Village volvo case study

1-Describe Village Volvo’s service package: First of all we need to define what service package is. The service package is defined as a bundle of good and services with information that is provided in some environment. This bundle consist of five components describing services such as: • Supporting facility • Facilitating goods • Information • Explicate service • Implicit service Village Volvo represents an effort by two former authorized Volvo dealer mechanics to provide quality service repair on out-of-warranty Volvos at a reasonable cost. n the basis of their 22 combined years of training and experience with the local Volvo dealer, t hey have earned a respected reputation and following of satisfied customers, which make an independent service operation feasible. Supporting facility: According to service management book the definition of supporting facility implies that any physical resources that must be in place before a service can be offered is called supporting facility. Location: The shop was built in suburb in the countryside. ccording to researchers,the building is not centerally and convinently located for all of the customers, however a daily shuttle service which is only two or three times a day is considered,sincle no alternate transportation is presently available. Village Volvo is based in a new butler building (prefabricated metal structure) that consist of four work bays, plus the office,storage and waiting room. Interior building: The waiting room is occupied with a television set,comfortable chairs,coffe,a soft-drink vendegin machine,magazines and the local newspaper.

This facility is used almost exculsivly by the clients who come during th “drop-in”times. Supporting Equipment: It was not mentioned in the case. Facilitating goods: The material purchased or consumed by the buyer, or the items provided by the customer. Consistency: With 22years of cooperation with local dealer, they did not only earn great deal of training and experience but they are also known for their best satisfactory service. The owners feel they have designed their operation to provide clients with a special and unique customer care service that is not available and offered at the local dealer.

They consistently maintain the set schedule for the clients who need a quick routine service, such as tunes-up and oil changes for the diagnosis and repair of specific problem. In general their consistency can be defined as their tremendous care of customer’s exclusive commands and requirements. Quantity: It is not stated in the given case. But according to my own personal view I guess the quantity depends to the customer’s requirement. In other words, in can be unlimited as well depending on the needs. Information:

It is Operation data or information that is provided by the customer to enable proficient and customized service. Accurate: One source of information in here is the information regarding the problems of a vehicle that is provided by the customers and is discussed with the mechanic who will be working on the vehicle. The customer care vehicle dossier (CCVD) is another source of information: the CCVD is a continuing file on each vehicle village Volvo services. This file helps the mechanic diagnose problems as well as provide a expedient record if a vehicle is returned for warranty service on an earlier repair.

After the mechanic has made preminlry diagnoses ,the service manager gives the vehicle owner an estimated cost and the approximate time when the repair is completed if no unexpected problem raise. company policy state that the owner will be consulted before any work other than the agreed-on job is done. Timely: The owners are considering use of CCVD as a way of reminding customers that routine maintenance procedures may be due. Explicit services: The benefits that are readily observable by the sense and that consist of the essential or intrinsic features of the service.

Training of service personnel: 22 years of experience and training with local Volvo dealer They have earned respected reputation and customer satisfaction Independent service operation Comprehensiveness: One of the explicit services provided by Village Volvo is a smooth running vehicle after tune-up, test drives are done after repair to ensure that vehicles are running as expected. Another explicit service is clean cars after the repair is done. Village Volvo takes care to keep the car clean throughout the repair process; also the insides of the car are vacuumed as courtesy to their customers.

After the repair is finished, the vehicle is taken for a short test drive. Then is parked, ready for pickup. Availability is also another explicit service of Village Volvo. They set aside specific times each weeks for clients to drive in for quick routine services ( 3 to 5 pm Wednesday and 8 to 10 am Thursday). Village Volvo also see to it that mechanics do not do any repairs between 7 to 8 am, and 5 to 6 pm as these are heavy customer contact hours. They believe it is just important to discuss with the client the repair that have been done as it to discuss what problem exist before that work is done. Implicit services:

Attitude of Service: Include good attitude of mechanic, the comforts of the waiting area, and the convenience of the services offered. Mechanics take time to discuss problems with their clients; they even take a short test drive with the customer to be certain that both understand the area of concern. After the mechanic has made preliminary diagnoses, the service manager gives the vehicle owner an estimated cost and the approximate time when the repair is completed if no unexpected problems arise. Company policy state that the owner will be consulted before any work other than the agreed-on job is done.

It is service manager’s responsibility to be sure the customer understands the preliminary diagnosis, to advise the customer of any unexpected problems and costs, and to notify the customer when the vehicle is ready for pickup. The owners have developed a network of other service providers who assist in recycling used parts and waste products and to whom they can refer clients for work that is not part of village Volvo‘s services. The owners are also considering the possibility of offering a minicourse one Saturday morning each month to teach clients what they can do to attain their 200000-mile Volvo medals. -How are the distinctive characteristic of a service firm illustrated by village Volvo? ? Customer Participation in the Service Process: attention to facility design but opportunities for co-production ? Simultaneity: opportunities for personal selling, interaction creates customer perceptions of quality ? Perishability: cannot inventory, opportunity loss of idle capacity, need to match supply with demand ? Intangibility: services are ideas and concepts;prouducts are things. therefore,it follows that service innovations are not patentable. reative advertising, no patent protection, importance of reputation. the intangible nature of services also presents a problem for customers. when buying a product the customer see it. test its performance before purchase. for a service however is differet. the customer must rely on the reputation of the service firm. ? Heterogeneity: customer participation in delivery process results in variability Village Volvo’s Distinctive Service Characteristics ? Intangibility ? Perishability ? Heterogeneity ? Simultaneity ? Customer Participation in the Service Process

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