Stakeholder involvement in the new service design process

INTRODUCTION

Much has been written about the accelerating rate of change affecting the financial services industry. Deregulation, followed by increased supervision and control in some areas, multi-sectoral competition, increasing customer expectations, multibanking, radical changes in distribution and technological imperatives, restructuring, redundancies and other cost-cutting initiatives have all been the subject of much discussion and analysis. The customer care initiatives of the 1980s saw a shift in emphasis from transactions to relationship banking, yet many continue to argue that the traditional clearing banks still fail to exhibit a marketing orientation.

Services marketing theory has also evolved, paralleling growth in the sector, constructing models and paradigms to explain and highlight key areas of interest. The emphasis on service quality and its relationship with customer satisfaction has become a central driver in the services marketing literature, not least because of the several studies showing linkages with customer loyalty and, ultimately, profitability. Similarly, product/service design, as a means of ensuring quality, is increasingly being recognised as a source of competitive advantage and improved performance. Although some work has focused specifically on the design of services, it has tended to involve the refinement and development of models of new product development (NPD). Recent research, however, has highlighted the importance of recognising, and emphasising, both the organisational context and the complexity of the service design process.

The case study that follows focuses on the NPD processes of a UK clearing bank. The organisational complexities involved are explored, particularly the constraints imposed by the need to satisfy often conflicting expectations and objectives of multiple stakeholders. The research reported does not aim to be prescriptive at this stage but to provide insights into, and a basis for, the development of a more realistic organisational framework for the service design process.

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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