service product 11 09 09

8/8/2019 Service Product 11 09 09

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Introduction to the 7Ps

Product the first P


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Service Product Concept

Core Benefit

Basic Service Product

Expected Service

Augmented Service

Potential Service


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Core Benefit

Is was the buyer is really buying Use, benefit or solution

E.g. Movie ticket Entertainment, Airline Travel,

Cosmetic Hope, Mobile service Connectivity

Basic Service Product

The intangible service through which the core benefit is received

Consists of all those factors which consumers assume to be present

in the offering. E.g. Air travel Aircraft & basic infrastructure to

implement the service


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Expected Service

Customers expect to get certain service quality or features when they

purchase service. They are the unwritten features in given context.

E.g. : Expecting a good in-flight food, pleasant service from crew

Augmented Service

Consists of measures taken to differentiate the service from

competitors and provide service quality beyond expectations

Customer delight is an objective of augmentation

E.g.: Providing business centre in the airline lounge or discounted

snacks at airport lounge (Jet Airways to its frequent Flyers)


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Potential Service

Includes all the augmentations and the futuristic product

development

Finding out better ways of delighting the customer

E.g.: Providing added services like sight seeing & cultural activities

apart from normal lodging & boarding by hotels

Another way of segregating service is Core Service Minimum expectation

Supplementary Services Providing an edge that helps in

differentiating the service provider


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Classification of supplementary services

Facilitating Services

Information

Order taking

Billing

Payment

Enhancing Services

Consultations

Hospitality

Safe keeping

Exceptions


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Information

Timely and accurate information regarding service hours, prices,

reminders, warnings, documentations, confirmation of reservation

etc by means of brochures, instruction books, video tapes, touch-screen video displays etc

Order taking

Politeness, speed and accuracy to save consumers time and

prevent unnecessary mental or physical effort Order taking elements include applications, order entry,

reservations & check-ins


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Billing

Bills should be clear, informative and itemized without any

ambiguity. Inaccurate, illegible or incomplete bills lead to

dissatisfied customers

Payment

Customers expect ease and convenience of payment including

credit increased used of debit and credit cards


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Enhancing Services

Consultations

Involves a dialogue to probe customer requirement and then to

develop a tailored solution

Consultation elements include advice, personal counseling, trainingin product use

Hospitality

Reflects pleasure at meeting new customers and greeting old ones

when they return, that is treating customers as guests

Courtesy and consideration are the two key elements

Recruiting employees who are naturally warm and welcoming for

customer contact jobs


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Enhancing Services

Safe keeping

Elements Caring for possessions customers bring with them

parking facility, valet parking, storage space, child care, per care, etc

Caring for goods purchased by customers packaging,transportation, delivery, installation, inspection, repairs, etc

Exceptions

Include services that fall outside the routine of normal service

delivery

Elements Special requests, problem solving, handling complains

and suggestions, restitution compensation for serious

performance failures


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Technology & Services

Inspite of the arrival of new technology broad service or category

or need remain constant over a long period of time

Technology changes have altered product form but basic need

category is same VHS cassette rental DVD rental Home entertainment

Traditional cinema halls Multiplexes Entertainment

Traditional banking services ATM, Debit & Credit cards

Though some technology has drastically alltered or deleted

certain pattern/category of services

Mobile versus pagers

Internet surpassing traditional postal services


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DEVELOPING NEW SERVICE OFFERING


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Stage I CONSUMER BENEFIT CONCEPT

Assess the consumer benefit

Consumers dont buy products because of their attributes

rather they buy the benefits

Problems encountered

In articulate consumers

Benefit sought change overtime

Wrong interpretation of hierarchy of benefits Proper market research and appropriate information search

should be undertaken


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Stage II SERVICE CONCEPT

Consumer benefits have to be translated into core,

facilitating and support services

Aim being defining what general benefits the service

organization would offer to its customers


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Stage III & IV - SERVICE OFFER & DELIVERY

Service Elements Tangible & intangible

Service Form In what way/how

Service Levels Quality (Image, Technology & Function)

Service Quantity Volume, timing

Careful planning is essential to deliver the right service inthe right form in the right quality and quantity


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Stage V MANAGING IMAGE & COMMUNICATION

Appropriate market communication strategies should be

prepared and implemented to not only inform and

persuade the customers but to also enhance the companys

image


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Developing new service offering

Stage I CONSUMER BENEFIT

CONCEPT

What benefits consumer seeks

Stage II SERVICE CONCEPT What benefits the services organization should offer

Stage III SERVICE OFFER Sr. Elements Tangible & intangible

Sr. Form In what way/how

Sr. Levels Quality (Image, Technology & Function)

Sr. Quantity Volume, timing

Stage IV SERVICE DELIVERY

SYSTEM

Using benchmarks

Developing process, people and facilities

Stage V MANAGING IMAGE

&COMMUNICATION

To support an enhance perceptions on service offers

service product 11 09 09

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