A company who provides service alone finds difficulties to remain in its customers' minds since satisfaction happened in a specific time and moment. It is unlike an actual product which clients are pleased by the particular product or brand everytime when using it.
Service design for luxury industries consists of four main characteristics which are; lack of ownership, intangibility, inseparability and perishability. I would describe more about each characteristics below:-
a) Lack of Ownership: Clients deserve a service for a particular time but not forever.
b) Intangibility: The service cannot be physically touched, but the client'd rather be fulfilled with intangible satisfaction.
c) Inseparability: The service cannot be separated from the service provider because service depends on the quality of one's serving to another.
d) Perishability: A service only lasts for a specific time and is difficult to restore at a later time. "It refers to the fact that services cannot be produced and stockpiled before consumption: they exist only at the time of their production." (www.businessdictionary.com)
For example, when you go to luxury fish spa, you will be served with convenience and relaxation (intangibility) for a specific time that you pay for, let say 30-60 minutes each time (lack of ownership). You will be satisfied and enjoy your time there but in a specific time only (perishability). And you cannot have this moment again if you do not return to this place (inseparability).
Therefore, to produce an extravaganza and extraordinary service in luxury industries needs to consider marketing mix or 8 P's consisting of product elements, place and time, price and other outlays, promotion and education, physical environment, processes, people, productivity and quality. We were assigned to do in-class assignment; hence, the explanation through the example of our work will be provided as following:-
Our team selected to create 8 P's in luxury club in London. 'Movida' is the brand we picked. According to our class's lecture and tip on interview website, it states that product is a specification of the actual good or service and it relates directly to the customers. Therefore, we described that special cocktail, luxury alcohol and famous DJs with good music should be taken into account. With regards to place & time, there is a specific time for clubbing from 10.30 pm until 3 am. More importantly, Movida is located in the most famous street for wealthies in London, Oxford circus. In addition to price, since it is positioned itself as high-end club, there will be entrance fee for at least 20 GBP for non-members and most of alcohol menu price is rated as a premium price in order to represent the quality of the interior design of the place and products (alcohol & DJs) provided. It would be weird if a luxury club sells a cheap cocktail, isn't it? Everything should be able to compliment each other. Moving on to promotion & education, Movida is familiar to clubbers through peers but not a hard sales advertising in TV or radio except the special occasions. For the process, we have argued a lot about this but what we were agree on is that they divided workforce and separate work function very well. For instance, there are guards serving security in front of and inside the club, the receptionist who process guests list and check whether they are there or not. Bartender who serve drinks.
Business Dictionary. Available at: http://www.businessdictionary.com(accessed/ 23 February 2011)
8 P's of Marketing. Available at: www.tiponinterview.com(Accessed 23 February 2011)
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