...1 SERVICE CONCEPTION Services are all around us, people use service every day. The growth in the service economy is widely recognized and in-creasingly contributes to the economic development of many regions. Services are diverse and often been difficult to de-fine. Most frequently, a service has been described as an act, a process and a performance. Services are also defined as economic activities that create “added value” and provide benefits to customers. In the past, selling products are separate from selling service. When consumers bought food, clothes or car, they simply bought the tangible things they wanted and did not have any added value. Since the competition is stronger and fiercer, it’s hard to separate product from its service. If companies only sell their goods to customers without any attached services, they will lose their customer easily and failure is inevitable. For example, when buying computer, they might be attracted by the store where looks professional and they can get full in-formation as well as guidance from helpful staff about prod-ucts, a hotline service for installing the programs and so on. Company must pay attention to it and invest more on distri-bution channel to provide more good service to customers. Service business offers intangible value to buyers rather than tangible goods. It includes a wide range of industries such as hospitality, tourism, art, healthcare, education and so on. “Some service such as charities, arts operate in non-profit...
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...Business Report: Analysing Service Design Elements MRKT20026 – Service Product Marketing Assessment 3 Term 2 2012 Student Name | Student ID/Number | Tatiana ZAPATA | S0203520 | CQU in Brisbane Campus Lecturer/Tutor: Patrick GOH Paper Count: 2.628 Due Date: 27 of September 2012 Date Submitted: 27 of September 2012 Executive Summary This report provides a critically analyse of a design elements of two different service providers, Juan Valdez coffee shop and Guzman & Gomez fast food restaurant. This also involves the Russell’s Model of Affect and how this model is relates to the service elements identified in the services providers. The report also provides some recommendations to service providers in order to improve their physical environment to better suit the needs of their customers. Regarding the aim of this report is analysing the service design elements, relate the elements to Russell’s Model, and linking with relevant literature. The findings reveal that servicescape can be defined as a consumer’s mental representation of a service environment on dimensions typically used to imprison and people’s personality. The Russell model also allows a direct assessment of how costumers feel while they are in the service environment. It can be conclude that service environment plays a major part in shaping customers perception of a business image and positioning. A well designed service environment makes costumers...
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...NEW SERVICE PRODUCT DEVELOPMENT As to define service, it is an act or performance that one party offers to another that is essentially intangible and does not result in the ownership of anything – Philip kotler TYPES OF NEW SERVICES Major or radical innovations- are new services to market as yet undefined eg. First broadcast television services Start up businesses- new service for a market that is already served by existing product eg.online banking for financial services New services for the currently served market- attempts to offer existing customers of the organisation, a service not previously available from the company eg. Barnes and noble offering coffee. Service line extension- augmentation of the existing line. Eg. Restaurants adding new menu items, an air line offering new routes. Service improvement- changes in features of service that are already offered. Eg. Extended hours of service(24*7), added amenities in a hotel room Style changes- the most modest service innovations which have a significant effect on customer perception, emotion and attitude. Eg. Changing the color scheme, revising the logo SERVICE PRODUCT DEVELOPMENT Research suggest that products that are designed and introduced in a structured planning framework have a greater likelihood of ultimate successthan those not developed within a framework. NEW SERVICE DEVELOPMENT PROCESS Front end planning includes business strategy development or review, new service strategy development, idea generation...
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...CHAPTER 15 CUSTOMER SERVICE, PRODUCT AND DISTRIBUTION STRATEGIES To be successful in the long run , small firms must develop and maintain loyal customers, as it costs for more to replace than keep one. There are three basic beliefs that forms the foundation of customer loyalty: 1. Superior customer service creates customer satisfaction 2. customer’s satisfaction produces customer loyalty 3. Small firms possess great potential for providing superior customer service Failure to emphasis customer service jeopardizes the attainment of customer satisfaction and customer loyalty. I. Components of Customer Satisfaction According to Thomas Jones and W. Earl Sasser Jr., in an article entitled “why satisfied customers Defect, “ (Harvard Business Review, Vol. 73, No. 6, Nov.-Dec. 1995, p. 90), there are four major elements that lead to satisfaction: 1. The most basic benefits of the product or service – the elements that customers expect all competitors to deliver. 2. General support services, such as customer assistance. 3. A recovery process for counteracting bad experiences. 4. Extraordinary services that excel in meeting customers’ preferences and make the product or service seem customized. Extraordinary service is the ingredient that small firms are in a unique position to offer. The following are ways to develop extraordinary services: 1. Naming names: Nothing is more well received than individual personalized attention. Besides courteous and...
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...Product vs. Service Supply Chain Whether tangible products or intangible services, both manufacturing and service industries use different inventory strategies to deliver quality end results to consumers. Supplying a service or a product impacts forecasting and resourcing decisions in different ways. The objectives of the service industry remain similar to the manufacturing industry, fulfilling wants or demands of customers are impacted by the strategies that organizations choose to follow. In the manufacturing industry, raw material, work in progresses, sub-components and finished goods are stored at the company’s expense to meet the demands of its customers. Stock that is held to meet demands is also knows as cycle stock. An example may be a company who purchases coffee from a supplier. The coffee that is supplied is used every day; therefore the company may want to purchase a month’s worth of coffee that will satisfy their demand for roughly thirty days. To avoid any uncertainties in demand as well as shortages or delays, a safety stock can be purchased in addition. Although this scenario sounds ideal, situations do not always turn out to be perfect. One thing that can be a problem with supplying too much coffee to this company would be an issue of quality in the coffee. Keeping coffee stored away and unused for too long may cause the coffee to become stale and unsatisfying. In addition, a variety of associated costs and good customer service are a few challenges that may...
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...Product-Service System types and implementation approach Britta Pergande , Paula L. A. Nobre , Anderson C. Nakanishi , Eduardo S. Zancul , Leandro Loss , Lucas C. Horta 1 2 1 2 2 2 3 3 University of Bremen, Germany 3 Universidade de São Paulo, Escola Politécnica, Depto. de Engenharia de Produção, Brazil Axia Value Chain, Brazil Abstract The article presents two results concerning Product-Service System (PSS): a typology for PSS and an implementation approach. The proposed typology shows several possible combinations of products with the corresponding services, in order to form the PSS. It illustrates the potential PSS for the respective products. The implementation approach defines the necessary steps for implementation and details which actions have to be performed in order to create and improve a PSS. Combined, the two results presented by the article should support companies in establishing Product-Service Systems with expected benefits on business models and environmental impact. Keywords: Product-Service Systems; PSS types; Implementation approach 1 INTRODUCTION Product-Service Systems (IPS2), and service design. Various available case studies on Product-Service Systems and servitization of products were identified and analyzed. The analysis focused on service characteristics and their connection to products, providing insights for the specification of PSS types. The results of the case studies were purely analyzed from outside. Based on data gathered...
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...Produt of Service/ Nivea Wilma Stout Delta State University Business strategy Q.1 Nivea for Men is a body lotion that is commonly known for its high-quality freshness and fragrance that lasts for up to twenty-four hours. Q.2 The price of the product is customer friendly and affordable thus the product can reach people of different walks (Krüger& Stumpf, 2013). The company has also launched this new product, and its price was a bit higher than other products thus showing that Nivea for Men has additional products in it to ensure that it works effectively. Therefore, the company mainly focuses on the value for money which the company is providing to its customers. Prices, therefore, help in reflecting the brand’s quality (Stoebe & Zerres, 2013). Distribution and place performance is also another strategy that has helped the company in marketing its products all over the world (Krüger& Stumpf, 2013). Nivea for men is already available in up to one hundred and fifty countries of Europe, both North and South America, Asia and Oceania (Tungate, 2011). The company is also willing to find many outlets from local regions therefore enhancing its sales. Nivea for men is the leading brand in Europe, and its growth rate potential is very high. Due to its performance the product can, therefore, be able to market itself in the global market (Stoebe & Zerres, 2013). Promotion strategy, through promotions such as advertisements and offers, the product can earn...
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...Products and Services Paper Products and Services Paper Technology has drastically changed the retail industry. Today consumers are armed with tons of information that could be analyzed to help make buying decisions. Thus one could say that technology has provided the consumers with an avenue through which they can communicate feedbacks on product quality and brand to the retailers and brand. As a result of technological innovations, consumers can compare prices, research products, check inventory, provide product reviews, and even exchange or return recently purchased products from the comfort of their homes. This paper will present a case study outline of technological innovations that have helped shaped the retail industry with a focus on the Macy’s stores. Technologies affecting retail: Retail business as we know it today has been shaped by a mix of technologies. First and foremost amongst these technologies is the Internet. Others include Customer Relationship Management (CRM), Network technologies, social networks, mobile technologies, and e-commerce. Effect of technology on Macy’s The trend: Consumers are increasingly becoming very comfortable shopping online. According to Arvidson (2013), the US Census Bureau reported that about $165 billion worth of transactions took place over the internet in 2010. This represented a 15% increase over the previous year and it is a trend that is expected to continue on the...
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...PROJECT IN BASIC MICRO ECONOMICS Submitted to: Ms. Kaye Villaflor Submitted from: Grace Rachelle A. Andino BSBA 2b Feb. 27, 2014 1.) Definition Credit Card A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit. http://www.webcrawler.com/info.wbcrwl.305.03/search/web?q=definition+for+credit+card ATM Card An ATM card (also known as a bank card, client card, key card, or cash card) is a payment card provided by a financial institution to its customers which enables the customer to use an automated teller machine (ATM) for transactions such as: deposits, cash withdrawals, obtaining account information, and other types of banking transactions, often through interbank networks. http://en.wikipedia.org/wiki/ATM_card Debit card A card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase. https://www.google.com.ph/search?biw=1280&bih=709&noj=1&sclient=psy-ab&q=define+debit+card 2.) Differences between credit card, debit card and ATM card ATM cards An ATM card is a PIN-based card. That means that in addition to using it at ATMs, you may also be able to use it to make purchases (by entering your Personal Identification Number) if the merchant is using one of the same electronic ATM networks that’s listed on the back of your card. Debit card A debit card looks just like a regular ATM card, and you can use it at...
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...Chapter 8 PRODUCTS, SERVICES, AND BRANDS: BUILDING CUSTOMER VALUE MARKETING STARTER: CHAPTER 8 Nike: Building Deep-Down Brand-Customer Relationships Synopsis Marketing is all about creating brands that connect with customers, and few marketers have done that as well as Nike. During the past several decades, Nike has built the Nike swoosh into one of the world’s best-known brand symbols. During the 1980s, Nike revolutionized sports marketing. It powered its way through the early 1990s, aggressively adding products in a dozen new sports, including baseball, golf, skateboarding, wall climbing, bicycling, and hiking. In the late 1990s, however, Nike stumbled and its sales slipped. Nike needed to rekindle the brand’s meaning to consumers. To turn things around, Nike returned to its roots: new-product innovation and a focus on customer relationships. This time, Nike shifted toward cutting-edge digital and social marketing tools to interact with customers to build brand experiences and community. Nike is now building communities of customers who talk not just with the company about the brand, but with each other as well. Thanks to efforts like Nike+, along with a host of other new digital and social media approaches, Nike has built a new kinship and sense of community with and between the brand and its customers. The company’s outstanding success results from much more than just making and selling good sports gear. It’s based on a deep-down connection between the iconic Nike brand...
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...Product and service marketing are fundamentally different A service, unlike products, is an action that one person can offer another that is intangible and does not result in ownership of a physical product. Different marketing tactics work better for services versus products. A business needs to develop marketing plans for both services and products. A few of the differences between service marketing and product marketing, when a business markets a service, they are actually marketing a relationship and value. This relationship and value needs to be marketed differently than if the business is marketing products. Another difference between marketing services and marketing products is that when a customer buys a service, the customer is buying something that is intangible, instead of a tangible product, like a television, phone, or a tablet computer. Also, a customers’ idea of a service is often times based on the reputation of a single person and not a brand or product. Instead of building a reputation based on the quality of several different products, a service reputation is built on how well a person delivers on the service offered. For example, how well a retirement fund manager does managing a stock portfolio. Lastly, it is relatively easy for a consumer to compare the quality of different products. It is easy to see if one television has a better picture than another side by side, or if on computer operates faster than another, or the quality of two different vehicles...
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...Part 1: Defining Marketing and the Marketing Process (Chapters 1–2) Part 2: Understanding the Marketplace and Consumers (Chapters 3–6) Part 3: Designing a Customer-Driven Strategy and Mix (Chapters 7–17) Part 4: Extending Marketing (Chapters 18–20) After examining customerdriven marketing strategy, we now take a deeper look at the marketing mix: the tactical tools that marketers use to implement their strategies and deliver superior customer value. In this and the next chapter, we’ll study how companies develop and manage products and brands. Then, in the chapters that follow, we’ll look at pricing, distribution, and marketing communication tools. The product is usually the first and most basic marketing consideration. We start with a seemingly simple question: What is a product? As it turns out, the answer is not so simple. Chapter Preview 8 Products, Services, Building and Brands Customer Value Before starting into the chapter, let’s look at an interesting brand story. Marketing is all about building brands that connect deeply with customers. So, when you think about top brands, which ones pop up first? Perhaps traditional megabrands such as Coca-Cola, Nike, or McDonald’s come to mind. Or maybe a trendy tech brand such as Google or Facebook. But if we asked you to focus on sports entertainment, you’d probably name ESPN. When it comes to your life and sports, ESPN probably has it covered. W The ESPN Brand: Every Sport Possible—Now Television: From its original...
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...Project One Activity 1 The four countries I have selected from the given groups include China, United Kingdom, United States and Nigeria. Group 1~ China Demographics China has the largest population in the world. “One Child Policy” has been implemented in China since 1979 which have helped to prevent an extra 400 million births to the country. According to the fifth Census, China’s population was 1.3 billion. China has 1 majority which is called “Han” and 55 minorities. Economic system In the first 30 years after the founding of the PRC in 1949, China’s economic system was planned economy. In 1978, the household contract responsibility system was introduced in the rural area. In 1984, the economic restructuring shifted from the rural areas to the cities. In 1992, China established the socialist market economic system. Culture and Social Structure China’s history is more than 5000 years with diverse customs and traditions. Every ethnic group has its own culture, even some have their own languages and words. There are many dialects in China, and the main language is Mandarin. People’s tastes are varied as well. People from the South prefer sweet, people from the North prefer salty, while Eastern people like spicy and Western people like sour. Legislative System China's legislation includes the legislation of the National People's Congress and its Standing Committee, regulation making by the State Council and its relevant departments, as well as the legislation...
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...STUDY OUTLINE FOR CHAPTER 4 PRODUCT AND SERVICE DESIGN 1. Why is product or service design strategically important? Product and service design has typically had strategic implications for the success and prosperity of an organization. Furthermore, it has an impact on future activities. Consequently decisions in this area are some of the most fundamental that managers must make. 2. List some of the things that product and service design does. 1)Translates customer wants and needs into product and service requirements. 2)Refine existing products and services. 3)Develops new products and/or services 4)Formulates quality goals, and cost targets. 3. Give a few examples for each of these major reasons for design or redesign: Economic -low demand, excessive warranty claims, the need to reduce costs. social and demographic -Aging baby boomers, population shifts. political, liability, legal -Government changes, safety issues, new regulations. Competitive -New or changes products or services, new advertising/promotions cost or availability -Raw materials, components, labor, water, energy Technological -Product components, processes 4. What are the key questions of product and service design? 1)Is there demand for it? What is the potential size of the market, and what is the expected demand profile? 2)Can we do it? Do we have the necessary knowledge, skills, equipment, capacity, and supply chain...
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...Operation Management Product and Service Design Mc Donald Company By Dimas Candrika Usman Priyandono Magister Manajemen Fakultas Ekonomika dan Bisnis Universitas Gadjah Mada 2015 History of Mc Donald McDonald's Corporation is a fast food restaurant which is very famous and is one of the largest and has spread globally. The main dish in restaurants McDonald's is a hamburger, but also serves soft drinks, french fries and dishes that are maked to the restaurant where it is located. McDonald's emblem is two yellow bow that is usually displayed outside their restaurant and can be immediately recognized by the public. The company's business began in 1940 with the opening of a restaurant by Dick and Mac McDonald in San Bernardino, California. They introduced the "Speed Service System" in 1948, which later became the basis pinsip modern fast-food restaurant. Early McDonald's mascot, named Speede, is a man with a hamburger-shaped heads that use a chef's hat. Speed was replaced by Ronald McDonald in 1963. McDonald's does not currently make 1940 as the year of birth of the McDonald's restaurant. They selected 15 April 1955 when Ray Kroc bought McDonald's franchise license from Dick and Mac in Des Plaines, Illinois, as the day of his birth. Kroc later bought shares of McDonald's brothers and led the company to expand to the whole world. McDonald's shares went on sale to the public in 1965. Until 2004, McDonald's has 30,000 restaurants around the world with an average...
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