SU 9: A Perspective on Service Branding

Question 1

• Explain the different categories of a service brand

Answer 1

• Equipment-based service: the operation and automation of services through the use of machinery and equipment. There is less contact with customers as equipment plays a major role in the delivery of the service.
• People-based service: the delivery of services to customers through internal employees of an organisation. An increased customer interaction is evident as employees play a major role in delivery of the service.

Question 2

Describe service branding

Answer 2

It is a competitive approach for differentiating and positioning service offerings in order to build economic value for both the customer and the organisation.

Question 3

What are the characteristics of service branding

Answer 3

> Service branding usually includes branding elements such as symbols, logo, design, or a combination of these (identify the degree to which a service brand gains a competitive advantage)

> Service branding exists to enhance the probability of achieving long-term profits and improved market performance by enabling organisations to be more oriented towards addressing the needs of current and potential customers.

> Service branding is only considered an asset if it delivers a sustained competitive advantage (high-value services vs low-value services)

Question 4

• Service brands are unique and can be characterised into what five principles

Answer 4

• Intangibility: This refers to the notion that a service cannot be touched once purchased by consumers
• Perishability: Relates to the fact that a service cannot be stored for future consumption or usage.
• Variability: Based on the perspective that the experience of a service cannot be kept the same across all customers due to the presence of the human factor.
• Inseparability: A service is usually produced and consumed at the same time. This implies that the production and consumption of a service cannot be separated
• Non-ownership: The purchase and usage of the service cannot result in ownership of the service.

Question 5

• What are the strategies for building a successful service brand

Answer 5

> Establish a reason for existence - a service brand needs to make customers aware of its reason for existence and how that reason addresses their need specifications.

> Build an emotional connection with customers - service brands exist to create an emotional bond with customers, it involves the creation of feelings of trust and empathy when interacting with and using the services of a particular brand (trust refers to the reliability of the claims made by a service brand in fulfilling the expectations of customers).

Question 6

Name and explain the challenges of service branding

Answer 6

• The presence of a heterogenous and complex service environment makes it difficult to separate one brand from another in terms of their characteristics, benefits and cost implications
• The changing needs of customers force service brands to continuously adapt their organisations’ models to be more customer-centric in order to fulfil their service needs
• A lack of understanding among service providers on the differences between product branding and service branding results in the treatment of service brands as product brands
• Failure to consider service branding as an important component of building a strong competitive advantage inhibits growth and competitiveness among service providers
• Failure to provide a consistent and favourable experience during the service delivery procedure arises

Question 7

What are the ways in which to address the challenges of service branding

Answer 7

• Making a service brand promise: Service brands must make sure that they do not overpromise and under-deliver, which might result in customer dissatisfaction.
• Creating visualisation to invoke experience: Customers often want to experience visual stimulation when using a service brand in order to connect with it on an emotional level. For example, virtual tour of what their different stores look like,
• Establishing trustworthy relationships with customers: Trust is an essential instrument for building customers support and continued usage of your services. For example, loyalty programmes.
• Understanding the needs of customers: It is important for service brands to rise to the occasion by engaging in conversations with customers whenever they visit their service points.