Sustinable Products and Service Decisions Flashcards
What is a product? (6)
1) tangible goods
2) services
3) places
4) ideas
5) organisations
6) people
Designing a service
1) intangibility
2) variability
3) inseparability
4) perishability
1) intangibility (3)
2) variability (3)
1) intangibility
- services have no physical existence, cane be experienced before being produced.
- plan to market tangible aspects of a service, such as expert personnel or new equipment.
- the restaurant experience combines foods, atmosphere, customer service.
2) variability
- service quality can vary from one experience to the next, depending on provider, facility, time of day.
- plan to market staffs training and experience, standardised process for quality management.
- the restaurant may serve great food and service one day, but not the next.
3) inseparability (3)
4) perishability (3)
3) inseparability
- service production and delivery can’t be separated from consumption.
- plan to market efficiency, effectiveness, emotional benefits of customers, interacting with service employees.
- staff customer service has a major impact on how we view the experience.
4) perishability
- services can be held in storage for future sale or consumption.
- plan marketing to increase usage during slow periods, shift from usage peak periods to slower periods.
- table bookings for a particular day/time cannot be stored for later.
Sustainable products and services (5)
1) product stewardship
2) service dominant logic
3) product sustainability using the natural step framework
4) developing sustainable new products
5) sustainable services
Product stewardship (3)
- definition: understanding, controlling, and communicating a products environmental, health and safety related effects throughout its life cycle, from production to final disposal or reuse.
- product strategy: a firms decision concerning the best combination of goods and services to deliver value to its target market.
- need to rethink product strategy.
Service dominant logic (5)
- definition: focusing strategy on what needs people are trying to meet rather than on what products they will buy.
- consumers don’t necessarily want more products, they want the services or benefits the product provides.
- e.g. By leasing a dvd, a consumer doesn’t want a box full of hard ware or software, just want a convenient, reliable source of quality in home entertainment.
- they key to a sustainable product strategy is to offer the benefits in a way that is competitive as well as socially and environmentally responsible.
- dematerialisation: occurs when fewer resources are used to create the same or equivalent benefits.
Service dominant logic (3)
- one advantage of selling services rather than products is that it eliminates the need for product guarantees.
- customers are relieved of the burdens and costs of purchasing, storing, handling and the disposing of the same products.
- e.g. Household cleaning: customers receive the benefits of cleanliness without the need of dealing with chemicals, containers and machinery.
Product sustainability using the natural step framework (2)
- developing and marketing sustainable products requires an understanding of the entire life cycle of a company’s goods and services.
- product strategy is full of opportunities to enhance sustainability along with other important product attributes, such as its functional, aesthetic and experiential qualities.
Product sustainability using the natural step framework
- first 2 conditions (4)
1) design products to be manufactured with renewable, reclaimed, non toxic and organic materials. E.g. Eco friendly cleaning products.
2) design products for more efficient, carbon neutral storage and transportation.
3) design products for safe, carbon neutral operation. E.g. Bicycles fitted with trailers for hauling kids, pets or gear.
4) design products for disassembly, remanufacturing and materials recovery.
Product sustainability using the natural step framework
- system condition 3(2)
- manufacturing and agricultural wastes should never be allowed to contaminate streams, rivers, oceans or water tables. Products should also be designed to conserve water as they are used in both consumer and industrial applications.
- e.g. Low flow shower heads, dual flush.
Product sustainability using the natural step framework
- system condition 4 (2)
- a sustainable product builds human capital rather than exploiting man resources.
- e.g. Workers in developing nations may be subjected to in humane working conditions for very low compensation, simply because of the demand for jobs is so high.
Developing sustainable new products (2)
- consumer products that are more environmentally and socially suitable can expand existing markets and open up new ones.
- advantages of engaging in sustainable product design include better product quality, resource efficiency and market positions.
Developing services (5)
- Eco efficient services: services that are either closely related to products or substitute for products, thereby reducing the use of material and energy.
- 4 types:
1) product services - extend the life of a product through maintenance, upgrading, repair guarantees and product take backs. E.g. Maintenance service for an office photocopier.
2) use services - allow the benefit of use without the need to buy the product. E.g. Renting
3) intangible services - substitute systems, often technology based, for products. E.g. Online banking instead of writing checks.
4) result services - work toward satisfying customer needs while reducing the need for material products altogether. E.g. Public transportation.
Sustainable consumer services
- definition: the drive to sustainability has also led to innovation in the area of customer services.
- e.g. green power industry.
- Eco tourism is one of the most rapidly growing and dynamic sectors of the tourism market.
