Service Management - Service concept, SERVQUAL

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”.

Everybody of the customer experience is of central strategic value to the organization. The company which thinks that customer experiences is just a matter of improving a few select business process will always lag behind competitors who are making customer experience a core competency of the entire organization.

service gave the company an advantage over its competitors. According to the senior management Quality of

To further appreciate the concept of value creation it’s imperative to recognize that “everything culminates into the customer experience” (Rustogi, 2015a). Customer service is not the only component of value creation, the way in which a product is advertised, packaged, and presented along with the features, ease of use, and reliability of the product or service all encompass the customer experience. As such, it is extremely important for companies to incorporate each of the above components into their strategy when deciding on what product or service to provide. A majority of companies overlook the value that goods and services afford customers and will manufacture items the company thinks the customer wants.

The information in the first part of this report supports the notion that effective business enhances the customer experience for an organisation. It indicates some key skills that must be implemented to ensure the customer experience is of a high standard. Customer experience can be defined as the interaction between customer and organisation and perceptions gained through their experiences. A successful company should strive to provide high customer experience and ensure this standard is maintained through the life of the customer relationship.

The top most requirement in successful marketing is achieving customer satisfaction. The business person should, most importantly, realize that customer satisfaction is the most important step into marketing success and so should always be the number one priority of the company (Ball et al, 2006). As the only people who know what customers want are customer themselves, the business

Service-orientation defines service-level objectives as well as the measurement of the delivery of those objectives.

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

The concept of services has an approach for solving complex tasks in a collaborative manner. A service is a nameable entity which is responsible for providing the information or performing actions with specific characteristics. Service is independent and need a framework, discovery and transport and execution. In other terms service is defined as a business firms that works for a customer which provides goods and services but does not involve in manufacturing of those goods. The major retail industries providing their services in USA are “Walmart, Target, Sears and Dollar General”.

In today’s world, the service sector dominates the different economies of developed and developing nations. Services require different management activities, “it differs a lot from the marketing of goods” (Berry, 1980). Indeed, services are considered as intangible, variable and perishable (marketingteacher.com). Thus, we can say that the traditional 4 p’s are not sufficient anymore. Indeed, the service marketing mix should now include three other elements, which are the physical evidence, the people and finally, the service process (learnmarketing.net). In addition, we can say that the marketing of goods is not as critical as the management of services quality, which occurs through the monitoring of customer satisfaction. In contrary to the marketing of goods which is more focused on the physical product component, services require a certain customer loyalty, this implying having good service marketing skills.

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

From plentiful literatures we can see customer satisfaction is related to the quality both of product and service. According to Regan (1963), he is one of the first to draw the relation between service quality and customer satisfaction, and since that time service industry research has flourished for a long time. Specifically, practitioners and academicians have been interested in how consumers conceptualize service quality.

According to the definition of the expectation, in order to understand the need and wants of customer, combination of research and market experience is necessary. There are number of exogenous factors including their previous services experience and expectation of the brand which provide cues about the level of service. This is what being referred as customer expectation. Moreover, in order to understand the expectation of guests, the complex issues because of service transaction which is known as moment of truth, are social acts between individual employees and guests (NORMAN, 1991). This is considered as management perception service quality gap. In addition service quality is linked with expectation. If the employees have been asked to fulfill the expectation of the customer by providing them with the quality of service, unfortunately with the lack of training skills in their staff management and they are unable to interpret because of the complex guidelines. This is the reason of the bad quality of service. Customer satisfaction is co-related to customer expectation, perception and service quality because it is the responsibility of the employee to reduce the stress of the customer. If they will not do so then they will have to face the problem with the bad reviews towards their hotel, restaurants, motels, etc. If they create a pleasant experience of their customers by satisfying them with overall feeling of contentment with a interaction by solving their

Companies are required to satisfy the customer by providing appropriate services and value-added for customers. A strong commitment to quality service and customer-oriented is a major prerequisite in supporting business success.

Service quality, in terms of customers’ perception, arises from a comparison of what customers expect that companies should offer with the companies’ service performance they perceive (Parasuraman et al, 1988). In order to maximise customer satisfaction, companies need to know what service components are important in customers’ perception and try to deliver good service quality with suitable proportions of those components.