Customization of Service Design - Assignment Example

 Customization of service design and service delivery can be defined as the bunch of services that are designed and delivered according to the individual needs of different customers. Customized services also can be considered as modified services according to the needs of consumers. On the other hand, standardized service design and service delivery process can be defined as the designing and offering of services according to the demand of mass market. The organizations generally follow mass market standardization and industry standards in order to offer services. Service industry occupies an important position in the economy of the developing as well as the developed nations. Several studies related to the hospitality industry suggest that the gap between the customer expectation and customer perception can be closed by implementing new innovation in the quality of service. Most of the operating systems available in the travel, tourism and hospitality sector have a direct and immediate impact on the customer (Aaker, 2009, p.86). The operations functions of hospitality sector include timely service, quality products and extremely good behaviour with customers. The service design and delivery of hospitality sector is broadly classified into standardization and customization of services. In the contemporary era, customization of products and services are highly valued by customers. In order to enhance the quality of service in hospitality sector, it is essential that customer judgments, outcomes, delivery and customer panels are given importance. Proper marketing of brand is very important regarding hospitality sector. The customers prefer to visit places that have high quality brand image as well as reputation in the hospitality market (Baalbaki, 2009, p.72). The existing customer-base of hospitality sectors expects standardized quality regarding products and services. But, the consumers in the modern and contemporary era expect customized service design and service delivery process. This essay will argue for customized service design and service delivery processes are more demanding comparing to the standardized process. With respect to commercial hospitality, it is important that both standardization and customization factors of service design and delivery are enhanced. Travel, tourism and hospitality have several implications towards the management of operations. For standardizing design and delivery of hospitality services, the key factor is to deliver on the promise made to customers. For sustainability of an organization in the hospitality sector, the important factors are customer satisfaction, customer tracking ethics, training and development of employees and media and promotions (Sarbu, 2010, p.99). This essay provides discreet knowledge about the similarities and differences between standardization and customization of hospitality industry with respect to individual needs of customers. And, it will also discuss how customization in service design and service delivery is more effective than standardization. Previously the expectation of the customers of hospitality sector was limited. People just expected good behaviour from and proper etiquette from the employees. However, the customer expectations have changed gradually from the hospitality organizations due to change in the operational process of the organizations (Usinier, 2000, p.72). In the modern world, sustainability of hospitality organizations has become very difficult due to high competitive market. In order to establish a company the management of the companies has discovered various paths to amuse their customers and make their experience best in the market. The hospitality industry is an old business sector but it has emerged gradually due to high demand in the market by customers (Bowie and Buttle, 2004, p.42). Initially hospitality industry focused on the standardization of products and quality of service. However, the rise in the competition of hospitality sector in the market has enhanced the quality of service as well as the products available for people. Therefore, it can be identified that, slowly and gradually the organizations changed their service delivery and service design orientation from standardization to customization due to growing market competition (Gugenheimer, 2006, p.78). It is clear from the previous discussion that why standardization was transformed into customization. The companies in the hospitality sector have gradually enhanced their organizational procedures and adopted customer loyalty programs in order to provide flaw less customized services (Keller, 2008, p.9). Most of the hospitality companies have adopted customer feedback programs in order to know about the feedbacks obtained from the customers. The standardization of the hospitality organization has been enhanced by developing such programs. The negative experiences of the customers are taken very seriously and the employees are trained appropriately for providing better services to the customers (Pizam, 2010, p.88). Customization, on the other hand is adopted by organizations in order to implement the changes that are necessary for providing better services. The main products of the hospitality sector are the food, lodging and transportation services. The services available to customers are measured with the help of feedback charts available for customers. These programs have helped the organizations to provide optimum quality service and enhance the brand image of the organization in order to ensure sustainability (Okumus, Altinay and Chathoth, 2010, p.72). The most effective customer loyalty program in the modern world is the discounts and concessions that customers enjoy after visiting a hospitality company. Satisfied customers majorly look forward to memorable experiences and dynamic services from the employees of the hospitality companies. Most of the customers feel disappointed with the services when they are not provided the quality of service or products that they are assured from the organizations (Hassanien, Dale and Clarke, 2010, p.18). The industries of hospitality sector have intended to be more customized with their product and services because it helps them to alter the products that re disliked by customers. Customization of a product includes some micro or macro changes in the quality of the products or services that are supplied to the customers. Standardization of products includes maintaining the present quality of product and assuring high quality service. The delivery of service by the employees of hospitality industry is the most important feature as it holds the reputation of the organization in an aggressive market. Customization of service delivery and service design was very important for the organizations within the hospitality industry in order to maintain the competitive edge in global market place. It is true that, previously the organizations generally considered providing standardized hospitality services in order to target global mass market. But, slowly and gradually the degree of industry rivalry has increased significantly (Misra, 2008, p.71). In addition to this, the demand for customized and differentiated customer service has increased drastically in this contemporary era of globalization and technological advancement. Previously, the organizations in the global hospitality industry were trying to use pull marketing strategy due to lack of demand for differentiated hospitality services and lack of intense market competition. Therefore, the organizations were trying to use traditional and standardised service design and service delivery process. The management of the organization did not try to adopt and implement customized designing and delivery process due to the favourable aspects. Before globalization, the management of the organizations tried to develop strategies and made approaches based on the requirement of mass market (Hudson, 2008, p.26). It is also true that, the target audiences in the mass market had similar types of demand of the hospitality products and services. It is clear from the above discussion that, the adoption of customization of service delivery process and service design is highly justified. The organizations in the global hospitality industry are going for mass customization in this contemporary era. Hospitality industry includes several organizations, such as travel and tourism organizations, hotels, resorts, guest house and food and beverage organizations. It has been identified before globalization that a hotel used to provide different services, such as package tours, food and beverage services and other hospitality services. But, in this present era of globalization, there are several organizations that used to provide vendor services (Salvendy, 2012, p.41). A guest house or a resort has a spa services run by different vendors, food and beverage run by different vendors, travel and tourism services run by different vendors. Now-a-days, there are several organizations are specialized in individual activities in the hospitality industry. However, in terms of comparison, there are very few comparisons actually. The organizations within the industry have redefined the service design and service delivery process (Lashley and Lincoln, 2003, p.41). The above statements and facts can address that how and why the organizations are going for customized service delivery process as customization is more customer service or9iented aspect comparing to the standardization.. However, there are some similarities and several differences between customization and standardization of service design and service delivery process. These two things need to be discussed in this essay in order to choose the better option for customer service management process of an organization (Brotherton, 2012, p.32). In terms of similarity, there are certain aspects that can be considered. Effective customer service management process can be considered as one of the important integral aspects for each and every organization. Hospitality industry can be considered as the service providing industry and several organizations within this industry always try to focus on effectiveness of the customer service management process (Lashey and Morrison, 2000, p.98). In addition to this, the business performance of the organizations within this industry always depends upon the effectiveness of the customer service management process. Inadequate service design and service delivery can hamper the effectiveness of business operation process and business performance of the organizations. In addition to this, effective turnaround timing can be considered as one of the important business operation aspects of the organization. Throughout the years, the organizations within the hospitality industry have significantly focused on the effective turnaround time of the operation processes and service delivery processes (Lillicrap, Cousins and Smith, 1999, p.108). The organizations within the hospitality industry have customized the standardization processes in order to meet the customer satisfaction level. Therefore, it can be stated that the service design and service delivery processes always focuses on effective customer service management process and efficient turnaround timing in both standardization and customization. In addition to these, there are several organizations in the global hospitality industry that consider standardised delivery as well as customized delivery process (Nickson, 2007, p.71). This aspect can be identified in the food and beverage industry in which the organizations have followed standardized as well as customized service design and service delivery process. In addition to this, the hotel sector under the hospitality industry also has considered both standardized as well as customized service design and service delivery process. The service differentiation and diversification, such as hotels, resorts, spas and guest houses are considered as customization (Baum, 2006, p.68). On the other hand, consideration of effective room night packages and tariffs including other hospitality services can justify the similarity between the service design in standardization and customization. Therefore, it can be stated that both the standardised and customized service design and service delivery aspects are important for the organizations within the hospitality industry to meet the expectation and satisfaction level of the customers (Lockyer, 2012, p.29). The concept of pull and push marketing strategy has come up due to the transformation of standardization into customization. Now-a-days, the hospitality service providing organizations are going for customization through pull marketing strategy. It has been discussed earlier that the concept of service design and service delivery process has changed slowly and gradually in the hospitality industry due to globalization. Intense market competition and strong service diversity and service differentiation can be considered as the consequences of the globalization (Zainal, 2012, p.45). It is true that, organizations in the global hospitality industry used to follow standardized service design and service delivery process earlier. But, after the Second World War, the concept of business environment has changed significantly. Several organizations across the globe are trying to gain potential competitive advantages over their competitors (Wood, 2008, p.19). In addition to this, the demand for differentiated and diversified products and services has increased significantly. In terms of adoption of customization process, several organizations generally follow different types of customization process due to nature of market demand and customer expectations. It has been discussed earlier that the organizations used to focus on the pull marketing strategy due to the lack of intense market competition (Baker, 2005, p.51). In addition to this, it is also true that the market size in previous years were not that much saturated, that would create challenges for the organizations. Therefore, the organizations used to focus on the specific and particular service design and service delivery process according to the industry standard. Slowly and gradually, the business scenario has changed and it has influenced the management of the organizations within the industry to do some experiments in the service design and delivery process according to the changed market demand (Poustie, Ross, Geddes and Stewart, 1999, p.8). Somehow the organizations within the global hospitality industry have succeeded to offer services according to the needs and satisfaction level of the target customers. Contemporary era of globalization has forced the management of the modern day hospitality organizations to customize their service designs. Service design includes strategy development of the intended services that will be offered to the target customers. There are several things in the service design and service delivery that can be customized (Ransley and Ingram, 2004, p.45). There are four types of customization in the service delivery and service design process. These are collaborative customization, adaptive customization, cosmetic customization and transparent customization. In this contemporary era of globalization, several organizations within the hospitality industry follow collaborative customization quite aggressively. This customization process includes customer engagement, identification of needs of target customers, making and delivering of customized products and services to the guests and customers (Lucas, 2004, p.37). On the other hand, adaptive customization forces the management of the organizations to offer standard but customized services for the customers (Pantelidis, 2014, p.39). This specific approach can be considered as one of the most important business operation approach for the organizations within the hospitality industry as it can help the management to use its products and services in different ways. It can help the organizations to fulfil the expectation level of the customers and demand for differentiated and diversified services and products (Teare, 2001, p.73). Cosmetic customization can be considered as other effective service delivery approach. An organization can find cosmetic customization effectively successful when the customers look for similar service with extra value addition. It is true that the cosmetic customization can be considered as the major outcome of niche marketing and service delivery strategy. It is true that the, demand for unique and customized products among each and every individual customer is changing drastically (Jauhari, 2008, p.91). Specially, in the hospitality industry, the demand for services differs from an individual to another individual due to availability of several unique resources in service and product category. On the other hand, globalization and technological advancement has played an important role behind this aspect of the demand for differentiated products and services (Buttle, 2007, p.12). Therefore, the organizations are influenced to adopt this strategy as this can help the management to customize any kind of strategy according to the needs and expectation of the target customers. On the other hand, transparent customization also can be considered as one of the important customized service design and service delivery approach that helps an organization develop service design and service delivery approach according to the prediction. It is true that, prediction can lead to the wrong strategy development process. In this case, the organization needs to have experience and market knowledge about the right prediction about expected service delivery process (Jauhari, 2008, p.81). Standard package and services can be offered by the organization according to the mentality of the global consumers. In this case, the organization considers the offerings customized based on the demand for differentiated customized services. Therefore, it can be stated that standardization and customization are both important for the service industry. Customization is the result of standardized service delivery and design process (Hudson, 2008, p.25). In terms of differentiation and dissimilarities, the example of Marriott Hotel can be considered. It is true that Marriott can be considered as one of the leading luxurious hotel chains that have business presence in several developed and developing countries. Despite the industry standardization, the hotel usually provides differentiated services in different countries according to the tradition and culture of particular countries. In addition to this, different types of cultural food menus, different types of physical evidences and different types of in-room services are being identified inside of the hotel (Baalbaki, 2009, p.71). Actually, the organization develops and modifies its services according to the demand of individual organizations. It is clear from the above discussions that customization of service design and service delivery can offer high quality service and it can help the management of the organization to meet the satisfaction and expectation level of the target customers (Mills, 2012, p.22). The degree of industry rivalry in the global hospitality industry is increasing at a constant rate. In addition to this, the scope and area of demand for high quality and differentiated services are also being increased by the organizations. Therefore, it is highly effective for the organizations within the global hospitality industry to focus on the customized service delivery and service design process. Customization has several benefits for the organizations comparing to the adoption and implementation of standardization. First of all, this aspect will help the organization to offer different types of service and product portfolios for the organizations. Service design customization and service delivery customization mainly comes under the business level strategy (Williams, 2009, p.14). There are three types of business level strategy, such as differentiation business level strategy, cost leadership business level strategy and focus business level strategy. An organization can gain huge success in the hospitality industry if the management of the organizations succeeds to fulfil the demand and expectation level of the target customers. It is true that, demand for differentiated, cost-effective and high quality hospitality products and services are increasing significantly among different types of customers (Mills, 2012, p.21). It is highly important for the organizations in this contemporary era of globalization to satisfy the customers considering the needs and expectation level of each and every customer. Otherwise, the organization may lose its customers to other competitors competing in the market place. In addition to this, it is also important for the organizations to consider the development of effective business level strategy to develop- customised service design ad service delivery process. This aspect will help the organization in several ways. First of all, the organization can overcome threat of high market saturation and strong market competition (Riel, 2005, p.97). In addition to this, it will also help the organization to develop potential customer base. Last but not the least; it will help the organization to attain positive and effective business growth rate as it will help the organization to meet the market needs, customer satisfaction level and customer expectation level. Therefore, customization is better comparing to the standardization to meet customer satisfaction level. It is clear from above discussion and analysis that the organizations within the global hospitality industry generally focus on effective service design development and significant service delivery approach. It is true that several organizations within the industry are focusing on differentiation strategy and also trying to enhance customized service design and service delivery process as these help the organization to gain potential competitive advantages over the competitors (Morrison, 2012, p.15). The global hospitality industry has become highly competitive as well as saturated. In addition to this, this intense market competition has forced the organization within the industry to offer high quality and standardized services to the consumers. The service design and service delivery of hospitality organizations need to be customized rather than standardized. Demand for modified services is increasing significantly among the target customers. Therefore, it is highly important for the organizations to maintain sustainability and maintain competitive edge by meeting individual needs of the customers through the customization process (Williams, 2009, p.18). This customization process will help the organizations to modify the service that will be delivered to the organizations. The demand for high quality and customized differentiated services has increased significantly among the target customers due to intense competition and high market saturation. Overall, it can be stated that customization is better than standardization in order to meet the individual demand of target customers. Therefore, it is proved that service design and service delivery process of each and every organization within the hospitality industry needs to be customized in order to enhance customer satisfaction and meet the expectation level of the target customers. References Aaker, D., 2009. Strategic Market Management. London: Sage. Baalbaki, I., 2009. 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