Does Servitization Vary from Country to Country Depending on Cultural Differences

Service and servitization varies from country to country. Is this because of cultural differences or is it something more fundamental.


Sam Klaidman, Founder and Principal Advisor, Middlesex Consulting started the thought process by highlighting the impoprtance of service in the US, “One of which is the OEM name is on the product, they sold the product, they have a commitment to support it. And in America, at least, we have an expression that customers want one throat to choke. And, and if they can’t get that, they certainly don’t want to be required to shop around when they have a problem and need service and support. They just want to know who’s going to do it, who’s going to be efficient and effective, that cost in line with what the OEM has, and just get my problem solved, my problem will leave me alone. And so unless the OEM has a tight partnership with the third party organisation, the customers are not going to be satisfied, at least here in America.”


Rajat Kakar, Managing Director, AEP Holding agreed and being an American based in Europe highlighted his different experiences, “I agree there is a cultural issue here also. So in the US and some of the other cultures, especially in the Asian cultures, you are in a situation where customers always right. And then you come to Germany, and suddenly, you know, let’s say you have, you go to a restaurant or something like that. And then it just happens to be the Break Time for the for the waiter or waitress, and in the middle of the service, they will take the break. Different cultures have a different understanding of service.”


Chris Hird, Editor, Field Service News added, “From my experience service certainly varies from country and with different cultures. I believe this lies with contracts in place with the service provider. In places like the US and many Asian cultures a far larger portion of a service providers income relies on the tip system where in places such as Europe, UK and Australia the major percentage of an individuals income is salary based. So there is less incentive and drive to provide immaculate service.”


There is little doubt that each country strives to deliver a great service, some countries more successfully than others but this may be due to underlying cultural and incentive based contractual arrangements from country to country.


All members of the Field Service Think Tanks are speaking from their own personal opinions which are not necessarily reflective of the organisations they work for. 

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