Académique Documents
Professionnel Documents
Culture Documents
Developing
Service Concepts:
Core and
Supplementary
Elements
Chapter 3 - 1
Overview of Chapter 3
1. Planning and Creating Services*
2. The Flower of Service*
3. Planning and Branding Service Products
4. Development of New Services
Chapter 3 - 2
Chapter 3 - 3
Chapter 3 - 4
Chapter 3 - 5
Supplementary Services
Augment the core product, facilitating its use and enhancing its
value and appeal
Delivery Processes
Used to deliver both the core product and each of the
supplementary services
Chapter 3 - 6
Supplementary
services offered
and delivered
Scheduling
Service
Level
Nature of
Process
Delivery Concept
for Core Product
Customer
Role
Chapter 3 - 7
Reservation
Cashier
Valet
Parking
Business
Center
Room
Service
Wake-up
Call
Reception
Baggage
Service
Cocktail
Bar
Chapter 3 - 8
Chapter 3 - 9
Chapter 3 - 10
Reservation
Parking
Get car
Check out
Internet
Check in
Internet
Use
room
USE
GUESTROOM OVERNIGHT
internet
Porter
Meal
Before Visit
Pay TV
Room service
Chapter 3 - 11
Chapter 3 - 12
Check In
Maid Makes
up Room
Spend
Night in
Room
Breakfast
Check
Out
Breakfast
Prepared
Chapter 3 - 13
Technician Examines
Player, Diagnoses
Problem
Leave
Store
Return, Pick up
Player and Pay
(Later) Play
DVDs at Home
Chapter 3 - 14
View Presentation of
Weather Forecast
TV Weatherperson
Prepares Local
Forecast
Chapter 3 - 15
Select Plan,
Complete Forms
Pay
Insurance
Coverage Begins
Printed Policy
Documents
Arrive
Customer Information
Entered in Database
Chapter 3 - 16
Consultation
Core
Order Taking
Exceptions
KEY:
Hospitality
Safekeeping
Facilitating elements
Enhancing elements
Slide 2007 by Christopher Lovelock and Jochen Wirtz
Chapter 3 - 17
Examples of elements:
Chapter 3 - 18
Core
Applications
Order entry
Reservations and check-in
Chapter 3 - 19
Examples of elements:
Periodic statements of
account activity
Chapter 3 - 20
Examples of elements:
Chapter 3 - 21
Core
Customized advice
Personal counseling
Management consulting
Chapter 3 - 22
Core
Examples of elements:
Greeting
Waiting facilities and amenities
Food and beverages
Toilets and washrooms
Security
Chapter 3 - 23
Examples of elements:
Chapter 3 - 24
Examples of elements:
Chapter 3 - 25
Managerial Implications
To develop product policy and pricing strategy,
managers need to determine:
Which supplementary services should be offered
as a standard package or as options
Firms that compete on a low-cost, no-frills basis
needs fewer supplementary elements
Each flower petal must receive consistent care
and concern to remain fresh and appealing
Chapter 3 - 26
Chapter 3 - 27
Chapter 3 - 28
Service Products
A service product: A defined and consistent
bundle of output
Service firms can differentiate their products in
similar fashion to various models offered by
manufacturers
Providers of more intangible services also offer a
menu of products
Represent an assembly of elements that are built
around the core product
May include certain value-added supplementary
services
Slide 2007 by Christopher Lovelock and Jochen Wirtz
Chapter 3 - 29
Chapter 3 - 30
Individual Product
Branding
Corporate
Branding
Branded
House
House of Brands
e.g., P&G
Sub-brands
Endorsed Brands
e.g., Courtyard
by Marriott
Chapter 3 - 31
Chapter 3 - 32
Chapter 3 - 33
Chapter 3 - 34
Chapter 3 - 35
A Hierarchy of
New Service Categories (1)
1. Major service innovations
New core products for previously undefined markets
3. Product-line extensions
Additions to current product lines
4. Process-line extensions
Alternative delivery procedures
Chapter 3 - 36
A Hierarchy of
New Service Categories (2)
5. Supplementary service innovations
Addition of new or improved facilitating or enhancing elements
6. Service improvements
Modest changes in the performance of current products
7. Style changes
Visible changes in service design or scripts
Chapter 3 - 37
Chapter 3 - 38
Chapter 3 - 39
Perform Work
Oneself
it
Computer
Hire Someone
to Do Work
Hire a Chauffeur to
Hire a Taxi or
Drive
Limousine
Chapter 3 - 40
Chapter 3 - 41
Success Factors in
New Service Development
Market synergy
Organizational factors
Strong interfunctional cooperation and coordination
Internal marketing to educate staff on new product and its
competition
Employees understand importance of new services to firm
Chapter 3 - 42