Service Process Design

Nike’s 3 elements of the service-product bundle.

Tangible (Explicit Service)- Nike provides the customers with a variety of sporting goods and apparel, which can be worn causally or used athletically. The clothes are produced in a wide variety of factories and sold by retailers all over the world.

Psychological (Implicit Service)- The look and feel of Nike’s products. The style type and design that the name brand gives. The personal mindset Nike gives to the customer knowing that they have a high quality product.

Physical (Facilitating Goods)- The actual clothing or equipment worn or used after purchasing the items. The shirts, shoes, hats, sporting goods, pants, and all other accessories Nike produces.

The cell Nike operates in on the service matrix.

Nike would be located right in between Provider- Routed and a Co-Routed company on the service matrix because they operate in the mass production of apparel, but they lean closer to a Co-Routed company because it has many styles to offer including shoes with a customization feature available. Nike also produces all types of sports apparel, golf clubs, t-shirts, hats, and more. Nike focuses on one industry, but provides a flexible direction for all types of customers.

Some types of customer contact Nike encounters and how they respond to it.

Nike is definitely a Low-Contact company because face-to-face interaction is not required. Nike has efficient processing and fairly standardized products. Some problems Nike may encounter would involve inventory and demand levels. They then must re-evaluate the demand of a particular product, and change processes based on the new demands of their customers as a whole. They must also keep a variety of up to date quality products to keep customers coming back.

Does Nike use self-service?

Nike uses self-service though the process of shopping and ordering online. It also provides a way for customers to design and create their own version of a specific pair of shoes. These examples show self-service being used by Nike, but besides these two services the majority of Nike’s business is not self-service.

In the Nike retail store technology is very much so an innovative tool. A computer generated inventory control system is used to find various sizes of merchandise on stock so that the sales associate is able to assist customers quicker. This is so because the shipment boxes of merchandise are scanned before processing, into the system with a bar code reader after being unloaded from trucks.

Nike also uses focus operations to drive sells within the retail store as well as online. Within retail stores there are sometimes additional percentage discounts on certain active wear or footwear to persuade the customer to buy more. Customer service scores are also boosted along with sales when sales associates hand out mesh bags for the customers to store their potential buys while browsing in the store. This is so because the customer then feels acknowledged and it also gives them the ability to pick up more. Special shipping discounts and promotions are also offered online for the customer’s convenience when the customer spends a particular amount or buys a certain item.

The Nike Company supports their employees through their internal service quality. Due to the fact that they value and appreciate their hardworking and productive employees, their company continues to be one of satisfaction and positivity. Through the refreshing and warm work place environment provided, a furnished lounge with many activities to keep employees' breaks well spent, and also comfortable uniforms which are universal for both men and women, Nike keeps the employee satisfied. Nike provided monetary bonuses and awards for the performance job recognition of employees. This helps employees to stay satisfied with their jobs in addition to the company discount that they receive and are able to share with family as well as the employee exclusive stores.

Nike offers the return service policy of 30 day refund or exchange with receipt of unwashed, unworn merchandise if the event that the customer is not satisfied. Items purchased online are also able to be returned online or within store when accompanied by the online transaction receipt. In the event the customer does not possess a receipt and would like to return/exchange an item purchased at a Nike retail store, they can be issued a store credit for the purchase price of the item. Customers can also receive price adjustments within 14 days of receipt date on items purchased if it happens to go on sale when presenting a receipt of purchase at a retail location.