Service Process Design

The three service-product bundles are the tangible service (explicit service), the psychological benefits of the service (implicit service), and the physical goods (facilitating goods). For Tommy Hilfiger, the tangible service would be the clothes, shoes, and accessories that they sell. The implicit service would be the atmosphere of the store along with the customer service provided. The facilitating goods are the registers used by the sales associates for totalling purchases and the fitting rooms used by customers. Tommy Hilfiger operates on the co-routed service matrix because it offers a moderate number of choices to customers, using a moderately standardized service system. For example, customer choices are limited based on what the company makes and sells under its product line. In other words, customers can't demand products that the company doesn't make. Some types of customer contact that Tommy Hilfiger encounters are through a call center which is outsourced. There is a hotline that customers call if they have received a defective item due to manufacturing error. The hotline allows the people on our end to research the problem and promptly replace the item. Tommy Hilfiger uses IBM and Linux for its e-business infrastructure, as the company works to expand its presence among specialty retailers, as well as for its worldwide manufacturing facilities and employees.The company used the IBM technology to create a software called TommyB2B (TommyB2B.com).This portal allows specialty retailers and sales force to view selected core and seasonal apparel products, such as jeans and other basic, available inventory, as well as place, track and ship orders. Tommy Hilfiger does not use self-service; everything is outsourced. The type of service recovery and guarantees that Tommy Hilfigers offers is resolved by the accounts receivable department to obtain funds for chargebacks. For instance, if a company places a specific order through the company and does not receive what was ordered, they have the right to deduct the cost of the items.