Download Service Is Front Stage: Positioning Services for Value by J. Teboul PDF

By J. Teboul

This e-book encompasses a uncomplicated yet robust definition of companies dependent upon a separation among back-stage and front-stage actions. providers care for entrance interactions, creation and production with back-stage operations. Teboul makes use of this contrast to systematically discover the $64000 problems with the sector.

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Additional resources for Service Is Front Stage: Positioning Services for Value Advantage (Insead Business Press)

Sample text

Contrary to what happens in a factory, once a service has been delivered it is difficult to improve or correct it. The performance cannot be measured, controlled or corrected during the delivery without the customer’s being aware of it. It is also much more difficult to find out how the customer perceives the experience during the interaction; the perception is immediate, subjective and qualitative. ” So whereas in the back stage the objective is zero defects, in the front stage it is zero defections.

In conclusion, the dotted line separating the service sector from the industrial sector is less significant than the solid line dividing backstage and front-stage activities, products and services. We are all in services now, more or less. This is in line with Baumol’s service categories:2 ■ ■ ■ Stagnant services (health, education, personal services), in which productivity gains are difficult to achieve because quality is highly correlated with time spent in contact with the customer. In these sectors, new technologies may improve the quality of the service, but not the productivity.

The service mix One of the aims of marketing is to make consumers aware of the existence of a product, and another is to convince them to buy it. However, the traditional marketing mix used to promote tangible goods (the four P’s) is clearly inadequate for services. First, the promotion of tangible goods through the usual media is less effective for pure services than word of mouth based on customers’ experience. Second, the place of delivery is also the production site. Price sensitivity is also quite different: as a rule, a buyer will more readily accept the price quoted for a physical product than for an intangible service.

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