Add You - Service Warranty – Next step to Service Packaging

This paper is written to analyze the current Service Delivery and Service packaging, then finding the relevance of warranty in Service. Service in more intangible in nature and consumed immediately as it performed unlike product, which is tangible and used over a period. Today warranty is granted for any Consumer durables, white goods, and technological product. This warranty provides more assurance of reliability of the product to the consumers; Many times consumers are ready to pay even extra amount to buy extended warranty. This paper analyzes the matching of warranty model with Services. Analysis is done in following topics –

Brief on Service Delivery
Importance of Service Packaging
Warranty design
Conclusion

Service Delivery

Unlike products service is mostly intangible, where tangibility can be introduced using the products. As it is intangible consumption happens simultaneously with the creation of service. Products are used over the period, so warranty gives the assurance towards the usage and consumption where firms make sure that products can be consumed smoothly at least a minimum period. This concept is getting applied in services too using the Service Quality criteria. Because firms become responsible for the delivery ultimately and consumers hold responsible the immediate delivering firm, firms need to measure the parameters for Service Quality, like Tangibility, Reliability, Responsiveness, Assurance and Empathy. These parameters can be measured by the involvement of products in service and the people behavior in delivery of service, where last three parameters are completely dependent on the people. The management group can decide the product involvements and that can be guaranteed, but the people behavior is not consistent. So the good companies spend a lot in training on their front-end service people.

So the reference becomes very important in service delivery, consumers want to check with somebody before consumption. They want to check the Service Quality personally from somebody, so “word-of-mouth” has lot of importance in Services. So the organizations want assure on the Service Quality, so many times they try to take the consumers feedback, engage in tele-marketing, where agents can talk to the consumers personally. But many often these doesn’t reflect the consumer perceptions. Most of the times consumers are in a hurry to give feedback or listen to tele-marketing agent. But consumers do the research before buying any product or service; if there is no need then there is a buyer too, when they want to buy, they start the research, like if somebody has to travel then only he looks for the air-ticket; nobody looks at the deals without the need.

Reference provides the Assurance and Empathy, so the Customer is actually looking for Assurance and Empathy. Most of the time Organizations rely upon the front-end employees for the Assurance and Empathy, although in final delivery its upto the employees, how they perform, but Organizations need to enhance the Customers’ perception in increase the Sales. They need to look for other ways to enhance this perception, most of the time Organization tries to enhance the perception by increasing the tangibility, but after certain point tangibility helps very marginally, the last three factors have more importance. Reliability factor is also closely associated with tangibility and Brand Image. Today the consumers are more cautious about the last three factors which dependent on the Employees’ behavior.

Service Packaging

Similar to a tangible product’s package, the service also wrapped within physical evidences to convey an external image of what is “inside” to consumers. Product packages are designed to portray a particular image as well as to evoke a particular sensory or emotional reaction. The physical setting of a service does the same thing through interaction of many complex stimuli. This is very much critical in forming initial impressions or setting up customer expectations – it is visual metaphor for the intangible service. The packaging role is particularly important in creating expectations for new customers and for newly established service organizations that are trying to build a particular image. The physical surroundings offer an organization the opportunity to convey an image in a way not unlike the way an individual chooses to “dress for success”. The packaging role extends to the appearance of contact personnel through their uniforms or dress and other elements of their outward appearance.

Interestingly, the same care and resource expenditures given to package design in product marketing are generally not provides for services, even though the service package serves a variety of important roles. These are many exceptions to this generality, however smart companies like Starbucks, FedEx, Southwest Airlines and Marriott spend a lot of time and money relating their service design to their brand, providing their customers with strong visual metaphors and “service packaging” that conveys the brand positioning.

Southwest Airlines tried to break the image of a “flying event” as serious event to a casual event. Their crew members appear in very informal dress with friendly appearance to give a “at Home” feel to the customers and this positioning fits with their low cost “no frills” strategy.

But so far the Service Packaging is done through physical surroundings, but still there is lot of empty room to develop the packaging using the employees attitude, people presence, like the some extent done by the Medical, Legal, Educational and Entertainment services, as they are more specific people oriented.

Warranty Design

Warranty is mostly offered on the product parts, to cover the technical faults. It is applied on the materials mainly not on the service. In case of the product, any part defect may cease the product functionality and this can be pinned down easily. In case of service, since people are more oriented, its difficult to pin down the defect cause. Also since the people are involved, the behavioral aspect, group dynamics play the key role in the service delivery.

Also the customers have an expectation on the product life, they want to use the product for a minimum period, so the defect rectification can meet that expectation. Also this depends on the product category, the following table shows sample consumer products category, expectations and warranty support –

Product Category Expectation Warranty availability
FMCG Basic need NO
Consumer Durables Electro-mechanical functionality Yes

So the reference becomes very important in service delivery, consumers want to check with somebody before consumption. They want to check the Service Quality personally from somebody, so “word-of-mouth” has lot of importance in Services. So the organizations want assure on the Service Quality, so many times they try to take the consumers feedback, engage in tele-marketing, where agents can talk to the consumers personally. But many often these doesn’t reflect the consumer perceptions. Most of the times consumers are in a hurry to give feedback or listen to tele-marketing agent. But consumers do the research before buying any product or service; if there is no need then there is a buyer too, when they want to buy, they start the research, like if somebody has to travel then only he looks for the air-ticket; nobody looks at the deals without the need.

Reference provides the Assurance and Empathy, so the Customer is actually looking for Assurance and Empathy. Most of the time Organizations rely upon the front-end employees for the Assurance and Empathy, although in final delivery its upto the employees, how they perform, but Organizations need to enhance the Customers’ perception in increase the Sales. They need to look for other ways to enhance this perception, most of the time Organization tries to enhance the perception by increasing the tangibility, but after certain point tangibility helps very marginally, the last three factors have more importance. Reliability factor is also closely associated with tangibility and Brand Image. Today the consumers are more cautious about the last three factors which dependent on the Employees’ behavior.

Service Packaging

Similar to a tangible product’s package, the service also wrapped within physical evidences to convey an external image of what is “inside” to consumers. Product packages are designed to portray a particular image as well as to evoke a particular sensory or emotional reaction. The physical setting of a service does the same thing through interaction of many complex stimuli. This is very much critical in forming initial impressions or setting up customer expectations – it is visual metaphor for the intangible service. The packaging role is particularly important in creating expectations for new customers and for newly established service organizations that are trying to build a particular image. The physical surroundings offer an organization the opportunity to convey an image in a way not unlike the way an individual chooses to “dress for success”. The packaging role extends to the appearance of contact personnel through their uniforms or dress and other elements of their outward appearance.

Interestingly, the same care and resource expenditures given to package design in product marketing are generally not provides for services, even though the service package serves a variety of important roles. These are many exceptions to this generality, however smart companies like Starbucks, FedEx, Southwest Airlines and Marriott spend a lot of time and money relating their service design to their brand, providing their customers with strong visual metaphors and “service packaging” that conveys the brand positioning.

Southwest Airlines tried to break the image of a “flying event” as serious event to a casual event. Their crew members appear in very informal dress with friendly appearance to give a “at Home” feel to the customers and this positioning fits with their low cost “no frills” strategy.

But so far the Service Packaging is done through physical surroundings, but still there is lot of empty room to develop the packaging using the employees attitude, people presence, like the some extent done by the Medical, Legal, Educational and Entertainment services, as they are more specific people oriented.

Warranty Design

Warranty is mostly offered on the product parts, to cover the technical faults. It is applied on the materials mainly not on the service. In case of the product, any part defect may cease the product functionality and this can be pinned down easily. In case of service, since people are more oriented, its difficult to pin down the defect cause. Also since the people are involved, the behavioral aspect, group dynamics play the key role in the service delivery.

Also the customers have an expectation on the product life, they want to use the product for a minimum period, so the defect rectification can meet that expectation. Also this depends on the product category, the following table shows sample consumer products category, expectations and warranty support –

Product Category Expectation Warranty availability
FMCG Basic need NO
Consumer Durables Electro-mechanical functionality Yes Two Simple Steps to a Successful Interview
When it comes to achieving success in a job interview, there are two big steps to make: you need to practice the interview technique and research the company you hope will employ you. Take both steps and achieve interview success.STEP NO. 1 PRACTICE, PRACTICE, PRACTICEIt's an age-old adage: practice makes perfect. And it applies to job interviews. There are two ways of practicing for an interview. One way is to simply go to as many job interviews as you can. The more times you go through the terror of a job interview, the better you'll get in the end. Better yet, you'll also be able to seek feedback on your job interview performance.Another way to practice is to get a friend role-play with you. Your friend can prepare a list of questions to ask you and you can practice answering them. A good way to check on your progress is to record your interviews on video and watch them later noting your body language and your fluency in answering your friend's questions.STEP NO. 2 RESEARCHResearavel then only he looks for the air-ticket; nobody looks at the deals without the need.

Reference provides the Assurance and Empathy, so the Customer is actually looking for Assurance and Empathy. Most of the time Organizations rely upon the front-end employees for the Assurance and Empathy, although in final delivery its upto the employees, how they perform, but Organizations need to enhance the Customers’ perception in increase the Sales. They need to look for other ways to enhance this perception, most of the time Organization tries to enhance the perception by increasing the tangibility, but after certain point tangibility helps very marginally, the last three factors have more importance. Reliability factor is also closely associated with tangibility and Brand Image. Today the consumers are more cautious about the last three factors which dependent on the Employees’ behavior.

Service Packaging

Similar to a tangible product’s package, the service also wrapped within physical evidences to convey an external image of what is “inside” to consumers. Product packages are designed to portray a particular image as well as to evoke a particular sensory or emotional reaction. The physical setting of a service does the same thing through interaction of many complex stimuli. This is very much critical in forming initial impressions or setting up customer expectations – it is visual metaphor for the intangible service. The packaging role is particularly important in creating expectations for new customers and for newly established service organizations that are trying to build a particular image. The physical surroundings offer an organization the opportunity to convey an image in a way not unlike the way an individual chooses to “dress for success”. The packaging role extends to the appearance of contact personnel through their uniforms or dress and other elements of their outward appearance.

Interestingly, the same care and resource expenditures given to package design in product marketing are generally not provides for services, even though the service package serves a variety of important roles. These are many exceptions to this generality, however smart companies like Starbucks, FedEx, Southwest Airlines and Marriott spend a lot of time and money relating their service design to their brand, providing their customers with strong visual metaphors and “service packaging” that conveys the brand positioning.

Southwest Airlines tried to break the image of a “flying event” as serious event to a casual event. Their crew members appear in very informal dress with friendly appearance to give a “at Home” feel to the customers and this positioning fits with their low cost “no frills” strategy.

But so far the Service Packaging is done through physical surroundings, but still there is lot of empty room to develop the packaging using the employees attitude, people presence, like the some extent done by the Medical, Legal, Educational and Entertainment services, as they are more specific people oriented.

Warranty Design

Warranty is mostly offered on the product parts, to cover the technical faults. It is applied on the materials mainly not on the service. In case of the product, any part defect may cease the product functionality and this can be pinned down easily. In case of service, since people are more oriented, its difficult to pin down the defect cause. Also since the people are involved, the behavioral aspect, group dynamics play the key role in the service delivery.

Also the customers have an expectation on the product life, they want to use the product for a minimum period, so the defect rectification can meet that expectation. Also this depends on the product category, the following table shows sample consumer products category, expectations and warranty support –

Product Category Expectation Warranty availability
FMCG Basic need NO
Consumer Durables Electro-mechanical functionality Yes How To Choose The Best Software For Maintaining Company Control
Who Holds the Reign of Control?That question is a double-edged sword because without the right software you don't have "Hands On" to anything, much less control. As a matter of fact, if you are not running the right time and expense tracking software, not only do you not have control, but chances are you won't foresee a critical problem arising until it is already too late!In order to maintain control of all the critical aspects of your company, you need to have real time access to the time, project and cost management numbers. If production depends on a critical decision of how you realign resources and employees, you don't have time to thumb through reams of reports or to try and cultivate new ones from various software applications. You need critical data right now from a project tracking software program that will generate exact answers to your questions. Running your company in "forward and up" mode starts with a powerful executive that knows how critical the software decision is.An effectiving initial impressions or setting up customer expectations – it is visual metaphor for the intangible service. The packaging role is particularly important in creating expectations for new customers and for newly established service organizations that are trying to build a particular image. The physical surroundings offer an organization the opportunity to convey an image in a way not unlike the way an individual chooses to “dress for success”. The packaging role extends to the appearance of contact personnel through their uniforms or dress and other elements of their outward appearance.

Interestingly, the same care and resource expenditures given to package design in product marketing are generally not provides for services, even though the service package serves a variety of important roles. These are many exceptions to this generality, however smart companies like Starbucks, FedEx, Southwest Airlines and Marriott spend a lot of time and money relating their service design to their brand, providing their customers with strong visual metaphors and “service packaging” that conveys the brand positioning.

Southwest Airlines tried to break the image of a “flying event” as serious event to a casual event. Their crew members appear in very informal dress with friendly appearance to give a “at Home” feel to the customers and this positioning fits with their low cost “no frills” strategy.

But so far the Service Packaging is done through physical surroundings, but still there is lot of empty room to develop the packaging using the employees attitude, people presence, like the some extent done by the Medical, Legal, Educational and Entertainment services, as they are more specific people oriented.

Warranty Design

Warranty is mostly offered on the product parts, to cover the technical faults. It is applied on the materials mainly not on the service. In case of the product, any part defect may cease the product functionality and this can be pinned down easily. In case of service, since people are more oriented, its difficult to pin down the defect cause. Also since the people are involved, the behavioral aspect, group dynamics play the key role in the service delivery.

Also the customers have an expectation on the product life, they want to use the product for a minimum period, so the defect rectification can meet that expectation. Also this depends on the product category, the following table shows sample consumer products category, expectations and warranty support –

Product Category Expectation Warranty availability
FMCG Basic need NO
Consumer Durables Electro-mechanical functionality Yes How A Deliberate Mistake Can Create Massive New Business
Want a fast way to get customers? Do you want people to really pay attention to your ads and read them all the way through? Here is a tried and true ploy that has earned its tried and true status because it works.Put an ad in your local newspaper with a headline like this: “There’s a Spelling Error In This Ad – If You Find It, We Will Give You $__.” The dollar amount can be anything, but this ad will work best if it is proportionate to the cost of your products or services.Within the first paragraph you will tell readers that the dollar amount will be given in the form of a gift certificate to anyone who finds and circles the error and brings the ad into your place of business.Don’t make the gift a coupon or a discount. Your customers will feel cheated if they get anything less than a real gift certificate that can be used to buy any of your products or services.Then write a really compelling ad, but place the single error late in your copy. You want people to read all or most of youstomers and this positioning fits with their low cost “no frills” strategy.

But so far the Service Packaging is done through physical surroundings, but still there is lot of empty room to develop the packaging using the employees attitude, people presence, like the some extent done by the Medical, Legal, Educational and Entertainment services, as they are more specific people oriented.

Warranty Design

Warranty is mostly offered on the product parts, to cover the technical faults. It is applied on the materials mainly not on the service. In case of the product, any part defect may cease the product functionality and this can be pinned down easily. In case of service, since people are more oriented, its difficult to pin down the defect cause. Also since the people are involved, the behavioral aspect, group dynamics play the key role in the service delivery.

Also the customers have an expectation on the product life, they want to use the product for a minimum period, so the defect rectification can meet that expectation. Also this depends on the product category, the following table shows sample consumer products category, expectations and warranty support –

Product Category Expectation Warranty availability
FMCG Basic need NO
Consumer Durables Electro-mechanical functionality Yes
White Goods Electro-mechanical functionality Yes
Pharmaceuticals Recovery NO
Textiles Basic need NO
Cosmetics Fashion NO
Household items Basic need Partial
Automobiles Mechanical functionality Yes
Computing and Communication devices Electronic functionality Yes

From this table it’s evident the warranty is offered on the electrical/electronic or mechanical items, in which case a defect part may cease the operation completely.

Warranty also depends on the price of product; warranty is no supported low priced product. Warranty is in the augmentation layer of the product, for cheaper product it’s not affordable. So for the same reason for the low priced services, warranty can’t be supported for the low priced services.

Conclusion

Service Providers, especially in Financial Services, Telecom Services, Travel Services or Hotel Service, have to start thinking about warranty, as competition will be cut throat. Today if your telecom call fails or get any problem in bank account because of mistake at Service Provider’s side. Warranty in products evolved more through competition. If the car gets problem because of some manufacturing defect, the manufacturer has to take care of that, similarly if the network has some problem, the Telecom Service provider has to pay a penalty to customer.

How that warranty will be provided, that Service providers have to decide and figure out, but this is going to happen, as the economies depend on Services than Manufacturing or Agriculture.

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.addyou.info/article/26346/addyou-Service-Warranty--Next-step-to-Service-Packaging.html">Service Warranty – Next step to Service Packaging</a>

BB link (for phorums):
[url=http://www.addyou.info/article/26346/addyou-Service-Warranty--Next-step-to-Service-Packaging.html]Service Warranty – Next step to Service Packaging[/url]

Related Articles:

Performance Management?

In our organisations The Manager is normally the person with the least hands on experience, yet he is expected to control the people with the most hands on experience. Should we be happy to continue using this recipe for disaster as a core management strategy or should we be looking for a more logical strategy, one that includes the experience of the workforce instead of ignoring it.

Motivate Your Staff: Top 6 Tips To Get Your Staff Motivated

Never mind email, get belly to belly with your people; let them see and feel your presence. Good leaders lead from the front and set the example for others to follow.

Making Appointments With Businesses & Closing the Sale

In Business the trick when making appointments, is not to be too pushy otherwise when you turn up to do a presentation you are dealing with a hostile business owner. It is better at the initial call to hear a quick rejection and move on to the next company.

Bookmark it: