| Introduction | | | | expectations for new customers and for newly |
| This paper is written to analyze the current Service | | | | established service organizations that are trying to build |
| Delivery and Service packaging, then finding the | | | | a particular image. The physical surroundings offer an |
| relevance of warranty in Service. Service in more | | | | organization the opportunity to convey an image in a |
| intangible in nature and consumed immediately as it | | | | way not unlike the way an individual chooses to "dress |
| performed unlike product, which is tangible and used | | | | for success". The packaging role extends to the |
| over a period. Today warranty is granted for any | | | | appearance of contact personnel through their |
| Consumer durables, white goods, and technological | | | | uniforms or dress and other elements of their outward |
| product. This warranty provides more assurance of | | | | appearance. |
| reliability of the product to the consumers; Many times | | | | Interestingly, the same care and resource expenditures |
| consumers are ready to pay even extra amount to | | | | given to package design in product marketing are |
| buy extended warranty. This paper analyzes the | | | | generally not provides for services, even though the |
| matching of warranty model with Services. Analysis is | | | | service package serves a variety of important roles. |
| done in following topics - | | | | These are many exceptions to this generality, |
| Brief on Service Delivery | | | | however smart companies like Starbucks, FedEx, |
| Importance of Service Packaging | | | | Southwest Airlines and Marriott spend a lot of time |
| Warranty design | | | | and money relating their service design to their brand, |
| Conclusion | | | | providing their customers with strong visual metaphors |
| Service Delivery | | | | and "service packaging" that conveys the brand |
| Unlike products service is mostly intangible, where | | | | positioning. |
| tangibility can be introduced using the products. As it is | | | | Southwest Airlines tried to break the image of a "flying |
| intangible consumption happens simultaneously with the | | | | event" as serious event to a casual event. Their crew |
| creation of service. Products are used over the period, | | | | members appear in very informal dress with friendly |
| so warranty gives the assurance towards the usage | | | | appearance to give a "at Home" feel to the customers |
| and consumption where firms make sure that | | | | and this positioning fits with their low cost "no frills" |
| products can be consumed smoothly at least a | | | | strategy. |
| minimum period. This concept is getting applied in | | | | But so far the Service Packaging is done through |
| services too using the Service Quality criteria. Because | | | | physical surroundings, but still there is lot of empty |
| firms become responsible for the delivery ultimately | | | | room to develop the packaging using the employees |
| and consumers hold responsible the immediate | | | | attitude, people presence, like the some extent done |
| delivering firm, firms need to measure the parameters | | | | by the Medical, Legal, Educational and Entertainment |
| for Service Quality, like Tangibility, Reliability, | | | | services, as they are more specific people oriented. |
| Responsiveness, Assurance and Empathy. These | | | | Warranty Design |
| parameters can be measured by the involvement of | | | | Warranty is mostly offered on the product parts, to |
| products in service and the people behavior in delivery | | | | cover the technical faults. It is applied on the materials |
| of service, where last three parameters are | | | | mainly not on the service. In case of the product, any |
| completely dependent on the people. The | | | | part defect may cease the product functionality and |
| management group can decide the product | | | | this can be pinned down easily. In case of service, |
| involvements and that can be guaranteed, but the | | | | since people are more oriented, its difficult to pin down |
| people behavior is not consistent. So the good | | | | the defect cause. Also since the people are involved, |
| companies spend a lot in training on their front-end | | | | the behavioral aspect, group dynamics play the key |
| service people. | | | | role in the service delivery. |
| So the reference becomes very important in service | | | | Also the customers have an expectation on the |
| delivery, consumers want to check with somebody | | | | product life, they want to use the product for a |
| before consumption. They want to check the Service | | | | minimum period, so the defect rectification can meet |
| Quality personally from somebody, so "word-of-mouth" | | | | that expectation. Also this depends on the product |
| has lot of importance in Services. So the organizations | | | | category, the following table shows sample consumer |
| want assure on the Service Quality, so many times | | | | products category, expectations and warranty support |
| they try to take the consumers feedback, engage in | | | | - |
| tele-marketing, where agents can talk to the | | | | Product Category Expectation Warranty availability |
| consumers personally. But many often these doesn't | | | | FMCG Basic need NO |
| reflect the consumer perceptions. Most of the times | | | | Consumer Durables Electro-mechanical functionality |
| consumers are in a hurry to give feedback or listen to | | | | Yes |
| tele-marketing agent. But consumers do the research | | | | White Goods Electro-mechanical functionality Yes |
| before buying any product or service; if there is no | | | | Pharmaceuticals Recovery NO |
| need then there is a buyer too, when they want to | | | | Textiles Basic need NO |
| buy, they start the research, like if somebody has to | | | | Cosmetics Fashion NO |
| travel then only he looks for the air-ticket; nobody | | | | Household items Basic need Partial |
| looks at the deals without the need. | | | | Automobiles Mechanical functionality Yes |
| Reference provides the Assurance and Empathy, so | | | | Computing and Communication devices Electronic |
| the Customer is actually looking for Assurance and | | | | functionality Yes |
| Empathy. Most of the time Organizations rely upon the | | | | From this table it's evident the warranty is offered on |
| front-end employees for the Assurance and Empathy, | | | | the electrical/electronic or mechanical items, in which |
| although in final delivery its upto the employees, how | | | | case a defect part may cease the operation |
| they perform, but Organizations need to enhance the | | | | completely. |
| Customers' perception in increase the Sales. They | | | | Warranty also depends on the price of product; |
| need to look for other ways to enhance this | | | | warranty is no supported low priced product. Warranty |
| perception, most of the time Organization tries to | | | | is in the augmentation layer of the product, for cheaper |
| enhance the perception by increasing the tangibility, but | | | | product it's not affordable. So for the same reason for |
| after certain point tangibility helps very marginally, the | | | | the low priced services, warranty can't be supported |
| last three factors have more importance. Reliability | | | | for the low priced services. |
| factor is also closely associated with tangibility and | | | | Conclusion |
| Brand Image. Today the consumers are more cautious | | | | Service Providers, especially in Financial Services, |
| about the last three factors which dependent on the | | | | Telecom Services, Travel Services or Hotel Service, |
| Employees' behavior. | | | | have to start thinking about warranty, as competition |
| Service Packaging | | | | will be cut throat. Today if your telecom call fails or get |
| Similar to a tangible product's package, the service also | | | | any problem in bank account because of mistake at |
| wrapped within physical evidences to convey an | | | | Service Provider's side. Warranty in products evolved |
| external image of what is "inside" to consumers. | | | | more through competition. If the car gets problem |
| Product packages are designed to portray a particular | | | | because of some manufacturing defect, the |
| image as well as to evoke a particular sensory or | | | | manufacturer has to take care of that, similarly if the |
| emotional reaction. The physical setting of a service | | | | network has some problem, the Telecom Service |
| does the same thing through interaction of many | | | | provider has to pay a penalty to customer. |
| complex stimuli. This is very much critical in forming | | | | How that warranty will be provided, that Service |
| initial impressions or setting up customer expectations - | | | | providers have to decide and figure out, but this is |
| it is visual metaphor for the intangible service. The | | | | going to happen, as the economies depend on |
| packaging role is particularly important in creating | | | | Services than Manufacturing or Agriculture. |