Specific Questions and Answers: Q#l) Describe Village Vole’s Service Package The service package consists of five features experienced by the customer based on his/her perception of the service: 1 . Supporting Facility: [Consists of physical sources that must be in place before a service can be offered] In our case study, Village Volvo occupies a new Bullet building with four bays in addition to an office, waiting area, and storage room.
Village Volvo provides customers with waiting room that contains a TV set, comfortable chairs, coffee, a soft drink access to ensure variant and peripheral services. Village Volvo is aware of the fact that customers do Judge their car repair services thru the perception of the entire shop, its outlay, colors, etc. 2. Facilitating Goods: [Basically the materials used during car repair service] In our ease study, Village Volvo uses specialized car repair tools and comprehensive inventory of select auto parts. 3.
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Information: [Efficient between customer and service manager, in order to provide good experience for customer and customized service] In the case of Village Volvo, customer is the primary source of information about any possible repairs needed and occasionally the mechanic takes the car for a test drive to ensure there aren’t any other issues with the vehicle. Another differentiating and unique source of information for Village Volvo is the Custom Care Vehicle Dossier, which serves as a great informational tool for both clients and repair.
C.V. keeps of the records of repair provided, remainders about upcoming repairs, as well as future predictions of problems. Village Volvo ensures service guarantee and uses the C.V. as a source of information to provide smooth demand and generate its revenues. 4. Explicit services: [All the observable benefits by the clients, and consist of essential features of repair service] Village Volvo consists of routine services, which include tune-ups/oil changes during scheduled appointments. In edition, Village Volvo provides customized services upon client’s demand and approval. . Implicit services: [All the psychological benefits that may be sensed by a client, as well as the extrinsic features of the service] Village Volvo emphasizes on care during the entire repair service. Cars are kept clean and the inside is vacuumed as a service courtesy before pickup. Q#2) How are the distinctive characteristics of a service firm illustrated by Village Volvo? There are six distinctive characteristics of services: Customer Participation in the Service Process, Simultaneity, Permissibility, Intangibility, Heterogeneity,
Nontransferable Ownership Characteristics of Services. 1 . Customer Participation: [Many services require the customer to be physically close to the service and, sometimes, co-produce the service] The mechanic who will be working on the vehicle and the client discuss the problems the client has noticed, then take a short test drive together, in order to make sure that they both understand the problems and what is going to happen during the service. [Information; Customer Participation].
Customer can participate more in service process: Although the customer may speak tit the mechanic during the repair process, the service manager is the main point of contact [Customer participation in the case of those customers who wait at the premises while the service is being rendered]. 2. Simultaneity: [Services are created and consumed simultaneously and cannot be stored] Customer can also choose to wait and speak with the mechanic during the repair process. It is the service manager’s responsibility to notify the customer when the vehicle is ready for pickup. 3. Permissibility: [Basically means that service is a perishable commodity.
It cannot be torte or kept as a physical inventory] On the basis of their 22 combined years of training and experience with the local Volvo dealer, they have earned a respected reputation and a following of satisfied customers, which makes an independent service operation feasible. [Services are stored in systems, buildings, machines, knowledge, and people even though services in general cannot be inventoried and they are often perishable]. In addition, Village Volvo encourages clients to schedule appointments for the diagnosis and repairs of specific problems [Attempt to smooth
Demand]. 4. Intangibility: [We are not able to actually touch the services, unlike tangible goods that we can wear, smell, touch. Hence, services are often being ideas, concepts, or performances] Village Volvo represents an effort by two former authorized Volvo dealer mechanics to provide quality repair service; on out-of- warranty Volvo at reasonable cost. On the basis of their 22 combined years of reputation. Village Volvo provide tangible service in property, that customer can really see the result after the car-care service. 5.
Heterogeneity: [Village Volvo provides never services to various customers. The combination of intangible nature of the services and the customer as a participant in the service delivery system results in variation of service from customer to customer] Village Volvo provides customized service to the clients, all the car-care service are based on the problems and orders of customers, so the out-put to each customers are different. An example of heterogeneity is that Village Volvo maintains a continuing file on each vehicle it services.
Another example from the text: these notes are brought to the customer’s attention at pick-up time and also are recorded in the C.V. for future use, perhaps in the form of a reminder postcard to the owner. Nontransferable Ownership: Village Volvo provides quality repair service base on their combined years of training and experience, those skill and experience won’t transfer to customer during the service. Q#3) Characterize Village Volvo in regard to the nature of the service act; the relationship with customers; customization and Judgment; the nature of demand and supply; and the method of service delivery.
The nature of the service act: It involves “Tangible” Act and the recipient of the service is “Property’. The relationship with customers: They create a very good relationship with the customers. The mechanic and manager directly discuss with the client about the problems. They also provide other services except maintenance, such as a mini course for their client. Customization and Judgment: The owners provide a custom car-care service. They have made a specific time each week when clients may drive in for quick, routine services such as tune-ups and oil changes. In addition, they make the Custom Care
Vehicle Dossier, a continuing file that records the history of each vehicle it services. The client will discuss the problems with the mechanic. The nature of demand and supply: They have set aside specific times each week when clients may drive in for quick, routine services such as tune-ups and oil changes [Convenience; Peripheral Services], but they encourage clients to schedule appointments for the diagnosis and repairs of specific problems [Attempt to smooth Demand]. The method of service delivery: Q#4) How could Village Volvo manage its back office like a factory?
With regards to managing back office like a factory, Village Volvo can install windows in the waiting rooms, to enhance customer’s trust and liability in the service provided. Repair operations involves a very low contact with the customer (except those wait for the service is being rendered), thus Village Volvo set the front office scheduling for the purpose of discussing the repairs details with its clients. Therefore, Village Volvo can decouple part of the delivery process from the customer of the back office, so that it can Just focus on the repair process and become more efficient like a factory.
Q#5) How could Village Volvo differentiate itself from Volvo dealers? Village Volvo has already a very efficient differentiation strategy that involves the following: a. Shuttle service b. The waiting room c. “drop-in” time d. Small worn-out parts that have been replaced are put in a clean box inside the car. E. More cumbersome replaced parts are identified and set aside for the client’s inspection. Care is taken throughout the repair process to keep the car clean, and the inside is vacuumed as a courtesy before pickup f.
The owners have developed a outwork of other service providers who assist in recycling used parts and waste products and to whom they can refer clients for work that is not part of Village Vole’s services (e. G. , body work, alignments, and reupholstering). With regards to further differentiability from other Volvo dealers, Village Volvo can focus more on enhancing clients to select their services by for example providing discounts, loaner cars, drop off/pick up cars at clients home. But more efficiently, Village Volvo can focus more on the Open-System View of Service Operations, which would improve its competitiveness in the market.