Wksht Chapter 3 Developing Service Concepts - Core and Supplementary Element

Topics: Supply chain management terms, Flowchart, Core product Pages: 9 (2294 words) Published: November 22, 2010
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

Check In

Spend Night in Room


Check Out

Breakfast Prepared

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...
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