Services Marketing – Non-Ownership & Service Issues

Question 1

Apply the non-ownership concept to justify why the selected offering is a service rather than a good.

Question 2

From Google Reviews, identify one common service issue (the same issue must be mentioned by at least three different customers). Using the Three Stage Model of Service Consumption, analyse how this issue affects the different consumption stages.

Question 3

Based on your previous analysis, develop ways this service provider can improve.

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The service selected for the purpose of analysis is Grab (Ride hailing in Singapore).

Non-ownership concept

Grab is its service and it is not good because in this platform, there is no ownership of cars within customers. They only make payment for the transportation service they avail on a temporary basis. The main value of this business concept is on access to mobility and there is no ownership of physical products. Once the ride is completed, the customers are required to make the payment and do not have access to tangible assets. This particular business concept properly aligns with non-ownership principle whereby the users are mainly involved in the process of availing benefits in terms of transportation, rather than any goods.

Common service issue and analysis

An analysis of the reviews given by users on Google reviews indicates that the frequent cancellation by driver after the booking is done is a major problem.

Three stage model analysis

The first stage is pre-consumption stage whereby the user can see the drivers that are available for the ride. Any kind of cancellation results in frustration within customers. The second stage is consumption stage, whereby the customer faces delays because of cancellation, and they are required to do the rebooking and it would ultimately lead to longer waiting time. The third stage is post-consumption whereby the results are given in the form of negative reviews, and lower overall trust level.

Improvement strategies

The Improvement can be possible by introducing a penalty system for drivers who perform cancellation, upfront fare Locking System in order to prevent drivers from canceling, priority mechanism algorithm to match users with drivers that are less likely to cancel, and support real-time communication to avoid any kind of delays.

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Assignments based on service marketing requires a different approach compared to marketing of a product. The above analysis of service Marketing in the context of Grab is performed in brief and if you need a detailed explanation, visit our service marketing assignment help service to get professional guidance and support.

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