Services marketing assignment- New added service

1. SERVICES MARKETING ASSIGNMENT
Submitted By Submitted To
PGDM II Div A Dr. Giribala Dewasthale
 Saurav Dagdelwar- 48
 Ranjan Ghosal- 51
 Saloni Sanghani- 73
 Ankita Thakurdesai- 78
 Trupti Gangan- 89
 Satyam Gumastha- 91
 Shivansh Shourie- 113
 Manish Singh- 115

2. INTRODUCTION
The sector of the service organisation we have selected is the Retail sector. The retailing
sector is going under a revolutionary change. Accepting the influence of technology is critical
for the retail industry to remain vibrant. Technology will make shopping easier. A well
developed technology will bring more customers back to spend more time selecting fashion
merchandise.
We visited The Central Mall near Esquare Mall University Road. We spoke the store
Marketing Manager Mr. Prajat Nair, he gave us some valuable insights about the retail
operations in a departmental fashion store like Central. His inputs were of critical importance,
he mentioned how technological upgradation could bring ground breaking changes in the
field of Fashion Retail.
NEW ADDED SERVICE
The newly developed supplementary service in a retail apparel outlet which is Central Mall,
is based on technology and which helps the customers in browsing through various apparels
on the shelf real time and also provides a suggestion based on the information fed to the
system taking the advice of fashion consultants/designers with the help of a touch-screen
panel mounted throughout the outlet, without taking an actual physical effort of moving
across the outlet and checking out each and every store till the customer finds a
product/apparel which satisfies his need or want. For customers to avail the service LED
screens would be installed across the store.
Features of the Service
 Various combinations
 Brands available in each selected article
 Location of the article placed in the store
 Discounts offered on the purchase of the selected combination
 Latest stock available in the store
 Information about the material of the article
Flow of the Service
 Customer picks up an article of his choice for example a Blue Top.
 The customer scans the barcode of the top on the LED screen.
 Post scanning the screen will display various combinations of matching the Blue top
selected. For example the first combination being
1) Blue top with Black jeans
2) Blue top with a white skirt and a beige colour handbag.
3) Blue top with grey pants and a grey jacket.
 Each combination will tell the customer in which brands and the location of the article in
the store, each clothing is available.

3.  The screen will also display the discount percentage on the entire combination if bought
by the customer.
Application of Flower Service Model
As per the Flower of Service model the newly installed service would serve the purpose of
Facilitating supplementary service by proving Real Time information about different articles
available in the store. It will also serve the purpose of consultation which falls under
enhancing supplementary services as the customer would get best fashion combinations on
the screen along with that, the home page of the screen would provide latest fashion trends
and discounts being offered by the store.
VALUE CREATION BY THE NEW SERVICE
The value creation by the new service is achieved by;
 Cost reduction- With the introduction of new technology fashion consultation would be
provided through a graphic user interface which would in turn reduce manpower
requirements leading to cost reductions.
 Increase in Revenue- The introduction of new technology would provide a unique and
hassle free shopping experience to the customers. This would save the time of the
customers and would lead to more footfalls in the store further leading to increase in sales
revenue which will ultimately increase the profitability of the company.
TARGET SEGMENT OF THIS SERVICE
There will be no change in the Target segment of this service as the new service is a
supplementary service which provides a hassle free shopping experience to our customers.
There is no extra charge of using the service; the prices of the products will also remain the
same.
The current target market for Central Mall is:
 By Age and Gender:
 Men’s wear
 Women’s Wear
 Kids Wear
 For Clothing Style
 Formal wear
 Casual wear
 Ethnic Wear
 Sports Wear
 Party/Designer Wear

4. BLUE PRINT
BACKSTAGE AND SUPPORT ELEMENTS FACILITATING SERVICE
DELIVERY FOR THE NEW SERVICE
Supplementary Services:
Enhancing Services (Add extra value for the customer)
 Consultation: Training in how to use the machine.
 Exceptions: Handling special communications: Compliments and Suggestions
Facilitating Elements: Either needed for service delivery or help in the use of core product.

5.  Information: Directions to machine etc.
Backstage Elements: These are the elements or activities that are part of the service value
chain that the customer cannot see:
 Receiving the Material (Entry of Inventory)
 Data Input to the Information System
 System Maintenance Activities
TYPICAL SERVICE ENCOUNTER
 Entry of the customer in the retail store
 Product Search (Looking for products)
 Introduction to Machine
 Selection of the apparels based on individual preference
 Scanning the barcode of the product on the machine
 Browsing through outfit looks suggested by the system
 Choosing an outfit look
 Browsing through the brands that offer the products displayed in the look
ROLES OF SERVICE PROVIDER
 Creating the awareness amongst the customers about the newly launched
supplementary service and providing the information about usage of the machine.
 Providing the consultation through machine.
MACHINE
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6. ROLE OF CUSTOMERS
 Experiencing the new service, hands on with the use of machine.
Providing the service related feedback, suggestions, improvements and compliments
POSSIBLE AREAS OF SERVICE FAILURE, POKA-YOKES TO
PREVENT SERVICE FAILURE AND SERVICE RECOVERY
FRAMEWORK.
A performance that fails to meet customer expectation is referred as a service failure. When a
service organization fails to satisfy the customer’s expectation, the relationship of customer
with the service provider is affected. Hence In order to keep the customers satisfied it
becomes crucially important that the preventive measures are taken so as to avoid service
failures and in extreme cases even if the failure occurs, the service organization must have a
service recovery framework. In case of the newly developed supplementary service in a retail
apparel outlet which is based on technology and which helps the customers in browsing
through various apparels on the shelf real time and also provides a suggestion based on the
information feed to the system taking the advice of fashion consultants/designers with the
help of a touch-screen panel mounted throughout the outlet, without taking an actual physical
effort of moving across the outlet and checking out each and every store till the customer
finds a product/apparel which satisfies his need or want, below mentioned are the possible
areas of service failure:
1. System Breakdown: As the customer would be taking help of a computer screen in order
to find a suitable apparel based on preference or suggested by the system, in case the server
crashes or the system stops responding, it would lead to customer being unsatisfied with
service.
2. Inventory Mismanagement: It becomes significantly important that the apparel suggested
on the screen is actually available in stock. The physical stock and the information on the
system should match as unavailability of the suggested apparel might lead to customer
dissatisfaction.

7. 3. Validity of the Information: The information/pictures shown on the touch-screen panel
should be valid i.e. the picture, size shown on the screen should match with the actual stock
on the shelf. If the picture/size shown on the panel is different from the apparel on the shelf, it
would lead to service failure since the customer would feel cheated and will be dissatisfied by
the performance.
4. Lack of Human Touch: In case if the customer has any query pertaining to the usage of
service, the customer service representative (In this case Store Manager as other sales force
has been reduced) should be easily accessible, totally relying on the technology and zero
human touch would also lead to customer being unsatisfied.
Poka-Yokes to prevent service failure:
 In order to prevent a system breakdown, the proper and timely maintenance of the
systems needs to be ensured. In case of a power failure an alternate supply of power
should be kept ready such as inverter/power generators etc. In case if a particular
touch-screen panel stops working abruptly, the Store Manager should have the access
to the information shown on the screen which was being used by the customer. One
master system should be kept near the store manager which is run on a different
power supply and connected to a different server.
 Lot of e-commerce companies such as Amazon, Alibaba, Walmart takes the help of
technology which keeps the real time update of the stock with the help of barcode
scanning. Once the material is procured and inspected and a Goods Receipt Note
(GRN) is raised by the material receiving department the stock is immediately
reflected on the system and also when the customer makes the payment and invoicing
is done, the stock is again calculated and reductions in the stock level is calculated.
Adoption of such information system although requires an initial investment, it would
reduce the service failure caused by Inventory mismanagement.
 As the data is provided to the system by the humans it is possible that there may be
human errors which further lead to contribute in service failure. Hence accurate data
entry should be done, the information fed to the system should be cross checked once
entered, for example the photograph attached along with the product ID, should be
checked whether it is matching with the product ID and Description.

8.  If a customer is looking for some help and the store manager is not available it may
lead to customer dissatisfaction, it is important that the manager is available all the
time and easily accessible, for that human resource management plays a crucial role.
In case if the manager is off the duty for a while, his charge should be handed over to
a trained professional who can work as a replacement till the manager resumes his
duties.
Service Recovery Framework: Service Recovery framework is a procedure which deals
with customer’s complaints. An effective and timely service recovery framework based on
fair treatment and with a focus on interpersonal treatment given to customer framework can
turn a complaining customer into a satisfied and loyal customer.
 In case of a System Break down the store manager will walk up to the customer
proactively since he will be notified on the master screen which system has stopped
working, and offer the help to the customer. The manager would empathize with the
customer, understand the problem and proactively offer solution. An additional
discount of 5-10 % depending on the severity of failure can be offered in order to
recover as compensation.
 In an extreme case even after taking the preventive measure if the service failure
related to inventory occurs and the product is not available in stock customer can be
assured a home delivery of the product which the customer was demanding and is not
in stock. With an additional discount depending on the severity of failure and the
price of the product can also be provided in order to recover the failure.
 In case of invalid information on screen and inaccessibility to the store manager the
customer should be given either an immediate discount on the MRP or exclusive
discount vouchers for the future purchases in order to retain the customer.
In addition to this, all the failures would be recorded and the organization would do a root-
Cause analysis in order to find out a root cause of the problem because of which the service
performance was hampered and to prevent it from occurring further.

9. PHYSICAL EVIDENCE FOR THE SERVICE
Physical evidence is the environment in which the service is delivered and where the firm and
the customer interact and any tangible commodities that facilitate performance or
communication of the service. The installed LED screens would be a physical evidence as
these would facilitate the process of consultation to the customers.
Elements of physical evidence
o Machine hardware
o User interface
Other tangibles
o Generated bill
o Customer copy of receipt
Role of physical evidence
o Facilitator - As the system installed would facilitate the delivery of consultation as an
element of service.
o Differentiator - The physical evidence would differentiate Central Mall from its
competitors and will induce more walk-ins and can also attract new market segments.
Quality parameters set for this new service and how quality can be
measured and evaluated
The service that our organisation is providing can be measured on the following aspects:
There are 5 dimensions upon which on which our new service can be assessed. And they are:
1. Reality – ability to perform the promised service dependably and accurately.
Our new service would be based on the model of SST – self-service technology. An interface
where the customer could not only visualise the apparel on him but also where he/she is
getting a matching pair on his selected wardrobe. The checkpoint for the interface would be
that the kiosk machine is actually able to show different combinations of suiting. Be it a
trouser or a skirt matching to a woman’s formal shirt and the kiosk is also able to reflect the
requirements of the customers to them w.r.t. exact pair of dressing, new arrivals, discount on
buying the entire set, etc.
2. Responsiveness – willing to help the customer and provide prompt service.
The SST new launched would answer to the questions and attend the customer base on his
requirement. Sales team often feel hesitant to respond to a customer’s requirement but with
the introduction of the SST, there would be a prompt and exact answer to customer seeking

10. help. Be it which kind of a tie would match to the shirt or even in which corner and shelf to
find the tie.
3. Assurance – assurance comes with the knowledge of the employee
A customer could be able to confide his trust and confidence where there is reliable
information. Clearly the kiosk machine would showcase the new arrivals, matching pair of
clothes, providing information in context of the quality or fabric of the cloth, etc. further the
kiosk machine would also advise the customer that in which shelf to find the matching
trouser or skirt to the decided shirt to buy by the customer.
4. Empathy – caring and individualised attention to the customer.
In human context, a customer has to himself approach to the sales person when he seeks help.
On the other hand where you have a kiosk machine with one sentence displaying, “How may
I help you”? makes allot of difference. Language also tends to be a service failure in human
context but you have now the kiosk machine offering help in three different languages
definitely will give a personal approach to a customer. A customer who is not familiar to a
vernacular language could find it easy to interact in be it Hindi or English language.
5. Tangibles – appearance of physical facilities, equipment, personal and written
materials.
Well to begin with the context of our new service, the service itself is delivered by a kiosk
machine which has a physical existence. The screens interacting to the customer is providing
the tangible quality. Further in context of consultation of what to buy and what matches to a
particular dress, the tangible element here would be the models wearing those apparels whose
photo is displayed on the screen.
Service quality measurement
There are three types of measures in context of service quality:
1. Service performance measure – measuring the performance of the kiosk machine as
against the blueprint designed in setting up the kiosk machine.
2. Customer measure – measuring how does the customer experience the use of the
kiosk machine i.e. addressing all the queries of the customer in the retail store
3. Financial measure – the installing of such machines, how would it impact the finances
of the company.
The answer to the service performance measure and customer measure could be addressed by
the SERVQUAL. SERVQUAL measures the Perceptions-Expectations framework. The
respondents would be asked to record their expectation of the new service launched and
perception regarding the buying process in retail outlet once the interface is launched.
(In the scale of 1-7, where 1 is strongly agree and 7 is strongly disagree)

11. PERCEPTION
Perception in reliability dimension
Challenges 1 2 3 4 5 6 7
Does the kiosk machine works as
promised ?
1 2 3 4 5 6 7
Does the machine tries to understand
what you seek ?
1 2 3 4 5 6 7
Does the machine performs the
service right the first time?
1 2 3 4 5 6 7
The service provided does not take
much time by the machine
1 2 3 4 5 6 7
The kiosk machine provides the
service 24*7
1 2 3 4 5 6 7
Perception in responsive dimension
Challenges 1 2 3 4 5 6 7
Kiosk machine gives you prompt
service
1 2 3 4 5 6 7
The kiosk machine easily
understands and helps you
1 2 3 4 5 6 7
The loading time to answer your
queries is lesser in the kiosk machine
1 2 3 4 5 6 7
Perception in assurance dimension
Challenges 1 2 3 4 5 6 7
The kiosk machine instills
confidence in you
1 2 3 4 5 6 7
The interaction is easy 1 2 3 4 5 6 7
The kiosk machine understands you 1 2 3 4 5 6 7
The kiosk machine is well-updated
to answer you
1 2 3 4 5 6 7

12. Perception in empathy dimesnsion
Challenges 1 2 3 4 5 6 7
The kiosk machine gives you proper
attention
1 2 3 4 5 6 7
The kiosk machine priority is to help
you
1 2 3 4 5 6 7
The kiosk machine has best interest
for you
1 2 3 4 5 6 7
The kiosk machine understands
specific needs
1 2 3 4 5 6 7
Perception in tangible dimension
Challenges 1 2 3 4 5 6 7
The kiosk has a modern looking
appeal
1 2 3 4 5 6 7
The kiosk machine and the screen is
appealing to you
1 2 3 4 5 6 7
The kiosk machine is well
maintained
1 2 3 4 5 6 7
The kiosk machine is convenient to
use in business hours
1 2 3 4 5 6 7
EXPECTATION
Challenges 1 2 3 4 5 6 7
The service is delivered in one shot
by the kiosk machine
1 2 3 4 5 6 7
Kiosk machine is greets you
customers and helps you in
prurchasing
1 2 3 4 5 6 7
The machine gives quick service 1 2 3 4 5 6 7
The kiosk machine is easy to
understand
1 2 3 4 5 6 7
the kiosk machine is user-friendly 1 2 3 4 5 6 7
The operating system (software and
hardware) is easy to operate
1 2 3 4 5 6 7
The kiosk machine is reliable to
shop with
1 2 3 4 5 6 7
The kiosk machine is readily
available to use
1 2 3 4 5 6 7
The machine is very simple and easy
to use
1 2 3 4 5 6 7
The kiosk machine gives you 1 2 3 4 5 6 7

13. convenience
Language is no more a problem with
the help of the machines
1 2 3 4 5 6 7
The machine does not gives
unnecessary information
1 2 3 4 5 6 7
The kiosk machine is a complete
map to your shopping
1 2 3 4 5 6 7
The interface is the next generation
of shopping
1 2 3 4 5 6 7
PRICE AND PROMOTION OF THE NEW SERVICE
Introducing of kiosk machine in the retail outlet is to add value. Also SST would provide as
an enhanced supplementary service. Kiosk machine is installed with the purpose of providing
consultation in buying. It will overall provide fashion quotient to the customers.
Hence, it cannot be priced in the product. Installing such machines is onetime expense in the
nature of deferred revenue expenditure. Deferred revenue expenditure is incurred bearing in
mind that the cost would be recovered by gradual increase in revenues on year-on-year basis.
A good way of advertising for the SST:
 Promoting the kiosk machine more on the website
 Print media and posters could be put up in all the corners of the outlet creating
awareness among the customers about the new introduced service
 A tape recorder could be used as oral communication of the service to all the
customers about the service.
 Customers who experience this new service would spread “word of mouth”.