This action might not be possible to undo. Are you sure you want to continue?
Managing Service Quality
Service quality is a business administration term used to describe achievement in service. It reflects at each service encounter. Customers form service expectations from past experiences, word of mouth and advertisement. In general Customers compare perceived service with expected service in which if the former falls short of the latter the customers are disappointed.
For example, in the case of TAJ Hotels, Resorts and Palaces, where in TAJ remaining the old world, luxury brand in the five-star category, the umbrella branding was diluting the image of the TAJ brand because although the different hotels such as Vivanta by Taj- the four star category, Gateway in the three star category and Ginger the two star economy brand, were positioned and categorised differently, customers still expected the high quality of Taj from all their properties.
What is Service Quality? ■ "The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Quality serves as the "bridge" between the producer of goods or services and its customer. (Johnson & Weinstein) ." (Kotler) ■ Quality must provide goods and services that completely satisfy the needs of both internal and external customers.
Why Quality Matters ! • The global market is becoming more competitive every day • Companies continually search for new ways to gain an edge over their competitors around the globe • Global competition and deregulation in a number of industries is forcing companies to turn to quality in order to survive .
GROWTH OF CONSUMERISM IN SERVICE SECTOR .
particularly on the purchase of material goods. .CONSUMERISM Consumerism is the belief that personal wellbeing and happiness depends to a very large extent on the level of personal consumption.
• Consumerism provides feedback to the business. . • Consumerism makes the government to become more allert.business man will not go for unethical and unfair dealings.BENEFITS OF CONSUMERISM • If consumerism is prominent.
RIGHTS OF CONSUMERS • • • • • • Right to safety Right to inform Right to choose Right to heard Right to redress Right to consumer education .
statutory or embodied in a voluntary code occupied by a particular industry or it may result more indirectly from the influence of consumers organizations The principle of ‘Caveat emptor’ relieved the seller of the obligation to make disclosure about the quality of the product . and those for whom they are provided. such regulation may be institutional. methods or standards of manufacturers. Consumerism attempts to redress the imbalance of power that exists between those who produce goods and services. sellers and advertisers in the interest of buyers. Consumerism is a movement or policies aimed at regulating the products or services.
. the producers/sellers are becoming stronger and organized whereas the buyers are still weak and unorganized. the personal relation between the buyer and seller was one of the major factors in their relations. In the age of revolutionized information technology. Further on account of complex structure of the modern goods. In addition. it is only the producer/seller who can assure the quality of goods. With manufacturing activity becoming more organized. Internet and with the emergence of e-commerce & m-commerce related innovations the consumers are further deprived to a great extent. It is now impossible for the buyer to examine the goods before hand and most of the transactions are concluded by correspondence.
” In spite of these views consumerism is still in its infancy in our country. Consumer awareness is low due to the apathy and lack of education among the masses.As a result buyer is being misled. He is not an interruption to our work. very rightly held that “A Consumer is the most important visitor on our premises. the father of nation. thanks to the sellers market and the government monopoly in most services. Mahatma Gandhi. We are not doing a favour to a consumer by giving him an opportunity . . He is doing us a favour by giving an opportunity to serve him. he is the purpose of it. duped and deceived day in and day out. He is not dependent on us we are on him.
The providers of goods and services have been reluctant to give due consideration to consumer interest protection. testing facilities.No one has told them about their rights. competent leadership. price. price control mechanism. protection against unsafe products. What consumers lack here are education and information resources. consumer education etc. . access to variety of goods at competitive prices.to be informed about product quality. and adequate quasi-judicial machinery.
raise voice against exploitation and seek redress of their grievances in time. Regulation of business through legislation is one of the important means of protecting the consumers.Some business in India have come together to adopt a code of conduct for regulating their own activities. The success of consumerism lies in the realization of the business that there is no substitute for voluntary self-regulations. moral and economic pressure on producers and providers in some of the developed countries. . Consumerism has over the time developed into a sound force designed to aid and protect the consumer by exerting legal. join voluntary Consumer organizations. Little attention from the business will not only serve consumers interest but will also benefit them. The best possible solution is that the Consumers must be aware of their rights.
In the West. The economy is judged by the production and selling of goods. Consumerism refers to the consumption of goods at a higher rate. The economy is considered to be” doing well” if the purchasing power of the people is high. The gross national product is the sum total of goods and services produced for a specific period at a specific time. .Consumerism is becoming the hallmark of most world economies. The more goods produced and consumed by society the higher the growth rate of the economy. it is a common phenomenon. The prosperity of a nation is judged by the per capita income of individuals residing in it. but now even developing countries in the world are resorting to it.
use them and throw them away. In case. New goods when they become old are replaced by newer ones.In consumer society. They purchase goods. The question of repair does not arise People have money to purchase goods in plenty. . people replace their goods with newer ones. they do not do so as it leads to recession and depression and also results in unemployment.
.CONSUMERISM IN SERVICE SECTOR In the year 1986-consumer protection act was enacted Whether services are covered by the act or not? Consumerism in west is different from that of ours Consumer has every right to be protected in terms of services availed by him.
Designing and Managing services .
g. excellent services. auto insurance etc . car leasing plans. the company must 1. the client is using a package of bank offerings – credit card. Differentiate its brand through: Primary service features e. the bankers mention its low loan-interest rates.Managing Service Brands “A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything.g. financial counselor Secondary service features as e. It may or may not be tied to a physical product” To brand a service organization effectively.
2. symbol. trustworthiness. economic class etc . and likeability from the workers who provide the service. Eg: airlines to business class. service firms must design marketing communication Devising branding strategy: finally services also must consider developing a brand portfolios that permits positioning and targeting of different market segments. slogan and characters to build brand awareness or brand name Establishing image dimensions: such as the expertise. Develop appropriate brand strategies through: Choosing brand element: such as logo.
customer consulting. and maintenance and repair”. To provide the best support.failure frequency or break down (for machine) Downtime :. a manufacturer must identify the services customer value most and their relative importance. installation.Managing Product Support Services “How products can be augmented with key service differentiators such as ordering ease.(the longer the downtime. There are three specific worries for customers: Reliability :. customer training. How much does the customer have to spend on regular maintenance and repair cost . delivery. Thus they count on the seller’s service dependability to fix the machine quickly out of pocket costs. the higher the cost).
Managing Product Support Services • Thus the service mix include both a.Post sale services by providing customer service departments such as receive customer requests. free quality inspection for certain times. trade in allowance) b. suggestions. staff training. and even complaints so that these departments need to handle them carefully . maintenance and repair service) and adding value augmenting services (such as warranty.Presale services by facilitating service (such as installation.
MANAGING PRODUCTIVITY IN THE SERVICE SECTOR .
or vice versa. Productivity needs to address both efficiency and effectiveness because an economic activity will not be productive if it is only efficient but not effective. Efficiency comprises two components: technical efficiency which reflects the ability of a firm to obtain maximal output from a given set of inputs.The Concept of Productivity in the Service Sector Productivity measures the efficiency and effectiveness with which resources are used in economic activity. . and allocate efficiency which is a reflection of how a firm uses the inputs in optimal proportion given their respective prices and the production technology.
But measuring performance. Despite this. . we should try to make it so. especially in the service industry. we cannot manage and improve it. we should measure what is measurable. if something is not measurable. is far from easy. Efficiency measures based on the output/input ratio can be supplemented with effectiveness measures in index form.Productivity measurement If we cannot measure performance.
such as labor productivity or capital productivity. However. can be misleading. which measures the synergy and efficiency of utilizing both labor and capital inputs. A good example is total factor productivity. on the other hand. there are two main approaches to productivity measurement: partial factor productivity measurement and multifactor productivity measurement. .Basically. considers output in relation to multifactor inputs. Multifactor productivity measurement. if used alone. The former is a ratio of the output to one of the factor inputs. partial productivity measures are not comprehensive and.
the balanced scorecard approach provides additional measurement perspectives by focusing on the reliability and effectiveness aspects. internal business processes. and learning and growing. .To supplement the above efficiency measures. customers. It evaluates business performance in four areas: financial.
• The origin of productivity management is deeply rooted in the context of mass production therefore issues of productivity are mainly analyzed in this sphere. • This may be the main reason for the prolonged neglect of the productivity issues in the sphere of service. • Service organizations are recognized as the largest and fastest-growing segment of the economy in the world .
In developed countries. As a country advances economically. the manufacturing and service sectors become the new growth areas. the service sector is the major (more than 60%) contributor to GDP.• Developing countries in their early stages of development depend largely on the agricultural sector for economic development and employment generation. It also accounts for the major share of employment. .
For this reason. especially in view of the global challenges of a more open market. a customer-focused management philosophy.• Since the service sector is essential to a nation’s economic growth. it must continuously enhance its productivity and sustain its competitiveness. .and knowledge-driven strategies. productivity. and effective applications of information and communications technology (ICT) are critical to building a productive service sector.
Output Customer percieved quality. Input Tangible elements Intangible elements. Service volume. • Raw materials • Capital. .Service productivity Quantity Quality Output Input Labour.
GROUP-5 TEAM MEMBERS APARNA JANET SAMUEL EBIN.JOHN RESMILA.C.K SREEKALA RAMACHANDRAN SREENATH .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.