SERVICE PRODUCT

• It comprises of all the elements of the service performance, both physical

and tangible, that create value for customers

• Designing the service concept –

• The value proposition must address and integrate three components –
1. core product, 2. supplementary services, 3. delivery process

• CORE PRODUCT – transport services, management consulting

• SUPPLEMENTARY SERVICES – these services augment the core product, facilitate its
use and enhance its value and appeal to the customer overall experience
• DELIVERY PROCESS –
• How different service components are delivered to the customers
• The nature of customers role in those processes
• How long delivery lasts
• The prescribed level and style of service to be offered
DOCUMENTING THE DELIVERY SEQUENCE OVER TIME

• A crucial part of process design is the sequence in which customers

will use each of the core and supplementary services and the
approximate length of time required in each instance.

• Time plays a key role in services – both operational and customer

point of view
 Flower of Services

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Services Flower Model
 Facilitating Information Enhancing
Services
Payment services
Consultation
Billing

CORE
Order taking

Exceptions

Hospitality
Safe keeping
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 Facilitating Services 1. Information
Elements Conditions of sale/services
 Directions to services site  Documentation
 Schedules/Services Hours  Confirmation of
 Prices reservations
 Reminders  Summaries of account
 warning activities

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 2. Order Taking
Elements Order Entry
 Mail telephone-website
 Applications
 Reservations and check in
 Memberships in clubs/gyms
 Seats-table-rooms
 Universities
 Professional appointments
 Bank

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3. Billing
Elements
 Periodic statements of Account activity
 Invoices for individual’s transactions
 Machine display of Amount Due
 Self billing (Computed by customer)

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 4. Payments
Elements Direct to payee
 Self service payments  Cash or card handlings
 Electronic cash transfer  Coupon redemption & taken
 Cash or card in machine
Automatic deduction
 Machine readable tickets that
operate at entry gates.

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 Enhancing Services
1. Consultation

Elements
 Customised advice
 Personal counselling
 Training in product use
 Management or technical consultation

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2. Hospitality
 Greeting
 Food and beverages
 Toilets and washrooms
 Lounges and waiting room area
 Magazine & newspaper
 Transport
 security

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3. Safe keeping
 Child care
 Pet care
 Vehicles parking
 Coat rooms
 Baggage handlings
 Storage space
 Safe deposit boxes
 Security personal

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4. Exception
Special required advance:-
 Children needs
 Dietary requirement
 Medical needs
 Religious observance
Problem solving
 Warrantees and guarantees
 Accidents, failure
 Refunds and Compensation

Restitution

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