Quiz 2 :
The service retailing in the business is not limited to the products and product services. It also includes financial sectors like banking. The customers are the investment in this service sector too as the money invested by the customers in various forms makes the banking sector function effectively. El Banco and United commercial bank are both customer focused, although the customers of different communities. The vision and the goal of the two service banks are customer oriented and functions to fulfil the necessities of their customers. As the requirements of the customers of various communities would be heterogenous, so would be the service strategies of the respective banking sectors. In this case of the El Banco and the United commercial bank let us compare and contrast the service strategies of the both as follows. The service strategies of the banks can be analyzed with regard to their service delivery system, mode of operating strategy, service concepts and the target market segments. The difference in the customers of the diverse communities would eventually show a difference in the approach of the respective banks. 1. Service delivery system : In the El Banco the spoken language used is Spanish and the physical setting is focused on Hispanic customers. Where as the United commercial bank makes use of Chinese as the spoken language and includes import and export conservative services. 2. Mode of operating strategy : The El Banco operates as a cost effective ones by choosing to franchise the operations. This resulted in informal and unprofessional working atmosphere and bank appearance. On the other hand the United commercial bank opt to open branches where the population of the American - Chinese is higher. Eventually they operated from branches of China, Taiwan, California and Hong Kong in a more formal and professional way. 3. Service concepts : The services rendered by the EL Banco is based on the fees. The bank could attract first time customers but the customers felt paying fees for every service repeatedly is costly. In the case of the United Commercial Bank the fees for the services are much lower and they concentrated in providing loan to business and other commercial purposes. How ever the interest rates are higher there by increasing the income to the bank. 4. Target market segments : The target market chosen by the service provider is also different. When the El Banco chose for Latino customers, the United Commercial bank were focusing on Chinese - American communities.
Apart from developing service strategies, the managers of the firm has to analyze the perception of the customers about their firm and their competitors. By doing so the managers can derive further modifications in the strategies of required so as to sustain in the competitive market. The responsibilities of the service manager does not get over after developing strategic plans for the business to perform better. On the contrary, the responsibility increases as the position of the firm in the market has to be sustained. In order to fulfil this the managers are found to create the market position maps. In this the current position of the firm in the market can be understood from the perception of the customers. As the customers may have different perception by conducting survey on the larger masses an accurate representation can be obtained. Like wise the map is derived for the competitor also so as to make the firm ready for the next level business promotions to overcome the competitors. In the case of Alamo Draft house, the complex where the movie, food and recreation are available in a single store, the market position map is derived so as to understand its reputation with in the customers. The attributes taken here are food quality and the movie selection. Since it's a pictorial representation, the perception of the customers about the Alamo Draft house can be easily understood. The customers are of the opinion that they have a wide range of movies for selection and the theater is also spacious. The is no compromise on the quality if the food served and on an average the customers would prefer the store again for entertainment.
The service firms develop various strategies so as to attract the customers from diverse back grounds. As the customers are heterogenous, so are their requirements. The strategies developed would be implemented depending on the nature and the behavior of the customers. Customer satisfaction is the ultimate goal of any service provider. Not all service providers target the same group of customers. Depending on the brand and the service they dealers work with the target market as well as the customers also varies. The service strategies would be developed focusing on a particular niche market and developing strategies to attract those customers by understanding their purchase behavior. The service providers are found to use different service strategies as focus and over all cost leadership or focus and differentiation. Examples of these two types of services can be understood as follows. 1. Strategy of Focus and Overall cost leadership: This strategy would be implemented focusing on the customers who are very cost conscious and look of cheaper products with maximum number of attributes. The service firm would have a tough time in designing and developing the services that are cost effective as well as serving the purpose. The examples of these types of service firms would be • Insurance policy firm that does business over phone so as to reduce the expenses on field visit and employing staff. This would reduce the cost of the company and the policy can be given at a reduced cost. • Ready to cook food processing firm that focus on the middle class customers who cannot afford a restaurant meal frequently but can opt for this ready to cool range of products that would taste similar but at a relatively lesser costs. 2. Strategy of Focus and Differentiation: In this type of strategy the focus is on the higher end customers who are not bothered about the price but the additional attributes and services. The service firm need not have to do statistical calculation on the cost effectiveness as the customers wouldn't be comparing the prices. The examples of the same are • The exhibition cum sale of the branded jewelry that claim to have life ling buy back guarantee and service. • The new model of XX brand car being launched and free test drive provided. The customers are given early bird offer with one year free service. • The airlines that are costly but provides customized meal and accessories for comfort.