Development Service products and Brands

Question 1

What is a service product?

Answer 1

“Compromises of all elements of service performance, both tangibles and intangibles, that creates value for customers”

Question 2

What does service products consist of? (3)

Answer 2

1. Core Product: Central products that supply the principal, problem-solving benefits customers seek (e.g. overnight stay in hotel)
2. Supplementary services: augments the core product , facilitating its use and augmenting its value and appeal. (reservations, room service, wifi)
3. Delivery processes: the process used to deliver both the core product and for each of the supplementary services (important guests are picked up on the way to the hotel from airport).

Question 3

What does the design of the service offering have to address? (4)

Answer 3

1. How the different service components are delivered to the customer
2. The nature of the customers role in those processes
3. How long delivery lasts
4. The recommended level and style of service to be offered

Question 4

What does the delivery sequence over time have to address?(1)

Answer 4

1. Must address the sequence in which customers will use each core and supplementary service (each point you can add value)
   (e. g. hair dresses: have to go through hair drier, cut and blow or hotel stay: check in, access to room, meal, stay, breakfast, catch care)

Question 5

What are the two types of supplementary services? (2)

Answer 5

1. Facilitating: Either needed for service delivery or help in the use of core product
2. Enhancing: Add extra value for the customer (hospitality)

Question 6

What does marketing position strategy help service providers to determine about service aspects? (1)

Answer 6

1. helps to determine which supplementary services should be included

Question 7

What are the components of the service flowers and which ones facilitate or enhance the service? (8)

Answer 7

1. Information (facilitates)
2. Consultation (enhances)
3. Order-taking (facilitates)
4. Hospitality (enhances)
5. Safe keeping (enhances)
6. Exceptions (enhances)
7. Billing (facilitates)
8. Payment (facilitates)

Question 8

What does the service element “information” in the flower entitle? (2)

Answer 8

1. direction to service site (Schedules/service hours, Prices. Reminders, Warnings, Conditions of sale/service)
2. notifications of changes (Documentation, Confirmation of reservations, Summaries of account activities, Receipts and tickets)

Question 9

What does the service element of “order-taking” in the flower entitle? (3)

Answer 9

1. Applications (memberships, subscription services, prerequisite based services)
2. order entry (on-site order fulfilment, Mail/telephone/e-mail/web order)
3. reservations and check in (Seats/tables/rooms, vehicles and equipment rentals, Professional appointments)

Question 10

What does the service element of “billing” in the flower entitle? (1)

Answer 10

1. periodic statements of account activity (invoice, verbal statements, self-billing, machine display)

Question 11

What does the service element of “payment” in the flower entitle? (3)

Answer 11

1. self service
2. direct to payee or intermediary
3. automatic deduction from financial deposits-

Question 12

What does the service element of “consultation” in the flower entitle? (4)

Answer 12

1. customised advice
2. Personal counselling
3. Tutoring/training in product use
4. Management of technical consulting

Question 13

What does the service element of “hospitality” in the flower entitle? (5)

Answer 13

1. lounges, waiting areas
2. Greetings
3. Food and beverages
4. Transport
5. Security

Question 14

What does the service element of “safekeeping” in the flower entitle? (2)

Answer 14

1. caring for possessions customers bring with them (pet keeping, children, coat rooms, baggage handling)
2. caring for goods purchased by customers (packaging, pick up, transportation and delivery, cleaning, installing)

Question 15

What does the service element of “exceptions” in the flower entitle? (2)

Answer 15

1. Problem solving (warranties, guarantees)

2. Restitutions (refunds, compensations)

Question 16

What are the managerial implications of service supplementary elements? (5)

Answer 16

1. Core products don’t have to have supplementary elements
2. Nature of product helps to determine supplementary services offered to enhance value
3. People processing and high contact services have more supplementary services (customisation, part of process chance to create additional value)
4. Different levels of services can add extra supplementary services for each upgrade in service level
5. Low cost, no frills basis firms need fewer supplementary services

Question 17

What makes up a service product? (2)

Answer 17

1. Supported by supplementary services

2. Differentiated by bundle output

Question 18

what are the three broad alternatives for product lines? (3)

Answer 18

• most organisations offer a line of products rather than just a single one- (Amazon, amazon prime, amazon music)
  1. Single brand: to cover all products and services (Virgin, virgin active, Virigin Atlantic )
  2. A separate stand-alone brand for each offering (Bobby brown, Mac, bumble and bumble, clinic= all owned by same brand)
  3. Some combination of these two extremes

Question 19

On the spectrum of branding alternatives (corporate branding and individual product branding) what types of brands are included? (4)

Answer 19

1. Branded house (Virgin group)
2. Subbrands (Cola zero and diet under Coca Cola)
3. Endorsed brands (Marriott courtyard, Residence and Fairfield)
4. House of brands (Yum! brands owns Pizza Hut and taco bell)

Question 20

Mention an example of sub-brands? (1)

Answer 20

1. British air ways intercontinental offerings:
   - First (Deluxe service)
   - Club World ( business class)
   - World traveller plus
   - world traveller

Question 21

How is branding incorporated at different levels of services? (2)

Answer 21

1. corporate brand: easily recognised, holds meaning to customers, stands for a particular way of doing business
2. Product brand: less obvious connection with parent company, help firms communicate distinctive experiences and benefits associated with a specific service concept

Question 22

Why are new services developed? (6)

Answer 22

1. Competitive intensity and customer expectations are continuously rising
2. Companies should not only provide existing services well but also create new service approaches
3. Offers opportunities to satisfy unmet needs
4. Means of utilising spare capacity (unoccupied rooms in hotel during off peak seasons)
5. Helps balance a company’s portfolio and reduce risk of dependancy
6. Helps companies retain and develop a relationship with customer by catering for diverse needs

Question 23

What are the different levels at which a service firm can innovate services core and distribution aspects (pyramid)? (7)

Answer 23

1. Major service innovations: new core products for undefined markets (kindle)
2. Major process innovations: using new processes to deliver existing products with added benefits (Fedex overnight deliveries, Netflix downloadable)
3. Product line extensions: addition to current product lines
4. Process Line extensions: alternative delivery processes
5. Supplementary service innovations: additions of new or Improved facilitating or enhancing elements (amazon locker, bank internet)
6. Service improvements: modest changes in the performance of current products
7. Style changes: Visible changes in service design or scripts

Question 24

What are the steps in the new service development process?

Answer 24

front end planning=
1. Business strategy development of review
2. New service strategy development
3. Idea generation (screen ideas against new service strategy)
4. Concept development and evaluation (test concept with customers and employees)
5. Business analysis (test for profitability and feasibility)
= implementation
6. Service development and testing (conduct service prototype test)
7. Market testing (test service and other marketing mix elements)
8. Commercialisation
9. Postintroduciton evaluation