Project on Employee Attitude Essay Example

particular barber in the future, but they cannot separate the creation and experience of services. This means that services are encountered while they are being produced. When a customer gets a haircut, they are both receiving and using the service at the same time. Unlike buying a burger to eat later, this immediate consumption is special. Furthermore, it is difficult to dissociate the service provider from the service itself. Barbers have an essential role in delivering haircuts to customers.

The text discusses various service firms, such as banking, stock broking, restaurants, bars, catering, insurance, news and entertainment, transportation (freight and passenger), healthcare, education, wholesaling and retailing, laundries, dry-cleaning, repair and maintenance. It also mentions professional services like law, architecture and consulting. Additionally mentioned is the postal service as an example of a service industry. Other examples of service industries include healthcare (hospital care providers such as medical practices dentists eye care), professional services (accounting legal architectural), financial services (banking investment advising insurance), hospitality (restaurants hotels/motels bed & breakfasts ski resorts rafting) and travel (airlines travel agencies theme parks). The text highlights the importance of the service sector in the economy. In many countries it holds greater economic value than agriculture raw materials and manufacturing combined. Developed economies heavily rely on service jobs for new job growth across various pay levels ranging from high-paid professionals to minimum-wage positions. Service organizations can range in size from large global corporations to small local businesses. Government agencies and nonprofit organizations are also predominantly involved in providing services. The analysis of the evolution and growth of the service sector is done through the lens of services marketing.
Fisk, Brown, and Bitner (1993)

conducted a study comparing the history of services marketing to biological evolution. They identified three stages in the emergence and development of this field. The first stage, known as "Crawling Out" (Pre 1980), involved early services scholars establishing and defending the services marketing field. In the second stage, referred to as "Scurrying About" (1980 to 1985), there was rapid growth and an enthusiastic community of scholars who laid down the foundation for services marketing. The third stage, called "Walking Erect" (1986 to 1992), represented a period when the services marketing field gained recognition and legitimacy within both the marketing discipline itself and beyond it. Before examining recent developments in services, it is crucial to understand why marketing initially inclined towards recognizing and studying services. This inclination stems from marketing's inherent focus on customers.

It is important to note that marketing managers and academics were the first to witness service failures and inefficiencies as the service economy grew. These issues were observed by marketing managers and academics in North America and Europe. This customer-centric approach positions marketing in a favorable position to address the future needs of service customers.

The Second Era: The Emergence of a Multidisciplinary Field

There have been significant changes in services marketing since the publication of Fisk, Brown, and Bitner (1993).

In order to demonstrate the changes in services, we have chosen a metaphorical approach by transitioning from biological evolution to social evolution. The recent stages of service evolution have focused on the development of tools. Technology, especially information technology, has played a significant role in enabling service industries to improve their offerings with advanced technological features for customers. The Internet and web-based services have been

instrumental in driving these technological advancements. Furthermore, there has been an increase in the use of self-service technologies. These changes have prompted service marketers to explore how technology can be integrated into services and how self-service technologies affect customer-firm relationships.

Creating Language is one of the most sophisticated tools created by humans. Each academic field develops its own technical language to communicate knowledge within the community of scholars. In the marketing field, terms such as service encounters, service quality, service theater, service experience, servicescapes, and service recovery have become mainstream from services marketing.

Building Community: The Future of the Service Field

Building Community is the next stage in the social evolution of the service field.

Academic disciplines have crucial roles in generating and spreading knowledge. As the academic study of service phenomena has expanded from its origins in services marketing and management, the growing number of participants in the services field presents both opportunities and risks. We posit that the broader services field has reached a crucial point, where sophisticated social networking is necessary to foster the growth and dissemination of service knowledge.

The text discusses the growth and expansion of the service field, from its origins in services marketing to a more encompassing discipline. It also provides suggestions for the future development of the service field. A key aspect highlighted is the importance of fostering a culture of multidisciplinary collaboration, which would help create a community comprising scholars, business leaders, and customers. To facilitate communication among individuals involved in different service areas, it is crucial to have T-shaped people who possess expertise in multiple disciplines, including those from the arts. These individuals can bridge the gap between various fields

of service expertise and enable the transition from isolated knowledge to interconnected knowledge networks.

A customer-centered orientation must be adopted and maintained throughout the entire service field. This includes not just service marketing, but all aspects of service. Services can be classified based on the degree of involvement of the customer. There are three categories: People Processing, Possession Processing, and Mental Stimulus Processing. People Processing requires the customer's physical presence, such as in a school or training center. Possession Processing doesn't require the customer to be present but they must submit their property to the service provider, such as with a car. Mental Stimulus Processing requires the customer's attention to be directed towards the service. For example, advertising is a type of Mental Stimulus Processing service. Information Processing services involve collecting and analyzing information to provide appropriate advice to the client, like market research. Services can also be classified based on service tangibility. Highly Tangible services result in the customer obtaining a tangible product, such as renting a cell phone. Service Linked to Tangible Goods includes organizations offering a warranty period to customers who purchase products from them, like a photocopying machine. Tangible Goods Linked to Services refers to services that offer a tangible product along with the requested service, such as airlines providing food and magazines to passengers.

• Highly intangible: the services which do not provide customers with any tangible product.
• As massage parlor: Classification based on Skills; Expertise Required:
• Professional Services: the service provider to be formally trained to deliver the service. Ex Doctor, Pilot.
• Non Professional services: these Services do not require the service provider to undergo any training to deliver the service. Classification based on Business
  

Orientation of Service Provider:

Government schools and social service organizations are service providers. Commercial organizations, such as airlines and insurance firms, aim to earn revenues and profits. Services can be categorized by the end-user type. Consumer services are bought by individuals for personal use, like beauty care and hair cutting services. Business-to-business services are purchased by organizations.

Ex Market research and advertising. Industrial services, which include machine installation and plant maintenance, are based on contracts between organizations and service providers. The service marketing mix, also known as the extended marketing mix, is an essential component of a service blueprint design. Unlike the product marketing mix, which consists of 4 P's, the service marketing mix consists of 7 P's. In essence, the service marketing mix treats the service itself as a product.

However, the extended service marketing mix includes three additional P's that are crucial for providing optimal service. These extra P's—People, Process, and Physical evidence—are introduced alongside the four P's found in the product marketing mix (Product, Pricing, Promotions, and Placement). For more information on the importance of these four P's, please refer to my article on the product marketing mix.

All of these factors are essential for achieving the best service delivery. To delve deeper into them, let's discuss in detail. The product component in service marketing mix demonstrates intangibility, making it impossible to measure like physical products such as soap or detergent. Notably, the tourism and education industries serve as excellent illustrations.

Service products are unique in that they are heterogeneous, perishable, and cannot be owned. Therefore, careful design is necessary for

service products. Typically, service blueprints are used to define the service product. For instance, a restaurant blueprint would be created before opening a restaurant business. This blueprint outlines the exact details of the product (in this case, the restaurant). Location is also an important aspect of services, determining where the service product will be situated.

The ideal location for opening a petrol pump is either on the highway or in a busy city. Starting a petrol pump in an area with low traffic is not advisable. Similarly, a software company would thrive better in a business hub amidst other companies rather than in a rural or town setting. Promotions have become an essential component in the service marketing mix.

Standing out from competitors is crucial for a brand, especially in competitive industries like banking and telecommunications. Companies in these sectors heavily rely on advertising and promotions to market their services. Banks, IT companies, and dotcoms all employ marketing strategies to distinguish themselves. However, service-based businesses face greater challenges with pricing compared to product-based businesses.

If you own a restaurant, you can bill customers only for the food they are served. However, it is important to consider who will cover the costs of creating a pleasant atmosphere and hiring a musical band for your patrons. These factors should be taken into account when determining the price. Pricing a service generally includes considering labor, material expenses, and overhead costs. By adding a profit mark-up, you set the final price for your services.

Starting now, we delve into the extended service marketing mix, which includes the element of People. People play a crucial role in defining a service. For instance, in an

IT company, the software engineers are the ones who define the company.

If you own a restaurant, your chef and service staff are what define you. Likewise, if you work in the banking industry, the employees in your branch and how they behave towards customers are what define you. In the realm of service marketing, individuals have the power to either make or break an organization. Consequently, numerous companies are now prioritizing staff training in interpersonal skills and customer service to ensure customer satisfaction. Many companies even have to undergo accreditation to demonstrate that their staff is superior to others.

Definitely a unique selling proposition in the case of services. The service process refers to the manner in which a service is provided to the final customer. Let's consider the examples of two highly reputable companies, McDonald's and FedEx. Both companies excel in their fast service, and this is possible due to their reliance on well-established procedures. Moreover, the high demand for their services necessitates optimal delivery without compromising on quality. Consequently, the process by which a service company delivers its product is crucial.

Physical Evidence is a critical component in the service blueprint, as it defines the process of the service product reaching the end customer. While services are intangible, tangible elements are delivered to enhance the customer experience. For instance, a restaurant may provide only chairs, tables, and good food, while another restaurant may also offer ambient lighting, nice music, and a comfortable seating arrangement in addition to good food.

Which option would you prefer? The one with a pleasant atmosphere. This is an example of physical evidence being used to distinguish between services in marketing. Consider

a private hospital and a government hospital. A private hospital will have luxurious offices and elegantly dressed employees, whereas the same cannot be said for a government hospital.

Physical evidence acts as a differentiator in the service marketing mix (7p), also known as the extended marketing mix. The service blueprint is a visual representation or map of the service system, allowing all individuals involved in providing it to understand and objectively deal with it. It is particularly useful during the design and redesign stages of service development. The blueprint breaks down the service into logical components, depicting the steps or tasks, their execution, and the evidence experienced by the consumer. The basic components of a service blueprint include customer actions, onstage employee actions, backstage employee actions, and support processes. These components outline the steps, choices, activities, interactions performed by customers, visible actions of contact employees, hidden actions supporting onstage activities, and internal services supporting contact employees. To build a service blueprint, the first step is to identify the process to be blue-printed.The following steps are useful in creating blueprints for service processes:
1. Identify the customer or customer segment.
2. Map the process from the customer’s point of view.
3. Map contact employee actions, onstage and back-stage.
4. Link customer and contact person activities to needed support functions.
5. Add evidence of service at each customer action step.
Blueprints are flexible and powerful tools that allow for the analysis of a service at various levels. They can be used to refine individual steps within a process or to develop an entire service process. Blueprints provide a way to "see" the service from the customer's perspective, which is essential for achieving compliance

outcomes.

Creating the current and future state blueprints enables the Team to express and take action on customer insights, and focus on identifying what is effective, what is not effective, and what needs to be modified.

Stages of New Service Development

1. Business strategy development or review
2. New service strategy development
3. Idea Generation
4. Screening ideas against new service strategy
5. Concept Development and Evaluation
6. Testing concept with customers and employees
7. Business Analysis
8. Testing for profitability and feasibility
9. Service development and testing
10. Conducting service prototype test
11. Market testing
12. Testing service and other marketing mix elements
13. Commercialization
14. Post introduction evaluation
15. Front-end Planning
16. Implementation

• New Service Strategy Development: By defining a new service strategy, the organization can generate specific ideas using either the framework or the matrix approach.
• Idea Generation: At this phase, ideas can be screened against the new service strategy using various methods and avenues such as interacting with others and utilizing creativity techniques.
• Concept Development and Evaluation: This involves identifying the target market and decision makers, determining product features and customer benefits, as well as predicting client reactions to the service.

The text discusses the most cost-effective way to deliver a service and the associated costs. It also mentions the importance of evaluating employees' and customers' understanding and favorability towards the proposed service, as well as whether it fulfills any unmet needs. The stage of service development and testing is highlighted, noting the challenges related to intangibility. It emphasizes the need to involve all relevant stakeholders in refining concepts to create a detailed service blueprint.

The Service Blueprint is

a visual representation of the service system that allows different stakeholders to objectively understand and address it. It showcases the service by illustrating various aspects such as the delivery process, customer touchpoints, customer and employee roles, and visible service elements. The blueprint serves as a foundation for creating targeted implementation plans for each component of the service delivery process. Collaboration among all parties involved in the new service is essential to define the specific details of the service. However, conducting market testing for the new service in isolated markets can be challenging.

e.g. There is only one point of delivery at the Hospital. The new service can be provided to employees and their families for evaluating responses.

An alternative approach is to test pricing and promotions by presenting customers with hypothetical scenarios and gauging their responses in terms of their intentions to try the service under different conditions. Additionally, it is essential to conduct a pilot run of the service to ensure smooth operations. The commercialization stage involves introducing the service to the market and has two key objectives: building and maintaining acceptance among a large number of service delivery personnel who are responsible for service quality, and monitoring all aspects of the service throughout its introduction and the entire service cycle.

Every aspect of the service is evaluated, including operating efficiency, costs, and staffing. Changes are then made to the delivery process, service mix, and staff in response to the information gathered during the service's commercialization. No service remains the same as they are subjected to intentional or unforeseen changes. To improve quality and understand customer perceptions, it is necessary to formalize the review process. The gaps

model of service quality was initially created in 1985 by Parasuraman, Zeithaml, and Berry at Texas A&M and North Carolina Universities (Parasuraman, Zeithaml & Berry).

The authors of this study conducted exploratory studies on service quality, including executive interviews and focus groups, for four different service businesses. They proposed a conceptual model of service quality, which suggests that consumers' perception of service quality is influenced by four gaps in the organization-consumer environment. In a later year, the authors developed comprehensive measurement scales for service quality (Parasuraman, Zeithaml, Berry, 1988). According to the Gaps Model theory, perceived service quality is defined as the difference between consumers' expectations and perceptions, which is determined by the size and direction of the four gaps in delivering service quality on the company's side (Fig. 1; Parasuraman, Zeithaml, Berry, 1985). The magnitude and direction of each gap have an impact on service quality.

Gap 3 can be favorable if the service delivery exceeds the organization's standards, and it is unfavorable if the service delivered doesn't meet the specifications. Each gap can be summarized as follows:

Customer gap: The difference between customer expectations and perceptions - the service quality gap.

- Gap 1: The difference between customer expectations and management's perception of those expectations.
- Gap 2: The difference between management's perception of customer expectations and the translation of those perceptions into service quality specifications and designs.
- Gap 3: The difference between the specifications/standards of service quality and the actual service delivered to customers.
- Gap 4: The difference between the service delivered to customers and the firm's promise of service quality.

Marketing challenges in service marketing involve managing, growing, and profiting with both product and service businesses.

However, these challenges differ between the two. Some common and difficult challenges in growing and managing consulting, professional, or technology service businesses (that may not apply to product businesses) include the fact that clients can't see or touch services before purchasing them.From the client standpoint, the difficulty in conceptualizing and evaluating services results in heightened uncertainty and an increased perception of risk.

Service intangibility poses challenges for firms in promoting, controlling quality, and setting prices for services. Unlike products that are tested before being sold, services are produced and consumed simultaneously. This unique characteristic of services requires special attention to service quality management that is not applicable to product companies. In the case of product companies, any quality issues that arise during production can be fixed without the customers being aware.

Service production occurs in the presence of the customer, leading to a unique and demanding environment. Trust is crucial in this scenario, as clients must have a certain level of trust in the service organization and its staff before they will consider using their services. In fact, this trust is sometimes even more important than the actual services provided and their value proposition. It is worth noting that the competition in this context may not always be who you initially perceive it to be.

Competition among product companies is with other product companies, while competition for service companies often comes from their own clients. While there may be instances of intense competition (particularly for certain firms), clients often question whether they should utilize a service at all, and if so, whether it would be better to handle it internally. Branding goes beyond marketing—it is about the

essence of who you are as a service business, not just what you claim about yourself.

Internal brand management and communications are just as crucial for marketing success as external communications. Proactive lead generation is a challenging task, especially for service companies. Numerous service companies have attempted to use lead generation tactics that have proven successful for product companies, only to fail. However, if implemented correctly, traditional product techniques like direct marketing and selling can also be effective for services. Nonetheless, it is essential to consider the unique dynamics of how clients purchase services when devising your strategy.

Service deliverers often handle the sales process, whereas product companies typically have separate sales teams. In the case of services, selling responsibilities are often divided among sales, marketing, professional, and management staff. Consequently, both marketing and sales may experience a decline in momentum.

Most product companies have dedicated marketers and sellers who continuously market and sell their products, regardless of the revenue they generate. On the other hand, in many services companies, the marketers and sellers are also responsible for managing and delivering the services. This often leads to wide swings between revenue and work overflow, as well as revenue and work drought. Passion is a necessary but elusive factor in this dynamic.

The level of passion, spirit, hustle, and desire exhibited by your staff directly impacts the revenue and success of your organization. The connection between staff passion and financial success is clear and measurable, just as the connection between lack of passion and organizational failure is. However, it is challenging to establish a culture of passion within the organization. Measuring service quality can also be a complex task.

The development

of Gurgaon occurred due to the relocation of several new businesses seeking to avoid the expensive property prices in New Delhi. The growth of the medical transcription and call center industries allowed numerous start-up companies to thrive. These companies primarily invested in real estate for office spaces. A key strategy they employed was hiring English-speaking college graduates at reasonable salaries. Additionally, the companies offered basic training in computer and phone handling skills.

Some well-established companies have relocated from Delhi to Gurgaon to reduce housing and living expenses for their unmarried fresh graduate employees. After naivedyam opened, Kapoor, the owner, considered expanding the business. One afternoon, during a slow period, Kapoor, his wife Rekha, and his assistant Manisha discussed customer complaints about the slow lunch service. Rekha mentioned that despite the intense Delhi heat, they work hard in the kitchen.

"We are unable to provide faster service," she said. "It is not your fault," Jagdish replied. "Our business has experienced significant growth in the past year. However, I recently learned that a new restaurant will be opening in the adjacent building. Therefore, we may need to consider expanding and enhancing our facilities to remain competitive. We should invest in premium decor, stylish designer furniture, and luxurious chairs. This would elevate our status in the market."

Manisha stated, "Moreover, we will be able to charge higher prices for the food we serve, giving us the opportunity to purchase new monogrammed ceramic cutlery and employ a well-dressed cashier with a computerized cash register. Additionally, we can invest in new kitchen equipment such as an electric tandoor, stainless steel cookware, and possibly even a new Italian design smoke extractor to address customer

complaints about charcoal smoke." Rekha added that all of these improvements would require borrowing a significant amount of money from a financier.

Even if we managed to do that, we would have no choice but to either significantly increase the charge or decrease the food portions and economize in several other ways. We may even need to charge extra for additional portions of dal or subzi, which is currently provided free of charge for fixed thali customers," Jagdish stated. "I am curious about the office-goer crowd who consumes a substantial meal as they are all young and hardworking individuals. I believe they appreciate our food because we offer healthy home-like meals at affordable prices based on their salary level. Deciding how to approach this expansion is a genuine dilemma."