Service Management

Business

Quiz 4 :
The Service Encounter

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Quiz 4 :
The Service Encounter

Organizational culture is an essential part of any business as it helps retains employees for a longer duration and motivates them to work with dedication and commitment. The service organization culture at A's Ice cream is described below: • A's Ice cream was more than just paying salaries to employees : The company ensured to distribute A's ice cream T-shirts among the employees and used to provide them with ice cream of their choice. • No dress code at A's ice-cream : Employees were free to wear any clothing that suits their mood as long as it is not soiled, political or excessively revealing. • Essence of Music : Employees had the opportunity to bring their own music, keeping in mind their type of clientele, to play in their stores. Service providers ensured to study the place and the type of crowd that visits A's store. • Ambience: A's store emphasized on the ambience too by showcasing artwork that was colorful, creative and electric. Ambience plays a vital role in drawing customers. Hence these were some of the culture highlights at A's store.

ERAC offers a complete "service package" to its target market, the local rental or "hometown" segment, which has an annual growth of 10 to 15 percent. This market includes two groups: the replacement and the discretionary segments. ERAC differentiates itself from the typical national car rental company by applying a personalized service philosophy in its business. This principle is reflected in its service package. Supporting facility • ERAC has 4,000 offices and customers perceive them as being located nearby as opposed to its competitors, who are located at or near airports. • Some offices are strategically located next to or in car dealers or repair facilities, offering a replacement car. Facilitating goods • ERAC offers a wide variety of cars, with a selection of more than 60 vehicles for all tastes and needs (e.g. a car to impress clients or a reliable car for a long trip). Information • Because ERAC picks up its customers from office or home, this information is useful in planning future site locations. • With ARMS, customers are able to contact any North American office via an exclusive 1-800 number. Explicit services • Convenience in free pick-ups and drop-offs for the customer • Rates lower than competition. • Availability to customers through a registered number, 800, that allows them to contact any of ERAC connected offices, and an automated system (ARMS) that make insurance companies' (who are major clients) transactions more efficient. • Comprehensiveness in its services through an end-to-end client's fleet management arrangement offered by an Account Services representative. This service includes activities such as acquisition, registration, financing, fueling, maintenance management, and disposal. Implicit services • Image and service attitude based on ERAC's culture, which focuses on hiring people with abilities in dealing with customers and internal competition. • Convenience by partnering with repair facilities and auto dealers for replacement cars. Hence, these are some of the services that are differently defined than that of the typical national car rental company.

Technology has played a vital role in service industry. It has improved the customer interaction with the service vendors. The service time is reduced over the time and still, certain advances are still yet to be made. No doubt Technology has improved the results generated in the service industry, but its failure has some repercussions as well. Adverse results in case of technology failure affects the mindsets of the people to look for technology-free service providers. The steps to be performed in case of self-service failure for self-recovery are mentioned below: • The very first step to be performed here is to prepare a self-check mechanism for the machine which can evaluate whether the process is appropriately working or not. • In case of technology failure, Manual assistance should be readily available to get through the issue. • Poka-yoke mechanism can be used in the process to avoid the mistakes. This mechanism uses a checklist so that the employees do not commit a mistake. Thus, the above-mentioned techniques are helpful in case of self-service failure conditions.