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41 Cards in this Set
- Front
- Back
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SERVICE PRODUCT |
comprises all the elements of the service performance – both tangible & intangible |
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COMPONENTS OF SERVICE PRODUCT |
CORE PRODUCT SUPPLEMENTARY SERVICES DELIVERY PROCESSES |
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COMPONENTS OF SERVICE PRODUCT
CORE PRODUCT |
Central component that supplies the principal, problem-solving benefits Customers seek |
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COMPONENTS OF SERVICE PRODUCT
SUPPLEMENTARY SERVICES |
Augments the core product, facilitating its use and enhancing its value and appeal |
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COMPONENTS OF SERVICE PRODUCT DELIVERY PROCESSES |
Used to deliver both the Core Product and each of the Supplementary Services |
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Molecular Model |
A conceptual model of the relationship between the tangible and intangible components of a firm’s operations |
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Issues in Designing a Service Concept |
(a) How the different Service Components are delivered to the Customer (b) The nature of the Customer’s Role in those Processes (c) How long Delivery lasts (d) The recommended Level and Style of Service to be offered |
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Temporal Dimension to Augmented Product |
When and for how long the different supplementary service elements are to be experienced by different types of guests from different segments |
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The Flower of Service Concept |
CORE + SUPPLEMENTARY SERVICES In a well-managed service organization, the "petals" and "core" are fresh and well-formed, adding to the “attractiveness” of the service product. |
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CORE PRODUCT |
central component that supplies the principal, problem-solving benefits customers seek. |
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Two (2) Types of Supplementary Services |
FACILITATING ELEMENTS: either needed for service delivery, or helps in the use of the Core Product ENHANCING ELEMENTS: adds Extra Value for the Customer |
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Market Positioning Strategy |
strategy that helps to determine which supplementary services should be included |
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FACILITATING Elements of Service Concept |
Information Order taking Billing Payment |
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ENHANCING Elementsof Service Concept |
Consultation Hospitality Exceptions Safekeeping |
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Facilitating Services: Information |
§ Directions to Service Site § Schedules/Service Hours § Prices § Reminders § Warnings § Conditions of Sale/Service § Notification of Changes § Documentation § Confirmation of Reservations § Summaries of Account Activities § Receipts and Tickets |
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Facilitating Services: Order-Taking |
Applications • Memberships in Clubs/ Programs • Subscription Services (e.g., utilities) • Prerequisite Based Services (e.g., financial credit, college enrollment) Order Entry • On-site Order Fulfillment • Phone/E-mail/Web Order Reservations and Check-in • Seats/Tables/Rooms • Vehicles or Equipment Rental • Professional Appointments |
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Facilitating Services: Billing |
§ Periodic Statements of Account Activity § Invoices for Individual Transactions § Self-Billing (computed by customer) § Machine Display of Amount Due |
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Facilitating Services: Payment |
Self-Service • Insert Card, Cash or Token into Machine • Electronic Funds Transfer • Enter Credit Card Number Online Direct to Payee or Intermediary • Cash Collection • Check Payments • Credit/Charge/Debit Card Handling • Coupon / Voucher redemption Automatic Deduction from Financial Deposits • Automated Systems • Human Systems |
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Enhancing Services: Consultation |
§ Customized Advice § Personal Counseling § Tutoring/Training in Product/Service Use § Management or Technical Consulting |
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Enhancing Services: Hospitality |
§ Greeting § Food and beverages § Toilets and washrooms § Waiting Facilities and Amenities § Lounges, Waiting Areas, Seating § Weather Protection § Magazines, Entertainment,Newspapers § Transport § Security |
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Enhancing Services: Exceptions Special Requests in Advance of Service Delivery Handling Special Communications Problem Solving Restitution |
Special Requests in Adv of Service Delivery • Children’s Needs • Dietary Reqts • Medical or Disability Needs • Religious Observances Handling Special Communications • Complaints • Compliments • Suggestions Problem Solving § Warranties and Guarantees § Resolving difficulties that arise from using the Product § Resolving difficulties caused by Accidents, Service Failures § Assisting customers who have suffered an accident or a medical emergency Restitution § Refunds and Compensation § Free Repair of Defective Goods |
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Enhancing Services: Safekeeping Caring for Possessions Cust Bring w/ Them Caring for Goods Purchased (or Rented) by Cust |
Caring for Possessions Customers • Child care, pet care • Parking for vehicles, valet parking • Baggage handling • Lockers • Safe deposit boxes • Security personnel Caring for Goods Purchased (or Rented) § Packaging § Pick-Up § Transportation & Delivery § Installation § Inspection & Diagnosis § Cleaning § Refueling § Preventive Maintenance § Repair and Renovation |
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Services that have more supplementary services |
People-processing and high contact services *Different levels of service can add extra supplementary services for each upgrade in service level |
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What determines supplementary services offered to enhance value |
Nature of product *Core products do not have to have supplementary elements |
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Kind of service firm that needs fewer supplementary elements |
"Low-cost, no-frills" basis firms |
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Hierarchy of New Service Categories |
Major Service Innovations Major Process Innovations Product Line Extensions Process-Line Extensions Supplementary Service Innovations Service Improvements Style Changes |
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Hierarchy of New Service Categories Major Service Innovations |
New core products for previously undefined markets |
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Hierarchy of New Service Categories
Major Process Innovations |
Using new processes to deliver existing products with added benefits |
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Hierarchy of New Service Categories
Product Line Extensions |
Addition to current product lines |
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Hierarchy of New Service Categories Process-Line Extensions |
Alternative delivery procedures |
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Hierarchy of New Service Categories Supplementary Service Innovations |
Additions of new or improved facilitating or enhancing elements |
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Hierarchy of New Service Categories
Service Improvements |
Modest changes in the performance of current products |
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Hierarchy of New Service Categories Style Changes |
Visible changes in service design or scripts |
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Reengineering Service Processes |
analyzing and redesigning processes to achieve faster and better performance Examination of processes can lead to creation of alternative Delivery Methods |
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alternative Delivery Methods |
§ Add or eliminate supplementary services § Re-sequence delivery of service elements § Offer self-service option |
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Physical Goods as a Source of New Service Ideas |
§ Goods and services may become competitive substitutes if they offer the same key benefits § Provides an alternative to owning the physical good that can attain the desired outcome § Any new good may create need for after-sales services now and be a source of future revenue stream |
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Guidelines in Developing New Services |
• core product is often of secondary importance, many innovations are in supplementary services or service delivery • ability to maintain quality of the total service offering is key • accompanying marketing support activities are vital • Market knowledge is of utmost importance |
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Key Success Factors in New Service Development |
(1) MARKET SYNERGY (2) ORGANIZATIONAL FACTORS (3) MARKET RESEARCH FACTORS |
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Key Success Factors in New Service Development
(1) MARKET SYNERGY |
§ Good fit between new product & firm’s image § Advantage in meeting customers’ needs § Strong support from firm during and after launch § Understands customer purchase decision behavior |
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Key Success Factors in New Service Development
(2) ORGANIZATIONAL FACTORS |
§ Strong inter-functional cooperation and coordination § Internal marketing to educate staff on new product and its importance |
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Key Success Factors in New Service Development (3) MARKET RESEARCH FACTORS |
§ Scientific studies conducted early in development process § Product concept well defined before undertaking field studies |
