Service Offering at Electrical Equipment Manufacturers

Lucie Kaňovská

Abstract


Purpose of the article: The aim of the paper is to uncover ways of managing service offering provided by electrical equipment manufactures in the Czech Republic. The segment is extremely important for Czech industry nowadays, especially because of many companies being subcontractors for the car industry and mechanical engineering. The producers of electric equipment comply with the Czech industry classification CZ-NACE 27.
Methodology/methods: The questionnaire in the form of the Likert scale was prepared to gather information about customer services. The respondents were usually directors or managers, e.g. employees with high competencies of knowing customer services in this particular market. The total of 22 companies were included in the survey. Research was focused on the following industries classifications belonging to CZ-NACE 27: CZ-NACE 27, CZ-NACE 271 and CZ-NACE 273. According to Czech Statistical Office the total number of companies belonging to these 3 segments is 136. It means 16,2% companies belonging to CZ-NACE 27 participated in our research. Basic statistical methods were used to analyse the complete database.
Scientific aim: The paper deals with the problem of service offering provided by today’s manufacturers. Global understanding of services that manufacturers really develop, sell, deliver and manage is still limited.
Findings: Managing service offering provided by today‘s manufacturers shows that 1) Manufacturers not offer only tangible products, but also wide range of services and even information and support. 2) New products are not designed only according to company technicians, but also according to their customers. Their products and services are developed, tested and improved according to their needs. 3) Services provide complex customer care from time product selection to its end.
Conclusions: Manufacturers of tangible products need to enlarge their product offering to be able to satisfy customers. Therefore companies often focus on customer services. Adding services to the products to extend the total offering through services are possible ways of acting to eroding product margins. Customer services are able to help to extend life cycles, develop long-term relationship that lock out competitors, increase revenue, etc

Keywords


service offering, customer services, servitization, manufacturers of electrical equipment, Czech Republic.

JEL Classification


M30

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Online: 2015-11-26