Customer Service: Differentiating By Market Segment

Abstract

Most companies establish customer service policies which are then uniformly applied to all customers with the possible exception of providing superior service to the few largest customers. In this article the service provided by the major suppliers in the scientific instrument and supplies industry in Australia is examined. This is contrasted to the service requirements of their customers in toto and by segment. Considerable differences were found between the service provided and the service required. Also service requirements differed significantly between customer segments. Competitive advantage can be obtained by the supplier providing differential service levels by customer segment.

Customer service strategy options: A multiple case study in a B2B setting

“…Quite a substantial number of studies have been conducted in the fast-moving consumer goods industry. Specific business-to-business industries that have been investigated are pump and valve industry (Banting, 1976;Cunningham & Roberts, 1974), chemicals and chemical industry equipment (Gilmour, 1982), office furniture (Sterling & Lambert, 1987), plastic granulate (Lambert & Harrington, 1989), and several industries producing commodities (Kyj & Kyj, 1989). La Londe and Zinser (1976), La Londe et al (1988), and Morris and Davis (1992) compared several business-to-business industries in their studies.…”

Logistic services as a competitive means – segmenting the retail market for softwood lumber

“…Category is representative for ownership and structure (Gilmour 1982). Retailers that are considered as "Private retailers in purchasing co-operatives" seem to have more strict delivery service requirements, at the same time as "Private retailers with no affi liation" seem to place stricter conditions on value-added logistical services than do other retailers.…”

“…The best way to structure the customer base and to gain a sustainable competitive advantage in a market place where the customer base is diversifi ed, is by segmenting and offering accurate service levels (Sharma and Lambert 1994) to each of the different segments (similar concept "Logistically Distinct Business (LDB)", see concept by Fuller et al 1993) since different segments have different service requirements (Gilmour 1982). This could be done for instance by offering well-developed logistical solutions.…”

“…Earlier studies indicate the following segmentation variables; turnover (Rao andWang 1995, Sharma andLambert 1990); category (Gilmour 1982); customer base (Sharma and Lambert 1990); product mix (Sharma and Lambert 1990); product type and uncertainty (Cardozo 1980); product type (Zinzer 1997); strategy (Verhallen et al 1998); structure of purchasing decision (Choffray and Lilien 1978).…”

An evaluation of web site services in liner shipping in Taiwan

“…Collison (1984) examined market segments for marine liner services. From a logistics perspective, Gilmour et al (1995) investigated differences in customer service by market segment in the scientific instrument and supplies industry. Sharma and Lambert (1994) investigated product segmentation in the high technology industry.…”