Chapter 6

Service and E-Services

Service
A service is an intangible activity or benefit provided by one person to another that
does not result in the ownership of a particular thing. It is an economic activity that
provides value and benefits to customers through the implementation of desired
improvements. A service business is one in which the perceived value of the offering is
significantly affected by the services supplied to the buyer, including any of the
intangible services rendered to the consumer. Service marketing also includes real
services such as restaurants and supermarkets.
E-Service
E-services are digital remote support systems that utilize information exchange
between clients and service providers to produce value across various industries. They
are developed by companies for three main reasons: lower margins, lower customer
acquisition and service costs, providing high-quality, fast, and comprehensive product
information, improving price-quality comparisons and personalized search methods, and
allowing businesses to gain a comprehensive understanding of customer behavior.

The product or Service life cycle is a process that follows the different stages that a
product or service encounters. The life cycle is broken down into four stages that help to
identify where in the market the product or service is at the current time. Let's take a
closer look at the different stages that every new product or service will encounter.
Introduction -The introduction phase is the first-time customers are introduced to the
new product. A company must generally include a substantial investment in advertising
and a marketing campaign focused on making consumers aware of the product and its
benefits, especially if it is broadly unknown what the item will do. During the introduction
stage, there is often little-to-no competition for a product, as competitors may just be
getting a first look at the new offering. However, companies still often experience
negative financial results at this stage as sales tend to be lower, promotional pricing
may be low to drive customer engagement, and the sales strategy is still being
evaluated.
Growth-If the product is successful, it then moves to the growth stage. This is
characterized by growing demand, an increase in production, and expansion in its
availability. The amount of time spent in the introduction phase before a company's
product experiences strong growth will vary from between industries and products.
During the growth phase, the product becomes more popular and recognizable. A
company may still choose to invest heavily in advertising if the product faces heavy
competition. However, marketing campaigns will likely be geared towards differentiating
its product from others as opposed to introducing the goods to the market. A company
may also refine its product by improving functionality based on customer feedback.
Financially, the growth period of the product life cycle results in increased sales and
higher revenue. As competition begins to offer rival products, competition increases,
potentially forcing the company to decrease prices and experience lower margins.
Maturity -The maturity stage of the product life cycle is the most profitable stage, the
time when the costs of producing and marketing decline. With the market saturated with
the product, competition now higher than at other stages, and profit margins starting to
shrink, some analysts refer to the maturity stage as when sales volume is "maxed out".
Depending on the good, a company may begin deciding how to innovate its product or
introduce new ways to capture a larger market presence. This includes getting more
feedback from customers, and researching their demographics and their needs. During
the maturity stage, competition is at the highest level. Rival companies have had
enough time to introduce competing and improved products, and competition for
customers is usually highest. Sales levels stabilize, and a company strives to have its
product exist in this maturity stage for as long as possible.
Decline - As the product takes on increased competition as other companies emulate
its success the product may lose market share and begin its decline. Product sales
begin to drop due to market saturation and alternative products, and the company may
choose to not pursue additional marketing efforts as customers may already have
determined whether they are loyal to the company's products or not. Should a product
be entirely retired, the company will stop generating support for it and will entirely phase
out marketing endeavors. Alternatively, the company may decide to revamp the product
or introduce a next-generation, completely overhauled model. If the upgrade is
substantial enough, the company may choose to re-enter the product life cycle by
introducing the new version to the market. The stage of a product's life cycle impacts
the way in which it is marketed to consumers. A new product needs to be explained,
while a mature product needs to be differentiated from its competitors.

Service Hierarchy
Service hierarchy refers to the structured arrangement of services within an
organization or system, organized according to levels of importance, complexity, or
interdependence. This hierarchical structure helps in managing and delivering services
effectively by defining clear roles, responsibilities, and relationships among various
service components.
Service: The observable and usable set of behaviors that perform a prescribed task
and is accessible through a prescribed interface. Services must be discrete and distinct.
Service Component: A logical grouping of services, organized, for example, by
technology, platform, data used, and so on.
Component Category: A high level categorization of Service Components.
Business Domain: A partition view point of the enterprise and the services that it
requires.

Strategies in Service Life Cycle & Hierarchy of Services

In the Service life cycle, you can basically know the cycle of the service you have
chosen therefore you can take advantage of it and create strategies you need according
to the service life cycle of service of your choosing.

Service life cycle strategies according to stages:

1.Introduction
In introduction this is where your service starts or creates its identity meaning the
strategy or approach you need is to create the identity of your service.
 Personalization
Customizing services to meet individual customer preferences and needs or tailored
experiences.
If you have e service, you can utilize using customer data to offer personalized
recommendations and solutions or data utilization.
 Customer Empowerment
Creating avenues for customers to provide feedback and suggestions.
Feedback Mechanisms: Creating avenues for customers to provide feedback and
suggestions.
Community Building: Establishing forums or communities where customers can share
experiences and help each other.
2. Growth
This is the cycle where the transition of your success is moving continuosly and you
need to adapt to maintain this growth.
 Self-Service
Digital Platforms: Providing online portals or mobile apps where customers can
manage their accounts, access information, and resolve issues on their own.
Automated Services:
Implementing chatbots and automated phone systems to handle routine inquiries.
3. Maturity
this is the stage where your business is stable, your approach and strategy should
focus on how you can grow more or maintain for you to prevent going into the decline
stage.
 Value-Added Services
Complementary Offerings: Providing additional services or products that enhance the
primary service.
Loyalty Programs: Implementing programs that reward repeat customers with discounts,
special offers, or exclusive services.
4. Decline
This is where you need to find new ideas or change your plan or strategy from where
you hit the decline, by doing so you’ll be able to bounce back or start anew.

 Consider new concept or ideas

Changing the concept or system on how you operate can drastically change your
status, also the new ideas you can conceptualize that will make your service more
attractive to customers.

In the hierarchy of service, the strategy revolves around how you approach each branch
and formulate a strategy according to the information you have in each branch.
1. Service
Each service is different and the strategy you form depends on what service you have
chosen.

• knowing the difference

In service there are different kinds but others only differ according to the added value
and what they focus on, for example delivery services: we have shoppee and lazada
(they both focus on in-app or shopping purchase delivery, while j&t and lbc focus on
delivery of parcels according to person-to-person transaction. knowing the difference
gives you the idea on which service you will go for or develop more.
2. Service component & Component category
The information you get from components can be used to form a strategy.

 Choosing the component that best fits your service.

Components differ in a lot of ways, by platform, data used and so on. From this you can
choose the component that you see that has advantage over others. For example: in
delivery service some use the app as a platform others use a physical establishment,
and from there you can see which is more advantageous nowadays and pick the better
component for your service.

3. Business Domain
This also connects with the service component and component category, knowing
what the component you choose interacts with the domain by that the strategy you form
impacts the whole branch.

 Focusing on plans dedicated to the domain.

The business domain impacts the whole service and the strategy or approach needs to
be centered depending on the type of domain your service has, for example delivery
service: internet can be the domain of your service as well as the physical domain or the
physical store. The domain affects all branches as such where your plans for having the
internet as your business domain needs to be focused on online processes and
transactions.

Both the service cycle and hierarchy service is needed to improve your service business
and both need to be applied as they differ, The service cycle has a generalized
approach strategy while Hierarchy service is where you personalize strategy according
to what will fit your service.
Service strategy
A service strategy is a key aspect of service management that focuses on developing
and implementing strategies to deliver effective and efficient services that align with an
organization’s overall business objectives. It involves identifying the services that an
organization should offer, determining the target market for these services, and
developing a plan to deliver them.
Service tactics
Service tactics refer to the strategies and methods used by businesses and
organizations to effectively deliver services to their customers. These tactics are
designed to enhance customer satisfaction, build loyalty, and differentiate the service
provider from competitors.

What is after sales service?

After-sales service refers to the ongoing support and assistance that a business
provides to customers after they have purchased a product or service. It includes
resolving customer complaints, offering technical support, providing maintenance
services and addressing product issues or defects.
Types of After-Sales Service
 User training. This type is essential for customers since it helps them figure out
how to use your product. Users can understand how everything works with your
customer onboarding, training, and educational materials. Onboarding will ensure
smooth promotion down the funnel.
 Online support. For companies involved in eCommerce, it’s a must to provide
online support to assist customers when they face problems with a product.
Clients can reach businesses through various communication channels. They
can call support, use a chatbot, or social media networks to get help.
 Warranty services. Almost every company provides warranty services for their
customers. These might include replacing an item or specific parts of a product
during the specified period. For example, Apple provides its customers with a
one-year warranty and 90 days of technical support.
  Upgrades. Companies often upgrade software so that devices can be
compatible and serve their owners longer. For example, Apple users can upgrade
their software for 4-5 years.
 Free replacement. Brands offer to change the product if it doesn’t work properly.
Consumers can get a free replacement for a limited time.

Electronic services, also known as e-services or digital services, have become

increasingly important in today's interconnected world. This report examines the factors
driving the growing significance of electronic services and explores their impact on
various aspects of society and the economy.

Factors Driving the Importance of Electronic Services:

Convenience and Accessibility: Electronic services offer users the convenience of
accessing information and conducting transactions from anywhere at any time. This
accessibility breaks down barriers and ensures inclusivity for all individuals, regardless
of location or physical abilities.
Efficiency and Cost-effectiveness: By automating processes and reducing manual
paperwork, electronic services streamline operations for both service providers and
users. This efficiency leads to cost savings and faster service delivery, benefiting
businesses, governments, and individuals alike.

Impact of Electronic Services:

Economic Growth: The adoption of electronic services drives economic growth by
increasing productivity, reducing costs, and fostering innovation. Countries and
organizations that embrace digital transformation are better positioned to compete in the
global marketplace.
Social Inclusion: Electronic services play a vital role in promoting social inclusion by
providing access to essential services, education, and employment opportunities for
marginalized communities.
Environmental Sustainability: By reducing the need for physical infrastructure and
paper-based processes, electronic services contribute to environmental sustainability by
minimizing waste and carbon emissions.
How electronic services can create a sustainable competitive advantage.
Enhanced Accessibility: E-services allow businesses to reach customers globally,
breaking geographical barriers. This increased accessibility can attract a larger
customer base and contribute to sustainable growth.
Cost Efficiency: Electronic services often require lower overhead costs compared to
traditional brick-and-mortar operations. By leveraging digital platforms, businesses can
streamline processes, reduce administrative expenses, and allocate resources more
efficiently, leading to cost savings.
Improved Customer Experience: E-services offer convenience and flexibility to
customers by providing 24/7 access to products, services, and support. Enhanced user
experience through intuitive interfaces, personalized recommendations, and efficient
customer service can lead to increased customer satisfaction and loyalty.
Data Analytics and Personalization: Electronic services allow businesses to collect
and analyze vast amounts of customer data. By leveraging data analytics, businesses
can gain valuable insights into customer behavior, preferences, and trends. This
enables personalized marketing strategies, product recommendations, and targeted
promotions, which can significantly enhance customer engagement and retention.
Agility and Innovation: Digital platforms enable businesses to adapt quickly to
changing market conditions and customer demands. E-services facilitate rapid product
development, iteration, and deployment, allowing businesses to stay ahead of
competitors by continuously innovating and offering new features or services.