What is service
1. Term: Service has several meanings in economics.
(1) Translated from English, “service” means a service that someone does voluntarily.
(2) Service also identifies the non-productive (economic) performance that
(2a) either represents the core service of a company (service company) or
(2b) supports the created products as an additional service such as the pre- and after-sales service as a service for products before and after the purchase of goods. In addition, there is customer service, with services for purchased products such as maintenance or care. Economically, this service term is applied to the service society, which in this country characterizes the change in the location with tertiarization.
(3) Another service label refers to the service performance experienced by customers as moments of special attention from a company.
2.Aims: Conventional service management mostly ties in with (2b) and essentially comprises the definition of service standards with the help of service routines in order to either guarantee the availability of the core service to customers or to support the market success of the core service with additional services.
3.Aspects: The problem is that the performance-dependent service label (1) and / or the planning-related definition of service (2) does not have to match the perception and expectation of customers according to definition (3). Rather, these may even require the agreed service agreements to be adhered to, so that they no longer have to have anything to do with experienced service moments in the sense of definition (3). In times of saturated markets and globalized competition, such service moments are important features for differentiation in markets and can shape the unique value proposition as a prominent sales promise. Service moments that the customer can constantly experience depend on the corporate culture. Paradoxically, it is possible that a company with its non-productive core service is considered a service provider (e.g. a telecommunications company) according to definition 1, provides extensive customer service as well as pre- and after-sales services (e.g. with the help of service level agreements, i.e. agreed service standards such as such as the defined availability of network resources), but is not perceived by customers as service-oriented.
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