Flower of service Understanding the Components of the Augmented Service Product Shostack’s Molecular Model of a Total Market Entity - Passenger Airline Service Distribution Price Service frequency Vehicle Transport Pre- and post-flight service In-flight service Food and drink KEY Tangible elements Intangible elements Marketing Positioning Core Products and Supplementary Services • Most firms offer customers a package of benefits: –core product (a good or a service) –supplementary services that add value to the core • In mature industries, core products often become commodities • Supplementary services help to differentiate core products and create competitive advantage by: –facilitating use of the core service –enhancing the value and appeal of the core Core and Supplementary Product Design: What Do We Offer and How Do We Create and Deliver It? Supplementary services offered and how created and delivered Delivery Concept For Core Product Scheduling Process Core Service Level Customer Role What Should Be the Core and Supplementary Elements of Our Service Product? • How is our core product defined and what supplementary elements currently augment this core? • What product benefits create the most value for customers? • Is our service package differentiated from the competition in ways that are meaningful to target customers? • What are current levels of service on the core product and each of the supplementary elements? • Can we charge more for higher service levels on key attributes (e.g., faster response, better physical amenities, easier access, more staff, superior caliber personnel)? • Alternatively, should we cut service levels and charge less? Core and Supplementary Services in a Luxury Hotel Reservation Cashier Business Center A Bed for the Night in an Elegant Private Room with a Bathroom Valet Parking Reception Baggage Service Room Service Wake-up Call T elephone Cocktail Bar Entertainment/ Sports / Exercise Restaurant The Flower of Service: Categorizing Supplementary Services Information Payment Consultation Core Billing Order-Taking Exceptions KEY: Hospitality Facilitating elements Enhancing elements Safekeeping Facilitating Services - Information Core Customers often require information about how to obtain and use a product or service. They may also need reminders and documentation Facilitating Services - Order-Taking Core Many goods and services must be ordered or reserved in advance. Customers need to know what is available and may want to secure commitment to delivery Facilitating Services - Billing Core “How much do I owe you?” Customers deserve clear, accurate and intelligible bills and statements Facilitating Services - Payment Core Customers may pay faster and more cheerfully if you make transactions simple and convenient for them Enhancing Services - Consultation Core Value can be added to goods and services by offering advice and consultation tailored to each customer’s needs and situation Enhancing Services - Hospitality Core Customers who invest time and effort in visiting a business and using its services deserve to be treated as welcome guests Enhancing Services - Safekeeping Customers prefer not to worry about looking after the personal possessions that they bring with them to a service site. They may also want delivery and aftersales services for goods that they purchase or rent Core Enhancing Services - Exceptions Core Customers appreciate some flexibility in a business when they make special requests. They expect it when not everything Goes according to plan Flower of service • core product surrounded by cluster of supplementary services • Supplementary services • Facilitating services : – – – – Information Order taking Billing Payment • Enhancing services: – Consultation – Hospitality – Safekeeping – Exceptions • a) Examples of information elements • • • • • • • • Directions to service site Schedules / service hours Prices Instructions on using the service Reminders Warnings Condition of sale/service Notification of changes • • • • • b) Examples of order taking elements Applications Membership in clubs Subscription services (e.g utilities) Prerequisite based services (e.g college enrollment) • Order entry • On –site order fulfillment • Mail/ telephone order placement • Email order placement • Reservations and check in – – – – – Seats Tables Rooms Vehicles or equipment rental Admission to restricted facilities (museums) • Billing : – Periodic statements of account activity – Invoices for individual transactions (stock market) – Machine display of amount due • Examples of payment – – – – – – – cash Cheque Credit card Electronic fund transfer Enter credit card number online Coupon redemption Automated systems : ( e.g Machine-readable tickets that operate entry gates) • Consultation – – – – – Advice Auditing Personal counseling Tutoring /training in product use. Management or technical consulting • Hospitality : examples of hospitality elements – – – – Greetings Food and beverages Toilets and washrooms Waiting facilities and amenities • Lounges, waiting areas and seating • Weather protection • Magazines, entertainment, newspaper • Transport • Security • • Safekeeping Caring for possessions customers bring with them • • • • • • • Child care Pet care Parking facility for vehicles Valet parking Luggage handling Safe deposit boxes Security personnel • 1) • • • • • h) Exception elements: special requests in advance of service delivery: Children’s needs Dietary requirements Medical or disability needs Religious observances Deviations from Standard operating procedures – Problem solving • Warranties and guarantees against product malfunction • Resolving difficulties caused by accidents , service failures and problems with staff or other customers • Assisting customers who have suffered an accident or medical emergency. • Restitution • Refunds • Compensation in kind for unsatisfactory goods and services • Free repair of defective goods.
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