Page 80 - DMGT522_SERVICES MANAGEMENT

Unit 3: Nature/Characteristics of Services

People: Perishability occurs when the service marketer is not able to marshal internal customers Notes
in the right place in the right time in requisite numbers. The internal customers, as mentioned
before, are employees, channel partners etc. all those who play the role of providers.
A retail store has peak-time crowds during evenings and slack times in the afternoons. The
dilemma for the retailer is how many employees to have: if their number is as per the peak time
crowds, then there might not be much work for them during the slack times and the retailer ends
up having higher operating costs. On the other hand, if the retailer has employees sufficient to
cater to the afternoon and morning shoppers, then they might be overwhelmed by the peak
time rush. This might greatly affect the service encounter, inconvenience the shoppers, result in
long queues and, in effect, have unpleasant experiences. The staff would soon be de-motivated
and the impatient shoppers might change stores.
The store could then manage the personnel supply problem with part-time employees during
peak time demand.

Example: Esselworld, the theme park pioneer, takes in students as temporary employees
or trainees on internship during their summer holidays.
Peak-hour essential services: A retail bank during peak hours might shut down a few non-
urgent desks/counters and concentrate only on essential services. Thus, during heavy withdrawals
(old-timers in PSU banks, before the advent of ATMs, would recall with shudder the first ten
days of the month in their branches as ‘salary days’ – where people crowded for the withdrawal
of their salary), certain non-essential areas like the enquiry counter, dispatch, etc. might be
temporarily shut down to man extra counters in the savings and current accounts withdrawals
and cash section.

In this way, service firms can manage to find ways and means to address its unique characteristic
of Perishability and not losing business during the time of service transactions.

Include the customer in your process: This is a novel way to beat Perishability due to the supply
problem of personnel. The customer is made to be a partner and a part of the service delivery.
Executive buffet lunch is a classic example of a high quality service offer delivered with minimal
staff support. Whatever be the crowd, if the provision and capacity for the lunch is there, it can
be delivered through the executive buffet process. The diner helps and serves himself; the
provider ensures that all the paraphernalia like cutlery, tissue paper, etc. is available. Self-
service shopping in modern-format superstores is another example. The customers wheel out
the trolleys and carts themselves and load their shopping goods in them. When their shopping
is complete, they go out to the checkout counters for payment. Customers in a bank fill out the
forms themselves while shopping for Dell computers on the net is pure self-service.
3.2.3 Variability

Variability conveys to the customer an element of inconsistency and non-standardisation in the
service offer and service delivery. The customer’s service encounters are different every time.
Some of the ways this can be overcome are:
Training of Internal Customers

Recruitment and selection of Internal Customers
Training of External Customers
Automation

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