The document discusses service product strategies and the service value profit chain. It identifies five characteristics of services as intangible, inseparable, indivisible, perishable, and variable. It also categorizes types of service products and lists seven strategies for service products: product, place, price, promotion, people, process, and physical evidence. Finally, it outlines the service value profit chain which links internal service quality, employee satisfaction and productivity, customer satisfaction and loyalty, and profits and growth.

1. Service Product Strategy
Dr. Gopal Thapa
Tribhuvan University

2. Service Characteristics
 Intangible
 Inseparable
 Indivisible
 Perishable
 Variable
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3. Types of service product
 Personal/business service
 For-profit service/not –for- profit service
 Presence /absence –of- customer service
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4. Service product strategies
 Product
 Place
 Price
 Promotion
 People : Internal marketing and interactive
marketing
 Process
 Physical evidence
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5. Service Value Profit Chain
 The service-profit chain establishes relationships
between profitability, customer loyalty, and
employee satisfaction, loyalty, and productivity. ...
 Satisfaction is largely influenced by
the value of services provided to customers.
 Value is created by satisfied, loyal, and productive
employees.
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6. Service Value Profit Chain
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7. Service Value Profit Chain
 Internal service quality
 Satisfied productive employee
 Greater service value
 Satisfied and loyal customer
 Healthy profits and growth
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