Lecture 8(Service Innovation)

Question 1

What is Service?

Answer 1

Intangibility: service is not a physical thing(cannot touch it )
Inventory: used, and cannot be stored for later
Inseparability: the provider is responsible for doing the service
Inconsistency: Every service is unique
Involvement: customised for the users needs and wants.

Question 2

What is servitization?

Answer 2

increase products and services with additional services to obtain other sources of income

Question 3

4 types of service innovation

Answer 3

1. Flexible solutions: offers a new core benefit. Allow users to break free of time and place. ex. eBay(marketplace 24/7) CNN(24 h news)
2. Controllable convenience : create new markets based on new delivery benefits netflix( movie rental, combines internet and regular mail) (online grocery shopping in Japan)
3. Comfortable gains: offers a new core benefit.
   
   • Starbucks(good coffee, premium price, relaxed atmosphere)
   • Barnes and Noble( Large stocks of books, easy chair readings, co located Starbucks coffee bars.
4. Respectful Access: new delivery benefit, production and consumption of the service is inseparable
   SouthWest airlines co: Fly directly
   Hertz: 1 to give frequent user
   Ball memorial hospital: giving patients a room when arriving with family, with TV and phone, checked in within 30 min.

Question 4

Service blueprinting

Answer 4

Technique within service innovation, to find areas to improve
Customer Actions
Onstage/ visible Contact Employees action
Backstage/ invisible contact employees action
Support processes
Physical Evidence