Retail Services Characteristics

2084 Words Oct 11th, 2012 9 Pages
In this paper the most common services characteristics, namely perishability, intangibility, inseparability and heterogeneity will be applied to a well - known retail services brand. In this case the focus shall be on how the aforementioned characteristics apply to Starbucks. In order to better understand the problem the history of the company alongside current corporate objectives will be briefly described. In the following paragraphs the notice will be mainly on the retailer’s ability to cope with the theory’s implications.
The first Starbucks coffee shop was opened in 1971 in Seattle. The name was inspired by Moby Dick and the logo which has now become somehow of a cult figure is a twin-tailed mermaid. However it wasn’t until 1987 when
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Specific problems can occur where staff is involved in providing services on a one-to-one basis. In these cases no easy method of monitoring or control is possible. There are two particular aspects of heterogeneity which are relevant to the services. The first one is the extent to which production standards vary from a norm, both in terms of outcomes and of production processes. The second one is the extent to which a service can deliberately be varied to meet the specific needs of particular customers (Palmer, 2005). In order to tackle the aforementioned aspects of heterogeneity and also to satisfy customer needs retailers usually standardize the service as much as possible without noticeably affecting the perceived customer value. Many service organizations have reduced variability by adopting equipment-based production methods or by offering already prepared menus or meals. However Starbucks took a slightly different approach here then some fast-food outlets. They are offering more than 87,000 different drink combinations. With that in mind they cannot simply standardize the whole process of coffee making. Customers want to see consistency and quality in their stores so for that purpose they offer their front-line staff a basic training and they are also using some motivation tools to enhance staff performance. So for instance they refer to their employees as partners and their pay package is
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