Answer to Question #208986 in Management for Prince

Question

SUBJECT : SERVICE MARKETING

In tertiary sector, standardized and customized are two important types of services. How does the service process differ in these two cases , explain difference in any 6 points with elaboration ? Propose some actions (any 5 with elaboration ) to reduce the costs in both the cases?

Answer 1

Differences between standardized and customized services

1. Customer Input

For standardized services customers have minimal input as compares to personalized services.

2. Service Alteration

Processes in standardized services cannot be altered as in customized services.

3. Meeting Customer Needs

Customized services directly address the specific preferences of the customer.

4. Predetermined Cost

Standardized services have a fixed predetermined cost as compared to the fluctuating costs of personalized practices.

5. Customer Satisfaction

Customized services lead to higher customer satisfaction as compared to standardized services.

6. Customer's Perceived Control

Customized services have higher levels of consumer perceived control in product or service developement as compares to standardized approaches.

Actions to Reduce Cost

1. Streamline customer communication to eveluate what they desire and the value they acquire.

2. Proactively engage the market to understand needs and formukate the best way to address these needs.

3. Provide trainning to stakeholders so that they can easily provide services over low costs.

4. Integrate technologic innovations to reduce the costs of developing services.

5. Embrace digital marketing techniques that are less costly and easier to use.