Developing Service Products:

Core and Supplementary

Elements
Four Broad Categories of Service – A process
Perspective

Who or What is the Direct recipient of the service?

Nature of Service Act

People (High Involvement) Possessions (Low Involvement)

People-Processing (services Possession-Processing (services
Tangible Actions are directed at people’s directed at physical possessions)
bodies) like transportation, like repair & maintenance,
healthcare, spa, etc. laundry

Mental Stimulus Processing Information Processing (services

Intangible Actions (service directed at people’s directed at intangible assets)
mind) like online education, like accounting, banking, legal
advertising, psychotherapy services, consultancy, etc.
Designing the Service Concept

• Core Service: reference to the core set of benefits

and solutions delivered to customers., focus on
principal and problem-solving benefits
• Supplementary Service: augment the core product,
facilitating its use and enhancing its value and
appeals to customer’s overall experience, may be a
source for competitive advantage
• Delivery Process: concerns processes used to deliver
both the core product and each of the
supplementary services
Flow of Service

Facilitating Services Enhancing Services

Information Consultation

Order-Taking Hospitality

Billing Safekeeping

Payment Exceptions
Flower of Service
Information
• Direction to service site
• Schedules
• Prices
• Instructions
• Reminders
• Warnings
• Conditions of sale
• Notification of changes
• Documentation
• Confirmation of reservations
• Receipts and tickets
Flower of Service
Order-taking
• Applications
• Memberships
• Subscriptions
• Prerequisites
• Order Entry
• On-site order fulfillment
• Mail/telephone/e-mail/web order
• Reservations and Check-in
• Tables/rooms/seats
• Vehicles or equipment rental
• Professional appointments
• Admission to restricted facilities
Flower of Service
Billing Elements
• Periodic statements of account activity
• Invoices for individual transactions
• Verbal statements of amount due
• Machine display of amount due
• Self-billing
Flower of Service
Payment
• Self-Service
• Card/cash/token machine
• EFTs
• Mail a check
• Online Payments
• Direct Payee or Intermediary
• Cash / check handling
• Credit / debit card handling
• Coupon / voucher redemption
• Automatic Deduction
• Automated Systems
• Human Systems
Flower of Service
Consultation
• Customize advice
• Personal Counseling
• Tutoring / training in product use
• Management or technical consulting
Flower of Service
Hospitality
• Greeting
• Food and Beverages
• Toilets and washrooms
• Waiting facilities and amenities
• Transport
• Security
Flower of Service
Safekeeping
• Caring for Possessions Customers Bring with them
• Caring for Goods Purchased by Customers
Flower of Service
Exceptions
• Special requests in advance of service delivery
• Handling special communications
• Problem solving
• Restitution