1. The Service Concept:
Just like production, service industry is also a vast plot that has its own keen interests and points, though different from production processes but equally important. Similar to production, services also have procedures, and each of them must have to be done properly, at right time and with right care. And these steps, procedures, follow ups need to be defined and recorded properly by the service providers. And here the term helpful, is THE SERVICE CONCEPT.
The service concept actually defines the service design, it’s basics, it’s how and what, and helps intervene between an organization’s strategic plan and the customer’s needs. It’s a roadmap which shows an organization’s strategy of winning the customers
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Each brain will come up with a different idea unless a guideline is provided about the desired outcome. Similarly, it’s crucial to the Internal and external customers of the organization to know about the quality of the service they are paying for, the nature of the service the internal customers are promoting, and whether the service is worthy enough to be paid for or not. All these decisions depend on the nature of service and business and this is communicated to the customers through service concept.
The service concept can be used to drive strategic advantage in terms of pay-off during developing and defending a market position. The service concept covers strategic plan while service design planning, and the service delivery system shares the structure (including equipment/ facilities) ,infrastructure (covers job design and HR skills) and processes for delivering a service.. The service concept gives a framework for these linkages. Even the design of service recovery processes is enhanced by the service concept. Designing suitable recovery methods depends on the type of service, the type of customer relationship you are offering, and the target customer segment which is to be focused by the organization.
Limitations:
However there are some limitations of this concept. There are no set rules for the service
Smashburger is a rapidly expanding burger restaurant concept; they have announced a summary of its 2011 accomplishments and their marketing and expansion plans for 2012. Opening their first location in 2007 and growing rapidly ever since, now in 2011 Smashburger had yet another successful year of growth and consumer acceptance. Smashburger is quickly gaining national recognition for its juicy handmade burgers that are smashed fresh and served delicious, along with its localized recipes that celebrate regional taste profiles in
Service innovation happens when a company changes and improves their customer service methods. This makes the company’s product more desirable to customers because they are offered better customer service. This also gives the company the opportunity to build a better relationship with their customers. Often service innovation involves getting customer feedback on how to better their customer service. Better customer service creates more customers and; therefore, more cash flow and profits are experienced by the company.
Service management combines the required services with organizational solutions and thus new generation user service becomes simplified. These forthcoming services are necessitated to be interrelated and combined in order to meet the demand of socio- economic factors such as environment analysis, safety measurement, climate management, agriculture modernization
This course focuses on services management in general and service operations in particular. It explores the elements that unite services, that differentiate service processes from non-service processes and that differentiate various types of services from each other. Customers generally participate in the service process, often with direct and uncensored interactions with employees and facilities. The resulting
The service experience includes four different aspects that must be understood before analyzing the experience: services setting, the service workers, the service customers, and the service process. The service setting is where the action or service performance unfolds (Fisk et al, 2014, p. 26). The setting can also be what the customer is unable to see (backstage). The service workers are those who work together to create the service for the customers including the seen and unseen. The service customers are the person, group, or organization receiving the service. Finally, the service process is the series of events during the service received (Fisk et al, 2014, p. 26).
Firstly, it is important to gain understanding as to what the service concept is. Johnston et al. (2012) defines a service concept as “a shared and articulated understanding of the nature of the service provided and received, which should capture information about the organising idea, the service provided and the service received – the experience and outcomes”.
The service experience includes four different aspects that must be understood before analyzing the experience: services setting, the service workers, the service customers, and the service process. The
What service design looks like and how its implemented from the company all the way down to the customer, what managing
There has to be an understanding of the complexity of services before one can begin to determine what challenges face the service industry and the most efficient means of facing those challenges to maintain success. A service organization provides intangible services for a monetary value as perceived by the consumer (Lovelock & Wirtz, 2011). A simple definition is that there are no physical items exchanged in a service transaction as opposed to retail where an item is given in exchange for a predetermined price point. This paper will provide
The concept of service comes from business literature. Many researchers have proposed different definitions of service. Ramaswamy (1996) defined service as "business dealings that take place between the service provider (Donor) and the receiver (Client) to produce a result that satisfied the customer. According to Lovelock & Wirtz (2011) services are economic activities provided by one party to another. in exchange of money, time and effort, service customers expect the value of access to property, labor, professional skills, facilities, networks and systems; but they do not normally take ownership of the physical elements
Tangible goods, or rather manufactured goods, have been the dominant medium of exchange for centuries. However, recent decades have proved that it is no longer the case as there has been a prevalence of being service oriented (Vargo and Lusch, 2004:1-2). Services, as defined by Vargo and Lusch (2004), are “the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself (p.2).” Utilizing services gives businesses an edge, a competitive advantage, particularly in an evolving competitive market, something which Metalfrio is definitely part of (Vargo and Lusch, 2004:9). Those businesses that learn to adapt tend to do well. In addition, Vargo and Lusch (2004) write this shift to services is also a shift from producer perspective to a customer perspective (p.2). Thus, it leads to more of a collaborative effort where co-creation leads to adding value to the service rather than a product having value (Vargo and Lusch, 2004:6). Also, customers rather develop relationships with those that can provide a range of related services over an extended period of time, thus allowing businesses retain their clients for the long term (Vargo and Lusch, 2004:13). Overall, service oriented marketing is a direction that businesses should be headed towards to ensure that they can remain relevant and competitive in the
“Services are acts, deeds, performances, or relationships that produce time, place, form, or psychological utilities for customers” (Roberta S. Russell, 2014, p.194). Besides, there are some other explanation of service design: Service design is all about making the service you deliver useful, usable, efficient, effective and desirable (UK Design Council, 2010); Service design aims to ensure service interfaces are useful, usable and desirable for the client’s point of view and effective, efficient and distinctive from the supplier’s point of view (Birgit Mager, 2009); When you have two coffee shops right next to each other, and each sells
Risk of words alone creates miscommunication in the service design. Oversimplification, incompleteness, subjectivity, and biased interpretation are potential failures in a firm’s communication process. For this reason a systematic method of service design is essential to a firms planning and avoidance of service failures. Service blueprinting is an effective method of designing a firm’s service to efficiently organize and inform employees without incorporating communication failures. Chart 1.2 is a service blueprint of a typical firm in the coffee shop industry.
We have learnt from Servicer Strategy that service means to provide guidance on design, and how to implement them according to the needs of the customer. From the service lifecycle Service Design comes after the service strategy (Annexure A). The service design is not limited to new services, but also to old services which are need to improve the service design which are necessary to maintain the value to customers. The main objective of service design is designing an innovative idea or to change an existing design into a live environment. To change a design or to implement there are several requirements. These requirements are taken from the service portfolios and they are analyzed. There are teams which will indulge in this process and