Chapter 4 Service Marketing
4
CHAPTER
developing service products:
CORE and
SUPPLEMENTARY ELEMENTS
LEARNING OBJECTIVES
By the end of this chapter, students should be able:
LO 1 Define what a service product is. LO 2 Know how to design a service LO 4 Know how service firms use
concept.
different branding strategies for their product lines. service development, ranging from simple style changes to major innovations. needed to achieve success in developing new services.
LO 3 Describe the flower of service
LO 5 List the categories of new
and know how the facilitating and enhancing supplementary services relate to the core product.
LO 6 Be familiar with the factors
OPENING VIGNETTE1
Figure 4.1 Starbucks is a familiar brand that even has traditional tea consumers drinking out of its cups.
As you walk along the street, the aroma drifts through the air and attracts you. It is drawing you toward the store with the green sign that has now become a common sight. You enter Starbucks, the place where you can sit down and enjoy a great cup of coffee in a comfortable settee or on a chair. You can also surf the Internet on the free wireless broadband service that is available in many of the Starbucks outlets around the world. Starbucks is a place that you would associate with coffee, before anything else.
84
Chapter 4 • Developing Service Products: Core and Supplementary Elements
As a service innovation, Starbucks has been transforming itself into a place for entertainment. It wants to extend the pop culture. It does that through Hear Music Starbucks. Customers can buy from an extensive selection of hand-selected and compiled physical CDs in the Starbucks Hear Music Coffeehouses. Alternatively, they can burn personalized CDs from a digital inventory of more than a million sound tracks, including new recordings that can only be found in some Starbucks outlets. Debut albums of some new musicians are actually launched and available only exclusively at Starbucks
CHAPTER
developing service products:
CORE and
SUPPLEMENTARY ELEMENTS
LEARNING OBJECTIVES
By the end of this chapter, students should be able:
LO 1 Define what a service product is. LO 2 Know how to design a service LO 4 Know how service firms use
concept.
different branding strategies for their product lines. service development, ranging from simple style changes to major innovations. needed to achieve success in developing new services.
LO 3 Describe the flower of service
LO 5 List the categories of new
and know how the facilitating and enhancing supplementary services relate to the core product.
LO 6 Be familiar with the factors
OPENING VIGNETTE1
Figure 4.1 Starbucks is a familiar brand that even has traditional tea consumers drinking out of its cups.
As you walk along the street, the aroma drifts through the air and attracts you. It is drawing you toward the store with the green sign that has now become a common sight. You enter Starbucks, the place where you can sit down and enjoy a great cup of coffee in a comfortable settee or on a chair. You can also surf the Internet on the free wireless broadband service that is available in many of the Starbucks outlets around the world. Starbucks is a place that you would associate with coffee, before anything else.
84
Chapter 4 • Developing Service Products: Core and Supplementary Elements
As a service innovation, Starbucks has been transforming itself into a place for entertainment. It wants to extend the pop culture. It does that through Hear Music Starbucks. Customers can buy from an extensive selection of hand-selected and compiled physical CDs in the Starbucks Hear Music Coffeehouses. Alternatively, they can burn personalized CDs from a digital inventory of more than a million sound tracks, including new recordings that can only be found in some Starbucks outlets. Debut albums of some new musicians are actually launched and available only exclusively at Starbucks