Implementing the Service Concepts and Service Management - Coursework Example

Implementing the Service Concepts and Service Management Name: Tutor: Subject: Date: Most of the developed countries such as the USA, European countries, and Scandinavian countries are experiencing a change in their economy activities. According to Tjiptono, (2012), what is experienced is a reorganization of the existing services. A service can be defined as a valuable, action, or a deed that is performed to satisfy a need. Service concept can be defined as the description of customer needs that need to be satisfied, how they are satisfied, what is to be done to the customer, and how it will be achieved (Tucker, 2013). The elements of service concept can be identified by answering the how and what of the customers’ needs. Service concept is useful for filling the gap between customer’s expectation and the service delivered. Service management is based on three important concepts; customers, employees, and operations. The aim of every business is to create a customer, therefore, defining values, needs, and expectations of the customers are important (Gemmel, 2013). The purpose of this essay is to describe the implementation of service concept and service management. Normally, customers describe service delivered using abstract terms such as competence, courtesy, etc. Customers must pass through the delivery system so that they give those characteristics. Therefore the service provided must link with the experience of the customers. In Singapore Airlines, their service concept encompasses quality, investments, productivity, skilled human resources, and profit. Quality is a necessity in the airline industry. Attracting skilled employees is important for the organisation so that they can offer quality services to the customers. Quality services contribute to customer value which leads to satisfaction. Profit maximization ensures the management of service for both the customer and the organization (Tjiptono, 2012). Irrespective of how a service organization defines their services, and how the customers perceive the service, a delivered service should be perceived correctly by customers. Service concept plays a significant role in service design and development (Tucker, 2013). Service concept does not only identifies the what and how of service design, but also shows the integration between the two. For an organization to implement service concept, there is need to identify the target market, the customer, selecting an effective service model delivery, supporting the service provision model, and continuously monitoring the implementation progress. Having a clear understanding of the nature of services to be provided will make the implementation of service concept successful. Market segmentation is required for designing appropriate service portfolio. One of the common characteristics of market segmentation and target market is that they are measurable. This means that target markets are quantifiable in terms of population, the age of the people, and income. Another characteristic is that market segment should be accessible so that goods and services are accessed and marketing strategies are applied. Marketing strategy varies for a different business. The market segment should be profitable. This is determined by the amount of disposable income that the target market is willing to spend in purchasing the goods and services to enable the business earn profit (Gemmel, 2013). A market can be segmented based on the following dimensions: demographic dimension includes age, income, the level of education, social status, geographic location, and occupation. Psychographic dimension includes price sensitivity, brand preference, price, environmental sensitivity. Behavioral dimension involves observing purchasing trends, purchasing methods, and purchasing power. Once the target market is identified based on dimensions above, the next thing is to define the customer. When an organization offer customer services that meet their expectations make them satisfied and they develop positive perception towards the organization. The customer will also start developing trust and confidence in organization’s brand. Service concept is also a tool for building customer relations since it presents the image of the organization. It is also important to economize the customer by designing prices based on the status of the customer. For example, SIA designs a pricing structure that meets the income status, different customers. The business class and first class are expensive while economy class is affordable. The services offered to the customers must also be convenient to the customers. SIA ensures that their services are fulfilling, enjoyable, and cozy. As a customer service strategy, an organization should provide good internal customer services so that they feel they are treated well and they will come back. A coherent service delivery model should also be developed indicating specific processes for creating services and delivering them. The model selected should be focused on a particular market. The model should include dimensions of customization, efficiency, opportunities, and personalization (Hakanen, 2012). The commitment and support of the top management are important for the successful implementation of service management. According to Gemmel (2013), service management begins with value, needs, expectations, realities, and conditions of customers. There is need to understand how service value in business is created for the customer. Value can be defined as the customer’s view of the benefits and costs related to the exchange of goods and services. In Amazon, customers are at the core of doing business, and the customer is actively engaged in developing the right service offer. Service environment refers to the physical and tangible aspects of an organization. The customers normally evaluate services based on the service environment because this is where the customer and the service delivered interact. Through the interaction between the service delivery and the customer, services can be characterized and classified. There are several ways that services can be classified. Some of the scholars have classified them on the factors such as market segment, skill, tangibility, regulation, goals, etc. In general, services can be classified into personal-interactive services, maintenance-interactive services, and task-interactive services. In personal interactive services, the service providers offer personalized services to the customers. In this type of services, the services are uncertain as the customer needs vary, and the customer’s questions are unclear making the service ambiguous. Examples of such services include hair salon and beauty services (Weske, 2012). In maintenance-interactive services involves direct interaction with the service provider and the interaction is short and standardized. Examples of such services include withdrawing money from cash, fast-food restaurants, and sale persons’ services. This kind of interaction is usually convenient because the customer knows what is desired. Task interactive services are task specific, and examples are engineering services, health care, and architecture. Different types of services require different management and there is need to have appropriate management techniques and approaches. John Haywood, a Canadian scholar introduced the triangular concept to understand the quality management issues. Service triangle is based on the three components of service organization; structural capital, human capital, and professionalism. The physical and processes component are made up of physical facilities, materials, and processes and procedures. Professionalism component includes ethical, diagnosis and advice, innovation, and knowledge and skills. Attitudes/behavior includes anticipation, friendliness, communication, fact, courtesy, and speed (Gemmel 2013). Employee satisfaction determines the levels of service quality and customer satisfaction. Therefore, employee and customer satisfaction leads to profitability. Mok (2013), argues that service quality focuses on customer/personal interactions and he continued to say that organizations can influence this interaction by getting employers meet employee’s needs. The organization should create opportunities for interactions so that the employee can receive positive feedback. When an employee is satisfied, the employee will become loyal and productivity and quality increases. This will increase the value perceived by customers thus increasing their loyalty resulting in increased profitability. Satisfied customers are more familiar with customers’ needs and they know how to meet them. This means that the customers will repeat purchases. Satisfaction also makes employees perform fewer errors leading to high productivity and improved quality of services. However, it is important to note that customer’s expectation and satisfaction are difficult to be controlled. Expectation can be influenced through marketing and customer feedback. In conclusion, as businesses become complicated, the possession of customers is highly dependent on services delivered. In the past, service was seen as an important aspect for offering personalized care to customers and employees. However, service is significant for justifying pricing, learn about the customer, enrich the product, and support the brand. These significances require that service concept and service delivery need to be managed. Therefore implementing service concept starts with meeting the expected needs of the customer. This can be done through clear communications and past experience (Lusch, 2014). For example, SIA handles the problem of the queue by adjusting staffing and flexibilities. Queue management, in this case, refers to the balance between customers’ demands and supply capabilities of the organization. References Gemmel P, Van Looy, B & Van Dierdonck, R 2013, Service Management: An Integrated Approach, 3rd Edition, Pearson Hakanen, T., & Jaakkola, E. (2012). Co-creating customer-focused solutions within business networks: a service perspective. Journal of Service Management, 23(4), 593-611. Lusch, R.F. and Vargo, S.L., 2014. The service-dominant logic of marketing: Dialog, debate, and directions. Routledge. Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality, tourism, and leisure. Routledge. Osborne, S.P., Radnor, Z. and Nasi, G., 2013. A new theory for public service management? Toward a (public) service-dominant approach. The American Review of Public Administration, 43(2), pp.135-158. Tjiptono, F., 2012. Service Management: Mewujudkan Layanan Prima-2/E. Tucker, F.G., 2013. Creative customer service management. International Journal of Physical Distribution & Logistics Management. Weske, M., 2012. Business process management architectures. In Business Process Management (pp. 333-371). Springer Berlin Heidelberg. Zurich, L.B., 2017. Service Operations and Management. Read More