Operation Management

Both the service philosophy and resource allocation belong to first-phase preparation for service delivery. Service operation is the actual operation phase of service delivery, and the key to the transformation from competitive advantages created in the phase of resource allocation to actual competitive capacity, for it determines the degree of realization of the service philosophy. Owing to the simultaneity of production and consumption, service delivery can only be realized after customers enter service establishments, thus service marketing becomes the primary task of service operation; particularly in such an age of service economy with typical characteristics of network, brand marketing, relationship marketing and Multi-Channel marketing become more eminent. Service process experience becomes an important part of service operation management, for customers will experience queuing and waiting, interaction with other customers, and interaction with service staff after entering service establishments. After service consumption is completed, customers will evaluate the service quality based on their service expectations and the actual quality perception. Therefore, formation mechanism, evaluation, and control are three important factors to be given consideration in service quality management. The sustainable delivery of services is based on profit maximization, thus in service revenue management, service enterprises, challenged by non-storability of services and volatility of demands, should adopt appropriate methods, balance service supply and demand, and realize service profit maximization.