The Service Product

Nature of the Service Product

A service product comprises of all the elements of the

service performance , both tangible and intangible which create value for customers Service performances (service product) are experienced rather than owned Even when there are some physical elements to which customers takes ownershipcooked meal; surgically implanted pacemaker; a replacement part of a cara significant portion of the price is paid for the value added by the service elements , including expert labour and the use of specialized equipment.

The Service Concept (the Service Product)

The entire service performance (service product)

comprises of the following components: 1. Core product 2. Supplementary Services 3. Delivery process

Core product
Core set of benefits and solutions delivered to customers The central component which supplies the principal, problem

solving benefits that customers seek Services are usually defined with reference to a particular industry: healthcare; transportation, etc. E.g.s of core product in services: i. Transportation: move a person or physical object from one place to another ii. Consultancy: expert advice as to what the client should do iii. Repair services: restore damaged or malfunctioning machine to good working order iv. Education: imparting knowledge and skills v. Hotels/Hospitality: Pleasant/relaxing stay away from home vi. Retail: access to a variety of products vii. Banking: safekeeping of customers valuables

Supplementary services
These services augment/add on to the core product,

facilitating its use and enhancing its value and appeal to customers overall experience Adding supplementary services enhances value of core product, thus allowing service provider to charge higher prices and helps to differentiate the service from competitors services. E.g.: Hotel: Room service, reservation, parking, meal, entertainment (TV), access to phone, internet, etc. Health care: meals, TV, air-conditioned room

The service delivery process

Addresses the following:

How the different service components are delivered to the customer ii. The nature of the customers role in these processes. iii. How long the delivery lasts iv. The prescribed level and style of service to be offered
i.

e.g.: Hotel
Core product: over night stay (over night rental of a

bedroom) Scheduling : how long the room can be used before payment becomes due: e.g.: Rs. 5,000 for night stay with check out at 12:00 next day Role of customers: what the customers are to do themselves Role of hotel: What the hotel will do for customers: making the bed, supplying bathroom towels, cleaning room

DIMENSION OF THE HOTEL PRODUCT

R E S E R V A T I O N
n

Parking Check in Use Room (over night ) phone

Get Car Check out

TV
Meal

Breakfast

Blue Dart service products

Domestic Priority 1030 (for documents and small

shipments) Domestic Priority 1200 (for documents and small shipments) Smart box (air express) Smart box (ground express) Dart Apex 1200 (Commercial shipments by air within India for shipments weighing 10kgs. and above. ) Dart Surfaceline (for less time sensitive shipments) Temperature Controlled logistics (cooling medium : vaccines, clinical samples, etc)

Domestic Priority: Supplementary services:

Location Finder allows customers to search for the delivery

locations .

Free pick-up from customers location . Real-time Tracking through the net Regulatory Clearances for all States in India taken care of a team of specialists, to resolve regulatory requirements. Free Computerized Proof of Delivery On demand, confirming the date and time of delivery as well as the name of the person receiving the consignment.

 The Flower of Service:

Core of the flower: Core service

Petals: supplementary
Enhancing Supplementary Services: 1. Consultation 2. Hospitality 3. Safekeeping 4. Exceptions: i. Special Requests ii. Problem Handling iii. Handling complaints/suggestions iv. Restitution

Facilitating Supplementary Services: 1. Information 2. Order taking 3. Billing 4. Payment

 Information:

Types ranges from prices, schedules, address, range of services offered, legally mandatory, documentation: confirmation of reservation, receipts and tickets; advice E.g.: Apollo Hospitals: 1. Apollo Prism: Apollo Prism is a patient-controlled Personal Health Record with which the users can import and manage health records created during various doctor visits and can also access their online health record and medical reports anytime and anywhere. 2. Apollo - Aircel Mobile Health Care: Aircel customers can call 55104 from their mobile and talk to Health Experts from Apollo for any health related queries
Order taking: accepting applications, orders, reservations

Applications: education institutions, banks; insurance companies, utilities (phone, gas connection) Reservations: appointments, check-in: represents order taking of a special type: e.g.: for an airline seat, a restaurant table, a hotel room Accuracy in scheduling and taking reservation is vital.

 Billing: clear, informative and accurate bills,

itemised, properly printed, quick billing process Payment: a variety of payment options exist: cash, cheques, cards; customers expect convenience and ease.

 Consultation: Different from information ,

consultation involves a dialogue to probe customer requirements and then develop a tailored solution. what do you suggest? Elements: Customised advice; personal counseling, tutoring/training, management or technical consulting Hospitality: Reflect pleasure at meeting new customers and greeting old ones when they return. Employees treating customers as guests. Elements: Greeting, Food and beverages, toilets and washrooms, waiting facilities (lounges, seating), magazines, entertainment, transport, security

 Safekeeping: parking, baggage transport, child care, pet care,

handling and storage, safekeeping of valuables Exceptions: Special Requests Childrens needs Dietary requirements Medical or disability needs Religious observances Handling special communications: Complaints Compliments Suggestions Problem Solving: Warranties and Guarantees Resolving difficulties arising from the product Resolving difficulties caused by service failures Assisting customers who have suffered an emergency or accident Restitution: Refunds and compensation Free repair of defective goods