Positioning and Differentiation of Services

Services firms are not identifying their key market segments and then determining how they wish consumers to perceive both their company and its products and services. Positioning is of particular significant in the services sector as it places an intangible service within a more tangible frame of reference. Thus the concept of positioning stems from a consideration of how an organization wishes its target customer to view its products and services in relationship to those of its competitors and their actual, or perceived, needs.

“Positioning is concerned with the identification, development and communication of a differentiated advantage which makes the organization’s products and services perceived as superior and distinctive to those of its competitors in the mind of its target customers.”… Read the rest

The Gap Model of Service Quality

The Gap Model of Service Quality  has been developed by Parasuraman and his colleagues which helps to identify the gaps between the perceived service qualities that customers receive and what they expect.

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The Gap Model of Service Quality  identifies five gaps:

  1. Consumer expectation — management perception gap.
  2. Management perception — service quality expectation gap.
  3. Service quality specifications — service delivery gap.
  4. Service delivery — external communications to consumer’s gap.
  5. Expected service — perceived service gap.

Gap — 5 is the service quality shortfall as seen by the customers, and gaps 1-4 are shortfalls within the service organization.… Read the rest

Service Process

Service process  refers to how a service is provided or delivered to a customer. Delivery system is a creative process. Service process  begins with a service concept and strategy to provide a service. In order to achieve these objectives various alternatives must be analyzed and identified before a decision is made. Designing a service process involves issues   such as location facility, design and layout for effective design   layout and workflow, procedure and job definitions for service quality, equipment selection and adequate service capacity

According to Clovelock there are some operational issues which have to be considered while designing the service process.… Read the rest

Service Process Planning

The following are the strategic decision and design elements must be considered in the service process planning.

  1. Basic technological decision
  2. Conversion/ Market decision
  3. Specific equipment decision
  4. Process flow decision
    1. Blue Prints
    2. Flowchart
    3. Front and Back office
    4. Layouts
    5. Bench marks
  5. People decision
1. Basic Technological Decision

In some, technology exists but not only in customerised form. So the question arises :whether the technology available can be developed to provide the raw material, process and equipment to deliver the service? For example , at one time it was possible to design printed electronic circuits on small chips, but the technology and specific equipment required to produce the chips are beyond the state of act.… Read the rest

Introduction to Services

A service is the non-ownership equivalent of a good. Service provision has been defined as an  economic activity that does not result in ownership and is claimed to be a process that creates benefits  by facilitating either a change in customers, a change in their physical possessions, or a change in their  intangible assets.  By composing and orchestrating the appropriate level of resources, skill, ingenuity and experience for  effecting specific benefits for service consumers, service providers participate in an economy without  the restrictions of carrying stock (inventory) or the need to concern themselves with bulky raw  materials. On the other hand, their investment in expertise does require consistent service marketing  and upgrading in the face of competition which has equally few physical restrictions.… Read the rest

SERVQUAL Model for Measuring Service Quality

Quality is the key to achieving customer satisfaction. Quality is a dynamic state associated with products, services, people and environments that meets or exceeds expectations. Quality is also rapidly embracing the nature or degree of impact an organization has of its stakeholders, environment and society.

In the service industry, definitions of service quality tend to focus on meeting customers needs and requirements and how well the service delivered meets their expectations. In order to deliver and maintain service quality, an organization must first identify what it is that constitutes quality to those whom it serves. The key to ensuring good service quality is meeting or exceeding what customers expect from the service.… Read the rest