Professional Documents
Culture Documents
Chapter 3- 1
Chapter 3- 2
Chapter 3- 3
Chapter 3- 4
Chapter 3- 5
Supplementary Services
Augment the core product, facilitating its use and enhancing its value and appeal
Delivery Processes
Used to deliver both the core product and each of the supplementary services
Chapter 3- 6
Core and Supplementary Services at Luxury Hotel (Offering Much More than Cheap Motel!)
Reservation Cashier Business Centre Room Service A Bed for the Night in an Elegant Private Room with a Bathroom Valet Parking Reception
Chapter 3- 7
Chapter 3- 8
Breakfast Prepared
Chapter 3- 9
(Fig 3.6)
Exceptions Safekeeping
KEY:
Hospitality
People-processing and high-contact services have more supplementary services Market positioning strategy determines which supplementary services should be included Firms with different levels of service often add extra supplementary services for each upgrade in service level
Chapter 3- 11
Customers often require information about how to obtain and use a product or service. Core Examples of elements:
Directions to service site Schedule/service hours Prices Conditions of sale Usage instructions
Chapter 3- 12
Core
Customers need to know what is available and may want to secure commitment to delivery. The process should be fast and smooth. Examples of elements:
Chapter 3- 13
How much do I owe you? Bills should be clear, Accurate, and intelligible. Core
Examples of elements:
Periodic statements of
Chapter 3- 14
Customers may pay faster and more cheerfully if you make transactions simple and convenient for them.
Core Examples of elements:
Chapter 3- 15
Core
Value can be added to goods and services by offering advice and consultation tailored to each customers needs and situation. Examples of elements:
Chapter 3- 16
Core
Examples of elements:
Greeting Waiting facilities and amenities Food and beverages Toilets and washrooms Security
Chapter 3- 17
Customers prefer not to worry about looking after the personal possessions that they bring with them to a service site. Core Examples of elements:
Chapter 3- 18
Customers appreciate some flexibility when they make special requests and expect responsiveness when things dont go according to plan.
Core
Examples of elements: Special requests in advance Complaints or compliments Problem solving Restitution
Chapter 3- 19
Managerial Implications
To develop product policy and pricing strategy, managers need to determine:
Which supplementary services should be offered as a standard package or as fee based options
Firms that compete on a low-cost, no-frills basis needs fewer supplementary elements than those marketing expensive, high-value-added services Each flower petal must receive consistent care and concern to remain fresh and appealing
Chapter 3- 20
Chapter 3- 21
Branding Alternatives
Purpose of branding is to establish a mental picture of the service and clarify the value proposition Service marketers need to be their brand champions Branding alternatives are:
Branded House brand name to multiple offerings in unrelated fields e.g. Virgin Group Sub Brands master brand is primary frame of reference but product has a distinctive name e.g. Singapore Airlines Raffles Class Endorsed Brands Product brand dominates the corporate name e.g. hotels House of Brands corporation with a number of products, each promoted under its own brand name e.g. Proctor & Gamble
Copyright 2008 Pearson Education Canada Services Marketing, Canadian Edition Chapter 3- 22
Chapter 3- 23
3. Product-line extensions
Additions to current product lines
4. Process-line extensions
Alternative delivery procedures
Copyright 2008 Pearson Education Canada Services Marketing, Canadian Edition Chapter 3- 24
6. Service improvements
Modest changes in the performance of current products
7. Style changes
Visible changes in service design or scripts
Chapter 3- 25
Examination of processes can lead to creation of alternative delivery methods that constitute new service concepts
Add/eliminate supplementary services Resequence delivery of service elements Offer self-service options
Chapter 3- 26
Services as Substitutes for Goods Ownership and Task Performance (Fig 3.12)
Chapter 3- 27
Summary Chapter 3
The service concept consists of the core product, the supplementary services and the delivery processes Flowcharting differentiates the core and supplementary services providing a total view of the customers experience
The 8 petals of the Flower of Service shows how supplementary services can enhance and facilitate
Branding provides a mental picture of the value proposition There are 7 different categories of new service design ranging from major innovations to style changes
Chapter 3- 28