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Information and Physical Processes of the Augmented Service Product (Fig. 7.1) Information Processes
Billing
Physical Processe s
Payment
Pay by bank card Direct debit
Consultation
Conduct e-mail dialog Use expert systems
Billing
Receive bill Make auction bid Check account status Core
Order-Taking
Make/confirm reservations Submit applications Order goods, check status
Exceptions
Make special requests Resolve problems
Hospitality
Record preferences
Safekeeping
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Nature of Interaction Single Site between Customer and Service Organization Theater Customer goes to service organization Barbershop Service organization House painting goes to customer Mobile car wash Customer and service Credit card organization transact company at arms length Local TV station
Multiple Sites
Bus service Fast-food chain Mail delivery Auto club road service Broadcast network Telephone company
Required for people processing services Offers live experiences, social interaction, e.g., food services More emphasis on eye-catching servicescape, entertainment Ideal for info-based services Saves time Facilitates information gathering May use express logistics service to deliver physical core products
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As enhanced by distributor
As experienced by customer
Core
Core
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Franchising
Franchising is a fast growth strategy, when
Resources are limited Long-term commitment of store managers is crucial Local knowledge is important Fast growth is necessary to pre-empt competition
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Modes of Internationalization
Export information-based services transmit via electronic channels store in physical media, ship as merchandise Use third parties to market/deliver service concept licensing agents brokers franchising alliance partners minority joint ventures
Control service enterprise abroad direct investment in new business buyout of existing business
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Market
People differ Level of economic economically and developments culturally, so needs for impacts demand for service and ability to services to pay may vary. individually owned goods
Demand for many services is derived to a significant degree from economic and educational levels.
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Use of IT for delivery of Need for technologysupplementary based service services may be a delivery systems function of ownership depends on and familiarity with possessions technology. requiring service and the cost trade-offs in labor substitution Variable labor rates Variable labor rates may impact on pricing may favor low-cost in labor-sensitive locations. services.
Cost
Government
Social policies (e.g., health) vary widely and may affect labor cost etc.
Policies may Policies may impact decrease/increase demand and supply cost & and distort pricing encourage/discourage 18 certain activities