E-Service Quality , its Issues and Measures

Definition of E-Service Quality

E-service quality is the extent to which e-commerce providers effectively and efficiently manage customer interactions involving searching, shopping, purchasing and order fulfillment.
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Classification of e-services

There are 5 categories

B2C (Business to Consumer): This category includes a business organization providing service directly to an end customer, with an intention of making profit.

C2C

(Consumer

to

Consumer):This

category includes business models where consumers provide service directly to another peer consumer with or without an intention of profit. This model inevitably involves a third party which acts as a mediator, providing link information to peer consumers, initiating contacts, and mediating any financial or non financial transactions.
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B2B (Business to Business) This category includes two or more businesses which provide service to another peer organization with an intention of making profit. These interactions represent intermediate links that are usually part of a larger B2C service provided by a business organization.
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G2C (Government to Citizens)

This category represents services provided by
federal, state or any other governmental

agencies to citizens, usually with non-profit

intentions.

G2B (Government to Business)

This category represents services provided by

federal, state or any other governmental

agencies to business organizations, usually with

nonprofit intentions.

Components of E-services
The service provider.
The channels of service delivery (i.e.,

technology) . The service receiver.

Channels of E-services
The Internet

Telephone
Call center

Public kiosk
Mobile phone

Television
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How to Improve E-Service Quality

Research has proposed that 5 components be considered in delivering e-service quality: The core service Facilitating services Supporting services Complementary services The user interface (how the customer accesses services)
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Definitions and Functions of E-Service Quality Components

Core services: These are designed to meet the primary
demand needs of specific target markets.

Facilitating services: make it possible to use the core

service and, without them, the core service collapses.

Support services: Dont facilitate using the core

services but rather add value to them; support services might include the availability of useful links or virtual book clubs.

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Definitions and Functions of Components (cont.)

Complementary services are services that accompany the core service and support their acquisition and use or disposition. The user interface is a means of communication between the e-service marketer and the potential customer.

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Improving Credibility with Online Merchants

Disclose the physical location where products are produced, including an address, telephone number, and e-mail address Clearly distinguish news and information from advertising Disclose financial relations, particularly when the relationships affect the cost to a consumer Any posted incorrect information should be immediately corrected Privacy policies should be easy to find and clearly and simply stated
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E-service benefits
Lu (2001) identifies a number of benefits for e-services, some of these are: Accessing a greater customer base Lowering of entry barrier to new markets and cost of acquiring new customers Alternative communication channel to customers Increasing services to customers
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E-services Benefits
Enhancing perceived company image Gaining competitive advantages Potential for increasing customer knowledge

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2010
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E-MODELS
Buy-side models

Sell-side models

Organization

Suppliers Intermediaries Competitors Customers

Different persepectives for model changes in an organizations marketplace

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E-CUSTOMERS
Responding to Customer

Once you know Why people go online :

1. Find out why people buy and what are their aspirations and expectations 2. Reflect the reasons, aspirations and expectations in your communications 3. Of course you have to be able to deliver the promised benefits 4. Otherwise repeat sales die
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E-CUSTOMERS
Responding to customer

You have to consider the 6 Cs of customer to help define the OVP (online value proposition) 1. 2. 3. 4. 5. 6. Content Customisation Community Convenience Choice Cost reduction
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E-CUSTOMERS
Guideline to achieve reassurance, gain trust and build loyalty :

1. Provide clear and effective statements 2. Follow privacy and consumer protection guidelines in all local markets 3. Make security of customer data a priority 4. Present independent site certification 5. Emphasize the excellence of service quality in all communications 6. Use content of the site to reassure the customer 7. Leading-edge design
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E-Service and Customer Satisfaction

Service providers have come to realize that the Internet presents great opportunities as well as challenges in serving customer needs

The new e-consumer is more informed and expects more from their service provider traditional or online
Companies doing business online need to see the link between customer service and repeat visits
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Price Knowledge and Customer Expectations

Price knowledge refers to the ability of online shoppers

to determine shipping , comparison, and total prices Online consumers are pretty clear about what they expect online A recent study conducted by Mercer Management Consulting confirms the importance of information and convenience and why consumers value using the Internet
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Challenges to E-services in the Developing World

There are some challenges in e-service, as Sheth & Sharma (2007) identify, are:

Low penetration of ICT especially in the developing countries;

Fraud on the internet space which is estimated around 2.8billion USD Privacy due the emergence of various types of spyware and security holes, and Intrusive characteristics of the service (e.g. mobile phones based) as customers may not like to be contacted with the service providers at any time and at any place.
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E-Service Quality
The challenge for e-service marketers is to determine the relative performance on each of the service quality attributes and devise strategies to improve in these areas
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Social, Cultural and Ethical Implications of E-services

Impacts on Individuals Rights and Privacy
Impact on Jobs and Workplaces

Potential Impacts on Society

Impact on Social Interaction

Information Security

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Case Study Amazon.com

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Amazon Overview
Founded in 1994; Started selling books online and now operate Web sites that offer various products and services, which include: music, DVDs, videos, electronics, camera and photography, clothing apparel, shoes, etc. Features include: one-click shopping, customer review and e-mail order verification. It has six global websites to serve domestic customers in the US, the UK, Germany, France, Japan and Canada 29

Goals & Objectives

Amazon seek to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavor to offer customers the lowest possible prices. 30

Proposed Vision
To continue expanding in all countries with Internet access, while maximizing total commitment in becoming the number one company in Internet transactions.

Proposed Mission
To continue to offer quality products and services

using the best technology available and at a

reasonable price. Amazon also want to expand

geographically,

increasing

the

number

of

customers and to keep improving Their main

competitive advantage - infrastructure.

SITE DESIGN - Introduction

WEB SITE DESIGN =
Function + Content + Form + Organization + Interaction

How Amazons web site help customers ? Help them buy something they need Help them in finding information Help them to save money Help them to talk to the organization Help them to enjoy a better web experience
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SITE DESIGN
The 5 Ss
SELL : Growing sales can be achieved through effectively communicating Amazon proposition and through making e-commerce facilities straightforward
SERVE : Amazon add value through designing easy-to-use interactive services that help customers in their work. SPEAK : Amazon use the site to converse with and get closer to customers by providing tailored content and designing interactive facilities to create a dialogue
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SITE DESIGN
The 5 Ss
SAVE : Costs are saved through delivering online content and services that may have previously been achieved through print and post or face-to-face service and sales transactions.
SIZZLE : An excellent site design helps build the brand and reinforces the brand values through the type of content, interactivities and overall style, tone or feel.

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SITE DESIGN
DESIGN PRIORITIES
Customer acquisition - acquisition means winning customers, converting prospects into customers on site Customer retention - retention means keeping customers, ensuring they repeat buy. Timely, personalized and relevant e-mails and offers can bring them back to you via the site
Customer extension - extension means extending the share of wallet. Selling other relevant products and 36 services to the same customer

SITE DESIGN
KEY VARIABLES

High quality content

Ease of use Quick to download

Updated frequently
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SITE DESIGN
AIDA
INTEREST : the site must provide more detailed to gain interest
DESIRE : choose buy fulfilment

ATTENTION : the site must grab attention when th visitor actually arrives

ACTION : action should be clear and easy to use

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Extended product
Endorsements Awards Customer lists Customer comments Warranties Guarantees Money back offers

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Online value proposition

Should be different to the offline proposition Should exploit some of the unique advantages of being online which include:
Immediacy Interactivity Depth of contents Faster to buy online More convenient Easier As well as cheaper to buy online Better and new experiences online

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Price
Pricing is under pressure Price transparency is another factor As prices are published on the web, buyer comparison of price is more rapid than ever before

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 Prices are complex, so that options for the price package include :
Basic prices Discounts Add-on and extra products and services Guarantees and warranties Refund policies Order cancellation terms

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Place
Place involves the place of purchase, distribution and in some cases, consumption.
Other kinds of products can also been sold online like perishable goods. Customers like the increased convenience and reduced cost of ordering online and often using delivery partners for offline fulfilment.

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Place

Supplier

Intermediary

Customer

Traditional purchase at supplier web site

Bids and auctions through neutral intermediary

Transactions at customer site

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TOOLS

Communication
Online executions
Interactive ads, pay per click keyword advertising Virtual sales staff, affiliate marketing, web rings, link Incentives, rewards, online loyalty schemes Sponsoring an online event, site or service Opt-in e-mail and web response Real packaging is displayed online Viral, affiliate marketing, e-mail a friend, web rings, links 45

Promotional mix
Advertising Selling

Sales promotion Sponsorship Direct mail Packaging Word-of-mouth

Online buying process

REWARDS
Loyalty schemes Competitions Newsletters Reminder service Extranet

AWARENESS
Featured products On-site banner ads Opt-in e-mail

SEARCH modes
Keyword Product code Browse

SUPPORT
E-mail notification FAQs Order history Knowledge base Diagostics tools

EVALUATION
PURCHASE
Personalized Re-buys 1-click

DECISION
Security guarantee Service promise Discounts Store locator Call to action

Online products guides Product configurations Detailed infosheets Product picture Price, availability 46

One to many
Trade via intermediary web site

Trade via suppliers web site

Trade via buyers web site

Trade via intermediary web site

Trade via intermediary web site

Many to many

Many to one

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Some to many

Many to some

E-MODELS of Amazon- Buying models

SEE (online seminars and webcasts explaining the benefits of the product) TRY (online demonstrations of the suite) BUY (online purchase)
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Customer information processing

EXPOSURE (is the message there long enough for a customer ?) ATTENTION (what grabs the attention - movement, colour, ?) COMPREHENSION and PERCEPTION (how does the customer interpret the stimulus ?) YIELDING and ACCEPTANCE (is the information accepted by the customer ?) RETENTION (how well can the customer recall their experience?)

E-MODELS -

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External opportunities
Positive changes in the business model of the book market Internet taxes prohibited by the Internet Tax Freedom Act (1998) and its extensions (2001 and 2003) Growth of internet users in the next five years, predominantly in the international market E-commerce expansion in Asia and the Pacific Several product categories with high penetration of retail on-line sales.

External Threats
eBay, Barnes & Nobles, and Wal-Mart Possible rejection to on-line sale in international markets if new taxes (Value Added taxes: VAT) in products are levied Population segment not targeted to on-line sales due to their lack of internet access Weak economic performance of Germany and France in the last year Competition will increase due to the low barriers to entry in the market: offline companies are coming online

Internal strengths
Strong brand name * Large product selection * Pricing policy with discounts - High quality management team - Customer service support (Highest score in 2002 American Customer Satisfaction Index) - Developed and upgraded technology: software and hardware - Pioneer in the syndicate selling on the Web - Two segments: B2C and B2B e-commerce.

WEAKNESSES: Lack of Spanish website version (Latino and Hispanic Americans are the fastest-growing online ethnic group) Risk of introduction of wrong new categories which could damage companys brand Companys offered free online shipping might affect future financial outcome Certain products (high volume/weight) have high shipping costs which could confront with local offline retailers

Conclusion
It seems that E-services may be an evolutionary step in designing distributed applications, however, they are some issues that require careful consideration. There are a lot of hurdles and limitations that must be overcome in order for mass

adoption to occur. It is important that all initiatives cooperate in

the development of universally accepted e-services standards, because one of the key attributes of Internet standards is that they focus on protocols and not on implementations. Otherwise, competing standards from industry heavyweights could prevent

widespread adoption of eservices

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