Service Encounters Important To Industries-Myassignmenthelp.Com

Question: Discuss About The Service Encounters Are Very Important To Service Industries? Answer: Introducation Service encounters are very important to service industries because it gives opportunities to service companies to generate business from customers and earn profits. Service counters can be defined as interactions which allow the sales representatives of the companies to interact with the customers (Lovelock and Patterson 2015). They are interactions between the culture, environment, activity and interface of the company and the customers (figure 1). The backstage attributes or offerings of the companies like organisational culture and services of the company flow to end customers to meet their demands. These flows take place according to their lifestyle, culture and usage of devices like smart phones and tablets. This interaction allows the representatives to suggest or offer products for sale to the customers. These service interactions therefore result in sale of products which generate revenue for the service providing companies like Telstra. The success of service encounters and business generations depend on a variety of factors like body language of the representatives and his communication skills (Yoo and Arnold 2016). The service encounters have serious managerial implications and business generation. Managerial implications are the practical decision making actions by the managers which involves deciding whether to proceed with appointments with customers to lead it towards business generation. Thus success of managerial implications and their proceeds towards business generations are dependent on service encounters (Pantano and Viassone 2014). Service encounters impact business generation and inflow of revenue impacts which in turn impact competitive advantages companies enjoy in the market. The telecommunication market in Australia is worth over 40 billion dollars. The market has powerful multinational telecommunication companies like Telstra, Vodafone and Optus (Businessreviewaustralia.com. 2017). This unforgiving competition has put a lot of pressure on the sales teams of the companies to interact with maximum number of consumers to generate maximum possible volume of business by selling as many products as possible. Their attitude, presentation and knowledge have a very important role to play in the success of these encounters and the managerial implications. This makes service encounters of great significance to the company for business generation and profit (Sundbo, Sundbo and Henten 2015). The first significant role service encounter is that it facilitates interaction between the service provides company and customers. Nguyen et al. (2014) state that service encounters are often planned and directed by companies by training their employees. This is because service encounters allow the companies to meet new clients through their sales representatives. These interactions can happen over the telephone, email or face to face with the consumers. They are very important because they allow the companies to promote their products to the new customers for the first time. It creates demand among the customers about the new products (Knittel, Beurer and Berndt 2016). The sales persons of multinational companies like Telstra can showcase the products of the companies employing them the customers upon encountering with them. The sales representatives can inform the customers about the Telstra products like mobile phones, tablets, data plans and product bundles (Telstrahealth.com. 2 017). The companies manufactures and markets products for personal use, small business use, usage by large enterprises, health related issues and for entertainment purpose. Service encounters enable the sales representatives to meet both business users and personal users(Rauch et al. 2015). This allows them to present ideal products according to the needs of the customers, for example, they can showcase small business plan before a small store owner. Thus, service encounters over here enable Telstra to reach out to new prospective customers which creates possibilities of creating new customers (Dong et al. 2015). The second importance of service encounter is it optimises customer behaviour to facilitate sale of products. Jaakkola and Alexander (2014) state in their work customer engagement is very important for successful business transactions between the customer and the firms. They also said that blurring the differences between the companies and their customers are extremely important for more sales of products. Service encounters engage the customers know the companies and its products better which creates demand (Borgh and Schepers 2014). The sales representatives during a service encounter get the opportunities of optimising these demands and persuading the customers to buy the products (Sengupta, Balaji and Krishnan 2015). The Telstra representatives to speak to the customers directly to know about their lifestyle, needs and so on. This helps them to choose appropriate products for the customers and offer them. Positive feedbacks from the customers results in positive managerial implic ations whereas negative feedbacks from customers results in negative managerial implication. Negative service implication inhibits the customers from availing the service, develops a negative image about the company and result in business losses. The Telstra sales person in case of positive managerial implication can proceed towards selling the products to the customers and accept payments in return in forms of cheque or cash. Thus, this shows that analysis of service implications that service encounters have long term impacts on firms like Telstra than one time revenue generation by sale of products. They help the company to acquire new customers, create relationship and generate continuous business by offering solutions to their ever changing needs (Yurova et al. 2017). Service encounters in other words have become synonymous to market penetration and business growth. The third significance of service encounter is that it helps the service provider firms to fill the gap of their advertisements and achieve deeper market penetration. Services by nature are intangible and advertisements always do not succeed in making the customers perceive their benefits (Mazaheri et al. 2014). These limitations of advertisements result in slow customer demand optimisation towards purchase of services which effects the revenue generation of the service providing companies like Telstra. Sales encounter allow the sales representatives to interact with the customers, get to promote the products of the company and highlight their benefits. The customers are able to perceive the benefits of the products and in turn results in positive managerial implications(Kastalli, Van Looy and Neely 2013). The sales representative of service providing companies like Telstra can draw a comparison between the products of the company in question and its competitors. This helps to create a stronger image of the products of the company (Telstra) which encourages the customer to perceive its superiority over the similar products and the benefits of consuming these products. The managerial implication of these positive effects of the service encounters on the customer is that it leads to sale of products (Pantano and Viasson 2015). Thus, service encounter help the service companies to create and enforce stronger image of the products which complements the promotional powers of the advertisements. Thus service encounters mobilise faster and more permanent customer opinion about the products which result in sale. It must that it results in revenue generation and gaining of competitive advantage in the market (Kumar and Kim 2014). Service encounters are of tremendous importance to the present competitive firms. They help the firms to sell products and generate revenue. Thus, service encounters in other words are crucial for the very sustenance and retention of competitive advantages of the service provider firms. References: Borgh, M. and Schepers, J.J., 2014. Do retailers really profit from ambidextrous managers? The impact of frontline mechanisms on new and existing product selling performance.Journal of Product Innovation Management,31(4), pp.710-727. Businessreviewaustralia.com. (2017). 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