Managing Service Trade-Off for Better Customer Experience

Managing Service Trade-Off for Better Customer Experience

Saravanan Raman (UOW Malaysia KDU, Malaysia), Norazah Mohd Suki (Universiti Utara Malaysia, Malaysia) and Subhaseni Chinniah (Ministry of Education, Malaysia, Malaysia)
DOI: 10.4018/978-1-7998-4772-4.ch018

Abstract

This chapter presents the overview of service-operational challenges faced by the service managers in creating customer experience. Trade-offs are described as operational constraints in achieving multiple objectives simultaneously and have been identified the keys in creating memorable and meaningful service experience. Meanwhile, it was emphasized by Skinner that a firm cannot be outstanding at everything, and the managers need to make choices between different core operational capabilities in manufacturing or service systems. In a recent trend, maximizing profit among firms is not a new term because firms are seeking for high profit and would like to sustain their business in the industry by generating high revenue. Thus, the firms are looking at many other possibilities to increase their revenue. This has become the biggest concern among service firms to minimize the trade-offs effects on customer experience. Thus, the service organization attempts to minimize the trade-off practices among service employees and improve the service experience for the customers.
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Trade-Off And Operational Challenges In Creating Customer Experience

Service organizations face huge operational challenges that compel them to make compromises and tough decisions in order to remain competitive, deliver their organizational mandates, and improve on their general performance indicators. Operational challenges occur when management of organizations try to balance operational demands, related organizational performance indicators with the resources available at their disposal. Most times, these resources are inadequate for the organizations to perform optimally, hence, the challenge of trade-offs arise. Basically, the concept of trade-offs emanated from empirical investigations and related managerial concerns in the management of organizations (Sarmiento et al., 2016). Interestingly, trade-offs have been examined in a number of contexts such as manufacturing (Skinner, 1996; 2001; Rosenzweig, & Easton, 2010; Beuchelt, & Badstue, 2013), corporate sustainability (Hahn, Figge, Pinkse, & Preuss, 2010), and corporate environmental performance (Delmas & Blass, 2010). However, though empirical examinations on trade-off in the service operations perspective started in year 2000, little has been done and subsequently agreed upon as to the most important factors that influences and/or trade-offs in the service sector (John, 2004; Sarmiento,Thurer & Whelan, 2016).

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