because customers want hassle free shopping. 2. Mapping the Customer Journey Example:  Ola Ride Process: Open app → Enter destination → Choose cab → Ride → Payment → Rating.  Bank Account Opening: Online form → Document upload → Verification → Account activation. 3. FrontStage (Visible) & BackStage (Invisible) Actions  FrontStage: What customers see (e.g., delivery agent, waiter).  BackStage: What happens behind (e.g., kitchen cooking, server processing orders). McDonald’s Example:  Front: Cashier takes order.  Back: Kitchen prepares food, inventory is managed. 4. Using Technology for Efficiency Example:  IRCTC uses online booking to reduce long queues.  Swiggy uses AI to predict delivery times. 5. Ensuring Consistency & Quality Example:  Starbucks trains baristas to make coffee the same way globally.  MakeMyTrip ensures booking confirmations are instant and accurate. Real Life Examples of Good Service Design 1. Uber/Ola Simple Booking: Just open the app, enter location, and ride. Cashless Payment: No hassle of carrying cash. Driver Ratings: Ensures quality service. 2. Netflix Personalized Recommendations: Suggests shows based on your taste. Seamless Streaming: No buffering due to good backend servers. 3. Airtel/Amazon Prime Auto Renewal: No need to manually recharge every month. OneClick Purchase: Quick and easy buying process. 4. Hospitals (Apollo/Fortis) Online Appointments: Reduces waiting time. Digital Records: Doctors access patient history quickly. Why is Service Design Important? ✅ Improves Customer Satisfaction (e.g., faster deliveries, fewer errors). ✅ Reduces Costs (e.g., automation in banking reduces staff workload). ✅ Creates Loyal Customers (e.g., people prefer Zomato over competitors due to better service). Final Thought Service design is like designing a smooth road instead of letting customers walk on a rocky path. A well-designed service (like Amazon’s delivery or Ola’s ride hailing) makes life easier and keeps customers coming back! Components of Service Design: • Physical evidence (ambience, uniform, layout) • Customer interaction (touchpoints) • Process flow (steps in service delivery) • People and roles ________________________________________ 6. Factors Affecting Service Design Factor Explanation Indian Example Customer Needs Services must fulfill real expectations Dominos’ 30min pizza delivery Cost Considerations Design should be costeffective Ola Micro vs. Ola Prime Competitor Benchmarking Differentiation is key Swiggy's tracking vs. Zomato’s smart alerts Legal and Ethical Norms Must comply with laws IRDA rules in LIC, Data privacy in banking Technology Availability Influences innovation and design SBI YONO app, AI chatbots in banking Capacity and Resources Design must match availability of staff and space Indian Railways platform services ________________________________________ 7. Service Designing Process StepbyStep Process: 1. Research: Identify target customers, problems, and needs. 2. Ideation: Generate solutions and conceptualize service. 3. Service Blueprinting: Map the service flow. 4. Prototype/MockUp: Create sample touchpoints or app screens. 5. Test and Feedback: Pilot test with real users. 6. Implement and Monitor: Launch and continuously improve. Example: • MakeMyTrip redesigned its app for COVID safety by adding features like contactless checkins and sanitization tags. ________________________________________ 8. Service Blueprinting 🟩 Definition: A service blueprint is a diagrammatic representation of the service delivery process. It maps: • Customer actions • Frontstage (visible) employee actions • Backstage (invisible) employee actions • Support processes • Physical evidence 🟨 Blueprint for Swiggy Delivery: Layer Example Customer Action Places order via app Frontstage Delivery executive receives order, picks up Backstage Kitchen staff prepares food Support Processes App sends notification, maps route Physical Evidence App UI, Invoice, Branded Packaging ________________________________________ 9. Service Capacity Planning 🟩 Definition: Service capacity planning is the process of forecasting demand and allocating resources to meet it efficiently. 🔸 Types of Strategies: Strategy Type Description Indian Example Lead Strategy Add capacity before demand rises IRCTC adds special trains before Diwali Lag Strategy Add capacity after demand increase Hospital ICU beds after COVID spike Match Strategy Add capacity gradually as demand grows Flipkart adds delivery partners gradually Techniques: • Demand forecasting • Queue analysis • Workforce scheduling • Resource optimization ________________________________________ 10. Dimensions of Quality in Services (RATER Model) Dimension Meaning Indian Example Reliability Performing promised service dependably and accurately Amazon delivery tracking Assurance Confidence and trust through staff skills HDFC staff knowledge Tangibles Physical appearance of people and facilities Indigo’s clean uniforms and boarding gates Empathy Caring, personalized attention Café Coffee Day’s customer interaction Responsiveness Prompt service and willingness to help Swiggy’s 24x7 chat support ________________________________________ 11. Understanding Service Quality Gap (GAP Model) Gap No. Description Example (India) Gap 1 Difference between customer expectation and management perception Zomato underestimating delivery issues Gap 2 Gap between management perception and service design App poorly designed for elderly users Gap 3 Gap between service design and service delivery Hotel app shows AC but AC not working Gap 4 Gap between delivery and external communication Ad promises fast delivery, not delivered Gap 5 Gap between expected service and perceived service Flipkart says “next day” but comes in 3 ________________________________________ 12. Measuring Service Quality using SERVQUAL Model SERVQUAL (Service Quality Measurement Tool) Developed by Parasuraman, Zeithaml & Berry. 🔸 Steps to Use: 1. Identify 5 dimensions (RATER) 2. Ask customers to rate: o Expected service on a 1–7 scale o Perceived service on the same scale 3. Compute the Gap Score = Perception – Expectation 4. Analyze areas with highest negative gaps Example: For LIC Policy Service: Dimension Expected Perceived Gap Reliability 7 6 1 Assurance 6 6 0 Tangibles 5 4 1 Empathy 6 5 1 Responsiveness 7 4 3 ➡️ Highest gap in Responsiveness → Needs urgent improvement. Though perception, expectation, and experience are closely related concepts in service quality, they are not the same. Each plays a distinct role in shaping how customers judge a service. ________________________________________ ✅ Definitions with Differences and Examples Term Definition When It Occurs Role in Service Quality Example (India) Expectation What a customer hopes or believes a service should provide, based on ads, wordofmouth, or past experience. Before service Acts as the benchmark or standard for judgment Expecting Zomato to deliver food hot within 30 mins. Perception What a customer actually receives and feels during and after the service encounter. During and after service Determines how customers rate service quality Food was delivered in 45 mins and was lukewarm. Experience The overall emotional and cognitive response to the entire service journey. After service Shapes customer’s loyalty, satisfaction, and wordofmouth Felt annoyed, deleted the app, and left a bad review. ________________________________________ 🟦 Let's Illustrate with a Reallife Example 📍 Service: Online Shopping via Flipkart Phase Description Flipkart Example Expectation "Delivery in 1 day, genuine product, free return" Promise seen in ad + past experience Perception "Came after 3 days, packaging damaged" Real delivery process + physical product Experience "Frustrating, I had to call customer care 3 times" Overall feeling from order to complaint ________________________________________ 🎯 Differences in Summary: Basis Expectation Perception Experience Nature Mental forecast (what should be) Actual observation (what is) Emotional + rational outcome (how it felt) Timing Before receiving service During/after service After service is complete Impact Sets the service quality benchmark Basis for comparison with expectations Drives loyalty, reviews, retention Service Quality Link Used in tools like SERVQUAL Compared with expectations Shapes Net Promoter Score (NPS), feedback ________________________________________ 🔁 Relationship Diagram: Customer Expectation ↓ Customer Perception (compared to expectation) ↓ Customer Experience (final emotional outcome) ________________________________________ ✅ Are They the Same in Terms of Service Quality? 🔴 No, they are not the same, but they are interdependent: • High expectation + low perception = dissatisfaction • Low expectation + high perception = delight • Neutral perception = average experience ________________________________________ ⭐ Quick Analogy: Imagine going to a movie theater: • Expectation: "It’ll be a blockbuster with great visuals" (before going) • Perception: "Seats were cramped, sound was okay, but climax was thrilling" (during movie) • Experience: "Mixed feelings. Probably won’t watch a sequel" (after movie)