Week 2: Chapter 4 Flashcards
What does a service product comprise?
A service product comprises all elements of service performance, both tangible and intangible, that create value for customers.
What does a Flower of Service concept comprise?
- A core product,
- Accompanied by two kinds of supplementary services
Describe Core Product (1)
Central component that supplies the principal, problem-solving benefits customers seek.
Describe the Facilitating Supplementary Services (4)
Either needed for service delivery, or help in the use of the core product.
Describe the Enhancing Supplementary Services (4)
Add extra value for the customer
What are the Facilitating Petals? Describe.
BOPI
- Billing (Bills should be clear, accurate and intelligible)
- Order-taking (Customers need to know what is available and may want to secure commitment to delivery. The process should be fast and smooth)
- Payment (Customers may pay faster and more cheerfully if you make transactions simple and convenient for them)
- Information (Customers often require information about how to obtain and use a product or service)
What are the Enhancing Petals? Describe
HECS
- Hospitality (Customers who invest time and effort in visiting a business and using its services deserve to be treated as welcome guests)
- Exceptions (Customers appreciate some flexibility when they make special requests and expect responsiveness when things don’t go according to plan)
- Consultation (Value can be added to goods and services by offering advice and consultation tailored to each customer’s needs and situation)
- Safekeeping (Customers prefer not to worry about looking after the personal possessions that they bring with them to a service site)
Does every core need to be surrounded by 8 petals?
No
What does the nature of the product help determine?
- Which supplementary services must be offered
- Which might usefully be added to enhance value and ease of doing business with the organisation
What are services made up of?
- The core product
- supplementary services
- a delivery process
Most service organizations offer a line of services rather than just a single service: A service ‘menu’. Three broad alternatives are:
- Single brand to cover all products and services
- A separate, stand-alone brand for each offering
- Some combination of these two extremes
Qualities of a corporate brand: (3)
- Easily recognised
- Holds meaning to customers
- Stands for a particular way of doing business
Qualities of a (Service) Product brand:
- Helps communicate distinctive experiences and benefits associated with a specific service concept
What are the four key ways to build strong service brands?
- Dare to be different
- Determine your own fame
- Make an emotional connection
- Internalise the brand
What’s it called when an organisation offers a line of services?
A service “Menu”
What is the hierarchy of new service categories?(7)
- Style Changes
- Services Improvements
- Supplementary Service Innovations
- Process-line extensions
- Product-line extensions
- Major process innovations
- Major service innovations
New Service Category (1)
Style Changes: Visible changes in service design or scripts
New Service Category (2)
Service improvements: Modest changes in the performance of current products
New Service Category (3)
Supplementary service innovations: Additional new or improved facilitating or enhancing elements
New Service Category (4)
Process-line extensions: Alternative delivery procedures
New Service Category (5)
Product-line extensions: Additions to currents product lines.
New Service Category (6)
Using new processes to deliver existing products with added benefits
New Service Category (7)
Major service innovations: New core products for previously undefined markets
What are the success factors in new service developments? Describe (3)
- Market synergy
- Good fit between new and the existing ‘service menu’
- Apparent competitive advantage
- Strong support from organization during/after launch - Organisational factors
- Strong internal cooperation and coordination within firm
- Internal marketing to educate staff on new service, its importance and its competition - Market Research Factors
- Rigorous research conducted throughout the development process
- Service concept well defined before undertaking market research
In developing new services, the core product is?
The core product is of secondary importance.
- Ability to maintain quality of the total service offering is key
- Accompanying marketing support activities are vital
- Market knowledge is of utmost importance
- Keep you finger on the market pulse
What underpins success?
Market synergy, organisational factors and market research.
Co-creation is about?
Power to people
The co-creation effect? 8 points
- Differs from the traditional passive consumer market of the past
- stomers influence productivity and quality of service processes and outputs
- Customers bring competencies
- Actions and resources supplied by customers during service production and/or delivery
- This may be mental, physical, and even emotional inputs
- Marketing with customers not marketing to customers
- A movement away from generic service transactions to personalised service experiences
- Organisations gain in terms of loyalty and positive word of mouth − inimitable competitive advantage
Levels of Co-creation and examples?
- Low
- Employees and systems of all the work
- Often involves standardised service - Medium
- Customer helps firm create and deliver service
- Provide information and instructions
- Make some personal effort; share physical possesions - High
- Customer works actively with provider to co-produce the service
- Service cannot be created without customer’s active participation
- Customer can jeopardize quality of service outcome (e.g. weight loss, marriage counseling, university education!)
What are 5 co-creation challenges?
- Balance between freedom and control
- Communicating and managing expectations
- Taking a leadership role in the process
- Acknowledging customers contributions
- Being flexible, empathetic, open, transparent, responsive and authentic
What does consumer and producer fuse into?
They fuse into a “prosumer”
What is co-creation a move towards?
Co-creation is a move towards an active, personalised consumer experience.
How many levels of co-creation are there?
3
What do Prosumers do?
Prosumers work with businesses to co-creat service products
