Lesson 12 E-SERVICES. What is a Small Business Entrepreneur? Entrepreneur n. a business man or woman...
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Transcript of Lesson 12 E-SERVICES. What is a Small Business Entrepreneur? Entrepreneur n. a business man or woman...
Lesson 12
E-SERVICES
What is a Small Business Entrepreneur?
Entrepreneur n. a business man
or woman of positive disposition who
attempts to make profit from opportunities
by risk, initiative and guidance from
2-small-business.com.com
SESSION OBJECTIVES
SERVICE MARKET CHARACTERISTICS IMPACT ON INTERNET ADDING VALUE TO SERVICES SERVICE QUALITY
EARLY SERVICE MARKETERS APPLIED CLASSIC FMCG MARKETING WITH MIXED RESULTS
RECOGNITION THAT SERVICE MARKETS HAVE UNIQUE CHARACTERISTICS
PRODUCTS ARE INTANGIBLE USE PLACE, PEOPLE AND PROCESS
EQUIPMENT TO SUPPORT TANGIBILITY
ON-LINE MODELS NEED TO MEET CUSTOMER NEEDS
PEAPOD.COM OFFERING AT-HOME SHOPPING AND DELIVERY
STREAMLINE DELIVERING TO AT-HOME SERVICE DROP OFF BOX
INTERNET PROVIDES TIME AND CONVENIENCE TO SERVICE OFFERING
MANY SERVICE MARKETS REQUIRE SUPPLIER / CUSTOMER INTERACTION
VARIATION IN NEEDS OF CUSTOMER AND ABILITIES OF SUPPLIER EMPLOYEES
MANY SERVICE GOODS ARE HIGHLY PERISHABLE (E.G. UNSOLD AIRLINE SEAT)
USE VARIOUS DEMAND AND SUPPLY MECHANISMS TO BALANCE MARKET (E.G. DIFFERENTIAL PRICING TO SHIFT DEMAND)
COMMODITISATION
MINIMAL DIFFERENCE BETWEEN MANY SERVICES MEANS INTERNET MOVES MARKET TOWARDS PRICE-BASED COMPETITION
OFF-LINE CUSTOMERS NOT ABLE TO RAPIDLY PRICE COMPARE
ON-LINE SERVICES PROVIDE INSTANT PRICE INFORMATION
MANY MARKETS (E.G. CAR INSURANCE, BANKING) WILL SEE INTERNET CAUSING SERVICES TO BECOME COMMODITY GOODS
SURVIVORS WILL OFTEN BE THOSE USING TECHNOLOGY TO REDUCE OPERATING COSTS
ALTERNATIVE IS TO UPGRADE SERVICE TO DIFFERENTIATE COMPANY
DELL’S PERSONALISED DESIGN AND CUSTOMER SERVICE OPERATION
BUILD CLOSE TECHNOLOGICAL LINKS BETWEEN SUPPLIER AND CUSTOMER OPERATIONS (E.G. FEDEX SYSTEM FOR CISCO)
FIGURE 12:1 AN E-COMMERCE PRICE/VALUE MATRIX
SERVICE GAPS
PARASURAMAN ET AL’S 5 VARIABLES IMPACTING SERVICE EXPECTATIONS: 1. RELIABILITY
2. TANGIBLES
3. RESPONSIVENESS
4. ASSURANCE
5. EMPATHY
DEFINED 5 GAPS:
1. CUSTOMER EXPECTATIONS AND PERCEPTIONS
2. DEFINITION OF QUALITY STANDARDS
3. INTERNAL OPERATION
4. MARKET COMMUNICATION
5. COMBINATION OF GAPS 1-4
DELL EXCEEDS CUSTOMER EXPECTATION THEREBY ABOLISHING GAP 1
FEDEX HAS CLEAR MEASURABLE STANDARDS ABOLISHING GAP 2
USAA HAS AUTOMATED INSURANCE DOCUMENTATION MANAGEMENT TO ABOLISH GAP 3
CAR WEB-SITES PROVIDING ACCURATE INFORMATION ABOLISHING GAP 4
RESOURCE DRIVING SERVICE PROVISION OF:– CONTACT PERSONNEL– PHYSICAL RESOURCES TO PRODUCE SERVICE– CUSTOMER
GRONROOS PROPOSES THAT REQUIRE:– EXTERNAL MARKETING ACTIVITIES– INTERACTIVE MARKETING AT INTERFACE– INTERNAL MARKETING INSIDE ORGANISATION
ERRORS BY BOTH INTERFACE STAFF AND INTERNAL PROCESSES IMPACT QUALITY
AUTOMATION
LEVITT BELIEVES IN MANUFACTURING (OR STANDARDISED) ORIENTATION (E.G. McDONALDS APPROACH)
OTHERS ARGUE FOR FLEXIBLE AN EMPOWERED WORKFORCE
PROBABLY CAN USE EITHER (E.G. FEDEX VERSUS UPS IN PARCEL DELIVERY)
ANOTHER SOLUTION IS TO REDUCE HUMAN INVOLVEMENT
BANKS INTRODUCED EDI FOR BANK-TO-BANK OPERATIONS, A.T.M.s AND ON-LINE BANKING
NEED TO ENSURE AUTOMATION IS APPROPRIATE TO SITUATION
EXAMINE CUSTOMER PERCEPTION OF TRANSACTION COMPLEXITY
NUMBER OF ALTERNATIVE PROVISION CHANNELS
FIGURE 12:2 AN E-COMMERCE SERVICE PROVISION MATRIX
NEED TO ENSURE AUTOMATED SERVICE LINKS TO PERSONAL ASSISTANCE
TECHNOLOGIES SUCH AS VOICE-OVER INTERNET (VOIP) STILL FACES OPERATING PROBLEMS
WILL IMPROVE AS TECHNOLOGICAL PROBLEMS OVERCOME TO CREATE SEAMLESS SERVICE
ORGANISATIONAL FORM
NEED TO BUILD HIGHLY RESPONSIVE AND FLEXIBLE SYSTEMS
USE PEOPLE AND TECHNOLOGY WORKING IN PARTNERSHIP
FEDEX REDUCED ORGANISATIONAL LAYERS TO ONLY FIVE BY INTRODUCING I.T.
PROFESSIONAL FIRMS NEEDING TO CAPTURE EXPERTISE OF INDIVIDUAL STAFF
EMERGENCE OF VIRTUAL ORGANISATIONS
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