3.1 Describe what is meant by the service product concept
Service product:
1. Core service - what the customer is fundamentally buying; what is being
delivered
Buying a one-night stay in a hotel, the core service is accommodation
and security
Paying for a package to be delivered, the core service is for the package
to arrive at the correct address, on time and undamaged
Rejuvenating spa treatment or roller coaster ride
Some core products are highly intangible e.g. credit card and travel
insurance
2. Supplementary service - value-adding services other than the core;
importance of each attribute varies and may depend on whether the
service is high or low contact
They augment the core product, both facilitating its use and enhancing
its core
Competitive advantage emphasises supplementary services - important
role in differentiating and positioning the core product
3. Delivery process - place and manner of service delivery and how
customers are treated
Concerns the processes used to deliver both the core and
supplementary services
Design of the service offering must address the following issues:
-> how the different service components are delivered to the customer
-> nature of the customers' role in those processes
-> how long delivery lasts
-> the prescribed level and style of service to be offered
, 3.2 Describe the ‘Flower of Service’ model and explain how the facilitating and
enhancing supplementary services add value to the core product
Flower of Service:
Consists of the core service and a range of supplementary services
8 clusters which are identified as either facilitating or enhancing
1. Facilitating supplementary services
Required for either service delivery (e.g. making a reservation) or aiding
in the use of the core product (e.g. information)
These services are NOT the basic reason for service providers to be in
business
2. Enhancing supplementary services
Add extra value and appeal for customers
Facilitating Services Enhancing Services
Information Consultation
Order- Hospitality
taking Safekeeping
Billing Exceptions
Service product:
1. Core service - what the customer is fundamentally buying; what is being
delivered
Buying a one-night stay in a hotel, the core service is accommodation
and security
Paying for a package to be delivered, the core service is for the package
to arrive at the correct address, on time and undamaged
Rejuvenating spa treatment or roller coaster ride
Some core products are highly intangible e.g. credit card and travel
insurance
2. Supplementary service - value-adding services other than the core;
importance of each attribute varies and may depend on whether the
service is high or low contact
They augment the core product, both facilitating its use and enhancing
its core
Competitive advantage emphasises supplementary services - important
role in differentiating and positioning the core product
3. Delivery process - place and manner of service delivery and how
customers are treated
Concerns the processes used to deliver both the core and
supplementary services
Design of the service offering must address the following issues:
-> how the different service components are delivered to the customer
-> nature of the customers' role in those processes
-> how long delivery lasts
-> the prescribed level and style of service to be offered
, 3.2 Describe the ‘Flower of Service’ model and explain how the facilitating and
enhancing supplementary services add value to the core product
Flower of Service:
Consists of the core service and a range of supplementary services
8 clusters which are identified as either facilitating or enhancing
1. Facilitating supplementary services
Required for either service delivery (e.g. making a reservation) or aiding
in the use of the core product (e.g. information)
These services are NOT the basic reason for service providers to be in
business
2. Enhancing supplementary services
Add extra value and appeal for customers
Facilitating Services Enhancing Services
Information Consultation
Order- Hospitality
taking Safekeeping
Billing Exceptions
