Service businesses Narrative Essay Example
Service businesses Narrative Essay Example

Service businesses Narrative Essay Example

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  • Pages: 4 (942 words)
  • Published: August 17, 2018
  • Type: Case Study
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The text discusses service businesses, which generate income by providing personal services to customers. These businesses may include retail, tourism, banking, and education provision. Four categories of services exist based on the type of service and recipient: People processing (directed at people's bodies), Possession processing (directed at physical possessions), Mental stimulus processing (aimed at people's minds), and Intangible asset processing (services directed at intangible assets). The service system includes three overlapping subsystems: Service operations (front stage and back stage), Service delivery (front stage), and Service marketing (front stage). Service operations involve creating service elements such as facilities, equipment, and personnel. Final assembly of resource elements takes place in Service delivery where customer interactions occur. Lastly, Service marketing includes all contacts between the service firm and its customers. Customer satisfaction is crucial in service operations as e

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xemplified by five Dutch cooperative banks studied for research into mass consumer products delivery including mortgages and business loans.Although customer contact can create uncertainties and pose demands on staff, facilities, and technology within the production system, it also presents opportunities to fulfill customer needs and cross-sell additional products. Customers hold the key to design decisions in modern banking which offers a range of service delivery options transforming high-contact services into low-contact services such as mail or phone communication with the bank, Automated Teller Machines (ATMs), home banking via computer, web-based software with voice recognition or keypad input. Furthermore, customers can request services they require by speaking to bank representatives. In traditional approaches, customer contact activities were separate from non-contact activities but front and back office activities can be handled by the same employees without necessarily being from different groups. Service

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delivery systems involve various media methods and materials for introducing a service product into the market; customer contact is a crucial aspect of these delivery systems particularly in high-contact services where customers interact with personnel throughout service delivery.The performance aspect of high contact service delivery is similar to theater, where front stage personnel wear costumes, deliver lines, and behave in specific ways. This is commonly seen in hotels and food joints where waitstaff use a specific language and may even don costumes to represent new products. On the other hand, low contact services rely on electronic or physical distribution channels to maintain communication at arm's length without much physical contact with service personnel. Services are part of various economic sectors under the service industry such as financial services and telecommunications. Unlike manufactured goods, services are intangible, variable, perishable, and inseparable from production and consumption. Successful service delivery ensures that customers receive their expected outcomes through interdependent processes involving people, technology, facilities, equipment, and processes which should be designed accordingly for optimal results. The advent of technologies such as the Web has led to decreased contact levels with customers as exemplified by Intelligent Delivery Systems - a food delivery company that used to heavily rely on personal interaction but has now reduced it thanks to technology.The company has acknowledged that people nowadays need hassle-free access to tasty food. Although conventional food delivery services have helped with some of the logistical challenges, there remain issues such as delivering food at specific temperatures and optimizing delivery routes while decreasing administrative work. To combat this, Intelligent Delivery Systems has introduced a groundbreaking multi-temperature delivery system that utilizes their extensive

expertise across multiple fields. This innovative system includes a resource management system, various delivery methods, an automated distribution center, and insulated box modules for storing food. By placing orders directly via the internet, suppliers and individuals can deal with the distribution center without having to go through multiple layers of management. The automatic distribution center divides the food by temperature and type, enabling one warehouse to operate as a divided multi-temperature supply and distribution center serving many stores and clients.

A new kind of insulated box module is now available that efficiently preserves foodstuffs at the required temperature; thus avoiding any issue where delivery vehicles are limited to carrying only one temperature range per trip.This system is an innovative solution that transforms delivery vans into efficient vehicles capable of transporting goods with varying temperature needs, reducing the need for multiple trips. It also functions as a monitoring system for the delivery process, making it an e-commerce transaction platform and delivery process monitor. Additionally, service marketing systems merge marketing information and assets to enable marketers to quickly manage and assemble them for program execution and performance measurement. Despite service operations making up 60-80% of GDP and employment in modern economies, there are concerns about the lack of research into service operations management despite increasing evidence of manufacturers integrating service activities into their traditional product offering to boost revenue and profit. A marketing information system comprises individuals, machines, and procedures working together to acquire, sort, examine, appraise, and distribute relevant information used by marketing decision-makers to enhance their strategies' planning, implementation, and control.Service encounter management is a crucial element in creating an effective service strategy for

environments with frequent customer interaction. The quality of employee development, including job design and work systems, training and development programs, as well as an emphasis on employee well-being, plays a significant role in the success of services encounters. In addition, managing the interactions between service personnel and customers, also known as service encounter, directly impacts customer perception of service quality and satisfaction levels. As technology continues to advance, the service industry remains an essential business sector that simplifies our lives. References: Kotler, P., (1998) Marketing Management: Analysis Planning and Control; Agnilar,F., (1967) Scanning the Business Environment; Kim H.W., Kim Y.G.(2001) Rationalizing the Customer Service Process.Business Process Management Journal 7(2):139-156.

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