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| Chapter 4 provides the service system design matrix as an example of the tradeoffs commonly faced in strategic decisions. The increase in services in the past 2 decades makes these tradeoffs even more common. Service aspects of manufacturing businesses make these decisions almost universal for every business, despite the huge variety of different services. | VIDEOss1 |
| The service system design matrix, explained in Chapter 4, aids in the strategic design of the service system so that customer expectations and business needs can both be met. | VIDEOss2 |
| Like many large service-oriented businesses, First National Bank of Chicago (FNBC) utilizes a variety of service delivery approaches. | VIDEOss3 |
| FNBC utilizes the mail contact approach for delivering bank statements. It is efficient, can handle high volumes, and accomplishes customer needs. | VIDEOss4 |
| On site technology, with no face to face contact, is used for automatic deposits from customer employers. ATM's also represent this type of service. | VIDEOss5 |
| Phone contact, increasing sales opportunity but decreasing efficiency, is used when customers call for a balance inquiry. It is not efficient, but allows the bank agent the capability of explaining the problem, but can't really take action to correct it. | VIDEOss6 |
| Face-to-face with tight specifications is exemplified at FNBC when a customer makes a withdrawal. The tellers actions are tightly controlled, leaving little room for error. | VIDEOss7 |
| Face-to-face with loose specifications leaves room for options on the part of the service provider. Opening a checking account, for example, requires this approach. The service provider must be able to facilitate decisions made by the customer by providing an explanation of alternatives. | VIDEOss8 |
| Face-to-face with total customization leaves the server and customer open for complete discussion and decision-making of all possibilities. A customer interested in a loan, for example, would need this type of interaction to be able to accommodate the wide degree of latitude necessary. | VIDEOss9 |