Operations Service Managment
This question pertains to graduate level - Operations Management course.
Discuss the 5 distinctive service characteristics as they relate to high end auto dealerships, such as Volvo.
5. Customer Participation in the service process
...act experiences a break down. The service has to be provided by the car dealer at that time. Moreover, if dealer delays in providing service at the right time, he may frustrate the customer. Similarly, if a car dealer keeps three mechanics ready to attend customer complaints but he does not get any calls. The services of the three mechanics are lost. The services are perishable. So from another stand point Perishability refers to the unused capacity of the service provider. In this case it is the upscale car dealer and its unused capacity for providing service to cars cannot be stored for future use.
Heterogeneity refers to the scope for high variability in service delivery. This difference occurs because the service is delivered by different person with different performance levels and experience. High end auto dealerships provide services that have heterogeneity. In case of high end auto dealerships, the degree of variability in service is reduced substantially because of training and instructions relating to service delivery. For example high end auto dealerships ensure that there is perfect transparency in the financing of car purchase. The level of transparency is almost the same for all customers. Similarly, if there are services provided by mechanics, the training and scope of service is so well defined in case of high end car dealerships that the variability in service is very low. Heterogeneity means that services are provided by personas and people are different. However, in case of high end auto dealerships great effort is made to standardize the quality of service provided. For instance, the sales person in a high end auto dealerships makes a similar presentation for selling insurance policies. This is essentially an important difference between ordinary car dealers and high end auto dealerships like that of ...