Henry’s company provides cleaning large-scale cleaning services for hotel chains in his area. Because he is able to create a high volume of orders, he is able to offer a low cost for his services. What service strategy does Henry’s company follow?
Explanation
Answer: C - The standardized service strategy emphasizes large quantities of similar (or standardized) work at a volume discount. In his case, he is providing a large quantity of standard cleaning services for hotels at low rates.
Key Takeaway: When creating a service model, one of the choices is to create a standardized model which provides a basic service at a low rate. With standardized services, the quality of the service is good, but does not vary from customer to customer. Additionally, standardized services do not offer the “frills” that are found in customizable service models. In order to provide the low rate for services, the standardized services offer the same basic package to each customer.
