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SQ Project Guidelines (Part One) - July 2013
1. 1. Starting the Project
2. Introduction and Business Overview
SERVICE QUALITY (MKTG 1268)
GUIDELINES FOR GR0UP ASSIGNMENT:
NEW SERVICE PROPOSAL
(JULY 2013)
Geoffrey da Silva
3. Think about and propose a practical new service
idea and concept
You MUST read and understand pp 113-115 of
Wirtz text (2nd Edition) before you start – otherwise
you will have NO idea just what a service
innovation is all about
We will discuss different aspects of the SQ syllabus
concepts throughout the report : therefore the
development and writing of this report will be
incremental.
WHAT IS THIS PROJECT REQUIRING US TO DO?
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4. You have the option to either explore:
A new service product idea from the perspective of a new
business* that you would like to build (e.g., a ‘major
service innovation),
Or
A ‘new’ service for an existing business* (Note:
Although a ‘new’ service can include‘style changes’ and
‘service improvements’, please ensure that your proposed
new service involves a MAJOR change, such as a ‘product
line extension’, ‘major process innovation’, or ‘major service
innovation’ – refer to pp.113-115 of Wirtz et al. 2012 for
further information).
(*Note also that the ‘business’ you choose to explore need
not be limited to profit-making organisations, but can be
based on a not-for-profit service organisation.
OPTIONS:
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5. 1. You can write from the point of view of an
entrepreneurial start-up – a completely new
service business, OR
2. An existing service business already having one
or more service products and now wishing to
introduce an additional new service
3. You could also write about non-profit
organizations including charities
IMPLICATION OF THE OPTIONS
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6. It is expected that the proposal will include detailed
information and analysis of the external
environment relevant to the business, as well as of
each of the seven marketing mix elements for the
‘new’ service.
That is, you will explore the new service idea’s
feasibility based on the existing/potential
performance and/or capabilities as well as of the
environmental trends/conditions relevant to the
existing/envisioned organisation.
WHAT WILL THE REPORT COVER?
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7. DATA COLLECTION
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Some of the things you may consider doing and/or including in the report
may include:
- Conducting a small scale market research to ‘test’ out the new service
idea (e.g., with a small sample of the target market, and/or with ‘experts’
with the relevant knowledge/expertise, for their feedback),
- Conducting short interview/s with an existing business owner (whom you
may already have an established rapport) or a service firm audit to
explore any issues or problems the business may be experiencing (and
require improving), on which you can base your ‘new’ service suggestion.
NOTE: Please conduct this research independently, without SIM
administrative involvement (such as in terms of obtaining introductory
letters, etc.).
8. 1. Don’t do this on a large scale
2. Use the data to support your findings – that is the
feasibility of the new service idea
3. If you are doing interviews, keep the
questionnaire short and include sample of
questionnaire and the main findings in the
appendix
4. Same thing for the management interview – show
the interview answers in the appendix
IMPLICATIONS OF DATA COLLECTION
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10. This is the introduction so just provide a very brief
introduction
What the company does, it customers, regional or
local scope, mission and vision statement, key
people, etc.
Or if the business is new (not yet started) – the
provide a brief description of the proposal
Keep this short – half a page if possible.
1. BACKGROUND OF ORGANISATION SELECTED
OR THE NEW BUSINESS ENVISIONED (2
MARKS)
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11. As mentioned : refer to pp.113-115 of Wirtz et al.
2012 for further information on the classification
It is possible that your service might overlap two
versions BUT not more than two
Do NOT venture to write your report any further if
you DON’T understand this classification as it
would seriously impact the quality of your research
and writing.
YOU NEED TO ALSO CLASSIFY THE NATURE OF
YOUR NEW SERVICE
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12. 2. INTRODUCTION TO THE PROPOSED NEW SERVICE PRODUCT
CONCEPT (DESCRIBE AND CATEGORISE THE NEW SERVICE INTO
PEOPLE/POSSESSION/INFORMATION/MENTAL STIMULUS
PROCESSING SERVICE) …….
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Choose ONE category only for your service
Explain why it belongs to that category.
?
??
?
13. 1. Give some possible issue or problem that made
the company want to introduce a new service –
perhaps customer dissatisfaction, poor service
delivery and others
2. Another way is to examine the figure in Chapter
One of the text – Forces Transforming the Service
Economy
3. DO NOT describe these forces BUT instead pick
ONE or TWO that could explain the rationale for
the introduction of your new service
…… AND ITS DRIVER (E.G., ISSUE/PROBLEM WITHIN AN
EXISTING BUSINESS OR THE RESULT OF AN
EVENT/EXPERIENCE/ENVIRONMENTAL
FACTOR/TREND) (5 MARKS)
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14. Government
Policies
Business
Trends
Social
Changes
Advances
in IT
Globalization
Innovation in service products & delivery systems, stimulated by better technology
Customers have more choices and exercise more power
Success hinges on:
● Understanding customers and competitors
● Viable business models
● Creation of value for customers and firm
● New markets and product categories
● Increase in demand for services
● More intense competition
Forces Transforming the Service Economy
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15. Pick one or two main forces that are RELEVANT to
the new service
That means you need to show the connection
between that force/s and the NEED for your new
service
Explain why existing services offered by
competitors or your company are inadequate given
the CHANGES that are taking place in the external
environment
Show how your new service meets the new needs
created out of environmental changes (example
technology or social changes)
COMMENTING ON SELECTED FACTORS
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16. Analyse the new service’s target market (what is its
characteristics, why is it targeted?) and key competitors
(what is your competitive advantage, what makes you/your
proposed new service different to the competitors?); present
the new service concept’s ‘pitch’/appeal (5 marks)
3. POSITIONING
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Make sure you answer each part of this section:
• Target segment -define
• Justification (why)
• Key competitors (who)
• What are your competitive advantages (evidence)
• What makes your proposed new service different from theirs
(explain)
• Write the appeal or short USP for your proposed new service
Need to refer to Chapter 4 of text. Also do draw at least one Positioning Map
to show the competitive positioning of your new service
17. Provide details of the three-stage process of service
consumption that applies to this service. Describe briefly the
type and amount of information existing/potential customers
need/use in their decision-making process and the
perceived risks involved in the purchase and use of this
service (8 marks)
4. BUYER BEHAVIOR
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Material is from Chapter Two of the text
Use the model
But your discussion is not theory – it is about how it “applies to
this service”
• Type of information used in decision making
• Types of perceived risks
19. Describe briefly the type and amount of information
its consumers use in their decision-making
process:
What kinds of information do customers need; bear
in mind the intangible nature of a service
Where do they get the information from? Which
ones are more credible
How would you new service be viewed when it
comes to seeking information? What attributes
would customers look for – would it be more on
experience or on credence attributes?
PRE-PURCHASE: INFORMATION SEARCH
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20. … and the types of perceived risks involved in the
purchase and use of this service :
Briefly discuss only the relevant types of risks-
functional, financial, social, temporal, etc
Explain how such risks my constrain buying
behavior
Explain what the new service firm could help to
minimize such risks example more convenience,
provide assurance, etc.
PRE-PURCHASE: INFORMATION SEARCH
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