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Acknowledgement...........................................................................................................................2
Introduction to Professional Services..............................................................................................3
What is Service?..........................................................................................................................3
Banking Industry as a Service Industry...........................................................................................3
Introduction..................................................................................................................................3
Factors of E-Services Add Value to the Customers.........................................................................3
Importance of Service Process.....................................................................................................4
Service Quality............................................................................................................................4
Service Delivery System..............................................................................................................4
E-Services that are used of service delivery............................................................................5
Service Encounter........................................................................................................................5
Managing Service Encounters.................................................................................................5
High Contact Service...............................................................................................................6
Medium Contact Service.........................................................................................................6
Low Contact Service................................................................................................................6
Service Recovery.........................................................................................................................6
Banking Industry Adding Value for their Customers.......................................................................7
Weaknesses of E-Services...............................................................................................................8
References......................................................................................................................................10
Acknowledgement
I am very pleased to say that I learned a lot in my Professional Services Management class.
Before this I had no idea about this subject. After the lesson I am able to cop up with the basic
and up to certain intermediate knowledge of Professional Services Management. I got familiar
with lots of new theories and information which are quite new to my knowledge.
For this I would like to thank to my Professional Services Management lecturer and supervisor
Mr. John Choong for his continued help and supervision during my assignment. He always gives
useful information in order to help me complete this assignment. Without the lecturer guidance I
would not be able to accomplish my task.
I am also very thankful to my friends who help and assist me in class and lab sessions. I am very
thankful to them, their helpfulness is always appreciated.
Service Quality
Service quality is the extent to which a service meets or exceeds customer expectations. If the
customers identify the actual delivery is better than he expected then he will be happy it means
customer satisfaction is the quality but if the actual delivery is below then he expected it means
service quality is not good because customer is not satisfied.
Before purchasing a service customers have an expectation about service quality that is based on
individual needs, past experiences, word of mouth recommendations and a service providers
advertising and after buying the service customers compared the service quality with his or her
expectation with what they actually received (lovelock, 1999).
Service Delivery System
“It is the part of the total service system where final assemble of the elements takes place and the
product is delivered to the customers, it includes the visible elements of the service operation”
(lovelock, 2002).
Service delivery is concerned with how to deliver the service product it is also concerned with
when and where to deliver the service product (lovelock, 2002).
E-Services that are used of service delivery
Because of e-services customers and consumers of banking industry are facing great convenience
then face to face contacts. Banks provides many e-services nowadays they deliver their services
using ATM machines, they provides debit and credit cards, websites, online banking and also
cash deposit machines.
Traditionally service providers had direct contact with their customers but they want to reduce
their cost and want to increase their productivity for customer convenience and many services
don’t want their customers to be physically present in their service factory that’s why service
operation is shrinking in many industries as electronic technology flows are used to drive service
delivery from higher to lower level of contact (lovelock, 2002). See Appendix 1
The use of technology in the delivery of banking services is becoming more and more prevailing
as it is being working to reduce costs and get rid of uncertainties. Banks provides e-services such
as account viewing, transferring funds, paying bills, personalization or customization, market
places, interest paying and checking accounts, mortgage applications, credit card applications,
brokerage service and many more.
Service Encounter
It is a period of time in which customer interact directly with service and in the sometimes the
entire service experience can be reduced to a single encounter many people enjoy visiting the
bank branch if they don’t trust machines or if they know any of the bank staff members who
provide them services (lovelock, 2002).
High level of encounters between customers and the service organizations can be very opposite
from lower level. Many service problems revolve around disappointing incidents between
customers and service personals that’s why service industries are simplifying their service
delivery and improving their productivity (lovelock, 2002).
Managing Service Encounters
Services involve in various encounters between the customers and service employee it can be in
person, online, by phone or in service factory. It may also take place in physical facilities or
equipment(lovelock, 1999).
Service encounter is viewed as a harmony with the customer and the service personnel both
exercising manage over the service process in an environment defined by the service
organization. The importance of flexibility in meeting customer needs has resulted in many
service organizations empowering their contact personnel to exercise more independence
(Fitzsimmons, 1999).
High Contact Service
In which customer face the service facility in person and involve with the service organization
personal directly throughout the service delivery for example; Restaurants or hair dressing
(lovelock, 2002).
Medium Contact Service
Customers visit the service factory and involve in situations but do not remain throughout service
delivery or have only reserve contact with the service personalfor example management
consulting or insurance (lovelock, 2002).
Low Contact Service
Very little involvement of the physical contact between customer and service provider and the
service delivery medium can be electronically or physical distribution channelsfor example ATM
machines (lovelock, 2002).
Service Recovery
Service recovery made when there is a failure or when there is a customer complain. The purpose
of service recovery is not to satisfy the customer but to use the information from the failure and
its consequences to continuously drive improvements through an organization by focusing
managerial attention on specific problem areas (Robert Johnston, 2001).
• Electronic mail containing confidential information could be sent in error to the wrong
person
• Some banks have their systems connected to other businesses a setup that can offer an
opportunity to thieves who want to access sensitive information
• Illegal access to customer files by dishonest employees (Brian Nixon, 2000).
In e- services theft of credit card and personal information is often all somebody needs to be able
to spend all your money on the internet. Being able to purchase and buy items with very little
proof of your identity is another big downside to e-service. Using a credit card in an online
transaction all you need is what is already printed on the card, and the offender can cover their
tracks a lot easier, no one will have to see them to make the transaction (Valentine 2003).
It is not only the consumer that is at risk on the internet, extortion is a major problem for
company's using online transactions from customers (Gow, 2005)
Consumers are hesitant to buy some products online. Online furniture businesses, for example,
have failed for the most part because customers want to test the comfort of an expensive item
such as a sofa before they purchase it. Many people also consider shopping a social experience.
For instance, they may enjoy going to a store or a shopping mall with friends or family, an
experience that they cannot duplicate online. Consumers also need to be free from worry that
credit card transactions are secure and that their privacy is respected (Online business money
maker, July 2008)
We can say that the information is overloaded. We can also talk about the flexibility of the e-
service with the promotion companies on the internet that can easily change and get the right
direction as soon as the company starts working. If you wanted to get information any other way
from these countries you may end up having to go there. They want more safety in their
purchases. In effect all the olds computers who doesn’t have internet are cut of this market and if
they want to get into this market and they have to invest in computers and it cost a lot of money
at the company. With all these new systems of security, it is more and more difficult to find
qualified consultants who ensures the maintenance
Appendix
• Christopher Lovelock and Lauren Wright, 2002, Principles of Service Marketing and
Management, 2nd edition. New Jersey, Pearson Education.
• Brian Nixon and Mary Dixon, 2002. Teach Your Self Today, E-Banking. Indiana, Sams
Publishing.
• Robert Johnston and Graham Clark, 2001. Service Operations Management. England.
Prentice Hall.
• Gow Brad, 2005. The growing threat of cyber-extortion, Risk Management, New York,
United States of America, Retrieved on 30th July, 2008. From
http://athene.riv.csu.edu.au/~rdunn12/itc125/assignment2/essaypage.html
• Valentine, Lisa, 2003. The 'fraudsters' playground, American Bankers Association, United
States of America, Retrieved on 30th July, 2008. From:
http://athene.riv.csu.edu.au/~rdunn12/itc125/assignment2/essaypage.html
• Online business money maker, 2008. Retrieved on 30th July, 2008. From:
http://www.orble.com/introduction-electronic-commerce-advantages-and-disadvantages/
• Advantages and disadvantaged of internet marketing. Retrieved on 31th July, 2008. From:
http://www.megaessays.com/viewpaper/5433.html.
• Appendix Pictures from: www.maybank.com.my Retrieved on 31st July, 2008.