Explain differentiation approaches for services

Question

What will be an ideal response?

Answer 1

Reliability: One way to differentiate services is by providing exceptional levels of reliability. Indeed, reliability is the
number one determinant of service quality. Service reliability is defined as the ability to perform the promised
service dependably and accurately. This type of differentiation approach works well for critical services, where
customers will experience distress if the service is not executed correctly.
Responsiveness: A second way to differentiate services is by high responsiveness to customer needs.
Responsiveness is defined as the willingness to help customers and provide prompt service. This type of
differentiation approach works well for process-driven services, such as dining services at restaurants and order
fulfillment, where customers must endure long waits if the service provider is not responsive to their needs.
Assurance: A third way to differentiate services is by providing customers with assurance that the organization can
provide quality service. Assurance is defined as the knowledge and courtesy of employees, and their ability to
convey trust and confidence. Assurance is important for all services, but is especially applicable for medical
procedures (patients want to be sure their doctor is knowledgeable and conveys trust and confidence) and luxury
services, such as high-end hotels.
Empathy: A fourth way to differentiate services is by showing empathy to customers, that is, to "put yourself in
their shoes." Empathy is defined as the degree of caring and individual attention provided to customers. This type
of differentiation approach works well for services that deal with customers in a caring fashion, such as health-care
procedures, as well as services that give customers a high degree of individual attention, such as financial
organizations specializing in high net worth individuals.
Tangibles: A fifth way to differentiate services is by using tangible elements to denote quality of service. Tangibles
are defined as the appearance of physical facilities, equipment, and personnel. Service marketers sometimes refer to
this approach as "making the intangible tangible." This type of differentiation works for services with some type of
physical presence, such as law offices (with luxurious surroundings), hospitals (with attentive doctors), and banks
(with impressive safes).