Week 4

Question 1

What is a service product

Answer 1

1. The core service: what is being delivered
2. Supplementary service: value-adding services other than the core
   The importance of each attribute varies and may depend on whether the service is high or low contact (e.g. business lounge) (what can I offer that I’m currently not to create a competitive advantage)

3.Delivery process: the manner or how the service is delivered

Question 2

classifying supplementary services:

Answer 2

Facilitating:
information
order taking
billing
payment 

Supporting:
Consultation
hospitality
safekeeping
expectations

o The facilitating service element: throughout the pre-flight experience, Qantas utilises technologies such as airport kiosks and mobile check-in to drive value by delivering speed, ease and convenience for customers
o FedEx provides facilitating services by allowing shippers to track the movement of their packages around the world

Question 3

Information technology can be used to enhance delivery of supplementary Services:

Answer 3

Because so many supplementary elements are information based, there are more and more opportunities to enhance service (and also to improve productivity in some instances), through intelligent applications of information technology
E.g. Deakin sync send email to people not logging on to sync

Question 4

managerial implications of supplementary services

Answer 4

Many firms outsource particular activities (or in house)
Not every core service is necessarily surrounded by all possible supplementary services
Can supplementary services be transformed into core service products?
The place (location) of service provision can also be a vital part of the service product strategy (traffic count, exposure
The adoption of IT can be both beneficial and detrimental

Question 5

developing a service product stratergy

Answer 5

1. The nature of the service(s) (best to have a range of products at different stages of the product life cycle) to be offered, benefits and consumer value
2. The place (where are you selling the service?) and manner (what is required to deliver the service e.g. staff, tools etc) of service provision
3. The requisite enabling resources

Question 6

creating new services

Answer 6

1. Major service innovations: new core offerings for markets that have not been previously defined e.g.
   broadcast TV, eBay
2. Major process innovations: new ways of delivering existing core products with additional benefits e.g. virtual universities, online retailing
3. Product line extensions e.g. new menu item or airline routes
4. Process line extensions (less innovative): distinctive new ways of delivering existing services, e.g. adding a lower contact distribution channel (banking, stockbroking)
5. Supplementary service innovations: adding new facilitating services or improving supplementary services, e.g. self-checkout at hotels
6. Service redesign: most common type of innovation involving modest changes in the performance of current products

Question 7

explain different type of service redesigns

Answer 7

1. Self-service: active customer participation, e.g., ATMs, online banking, automated check-in kiosks at airports
2. Direct service: moving the point of delivery to the customer’s location, e.g., car servicing, Weight Watchers, mobile bank
3. Pre-service: helps hasten the service activation process, e.g., tour company, Marriott hotel
4. Bundled service: combines multiple services into a package, e.g., Telstra – phone, internet etc, tour operator – flights, accommodation
5. Physical service: manipulation of tangibles associated with the service, e.g., HSBC Bank (physical environment in which the service is produced and consumed)

consider benefits and limitations (diagram 4.8 :))

Question 8

different perspective on creating new services

Answer 8

o Unique value proposition and differentiation
o New-service fit (with the values and vision of the company)
o Customer involvement (in the process) (best to pre-test the service provided)
o The role of frontline personnel

Question 9

brand strategies for services

Answer 9

brand is a perceptual thing that is based in reality but reflects the experiences, differences and the perceptions of consumers
o Signal a certain level of quality
o Act as a proxy for what and how the service will be delivered
o Creates differences between services
o Brand equity is the added value of a brand over and above the value of a generic equivalent