A Description of Service Management Theory

Introduction During this structured essay I will provide several points supporting my findings with references regarding each service management theory. I will provide a definitive and informative analysis for the reader. Service concept is defined by Heskett as “ The way in which the organisation would like to have its services perceived by its customers, employees, shareholders and lenders. Edvardsson and Olsson (1996) refers to service concept as the prototype for service and define it as the “detailed description of what is to be done for the customer (what needs and wishes are to be satisfied) and how this is to be achieved” ” There are four types of service concept including:

1. service operation: the way in which the service is delivered; 2. service experience: the customer’s direct experience of the service; 3. service outcome: the benefits and results of the service for the customer and 4. value of the service: the benefits the customer perceives as inherent in the service weighed against the cost of the servic I will assess each concept in full dept critically whist detailing exactly how this can improve organisational development internal and externally. I will provide supported findings from researchers The purpose of applying a Service concept is has been questioned by researchers complaining it has a striking resemblance to documents like business objectives and mission statements for example a business objectives may be to convoy a written statement suggesting the direction in which company wants to go explaining how this will done. (James Manktelow & Amy Carlson.) Although a service concept is designed to put a perception into consumers and external stakeholders minds it can only set out what it plans to do similar to objectives. Even the best of concepts provided may still have limitations to just how helpful it can be for a customer. Although there are limitations in to which a service concept can benefit a company it can also contribute and help develop a companies. There are also questions into whether there is valid reason to apply a service concept in the first place. Conceptual tests result that these activities are restricted to paperwork and the tests are not carried out with real consumers. Therefore this can be illustrated as a written document to provide a theoretical explanation of what the company is offering without showing practical ideas. Customer segmentation is illustrated as “is the process of classifying people into groups that have some set of similar characteristics, resulting in the ability to be studied and targeted.” “The most basic method is to segment by simple demographics such as age, income, or marital status. The goal is to identify relatively homogeneous groups with similar behaviour that will assist in customizing the message and/or offer for each segment. This theory can aid a company successfully targeting the correct segment in which their service or product will be most successful http://researchaccess.com/2010/08/customer-segmentation-an-overview/ (recommended) http://www.surveymethods.com/glossary/article_customerseg_seg_l.aspx (recommended) Some companies target only one macro group, such as the AARP attracting anyone 50 years old or older. Others have much more sophisticated segmentation schemes, using dozens, or even hundreds of variables. “(2) SERVQUAL The servqual was designed by Parasuman in 1985 and is illustrated as SERVQUAL stands for Service Quality. SERVQUAL is the most effective analysis tool available to service industries for studying the difference between customer expectations from service and perceptions of service quality.(3) Criticisms of Segmentation
“I got these great-sounding segment names, but they don’t have distinct demographic targeting profiles, so I can’t reach them.” Making up cool names based on attitudinal and/or behavioral clustering can be a lot of fun, but if your segments aren’t unique on the variables you use to target them, then that doesn’t help. Note that this is more of a methodological issue than anything else (see below). “My segmentation report just sits on the shelf”. Sad story – all too common. Sometimes, this outcome can’t be helped. I’ve seen VPs torpedo a good-looking segmentation solution because it didn’t match their preconceived notions. To give yourself the best chance of a solution being used in your organization, make sure you have clear objectives and buy-in from key stakeholders, and involve key people over the life of the project. But Wait, There’s More…
One of the most exciting developments I’ve seen in segmentation is a technique called Reverse Segmentation. It’s important enough that it deserves its own post, so stay tuned. For the moment, I’ll say that it provides a solution for criticism #1 above.(4)

REFERENCES http://www.executionmih.com/customer/segmentation-overview.php http://www.xtremeimpakt.com/index/Capabilities/Strategic-Services/Consumer-Segmentation (2) http://themanagerialsavvy.blogspot.com/2010/06/servqual-stands-for-service-quality.html (3) Thomas Meiren_ and Thomas Burger (4|) http://www.sciencedirect.com/science/article/pii/S0272696301000900 (definitions) and limitations http://www.samples-help.org.uk/mission-statements/ikea-mission-statement.htm http://researchaccess.com/2010/08/customer-segmentation-an-overview / (4)

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