Marketing essay help on: Customer’s perception
Intend of this essay is to discuss about the customer’s perception towards service and goods innovation. In support, essay tries to make an analysis of innovation processes between firms involved in production of goods and the firms which are into delivery of services. On the basis of research it highlights some of the underlying differences in their innovation processes. In light of this discussion, arguments made by Van Looy, Debackere and other authors on service delivery and goods production’s innovation have been put forward in next sections of the essay. Further, descriptive essay focus on the techniques of service blueprinting and its benefits which entail an organization to be competent with the successful completion of innovation projects.
Innovation refers to the process of initiating and adding new, creative and unique to something already established by making changes to it. It also ensures that the changes made and new additions will attract and add value to the customers (Sullivan, 2008).
On the other hand, services often are considered by people as non-innovative or supplier-dominated addressee of technology. In this perspective, they are regarded to be associated with uncreative activities in the sense that they are less rigorous in terms of physical capital’s use. Moreover, it also reveals the lower extent of knowledge accretion. Next, concerning the services innovation, it has come into focus from the identification of a stage of explicit differentiation from goods innovation (Rubalcaba, 2010).
In support, Van Looy & Debackere presented the holistic view of innovation process of various firms. They talked about the spiral process of the innovation and mentioned that innovation includes the continuous series of expressing the company’s product, service and its processes comprising the solution of dealing with customers’ needs. The holistic view of innovation process they pointed is about creating and adding value for the customers ultimately. On the basis of overall analysis in relation to service organizations, they made a point to be noticed out that such organizations might realize that for the further service innovation, they should not only focus on their traditional assistance systems, but also might incorporate other complimentary activities from associated value chains along with their conventional assistance offerings. By looking closely at the concept of spiral innovation process, it was found that whole variety of new product and service families are based on breakthrough innovation. This has result in growth in functional variety and application possibilities (Debackere & Van Looy, 2003).
Additionally, they explained the goals and objectives of the firm’s innovation strategy for meeting the customer’s needs. Following this, they planned that the strategy will support to traditional and established operations and products which will further help in extending and growth of product range. Through this strategy, breakthrough products and processes will be introduced to the market. Further, they demonstrated that organizations will have to maintain their portfolios in order to perform better and to foster the product or service innovation processes and stages. From a cross-sectional perspective, the management of portfolio needs balance between breakthrough and the derivative projects which generally meant for shorter term.
Therefore, it can be noticed that getting service innovation is more wide-ranging and intricate than those of goods innovation. And on the other hand, due to the intangible nature of services, the consequences of service innovations are less able to be seen than the results in case of goods innovation. Hence, it leads to have a more reduced market among its prospective clients. But alternatively, it also has been noticed that it’s only a myth that service innovation is less productive and less tradable than goods and thus it can be reflected in their performance (Green al, 2002; Rubalcaba al, 2010).
Supportively, innovation differences between service and product/goods organizations in Croatia have been presented in this segment of the essay. This analysis explored that there are some differences to be noted in terms of new product development. On the one hand, the Croatia’s study revealed that service firms there basically rate marketing & sales more than R&D and manufacturing with respect to the business function’s importance. On the other hand, it stated that non-service firms in Croatia have much more balance in terms of business function’s operation in new product development (Radas, 2003).
Furthermore, many times customers do not understand service’s value unless the things go wrong with it for which they usually tend to blame the service provider. Service providers focus on their offering system and in turn effectively and efficiently attain the objectives and do not meet with any breakdown. However, they fall fatality to their own success if in any case customer do not perceive the value of their service offerings. A case of UPS world’s largest commercial and residential package delivery Company can be presented here which is known as a service innovator. It started proposing common carrier services all the way through United States, build and airline business and moreover also started offering non-package services. With this entire framework it is productizing the services and in return adding value to the customers which helps gaining the market size (Weidmeyer, 2002).
In addition, there are various management related challenges that require the fundamental techniques of service innovation such as service blueprinting. In that case Bitner, Ostrom and Morgan articulated that first, service organizations should design the process as per the requirement of customers’ need. Next, they must experience the customers and should outline whether they are capable enough to manage those experiences systematically or not. Experience of customers generally dictates the quality of services offered and its ultimate value including the perspective of the brand itself which makes an impact on the preferences and loyalty aspects of the customers (Bitner, Ostrom & Morgan, 2008).
However, services are intangible, inconsistent and delivered over time and space by nature. A well- designed service satisfying to good experience can provide the corporation with a core point of discrimination from its competitors. A case of Yellow transportation’s practice of service blueprinting has been presented in support. First, defining the objectives of services to be blueprinted, determining the factors and people involved in the process, modifying the blueprint techniques, noticing the disagreements to assess the future learning, ensuring of retaining the customers, and finally making recommendations by taking insights for future actions. Service blueprinting is required in both breakthrough and derivative innovation projects as they both focus for customer’s attraction. Customer is not considered as the source of innovation, but creating and adding value to the customer is the main aim of service innovation in both kinds of projects (Seyring al, 2009).
The entire discussion over service and goods production depicts the difference. However, the level of significant differences is low but it indicates a few key factors involved in emergence of differentiation. The main topic pointed out is the interaction between the service provider and the client which further decides the quality, performance and the perception of the customer for service offered. It has been concerned as a key element in service organizations in mapping and underlying their innovation process. Further, discussion made by Van and other authors regarding the customer’s main focus on service innovation rather than goods innovation has been demonstrated. They mainly recommended mainly focusing on offering other than traditional services along with the value chain system. Morgan and other authors’ argument over service blueprinting support the essay in relation to go well with the service innovation and to grip the customer’s attention.
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