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Business Theories, Concepts, & Techniques (Term Paper Sample)


The Purpose, Application and Limitation of Service Concept, Customer Segmentation and Customer Expectations


The Purpose, Application and Limitation of Service Concept, Customer Segmentation and Customer Expectations
Business processes and techniques have changed with every change in factors that affect and influence their effectiveness, applicability and suitability in achieving business objectives that are varied depending on organizational goals and objectives. It has more so been dynamic in response to changing customer needs which forms the basis for which the theories are developed and applied in order to close the gap between the business processes and actual outcomes.
These theories can be used to evaluate the gaps existing with regard to the actual experiences, perceptions and perceived experience and perceptions that exist between businesses and their clients (Marc, 2009). In most instances the service providers tend to believe that whatever they provide is exactly what the customers want or if the customer says nothing about it, the product is okay. It is also mistaken often that whatever the customer says about the service, especially positive comments, is true and not biased. These gaps in reality and perceptions in both customers and service organizations need to be re-evaluated to ascertain the true and real perceptions and experiences.
Although the theories depend so much on qualitative analysis, it is still possible to assess the situation. The perceptions and experiences are qualitative variables that cannot be measured by physical units like time, weight or price, but on customer ratings on how they feel about the variable being measured. Therefore, this becomes one challenge with determining the level of satisfaction of services among customers.
Separating these differences is very important to both customers and organizations but mostly to the business which seeks to provide a service that actually has the right impact to the consumer. It will also help avoid dishonesty that normally exists in businesses especially when they make big claims only for the service to prove them otherwise.
The service concept
Service concept is the principle basis upon which businesses try to provide their services with a strong consideration of what the customer actually wants. The service concept theory gives the foundations which must be laid and used by a company in order to achieve a balance between the needs of customers and what they provide (Marc, 2009). This concepts further helps to direct and guide the way production and delivery of services are done in order to achieve maximum satisfaction and move away from the problems brought by the missing link existing between the customers and the businesses. This understanding is basically achieved when the business process take into account the feelings of the customer about the service, its quality, affordability and satisfaction it brings to the consumer. With this in mind the whole process of service production will be geared towards a known and very specific objective of satisfying customer’s needs (Marc, 2009).
The main purpose for the use of service concept as an idea and a theory in business is to meet customer needs through a business process that constantly reflects upon the customers’ take on the service. The customer perception towards the service is taken into serious considerations. This understanding will guide the way the business will strive to achieve a common ground that is acceptable for the customers regarding the product.
The service concept also opens up avenues for better interaction and engagement between the business and customers in the process of selling the service. This will be beneficial to both the customer and the business in that the customer will articulate his views about the service quality, efficiency, etc., to the business and therefore reduce the information asymmetry existing between the two. Service concept is also applied as a formula for undertaking various strategies and techniques that are aimed at increasing productivity and profitability. For instance the firm wants to improve customer experience when they buy certain services. The service concept will be employed to the effect of improving the provision of the basic needs of a customer which includes friendliness, fairness and giving information among others, thus, helps to improve the perceptions that the customers and business may have heard about each other (Marc, 2009).
The service concept however has some shortcomings in its application and it lies mostly on the nature and characteristics of service concept itself. One of the limitations is the problem of intangibility. Services in the first place, are not physical and can only be felt when consumed. The service concept as a tool therefore lacks the universally accepted way of measuring the intangible attributes being examined. It is also hard to quantify how much it has affected a consumer or its impacts are hard to measure quantitatively, which is very important for statistical and credible analysis. Another limitation to the service concept as a tool is that services rely so much on complicated human behaviour which creates an overly complex and hard to understand preference and tastes of each consumer. Consumers and even service providers the same have unique thoughts and perceptions which will strongly affect the service concept’s use. There will be no standard judgment criteria since the results are derived from individuals with non standard behaviours and perceptions.
Customer segmentation
This is the process of placing customers in different categories depending on various attributes that are common to them like age, location, gender, etc. It is done to reduce the inefficiencies and challenges in service production and delivery. The market is always full of different types of consumers. But as much as they are very unique from each other, there exists...
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