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Village Volvo

0 Founders: 2 former Volvo authorized dealer


mechanics
0 Differentiators:
0 Quality repair service on out-of-warrantee Volvos
at a reasonable price
0 Custom Car care service.
0 Facility: Butler building with 4 work bays, and
office and customer waiting area, storage room.
0 Well equipped waiting room (television,
comfortable chairs, coffee, soft drink vending
machine, reading material

Village Volvo
0 Types of service:
0 2 Fixed slots each week for quick routine
services.
0 Appointments for diagnose and repair of specific
problems
0 Service process:
0 Customer interacts with service manager
0 Diagnosis -> Estimated cost
0 Owner to be consulted before any unexpected
work to be done.
0 Worn out parts kept separately for inspection
0 High focus on cleanliness
Village Volvo
0 Custom Care Vehicle Dossier (CCVD)
0 Maintains warranty records of services
0 Other problems that might need attention in
future
0 Value addition:
0 Recycling of parts and waste products
0 Network of other vendors and service
providers
0 7 to 8 AM & 5 to 6 PM: customer contact
hours


Village Volvo
0 Under Consideration:
0 Shuttle service is being considered
0 Considering to offer a minicourse to help
customers to attain their 200000 miles
Volvo Medals
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Village Volvo’s Service
Package
•Building with 4 work bays, Office, Storage Room
Supporting Facility
•Waiting Area – Television set, chairs , vending
machine, magazines, local newspaper
•Repair tools and equipment

Facilitating Goods •Auto parts, Engine Fluids, Coolant

•CCVD – History record on each vehicle serviced


Infor mation •Discussion with Mechanics & Service Manager
•Scheduled Appointments

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Village Volvo’s Service
Package Contd…

Explicit Service
•Smooth running automobile post service
•Clean car

Assurance that repair done by reputed mechanics


Information at each step to customer
Implicit Service
•Information on unexpected problem and cost
•Replaced parts put in a box (assurance)
•Warranty on service
•Comfortable of waiting room
•Quality of discussion– making the customer
understand the preliminary diagnosis and the
final repair outcome

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Characteristics of a Service
Firm
Interaction with mechanics and service manager and test drive
Customer Participation
- Facilitate diagnosis, timely feedback, cost estimation

Simultaneity..... Service consumed at the same time it is produced

..... Bay area capacity, drop-in time,


Perishability

..... Repaired parts are tangible (product)


Intangibility
Automobile repair service is intangible

Heterogeneity
..... Different vehicles, Different personnel – Customized Approach

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Characteristics of a Service
Firm – Nature of the service
Act Direct recipient of the service
People Things

Tangible
Nature of Service Act

actions HOSPITALITY (Waiting area) VEHICLE REPAIR

Intangible
actions INFORMATION & DISCUSSION
Relationship with Customers
Type of relationship between organization and its customer
Membership relation No formal relationship
Nature of Service delivery

Continuous

CCVD INFORMATION
Discrete DATABASE
Transaction REMINDER
POSTCARD
2,00,000 MILES
MEDAL
Customization & Judgment in
Service
Extent to which service characteristics are
Extent to which customer contact personnel exercise

customized
Judgement in meeting individual customer needs

High Low

CUSTOMIZED REPAIR
High INTERACTION WITH SERVICE

MANAGER

Low
Nature of Demand and Supply
Extent of demand fluctuations over time
Wide Narrow
Extent to which supply is constrained

Peak demand
Can usually be REPAIR WORKS ROUTINE MAINTENANCE
Met without
Major delay

Peak demand
usually exceeds
capacity
Method of Service Delivery
Availability of service outlet
Single site Multiple site
Customer and service organisation
Nature of interaction between

Customer travels
To service firm VILLAGE VOLVO

Service provider
Travels to
customer

Transaction is
At arm’s length
back office operations (as a
factory)
0 Routine Maintenance
0 ‘line flow’
0 Standardized services
0 Repair Work
0 Creation of departments/allocation of work
bays for specific maintenance works
(Engine, Transmission, electronics)
0 Introduction of job sheets for fault registering
ease.
0 Standardize processes and Mechanics should
be trained to follow the standard
procedures for common faults and issues.
Differentiating From Volvo
Dealers
0 Reasonable cost
0 High customization of service
0 Pick-up & delivery service
0 Networking with other vendors and dealers
0 Focus on creating a memorable personal
experience for customers
0 Try to assign same service manager to the
same customer each time
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