Service productization, the process of transforming intangible services into tangible offerings, has gained prominence in various industries, including hospitality and entertainment (Wirtz et. al. 2021). In the nightlife sector, where experiences and ambiance play a crucial role in customer satisfaction, understanding and optimizing service productization strategies are paramount (Harkonen et. al. 2017).
According to Parantainen (2007), service productization involves creating value-added offerings that resonate with customer preferences and enhance the overall service experience. In this context, the present study aims to investigate the dynamics of service productization within a specific nightclub setting, examining the impact of various productization initiatives on business operations and customer perceptions.
Characterized by its dynamic and experiential nature
The nightlife industry, characterized by its dynamic and experiential nature, presents unique challenges and opportunities for service providers. With increasing competition and evolving consumer preferences, nightclubs are under pressure to innovate and differentiate their offerings to remain competitive. (Skinner et. al. 2005). Service productization offers a strategic approach for nightclubs to enhance the perceived value of their services, attract new customers, and foster loyalty among existing clientele. However, despite its potential benefits, the implementation of productization strategies in the nightlife sector requires careful consideration of operational constraints, customer expectations, and industry norms.
![[Alt text: a picture of interiors with billiard tables.]](https://blogit.lab.fi/labfocus/wp-content/uploads/sites/8/2024/05/414_2024_Exploring-service-productization-in-the-nightlife-industry-1024x481.jpg)
Main findings and conclusions
Drawing upon literature on service productization, this research (Tornikoski 2024) employs a case study methodology to explore how the implementation of various productization strategies impacts business performance and customer satisfaction. Through interviews with the CEO of the nightclub and anonymous customer surveys, this study examines the effectiveness of initiatives aimed at enhancing smart bartending tools, ticketing systems, and billiards utilization. The findings shed light on the implications of service productization strategies for business operations and customer experiences in the nightlife sector.
The findings of this study reveal several key insights into the dynamics of service productization in the nightlife industry. Firstly, the implementation of smart bartending tools, including automated drink dispensers and inventory management systems, resulted in improved efficiency, consistency, and cost savings for the nightclub.
Secondly, the introduction of an online ticketing system enhanced customer convenience, reduced wait times, and streamlined the entry process for concert events. However, challenges related to platform usability and technical issues were identified.
Lastly, efforts to enhance billiards utilization through targeted promotions and service packages yielded mixed results, underscoring the need for tailored approaches to meet diverse customer preferences and needs. By understanding the implications of various productization strategies, nightclubs can optimize their service offerings, improve customer experiences, and maintain a competitive edge in the dynamic nightlife landscape. Moving forward, further research is needed to explore additional productization initiatives and their impact on business performance and customer satisfaction in different nightlife contexts. (Tornikoski 2024.)
Authors
Dominika Tornikoski is a student at the LAB University of Applied Sciences in a master’s degree program in International Tourism and Event Management.
Dr. Jukka Sirkiä is a Senior Lecturer and also an RDI Specialist at the LAB University of Applied Sciences
References
Harkonen, J., Tolonen, A. & Haapasalo, H. 2017. Service productisation: Systematising and defining an offering. Journal of Service Management, 28(5), 936-971. Cited 6 May 2024. Available at https://doi:10.1108/josm-09-2016-0263
Parantainen, J. 2007. Tuotteistaminen. Rakenna palvelusta tuote 10 päivässä, 1 st edition. Helsinki: Talentum.
Skinner, H., Moss, G., & Parfitt, S. 2005. Nightclubs and bars: What do customers really want? International Journal of Contemporary Hospitality Management, 17(2), 114–124. 7 Cited May 2024. Available at https://doi.org/10.1108/09596110510582314
Tornikoski, D. 2024. Service productization. Service productization for a night club business. Master’s thesis. LAB University of Applied Sciences. Cited 8 May 2024. Available at https://urn.fi/URN:NBN:fi:amk-2024051612425
Wirtz, J., Fritze, M. P., Jaakkola, E., Gelbrich, K., & Hartley, N. 2021. Service products and productization. Journal of Business Research, 137, 411–421. Cited 7 May 2024. Available at https://doi.org/10.1016/j.jbusres.2021.08.033
