Professional Documents
Culture Documents
Chapter 4 Module 2
Service Product
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It means a set of services offered for sale by a company. It can be assessed in terms of Width Number of different service line company offers Length Total number of service items in the mix Depth Number of variants offered in each service line Consistency How closely service lines are related in consumer perception and distribution channels
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The service package is the product dimension of services. It includes all decisions involving the essential concept of service, the range of service provided and the quality and levels of service. Christian Gronroos makes a distinction between 3 groups of services: Core Facilitating (enabling) Supporting (enhancing)
Service Offer
It spells out in more details those services to be provided, how and to whom. It includes all those elements that make up the total service package including the tangible and in tangible part of it.
It is a carefully designed blueprint that describes how the service is rendered to the customers. It describes how the service is provided to the customer. It represents the interaction between service provider, customer & service facility.
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Service Levels
Diagrammatic presentation
Potential Augmented Expected
Actual
Core
Flower of Service
Flower of Service
Facilitating / Enabling
Enhancing / Supporting
Facilitating services
Example of Information elements Directions to service site Schedule / service hours Prices Reminders / Warnings Conditions of sale/ services Notifications of change Summaries of account activity Documentation Confirmations of reservations Example of Order taking Elements
Membership in clubs or programs Subscription services Reservations and check in Professional Appointments Email / Web order placements Fast order execution
Facilitating services
Example of Billing elements
Periodic statements of account activity Invoices for individual transactions Verbal statements of accounts due Self Billing
Exact change in machine Credit/ debit card payment ETF Automated systems
Enhancing Services
Example of Consultation
Example of Hospitality
Greeting Food and Beverages Toilets & Washrooms Waiting rooms lounges, magazines, newspapers
Enhancing Services
Example of Safe keeping
Example of Exception
Child / pet care Parking (valet) Cloak rooms Security Pick up and drop Cleaning / Refueling Repairs / Renovation / Upgrade
Medical / Disability needs Religious observances Handling complaints / compliments / suggestions Resolving difficulties Refunds / compensation Assisting customers for any need
Flower of Service
Current Service has reached saturation stage To utilize spare and unused capacity Opportunity in the form of unmet needs To retain customers
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As per Christopher Lovelock there are 7 categories of service innovations: Major Service innovations Major Process innovations Product Line extensions Process Line extensions Supplementary Service innovations Service improvements Style Changes
Rapid Changes in Technology Lot of R & D expenditure Improper Designing of service processes Competitors fight back harder than expected Risk of Confusing customers with too many services
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Idea Generation Screening of Ideas Concept Development and evaluation Business Analysis Service Prototype Development Market Testing Commercialisation Review / Post introduction evaluation
Diversification
Share Building / Market Penetration (Current Customer Existing Services) Market Development (New Customer Existing Services) Service Development (Current Customer New Services) Diversification (New Customer New Services)
It is a picture or a map that portrays the service system It displays service delivery, points of contact, role of customers & employees, visible elements of service, etc
Process
Service Blueprinting
Point of Contact
Evidence
Service Blueprinting
2 Ps - Price
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Price Quality relations Price value relations Price varies with demand Intangibility Lack of Stock Service customisation Non-Monetary Price
Pricing Objectives
Survival Revenue and Profit objective Patronage and user based Market Share & Sales Growth Competitive Effect Image Differentiation
Pricing Objectives
Market Skimming Early Cash Recovery Preventing New Entry Customer Satisfaction Social Responsibility
External
Costs Objectives of Firm Image of Firm Promotional Activities Service Life Cycle