Preview

The Service Concept

Powerful Essays
Open Document
Open Document
2086 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Service Concept
1. Introduction

The service concept is critical and central in managing service operations. It has become increasing important in defining what the corporations are selling and the customer buying or using. It can be used to design and improve the services. “The service concept is something that is more emotional than a business model, deeper than a brand, more complex than a good idea and customers and creates a business advantage.” (Johnston.R and Clark.G, 2008) The selected service organisation is Morrison, which the UK’s fourth largest food retailer by sales with an annual turnover in excess of £15bn.Morrisons has 425 stores across Britain, ranging in size from 10,000 to 40,000 square feet. (Morrison’s annual report, 2010) The purpose of this report is to describe the Morrison’s practical applications with the service concept. This report will first demonstrate the five elements of the service concept and how the company achieve these five elements. Then it will assess the company’s implementation of the service concept. At last, the report will give some recommendations on how the company’s service concept might be improved.

2. Description of the service concept

The service concept is something very significant to companies such as Morrison. According to the Johnston and Clark (2008), there are five elements consisted in the service concept which are given below.

2.1 The Organising Idea

The organising idea is very significant to the service concept. The organising idea is the essence of the service which is bought or used by the customer. Morrison has a good organising idea which organised as “Food Specialist For Everyone”. (Morrison, 2012)This means they really understand the food and provide food with great value not only just for special days but also for every day.

2.2 The Service Experience

The service experience concentrates on the customer’s direct experience in the process of perceiving the service. It is based on the expectations



References: Azhashemi. M (2012) Managing Service Quality, from CORP3171 Service Operations Management. De Montfort University, Kimberlin Library. Available from: Blackboard. [Accessed 06/03/12] Azhashemi Johnston, R and Clark, C (2008), Service Operations Management, Financial Times Prentice Hall, pp. 40 Morrisons (2010) Morrisons annual reports and accounts 2010 Morrisons Appendix 2 This diagram illustrates the structure of the service experience management (Kana, 2011) Appendix 3 This diagram illustrates the success of the total quality management (Damon B., 2008) This diagram demonstrates the Hierarchy of Supply Chain Decisions (Teigen R., 1997)

You May Also Find These Documents Helpful

  • Better Essays

    AMB340 Service Marketing

    • 4205 Words
    • 15 Pages

    Nowadays, services dominate economy and generate most new jobs. This service encounter report aims to compare and contrast my own real-world service experiences using services marketing theories. Firstly, it will compare my two satisfactory encounters journals in East Coast Car Rentals and Ambient Hotel Colina to get the most satisfactory one. Secondly, two dissatisfactory encounters in Ray White Alderley and Myer will be compared to gain the least satisfactory one. Finally, I will give 3 recommendations for the least satisfactory encounter. Theories of level of tangibility, heterogeneity, inseparability, and perishability; level of customer service; disconfirmation of expectations; processes or production steps and so on will be used in analyzing my encounter experiences.…

    • 4205 Words
    • 15 Pages
    Better Essays
  • Best Essays

    Tesco's operations stategy

    • 3281 Words
    • 14 Pages

    Slack, N., Chambers, S. and Johnston, R. (2004) Operations Management, 4th Ed., London: Pitman Publishing…

    • 3281 Words
    • 14 Pages
    Best Essays
  • Good Essays

    References: Bunz, U. K., & Maes, J. D. (1998). Managing Service Quality . Business And Economics--Production of Goods And Services, 8(3), p 163-169.…

    • 763 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Buiness Processes

    • 2502 Words
    • 11 Pages

    The first topic that will be covered is the “service operation concept,” which is can be broken down in to these four sections: experience, outcome, operations, and value. Customers of service – oriented businesses believe and value the business’s service concept; this is what they are “buying.” The service concept should be a clear and elaborate shared understanding of the business’s operational strategies and should be different…

    • 2502 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    Approaches to services include the production line approach, the self-service approach, and the personal attention approach. Service guarantees are not only a marketing tool for services but, from an operations perspective, these guarantees can be used as an improvement incentive and can focus the firm's delivery system on things it must do well to satisfy the…

    • 306 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Two central conceptions that are at the very heart of marketing and delivering customer value are service quality and satisfaction (Spreng and Mackoy, 1996). In a study conducted by Shemwell et al. in 1998 (cited in Ismail et al., 2009 p. 30), it is stated that in order to maintain the high level of competition in today’s business world, the delivery of high quality service is the key to customer satisfaction and loyalty. By offering different service processes for its customers, businesses can deliver better value than its competitors.…

    • 1463 Words
    • 6 Pages
    Best Essays
  • Good Essays

    The service system comprises the service delivery process and all of the supporting processes that are required in the co-creation of value for the customer.…

    • 1250 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The presence of the customer on-site requires attention to the physical surroundings of the service facility that is not necessary for the factory. For the customer, service is an experience occurring in the front office of the service facility, and the quality of service is enhanced if the service facility is designed from the customer’s perspective. Attention to interior decorating, furnishings, layout, noise, and even…

    • 9826 Words
    • 47 Pages
    Powerful Essays
  • Powerful Essays

    Service Concept Profiling

    • 2546 Words
    • 73 Pages

    People buy different kinds of services from different companies to fulfill their wants/needs. Example: A customer buys a flight ticket of Emirates which routes to London. Not only does the customer buy his/her transportation method to London, they buy a concept. They buy comfortable seating, in flight meal and entertainment and reaching their destination on time at the lowest conceivable price. The way in which an organization labels the services provided to the customer and what service the customer is buying/using is known as the Service Concept. Service concept is intensely related to what a customer expects of his/her service (External Stakeholders) and what the staff of the organization thinks about the service they are providing to their customers (Internal Stakeholders) (Johnston and Clark, 2008). With the help of Service Concept, an Organization has an advantage over its competitors in the market as the service concept not only supports the organization to sell their services, but also concentrates on satisfying the customer’s expectations, which helps the organization differentiate their services from other organizations. There are four main elements which help regulate a Service Concept: 1) Service Experience: Awareness that the customer has about the service is Service Experience. 2) Service Value: This is the assessment the customer is ready to pay in monetary terms for the service, with additional benefits the customer seems is suitable for them and worth to pay for. 3) Service…

    • 2546 Words
    • 73 Pages
    Powerful Essays
  • Powerful Essays

    Organisations across all industries recognise that services are becoming an important factor in all their business dealings to obtain a competitive advantage (Strydom, 2005:114). According to Palmer (2005:2), every industry is a service industry and the only aspect that separates industries is the size of their service component. Innovative organisations offering unique services to customers are now succeeding in markets where established organisations have failed (Lovelock and Wirtz, 2004:4).…

    • 10447 Words
    • 42 Pages
    Powerful Essays
  • Powerful Essays

    References: Arnold, E.J. and Price, L.L. (1993), “River Magic: extraordinary experience and the extended service encounter”, Journal of Consumer Research, Vol. 20, June, pp. 24-45. Bateson, J.E.G. (1983), “The self-service customer – empirical findings”, in Berry, L.L., Shostack, B.L. and Upah, G.D. (Eds), Emerging Perspectives on Services Marketing, American Marketing Association, Chicago, IL, pp. 50-3. Bateson, J.E.G. (1985), “The self-service customer: an exploratory study”, Journal of Retailing, Vol. 61 No. 3, pp. 49-76. Bitner, M.J. (1990), “Evaluating service encounters: the effects of physical surroundings and employee responses”, Journal of Marketing, Vol. 54, April, pp. 69-82. Bitner, M.J., Booms, B.H. and Mohr, L.A. (1994), “Critical service encounters: the employee’s viewpoint”, Journal of Marketing, Vol. 58, October, pp. 95-106. Bitner, M.J., Booms B.H. and Tetreault, M.S. (1990), “The service encounter: diagnosing favorable and unfavorable incidents”, Journal of Marketing, Vol. 54, January, pp. 71-84. Bowen, D.E. (1986), “Managing customers as human resources in service organizations”, Human Resource Management, Vol. 25 No. 3, pp. 371-83. Bowen, D.E., and Schneider, B. (1985), “Boundary-spanning-role employees and the service encounter: some guidelines for management and research”, in Czepiel, J.A., Solomon, M.R. and Surprenant, C.F. (Eds), The Service Encounter, Lexington Press, Lexington, MA, pp. 127-47. Chase, R.B. (1978), “Where does the customer fit in a service operation?”, Harvard Business Review, November-December, pp. 137-42. Dabholkar, P.A. (1996), “Consumer evaluations of new technology-based self-service options: an investigation of alternative models of service quality”, International Journal of Research in Marketing, Vol. 13 No. 1, pp. 29-51. Faranda, W.T. (1994), “Customer participation in service production: an empirical assessment of the influence of realistic service previews”, unpublished doctoral dissertation, Arizona State University. Folkes, V.S. (1988), “Recent attribution research in consumer behaviour: a review and new directions”, Journal of Consumer Research, Vol. 14, March, pp. 548-65. Goodwin, C. and Radford, R. (1993), “Models of service delivery: an integrative perspective”, in Swartz, T.A., Bowen, D.E. and Brown S.W. (Eds), Advances in Services Marketing and Management, Vol. 2, JAI Press,Greenwich, CT, pp. 231-52. Hubbert, A.R. (1995), “Customer co-creation of service outcomes: effects of locus of causality attributions”, unpublished doctoral dissertation, Arizona State University. Hubbert, A.R., Bitner, M.J. and Kleine, S. (1996), “Satisfaction with performance and satisfaction with the service provider: do customers make distinctions?”, in Droge C. and Calantone, R. (Eds), Proceedings of the American Marketing Association Summer Educators Conference, American Marketing Association, Chicago, IL, pp. 231-9. Keaveney, S.M. (1995), “Customer switching behaviour in service industries: an exploratory study”, Journal of Marketing, Vol. 59, April, pp. 71-82.…

    • 5640 Words
    • 23 Pages
    Powerful Essays
  • Powerful Essays

    In managing the business which provides pure services to the customer, company need to ensure that the service delivered is meeting with expectation and satisfied the customer. The quality of services is considered to be a critical success factor for the service companies. Service is close conceptual as well as empirical link to customer satisfaction turned it into the core marketing instrument, making it the most researched area in services marketing (Fisk et al., 1995; Bolton et al., 2000). In addition, the accumulated research has linked positively the service with profitability (Fornell, 1992).…

    • 3916 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Tea Marketing Dissertation

    • 12256 Words
    • 43 Pages

    Hoffman, K. D., &, Bateson, J.E.G. (2001). Essentials of Service Marketing: Concepts, Strategies & Cases, Second Edition. South-Western: Mason. Available from: http://www.mindtools.com/pages/article/newSTR_94.htm [Accessed: 15th October 2014]…

    • 12256 Words
    • 43 Pages
    Powerful Essays
  • Satisfactory Essays

    Servuction System

    • 508 Words
    • 3 Pages

    This model used to illustrate factors that influence service experience, including those that are visible and invisible to consumer. Invisible component consists of invisible organizations and systems. It refers to the rules, regulations and processes upon which the organization is based. Although they are invisible to the customers, they have a very profound effect on the consumers service experience. Visible part consists of 3 parts: Serviscape (inanimate environment), contact personnel/service providers, and other consumers. Servicescape- It refers to the use of physical evidence to design service environments. It consists of ambient conditionssuch as music, inanimate objects that assist the frm in completing is tasks, such as furnishing and business equipment. All non-living features present during service encounter. Contact personnel: :Employees other than primary providers that interact with consumer. Service Provider: Primary provider of core service, such as dentist, physician or instructor. Other Customers- Customer A : Recipient of bundle of benefits created through service experience and customer B : Other customers who are part of Customers A’s experience.…

    • 508 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Sakae Sushi Business Plan

    • 6612 Words
    • 27 Pages

    Lovelock, C. H., Patterson, P. G., Walker, R. H. (2007). Understanding service products, customers and employees. In Lovelock, Patterson, P. G., Walker, R. H., Services Marketing (pp. 26-30). NSW, Australia: Pearson Education Australia.…

    • 6612 Words
    • 27 Pages
    Powerful Essays