Service development unit-2

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  • 1. Unit-2THE SERVICE PRODUCT
  • 2. Service Product• A service product is a bundle of features and customer benefits.• According to Lynnshostack, there are four risks of attempting to describe services in words alone. 1. Over Simplification 2. Incompleteness 3. Subjectivity 4. Biased Interpretation
  • 3. The Basis Service Package• A service product is a package of series of service elements executed in proper order in keeping with the needs and wants of the consumer, with an intention to maximize consumer satisfaction• There are three elements in BSP: Core Service Facilitating Services (and goods) Supporting Services (and goods)
  • 4. The Basis Service Package Conti..• Example: in a hospital,  Core service is health care,  Facilitating services are building consisting of rooms, toilet etc.,similiarly doctors, nurses medical equipment, medicines and so on  Supporting service may be a restaurant inside the hospital
  • 5. Customer Value Hierarchy
  • 6. The Flower of Service • Christopher Lovelock developed the flower of service, which indicates the core service surrounded by a cluster of supplementary services • The flower consists of eight petals; four of them are facilitating supplementary services and other four are enhancing supplementary services
  • 7. The Facilitating Supplementary Services• Information:  Sign boards to service site  Service performance hours  Charges for services  Directions on using core and supplementary services  Altering people  Notices  Conditions of sale/service  Indicating the charges  Documentation  Reservation information  Activity summaries  Bills and receipts
  • 8. The Facilitating Supplementary Services Conti..• Consultation: Providing advice Helping customers to use the service Clarifying doubts Counseling personally Offering management/Technical consultancy
  • 9. The Facilitating Supplementary Services Conti..• Order Taking: Filling applications for membership in associations and for becoming a subscriber For reservation of seats, tables, rooms, and rentals Entry of orders-online mail or telephone order
  • 10. The Facilitating Supplementary Services Conti..• Hospitality: Greeting Enquiry and reception Waiting facilities Bathroom kits food and beverages transportation
  • 11. The Enhancing Supplementary Services• Safe Keeping:  Baby care and pet care service  Parking facilities  Storage and baggage handling services  Security and safe deposit services  Goods packaging  Pick up  Transportation  Delivery  Installation of goods  Cleaning and ensuring a healthy ambience
  • 12. The Enhancing Supplementary Services Conti..• Exceptions• Billing• Payment
  • 13. What is A New Service Product• According to Booz, Allen and Hamiltan, there can be six categories of new products: 1. New to the world products 2. New product lines 3. Additions to the existing product line 4. Improvements and revisions of existing products 5. Repositioning 6. Cost reductions
  • 14. Steps in the Development of a New Service• Service firms may offer the service product in three different forms: 1) A generalized fixed service package 2) A generalized flexible service package 3) Customized service package
  • 15. Steps in the Development of a New Service Conti..1. Idea Generation 1.Front line people 3. Support personnel, 2. Sales competitors, personnel, professional customers organizations, researchers and social organizations
  • 16. Steps in the Development of a New Service Conti..2. Screening Ideas Issues to be discussed: -Suitability to the existing production system -Requirement, availability, and affordability in relation to financial resources, human resources, technological resources, distribution system and other resources -In screening two types of errors are likely to occur: -Go errors -Drop errors
  • 17. Steps in the Development of a New Service Conti..3. Concept Development and Testing -Service concept includes the elements of a BSP, customer- employee interaction and the service design document -The service design document describes:  The problem to which the solution is offered  Reason for offering a new service  List of sequential service processes and its benefits  A rationale for the customer as to why he or she should have the service Service Blueprint: is a picture or map that portray the service accurately -Concept Testing
  • 18. Steps in the Development of a New Service Conti..4. Marketing Strategy Development -The strategic plan will find out answers to the following questions:  Who are the target consumers?  What is the size of the market?  What is the competitive structure and their behaviour?  What is the positioning strategy?  What is the pricing strategy?  What is the distribution strategy?  What are the long term sales?  What is the expected market share?  What are the profit goals?
  • 19. Steps in the Development of a New Service Conti..5. Business Analysis6. Service Development7. Market Testing8. Commercialization -At this stage four decisions are of utmost importance:  When should the service be offered?  Where should be the service be offered?  To whom should the service be offered?  How should the service be offerd?