Flower of service

Understanding the Components of the Augmented Service Product

Shostacks Molecular Model of a Total Market Entity - Passenger Airline Service

Distribution Price

Service
frequency

Vehicle

Transport

In-flight service

Pre- and post-flight service

KEY

Food and drink

Tangible elements Intangible elements

Marketing Positioning

Core Products and Supplementary Services

Most firms offer customers a package of benefits: core product (a good or a service) supplementary services that add value to the core In mature industries, core products often become commodities

 Supplementary services help to differentiate core products and create competitive advantage by: facilitating use of the core service enhancing the value and appeal of the core

Core and Supplementary Product Design: What Do We Offer and How Do We Create and Deliver It?

Supplementary services offered and how created and delivered

Delivery Concept For Core Product

Scheduling

Process

Core Service Level Customer Role

What Should Be the Core and Supplementary Elements of Our Service Product? How is our core product defined and what supplementary elements currently augment this core? What product benefits create the most value for customers? Is our service package differentiated from the competition in ways that are meaningful to target customers?

 What are current levels of service on the core product and each of the supplementary elements? Can we charge more for higher service levels on key attributes (e.g., faster response, better physical amenities, easier access, more staff, superior caliber personnel)? Alternatively, should we cut service levels and charge less?

Core and Supplementary Services in a Luxury Hotel

Reservation Cashier Business Center A Bed for the Night in an Elegant Private Room with a Bathroom Valet Parking Reception Baggage Service

Room Service Wake-up Call T elephone

Cocktail Bar
Entertainment/ Sports / Exercise

Restaurant

The Flower of Service: Categorizing Supplementary Services

Information Payment Billing

Core

Consultation Order-Taking

Exceptions
KEY:

Hospitality Safekeeping

Facilitating elements Enhancing elements

Facilitating Services - Information

Core

Customers often require information about how to obtain and use a product or service. They may also need reminders and documentation

Facilitating Services - Order-Taking

Core

Many goods and services must be ordered or reserved in advance. Customers need to know what is available and may want to secure commitment to delivery

Facilitating Services - Billing

Core

How much do I owe you? Customers deserve clear, accurate and intelligible bills and statements

Facilitating Services - Payment

Core

Customers may pay faster and more cheerfully if you make transactions simple and convenient for them

Enhancing Services - Consultation

Core

Value can be added to goods and services by offering advice and consultation tailored to each customers needs and situation

Enhancing Services - Hospitality

Core

Customers who invest time and effort in visiting a business and using its services deserve to be treated as welcome guests

Enhancing Services - Safekeeping

Customers prefer not to worry about looking after the personal possessions that they bring with them to a service site. They may also want delivery and aftersales services for goods that they purchase or rent

Core

Enhancing Services - Exceptions

Core

Customers appreciate some flexibility in a business when they make special requests.

They expect it when not everything Goes according to plan

Flower of service
core product surrounded by cluster of supplementary services Supplementary services

Facilitating services :
Information Order taking Billing Payment

 Enhancing services:
Consultation Hospitality Safekeeping Exceptions

 a)

Examples of information elements

Directions to service site Schedules / service hours Prices Instructions on using the service Reminders Warnings Condition of sale/service Notification of changes

b) Examples of order taking elements Applications Membership in clubs Subscription services (e.g utilities) Prerequisite based services (e.g college enrollment) Order entry On site order fulfillment Mail/ telephone order placement

 Email order placement Reservations and check in

Seats Tables Rooms Vehicles or equipment rental Admission to restricted facilities (museums)

 Billing :
Periodic statements of account activity Invoices for individual transactions (stock market) Machine display of amount due

 Examples of payment
cash Cheque Credit card Electronic fund transfer Enter credit card number online Coupon redemption Automated systems : ( e.g Machine-readable tickets that operate entry gates)

 Consultation
Advice Auditing Personal counseling Tutoring /training in product use. Management or technical consulting

 Hospitality : examples of hospitality elements

Greetings Food and beverages Toilets and washrooms Waiting facilities and amenities
Lounges, waiting areas and seating Weather protection Magazines, entertainment, newspaper

Transport Security

Safekeeping Caring for possessions customers bring with them

Child care Pet care Parking facility for vehicles Valet parking Luggage handling Safe deposit boxes Security personnel

 1)

h)

Exception elements:

special requests in advance of service delivery: Childrens needs Dietary requirements Medical or disability needs Religious observances Deviations from Standard operating procedures

 Problem solving
Warranties and guarantees against product malfunction Resolving difficulties caused by accidents , service failures and problems with staff or other customers Assisting customers who have suffered an accident or medical emergency.

 Restitution
Refunds Compensation in kind for unsatisfactory goods and services Free repair of defective goods.