Question

Chapter 21 Lead Question Discussion Post Many service industries link labor rate and time (quantity) standards with their processes. One example is the standard time to board an aircraft. The reason time plays such an important role in the service industry is that it is viewed as a competitive advantage: best service in the shortest amount of time. Although the labor rate component is difficult to observe, the time component of a service delivery standard is often readily apparent – for example, “Lunch will be served in less than five minutes, or its free.” Required: Select two service industries for your analysis. Identify and describe at least three time elements each industry uses to create a competitive advantage. Who should be held accountable if the time standard is not achieved?

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Answer 1

Advertising Industry:

1. Capacity to deliver more facts in less time
2. Time necessary to deliver a product after customer interest
3. Pictorial advertising

Insurance Industry:

1. 24 X 7 Availability
2. Entitlement of handling time
3. Solving customer enquiries

Explanation:

Advertising Industry:

1. Ability to provide more information in less time: Two companies that are working within the same industry will attempt to use numerous methods so that they can have a judicious advantage over the other company. The company that is able to deliver more and more beneficial and attractive information in less time than the other company will certainly have a competitive edge over the other companies since people do not have a lot of free time to watch a long advertisement.
2. The time required to deliver a product after the customer's interest: After the advertisement has been seen by the possible clienteles of the company, they try to order the products presented by the company through a call or through the company's website as well. Some companies supply the products within 1-2 days while others may take 5-7 days to deliver the product, and this can offer a major competitive benefit of one company to another company.
3. Use of advertising sources that have a greater reach: The company should be able to advertise its product to the target market within the smallest time, and the advertisement should be able to deliver the useful information within minimum time as well. Therefore, the company can use visual aids for advertising purposes because they have a better range and the use of internet has made it possible.

The person responsible if the time standard is not met:

If the time elements that are stated above in case of the advertising industry are not met properly, the main share of accountability will fall on the head of the advertisement department because he/she is leading the advertising department for the company.

Insurance Industry:

1. 24 X 7 Availability: The company that is working in the insurance industry should be available to the customers 24 hours a day, and customers should be able to contact the anticipated information and can also procure the policy without personally going to the insurance company's office. The company should offer this service to the clients either through their own website or through a common website. This procedure will provide a competitive advantage for a company over another company.
2. Claim processing time: The claim processing time refers to the time it needs a company to reimburse or to pay for the insured's losses. The procedure can be ready mechanized where the documents can be uploaded online and the clearance takes place. The claim dealing out time plays the most significant role in the insurance industry, and the customers are more fascinated toward the companies that need less settlement time. This component will provide the greatest competitive advantage over other companies.
3. Resolving customer queries: The time necessary by a company plays an important role in retaining the customers and attracting other customers as well, and the company who is able to resolve and help its customers within minimum time will have an competitive advantage over other companies in the same industry.

The person responsible if the time standard is not met:

Every insurance company will have their own rules and regulation along with the common guidelines for the insurance industry, and if the above-mentioned elements are not met, the company will be held responsible, because the rules and regulations are made by the management of the company and no sole person can be held responsible in this case.