Thursday, August 13, 2015

Service winners, losers and qualifiers

One group of concepts that can be useful are the terms service winners, service losers and service qualifiers.

To be a service qualifier is to meet the minimum requirement to compete in that service class or industry. There can be regulations around qualifying. For instance, in order to practice as a chartered accountant, one needs to be a qualified chartered accountant, and this profession has various regulations and professional standards that are required before you can set up an operation in this category of businesses. Often there are many informal and formal barriers to entry to be a qualifier in a service class.

A service loser is a service provider who fails in some way to provide an adequate standard of service in their class. This often means failing on the 'hygiene and critical' (Johnston, Clark and Shulver, 2012) quality factors. These are the quality factors that, if they are not present, dissatisfy the customer. For instance, finding mice in a children's playground at a fast food restaurant (as happened recently in Auckland at a McDonald's), or two major international aircraft disasters in the same year (as unfortunately happened to Malaysian Air in 2014). At McDonald's, the failure was in cleanliness and hygiene, and for the airline it was safety. Generally speaking, a service would only fail if they consistently did not reach an adequate standard of performance in their crucial aspects. Most businesses would recover eventually, even from such tragedies as aircraft crashes, but the losses in reputation and financial sustainability can be quite profound.

A service winner is understood as the best at service in a particular class of businesses. So, for instance, McDonald's is often seen as the service winner in fast food. What McDonald's does is often copied by other fast-food restaurants (e.g. drive through, self-service kiosks, cafes, etc.). In budget hotels, Ibis is a service winner. In airlines, Air New Zealand, Singapore Air and Emirates are all arguably service winners.  

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