1. Starting the Project

2. Introduction and Business Overview

SERVICE QUALITY (MKTG 1268) GUIDELINES FOR GR0UP ASSIGNMENT:

NEW SERVICE PROPOSAL

( JULY 2013)

Geoffrey da Silva

SQ Project

Report

STARTING ON THE

PROJECT

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Think about and propose a practical new service

idea and concept

You MUST read and understand pp 113-115 of

Wirtz text (2nd Edition) before you start – otherwise

you will have NO idea just what a service

innovation is all about

We will discuss different aspects of the SQ syllabus

concepts throughout the report : therefore the

development and writing of this report will be

incremental.

WHAT IS THIS PROJECT REQUIRING US TO DO?

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You have the option to either explore:

A new service product idea from the perspective of a new business* that you would l ike to build (e.g., a ‘major service innovation),

Or

A ‘new’ service for an existing business* (Note: Although a ‘new’ service can include‘style changes’ and ‘service improvements’, please ensure that your proposed new service involves a MAJOR change, such as a ‘product l ine extension’, ‘major process innovation ’ , or ‘major service innovation’ – refer to pp.113-115 of Wirtz et al. 2012 for further information).

(*Note also that the ‘business’ you choose to explore need not be limited to profit-making organisations, but can be based on a not-for-profit service organisation.

OPTIONS:

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1. You can write from the point of view of an

entrepreneurial start-up – a completely new

service business, OR

2. An existing service business already having one

or more service products and now wishing to

introduce an additional new service

3. You could also write about non-profit

organizations including charities

IMPLICATION OF THE OPTIONS

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It is expected that the proposal will include detailed

information and analysis of the external

environment relevant to the business, as well as of

each of the seven marketing mix elements for the

‘new’ service.

That is, you will explore the new service idea’s

feasibility based on the existing/potential

performance and/or capabilities as well as of the

environmental trends/conditions relevant to the

existing/envisioned organisation.

WHAT WILL THE REPORT COVER?

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DATA COLLECTION

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Some of the things you may consider doing and/or including in the report

may include:

- Conducting a small scale market research to ‘test’ out the new service

idea (e.g., with a small sample of the target market, and/or with ‘experts’

with the relevant knowledge/expertise, for their feedback),

- Conducting short interview/s with an existing business owner (whom you

may already have an established rapport) or a service firm audit to

explore any issues or problems the business may be experiencing (and

require improving), on which you can base your ‘new’ service suggestion.

NOTE: Please conduct this research independently, without SIM

administrative involvement (such as in terms of obtaining introductory

letters, etc.).

1. Don’t do this on a large scale

2. Use the data to support your findings – that is the

feasibility of the new service idea

3. If you are doing interviews, keep the

questionnaire short and include sample of

questionnaire and the main findings in the

appendix

4. Same thing for the management interview – show

the interview answers in the appendix

IMPLICATIONS OF DATA COLLECTION

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SQ Project

Report

INTRODUCTION AND

BUSINESS OVERVIEW

(20 MARKS)

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This is the introduction so just provide a very brief

introduction

What the company does, it customers, regional or

local scope, mission and vision statement, key

people, etc.

Or if the business is new (not yet started) – the

provide a brief description of the proposal

Keep this short – half a page if possible.

1. BACKGROUND OF ORGANISATION SELECTED

OR THE NEW BUSINESS ENVISIONED (2

MARKS)

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As mentioned : refer to pp.113-115 of Wirtz et al.

2012 for further information on the classification

It is possible that your service might overlap two

versions BUT not more than two

Do NOT venture to write your report any further if

you DON’T understand this classification as it

would seriously impact the quality of your research

and writing.

YOU NEED TO ALSO CLASSIFY THE NATURE OF

YOUR NEW SERVICE

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2. INTRODUCTION TO THE PROPOSED NEW SERVICE PRODUCT

CONCEPT (DESCRIBE AND CATEGORISE THE NEW SERVICE INTO

PEOPLE/POSSESSION/INFORMATION/MENTAL ST IMULUS

PROCESSING SERVICE ) …….

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Choose ONE category only for your service Explain why it belongs to that category.

?

? ?

?

1. Give some possible issue or problem that made

the company want to introduce a new service –

perhaps customer dissatisfaction, poor service

delivery and others

2. Another way is to examine the figure in Chapter

One of the text – Forces Transforming the Service

Economy

3. DO NOT describe these forces BUT instead pick

ONE or TWO that could explain the rationale for

the introduction of your new service

…… AND ITS DRIVER (E .G. , ISSUE/PROBLEM WITHIN AN

EXISTING BUSINESS OR THE RESULT OF AN

EVENT/EXPERIENCE/ENVIRONMENTAL

FACTOR/TREND) (5 MARKS)

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Government

Policies

Business

Trends

Social

Changes Advances

in IT

Globalization

Innovation in service products & delivery systems, stimulated by better technology

Customers have more choices and exercise more power

Success hinges on:

● Understanding customers and competitors

● Viable business models

● Creation of value for customers and firm

● New markets and product categories

● Increase in demand for services

● More intense competition

Forces Transforming the Service Economy

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Pick one or two main forces that are RELEVANT to the new service

That means you need to show the connection between that force/s and the NEED for your new service

Explain why existing services offered by competitors or your company are inadequate given the CHANGES that are taking place in the external environment

Show how your new service meets the new needs created out of environmental changes (example technology or social changes)

COMMENTING ON SELECTED FACTORS

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Analyse the new service’s target market (what is i ts

characteristics, why is it targeted?) and key competitors

(what is your competitive advantage, what makes you/your

proposed new service different to the competitors?); present

the new service concept’s ‘pitch’/appeal (5 marks)

3. POSITIONING

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Make sure you answer each part of this section: • Target segment -define • Justification (why) • Key competitors (who) • What are your competitive advantages (evidence) • What makes your proposed new service different from theirs

(explain) • Write the appeal or short USP for your proposed new service

Need to refer to Chapter 4 of text. Also do draw at least one Positioning Map to show the competitive positioning of your new service

Provide details of the three-stage process of service

consumption that applies to this service. Describe briefly the

type and amount of information existing/potential customers

need/use in their decision-making process and the

perceived risks involved in the purchase and use of this

service (8 marks)

4. BUYER BEHAVIOR

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Material is from Chapter Two of the text Use the model But your discussion is not theory – it is about how it “applies to this service” • Type of information used in decision making • Types of perceived risks

CONSUMER DECISION –PRE PURCHASE

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Describe briefly the type and amount of information its consumers use in their decision-making process:

What kinds of information do customers need; bear in mind the intangible nature of a service

Where do they get the information from? Which ones are more credible

How would you new service be viewed when it comes to seeking information? What attributes would customers look for – would it be more on experience or on credence attributes?

PRE-PURCHASE: INFORMATION SEARCH

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… and the types of perceived risks involved in the purchase and use of this service :

Briefly discuss only the relevant types of risks- functional, financial, social, temporal, etc

Explain how such risks my constrain buying behavior

Explain what the new service firm could help to minimize such risks example more convenience, provide assurance, etc.

PRE-PURCHASE: INFORMATION SEARCH

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