Service Products

Session 4:

Developing a Service Product and Distributing Services Strategy

Understanding service products

Many organisations offer core service and a range of supplementary services or optional extras. The totality of the service provider’s offering also includes the place and manner of the service delivery. The importance of each attribute varies and may depend on whether the service is high or low contact.

The Augmented product

It is the concept of surrounding the core product with supplementary value-added service ~ a process of creating the AUGMENTED Product. “We live in an age in which our thinking about what a product or a service is must be quite different from what it ever was before. It is not so much the basic, generic (basic or general) central thing we are selling that counts, but the whole cluster of satisfactions with which we surround it.”

What is a service product?

The augmented product

1. The core service (what is being delivered)

2. Supplementary service (value-adding services other than the core)

3. Delivery process (the manner or how the service is delivered)

Core product VS supplementary service

For example, the core product will be hotel, and then other supplementary services will be business centre, room service, reception, restaurant, cocktail bar, gym.

For example, the flower of service: core product surrounded by clusters of supplementary services that enhance the core product.

The Augmented Service Offering

(Educational Institution)

The Augmented service offering educational institution

1. The Core Service is the basic reason for the service offering

2. Supporting or Auxiliary Services are those which supplement or add to the core service

3. Facilitating Services are those that facilitate the delivery and consumption of the core service

The augmented service offering (for example, MIS)

The service concept the core service

Cluster (group) of Supplementary services...