TMHM 5

CHAPTER 6
Service- any act of performance that one party can offer and does not result in ownership.
Categories of service mix
1. Pure tangible good - no service accompanying products
2. Tangible good with accompanying services- tangible goods accompanied by one or more services
3. Hybrid- offering equal parts of goods and services
4. Major service with accompanying minor goods and services - like air travel and additional or supporting
service goods such as drinks.
5. Pure service- primarily an intangible service
Distinctive characteristics of services
● Intangibility- services cannot be tasted, felt, heard, or smelled
● Inseparability- typically produced and consumed simultaneously
● Variability- quality depends on who provides them, when, and where, and to whom
● Perishability- services cannot be stored, perishability can be a problem when demand fluctuates
The new service realities
1. Customer empowerment - can select the elements they want
2. Customer co production- customer do not merely purchased and use a service, the play an active role on
it’s delivery
3. Satisfying employees as well as customers- positive employee attitudes promote customer loyalty
The concept of service design
Physical structure - model of certain product aimed to provide more value
Design- used for various purpose in the different aspects of running business
Five principle of service design
1. Consider every user’s perspective- acknowledging every user's expectations, preferences, values, beliefs.
2. Take a holistic approach- look at the whole user journey and consider each person's touch point.
3. Visually communicative- visual tools enable the viewer to digest even the most complex ideas
4. Iterate the process- can save money and time if they test customer experience before developing it
5. Co-create - all users are involved not just in the design of the solution but also in the production
Service design- creative and practical way to assess, improve,and innovate the existing services or help
organizations to design new ones.

CHAPTER 7
Five basic approaches to managing demand
Marketing strategies to shape demands patterns
● Price and other user outplays- direct ways of reducing excess demand at peak period is to charge
customers more money to use the service during those times
● Changing product elements- changing menus and level of service, variations in lighting and color,
opening and closing the bar, and the presence or absence of entertainment to appeal to different needs of
customers.
● Modifying the place and time of delivery-
a. Varying the times when the service is available to reflect changes in customer preference by day
of week, by season, and so forth
b. Offering the service to customer at a new location
● Promotion and education- encourage customers with discretionary schedules to favor peak periods. Short
term promotion combining pricing and communication as well as incentives.
● Managing capacity- capacity needs to be adjusted and managed to satisfy the demand of the consumer.
● Adjusting capacity- existing capacity of service resources can often be expanded temporarily to match
demand. No new resources are added, rather people, facilities, and equipment are asked to work harder and
longer to meet demand.
➢ Stretch time- extend the hours of service temporarily
➢ Stretch labor- employees are asked to work longer and harder during periods of peak
demands
➢ Stretch facilities- expand facilities to accommodate customers
● Capacity constrained-
➢ staff/skill levels- staff training boosts flexibility and efficiency
➢ IT facilities/technology-
➢ Materials availability- change in supply of raw materials can increase the capacity
potential of operation
➢ Product or service mix- adjustments in the product within facility can affect its capacity
➢ Storage- storage capacity in operation can boost short-term capacity by firming up work
in progress or finished goods.
● Capacity planning method
○ Capacity leads demand- preparing resources ahead of forecasted demand.
 ○ Capacity matches demand- strategy known as “chase demand strategy” or “demand-based
capacity management.” Involves adjusting capacity to match fluctuations in demand.
○ Capacity lags demand- wait to see what demand is and then respond after it is confirmed.
● Capacity timing
○ Short term planning- adjusting capacity on the same day or on a time scale of up to around 3
months.
○ Medium term planning- managing of the operation and has a horizon of around 3-18 months.
○ Long term planning- planning is a time scale beyond 12-18 months
Queuing- according to theory, there will always be some waiting involved when there is an irregular flow of clients
into a process
Queuing strategies
● Employ operational logic
Queue configuration- the number of queues, their location, their spatial requirement and their effect on
consumer behavior.
● Establish a reservation process- reservation system has the added benefit of potentially shifting demand
to less desirable time periods. .
● Challenge - ‘no shows’ - solutions by companies : overbooking, charging customers for not showing up
● Differentiate waiting customers- first come, first served, importance of the customers, urgency of the job,
duration of the service transactions, etc.
● Make waiting pleasurable or at least tolerable - unoccupied time feels longer than occupied time, pre-
process waits feel longer than in process waits, anxiety makes wait seem longer, uncertain waits a longer
than known, finite waits, unexplained waits are longer than explained waits, unfair waits are longer than
equitable waits, solo waits feel longer than group waits.

CHAPTER 8
Value co-creation - refers to the involvement of consumers in the product development process. Value co-creation
refers to the service process and service product.
Value - capacity of goods, services or activity to satisfy a need or provide a benefit to a person or legal entity.
Two common qualities of all co-creation approaches
Widening of organizational boundaries
Involvement of co-creators
Lambert
Value proposition
Value determination
Value actualization
Importance of customer in value co-creation
● Customer receiving service - contribute to narrowing or widening gap, through behaviors that appropriate,
effective or ineffective, productive or unproductive
● Fellow customer- present in the service environment and can affect the nature of the service outcomes
process
Three roles of customer in service delivery
1. Customer as a productive process- referred to as “partial employees” of the organization
2. Customer as quality contributors to service delivery and satisfaction- customer needs are met
3. Customers as competitors- customers can decide whether to produce service for themselves.
Strategies for enhancing customer participation
● Promoting the company- customer rely on word of mouth endorsement
● Individual differences- some customer enjoy self-service, some prefers to have service entirely for them
● Define customers role- determine what type participation is desirable from customer
 ● Helping others
● Helping oneself
● Recruit educate and reward
● Recruit the right customer- must attract right customers to fill those roles

CHAPTER 9
Service failure- is any type of error, mistake, deficiency or problem occurring during the provision of a service.
Service failure in service occur due to the following service quality gaps:
● Strategy of the management- management should be able to plan and strategize company policies and
operation.
● Leadership quality of managers- managers should be able apply their leadership skills in motivating,
supervising, and correcting the operation.
● Natural instinct of employees- a large part of service relies on the employees as they are the one who
provide service and interact with customers.
Servqual model- focuses on the service quality elements of reliability, assurance, tangibles, empathy, and
responsiveness.
General service characteristic that may increase the likelihood of service failures are:
1. Inseparability- consumptions and production of hospitality services often take place simultaneously
2. Heterogeneity- the difficulty of standardizing service performance elements
3. Intangibility- the inability to touch or see the product of service
4. Perishability- the difficulty in synchronizing supply and demand
How customer responds to service failure
1. Dissatisfied customer - can choose a complaint on the spot of the service provider, giving the company to
respond immediately.
2. Negative word of mouth- extremely detrimental because it can reinforce the customer’s feeling of
negativism
Five steps involved to deal with service failure
1. Acknowledge and apology for the fact
2. Listening to the customer
3. Avoid defending the company and offer rational explanation
4. Offer some extra benefits
5. Have a proper follow up and make sure no mistakes this time.
Three shorts of fairness in case of service recovery
1. Interaction fairness- when there is service failure, the company is supposed to acknowledge the customer.
2. Procedure fairness- to know in detail about the incidence of service failure or to avail the compensation
3. Outcome fairness- company should end up compensating, arranging some alternative mode of transporting
or complying with customer conditions. .

CHAPTER 10
Service quality- known as customer satisfaction, which is based on feelings.It can also be defined as the extent to
which the service fulfills the need or expectations of the customer.
Dimension of service quality
1. Assurance
2. Reliability
3. Empathy
4. Tangibility
5. Responsiveness
Measurements of quality service
Soft measures- must be collected by talking to customers , employees or others
Hard measures- can be counted, timed, or measured through adults.
Effective customer feedback system
1. Assessment and benchmarking of service quality and performance
2. Customer driven learning and improvements
3. Creating a customer oriented service culture
Customer feedback collection tools
1. Total market, annual, and transactional surveys- measure satisfaction with all major customer service
processes and products.
2. Service feedback cards- good indicator of process quality and yield specific feedback on what works well
and what does not.
3. Mystery shopping- gives highly actionable and in depth insights for coaching, training, and performance
evaluation.
4. Unsolicited customer feedback- complaints, compliments, and suggestions can be transformed into a
stream of information to help monitor quality delivery.
5. Focus group discussion and service reviews- are done to give great specific insights on potential service
improvement.
Three common types of performance reports
1. Monthly service performance updates
2. Quarterly service performance review
3. Annual service performance report
Tools to analyze and address service quality problems
1. Fishbone diagram - cause and effect diagram to identify potential cause of problems.
2. Pareto analysis- technique used for business decision making.
3. Blueprinting- visualization of service delivery, identifying points where failures are most likely to occur.
Service quality and productivity approaches
1. Total quality management (TQM)- consists of several tools used to control the ongoing business
processes.
2. ISO 9000- comprises requirements, definitions, guidelines, and related standards.
3. Malcolm Baldrige model- to promote best practices in management and recognizing quality achievements
among U.S firms.
4. Six Sigma- to reduce defects, reduce cycle times, and improve productivity.
Leadership - a way of sharing power ensuring that expertise is interrelated at every level in every task.
Characteristics of leader
● Inspiring vision, clear objectives, supportive management and leadership, high levels of staff engagement,
the responsibility of learning and innovation, teamwork, and cooperation across boundaries.
Four characteristics of psychological empowerment
● Work meaning
● Self efficiency
● Self determination
● impact
TMHM 3
LONG TEST I

CENTRAL VISAYAS (REGION 7)

PROVINCES - CAPITAL
Cebu - Cebu city
Bohol - Tagbilaran city
Negros oriental- Dumaguete
Siquijor- Siquijor

PORT OF ACCESS
By air- Mactan Cebu International Airport & Tagbilaran City Airport
By sea- Cebu International Port & Larena and Siquijor Port
Major cultural groups
● Cebuanos
● Boholanos
Major Industries
● Agriculture
● Fishery
Language and dialect spoken
● Cebuano
● Boholano
● Porohanon
● English

EASTERN VISAYAS (REGION 8)

PROVINCES - CAPITAL
Biliran - Naval
Eastern Samar - Borongan City
Leyte - Tacloban City
Northern Samar - Catarman
Samar - Catbalogan City
Southern Leyte - Maasin City

PORT OF ACCESS
By air- Tacloban Airports
By sea- Port of Ormoc
Major cultural groups
● Waray
● Cebuano
Major Industries
● Farming
● Fishing
Language
● Filipino
● English
Dialects
● Waray-waray
● Cebuano
● Boholano
● Lineyte samarnon
● Inabaknon

ZAMBOANGA PENINSULA (REGION 9)

“Sardines Capital of the Philippines”

PROVINCES - CAPITAL
Zamboanga del Norte - Dipolog City
Zamboanga del Sur - Pagadian City
Zamboanga Sibugay - Ipil
Zamboanga City -

PORT OF ACCESS
By air- Ninoy Aquino International Airport
By sea- Zamboanga Port
Ethnic Group
Chavacano - Spanish based dialect
Tausug- “people of the current” (Tau - refers to person, and Sung - old name of jolo)
Major Industries
● Fishing
● Agriculture
Language and Dialect
● English
● Cebuano
● Subanon
● Chavacano
● Ilonggo
● Tausug
● Tagalog
● Spanish

NORTHERN MINDANAO (REGION 10)

“Second largest island in the country”

PROVINCES - CAPITAL
Bukidnon - Malaybay City
Camiguin - Mambajao
Lanao del Norte - Tubod
Misamis Occidental - Oroquieta City
Misamis Oriental - Cagayan de oro City

PORT OF ACCESS
By air- Laguindingan International Airport
By land- Philtranco buses
By sea- Superferry, cebu ferries, and negros navigation
Major Cultural Groups
● Cebuano
● Visayan
● Hiligaynon
● Subanen
● Lumads
Major Industries
● Agriculture
● Forestry
● Fishing
● Hunting
Language and Dialect
● English
● Cebuano
● Binukid
● Hiligaynon
● Maranao
● Waray
● Ivatan
● Tausug
● Kinamigin
● Subanon

LONG TEST II

DAVAO REGION (REGION 11)

PROVINCES - CAPITAL
Davao City - regional center
Compostela Valley - Nabunturan
Davao del Norte - Tagum City
Davao del Sur - Digos City
Davao Oriental - Mati City
Davao Occidental - Malita

PORT OF ACCESS
By sea - WG&A Super ferry
By air- Ninoy Aquino International Airport
Major Cultural Groups
● Cebuano
● Boholano
● Ilongo
● Maguindanaos
● Manobos
● T’bolis
● Bagobos
● B’laans
● Samals
● Agtas
Major Industries
 ● Agriculture
Language and Dialect Spoken
● Davaoeno
● Cebuano
● Mandayan
● Dibabawon
● Mansaken
● Manobo
● Pilipino
● English

SOCCSKSARGEN REGION (REGION 12)

“Tuna Capital of the Philippines”
PROVINCES - CAPITAL
South Cotabato - Koronadal City
Cotabato - Kidapawan City (Largest Island)
Sultan - Isulan
Sarangani - Alabel (Hometown of famous boxer)
General Santos City - Smallest Island

Rio Grande de Mindanao - 2nd largest river in the Philippines

Major Cultural Groups
● Blaan
● Teduray
● T’boli
● Manobo
● Maguindanawon
Language and Dialect
● T’boli
● Blaan
● Tagalog
● English
● Hiligaynon
Major Industries
● Agriculture
● Fishing
Flora
● Marang
● Durian
● Pineapple
Fauna
● Tuna
● Sashimi
● Sardines
Weaving - T’nalak

CARAGA REGION
PROVINCES AND CAPITAL
Agusan del Norte - Cabadbaran
Agusan del Sur - Prosperidad
Dinagat islands - San Jose
Surigao del Norte - Surigao City
Surigao del Sur - Tandag

Datu - Davao Tribe

Siargao - Summer Capital of the Philippines
Major Industries
● Corn
● Banana
● Prawns
● Milkfish
Language and Dialect
● Manobo
● Visayan
● English
● Cebuano
● Surigaonon

AUTONOMOUS REGION IN MUSLIM MINDANAO (ARMM)

- Traditional homeland of muslim filipinos
PROVINCES - CAPITAL
Basilan -
Sulu -
Tawi - Tawi -
Maguindanao -
Lano del Sur

Two component cities

1. Marawi in Lanao del Sur
2. Lamitan in Basilan

Samals and Badjaos - known as “Sea Gypsies”

Tawi-Tawi (jaui-jaui) - means “far away”
Maguindanao - means “People of the FloodPlain”
“People of the lake” - term referred to the native people living around Lake Lanao

NATIONAL CAPITAL REGION (NCR)

CITIES
● Caloocan City ● Paranaque City
● City of Manila ● Pasay City
● Las Pinas City ● Pasig City
● Makati City ● Municipality of Pateros
● Malabon City ● Quezon City
● Mandaluyong City ● San Juan City
● Marikina City ● Taguig City
● Muntinlupa City ● Valenzuela City
● Navotas City
PORT OF ACCESS
By land - North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX)
By sea - Port of Manila
By air- Ninoy Aquino International Airport (NAIA)
Language and Dialect
● English
● Filipino
Major Industries
● Business Process Outsourcing
● Retail
● Gaming
● Hospitality and Leisure
● Real Estate
● Trade and Commerce