DESIGNING SERVICE OFFERING in the E-MARKETING ERA: a CASE STUDY of OLA CABS Neelam Kalla*, Hemaprabha Purohit**
Article can be accessed online at http://www.publishingindia.com DESIGNING SERVICE OFFERING IN THE E-MARKETING ERA: A CASE STUDY OF OLA CABS Neelam Kalla*, Hemaprabha Purohit**
Abstract: While service aspects have been a significant issue in the academic literature since years, the growth of ICT has stimulated a growing interest from wide-ranging experts and scholars. We present the case of Olacabs, the online car aggregator company of India; discussing how it has designed its service offering. Making an allowance for e-marketing, it has been able to establish a good connect with its target market by means of a well-designed service offering. The purpose of the paper is not to develop a hypothesis and test it rather develop an understanding of service offering ‘the Ola’s way’. A model has been proposed in the paper on basis of the case analysis of the company. The model portrays the service offering of an e-service company and the way it designs the service elements, where instances from the marketing moves of Ola have been cited to support the framework. Thus, the paper contributes towards the development of a conceptual framework for gaining insights on development of a service offering for an enhanced service quality in the e-marketing era. Keywords: Service Offering, e-Marketing, e-Service, e-Business, Online Marketing
INTRODUCTION drivers and customers (reviews), journals, books, websites, newspapers, social networking sites etc. The mounting commercial significance of e-services being accessed via internet/mobile phones has generated a need to LITERATURE REVIEW develop better understanding of various aspects of e-services in order to satisfy consumers and build e-loyalty. The Parsuraman and Grewal (2000) suggested that research should traditional models of service offering and service quality be undertaken on considering changes in definitions and seem to be inadequate for meeting the varied demands of the relative importance of the five dimensions of SERVQUAL e-marketplaces. (Parasuraman, Zeithaml, & Berry, 1988) when customers The purpose of this paper is to contribute towards the conceptual interact with technology and not the service personnel. framework of designing a service offering to deliver enhanced Szymanski and Hise (2000) were of the view that user service quality in the e-market space. Designing a service interface features affect service quality perception and offering is of fundamental importance as it plays a crucial role satisfaction. in determining the service quality which is ultimately results in enhanced customer satisfaction and loyalty (Taylor & Baker, Nevertheless there has been growing concern for the 1994; Cronin, Brady & Hult, 2000; Caruana, 2002). dilemma that online platforms stimulate regarding customer engagement. Reichheld and Schefter (2000) are of the view Through the analysis of the case of an online transportation that lesser is known regarding the consumer perceptions, business, a better understanding in the area has been how they evaluate the electronically offered services and attempted upon. A service model has been proposed and the loyalty they attach. They also point out that retention of used to discuss the case of Olacabs, the online car aggregator e-customers can be accomplished only when superior service company as per the data studied. quality is provided and not merely by the technology alone. METHODOLOGY There has been a common view that marketing through web based services are deprived of the ‘cognitive lock-in’ that The paper is a research based case study. Data have been rises from physical marketplaces, thus resulting into lesser collected from primary and secondary sources including Ola engagement since that process is a significant element of engagement (Murray & Haubl, 2002).
* Assistant Professor, Department of Management Studies, Jai Narain University, Jodhpur, Rajasthan, India. Email: [email protected] ** Junior Research Fellow, Department of Management Studies, Jai Narain University, Jodhpur, Rajasthan, India. Email: [email protected] 2 International Journal on Customer Relations Volume 5 Issue 1 March 2017
Mollen and Wilson (2010) referred engagement as the ‘holy grail’ of online marketing. They proposed a conceptual The Service Concept framework clarifying the relationship of engagement with interactivity, flow, telepresence and consumer’s attitudinal and behavioural responses. They pointed out that ‘telepresence’ may not automatically make engagement occur. No matter how interesting the website experience is if it does not come across as relevant or useful to the consumer it shall not be able to evoke any cognitive and affective commitment.
Core Services Van Riel, Liljander, and Jurriens (2001) conducted a study on three service components; the core service, supplementary
service and user interface, and found that satisfaction with each of the component affects consumer’s overall AccesAccessibility & Relevant Interaction Differentiation satisfaction. Moreover, added value of supplementary Facilitating Supporting services can be an important driver for continued usage of Services Services those e-services.
CASE STUDY Customer Participation & Involvement
The transportation services have come a way ahead of what it was seen before. In the milieu, several modes of travel have evolved and the market has seen different players moving in and out of the field. Amidst the scenario, Olacabs emerged
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