Chapter 3: Developing Service Concepts: Core and Supplementary Element
| Overview of Chapter 3 * Planning and Creating Services * The Flower of Service * Planning and Branding Service Products * Development of New Services
| I. Planning and Creating Services * A service product comprises all elements of service performance, both tangible and intangible, that create value for customers * The service concept is represented by: * A ________________ * Accompanied by ________________ ________________
| Core Products and Supplementary Services * In mature industries, core products often become commodities * Supplementary services help to differentiate core products and create competitive advantage by: * Facilitating use of core product (a service or a good) * Enhancing the value and appeal of the core product
| Augmenting the Core Product (Fig 3.1) * Are supplementary services needed to facilitate use of core product or simply to add extra appeal? * Should customers be charged separately for each service element? * Or should all elements be bundled at a single price?
| Designing a Service Concept * ________________ * Central component that supplies the principal, problem-solving benefits customers seek * ________________ * Augment the core product, facilitating its use and enhancing its value and appeal * ________________ * Used to deliver both the core product and each of the supplementary services
Documenting Delivery Sequence Over Time * Must address sequence in which customers will use each core and supplementary service * Determine approximate length of time required for each step * Customers may budget a specific amount of time for an activity * Information should reflect good understanding of customers, especially their: * ________________ * ________________ * ________________ * Question: Do customers’ expectations change during service delivery in light of perceived quality of each sequential encounter?
| What Happens, When, in What Sequence?
Time Dimension in Augmented Product (Fig 3.3)
Core and Supplementary Services at Luxury Hotel
(Offering Much More than Cheap Motel!)
Flowcharting Service Delivery Helps to Clarify Product Elements * Offers way to understand totality of customer’s service experience * Useful for distinguishing between core product itself and service elements that supplement core * Restaurants: Food and beverage (core) * Reservations (supplementary services) * Shows how nature of customer involvement with service organizations varies by type of service: * People processing * Possession processing * Mental Stimulus processing * Information processing
Defining Core and Supplementary Elements of Our Service Product * How is our core product defined and what supplementary elements augment it? * What product benefits create most value for customers? * Is our service package differentiated from competition in meaningful ways for target customers? * What are current levels of service on core product and each supplementary element? * Can we charge more for higher service levels? For example: * Faster response and execution * Better physical amenities * Easier access * Higher staffing levels * Superior caliber personnel * Alternatively, should we cut service levels and charge less?
| Simple Flowchart for Delivery of a ________________-Processing Service (Fig 3.4)
| People Processing – Stay at Motel Park Car
Spend Night in Room
Maid Makes up Room
Simple Flowchart for Delivery of a
________________-Processing Service (Fig 3.4)
Simple Flowchart for Delivery of ________________-Processing Service (Fig 3.4)
| Simple Flowchart for Delivery of ________________-Processing Service (Fig 3.4)
II. The Flower of...
Please join StudyMode to read the full document