Product and service operation

Question 1

Kotler (1997) : the product is a set of the following layers to do a competitive advantage

Answer 1

Core benefits or service

#Actual product
Brand name, Fetures, Quality, Design, Packaging, Capabilities
#Augmented product
Customer service, Warranty, Delivery and credit, Personnel, installation, After-sales suport

Question 2

Product VS Services

Answer 2

Intangibility

Ephemeral, taking no clear form
Black Hat
	Most services we can think of have some tangible components (e.g. meals in a restaturants)  and most, if not all, goods deliver intangible benefits (e.g. warranty on a TV)

Differs significantly on each occasion (mainly due to human factor)
Black hat
	In some service, the experience can be similar. e.g. Fast food, ATM

#Simultaneity
	Produced and consumed at the same time
	Black hat
		Music
# Perishability
	Cannot be stored. Consumed immediately
	Black hat
		Hotel room

Attention : Quality, Capacity planning, IP

Question 3

7Ps

Answer 3

Physical evidence (ambience)

#Process
	The way in which the service is processed is part of the customer experience
	Appointment and queuing become part of the system

The environment in which a service is offered
The “feel” of the service product is very much part of the service offer

#People
	The nature of the service requires direct interaction between the consumer and personnel representing the service provider’s organisation
		e.g. Restaurant waiters